French, Egyptian consortium tapped to build a EUR 540 mn Cairo-Alexandria rail link

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What we're tracking today

TODAY: A EUR 540 mn ticket for Alexandria-Cairo rail link + GulfNav issues AED 613 mn sukuk for Brooge debt

Good morning, folks. The news cycle slowdown continues as we get closer to the weekend. Leading today’s brisk read is a big project update from Egypt after the government finally tapped the consortium that will develop the long-anticipated Cairo-Alexandria rail freight corridor. PLUS: Debt and trade updates from the UAE, Saudi, and Syria. Let’s dive right in.

WATCH THIS SPACE-

#1- Top Ships eyes USD 200 mn Dubai portfolio: Greece-based international tanker operator Top Ships is weighing a move into Dubai real estate, signing a letter of intent to potentially acquire a portfolio worth more than USD 200 mn from a company affiliated with CEO Evangelos Pistiolis, according to a press release. The firm said Dubai’s property market is “one of the world’s most attractive.”

The option terms: Top Ships will receive an exclusive right to buy all or part of the portfolio — which includes residential assets — at a 10% reduction to fair market value, based on two independent valuations. The company will make an advance payment of USD 23.5 mn before 31 December 2025, credited against the purchase price if it proceeds or otherwise refunded. A 90-day option window, which will begin once this payment is made, will include due diligence procedures.

#2- UAE joins US-led AI supply chain push: The UAE will be among several countries attending a meeting hosted by the US at the White House on 12 December to discuss boosting critical mineral and semiconductor supply chains, Bloomberg reports, citing US economic affairs state undersecretary Jacob Helberg.

On the agenda: The US is looking to secure agreements in sectors like advanced semiconductor manufacturing, critical minerals, AI infrastructure, energy, and logistics. Other countries attending include Japan, South Korea, Singapore, the Netherlands, the UK, Israel, and Australia — all of whom either possess critical mineral resources or hosting big semiconductor firms.

The summit comes as the US looks to reduce allied nations’ reliance on China in these key areas, especially in AI, Helberg said. The initiative builds on similar efforts from previous administrations to counter Chinese dominance in the sector — with limited success given that over 90% of rare earth resources are located in China.

So far in US-UAE cooperation: The US recently gave the green light to export 35k Nvidia chips to state AI giant G42, after a broader ruling allowed the UAE to use USD bns worth of Nvidia chips in US-linked data infrastructure. The move comes alongside Emirati plans to invest in US AI infrastructure, as well as partnerships between G42 and US tech giants, including Nvidia, to develop a 5 GW UAE-US AI campus in Abu Dhabi — the first deployment under the US’ wider USD 500 bn Stargate initiative.

#3- South Africa takes CMA CGM, Maersk to court? Global shipping giants CMA CGM and Maersk are reportedly facing prosecution after South Africa’s antitrust body escalated a decade-long price-fixing probe — alleging they colluded on a general rate increase for cargo transported between South Africa and Asia, as well as routes linking the country with West Africa, from 2008 to 2018, Bloomberg reports. The probe comes amid efforts to push for competitive pricing and cut logistics costs for South African trade.

What we know: The commission stated that this conduct inflated shipping costs on core lanes such as Shanghai-Ningbo, Shekou-Durban, Durban-Hong Kong, and Qingdao-Durban. The investigation also names MSC, Pacific International Lines, Mitsui, Evergreen, Cosco, and K Line Shipping.

MARKET WATCH-

#1- Oil prices saw a slight drop this morning amid mixed signals on the outlook of future supply, Reuters reported. Brent crude futures rose USD 0.02 to trade at its lowest since October with USD 62.47 / bbl as of 04:27 GMT, while US West Texas Intermediate (WTI) was down USD 0.03 to USD 58.67 / bbl.

#2- Baltic index continues its upward streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.7% to 2,600 points on Tuesday, driven by the larger-size segment. The capesize gained 1.5% to 4,633, while the panamax index shed by 1% to 1,915 points, and the smaller supramax index lost 1 point to 1,441.

DISRUPTION WATCH-

Black Sea navigation sees heightened risk after another attack off Turkish coast: A Russian-flagged tanker traveling from Russia to Georgia was hit by a drone while off the Turkish coast on the Black Sea, Reuters reports, citing Turkey’s maritime authority. The attack on the Midvolga-2, which was carrying sunflower oil, occurred just days after two sanctioned tankers were struck by Ukraine a few dozen nautical miles off Turkish coasts while en route to the Russian energy port of Novorossiysk.

