British International Investment writes USD 35 mn ticket for DP World’s DRC port

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TODAY: Algeria, Iraq to supply fuel to Lebanon amid energy crisis

Good morning, friends. It’s a slow day on the regional logistics front. The big story of the day is a commitment from the UK government’s development finance arm, British International Investment (BII), to invest up to USD 35 mn alongside Dubai-based port operator DP World in the first phase of the Democratic Republic of Congo’s first deep-sea container port.

ALSO- Algeria and Iraq are being good neighbors, committing to supply fuel to Lebanon amid a crippling energy crisis in the country. Read on for the details.

WATCH THIS SPACE-

#1- Algeria is supplying Lebanon with fuel to help ease the impact of a massive energy shortage, Reuters reports, citing a statement made on Algeria’s state radio. Lebanon's state electricity firm, Electricite du Liban, has said that its fuel supplies are exhausted and announced a nationwide power outage, adding that power would gradually return once a new fuel source was secured. No further details about the agreement with Algeria have been revealed.

Iraq says it remains committed to fuel supplies for Lebanon’s rescue: Iraq has dismissed reports that it had halted fuel supplies to Lebanon, explaining that there’s been a delay in supply due to technical and logistical issues, Iraqi government spokesperson Basem Al Awadi was quoted as saying by INA. “In the upcoming days, the new shipment will be loaded,” Al Awadi said. Iraq and Lebanon signed an agreement last year for Iraq to provide fuel supplies to power Lebanon’s electricity sector.

#2- Folk Maritime launching India-Middle East services: Saudi-based shipping company Folk Maritime is set to launch new services connecting India with the Red Sea and the Arabian Gulf in 4Q 2024, CEO Poul Hestbaek told Seatrade Maritime. The Public Investment Fund-owned company’s planned new services are in line with its belief that near-shoring and friend-shoring will keep growing in supply chains, Hestbaek said. “We are seeing this trade shift in this region… India is becoming a first supplier of many, many goods that have been produced elsewhere in the past. The short sea trade focus for Folk will drive us much faster, I believe, than the feeder requirements,” he said.

Going forward: Folk Maritime looks to order its own fleet of vessels with a tonnage capacity customized for inter-regional trade over the next three to four years, Hestbaek said. “We believe that by having some unique designs and some unique features on the feeder and short sea vessels that we will be operating, we can gain on cost competitiveness,” he said. Hestbaek revealed that Folk Maritime was currently stalling such purchases due to uncertainty over future fuel usage, as it targets the procurement of fuel efficient vessels. In the short term, the company will ensure its newly chartered ships are more efficient than those shuffled out.

What’s Folk? It’s a feeder and short-sea services provider operating feeder cargo services that connect Jeddah with the northern Red Sea and Port Sudan. With a focus on regional, short-haul routes, Folk is looking to expand service around the region, with Dammam slated to serve as a connection point to primary trade links.

#3- Abu Dhabi preps for advanced air transport? Abu Dhabi Airports expanded its partnership with Parisian airport operator Aéroports de Paris Group to develop ground infrastructure for advanced air transport applications in Abu Dhabi, according to a statement. The two parties previously inked an agreement at the Abu Dhabi Air Expo 2022, aimed at developing and implementing joint development plans in the aviation sector.

MARKET WATCH-

Oil prices fell on Monday amid talks on a ceasefire in Gaza and concerns over demand in China, Reuters reports. Brent crude futures were down 2.5% to USD 77.66 a barrel, while US West Texas Intermediate (WTI) fell 3% to USD 74.37 a barrel.

DATA POINT-

DP World and AD Ports invested over c. AED 6.1 bn in global trade infrastructure in 1H 2024, according to ِ Al Khaleej. AD Ports allocated AED 2.45 bn, while DP World’s spending reached AED 3.64 bn, focusing on ports, logistics, and marine services.

DP World plans to deploy nearly AED 7.4 bn in 2024, with investments planned at multiple international locations including the UK, India, Senegal, and Canada.

#2- The number of tenants at the UAE’s Dubai World Trade Center Authority Freezone (DWTCA) increased 21% y-o-y to 2.7k in 1H 2024, Wam reports. The number of registered companies in the zone rose 19% y-o-y to 2.8k during the period DWTCA broadened its freezone jurisdiction in 1H to encompass One Za’abeel, increasing the zone’s rental space.

#3- Egypt’s agricultural exports exceeded 5.6 mn tons from 1 January to 12 August 2024, according to a government statement. Top exports included citrus fruits at 2 mn tons, potatoes at 957k tons, and onions at 236k tons. Other top exports included grapes, green beans, sweet potatoes, mangoes, tomatoes, garlic, strawberries, guavas, and pomegranates.

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TRADE WATCH-

#1- India has reportedly requested a review meeting with the UAE to discuss key provisions of their trade pact, including issues related to rules of origin and concessional rates, Indian Commerce Secretary Sunil Barthwal was quoted as saying by news outlets (here and here). The meeting will aim to review their agreements on value add policies and custom duties, Barthwal said.

