Pakistan + Dubai ink investment framework agreements on rail and a new economic zone

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TODAY: Pakistan + Dubai ink investment framework agreements on rail and a new economic zone

Good morning, nice people. We apologize for the short delay reaching you this morning. There’s significant news emerging from Davos as DP World, acting on behalf of the Dubai government, makes big moves in Pakistan. Dubai has signed two investment framework agreements with Pakistan to cooperate on railways, economic zones and infrastructure.

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

PSA-

Abu Dhabi - Al Ain Road will see a partial road closure from Friday 19 January to Sunday 21 January, Abu Dhabi’s Integrated Transport Center said on X.

WATCH THIS SPACE-

#1- Iran’s Rasht-Caspian Railway Project is set to be inaugurated within two months, Mehr News Agency reports. The 37 km railway is located in Gilan Province and will connect the Persian Gulf to the Caspian Sea, boosting connectivity and trade links between the two regions. It is also expected to promote transit trade in northern Iran and contribute to Anzali Freezone, while also contributing to the larger International North-South Transport Corridor (INSTC).

#2- Marine biofuel demand at Singapore — the world’s largest bunkering hub — is likely to double to nearly 1 mn metric tons by 2025, Reuters reports, citing a senior TotalEnergies executive. Several shipping firms are testing out marine biofuel as an eco-friendly substitute for traditional fuel oil to help lower their carbon emissions. Bio-blended marine fuel sales at Singapore increased more than threefold last year to top 500k tons, the newswire adds citing data from Singapore's port authority.

#3- DP World and MUA labor conflict continues: The standoff between UAE-based port operator DP World and the Maritime Union of Australia (MUA) is ongoing as industrial action continues at the port operator’s facilities amid a dispute over pay, ABC News reported on Tuesday. Australia’s Fair Work Commission (FWC), a government tribunal that arbitrates industrial disputes, told workers that their work stoppages could continue at DP World’s Sydney, Brisbane, and Fremantle terminals. The MUA however reportedly withdrew some work bans, and backed down from plans for eight-hour delays and bans on certain shipping lines, but will proceed with lower level stoppages.

The labor dispute has been ongoing for months, costing USD bns: Strikes have been ongoing since October 2023, with DP World saying in a letter to customers earlier this month that it would no longer tolerate work stoppages and would penalize participants. Disruptions have cost the company some USD 84 mn a week, or USD 1.34 bn up until earlier this month.

DATA POINTS-

Saudi Port Authority’s (Mawani) ports saw a 12% y-o-y in container handling to 8.4 mn TEU in 2023, according to a statement. KSA’s overall ports recorded a 9.01% increase over the same period to 11.4 mn TEUs handled. Mawani’s ports saw a 16% y-o-y increase in exported containers to 2.6 mn TEU, while imported containers saw a 12.7% boost to 2.6 mn TEUs and transshipments bumped 9% to 3.2 mn TEUs, the statement said.

Iraq’s Umm Qasr Port witnessed an increase in containers handled to 1.4 mn TEUin 2023, up from 1.1 mn TEU the previous year, according to a statement. The total volume of cargo unloaded also experienced a rise to 12.4 mn tons of goods from 9.4k tons. Additionally, the number of ships docked spiked to 1.12k from 925 vessels in 2022.

ACT breaks record: Jordan’s Aqaba Container Terminal (ACT) recorded its highest handling volume ever with some 899k TEUs processed in 2023, ACT said on X earlier this week. The bump in figures is attributed to improvements in services and adherence to global safety and security standards, the statement said.

CIRCLE YOUR CALENDAR-

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.

The UAE will host the Middle East Bunkering Convention from Monday, 5 February through to Wednesday, 7 February in Dubai. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February in Dubai. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

The UAE will host The Electric Vehicle Innovation Summitfrom Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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

Pakistan and Dubai ink framework agreements to cooperate on rail and a new economic zone

The government of Dubai has signed two investment framework agreements with Pakistan to cooperate on railways, economic zones and infrastructure, according to a statement shared on X by Chairman of Pakistan Railways Syed Mazhar Ali Shah.

The details: The agreements cover the development of a dedicated freight corridor, multi-modal logistics park, and freight terminals, according to the statement. Infrastructure improvement at Pakistan’s Qasim International Container Terminal will be carried out and an economic zone near the terminal will be developed at Port Qasim.

Who is doing what: UAE-based port operator DP World will serve as a developer on behalf of the Dubai government and Pakistan Railways and Port Qasim Authority will work on behalf of the Pakistan government, the statement notes.

