Private investors will get the chance to manage five major Egyptian airports

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What we're tracking today

TODAY: Dubai Industrial City breaks ground on F&B logistics hub + Morocco unveils rail expansion strategy

Good morning, friends. We have a compact issue this morning with airport privatization updates from Egypt along with project updates from UAE and the latest on Morocco’s rail upgrades. First, an update on Boeing production hub strike…

THE BIG LOGISTICS STORY ABROAD- Votes are in: Boeing factory workers cast their votes yesterday on a new contract proposal that could end a crippling strike lasting over five weeks, with the results expected as we head to dispatch. The sentiment gathered around the voting stations have cast doubt on whether Boeing’s proposal will drum up enough momentum to pass, with a 50%-plus-one majority needed to decide the result. Boeing’s offer includes a 35% pay hike over four years, a one-time USD 7k ratification bonus, a reinstated incentive plan, and enhanced contributions to workers' retirement plans. The offer still falls short of the union’s targeted 40% pay bump and does not include the reinstitution of defined benefit pensions.

ICYMI- The strike is taking place at Boeing’s 737 Max Jets production hub, worsening the company’s already existing supply chain issues and delivery delays. Purchase orders for the company’s 737, 767 and 777 jets have been halted to preserve the company’s credit rating.

Boeing expects to burn cash in 2025 on the back of a 3Q loss of USD 6 bn due to the strike, with CEO Kelly Orthberg calling for a “fundamental culture change” after the company on an earnings call. “We need to prevent the festering of issues and work better together to identify, fix and understand root cause(s),” Ortberg said. "I've already introduced a much more detailed business cadence to drive this across the organization and this process of change is underway,” he added. The aviation giant incurred nearly USD 8 bn in losses this year, primarily due to the strike that disrupted production of its 737 MAX, 777, and 767 aircraft, along with challenges in its defense and space division impacting its operations.

WATCH THIS SPACE-

#1- A new freezone for Egyptian citrus exports: Egypt’s Cabinet has approved a draft law for the Ghars Citrus Concentrates Company to establish a private freezone in an existing industrial zone south of Port Said, according to a statement. Egypt’s General Authority for Freezones and Investments (GAFI) will oversee the development of the project. The 10k sqm project is forecasted to cost some USD 10 mn and produce citrus concentrates for export.

#2- Sovcomflot denies Dubai LNG ships are part of shadow fleet: Russian state-owned shipping company Sovcomflot PJSC — the owner of three LNG tankers transferred to Dubai-based company Matias Ship Management last month — said the vessels are not part of a shadow fleet, Bloomberg reports.

More on Matias Ship Management: Matias was established one month before the three ships — the Velikiy Novgorod, Pskov, and La Perouse — had aspects of their management shifted to the new company registered at a shared office space in the Meydan Hotel, Bloomberg writes, citing shipping database Equasis. Sovcomflot said that Matias is just offering technical management services, a “common industry practice utilized by all shipowners.” The Russian company refused to comment on whether it owns Matias, saying it is operating within all applicable laws.

REMEMBER- The US imposed sanctions on Sovcomflot in April for G7 “price cap violations in addition to deceptive activity.” Tankers routinely change their names after being sanctioned in order to separate themselves from listings on databases.

#3- Russian strikes in Ukraine are disrupting global grain supplies: Russia’s increased attacks on Black Sea ports in Ukraine are preventing grain supplies from reaching several destinations in the Global South including MENA, Reuters reports, citing a statement by British Prime Minister Keir Starmer. At least four merchant vessels were struck by Russia between 5-14 October and delayed a ship carrying vegetable oil to the World Food Program in Palestine, the statement notes. Vessels carrying corn to Egypt were also reportedly delayed.

#4- LNG freight rates have dropped to a multi-year low amid subdued demand and high supply in the week ending on 18 October, S&P Global reports. The lack of arbitrage avenues has resulted in unsupported rates, while significantly higher temperatures than in previous years worsen the scenario. This has caused a bleak market outlook. The Atlantic Basin saw TFDE shipping rates fall to USD 18.5k a day, while in the Pacific Basin rates slipped to USD 29k a day, with both rates down from USD 130k a day over the same period last year.

