Red Sea tensions continue amid squabbles between China and Israel

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What we're tracking today

TODAY: China and Israel squabble over ports + Gulfnav inks drone agreement for logistics handling

Good morning, friends. It’s a busy morning for the regional logistics sector with a deluge of updates across the sector. We have all the latest on Red Sea tensions and a few notable investment and M&A updates. Let’s dive right in.

PSA-

#1- Al Shiwayb Road in Al Ain is closed until Thursday 28 March, Abu Dhabi’s Integrated Transport Center said on X.

#2- Qatar-based maritime and logistics company Milaha has opened applications for their 2024 to 2026 board of directors, according to a statement. Applications will be accepted until 3pm on Thursday, 1 February.

WATCH THIS SPACE-

#1- Call for Aqaba Container Terminal to incentivize marine routes: A special group tasked with following up on the Red Sea crisis’ impact on Jordanian trade — which includes the Jordan and Amman Chambers of Commerce, the Jordanian Navigation Syndicate, and the Jordanian Logistics Association — has urged Aqaba Container Terminal to provide incentives for marine routes that continue to serve Aqaba Port despite ongoing tensions in the Red Sea, Petra reports. The group also proposed waiving storage fees for shipping providers and owners of empty containers prepared for export. It also sent letters to shipping firms recommending the prioritization of loadings for “key and vital” sectors, including foodstuffs and drugs. Statistics showed that some 19.5 k containers arrived in Aqaba from the beginning of the month until last Thursday, with the total forecasted to reach 22.5 k by the end of the month.

ICYMI—Last week saw the group reveal that container numbers at Aqaba were undergoing recovery, without disclosing figures.

#2- A direct shipping line between the KSA and Iran could be happening:Iran and KSA plan to establish a direct shipping line connecting Dammam with Kangan under efforts to boost bilateral trade ties, Iran’s Mehr news agency reports, citing statements made by local governor Ahmad Mohammadizadeh. Mohammadizadeh said that the shipping line was decided during a recent visit by Iran’s Deputy Foreign Minister for Economic Diplomacy Mehdi Safari to the province as Tehran looks to boost trade volume with its GCC counterparts. No further details were provided on the planned shipping line.

REMEMBER- The two countries have been working to advance ties in the past months since their restoring relations last year.

#3- Iraqi airline Fly Baghdadis suspending all flights from Baghdad International Airport, according to a statement released on Thursday. The suspension is pending investigations regarding accusations leveled against the airline by the US Treasury Department. The company will not be able to refund bookings or book alternative flights due to its inability to access funds in its bank accounts and has called on Iraq’s governments to help travelers booked with the airline find alternative arrangements, the statement said.

ALSO- Iraq has tasked US-based management consulting firmOliver Wyman with the financial and economic analysis of its USD 17 Development Road project,Iraqi News reported last week. The project — which spans 1.2 km — is set to link Grand Faw Port in Iraq’s southern Basra province to Turkey in the north through rail and road infrastructure. The initiative will be split into two phases, with the Iraqi Transport Ministry set to invite bids for an expert consultant to oversee designs. Olivery Wyman has been hired to oversee the project’s economic aspects as engineering works continue, the report said.

#4- UAE-based energy giant Adnocis set to order LNG carrier newbuilds for its upcoming Ruwais terminal, LNG Prime reported on Thursday, citing people it says have knowledge of the matter. The company has reportedly invited bids from Chinese and South Korean shipyards for six firm and four optional standard-sized LNG carriers. The vessels — equipped with advanced technologies — are expected to operate at the company’s second LNG terminal in Al Ruwais.

#5- Government mandates on SAF is “not the way to do it,”Emirates’ President Tim Clark told Sky News Australia in an interview yesterday (watch: runtime: 4:11). Governments have “gone too far” to push airlines to use sustainable aviation fuels (SAF) by mandating requirements and fines which can backfire by pushing up costs, Clark stressed. An airline’s ability to use SAF is capped by limited production capacity due to a lack of investments, Clark added. Progress on SAF production is dependent on “science, the scalability and the investment” from governments and the private sector, he added.

