It’s a blockbuster day for logistics forums

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What we're tracking today

TODAY: It’s a blockbuster day for logistics forums + Asyad breaks ground on Muscat Airport Freezone

Good morning, friends. It’s a bumper issue this morning as we unpack the latest emerging from KSA’s Global Logistics Forum and UAE’s Global Rail Summit, as well as a healthy dose of project updates in Oman and Saudi. First, the latest bad news from the Boeing saga…

THE BIG LOGISTICS STORY ABROAD- Boeing cuts nearly 10% of its workforce: Boeing said it plans to cut 17k jobs — nearly 10% of its workforce — and delay its delivery of the 777X jet as the embattled company enters its fifth week of a machinists’ strike that has brought production of two of its models to a standstill. The company is currently waiting for the US’ National Labor Relations Board to rule on the unfair labor practice charge Boeing filed against the machinists’ union last week.

A bleak earnings outlook: The aviation giant’s 3Q earnings, set to be released later this month, will be impacted by “near-term challenges” due to the ongoing strikes and charges in the commercial aircraft sector, CEO Kelly Ortberg said in a preliminary earnings statement released on Friday. The firm forecasts a topline of around USD 17.8 bn, but a better than expected negative operating cash flow settling at USD 1.3 bn, instead of the expected USD 3.8 bn, Reuters reported on Saturday.

There will be delayed 777x delivery dates: Boeing has pushed back delivery dates of its new 777x aircrafts, with first delivery of its 777-9 airplane forecasted to be in 2026 and its 777-8 freighter aircraft in 2028. The delays are attributed to setbacks in flight testing for the individual aircraft models and the labor strikes, says the statement. The manufacturer also announced plans to halt its 767 freighter program in 2027, after it completes and delivers the 29 planes on order.

HAPPENING TODAY-

The Global Logistics Forum is wrapping today in Riyadh. The forum gathers key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector with a specific focus on how the sector can adapt to global climate change and incorporate sustainability into their supply-chain operations.

The Global Airport & Aviation Forum is kicking off on Wednesday and will run through to Thursday 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.

WATCH THIS SPACE-

#1- Crown Prince Mohammed bin Salman will reportedly skip the BRICS summit in Russia next week. Instead, Foreign Minister Faisal bin Farhan Al Saudi will represent Saudi Arabia at the summit, which runs from 22-24 October, Reuters reported on Thursday, citing a Kremlin statement. The Crown Prince’s absence will make Saudi Arabia the only country not represented by its leader, according to Russian President Vladimir Putin’s foreign policy aide, Yuri Ushakov. Although Russia extended an invitation to the Crown Prince, no reason was given for his absence.

REMEMBER- Officials in Riyadh said earlier this year that the Kingdom is still considering an invitation to join BRICS. The remarks in February came after South Africa’s foreign minister said the Kingdom had formally joined the alliance.

#2- KSA is set to begin construction on its USD 7 bn land bridge project in early 2025, with negotiations for the final cost and financing of the project near the closing stages, MEED reported last week, citing a source close to the project. The project, slated for completion in seven years, will connect the Kingdom’s Red Sea coast to the Arabian Gulf and features six railway lines, and seven logistics centers.

MORE FROM THE GROUND- Egypt will reportedly launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi interconnection project in April 2025 instead of May, Asharq Business reported on Thursday, citing an unnamed government source. The first phase of the project — which will see 1.5 GW of the planned 3 GW come online — is set to be completed by June instead of July 2025.

IN OTHER EGYPT UPDATES- Egypt’s General Authority for Investment and Freezoneswill set up five more freezones under the special freezones system in response to investor demand, an unnamed government official told Al Arabiya. The new zones will be located in Greater Cairo and New Alamein and will cover various sectors. The in-the-works zones are in addition to the six areas already listed in GAFI’s plan for next year.

#3- US announces a new round for sanctions against Iran: The US has expanded its targeted sanctions against Iran’s petrochemical and petroleum sectors after Iran fired a missile on Israel earlier this month, according to a press release on Friday. The new sanctions include measures against Iran’s ‘ghost fleet’ that reportedly carries Iran’s illicit oil to buyers around the world. The government is also designating 16 entities and 17 vessels as blocked property on the back of their involvements in shipments of petroleum and petrochemical productions in line with the national Iranian Oil Company. It also imposed sanctions on six entities involved in Tehran’s petroleum trade and identified six ships as blocked property.

