Egyptian gov’t earmarks EGP 6 bn for Egypt-Libya-Chad road development

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What we're tracking today

TODAY: Egypt allocates EGP 6 bn for Libya-Chad connection + A spate of earnings from regional players

Good morning, folks. We’re starting the month with a brisk read, topped with investment updates on the Egypt-Libya-Chad transit route project. It’s also earnings season, and we have a flurry of reports from regional players. But first, the latest on the US tariffs front…

THE BIG LOGISTICS STORY- It’s finally August — aka Tariff Month — and US President Donald Trump has published alist of new tariffs set to be implemented next Friday. Trading partners are sorted into three groups depending on trade surplus, with most of the Gulf falling into the first group hit by the minimum 10%.

Among the highest tariffs: Canada will be slapped with a 35% tariff, higher than the earlier announced 25%, as diplomatic friction with the US continues, and after it said it would recognize a Palestinian state; and Switzerland was slapped with a 39% tariff.

Zooming in on India: India will be subject to a 25% tariff — plus another yet-to-be announced import duty in retaliation against the country’s oil and military trade with Russia. Talks are still ongoing between the US and India, the BBC reported.

India is dependent on Russia for its crude consumption,with up to 40% of the country’s crude imports coming from Russia. Coupled with the latest widening sanctions on Russian trade oil operations, the new US tariff stance forces India into making a difficult trade-off between its energy security and its trade relationship with the world’s largest economy.

The impact: India’s refiners have been quick to react to Trump’s sanction threats, with India’s biggest refiner, Indian Oil, pivoting to buy at least 2 mn barrels from Abu Dhabi and 5 mn of US crude, Bloomberg reports, citing traders. India’s Reliance Industries also purchased one mn barrels of Abu Dhabi’s Murban crude last month, with trading volumes of Murban futures having increased, in recent weeks, amid growing market interest in alternative crude sources as geopolitical tensions shift procurement patterns across Asia and Europe.

WATCH THIS SPACE-

#1- Aqaba Port welcomes EGAS floating terminal: Jordan’s Aqaba Port received a floating regasification unit — the Energos Force — leased by Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS), according to a statement published on Saturday. The two countries will share the unit to improve their energy contingencies, with a capacity of 750 mcf/d.

ICYMI- The move comes ahead of plans to connect Aqaba Port to the Arab Gas Pipeline and establish a permanent regasification unit at Aqaba. A tender for the latter project is expected in 4Q 2026.

IN ANOTHER GAS LOGISTICS NEWS– Oman greenlights Sohar Port gas pipeline: Oman’s state-owned Integrated Gas Company (IGC) has approved a new 193-km gas pipeline to meet national demand in Sohar Port and Wilayat of Ibri, according to IGC CEO Abdulrahman bin Humaid Al Yahyai in a statement sent to Oman News Agency. The pipeline is slated to be completed within 24 months from the start of implementation. The pipeline — to be implemented by state-owned OQ Gas Networks (OQGN) — will supply around 13 mn cbm of gas per day, starting from Wilayat of Ibri in Al Dhahirah Governorate and extending to Wilayat of Sohar in northern Al Batinah Governorate.

REFRESHER- OQGN awarded Egyptian petroleum projects firm Petrojet an engineering, procurement, and construction contract for the OM R 105 mn pipeline last month. The state-owned gas operator also inked a contract with India-based Jindal Saw Limited to supply piping for the project. The country’s northern gas network is set to get a capacity boost from the pipeline, with about 9 mn cbm per day in gas pumping capacity earmarked for the region.

#2- Riyadh Air soon to fly in London’s sky? PIF-owned Riyadh Air will reportedly launch flights on 26 October connecting Riyadh and London Heathrow Airport, using its Boeing 787-9 Dreamliner fleet, Aviation Business reported last week. The move comes after the airline secured a daily slot at Heathrow in a swap with British Airways, marking its first-ever international destination in Europe.

Could we see the launch before 3Q ends? Saudi’s newest carrier has pushed back its launch to 3Q 2025 from earlier this year after facing delays in Boeing aircraft deliveries. The airline voiced plans in June to serve 100 cities by 2030, aiming to add a destination every two months once it’s operational. The carrier also announced it has snapped up the necessary landing slots for its first destinations, and is set to reveal its first route and ticket sale mechanism in the upcoming months.

