A big news day for AD Ports

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What we're tracking today

TODAY: AD Ports is now majority owner of Tbilisi Dry Port

Good morning, friends, and happy late-August to you all. Kids in Saudi, Egypt, and the UAE start trudging back into classrooms over the coming couple of weeks — the Cairo American College crew are first up this morning. We hope the final days of summer are kind to you all.

IT’S A BIG MORNING FOR: AD Ports, which has closed its acquisition of a majority stake in Tbilisi Dry Port, while its Noatum Maritime unit has acquired Egypt’s Safina. Read on for the details.

WATCH THIS SPACE-

#1- AD Ports becomes majority owner of Tbilisi Dry Port: AD Ports has finalized the acquisition of a 60% stake in Georgia’s Tbilisi Dry Port, according to a press release on Thursday. The project, set to come online by 4Q 2024, will serve as a key component in the anticipated Middle Corridor, an emerging trade route linking manufacturing hubs in Western Asia to consumer markets in Eastern Europe.

ICYMI- The UAE-based port operator agreed to acquire a 60% stake in the port from Inveco back in March. The first of the project\s three phases will see it have a handling capacity of some 96.5k TEUs, 10k sqm of warehousing space, and car storage yards. A third phase will see capacity boosted to 286k TEU, 100k sqm of warehousing space, and more expansive car storage yards. An additional 88k sqm of land is available for future expansion subject to volume growth.

#2- Nuclear-powered container shipping in Europe? Maersk has agreed to join a feasibility study by maritime service company Lloyd Register and UK-based Core Power to evaluate the potential for nuclear-powered container shipping in Europe, according to a press release on Thursday.

What are they doing? The three firms will assess the regulatory feasibility and framework for using a fourth-generation nuclear reactor to power cargo operations in Europe. “If these challenges can be addressed by development of the new so-called fourth-generation reactor designs, nuclear power could potentially mature into another possible decarbonization pathway for the logistics industry 10 to 15 years in the future,” head of fleet tech at Maersk Ole Graa Jakobsen said in a statement.

#3- Iran has signaled its readiness to transship Russian natural gas through its territory, Tass reported on Saturday, citing Iranian ambassador Kazem Jalali. “We are very interested in working with Russia. We are ready to transit Russian gas through Iran’s territory,” Jalali said without providing further details. The ambassador also highlighted that Russia ranked first in terms of foreign investment in Iran in 2023.

A growing friendship: Iran inked an MoU back in May with Russia’s Tatarstan province to boost trade, exchange information, and facilitate visits by delegations. They also signed a EUR 1.6 bn agreement in May 2023 to build the Rasht-Astara railway to complete the International North-South Transport Corridor (INSTC). Iran’s 37 km Rasht-Caspian railway connecting the Persian Gulf to the Caspian Sea also went operational earlier this year in a bid to boost trade links between the two regions.

#4- KSA adopts regulations for self-driving vehicles: The Saudi Roads General Authority has adopted new standards for self-driving vehicles in the Kingdom. (Statement)

MARKET WATCH-

#1- Oil prices fell almost 2% on Friday as investors adjusted their expectations of oil demand growth from China, Reuters reports. Brent crude futures dipped USD 1.36 to USD 79.68 a barrel, while US West Texas Intermediate (WTI) slipped USD 1.51 to USD 76.65 a barrel.

#2- China’s petrol exports fell 35.7% y-o-y to 5.7 mn barrels per day in July 2024, Reuters reported yesterday, citing Chinese customs data. The data showed gasoline exports down to 790k metric tons in July from 1.22 mn tons in the corresponding period a year earlier. Gasoline export margins saw a loss of USD 3 to USD 4 a barrel between the second half of June and early July. “Motor fuel exports remain capped because of weak margins and production, due to refinery run cuts,” senior analyst Emma Li said. Beijing — which manages gasoline, diesel, and jet fuel exports under a quota system — will likely need to use more product export quotas to boost refinery runs, Li noted.

#3- Baltic index basically flat on Friday: The Baltic Exchange’s dry bulk sea freight index, which tracks rates for the capesize, panamax, and supramax vessel segments, slipped 0.1% to 1,691 points on Friday. Capesize dipped 0.2% to 2,537 points, while the panamax segment fell 0.1% to 1,552 points. The smaller supramax index edged up 0.3% to 1,304 points.

