AD Ports Group Inks Luanda Port Concession

26 April 2024

Abu Dhabi's AD Ports Group is set to invest more than US$251 million in the modernisation of the multi-purpose terminal at the Port of Luanda in Angola over the next three years, after securing a concession agreement to operate the facility.

On 23 April, AD Ports Group signed agreements with the local Unicargas (the current operator) and Multiparques to take an 81% stake in the joint venture that will operate the terminal under a 20-year concession agreement with the Luanda Port Authority.

Under the terms of the concession agreement, which is extendable for another 10 years, the joint venture will upgrade the existing multi-purpose facility to a container and roll-on/roll off (ro/ro) terminal.

The concession area will be enlarged from 178,000 square metres to 192,000 square metres, the draft will be expanded from 9.5 metres to 16 metres and the quay wall will be upgraded. Additional ship-to-shore cranes, gantry cranes and other state-of-the-art equipment will be installed and the IT systems will be modernised.

The redevelopment of the terminal is expected to be completed in the third quarter of 2026. It will increase the facility’s container handling volumes from 25,000 TEUs to 350,000 TEUs, and ro/ro volumes to more than 40,000 vehicles. During the three-year redevelopment period, the terminal’s container volumes will be handled at a nearby berth, while excess volumes will be moved to Multiparques’ Viana inland container depot (ICD).

AD Ports Group has also acquired a 90% stake in another joint venture with Unicargas that will provide integrated logistics and freight forwarding services for the port and the broader Angolan logistics market.

The business, to be operated by Noatum Logistics, part of AD Ports Group, will manage the movement of containers to the Viana ICD and offer short and long-haul transport within Angola and to neighbouring countries. It will combine the UAE-based firm’s global expertise with the knowledge, capacities and assets of the local Unicargas team.

Specifically, Noatum will assume management and operations of Unicargas’ existing fleet of trucks and different logistics sites across the country. In addition, it will invest in new machinery, reefer and flat-bed trucks and upgrade the IT systems to plug into Noatum Logistics’ digital ecosystem for end-to-end supply chain visibility.

Over the course of the 20-year concession, the investment in the modernisation of the terminal and the development of the logistics business could reach more than US$379 million.

The Port of Luanda handles more than 76% of Angola’s container and general cargo traffic, which is projected to grow by 3.3% a year over the next decade. It also serves as a transhipment hub for landlocked countries in Central and West Africa, including the Democratic Republic of Congo and Zambia.

“The multi-purpose terminal will be modernised to attract business from leading global shipping lines and offer the highest levels of service efficiency and quality,” said Mohamed Al Shamsi, managing director and group chief executive, AD Ports Group.

Angola’s transport minister, Ricardo Daniel Sandão Queirós Viegas de Abreu, said: “The Port of Luanda is not just Angola's main maritime gateway, it is a critical hub for regional trade and economic vitality. Through our strategic partnership with AD Ports Group, which is part of a broader effort involving multiple first-class stakeholders, we will transform the port into a modern, multi-faceted facility that will significantly enhance our logistic capacities and stimulate economic growth across Central-West Africa.”

AD Ports Group is also exploring opportunities in Angola’s offshore industry and other maritime sectors to deploy assets such as work accommodation vessels, passenger ferries, platform supply vessels, and other maritime craft and infrastructure.

Captain Mohamed Juma Al Shamisi, our Managing Director and Group CEO, met with His Excellency João Manuel Gonçalves Lourenço, President of the Republic of Angola, in Luanda today, to discuss the collaboration and development of Angola’s logistics and maritime sectors.

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