Cold chain systems maker CGS wraps Tadawul IPO with retail portion undersubscribed

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TODAY: CGS wraps Tadawul IPO + Airbus powers through A320 software update

Good morning, nice people. The news cycle has slowed down a notch, leaving us with a brisk read this morning led by IPO news from Saudi. We also take a look at the latest updates on Airbus’ A320 software snags, as well as the latest Iran-Turkey rail collaboration. Shall we?

WATCH THIS SPACE-

#1- Airbus’s A320 fleet is almost back to normal operations after the planemaker and regulatory authorities worldwide pushed the needed software changes alongside airlines, resulting in a faster-than-expected turnaround, Reuters reports. The snap software retrofit has now been carried out by dozens of airlines, including regional carriers Flynas, Flyadeal, Etihad Airways, Air Arabia, Turkish Airlines, and EgyptAir.

But some airlines are still working through the software update, with some 100 jets of the A320 fleet still grounded as of Monday afternoon because they require a longer process to fix the presumed bug. Some of these airlines include Colombia’s Avianca, which halted flights through 8 December, and JetBlue, which cancelled 20 flights on Monday.

ICYMI- Airbus recalled some 6k of its A320 jets over the weekend — nearly half of the model’s global fleet in operation — over a suspected software glitch that made aircraft data essential for flight control susceptible to corruption from intense solar radiation. The recall came after a review of a JetBlue incident in October, in which a Cancun-Newark flight suddenly lost altitude, injuring passengers and forcing an emergency landing in Florida, USA.

Market reax: Shares of the Paris-listed aerospace giant fell as much as 10% on Monday in the wake of the recall before closing at an overall drop of 5.8%, CNBC reported. Others in the industry took a hit as well, with Thales, the French aerospace and defense company responsible for supplying the flight system to Airbus, seeing its stock down by 2%.

#2- Jordan gears up to launch operations at revived Amman airport: Amman City Airport — previously Marka International — will begin receiving flights within days after securing its operational license from the country’s Civil Aviation Regulatory Commission (CARC), The Jordan Times reported, citing CARC’s Chief Commissioner Dhaifallah Farajat. The airport will mainly serve narrow-body aircraft with capacities of up to 200 passengers and 80 tons of cargo.

The rationale: With a capacity to accommodate 1 mn passengers annually, the airport is set to serve as a secondary hub for Queen Alia International Airport, helping ease congestion and cut waiting times, the news outlet reported, citing Director General of the Jordan Airports Company (Jac) Ahmad Azzam.

Targeting budget carriers: Jac will primarily target low-cost carriers for the airport, with plans to offer lower operational fees to attract them. Negotiations are already ongoing with Air Cairo, Wizz Air, Ryanair, and Flynas to set up base at the airport as soon as 1H 2026, Azzam said.

Background: The airport served as the country’s main airport until Queen Alia International Airport opened in 1983. Since then, it has mainly been used for non-commercial operations, such as diplomatic, private, and maintenance flights. Jordan Airports Company manages and operates the airport, which has been undergoing rehabilitation for several years.

#3- AirAsia’s Bahrain hub to include MRO base: Aircraft maintenance player Asia Digital Engineering (ADE), a sister company of AirAsia, will establish a 14-bay maintenance, repair, and overhaul (MRO) facility as part of AirAsia’s upcoming aviation hub in Bahrain, Gulf News Daily reports. The project is expected to eventually expand to a total of 40 bays. The timeline and investment ticket of the MRO base were not disclosed.

Asia’s largest budget carrier is in the process of establishing a Middle East hub in Bahrain to shore up its international coverage, and help the carrier tap into the booming budget flying market in the region. The plans would see the PIF-backed AirAsia launching over 25 daily flights via Bahrain by 2030, the carrier’s CEO Tony Fernandes reportedly said.

About ADE: Established in September 2020, the Kuala Lumpur-based ADE is a wholly-owned subsidiary of Capital A Berhad, which also owns AirAsia. ADE’s services focus on the Airbus A320, A321, and A330 families, offering MRO services, component and warehouse services, and engineering support.

