Saudi developer Emaar Economic City said on Saturday it has signed an initial accord with Dubai's DP World to develop and operate the Red Sea's largest port at King Abdullah Economic City.

'The seaport will be the largest in the Red Sea and one of the top 10 ports in the world with a capacity to handle 20 million TEUs (twenty foot equivalent container units),' Emaar said in a statement, without giving the value of the project.

'A multi-purpose cargo terminal is scheduled to be operational by end of 2010 and a 1.6 million TEU container terminal by mid-2011 after which the capacity of the port will be increased on several phases,' it said.

Emaar Economic City, an affiliate of Dubai-based Emaar Properties, is spearheading the development of the $26.7 billion project.-Reuters