Mawani taps SGP, RSGT for SAR 2.2 bn contracts to build, operate eight port terminals

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What we're tracking today

TODAY: Mawani taps two players for port terminals projects + widespread airflights disruptions

Good morning, friends. We have a brisk read this morning, with investment and trade updates from Saudi Arabia and Egypt. But first, an update on the widespread air flights disruptions caused by regional tensions…

THE BIG LOGISTICS STORY- Airspace disruptions above Gulf skies send Airlines scrambling: Tensions in the region have wreaked havoc for the aviation industry, sending a growing list of regional and global airlines scrambling to reroute and reschedule flights amid increasingly unsafe skies in the region. Flights transiting through Doha and Dubai — both essential international transit hubs for Asia-Europe-America flights — were among the most impacted, with Air India recently suspending all flights heading to Europe and North America.

Peaking: The disruptions peaked in the early morning after Iran launched strikes against the US’ Al Udeid military base in Qatar, prompting a brief airspace closure in Qatar, UAE, Bahrain, and Kuwait. About 20 Doha-bound and four Dubai-bound aircraft were diverted as a result of the strikes.

An end might be in sight: Hopes for calm are high this morning after the US President Donald Trump announced that Israel and Iran had reached a tentative ceasefire, hinting at a complete “end” to hostilities after 24 hours. However, Iran’s Foreign Minister Abbas Araghchi disputed the claims on X, saying that no ceasefire agreement has been reached as of 3:45 this morning.

We already have some good signs: Flights to and from the UAE and Qatar should now be back to normal, Bloomberg reports. British Airways, which had suspended flights to Dubai earlier on Monday, has also resumed flights, the National reports. Bahrain and Kuwait also announced they are reopening their airspace this morning.

REMEMBER- Airlines have been choosing to fly through Afghan airspaces over traditional airspaces in the region to bypass jamming and safety risks caused by the Israel-Iran conflict. This has caused a 500% surge in flights through Afghanistan's airspace last week, averaging 280 flights per day since Israel’s strikes on 13 June, compared to 50 flights per day in May.

This story grabbed a lot of ink in int’l press: Reuters | CNBC | USA Today | BBC | The Guardian

HAPPENING TODAY-

Mobility Live Middle East returns to Dubai on Tuesday and Wednesday at the Dubai World Trade Center, spotlighting future transport. The trade event will bring together regional mobility leaders for keynotes, panel sessions, and an expo featuring autonomous tech, smart cities, and public transport.

Middle East Rail will run in parallel on Tuesday and Wednesday at Dubai World Trade Center, bringing together transport ministries, rail operators, and tech firms for discussions and exhibitions on high-speed networks, digitalisation, and transit infrastructure.

HAPPENING THIS WEEK-

Global Transport Connectivity Forum will kick off in Istanbul, Turkey, on Friday, 27 June and run to Sunday, 29 June. The forum will address climate change, transport connectivity, and global transport corridors. It will host ministers, industry leaders, and executives of financial institutions and organizations.

WATCH THIS SPACE-

[wwtt4] #1- Greece, Japanese firms advise caution around Hormuz: Greece’s Shipping Ministry warned vessel owners to reconsider using different routes to the Strait of Hormuz until regional geopolitical tensions settle, Bloomberg reports, citing a document sent to unnamed vessel owners it has seen. Greece — which tops the world in oil tanker capacity — also asked shippers in the country to take high precautionary security measures while keeping a distance from Iranian waters if they chose to brave the strait. The warning comes amid mounting concerns that Iran might move to block the critical maritime chokepoint.

Japanese logistics company Nippon Yusen and trade conglomerate Mitsui have ordered their vessels to decrease transit time in the strait “whenever possible, depending on their schedules,” in a bid to limit risk exposure, Reuters reports, citing an unnamed Nippon Yusen spokesperson. Both firms said they will continue to provide their vessels with information through surveillance.

