I wrote about this issue on October 14, 2005: the Yemeni government recently entered into a 30-year contract for the port of Aden with its largest competitor, Dubai Ports International (D.P.I.). World Bank documents state that Dubai is in direct competition for container transshipment business with Aden…The majority owners of D.P.I. also are the managers of the Jabal Ali free zone in Dubai. D.P.I. will pay $83.5 million as a rent over 30 years for the Aden free zone, an area of 32 million square meters, effectively paying less than one penny per square meter in monthly rent. A Kuwaiti firm’s substantially higher tender was rejected in favor of D.P.I. As expected, DPI is raising birthing costs in port Aden, making Dubai port much more attractive to international shippers. Today’s news, Yemen’s Parliament begins a probe of the issue:
Yemen Post: Parliament approved on Saturday forming a panel to probe what MPs said were plans of the Dubai Ports World aimed at striking Aden Port, excluding it from providing services for ships and shifting international navigation route to Djiboutian and Dubai Ports.
The panel will comprise members of the Oil and Development and Transport and Communication Committees.
MPs urged to seriously address the issue of the port, which has already lost its prestige and significance as one of the old and strategic ports in the world due to irresponsible acts by the DP World.
MP Muhammad Abdu Saeed revealed that he had received a complaint from an international navigation company saying the consistently increasing fees for ship anchorage forced ships to redirect to Djibouti Port. He considered increasing the fees was aimed at striking Aden Prot through forcing ships to abandon it.
For his part, MP Ali Al-Maamari said Dubai World Ports is seeking to exclude Aden Port from international navigation route and switching the route to Djiboutian Port because the latter boosts the importance of Dubai Port. While MP Sakhr Al-Jeeh requested to turn who brought about the agreement between the government and the DP World to investigation.