UAE’s Al Dar earmarks AED 1 bn in investments to boost logistics assets

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TODAY: Al Dar goes big on logistics infrastructure investment

Good morning, friends. We have a packed issue this morning with stories from around the region and beyond, but first…

A quick programming note: Enterprise Logistics will be taking a publication holiday tomorrow and be back in your inboxes at our regularly scheduled time on Monday morning.

THE BIG LOGISTICS STORY- UAE-based real estate developer Al Dar properties will invest some AED 1 bn to boost its logistics infrastructure in the UAE and gain a foothold in Dubai.

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

WATCH THIS SPACE-

#1- Oman + India CEPA talks continue next week: Oman and India will hold the next round of negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA) next week on 16 January and plan to finalize the agreement later this month, The Economic Times reports. The discussions will cover the implementation of duty concessions on petrochemical products, including polypropylene and polyethylene, Outlook India reports, citing a government official. Private and public Indian players have opposed the concession, stating that Oman’s existing subsidies in the industry would place Omani firms at an advantage.

In the making: Two rounds of in-person discussions on the CEPA have already been held, the Economic Times writes. Oman is India’s third largest export destination in the GCC, with bilateral trade valued at USD 12.3 bn in 2022-2023.

#2- Iraq’s Grand Al-Faw Port expansion plans take a step: A delegation from the General Company for Ports of Iraq met with Third Harbor Consultant Company, a division of state owned contractor China Communications Construction Company, according to a statement. The visit saw a technical proposal for the establishment of Container Terminal No. (2) that is planned for inclusion in the expansion of Grand Al-Faw Port, the statement said.

#3- Hyundai Rotem competes for Moroccan railway project: Morocco’s National Office of Railways (ONCF) has received its latest offer for its railway project from South Korean rail manufacturing company Hyundai Rotem, Kech24 reports. The project includes the tender to acquire 168 trains valued at MAD 16 mn. The move aims to meet growing demand for train travel in the country and to modernize part of the rail fleet.

Others have thrown their hats in the ring: Several international companies have already submitted offers including Spanish rolling stock manufacturer CAF, German sustainable transport solutions provider Siemens Mobility, Chinese rail manufacturer CRRC, Japanese transport solutions provider Hitachi Rail, and Spanish rolling stock manufacturer Talgo.

MARKET WATCH-

Oil rallied USD 1 on Tuesday as Middle East tensions and a supply outage in Libya buoyed prices, offsetting downward pressure from flagging demand and larger OPEC supplies, Reuters reports. Brent crude rose 1.75% to USD 77.45 per barrel, while West Texas Intermediate crude futures bumped up 1.82% to USD 72.06 per barrel. The latest surge has seen oil rebound from a 3% to 4% loss on Monday following KSA’s move to slash official selling prices (OSP).

DATA POINT-

The Amman Chamber of Industry (ACI) recorded a total export value of JOD 7.2 bn for 2023, down 5% y-o-y, Petra reports. Arab countries took the lion's share of the chamber’s exports at some JOD 3.3 bn. India, the US, KSA, and Iraq accounted for over half of the chamber’s exports at JOD 4 bn. Exports to Iraq surged 22% y-o-y to JOD 875 mn, while KSA exports saw a 6% yearly bump to JOD 808 mn, and US exports rose 18% during the period to JOD 1.2 bn. Meanwhile Indian exports declined 16% y-o-y to JOD 1.2 bn, the report said.

CIRCLE YOUR CALENDAR-

KSA will host the Roshn Supply Chain Forum on Thursday, 11 January, in Riyadh. The event will host a series of discussions centering around supply chain growth with applications to real estate by bringing together consultants, contractors, manufacturers and other supply chain professionals.

The UAE will host Transport Middle East from Tuesday, 23 January through to Thursday, 25 January in Abu Dhabi. The event will see more than 30 speakers come together to tackle the current challenges in global transportation and logistics.