It won’t stop here: The US could possibly cut off Iran’s oil exports through tougher enforcement of previously imposed sanctions and increased monitoring of vessels with transponders turned off, Eurasia Group told Reuters on Friday. It could also try to yield pressure on other countries — including Malaysia, Singapore, and the UAE — to support its enforcement efforts. Other actions possibly include targeting Chinese firms shipping Iranian crude, as China buys nearly 90% of Iran’s crude-oil exports.

#4- Turkey goes ahead with anti-dumping duties: Turkey will impose anti-dumping duties on steel imports coming in from China, Russia, India and Japan to crackdown on unfair competition following appeals from domestic producers, Reuters reported on Friday, citing an Official Gazette statement. The duties, which are valued at some USD 2 bn to USD 2.2 bn, are slated to impact some 4 mn tons of product imports, Turkish Steel Producers Association secretary general Veysel Yayan told the newswire. The duties vary from 6.10% to 43.3% of cost, insurance and freight prices, with the highest tariffs falling on Chinese imports.

#5- Oman’s OTTCO to award storage project consultancy by early next year: Oman Tank Terminal (OTTCO) is expected to award the FEED consultancy services contract for the Ras Markaz crude oil import and export storage terminal expansion project in 1Q 2025, sources close to the project told Zawya Projects on Thursday. The facility, to be located some 70 km south of Duqm, is expected to be completed by 4Q 2027 and looks to boost the terminal's crude oil storage capacity. The tender was initially issued in August.

#6- Peninsula expands Middle East operations: Global maritime fuel supplier Peninsula is launching new supply operation depots for conventional and alternative bunker fuels in Abu Dhabi and Jebel Ali, adding to its existing operations in Fujairah, CEO Kenny MacLean told Reuters on the sidelines of SIBCON 2024 last week. The company will concentrate its LNG bunker services on established shipping routes and areas near LNG infrastructure and loading facilities.

MARKET WATCH-

#1- Oil prices shed 1.5% in early morning trading in response to fears regarding weakened demand on the back of disappointing inflation data from China, Reuters reports. Brent crude futures lost USD 1.26 trading at USD 77.78 a barrel at 040.20 GMT, while US West Texas Intermediate (WTI) futures fell USD 1.20 to USD 74.36 a barrel. Official data released on Saturday showed China's deflationary pressures worsened last month leaving investors in a tough spot when assessing the overall size of China’s stimulus package to revive the economy.

Opec+ is prioritizing high oil prices over market share amid weak demand and rising output from non-member oil producers, Salih Yilmaz, senior analyst at Bloomberg Intelligence, told Asharq Business (watch, runtime, 8:28). Opec+ does not anticipate long-term market share issues as high-cost producers are expected to exit the market by 2030, Yilmaz said, nodding to shares recently accumulated by US shale operations.

Survey insights: Some 70% of respondents see Opec+ maintaining its price-supporting strategy, while 72% do not expect Opec+ to pursue market share growth at the expense of prices into 2025, according to a recent Bloomberg Intelligence survey.

REMEMBER- Opec+ initially planned to start phasing out production cuts in October, but later scrapped the plans as the price of oil sagged. The UAE is set to raise production in 2025, after Opec+ granted it a higher production quota of 3.5 mn barrels per day in 2025, up from the current 2.9 mn.

What to watch for next: Oped will release its October oil market report today, while the IEA will follow suit tomorrow.

#2- Iraq has started exporting 800 to 1k metric tons per day of jet fuel to global markets as Middle East prices surge, according to a statement released last week. The move is part of Iraq’s plan to strengthen its global position as a producer and exporter of oil and its derivatives.

#3- Baltic index sees slight bump: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 1.1% to 1,809 points on Friday, breaking a nine-day losing streak. The capesize index was up about 80 points to 2,835 points, while the panamax index dipped 20 points to 1,435 points. The smaller supramax was down 5 points to 1,269 points.

#4- The Drewry World Container Index fell by 4% to USD 3,349 per 40-ft container on Thursday, according to the latest index readings. Spot rates for 40-ft containers are now 68% below the previous pandemic peak of USD 10.4k in September 2021, but remains 136% above the pre-pandemic rate of USD 1.4k. The average composite index YTD is USD 4,097 per 40ft container, which is USD 1,248 higher than the 10-year average rate of USD 2,831.

DATA POINTS-

#1- Shipping volume passing through the Suez Canal was down 70% y-o-y in 3Q 2024, as shipping lines continue to divert away from the route amid continued Houthi attacks on passing vessels, according to data from the IMF’s PortWatch.

#2- Airbus deliveries were down 9% y-o-y in September to 50 jets, raising concerns that the manufacturer could fall short of its 770 aircraft delivery target for this year, according to a statement cited by Reuters on Thursday. The manufacturer delivered 497 jets this year by the end of September, which means it needs to deliver 273 in the next quarter to reach its goal. The planemaker revised its annual target in July to 770 aircrafts, down from 800. The manufacturer has blamed shortages of engines and other parts for lags in deliveries.

