An avalanche of news

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What we're tracking today

TODAY: Another Red Sea drone attack + could Turkey get some USDs for the Development Road project from the Gulfies?

Good morning, friends. It’s an incredibly busy start to the week, with news spanning virtually every logistics subsector and every country in the region, as world leaders convene for COP28 in Dubai and the IMO assembly in London.

THE BIG LOGISTICS STORY- AD Ports takes the cake with its drive to boost its influence in Asia, with a JV formed with Kazakhstan Railways to develop a logistics hub in the country, an agreement to build a shipyard in Kazakhstan, and a separate agreement with Vietnam to boost commercial expansion in various logistics-related sectors.

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

DISRUPTION WATCH-

Double strike off Yemen’s coast: A bulk carrier has been hit by a missile attack while sailing in the Red Sea, while another container vessel was also damaged by a drone in a separate incident 63 miles northwest of Yemen’s Houthi-controlled port of Hodeidah, Reuters reported. Britain’s Maritime Trade Operations agency (UKMTO), had earlier reported drone activity originating from Yemen and a possible explosion, and urged vessels in the area to be cautious, the newswire reported separately. Houthi military spokesman Brig. Gen. Yahya Saree claimed the attacks in a post on X.

Why these ships? Saree said the first vessel — the Unity Explorer — is owned by a British firm that includes Dan David Ungar as one of its officers, the AP reports. Ungar is the son of Israeli shipping bnair Abraham “Rani” Ungar, who was also linked to another boat involved in attacks in recent weeks. The second vessel was a Panamanian-flagged container ship called Number 9, which is linked to Bernhard Schulte Shipmanagement, according to the AP.

US warship responds: US Navy destroyer USS Carney has shot down an Iranian-made drone that was headed for the ship after being launched from a Houthi-controlled area in Yemen, according to a statement. The Carney was escorting a US Navy supply ship and another US-flagged and crewed vessel that was transporting military equipment to the region, the statement said.

The incidents are the latest in a series of attacks following Houthi warnings: Yemen’s Iran-aligned Houthi group had issued warnings a few weeks ago indicating that they would target Israeli shipping in the Red Sea and Bab Al Mandeb strait. The following days saw Houthi gunmen seize the Bahamas-flagged Galaxy Leader and its crew. Yemen’s Houthi group, which controls the country’s north and most of its Red Sea coast, has stepped up attacks against Israeli shipping in the region following the country’s war with Hamas.

ICS says enough is enough: The International Chamber of Shipping has called for an immediate stop to attacks on ships and for the release of “innocent seafarers” that were taken hostage, in a statement. This follows a spate of attacks on Israeli-linked ships in the Red Sea and the Gulf of Aden, including British-owned commercial vessel Galaxy leader which was hijacked by Houthi gunmen on 19 November with 25 crew members aboard.

What they said: “The attacks are a flagrant breach of international law and maritime norms by paramilitary forces in Yemen. These attacks must stop immediately, and the innocent seafarers released,” the ICS said. The shipowners association also called for vessels transiting the region to “conduct a thorough threat and risk assessment,” taking into account flag and maritime ins.

Warehouse fire extinguished in Jebel Ali, Dubai: Dubai firefighters have extinguished a blaze that broke out in a warehouse, according to a Dubai Media Office statement last week. No injuries or deaths have been reported.

Is the Ever Given saga finally over for good?Copenhagen-based shipping company AP Moller-Maersk has reached a settlement in a lawsuit it had filed in Danish court over the ship that blocked the Suez Canal in 2021, Bloomberg reports. The ship, operated by Evergreen Marine Corp, had blocked the canal for six days in March 2021, causing global disruptions in global trade that lasted months. Maersk was seeking USD 44 mn for losses caused by the incident. The company confirmed to Bloomberg that it has withdrawn the case in Denmark, without disclosing the parties involved in the lawsuit.

Russia snags control of St Petersburg Airport from its Gulf + German Investors: Russian President Vladimir Putin inked a decree last week putting St Petersburg’s Pulkovo Airport under the temporary management of a Russian company that has been set up to manage the airport, Reuters reports. This decree takes control away from investors including German airport operator Fraport, who owns some 25%, Qatar’s sovereign wealth fund Qatar Investment Authority, who holds 24.99%, Russian state-bank VTB, who holds 25.01%, and a consortium of Abu Dhabi sovereign fund Mubadala, Russian Direct Investment Fund, and Baring Vostok, who hold the remaining 25%, the outlet writes.

