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What we're tracking today

TODAY: Aid still stuck at Gaza-Egypt border + No dice for Iran and Azerbaijan’s railway through Armenia

Good morning, wonderful people. The news flow has slowed down a bit after a hectic weekend of news, with just a couple of big updates on the rail and shipping fronts.

THE BIG LOGISTICS STORY- Emirati-Omani JV Oman-Etihad Rail Companywill transport raw material from Oman to UAE through the UAE-Oman Rail Network under an agreement with Emirates Steel Arkan.

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

HAPPENING TODAY-

Aid shipments are still stuck at the Gaza-Egypt Rafah border crossing: The Rafah border crossing between Egypt and Gaza remained closed yesterday despite US-led efforts to open it yesterday for foreign nationals and humanitarian aid, the Financial Times reports. The Egyptian government is ready and hoping for a breakthrough, though talks with Israel remained gridlocked as of yesterday afternoon, the FT adds, citing Egyptian Foreign Minister Sameh Shoukry.

Egypt over the weekend refused to open the border for foreigners looking to leave Gaza, saying behind closed doors that it would only do so if aid were allowed into the strip. Both parties remain at a standstill despite the UN and other agencies warning of a humanitarian crisis.

Has the Zangezur corridor linking Iran, Azerbaijan via Armenia been scrapped?Azerbaijan’s Nakhchivan railway is set to pass through Iran’s Nakhjavan area instead of through Armenian soil, as an alternative to the proposed Zangezur corridor which would’ve went through Armenia, Islamic Republic news agency (IRNA) quotes Azeri President Ilham Aliyev as saying at the 27th Meeting of Foreign Ministers of the Economic Cooperation Organization. The commercial corridor is being implemented based on an agreement to establish a communication route between Azerbaijan and the Nakhchivan via Iran’s territory, IRNA writes.

Background: The proposed Zangezur corridor, which would’ve run through Armenia, may have been scrapped after Azerbaijan launched an offensive last month to take control over the disputed Nagorno-Karabakh region, on the border of Armenia, according to Tehran Times. Aliyev has reportedly proposed normalization talks with Armenia with the help of other regional countries, in a bid to sign a peace agreement, the outlet quotes him as saying.

DATA POINT #1- Saudi ports registered a 12% y-o-y uptick in container traffic in September, with KSA’s ports handling 732k TEUs during the month, up from 655k TEUs in September of last year, according to a Saudi Ports Authority (Mawani) press release. Exported containers saw an 18% yearly increase, growing to 234k TEUs last month. Imported containers increased 17% y-o-y, reaching 218k TEUs last month in comparison to last year’s 186k TEUs. Meanwhile, transshipments saw a 3% yearly increase, settling at 280k TEUs last month compared to 271k TEUs a year ago.

DATA POINT #2- Saudi e-commerce registrations exceeded 36k in 3Q 2023, a 12% y-o-y increase, according to the Commerce Ministry’s third quarterly report for 2023 (pdf). Riyadh accounted for the greatest number of new registrations at 14.5k, followed by Mecca at 9.3k and the Eastern Province at 5.9k. The growth in the sectors was driven by a boom in fintech, telemedicine, and software development services, the ministerial report said.

DATA POINT #3- Queen Alia International Airport (QAIA) saw a 9.9% y-o-y increase in cargo handled in September, with 6.1k tons of cargo handled, according to a press release. Aircraft movement increased 20.4% y-o-y to 6.8k, and the airport hosted 841k passengers during the period.

CIRCLE YOUR CALENDAR-

The Duqm Economic Forum, hosted by Oman’s Public Authority for Special Economic Zones & Freezones (OPAZ), wraps today at the Crowne Plaza Hotel in Duqm, Oman. The two-day event showcases green investment avenues offered by the Special Economic Zone at Duqm (Sezad). The event brings together business leaders, policymakers, industrialists, trade specialists, logistics professionals, and experts to discuss and present case studies, assess future trends, and exchange knowledge, insights, expertise, and discuss upcoming investments, according to the event brochure (pdf).

The annual meeting of the Federation of National Associations of Ship Brokers andAgents(FONASBA) kicked off yesterday in Amman, Jordan, and will wrap on Wednesday.

The G7 Trade Ministers meeting will take place at the Osaka International Convention Center in Sakai, Osaka, Japan between 28 and 29 October. The event will bring together trade ministers from Canada, France, Germany, Italy, United States, United Kingdom, Germany and the European Union to discuss the changing environment surrounding trade, and growth of the global economy.

The Dubai Precious Metals Conference 2023 is taking place on 20-21 November 2023 at the ballroom at the SO/ Uptown Dubai in the UAE. The event will bring together industry experts, innovators, and leaders to discuss emerging trends, technologies, and strategies driving the metals industry.

