Dubai Port World (DP World) has signed a joint venture with the Yemen Gulf of Aden Port Corporation to operate and develop the container terminal facilities at the Port of Aden in Yemen. The JV includes the lease of the Aden container terminal and the nearby Ma’alla container terminal, as well as a commitment by the joint venture to make an initial investment of US$200mn in further developing the port.
The agreement is intended to establish Aden as a key cargo port in the region. The Gulf of Aden is a deepwater basin running between Yemen and Somalia, and is a part of the commercial shipping route from the Indian Ocean to the Mediterranean Sea via the Suez Canal.
“It is exciting to see the potential of Aden as a natural transhipment hub being developed and further realised,” comments David Bennet, a partner at Clyde & Co, the law firm advising the Yemen Gulf of Aden Port Corporation on the JV.
Fellow Clyde & Co partner, Andrew Watson adds: “This deal is clear evidence of the willingness of major companies to invest in the Republic of Yemen. It is also a further indicator not only of the robust economic conditions across the region, but also of the ongoing pan-regional investment in significant infrastructure.”
The Yemen Gulf of Aden Port Corporation is an entity owned by the government of Yemen, while Dubai headquartered DP World is recognised as one of the largest marine terminal operators in the world, with 45 terminals and 13 new developments across 29 countries.
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