What now? According to the decree, the rights of foreign shareholders will pass to two different Russian entities, while Russian shareholders will retain their rights. Foreign shareholders will be able to restore their rights to stakes in the new company if they apply and ink new agreements that comply with Russian foreign investment laws, the outlet writes.

WATCH THIS SPACE-

Qatar’s Power International Holding may invest in high-speed rail in Uzbekistan:Qatari business conglomerate Power International Holding plans to invest in the construction of a new high-speed railway from Tashkent to Samarkand in Uzbekistan, reports Azernews. This came during a visit by a Qatari delegation led by Deputy Chairman of Power International Holding Maurice Ghattas, where he met with Uzbekistan’s Ambassador to Unesco Umid Shadiyev, to discuss investments in Uzbekistan, Trend reports. The pair also discussed collaboration on a number of joint projects including the construction of a large logistics center, highway development, and railway and airport infrastructure.

DATA POINT #1-The Suez Canal witnessed an unprecedented rise in ships, net tonnage, and revenues in November, according to a statement. The canal saw a 4.3% y-o-y increase in ship crossings, amounting to 2.26k, while net tonnage increased by 8.2% y-o-y, reaching 135.5 mn tons on the back of a record number of ships — 387 — passing through the canal. Suez Canal revenues rose 20.3% y-o-y to USD 854 mn.

DATA POINT #2- Qatar’s merchandise trade balance reached USD 19 bn in October, a 24.2% drop from October 2022 and 4.2% lower than September 2023, according to figures from the Planning and Statistics Authority. Total exports saw a 23.5% y-o-y decrease, amounting to around QR 29.1 bn. The decrease in total exports is due to the lower export rate of petroleum gasses and other gaseous hydrocarbons, which experienced a 35.7% y-o-y decrease during the month. The total imports of goods showed a 22.1% y-o-y decrease at QR 10.1 bn, but a 6.9% m-o-m increase.

DATA POINT #3- KSA’s trade balance bleeds on lower exports + higher imports: Saudi Arabia’s trade surplus narrowed 54% y-o-y to SAR 100 bn, according to General Authority for Statistics (GASAT) figures (pdf). The kingdom’s exports fell 25% y-o-y to SAR 300 bn in 3Q 2023, while imports have increased 9.3% to SAR 200 bn.

Oil cuts weighed heavily on exports: Oil exports fell 27.8% y-o-y to SAR 231 bn in 3Q 2023, compounded with a 13% decline in non-oil exports to SAR 68.7 bn. The economy contracted 4.5% y-o-y in 3Q on the back of lower oil activity even as the private sector boom continued.

HAPPENING THIS WEEK-

Could Turkey secureGulf funds for the Development Road during Erdogan’s visit to the region? Turkish President Recep Tayyip Erdogan will seek as much as USD 23.5 bn in financing to build transport links between Asia and Europe via Turkey during his visits to the UAE during COP28, and Qatar, Bloomberg reports. Erdogan already sat down with UAE President Sheikh Mohammed Bin Zayed Al Nahyan on the sidelines of COP28, though no financing agreements have been announced as of yet.

What’s on the table? Erdogan is expected to discuss a rail and road network from Iraq’s Faw port to the Turkish border as well as a railway across the Bosphorus Strait, as part of the Development Road project, Transport and Infrastructure Minister Abdulkadir Uraloglu told the outlet.

Background: Some USD 8-10 bn worth of investment will be put towards the first phase for Iraq’s Development Road Project, with an increase to USD 20 bn, while the Bosphorus rail is expected to cost some USD 3-3.5 bn, Uraloglu added.

MARKET WATCH-

OPEC+ countries double down on supply cuts in 2024: Several OPEC+ countries agreed on Thursday to make deeper voluntary supply cuts in a bid to stabilize the markets, the alliance of oil producers said in a statement. Some 2.2 mn bpd will be removed from the market in 1Q 2024, with Russia committing to an additional 500k bpd cut and Saudi Arabia rolling over its 1 mnbpd reduction into 2024. The UAE, Iraq, Kuwait, Kazakhstan and Algeria and Oman will also reduce output during the period. The organization said it would gradually phase out the cuts starting 2Q 2024, depending on market conditions.

