Dredging and reclamation work for Dubai's new container terminal 2 at Jebel Ali Port has commenced with the awarding of a Dh1.85 billion contract to a major European company, it was announced yesterday.
DP World said the contract has been given to Jan de Nul Dredging Limited, a Belgian global dredging contractor and civil construction company.
The reclamation and dredging work is scheduled for completion by the end of 2007.
Terminal 2 will have a first phase capacity of five million 20-foot equivalent units (TEUs) by the time it is operational in early 2008, taking Jebel Ali's total capacity along with its existing terminal to 15 million TEUs.
Located on the north side of Jebel Ali's terminal one, it will have a deeper draught and will be equipped with custom designed "next generation" port equipment to handle fifth and sixth generation ultra large container ships.
In earlier reports, DP World officials told Gulf News the total cost of stage one of the new terminal, including new state of the art equipment, gantry and yard cranes, would top Dh5 billion.
Dubai's masterplan for Jebel Ali port expansion consists of 14 stages and is expected to be completed by 2030 raising total annual capacity to 55 million TEUs.
"Recent studies indicate that most of the 2,200 tenant companies in the Jebel Ali Free Zone will experience strong growth in their regional distribution activities in the next 10 years," said Sultan Ahmad Bin Sulayem, Chairman of DP World and Jebel Ali Free Zone Authority.
"In addition, expanding UAE industries are projected to stimulate further growth in consumable goods imports that cater to hotels, restaurants and shops.
"All these factors have combined to heighten the need to implement expansion of the Jebel Ali Port to effectively meet future demand," said Sulayem.
The construction of stage I of terminal 2 is in five phases.
The contract for the first phase MCC2 has already been awarded, with the construction of the quay wall having commenced.
The contract agreement signed with Jan de Nul forms the second phase, MCC3, which consists of such activities as dredging, construction of rubble mound breakwaters and revetments at a length of 9 kilometres and involving a total of 2.5 million cubic metres of rock.
It also involves construction of floating pontoons at the eastern side of the new quay wall to provide a safe berthing of vessels, and providing navigation aids required for Stage I.
