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Double tracks

1

What we're tracking today

TODAY: Road + bridge closures in Oman + Abu Dhabi. Plus: Qatar is struggling to offload its LNG

Good morning, ladies and gentlemen. We’re at the tail end of the week — and on the cusp of a new month, to boot, bringing us another pleasantly balanced news day in the logistics world.

THE BIG LOGISTICS STORY- Iraq’s Transport Ministry unveiled yesterday the country’s first-ever 40 km double-track railway line, running from the southern outskirts of Baghdad to the Musayyib district.

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


PSA #1- Oman’s Transport, Communications and Information Technology Ministry will be carrying out maintenance at Al Margi bridge on the Rostaq Abri road in Wadi Bani Ghafer, according to a notice for motorists.

PSA #2- Mohammed bin Khalifa Street in Abu Dhabi will be shut down from today until Friday 8 September 2023, Abu Dhabi’s Integrated Transport Center said.

Aleppo airport resumes operations following Israeli strike: Air traffic at Syria’s Aleppo International Airport returned to normal on Tuesday nightafter the airport had halted operations following an Israeli air strike on Monday, Syria’s Transport Ministry said in a statement. The strike caused damage to the airport but no casualties were reported, Syria’s official SANA news agency said. Syria’s airports and air bases have recently been subject to intensified strikes from Israel to disrupt Iranian arms deliveries to its allies, including Hezbollah, Reuters reports.

Israel-bound plane makes emergency landing in KSA: A plane carrying Israeli passengers returning home from the Seychelles made an unplanned landing in Saudi Arabia on Tuesday due to an electrical malfunction, the Associated Press reports. Israel praised the incident as a sign of goodwill as the US works to mediate the establishment of formal ties between the two nations, which currently have no formal diplomatic relations. The passengers spent the night in Jeddah before returning to Israel on a different plane, Israel’s Foreign Ministry said. In 2022, Saudi Arabia lifted its ban on Israeli planes using the Arab country’s air space.

MARKET WATCH-

Qatar’s LNG dilemma: Qatar is struggling to sell its new LNG production capacity of 48 mn metric tons (mt) per year, as buyers are demanding more flexible contract terms, S&P Global cites analysts as saying. Qatar is keen to secure long-term LNG contracts from its North Field expansion by the end of 2023, but it has only been able to secure contracts for 11.9 mn mt per year, S&P writes. Qatar may decide to offer terms that are more lenient than its current 25-year-plus, destination-fixed contracts, as it faces competition not only from the US, but also Oman and Abu Dhabi.

While several European countries courted Qatar last year for future LNG supplies, only Germany locked in a contract with QatarEnergy. The reluctance from buyers may stem from their desire for shorter FOB contracts to have flexibility for cargo diversion, head of the Middle East gas team for Facts Global Energy in Singapore Siamak Adibi told S&P. FOB contracts also allow buyers to resell these volumes, lowering the risk of excess volumes.

CIRCLE YOUR CALENDAR-

The Construction Week Leaders in Construction KSA Summit will be held this Saturday, 2 September at the Crowne Plaza in Riyadh, KSA. The one-day event will see industry leaders discussing the current trajectory of the kingdom’s gigaprojects where construction leaders will provide future growth.

Global smart logistics platform Shipsy will showcase its AI-driven innovations at Seamless Saudi Arabia 2023 next Monday and Tuesday, 4-5 September, according to a press release. The company will highlight how it helps supply chain stakeholders leverage AI for business growth, cost reduction, and improved customer experiences. The company will use this opportunity to present its Logistics Intelligent Assistant, an AI-powered tool that employs predictive analytics for proactive incident management and efficient delivery operations.

The Sustainable Transportation and Legacy for Generations Conference and Exhibition, sponsored by Qatar Airways Group, Mwani Qatar, and QNB,organized by Qatar's Transport Ministry, will take place on 17-18 September at the Doha Exhibition and Convention Centre, the Gulf Times reports. The event will cover transportation sector trends, strategies for eco-friendly transit systems, and Qatar's role in global aviation. The conference will include six panel discussions featuring over 20 speakers from various transportation entities.

