China Shipping Container Development Co has signed an agreement with Kuwait-based KGL Ports International (KGL PI) in Cairo for 20 per cent equity participation at the new Damietta Container Terminal.

The terminal expects to handle up to 950,000 teu in a few years. Signing the agreement were Fang Meng on behalf of China Shipping and Mohammad Al-Mazeedi, chairman & CEO of KGL Pl. China Shipping is one of the fastest growing shipping companies in the world with 400 ships in operation and several new vessels being built. The company plans to use the new Damietta container Terminal as its major hub in the Mediterranean with its vessels of over 8,000 teu capacity expected to call there.
KGL PI emphasised that this strategic partnership with China Shipping was part of the commercial strategy it developed to promote speedy development of the new Damietta Container Terminal and its operations. “This strategy involves several other shipping lines from Asia, the Middle East & Europe,” KGL PI statement said.   
The agreement was signed in the presence of Capt Rafik Abdul Naser chairman of Damietta International Ports Co, which was established pursuant to the concession agreement signed by DPA & KGL PI to develop, built, equip, manage and operate a new container terminal at Damietta with a total capacity of 4 million teu.
As well as Damietta Port, KGL PI has won a concession to develop, operate and manage the container terminal of Ra Al Khaimah Port in the UAE for 23 years from November 2004. It is currently modernizing the terminal and is expanding capacity, the first phase of which will create a capacity of 350,000 teu by early 2007.
KGL PI also has long-tern concessions to manage, operate and develop Kuwait’s Shuaiba Port and Jeddah Islamic Port.
The company has signed an MoU with the Maldives government to build, operate and manage Maldives Port and another MoU with Tidewater Middle East to develop ports inside and outside Iran.
KGL PI is a division of multimodal stevedoring, transportation and logistics group Kuwait and Gulf Link Transport Co KSC.