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Duba Port is now Port of Neom

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What we're tracking today

TODAY: Saudi Arabia’s Duba Port becomes Neom Port + Feasibility studies for GCC railway are now complete

Good morning, everyone. We have yet another calm issue for you today, as the newscycle winds down near the end of the week.

THE BIG LOGISTICS STORIES- DHL will start using Etihad Rail for freight operations in the UAE freight operations under a 20-year partnership, while Maersk is set to launch a new streamlined shipping service connecting MENA and GCC countries.


KSA’s Duba Port becomes Port of Neom: The primary seaport of entry for Saudi Arabia, Duba Port, has been renamed Port of Neom, according to a statement from KSA’s Neom economic zone. This comes as KSA is working to overhaul and transform local ports into logistics hubs, according to Neom. The port is currently undergoing SAR 7.5 bn expansion and redesign works to meet rising volumes of cargo, including container and general cargo, and to turn it into a fully sustainable and advanced port, before its first container terminal becomes operational in 2025, according to the statement. Duba Port was previously managed by Saudi Ports Authority (Mawani), but had its management transferred to Neom in 2022.

The Black Sea grain pact has been extended for two more months, a day before Russia was expected to abandon it, the UN Office for the Coordination of Humanitarian Affairs confirmed yesterday. The UN- and Turkey-brokered Black Sea crop export corridor allowed grain exports to leave Ukraine’s ports safely over the past year. “We still do not lose hope that the problems that we are raising will be sorted out,” Russia's ambassador to the UN Vassily Nebenzia said, Reuters reports. Concerns and outstanding issues remain, but Russia, Ukraine, Turkey and the UN will continue discussions to iron them out, UN Secretary-General Antonio Guterres said. “Looking ahead, we hope that exports of food and fertilizers, including ammonia, from the Russian Federation and Ukraine will be able to reach global supply chains safely and predictably,” Guterres is quoted as saying.

Background: Russia had threatened to withdraw from the pact until Western countries address its concerns about sanctions against its exports.


WATCH THIS SPACE #1- TAQA and NGDC partner on JV in KSA: Saudi Arabia’s Natural Gas Distribution Company (NGDC) has entered into partnership agreement with Egypt-based energy, utility, and gas distributor, TAQA Arabia (TAQA) to establish a limited liability company in the Kingdom, according to an NGDC disclosure on the Saudi Stock Exchange (Tadawul). The companies had previously signed an MoU in 2022 to develop and operate gas transportation services and gas networks.

WATCH THIS SPACE #2- Feasibility studies complete for GCC railway: The feasibility and traffic studies for a 2.1k km railway connecting the six GCC countries have been completed, Gulf railway specialist Nasser Al Qahtani told Khaleej Times on the sidelines of Middle East Rail. The rollout for the project is expected soon, he said, adding that the UAE and Saudi Arabia are the furthest along in developing the local transport infrastructure for the project. The GCC Railway Authority is coordinating with each country to ensure that they follow uniform standards and guidelines in building the railway, Al Qahtani said.

WATCH THIS SPACE #3-Bahrain International Airport will have a cargo capacity of 1.6 mn tons following the launch of its new cargo express village, the first phase of which will be complete by 2023, Chief Development and Technical Officer Abdulla Janahi said, according to a company statement. The village will feature warehouses, aircraft parking, and associated infrastructure.

DATA POINT- Four road projects worth BAD 9.5 mn took up the lion’s share of the country’s investments in infrastructure projects in April, according to state-owned Bahrain News Agency. The projects include maintenance work on Shaikh Khalifa bin Salman Causeway and phase two of the South Bahrain Ring Road.

CIRCLE YOUR CALENDAR-

The UAE Maritime Week kicked off this week at the Dubai World Trade Centre, and is running until tomorrow. The week will bring together stakeholders from local maritime markets in a series of in-person events and conferences to explore maritime opportunities across the UAE.

The Seatrade Maritime Logistics Middle East kicked off this week at the Dubai World Trade Centre, and will wrap up today. The conference, which will comprise a trade show, conference tracks and networking, will connect ship owners, shipyards, port operators, government representatives, and industry professionals from across the MENA region.

The 35thIATA Ground Handling Conference, hosted by Etihad, kicked off this week at the Abu Dhabi National Exhibition Center, and is on its last day today. The event brings together global industry leaders from airlines, airports, ground service providers and manufacturers to network and discuss industry trends and developments.

TheElectric Vehicle Innovation Summit 2023 will take place in Abu Dhabi between 29-31 May. The event is the first of its kind in the MENA region and brings together researchers, engineers, officials, and organizations involved in the EV scene, presenting attendees with opportunities to network across value chains and exchange ideas.

The 79th IATA Annual General Meeting and World Air Transport Summit will take place from 4-6 June, in the Hilton Bomonti in Istanbul, Turkey. The event will gather airline leaders from across the globe to discuss post-pandemic aviation, airline sustainability, operational challenges from the past year and the future of aviation, according to the event program (pdf).

