UAE - Mubasher: DP World has signed a 30-year lease agreement with Petrochem Middle East, the largest chemical distributor in the Middle East and Africa, to develop a chemical distribution terminal.
Under the agreement, Petrochem Middle East will invest between $80 million to $90 million in developing a chemical terminal on Quay 7, adjacent to the dedicated chemical handling berth within Jebel Ali Port, according to a press release on Wednesday.
With this project, Petrochem proposes to build 24-30 bulk chemicals storage tanks of different sizes and some stainless-steel tanks, with an overall capacity of 40,000 m3.
The project will also include a day tank farm, tanker and truck loading facility, nitrogen generation plant, and automatic drum filling machines.
Expected to be completed by the third quarter (Q3) of 2023, the terminal will provide large volumes of chemical raw materials to traditional and new industries coming in the UAE.
The 400,000 square feet quayside state-of-the-art chemical distribution terminal is the second distribution and storage terminal in Jebel Ali and the fifth in the world,
The terminal will annually contribute up to $200 million of new trade to and from Dubai, in addition to the DP World Trade Bridges and the 2 trillion project.
The CEO and Managing Director of DP World - UAE Region and Jafza, Abdulla Bin Damithan, said: "Whereas Jafza, due to its location, is a strategic access point to the Middle East, Africa, and South Asia, contributing around 70% of the UAE's foreign trade in petrochemical products."
Meanwhile, the CEO of Petrochem Middle East, Yogesh Mehta, remarked: "Today, our annual turnover is over AED2.5 billion and with the new project, we are expecting short-term and long-term gains of about 10-15% of our investment."
