Qterminals in Rotterdam

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What we're tracking today

TODAY: Mawani’s ports saw a boost in container handling in July + Is container market sentiment heading towards recovery?

Good morning, lovely people. The newsflow has picked up after a slow start to the week, which means we have a bunch of interesting updates for you across a wide variety of sectors from around the region.

BUT FIRST- A quick programming note: Enterprise Logistics will be taking a publication holiday tomorrow, we’ll be back in your inbox at the usual time on Monday, 21 August.

THE BIG LOGISTICS STORY- Qatar’s state-owned Qterminals is expanding to Dutch ports, after inking a sale and purchase agreement to acquire a majority stake in the Rotterdam-based logistics service provider Kramer Group.

^^ We have everything on this story and more in the news well, below.

DATA POINT #1- Iraqi ports handled 935 vessels in 1H 2023,with the vesselscarrying some 11.7 mn tons, according to a ministry statement. The port received 436 oil tankers carrying some 58 mn tons, and 349 container vessels handling 372.k tonnage, according to the statement.

DATA POINT #2- The Saudi Ports Authority (Mawani) has recorded an 19% increase in the number of containers handled in July 2023, as well as an increase in the number of transshipment containers by 0.41%, according to a statement. Livestock carriers rose 63.8%, while food cargoes rose 16.9%, though the statement does not clarify whether this change is on a quarterly or annual basis.

MARKET WATCH- Container market sentiment points to rebound: July’s Container Price Sentiment Index (xCPSI), which surveyed 2.5k supply chain experts, indicates optimism for container market recovery, according to Container xChange. Some 42% of survey participants anticipated a near-term rise in container prices, suggesting a possible market improvement. Only 28% expected prices to decline further, and 30% predicted no change in prices. Container prices held steady in July, suggesting a shift in the market that is advantageous for shippers as they enter the high-demand season.

NON-LOGISTICS REGIONAL HEADLINES:

UAE: The UAE has begun the local election process ahead of the planned vote in October. (Emarat Al Youm)
KSA: Saudi Arabia’s inflation slowed down for a second consecutive month in July to 2.3% from 2.7% a month earlier. (Okaz)

CIRCLE YOUR CALENDAR-

CIRCLE YOUR CALENDAR- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

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Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

CIRCLE YOUR CALENDAR-

The Sustainable Maritime Industry Conference will be taking place on 4-6 September 2023 at the Ritz Carlton in Jeddah, Saudi Arabia. The three-day conference will bring together more than 50 speakers to discuss sustainability, new technologies, innovation and digitalization, and capacity building in the maritime industry.

LISTEN TO OUR PODCAST-

MISSED OUR PREVIOUS FORUMS? The EnterprisePodcast has you covered : The Enterprise Podcast’s forum series has been bringing you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum and Enterprise Climate Forum.

WANT TO LISTEN? Head to: Apple Podcasts | Spotify | Google Podcasts | Anghami.

IN THIS WEEK’S EPISODE- It’s the very first panel of the Enterprise Climate Forum: Egypt brought home major victories from COP27, signing framework agreements for about USD 85 bn worth of green hydrogen projects, and announcing more than USD 10 bn in funding for the Nexus for Food, Water and Energy (NWFE) program. While we have a long way to go before much of the wins from COP27 will be tangible to the private sector, the opportunities in green hydrogen and NWFE are “now.” Our panelists helped explain how these two can be made actionable. We were joined by Jorgo Chatzimarkakis, CEO of Hydrogen Europe, Khalid Hamza, Director and head of Egypt at the European Bank for Reconstruction and Development, and Khaled Naguib, CEO of Hydrogen Egypt.

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

Qterminals to acquire majority stake in Rotterdam Port’s Kramer Group

Qterminals snaps up majority stake in Kramer: Qatar-based terminal operating company QTerminals has inked a sale and purchase agreement to acquire a majority stake in the Rotterdam-based logistics service provider Kramer Group, according to a statement. The statement did not disclose the exact size or value of the stake, or the timeline for the completion of the acquisition.

What’s Kramer Group? It’s a major player in the Netherlands’ Rotterdam Port — the largest European port — operating in six different locations inside the port which are all connected to its main terminals, the statement said.