On a positive note: The firm has managed to boost its delivery figures by 2% y-o-y, delivering 487 jets to 77 customers this year, compared to 488 to 78 customers between January and September the year prior.

PSA-

UAE exporters will no longer be required to provide exit certificates from freezones or similar facilities to reclaim Value Added Tax (VAT), following new amendments to VAT regulations (pdf) by the UAE’s Finance Ministry, set to take effect 15 November. Under the updated rules, exporters will only need to submit standard documentation to verify goods have left the UAE, including either:

Official evidence, such as an export certificate issued by customs;
Commercial evidence, such as documents from transport companies (i.e. air, sea, or land waybills/manifests);
A shipping certificate provided by transportation companies when commercial evidence isn’t available.

Other changes worth noting: The export of services like restaurant, hotel, and catering services; cultural, artistic, sporting educational services; real estate services; and transportation services will be subject to VAT. Meanwhile, businesses can now recover VAT input expenses for health ins. provided to employees’ spouses and up to three children; and government transfer of real estate assets will be exempt from VAT.

REFRESHER- The cabinet approved the amendments earlier this week, with one of the major changes being an exemption of investments through fund managers and the transfer and conversion of crypto from the 5% VAT.

KSA’s Global Logistics Forum inks SAR 17 bn worth of agreements on first day

Saudi Arabia has reportedly inked 69 agreements worth over SAR 17 bn, during the first day of its Global Logistics Forum in Riyadh, Argaam reports, citing a statement made by Saudi Transport and Logistics Service Minister Saleh Al Jasser to Al Arabiya TV yesterday. Information on specific agreements is still trickling in as we head to dispatch. The forum is set to conclude today.

The Kingdom has its sights set on growing into a global logistics hub by 2030 with plans to funnel a whopping SAR 1 tn into its logistics sector, Saudi Transport and Logistics Services Minister Saleh bin Nasser Al Jasser said yesterday at the opening ceremony of the forum in Riyadh. SAR 200 bn of this amount has already been allocated under the National Transport and Logistics Strategy launched in mid-2021.

Air freight plans: Saudi’s General Authority of Civil Aviation (GACA) is reviewing applications from four undisclosed international companies looking to enter Saudi Arabia’s air-freight market, Gaca President Abdulaziz Al-Duailej told Aleqtisadiah. Saudi wants to expand its air freight fleet from the current seven cargo planes to 27 and plans to increase the overall number of aircraft in the Kingdom from 241 to 657 by 2030, Al-Duailej said at the forum. Saudi’s fleet would include 187 wide-body and 470 narrow-body aircraft, positioning the Kingdom’s aviation infrastructure as a globally competitive power, he added.

ALSO- Four airports will be offered for private sector management in 2025, Investment Minister Khalid Al-Falih was quoted by the media here and here.

Here’s some of the agreements inked on the first day:

#1- KSIADC + Ewpartners partner to develop logistics zone: King Salman International Airport Development Company (KSIADC) inked a MoU with international private equity firm Ewpartners to explore the development of an e-commerce and logistics special economic zone within King Salman International Airport, Spa reports. The zone is slated to boost logistical linkages between China and Saudi Arabia, to expand the Kingdom’s footing as a key regional air cargo hub. The investment ticket was not disclosed.

#2- Agility sees logistics facilities near RUH: Kuwait’s Agility inked an agreement with the Saudi Railway Company (SAR) to explore the requirements for establishing storage, transportation and processing facilities in Sudair City for Industry and Businesses and near King Khalid International Airport (RUH), according to a statement.

#3- Licenses for Riyadh SILZ: GACA has awarded four commercial licenses to leading global companies in the fields of innovative technology, artificial intelligence, logistics services, and e-commerce to operate in the Riyadh Integrated Special Logistics Zone (SILZ), Spa reports. GACA granted a commercial license to a subsidiary of Alat to engage in light manufacturing operations and logistics services, a commercial license to Bahri Logistics to provide logistics services for Boeing aircraft spare parts, a commercial license to Danish company Danfoss to conduct light manufacturing operations, and finally a commercial license to Chinese e-commerce giant Shein for product distribution in a bid to establish a regional distribution hub in the zone to serve the Middle East and North Africa.

