Iraq shortlists firms to operate Grand Faw Port

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What we're tracking today

TODAY: UK-GCC trade agreements in final stages + Van Oord completes dredging work in Ain Sokhna

Good morning, friends. We have a short issue for you this morning, but with key updates on Iraq’s Grand Faw port and a boost for Oman’s supply chain. Plus: Some updates on the trade front from Egypt and the GCC…

BUT FIRST- Head over to EnterpriseAM Egypt for an interesting read on the automation of Egypt’s ports sector. The country is taking its first steps toward integrating smart technologies across its ports, with Ain Sokhna, Damietta, Alexandria, and Port Said all exploring automated port services including ship docking systems, digital registries for goods and containers, and systems that facilitate unloading and the circulation of transport vehicles. The goal? Transforming Egypt into an integrated logistics zone, increasing port efficiency, and positioning the country as the region’s transport hub of choice.

HAPPENING TODAY-

The Bahrain International Air Show is kicking off today and will run through Friday, 15 November in Bahrain. The event gathers key regional industry leaders and experts to network and showcase technological advancements in the aviation industry to buyers around the world.

WATCH THIS SPACE-

#1- Dutch marine contractor Van Oord has finished dredging work on two new port basins in Egypt’s Ain Sokhna Port as part of a larger port expansion project, according to a statement. Van Oord was contracted to dredge some 21 mn cubic meters of soil to create the basins over the last 14 months. The project looks to boost capacity at the port as well as boost maritime activity in the Suez Canal Economic Zone.

#2- A GCC-UK trade agreement could be signed later this year as talks enter the final stages, Bloomberg reports, citing sources it says are in the know. The GCC nations have been working on the draft agreement since 2022, which has seen seven rounds of talks so far. If finalized, the agreement could be followed by individual trade pacts between the UK and GCC countries.

More FTAs on the way: GCC-Japan freetrade talks are set to kick off this month, after the two parties agreed on terms of reference in October. Terms of reference for a trade agreement with Malaysia have also been agreed on, but talks are still pending the Malaysian government’s approval to kick off.

MARKET WATCH-

Opec slashes demand forecasts again: The group of oil producing nations cut growth forecasts for global oil demand for the fourth month in a row, according to its latest monthly report (pdf). Opec now sees demand rising 1.8 mn bbl / d y-o-y in 2024, down 107k bbl / d from previous estimates as data from China, India, and Africa came in below expectations.

The group cut its demand growth projections by almost a fifth since July, as crude prices plummet, Bloomberg said. Nevertheless, the group’s estimates are higher than those issued by other market analysts, including Saudi Aramco. Aramco’s projected growth rate is twice the number cited by rival International Energy Agency, Bloomberg explained.

Oil prices have fallen 18% since July, hitting USD 72 a barrel, as sluggish growth in China outweighs concerns about conflict-related disruptions in the Middle East, the business information service said. However, Donald Trump’s return to the White House may lead to shakeups in market outlook.

On the upside: Opec’s report notes that troublesome members have taken steps to improve compliance, with Kazakhstan folding in additional cuts below its quota to compensate for previous overproduction.

The next checkpoint: The group will hold its next meeting on Sunday, 1 December where it is expected to review plans for phasing out production cuts. Opec+ put off a planned output hike for December earlier this month, with the delay marking the second postponement for production restarts that were originally penciled in for October.

Market reax: Oil prices settled near a two-week low, with both Brent crude and US West Texas Intermediate up 0.4%.

#2- Baltic index continues to rise: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 4.9% yesterday to its highest since 16 October. The capesize index gained 236 points, while the panamax index rose 12 points and the smaller supramax shed 13 points.

DATA POINT-

Egypt’s increased commodity exports narrowed the country’s trade deficit by 4.4% to USD 27.6 bn in 9M 2024, Asharq Business reports, citing a document it has seen. Egypt’s merchandise exports grew 11.1% to USD 29.7 bn, while imports rose 3% to USD 57.2 bn. The country has plans to boost annual exports to USD 100 bn.

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CIRCLE YOUR CALENDAR-

Egypt will host the Autotech Exhibition on Sunday, 17 November until Tuesday, 19 November in Cairo. The event will bring together prominent local and international companies to discuss and evaluate the latest developments and trends in the automotive aftermarket and feeder industries.

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

Iraq shortlists 11 shipping firms to operate Grand Faw Port

Iraq shortlists firms to operate Grand Faw Port: Iraq has shortlisted 11 shipping companies for its Grand Faw port operations contract, with a final decision to be announced in January 2025, Iraq’s General Ports Company Director General Farhan Al Fartousi told Reuters. The port is set to commence operations in 2026, with a maximum capacity of 3.5 mn containers annually expected to be reached by 2028.