MARKET WATCH-

#1- Oil prices saw a slight uptick this morning amid mixed signals on US stockpiles, as well as ongoing assessments of the impact of Ukrainian attacks on Russian oil operations and rising US-Venezuela tensions, Reuters reported. Brent crude futures rose USD 0.07 to trade at USD 63.24 / bbl as of 04:01 GMT, while US West Texas Intermediate (WTI) was up USD 0.10 to USD 59.42 / bbl.

OVER IN OUR REGION- Saudi Aramco lifted its December official selling prices for liquefied petroleum gas (LPG), as tight global supply pushed benchmarks higher, Reuters reports, citing traders. Propane rose to USD 495 per ton, while butane increased to USD 485 per ton.

The hike comes after Aramco reduced its November official selling prices for LPG, lowering propane to USD 475 per ton and butane to USD 460 per ton due to rising global supply and lower oil prices.

#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 — rose 0.9% on Friday to 2,583, almost a two-year record. The capesize climbed 1.8% to 4,563, also nearly a two-year record. Meanwhile, the panamax index fell by 0.9% to 1,934 points, while the smaller supramax index climbed up 1 point to 1,442.

DATA POINT-

Morocco’s National Railway Office (ONCF) expects its cargo volumes to reach 24 mn tons in 2026 — up 4% y-o-y, according to a statement. The volume is set to include 9.5 mn tons of general freight and 14.5 mn tons of Morocco’s flagship industry product, phosphate.

ONCF is also gearing up to boost its investments in the sector by 28% y-o-y, eyeing a MAD 23 bn drive next year. The government agency also expects a 7% y-o-y rise in revenue, reaching MAD 5.4 bn as a result of forecasted boosts from the cargo and passenger segments.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ***

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.

CGS wraps up Tadawul IPO with retail portion undersubscribed

Saudi cold chain systems maker Consolidated Grünenfelder Saady Holding’s (CGS) retail offering closed undersubscribed, with nearly 79k subscribers taking up 4.3 mn shares at SAR 10 apiece, representing 14.2% of total shares on offer, it said in a press release (pdf). Some 20% of the total IPO was open to retail buyers, according to the prospectus. Final allocations are due tomorrow, with the first day of trading still under wraps.

REFRESHER- This comes after last week’s stellar institutional offering, which closed 61.1x oversubscribed and prompted CGS to price its IPO at SAR 10, the top end of the range. The offer price valued the company at around SAR 1 bn at listing, and was set to see selling shareholders raise roughly SAR 300 mn in gross proceeds. CGS, which holds 41% of Saudi Arabia’s automotive refrigeration and vehicle-body solutions market, is floating a 30% stake, equivalent to 30 mn existing shares, in a fully secondary sale on Tadawul. Post-listing, substantial shareholders will retain a combined 70% stake under a six-month lockup.

This puts CGS toward the bottom of this year’s Tadawul IPO league table: Its roughly SAR 300 mn raise slots well below mid-sized offerings such as Marketing Home Group (SAR 408 mn) and comfortably under Entaj (SAR 450 mn).

Advisors: Aljazira Capital is acting as the financial advisor, lead manager, underwriter, and joint bookrunner alongside Arqaam Capital. Himmah Capital is advising the selling shareholders, with Latham & Watkins providing legal counsel. PwC is acting as the financial due diligence advisor, Ernst & Young as the auditor, and Euromonitor International as the market consultant.

Receiving agents include Aljazira Capital, BSF Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, Albilad Investment Company, Alistithmar Capital, Derayah Financial, Alinma Capital, ANB Capital, Yaqeen Capital, Alkhabeer Capital, Sab Invest, Sahm Capital, GIB Capital, Musharaka Capital, EFG Hermes KSA, and Awaed Alosool Capital.

Iran + Turkey will reportedly build USD 1.6 bn joint rail link

Iran + Turkey to build Asia-Europe rail corridor? Iran and Turkey have agreed to develop a new joint rail line spanning 200 km at an investment cost of around USD 1.6 bn, the diaspora-run outlet Iran International reports, citing remarks made by Iran’s Foreign Minister Abbas Araghchi on Sunday. Known as the Marand–Cheshmeh Soraya transit line, the project is pitched as a strategic trade corridor linking Asia and Europe and is expected to finish construction in four years.

