UAE's AD Ports Group signs preliminary agreement for new Al-Faw Grand Port in Iraq
AD Ports Group, General Company for Ports of Iraq ink deal for Al-Faw port, zone
Dubai: The AD Ports Group is to develop a port and economic zone in Iraq, having entered a preliminary agreement with joint venture partner General Company for Ports of Iraq.
The new joint venture will develop Al-Faw Grand Port and its economic zone, as well as any future expansion. The deal also encompasses the potential investment, management, and operation of ports, economic zones, and related infrastructure in other Iraqi cities.
This follows a MoU inked by the two parties in September 2021- and the subsequent addendum signed in August 2023 - to 'intensify cooperation'.
"The venture is set to bring together the expertise of both entities to attract international terminal operators, foster global trade relations, and develop commercial sea corridors, contributing to Iraq's economic growth," said a statement.
“Al Faw Grand Port and Economic Zone project is of great importance to the Iraqi government, which is committed to implementing the project in line with the highest global standards, in cooperation with our partners in the UAE and AD Ports Group," said Razzaq Muhaibas Al-Saadawi, Iraq’s Minister of Transport.
"We have provided all the necessary solutions to ensure the success of the project. Combined with the development road project, Iraq’s most prominent economic and logistics development, this project will strengthen maritime transport and freight shipping between Asia and Europe.”
We are pleased to reinforce our partnership with the Iraqi Ministry of Transportation, represented by the General Company for Ports of Iraq
Working on Al-Faw project
The preliminary agreement will look into the mechanism of developing, financing, managing, operating and maintaining the Al-Faw Grand Port project. The JV parties will explore investment opportunities and 'conduct the necessary feasibility studies related to ports, economic zones and other infrastructure under the General Company for Ports of Iraq'.
"We will create a joint operational policy which includes partnering with key international shipping lines to meet the outcomes of the project’s feasibility study," said Farhan Muhesen Al Fartosi, Director-General of the General Company for Ports of Iraq.
"By leveraging the port’s strategic location linking commercial lines between the East and the West, we will unlock new opportunities for trade, investment and economic growth, contributing to the prosperity of our nation."