Meanwhile, shipping giants like Maersk and Hapag-Lloyd will continue to sail through the Strait of Hormuz, but they said that they might reconsider their decision as they monitor the situation, Reuters and Al Arabiya reported on Sunday.

Evidence of reduced traffic in the maritime route is already emerging, with the number of empty tankers entering the Arabian Gulf decreased by 32% w-o-w and loaded tankers leaving the area falling by 27% compared to early May, Reuters reported citing Singapore-based broker Sentosa Shipbrokers’ data. “If we begin to see Iranian attacks on shipping, it will most likely further reduce the number of ships transiting through the strait,” head of security of the shipowners association Bimco Jakob Larsen told CNBC News.

ICYMI- At least 900 vessels in the Arabian Gulf and the Strait of Hormuz reported disrupted signals last week, increasing the risk of collisions and disruptions at the straits of Hormuz and Bab El Mandab. Signs of “extreme jamming” were also detected from Iran’s Bandar Abbas Port.

#2- Egypt pushed back resuming natural gas supplies to industrial plants by another week, with flows now expected to start gradually before the end of June, a government official told AlArabiya Business. The delay comes amid halted imports from Israel, which now stand at 40-50 mcf/d — down from 90 mcf/d last week and far below the 650 mcf/d previously expected for this week.

Fertilizer and petrochemical plants are on standby to restart operations once gas begins flowing again, two industry sources told the regional news outlet, noting that most facilities have completed scheduled maintenance and are in close coordination with the Oil Ministry and Egas to resume operations. Supplies could reach some plants starting Friday, with full pre-shutdown volumes expected by mid-July.

What’s next? A new regasification unit — likely the Energos Power — will go online in Ain Sokhna within days and will operate alongside the existing Hoegh Gallant unit, the official said. Together, the two vessels are expected to supply 1.4-1.5 bcf/d to the domestic market — including 200 mcf/d earmarked for Jordan under existing infrastructure-sharing agreements.

MARKET WATCH-

#1- Oil prices dipped this morning amid hopes for eased tension in the region after US President Donald Trump announced an Iran-Israel ceasefire, Reuters reports. Brent crude futures fell USD 2.08 to USD 69.40 a barrel by 03.30 GMT, while US West Texas Intermediate (WTI) futures saw an uptick of USD 2.03 to trade at USD 66.48 a barrel. This came after the rates saw a sharp decline in an earlier session, before settling this morning at their lowest level in over two weeks.

#2- Baltic index dips once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 0.9% to 1,674 points on Monday. The capesize was down 2.1% to 2,818 points, while the panamax index increased 0.9% to 1,362 points. The small supramax index inched up 6 points to settle at 979.

#3- Coal to benefit from LNG supply scare: Geopolitical threats to LNG supply via the Strait of Hormuz have surged LNG spot prices in Asia — the largest LNG consumer — distinguishing thermal coal as an attractively affordable alternative, Reuters reports. Rates for LNG heading to North Asia have risen from USD 12.60 per mn British thermal units (mmBtu) to reach their highest point in four months at USD 14.00 mmBtu, whereas Australia’s thermal coal prices — favored by Japan, South Korea, and Taiwan — maintained a 13% cheaper rate at USD 12.18 mmBtu despite surging to a four-month high as well, the newswire reports, citing data from globalCoal and LSEG.

Who are the world’s biggest coal suppliers and consumers? Australia, Indonesia, and Russia are historically the world’s top coal exporters, according to data ranging 1978-2020 by the International Energy Agency. In 2023, the Asia-Pacific region accounted for 84% of the total coal trade, whereas Atlantic coal trade declined due to Western bans on Russian coal, reduced European demand, and increased Asian (especially Chinese) import demand.

IN CONTEXT- While LNG and crude flows haven’t seen any disruptions yet from Hormuz, closing the strait would impact the Qatari and Emirati flows of the chilled fuel — which together account for about 20% of the global LNG market.

