UAE: Abu Dhabi Transport

Plans to expand Abu Dhabi’s ports network are moving ahead as local cargo traffic holds steady despite the slowdown in global shipping volumes over the past year.

Growing levels of international trade, both inbound and outbound, and a rising demand for trans-shipment services will drive expansion in Abu Dhabi’s logistics sector, with much of this activity taking place around its docks.

A multi-billion-dollar redevelopment plan for Abu Dhabi International Airport (ADIA) is expected to help the facility handle a rising number of passengers as well as assist the emirate in establishing a position as a regional aviation hub.

Railway developments are moving forward in Abu Dhabi, with the first phase of an expansive national project expected to be completed this year. A national network will decrease the emirate’s dependence on increasingly busy highways, and could be a boon to GDP growth. However, delays in scheduled passenger services will keep commuters on the highways for the next several years.

Following the significant increase in non-oil merchandise trade in 2011, market participants in the local transport and logistics sector appear to be preparing for a continued rise in activity in 2012, with one Abu Dhabi-based shipping firm recently investing $44m in a new vessel.

The transport and logistics sector is about to get a major boost, with a new port and cargo handling facility set to ease congestion and encourage long-term industrial development.