AVIATION-

#1- The UAE’s national airline Etihad Airways signed an MoU with China SouthernAirlinesto expand cooperation in the airline supply chain, according to a press release from Etihad. Under the MoU, the two carriers will work on mutual procurement of ground handling, cargo handling, bonded warehousing services, catering, and maintenance, repair, and overhaul.

#2- Abu Dhabi Aviation (ADA) is seeking approval from its shareholders to issue c.AED 4 bn (roughly USD 1 bn) in convertible bonds to ADQ Aviation and Aerospace Services, which when completed in 2Q 2023, would see the ADQ subsidiary take a c.60% stake in ADA, according to an ADX filing (pdf). Once the ongoing merger between the two companies is finalized, the bonds would automatically be converted into new ADA shares worth AED 6.14 apiece.

BACKGROUND- ADQ Aviation had offered to move its entire shareholdings of Etihad Engineering and the Advanced Military Maintenance Repair and Overhaul Center, as well as its 50% ownership of Global Aerospace Logistics, into Abu Dhabi Aviation in a merger last October. The board approved the move and said it would recommend it to its shareholders in a meeting in March, according to the filing.

MARITIME-

AD Ports Group will implement a vessel traffic management information system (VTMIS) across five of its ports in the UAE, according to a companypress release. The new system will help improve maritime safety at Khalifa Port, Zayed Port, FreePort, Musaffah Port, and Al Dhafra region, by integrating communications between radar, CCTV, radio, weather systems and more, providing operators with real-time data and improving vessel-to-vessel and vessel-to-shore communications. The company will also upgrade its vessel traffic control center with video walls and operator consoles to provide a comprehensive view of the tracked vessels at the center.

PROJECTS-

Kuwait has received interest from 35 foreign companies for contracts for road maintenance and paving, Al Qabas reported, citing sources it says are in the know. The firms vying for the contract include 20 Turkish outfits, five from Japan, three from each of China, France, and South Korea, and one German firm. The Public Works Ministry is in talks with the companies, and hopes to finalize details in two weeks’ time. Representatives from six embassies in Kuwait gave the Public Works Ministry a list of firms interested in bidding for the contracts in a meeting earlier this month.

Details: The companies awarded the contracts would have to open offices in Kuwait to oversee regular maintenance work. Work on the roads is scheduled to commence in mid-July 2022. The sources did not disclose the financial value of the contracts.

STORAGE-

EU food security funds on their way to Egypt:The Italian Agency for Developmentand Cooperation (AICS) is getting EUR 40 mn from the EU to help the Egyptian agriculture and supply ministries grow more resilient wheat and upgrade storage capacity, Egypt’s International Cooperation Ministry said in a statement. This is the first tranche of the EUR 100 mn in funding announced last year from the EU to improve food security in Egypt.

Where’s the money going? Some EUR 25 mn will support Egypt’s Agriculture Ministry to buy better seeds, while Egypt’s Supply Ministry will spend the remaining EUR 15 mn to build new siloes and complete the information system geared for controlling the movement of wheat in Egypt, according to the statement. The parties are currently discussing the allocation of the remaining EUR 60 mn.

TRADE–

Iraq has acceded to the UN’s TIR trade convention, according to a filing (pdf) by the UN Economic Commission for Europe (UNECE), which oversees the trade agreement. Iraq’s accession to the framework should make it easier for the country to benefit from its strategic location at the crossroads of global trade, and boost “east-west and north-south connectivity,” International Road Transport Union Secretary General Umberto de Pretto said, according to a statement.

SOUND SMART- The Customs Convention on International Transport of Goods (TIR) is a multilateral treaty and global transit system that helps facilitate seamless transport of freight across international borders. The framework boosts coordination between customs offices in participant countries with the purpose of limiting time-consuming border checks while also providing authorities with requisite checks and guarantees.

ZONES-

SCCT gets new incentives at East Port Said Port: The Suez Canal Economic Zone (SCZone) and Suez Canal Container Terminal Company (SCCT) inked a framework agreement that will see SCCT get fresh incentives for its operations at East Port Said Port, according to a statement. The incentives include reductions on berthing, port, and pilotage fees in accordance with tonnage and numbers of containers aboard. The incentives come as part of the SCZone’s plan to promote shipping through East Port Said Port.

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