More about the freight corridor: A 50 km rail-based dedicated freight corridor will run from Karachi Port to the Pipri Marshalling Yard, passing through Karachi, in a bid to improve efficiency, transport times and reduce the overall cost of logistics, the statement notes.

And the new economic zone: DP World will develop a new economic zone at Port Qasim in a bid to attract more FX investments, the statement notes. As part of the agreement, DP World will also carry out dredging to improve Qasim International Container Terminal’s infrastructure.

The UAE ♥️ Pakistan: UAE and Pakistan inked a slew of MoUs for investments in logistics and port operations last November.

IN OTHER DP WORLD NEWS- The company inked a MoU with Pakistani VC firm JWHoldings to develop trade and logistics infrastructure in Pakistan, Pakistan’s Industries and Production Minister Gohar Ejaz said on X. No details regarding the investment ticket or a project timeline were disclosed.

Details: The pair will collaborate to develop and operate special economic zones, logistics parks, and other infrastructure. The move looks to improve logistics and industrial competitiveness, attract investments, and create jobs, Ejaz said.

Japanese shipping giants + Shell join list of those suspending operations in the Red Sea

British energy giant Shell has suspended its shipments via the Red Sea indefinitely, as recent US-led strikes against the Houthi stoked tensions in the region, Reuters writes, citing Wall Street Journal reporting. The oil major paused crossings last week, citing a concern that an attack could trigger an oil spill and endanger crew.

Tankers are shunning the Red Sea en masse: Six additional oil tankers were observed turning away from the Red Sea on Monday, bringing to 15 the total number of tankers to avoid the region in the aftermath of the US-led strikes, Reuters reported separately earlier this week. Tanker vessel owners Torm, Hafnia, and Stena Bulk had announced that they would avoid the Bab El Mandeb Strait this Friday, with Euronav keeping in place a temporary halt, the newswire said.

Japan’s “Big Three” carriers officially pull out of Red Sea: Following Nippon Yusen instructing its vessels on the way to the region to pause on Tuesday, Japanese shipping giants Mitsui OSK Lines and Kawasaki Kisen Kaisha joined Yusen in confirming that they were suspending Red Sea transits, the NHK World reports.

Russian state owned tanker group Sovcomflot is also considering alternative routes for its fleet as it monitors developments in the Red Sea, the company’s press told TASS on Tuesday. “It is currently impossible to predict whether the company will continue to work there permanently,” the company said.

Iran is denying claims that it is helping the Houthis orchestrate their attacks against international shipping in the Red Sea, Iran’s foreign minister Amir-Abdollahian told CNBC on Tuesday at the World Economic Forum in Davos. The Houthis are acting on their own accord and “are not receiving any orders or instructions from us,” Iran’s top diplomat said. “Maritime security is of paramount importance to us, because we export oil,” he added, explaining that threats to shipping in the region run counter to Iran’s interests.

The EU could launch its own naval mission by next month: The EU’s Political and Security Committee bloc has given its initial backing for the move, which would be coordinated with allies, Reuters reports, citing statements by European diplomats on Tuesday. The mission is set to kick off by 19 February but could see its timeline fast tracked, diplomats said. This comes in parallel to the US-led naval coalition — dubbed Operation Prosperity Guardian — which has failed to gather European support due to their reluctance to operate under US command, the newswire said.

The UK has set out a new strategy to help businesses navigate supply chain disruptions,The Financial Times reports. The strategy outlines methods of government intervention to help industries retain access to critical products, including medicines, minerals, semiconductors, as geopolitical tensions wreak havoc on trade routes. A new critical imports council will help businesses zero-in on risks to sensitive imports and put together workarounds. Another government program will also work to remove import barriers and help companies find new supplies. Nevertheless, the onus of responsibility for managing supply chains remains with industry, UK Business Minister Nusrat Ghani is cited as saying.

Bahrain’s BAS invests BHD 4.5 mn to upgrade its GSE fleet

Bahrain Airport Services (BAS) will invest BHD 4.5 mn (USD 12 mn) to revamp its ground service equipment (GSE) fleet within three years, Bahrain News Agency reports. The new equipment is slated to boost BAS’ operations and sustainability and improve passenger and cargo services at Bahrain International Airport (BIA).

Part of the process is complete: The GSE fleet upgrade is taking place over two phases and the first phase was finalized in 2023, BNA notes. Some 1.4 k pieces of equipment have undergone evaluation and BAS awarded bids for some 220 new ground support equipment, with some already coming into operation and the rest slated for introduction in early 2024. Procured equipment includes a lower deck loader, electric pushback tugs, catering high loaders, conveyor belts, passenger buses, forklifts, golf carts, baggage carts, and dollies.

