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Cold chain in MENA

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What we're tracking today

TODAY: Abu Dhabi International Airport is getting a new name + Israeli airlines are changing their routes to avoid MENA airspace

Good morning, friends. The newsflow has slowed down significantly, with just a few small updates from logistics playing coming from the region.

THE BIG LOGISTICS STORY- There’s not much going on, but one story from Egypt is worth keeping an eye on: A Sky Logistics and Reliance Logistics consortium are reportedly in talks with Banque du Caire (BdC) for a USD 65 mn loan for the new multipurpose terminal at the East Port Said port.

AND- Don’t miss our big read on the landscape of the cold chain sector in the MENA region, from air cargo to land transport.

^^ We have everything on this story and more in the news well, below.

HAPPENING TODAY-

PSA-Transit trucks in the UAE will face AED 1-5k fines if they haven’t registered to the Electronic National System for Tracking Trucks and Shipments, effective today, Khaleej Times reports. The trucks will pay a AED 1k fine for the first month and AED 100 for each following month where they haven’t registered, with a maximum penalty of AED 5k, the outlet writes.

Abu Dhabi International Airport is set to be renamed Zayed International Airport,Emirati News Agency Wam reports. The airport’s new name will be adopted on 9 February 2024 at the opening ceremony of terminal A.

ALSO- Terminal A will kick off operations today, with 16 airlines flying from there as of today, and more to follow over the coming weeks. The 742k sqm terminal is set to “significantly increase” the airport’s cargo and passenger capacity, with the ability to operate 79 aircrafts at the same time and 45 mn passengers a year. The costs for the development of the terminal were pegged at USD 3 bn.

DISRUPTION WATCH-

Israel-based El Al airline’s Bangkok-bound flights will no longer fly through Omani airspace, citing safety reasons, Reuters reports. El Al was the first Israeli airline to fly through a new corridor via Saudi Arabia and Oman after Muscat followed Riyadh in permitting Israeli civilian flights through its airspace in February. El Al said its flights are not facing any specific threat, but it has nonetheless chosen to return to a route over Saudi Arabia but not Oman, increasing flight time between Tel Aviv and Bangkok to 11 hours instead of eight.

Oil tankers in the Red Sea are shutting off their tracking transponders amid the Israel-Hamas war, in a bid to navigate waters without being detected, CNBC reports. Ships are being advised to wait further offshore as rocket attacks have been reported near Israel’s ports of Ashdod and Eilat.

The number of waiting vessels at Port Ashdod dropped to below five since the war, as opposed to an average of 15 before the conflict, CNBC adds, citing Everstream. “This suggests that container lines are avoiding the Port of Ashdod, and potentially relying more on the Port of Haifa instead,” Everstream Director Mirko Woitzik said. The beginning of the war saw the backlog of ships around Haifa increase, with 16 vessels anchored near the port as of last week.

MARKET WATCH-

Russia’s oil flows go beyond target even as demand outlooks weaken:Russia’s oil flows climbed for a third week last week, with shipments exceeding the target it had initially set with Saudi Arabia to keep barrels off the market, Bloomberg reports. Russian ports shipped almost 3.64 mn barrels a day of crude oil, an increase of 110k barrels a day from the previous week. Rising oil prices and a rebound in flows are contributing to an increase in Russia’s receipts.

CIRCLE YOUR CALENDAR-

AD Ports kicked off the International Association of Ports and Harbors (IAPH) World’sPorts Conference 2023 yesterday, which runs through 2 November, at the Abu Dhabi National Exhibition Center, under the theme ‘Reinventing Ports.’ The event will bring together more than 100 speakers, from port operators to influential figures in the industry, to network and share expertise on the industry.

The two-day Abu Dhabi Smart City Summit(ADSCS) kicked off yesterday in Abu Dhabi. The event is organized by the Department of Municipalities and Transport and is being attended by government officials and industry experts to discuss AI, urban planning and smart mobility.

Dubai Business Forum is set to take place on 1-2 November at Madinat Jumeirah, in Dubai. The event will bring together top business leaders to boost business partnerships and networking.

