Intro Tech + Oman Data Park to set up USD 450 mn data center in Egypt

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What we're tracking today

TODAY: Egypt gets a new data center + Port strike kicks off in the US

Good morning, ladies and gents. It’s a brisk read this morning with some data center updates emerging from the US and a new IATA decarbonization report to unpack. We also have the latest breaking news on trouble breaking on the US eastern seaboard, but first, a happy announcement…

We are excited to welcome on board AK-Ships, an emerging regional provider of ship management and marine advisory services, as our latest pillar advertiser of EnterpriseAM Logistics. Headquartered in Alexandria since 2023, AK-Ships is a tech-based company that offers innovative ship management solutions with a current focus on ship management, maintenance, repairs and complete operations of container ships in the Mediterranean and the region. Via AK’s innovative software, logistics companies can minimize fuel consumption levels, reduce costs, optimize routes to overcome geopolitical challenges and much more.

EnterpriseAM Logistics is available to thousands of readers every day without charge thanks to the generous support of Transmar. Hassan Allam Utilities, and AK-Ships.

THE BIG LOGISTICS STORY ABROAD- US East Coast and Gulf of Mexico port workers began a strike halting movement on half of the US’s shipping traffic. “Moments ago, the first large-scale eastern dockworker strike in 47 years began at ports from Maine to Texas, including at the Port Authority of New York and New Jersey,” New York Governor Kathy Hochul said in a statement. The strike will likely flare US inflation rates, stopping the flow of container goods and automobile shipments across dozens of US ports from Maine to Texas and costing the US economy between USD 3.8 bn to USD 4.5 bn a day, according to JPMorgan analysts.

Background: The United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) — representing nearly 50k dock workers at over 30 ports stretching from Maine to Texas — have locked horns in negotiations over a six-year contract that ended at midnight yesterday. The ILA are pushing for higher wages and a rollback of the language on automation, while the USMX argues it increased its offer to wage increases of more than 50%.

Shippers are crying for help: Several US firms started importing early last week, shipping goods to the West Coast, and loading cargo on air freight in anticipation of the strike. The cost of shipping a 40-ft container from Shanghai to New York jumped to USD 10k in July, and although they have since retreated, rates could spike again with the possibility of a strike.

WATCH THIS SPACE-

#1- Damietta Port has received the first batch of 40-yard electric RTG cranes at its new Tahya Misr 1 container terminal, according to a statement. The electric cranes are set to cut down on carbon emissions from port operations, the statement says, adding that the port is also set to receive dock cranes.

Background: Egypt’s Tahya Misr 1 container terminal — one of three terminals planned in the Damietta port development project — will kick off operations in April 2025. The remaining two container terminals are slated for completion by 2027.

REMEMBER- Damietta Alliance Container Terminal (DACT) and Modern Engineering Pioneers (MEP) inked an agreement in May to implement the superstructure of Tahya Misr 1 container terminal in Damietta. The terminal has a capacity of 3.5 mn containers and a berth that is 1.97k meters long and 18 meters deep.

IN OTHER EGYPT NEWS- Egypt has big export plans: Egyptian President Abdel Fattah El Sisi has approved the disbursal of some EGP 20 bn (c. USD 414 mn) into the export support fund in the upcoming year, according to a statement by Industry and Transport Minister Kamel El Wazir (watch, runtime 0:24).

We’ve been expecting this: The government said in September it would announce amendments to the export support fund. President El Sisi expressed his support for a proposal by Investment Minister Hassan El Khatib El Khatib to ramp up allocation to the fund, saying “I am with you” as long as the amendments boost the country’s exports.

#2- A US-sanctioned Russian-linked LNG tanker, the Pioneer, passed through the Suez Canal yesterday, Reuters reports, citing LSEG shipping data. Neither the source of the LNG aboard the tanker nor its destination are clear.

What do we know: The Palau-flagged vessel is registered to Dubai and Mumbai-based Zara Shipholding Co. Satellite images from back in August appeared to show the Pioneer transferring its Russian LNG cargo to another ship some 30 km northeast of Egypt’s Port Said. The US placed sanctions on the Pioneer, along with two firms and another vessel, which it linked to Russia’s Arctic LNG 2 project, the same month.