REMEMBER-The UAE cabinet approved the national SAF production guidelines targeting the production of 700 mn liters annually by 2030 last month. The country plans to domestically produce 1% of UAE airlines’ SAF needs at Emirati airports by 2031.

#6- A.P. Moller Maersk (Maersk) has christened the first of 18 large methanol-enabledvessels, dubbed Ane Maersk, at a ceremony at Hyundai Heavy Industries shipyard in Korea, according to a press release released on Friday. Ane Maersk is set to enter service at the beginning of February and will be powered by green1 methanol. The vessel will operate the AE7 string connecting Asia and Europe, according to the statement. The remaining vessels are set to be delivered between 2024 and 2025, each with some 16k TEU capacity. The vessels are fitted with dual-fuel engines that can be powered by methanol, biodiesel, and conventional bunker fuel.

#7- Dutch government plans to cap the number of flights at Amsterdam Schiphol airport are unlikely to happen in 2024, Reuters reported on Thursday, citing a statement by Dutch infrastructure minister Mark Harbers. The delay is chalked up to the European Commission needing more time to review the policy, and comes on the heels of the Dutch government canceling plans in November that would have seen flights at the key European air transport hub capped at 425k, or 10% lower than pre-pandemic levels, the newswire said. The EU Commission has to weigh the requests of the Dutch government — which wants fewer flights to curb environmental and noise pollution and due to staffing concerns at Schipol — with obligations including the EU-US Open Skies agreement. A solution with a “balanced approach” is not likely by 1 November, Harbers said in statements cited by the newswire.

ICYMI- French shipping giant CMA CGM and French-Dutch carrier Air France-KLM said they will terminate their air freight alliance effective 31 March last week, citing regulatory hang ups following a dispute over flight slots at Amsterdam’s Schiphol airport.

MARKET WATCH-

Russia is willing to continue supplying gas to Europe through “various routes” beyond 2024, when a gas transit contract through Ukraine is set to expire, Russian News Agency TASS reported on Saturday, citing Deputy Prime Minister Alexander Novak. There has been no interest from European countries to discuss the matter, Novak said. Russia’s Gazprom and Ukraine’s Naftogaz extended a contract for the transit of Russian gas via Ukraine to 2024 back in December 2019. Kiev has stated that it does not intend to renew the framework when it expires at the end of this year, TASS said.

CIRCLE YOUR CALENDAR-

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.

Holland will host theCargo Facts EMEA from Monday, 5 February through to Wednesday, 7 February in Amsterdam. The event will bring together air freight industry leaders from Europe, the Middle East, and Africa to discuss the latest trends, forecasts, and technological innovations.

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 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 theTradeTech Forum on Tuesday, 27 February in Abu Dhabi. The forum will see some 180 trade leaders and experts discuss the technologically advanced trade environment and a showcase of trade tech solutions.

The UAE will host The Logistics Middle East Award on Wednesday, 6 March in Dubai. The awards ceremony brings together industry experts to celebrate the sector’s biggest accomplishments over the previous 12 months.The deadline for submitting nominations is Friday, 19 January.

KSA will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host The Electric Vehicle Innovation Summit from 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.

Red Sea tensions continue amid squabbles between China and Israel

More attacks in the Red Sea: British warship HMS Diamond downed a Houthi drone targeting the vessel on Saturday, a day after a Houthi-launched missile hit Marshall-flagged Marlin Luanda in the Gulf of Aden while transiting the Red Sea, Reuters reports, citing British officials. The warship destroyed the drone, with no injuries to crew or damage to the vessel, the newswire cited the UK’s Minister of Defence as saying yesterday.