MARKET WATCH-

#1- Oil prices creeped up in early morning trading on the back of an unexpected rise in US crude inventories, Reuters reports. Brent crude futures gained USD 0.44 to USD 75.40 a barrel by 00.03 GMT, while US West Texas Intermediate (WTI) futures rose USD 0.45 to USD 71.22 a barrel. The gains recouped some of losses exceeding 1% in the previous session.

#2- Baltic index continues its decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dropped 35 points to 1,445 points on Wednesday, registering at its lowest reading since early February. The capesize index fell 87 points to 1,921 points, while the panamax index lost another 22 points to 1,238 points. The smaller supramax was unchanged at 1,249 points.

PSA-

Oman completes Al-Khabourah Road: Oman’s Transport, Communication, and Information Technology Ministry has opened the last 5.2 km long section of Al-Khabourah Road, according to a post on Facebook. The full 14.5 km long path starts at Al Batinah Expressway intersection and ends at Al-Khaboura roundabout on the Al Batinah main road.

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CIRCLE YOUR CALENDAR-

The International Conference on Tourism, Transport, and Logistics (ICTTL - 2024) is being held on Saturday, 26 October and Sunday, 27 October in Dubai. The conference will bring together experts, present ongoing research activities, and discuss future projects and partnerships.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

Saudi Arabia will host the Saudi Airport Exhibition on Monday, 11 November and Tuesday, 12 November in Riyadh. The two-day exhibition will bring together global industry leaders to discuss the latest technologies around the world in the aviation industry. It looks to encourage discussion between Saudi aviation leaders and the global supply chain industry.

The UAE will host the ADIPEC Maritime and Logistics Exhibition and Conference on Monday, 11 November and Thursday, 14 November in Abu Dhabi. The event looks to explore ways to reduce emissions through innovative solutions. It will bring together industry leaders, regulators and decision makers in the global maritime and logistics sector.

Bahrain will host The Bahrain International Airshow on Wednesday, 13 November and Friday, 15 November near Awali. The three-day event is bringing together over 180 participating companies from over 59 represented nations globally.

Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.

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

Egypt will reportedly offer up management + operation of five major airports to int'l operators

The first phase of Egypt’s plan to lure in private investors to develop, manage, and operate Egyptian airports will offer up five airports, Al Arabiya reported, citing unnamed sources it says have knowledge of the matter. Cairo International Airport, Sphinx International Airport, El Alamein International Airport, Sharm El Sheikh International Airport, and Hurghada International Airport are on offer for private sector investments, the sources said.

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Luxor, Aswan airports to follow in later phases: The government also plans to hand over management of Luxor and Aswan airports to private sector operators in subsequent phases, with plans to develop Aswan International Airport into a hub for sub-Saharan African flights, one of the sources said.

Private sector to run operations, not own assets: The sources reiterated Egyptian Civil Aviation Minister Sameh Elhefny’s remarks that the airports are not for sale and remain under the sovereignty of the Egyptian state. Instead, the offering involves the management and operation of the commercial activities within the airports.

More Egypt-bound flights? Having international operators run Egyptian airports could encourage major carriers to launch direct flights to Egypt from the US, Europe, and East Asia, one source told the outlet. Currently, US flights to Egypt often stop over in Europe or Turkey, while East Asian carriers only operate indirect routes to the country. The move is expected to boost both tourism from new markets and air cargo volumes.

When can we expect an answer? It will take an average of 16 months to weigh between the technical and financial offers submitted by private investors to develop, manage, and operate the airports on the government’s privatization checklist, unnamed sources told Al Borsa.

Private players are already lining up: Six international companies have shown interest in managing and operating the airports. Elhefny also met with a delegation from Greek infrastructure investment company Copelouzos Group last week to discuss potential joint projects to develop, manage, and operate airports in the country.