IN OTHER AVIATION NEWS- Etihad bags more jets in July: Etihad Airways secured five new aircraft last month as part of its efforts to expand its fleet to accommodate some 38 mn passengers annually by 2030, according to a statement released last week. The airline received one jet each of Airbus’ A321LR, A350-1000, and A320 models, as well as two Boeing 787 Dreamliners — its highest monthly delivery rate yet.

On brand: Etihad Airways is looking to onboard 18 new aircraft by year-end, in hopes of growing its fleet to some 115-120 aircraft to accommodate 21.5 mn passengers — assuming no manufacturer delays. During US President Donald Trump’s May visit to Abu Dhabi, the airline said it would invest USD 14.5 bn to acquire 28 Boeing 787 and 777X aircraft.

#3- US sanctions more of Iran’s shadow fleet: The US State Department sanctioned 20 entities and 10 vessels for their alleged role in Iran’s crude and petrochemicals trade, according to a statement released last week. The sanctioned firms, terminals, and tankers are based or registered in the UAE, India, China, Iran, Turkey, or Indonesia. The US has been ramping up the pressure on Iran, enacting sweeping new sanctions on 115 Iran-linked individuals and businesses last week.

MARKET WATCH-

#1- Oil prices dropped this morning in the wake of Opec+ decision to move ahead with its September production hike, Reuters reports. Brent crude futures was down USD 0.18 to reach USD 69.49 / bbl by 04.56 GMT, while US West Texas Intermediate (WTI) futures dipped USD 0.12 to trade at USD 67.21 / bbl. Losses were, however, capped by expectations of tighter supplies as Indian refineries pivot away, for now, from Russian crude.

What went down in Opec+: The group has approved an oil production increase of 547k barrels per day for September, concluding a phase of its supply restoration strategy one year ahead of schedule, according to a press release. The hike completes a gradual reverse of the bloc’s 2.2 mn bpd cut instituted in 2023, bringing Saudi Arabia’s quota to 9.75 mn bbl/d.

The unwinding started back in April, when eight of Opec+’s producers agreed to hike production by 411k barrels a day, citing “continuing healthy market fundamentals and the positive market outlook” as the reasoning behind its decision.

A lot to gain: Opec+ will likely benefit from its decision to prioritize market share over price stability, despite initial economic strain. Members are hoping to claw back market share ceded to US shale and other competitors, as oil supply growth from non-Opec producers is expected to slow by over 80% through 2027.

More in the bag: The group is still holding onto some 1.65 mn bbl/d per day from eight member countries, and an additional 2 mn bbl/d reduction across the entire alliance, Reuters reports. Both measures are scheduled to expire by the close of 2026.

What’s next? The cartel meets next on 7 September to discuss its policy for October.

#2- Baltic index inches up: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.75% to 2,018 points on Friday, buoyed by its larger segments. The capesize gained 1.8% to 3,296 points, while the panamax index dipped 0.9% to 1,644 points. The smaller supramax index inched up 0.1% to 1,269 points.

#3- The Drewry World Container Index fell by 1% to USD 2,499 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of market turbulence driven by the US tariffs’ play since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.

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CIRCLE YOUR CALENDAR-

The UAE will host the Africa Procurement and Supply Chain Leaders’ Conference on Monday, 25 August until Friday, 29 August in Dubai. The conference will host global industry leaders, policymakers and stakeholders to discuss how AI is changing procurement and supply chain efficiency, sustainability and risk management.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech and cybersecurity.

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

Egypt allocates EGP 6 bn for first phase of Libya-Chad connection

Egypt earmarks EGP 6 bn for land link with Libya, Chad: The Egyptian government has reportedly allocated EGP 6 bn (c. USD 124 mn) for the first phase of a new road project connecting Egypt to Libya and Chad, Asharq Business reports, citing a government official. Construction is set to begin in 3Q 2025 and take three years at a total investment cost of EGP 24 bn.

