ADC announces joint-venture opportunity for Marine Services at the Port of Aqaba

This business opportunity comes inline with ADC's program to introduce private sector participation in all areas of the port's activities and to promote public private partnerships in order to upgrade the port's assets and performance.

Imad Fakhoury, Chairman and CEO of ADC, and Awwad Al Maaytah, Director General of the Aqaba Ports Corporation, were speakers at the press conference held in Amman, Jordan.

This tender comes within a comprehensive development plan, which ADC has been implementing to rehabilitate and develop the port's facilities and the logistical and marine services in Aqaba within the timeframe of 2005 and 2010. ADC previously launched an international tender 2 years ago, which attracted an international operator who won the tender to manage and operate the container terminal.

Fakhoury explained that 'Marine services, consisting of vessel towage and maneuvering along with pilotage and pilot boats as well as other small harbor craft, represent essential ancillary services without which a seaport cannot safely function. To this effect, ADC became aware that significant new investments are required, and new management, committed to providing the necessary skills enhancement to ensure improved performance, is essential. These factors mandate that ADC look for well-qualified external partners.'

To enable the Port of Aqaba to have viable, productive and profitable Marine Services, ADC is seeking a private sector investor/operator with the highest level of technical expertise and financial capabilities to manage, operate and re-equip Marine Services assets and activities at the Port of Aqaba, and also to re-equip, replace or otherwise bring up to standard the current Harbor Vessels so that they are in class and suited to the present and anticipated needs of the port and the vessels using the port. The opportunity will also include the exclusive provision of Pilotage Services for the Port of Aqaba together with a vessel repair facility for Marine Services and for third party vessels.

The new investor/operator will also be required to introduce advanced operating systems, recruit qualified Jordanian nationals to work at the port and provide employees with training both in Jordan and abroad. In addition the investor/operator will be required to enhance the safety procedures for ships, goods and passengers in line with international agreements.

Fakhoury stated that 'The new tender comes within ADC's strategy to accelerate the implementation of the master plan to develop the Aqaba Special Economic Zone (ASEZ) into a business hub. This aims to complement the institutional and legislative framework created to attract investments in tourism, entertainment and professional and logistical services.'

Fakhoury added that ADC intends to promote the public and private partnership to achieve the prominence and success exemplified by past partnerships of a similar nature in other sectors.

Fakhoury explained that the Aqaba Ports Corporation will continue to handle all responsibilities including managing the port, the coastal communication station, the Prince Hamzeh Centre for Pollution Control and other 'Harbor Master' services, in addition to managing and operating all of the ports facilities, except for the container terminal.

All interested and qualified parties are invited to submit their bids to ADC by May 7th, 2006.

Fakhoury has encouraged all Jordanian Private Sector companies, who can qualify both technically and financially, to bid for this strategic business opportunity, stating that all proposals will be evaluated on their own merits and according to international best practices.

Awwad Al Maaytah said, 'The main port is undergoing a series of development and expansion projects which include the marine services and port facilities. The Ports Corporation, along with ADC, are seeking to attract a new investor/operator that has the expertise and experience to modernize the marine services in the Aqaba port according to international best practices, and in line with the Government's policy to enhance the private sector's role and contribution in the service sector.'

Al Maaytah reiterated that this tender represents the first stage of the development project.

ADC owns the assets of the ports of Aqaba and is responsible for developing its infrastructure, whilst the Aqaba Ports Corporation is responsible for the ports' operations and management according to an agreement between ADC and the Ports Corporation.

Fakhoury and Al Maaytah also announced the launch of a new Productivity Incentive Program for all Aqaba Ports Corporation employees, aimed at increasing motivation and productivity amongst the workforce.

This program is financed by ADC and based on the Port's estimated production volume for 2006, which is expected to reach 20 million tons (excluding the Container Terminal). According to the program, monthly bonuses will be granted to port's employees, the percentage of which is calculated according to the percentage of monthly surplus on the estimated production volume. The cost of this Program is estimated at around JD 2 million annually. The program is considered to be the first of its kind to be implemented in Aqaba Ports or in any other public service sector in the kingdom. It is expected to provide an extra income of around JD 300-800 per employee per year according to their position within the port.

The ADC owns strategic assets including the Aqaba ports, King Hussein International Airport, along with strategic parcels of lands, as well as development and management rights in key sectors of the ASEZ economy. By leveraging its existing assets, ADC will accelerate the implementation of the ASEZ Master Plan in a manner that ensures integrated development and transforms Aqaba into a leading Red Sea business hub and leisure destination.