Aqaba Container Terminal Management Contract

Concluded

In March of 2004, the Danish company AP Moller Terminals signed a two-year management contract for the Aqaba Container Terminal, located in southern Jordan. Under the contract signed with the Aqaba Special Economic Zone Authority, the project company APM Terminals Jordan was to operate and manage Aqaba Container Terminal and implement a number of upgrades to the facility, including handling equipment, IT systems and other areas of the port’s infrastructure. The two-year agreement, worth approximately US$2 million in management fees, began on June 1, 2004 and was to be expanded to a 25-year concession if both parties were satisfied with the initial trial period. APM Terminals was to receive technical assistance from Oman-based Salalah Port Services, which APM managed and in which it held a 30 percent stake. APM Terminals was to be responsible for working towards a goal of doubling the Aqaba Port's initial capacity of 250,000 20-foot equivalent units (TEUs) to deal with anticipated increases in throughput of freight bound for Iraq. The other goal of the project was to ease congestion at the port, which was causing liners to divert their business to other regional facilities, such as Djibouti and Jeddah. In 2006, the management contract concluded and a 25-year concession contract was awarded to the SPV APM Terminals (50%) - Aqaba Development Corporation (50%).