What they said: “Kramer Group has both core and strategic importance to the Port of Rotterdam, as it supplements the port’s activities whilst having direct access to the deep-sea terminals of the Port of Rotterdam,” Qterminals CEO Neville Bissett said in a statement.

Further European expansion for Qterminals? “The acquisition of the Kramer Group by QTerminals allows its entry and presence in the largest port in Europe which makes QTerminals Group’s position stronger in relation to future opportunities in Europe and other developed global markets,” Bissett added.

“Key” Kramer management + employees to stay on board: The CEO of Kramer Group, Andre Kramer, will stay on board upon the completion of the acquisition, along with “key management personnel and employees,” Bissett said in a.

About QTerminals: QTerminals is jointly established by Qatar Ports Management company (Mwani Qatar), which owns 51% of the company, and Qatar Navigation (Milaha), which owns 49%, according to its website. The company is responsible for enabling Qatar’s imports, exports, and maritime trade flows by providing container, general cargo, roro, livestock, and offshore services in Qatar’s Hamad Port.

AD Ports to operate a Kazakh grain terminal?

AD Ports may soon operate + develop grain terminal at Sarzha Port: AD Ports Group has inked a heads of terms agreement with Kazakh company Semurg Invest to potentially invest in Kazakh grain terminal Sarzha Multifunctional Marine Terminal in Kuryk Port, according to a press release. The two companies will form a JV to invest in, operate, and develop Sarzha terminal into a multipurpose terminal.

Background: The head of terms agreement follows the inking of an MoU back in January for cooperation with the Kazakh Industry, Infrastructural Development Ministry to cooperate in the development of a marine fleet and coastal infrastructure in the Caspian and Black sea.

About Semurg Invest: The company was established to develop and implement infrastructure projects in Kazakhstan, according to the company website. It owns and currently develops Sarzha Multifunctional Marine Terminal in Kuryk, according to its website.

DP World to increase container handling capacity at some regional ports by 3 mn TEUs by year’s end

DP World is set to add 3 mn TEU of container handling capacity to ports it operates by the end of 2023, according to a company statement. The company will add 1.2 mn TEUs in Caucedo port in Dominican Republic, 579k TEUs in Yarimca port in Turkey, 500k TEUs in Ain Sokhna port Egypt, and 200k TEUs in Jeddah Islamic Port in Saudi Arabia, among other vital markets.

The expansions will raise the company’s total gross capacity to 93.6 mn TEUs, according to the statement. DP World’s expansion plans come as “inflation, increased cost of living and geopolitical uncertainties [are] causing concern about global trade and fuelling demand for faster, more resilient supply chain solutions,” the statement said.

What they said: “We have to take a longer-term view of global economics, looking at how demand will change and how we can meet it in the most efficient way. Our medium-term target is to reach 100 mn TEU a year, subject to demand,” Tiemen Meester, COO of Ports and Terminals at DP World, said.

FedEx Express launches two new delivery services for Middle East countries

FedEx launches two new delivery services in MENA: FedEx subsidiary FedEx Express has launched its FedEx regional economy and regional economy freight services to cater cross border trade demand across the Middle East, GCC Business News reports. The services will be offered across FedEx’s Middle East Road Network (MERN), which includes Bahrain, Jordan, Kuwait, Oman, Saudi Arabia, and the UAE, the outlet reports.

About the services: The deferred day-definite road services will be offered to SMEs as cost-effective shipping solutions for less urgent shipments, GCC Business News writes. The regional economy service will send shipments in between 3-5 business days, while regional economy freight will take 4-6 days to ship, the outlet reports. Both services can carry shipments weighing up to 68 kg of shipments.

Who's the service made for? The FedEx Regional Economy services are ideal for automotive, electronics, oil and gas, fashion and retail, chemicals, e-commerce, and healthcare, the outlet reports.

