Ain Sokhna’s Teda-Egypt Trade Zone is getting a USD 500 mn green chemicals plant

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What we're tracking today

TODAY: Egypt’s Teda Trade Zone gets new chemicals plant + Noatum adds 152 trucks to its fleet

Good morning, nice people. It is a brisk read this morning, with zones, trucking, and trade updates from Egypt, UAE, and Iraq. But first, an update on a US lawsuit attempting to put a halt to Trump’s tariff…

THE BIG LOGISTICS STORY- US firms take Trump tariffs to court: A group of five small US firms is suing to block US President Donald Trump’s sweeping tariffs spree on international trading partners, arguing that the tariffs are illegal under the International Emergency Economic Powers Act (IEEPA). “The Constitution gives the power to set tax rates—including tariffs—to Congress, not the President,” the firm’s Senior Counsel Jeffrey Schwab added.The lawsuit — filed by legal aid firm Liberty Justice Center — raises objections to Trump's comprehensive tariffs imposed on 2 April, as well as levies slapped separately against China.

Who are the plaintiffs? The five small businesses — who say they were “severely harmed” by the tariffs — vary from a New York wine and spirits importer to a Virginia-based education kits and musical instruments manufacturer.

This story grabbed a lot attention in int’l press: Reuters | Bloomberg | CNBC | CNN | The Guardian

WATCH THIS SPACE-

#1- The Red Sea Ports Authority is mulling awarding Taba Port development project to Suez Canal Authority’s subsidiary Suez Canal Ports Company, unnamed government sources told Al Borsa. The EGP 4 bn project — spanning some 52.2 acres in South Sinai — aims to reduce the time allotted for transport operations between Egypt, Jordan, and Saudi Arabia, the sources told Al Borsa. The port is also slated to give local exports access to new markets at lower costs and ease the reliance on traditional land routes.

Background: We first heard about the port in 2023 when Egypt completed feasibility studies for the new maritime port in Taba. Construction is targeted to begin sometime this year, but a formal date is not yet locked in. The port will become an imperative gateway in the Arab Trade Line logistics scheme, which will see cargoes hauled by ferries from Jordan’s Aqaba Port to Taba before being unloaded onto trains bound for the port cities of El Arish and Port Said, where they will be loaded onto container ships.

ALSO- Egypt is looking to attract some USD 4 bn in new Kuwaiti investments this year in various sectors, including logistics, ports, and roads, Asharq Business reports, citing two government officials. The investment — to be part of a wider USD 6.5 bn target through the end of 2026 — would cover other sectors, such as auto manufacturing, tourism, banking, real estate, pharma and medical equipment, renewables, infrastructure, agriculture, telecoms, petrochemicals, and food. All incoming Kuwaiti projects will be granted golden licenses immediately, one of the sources said, mirroring Prime Minister Moustafa Madbouly’s pledge to Saudi investors earlier this week.

#2- Algeria eyes trade bureaucracy revamp amid non-oil exports push: Algeria is moving to restructure its trade bureaucracy, announcing that the state’s agency responsible for promoting exports — the National Agency for the Promotion of Foreign Trade’s (Algex) — will be replaced with two state bodies — one overseeing imports management and the other managing exports, the Algerian Press Service reports here and here, citing Algerian President Abdelmadjid Tebboune as saying. The restructuring will begin by the end of May 2025.

In context: Algeria has been working on diversifying its exports beyond fossils, with non-oil exports hitting USD 7 bn last year. Algeria is targeting USD 10 bn in non-oil exports in 2025.

#3- Demand for cargo and air freight services has yet to weaken despite the recently imposed tariffs, VP at Emirates SkyCargo Badr Abbas said during a press conference at the World Cargo Symposium in Dubai, Khaleej Times reports. While industry players maintained that it’s too early to determine the full potential impact of tariffs on the industry, the general sentiment is that the industry will need to adapt and build “systems that can withstand future shocks, whether geopolitical, economic or environmental,” Abbas explained.