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

Oman and Etihad Rail Company partners with Emirates Steel Arkan to transport raw materials from Oman to the UAE

Emirati-Omani JV Oman-Etihad Rail Companywill transport raw material from Oman to UAE through the UAE-Oman Rail Network under an agreement with Emirates Steel Arkan, the companies said in a press release. OERC will offer logistics solutions to transport Emirates Steel Arkan’s imported raw limestone from Oman to its cement factories in Al Ain in the UAE, the press release said,

The details: The agreement will see the company transport 4 to 6 mn tonnes of raw limestone a year through the logistics corridor, the statement added.

What they said: “This agreement paves the way for integrated logistics solutions for the transportation of raw materials to and from our cement plant in Al Ain, boosting our operational efficiency and cost-effectiveness, and reducing environmental impact. Furthermore, this enhances our transport infrastructure and reinforces cross-border supply chains,” Emirates Steel CEO Saeed Khalfan Al Ghafri said.

OERC isn’t new to the raw material transport scene: OERC previously signed an MoU with Omani Jindal Shadeed Iron & Steel (Jindal) to set up a green transport logistics corridor between the UAE and Jindal’s steel complex at Sohar Port through the UAE-Oman Rail Network. OERC also inked an MoU with Brazil’s Vale to work on developing logistical solutions to ship iron ore and derivatives from Vale’s industrial hub in Oman’s Sohar Port and Freezone to Vale’s factories and distribution points.

About OERC: Etihad Rail and Oman Rail signed a USD 3 bn agreement last year to establish The Oman and Etihad Rail Company, linking Oman’s Sohar Port with the UAE’s national railway network. The transport link between the UAE and Oman — first announced in September — is aimed at boosting trade between the two countries and the region. The rail line serves both passenger and freight trains.

Nakilat’s bottomline up 4.8% y-o-y in 3Q 2023 on the back of solid performance from LNG and LPG JVs

Doha-based LNG carrier Nakilat’s net income rose 4.8% y-o-y to QAR 1.19 bn (USD 327 mn) bottomline in 3Q 2023, according to its earnings release. The company’s topline for 3Q 2023 rose 6.5% y-o-y to top QAR 3.47 bn, driven by robust earnings from LNG, LPG, and shipyard joint ventures, in addition to greater portfolio earnings due to higher interest rates on term deposits, according to an investor presentation (pdf).

Higher finance charges offset some of the gains in revenue: Nakilat’s total expenses for the quarter grew 7.4% when compared to the same period last year. Finance charges saw greater increase than any other expense category at 10.3% y-o-y, due to higher interest rates and scheduled repayments of loans, the investor presentation showed.

Looking ahead: “As the global demand for clean energy shipping capacities continues to rise, Nakilat remains fully committed to meeting the long-term requirements for secure and reliable energy transportation solutions, through remaining agile and proactive in addressing emerging challenges and [prospects] worldwide,” Nakilat CEO Abdullah Al Sulaiti said.

Logistics companies turn to flexible workers in the gig economy

Warehouses are tapping into the gig economy for workers: Logistics companies are offering more flexibility to workers in scheduling and shift choices as they compete to attract labor, the Wall Street Journal reports. Operators are beginning to use software “not unlike Uber or Lyft or Grubhub” to fill slots, especially ahead of holiday season, according to Ohio-based warehouse staffing agency Ignite Industrial Professionals CEO Brian Devine.The percentage of logistics employees who have engaged in flexible, gig-type work, allowing them to select their preferred four- to six-hour shifts, increased from 15.1% in 2021 to 21% this year, WSJ said, citing data from EmployBridge.

The US is looking to modernize the navigation systems in the Great Lakes, which will involve upgrading the Soo Locks below Lake Superior, the Wall Street Journal (WSJ) reports. The Biden Administration has pumped some USD 700 mn from its USD 1 tn infrastructure law into building a new lock, which should be completed by 2030. Some 10k ships pass through the locks annually to transport iron ore, grain, limestone, and other staples across the Great Lakes and Canada, the outlet writes.

What exactly are locks? Locks are a navigational system that allows large ships to bypass difficult waters, in this case the rapids below Lake Superior. The Soo Locks were originally opened in the 1850s to accommodate a boom in copper mining, and have since been upgraded every few decades. Ships passing through this network carry some 90% of the US’s iron ore, and if navigation there were disrupted for an extended period, it could potentially cost mns of jobs and reduce the nation’s GDP by some USD 1.1 tn, WSJ writes, citing a study by the US Department of Homeland Security. The locks are vital because distributing iron ore and other supplies by land would be cost-prohibitive, the outlet explains.