This isn’t the market reaction they wanted: Crude prices slumped almost 5% on Thursday and Friday following the announcement, which analysts attributed to the absence of a broader OPEC+ agreement and an expectation that the cuts would be deeper. “The market reaction implies disbelief in the full efficacy of the cuts,” Reuters quotes a JPMorgan analyst as saying.

Sluggish fleet growth means that the dry bulk market will dodge overcapacity going into the mid-2020s: Dry bulk cargo demand is expected to grow by 2.5-3.5% in 2023, 0.5-1.5% in 2024, and 1-2% in 2025, according base-case figures cited in a recent report by shipping association Bimco. Haul distances are expected to increase 0.5-1.5% in 2023, and up to 1% in 2024 and 2025, with shipments of raw materials from South America and Guinea stretching haul distances slightly.

Fleets are expected to grow by 2.9% in 2023, 2.4% in 2024 and 2% in 2025, the report says. Despite the less-than-impressive projections for cargo demand, the correspondingly muted fleet growth means that the dry bulk market should remain stable and avoid overcapacity.

CIRCLE YOUR CALENDAR-

Iranian President Ebrahim Raisi will visit Turkey this month to discuss bilateral ties, as well as proposals by the Iran-Turkey Joint Chamber of Commerce for boosting bilateral trade, including through a potential trade agreement, state-aligned Tasnim News Agency quotes chairman of the chamber Mehrdad Saadat as saying. Saadat said that Iran’s trade with Europe could grow by taking advantage of Turkey’s trade capacities.

The Iran-UAE Joint Economic Cooperation Commission meeting will be held in the coming weeks in a bid to develop bilateral cooperation, deepen commercial ties, and boost trade. The location has yet to be announced.

The International Conference on Air Services Negotiations (ICAN) 2023 will take place between 3-7 December at the Hilton Riyadh Hotel and Residences in Saudi Arabia. The event is hosted by the Saudi General Authority of Civil Aviation, and will serve as a meeting point for bilateral, regional air services talks and consultations, as well as a networking platform for policy makers, regulators, air operators, service providers and other stakeholders.

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

AD Ports forms JV to enhance logistics connectivity, inks agreement for shipyard in Kazakhstan + more cooperation with Vietnam

AD Ports inked an agreement with Kazakhstan Railways to forge a JV to develop a regional logistics hub in Kazakhstan, according to a press release. AD Ports Group will hold a 51% stake, with Kazakhstan Railways holding the remaining 49% stake. The project aims to strengthen logistics services inside Kazakhstan as well as maritime links between the Middle East and Central Asia, opening up new trade routes. The JV will be implemented in phases, with both groups working to develop maritime electronic systems, vessel operations, port and trade development, and railway infrastructure expansion.

The details: The two companies will enhance rail connectivity, maritime shipping services, develop operations at Kazak ports, and accelerate digital transformation and connectivity in Central Asia, the press release said. AD Ports will also leverage Kazakhstan Railways’ expertise in advanced vessel operations, logistics enhancement, and railway infrastructure expansion, according to the release.

Kazakhstan will also get a shipyard: AD Ports also inked a head of terms agreement with Kazakhstan’s state-owned oil and gas company KazMunayGas (KMG) to develop a multifaceted maritime construction and repair facility in the Mangistau region, according to a separate press release. The shipyard is expected to expand the role of AD Ports’ JV with KMG — Caspian Integrated Maritime Solutions (CIMS) — to facilitate the transportation of oil on the Caspian and Black seas by supporting CIMS’ fleet and expanding client services to third parties.

The details: The shipyard will offer a range of services including drydocking, afloat repairs, ship building and refurbishment, and will accommodate diverse vessel types, including bulk carriers, container ships, tankers, offshore vessels, and ferries, the release adds. The agreement also stipulates future collaborations, including the launch of additional vessel services under CIMS.

