International Container Terminal Services, Inc. (ICTSI) is partnering with the Iraqi government, and investing an initial $130 million in Umm Qasr Port.
ICTSI said it will operate and expand container and general cargo facilities in the port on Iraq’s Gulf coast bordering Kuwait.
The agreement has given the rights to ICTSI to manage and operate for 10 years in one of the 21 docks of Iraq’s largest port facilities.
Moreover, the port operator will also construct a new container and general cargo terminal in Iraq under a build-operate-transfer agreement for 26 years.
Phase 1 of the Umm Qasr expansion will include a new 200-meter quay wall and storage yard with a capacity of 300,000 twenty-foot equivalent units (TEUs), ICTSI said in a press release.
At full build, the facility will have 600 meters of quay and a 900,000-TEU capacity.
“This is by far the largest ever private investment in Iraqi ports. We are excited about this opportunity,” Enrique K. Razon Jr., ICTSI chairman and president, said.
Located on Iraq’s Gulf coast, Umm Qasr is the country’s largest port and the main gateway to the Iraqi market.
The port handles liquid and dry bulk, general cargo and containers. It has 21 berths, with total berth length of 5,000 meters. Container throughput totaled 500,000 TEUs in 2013.
“The port has seen impressive growth over the past decade ago, and this is testimony to the spirit and skills of Umm Qasr Port’s management team,” said Hans-Ole Madsen, ICTSI senior vice-president for Europe and Middle East Region.
“But current cargo volumes are still only a fraction of what is expected in the future. The Iraqi economy is being transformed as Iraq develops its industrial potential and catches up with its neighboring economies,” Madsen said.