In context: The review request came on the heels of a sharp rise in Indian imports of gold and silver from the UAE under the agreement. The Global Trade Research Initiative (Gtri) has voiced concerns about India incurring huge revenue losses on the back of its commitment to apply zero tariffs on unlimited quantities of silver imports from the UAE within the coming eight years, it said in a report (pdf) published earlier this year. The agreement will also see them reduce duties on gold to zero in three years provided the imports contain at least 2% aluminum, according to the outlets.

By the numbers: The UAE accounts for nearly half of India’s silver imports, as importers made use of the lower 8% tax, with shipments surging from 133 tonnes to almost 2k tonnes over the first five months of 2024

CIRCLE YOUR CALENDAR-

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

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

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

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

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

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

UK commits USD 35 mn to Congo’s first deep-sea container port with DP World

BII to invest in DRC’s first deep-sea container port alongside DP World: The UK government’s development finance arm, British International Investment (BII), will commit up to USD 35 mn to build the first phase of the Democratic Republic of Congo’s first deep-sea container port with Dubai-based port operator DP World, according to a statement yesterday. The partnership will see BII become a minority investor in the port, the statement read.

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

What we know: The Port of Banana will have a draft of 17.5 meters and will be able to accommodate large container vessels. It will serve as a gateway for DRC’s imports and exports. The port is expected to cut the cost of trade in DRC by 12% and create up to 85k jobs. The project also looks to line up c. USD 1.12 bn in additional trade and USD 429 mn in increased economic output annually. Construction of the port kicked off in 2022, according to a DP World release at the time.

And more: The port’s capacity is expected to increase as it continues DP World builds out new phases. It will be connected to a freezone as well as multimodal logistics infrastructure to DRC’s urban centers, including Kinshasa through the cities of Boma and Matadi. The increased container trade in Western Congo is expected to make essential imported goods — including clothing, textile, food, pharma, and consumer products — more affordable.

What’s not clear: How large a stake BII will take or when DP World can draw down the funds.

BACKGROUND- The port operator inked a collaboration agreement with the government of DRC in December 2021 to develop the project which is set to boost the second-largest African country’s access to international markets and globally supply chains.

What they said: “This investment from BII will help transform DRC’s economy, establishing the country as a major trading hub on the continent, and providing a significant boost to local sectors from infrastructure, logistics and green energy,” UK Minister for Africa Lord Collins of Highbury was quoted as saying in the BII statement.

An expanding partnership: BII and DP World have worked to modernize and expand ports in Dakar, Senegal, Sokhna, Egypt, and Berbera, Somaliland. The three ports will improve access to vital goods for c. 35 mn people and allow an additional USD 51 bn to total trade by 2035, according to the statement.

It’s part of DP World’s Africa strategy: DP World said earlier this year that it plans to invest USD 3 bn in new port infrastructure in Africa over the next three to five years. The logistics giant is considering investments in the partial privatization of South African rail, port, and pipeline company Transnet, and the port of Lamu in Kenya, where there is also a privatization process underway. DP World broke ground on a new 18k ton edible oil terminal at Berbera Port last year, which will allow Berbera to service 16 meter draught ships and handle shipments of bulk edible oil.

Jordan’s ADC inks USD 125 mn agreement to upgrade Sheikh Sabah Al Ahmad LNG terminal

Aqaba’s Sheikh Sabah Al Ahmad LNG terminal getting a revamp: Jordan’s central development arm Aqaba Development Corporation (ADC) signed a USD 125 mn agreement with a consortium of international firms to develop Aqaba’s Sheikh Sabah Al Ahmad LNG terminal, Jordan News Agency reported yesterday. The upgrade comes under a plan to ensure the country’s energy supply in case of supply disruptions.

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

What we know: The agreement will see the construction of a beach conversion unit and several upgrades to the existing natural gas terminal. The project, which is set to be completed within 22 months, will also involve developing facilities capable of converting up to 700 mn cubic feet of LNG per day, which will then be pumped from the terminal into the Arab Gas pipeline, which feeds power generation stations across Jordan.

Who are the players? In addition to ADC, Jordan’s Energy and Mineral Resources Ministry, Planning and International Cooperation Ministry, and the National Electric Power Company all have seats at the table. The Kuwait Fund for Arab Economic Development is providing partial project funding through a soft loan.

About the terminal: Established in 2015 by ADC, Sheikh Sabah Al Ahmad Al Jaber Al Sabah is home to a floating storage and regasification unit with a 170 kg per cubic meter total capacity of LNG and on-shore facilities.

ADC has been busy: ADC and Aqaba Container Terminal signed an agreement in April to jointly manage and operate the inaugural hazardous materials yard within the Aqaba Special Economic Zone. ADC also inked a shareholder agreement earlier this year granting Maqta Gateway a majority 51% stake in the entities’ JV company, Maqta Ayla, which looks to integrate Maqta Gateway’s Port Community System at Aqaba Port.

