Good morning, folks. We are heading into the weekend with a packed issue, with all the latest on Asyad’s IPO plans from Oman and port developments in Morocco, Kuwait, and Egypt. Let’s dive right in.

WATCH THIS SPACE-

#1- AD Ports to develop logistics park in Alexandria, Egypt: AD Ports Group inked an MoU with Egypt’s Industry and Transport Ministry to explore joint development and operations of a 1.1 sq km integrated logistics park in Egypt’s Alexandria Port, according to a statement. The logistics park will be one of the largest hubs on the Mediterranean, with Alexandria Port handling approximately 60% of Egypt’s foreign trade.

#2- China to head Kuwait’s new port project: Kuwait has selected China State Construction Engineering Corporation to build, manage, and operate its Mubarak Al Kabeer Port project, Al Rai reports. Kuwait’s Council of Ministers approved the proposal submitted by the Chinese government, which is in line with an MoU on the port’s development inked between the two nations in late 2023.

Background: The Kuwaiti Prime Minister’s Office approved KWD 186 mn (USD 614 mn) to support the development of the Mubarak Al-Kabeer Port at Bubiyan Island last May. The port — projected to cost some KWD 990 mn (USD 3.2 bn) — will accommodate 24 berths with a capacity of up to 8.1 mn containers a year. Kuwait issued tenders to complete work at MKP in 2023.

#3- Firm selected for Morocco-Spain rail feasibility study: Herrenknecht Iberica, a Spanish subsidiary of German underground tunneling firm Herrenknecht, has reportedly been awarded a EUR 296.4k contract to conduct a drilling feasibility evaluation for a proposed undersea rail line connecting Morocco and Spain, a spokesperson for the parent firm told AGBI. The study will start immediately and conclude by June, MEED reported. The planned project includes a 38.5 km service link between Spain’s Cadiz and Morocco’s Tangier, with a 28 km section that will run under the Mediterranean Sea.

MARKET WATCH-

#1- Oil prices decreased in early morning trading amid growing uncertainty over the future and impact of Trump’s trade and energy policies, Reuters reports. Brent crude futures fell by USD 0.26 to USD 78.74 a barrel by GMT 04.27, while the more active US West Texas Intermediate (WTI) March saw a USD 0.23 dip, falling to USD 75.21 a barrel.

#2- Baltic index slumps down further: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell by 35 points to 893 points on Tuesday. The capesize index dropped 48 points to 1,236, while the panamax index plummeted 31 points to 843. The smaller supramax index dropped by 29 points to 674.

#3- Crude oil demand expected to rise in 2025: Saudi energy giant Aramco expects crude oil demand to surge by an additional 1.3 mn barrels per day this year, Chief Executive Amin Nasser told Reuters on the sidelines of the Davos World Economic Forum. The firm remained optimistic that crude oil demand would grow in 2025 despite US President Donald Trump’s energy policy, which is set to boost the US hydrocarbon output. That said, the firm remains unclear about the effects of US sanctions on Russian crude and “will wait and see how” the more than 2 mn barrels affected “would translate into tightness in the market,” Nasser explained.

#4- Maritime freight prices could fall between 20% to 25% over the next three months if the Red Sea attacks are curbed, DP World’s deputy chief executive Yuvraj Narayan told Reuters. Houthi attacks have tied up at least 30% more capacity than usual, and freight rates are likely to decrease once the shorter route through the Red Sea and Suez Canal resumes, Narayan added. Vessels not affiliated with Israel could be returning to the Red Sea in the coming weeks after the Houthis said they would limit their attacks to Israeli-linked ships following the announcement of the Gaza ceasefire.

DATA POINTS-

#1- Morocco fuel imports down 9.75% in Q3 2024: Morocco’s fuel imports increased 10.8% y-o-y in Q3 2024 to 1.7 mn tons valued at USD 1.26 bn, Morocco World News reports, citing a report from the Moroccan Competition Council. The revenues of the country’s nine major fuel distributors — who accounted for 84% of the total imports — fell by 5.8% y-o-y in the same period, reaching MAD 20.16 bn. Despite the fall in revenues, sales volumes of diesel and gasoline rose by 4.8% y-o-y, reaching 2.33 bn liters.

#2- Iran’s trade with the EU fell 3% y-o-y to EUR 4.5 bn (c. USD 4.7 bn) during the first 11 months of 2024, Tehran Times reports. The EU’s exports to Iran fell 4% to EUR 3.37 bn, while Iran’s exports to the EU rose 5% to EUR 773 mn.

PSA-

German shipping giant Hapag-Lloyd will hike ocean tariff rates for ships heading from Pakistan and India to North Europe and the Mediterranean starting on February 15, according to a statement. The shipping price for 20’ dry containers and 40’ dry containers to Europe and the Mediterranean has increased by USD 300.

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CIRCLE YOUR CALENDAR-

Belgium will host the World Cargo Summit from Monday, 27 January to Wednesday, 29 January, in Ostend. The event will focus on air cargo economics, strategy, and market trends with a specific focus on how the industry will tackle disruptions and how firms can adapt their business models.

The UAE will host the ShipTek International Conference from Wednesday, 29 January to Thursday 30 January in Dubai. The two-day conference will gather industry experts, including managing director at Hapag-Lloyd Carolin Stumm, CEO Adani Ports Nicolai Friis, VP International Maritime Industries Justin Taylor, CEO Tristra Tim Coffin, and others to discuss new tech and developments in the maritime industry.

The UAE will host the Middle East Bunkering Convention from Monday, 3 February to Wednesday, 5 February in Dubai. The event will focus on the marine fuels sector to address the future of the industry in light of geopolitical issues, environmental regulation, and the future of artificial intelligence and digitalization.

Saudi Arabia will host the Airport Expansion Conference from Tuesday, 4 February to Wednesday, 5 February in Riyadh. The two-day conference will feature over 30 speakers to discuss challenges faced by Saudi Airports and highlight Saudi Arabia’s Vision 2030 with a clear focus on expansion, tech, and strategic partnerships.

The UAE will host the Middle East Breakbulk Conference from Monday, 10 February to Tuesday, 11 February in Dubai. The event gathers giant manufacturers, EPCs, and service providers to discuss the latest solutions in breakbulk and heavy-lift logistics across the Middle East and Africa. The two-day event features an artificial intelligence (AI) seminar, a heavy lift workshop, a chartering workshop, and a women in breakbulk panel.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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