Iraq’s government has agreed to sign a $2.625-billion contract with South Korea’s Daewoo Engineering & Construction to build the first phase of a giant commodities port at Faw in the south of the country, reported Reuters, citing a senior port official.

Under the contract, Daewoo E&C will handle construction works that include building five berths to unload ships and a yard for containers, states Farhan Al Fartousi, Iraq’s Director General at the General Company for Ports.

Daweoo will also carry out dredging and drilling works to create an access navigation channel, he added.

Once Phase One is completed, the port will be able to receive three million containers, he said, adding that the three construction phases in total should be finished in less than four years.