UAE’s aviation services provider dnata also indicated that the situation for ground handling remains unchanged so far, Khaleej Times reports, citing remarks by dnata’s CEO Clive Sauve-Hopkins.Some trade flow shifts are, however, still expected, and dnata is monitoring the situation to adapt accordingly, Sauve-Hopkins said.

The general sentiment is positive: It’s still “far too early to predict” the impact of tariffs, director-general at IATA Willie Walsh said, stressing his confidence that the industry will continue to maintain a strong front through the crisis.

#4- China slams the brakes on Boeing jet deliveries: China has ordered its airlines to stop taking Boeing jet deliveries and halt any acquisitions of aircraft-related equipment or parts from US companies, Bloomberg reports, citing people familiar with the matter. The move comes amid an intensifying US-China trade war that saw the Asian giant impose retaliatory tariffs of 125% on American products, effectively doubling the cost of US-made aircraft and their parts for Chinese customers.

Too late? Nearly 10 of the aircraft manufacturer’s 737 Max jets are already in line to join Chinese airlines’ fleets, with some already in a finishing center in eastern China’s Zhoushan, Bloomberg reports, citing data from Aviation Flights Group. However, many of these aircraft’s paperwork and payment may have been completed before China announced this decision, Bloomberg reports.

Market reax: The move caused Boeing's shares to fall by nearly 2.5% by the end of Tuesday trading. The US aircraft manufacturers has already saw its stock value fall by nearly 10% this year, Bloomberg reports.

MARKET WATCH-

#1- Oil prices dipped this morning amid continued uncertainties on the impact of US tariff policy, Reuters reports. Brent crude futures decreased by USD 0.18 to USD 64.49 a barrel, while the US West Texas Intermediate (WTI) was USD 0.16 down, reaching USD 61.17 a barrel by 03.15 GMT.

HSBC joins Bloomberg and Emirates NBD to lower its Brent crude price forecast, citing a rise in trade tensions and an expected reduction in global demand, Reuters reports. The bank predicts Brent crude oil prices will reach USD 68.5 per barrel for 2025 and USD 65 per barrel for 2026. The bank also lowered its global demand growth forecast to 0.7 mn bpd for 2025 and 0.8 mn bpd for 2026, as it predicts a 1% point hit to the global GDP.

#2- US natural gas futures fell by nearly 6% on Monday, hitting a nine-week record on the back of hiked output, Reuters reports. Gas futures for May deliveries on the New York Mercantile Exchange fell by USD 0.20 to USD 3.325 per mn British thermal units, the lowest since February. US average gas output increased to 106.3 bn cubic feet per day in April, up from March’s 106.2 bn cubic feet per day, according to LSEG data.

#3- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.5% to 1,263 points on Tuesday. The capesize slipped 4.1% to 1,753 points, while the panamax index surged 18 points to 1,208. The smaller supramax index gained one point to 937.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance and efficiency.

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

Befar breaks ground on Egypt’s first green chemical plant in Ain Sokhna’s Teda-Egypt Trade Zone

Egypt’s SCZone breaks ground on its first green chemical plant: Egypt’s first green chemicals plant is officially under construction, after China’s Binhua Group — or Befar — broke ground on their USD 500 mn chlor-alkali production facility in the China-Egypt TEDA trade zone, according to a statement. The big-ticket project is split between a USD 300 mn first phase — to be completed within 18 months — and a second USD 200 mn second phase. The facility — spanning 400k sqm — is forecasted to have a maximum production capacity of 100k tons.

Bolstering Egypt’s localization and import-substitution efforts: The factory is good news for the country’s import bill and localization efforts, given all the things produced through the chlor-alkali process used in the factory, such as chlorine gas, hydrogen gas, and sodium hydroxide. These key chemicals are used in numerous industries and everyday items. For example, Chlorine is used to purify water and make plastics, sodium hydroxide can be used to make paper, soap, and textiles, while hydrogen is used in fertilizers, refining crude oil, and more. “From an economic standpoint, the project opens up wide prospects for downstream and complementary industries, while enhancing Egypt’s capacity to secure its needs for strategic products used across various vital sectors,” said SCZone head Walid Gamal El Din.