The Marlin Luanda attack set fire to one of the vessel’s cargo tanks with no harm caused to crew, according to a statement by the vessel’s operator, multinational commodities trader Trafigura. Trafigura has said that it will assess the risks involved in future Red Sea transits following the incident, adding that it has no vessels currently operating in the region, according to an update to the company’s statement.

US strikes back: Hours after the attack on the fuel tanker, the US Navy launched a strike against a Houthi anti-ship missile being prepped for launch in the Red Sea area, US Centcom said on X. The US Navy assessed that the missile presented an “imminent threat” to merchant shipping and US naval vessels in the region and destroyed the missile site in “self-defense,” Centcom said. The US and UK also launched an additional two airstrikes on Yemen’s main oil export terminal — Ras Issa Port, Reuters reported on Saturday, citing Houthi Al-Masira television as saying.

Chinese firms have been betting on Houthi promises: A number of smaller Chinese shipping lines have been flocking to fill the vacuum of ships navigating the Red Sea route under their “perceived immunity” from Houthi missiles, The Financial Times reported on Thursday. One of the opportunistic shipping companies emphasizes on its website that its ships prominently display the Chinese flag and sail though the Red Sea with Chinese navy escorts, the salmon-colored paper adds.

Chinese investments in Israel’s ports represent a “strategic risk”: Bayport terminal at Israel’s Haifa port, run by China’s Shanghai International Port Group (SIPG), represents a “strategic risk” to Israel, Reuters reported on Friday, citing a 17 January letter written by Ashdod port chairman Shaul Schneider it has seen. Israel’s state-owned Ashdod Port will stop information sharing with SIPG Bayport terminal and will no longer coordinate on security threats, Schneider is cited as stating. Israel’s shipping and ports authority chief rebuffed the letter, stating that its claims were “inaccurate to the point of being wrong,” and warned of their implications for the country’s political and trade relations, the newswire said. SIPG countered that their activities were in accordance with Israeli law.

The conflict between the two ports has been aggravated by a shift in market share since the outbreak of the Israel-Hamas conflict, with cargoes diverted northward away from Ashdod — Israel’s last state-owned port — and SIPG’s Haifa terminal seeing a boost in volumes, the newswire writes. Chinese carriers OOCL and COSCO also stopped their operations in Israel citing Houthi-led attacks, further inflaming tensions.

Egypt is still facing trouble: Suez Canal Authority (SCA) revenues will be “severely affected”this year if commercial vessels continue to divert their routes from the waterway, SCA boss Osama Rabie told Asharq Business on Thursday. The Houthi attacks have increased costs and risks for maritime lines and pushed many companies to reroute around the Cape of Good Hope or even look to air freight and overland routes as alternatives.

By the numbers: Suez Canal receipts have fallen 44% y-o-y to USD 802 mn in January 2024, Rabie told the news outlet. Egypt has lost about USD 150 mn in Suez Canal revenues due to ongoing Red Sea disruptions, according to estimates shared by Bloomberg’s chief emerging markets economist Ziad Daoud earlier in the month.

A warning from Deutsche Bank: Egypt could lose around USD 2 bn in revenues over a three-month period if disruption in the Red Sea leads to ins. premiums rising to “unsustainable levels” that it effectively stops Suez Canal traffic, the multinational lender warned in a research note seen by Enterprise. However, Deutsche Bank put the risk of a full closure of the channel as “unlikely” and instead predicted that “Egypt is likely to witness a partial — but not complete — loss in its revenue stream from the Suez Canal.”

And disruptions continue to delay LNG supplies from Qatar: Italian energy firm Edison is witnessing delays to liquified natural gas (LNG) supplies from Qatar, on the back of Red Sea disruptions, the firm’s CEO is cited by Reuters as saying on Thursday. A shipment scheduled to arrive in Italy in early February will arrive some two weeks late, he explained. “For now this has happened to one cargo,” Monti said, adding that his firm is closely following developments in the Red Sea.