The details: The road — also known as the East Oweinat-Kufra road — will stretch 1.7k km across the three countries: 400 km in Egypt, 390 km in Libya, and 930 km in Chad, the news outlet reports, citing data from Egypt’s Transport Ministry. The project aims to open a new land corridor to boost trade within African nations

Libya’s stretch made strides last year: Eastern Libya’s Development and Reconstruction Fund inked an MoU last September with Egypt’s Arab Contractors Company to build the Libyan section of the transit road project. The agreement involved carrying out feasibility studies and drafting a preliminary design of the road.

A slew of earnings from Bahri, Abu Dhabi Aviation, and Milaha

BAHRI-

The National Shipping Company of Saudi Arabia (Bahri) saw its net income dip 44.4% y-o-y to SAR 407.5 mn in 2Q 2025, it said in a disclosure to Tadawul yesterday. The figure was pulled down by weaker performances by Bahri Chemicals and Bahri Integrated Logistics due to lower global shipping rates, lower other income, higher finance costs, and G&A expenses compared to the same quarter last year.

MEANWHILE- Revenue slid 9.3% y-o-y to SAR 2.5 bn, primarily due to a decline in global shipping rates across Bahri Chemicals and Bahri Oil.

On a 1H basis, the company’s bottom line fell 20.7% y-o-y to SAR 940.3 mn, while its top line decreased 7.9% y-o-y to SAR 4.6 bn.

Coming off a good year: Bahri reported a 34% y-o-y increase in net income in 2024, reaching SAR 2 bn. Revenues also grew by 8% to roughly SAR 9.5 bn, which the company attributed to higher freight rates and a larger fleet.

ABU DHABI AVIATION-

Abu Dhabi Aviation saw its bottom line nosedive, dropping 74.2% y-o-y to AED 179.1 mn in 2Q 2025, according to the company’s financial statements (pdf). The firm had seen a one-off gain on a bargain purchase for AED 596.8 mn the year before.

Meanwhile, the firm’s revenues saw a 7.1% y-o-y uptick to AED 1.7 bn, supported by strong performance across key subsidiaries, including Etihad Airways Engineering and its maintenance, repair, and overhaul (MRO) operations, according to a separate earnings release (pdf).

On a six-month basis: The company saw its net income decline 45.4% to AED 394.4 mn in 1H 2025, while revenues increased 12.5% y-o-y to AED 3.6 bn, as the impact of its AED 4 bn acquisitions last year was reflected in its financials, providing an AED 259 mn boost. Its general aviation segment saw a 15% y-o-y dip in revenues, while its MRO operations saw 6% yearly growth, and its investments sector recorded a 9% y-o-y uptick.

MILAHA-

Qatar Navigation (Milaha) saw its bottom line surge by nearly 7% y-o-y — based on our calculations — to QAR 671 mn in 1H 2025, propelled by stronger performance in its port operations and logistics unit, according to an earnings release (pdf ) published Thursday. The firm’s operating revenues also increased around 11% y-o-y to QAR 1.6 bn during the same period.

All is well on the logistics front: Milaha Maritime and Logistics reported a QAR 380 mn bottomline for 1H — a QAR 54 mn y-o-y increase — standing out as the firm’s best performing arm. This was followed by Milaha Offshore, which saw its bottom line rise by QAR 16 mn y-o-y to reach QAR 132 mn, bolstered by a greater variety of projects and the acquisition and operation of additional vessels in 2H 2024.

REFRESHER- Milaha’s net income rose 2.5% y-o-y to QAR 374 mn in 1Q 2025, while its top line saw a y-o-y increase of 1.6% to QAR 759 mn in the first quarter. The firm’s bottom line gains were driven by a QAR 30 mn y-o-y rise in Milaha’s maritime and logistics division’s net income, with port operations again a notable growth driver.

Milaha’s been expanding its services: Milaha launched a new weekly Short Sea Med

service, MTX 2, earlier this year to connect Turkey, mainland Spain, and the Canary Islands. The Saudi Port Authority (Mawani) also added Milaha’s Inta Gulf Express service — with a total capacity of 1k TEUs — to Dammam’s King Abdulaziz Port back in April.