MORE AD PORTS NEWS-The company inked an agreement with Vietnam to develop commercial prospects: AD Ports and the Vietnamese transport ministry inked an MoU to boost commercial expansion in various logistics-related sectors, according to a press release. The companies will work on developing and managing dry ports, inland container depots, advanced logistics, and digital solutions, while also exploring future projects in economic cities and freezones, the statement reads. The two sides plan to set up a working group to oversee the project’s implementation, it adds.

Scatec to supply ships with green fuel + plans to establish a battery storage project in Egypt

Scatec inks green fuel agreement with Egypt at COP28: Norwegian renewables developer Scatec inked a USD 1.1 bn agreement with the Suez Canal Economic Zone to supply ships with green fuel in east Port Said, according to a statement released yesterday. The green fuel’s 190 MW electrolyzer will be powered by 317 MW wind and 140 MW solar energy with a production target of 100k tons of green methanol annually by 2027.

And there’s more: The Norwegian firm also signed an agreement with the Egyptian Electricity Holding Company to establish a 1 GW solar and 200 MWh battery storage project in Egypt, according to a statement released on Saturday. The African Development Bank Group signed a letter of intent for the financing package of the project yet the value of the project wasn’t disclosed.

Dnata closes multi-year contract with Maersk air freight for cargo operations at Cologne Bonn Airport

Dnata to provide Maersk airline with cargo services at CGN: Dubai-based ground handling, cargo, and air services provider Dnata has been awarded a multi-year contract with Maersk Air Freight for cargo handling operations at Cologne Bonn Airport (CGN), according to a press release.

The details: The partnership will see Dnata handle up to 6k tonnes of cargo a year for the freight airline, which currently operates two weekly flights between Cologne and Greenville in the US with a Boeing 747-400F freighter.

More flights + capacity coming soon: Maersk Air Freight is looking to increase the number of weekly flights and the route’s cargo capacity over the coming months, the statement said.

Background: Dnata first broached Germany’s cargo handling market in 2022 when it acquired the exclusive operator of the Cologne Bonn Cargo Centre, a 12k square meter cargo hub at CGN. Dnata serves 20 airlines at the facility and FY 2022-2023 saw the company process 60k tonnes of cargo at the airport. CGN is Germany’s third largest airport in terms of cargo volumes with capacity for further expansion, the statement also said.

About Dnata: The UAE-based company provides ground handling, cargo, and air services to clients in 30 countries. FY 2022-2023 saw the company turnaround upwards of 710k aircraft, handle more than 2.7 mn tonnes of cargo, uplift 111.4 mn airline meals, and rake in USD 1.9 bn in transactions, according to the statement.

TCI inks commercial agreement with SWCC for bulk cement silo terminal

TCI + SWCC partner on Egypt’s first cement export terminal: AD Ports’ Egypt-based terminal operator arm Transcargo International (TCI) has inked a commercial agreement with major Egyptian cement player and Aalborg Portland Group subsidiary Sinai White Portland Cement Company (SWCC) to build Egypt’s first bulk cement silo terminal in Arish Port, according to a press release. The move is slated to boost the export capabilities of Egypt’s cement sector. The statement did not disclose details on the value of the contract or the period over which the terminal will be established.

Details: Under the agreement’s terms, TCI will build and operate a white cement silos terminal with an export capacity exceeding 200k tons per year, according to the statement. The Arish Port bulk terminal project will include six silos, with 10k ton storage capacity each. Two silos will be reserved for the storage of white Portland cement, while the four remaining silos will store grey Portland cement.

What they said: “Building and operating Egypt’s first bulk cement terminal, we anticipate cost savings for cement producers in Egypt, making prices more competitive globally and increasing global market penetration,” TCI CEO Mohamed El Ahwal said. SWCC aims to expand its footprint in the global cement exports market through this project and looks to achieve substantial growth in export volumes over the coming five years, SWCC Managing Director Alberto Barbieri said.

SAR + Al Jabr ink agreement for the transport of thousands of vehicles in KSA

Saudi Arabia Railways (SAR) has inked a contract with Al Jabr Automotiveto transport thousands of cars annually via freight trains, according to a statement. Under the terms of the four year agreement, SAR will transport the vehicles from King AbdulAziz Port in Dammam to a storage and distribution yard that is also situated in Dammam, Saudi Press Agency (SPA) reported.