Asyad Group breaks ground on Muscat Airport Freezone

Oman’s logistics solutions provider Asyad Group has broken ground on the first phase of the Muscat Airport Freezone (MAFZ), according to a statement. The freezone’s strategic location adjacent to Muscat International Airport will offer seamless integration within Asyad’s extensive logistics network, linking land and sea gateways, the dry port, and other freezones. The investment ticket and timeline for the project have not been disclosed.

What we know: The project’s first phase includes land preparation, internal roads, and public services facilities, the statement notes. MAFZ will be freight-focused, set to boost exports and imports, specially for pharma, perishables, and e-commerce product shipments.

What they said: “As Oman’s first freezone of its kind, this strategic project highlights our commitment to private sector partnerships in building a leading air logistics hub. It will drive economic growth and unlock limitless opportunities for both local and global companies in the logistics sector,” MAFZ Director Faisal Ali Al Balushi said in the statement.

Background: Asyad inked an agreement with Opaz for the development of the MAFZ back in December. The freezone will span over 1.7 mn sqm, with phase one to be spread over 370k sqm of the total zone. MAFZ will offer 100% foreign ownership, zero import and export duties, no minimum capital requirements and up to 15 years of income tax exemption. The group issued a tender back in March for infrastructure development of phase 1 of the project.

IN OTHER ASYAD NEWS-

Asyad and Uzbekistan inked a cooperation agreement to boost cooperation and trade through new projects in logistics, textiles, agriculture, real estate, and tourism, Uz Daily reported on Friday. The agreement was signed during a meeting between Asyad’s chairman Nasser Suleiman Al Harthi and Uzbekistan’s Investments, Industry and Trade Minister Laziz Kudratov to discuss further collaboration in these fields.

Hafeet Rail and Etihad Rail ink a slew of agreements at Global Rail Summit

The UAE’s Global Rail Summit last week saw a flurry of MoUs inked during the two-day conference. The event brought together a wide range of industry leaders and financiers to development efforts in the mobility solutions sector.

HAFEET RAIL-

Hafeet Rail inked a contract with Progress Rail for 27 state-of-the-art heavy-haul freight locomotives for the Oman-UAE railway project, according to a press release. Progress is a subsidiary of US-based Caterpillar.

Details: The locomotives are designed for the region’s harsh environment. Each train will span c. 2 km and be configurable to transport freight cargo, including bulk materials, containers, petrochemicals, metallic products, and other industrial goods.

AND- Hafeet tapped Systra for project consultancy: Hafeet enlisted French engineering and consultancy firm Systra to deliver engineering and administrative consultancy services for the project, Wam reports. Systra will provide technical support, which includes managing contracts, and monitoring contractor and supplier performance. Systra is also tasked with supervising all phases of project execution.

ETIHAD RAIL-

Emerge to install solar systems at Ghuweifat freight station: UAE’s national railway network operator Etihad Rail signed an agreement with Emerge – a Masdar and EDF’s JV – to supply Al Ghuwaifat freight terminal with solar power, according to a statement published on Friday. The agreement includes installing a 600 kWp solar PV and a 2.56 MWh battery energy storage system, powering 85% of the border-town terminal’s energy needs. The project will offset 8.5k tons of carbon emissions for the contract’s duration.

Etihad Rail also signed 10 MoUs and agreements with a slew of international companies to develop the UAE’s railway and transport infrastructure, Wam reported on Thursday.

The agreements signed included;

An agreement with India’s Rites, a transport infrastructure consultancy, to explore cooperation in developing railways and related infrastructure in the UAE and GCC. The agreement covers rolling stock supply, leasing, and management of railway infrastructure in the region;
A MoU with leading UAE-based AI and big data analytics firm Presight AI, to explore and integrate digital solutions across Etihad Rail’s operations. Under the agreement, the pair will look to develop AI-driven solutions for streamlining operations and planning;
An agreement with South Korea’s Korea National Railway (KNR) and Korea Railroad Corporation (KORAIL), to collaborate in project management and railway construction. Under the agreement the pair will engage in technical sharing and knowledge exchanges in railway construction, operations, facility maintenance and rolling stock;
An MoU with the Austrian Federal Economic Chamber (WKÖ), for the exchange of knowledge and technical collaboration in the railway sector, including the planning, construction, operation, maintenance and technology;
An agreement with global engineering services firm L&T Technology Services Lmt, to develop a national mobility innovation center in Abu Dhabi;
An MoU with IronLev to investigate magnetic levitation technologies to boost rail operations, to streamline operations and reduce the need for costly infrastructure;
An agreement with European deep-tech firm Nevomo for autonomous rail solutions, to investigate the potential for integrating autonomous solutions into the railway sector;
An MoU with Hitachi Rail to boost communication systems and smart mobility solutions, including boosting cybersecurity systems along Etihad Rails UAE railway network;
A partnership agreement with Hitachi to fuse Mobility-as-a-Service (MaaS) technology into the UAE’s rail infrastructure, creating a smart platform to streamline rail operations;
An MoU with Singapore based multi-modal public transport operator SBS Transit, to explore mobility solutions and AI applications in the railway industry.