Aramex is seeking alternative routes:Aramex Freight Services will be loading shipments from Asia onto its fleet of trucks in Dubai and Dammam in KSA, while doing the same for shipments from Europe at Port Said in Egypt, in a bid to accommodate reshuffles to sea freight routes due to disruptions in the Red Sea, according to a statement released on Saturday. Aramex is “actively monitoring” the crisis, which has prompted carriers to navigate around the Cape of Good Hope, adding some 7 to 14 days to transit times and boosting carbon emissions, the statement said.

OTHER DISRUPTION NEWS WORTH NOTING-

Grain ships continue to divert away from the Suez Canal: An additional 16 vessels diverted from the Suez Canal so far this week, bringing total diverted grain cargoes to 3.9 mn tons, up from 3 mn tons last week, Kpler lead agricultural commodities analyst said. (Reuters)
More diversions: Australian mining firm BHP Group is diverting “almost all its shipments,” from Asia to Europe to reroute around the Cape of Good Hope, away from the Red Sea. The diversion will cost shipments some 9 days in delays, the report said citing industry sources. (Wall Street Journal)
El Al suspends its flights to South Africa:Israeli carrier El Al will halt its weekly flights to Johannesburg at the end of March, citing a sharp fall in bookings following South Africa’s claims against Israel at the World Court. (Reuters)
US + UK sanction Houthi officials: The US and the UK have jointly imposed sanctions on four Houthi military officials including Defence Minister Mohamed Nasser al-Atifi, Naval Forces commander Muhammad Fadl Abd Al-Nabi, coastal defense forces chief Muhammad Ali al-Qadiri, and director of procurement Muhammed Ahmad al-Talibi. (Statement | Reuters)
CMA CGM reshuffles Algerian routes: CMA CGM cargoes bound for Algeria will now transit via Algeciras or Valencia in Spain rather than Tanger, Morocco. The move comes after Algeria banned transit and transhipment operations through Moroccan ports. (Statement)

Masdar and Daimler Truck will explore the feasibility of shipping liquid green hydrogen to Europe

Masdar will explore supplying green hydrogen to European trucks: UAE renewables giant Masdar inked an agreement with the world’s largest commercial vehicle manufacturer Daimler Truck to explore supplying liquid green hydrogen to power fuel cell rig trucks in Europe by 2030, according to a statement released on Thursday. The targeted timeline for completion of the feasibility study was not disclosed.

What they said: The agreement could potentially “enable a significant reduction of CO2-emissions in road freight transport in Europe,” while supporting “the UAE’s ambition to become a leader in the low-carbon hydrogen market by 2031,” Masdar CEO Mohamed Jameel Al Ramahi said.

Daimler’s decarbonization ambitions: The company would leverage green fuel imports from the UAE to help realize its commitment to fully decarbonize its fleet in the EU, US, and Japanese markets by 2039, the statement notes. The automaker has set a 2050 netzero target, and is teaming up with Cummins and Paccar on a USD 2-3 bn battery plant as part of its ambition to become a zero-emissions automaker. Daimler recently completed an over 1k trip on a single liquid hydrogen tank for its Mercedes-Benz GenH2 truck — planned for launch by 1H 2024 — in a bid to prove the reliability of net-zero vehicles.

REMEMBER- The EU has set out a target to phase out fossil fuel-powered vehicles by 2035 and reached a provisional agreement earlier this month to have almost all new heavy-duty vehicles in the bloc subject to emission reduction targets as part of a target to slash its transport sector’s greenhouse gas output by 15% next year, 45% by 2030, 55% by 2035, and 90% by 2040.

UAE’s Gulfnav will begin using drones throughout UAE ports

Gulfnav gets Wings: UAE-based maritime and shipping company Gulfnav has inked an MoU with eVtol outfit Wings Logistics Hub to begin using their drone services in various operations throughout UAE ports, according to a press release (pdf) released on Thursday.