ON A RELATED NOTE- Disruptions to Red Sea container shipping and reroutes around the Cape of Good Hope will likely persist “well into 2025,” Platts reports, citing comments by shipping giant Ocean Network Express CEO Jeremy Nixon at Singapore’s Marine Money conference last week. “There seems to be no political breakthrough” to indicate that disruptions will be easing anytime soon, Nixon said. Instead, the supply chain has adapted, forcing a new “business as normal.” War risk premiums for cargo traveling through the Red Sea have jumped from 0.5% to 1.0% of the value of the ship’s hull and machinery.

The context: Since the end of 2023, ships have been diverting from the Suez Canal to evade Houthi attacks. This longer route around the Cape adds approximately two weeks to travel times, resulting in increased freight and insurance expenses.

MARKET WATCH-

#1- Oil prices stayed steady in early morning trading as a solid supply outlook and global demand offset fears of escalating tension in the Middle East, Reuters reports. Brent crude futures for December inched up USD 0.07 to USD 71.77 a barrel by 03.35 GMT, while US West Texas Intermediate crude futures for November gained USD 0.08 trading at USD 68.25 a barrel.

#2- Baltic breaks its streak of Ws: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.2% to 2,084 points on Monday, breaking a seven-day streak that pushed it to a near three-month high. The capesize index dropped 40 points to 3,649 points, while the panamax index lost 32 points to 1,414 points. The smaller supramax index dropped 10 points to 1,296 points.

PSA-

UAE drivers will be paying less at the pump this month: UAE’s Fuel Price Committee reduced fuel prices for October by about 8%, following a 6% price decrease last month, according to an X post by the Emirates General Petroleum Company. The breakdown for one liter:

Super 98: AED 2.66;
Special 95: AED 2.54
E-Plus 91: 2.47,
Diesel: AED 2.60

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***

CIRCLE YOUR CALENDAR-

Bahrain will host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.

Saudi Arabia will host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.

Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

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

Intro Tech and Oman Data Park to establish USD 450 mn data center in Egypt’s SCZone

Another big-ticket data center in the works: Intro Group subsidiary Intro Technology signed a MoU with Omani data center leader Oman Data Park to establish a new USD 450 mn sustainable data center in the Suez Canal Economic Zone (SCZone), according to a joint statement (pdf).

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

The details: Spanning some 80k sqm, the center — dubbed the Kemet Data Centre — will be developed in two phases and will serve large companies looking for cost-effective and advanced cloud solutions, Internet of Things (IoT), and digital transformation. The center will employ Intro Group subsidiary Advansys to manage legal procedures, hardware and equipment importation and design, while Oman Data Park will oversee the design, construction, and operations of the data center.

A green outlook: While data centers are notoriously energy-intensive operations, the Kemet Data Center will partially rely on sustainable technology including solar energy to power its operations, according to the statement

What they said: “This partnership represents a pivotal step in Intro Technology's strategic journey to expand its technological projects in the Middle East and Africa … We believe that Kemet Data Center will play a vital role in achieving Egypt's digital transformation goals in line with its 2030 vision and positioning it as a key hub in the data center and cloud services sector,” said Mamdouh Abbas, founder and chairman of Intro Holding.

More data centers to come? According to unconfirmed local reports out last month, the SCZone wants to set up a USD 60 mn data center with a capacity of 5-7 MW in partnership with the private sector.

UAE’s IRH set to invest in South African logistics

IHC to up its investment in South African assets: Abu Dhabi-based International Resources Holding (IRH), a subsidiary of the UAE’s International Holding Company, partnered with South Africa’s Public Investment Corporation (PIC) to invest in green energy, rail infrastructure, and mining in South Africa, according to a statement. PIC is Africa’s largest asset manager, holding some USD 169 bn in assets across the mining, agriculture, manufacturing, real estate, and financial services sectors.

The partnership will focus on:

Bringing undeveloped mining assets to full production capacity;
Offsetting the energy production capacity of coal-fired thermal plants scheduled to be decommissioned in a bid to reduce greenhouse gas emissions;
Boosting the country's export capacity by ironing out bottlenecks across key mining corridors leading to the Richards Bay, Saldanha, and Durban ports;
Establishing an AI geoscience venture to conduct geological surveys and research to identify new mining prospects.

IN CONTEXT- South Africa’s state-owned logistics company, Transnet, has been facing challenges like equipment shortages and maintenance delays, largely stemming from years of insufficient investment, with severe inefficiencies at the country’s ports.