All part of China’s Silk Road: The Marand–Cheshmeh Soraya project will be part of China’s Belt and Road, Iran’s Transport Minister Farzaneh Sadegh reportedly said earlier this month. This route is set to serve as a portion of an “all-rail corridor” linking China and Europe by connecting Iran’s and Turkey’s rail networks, while featuring an end-to-end rail system for low-cost freight with few stops, Sadegh added.

Iran’s going big on its transit hub ambitions…: The country has ramped up efforts in the past few years to expand its cross-border transit networks, pushing ahead with rail collaborations and new joint developments with neighboring countries. Last month, it 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.

… but it is also facing regional competition: Turkey broke ground on a railway project linking it to Azerbaijan’s Nakhchivan exclave earlier this year, and will be part of the South Caucasus transit corridor. The development drew threats from Tehran to block the 224-km corridor, citing security concerns due to the US’s possible involvement in the project.

Snags at the world’s key maritime trade bottlenecks amount to a USD 14 bn loss annually

Disruptions at key maritime chokepoints impact roughly USD 192 bn worth of trade annually — the equivalent of 0.77% of global trade, according to an Oxford Programme for Sustainable Infrastructure Systems study (pdf) released last week. These disruptions — including delays, rerouting, ins. premiums, and higher freight costs, result in an estimated USD 14 bn loss per year.

The breakdown: Disruptions at chokepoints last year caused around USD 10.7 bn in direct economic losses annually — the equivalent of some 0.04% of global trade. On top of this, nearly USD 3.4 bn is lost each year due to rising shipping costs directly tied to rerouting and held-up capacity.

Who bore the brunt? While some of the analyzed bottlenecks handle bigger shares of the world’s maritime trade, such as the Taiwan Strait, disruptions are more systematic and have a bigger economic impact in our regional bottlenecks: Bab el-Mandeb and the Suez Canal. Countries that are more reliant on the bottlenecks for revenues are also among those that are most impacted, with the study mentioning Egypt, Yemen, Iraq, and Panama at the top of the list.

Methodology: The report looks into some 24 major maritime bottlenecks — including the Suez Canal, Bab el-Mandeb Strait, Taiwan Strait, and Strait of Malacca — analyzing how a mix of natural and human-caused hazards impacts each of these spots.

Why does this matter? Maritime transport is responsible for facilitating 80% of the global trade volume and holds 50% of the trade value. The Strait of Hormuz handles about 21% of global petroleum exports shipped through its waters. The Panama Canal, Bosporus Strait, and Strait of Gibraltar facilitate over 10% of the world’s grain exports.

Our global economy depends heavily on a handful of maritime chokepoints. “The co-occurrence of hazards shows how interlinked our maritime system really is… a single event in one part of the world can trigger or amplify risks elsewhere. Analysing these dependencies helps us anticipate compound disruptions and better prepare for them,” Research Fellow and Co-author Johannes Lumma added.

So… how do we build resilience? Global supply chains require a layered strategy for risk mitigation against these disruptions, the report finds, adding that this could include maintaining emergency stockpiles, diversifying and increasing investments in security measures, and offering more comprehensive ins. products. Cooperation on a global scale is the most powerful tool economies could leverage — with the study’s authors recommending coordinated risk management to prevent and adapt to future disruptions.

Westwell E-trucks to be deployed at Hutchison Ports Sohar

PORTS-

Westwell E-trucks to be deployed at Hutchison Ports Sohar: Hutchison Ports Sohar, a JV between Hutchison Port and Omani investors operating Sohar Port’s container terminal, is set to integrate 15 electric container trucks into its operations at the port and in its freezone, according to a statement. The trucks — manufactured by the Chinese EV firm Westwell — will feature a 150 km range, as well as fast-charging and automated battery swapping, Oman Observer reported. Westwell E-trucks’ deployment in Oman comes after their successful introduction in Pakistan, Egypt, Peru, and Thailand.