What are they using them for? The agreement will see Wing Logistics Hub offer drones for various shipping services including the transport of light and heavy cargo, passenger drones, firefighting, and mapping and surveillance. The collaboration will also explore other solutions, such as autonomous light vehicles and AI-based solutions for the maritime sector, the statement notes.

Emissions cutting: “We expect the company to benefit from drone technology to overcome logistical challenges, as it is more cost-effective compared to traditional methods such as crew boats which rely mainly on fuel and personnel, and it also contributes to reducing carbon emissions,” Gulfnav CEO Ahmed Kilani said in the statement.

About Wings Logistics Hub: The UAE-based company, operating under the ownership of Multi Level Group, focuses on smart mobility, logistics technology, smart cities, and omnichannel solutions. They also specialize in advanced technologies, including intelligent autonomous drones, eVTOLs, and vehicle technologies.

Maqta Gateway inks shareholder agreement to provide Aqaba port with digital system

Maqta Gateway, Aqaba finalize shareholder agreement: AD Ports Group subsidiary Maqta Gateway and Jordan’s central development arm Aqaba Development Corporation (ADC) inked a shareholder agreement granting Maqta Gateway a majority 51% stake in the entities’ JV company, Maqta Ayla, as part of a port development agreement, according to a press release released on Thursday. Under the shareholder agreement signed, Maqta Gateway will have a 51% stake in Maqta Ayla and ADC will own the remaining 49%.

More details: The agreement pertains to an existing joint venture, dubbed Maqta Ayla, which looks to integrate Maqta Gateway’s Port Community System (PCS) at Aqaba Port, the statement said. No further details regarding the financials of the agreement were disclosed.

What does Maqta Ayla do? The company leverages Maqta Gateway’s experience and tools for port digitalization to implement the PCS to streamline transactions between the Port of Aqaba, terminal operators, Aqaba Special Economic Zone Authority (ASEZA), ADC, and other stakeholders active in the port’s ecosystem, the statement notes. Maqta Ayla will be the first company to export AD Ports’ port digitalisation solution and expects to roll out the PCS at Aqaba within a 12-month timeframe.

The initiative is a boon for decarbonization: The move is expected to slash carbon emissions associated with over 90k in-person visits within a year of its introduction.

About the Port of Aqaba: The port is a key gateway to Jordan, handling 80% of the country’s exports and 65% of its imports, the statement said. Aqaba’s Container Terminal handles next to 1.3 mn TEUs a year and is a key transit hub for trade with neighboring countries.

Agility’s Menzies Aviation nabs 50% of Hong Kong’s Jardine Aviation Services Group

Agility Logistics subsidiary Menzies Aviation has snapped up a 50% stake in Hong Kong’s JardineAviation Services Group (JASG), according to a press release released on Thursday. The acquisition comes within the framework of a partnership that will see Menzies andChina National Aviation Corporation (CNAC) operate a joint venture rebranding JASG as Menzies CNAC Aviation Services. The acquisition is subject to regulatory approval and is expected to be completed in the coming months. No financial details pertaining to the agreement were disclosed.

Menzies has been eyeing expansion in Asia: The latest acquisition is slated to help Menzies establish a foothold in Hong Kong and builds on an existing partnership with CNAC at Macau. Menzies also has operations at airports in Indonesia and Malaysia, the statement said.

About JASG: The ground handling services company has been running operations at Hong Kong International Airport since 1946. JASG offers various services to clients at the airport, including flight operations, passenger services, and ramp and cargo handling, the statement said.

Saudi Arabia’s ZATCA rolls out a blueprint for bonded zones, warehouses with five license types

KSA unveils fresh rules to boost logistics hub ambitions: Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has rolled out new regulations (pdf) for all bonded zones in a bid to facilitate the movement of goods and accelerate the growth of the logistics industry, according to a ZATCA press release released last week.