REFRESHER- IHC is ramping up efforts to secure critical metal supplies from Africa, acquiring a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn in April. Though it withdrew a bid for Vedanta's 51% stake in Zambia's Konkola Copper Mines, the company is eyeing EMR Capital’s 80% stake in Zambia’s Lubambe Copper Mine and is in advanced talks to mine nickel in Burundi, along with metals in Tanzania and Kenya. IHC is also focusing on renewable energy in mining, planning to use solar power at iron ore sites in Angola, with USD 1 bn in mining acquisitions expected this year.

Net zero in the aviation industry is possible by 2050, IATA says

Achieving net zero is possible in the aviation industry by 2050, the International Air Transport Association (IATA) says in its updated policy and finance net zero roadmaps for the global aviation sector, according to reports (here) and (here). The updated roadmaps indicate that decarbonization by 2050 is possible through collaboration from stakeholders and policymakers as well as clear policy and financial frameworks in line with the needs of air transportation.

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

But let’s back it up a bit: The IATA disclosed a series of “step-by-step” roadmaps back in July 2023 for the industry to achieve net zero carbon emissions by 2050, with recommendations covering tech, energy, infrastructure, operations, finance, and policy. The shift toward sustainability in the air transportation industry is part of the Paris Agreement.

A call to action: “I must emphasize that the roadmaps are not just for airlines. Governments, suppliers, and financiers cannot be spectators in aviation’s decarbonization journey. They have skin in the game. The roadmaps are a call to action for all aviation's stakeholders to deliver the tools needed to make this fundamental transformation of aviation a success with policies and products fit for a net-zero world,” IATA Director General Willie Walsh said.

SOUND SMART- What is a policy roadmap? A policy roadmap is a strategic framework that outlines goals and recommendations for implementing specific policies in a specific area to complete strategies, according to a report (pdf). The roadmap provides a baseline for policy development and helps identify gaps in existing policies.

The roadmap: Although the recommendations recognize that there isn’t a one-size-fits-all solution for policy sequencing, they state that all countries should engage in the future global Sustainable Aviation Fuel (SAF) market. The policy roadmap outlined immediate (until end 2025), mid-term (2026-2030), and long-term (2031-2050) objectives that lay out the order in which to target the goals and objectives.

Some takeaways: The roadmap highlighted the urgent need for immediate action to integrate the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) — a mechanism that aims to reduce emissions from international aviation above a standard reference level. The policies also stressed the importance of prioritizing SAF in the product mix at refineries. The introduction of new tech — especially in research and development — is deemed necessary.

Gov’t action is needed: Collaboration between governments, the aviation industry, and other sectors is important for streamlining investments and removing barriers to adopting new tech, SAF, and infrastructure. The report states that the creation of a global SAF accounting framework is necessary to ensure transparency and accountability.

How far along are we? Malaysian airline AirAsia inked an MoU with Airbus to explore the production and expand the use of SAF in the Association of Southeast Asian Nations (ASEAN) region. The UAE’s renewables giant Masdar and French oil major TotalEnergies signed an agreement back in August to explore the feasibility of using captured CO2 to produce sustainable aviation fuel (SAF) and green methanol. The UAE has been looking to position itself as a regional hub for SAF with aims to produce 700 mn liters of SAF annually by 2030.

We’re on the way: SAF production in 2024 is set to hit 1.9 mn liters, representing 0.53% of the aviation sector’s fuel requirement and on track for tripling target. “SAF will provide about 65% of the mitigation needed for airlines to achieve net zero carbon emissions by 2050. So the expected tripling of SAF production in 2024 from 2023 is encouraging. We still have a long way to go, but the direction of exponential increases is starting to come into focus,” IATA Director General Willie Walsh said.

As for the money aspect: In order to be net zero by 2050, the annual capital expenditure (capex) needed to build new facilities over the 30-year period is about USD 128 bn per year. The road to this can be facilitated if governments redirect their subsidies away from fossil fuels and toward renewable energy production, one of which is SAF.

Time is of the essence: The cost of procuring SAF, hydrogen, and other key levels is valued at USD 1.4 bn in 2025, but the transition could go as high as USD 744 bn in 2050 — indicating the need for speed and scale in bringing solutions to market in a bid to achieve the net zero CO2 emissions.

