Putting In To Port

Maritime Project

Since being chosen to host the 2022 FIFA World Cup and in association with the Qatar National Vision (QNV) 2030, Qatar announced over $100 billion worth of infrastructure in the […]

Since being chosen to host the 2022 FIFA World Cup and in association with the Qatar National Vision (QNV) 2030, Qatar announced over $100 billion worth of infrastructure in the country spanning roads, bridges, highways, railways, ports, and others. Crucial to the success of these infrastructure projects is the necessity of increased capacity through the completion of the New Port Project—a $7.4 billion investment on a total area of 26 sq km between Al Wakrah and Masaieed set to be completed by 2020. The New Port Project will comprise of three major components: The New Port, a Naval Base, and Qatar Economic Zone 3 Canal. Through this development, Qatar aims to make a significant investment into the country’s future by increasing export/import capacity, security, and transshipment trade.

The undertaking of the project has been an international effort led by national contractors with over 50% of the contracts as well as multinationals. The program management services for the project are being provided by AECOM with a contract valued at $149 million with an additional $58.8 million awarded to the company two years later.

Five major contractors have spearheaded the development since the NPP’s first design and project management contracts were awarded in 2008 with manpower now totaling over 6,500 staff and 1,500 machines. These linchpin contractors included: China Harbor Engineering Company Ltd, Middle East Dredging Company (Q.S.C.), a Joint Venture between Teyseer Contracting Company W.L.L. and Consolidated Contractors Group S.A.L (Offshore) (CCC), Hyundai Engineering Construction Company/Boskalis Westminster Middle East Consortium, and HBK Contracting.

Importantly, Qatar has prioritized the commencement of the port component to become operational by the end of 2016. As such, since the end of 2014, nearly 35% of the total project is completed with 58% of the New Port is completed, along with 29% of the Naval Base and 30% of Qatar Economic Zone 3 Canal.

With the NPP investment, Qatar aims to greatly increase its container and dry bulk shipping capacity for not only imports and exports, but also international trade. The port will feature three container terminals, each with a handling capacity of 2 million TEUs per annum. It will be linked to the proposed GCC Rail Network and will connect the six GCC countries of Qatar, Oman, UAE, Saudi Arabia, Kuwait, and Bahrain. With the starting of port operations by the end of 2016, the port will have the capacity to accommodate 2 million TEUs and by 2020 have a capacity of 6 million TEUs. A total of five import and export terminals will be built which will serve as the port of entry for cargo, containers, livestock, vehicles, bulk grain, and other goods. Furthermore, the New Port will be able to accommodate the largest container vessels.

Due to these facilities, Qatar’s port capacity is expected to grow dramatically. Including transferred operations, from 2015 to 2019 container throughput is forecast to grow at an average of 10.9% per annum. Within this same time frame, tonnage throughput is forecast to grow to an average of 24.5% per annum. While having the lowest level of intra-regional trade of all GCC nations, Qatar is putting itself at the forefront of the GCC along with the UAE as a major entry point of entry for regional bound imports, and is positioning itself as a primary competitor to the Port of Jebel Ali in the UAE. Furthemore, Qatar is looking toward how the port can play an expanded role as Africa continues to develop and demand imports from the East.

With the largest greenfield port project development in the world, Qatar is aggressively pursuing its objectives in preparation for the 2022 FIFA World Cup, but is also providing the necessary infrastructure to achieve its $200 billion worth of projects in the lead up to the Qatar National Vision 2030. The NPP will enable greater capacity for Qatar to become a regional player in the shipping and regional import industry while at the same time providing an infrastructure for additional industrial development.

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