The “first of its kind” agreement comes with a slew of benefits: The arrangement is the first in the Kingdom to present a framework for the transportation of automobiles via rail, SPA said. It comes in a bid to boost operational efficiency, slash costs, curb damage to cars incurred during transport and handling, ease truck congestion at Dammam’s King AbdulAziz Port, promote road safety, and curb carbon emissions. By taking thousands of truck trips off the country’s roads, the agreement contributes towards meeting Saudi Arabia’s sustainability goals, SPA said.

What they said: The agreement represents a milestone for SAR in terms of its expansion to new market segments and the rolling out of new services, SAR CEO Bashar bin Khaled Al Malik said in statements cited by SPA.

DP World secures some SAR 1.28 bn in financing for the south container terminal at Jeddah Islamic Port

DP Worldhas secured SAR 1.28 bn in project financing for developments and upgrades at the south container terminal at Jeddah Islamic Port, according to a press release from UK-based law firm White & Case which is advising DP World on the transaction. Funds for the project will be sourced from Saudi Awwal Bank, formerly Saudi British Bank, and Bahrain’s Gulf International Bank, the statement adds.

What we know: Developments will include deeper berths and improvements to quay walls to allow larger vessels with berths of up to 18 meters to call at the terminal. Plans also include the establishment of a container yard and an engineering workshop for maintaining terminal equipment, the statement said.

Background: DP World was awarded a concession in April 2020 by Saudi Ports Authority (Mawani) to continue managing and operating the south container terminal at Jeddah’s port for a further 30 years, according to a statement released by DP World at a later date. The agreement commits DP World to investing SAR 3 bn towards doubling the terminal’s capacity from 2.5 mn TEUs per annum to 5 mn TEU. The upgrades were planned to take place over four phases and to be completed by 2024. In addition to deeper drafts and upgrades to the quay, the overhaul is also supposed to see technological upgrades, increased automation and digitalisation, and a decarbonization drive, the statement said.

About the terminal: The south container terminal represents DP World’s first terminal concession outside of the UAE. It is part of Jeddah Islamic Port, which handles 59% of KSA’s imports, according to White & Case’s statement.

Flynas, Eve Mobility to bring eVTOLs to KSA in 2026

Flynas, Eve Mobility set to unroll eVTOLs in Riyadh, Jeddah in 2026:Budget airliner Flynas signed a memorandum of understanding (MoU) with Brazilian electric aircraft maker Eve Air Mobility to explore the possibilities of deploying electrical vertical takeoff and landing (eVTOL) aircraft in the kingdom, according to a statement last week. They will explore the possibility of kickstarting eVTOL operations in Riyadh and Jeddah in 2026, according to the statement.

What are eVTOLs again? These drone-like aircraft use electric propulsion and large omnidirectional fans to allow them to takeoff vertically, making them energy efficient, quiet, environmentally friendly, and eventually pilotless. Beyond their use as air taxis, the vehicles are expected to be able to operate on an inter-city basis and even be used for cargo shipping.

Eve wants to be a pioneer in the sector: Eve Air Mobility signed letters of intent during the Paris Air Show in June to sell 150 of its eVTOLS to Nordic Aviation, Wideroe Zero, and Voar Aviation.

REMEMBER- eVTOLs have been gaining steam in the kingdom: In June, Neom and German flying taxi maker Volocopter said they have successfully tested the kingdom’s first electric air taxi.The flight test campaign of the electric vertical take-off and landing aircraft (eVTOL) ran for a week after 18 months of collaboration between Neom, Saudi Arabia’s General Authority of Civil Aviation, and Volocopter to implement an electric urban air mobility (UAM) ecosystem and testbed at Neom. The testing came months after Neom said it was investing USD 175 mn in Volocopter last year as part of a plan to roll out an advanced air mobility industry in the kingdom.

IN OTHER FLYNAS NEWS-Flynas has launched a new operations base at Prince Mohammed Bin Abdulaziz International Airport in Madinah, and inaugurated six new destinations, including Dubai, Ankara, Amman and Istanbul, according to a statement. The airline also launched its first direct flight between Jeddah and Brussels, it announced in a statement earlier this week. The budget airliner is set to operate three weekly flights to the destination, it added.