Turkey stands firm, but Moscow may hit back: Turkish Premier Recep Tayyip Erdogan blasted the attacks on Monday, warning they are unacceptable and jeopardize navigation safety in the waterway and Turkey’s Exclusive Economic Zone. Meanwhile, Russia is expected to retaliate with attacks on Ukrainian ports, and its shipping activities in the Black Sea, Control Risks Maritime Security Analyst Arran Kennedy told Lloyd’s List.

The chaos is driving up ins. rates: War risk ins. rates — calculated based on the value of the ship — covering the waterway went up after the attacks, with rates for Ukrainian port calls rising by 0.1% to reach 0.5% compared to last week’s 0.4%, Reuters reports, citing industry sources. Meanwhile, war risk ins. for Russian Black Sea ports rose to a range between 0.65% and 0.8% — up from 0.6% quoted last week. These premiums will influence the trade of commodities conveyed via the Black Sea, notably oil, oil products, and grain.

DATA POINTS-

#1-Boeing projects Africa’s passenger traffic is set to surge: African airlines’ fleets are set to more than double in size by 2044 to about 1.7k jets, including 1.2k of new deliveries — largely driven by an average annual growth of 6% in passenger traffic, Boeing predicts in a recent forecast. The US-based jet maker expects the surge in Africa’s fleet size to drive USD 130 bn worth of demand for services, requiring 74k pilots, technicians, and cabin crew over the next 20 years.

Budget carriers to lead the charge: Narrow-bodies are set to account for 70% of the new additions, reflecting the growing market potential for low-cost carriers in the region. The forecasted surge will be driven by rising demand for domestic and international short-haul flights — primarily to serve a growing demand for new routes within the continent, as well as to Europe and the Middle East, Boeing’s Managing Director of Commercial Marketing for the Middle East and Africa Shahab Matin said.

#2- Russian Railways’ cargo volumes are slipping: Cargo volumes handled by the state-owned Russian Railways fell 5.6% y-o-y to around 1 tn tons from January to November, Reuters reported, citing a Russian Railways statement. The slip is another sign of a slowing Russian export-driven economy, which already fell to a 15-year low in 2024.

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CIRCLE YOUR CALENDAR-

Egypt will host the International Procurement Supply Chain Conference on Saturday, 6 December in Cairo. The event will gather over 1k delegates, more than 400 organizations, and over 30 global speakers to discuss the future of trade through keynotes and panel discussions. The discussions will center on Egypt’s transformation in the logistics sector, the future of smart ports and supply chains, as well as digital ecosystems.

Morocco is hosting the Rail Industry Summit on Tuesday, 9 December until Wednesday, 10 December in El Jadida. The two-day event will gather 130 exhibitors, 250 companies, and over 900 participants from 15 countries. It will feature business meetings, high-level conferences, and workshops focused on new market trends and future strategies.

Saudi Arabia is hosting the Saudi Airport Exhibition on Tuesday, 16 December until Wednesday, 17 December in Riyadh. Upwards of 10k global attendees are expected to participate in the event from over 100 countries. The two-day event will focus on airport-related innovation, and will feature participation from Saudia, SolitAir, and Amadeus.

Saudi Arabia is hosting SkyMove Air Cargo MENA on Tuesday, 27 January until Wednesday, 28 January in Riyadh. The event is expected to welcome more than 600 attendees from over 60 countries. The event will unite the whole air cargo value chain, analyze market trends, mitigate potential challenges, and leverage emerging windows.

The UAE is hosting the Middle East ProcureTech Summit on Tuesday, 27 January until Wednesday, 28 January in Dubai. The two-day event will spotlight the shifts in the procurement sector, paying special attention to digital and cloud procurement, and provide a networking platform for executives and industry innovators.

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

Egypt taps French-Egyptian consortium to build EUR 540 mn Cairo-Alexandria railway

EUR 540 mn Cairo-Alexandria freight railway awarded: The Egyptian government has awarded the EUR 540 mn Cairo-Alexandria freight railway bypass to a consortium of French and local firms, a government source told EnterpriseAM. The move advances one of seven logistics corridors the government is looking to develop in the years to come — part of a major plan to boost freight capacity from 8 mn tons a year to 13 mn tons a year by 2030.

The details: The project will be implemented in three phases — kicking off halfway through 2026 and slated for completion in 2030. When the project was first announced a few years back, it was said that it would be able to handle 15 container trains per day by 2030 and up to 50 trains by 2060.

Who’s involved? The alliance features French rolling stock company Alstom, Egyptian engineering firm Concrete Plus, and Elsewedy Electric subsidiary Rowad Modern Engineering, sources told Asharq Business. The consortium will be responsible for the design, supply, and operations of the project’s mechanical systems, signals, and central control systems.

There was a lot of competition for the project, with five international firms reportedly qualifying for the project back in 2023.