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

Who made the shortlist? Shortlisted firms include China Merchants Port Group Co and state-owned Cosco, Taiwanese container shipping line Evergreen, French liner group CMA CGM, Mediterranean Shipping Company (MSC), India’s Adani, UAE-based ABM Global Shipping, and Philippines-based International Container Terminal Services (ICTSI).

Background: Five berths have already been constructed for Grand Faw Port by contractor South Korea’s Daewoo Engineering and Construction and handed over to Iraqi authorities last week, according to the newswire. Phase one of the port is set to be completed in 2025.

REMEMBER- There’s big plans for Grand Faw: The UAE, Iraq, Turkey, and Qatar signed a preliminary agreement in April to work together on the Development Road project, which aims to connect Iraq’s Grand Faw Port to Turkey’s border via a rail and road network. The project — initiated last year by Iraq with a budget of USD 17 bn — aims to link Grand Faw Port to Turkey’s border via rail and road networks.

Hema Energy + Shengji Group to develop wellhead factory in Oman

Oman is getting a new wellhead factory: Oman’s oilfield services firm Hema Energy has inked an agreement with China’s oil and gas solutions supplier Shengji Group to develop and operate a wellhead manufacturing factory in Oman, Managing Director Azzan Asmi told Oman Observer. The facility is set to boost local supply chains and ensure the availability of critical spare parts locally, reducing downtime for end-users, Asmi said.

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The details: The factory will produce low- to mid-pressure wellheads with a capacity ranging from 2k to 5k pounds per square inch. The initial production rate will be 100 wellheads per year, with the aim of reaching 500 wellheads annually over the next five to seven years.

Who’s doing what? Shengji Group will serve as the technical partner in this project, leveraging its expertise in wellhead manufacturing, while Hema Energy will act as the local arm, ensuring market access and liaising with local stakeholders.

Eyeing exports: The factory will export later down the line, with plans to leverage Oman’s trade agreements with the US and Singapore, Asmi said.

It’s been a long time coming: Hema and Shengji Group have been in talks since last year about establishing a facility to meet Oman’s domestic demand and expand exports.

AD Ports Group and Agility Global report 3Q earnings

AD PORTS GROUP-

Abu Dhabi-based port operator AD Ports Group recorded an 11% y-o-y jump to AED 445 mn in its bottom line in 3Q 2024, according to an earnings release (pdf). The firm’s top line came in at AED 4.7 bn, rising by some 10% y-o-y in 3Q. Net income attributable to owners of the company fell 21% y-o-y to AED 301 mn. The company also became cashflow positive for the first time on a quarterly basis.

Noteworthy numbers:

Revenues from the group’s port clusters rose 24% y-o-y to AED 603 mn, driven by container concession fees in the UAE, a 42% increase in general cargo performance, and growth in international container operations;
Maritime and shipping revenues dipped 11% y-o-y this quarter to AED 2.2 bn, but was buoyed by vessel trading activities, which increased 96% y-o-y;
Logistics revenues jumped 48% y-o-y to AED 1.3 bn, driven by a 73% y-o-y growth in ocean freight, a 110% y-o-y increase in air freight, and a 46% y-o-y rise in warehousing;
Economic cities and freezones saw a 16% y-o-y increase in revenues to AED 512 mn.
Ro-ro volumes at Khalifa Port were up 53% y-o-y this quarter, supported by reroutes due to the ongoing Red Sea crisis.

On a 9M basis: AD ports logged a total net income of AED 1.2 bn, a 19.4% rise compared to the same period last year, while revenues came at AED 12.7 bn, marking a 56.9% y-o-y increase.

Making moves: The company made strategic acquisitions, including a majority stake in Tbilisi Dry Port and Safina, during the quarter.

Optimistic for the year ahead? “As 2024 comes to a close, there is reason for optimism. While geopolitical disruptions continue to affect visibility, seaborne trade volumes are still expected to grow 2.2% this year and 2.0% in 2025,” AD Ports Group CEO Mohamed Al Shamsi said. “The global economic situation has developed slightly better than expected this year, and the regional macro environment remains solid, supporting demand and rates for AD Ports Group.” Despite this, the outlook is for disruptions in the Red Sea to persist in the short term.

AGILITY-

ADX-listed Agility Global saw its net income attributable to shareholders rise to USD 37.1 mn in 3Q 2024, up from 803k in the same quarter last year, according to a financial statement (pdf). Revenues from contracts with customers increased 16% y-o-y to USD 1.2 bn. The company attributed its growth to the performance of its subsidiaries — including Dubai-based energy logistics provider Tristar, Menzies Aviation, and Agility Logistics Park — according to an earnings release.