QTerminals appoints Marco Neelsen as group CEO

Qatari terminal and ports operator QTerminals appointed Marco Neelsen (LinkedIn) as group chief executive officer (CEO), according to a statement. Neelsen brings over 20 years of experience in the ports and logistics sector, previously serving as executive director at MMC Ports Holding in Malaysia and as CEO of Malaysia’s Port of Tanjung Pelepas. Neelson is taking over from Charles Meaby, who served as acting group CEO during the transition period and will resume his role as managing director of Hamad Port.

Updates from shipping, zones, and storage from Saudi Arabia, the UAE and Egypt

SHIPPING + MARITIME-

The Saudi Ports Authority (Mawani) added Goodrich’s RSX1 shipping service to Jeddah Islamic Port, linking it to three regional ports, it said in a statement released on Friday. The new service — with a capacity of 720 TEUs — will connect Jeddah with Port Sudan, Djibouti Port in Djibouti, and Jebel Ali Port in the UAE.

ZONES-

Dubai Airport Freezone partners with Chinese secondhand goods giant: The Dubai Airport Freezone (DAFZ) inked an MoU with Chinese online marketplace operator Zhuanzhuan Group to establish a cross-border supply chain for secondhand consumer goods, according to Dubai Media Office released on Thursday. The tie-up aims to boost Dubai’s position as a logistics and trade gateway, granting DAFZ access to the Chinese firm’s partner network.

More on the agreement: Zhuanzhuan will set up its regional headquarters in DAFZ, a facility that will handle recycling, quality checks, sorting, and packaging operations. The Dubai Integrated Economic Zones Authority is also involved and will support Zhuanzhuan’s operations and coordination with local authorities, along with DAFZ.

STORAGE + WAREHOUSES-

AD Ports Group eyes Egypt’s oil storage network: AD Ports Group signed a MoU with Egypt’s Oil Ministry and Dubai-based TCM Project Management to explore joint development of Egypt’s crude oil storage infrastructure, according to a press release released on Thursday. The strategic network serves domestic and international energy markets.

Airbus reports 85% net income increase in 1H 2025

Airbus reports a strong 1H 2025: European jet maker Airbus’ net income rose by 85% y-o-y to EUR 1.5 bn (USD 1.7 bn) in 1H 2025, while revenues went up 3% y-o-y to almost EUR 30 bn (USD 34.2 bn) in the same period, according to a statement released last week.

On a quarterly basis, Airbus’ net income rose by 218% y-o-y to EUR 732 mn, while revenues were mostly stable in 2Q 2025, surpassing EUR 16 bn.

In terms of deliveries, the firm noted a 5% increase y-o-y to 306 commercial jets delivered in 1H 2025 — consisting of 232 A320s, 41 A220s, 21 A350s, and 12 A330s, according to a press release (pdf).

Revenue from Airbus’ commercial aircraft, however, fell 2% y-o-y to EUR 21 bn — mainly due to lower commercial aircraft deliveries compared to 1H 2024, though the firm hopes to deliver some 820 commercial aircraft by year-end.

Calendar

AUGUST

25-29 August (Monday-Friday): Africa Procurement & Supply Chain Leaders’ Conference, Dubai, UAE

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

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

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

15-16 (Monday-Tuesday) September: Smart Ports & Logistics Transformation Summit, Jeddah, KSA

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

25 September (Thursday): World Maritime Day.

30 September-2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

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

6-8 October (Monday-Wednesday): Maritime Cyprus Conference 2025, Limassol, Cyprus.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

13-17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

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

15 October (Wednesday): Global Trade Review, Cairo, Egypt

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh, Saudi Arabia.

DECEMBER

1-3 December (Monday-Wednesday): INTRALOGISTICS Powered by CeMAT, Riyadh, KSA

2 December (Tuesday): European Commission issues its decision on Adnoc’s Covestroc acquisition.

15-16 December (Monday-Tuesday): Supply Chain And Logistics Conference 2025, Riyadh, KSA.

2026

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

12-13 May (Tuesday-Wednesday): IntraLogistex, Abu Dhabi, UAE

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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