Transport Logistic Southeast Asia is taking place between 1-3 November at the Sands Expo and Convention Centre in Singapore. The event is the largest trade show for transportation and logistics, mobility, IT, and supply chain management in the Southeast Asia region. The exhibition will bring together service providers to meet, network and trade with top buyers from the region, and feature expert speakers who will provide insight on future topics.

The Smart Transport, Logistics Infrastructure & Traffic Fair & Forum for the MEA Region(TransMEA) will kick off next week in Cairo, Egypt from 5-8 November. The event will bring together international regional players and some 350 exhibitors from 20 countries from the railway, metro, monorail, electric transport, roads, bridges, maritime transport, shipping, and logistics sector, to showcase solutions, trends, new products and technologies.

The third Caspian Economic Forum is set to be held in mid-November in Iran, state-owned Islamic Republic News Agency reports. The event is set to focus on transportation, joint ventures, oil and gas, finance, banking and technical cooperation in Iran, with Alireza Jahangiri, Iran’s deputy foreign caspian sea affairs minister, calling on economic institutions to attend, IRNA adds. The exact location and dates of the forum have yet to be confirmed.

The Dubai Air Show will be held from 13-17 November at DWC, at the Dubai Airshow site, in Dubai. The event will feature over 180 aircraft including business jets, drones, commercial airlines, military jets, helicopters, and electric vertical take-off and landing (eVTOL) aircraft. The event will also gather decision makers to discuss the latest trends and challenges across the aviation industry, and how to drive sustainable aviation operations..

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

This publication is proudly sponsored by

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Debt Watch

Banque du Caire to fund USD 65 mn for East Port Said port

Sky-Reliance Logistics consortium to get USD 65 mn loan from BdC: A Sky Logistics and Reliance Logistics consortium are reportedly in talks with Banque du Caire (BdC) for a USD 65 mn loan for the new multipurpose terminal at the East Port Said port, a source familiar with the transaction told Al Borsa.

What’s next: The consortium is negotiating the loan terms, and are expected to wrap up negotiations within the next few days, the source said. It plans to break ground on the project’s first phase in November, and the second and third phases by the end of 2024.

REMEMBER- President Abdel Fattah El Sisi recently ratified a decision to award Sky Logistics a 30-year USD 65 mn build-operate-transfer contract for a multipurpose terminal to be built over three phases. The companies will be responsible for the design, construction, management, operation and maintenance of the terminal, which will feature a 900-meter container berth, a 380k sqm trade area, and will create some 550 new jobs.

The consortium could get more for a logistics zone: Local Egyptian media reported in September that the consortium is in talks to arrange a EGP 700 mn joint loan to finance a logistics zone at the East Port Said Port. The loan is expected to be in the form of long-term financing over seven years, with the National Bank of Egypt reportedly acting as the main arranger of the loan, with other participants including Banque Misr.

The SCZone has been working on expansions for the port: The SCCT is planning to invest USD 500 mn to expand the capacity of East Port Said Port by 40%. The port’s main operator, the Suez Canal Container Terminal Company (SCCT), was also recently awarded a contract to develop a second container terminal at the port.

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The Big Read

How are MENA cold chain providers adapting to the demands of the high-stakes sector?

The MENA region’s cold chain logistics landscape: Nestled at the crossroads of global trade, the MENA region has a pivotal role in the cold chain logistics sector, especially as the region experiences burgeoning demand in pharma products and perishables. Companies like Etihad Cargo, Bahrain-based Al Madina Logistics Services (AMLS) and Egypt-based El Sheikh Logistics are investing in tech and quality control to ensure that product integrity is intact throughout the entire supply chain.

Our region benefits from a strategic location…: “Our location in the Middle East enables us to reach about 70% of the world’s population within a ten-hour flight,” Global Cool Chain Solutions manager at Etihad Cargo Fabrice Panza told Enterprise Logistics. “Positioned between Europe and Asia, we serve as a trade hub for products moving in both directions. This includes pharma products primarily flowing from Europe to Asia and perishables moving from Asia back to Europe via the Middle East,” he explained.