More to come: The second phase of the equipment revamp will begin in mid-2024 and involve the replacement of an additional 180 pieces of equipment.

A boost for logistics: BAS handles 104k tons of freight per year from a facility spanning 19k square meters. The airport’s export services cater to general cargo, live animals, diplomatic mail and vehicles.

What they said: The investment falls in line with Bahrain International Airport’s vision to become an aviation and logistics hub to reduce global aviation’s carbon footprint, Chairman of Bahrain Airport Services Nabeel Khalid Kanoo said.

Menzies Aviation partners with SGA Angola on cargo handling

Menzies Aviation enters Angola: Agility Logistics subsidiary Menzies Aviation has formed a JV dubbed Menzies Angola with state-owned airport operator Sociedade Gestora de Aeroportos (SGA) to deliver cargo at Lunada International Airport (LAD) in Angola, according to a statement. The JV will also handle lounge services, the statement notes.

Details: Menzies Angola will handle over 30k tonnes of cargo annually, servicing a wide range of airlines at LAD including Air France, Portuguese TAP Air, Taag-Angola Airlines, and Ethiopian Airlines. The outfit will also manage the airport’s VIP lounge services, serving over 45k passengers annually.

Hapag-Lloyd and Maersk join forces to optimize schedule reliability

Hapag-Lloydand Maersk are entering into a new long-term operationalcollaboration to establish a maritime network with schedule reliability above 90%, according to a statement. The initiative, dubbed Gemini Cooperation, will kick off in February 2025 and operate across seven trades using some 290 vessels with a total capacity of 3.4 mn containers. The collaboration aims to enhance service quality and access to well-connected ocean hubs, as well as reduce transit times. Both companies are set to plan their transition from their current alliances in 2024.

Airbus delivered 735 commercial aircrafts in 2023rising steeply above industry competitor Boeing's 480 deliveries, according to a statement. The rate of delivery solidifies Airbus’s title as the world’s biggest plane manufacturer for the fifth year straight. “What used to be a duopoly has become two-thirds Airbus, one-third Boeing,” said aviation consulting firm AeroDynamic Advisory Managing Director Richard Aboulafia to the The New York Times.

Background:In early January, a near disastrous incident involving Boeing’s 737 Max 9 jets resulted in the grounding of 170 planes grounded by the US FAA and the launch of an extensive safety investigation. Boeing’s shares have fallen around 20% since then, and company representatives are scrambling to minimize the fallout, according to the NY Times. The scale of the impact on Boeing’s incoming 2024 orders is not yet clear.

DP World cuts diesel usage in London Gateway, The Arab Trade Line is set to become Jordan’s permanent gateway to the Mediterranean,

DECARBONIZATION-

DP World cuts diesel from London Gateway operations: UAE-based DP World’s UK logistics hub is now diesel free after switching diesel-engine equipment and installations to hydrogenated vegetable oil at its London Gateway, according to a statement. The move is expected to decrease carbon emissions by 26% by the end of 2024.

TRADE-

The Arab Trade Line is primed to serve as Jordan’s permanent link to the Mediterranean Sea, CNN reports, citing comments made by General Manager of the Arab Bridge Shipping Company Adnan Al Abadla. The route — which became active almost two weeks ago and links the Jordanian port of Aqaba and Egypt’s Nuweiba — will offer an alternative for Jordanian exports to the United States and Europe. The Aqaba-Nuweiba line is poised to be in high demand due to its cost-effectiveness, speedy procedures, and 18-day average arrival time.

The line is expected to see competition from nearby ports as well as coordination issues with shipping lines operating in Egyptian ports, Al Abadla explained. The ongoing Red Sea crisis has also heightened costs, delays, and disruptions in Aqaba's shipping traffic.

OTHER STORIES WORTH KNOWING THIS MORNING-

Qatar adds a third Indonesian location: Qatar Airways has launched three flights a week from Hamad International Airport Doha to Kualanamu International Airport in Medan, Indonesia. (Statement)

Calendar

JANUARY

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

FEBRUARY

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

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

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

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

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

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

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

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

28 February (Wednesday): Industrial and Building Technology event, Dubai, UAE.

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

20-22 May (Monday-Wednesday): The Electric Vehicle Innovation Summit (EVIS), Abu Dhabi, 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.

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London.

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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