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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Rail

DHL will use Etihad Rail for freight operations in the UAE

DHL to use Etihad Rail for UAE freight operations:Etihad Rail and DHL GlobalForwarding have inked an agreement that will see DHL Global Forwarding using the UAE’s national rail network for its freight operations in the country, according to a press release (pdf). Under the terms set out in the 20-year partnership, DHL Global Forwarding will adopt rail as one of the main modes for transporting goods across the UAE. The statement did not reveal a timeline or investment value for the agreement, which represents Etihad Rail’s first commercial partnership since the national railway network opened for freight operations earlier this year, according to the statement.

The agreement is expected to boost trade and logistics in the UAE and ease pressure on road networks, as well as strengthen end-to-end logistics and supply chain services for customers in the region, the statement said.

The partnership is a big plus for the UAE’s sustainability drive: Etihad Rail is slated to make significant contributions towards the UAE Net Zero 2050 drive. Current projections see the UAE’s national railway reducing emissions from trucks by 21% by 2050, with each freight train accounting for 300 trucks taken off the road, the statement added.

Background: Etihad Rail’s 900 km national network connects four major ports and seven logistics centers across the country, with a fleet made up of 38 locomotives and more than 1k wagons. Its main line stretches from Al Ghuwaifat on the Saudi Arabia border to Fujairah and can transport up to 60 mn tons of cargo annually, according to a statement.

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SHIPPING LINES

Maersk will soon launch new streamlined MENA shipping service

A.P. Moller Maersk to launch new MENA shipping service: A.P. Moller Maersk is launching in June a new shipping service, Al Maha, that will serve key ports in the UAE, Saudi Arabia, Oman, Qatar, Egypt, and Morocco, according to a statement. The new route streamlines its older ME3 and ME4 services — which separately included routes to each of these countries — and serves all customers on those trade routes through a single service.

The details: The service consists of a fleet of seven vessels, each with a weekly capacity of 8.5k TEUs. Its rotation begins from Port Tangier and travels to Port Said, Jeddah, Salalah, Jebel Ali, Doha, Dammam, Jubail, Jebel Ali, and Duqm, before returning to Port Said and Port Tangiers. It will also offer further connections to European, Middle Eastern, and Far Eastern markets, particularly to service Saudi petrochemical exporters, the statement said.

What they said: Having carefully studied our customers’ requirements arising out of the current market dynamics, we have designed the Al Maha service that will help our customers in driving value out of their supply chains,” head of Regional Ocean Management for Maersk Indian Subcontinent, Middle East and Africa Bhavan Vempati said.

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Diplomacy

Qatari Transport Minister discusses boosting transport ties with regional counterparts

Qatari Transport Minister Jassim Saif Ahmed Al Sulaiti discussed developing transportation ties in meetings with officials from across the MENA region during the Middle East Rail conference in Abu Dhabi on Monday. Al Sulaiti met with:

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Logistics in the News

Countries are looking towards reshoring, nearshoring amid global supply chain reconfiguration, DP World CEO says

The reconfiguration of supply chains is prompting countries to resort to reshoring and nearshoring to preempt supply chain disruptions and double down on industrialization, CEO and Managing Director of DP World UAE and Jafza (Jebel Ali FreeZone Authority) Abdulla Bin Damithan said at the Seatrade Maritime Logistics Middle East event in Dubai, Seatrade Maritime reports. “[Many] are thinking long term and are prepared to sacrifice immediate profitability for increased resilience and reliability,” he added. Regionalizing and reshoring are expected to play a significant role in trends towards economic diversification and phasing out the dependence on oil, Damithan explained.

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Also on Our Radar

Masdar, Airbus to work on sustainable aviation fuel development + Egypt to provide incentives to investors, transport players. PLUS: EISAS is now Asyad’s shipping agent in Egypt

AVIATION-

Masdar + Airbus team up on SAF production: UAE renewables company Masdar signedan agreement with French aircraft manufacturer Airbus to jointly develop sustainable aviation fuels, green hydrogen, and direct air capture technologies, according to a statement. The agreement also sees the companies jointly launching a book and claims framework that would enable aircraft operators to source their SAF supplies without being geographically connected to a stockpile site.

The details: Both companies will partner on developing direct air capture tech with the aim of using the captured CO2 to fuse it with hydrogen and generate sustainable aviation fuels, the statement notes. Masdar is looking to capture as much of a share of the global SAF market, which is expected to grow at a CAGR rate of 42.39% to USD 14 bn by 2032, the company notes, citing market forecasts by Precedence Research.

ZONES-

Egypt to provide incentives + streamline processes for investors, transport players:Egypt’s new Supreme Investment Council Council approved 22 decisions at its first meeting, including plans to ease restrictions, streamline approvals, simplify import procedures, and relieve financial and tax burdens, according to an Egyptian presidency statement. The decisions also include providing incentives like unifying costs and customs fees for shipping and transport companies, as well as considering logistics zones and dry ports as special economic zones to grant them investment perks, Egyptian Prime Minister Moustafa Madbouly said at a press conference yesterday (watch, runtime: 54:57). Egyptian President Abdel Fattah El Sisi chaired the meeting, which was also attended by Prime Minister Moustafa Madbouly, Central Bank of Egypt Governor Hassan Abdalla, ministers, officials, and private sector representatives, according to an SCZone statement.