ICYMI- Agility — which owns Dubai-based energy logistics firm Tristar — listed its operations and asset management unit, Agility Global, on the ADX in a technical listing in May.

The breakdown:

Agility’s aviation subsidiary Menzies Aviation saw its topline grow 24% y-o-y to USD 704 mn in 3Q, driven by new operations, including new licenses in Spain, acquisitions in Portugal, expansions in Belgrade, and a new warehouse in Bangalore;
The outfit’s fuel subsidiary Tristar saw a 23% y-o-y increase in revenues to USD 337.2 mn;
Agility’s warehousing subsidiary Agility Logistics Parks saw revenues increase by 12% to USD 13.2 mn, which the firm attributes to its Saudi Arabia operations. The firm recently announced the establishment of an additional 100k sqm of warehousing space in Riyadh, set to be operational during 1Q 2025.

On a nine-month basis, the firm’s bottom line increased to USD 97.4 mn, up from USD 3.5 mn, while its revenues from contracts grew 13% y-o-y to USD 3.3 bn.

Agility Global’s board has authorized a USD 65 mn distribution as the second interim cash dividend for 3Q 2024. Shareholders recorded in the company’s registry by the settlement date of 21 November 2024 are eligible to receive the dividends.

Morocco to build railway carriage factory

MANUFACTURING-

Morocco has developed a program to invest USD 8.8 bn in the railway sector over the next few years, Al Jazeera quotes Moroccan Transport Minister Abdessamad Kayouh as saying during a session at the House of Representatives. The country plans to build 1.3k-km-long new lines for high-speed trains and 3.3-km lines for regular trains to connect 43 cities in total.

ALSO- Localizing railway carriage production is on the cards: Morocco plans to build a railway carriage factory with funding from the state-owned and operated National Railways Office (ONCF), The factory will help meet domestic demand as well as export to other African countries. No timeline or investment ticket have been disclosed.

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RAIL-

Kuwait receives bids for railway project study: Kuwait’s Central Agency for Public Tenders (CAPT) has received four prequalified bids for a tender for the study, design, and preparation for the first phase for its portion of the GCC railway, Arab Times reported. The consulting study tender will be implemented over 12 months, while the implementation will take 30 months.

LOGISTICS HANDLING-

Chefaa and USAID to boost pharma access: Pharma-delivery platform Chefaa has inked an agreement with USAID Business Egypt to digitize the country’s pharma supply chain to help boost healthcare access, according to a press release (pdf). Under the agreement, the two sides will support 250 pharmas by “enhancing their digital presence, building pharmacist capacity, and improving their supply chain and logistics.”

OTHER STORIES WORTH KNOWING THIS MORNING-

Qatar Airways launches Doha-Nepal route: Qatar Airways started operating daily flights yesterday on the Doha-Bhairahawa-Kathmandu-Doha route, with a flight landing in Nepal’s Gautam Buddha International Airport (GBIA). (The Rising Nepal)
Iraq + UAE get new weekly feeder service: Singaporean shipping firm Pacific International Lines (PIL) is launching a new weekly feeder service, dubbed as the Iraq Feeder Service (IQF), between Iraq’s Umm Qasr Port and the UAE’s Jebel Ali Port starting 15 November. (Statement)

Russia’s Arctic LNG 2 output stalls due to Western sanctions

Russia’s LNG project at a standstill: Russia’s Arctic LNG 2 project has seen gas field output drop to nearly zero in November, after it stopped liquefaction last month due to Western sanctions, Bloomberg reports. The project saw its lowest production rate this month since September 2023. The Novatek-led facility pumped an average of 0.4 mn cubic meters of gas a day in the first 10 days of November, a drop of more than 90% from the average daily output in October, Bloomberg says, citing an anonymous source. The first Arctic LNG 2 train in 4Q 2023 produced between 2 mn and 14 mn cubic meters a day, even during pre-commissioning and commissioning.

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The facility has a design capacity of 19.8 mn tons of LNG per year, but only one train able to produce 6.6 mn tons annually is currently operational, according to Bloomberg. The facility also increased its production of super-chilled fuel in August and September, as the ice conditions allowed the deployment of gas carriers and export of cargoes, but none of those shipments have been delivered to overseas ports.

ALSO- China trumps US in trade battle in South America: China is already overtaking the US in South American trade, tapping the region’s major exports including corn, copper, soy, beef, and battery-metal lithium, Reuters reports. China is the go-to trade partner for Brazil, Chile, and Argentina.

Calendar

NOVEMBER

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.

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Port of Trieste.

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

2Q 2025: ICAO Facilitation Conference 2025 (FLAC 2025), Dohar, Qatar.

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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