Phase 2 of Aqaba Logistics Village inaugurated

AQABA — Officials and stakeholders on Thursday inaugurated Phase 2 of the Aqaba Logistics Village (ALV), which costs JD6.2 million, with the total cost of the scheme’s first two phases amounting to JD17 million.

On November 12, 2009, His Majesty King Abdullah inaugurated Phase 1 of the ALV project aimed at making Aqaba a regional logistics hub that contributes to supporting the national economy, said Rudain Kawar, chairman of the Kawar Group, a partner in the consortium of private companies managing the project.

The Aqaba Development Company (ADC) floated a tender to develop the ALV, with the consortium of Kawar Group and Kuwaiti Agility Company winning the bid to establish the facility, Kawar told attendees at the launch ceremony, who included Prime Minister Abdullah Ensour and other senior officials.

APM Terminals (APMT), an affiliate of AP Moller-Maersk Group, later replaced the Agility Company in the consortium, the chairman noted.

“ADC, the public sector partner in the project, provided a total plot of land of 470,000 square metres to establish the ALV over three phases to provide logistics solutions to all local and international manufacturing and distributing companies,” Kawar said.

ALV General Manager Hakam Abul Feilat said the village was built to provide multiple logistic services in one place, noting that ALV provides storage services on racks in warehouses, ground storage, and storage in covered yards and open yards.

Within a few years, the facility has become an “important centre” for collecting small merchandise for export in what is known as less than a container load, he noted, adding that the service was not provided before the inauguration of ALV.

“This service helped many traders and manufacturers who want to export small amounts of their products without having to pay high costs for renting full containers,” Abul Feilat noted.

ALV also contributes to employing important sectors in the Kingdom, including some 500 light and medium transportation vehicles that carry around 15,000 shipments annually, he said, adding that the facility also receives some 3,800 shared containers in a year representing a total of 200,000 individual shipments.

“The village also contributed to securing jobs for 67 employees, most of whom are Jordanians from Aqaba, who receive enough incentives to secure them a decent living,” the general manager added.

In an interview with The Jordan Times, Abul Feilat said Phase 2 provides a warehouse for commercial purposes, ground storage and large open yards that can handle heavy equipment.

“Phase 1 of the ALV included a deconsolidation service which means receiving one container that includes products for up to 15 customers, where ALV deconsolidates the cargo on its racks and delivers it to each customer individually,” he noted.

ALV is the only company in the region that has 16 mobile ramps to offload and load trucks and containers, Abul Feilat added.

“The project is a very good example of partnership between the private and public sectors, based on a concession agreement between ADC and ALV on a build, operate and transfer basis that lasts to 25 years, starting from 2009, where the property will return to the ADC,” he said.

Phase 1 of the project covers a total area of 140,000 square metres and Phase 2, completed in August 2015, covers 120,000 square metres including a multi-purpose warehouse for cross-docking, storage and distribution, according to an ALV statement.

Phase 3 is expected to start in 2018 to provide further storage and cargo handling for logistic services of all kinds, the statement added.