And who’s paying? The project will be fully funded by the World Bank’s International Bank for Reconstruction and Development, our source said.

It’s been a long time coming: The project has been on our radar since 2022, after the World Bank approved a USD 400 mn financing agreement to boost the performance of the country’s transport and logistics sectors and support a shift towards low-carbon rail systems. It appears the amount agreed upon has increased to accommodate the project’s updated price tag.

Alstom’s coming in heavy: Alstom upped its investment ticket for its Borg El Arab railway manufacturing complex, up to EUR 100 mn, Egypt Managing Director Ramy Salah Eldeen told EnterpriseAM on the sidelines of TransMEA last month. The firm initially inked a land usufruct agreement with the General Authority for Land and Dry Ports for the project in April — at the time the project had a EUR 80 mn price tag.

GulfNav closes AED 613 mn sukuk to refinance Brooge’s debt

GulfNav moves to clear Brooge’s debt: GulfNav closed an AED 613 mn (USD 167 mn) senior secured three-year sukuk to refinance the USD 144 mn outstanding bonds of its now-wholly-owned subsidiary Brooge Petroleum & Gas Investment (BPGIC), according to a press release (pdf).

The move is part of a broader capital-optimization push following last week’s takeover, with the new facility not only refinancing BPGIC’s legacy debt but also bankrolling a fresh expansion of storage capacity at the Port of Fujairah. No details were provided on pricing, investor participation, or listing venue, suggesting the transaction is unlisted.

ICYMI- GulfNav closed its long-delayed AED 3.2 bn full acquisition of Nasdaq-listed Brooge Energy’s assets last week, giving the DFM-listed shipowner full control of Brooge’s storage and blending facilities in Fujairah — one of the region’s key oil logistics hubs.

ADVISORS- Our friends at HSBC acted as sole arranger and underwriter. A&O Shearman advised HSBC, while Hogan Lovells advised the issuer on structuring, documentation, and closing.

KSA Al Jouf Cement Company inks SAR 37.5 mn export contract

KSA cement firm to export to Syria + Palestine: Saudi-based Al Jouf Cement Company will export cement to Syria and Palestine after inking a SAR 37.5 mn supply contract with Tuwa Development Company, according to a disclosure on Tadawul. The agreement will be in effect for one year, until 29 November 2026.

Big move for Al Jouf: The contract’s value accounts for over 14% of the cement company’s total revenues, and its financial impact is scheduled to begin as early as 4Q 2025.

SOUND FAMILIAR? The Saudi-based firm was one among the first GCC backers to Syria after the fall of Bashar Al Assad, inking a SAR 38 mn (c. USD 10.1 mn) contract to export cement and clinker goods to Syria back in January to cover shipments from 2 February 2025 until 28 February 2026.

KSA has been eyeing Syria: Major Saudi companies, including Acwa Power and telecom operator STC, plan to “drive bns of USD of actual capital to Syria within the next five years ,” to rebuild Syria’s energy, financial, and telecom sectors, Saudi-Syrian Business Council CEO Abdullah Mando told Reuters last month. The push comes after KSA, alongside other regional powers, led a wider global effort to remove full sanctions on Syria and revamp trade with the country this year.

DATA POINT- Syria has already attracted around USD 28 bn in pledged investments in the first half of the year, nearly USD 7 bn of which was from Saudi companies, Mando added.

Gulf Navigation’s CEO Ahmad Kilani resigns

Gulf Navigation’s CEO resigns: Shipping and maritime services firm Gulf Navigation’s CEO Ahmad Kilani (LinkedIn) has resigned from his position but will continue carrying out his duties during the transition period, according to a DFM disclosure (pdf). While the statement did not disclose the reason for his resignation, Kilani will remain a member of the company’s board of directors. The disclosure did not specify a successor for the role.

Oman’s OQGN expands pipeline network with OMR 40 mn acquisition

PIPELINES-

OQGN snags Area 61’s gas transmission pipeline: Omani state-owned OQ Gas Networks (OQGN) has signed an asset transfer agreement with Oman’s Energy Ministry to acquire the 36-inch gas transmission pipeline in concession Area 61 (Ghazeer, Phase Two) for OMR 39.9 mn, according to a statement (pdf). The asset –– which will be added to the company’s regulated asset base –– will extend OQGN’s network by 65 km.

ROADS-

Sharjah ruler Sultan bin Mohammed Al Qasimi approved a AED 90 mn project to upgrade a five-kilometer stretch of Sharjah Ring Road near Etihad Rail Station, optimizing traffic flow along Mleiha Road — where traffic has recently doubled — and expanding University City Bridge, The National reports. The plan is in its final design stages, with construction set to wrap up within a year.

