AD Ports will develop, manage, and operate Iraq’s Grand Faw Port

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TODAY: AD Ports will develop Iraq’s Grand Faw Port

Good morning, ladies and gents. It’s the last weekend in Ramadan, and the Enterprise Logistics team is gearing up for a restful Eid break just days within reach. We have a compact issue this morning with some big AD Ports news, a spot of M&A from the UAE, and the appearance of Kuwait’s first-ever public PMI report. Shall we?

PSA-

A one-stop inspection and clearance station for Oman: Oman’s Ministry of Transport, Communications, and Information Technology, and Ministry of Housing and Urban Planning will begin receiving proposals via the Tatwir platform from local and international logistics firms to develop, manage, and operate a one-stop inspection and clearance station, according to a statement.

WATCH THIS SPACE-

#1- Egypt is looking to tap local banks to finance new railway route: Egypt’s National Authority for Tunnels (NAT) intends to borrow EGP 32 bn from a consortium of local banks to fund construction work on the second route of the high-speed rail network linking Fayoum, Beni Suef, Luxor, and Abu Simbel, Al Mal reports, citing sources it says have knowledge of the matter. The new route — which stretches 1.1k km from Fayoum to Abu Simbel in Aswan — boasts 36 stations, a control center, and maintenance facilities, and will be operated by 20 high-speed and 48 regional locomotives, along with an additional 20 locomotives for moving railway freight, Al Mal said.

#2-Recovery crews have opened a second 14-foot deep channel enabling smaller vessels to maneuver around the collapsed Baltimore bridge, Reuters reports. Along with a 11-foot deep auxiliary channel opened earlier this week, access to the site of the accident has been opened to emergency vessels, tugs, and barges. Larger cargo vessels remain blocked by debris and would need a channel that is at least 35-feet deep to bypass wreckage, the newswire said, citing statements by Maryland Governor Wes Moore.

#3- ADQ-backed alternative investment firm Lunate has acquired a 40% stake in Adnoc’s oil pipeline asset network from US private equity giants BlackRock and KKR & Co, a Lunate press release reads. No details were disclosed about the terms or value of the acquisition, but Bloomberg previously reported the stake could potentially cost more than USD 4 bn, including debt. Lunate's Long Term Capital Fund acquired a 100% stake in a special purpose vehicle co-owned by BlackRock and KKR managed funds.

BlackRock and KKR were trying to exit the pipeline for some time now: The private equity giants were in final talks to sell their combined 40% stake in Adnoc Oil Pipelines to ADQ during July of last year. Both companies had purchased their stake back in 2019 in what was the first investment made by foreign asset managers in a state-owned oil producer in the region.

WORTH LISTENING-

Bloomberg discusses decarbonizing the shipping industry: A recent episode of Bloomberg NEF’s Switched On podcast discussed the shipping industry’s emissions reductions targets and the plausibility of achieving them, as well as the role of EU policies. Host Dana Perkins and guest Mohith Velamala delved into how the maritime industry accounts for over 5% of global oil demand and 2.5% of global emissions — with a 20% growth forecast by 2050 — emphasizing the need to switch over to alternative fuels such as green methanol. The EU currently has the strictest shipping regulations in place but only accounts for 14% of shipping emissions, so other governments will have to follow suit to make an impact on the industry, the pair shared.

MARKET WATCH-

#1- Surprising no one, Opec+ ministers left voluntary production cuts unchanged, according to a statement. The panel met online yesterday to review the cuts and welcomed Iraq and Kazakhstan’s pledge to get in line. The group also welcomed Russia’s voluntary adjustments to be based on production instead of exports in the second quarter of 2024. The meeting came weeks after Opec+ members, led by Saudi and Russia, extended voluntary curbs that will remain in effect through June 2024.

Whose not towing the line? The cartel exceeded production caps by some 275k barrels per day (bpd) in January, and 175k bpd in February, Reuters reports, citing numbers from S&P Commodity Insights, which Opec+ also uses to track member output. Russia is maintaining compliance, Russian Deputy Prime Minister Alexander Novak said on Wednesday. Meanwhile Iraq, Kazakhstan and Gabon overproduced in the first two months of the year, S&P Commodity Insights also showed. Iraq pledged last month to cap its oil exports to 3.3 mn bpd, in order to compensate for exceeding production limits.

Oil prices continue climbing on Wednesday, as traders mulled supply risks on the back of Ukrainian attacks on Russian energy infrastructure and heightened tensions in the Middle East, as well as Opec+ decision to maintain cuts, Reuters reports. Brent crude futures rallied 0.9% to USD 89.68 per barrel by 13.46 GMT, while US West Texas Intermediate (WTI) futures rose 0.7% to USD 85.77 a barrel, the newswire said. “Low inventories across the oil complex, Opec+ output cuts, geopolitical tensions, and robust economic growth figures have flipped price trends and now point to a tighter-than-expected summer driving season, supporting firm backwardation in crude and products,” the newswire added, citing a Bank of America Global note.