AD Ports reports 3% y-o-y increase in net income in 2Q 2023

AD Ports Group reported a 3% y-o-y increase in net income to AED 310 mn in 2Q 2023 as the company paid off expansion-related debt and incurred additional costs related to deployment of new assets, according to its latest financials (pdf). Revenues also rose 66% y-o-y to AED 2.1 bn during the quarter, driven by strong performance in its maritime, ports, and digital clusters, as well as acquisitions, according to its earnings release. AD Ports reported an increase of 10.9% y-o-y in net income to AED 672.6 mn for 1H 2023, Revenue for 1H 2023 increased by 69.4% y-o-y to AED 3.8 bn.

The breakdown: The company’s maritime cluster saw revenues soar 208% y-o-y to AED 1.2 bn during the quarter, mainly on the back of improvement in container, bulk, and offshore logistics and services business segments. Its ports cluster also reported 22% y-o-y revenue growth, as container volumes rose 10% y-o-y to 1.21 mn TEUs and as a new 50-year concession agreement for a terminal at Karachi Port began to contribute to earnings. The logistics cluster saw revenues inch up 3% y-o-y to AED 127 mn, while the digital cluster saw revenues rise 26% y-o-y to AED 117 mn.

On the downside: The economic cities and freezones cluster reported a 10% y-o-y decline to AED 441 mn due to lower usage of its Razeen staff accommodation, which last year was used as a Covid-19 isolation and quarantine facilities.

OTHER EARNINGS NEWS-

Emirati low-cost airline Air Arabia recorded a 187% y-o-y surge in net income to AED 459 mn in 2Q 2023, according to an earnings release. Its sales during the period rose 25% y-o-y to AED 1.4 bn. The airline saw a 78% y-o-y increase in net profit to AED 801 mn in 1H 2023, whilst revenues rose 26% y-o-y to AED 2.8 bn. The positive results came off the back of the airline’s “strategic expansion plan by strengthening the fleet size, adding new routes and new frequencies across all seven operating hubs,” said Chairman of Air Arabia Abdullah Bin Mohamed Al Thani.

Regional agro-food firm Invictus Investment Company recorded AED 136 mn in net income in 1H 2023, reporting substantial growth and market diversification, according to a press release. The company's revenues rose 30% y-o-y to AED 4.2 bn. The company’s Middle Eastern operations generated AED 1.2 bn, with sales up 173% y-o-y.

Iran, Turkey discuss boosting trade + UAE, Brazil eye boosting trade cooperation

I ran + Turkey eye stronger trade and transport ties: Iran’s Deputy Foreign Minister for Economic Diplomacy Mehdi Safari and Turkish Foreign Minister Ahmed Yildiz discussed strengthening cooperation across several fields including transportation and trade, Islamic Republic News Agency reports. They also highlighted the importance of eliminating obstacles to increasing the volume of bilateral trade to USD 30 bn.

ALSO WORTH KNOWING-

UAE + Brazil look to boost economic cooperation: The UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi met with the Brazilian trade, tourism, and agriculture ministers to discuss enhancing economic ties. (Statement)

Successful biofuel bunkering trial shows 83% emission reductions + Why the US is behind on port automation

Biofuel bunkering trial shows 83% reduction in emissions: The Global Center for Maritime Decarbonisation (GCMD) has tested a new oil biofuel blend that reduced carbon emissions by 83%, Reuters reports. The biofuel, which was used on an LPG carrier with dual-fuel capabilities, was made up of marine gasoil blended with 30% hydrotreated vegetable oil (HVO), and was derived from waste and residues. The trial is the third of five supply chain bunkering trials as part of the center’s USD 18 mn project to test alternative biofuels to reduce carbon emissions.

Hefty costs + infrastructural complications are keeping US firms from automating ports : Ports in the US are lagging behind counterparts elsewhere in the world, such as Shanghai’s Yangshan Port and the Netherlands’ Port of Rotterdam, who are rapidly adopting automation to handle cargo, the Wall Street Journal writes. While the US would benefit from deploying automation to process cargo faster and keep its supply chain competitive, the country’s ports are facing hurdles like space constraints and awkwardly shaped terminals, WSJ writes. Port operators have also shown little enthusiasm for automation, saying they can hardly afford the bns of USD needed to automate operations. “You’re going to give up a lot of terminal space while you are under construction,” one port official said. “You’re going to have to sustain that loss of revenue for a period of time and getting the return on investment seems pretty difficult.”

