This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ABU DHABI 001199 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EAIR EWWT PREL ECON AE
SUBJECT: ABU DHABI OVERHAULS TRANSPORTATION SECTOR 
 
 
¶1. (U) The Abu Dhabi Government Restructuring Committee 
recently announced the establishment of an Abu Dhabi 
Department of Transport (DOT), headed by Khalfan Ghaith Al 
Muhaibi. Sheikh Mohammad bin Zayed Al Nahyan, Abu Dhabi Crown 
Prince and Chairman of the Abu Dhabi Executive Council chairs 
the restructuring committee, which was formed in February 
2005 to lead government changes. Law Number 4 for 2006 
establishes the DOT to regulate civil aviation and the sea 
port sectors. The consolidation of the Department of Civil 
Aviation and the Sea Ports Authority under the newly formed 
DOT will enhance integration across transportation sectors 
and improve internal efficiency. 
 
¶2. (U) Although the DOT has regulatory authority over the Abu 
Dhabi seaports and airports, two new corporations have been 
created to handle the day to day operations of these sectors. 
 Laws Five and Six for 2006 create the Abu Dhabi Ports 
Company (ADPC) and the Abu Dhabi Airports Company (ADAC), 
respectively.  The two corporations will handle day to day 
operations at Abu Dhabi seaports and airports. The creation 
of separate entities to run the sea port and airport 
operations will allow the Abu Dhabi government to focus on 
sector planning and regulation while moving in the direction 
of privatization. This change may pave the way for Abu Dhabi 
to award seaport and airport contracts to private companies 
on a build, own, operate and transfer (BOOT) basis. 
 
¶3. (U) The ADPC will manage and develop all seaports in the 
Emirate of Abu Dhabi.  It will supervise services handled by 
private companies such as shipping, unloading and providing 
supplies to ships and warehouses.  The ADPC will also impose 
and collect fees on services from beneficiaries.  The company 
will be exempted from all local taxes and fees on its 
imported materials, equipment, machineries and spare parts. 
It will also establish and manage free zones on ADPC's land 
and impose and collect taxes from companies in these free 
zones.  A Board of Directors will be appointed by the Abu 
Dhabi Executive Council.  The board will be able to contract 
with foreign and local companies, both public and private, 
for business related to the operating, managing and 
maintaining the Abu Dhabi seaports. 
 
¶4. (SBU) Abu Dhabi is planning on developing a new port and 
industrial area, which will be called the Khalifa Port and 
Industrial Zone. Mubadala, an Abu Dhabi governmental 
investment business operating as a public joint stock 
company, is developing this project. The new port will 
include a container handling terminal and piers for receiving 
raw and bulk cargo as well as large ships. ADPC may consider 
a BOOT option for this development, which will allow the 
private sector to take part in owning and operating critical 
port infrastructure. 
 
¶5. (U) Abu Dhabi Airports Company will operate and maintain 
airport facilities, communications, emergency and rescue 
equipment, runways, aircraft hangars, ramps, radios, 
meteorology and control towers.  It will also plan the 
development of aviation infrastructure in Abu Dhabi, namely a 
new airport terminal, runway, and control tower, which are 
currently under design. The DOT will regulate air space, 
landing and departures, air transport rules and baggage. 
 
¶6. (U) Both ADPC and ADAC will be public joint stock 
companies with paid up capitals of Dhs. 500 million (USD $136 
million), divided into 50 million shares, each with a nominal 
value of Dhs. 10 (USD $2.72). 
SISON