DATA POINTS-

Algeria is expected to see its non-oil exports surpass USD 7 bn in 2025, due to a rise in demand for the country’s products abroad, Algerian newspaper Echorouk reported on Sunday, citing President of the National Association of Algerian Exporters Tarek Boulmerka. This comes on the back of doubling demand for Algerian ceramics in Tunisia and Libya, and a rise in demand for tires throughout Africa, Europe, and the US, according to the news outlet. African countries had the most demand for Algerian household appliances, whereas MENA trade partners sought Algeria’s fruits, vegetables, and manufactured food products.

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CIRCLE YOUR CALENDAR-

ASEAN Ports and Logistics will take place on Tuesday, 1 July till Thursday, 3 July in Jakarta, Indonesia. The conference will bring together industry leaders and keynote speakers for discussions in the transport and logistics sector — gathering some 400 delegates from governments, companies, and developers in the shipping, ports, cargo, trade, and rail industries.

Intermodal Africa will kick off on Tuesday, 22 July and run till Thursday, 24 July in Beira, Mozambique. The forum will host over 300 senior government officials, industry leaders, academics, senior executives, and harbor masters in the ports, shipping, and logistics sector. Attendees and speakers will be coming from countries across the Middle East, Africa, and Europe.

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

Mawani signs SAR 2.2 bn contracts for terminals at eight ports

Mawani taps local players for cargo terminals: The Saudi Ports Authority (Mawani) — in partnership with the National Centre for Privatization and PPP — awarded SAR 2.2 bn contracts build, operate, and transfer (BOT) port terminals to Saudi Global Ports (SGP) and Red Sea Gateway Terminal (RSGT), it said in a statement yesterday.

The details: The 20-year concession contracts concessions cover multipurpose cargo terminals at eight major ports across the Kingdom, where SGP will develop, operate, and manage terminals on the East Coast, while RSGT will oversee operations on the West Coast.

SGP will handle eastern ports: SGP — a JV between the Public Investment Fund and Singapore’s PSA International — will invest SAR 700 mn (c. USD 187 mn) to revamp and operate multipurpose terminals in four Eastern ports, including King Abdulaziz Port in Dammam, Jubail’s Commercial Port, King Fahd Industrial Port, and Ras Al Khair Port, the company said in a press release (pdf) yesterday.

RSGT will handle western ports: RSGT — backed by the PIF and Sisco Holding — will invest some SAR 1.6 bn over 20 years to upgrade and operate the multipurpose terminals in four western ports — Jeddah Islamic Port, Yanbu’s Commercial Port, King Fahd Industrial Port, and Jazan Port, RSGT’s parent company Sisco Holding said in a press release (pdf).

RSGT plans to invest SAR 672 mn (USD 180 mn) in the first five years alone to enhance infrastructure, equipment, and technology in the four western ports. These facilities are expected to handle an annual average of 3 mn tons of general cargo, 13 mn tons of bulk, 13.5 mn tons of liquid bulk, 710k vehicles, and 8 mn heads of livestock, the release added.

Where things stand now for the operators: SGP — which reportedly tapped banks back in December to arrange an upcoming IPO — is the operator of both deepsea container terminals at King Abdulaziz Port Dammam, Zawya reports. RSGT already operates Jeddah Islamic Port, according to its website. The company is also planning expansion elsewhere, as it is eyeing a potential bid to develop and operate a fresh produce terminal at South Africa’s Durban port.

DATA POINT- Ports supervised by Mawani handled 625.4k TEUs in April 2025, up 13.4% y-o-y. The growth was driven by a 22.5% y-o-y jump in imported containers to 259.4k TEUs and an 8% rise in exported containers to 233.8k TEUs. Transshipment volumes also saw a 7.5% uptick to 132.2k TEUs. Meanwhile, overall cargo volumes declined 2.4% y-o-y to 20.5 mn tons during the month.