Aramex trials live shipment tracking in the UAE + OOCL launches Turkey-Spain-Morocco shipping line

LAST MILE-

Logistics giant Aramex is testing live tracking for last-mile delivery in the GCC region,according to a press release. The system, which uses Google Maps’ mobility services in partnership with OniGroup, utilizes machine learning and predictive AI to generate delivery coordinates that allow users to track shipments in real time for the last five stops until the package reaches their doorstep. The feature is currently in beta testing in the UAE and will be launched across the GCC soon, with plans for a full-scale launch by 1Q 2024.

SHIPPING LINES-

Orient Overseas Container Line ( OOCL ) has introduced a new Turkey-Spain- Morocco Express (TSM) service, as part of its Intra-European Network, according to a company statement. The new service establishes a direct link between Greece, Turkey, Spain, and Morocco, with a transshipment point in Piraeus, Greece. The service will offer weekly departures from all ports, with four vessels operating on a 28-day rotation.

Rotation: The complete rotation will cover Greece’s Piraeus and Thessaloniki; Turkey’s Safi Port Derince, Gemlik, Aliaga, and Piraeus; Spain’s Valencia; Morocco’s Casablanca; and Spain’s Algeciras and Barcelona.

Yellow’s crash is a boon for other US trucking firms + Sri Lanka lifts three-year ban on truck imports

The collapse of US trucking giant Yellow is boosting competitor performance, The Wall Street Journal reports. The company’s recent bankruptcy, which resulted in the layoffs of some 30k workers, helped boost the less-than-truckload sector, which includes firms that carry cargo for multiple customers on the same trailer. Rivals including ABB freight, Old Dominion, and Freight Line have seen stronger operations since mid-July as Yellow customers have sought alternative routes, with experts saying that several truckers are seeing 2-3k shipments each day in recent weeks.

ALSO WORTH KNOWING-

Sri Lanka has lifted a ban on the import of trucks, tankers, and other heavy vehicles for the first time since March 2020. (Reuters)

Calendar

AUGUST

August: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

Oman will award Ras Al Hadd Airport consultancy contract.

27 August (Sunday): Last day for companies to bid for the construction tender for Kuwait’s Mubarak Al Kabeer Port.

28 August (Monday): Registration for Emirates Postal Group’s Logistics Unleashed competition concludes.

SEPTEMBER

4-6 September (Monday-Wednesday): The Sustainable Maritime Industry Conference, Ritz Carlton, Jeddah.

4-8 September (Monday-Friday): Logistics and Transport Management, Dubai.

5 September (Tuesday): The Leaders in Logistics KSA Summit, Crowne Plaza Al Waha, Riyadh.

6-7 September (Wednesday-Thursday): Sustainability LIVE London, Business Design Centre, London.

11-14 September (Monday-Thursday): The Libyan Moroccan Forum for Trade and Business, Tangiers, Morocco.

11-15 September (Monday-Friday): London International Shipping Week 2023, International Maritime Organization, London, United Kingdom

12 September (Tuesday): Global Pharma Logistics Summit 2023, ITC Maratha, Mumbai, India.

18-19 September (Tuesday-Wednesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

20-21 September (Wednesday-Thursday): Saudi Maritime Congress, Dhahran Expo, Damman, Saudi Arabia.

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

20-23 September (Wednesday-Saturday): MTB Workboats, Hyatt Regency Dubai, Dubai.

25-27 September (Monday-Wednesday): Airline Economics Growth Frontiers Middle East & Africa, The Ritz-Carlton, Dubai, UAE.

25-27 September (Monday-Wednesday): Agriculture Horticulture Development Board’s trade mission to Kuwait.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

26-28 September (Tuesday-Thursday): Breakbulk Americas, George R. Brown Convention Center, Houston, Texas.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

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

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): International Congress of Aviation and Space Medicine, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

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

9-15 November (Thursday-Wednesday): Intra-AfricanTrade Fair, Cairo, Egypt.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

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

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

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

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

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

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.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

1H 2024: Work is scheduled to begin on the 162 km Rasht-Astara railway in Iran.

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

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

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

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.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

NOVEMBER 2024

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2025

Mid-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.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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