#2-Baltic index dips to near six week low: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 5.9% to 1,714 points on Tuesday, falling for the ninth session in a row, and hitting a near six-week low, as weaker rates across the board dragged down the index, Reuters reports. The larger capesize subindex dropped 9.2%, to 2,394 points, marking its lowest in almost two months, while panamax dipped 3.4% to 1,816 points. The smaller supramax segment declined 2.1% to 1,303 points, the newswire said.

CIRCLE YOUR CALENDAR-

The UAE will host the 7th edition of the Global Ports Forum on Sunday, 17 April and Monday, 18 April in Dubai. The event will host discussions on port strategy and development, automation, financing, and enhancing efficiency.

Egypt will host the 5th edition of the Egypt Facility Management Forum on Tuesday, 23 April and Wednesday, 24 April in Cairo. Business-owners, developers, service providers, technology leaders and suppliers will attend seminars and exhibitions on the facility management supply chain.

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Iran will host the second Iran-Africa International Summitfrom Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

Saudi Arabia 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.

Qatar will host the Autonomous E-mobility Forum from Tuesday, 30 April to Thursday, 2 May in Doha. The event will gather industry experts, senior officials, policy and technology experts, as well as government, academic, and media representatives, providing a platform for stakeholders to exchange know-how and recommendations for the implementation of autonomous e-mobility in the real-world.

Saudi Arabia will host the Saudi Smart Logistics exhibition and summit from Monday, 6 May to Thursday, 9 May in Riyadh. The trade fair brings together local and international suppliers, public officials, professionals, and logistics players, and provides a platform for networking, exchanging know-how, and showcasing new technologies, products, and services.

The UAE will host the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s "Sustainability and Innovation," theme.

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

AD Ports will develop, manage, and operate Iraq’s Grand Faw Port

AD Ports to develop Iraq’s Grand Faw Port: AD Ports Group inked a preliminary agreement with the General Company for Ports of Iraq, to form a joint venture to develop Iraq’s Grand Faw port and economic zone, as well as operate, finance, manage and operate the projects, according to a statement. The agreement also involves potential investments — as well as management, operation and development contracts — for future projects in other Iraqi cities.

There’s a lot we don’t know: Neither the timeline for the project, nor the details around the development of the port or the value of investments AD Ports is expected to pour into it, have been disclosed.

Background: The company had signed an MoU with the Iraqi port operator to boost cooperation in maritime and transportation in 2021.

What’s next? The two companies will work on feasibility studies and explore investments for the project, the statement said.

About the port: The long-delayed Grand Faw Port, set to be the largest in the Middle East, is one of several projects Iraq is working on in hopes of creating a shorter corridor between the Middle East and Europe that bypasses the Suez Canal. It also forms a key part of the ambitious Development Road project the country is planning, which will link the port to Turkey’s border. South Korean firm Daewoo is working on the construction of the port’s five berths under a USD 2.7 bn contract.

AD Ports has been on a roll: The Emirati port operator is present in more than 40 countries, and last month acquired a majority stake in a dry port in Georgia. It also inked agreements to develop ports in India and Pakistan earlier in February.

UAE’s EasyLease acquires majority stake in United Trans

UAE-based EasyLease snaps up majority stake in United Trans: UAE-based International Holding Company (IHC) subsidiary and integrated mobility solutions provider EasyLease has acquired a 60% stake in UAE-based Alserkal Group subsidiary and transportation technology solutions provider United Trans, at an undisclosed sum, according to a press release (pdf). The move comes as EasyLease looks to boost its foothold in the regional smart mobility and railway sectors, the statement said.

What they said: The two companies look to collaborate to “deliver enhanced mobility transportation and rail solutions that meet the evolving needs of our customers,” EasyLease CEO Ahmad Al Sadah said. The partnership will also enable the pair to unlock new avenues for growth in the GCC and regional transport sectors, Al Sadah added.

About United Trans: Founded in 2008, the outfit provides technology-enabled mobility transport solutions for the rail, aviation, and marine sectors, while also supplying security screening solutions, and maintaining an emphasis on rail and smart mobility, the statement said. United Trans has taken up landmark projects in the GCC, including Dubai Metro, Dubai Tram, Dubai Airport People Mover, and the Doha Metro.

About EasyLease: Established in 2011, the company is a leading provider of integrated mobility solutions, servicing sectors including e-commerce, delivery, logistics, couriers, and food services, the statement said. EasyLease’s 25k vehicle fleet is one of the largest in the UAE.