This is part of the government’s push to position the kingdom as a global logistics hub. The move aims to raise the efficiency of the logistics industry by facilitating the clearance, storage and movement of goods in and out of the Kingdom. It also allows foreign traders who have commercial registration in their countries to carry out their operations without having to acquire local commercial registration documents.

BACKGROUND- The regulations were put up for public consultation last September and you can find the results of the survey here (pdf).

The regulations outline four types of licenses for the operation and management of bonded zones:

The storage and handling of goods, along with value-added operations are permitted under the generic bonded zone license;
Goods and operations that fall under industries including ecommerce, maintenance, mixing and combination, simple assembly operations are permitted under the specialized bonded zone license;
The storage of liquid petroleum and petrochemical derivatives and bulk products is permitted under the bonded tank zone license;
Temporary bonded zone licenses are given for a maximum period of six months with an option for renewal or turning the zone into the permanent type.

Uhm, Enterprise, what are bonded zones? This is a system that allows importers and exporters to store imported goods in designated zones and warehouses without immediate payment of customs or taxes until the goods are moved into the local market or re-exported.

Expiration + renewal: All of the licenses — except the temporary type — are granted for a period of 10 years and can be renewed for an additional 10-year period provided the operator files at least 90 days ahead of the expiration date.

Al Seer Marine posts a loss for 2023 while GWC’s bottomline fell 10.28% y-o-y

FY 2023 earnings are making the rounds: We have a mixed bag of reports from two regional players this morning, as UAE-based marine services company Al Seer Marine and Qatar storage and warehousing giant GWC post contrasting results.

AL SEER MARINE-

Al Seer Marine posted an AED 1.03 bn loss in net income 2023, according to an earnings release (pdf). The company also saw a 10.8% y-o-y boost in topline for the same period to AED 1.2 bn. The latest results contrast with last year’s AED 1 bn topline, according to the company’s financials (pdf).

Why the drop in net income? The company attributed the weaker financial performance to market-to-market losses as the value of the company’s investment portfolio declined due to market changes.

Al Seer doubled down on expansion in 2023: The company made a cornerstone investment of AED 257 mn in Adnoc L&S, which was later bumped up by 43% to AED 367 mn, in a bid to diversify the company’s portfolio, the earnings statement said. The company also acquired a gas vessel for AED 331 mn and two Very Large Gas Carriers (VLGCs) for AED 724 mn, with the first VLGC delivered mid-year, as the company looks to diversify its range of vessels and boost services. “These strategic investments have diversified our operational capabilities enabling us to tap into continued growth across gas transportation,” Al Seer Marine CEO Guy Neivens said.

GWC-

Qatari logistics giant Gulf WarehousingCompany’s (GWC) bottomline saw a 10.3% y-o-y fall to QAR 215 mn in FY 2023, according to a press release. Toplines also dipped 1.3% to QAR 1.5 bn during the same period.

More details: An 82.2% y-o-y increase in finance costs, which totalled next to QAR 101 mn, contributed to the fall in net income, the company’s yearly financial report (pdf) revealed.

REMEMBER- The company kicked off the second phase at Al Wukair Logistics Park last September.

Oman and Cyprus look to strengthen economic cooperation, Iran and Turkey to jointly develop free trade zone

Oman + Cyprus eye stronger economic ties: Omani Foreign Affairs Minister Sayyid Badr bin Hamad Al Busaidi met with his Cypriot counterpart Constantinos Kompo to discuss boosting economic cooperation between the two countries, Oman News Agency reports. The pair agreed to finalize a number of agreements and MOUs including partnerships on maritime shipping, education, tourism, and renewables, ONA writes.

Iran + Turkey to develop border freezone: Iranian President Ebrahim Raesi agreed with his Turkish counterpart Recep Tayyip Erdogan to develop a freezone located along the two countries’ border, Mehr News Agency reported on Saturday, citing the head of the Iran-Turkey Parliamentary Friendship Association. Both countries discussed last week strengthening bilateral trade ties, as well as establishing a joint high-ranking delegation to boost the volume of trade and economic transactions between the two countries to USD 30 bn.

