Abu Dhabi to take over port management from Dubai

[December 30, 2010]  DUBAI, United Arab Emirates (AP) -- Abu Dhabi is taking over management of the city's port from neighboring Dubai's port firm DP World, which manages similar facilities around the world.

DP World and Abu Dhabi Terminals said Thursday that ADT will assume management control of Mina Zayed in the new year, when an existing management services agreement expires. The move won't have a material effect on DP World's earnings, according to a regulatory filing.

Plans for management of a larger deep-water facility known as Khalifa Port that is expected to open in 2012 have not been decided, the companies said.

The companies didn't provide a reason for the change but say they will continue to work closely together.

Abu Dhabi controls the United Arab Emirates federation's presidency and most of the OPEC member's oil wealth. Like Dubai, it's working to diversify its economy with help from state-sponsored companies and is eager to build its own industrial expertise.

"We are committed to improving the capabilities of ADT to better serve our customers and to enhance the capabilities of the company in anticipation of the move to the new Khalifa Port," ADT Chairman Tawfeeq al-Mubarak said.

ADT is a division of the state-owned Abu Dhabi Port Co., which was set up in 2006 to manage sea trade in the emirate.

DP World is considered one of Dubai's industrial crown jewels. It is the world's fourth largest port operator, with business at 50 cargo terminals on six continents, including the Mideast's largest in Dubai. It is part of struggling state conglomerate Dubai World, but is not included in its parent's $24.9 billion debt restructuring.

Last week, DP World sold the bulk of its Australian businesses to a Citi investment fund and an unnamed investor for $1.5 billion in a bid to trim its debt. The deal left it with a 25 percent stake in the operations and ongoing management oversight of the ports in Brisbane, Sydney, Melbourne, Adelaide and Fremantle.

DP World is hoping to offer a secondary listing for its shares on the London Stock Exchange in the new year, prompting speculation Dubai might sell off a bigger stake in the firm. About a fifth of DP World's shares are currently available to investors through a listing on the Nasdaq Dubai.

[Associated Press; By ADAM SCHRECK]

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