Going green: The project gets its green credentials by relying on solar power, wind energy, electricity, and natural gas for its energy needs. “The project is not merely a large industrial facility but a fully integrated system built upon the principles of environmental sustainability, utilizing diverse clean energy sources to power the production units,” said Gamal El Din.

About Binhua (Befar) Group: The firm — established in 1968 — specializes in chemicals, petrochemicals, and new energy solutions. Befar dominates the Chinese markets for several products — including allyl chloride, granular caustic soda, and caustic soda flakes, exporting its products to over 100 countries.

Noatum Logistics acquires 152 trucks, bolstering its fleet to over 600 vehicles

Noatum Logistics boosts its regional freight forwarding operations: AD Ports Group subsidiary Noatum Logistics has acquired 152 long-haul transport trucks from Mercedes-Benz, with deliveries slated to be completed by the end of 2Q 2025, according to a statement. The value of the transaction was not disclosed.

What we know: The advanced trucks will add an extra capacity of some 6k tonnes, increasing Noatum’s fleet size from 450 vehicles to over 600. The trucks will handle containerized as well as reefer and loose cargo operations to support a plethora of industries, including energy, polymers, F&B, automotive, pharma, and healthcare.

Lower emissions footprint: The trucks feature Mercedes’ Euro 5 diesel engines, which boast fuel efficiency and Nitrogen Oxide and particulate emissions reduction.

REMEMBER- AD Ports’ freight-forwarding arm Micco Logistics was rebranded to Noatum Logistics Middle East early last year following its acquisition of Noatum in 2023. Micco Logistics has served as the freight forwarding arm of AD Ports Logistics Cluster since AD Ports acquired it in 2020.

The latest from Noatum: Noatum Maritime received its first LNG-powered RoRo vessel last month. The newbuild pure car and truck carrier — named Ugr Al Samha — spans 59.3k sqm, boasts 12 decks, and has a carrying capacity of over 7k CEUs. Earlier in February, Noatum Maritime entered into a JV with Turkish shipping firm Erkport to launch a new RoRo liner — dubbed United Global RoRo — that will link key ports in the automotive sector. The company is also developing Egypt’s Safaga terminal on the Red Sea, and has tapped Hassan Allam Construction to build the infrastructure back in December 2024.

Turkey, Iraq reach principal agreement for oil, gas pipeline project

Turkey + Iraq to set up oil, nat gas pipeline: Turkey and Iraq have reached a “principal agreement” on proposed pipelines delivering oil and natural gas from Basra to Turkey’s Ceyhan Port, Turkish Energy Minister Alparslan Bayraktar told S&P Insights on Sunday. The pipeline is slated to grant Basra smoother access to Mediterranean Sea ports.

The details: The pipelines will deliver goods from southern Iraq’s Basra northward to Haditha, and then to Silopi, a city on Turkey’s southern border — a route poised to circumvent the semiautonomous Kurdistan region in Iraq. The new infrastructure will connect with the Basra-Haditha pipeline approved by Baghdad at the close of 2024, which was reportedly slated to convey some 2.3 mn bpd of crude. Turkey’s existing Silopi-Ceyhan pipeline requires access to Basra’s resources to reach its target of transporting 1.5 mn bpd, Bayraktar said.

Big picture: The suggested pipelines will be part of the Iraq Development Road, an endeavour to link Iraqi logistics hotspots, like the Grand Faw Port, to Turkey via rail and road. Turkey said last year it would invest USD 17.9 bn in the project.

IN OTHER TRADE UPDATES-

Adnoc inked a 15-year sales and purchase agreement with Japanese firm Mitsui & Co. for the supply of 0.6 mn tons per annum of LNG, Wam reports. The LNG will be supplied from Adnoc’s low-carbon Ruwais LNG project.

Background: Mitsui acquired a 10% stake in the USD 7 bn Ruwais liquefied natural gas (LNG) project in July. Mitsui inked the supply agreement for 0.6 mn tons at the time. Mitsui is also a partner on the UAE’s only LNG export plant on Das Island.