Egypt’s Finance Ministry finalizes new amendments to customs laws

The Egyptian Finance Ministry finalized new amendments related to customs facilitation measures that are set to be launched in the coming weeks, a government source told EnterpriseAM. The new amendments are set to address changes to three customs laws, aiming at streamlining customs facilitation and collections while reducing evasion risks.

ICYMI- The ministry is set to finalize a new package of custom facilities within the coming weeks, Finance Minister Ahmed Kouchouk said previously.

What we know: The amendments include 15 amended articles and 3 newly introduced articles that pertain to installment payment of customs duties, activation of a risk management system, and adjustment of allowable wastage rates for manufacturers to ease regulatory burdens, our source said. The amendments also address feedback from the Federation of Egyptian Industries and the broader industrial community, intending to protect local manufacturing, maintain employment levels, and preserve production activity.

What the changes will entail: The new amendments aim to streamline customs operations in a number of ways, enabling dispute resolution, waiving fines, and resolving issues related to the retention of import invoices for post-clearance audits in a way that satisfies the industrial sector and reduces potential new disputes. The amendments also aim to reduce customs clearance time to two days from eight in the initial phase, until clearance can eventually happen within hours.

The amendments also include:

Launching a new pricing platform for frequently imported goods to standardize customs valuation and avoid inconsistent pricing estimates across customs points;
Enabling six-month installment payments for customs duties, with no late fees for the first three months;
Introducing a wastage allowance of up to 3% for free zones to resolve longstanding issues and reports filed by the Industrial Control Authority against manufacturers.;
Postponing customs duty collection via the Nafeza system until goods arrive to help ease financial pressure on manufacturers;
Expanding the list of acceptable guarantees from importers, including ins. documents;
Accepting electronic payments through various digital methods, in line with the government’s digital transformation strategy;
Updating the risk management system and allowing easier conversion of provisionally cleared shipments into production inputs without added costs to facilitate Egyptian exports.

REFRESHER- The cabinet greenlit the formation of a committee to implement a risk management system for customs clearance back in April, with the committee tasked to develop the framework for implementing the system, monitor its execution, and propose legislative changes.

Planned expansions to the so-called white list have also seen progress: A survey is underway to identify companies and customs clients with no prior record of evasion or customs value manipulation to add them to the white list, which currently includes a limited number of entities. The list is expected to expand significantly upon completion of the survey, providing listed entities with the ability to benefit from expedited customs clearance and inspection, which will in turn support local investment.

AND- FX collection rules for exports expanded: The Investment Ministry added 65 new items to the list of goods that local exporters must fully collect payment for in foreign currency before shipping abroad, according to a decision published in the Official Gazette. The regulation requires exporters to receive the full value of these goods in convertible currencies — such as USD or EUR — through local banks authorized by the central bank and using secure methods like letters of credit and wire transfers. Exporters must provide proof of payment to customs authorities before shipment. The move is part of broader efforts to ensure FX flows through the banking system.

The new items span a wide range of commodities, including flour, fertilizers, metals, petroleum products, chemical compounds, waste and scrap materials, and electrical connectors, among other goods.

PLUS- Gov’t is also shaking up the way import fees are collected: The Central Bank of Egypt instructed banks to comply with a recent Investment Ministry decision that shifts import fee collection responsibilities from banks to the Egyptian Customs Authority, Al Mal reports. Customs officials will be required to collect administrative import fees determined by the ministry and transfer them to the ministry’s account at the CBE, a role previously carried out by local banks. The release of goods is contingent upon the payment of these fees.

Updates on e-commerce, aviation, projects, and warehousing from across the region.

E-COMMERCE-

Cainiao lands in the GCC: Chinese Smart logistics provider Cainiao launched express delivery services in the UAE, Oman, Bahrain, Qatar, Kuwait, and KSA, according to a statement here and here. The move looks to allow e-commerce platforms to complete orders under a unified express network spanning across the GCC region. The firm will operate using a range of air and ground shipping solutions, ensuring air freight delivery in three days between GCC nations, and six to eight days globally. Shipping costs will be secured at USD 1 per kg.