…and growing demand: The cold chain logistics industry in Egypt is projected to experience a compound annual growth rate (CAGR) of over 5.5% between 2023 and 2028, while the UAE, which has a more mature sector, is anticipated to achieve a CAGR surpassing 5% over the same period, according to Mordor Intelligence data. “In the MENA region, demand for temperature-sensitive solutions, especially pharma products, has been consistently growing,” Panza said. “Demand in the pharma sector is experiencing annual growth of approximately 10-20% in the region,” he explained. “The perishable goods industry, while comparatively more stable, is also expanding, with demand increasing by around 2-4%,” he added.

Who are the stakeholders in the region’s cold chain network? Cold chain logistics involves a network of key players that each play a role in maintaining the integrity of temperature-sensitive commodities, including produce, meat, dairy, seafood, chemicals, pharma products, and flowers, according to Container XChange. Producers, manufacturers, and packaging suppliers create and preserve these items, according to guidelines set by regulatory bodies. Freight forwarders coordinate transportation, working with air and ocean carriers for global movement, while trucking companies ensure continuity on the ground. This includes cold storage facilities, which provide controlled environments for temporary safekeeping, and monitoring and technology providers offering real-time tracking solutions. Distributors, retailers, and pharma companies complete the chain by delivering products to end-users.

Some companies provide several services across the cold chain logistics chain: AMLS is the largest full chain, third party logistics company in Oman, with a scope covering all aspects related to inland operations. “Our scope is everything to do with end-to-end logistics. Once goods arrive at the port of entry, we are responsible for clearing them, getting them inspected by the authorities, primary transportation, storage, and finally distribution to the end destination,” Group COO at AMLS Nader Hakim told Enterprise Logistics. Some of the company’s clients include McDonald’s and BRF Foods.

Working with multinationals means undergoing comprehensive audits: “Multinational companies like McDonald’s and BRF perform audits and have very stringent standards,” Hakim explained. “We have to comply with McDonald’s Distributor Quality Management Process (DQMP). The audit covers products, systems, staff treatment, and more. It pushes us to improve as well because they keep updating these standards and then we maintain compliance,” he added.

In Oman, dry ports allow smooth customs inspections: “Dry ports play a vital role in one of Oman’s main non-hydrocarbon exports, the fisheries sector,” Hakim explained. “These dry ports act as inland ports, equipped with cold chain facilities for inspections and customs formalities. This setup ensures that containers are properly inspected by authorities, such as the Agriculture and Fisheries Ministry, in controlled temperature conditions before proceeding to the actual seaport, like the Port of Sohar,” he added.

Land transport requires real-time data loggers + close assessments: “Before each truck’s departure, our engineers meticulously assess temperature levels,” Ahmed El Sheikh, Egypt-based El Sheikh Logistics’ managing director, explains. “Our containers feature real-time temperature data loggers. In the event of any issues, our responsive team is dispatched within 24 hours, facilitated by GPS tracking,” he said.

Egypt’s FX shortage has hindered fleet growth: “We source refrigerated containers and the majority of our trucks internationally. Unfortunately, our fleet expansion has been put on hold for two years due to ongoing import backlog and foreign exchange shortage,” El Sheikh said. “As a result, our current priority is to maintain and manage our existing assets. We have a dedicated workshop for truck maintenance and a warehouse with spare parts for our fleet, which have become substantially more expensive,” he added.

When it comes to shipping: an innovative solution is gensets. Gensets are portable power supply sources that comprise an engine and generator and can be used where there’s no access to a power grid. El Sheikh leases those gensets to freight forwarders to use for the transport of agricultural products, to maintain temperature control, El Sheikh told us. The gensets “supply power to containers before they are loaded onto ships. Once the containers are connected to the ship’s power source, the gensets are retrieved,” El Sheikh told us.

UP IN THE AIR-

A young, tech-advanced fleet is important: “We leverage the latest aircraft technology for temperature control during flight, and our fleet is notably young (under seven years) and sustainable,” Panza told us.

Etihad Cargo also offers customers the option to lease advanced cold chain technology containers: The containers are “beneficial for specific pharma products that require very stable temperatures from origin to destination,” Panza explains. “This scenario applies to around 20% of pharma shipments. During such instances, the specialized containers are used, starting from the origin and extending to a distribution center — before acceptance, and until consigning — an end-to-end process facilitated by Etihad Cargo,” he added.