Financing could pose a challenge: The hefty USD 700 mn price tag still might not be enough to finish the project, which is expected to be completed by 2030, sources told WSJ. “This is the type of very large, important infrastructure that needs someone dogging it all the time,” said one senator and supporter of the project.

ALSO WORTH KNOWING-

Shipbuilders Nippon Yusen and Kyushu Yusen delivered the world’s first LNG-fuelled panamax bulk carrier earlier in October, with operations kicking off after bunkering on 12 October. (Statement)
Head of German Hapag Lloyd Rolf Habben Jansen shared a bleak outlook for the shipping sector over the next three years, citing a slow growth in shipping demand relative to shipping capacity. (Reuters)

Another Saudi airport to get a revamp + SCZone eyes more green energy cooperation. PLUS: More from Al Seer Marine, Bahrain, Saudia Cargo, UPO and Nasdaq Dubai

AVIATION-

KSA’s Al Wajh Airport is getting a revamp: Multi-project developer Red Sea Global, which is owned by the Saudi sovereign wealth fund, will carry out refurbishment work at Al Wajh Airport in Saudi Arabia, according to a press release. The project aims to modernize the airport and bring it up to international standards by upgrading its terminal and infrastructure. Red Sea Global is also building a new international terminal at the airport. In addition to the upgrades, four Saudia flights will be transferred from Al Wajh to Red Sea International Airport, according to the press release.

This is the second airport revamp news coming out of KSA this week: Saudi Arabia earlier this week unveiled expansion plans for its Abha International Airport to 65k square meters, in a bid to increase passenger capacity, flights, and air connectivity in the Asia region.

Bahrain + MIDRMA discuss issues relating to civil aviation in the region: Bahrain’s Transport and Communications Ministry and the Middle East Regional Monitoring Agency (MIDRMA) held a meeting in Geneva where they discussed several issues related to civil aviation in the Middle East, according to a statement. The topics discussed included the responsibilities and tasks related to evaluating air navigation performance, including providing the necessary information about the requirements of minimum vertical separation between aircraft. Also during the meeting, Director of the Aviation Safety and Security Department at Brahrain’s Civil Aviation Affairs Abdullah Hassan Al Qadi was appointed as chairman of the Middle East Regional Monitoring Agency.

ZONES-

SCZone + Chint Global discuss clean energy cooperation: The Egyptian Suez Canal Economic Zone’s (SCZone) Vice President for Investment and Promotion Affairs Ibrahim Abdel Khaleq discussed with Chinese manufacturer electrical equipment supplier Chint Global the possibility of cooperating in renewable and green energy, according to a statement. During the meeting, which took place on the sidelines of Chint Global’s International Forum in Shanghai, the SCZone invited Chint Group to increase its investments in Egypt to serve the renewable and green energy sectors. The Egyptian delegation was also introduced to all of the Group’s technologies and equipment and its solar energy station in Shanghai, according to the statement.

MARITIME + SHIPPING-

Al Seer Marine adds another VLGC to its fleet: Abu Dhabi based International Holding Company’ subsidiary Al Seer Marine has received a very large gas carrier (VLGC) — dubbed North Gas — with 84.3k cubic meters in capacity, Emirati news agency Wam reports. North Gas was built by Hyundai Heavy Industries (HHI) and was transferred to ABGC in Korea earlier in the month. This marks the second VLGC delivery for Al Seer Marine under the AED 459 mn agreement by ABGC, a joint venture between Al Seer Marine and BGN International, with the first VLGC — dubbed Lucky Gas — delivered in June. Al Seer Marine’s fleet now has 20 ships.

CAPITAL MARKETS-

The world’s first BRI green bond is now listed on Nasdaq Dubai: The Bank of China has issued the world’s first Belt and Road Initiative-Partner-Themed green notes worth USD 770 mn on Nasdaq Dubai through its Dubai and Luxembourg branches, according to a press release. The Luxembourg branch unveiled an offshore RMB product worth RMB 2 bn (USD 270 mn), while the Dubai branch released a USD 500 mn secured overnight financing rate (SOFR) floating-rate product, each with a three year term, according to the release. The proceeds generated by the two notes will be allocated to fund eligible green projects located in BRI-partner countries, including the UAE, Saudi Arabia, Portugal, Austria, Bulgaria, and Poland.

