In a significant move aimed at bolstering trade and economic development, AD Ports Group and the General Company for Ports of Iraq (GCPI) have entered into a preliminary agreement to establish a joint venture for the development of Al Faw Grand Port and its economic zone. This partnership also extends to potential investments, management and operation of ports, economic zones, and related infrastructure across Iraq.
Foundation for collaboration
Key figures from both the UAE and Iraq witnessed the agreement signing, including Razzaq Muhaibas Al Saadawi, Iraq’s minister of transport, and Dr. Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade. Captain Mohamed Juma Al Shamisi, managing director & group CEO, AD Ports Group, and Dr. Eng. Farhan Muhesen Al Fartosi, director general of GCPI, signed the agreement.
The latest agreement follows a memorandum of understanding (MoU) that the two entities signed in September 2021, and a subsequent addendum in August 2023 which aims to enhance cooperation. By joining forces, AD Ports Group and GCPI aim to leverage their respective expertise to attract international terminal operators, foster global trade relations, and develop commercial sea corridors, thereby contributing to the economic advancement of Iraq.
Driving efficiency and capability
A key focus of the preliminary agreement between AD Ports Group and GCPI is to provide advanced management and operating models for Al Faw Port and the economic zone. The agreement also involves studying the mechanism of developing, financing, managing, operating and maintaining the project. Hence, it aims to enhance overall efficiency and operational capabilities. The collaboration will also entail in-depth feasibility studies and exploring investment opportunities in Iraq.
“Al Faw Grand Port and Economic Zone project is of great importance to the Iraqi government…this project will strengthen maritime transport and freight shipping between Asia and Europe,” stated Iraq’s minister of transport.
For his part, Dr. Al Zeyoudi said: “The agreement signed today between AD Ports Group and the General Company for Ports of Iraq is in line with the directives of our wise leadership towards strengthening economic ties and increasing bilateral trade volumes between the two countries.”
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Leveraging port’s strategic location
For his part, Al Shamisi explained that GCPI’s collaboration with AD Ports Group reflects a shared commitment to advancing the development of Iraq’s ports and economic zones. Both parties will create a joint operational policy which includes partnerships with key international shipping lines to meet the project’s targets. Moreover, Iraq’s ports stand out with their strategic location linking commercial lines between the east and the west. This will further support opportunities for trade, investment, and economic growth in the country.
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