Is this the big news we were told to look out for? We’ve been on the lookout for airport privatization news since Prime Minister Moustafa Madbouly said earlier this month that some “important” updates regarding our plans to privatize airports and banks would be announced soon. The Madbouly government first revealed in November 2023 that it planned to invite private sector players — including foreign companies — to take over the management of airports in the country.

AND- A new airport in the works? One of Al Arabiya’s sources said that the government is mulling over plans to build a new airport to serve Egypt’s new capital, while positioning Sphinx International Airport to cater to low-cost and charter flights. The proposed new airport would be the second serving the new capital in addition to the already existing Capital International Airport.

Dubai Industrial City breaks ground on new F&B logistics hub

SLG Group breaks ground on F&B logistics hub in Dubai: UAE-based F&B firm Silver Line Gate Group (SLG Group) has started construction on an AED 200 mn integrated logistics hub at TECOM Group’s Dubai Industrial City set to open in 2025, according to a statement.

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Details: The 1.37 mn sqft hub will include manufacturing and warehousing for the production of 90k tonnes of milk powder and 10k tonnes of butter annually. The hub will also expand the firm’s production line of whey, milk, and specialty products, including fruit and vegetable-based seasonings.

Why is this important? SLG is looking to boost its export potential by positioning the new facility near Al Maktoum International Airport, Jebel Ali Port, and an Etihad Rail freight terminal. Once operational, the hub will serve markets in the GCC, Africa, and Southeast Asia.

About Dubai Industrial City: The industrial city is part of Dubai-based Tecom Group, which focuses on developing strategic, sector-focused business hubs across Dubai. The city — located on two major highways between Emirates Road and Mohammad Bin Zayed Road — aims to support manufacturing and logistics companies in domestic and global markets, according to their website.

Morocco rolls out a MAD 9.78 bn rail expansion strategy

Morocco’s National Railways Office (ONCF) has rolled out a MAD 9.78 bn (c. USD 988.3 mn) railway development investment plan for 2025-2027, Morocco World News reports, citing an EEP report accompanying the 2025 draft Finance Bill. The plan will disburse funds over several years — MAD 2.97 bn for 2025, MAD 3.64 bn for 2026, and MAD 3.17 bn for 2027 — to acquire new rolling stock, develop maintenance workshops, and enhance the kingdom’s infrastructure maintenance.

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More about the plan: The investment plan will also extend the high-speed rail line (LGV) from Kenitra to Marrakech as well as establish a regional express network (RER) for Casablanca, Rabat, and Marrakech. A state-ONCF contract is in the works outlining the development plan and its financing framework.

This is different from Morocco’s Railway Strategy 2040 which comprehensive long-term plan for the development of the national railway network, expected to cost MAD 87 bn (c. USD 8.5 bn).

On the up and up: ONCF handled over 17 mn of goods, saw a 7% y-o-y increase driven by growth in passenger transport, and brought in MAD 4.35 bn in revenues last year, Morocco World News reports. The firm’s revenues rose 12% y-o-y to MAD 2.18 bn in June 2024. The year-end projections anticipate an 8% y-o-y increase due to passenger transport growth.

ONCF has an active pipeline: The European Investment Bank inked a technical assistance partnership agreement with the office to strengthen climate resilience and develop an adaptation strategy for Morocco’s railway network, and ONCF and Oman Rail also inked an MoU last year to boost cooperation, develop partnerships, and exchange expertise.

Rail fleet expansion has been on the radar: ONCF said it intends to invest USD 1.5 bn to acquire 168 trains in a tender in November last year. Eighteen of the new trains will be allocated to the country’s high-speed rail line and 150 will be used for urban transport services, including high-speed commuter and intercity trains.

AD Ports wins two Global ESG Awards

AD Ports gets accolades at Global ESG Awards: The UAE’s AD Ports received two accolades at the Global ESG Awards for Environmental, Social, and Governance practices. The company received a Platinum Award for Sustainability/CSR Team of the year and a Gold Award for Renewable Energy Integration, according to a post on LinkedIn.

