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Abu Dhabi\'s Khalifa Port Expansion Surpasses 7 Billion Yuan Investment, Paving the Way for Digital Tech Enterprises
Abu Dhabi\'s Khalifa Port Expansion Surpasses 7 Billion Yuan Investment, Paving the Way for Digital Tech Enterprises
2022-12-30

Recently, UAE President Sheikh Mohammedbin Zayed al-Nahyan announced the start of the expansion project of Khalifa Port, with a total investment of 4 billion dirhams (about 7.6 billion yuan). After the expansion, by 2030, the cargo handling capacity of Khalifa port will be increased to 15 million TEU per year and the general cargo handling capacity to 25 million tons. With all of these efforts, it is expected to become one of the largest deepwater ports in the world, with an estimated value of 18.9 billion dirhams (about RMB 35.9 billion yuan). In recent years, China-Arab relations have been warming up with increasing trade exchanges. As an essential node of the global transportation network, Khalifa Port will play a more and more important role in global economy and trade.

In 2021, the bilateral trade volume exceeded US $230 billion, and the crude oil imported by China from GCC countries exceeded 200 million tons. Both sides have extensive and in-depth traditional cooperation in production capacity, infrastructure construction, investment and finance, and 5G communication, new energy, aerospace, and digital economy, and other high-tech cooperation are gaining momentum. The new business card and new industrial prospect of “Intelligent Manufacturing” show the new look of the development of China Shipping.

From the ancient Silk Road commodity trade to today's high-tech in-depth cooperation, no matter how the years change, the four principles of peaceful cooperation, openness and inclusiveness, mutual learning, and mutual benefit and win-win cooperation have always been the main theme of China-Arab historical exchanges. The practice of Westwell in the United Arab Emirates started from the 2019 quay crane intelligent cargo handling project; and in 2021, the landing application of its new energy autonomous driving commercial vehicles connected all operation and production links of the port to help the port to reduce cost and increase efficiency.

01. Significance of expansion: strengthen trade carrying capacity to build a world logistics hub

As the first semi-automated terminal in the Middle East, Khalifa Port is located between Abu Dhabi, the capital of the United Arab Emirates, and Dubai, adjacent to the Khalifa Industrial Zone Abu Dhabi (KIZAD). In December 2012, Khalifa Port was officially opened by the late President of the United Arab Emirates, Sheikh Khalifa, and currently serves more than 25 container shipping companies, covering more than 70 countries and regions.

As a diversified niche market, the United Arab Emirates (UAE) has adopted the “Belt and Road” Initiative (BRI) for bilateral benefits boosting the construction and improvement of infrastructure herein such as transportation corridors, storage units, trade centers, etc. Ali Al Dhaheri, ambassador to China of the United Arab Emirates, told the BJNews. com. cn that although the original intention was to promote trades, in fact, technology, communications, cultural exchanges, tourism and education, etc. multiple fields have been benefited. At the end of 2020, China had invested more than 34 billion dirhams (about 65.2 billion yuan) in the United Arab Emirates and non-oil trade between the two countries reached about 220 billion dirhams (about 421.8 billion yuan) in 2021, an increase of 27% over 2020.

Khalifa Port is the hub of the BRI and an important link for mutual beneficial cooperation between China and the UAE. Since September 2016, COSCO Shipping Group has executed a license agreement with Abu Dhabi Ports Authority to jointly operate the Phase II Container Terminal of Khalifa Port in Abu Dhabi Ports; in November 2017, the Project has been kicked off; and in December 2018, the Phase II Container Terminal of Khalifa Port was officially opened. With a total investment of 4 billion dirhams (about RMB 7.6 billion yuan), the expansion project of Khalifa Port will include southern terminals, logistics areas, and Abu Dhabi Ports. The ports area will be increased from 243 hectares to 709 hectares, and the terminal wall will be increased from 2.3km to 11.7km.

Currently, the United Arab Emirates is the transfer station for 60% of China's trade goods in West Asia and North Africa. With the expansion of ports and the construction of railway bridges, the UAE will have stronger logistics and trade carrying capacity to become a more important logistics hub in the world, further driving the economic development of the countries and regions along the “Belt and Road”.