Challenges: Increased transparency and real-time tracking provided by technology have led to higher expectations, Fabrice explains. “However, this also gives us an opportunity to showcase our reliability and commitment to meeting deadlines and maintaining product quality,” he said.

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Logistics in the News

Climate change disruptions could cost the shipping industry USD 10 bn by 2050 + Seafarers aboard shadow tankers are suffering harsh working conditions

The shipping industry could lose USD 10 bn a year by 2050 due to climate change:Climate change-related disruptions could cost the shipping industry USD 10 bn annually by 2050, and up to USD 25 bn per year by 2100, CNBC reports, citing an RTI study. Maritime trade volume is expected to triple by 2050 as demand increases, making it the most vulnerable transportation sector. “Imagine that if the port has an impact, but that we are not able to unload the cargo here, there’s a downstream impact to the supply chain, and also towards the upstream. So, it’s all connected,” Maersk’s President for North America Narin Phol said.

The tech is getting there, but it will take time: Sustainable fuel production is taking time, despite big carriers like Maersk and MSC taking big steps to develop ammonia dual-fuel ships. “Even if we have engines ready for new fuels, the fuel needs to be produced, there needs to be significant investments made, and it needs to be green fuels; it means it needs to be produced by green energy,” Agnevall said.

Concerns over the working conditions on shadow tankers lacking ins. cover and proper maintenance are rising amid the growth of the so-called global “ ghost fleet,” reports Seatrade Maritime. Seafarers are being warned about the potential dangers of accepting higher paid jobs on ghost fleet vessels. “We hear all the time, from many operators, their crew are getting offered more money to go and work on the dark fleet,” John Martin, Managing Director for P&I insurers Gard in Singapore, told the Nautical Institute (Singapore) conference.

ICYMI- The US price cap on Russian crude oil is giving rise to more shadow tankers, as more traders use aging tankers that are not monitored or insured by the US to circumvent sanctions.

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Also on Our Radar

King Abdulaziz Port added to India-Gulf Express Service + AD Ports, NMDC boost cooperation. PLUS: Lots of new regional flights

SHIPPING + MARITIME-

Saudi Arabia’s King Abdulaziz Port has been added to CMA CGM’s India Gulf Express Service, according to a statement by the Saudi Ports Authority. The route will connect Dammam to the ports of Nhava Sheva, Mundra, Mangalore, Colombo, Jebel Ali, Khalifa and Umm Qasr. Four vessels are set to sail weekly, each with a capacity of 9.8k TEUs.

The UAE’s AD Ports and marine service company NMDC Group have inked an MoU to enhance cooperation on international projects, Gulf Today reports. NMDC is set to employ its engineering, procurement, and construction and marine dredging capabilities in AD Ports’ international projects.

Background: NMDC and AD Ports Group established a joint venture back in June, dubbed Safeen Survey and Subsea Services, to provide offshore surveys and subsea services in the UAE as well as across the GCC region and international markets.

AVIATION-

Flynas adds aircrafts to its fleet + launches flights to Bahrain: Saudi airline Flynas has added four Airbus A320neo aircrafts to its fleet over the last two weeks, according to a press release. The Saudi airline is also launching daily direct flights from King Khalid International Airport in Riyadh to Bahrain International Airport in Manama starting 15 November, according to a separate press release.

ALSO WORTH KNOWING-

  • The UAE’s Etihad Airways will resume daily flights from Abu Dhabi to Nairobi, Kenya, starting 1 May, 2024. (Press release)
  • Air France has launched daily flights between Abu Dhabi and Paris-Charles de Gaulle, France. (Press release)
  • Saudi Aramco Total Refinery & Petrochemical Company (Satorp) Jubail plant has successfully converted used cooking oil into internationally-certified sustainable aviation fuel. (MEED)
  • Kuwait Airways has launched three flights a week between Kuwait International Airport and Barcelona, Spain. (Press release)
  • Chinese airline Xiamen Airlines has launched regular flights from Xiamen to Doha, the first direct air route from Fujian province to the Qatari capital. (Press Release)
  • The UAE’s national carrier Etihad Airways has chosen Worldwide Flight Services(WFS) as its cargo handling partner in Copenhagen for its first-ever flights from Abu Dhabi to Denmark. (AJOT)
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Around the World