EasyLease has been on an acquisition spree: The firm obtained a 60% stake in Ripe in December 2023, which offers services including container and commercial kiosk rentals, food trucks, parking facilities management, events management, and drive-through services. EasyLease also acquired a 60% stake in UAE-based electric charger manufacturing and installation outfit Fully Charged, that same month.

ICYMI- EasyLease’s bottomline fell 19% y-o-y to AED 26.5 mn in 3Q 2023. The drop in net income was attributed to investments in line with a long-term growth plan, which sees the outfit broaching new markets in Saudi Arabia and Bahrain, while also tapping new verticals. The firm’s topline figures boosted 35.6% y-o-y to AED 211.8 mn during the same period.

Kuwait releases its first ever public Purchasing Manager Index

How Kuwait + Qatar’s non-oil private sector fared in March: Purchasing Manager Indices (PMI) tracking non-energy sectors in Kuwait and Qatar both saw growth, attributable to robust demand, output, and new orders. Kuwait's’ first PMI report places the country’s non-oil private sector solidly in growth, while Qatar’s headline figure continues to indicate growth, but at a softer rate than that observed in the previous month.

Kuwait’s first public PMI is here: Kuwait’s first publicly released PMI showed stronger growth, an S&P Global Kuwait PMI (pdf) showed. The headline figure inched up to 53.2 in March from 52.7 in February, and remained above the 50.0 threshold separating contraction from growth. Output and new orders rallied on the back of stronger demand due to competitive pricing and advertising efforts, and business confidence also improved, driving the reading higher. Meanwhile employment increased only fractionally in March, risking larger backlogs, while input and output prices continued to rise.

Backlogs are rising as employment struggles to keep up with new orders: Recent months have seen only marginal increases in staff levels, despite sharp new orders in growth, seeing backlogs accumulate for 14 consecutive months, the report noted. If new orders continue to grow, firms will need to boost their employment to keep up with projects and prevent delays, Economics Director at S&P Global Market Intelligence Andrew Harker said in the report.

Purchasing activity and stocks of inputs increased as firms sought to keep up with demand and meet orders in a timely manner, the report added. Supplier delivery times also trimmed further, but at their least extent since July 2022. Input costs also perked up, amid a rapid increase in purchase prices, with some respondents citing higher computer and printing-related costs. Staff costs surged at their highest rate in the survey’s history. Businesses also hiked their selling prices in a bid to augment profit margins in the face of rising input costs. Inflation quickened for the third month in a row, and was the sharpest in two-and-a-half years.

Kuwaiti business confidence strengthened in March, with the offering of good quality products at competitive prices set to further boost output over the coming year. One third of respondents see business activity growing in the next 12 months.

Over in Qatar: Qatar’s PMI continued to show sustained growth in March, as boosts to output, new orders, employment, and purchasing buoyed the index, according to Qatar Financial Center’s PMI (pdf) report for March. Qatar’s headline number tracked at 50.6, down from 51.0 in February, signaling improved business conditions, and placing it above the 50.0 threshold separating growth from contraction. A draw down in input inventories was cited among the few factors weighing down Qatar’s headline figure.

Demand for goods and services continued to boom in March, with firms attributing growth to new customers, competitiveness, and high-quality products. Nonetheless the rate of growth was softer, enabling a faster reduction in backlogs. Employment also increased for a twelfth consecutive month, the report showed.

Purchases of inputs rose, albeit slightly, for the first time in three months, as firms looked to shore up depleted inventories, the report explained. Lead times also shortened for their twenty-third successive month, alleviating pressure on supply chains. Input prices, wages, and purchase costs were stable in March. Nonetheless, output prices rose for the first time in five months, and at their fastest rate since February 2023 suggesting better margins and higher profitability for Qatari firms at the close of this year’s first quarter.

Qatari businesses were upbeat about the next 12 months, with respondents citing new clients, development strategies, and drives to raise profitability as reasons to be hopeful.

ICYMI- The UAE and Saudi Arabia’s non-oil private sectors continued to expand in March at slower rates, with the UAE’s headline reading inching down to 56.9 from 57.1 in February on the back of the weakest supply chain performance in a year. KSA’s headline also fell to 57.0 in March from 57.2 the previous month. Egypt’s PMI rose slightly to 47.6 in March from 47.1 in February, indicating continued deterioration, but at a softer rate.

Joramco appoints Stephan Klose as COO

Joramco has a new COO: Jordan-based maintenance, repair, and overhaul outfit and Dubai Aerospace Enterprise (DAE) subsidiary Joramco has tapped Stephan Klose (LinkedIn) as its new COO, according to a press release. Klose will manage daily technical and operational aspects of the business, having previously served as VP of Maintenance and Engineering at Saudi Royal Aviation.

