Yemen is set to renegotiate with DP World parts of an agreement that would grant the Dubai-based port management firm a 30-concession to operate the strategic port of Aden, a minister said yesterday.

Yemeni President Ali Abdullah Saleh has issued instructions to government officials to renegotiate certain points of the agreement, which is currently awaiting parliamentary approval.

""I do not know at this point what those issues are. I am waiting for an official letter from the prime minister's office to renegotiate some points with DP World,"" deputy transport minister Mohammad Salem told Gulf News.

He said Yemeni officials are expected to hold talks with DP World within a week.

DP World won an international tender last year to operate the container terminal at the Port of Aden. It has pledged to invest $493 million over the 30-year concession period, according to reports. However, no contract has been signed between Yemen and DP World as the deal requires the Yemeni parliament's approval. Some legislators have opposed giving control of the port to DP World.

Free zone

One argument is that geographical proximity makes Aden a potential alternative to DP World's flagship Jebel Ali Port and the Dubai company may not promote Yemeni interests over those of Dubai.

However, DP World officials contend their investments help the regions where the company does business.

""We want it (Aden) to grow and we believe we can do that. We have the tools, we have the knowledge and we think the market is growing,"" chief executive officer Mohammad Sharaf was quoted as saying in a recent interview.

At present the Aden port is operating at half of its capacity of 620,000 TEUs.

The Dubai firm plans to expand the capacity to three million TEUs and promote the area as a free zone.

DP World, the world's third-largest port operator that took over the management of Abu Dhabi's Mina Zayed from April, said it has no immediate plans to invest in expansion.

The new management team is busy reviewing systems and procedures of Mina Zayed but building new facilities is not on the cards, DP World UAE managing director Mohammad Al Muallem told Gulf News.

""We do invest and expand when there is a business requirement. At the moment whatever is there [Mina Zayed] in terms of machinery, land and equipment is sufficient for the current operations,"" he said.

The Abu Dhabi port has a capacity to handle 920,000 TEUs a year. It recorded a throughput of 264,826 TEUs last year.

Al Muallem said the new management's ""idea is to introduce DP World culture"" at Mina Zayed and make it more efficient.

""They are looking at everything within the port and reviewing all the operational procedures. They are looking into all the resources to come up with the most efficient way of running operations,"" he said.