The Battle for Port Dominance: AD Ports vs. DP World in Luanda, Angola

The Port of Luanda in Angola is about to witness a fierce competition between two major Arab companies as AD Ports officially begins operations at the port under a long-term concession agreement. AD Ports, a prominent operator based in Abu Dhabi, has recently taken over the management and development of a significant multipurpose terminal and associated logistics business at the port.

Last year, in April, AD Ports entered the Angolan market by acquiring an 81 percent stake in the terminal and a 90 percent shareholding in a logistics business through agreements with local firms Unicargas and Multiparques. The company secured a 20-year concession with the option for a 10-year extension to operate the Noatum Ports Luanda terminal.

This move by AD Ports sets the stage for a head-to-head competition with Dubai-based DP World, which has been operating another multipurpose terminal at the port since 2021 under a 20-year concession. DP World is investing $190 million to upgrade infrastructure and enhance efficiency at its terminal.

With both giant operators vying for a larger share of the port’s business, which handles the majority of Angola’s container and general cargo volumes and serves as a gateway to neighboring landlocked countries like the Democratic Republic of the Congo and Zambia, fierce competition is expected.

AD Ports has announced plans to invest $250 million over the next two years in modernizing the terminal and expanding the logistic facility, with a total commitment of $380 million over the concession period. Key investments will focus on upgrading the terminal to handle general cargo, containers, and roll-on-roll-off (RoRo) operations, with a depth of 16 meters to accommodate Super Post Panamax vessels up to 14,000 TEU.

The terminal area spanning 192,000 square meters will undergo re-engineering to support efficient container handling, equipped with state-of-the-art equipment and modern IT systems. AD Ports will also introduce new container handling equipment to increase capacity to 350,000 TEU and Ro-Ro volumes to over 40,000 vehicles, including the procurement of three STS cranes and eight hybrid Rubber Tyred Gantry cranes.

Mohamed Eidha Al Menhali, Regional CEO of AD Ports Group, stated, “With the planned upgrade of Luanda’s multipurpose port terminal and the establishment of an integrated logistics and freight forwarding business, AD Ports is well-positioned to capitalize on the expected growth in Angola’s container volumes.”

AD Ports’ expansion into Angola is part of its broader Africa strategy, with planned investments exceeding $800 million in the maritime, shipping, ports, and logistics sectors across Egypt, the Republic of Congo, Tanzania, and Angola over the past three years.