The Global Trade and Supply Chain Summit is taking place on 19-20 September at the Address Dubai Marina Hotel, UAE. The event, hosted by Economist Impact, will bring together some 500+ business and supply chain leaders, high level government representatives, and policymakers to discuss the implications of trade policy, business logistics, supply chain diversification from China, sustainability, product traceability, digital trade, customs compliance and evolution, supply chain resilience, and trade in emerging regions, among other topics.

The Saudi Maritime Congress will take place at Dhahran Expo in Dammam, Saudi Arabia on 20-21 September. The event will bring together regional and international professionals from the maritime, shipping, and logistics sectors to meet, network, and do business with some 120 leading maritime exhibitors.

The Duqm Economic Forum , hosted by Oman’s Public Authority for Special Economic Zones & Freezones (OPAZ), will take place on 16-17 October at the Crowne Plaza Hotel in Duqm, Oman. The two-day event will showcase green investment avenues offered by the Special Economic Zone at Duqm(Sezad). The event will bring together business leaders, policymakers, industrialists, trade specialists, logistics professionals, and experts to discuss and present case studies, assess future trends, and exchange knowledge, insights, expertise, and discuss upcoming investments, according to the event brochure (pdf).

The Construction Week Leaders in Construction UAE Summit is taking place on 20 September at the Grosvenor House in Dubai, UAE. The one-day event aims to bring together industry experts to contribute their insights on the latest technologies and trends in the construction sector. The conference will explore how to adapt to technology, localizing the industry, and how to finance projects to spur economic growth.

Registration for the Digital Prosperity Awards , which was launched by the Organization for Digital Cooperation, ends on 30 September. The competition is set to honor global contributions that empower governments, businesses, and communities to collaborate and accelerate digital economic advancement.

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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Rail

Iraq inaugurates first double-track railway line

Iraq’s Transport Ministry unveiled yesterday the country’s first-ever 40 km double-track railway line,according to a ministry statement. The railway line runs from the southern outskirts of Baghdad to the Musayyib district. The ministry worked to complete construction before the beginning of the Arba’een Pilgrimage, which begins next week, Transport Minister Razzak Saadawi said.

In detail: The line includes one stretch from Mahmoudia-Alexandria, while the second section starts from Alexandria and runs to Al Musayyib.

The dual track concept is going to be replicated across Iraq once the project is complete, the statement says. The ministry is looking to double all railway transport lines in the country and implement new systems, including signaling and electronic control systems.

This isn’t the only railway project Iraq is working on: Iraq is set to ink bilateral agreements with Turkey in the upcoming period for the construction of 133 km of rail which will connect Grand Faw Port in Iraq’s southern Basra province to Turkey through rail and road infrastructure. The project — which was launched back in May — is set to see completion in 2028. The project was launched back in May, with prospects to involve high-speed trains that can transport goods and passengers at speeds up to 300 km per hour. Iraq also inked an MoU with Iran to complete the Shalamcheh-Basra railway.

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Trucking

Ostool unveils expansion plans

Egypt-based trucking outfit and Raya Holding subsidiary Ostool has laid out plans that will see its road fleet doubled in size “in the near future,” according to a press release (pdf). The logistics services provider — which serves industries including mining, energy, cement, construction materials, and grains — is holding negotiations to bolster its fleet with vehicles fitted with GPS and road monitoring systems, the release explained. Aside from road freight, the company also engages in the storage and unloading of shipping containers.

Sustainability goals: Ostool aims to up the number of its natural gas-powered trucks, with the current vision seeing 25% of the company’s fleet powered by natural gas by 2024, and a full transition to natural gas by 2026. Recent expansions have seen the firm establish itself as the largest operator of natural gas-powered trucks in Egypt, Ostool CEO Tamer Badrawi said in statements carried by the release.

Growth plans in the offing: “The company aims to expand in the Gulf region,” Badrawi mentioned without disclosing further details.

Ostool has seen solid growth in its financials recently: The first half of 2023 saw the company haul in EGP 566 in revenues, compared to EGP 317 mn in the same period last year, thereby attaining 79% y-o-y growth, the company said. 1H 2023’s bottomline came in at EGP 35 mn, almost triple the previous year’s EGP 12 mn. Ostool’s total revenues for last year came in at EGP 607 mn, with the year also seeing the firm control a 70% market share of coal to cement factory trips.

