AD Ports Group (ADPORTS:ADX), an enabler of integrated trade, transport and logistics, signed a shareholders’ agreement with the CMA CGM Group, a global player in sea, land, air, and logistics solutions, through its subsidiary CMA Terminals, to jointly develop, manage and operate the New East Mole multipurpose terminal in Pointe Noire, Congo-Brazzaville, for which AD Ports Group received a 30-year extendable concession in June 2023.
With the signing, AD Ports Group and the CMA CGM Group formed a joint venture, majority-owned by AD Ports Group, to develop, manage, and operate New East Mole multipurpose terminal at the Port of Pointe Noire, which will handle containers, general, break-bulk and other types of cargo at the Central West African nation’s biggest Atlantic port.
At the time it obtained the concession, AD Ports Group said it expected to invest about USD 220 million (AED 807 million) to build a 400-metre quay wall at 16-metre depth, plus a 10-hectare logistics area, during Phase 1 of the project.
With this new agreement, AD Ports Group and the CMA CGM Group are further cementing their partnership after the inauguration of CMA Terminals Khalifa Port last December, a AED 3.1 billion (USD 845 million) container terminal that will eventually expand Khalifa Port’s container capacity of 7.8 million Twenty Foot Equivalent Units (TEUs) in 2024 by 33% or 2.6 million TEUs.
In The Republic of Congo, CMA CGM shipping line holds the leading position in exports and ranks second in imports and transshipment, with historically an overall container volume market share in the country of about 35%.
The JV has confirmed that the terminal will be operated as a ‘ multi-user ‘ facility and AD Ports Group will maintain controlling majority ownership in management and operation of the terminal and as such the operations will still be fully consolidated.
Mohamed Eidha Al Menhali, Regional CEO, AD Ports Group, said: “This agreement further enhances our strategic partnership with CMA CGM in several markets and projects along global trade lines, the latest of which was the inauguration of CMA Terminals Khalifa Port last December. Our collaboration at the port of Pointe Noire is a continuation of this association. We look forward to jointly developing and managing phase 1 of the New East Mole multipurpose terminal with the CMA CGM Group. We believe this partnership will position the Republic of Congo at the centre of maritime trade, in line with projections for annual growth of 3% to 5% in container volumes forecast for the country over the medium term.”
Christine Cabau Woehrel, Executive Vice President for Assets and Operations, CMA CGM Group, said: “Our investment with AD Ports Group at the Port of Pointe Noire is a new milestone of our of our strategic collaboration between CMA T and AD Ports Group as we enable modern, sustainable ports and maritime infrastructure for the next wave of global trade. We look forward to bringing the operational and economic benefits of this collaborative, sustainable approach to The Republic of the Congo and to its importers and exporters.”
The multipurpose terminal is set to become a hub for trade and commerce in the region, enhancing job creation, providing knowledge transfer and connecting Congo-Brazzaville to global markets.”
The New East Mole multipurpose terminal at the Port of Pointe Noire has already placed an order for three Super Post-Panamax Ship-to-Shore (STS) cranes, which represent the latest generation in high-performance port equipment.
Additionally, Pointe Noire will receive nine hybrid Rubber-Tyred Gantry Cranes (RTGs) and other associated handling equipment. These hybrid RTGs offer significant environmental benefits, reducing diesel consumption by up to 60%, equivalent to saving 1 million litres of diesel annually, and cutting approximately 5,000 tonnes of CO2 emissions, reducing the carbon footprint, and promoting the sustainability goals of Congo-Brazzaville.
The Group successfully completed an Environmental and Social Impact Assessment (ESIA) for New East Mole terminal, which adhered to Congolese regulations and international best practices, including those set by International Finance Corporation (IFC) standards.
The ESIA provided key recommendations to enhance the project's social, community, and environmental performance during both the construction and operational phases.
As a global player in the port and logistics chain, the CMA CGM Group operates 60 port terminals in 30 countries. The Group supports Central and West Africa’s supply chains through its modern fleet and terminal infrastructure such as Lekki’s Deep Sea Port in Nigeria or Kribi Container Terminal in Cameroon.