02. Westwell Progressively Deepens Practice and Scenarios for Innovative Operation Modes

The practice of Westwell in UAE began in 2019. With the help of COSCO Shipping Group, Westwell has applied the “quay crane artificial intelligence cargo handling system” to Khalifa Port in Abu Dhabi. The system has more comprehensive and advanced identification function than the traditional cargo handling. Through the leading industry “video stream+artificial intelligence” technology, it can identify the presence of container lead seal, hazards identification, container position, etc., and creatively and simultaneously identify two 40-foot containers under the put-away sheared quay crane. So far, the recognition rate of the system has been closed to 100%, which greatly reduces the later maintenance cost and improves the accuracy of the quay crane for loading and unloading containers on ships, with the highly recognization by users.

After getting good feedback from the preliminary practice, Westwell made further progress. At the end of 2020, it concluded an agreement with COSCO Shipping, initiating the new mode of commercial “agent operation” of Q-Truck fleet, to drive Halifa Port become the first port in the Middle East to deploy autonomous driving and help port users to realize the green and intelligent upgrading of horizontal container transportation at low cost. In 2021, Westwell new energy autonomous driving commercial vehicle Q-Truck was officially put into operation at Khalifa Port in Abu Dhabi, and connected to this large-scale modern yard automation terminal in the Middle East through autonomous driving transportation capacity.

Saif Al Mazrouei, head of the port group at Abu Dhabi Port, once said in an interview with Transport And Logistics Middle East, an international industry media, that: “The autonomous driving truck Q-Truck of Westwell adopts artificial intelligence, Internet of Things, and pure electric technology, enhancing the port operation and environmental benefits, further strengthening the leading advantages of Khalifa Port in the Middle East maritime transport, so as to be a great example of upgrading the port logistics industry assisted by innovative technology.”

The new energy autonomous driving commercial vehicles of Westwell respond positively to the UAE's zero-carbon-related strategies. It is understood that the UAE has made the climate change agenda a priority, and launched a series of projects such as the “Net Zero Emission Strategy Initiative by 2050”, committed to renewable clean energy and low-carbon emissions for the sustainability of economic growth, as it mirrors with China's green economy strategies. It is estimated that the new energy autonomous driving commercial vehicle Q-Truck of Westwell can reduce the carbon emission for customers by 10.7 tons per year compared with that of diesel vehicles. At the same time, single vehicle of Q-Truck will save about one hundred thousand yuan of energy cost and vehicle maintenance cost every year, which greatly helps enterprise customers to reduce cost and increase efficiency to realize green development.

The recent launch of a digital economy strategy by the UAE aimed at increasing the contribution of the digital sectors to the country's GDP from about 10 per cent to 20 per cent within a decade represents an opportunity for China's high-tech companies to go global. “If you want to go fast, walk alone; and if you want to go far, walk together.” It is an Arabic proverb that President Xi Jinping of China quoted in his speeches for many times. When China-Arab usher in the golden age, Westwell, as one of the digital enterprises to go globe, will continue to take autonomous driving products as the pivot to build a container transportation capacity network, so as to build a stable future at a new historical starting point to promote the new energy and intelligent upgrading of the global logistics scenario.

 

References:

Emirates News Agency《Mohamed bin Zayed inaugurates Khalifa Port expansion》

https://www.wam.ae/en/details/1395303111075

Transports& Logistics,《Khalifa Port to Get Region’s First Autonomous Port Truck System》

https://www.transportandlogisticsme.com/smart-sea-freight/khalifa-port-to-get-regions-first-autonomous-port-truck-system

BJ News “UAE Ambassador to China: Looking forward to the ‘Belt and Road' Initiative to Explore Solutions for Peaceful Development”

https://baijiahao.baidu.com/s?id=1745040915585158971&wfr=spider&for=pc

Xinhua News “Xi Jinping Published Signed Articles in Saudi Arabian Media”

https://mp.weixin.qq.com/s/Gub4NFIr7q2DARmGMy_C3Q