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Kudos

Emirates awarded IEnvA Stage 1 and Illegal Wildlife Trade module certifications

Emirates completes certifications showcasing its commitment to sustainable practices: The Dubai-based carrier successfully obtained certifications for both Stage One of the IATA Environmental Assessment (IEnvA) and the IEnvA Illegal Wildlife Trade module, according to a press release. The IEnvA system is a comprehensive environmental management system and Emirates has implemented Stage One of its core scope which includes various aspects including flight operations and corporate activities. The aviation giant also completed an illegal wildlife trade module.

What they said: “In addition to initiatives such as our recent closed loop recycling programme and demonstration flight powered with 100% sustainable aviation fuel (SAF), we are committed to robust environmental management systems and to driving real change both within our own operations and across the industry.”

Tags:
5

Moves

General Motors Africa + Middle East taps new CFO, MDs

General Motors Africa and Middle East (GM AMEO) appointed Chad Wellman (LinkedIn) as its new Chief Financial Officer, after serving as CFO Digital at General Motors, Construction Business News reports. GM AMEO also tapped Omar Elkhishin (Linkedin) as its new managing director of Cadillac Middle East and International, Omar Elkhishin was previously the company’s director of sales for the Middle East. Rohan Fernandes (Linkedin) will also serve as GM AMEO’s new managing director of commercial operations after serving as director of customer care and aftersales.

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Diplomacy

KSA + Poland ink air transport services agreement, Ras Al Khaimah ruler welcomes UK trade envoy + ambassador

Saudi Arabia and Poland have signed an agreement to boost cooperation in air transport services, Saudi Press Agency (SPA) reported.The agreement looks to establish regulatory frameworks, broaden the networks of KSA and Poland’s national carriers, bolster civil aviation strategy, and boost international cooperation in civil aviation. The framework is slated to increase the number of shared flights, up trade and tourism, and strengthen KSA's standing as a global logistical hub, SPA wrote, citing statements by Saudi Arabia’s Minister of Transport and Logistical Services Saleh bin Nasser Al-Jasser.

This is part of a larger effort: The move is expected to contribute to the National Transport and Logistics Strategy’s aims of boosting air connectivity between the Kingdom and the rest of the world, with the goal of reaching 250 destinations and serving 330 mn passengers annually by 2030, Al-Jasser said.

Ras Al Khaimah ruler welcomes new UK ambassador and trade envoy: Ruler of Ras Al Khaimah Sheikh Saud bin Saqr Al Qasimi met with UK trade envoy Gareth Johnson and British ambassador Edward Hobart, Wam reports. The visit saw discussions on initiatives to boost bilateral cooperation.

ALSO WORTH KNOWING-

  • Officials from Egypt’s transport and irrigation ministries have met to discuss joint cooperation on maintenance and constructing new roads and axes. (Ministry statement)
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Logistics in the News

Peak shipping season in the US gets off with a “whimper”

Supply chains’ busiest period of the year gets off to a disappointing start, upending freighters’ hopes of a turnaround: While freight operators usually rake in massive revenues in the period from late summer to early fall as retailers rush to bolster inventories ahead of holiday-season shopping sprees, this year’s season has gotten off to a “whimper” as suppliers continue to work through excess inventories amassed during the pandemic period, the Wall Street Journal reports. Volumes of goods arriving at American ports have been trailing below 2022 averages all year and are projected to dip slightly in September and October, the WSJ wrote, citing National Retail Federation forecasts.

Major retailers like Walmart , Target , and Home Depot are in no hurry to stock up: Despite making headway working through overstocked inventories, retailers are hesitant to stockpile more goods without evidence of a rebound in consumer demand, WSJ wrote. Citing caution, discount retail giant Target is positioning for a “lean inventory position,” CFO Michael Fiddelke said, according to WSJ.

Changing consumer behavior is also a factor: Americans are choosing to spend more on services and experiences such as restaurants and travel and less on retail clothes, electronics, and other goods that move via supply chains. The change in spending patterns is another driver behind retailer’s impetus to hold back orders, WSJ wrote.

