Dubai: DP World, the United Arab Emirates region and Petrochem Middle East, the largest distributor of chemicals in the Middle East and Africa, have signed a 30-year lease agreement that expands its operations in the region.
Petrochem Middle East will invest between 80 and 90 million dollars in the development of a chemical terminal on Pier 7, adjacent to the berth dedicated to the handling of chemicals in the port of Jebel Ali.
The agreement was signed by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and Yogesh Mehta, CEO of Petrochem Middle East, in the presence of Abdulla Bin Damithan, CEO and Managing Director of DP World – UAE Region and Jafza .
“For years, the United Arab Emirates and the Middle East region have been recognized as a thriving hub for the petrochemical industry. Despite the very volatile market due to the pandemic, during 2020 the chemical production of the GCC increased by 1.5% compared to a global decrease of 2.6% ”, said Abdulla Bin Damithan, CEO and Director General of DP World – UAE Region and Jafza.
Serving regional industry
DP World, the trade and logistics hub of the UAE region, including Jebel Ali Port and Jebel Ali Free Zone (Jafza), has been contributing to product trade and logistics for years. chemicals in the region thanks to its advanced ecosystem. While the port supports more than 10,000 chemical manufacturers and traders, the free zone has a petrochemical hub that covers an area of four million m², housing more than 500 petrochemical companies employing more than 6,500 people. In addition to the container terminals with a capacity of 22.4 million TEU, the port of Jebel Ali, which has 11 berths, also has a liquid bulk terminal, spread over two million m².
A mega installation
The facility is expected to be completed by the third quarter of 2023 and will supply chemical raw materials in large quantities to traditional and new industries to come in the UAE. In its maximum capacity, the terminal will have a capacity of around 40,000 CBM for the storage of various products and will also be equipped with distillation and processing units. It is likely to contribute over $ 200 million annually in new trade to and from Dubai, thus contributing to the DP World Trade Bridges and the $ 2 trillion project.
“Since our inception at Jafza, we have had the privilege of having an ideal business environment which has really contributed to our growth numbers. Today our annual turnover exceeds 2.5 billion dirhams and with the new project we expect short and long term gains of around 10-15% of our investment ”, said Yogesh Mehta, CEO of Petrochem Middle East.
Petrochem Middle East has been part of Jafza since its creation in 1995. It is the second distribution and storage terminal in Jebel Ali and the fifth in the world. With this project, Petrochem proposes to build 24 to 30 bulk chemical storage tanks of various sizes, large and small and some stainless steel tanks with an overall capacity of 40,000 m3. It also includes a daily storage yard, a tanker and truck loading facility, a nitrogen generation plant and automatic drum filling machines.