ALSO WORTH KNOWING-

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Around the World

Eurozone trade balance jumps to surplus in 1Q 2023 on the back of higher exports + J&T Express acquires SF Express subsidiary

The eurozone’s unadjusted trade balance saw an 8.5% jump in exports in 1Q 2023, alongside flat import growth, according to a report by the EU’s statistics agency Eurostat (pdf). The region saw a EUR 25.6 bn trade surplus in March, as opposed to a deficit during the same period in 2022, according to a separate trade report (pdf). The boost in trade balance came on the back of higher exports of machinery, vehicles, and chemicals, as well as a drop in energy imports.

J&T Express unit to acquire Chinese SF Express subsidiary to boost e-commerce presence:J&T Express subsidiary J&T Express (Shenzhen) Supply Chain will acquire China’s ShenzhenFengwang Holdings subsidiary, Shenzhen Fengwang Information Technology, through a share transfer agreement for RMB 1.2 bn (USD 170 mn), according to a company statement. The company will acquire Fengwang Express in a bid to enhance its integrated service capabilities and to boost its competitive advantage in the e-commerce delivery sector, the statement said.


MAY

May: The Suez Canal Economic Zone (SCZone) plans to hand over a new 1k-meter container berth to the East Port Said Port.

May: The ArabAcademy for Science, Technology and Maritime Transport (AAST) will roll out its first locally-made electric cargo transport vehicle.

15-17 May (Monday-Wednesday): Global Fleet Conference, Cascais, Portugal.

15-19 May (Monday-Tuesday): The UAE Maritime Week.

16-17 May (Tuesday-Wednesday): Africa Forum of Investment and Commerce, Sheraton Hotel, Algiers, Algeria.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

16-18 May (Tuesday-Thursday): Baltic and Black Sea Ports & Shipping, Radisson Hotel & Suites, Gdansk, Poland.

16-18 May (Tuesday-Thursday): IATA Ground Handling Conference, Abu Dhabi National Exhibition Center, Abu Dhabi.

16 - 23 May (Tuesday-Tuesday): Subscription window opens for retail Investors for the Adnoc L&S IPO.

16 - 24 May (Tuesday - Wednesday): Subscription window opens for institutional investors for the Adnoc L&S IPO.

18 May (Thursday): UN-Turkey-Russia Black Sea grain agreement extension expires.

18-19 May (Thursday-Friday): XIV International Russia—Islamic World: KazanForum, Kazan Expo, Kazan, Russia

24 May (Wednesday): Fleet and Mobility Summit, Dubai.

29-31 May (Monday-Wednesday): Translogistica Libya 2023, Misurata, Libya.

29-31 May (Monday-Wednesday): Electric Vehicle Innovation Summit 2023 Adnec, Abu Dhabi

JUNE

June: Suez Canal Economic Zone holds a roadshow in Delhi.

1 June (Thursday): Listing of shares on ADX, Adnoc L&S IPO

4-6 June (Sunday-Tuesday): IATA Annual General Meeting and World Air Transport Summit, Hilton Bomonti Hotel, Istanbul, Turkey.

6-7 June (Tuesday-Wednesday): Ports and Customs Week, Cape Town, South Africa.

12-15 June (Monday-Thursday): Saudi Plastics & Petrochem, Riyadh, KSA.

14-16 June (Wednesday-Friday): International Conference on Models and Technologies for Intelligent Transportation Systems, Nice, France.

20-23 June (Tuesday-Friday): Conference on the Marine Transportation System Innovative Science and Technologies Toward Greater Sustainability, Washington, DC, US.

JULY

1 July (Saturday): A new greenfield liquid bulk terminal in Khalifa Port Abu Dhabi will kick off operations.

16-17 July (Thursday-Friday): The Levitate Conference and Exhibition, St. Regis Amman Hotel.

24-25 July (Monday-Tuesday): ICSG Istanbul, Istanbul Lutfi Kirdar Convention & Exhibition Centre, Istanbul.

SEPTEMBER

5 September (Tuesday): The Leaders in Logistics KSA Summit, Riyadh.

20-22 September (Wednesday-Friday): Transport Evolution Africa Forum and Expo, Inkosi Albert Luthuli ICC Complex (Durban ICC), South Africa.

OCTOBER

3-5 October (Tuesday-Thursday): Smarter Mobility Africa Summit, South Africa.

NOVEMBER

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

14-15 November (Tuesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

EVENTS WITH NO SET DATE

2H2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H2023: Expansion of Baghdad International Airport to begin.

2024

FEBRUARY 2024

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-15 February (Monday-Thursday): African Air Expo, Cape Town.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

MARCH 2024

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Geneva, Switzerland, Hotel President Wilson.

2025

Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

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