Adnoc is big in Japan: The company is also supplying Japan's Jera with LNG under a USD 450 mn agreement from Adnoc's Das Island liquefaction facility.

Updates on cargo, supply chains, freight forwarding, and trade from the UAE, Egypt, Iraq, KSA and Iran

TRADE-

#1- Italian chemicals manufacturer Mapei has inaugurated the first phase of its second Egypt factory to produce chemical and insulation materials, CEO Veronica Squinzi said in a statement. The 30k sqm EUR 25 mn plant will initially export 15–20% of its output, with plans to gradually increase its export share over time.

The details: The first phase of the facility has a production capacity of 65k tons of dry cementitious materials and 55 mn liters of concrete and cement additives, Mapei Egypt General Manager Bassem Moustafa told EnterpriseAM. It houses eight production lines manufacturing ceramic and marble adhesives, grouts, concrete admixtures, and grinding aids for the cement industry, Moustafa added. Mapei had previously imported these products into Egypt, recording EUR 20 mn in local sales last year.

The new plant is hoped to become a regional production and export hub, leveraging Egypt’s trade agreements and regional integration with African nations, according to Squinzi. Mapei will direct the allocated exports to North and East Africa as well as the Middle East. Its first export shipment is scheduled for Kenya in the coming days, Moustafa said, adding that the plant’s export sales could reach EUR 2-4 mn by the end of 2024.

#2- Iraq + Iran to enhance bilateral cooperation: Iraq’s Oil Minister and his Iranian counterpart have inked an MoU to enhance cooperation and exchange expertise in several sectors, INA reported on Monday, citing a statement it has received. The move aims to bolster investment in Iraqi current gas projects amid plans by the country to become self-sufficient in petroleum derivatives.

Iraq has been on a roll: Iraq’s Basra Oil Company inked a contract on Monday with Italian oil and gas contractor Micoperi and Turkey’s ESTA to build an offshore oil export pipeline with a capacity of 2.4 mn barrels per day. Described as Iraq’s third offshore export pipeline, it will contribute to ensuring stable crude export from southern ports.

CARGO-

Emirates boosts its cargo routes to Japan: Emirates’ cargo arm Emirates SkyCargo has launched a weekly freighter service from Dubai International Airport to Japan’s Narita International Airport effective from 24 May — marking the first direct route between Narita and the region, according to a statement. The service will have a cargo capacity of 100 tonnes each way and is forecasted to mainly transport automobile and machinery parts, semi-conductor parts, and pharma products. Narita International Airport is Japan’s largest air- or seaport in respect to the value of cargo handled and is currently undergoing a development plan to become the region’s busiest cargo hub by 2030.

Bolstering its Asia links: The airline looks to boost its cargo capacity in the region in collaboration with new passenger routes to link Dubai to Cambodia, Vietnam, and China in coming months. The new service complements SkyCargo’s existing twice weekly freighter service to Japan’s Kansai International Airport. At present, the company operates in four destinations across East and Southeast Asia with some 57 freighter flights per week.

IN OTHER SKYCARGO NEWS-

(xxLK) Emirates to double its cargo fleet by 2026: Emirates SkyCargo is set to receive 11 new Boeing 777F aircraft by the end of next year to meet rising demand for air cargo services, VP at Emirates SkyCargo Badr Abbas announced at the World Cargo Forum, Wam reports. The move will more than double its current fleet of 10 carriers, which it operates in addition to its six chartered aircraft.

SUPPLY CHAINS-

Salic launches Sabil: PIF-backed Saudi Agricultural and Investment Company (Salic) launched the National Grain Supply Company (Sabil) to oversee grain storage and supply operations, deepen collaboration with the private sector, and facilitate growth in the agri-food sector across the KSA, according to the company’s post on LinkedIn.

The details: The decision is in line with the Cabinet decision to reform the General Grain Corporation, giving Sabil — a wholly owned PIF subsidiary — full control over the import, handling, and distribution of grain, operations of 14 grain silo with a combined capacity exceeding 2.7 mn tons, Aleqtisadiah reports.