REMEMBER- The emirate also announced last week plans to build of an AED 60 mn bridge next to Martyrs' Monument to improve traffic flows from Mleiha Road to Sheikh Mohammed bin Zayed Road, and from Sheikh Khalifa Street towards Mleiha Road.

AVIATION-

Ammroc, Egypt’s AOI partner on aircraft manufacturing + defense: The UAE’s Advanced Military Maintenance, Repair, and Overhaul Center (Ammroc) inked three MoUs with Egypt’s Arab Organization for Industrialization (AOI) to improve cooperation across aircraft components, engine manufacturing, and helicopter system maintenance, according to a press release.

The details: Ammroc will collaborate with three AOI entities — the Aircraft Factory, the Engine Factory and Digital Manufacturing Center, and the Helwan Factory for Advanced Industries — to develop production capabilities and enhance systems for fixed-wing aircraft and autonomous aerial systems, manufacture and treat engine parts, and expand MRO services for helicopter platforms. The agreements also aim to establish training and knowledge transfer programs and set up new production lines.

ZONES-

WuXi tapped to boost Qatar’s biopharma sector: Qatar Freezones Authority has inked an MoU with China’s biotech platform WuXi Biologics to strengthen Qatar’s biopharma ecosystem, according to a statement. The agreement will explore the establishment of an integrated research and manufacturing hub for the region.

RAIL-

Iran’s first train bound for Uzbekistan has departed fully loaded with Iranian freight, the Director General of Foreign Trade Shahriar Naghizadeh told IRNA on Sunday. Prior to this development, Iranian shippers sending commodities via Commonwealth of Independent States (CIS) nations were required to unload and reload their shipments onto CIS-owned trains or trucks. The train — consisting of 40 carriages — is heading to Uzbekistan’s Bukhara by way of Turkmenistan.

Lots of firsts for Iran’s cross-border rail connectivity: Iran’s Aprin dry port received the first scheduled Russian rail freight service in November, marking a milestone for the International North-South Transit Corridor (INSTC). The train carried Russian paper and pulp products on top of 62 containers, passing through Kazakhstan and Turkmenistan before reaching Iran in a twelve-day trip.

Iran’s rail ambitions continue to advance: Last month, Tehran signed a multilateral agreement with China, Kazakhstan, Uzbekistan, Turkmenistan, and Turkey to expand cross-border freight flows. It is also working with Russia to complete a EUR 1.6 bn rail link, the 162-km Rasht-Astara railway linking Russia, India, and Azerbaijan.

UK, US work out quid pro quo on pharma tariffs

UK exempt from US tariffs on pharma: The UK is now exempt from US tariffs on pharma products and meds technology as per a new agreement, but will pay more for US meds, Reuters reports. The new pricing policy stipulates that the UK will pay 25% more for US-made meds, which is expected to stimulate investment in both countries, United States Trade Representative Jamieson Greer said.

There’s more: The UK will also tweak the system through which it assesses drug value, by overhauling how the National Institute for Health and Care Excellence determines which meds are cost-effective for the National Health Service.

REMEMBER- Washington agreed to give the UK preferential treatment in cases of new US tariff schemes as per a trade agreement inked earlier this year. The Trump administration also spared Britain from any scrutiny arising from probes into national security threats, including the probes on pharma and semiconductors.

The clock is ticking on Washington’s tariff plans: The Trump administration is seeking to lock in as many trade agreements as possible and solidify tentative frameworks before the Supreme Court potentially lessens the law-related stature of US President Donald Trump’s tariff frenzy, King & Spalding law firm partner Ryan Majerus told the newswire. If the Trump administration falls behind in cementing its trade frameworks, disgruntled trade partners might leverage those law-related challenges against Washington in hopes of securing better terms, Majerus said.

Calendar

DECEMBER

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

FEBRUARY 2026

3-4 February (Tuesday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

9-11 February (Monday-Wednesday): Future Warehouses & Logistics, Dubai, UAE.

10-12 February (Tuesday-Thursday): Sustainable Aviation Future MENA, Dubai, UAE.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

20-22 February (Friday-Sunday): Dubai Freight Camp, Dubai, UAE.

24-25 February (Tuesday-Wednesday): Green Shipping Summit, Athens, Greece.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

5-6 March (Thursday-Friday): CargoIS Forum, Miami, United States.

9-13 March (Monday-Friday): WCA Worldwide Conference, Singapore.

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

18-19 March (Wednesday-Thursday): IntraLogisteX, Birmingham, United Kingdom.

18-19 March (Wednesday-Thursday): Green Marine Transport Conference, Amsterdam, The Netherlands.

26 March (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

APRIL 2026

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

16-17 April (Thursday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

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