ZONES-

#1- SAL to provide logistics services to SILZ tenants: Riyadh Special Integrated Logistics Zone (SILZ) will begin promoting services by Saudi Logistics Services (SAL) to the zone’s tenants for a period of one year after the pair signed a service marketing agreement, according to a disclosure (pdf). To direct tenants to SAL, SILZ will earn a percentage from the contracts signed through the partnership. The agreement automatically renews each year unless one of the parties requests termination, with a 60-day notice required.

SAL has big plans for Riyadh: SAL is set to break ground on the SAR 4.2 bn Falcon City Logistics zone in Riyadh this month, CEO Omar Hariri had previously said. The company expects to allocate 20% of the project’s value in 2026 to infrastructure development and aims to complete the first phase by 2027, with full delivery targeted by 2030.

REMEMBER- SILZ has managed to lease more than 55% of the land offered by its first phase as of September, which spans 1 mn sqm of leasable land. Tenants include fashion giant Shein; global tech player Lenovo; industrial robot-maker Sapphire, a JV comprising Japan’s Softbank and PIF-owned Alat; and logistics player Unipart, among others.

#2- Egypt’s General Authority for Investment and Freezones will begin a full re-engineering of investment procedures in January as part of its plan to launch a single electronic platform for all investor licensing, approvals, and follow-up services, the authority said in a statement. The digital portal will centralize permits, streamline processes, reduce human intervention, and offer investors a unified interface for interacting with government agencies.

China’s maritime power spans the globe, with commercial ports playing central role

How did China dominate global shipping ports? With six of the world’s ten busiest ports located in China, the world’s second-largest economy has come out on top of the global structure of ports recently, Bloomberg reported last week. For perspective, China has launched 129 port projects worldwide, with an investment cost above USD 60 bn.

Beijing’s modus operandi: Beijing cemented its supremacy by partnering with local and international players when investing to build and manage ports across the world, while local governments still own the land. Ownership of the ports is either composed of Chinese private companies or by public entities, such as China’s Cosco Shipping.

With great ports comes great power: In terms of global maritime power, 17 ports around the world are majority-owned by China. The nation is allowed notable leverage in the form of prioritizing or denying entry to ships from certain nations. Of these 17 ports, 14 have the potential to support naval operations, and China-run commercial ports can service or host military ships. To give you a perspective: China’s first overseas military base — located in Djibouti — was originally operating as a commercial port.

Ports of contention: China has pumped an initial figure of USD 1.3 bn into Peru’s Chancay Port, drawing the ire of Washington, whose worries hinge on concerns that the Peruvian port could support Chinese military advancement in the region and threaten US national security, the news outlet reported. Similar concerns center on the ports in Panama, which Western nations claim Beijing may leverage in a trade war.

Washington is pushing back: The Trump administration was reportedly looking into launching an acquisition spree for global strategic ports controlled by China — a quest motivated by concerns that the US’ own merchant fleet is not adequately prepared to provide logistical aid to the US Navy in case of a conflict. Washington’s efforts to secure control of CK Hutchison’s port holdings in the Panama Canal were a case in point, with the country also eyeing China-controlled assets in the US West Coast, Greece, Spain, and Jamaica.

Malaysia’s Maharani Freeport project could mobilize up to USD 35 bn investments

Maharani Freeport is targeting investments worth USD 35 bn: Maharani Freeport –– a multi-purpose mega energy project spanning 3.2k acres in the Malaysian state of Johor — has the potential to attract USD 35 bn in foreign investment, Bloomberg reported, citing a statement by the developer firm Maharani Energy Gateway (Meg). The project’s main port was officially launched last week, and it is already providing services such as oil trading, storage, transshipment, blending, bunkering, and ship-to-ship services, the news outlet reported, citing Meg’s Chairman Malek Bin Daing A Rahaman.

More details: The Maharani Freeport project is tied to the Malaysian King Sultan Ibrahim Iskandar, who owns a 40% stake in Meg. The project — which overlooks the Malacca Strait, one of the world’s busiest oil shipping routes — includes an energy hub, industrial and logistics parks, as well as a financial hub.

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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