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

UAE’s Al Dar earmarks AED 1 bn in investments to boost logistics assets

UAE-based real estate developer Al Dar properties will invest some AED 1 bn to boost its logistics infrastructure in the UAE and gain a foothold in Dubai, according to a disclosure (pdf) on the ADX. The investment will see the company acquire new operational storage and warehousing assets and develop ready-to-lease facilities to meet high demand for premium warehousing in the UAE, the disclosure notes. Al Dar did not disclose what proportion of the investment will go towards acquisitions versus its development pipeline.

More about the acquisitions: The investment includes an acquisition of Al Dar’s first logistics zone in Dubai. The developer has acquired 7 Central Logistics Hub from steel supplier Seven Seas Steel Industries and an adjacent plot in the Dubai Investment Park (DIP). Once developed, the gross leasable area at the hub will be doubled to 38k sqm.

New developments: Aldar will collaborate with other real estate firms to set up single-tenant facilities and logistics parks in Dubai, with a total gross leasable area of 200k sqm. It will also add 33k sqm of GLA to its 132 sqm logistics facility in Abu Dhabi, the Abu Dhabi Business Hub, the disclosure notes. Etihad, Twofour54 and Mubadala are among Aldar’s fully leased out ADBH tenants.

Al Dar first stepped into the logistics scene in 2022: The UAE-based real estate developer branched the logistics sector with a majority acquisition of ADBH in 2022. The 70% stake acquisition saw ADBH valued at AED 500 mn at the time.

About Aldar: Aldar Properties is a leading UAE real estate developer, investor, and manager with an operating model centered around two core businesses: Aldar Development and Aldar Investment. The company is listed on Abu Dhabi Securities Exchange, the statement said.

Hapag-Lloyd + Maersk deny reported pact with Iran-backed Houthi group

Global shipping giants Hapag-Lloyd and Maersk brushed off claims of a safe passage agreement for vessels with the Houthis, Bloomberg reports. Danish publication ShippingWatch published a report claiming that shipowners had met with the Houthis and reached an agreement, without naming the carriers involved. The report saw Maersk, Hapag Lloyd, and other shipping companies’ share prices fall in recent trading, the outlet said.

ON THE DEFENSE FRONT- Sri Lanka is gearing up to join the US-led naval coalition countering Houthi attacks in the Red Sea, the Washington Post reports. The decision led to criticisms from opposition leaders who cited economic troubles at home, while Sri Lanka’s defense minister has said that the deployment would incur no costs as the country already has vessels patrolling the Indian Ocean, the news outlet said.

Qatar is against military action targeting the Houthis: Qatar has decried Houthi-led attacks against shipping in the Red Sea, Doha News reported. The country’s “position is very clear on protecting the freedom of navigation,” Qatar’s Foreign Minister Mohammed bin Abdulrahman Al Thani said in a joint presser with US Secretary of State Antony Blinken in Doha, Qatar. However, when asked whether Qatar supported military action against the Houthis, Qatar’s top diplomat affirmed his country’s stance against such a step, “we never see a military action as a resolution,” he said.

ATTACKS CONTINUE- Early January saw two Israeli-linked carriers attacked in the Indian Ocean: The first vessel, Liberian-flagged Chem Cilicon, was struck northwest of the Maldives, and the second, Stern Company-owned Pacific Gold, was hit near India’s Cochin Port, IRNA reported, citing Lebanese media. Both vessels were hauling oil bound for Israel, the outlet said.

Houthis propose that vessels disavow links with Israel in exchange for safe passage: Any ship transiting the Red Sea while displaying the message “We have no affiliation with Israel” will not be attacked, Houthi leader Mohamed Al Houthi said.

Red Sea tanker traffic is still going strong: Oil and fuel tanker traffic in the Red Sea was stable in December, Reuters reports, citing ship tracking data. The Red Sea and Gulf of Aden saw an average of 76 oil and fuel tankers a day in December, just two vessels below November’s numbers, the newswire reports, citing data from ship tracker MariTrace. The unexpectedly high number comes contrary to predictions, "We haven't really seen the interruption to tanker traffic that everyone was expecting," shipping analyst at Lloyd's List Michelle Wiese said.