Iraq imposes new tariffs on certain goods + tweaks clearance procedures

Iraq doubles down on import controls + tariffs: Iraq’s Commission of Border Crossing Points has published new guidelines for tariffs on cargo containers, goods, and gold entering the country, according to a statement. The changes come in accordance with a new prime minister decree as Iraq’s government looks to tighten controls on imports and money transfers and boost government revenues, Commission head General Omar Al Waely said.

The country imposed new tariffs: Tarrifs for 20-foot containers are now IQD 2 mn, while charges for 40-foot containers have been set at IQD 3 mn. Products shipped outside of containers are subject to previously approved tariff schemes. Added duties on cigarettes and tobacco were set to 20%, with their base tariff standing at 10%.

Tighter checks and new assaying fees and customs for gold imports: The country imposed assaying fees — IQD 50k per kilogram — for raw gold, gold bullion, and worked gold, while customs fees are IQD 100k per kilogram for raw gold and gold bullion, and 250k per kilogram for worked gold, the statement said.Imports of gold will also only be permitted through airports, with an additional requirement for importers to be registered companies that are permitted to make international transfers, it added. Other changes include a requirement for assaying and branding by Iraq’s Central Organization for Standardization and Quality controls.

Clearance operations also saw changes: Import licenses have been suspended, the statement said. The General Authority for Customs is also now obliged to accept certificates of origin and invoices from chambers of commerce that utilize QR barcodes under the national initiative to digitize authenticity checks.

One month grace period to abide by requirements on the origin of clearance payments: Phone, cigarette, and automobile importers will have to show that the SWIFT code for clearance payments are consistent with the codes on the goods they import, and to provide additional information regarding the legitimacy of funding if clearances are paid by an external account. Importers of the three categories mentioned have a one month grace period to tow the line, after which they could face money charges under money laundering and customs laws, the commission warned.

Everything that went down with regional countries at the IMO assembly

Qatar, KSA, Egypt + Morocco get seats at the IMO for the next year: Qatar, Saudi Arabia, the UAE, Egypt and Morocco were reelected to the IMO Council for the 2024-2024 biennium, according to several statements. statement.

Qatar’s Al Sulaiti is on a roll at the IMO Assembly: Qatari Transport Minister Jassim Al Sulaiti met with several of his counterparts at the International Maritime Organization (IMO) assembly in London to discuss cooperation in transport, maritime, ports, and more.

#1- Qatar x Saudi: Al Sulaiti met with Saudi Transport and Logistic Services Minister Saleh Bin Nasser Al Jasser to discuss bilateral cooperation in transport and logistics, according to a statement.

#2- Qatar x Egypt: He also met with Egypt’s Transport Minister Kamel Al Wazir to discuss cooperation in transportation and ports. They also discussed global developments and technologies to help enhance marine environment protection and maritime navigation safety and security, according to a statement.

#3- Qatar x Nauru: Al Sulaiti also met with Nauru Foreign Affairs Deputy Minister and Ports Minister Russ Kun to discuss cooperation in maritime navigation services and ports, according to a statement.

#4- Qatar x Belize + Cyprus: Qatar’s Transport Minister Jassim Al-Sulaiti met with Belize’s Public Utilities Energy, Logistics, and E-governance Minister Michel Chebat and Cyprus’ Shipping Deputy Minister Marina Hadjimanolis on the sidelines of the IMO Assembly to discuss enhancing cooperation on maritime navigation and ports, according to a statement.

ALSO FROM THE IMO-Bahrain’s Transport and Telecommunications Minister, Mohammed bin Thamer Al Kaabi, also met Secretary-General of the IMO, Kitack Lim, to discuss areas of cooperation in fields of maritime safety, marine environment and maritime navigation, according to a statement.

Jordan and China have inked an MoU for the joint promotion of the Belt and RoadInitiative (BRI), according to a statement from the Chinese embassy in Jordan. The MoU, signed by Chinese Ambassador Chen Chuandong and Jordan’s Planning and International Cooperation Minister Zeina Toukan, will strengthen bilateral cooperation in policy integration, infrastructure, trade, and financial integration, according to the statement.

