France’s CMA CGM Group and Abu Dhabi’s AD Ports have agreed to expand their joint container terminal at Khalifa Port, less than a year after the facility opened, driven by stronger-than-expected demand.

CMA Terminals Khalifa Port — owned 70% by CMA CGM and 30% by AD Ports — has seen rapid uptake since operations began in December 2024. The partners will invest AED 420m ($115m) in the next expansion phase, split in line with their shareholdings.

The project, scheduled for completion in early 2028, will lift the terminal’s capacity by almost 50%, from 1.8m teu to 2.7m teu. The move will push Khalifa Port’s total handling capacity to 10.5m teu, up around 9%.

AD Ports’ ports cluster CEO Saif Al Mazrouei said the deal underlined the port’s momentum and Abu Dhabi’s push to strengthen its global trade position. CMA CGM’s EVP for operations and assets, Christine Cabau, said the terminal reached full capacity within 10 months, prompting the partners to bring forward phase two.

The expansion will add 400 m of quay to the current 800 m and increase yard space by more than 40%. Upgraded systems and infrastructure — including new reefer racks — are planned to support the growing share of refrigerated cargo.

Khalifa Port has become one of the region’s key transshipment hubs, climbing through top ports rankings. Operational performance has kept pace with the growth: in Q3 2025, AD Ports’ ports cluster handled 20% more containers year-on-year, with CMA Terminals Khalifa Port close to hitting 1m teu for the year and operating at 87% utilisation.

The expansion move also follows a separate agreement between the two groups in November, when AD Ports purchased a 20% stake in Syria’s Latakia International Container Terminal for AED 81m ($22m). The Abu Dhabi operator will join CMA CGM in managing the facility, which handles more than 95% of Syria’s container traffic and is earmarked for expansion from 250,000 teu to 625,000 teu by 2026.