MARKET REAX- Spot container shipping rates surge: Short-term container shipping rates between Asia, Europe, and the US have surged on the back of reduced capacity due to Red Sea disruptions, Bloomberg reported citing Freightos data. Spot rates for 40-foot containers shipped from Asia to Northern Europe have exceeded USD 4k, 173% higher than they were before vessel rerouting started to take form in December. Rates for Asia to Mediterranean shipments hit USD 5.175k, with some carriers announcing USD 6k rates for journeys in mid-January, the outlet said.

Asia-Morocco rates also spiked: Red Sea disruptions have seen Asia to Morocco shipping rates surge 60% to 100%, the North Africa Post reported. Rates for 20-foot containers shipped from Shanghai to Casablanca increased from USD 1.45k to USD 2.8k, the outlet said citing a statement by a shipping industry official.

REMEMBER- Red Sea disruptions have seen shipping volumes in the Suez Canal drop 28% y-o-y for the week ending Sunday.

DP World an operations management contract with Canadian potash exporter Canpotex

UAE-headquartered logistics company DP World inked a five-year management contract with Canpotexfor the handling of potash exports, according to a statement. The financial details of the agreement were not disclosed.

What we know: Under the agreement, DP World will oversee potash handling at Canpotex's Saint John terminal in New Brunswick, including handling from railcars, storage, inventory in the warehouse, and loading ships bound for international markets.

About Canpotex: Headquartered in Saskatoon, the company is one of the largest global suppliers of potash, delivering its product to over 40 countries through a supply chain encompassing three North American marine terminals, with a fleet of over 8k railcars and self-chartered ship voyages.

Aramex + Odys Aviation to develop UAV cargo solutions for Oman and UAE

Odys Aviation + Aramex partner on cargo operations: US-based hybrid-electric VOTL manufacturer Odys Aviation and Aramex have unveiled a partnership to explore the development of Unmanned Aerial Vehicle (UAV) cargo delivery in the UAE and Oman, according to a statement.The current timeline sees Odys supplying unmanned cargo aircraft to Aramex by 2028, the statement notes..

Details: The agreement sees the pair collaborating to explore autonomous logistics programs and roll out cargo flights leveraging Odys’ aircraft and Aramex’ fleet management resources. The pilot program will employ a smaller aircraft with a 130 lb payload before moving to a larger aircraft capable of carrying up to a one tonne cargo. Aramex will support pilot training and test flight programs while the pair will collaborate to develop a Concept of Operations (CONOPS) to ensure aircraft suitability to local environments. Upon receiving regulatory approval, the pair look to launch commercial operations in the GCC, the statement said.

A boon for sustainability: The aircraft slated for use in the initiative are capable of all-electric propulsion for distances up to 320 km, with a hybrid-electric propulsion range exceeding 1.2k km. Flights utilizing such aircraft will cut carbon emission on pan-GCC flights by up to 76%, while providing zero emissions for shorter haul distances within the UAE and Oman, the statement said.

Mawani’s chairman among Forbes' 2023 list of the most important CEOs + All UAE airlines secured spots among the world's top 20 safest airlines.

Mawani Chairman Omar bin Talal Hariri (LinkedIn) was named as one of Forbes' top Middle East CEOs for 2023, according to a statement. The accolade highlights Hariri’s efforts to develop the Kingdom’s ports.

AND- UAE airlines lead airline rankings: All UAE-based full-fledged and budget airlines have earned spots on Airlineratings.com safety rankings for 2024. Budget carriers Flydubai, Air Arabia, and Wizz Air took spots on the list of top 25 safest budget carriers for the year, while Etihad and Emirates were named on the list of top 25 safest full-fledged airlines for 2024.

KSA and Belarus sign MoU to strengthen trade ties

More trade in the works for Saudi Arabia + Belarus: Acting Secretary of the Federation of Saudi Chambers Walid Al-Arinan met with Belarusian Director of the National Center for Marketing and Price Studies Mikalay Barysevich to sign an MoU to strengthen bilateral trade and investment ties between the two countries, SPA reports. The cooperation will see the exchange of information related to several sectors including trade, investment, and export opportunities to streamline the expansion of Saudi and Belarusian companies in targeted markets. The MoU also mentions plans for joint research, participation in trade fairs, and organizing economic events.

