Abu Dhabi Ports, which operates ports, industrial cities and free zones in the emirate, have formed a joint venture and signed a 35-year concession agreement with the French transportation and shipping company CMA CGM Group to develop and operate a new terminal at Khalifa Port.

The terminal will be managed by the joint venture company, 70 percent of which is owned by CMA CGM’s subsidiary CMA Terminals and 30 percent owned by Abu Dhabi Ports. The partners are likely to commit about $154 million to the project, Abu Dhabi Ports said in a statement on Thursday.

The construction will begin this year and the project will be handed over in 2024. The terminal will have an initial annual capacity of 1.8 million twenty-foot equivalent units (TEUs), the company said.

“This agreement with the CMA CGM Group … will significantly speed up trade and the development of industry in the UAE and beyond,” said Falah Al Ahbabi, chairman of Abu Dhabi Ports.

“As well as driving increased trade volumes through our port … we expect the facility’s capacity and added trade links with other high-profile port destinations will drive investment into local businesses and our industrial zones, fast-track the development of key sectors including manufacturing and logistics and raise demand for manpower.”

Abu Dhabi Ports, owned by one of the region’s largest holding companies, plans to list shares on the Abu Dhabi Securities Exchange. The listing is expected to take place before the end of this year, subject to market conditions and regulatory approvals, ADQ said in earlier this week.

Abu Dhabi Ports owns and manages 11 ports and terminals in the UAE and Guinea, including

Khalifa Port, Zayed Port, Musaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and Abu Dhabi Cruise Terminal. It operates more than 550 square kilometres of industrial zones within Khalifa Industrial Zone Abu Dhabi (Kizad) and ZonesCorp, the largest integrated trade, logistics and industrial business grouping in the Middle East.

Abu Dhabi Ports will develop supporting marine works and infrastructure for the new terminal, the statement said. This includes up to a total of 1,200 metres of quay wall, a 3,800m breakwater and 700,000 square metres of terminal yard.

“The addition of another leading shipping company will make Khalifa Port a hub for three of the world’s top four shipping companies,” said Capt Mohamed Al Shamisi, group chief executive of Abu Dhabi Ports. “This addition creates opportunities to open trade routes to new markets in Europe, Africa, Western Asia and South Asia.”

The terminal will provide CMA CGM with a new regional hub and enable the company to develop its service between Abu Dhabi and South Asia, Western Asia, East Africa, Europe and the Mediterranean, as well as the Middle East and the Indian subcontinent, the statement said.