AD Ports to Battle DP World for Cargo Business at Port of Luanda, Angola
The Port of Luanda in Angola is set to become a battleground of competition for two giant Arab companies after AD Ports officially commenced operations at the port under a long-term concession. AD Ports, the Abu Dhabi-based operator, announced that it has begun the long-term management and development of a major multipurpose terminal and associated logistics business at the port.
The company ventured into Angola in April last year after signing agreements with local firms Unicargas and Multiparques that saw it acquire an 81 percent stake to operate the terminal and a 90 percent shareholding in another logistics business. The company managed to secure a 20-year concession granting it the rights to operate the Noatum Ports Luanda terminal, with an option for a 10-year extension.
AD Ports operations of this terminal set the ground for competition with Dubai-headquartered DP World for cargo business at the port. Since 2021, DP World has been running another multipurpose terminal under a 20-year concession and is investing $190 million to rehabilitate the existing infrastructure and acquire new equipment to improve efficiency.
The two giant operators will now be competing for a bigger share of business at the port, which handles about 76 percent of Angola’s container and general cargo volumes. It also provides maritime access to landlocked neighbors, the Democratic Republic of the Congo and Zambia.
AD Ports hopes that its intended investments amounting to $250 million over the next two years in modernizing the terminal and expanding the logistic facility will be instrumental in attracting business. Over the lifespan of the concession, the company is committing to invest $380 million.
Key investments will go towards upgrading the terminal to a general cargo, container, and roll-on-roll-off (RoRo) terminal, making it the only one with 16 meters (52.5 feet) of depth. This will ensure the terminal is able to handle Super Post Panamax vessels of up to 14,000 TEU. The terminal area spanning 192,000 square meters will also be re-engineered to support high-density and efficient container handling and will be equipped with state-of-the-art equipment and modern IT systems.
AD Ports also plans to install new container handling equipment to boost container capacity from 25,000 TEU to 350,000 TEU and Ro-Ro volumes to over 40,000 vehicles. The company has already ordered three STS cranes and eight hybrid Rubber Tyred Gantry cranes for the terminal.
“With the planned upgrade of Luanda’s multipurpose port terminal, and establishment of an integrated logistics and freight forwarding business, AD Ports is positioned to capture the growth in Angola’s container volumes, which are forecast to rise on average by 3.3 percent annually over the next decade,” said Mohamed Eidha Al Menhali, Regional CEO of AD Ports Group.
The start of operations in Angola by AD Ports is part of its Africa expansion strategy. Over the past three years, the company has announced more than $800 million in planned investments in the maritime and shipping, ports, and logistics sectors in Egypt, the Republic of Congo, Tanzania, and Angola.