ALSO- Iran + Qatar follow up on agreement releasing Iranian funds in Qatar: Iranian Foreign Minister Hossein Amirabdollahian discussed expanding cooperation with his Qatari counterpart Mohammed bin Abdulrahman Al Thani, Tasnim News Agency reports. Thani assured Iranian officials that Qatar, and the US, are on-board with an ongoing agreement between Iran’s Central Bank and Qatar, which would facilitate access to Iran’s funds in Qatari banks.

Tokai Optics is heading to SAIF, Red Sea Global is switching to biofuel, and Al Seer will work with Milanion on UGVs

ZONES-

Tokai Optical to join SAIF Zone: Japanese eyeglass lens manufacturer Tokai Optical will lease a 400k sqm warehouse in the Sharjah Airport International Freezone (SAIF Zone) for AED 8 mn, after it inked an agreement with SAIF Zone on Sunday, the freezone said on X. The move marks the first phase of the company’s expansion in the Middle East and Africa.

GREEN TRANSPORT-

Saudi Arabian developer Red Sea Global (RSG) has converted its full fleet of land vehicles to operate solely on low-carbon biofuel or electricity, SPA reports, citing a company statement. The company currently operates a fleet of six refrigerated trucks with a payload of 8 tons and three refrigerated trucks with a payload of 3.5 tons. It has plans to expand to up to 800 vehicles by 2030.

More details: The biofuel used by the RSG is produced from locally sourced cooking oil, the statement notes, adding that it only emits 0.17 kg of carbon dioxide equivalent per liter in comparison with the 2.7 kg per liter produced by burning regular diesel.

SHIPPING + MARITIME-

Al Seer teams up with Milanion on UGVs: UAE-based maritime solution provider Al Seer Marine has inked an MoU with autonomous technology outfit Milanion to collaborate on land and maritime UGVs manufactured in the UAE, according to a press release released on Thursday. Milanion will design and develop autonomous technology systems and platforms and Al Seer Marine will extend its experience in manufacturing and maintaining maritime equipment. The collaboration looks to bank on growth in the global UGV market, forecasted to stand at USD 4.9 bn by 2029, the statement said.

STORAGE + WAREHOUSING-

Egypt is reportedly looking to construct six silos to boost grain storage capacity by 10% in 2024 at a cost of USD 145.6 mn, Al Arabiya reports, citing people with knowledge of the matter. The project will increase capacity by 420k tons to a total of 4.62 mn tons. The French Development Agency will extend a USD 61.5 mn grant for the silo’s construction, with Egypt financing the remaining USD 84.1 mn. The Egyptian government is looking to boost grain storage capacity to between 6.5 to 7 mn tons within the next three to four years, with increased storage allowing the country to better handle price shocks. The new silos will be located in Kafr El-Sheikh, Dakahlia, Minya, Assiut, and Menoufia governorates, Al Arabiya writes.

OTHER STORIES WORTH KNOWING THIS MORNING-

KSA to improve customer satisfaction in transport and logistics: KSA’s Ministry of Transport and Logistics has inked a partnership agreement with the Customer Experience Association to measure and improve customer satisfaction in the transport and logistics sector. (SPA)

Calendar

FEBRUARY

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

5-7 February (Monday-Wednesday): Cargo Facts EMEA 2024, Amsterdam, Netherlands.

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.

27 February (Tuesday) :TradeTech Forum, 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.

6 March (Wednesday): The Logistics Middle East Awards, Dubai, 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.

28 April – 29 April (Sunday – Monday): World Economic Forum, Riyadh, KSA.

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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Red Sea tensions continue amid squabbles between China and Israel

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TODAY: China and Israel squabble over ports + Gulfnav inks drone agreement for logistics handling

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Red Sea tensions continue amid squabbles between China and Israel

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Red Sea tensions continue amid squabbles between China and Israel

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