Act signs first service agreement under free zone authority [Archives:2004/727/Local News]

April 8 2004

Aden Container Terminal (ACT) continued its relentless emergence from low growth to reach high monthly volumes of container handling.
On 31st March 2004 Yemen Free Zones Public Authority signed a Prime Customer Service Agreement with international shipping line, Pacific International Lines (PIL) of Singapore, the first after taking over from PSA. OPM Aden, ACT's terminal operator, was instrumental in putting the parties together for this landmark agreement. Mr. Dirhem Noman, Vice Chairman of Yemen Free Zones Public Authority and Chairman of Aden Free Zone, signed the agreement on behalf of the Authority.
The service Agreement will anchor PIL as special customer at ACT in recognition of their support for ACT in the past and to encourage them to increase substantially their throughput at ACT to almost double their current level, by making it their base port in the Red Sea region. In return for volume commitment, PIL will enjoy a slew of benefits such as a performance guarantee, which together with other incentives are expected to make PIL's services more efficient and competitive in the region.
For the Free Zone Authority, this is another milestone in the success of ACT and more such agreements are in the pipeline. Interest from other shipping lines is emerging, as ACT under OPM Aden has markedly improved its services and as ACT's strategic position in the region as a transshipment hub is being revisited, with negative perception of the Limburg incident fading away and confidence gradually returning to the customers of ACT.
ACT officials were quick to point out that while more such agreements are expected to be signed, PIL will always take a special position in ACT as a prime customer.