Where does this leave freighters? Carriers had pinned hopes on this year’s peak season marking a turnaround after 2022’s disappointing volumes, but the sluggish growth in imports this year is driving carriers to cancel routes and revise down their expectations for yearly bottom lines, WSJ explained. Maersk CEO Vincent Clerc indicated that retail and lifestyle shipments are down double-digits when compared to previous years, the journal reported citing statements made by the executive during an earnings conference call. “We do not see any sign of an expected volume rebound in the second part of the year,” Clerc reportedly said.


Logistics firms are progressively incorporating AI technologies into their operations, the Wall Street Journal reports. Many executives are interested in AI’s ability to reduce costs and boost efficiency, including freight brokerage RXO and trucking company XPO, who are looking at using generative AI to track shipments, book loads, and declare imports. Logistics companies also say that AI can enhance forecasting, procurement, inventory management, and shipping decisions. Experts also believe the technology can improve customer experience by providing customized and pertinent responses, unlike chatbots that are equipped with pre-set answers.

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Also on Our Radar

AviLease plans to double its fleet by 2030 + KSA’s King Salman Energy Park operational next year + Qatar wraps infrastructure development in Rawdat Al Jahhaniya. Plus: Serco renews AED 250 mn contract to service Australian base in the Middle East

AVIATION-

Saudi jet lessor AviLease is seeking to almost double its fleet size to 300 jets by 2030, CEO Ted O’Byrne told Bloomberg TV in an interview. The lessor, established in 2022 and backed by the Saudi Public Investment Fund, will manage 167 jets following its acquisition of Standard Chartered’s aviation finance business this week, he added. The growth should see cargo traffic double and increase the lessor’s balance sheet to USD 20 bn from USD 6 bn by 2030, ultimately creating a “lot of capacity” to acquire wide-body aircraft, O’Byrne told the outlet. The lessor also hopes to issue up to USD 2 bn denominated bonds annually as part of its strategy to help KSA diversify away from oil and become a trade and logistics hub.

ZONES-

KSA logistic zone is set to become operational in 2024 : Saudi Arabia’s energy city megaproject King Salman Energy Park — a joint venture between SPARK logistics and Hutchison Ports — will begin operations in 2024, Gulf Business reports. The logistics zone, which will be operated and maintained by SPARK, will be home to the biggest private dry port in the region and offer services including customs clearance and bonded warehouse storage. It will house 10 mn metric tonnes of cargo and aims to facilitate access to global markets and help businesses meet rising demand for energy-related products. “Through the zone, we aim to attract significant investment, drive economic growth and create new opportunities for businesses by providing unmatched access and connectivity to the region,” CEO of Spark Saif Al Qahtani.

INFRASTRUCTURE-

Qatar completes infrastructure development in Rawdat Al Jahhaniya : Qatar’s Public Works Authority has completed the second phase of a road and infrastructure development project in Rawdat Al Jahhaniya, which began in 2Q 2020, The Peninsula reports. The project involved constructing a 21 km road network, 3.6km of walkways and cycle paths, and safety features including lighting and directional signs. The project aims to enhance traffic flow, link public amenities, and serve 851 residential plots. The project also included surface and groundwater drainage networks extending 21 km to avert water buildup during the rainy season. A 2.7 km treated water network was also constructed to serve potential green areas. In an effort to support manufacturers, 70% of the project’s materials were sourced locally.

SERVICES-

Serco renews AED 250 mn contract to service Australian Defense Force (ADF) base in the Middle East: British multinational defense outfit Serco has renewed the Middle East Logistics and Base Support Services (MELABS) contract to provide the “full suite” of logistical services to ADF’s main operating base in the region, according to a press release. The contract commences on 1 January 2024 for an initial term of three years and covers logistical, hospitality, estate operations, facility maintenance, transportation, asset hire, emergency structural and airfield rescue, and firefighting response services at the ADF facility.

