ABU DHABI AIRPORT AND SEAPORT EXPANSION PROJECTS

UNCLAS ABU DHABI 000335 SIPDIS SIPDIS DEPARTMENT FOR NEA/ARP, EEB/TRA/ATP E.O. 12958: N/A TAGS: EAIR PREL ECON AE SUBJECT: ABU DHABI AIRPORT AND SEAPORT EXPANSION PROJECTS ¶1. (U) Summary. During the recent Abu Dhabi Economic Forum Khalifa Al Mazroui, CEO of Abu Dhabi Airports Company, and Ahmed Al Calili, CEO of Abu Dhabi Ports Company, outlined the expansion plans for the Abu Dhabi airport and Abu Dhabi seaport respectively. Both Al Mazroui and Al Calili presented the physical expansion plans of the airport and port and also discussed the potential opportunities for industrial investment in the transportation sector. End summary. ¶2. (U) Khalifa Al Mazroui, CEO of Abu Dhabi Airports Company, said that a second runway is under construction at the Abu Dhabi airport and should be ready by March 2008. He also explained that a new midfield terminal and control tower will be built between the two runways. The new control tower will be fully operational in June 2008 and the midfield terminal should be finished in 2010. Al Mazroui also stated that the Abu Dhabi airport will double its cargo capacity in the coming months. ¶3. (U) Al Mazroui said the Airports Company is responsible for the following areas: 1) safety, 2) security, 3) customer service, 4) profitability, and 5) the midfield terminal. Opportunities for the private sector to invest include: 1) the new cargo terminal, 2) in-flight catering services, 3) an independent power plant for the airport, and 4) an independent cooling facility. ¶4. (U) Ahmed Al Calili, CEO of Abu Dhabi Ports Company, also spoke about the expansion of the Abu Dhabi seaport, Mina Zayed, and outlined potential investment opportunities. Al Calili said in 2006 the rate of container movement had increased from 16 to 25 an hour. Since Mina Zayed is surrounded by the city of Abu Dhabi, the area of the old port will be re-developed for commercial use and Abu Dhabi will begin constructing a new port in Taweela called Khalifa port. Khalifa port will be an offshore island 4.5 kilometers away from the coast in order to protect the marine ecology, according to Al Calili. The port will be 2.2 square kilometers, with the first vessel expected to arrive in August 2009. A free zone will be established at Khalifa port and an unnamed aluminum company has already committed to establishing a manufacturing plant at the port. ¶5. (U) Al Calili noted that Khalifa port is a $1.5 billion project and eight companies are currently bidding for the reclamation work to build the port. There will also be opportunities for the private sector to invest in the zone's infrastructure, including utilities and real estate development. SISON