AD Ports to set up grain plant at Khalifa Port: The UAE’s AD Ports has inked a 50-year land lease agreement with flour producer Al Ain Mills to establish a grain storage and processing facility at Khalifa Port’s South Quay, according to a press release.

The details: The 500k sqm facility — with a storage capacity of 300k metric tons — is slated to launch operations 2.5 years after the firm breaks ground on the project. No investment ticket was disclosed.

Meeting demand: The collaboration will provide Al Ain Mills access to deep water berths and port facilities and is set to expand grain storage and handling capacity to meet the rising demand for grain products in and beyond the Gulf.

Not AD Port’s first grain-focused venture: AD Ports is investing USD 30 mn in the Kazakhstani Kuryk Port’s Sarzha Grain Terminal, in which it will own a 51% stake. The terminal — to be built over two phases — is expected to cost about USD 50 mn and to have over 2 mn tons of annual handling capacity when fully completed.

In context: The new facility is poised to support the UAE’s food security initiatives as the country pushes ahead in multiple food logistics projects. Back in August, the Abu Dhabi Agriculture and Food Safety Authority — alongside AD Ports and the Abu Dhabi Projects and Infrastructure Centre — inaugurated a 32.7k sqm veterinary quarantine facility at Khalifa Port. DP World also inked an MoU with the Dubai Municipality back in July to develop the world’s largest logistics hub for foodstuffs, fruit, and vegetable trade.

Meet the millers: Al Ain Mills is a member of Al Hazaa Investment Group, and its Fujairah branch is slated to receive and send grain via Etihad Rail, according to its website.

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