DATA POINTS-

#1- Oman’s Salalah port recorded a 16% y-o-y dip in container volumes in 1H 2024, handling 1.6 mn shipping containers due to the disruptions in the Red Sea, Reuters reported on Friday, citing a statement by the port. Cargo volumes rose 4% y-o-y to 11.6 mn tons during the same period, driven by high demand for gypsum and limestone exports. The decline in container volumes was attributed to ships rerouting away from the Red Sea as shipping lines that are avoiding the Red Sea also bypass Salalah. The port expects container volumes to continue to decline for the rest of the year if disruptions remain unresolved.

#2- Oman’s agriculture imports rose 11.6% y-o-y to OMR 110 mn in the month of May 2024, ONA reported last week. The value of vegetable imports saw a 44.9% y-o-y increase to RO 42 mn, while the value of imports fell 2.5% y-o-y to RO 67 mn during the same period. Vegetable exports inched up 3.9% y-o-y to RO 8.9 mn, while the value of fruit exports grew 40.1% y-o-y to RO 4.6 mn.

#3- Dubai aerospace platform Mohammed bin Rashid Aerospace Hub (MBRAH) recorded a 7% y-o-y increase in private jet movements to 8.4k in 1H 2024, according to a press release on Thursday. The firm expects the movements to reach 18k by the end of 2024 on the back of the development of new aircraft hangars and maintenance facilities in Dubai South city.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.

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

AD Ports’ Noatum Maritime takes on a majority stake in Egypt’s Safina

AD Ports subsidiary Noatum Maritime has acquired a majority stake in Egyptian cargo services and maritime agency Safina BV, according to a statement released on Friday. The agreement is set to close in 3Q 2024.

The breakdown: Safina’s founders will retain a minority stake in the combined entity and the firm will be rebranded as Noatum Maritime Egypt. Neither the value of the transaction nor the size of the stake being acquired was disclosed.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Noatum will expand Safina’s customer base: AD Ports plans to leverage Noatum’s extensive international network to help Safina “access new customers from more diverse industries and strengthen its local presence,” the statement said.

About Safina: The shipping agency provides services and maritime logistics to shippers in the metals, minerals, and fertilizer industry, according to the statement. The firm is located across six strategic office locations and offers services across 15 Egyptian ports, including Sokhna, Adabiya, Damietta, Port Said and Alexandria, says the statement.

What they said: “The move enhances our presence in key markets and enables us to strengthen our service offering across Egypt, the Middle East and North Africa, providing for greater flexibility and opportunities to meet our customers’ needs,” Noatum Martime’s CEO Terry Gidlow said.

More than acquainted: AD Ports purchased a 70% stake in Safina’s parent company, IACC Holdings, in 2022. IACC is also the parent of our friends at Transmar.

Noatum is fairly new to the AD Ports family: Abu Dhabi-based AD Ports fully acquired the Spanish logistics company back in July 2023 in a EUR 660 mn transaction as part of a wider expansion plan. Noatum is present in US, Chinese, and Southeast Asian markets. The subsidiary has since launched an office in Turkey as part of its ongoing expansion across the MENA region.

REMEMBER- AD Ports is doubling down on the Egyptian market: The acquisition of Safina comes shortly after AD Ports inked an agreement in June to develop, operate, and manage three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh, with USD 4.7 mn in investments over 15 years.

China’s STWPA inks lease for Zhong A Shandong Industrial Park in UAE’s Ras Al Khaimah

Rakez signs off on Chinese industrial park: China’s Shandong Timber and Wood Products Association (STWPA) is setting up the Zhong A Shandong Industrial Park in the UAE’s Ras Al Khaimah Economic Zone (Rakez), according to a statement published on Friday.

What we know: The first phase of the industrial park — which will see some USD 360 mn in investments — will cover 450k sqm across Rakez’s Al Ghail and Al Hulaila plots. The project will be expanded to over 1 mn sqm over the subsequent three years. The project is slated to attract over 60 new companies and generate some 3.5k new jobs in the wood and food and beverage industries over the next five years. The project’s launch date has not been disclosed.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

What the Chinese have in mind: STWPA is looking to leverage Rakez’s infrastructure to attract Chinese investors to the area. It already produces around 10% of the wooden furniture stock globally, supporting over 1.7k wood companies worldwide. The firm already owns similar industrial complexes in China, Indonesia, and Ethiopia.

For the record: “With nearly 30% of the emirate’s economy driven by manufacturing activities, we are excited about the additional value and economic vibrancy this park will bring about. This project also strengthens our ties with China, supporting our mission to provide a nurturing environment for Chinese investors,” Rakez CEO Ramy Jallad said.

