Gulftainer Signs 50-year, $600 million concession to Operate and Expand Port of Wilmington in Delaware, USA
Gulftainer the world’s largest privately-owned independent port operator and logistics company based in the UAE, finalised a 50-year concession with the State of Delaware in the USA to operate and develop the Port of Wilmington, significantly expanding the company’s global footprint and reach. The agreement, signed by Gulftainer’s subsidiary GT USA, will see an expected investment of up to $600 million in the port to upgrade and expand the terminal and to turn it into one of the largest facilities of its kind on the Eastern Seaboard.
The port deal represents the largest operation ever run by a UAE company in the United States, as well as the largest investment ever by a private UAE company in the country.
At a public signing ceremony held in Wilmington, Governor John Carney of Delaware signed the agreement with Badr Jafar, Chairman of the Executive Board of Gulftainer, in the presence of Delaware Secretary of State Jeffrey Bullock and other state officials, as well as H.E. Yousef Al Otaiba, the UAE Ambassador to the US and other dignitaries.
The 50-year concession follows a year of negotiations and a thorough evaluation of Gulftainer’s capabilities globally, including in the USA, where it currently operates the Canaveral Cargo Terminal in Port Canaveral, Florida and provides services to the U.S. Armed Forces as well as the US Space Industry. The Delaware concession agreement completes a preliminary agreement between Gulftainer and the State of Delaware, as well as the completion of a formal review by the Committee on Foreign Investment in the United States (CFIUS), granting Gulftainer exclusive rights to manage the Port.
Gov. John Carney, Governor of the State of Delaware, said: “This historic agreement will result in significant new investment in the Port of Wilmington, which has long been one of Delaware’s most important industrial job centers. For decades, jobs at the Port have helped stabilize Delaware families and the communities where they live. I was proud to help make our partnership with Gulftainer official today, and I want to thank members of the General Assembly, the Diamond State Port Corporation, Gulftainer, and all of our partners who have helped make this agreement a reality.”
Gulftainer plans to invest up to US$600 million in the port, including $400 million on a new 1.2 million TEU (twenty-foot equivalent units) container facility at DuPont’s former Edgemoor site, which was acquired by the Diamond State Port Corporation in 2016.
Badr Jafar, Chairman of Gulftainer’s Executive Board, said: “We are proud to be making this long-term commitment to the State of Delaware, its community and its economy. This landmark agreement builds on Gulftainer’s 43-year track record of delivering excellence and dependability in ports and logistics operations around the world, and we are confident that this public-private partnership will propel the Port of Wilmington towards becoming the principal gateway of the Eastern Seaboard.”
Mr Jafar added, “since Gulftainer’s entry into the US through our operations in Port Canaveral in 2015, we have discovered major untapped potential in this sector and we will continue to look for attractive investment opportunities in the region.”
H.E. Yousef Al Otaiba, UAE Ambassador to the USA said, “The UAE and US have a strong, vibrant investment relationship that delivers meaningful and measurable benefits to businesses, and creates jobs in both countries. Gulftainer’s investment in the Port of Wilmington is a perfect example of this important economic partnership. This deal will create new jobs in Wilmington and generate additional economic benefits to other communities across Delaware.”
Plans for the Port also include development of all cargo terminal capabilities at the facility and enhancement of its overall productivity. Gulftainer will also establish a training facility at the development site specifically for the Ports and Logistics industries that is expected to train and upskill up to 1,000 people per year.
Peter Richards, Group CEO of Gulftainer, said: “Gulftainer has been fortunate to be at the forefront of transforming port and logistics operations in four continents around the world. This deal is a milestone in our operating history, and will provide us the platform to make a real difference to the sector on the US East Coast by working closely with the State of Delaware to achieve significant enhancements across the board.”
The Port of Wilmington opened in 1923, and is a fully serviced deep-water port and marine terminal strategically located on 308 acres at the confluence of the Delaware and Christina Rivers. It is the top North American port for fresh fruit imports into the USA and has the largest dockside cold storage facility in the Country.
The relationship between the US and UAE has long been underpinned by a shared commitment to promote strong trade and investment ties. In recent years total bilateral trade between the UAE and US has grown from approximately $5 billion in 2004 to over $24 billion in 2017. The US had a $15.7 billion trade surplus with the UAE, its third largest trade surplus globally.
Gulftainer is the world’s largest privately owned independent port operator. Established in the Emirate of Sharjah in 1976, the rapidly expanding ports and logistics company has built up a strong presence in various parts of the world. In 2017 and 2016, The Seatrade Maritime Awards named Gulftainer the Terminal Operator of the Year in the Middle East, Indian Subcontinent and Africa region. Gulftainer won the ‘Technology Implementation of the Year’ category in the Logistics Middle East Awards 2017. It also won the Logistics Middle East CSR Initiative of the Year award in 2018.
In the UAE, the company operates two main ports on behalf of the Sharjah Port Authority – Sharjah Container Terminal (SCT) and Khorfakkan Container Terminal (KCT). Its flagship terminal, KCT, was recognised by the Journal of Commerce as the fastest terminal in the MENA region and the third-fastest in the world.
Outside the UAE, the Gulftainer Group operates and manages ports and logistics businesses in several countries including Iraq (Iraq Container Terminal, Iraq Project Terminal and Umm Qasr Logistics Centre), Pakistan (GTL-MTI), Brazil (Recife Port), Lebanon (Tripoli Container Terminal) and Turkey (Momentum Logistics). In Saudi Arabia, Gulftainer acquired a 51 per cent stake in Gulf Stevedoring Contracting Company (GSCCO) in June 2013, and now operates the Northern Container Terminal in Jeddah, Jubail Industrial Port and Jubail Commercial Port. Canaveral Cargo Terminal in Florida, USA, opened in June 2015 following the signing of a 35-year agreement that made Gulftainer the first port management company from the Middle East to operate in the United States.
Currently handling an annual throughput of 5.2 million TEUs, Gulftainer aims to expand its global portfolio in the next 10 years to triple business volume worldwide to more than 10,000 vessel calls and triple container handling to 15 million TEUs. For further details, please visit www.gulftainer.com.
About GT USA
GT USA is the U.S. division of Gulftainer, the world’s largest privately owned, independent terminal operating and logistics company with operations and business interests in the Middle East, the Mediterranean, Brazil and the United States. The company signed a 35-year agreement with the Canaveral Port Authority in Florida, marking Gulftainer’s first venture in the United States. In addition to containers, Canaveral Cargo Terminal also handles heavy equipment, vehicles and boats as well as breakbulk, lumber and heavy lift cargo. GT USA also manages a 40,000 square-foot warehouse at Port Canaveral. GT USA is located at 445 Challenger Road, Suite 201, Cape Canaveral, Fla. 32920. For more information, go to www.gulftainer.com/US