Dubai-based business enabler DP World Group has started construction on the green field multi-purpose port in Posorja, Ecuador.
The move comes after the company bagged a 50-year concession from the government of Ecuador in 2016 to construct a facility with 750,000 TEU (twenty-foot container equivalent) of capacity.
The deep water port will entail an investment of approximately $1bn and will be developed in two phases.
Under the first phase, the company will spend $500m to buy land, dredge a new access channel, a 20km access road and a 400m berth.
After that, DP World will conclude the remaining work of the port development. The company has plans to develop a logistics zone to create a regional trading hub.
Situated 65km from Ecuador’s main business city of Guayaquil, the development of the new port is slated to complete over a period of 24 months.
During the construction phase, the project will generate thousands of jobs as well as nearly 1,000 jobs during operations.
Additionally, the company will develop one square kilometre logistics and industrial park, known as a Special Economic Development Zone, adjacent to the port.
DP World Group chairman and CEO Sultan Ahmed Bin Sulayem said: “This is an important landmark in Ecuador’s growth story – we’re celebrating today the first public-private partnership that will benefit local economy and change forever the way it trades with the world.
“The port has been designed to serve the growing needs of global markets – something we’ve been able to witness first-hand with our 78 terminals around the world – and will dramatically improve the global competitiveness of Ecuadorian exporters.”