REMEMBER- Rakez is eying stronger trade ties with China: Senior execs from Rakez discussed last year with Chinese officials enhancing trade and economic cooperation during an official visit to China’s Guangdong province. Business forums were also held in cities including Guangzhou, Shenzhen, and Dongguan where parties explored creating foreign trade platforms to strengthen bilateral long-term bilateral business ties.

Asian players are setting up shop in Rakez: India-based conglomerate Birla’s dielectric film producer Xpro India Limited will be developing a AED 100 mn global manufacturing unit in Rakez, slated for operation in 2Q 2025. Rakez has also inked an MoU recently with the All India Association of Industries (AIAI) to develop a platform to attract Indian enterprises to Ras Al Khaimah.

Dubai’s DP World and Gulf Nav post 1H 2024 results

DP WORLD-

Dubai-based port operator DP World’s bottom line dropped 35.6% y-o-y to USD 570 mn in 1H 2024 on the back of the shipping crisis in the Red Sea, according to its financial statement (pdf) released on Thursday. The company’s top line saw a 3.3% y-o-y increase during the period to USD 9.3 bn.

Behind the numbers: The firm attributed the stronger topline to higher revenues from its ports and terminals segment, which saw a 14.8% y-o-y increase to USD 3.6 bn in 1H 2024. The logistics segment reported a 2% y-o-y decline in revenues to USD 3.8 bn, while the marine services sector witnessed a 5% y-o-y dip in revenues to USD 1.9 bn.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Red Sea disruptions main culprit: DP World’s Middle East, Europe, and African markets saw a 7.1% y-o-y decline in net income to USD 1.3 bn on the back of disruptions in the Red Sea. However, revenues from those markets were up 1.0% to USD 6.5 bn during the period as the disruptions were partially offset by robust gains from ports and terminals across UAE, Africa, and Europe.

What they said: “While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half and the positive momentum as we enter the second half, positions us well to deliver stable full year adjusted EBITDA. We remain optimistic about the medium to long-term prospects of the industry and DP World’s ability to deliver sustainable returns consistently,” DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem was quoted as saying by Dubai Media Office.

YET- DP World has high hopes for the rest of the year, anticipating a “solid pipeline” of new business for its logistics division, coupled with signs of recovery at several ports affected by the Red Sea crisis, the port operator told Reuters.

Some high notes for the port operator: DP World was among seven major firms who managed over 40% of global port throughput in 2023. Dubai is also investing AED 2.1 bn to expand the DP World-operated London Gateway, and DP World is looking to develop berths five, six, and seven at London Gateway to meet the additional capacity needs expected in UK markets starting 2027. The company also recently inked an MoU with the Dubai Municipality to develop the world’s largest logistics hub for foodstuffs, fruit, and vegetable trade.

GULF NAV-

Dubai-listed maritime firm Gulf Navigation Holding (GulfNav) posted a 5.7% y-o-y decline in net income to AED 13.2 mn in 2Q 2024, its financial results (pdf) showed. Its revenues dipped 47.5% y-o-y to AED 13.6 mn during the period.

On a 1H basis: GulfNav’s net income was down 11.2% y-o-y to AED 24.7 mn in 1H 2024, while the firm’s revenues fell 42.2% y-o-y to AED 37.5 mn, the disclosure noted.

A key highlight during the year: GulfNav snapped up Polimar Holding’s 40% stake in its maritime services subsidiary Gulf Navigation Polimar Maritime earlier this year in a USD 1 mn transaction.

QTerminals set for greener operations at Rotterdam port

DECARBONIZATION-

QTerminal integrates green equipment at Rotterdam port: Qatar’s QTerminals is partnering with Project Zero Emission Services to fit out its Kramer Rotterdam operations with chargeable containers which will be equipped with advanced battery packs for inland vessels, according to a statement yesterday. Rotterdam port authority will also be collaborating with QTerminals to build charging stations at the firm’s Rotterdam Container Terminal, which will be handled by eco-friendly harbor cranes.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

SHIPPING + MARITIME-

Asyad Group expands Far East Express service: Oman’s Asyad Group is expanding its Far East Express Service to strengthen trade and sustainability in the Asia-GCC corridor, according to a press release last week. Slated to be operational this month, the upgraded service will offer fortnightly sailings that connect key ports in China, India, and the GCC region.