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Updates in ports, aviation, trade, and shipping from the UAE and Egypt

TRADE-

FedEx rolls out new import tool for UAE businesses: Delivery giant FedEx has launched the FedEx Import Tool (FiT), a solution designed to tackle the increasing complexities and import volumes in the UAE, according to a press release. The tool is equipped with a user-focused design that aims to streamline the import process and enhance efficiency. FiT is being introduced across several markets, including the Middle East, Indian Sub-continent, and Africa.

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The features: The tool features centralized document management and shipment tracking; a dashboard that provides visibility into every stage of shipments; proactive notifications designed to expedite the clearance process and minimize delays; a direct payment feature that allows for online payment of customs duties and taxes; and round-the-clock monitoring enabling shippers and importers to track their shipments for up to 90 days after pickup.

KMG + AD Ports Group to bolster TITR trade links: Kazakhstan’s petroleum refineries firm KazMunayGas (KMG) and AD Ports Group are cooperating to expand fleet operations and strengthen the Trans-Caspian International Transport Route (TITR), Trend reports. The two sides discussed collaborating on maritime transport and offshore oil projects in the Caspian Sea as well as expanding Kazakhstan's tanker fleet and building new vessels to enhance offshore oil transportation and services.

STARTUP WATCH-

Pargo brings its smart logistics services to Egypt: South Africa-based logistics firm Pargo has secured some USD 4 mn in funding to fuel its expansion into Egypt, it said in a press release (pdf). Pargo has rolled out its collect and return services — which allow people to collect or return their online orders at their convenience — across 500 pickup points, including Fawry, Circle-K, and Basata stores.

More on Pargo: The logistics company launched its pilot program in Egypt back in 2023, testing its services with 150 pickup points before its official rollout.

AVIATION-

EgyptAir continues to handle Emirates’ ground services operations in Cairo: National carrier EgyptAir has renewed its ground services contract with the UAE’s Emirates Airlines at Cairo International Airport, according to a statement. Under the contract, EgyptAir will continue to cover ground services at the airport, including supporting Emirates’ cargo and passenger flight operations. Emirates Airlines’ is one of Egyptair’s biggest ground services clients, operating some 100 flights per month from the airport, the statement said.

SHIPPING + MARITIME-

SeaLead rolls out Red Sea shipping service: Singapore-based shipping lines SeaLead has added a new shipping service — Mediterranean Gulf Express (MGX) — linking Jebel Ali to the Mediterranean via the Red Sea, according to a statement. The service will connect key regional hubs, including Egypt’s Damietta, Djibouti, and Turkey’s Aliaga.

PORTS

DP World Dakar to join Portchain Connect: Senegal’s DP World Dakar will join the Portchain Connect network, which should allow it to enhance the quality and speed of their berth alignment with customers by utilizing digital interactions and secure data sharing, according to a statement. Portchain will enable DP World to get real-time schedules and move count updates directly from carrier systems.

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About Portchain: Portchain is a Copenhagen-based provider of berth alignment and planning software for container and terminal carriers, according to the statement. Portchain creates solutions to improve efficiency and sustainability for container shipping through Portchain Connect, a platform that allows sharing and receiving vessel schedule data while reducing delays in information transmission.

CMA CGM + SUEZ ink biomethane supply deal

CMA CGM + SUEZ ink biomethane supply deal: French shipping Giant CMA CGM has inked an MoU with global waste management firm SUEZ to source renewable fuels for CMA CGM vessels as part of a joint investment structure to biomethane fuel production facilities, according to a statement. The agreement, which will have funding of EUR 100 mn for a first stage, will see SUEZ supply up to 100k tonnes of biomethane per year by 2030, which will be used by CMA CGM for its gas-powered ships. The partnership will also foster joint research and development (R&D) to develop innovative tech for the production of biofuels through hydrothermal gasification.

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OTHER STORIES WORTH KNOWING THIS MORNING-

Belgian port using sensor to monitor emissions: A sensor has been installed at Belgium’s port of Zeebrugge to monitor the type and amount of emission released by ships in the North Sea. (Belga News)

Calendar

OCTOBER

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.

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

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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