Industrial company Emirates Global Aluminium has signed a long-term port facility agreement with Abu Dhabi Ports to use some of the world’s largest bulk cargo vessels to import raw materials through Khalifa Port.
According to the agreement, Abu Dhabi Ports will develop the port, in order for it to become the first in the Gulf capable of directly handling this kind of ships.
Abu Dhabi Ports will also fund and complete dredging and widening works to the Khalifa Port approach channel and basin including EGA’s berth. The dredging is set to deepen the channel to 18.5 metres and basin to 18.0 metres basis zero tide.
EGA will use large dry bulk ships to import raw materials, without needing to transfer all or some of the cargo to smaller vessels outside the port, thus reducing long-term shipping costs and improving environmental performance.
Furthermore, the partnership between the two entities supports regional development by enhancing value to customers.
Once Khalifa Port is developed, it will be able to lead to larger ships calling in to Abu Dhabi, supporting local industries and boosting the Emirate’s position as a global maritime trade hub.
Namely, EGA will utilize capsize vessels to ship bauxite ore, the feedstock for alumina refineries, from the Republic of Guinea in West Africa, via the global shipping firm K-Line, under a separate agreement with the company.
At the moment, EGA constructs UAE’s first alumina refinery next to its aluminium smelter in Khalifa Industrial Zone Abu Dhabi, close to Khalifa Port, ensuring streamlined logistics.
After full-production is started, the Al Taweelah alumina refinery will process five million tonnes of bauxite per annum.
Abdulla Kalban noted: “Dredging Khalifa Port to allow fully-laden Capesize vessels to reach EGA’s berth will reduce our costs, simplify our bauxite supply chain, and improve our environmental performance. I am also pleased that the enhanced capabilities at Khalifa Port will enable broader trade and economic benefits for Abu Dhabi.”
Khalifa Port is located between Abu Dhabi and Dubai and serves more than 20 shipping lines.