ALSO WORTH KNOWING-

Saudi Transport and Logistics Minister Saleh bin Nasser Jasser and Philippines Transportation Secretary Jaime Bautista have signed an MoU to mutually recognise their seafarer certificates. (Statement)
Al Jasser also met with the International Civil Aviation Organization PresidentSalvatore Sciacchitano to discuss expanding cooperation in a variety of areas,including civil aviation. (Statement)

Saudi Arabia, Brazil discuss logistics ties + ink energy MoU

KSA, Brazil talk boosting logistics ties: Saudi Arabia and Brazil held a roundtable last week to discuss expanding investment partnerships in various fields, including logistics services, energy, renewable energy, mining, agriculture and petrochemicals, SPA reports.

Background:Finance, transport, logistics, and the automotive sector were discussed as potential areas of collaboration during the KSA-Brazil Investment Forum earlier this year. Saudi Arabia expressed hopes that the two countries will become “top-five investors in each other’s economy.” Saudi exports to Brazil reached USD 1.9 bn between January and July, while imports hit USD 1.8 bn, more than any other country in the region, according to Zawya.

The two countries inked an energy MoU: Saudi Energy Minister Abdulaziz bin Salman and Brazilian Mining and Energy Minister Alexandre Silveira inked an energy MoU during the visit, according to a statement.

Shipping giants make their decarbonization demands at COP28

Global shipping executives call on IMO to step up green transition: CEOs of global shipping lines Maersk, MSC, CMA CGM, Hapag-Llyod, and RoRo carrier Wallenius have issued a joint declaration to global regulator, the International Maritime Organization (IMO), to hasten efforts to decarbonize the shipping industry, according to a Maersk press release. The statement, which comes on the sidelines of COP28, puts forward four regulatory “cornerstones” to advance the green transition and meet the IMO’s emissions reductions targets for 2030, 2040, and net-zero by 2050, the statement said.

The details: The statement calls for an “end date” for newbuild vessels that are powered solely by fossil fuels. It also calls for a clear greenhouse gas (GHG) “Intensity Standard timeline” to boost investments in new ships and the energy infrastructure to effect the green transition, as well as a payment structure that distributes the green fuel premium to make it more competitive.

They also argue that GHG regulatory compliance should be measured in terms of the performance of a group of vessels, rather than individual vessels, and that regulation on fuels should follow a well-to-wake approach that tracks a fuel’s lifecycle to mitigate investor risk.

Green hydrogen corridor via Oman? + ONE kicks off Egypt-Lebanon-Turkey service. PLUS: More shipping, aviation, rail and e-commerce news

SHIPPING + MARITIME-

Hydrom inks JSA with Port of Amsterdam + Zenith Energy Terminals + GasLog for green hydrogen corridor:Energy Development Oman -owned Hydrogen Oman (Hydrom) has inked a joint study agreement (JSA) with Dutch port operator Port of Amsterdam, US-based liquid storage terminal developer Zenith Energy Terminals, and UK-based LNG carrier GasLog for the development of a liquid hydrogen corridor connecting Oman to markets in Europe according to a statement. The agreement is a world first and highlights Oman’s aspiration to become a green hydrogen hub.

SCZone connects with international firms on the sidelines of COP28:Suez Canal Economic Zone (SCZone) Chairman Walid Gamal El Din met with representatives of Riyadh-based energy producer Acwa Power, Danish fund manager AP Moller Capital, and German pump manufacturer Wilo on the sidelines of COP28, according to a statement. Talks with Acwa Power representatives centered around the activation of an MoU they had previously inked, while talks with board member at Wilo George Webe focused on the importance of water pumps to projects at the freezone.

He also met with AP Moller Capital’s managing partner and executive director, Kim Fejfer, to discuss financing green fuel projects.

ONE kicks off Egypt Lebanon Turkey Service: Shipping line Ocean Network Express (ONE) has announced a new week-long Egypt Lebanon Turkey route (ELT), which will commence on 6 January 2024, according to a statement. The weekly service will offer customers a direct connection between Damietta, Egypt, Beirut, Lebanon, and Iskenderun, Turkey.

AVIATION-

Enoc + Neste ink MoU for SAF Initiative in Dubai + MENA: Global energy group Enoc has inked an MoU with sustainable aviation fuel (SAF) producer Neste to explore the possible supply and purchase of SAF regionally in the coming years, according to a press release. ENOC aims to supply blended SAF across its entire network by 2030 to reduce its carbon emissions by 80%, according to the release.