There’s hope: “To realize the opportunities, we need all minds to unite in this mission, and all policymakers, multilateral organizations, investors, solution providers, and the air transport industry to work together. Such transformative collaboration can pool resources and target meaningful action for greater impact. This is what is needed to deliver a sustainable air transport industry by 2050,” IATA’s Senior Vice President Marie Owens Thomsen said.

Abu Qir beach cleanup yields over 100 kg of waste

AK-Ships recently sponsored a successful coastal cleanup at Abu Qir East Beach, Alexandria, in observance of World Cleanup Day. Organized by Banlastic and supported by the Egyptian Ministry of Environment, the event saw over 120 volunteers collecting 39 kg of plastic containers, 21 kg of bags, 11 kg of paper, 19 kg of glass, 7k cigarette butts (destined to be recycled into bean bags), and 1.5k water caps in just one hour.

The initiative highlighted the environmental dangers of plastic pollution, drawing spontaneous participation from beachgoers. By preserving one of Alexandria’s most historic beaches, this initiative underscores the growing need for action against marine pollution.

Learn more about AK-Ships here.

Trade and digitization updates from the UAE and Morocco

DIGITALIZATION-

Maqta Gateway + Presight AI to deliver AI-driven trade and logistics solutions in the UAE: AD Ports Group’s Maqta Gateway has inked a partnership agreement with ADX-listed data analytics firm Presight AI to develop AI-powered digitized solutions for trade and logistics, according to a statement.

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

What we know: Under the agreement, both parties commit to working exclusively together on the development and commercialization of artificial intelligence and data analytics solutions for trading in goods in the ports and maritime industries. The two parties are looking to leverage their combined strengths to “accelerate the pace of global trade transformation,” Maqta Gateway CEO Noura Al Dhaheri said.

TRADE-

AfDB giving Morocco’s BOA Group funds to support African trade: The African Development Bank (AfDB) has offered Morocco’s Bank of Africa (BOA Group) USD 78.3 mn (EUR 70 mn) to promote financing trade in Africa, Reuters reports. The funding should catalyze almost EUR 300 mn worth of trade over 3.5 years. The trade finance facility includes a Risk Participation Agreement (RPA) worth EUR 50 mn and a Trade Finance Line of Credit (TFLOC) amounting to EUR 20 mn.

OTHER STORIES WORTH KNOWING THIS MORNING-

Israel strikes Yemen port: Israel launched a strike on the port of Hodeidah in Yemen on Sunday in what it says is a response to Houthi missile attacks. (Reuters)
Oman inaugurates new road project: Oman’s Transport, Communications, and Information Technology Ministry has inaugurated a road connecting Khazaen Economic City with Al Batinah Expressway over 7 km. (Statement)

BHP expects a 70% surge in global copper demand by 2050

BHP expects big growth in copper demand: Australian miner BHP is expecting the world to consume an extra 1 mm metric tons of copper per year on average until 2035 on the back of emerging copper-intensive technologies, Reuters reports, citing a BHP Monday report. Total copper demand in 2023 amounted to 31 mn tons, including 25 mn tons of copper cathode and 6 mn tons of copper scrap. “As we look towards 2050, we see a 70% surge in global copper demand to 50 million tonnes annually, driven by copper's role in existing and emerging technologies, and in the world's decarbonisation aspirations,” BHP Chief Commercial Officer said.

OTHER STORIES WORTH KNOWING THIS MORNING-

Port of Los Angeles resumes operations: The Port of Los Angeles’s cargo operations are back on track after a fire broke out last week when a tractor trailer carrying lithium batteries overturned at Terminal Island. (Reuters)
DHL + Volkswagen extend partnership: DHL Supply Chain has extended its partnership with Volkswagen Slovakia till 2029, providing intra-company logistics services to the plant in Bratislava, which includes supplying its production lines. (Statement)

Calendar

SEPTEMBER

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

OCTOBER

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

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

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

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

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh, Saudi Arabia.

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

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

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

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

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

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

NOVEMBER

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

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

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

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

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

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

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

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

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

DECEMBER

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

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

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

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

EVENTS WITH NO SET DATE

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

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

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

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

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

APRIL

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

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

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

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

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

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

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

NOVEMBER

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

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

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

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