The Jordanian government has issued a report showing that the success of privatisation efforts depends on operational structures, transparency of operations, market structure, expenditure, and the monitoring process. Aqaba Container Terminal (ACT) was seen as a good example of achievement based on its operational structure, performance monitoring, sustainability and privatisation success.
ACT was deemed a model privatisation venture within its category i.e. ventures based on a build-operate- transfer (BOT) structure that are owned by The Kingdom, but partnered with the private sector in operations and management/administration.
This set-up resulted in improved company performance in both increased productivity and efficiency. Monthly throughput showed a significant increase following privatisation from 405,658 teu in 2006 to 872,809 teu in 2013 with new jobs increasing from 748 to 886 in the same period. Vessels sizes have also increased from 1,000 teu feeder vessels to 7,200 teu main line vessels with more than nine weekly services calling today.
“These results reflect the agility and efficiency of our company’s operations. We are proud to have our name listed as a leader in port privatisation”, said ACT’s CEO Jeppe Jensen.
ACT is a joint venture between Aqaba Development Corporation (ADC), which is the Jordanian government’s development vehicle for the Aqaba Special Economic Zone (ASEZ), and APM Terminals, which took over the management and operation of the terminal in 2004. A further 25-year agreement was signed between ADC and ACT in 2006 to jointly develop the port on a BOT basis.
Since 2006, APM Terminals has invested US$240m in the 1.3m teu facility.