ALSO WORTH KNOWING-

Oman’s Civil Aviation Authority has inked a memorandum of cooperation with OQ Group and Sky Energy to study the possibility of developing a unit to produce sustainable jet fuel in Oman. (ONA)
State-owned Omani energy firmOQ has invested over USD 10 bn in several projects in Duqm, Oman, including the Ras Markaz Oil Storage Terminal. (Times of Oman)
Saudi air cargo carrier Saudia Cargo has secured the Centre of Excellence for Independent Validators (CEIV) Pharma certification from the International Air Transport Association. (Statement)
The Syndicate of Owners of Clearance and Cargo Transport Companies and the Joint Syrian-Jordanian Free Zone have agreed to establish a partnership council to facilitate procedures of transporting goods between Syria and Jordan, andbring in new investors to the zone. (FANA news)
Universal Postal Union (UPU) has inked an agreement with Qatar’s Minister of Communications and Information Technology to set up UPU’s regional office in Doha. (Press release)

J&T Global Express halves IPO amid weak China outlook + Brazil’s corn shipments are under pressure. PLUS: More from Maersk and the UK

J&T Global Express eyes USD 500 mn Hong Kong IPO, slashing initial target by half:Tencent -backed logistics outfit J&T Global Express is looking to raise upwards of USD 500 mn via a share offering on the Hong Kong Exchange (HKEX), down from an initial plan to raise some USD 1 bn on weak demand, the Wall Street Journal (WSJ) reports, citing a company statement. The company plans to float 326.55 mn shares at HKD 12 (USD 1.54) a piece, and expects its shares to begin trading on the HKEX by 27 October, the company reportedly said. Proceeds will go towards broadening the company’s logistics network, broaching new markets, and R&D, WSJ wrote.

Behind the downgrade: The company reportedly slashed the size of its IPO on the back of a weak outlook on China’s economy and its tense relations with the US, the Financial Times reports, citing analysts.

Advisors:Morgan Stanley, BofA Securities, and CICC are among the financial institutions cited by WSJ as joint sponsors for the IPO.

J&T is big in MENA: Following its founding in Indonesia in 2015, the company expanded its delivery operations to 13 countries, including KSA, the UAE, and Egypt.

Dry spell disrupts corn shipments coming out of the Amazonian rainforest: Brazilian shipping agents have alerted clients that a severe drought is restricting barge traffic along inland rivers, Reuters reported. Barges are cutting their loads by as much as 50% in order to navigate waterways in the Amazon basin, with loading schedules also affected. Although lighter loads are business-as-usual for the dry season, the reductions observed this time are particularly drastic, the newswire wrote.

But it’s not that bad after all: Amport, a grouping of Amazonian private port operators, told the newswire that the main seaports receiving cargoes from inland rivers are operating normally. Despite the draft of private ports on inland waterways reaching record lows, Amport expects a 25% y-o-y increase in the volume of vegetable bulk shipments this year.

ALSO WORTH KNOWING-

Britain and South Korea will extend their agreement on low or zero tariff trade fortwo years, delaying what would have been high tariffs on British exports of products made using materials from the EU, initially set to come into effect on 1 January. (Reuters)
Spanish multinational clothing companyInditex has joined APMoller-Maersk’s Eco Delivery Ocean programme, which helps them reduce maritime transport emissions by some 80%, by using certified green fuels for a fixed cost, and exempting them from future EU Emissions Trading System (ETS) charges. (Statement)

Calendar

OCTOBER

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

16-17 October (Monday-Tuesday): Duqm Economic Forum, Crowne Plaza, Duqm, Oman.

16-18 October (Monday-Wednesday): Federation of National Associations of Ship Brokers and Agents (FONASBA) Annual Meeting 2023, Amman, Jordan.

17-19 October (Tuesday-Thursday): MRO Europe, Amsterdam, Netherlands.

17-19 October (Tuesday-Thursday): TOC Americas, Panama City, USA.

19 October (Thursday): Perishable Logistics Africa, Nairobi, Kenya.

22-23 October (Sunday-Monday): Supply Chain and Logistics Conference 2023, Four Seasons, Riyadh, Saudi Arabia.

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

26-29 October (Thursday-Sunday): ICASM 2023, Conrad, Etihad Towers, Abu Dhabi, UAE.

28-29 October (Saturday-Sunday): G7 Trade Ministers Meeting, Osaka International Convention Center, Sakai, Osaka, Japan.

30 Oct-2 Nov (Monday-Thursday): XLP AGM 2023, Barcelona, Spain.

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

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

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

NOVEMBER

November: Abu Dhabi Airports Terminal A set to become operational.

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

11-13 November (Saturday-Monday): GCC-Türkiye Economic Forum, Çırağan Palace Kempinski Hotel, Istanbul, Turkey.

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

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

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

17-18 November (Friday-Saturday): 17th Iran-Turkmenistan Joint Economic Commission, Ashgabat, Turkmenistan.

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, UAE.

20-21 November(Monday-Tuesday): Dubai Precious Metals Conference, SO/ Uptown, Dubai, UAE.

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.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

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

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: 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.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi – Suhar rail link to be announced.

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

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

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

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

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

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, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL 2024

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

MAY 2024

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

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

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.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

2027

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

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