PROJECTS-

OQGN taps Petrojet for Fahud-Suhar pipeline: Omani state-owned OQ Gas Networks (OQGN) has awarded Egyptian petroleum projects firm Petrojet an engineering, procurement, and construction contract for the 42-inch second Loop Line Fahud-Suhar pipeline, according to a disclosure (pdf) to the Muscat Stock Exchange. OQGN also inked a contract with India-based Jindal Saw Limited to supply piping for the project, according to the disclosure.

About the pipeline: The 193-km gas pipeline is set to cost OMR 105 mn and add about 9 mn cbm per day in gas pumping capacity to the country’s northern gas network. It aims to target the increasing energy needs of the Suhar and Ibri regions, Oman Observer reported late last year. Construction is expected within 24 months.

STORAGE + WAREHOUSES-

GWC sets up shop in Dammam: Qatar-based logistics firm Gulf Warehousing Company (GWC) has launched a wholly-owned subsidiary in Saudi Arabia, according to a disclosure to the Qatar Stock Exchange. The subsidiary — dubbed GWC ENR — is based in Dammam. No further details were given on the subsidiary’s next moves.

Latest regional forays: GWC’s energy logistics subsidiary GWC Energy Services inked an MoU with Aramco-backed Offshore Fabrication Company late last year to develop 100k sqm of grade-A logistics and storage facilities at Saudi Arabia’s Ras Al Khair Industrial Port.

AVIATION-

SolitAir launches routes to Kuwait, Bahrain: Dubai-based air cargo operator SolitAir has kicked off routes connecting Dubai World Central (DWC) to Kuwait International Airport (KWI) and Bahrain International Airport (BAH), according to a press release. Al Hayat International for Air Shipping will act as SolitAir’s general sales agent in Kuwait, and International Agencies Co Ltd (Intercol) as its general sales agent in Bahrain. The airline’s chartered routes include destinations like Riyadh, Dhaka, Hong Kong, Mumbai, Chennai, Karachi, and Istanbul.

Analyst warns of Qantas Airlines’ USD 13 bn fleet replacement bill

Analyst warns of Qantas bearish outlook despite stock rally: Financial firm Morningstar’s equity analyst Angus Hewitt has sustained its bearish outlook for Australia’s Qantas Airlines, citing the airline’s hefty fleet modernization bill of AUD 20 bn (USD 13 bn), Bloomberg reports. Hewitt is the sole analyst out of sixteen watching Qantas to maintain a ‘sell rating’ for the company’s stock, which has seen a robust rally, rising by 65% over the last year. Qantas was ranked as the industry’s fourth top performer on Bloomberg’s World Airlines index.

The argument: Qantas has ordered nearly 200 new aircraft with manufacturers Boeing and Airbus to accommodate demand for direct flights from Sydney to New York and London. Hewitt argues that the cost of modernization — more than double the forecasted net profit for the same period — is too hefty and would cause “medium-term headwind.” The bill also exceeds Qantas' current market value of AUD 15.5 bn, making the replacement a "massive capex bill,” the news outlet reports, citing an email from Hewitt.

ICYMI- Qantas is set to face tougher competition soon: Qatar Airways received approval from the Australian government to acquire 25% of Qantas’ top competitor — Virgin Australia — back in March, a move that Qantas previously objected to last year.

Calendar

JUNE

18-27 June ( Wednesday-Friday): The International Maritime Organization’s Maritime Safety Committee meeting, London, UK.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

25-26 June (Wednesday-Thursday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

22-24 July (Tuesday-Thursday): Intermodal Africa, Beira, Mozambique.

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

25 September (Thursday): World Maritime Day 2025.

30 September - 2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

13 - 17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh.

EVENTS WITH NO SET DATE

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 two of Jafza Logistics Park to be completed.

2026

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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