Qatar’s Nakilat boosts its LNG and LPG fleets + Kuwait goes to court against Jazeera Airways

SHIPPING + MARITIME-

Qatar’s Nakilat has made a new order for six new advanced gas vessels from Hyundai Samho Heavy Industries, according to a statement. The order comprises two LNG carriers, each boasting a capacity of 174k cubic meters, and four very large LPG/Ammonia Gas carriers, each with a capacity of 88k cubic meters. The order is scheduled for delivery between 2026 and 2027, and will boost the company’s LNG fleet to 71 ships and its LPG fleet to eight.

UAE adds Cameroon to its blacklist: The UAE has added Cameroon-flagged ships to the list of vessels that are barred from entering Emirati waters unless they have been previously classified by a member of the International Association of Classification Societies or by the Emirati classification society Tasneef, Splash 247 reports. The move comes as the UAE attempts to crack down on shadow tankers — a group of unregistered vessels which circumvent global sanctions. Other states on the UAE’s blacklist include Albania, Belize, North Korea, Sao Tome and Principe, Tonga, Congo, Equatorial Guinea, and Tanzania.

ROADS-

Ashghal’s Doha City Road Improvement Project Phase 1 nears completion: The Public Works Authority of Doha City (Ashghal) has announced that 50% of the work on Waab Lebareg and Rawdat El Thekhriya Streets in Ain Khalid is completed as part of Phase 1 of the Doha City Road Improvement Project, according to a statement. The project aims to improve roads, increase vehicle accommodation capacity, and regulate traffic on Doha’s main streets.

LEGAL-

Kuwait Ports Authority receives compensation: A court has awarded Kuwait Ports Authority over KWD 22 mn in compensations from firms that have committed legal infractions, KUNA reports. The court decision looks to clamp down on practices deemed harmful to the management of public funds and create an environment that is more conducive to foreign investment. Violations committed by companies included operating beyond the expiry of their licenses, the statement said.

Kuwait’s Civil Aviation Authority files KWD 1.1 claim against Jazeera Airways: Kuwait’s Directorate General of Civil Aviation has filed a claim against Kuwaiti low-cost airline and freight service provider Jazeera Airways last week, seeking a payment of KWD 1.1 mn for aircraft parking charges incurred during the Covid-19 pandemic, according to a disclosure (pdf) on Boursa Kuwait. The disclosure says that the claim will have no financial impact on the low-cost carrier as “there are sufficient provisions for the full amount.”

ALSO WORTH KNOWING-

Ethiopian Airlines adds Morocco cargo service: Ethiopian Airlines Cargo and Logistics Services has kicked off freighter services to Casablanca, Morocco. The airline is operating the route using a Boeing 777-200F cargo aircraft with a 100 ton payload capacity. (Statement)
Qatar Airways boosts cargo fleet:Qatar Airways Cargo has added a new Boeing 777F to its fleet, bringing its total inventory of the aircraft to 27. (Statement)
Iraq + Daewoo to partner on port operation training: General Director of the Planning and Follow-up Department of Iraq’s Transport Ministry Abbas Omran Musa met with Korean Daewoo’s assistant director general Ansu Pak to discuss cooperation on training personnel to operate and manage the Grand Al Faw Port. (Statement)

Boeing continues to grapple with the fallout after the Alaska Air incident

Alaska Air finds loose hardware on part of its 737 Max 9s: Alaska Air technicians found some loose hardware in the door plug area on some of its Boeing 737 Max 9 planes, following investigations after an incident, Reuters reports. The findings come on the back of an investigation after an Alaska Air flight was forced to make an emergency landing last Friday due to a panel flying off mid-flight. The US Federal Aviation Administration policy has since called for the grounding of over 170 Boeing 737 Max 9s.

Impact to the cargo industry: Passenger aircrafts — like the Boeing 737 Max 9 — are equipped with dedicated cargo holds to support air freight capacity. This dual use approach leads grounding decisions to potentially increasing rates and reshuffle routes.