ZONES

Mawani + Al Jeri partner up on two logistics zones: The Saudi Port Authority (Mawani) and Al Jeri Logistics Services have inked two contracts worth SAR 160 mn to develop two logistics zones for storing and handling container at Jeddah Islamic Port and King AbdulAziz Port in Dammam, according to a press release last week. The zones aim to strategically position Saudi Arabia as a logistics hub and a gateway for the three continents.

SHIPPING + MARITIME-

Iran’s IRISL is getting a 7k ton ship from Russian firm: The Islamic Republic of Iran Shipping Lines (IRISL) has placed an order with an unnamed Russian firm to manufacture a 7k ton vessel for Iran’s maritime transport fleet in the Caspian Sea, IRNA reported on Saturday. The agreement for the vessel — slated to be delivered to the Iranian shipping fleet this fall — is in line with IRISL’s plan to boost its cargo transportation and maritime trade in the Caspian Sea.

IRISL is ramping up investments: Iran has been ramping up its investments in shipping and maritime operations in the Caspian Sea as part of the International North-South Transport Corridor (INSTC). Iran and Russia are investing some USD 38 bn in the development of Trans-Caspian shipping lines as part of the corridor, while IRISL has also purchased rail wagons, containers, and vessels to boost capacity. It also signed agreements worth some USD 86 mn with Iranian shipyards for 10 newbuilds to bolster the national shipping fleet.

DATA CENTERS-

Omantel launches new data center in Oman: Omani telecommunications firm Omantel has launched the region’s second-largest data center in Salalah to boost digital infrastructure in Oman, Oman Observer reported on Saturday. The center will be home to data centers for global firms including Equinix, Facebook, and Google, helping position Oman as a hub for digital infrastructure in the region.

INVESTMENT WATCH-

Aramex partners with SME lender FlapKap: UAE-based logistics and transportation provider Aramex will offer funding to SME clients through a partnership with Egypt-born revenue-based financing platform FlapKap, according to a statement published last week. Aramex, which provides logistics and transport services to SMEs, says FlapKap will help give its SME clients access to working capital finance. FlapKap aims to give 48-hour turnaround on finance requests; the company is now headquartered in Abu Dhabi.

OTHER STORIES WORTH KNOWING THIS MORNING-

APM Terminals Bahrain adds land transport to its roster: APM Terminals Bahrain has approved the integration of land freight transport to its activities. (Disclosure, pdf)
AIQ deploys AI safety tech on Adnoc L&S vessels: AIQ has installed its SMARTi intelligent operational safety monitoring solution on Adnoc L&S vessels to detect and report hazards. (Press release)
Saudi’s Arar receives its first flight from Egypt: Saudi Arabia’s state-owned airports operator Cluster 2 Airports Company said its Arar airport received its first flight from Cairo International Airport. (SPA)

Russia looks to boost its Arctic LNG production despite sanctions

Russian gas producer Novatek will expand its Arctic LNG 2 plant despite energy sanctions from the West, Bloomberg reported on Saturday. A second production train has arrived at the plant, which is vital to Russia’s plans to boost its LNG production, the news outlet reports, citing ship-tracking data. US sanctions were imposed on the facility last year, blocking the delivery of ice-class tankers necessary for the LNG exportation, which delayed shipments for months. Russia has employed shadow tankers to avoid the sanctions, with two vessels caught on satellite image leaving the plant recently.

What’s next? “The second production train won’t start lifting cargoes until summer 2025, when the Northern Sea Route reopens and conventional vessels can again be used to load,” analyst at research firm Kpler Laura Page told Bloomberg.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Calendar

AUGUST

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai, UAE.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein, Egypt.

10-11 September (Tuesday-Wednesday): SkyMove MENA, Riyadh, Saudi Arabia.

12 September (Wednesday): Deadline for companies to submit bids for expansion and operation of Baghdad’s International Airport.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition (AICE), Dubai, UAE.

23-26 September (Monday-Thursday): Freight Summit Global Conference, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

30 September – 2 October (Monday-Wednesday): African, Middle East & Islamic Finance Aviation 100 Awards, Dubai, UAE.

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, UAE.

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

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

13 October (Sunday): International Transport Workers’ Federation (ITF) Congress, Marrakesh, Morocco.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah, Saudi Arabia.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh, Saudi Arabia.

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

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

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

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

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

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

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

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

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

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

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.

NOVEMBER

4-6 November: The International Air Cargo Association TIACA’s Air Cargo Forum 2025, Abu Dhabi, UAE.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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