Shared management: The General Grain Corporation will continue to play a regulatory and supervisory role after the handover, including key facilities at Jeddah Islamic Port, King Abdulaziz Port, Yanbu Commercial Port, and Jazan Port.

FREIGHT FORWARDING-

Four Winds expands global freight ties: Four Winds Saudi Arabia partnered with China-based global B2B trade platform JCtrans to secure direct access to freight forwarders in over 170 countries, according to a press release. The company said the association grants it access to Asian markets, particularly China, Vietnam and Taiwan.

An expected move: Four Winds has been on the lookout for new freight routes as alternatives to the Red Sea since February 2024, after ongoing regional violence has spilled over and disrupted shipping routes.

AVIATION-

Egypt’s flagship carrier EgyptAir is in the process of closing an agreement with PIF-owned aircraft lessor AviLease to lease a Boeing 737-800 aircraft, according to a statement (pdf) from AviLease’s legal counsel Matouk Bassiouny & Hennawy. The agreement would mark AviLease’s first transaction in Egypt.

REMEMBER- Egypt’s Finance Ministry recently provided a EGP 20 bn (c. USD 396.53 mn) financing facility to EgyptAir Holding Company to help expand the airline's fleet.

OTHER STORIES WORTH KNOWING THIS MORNING-

Qatar + Grenada ink aviation pact: Qatar and Grenada have signed an agreement to exempt certain airlines from air traffic limitations to passenger and cargo flights. (Statement).

Chinese Tiktokers seem to offer US buyers a way out of tariff price hike

Chinese TikTokers go viral, tell Americans to avoid tariffs by cutting out middlemen: Chinese TikTokers have gone viral for urging US consumers to skirt recent tariffs and exorbitant pricing by ordering luxury goods directly from Chinese producers, Bloomberg reports. Some videos claim that the high-end goods — such as those by Louis Vuitton and Nike — are manufactured in China quite cheaply, with US and international companies charging them steep margins.

Lululemon for USD 5? A Louis Vuitton bag for USD 50? TikTok influencer LunaSourcingChina claims she pays USD 5-6 for Lululemon yoga leggings that retail for more than USD 100 inside the US. Some are also selling what appear to be Louis Vuitton bags for USD 50, even though they sell for over USD 1k.

Brands are hitting back: Louis Vuitton says it does not manufacture in China, according to its website, while Lulumelon manufactures around 3% of its final goods in the country, a company spokesperson told the Independent.

A coordinated campaign? The TikTok phenomenon “appears to be a calculated attempt to undermine President Trump’s tariff policy on China by leveraging TikTok to promote Chinese manufacturing,” Rutgers University researcher Alex Goldenberg told Bloomberg.

Volume of goods through Chinese ports fall by 10% w-o-w, China + Vietnam to develop new railway links

China + Vietnam to develop new railway links: China and Vietnam inked an agreement to allow China to conduct feasibility studies for two new rail links, Reuters reported on Monday, citing a cooperation document it has seen. No deadline has been disclosed for the studies, though they are set to take place within 12 months of the selection of the contractor. The new links are separate from another railway connecting Vietnam’s northern coast to China’s Kunming, which is set to begin construction this year.

Some details: The agreement concerns an old railway that connects southern China’s Guangxi region to the Vietnamese capital of Hanoi, as well as another line that will link the port cities of Shenzhen and Haiphong. While there’s an established railway from Nanning in Guangxi to Hanoi, passengers and cargo need to switch trains due to Vietnam’s colonial-era gauge not being compatible with China’s modern high-speed tracks.

Chinese cargo flow bears the brunt of ongoing tariffs: The volume of goods processed weekly through Chinese ports slipped 10% w-o-w and 4% y-o-y to 244 mn tons last week, Bloomberg reports, citing Chinese Transport Ministry data. The amount of handled containers also decreased during the same period, while air cargo flights increased by more than 30% for the ninth straight week.

Calendar

APRIL

10 April (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East Exhibition and Conference, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

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

JULY

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

SEPTEMBER

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

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

OCTOBER

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

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

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.

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

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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