Boeing has been in trouble for a while:Boeing’s integrity and reputation have been seriously compromised by recent shortcomings, including issues with the Boeing 737 MAX that surfaced a few years earlier, Chief Analyst at OAG John Grant told CNBC in an interview (watch, runtime: 04:14). Despite commercial aviation being safer than ever before, the “loose hardware” found highlights gross failures in the aircraft maker’s quality assurance checks and oversight over subcontractors, Grant said.

Commercial pressures across the supply chain are placing strain on the aviation industry, with the industry struggling to manage resources to meet delivery dates, Grant said. Boeing cannot realize revenue from a sold aircraft on its books until it is delivered to the airline that ordered it, and this might have pushed the aircraft maker to forgo necessary checks on parts delivered by subcontractors, he added.

Calendar

JANUARY

9-11 January (Tuesday- Thursday): Dubai International Pharma and Technologies Conference and Exhibition, Dubai World Trade Centre, UAE.

11 January (Thursday): ROSHN Supply Chain Forum, Riyadh, KSA.

12-14 (Friday-Sunday): 2024 5th International Conference on Supply Chain Management (ICSCM2024), Singapore.

23-25 January (Tuesday-Thursday): Transport Middle East 2024, Intercontinental Abu Dhabi, UAE.

FEBRUARY

5-7 February (Monday-Wednesday): Middle East Bunkering Convention 2024, DoubleTree Hilton, Dubai, UAE.

6-7 February (Tuesday-Wednesday): The Middle East ProcureTech Summit (ME ProcureTech Summit, Dubai, UAE.

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

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Address Hotel Dubai Mall, UAE.

12-15 February (Monday-Thursday): Future Warehouse & Logistics 2024, Dubai, UAE.

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

22-24 February (Thursday-Saturday): International Freight Forwarders Conference, Hyatt Regency, Dubai, UAE.

26-29 February (Monday-Thursday): WTO's 13th Ministerial Conference (MC13), Abu Dhabi, UAE.

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

MARCH

3-5 March (Sunday-Tuesday): Sustainable Green Blue Infrastructure Conference 2024 (Marlog), Green Plaza Mall, Egypt.

4-8 March (Monday-Friday): Logistics & Transport Management 2024, Dubai, UAE.

5-6 March (Tuesday-Wednesday): ShipTek International Conference & Awards 2024, The Address Dubai, UAE.

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

6 March (Wednesday):The Gulf Ship Finance Forum, Waldorf Astoria Dubai International Financial Centre, UAE.

7 March (Thursday): Truck and Fleet Conference 2024, 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

27 April- 1 May (Saturday-Wednesday): Iran Expo 2024, Tehran International Permanent Fairground, Iran.

29 April- 2 May(Monday-Thursday): GLA Global Logistics Conference, Dubai, UAE.

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

April: Driftx. Abu Dhabi, UAE.

MAY

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

2-4 May(Thursday-Saturday): The International Conference on Logistics Operations Management: smart, sustainable and green logistics (GOL), Marrakesh, Morocco.

3-5 May (Friday-Sunday):2024 IEEE 15th international conference on Logistics and Supply Chain Management, University of Sousse, Tunisia, Tunis.

7-9 May (Tuesday-Thursday): Annual Investment Meeting (AIM) Congress, Abu Dhabi, UAE.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre, UAE.

14-16 May (Tuesday-Thursday): Airport Show, DWTC, Dubai, UAE.

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

JUNE

2-4 June (Sunday-Tuesday):IATA Annual General Meeting (AGM) and World Air Transport Summit, Dubai, UAE.

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

OCTOBER

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

22-24 October (Tuesday-Thursday): Asean Ports and Logistics 2024, Johor, Malaysia.

NOVEMBER

11-14 November (Sunday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

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

DECEMBER

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

20 December (Wednesday): The 5th Iran-Senegal Joint Economic Cooperation Commission, Dakar.

EVENTS WITH NO SET DATE

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.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

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.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

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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UAE’s Al Dar earmarks AED 1 bn in investments to boost logistics assets

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UAE’s Al Dar earmarks AED 1 bn in investments to boost logistics assets

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Qatar’s Nakilat boosts its LNG and LPG fleets + Kuwait goes to court against Jazeera Airways

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