Mumtalakat appoints new chairman, board for Gulf Air

Gulf Air Group gets new chairman + board: Bahraini sovereign wealth fund Mumtalakat has named Khaled Hussain Taqi (bio) as the new chairman of Gulf Air, it said in a statement. Taqi replaces former Industry, Commerce and Tourism Minister Zayed Alzayani (Linkedin), who had served as chairman since 2017. Taqi joined Mumtalakat in January as the fund’s managing director for its local impact investments division. He was earlier with Osool Asset Management, where he last served as chief investment officer.

AND- Mumtalakat also named new members of the board, including Shaikh Fahad bin Abdualrahman Al Khalifa (LinkedIn), Sara Ahmed Buhiji (bio, CEO of the Bahrain Tourism and Exhibitions Authority), Fatema Bashar Al Hasan (LinkedIn), Ali Moosa Shafiee (LinkedIn), Tarek Abdulaziz Sultan (LinkedIn), Charlie Foreman (bio), Faisal Ali Al Jalahma (LinkedIn), and Alaa Abdulkhaleq Saeed (bio).

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

Qatar Airways gets more slots at Heathrow Airport

AVIATION-

Qatar Airways snaps up Tarom slots at Heathrow: Romania’s flagship carrier Tarom has transferred its slots at London Heathrow Airport to Qatar Airways for an undisclosed sum, SimpleFlying reported, citing Airport Coordination Limited. The transfer — which will go into effect on 27 October — will see Qatar Airways operate eight day flights from London Heathrow to Hamad International Airport (DOH) as well as 10 weekly flights from London Gatwick to DOH.

AND- Emirates will deploy its retrofitted Boeing 777s to Zurich and Riyadh starting 1 October, it said in a press release .

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

LOGISTICS-

Egypt, Kuwait to cooperate on industry, transport, and logistics: Egypt’s Industry and Trade Minister, Kamel El Wazir, met with Kuwait’s ambassador to Egypt, Ghanem Saqr Al Ghanem, to explore and boost cooperation between the two countries on industry, transport, and logistics projects, according to an Egyptian Transport Ministry statement.

Remember: The National Bank of Kuwait Egypt earlier this month extended USD 93 mn worth of credit facilities to construction firm EDECS for the construction of the container terminal at Ain Sokhna Port.

INFRASTRUCTURE-

The 3.2 km Safwa-Ras Tanura Bridge in Saudi Arabia is now 88% complete, according to state news agency SPA. Once finished, the project — which links Ras Tanura to Dammam, Qatif, and King Fahd International Airport — will be the Kingdom’s second-largest double sea bridge. The project includes 24 water drainage canals and aims to improve regional travel and boost tourism.

Labor strikes in Canada could disrupt rail networks and trade this week

Labor stoppage imminent for Canada’s freight rail network: Canada’s freight rail network could possibly stop operations this week after Canada’s two largest railroad operators issued lockout orders on Sunday amid a dispute with the country’s Teamsters union, Reuters reported yesterday. The two railroad operators — Canadian National Railway and Canadian Pacific Kansas City (CPKC) — have said they would lock out workers on Thursday unless agreements are reached. Both operators have indicated that their networks outside of Canada will continue to operate, although stoppages could have knock-on effects.

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

What’s the dispute? The Canadian National Railway says that it made four offers this year on issues including wages, rest, and labor availability, while the CPKC dispute centers on safety concerns. The union says that CPKC wants "to gut the collective agreement of all safety-critical fatigue provisions,” which would mean that crews will be forced to stay awake longer, increasing the risk of accidents.

What’s the potential impact? The stoppages could affect the shipment of food grains, beans, potash, coal, and timber, which constitute a large portion of Canada’s exports. Shipments ranging from petroleum products to chemicals and cars could also be impacted, and the stoppages could inflict an economic toll and could potentially disrupt rail trade across North America.

With some already taking action ahead of the possible strike: Shipping giant Maersk has announced that it will not be accepting some Canada-bound shipments in light of the strike, Reuters reported. Others see a limited impact on oil exports to the US due to excess pipeline capacity, Reuters cited industry experts as saying. “We’re closely monitoring the situation and putting plans in place to mitigate any impacts if a strike or lockout were to happen,” a spokesperson of crude producer Cenovus Energy was quoted as saying by the newswire.

MEANWHILE- UK cargo airline turns elsewhere for service amid Brexit red tape: UK cargo airline One Air has been forced to fly as far as the US for routine service and repairs to avoid obstacles caused by post-Brexit regulations, generating hefty financial and environmental costs, its CEO Chris Hope told The Guardian earlier this week.

The problem: Under the Brexit agreement, EU-based aircraft engineering firms had the opportunity to seek recognition in the UK by the end of 2022, but none applied for certification for 747s. “In the seven months of this calendar year so far, we’ve had two [services] that had to go to the US. The kind of incremental cost difference is approaching USD 500k for each of them,” Hope said.

Calendar

AUGUST

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

SEPTEMBER

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

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

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

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

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

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

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

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

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

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi, UAE.

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

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

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

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

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

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

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

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

NOVEMBER

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

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

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

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

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

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

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

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

DECEMBER

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

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

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai, UAE.

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

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

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

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

APRIL

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

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

NOVEMBER

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

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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