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Around the World

Bankrupt trucking giant Yellow could sell its truck terminals for USD 1.5 bn

US trucking giant Yellow gets USD 1.5 bn bid for assets amid liquidation: Old Dominion Freight Line is placing a USD 1.5 bn bid for the network of truck terminals owned by trucking giant Yellow, surpassing a USD 1.3 bn bid by competitor Estate Express Lines, the Wall Street Journal reports. Yellow’s recent bankruptcy filing is drawing in several bids for the company’s assets from almost 100 different entities to help settle its outstanding debts, the WSJ adds, citing a company lawyer. The USD 1.5 bn bid would surpass the amount Yellow owes to lenders that include the US government, which is asking for the repayment of a USD 700 mn loan. Yellow has also agreed to a proposal from hedge fund Citadel and MFN Partners — the company’s biggest shareholder — for a USD 142 mn bankruptcy loan, Yellow’s lawyer Allyson Smith is quoted as saying.


SEPTEMBER

September: Hassan Allam Utilities + Agility to open Yanmu East logistics park.

4-5 September (Monday-Tuesday): Seamless Saudi Arabia, Riyadh Front, Saudi Arabia.

4-6 September (Monday-Wednesday): The Sustainable Maritime Industry Conference, Ritz Carlton, Jeddah, Saudi Arabia.

4-8 September (Monday-Friday): Logistics and Transport Management, Dubai, UAE.

5 September (Tuesday): The Leaders in Logistics KSA Summit, Crowne Plaza Al Waha, Riyadh, Saudi Arabia.

6-7 September (Wednesday-Thursday): Sustainability LIVE London, Business Design Centre, London, UK.

11-14 September (Monday-Thursday): The Libyan Moroccan Forum for Trade and Business, Tangiers, Morocco.

11-15 September (Monday-Friday): London International Shipping Week 2023, International Maritime Organization, London, UK.

12 September (Tuesday): Global Pharma Logistics Summit 2023, ITC Maratha, Mumbai, India.

17-18 September (Sunday-Monday): Sustainable Transportation and Legacy for Generations, Doha Exhibition and Convention center, Doha, Qatar.

18 September (Monday): Connecting Trade Worldwide (CTW) Global Summit 2023, Dubai, UAE.

18-19 September (Monday-Tuesday): Enterprise Finance Forum, St. Regis Hotel, Cairo, Egypt.

19-20 September (Tuesday-Wednesday): Economist Impact’s Global Trade and Supply Chain Summit, The Address Dubai Marina, Dubai, UAE.

20 September (Wednesday): Construction Week Leaders in Construction UAE Summit Grosvenor House, Dubai, UAE.

20-21 September (Wednesday-Thursday): Saudi Maritime Congress, Dhahran Expo, Damman, Saudi Arabia.

20-22 September (Wednesday-Friday): Transport Evolution Africa Forum and Expo, Inkosi Albert Luthuli ICC Complex (Durban ICC), South Africa.

20-23 September (Wednesday-Saturday): MTB Workboats, Hyatt Regency, Dubai, UAE.

25-27 September (Monday-Wednesday): Airline Economics Growth Frontiers Middle East & Africa, The Ritz-Carlton, Dubai, UAE.

25-27 September (Monday-Wednesday): Agriculture Horticulture Development Board’s trade mission to Kuwait.

26-27 September (Tuesday-Wednesday):Gulf-Iraq Business Forum, Sharjah Chamber of Commerce and Industry, UAE.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

26-28 September (Tuesday-Thursday): Breakbulk Americas, George R. Brown Convention Center, Houston, Texas.

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

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

3-5 October (Tuesday-Thursday): Smarter Mobility Africa Summit, South Africa.

9-15 October (Monday-Sunday): 2023 World Bank Group - IMF Annual Meetings, Marrakech, Morocco.

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

10-12 October (Tuesday-Thursday): Cool Logistics Global 2023, Genoa Stock Exchange, Genoa, Italy.

16-17 October (Monday-Tuesday): Duqm Economic Forum, Crowne Plaza, Duqm, Oman.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): ICASM 2023, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): XLP AGM 2023, Barcelona, Spain.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

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

NOVEMBER

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

9-15 November (Thursday-Wednesday): Intra-AfricanTrade 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.

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.

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

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

EVENTS WITH NO SET DATE

2H2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H2023: 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.

1H 2024: Work is scheduled to begin on the 162 km Rasht-Astara railway in Iran.

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.

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.

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.

2027

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

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