Iraqi airline Fly Baghdad banned from operating in EU: The EU’s Aviation Safety Agency has banned Fly Baghdad from operating in EU airspace over its failure to “meet international safety standards,” a statement said, without providing further details.

REMEMBER-Iraqi Airways has also been banned from operating in EU airspace, but it gets around this restriction with flights operated by Turkey-based Tailwind Airlines, though the details of the workaround are not clear, according to SimpleFlying.

Qatar Airways has increased services to several destinations during the peak winter period, according to a statement. Qatar Airways is adding between three to four new flights for each of its services from Hamad International Airport, to Amsterdam, Bangkok, Barcelona, Belgrade, and Miami. The new flight services will start between 15 December and 13 January depending on location and route, the statement adds. Qatar Airways did not say if the additional flight routes will continue following the holiday season.

RAIL-

Iran + Turkey look to transport 1 mn tons of rail freight: Tehran and Ankara have targeted the transfer of 1 mn tons of rail freight between them over the upcoming Iranian calendar year, which begins on 20 March 2024, head of state-owned Railways of the Islamic Republic of Iran and Deputy Roads Minister Miad Salehi told Mehr. Railway executives from both countries have agreed to the exchange of 200 railway cars along the Razi border crossing, according to Mehr. Turkish railway infrastructure will also undergo maintenance, and look into potential solutions d to problems caused by low water levels at Turkey’s lake Van, Mehr said.

Kazakhstan and Turkmenistan have agreed to develop a transport corridor from China to Europe via China, Kazakhstan,Turkmenistan, and Iran, Astana Times reports, citing the Kazakh Transport Ministry press service. Kazakhstan and Turkmenistan inked a protocol and an MoU on transport connectivity that expands cooperation in rail and sea transport, the outlet reports. The move aims to increase traffic volumes, create favorable tariff conditions, and harmonize infrastructure development.

This comes following the 12th meeting of Transport Ministers of the Economic Cooperation Organization (ECO) in Tashkent last month, where the transport ministers and representatives of the ECO inked an agreement to establish a new transport corridor from China to Europe via Iran, Turkey, Turkmenistan, and Uzbekistan. The agreement involves the unification of tariffs, transport procedures, and border processes.

E-COMMERCE-

KSA’s Cenomi Group + Turkey’s Trendyol to operate e-market in GCC: KSA’s retail and lifestyle ecosystem Cenomi Group has partnered with online fashion and lifestyle marketplace Trendyol to launch an e-commerce site to serve the GCC region, according to a statement. Trendyol’s existing platform will be rebranded in the coming months to expand the products offered. The joint venture aims to have the platform achieve 15 mn annual orders in 2024.

ALSO WORTH KNOWING-

DP World has joined the First Movers Coalition to decarbonize shipping, setting a target for 5% of its marine power to come from hybrid engines and zero-emission fuels by 2030. (Statement)
Morocco will provide subsidies for 2.5 mn metric tons of wheatimports from 1 January to 30 April 2024. (Reuters)
Ethiopian Airlines is looking to expand its cargo flight network with the addition of a new freighter route to Casablanca, Morocco. (Ethiopian Monitor)

Calendar

DECEMBER

3-7 December (Sunday-Thursday): The International Conference on Air Services Negotiations (ICAN) 2023, Hilton Riyadh Hotel and Residences, Saudi Arabia.

4-6 December (Monday-Wednesday): ACE 23 Air Cargo Conference, Yas Island Hotel, Abu Dhabi, UAE.

4-6 December (Monday-Wednesday): International Traffic Safety Forum and Exhibition, Sheraton Dammam, Saudi Arabia.

4-7 December (Monday-Thursday): Eurasian Economic Union (EAEU) exhibition, Tehran Permanent International Fairgrounds, Tehran, Iran.

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

12-14 December (Tuesday-Thursday): Food Africa Cairo 2023, Egypt International Exhibition Center, Cairo, Egypt.

18-20 December (Monday-Wednesday): International Exhibition of Transportation, Logistics, and Related Industries (Iran Trans Expo 2023), Imam Khomeini Grand Prayer Campus (Mossala), Tehran, Iran.

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.

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.

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.

OCTOBER 2024

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

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.

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

2027

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

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