BW Group’s Hafnia to boost internet connectivity on ships by year’s end + Singaporean JV eyes methanol-powered ships

Hafnia to use Starlink across its fleet by year-end: Hafnia, a product tanker unit of Singapore’s BW Group, will complete the full rollout of SpaceX’s Starlink satellite network across its entire fleet by the end of 2023, Splash reports. The adoption of Starlink, a satellite network that provides high-speed internet access, comes in parallel with the launch of the Project Hologram initiative, which aims to improve internet connectivity. At present, Starlink is fully operational on 35 Hafnia vessels.

ICYMI- Danish-based AP Moller-Maersk has also announced plans to fit ships with Starlink’s high-speed internet access.

ALSO WORTH KNOWING-


OCTOBER

31 October – 2 November (Tuesday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.


31 October- 1 November (Tuesday- Wednesday):
Abu Dhabi Smart City Summit, Abu Dhabi, UAE.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

Mid-November: Third Caspian Economic Forum, Iran.

1 November: Abu Dhabi Airports Terminal A set to become operational.

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

1-2 November (Wednesday-Thursday): Dubai Business Forum, Madinat Jumeirah, Dubai, UAE.

1-3 November (Wednesday-Friday): Moroccan-Libyan Business Forum, Tangier, Morocco.

1-3 November (Wednesday-Friday): Transport Logistic Southeast Asia and Air Cargo Southeast Asia, Sands Expo and Convention Centre, Singapore.

1-5 November (Wednesday-Sunday): TransMEA, Cairo, Egypt.

11-13 November (Saturday-Monday): GCC-Türkiye Economic Forum, Çırağan Palace Kempinski Hotel, Istanbul, Turkey.

9-15 November (Thursday-Wednesday): Intra-African Trade Fair, Cairo, Egypt.

15-17 November (Wednesday-Friday): Global Freight Summit 2023, Coca Cola Arena, Dubai, UAE.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

17-18 November (Friday-Saturday): 17th Iran-Turkmenistan Joint Economic Commission, Ashgabat, Turkmenistan.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai, UAE.

20-21 November(Monday-Tuesday): Dubai Precious Metals Conference, SO/ Uptown, Dubai, UAE.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

21-23 November (Tuesday-Thursday): ARABAL 2023 Conference, Hilton Riyadh Hotel & Residences, Riyadh, Saudi Arabia.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

4-6 December (Monday-Wednesday): ACE 23 Air Cargo Conference, Yas Island Hotel, Abu Dhabi, UAE

4-7 December (Monday-Thursday): Eurasian Economic Union (EAEU) exhibition, Tehran Permanent International Fairgrounds, Tehran, Iran.

10-11 December (Sunday-Monday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

12-14 December (Tuesday-Thursday): Food Africa Cairo 2023, Egypt International Exhibition Center, Cairo, Egypt.

18-20 December (Monday-Wednesday): International Exhibition of Transportation, Logistics, and Related Industries (Iran Trans Expo 2023), Imam Khomeini Grand Prayer Campus (Mossala), Tehran, Iran.

EVENTS WITH NO SET DATE

2H 2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H 2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d’Ivoire to be completed.

1Q 2024: Egypt’s Transport Ministry to launch pre-qualification tender for Cairo-Alex freight railway.

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

King Salman Energy Park is set to become operational in 2024

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre, UAE.

12-15 February (Monday-Thursday): African Air Expo, Cape Town, South Africa.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai, UAE.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport, Hong Kong.

20 March (Wednesday): Construction work scheduled to begin on the 162 km Rasht-Astara Railway in Iran.

APRIL 2024

30 April- 2 May(Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Hotel President Wilson, Geneva, Switzerland.

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh, Saudi Arabia.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

OCTOBER 2024

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

NOVEMBER 2024

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

DECEMBER 2024

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

2025

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.

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

2027

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

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