Agility’s Menzies Aviation snaps up several awards for operations at Budapest Airport

Menzies Aviation’s Budapest Airport team received three awards from two of its partners, according to a statement. The firm, a subsidiary of Kuwait’s Agility, received Budapest Airport’s Greenairport Partner of the Year award for rolling out new electric ground support equipment, and introducing chemical company Proviron’s de-icing fluid, made from plant and animal based components. The team was also awarded China-based Sichuan Airline’s Outstanding Contribution Award and Outstanding Ground Handling Agent Award for excellent ground handling and cargo work.

AND- GASEZ designates SCZone as SDG Model Zone Partner: The Global Alliance of Special Economic Zones (GASEZ) has designated Egypt’s General Authority of the Suez Canal Economic Zone (SCZone) as an SDG Model Zone Partner, according to a statement. The SCZONE was granted the certification as one of the 50 SDG Model Zones Partners, chosen from a pool of 7k special economic zones affiliated with the GASEZ alliance.

Al Dar Properties break ground on logistics hub in Dubai South

LOGISTICS HANDLING-

Construction starts on Dubai’s first build-to-lease logistics facility: Dubai South and Abu Dhabi-based real estate developer Al Dar Properties have broken ground on the first build-to-lease logistics facility in Dubai, according to a statement. The facility, covering 24k sqm, is set to be completed by the end of 2024. The pair entered into a JV agreement in February to develop the Dubai South logistics facility, which is situated near Al Maktoum International Airport and neighbors global giants like Amazon, Noon, and DHL.

TRADE-

UAE + India to boost trade: The Sharjah Chamber of Commerce and Industry’s Indian Business and Professional Council held a meeting yesterday to ramp up economic cooperation and trade between Sharjah and India, reports Wam. The meeting aimed to explore investment windows for Sharjah-based Indian companies in the energy, maritime industries, tourism, real estate, and contracting sectors, and facilitate sustainable partnerships.

OTHER STORIES WORTH KNOWING THIS MORNING-

Japan Airlines flies to Doha: Japan Airlines has launched its inaugural daily flight from Tokyo Haneda Airport (HND) in Japan to Hamad International Airport in Qatar. (Press release)
Flynas takes delivery of 50th plane from Airbus order: Saudi low cost carrier Flynas has received its 50th aircraft from a substantial order of Airbus A320 airliners. The purchase agreement with Airbus is for 120 aircraft at a cost of SAR 32 bn. (SPA)

The Panama Canal will take months to recover from precipitation deficit

The Panama Canal will take the rest of 2024 to recover from the drought that has plagued it since last year, Bloomberg reports. The drought has depleted the canal’s water reserves, crippling vessel movements and causing USD mns in losses for shippers. La Niña is forecasted to bring abundant rainfall within weeks, bringing relief after unprecedented dry conditions in 2023, according to Argelis Moreno Lopez, senior forecast and market analysis specialist in the Panama Canal Authority’s strategic planning division. It will, however, take months of precipitation to fully reverse the moisture deficit, Moreno added.

Calendar

APRIL

17 April- 18 April (Sunday-Monday): Global Ports Forum, Dubai, UAE.

23 April- 24 April (Tuesday-Wednesday): Egypt Facility Management Forum 2024, Cairo, Egypt.

24 April- 1 May (Wednesday-Wednesday): Abu Dhabi Mobility Week, Abu Dhabi, UAE.

25 April- 26 April: Driftx. Abu Dhabi, UAE.

24 April- 26 April (Wednesday-Friday): The Iran-Africa International Summit, Tehran, Iran.

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

28 April - 29 April (Sunday - Monday): World Economic Forum, Riyadh, Saudi Arabia.

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

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

MAY

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

2-4 May(Thursday-Saturday): The International Conference on Logistics Operations Management, Marrakesh, Morocco.

3-5 May (Friday-Sunday): The Logistics and Supply Chain Management Conference, Tunisia, Tunis.

6-9 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

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

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

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

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

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

21-24 May (Tuesday-Friday): Global Supply Chain Forum 2024, Bridgetown, Barbados.

26-28 May (Sunday-Tuesday): ProPak Mena 2024, Cairo, Egypt.

27-30 May (Monday-Saturday): Comex Technology Show, Muscat, Oman.

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.

27 June (Thursday): East Med Maritime Conference, Beirut, Lebanon.

29 June (Saturday): The Investment Conference in cooperation with the European Union, Brussels.

OCTOBER

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

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

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

8-10 October (Tuesday-Thursday): AntwerpXL Expo, Antwerp.

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

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck (HEAT) Show, Dhahran Expo, Damman, Saudi Arabia.

DECEMBER

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

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

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.

The Cross-Border Digital Trade Forum, Dubai.

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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AD Ports will develop, manage, and operate Iraq’s Grand Faw Port

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