Agility begins final phase of expansion at its ALP complex in Riyadh

Kuwaiti logistics giant Agility has kicked off plans for the SAR 250 mn (c. USD 66.5 mn) expansion project at the Agility Logistics Parks (ALP) warehousing complex in Riyadh, according to a press release. The first phase of the expansion project is slated to be operational by 1Q 2025.

What we know: The expansion will add 100k sqm of class A warehousing to the ALP, expanding the entire project’s size to a little over 551k sqm, the statement notes.

More on the Riyadh Logistics Park: ALP Riyadh offers storage, distribution, processing, and fulfillment operations to Saudis leading consumer, industrial, and e-commerce industries, the statement notes. A warehouse at the Riyadh park became the first building in the Kingdom and the first warehouse in the GCC to receive EDGE Advanced certification.

There’s more in the pipeline: ALP already operates a 200k sqm facility in Dammam. The company is also investing over SAR 611 mn (c. USD 163 mn) to develop a third ALP complex near Jeddah. The project — announced back in 2022 — reportedly began construction of a warehousing complex on a 576.7k sqm parcel south of Jeddah in 1Q 2023. The Jeddah park is slated to be operational in 1Q 2025. Under the agreement with Saudi Arabia’s State Properties General Administration (SPGA), Agility has the right to operate the park for 25 years.

Warehousing has been booming in the Kingdom: Rents for warehousing facilities in Saudi Arabia continued to rise in 1H 2024 on the back of rising demand. Riyadh’s warehouse and logistics capacity has grown to 28 mn sqm over the past 12 months, with most of the new facilities located in the Industrial Gate City (IGC), while Jeddah’s capacity has grown to 19.6 mn sqm, driven by key projects including Maersk’s logistics park, and Aramex’s warehouse at Jeddah Islamic Port. The Dammam Metropolitan Area’s industrial and logistics infrastructure supply remain “relatively unchanged due to a lack of major completions” over the past year, Knight Frank says.

DP World resolves UK row + aims to commit GBP 1 bn towards London Gateway today

DP World’s UK row resolved: Dubai port operator DP World will take part in a UK investment forum today and commit GBP 1 bn (c. USD 1.3 bn) in investments for the DP World-operated London Gateway port following a temporary pause in plans last Friday, Bloomberg reports, citing a source familiar with the matter.

What happened? DP World executives were reportedly angered by comments by UK transport secretary Louise Haigh and UK Deputy Prime Minister Angela Rayner regarding working practices at DP World’s subsidiary P&O Ferries, with Haigh calling DP “ rogue employers ” and calling for a boycott. UK Deputy Prime Minister Angela Rayner was also quoted describing a P&O Ferries’ mass sacking of hundreds of employees “an outrageous example of manipulation,” BBC added.

Starmer saves the day: UK Prime Minister Keir Starmer indicated to the BBC that Haigh’s comments were not “the view of the government” — and DP World had welcomed the PM’s intervention, “following constructive and positive discussions with the government, we have been given the clarity we need. We look forward to participating in Monday’s international investment summit,” DP World said in a statement picked up by Bloomberg on Saturday.

A boon for London Gateway’s operations: London Gateway — which boasts three berths with a four set to open within weeks — would see the addition of two more berths, increasing the port’s capacity by 50% and bringing DP World’s total employment at the port to 1.6k from the previous 1.2k, Bloomberg writes. The expansion would strengthen London Gateway’s position to take over Felixstowe as the UK’s busiest container facility by 2030.

BACKGROUND- DP World has been looking to develop berths five, six, and seven at London Gateway, without specifying the investment ticket or timeline. The move looks to meet the additional capacity needs expected in UK markets starting 2027. DP World is investing AED 2.1 bn to expand London Gateway, Dubai’s First Deputy Ruler Maktoum bin Mohammed bin Rashid Al Maktoum said in a statement back in August, ahead of DP World’s launch of the port’s GDP 350 mn fourth berth. Construction work on the London Gateway expansion project — which will handle around 55% of the UK’s South East cargo — was launched nearly two years ago.

There’s a catch? The latest expansion plan — which is subject to building and environmental approvals — would require land to be reclaimed along River Thames in order to add a fifth berth slot to open in about three years, a second rail terminal, and a six berth following that, Bloomberg added.

IN OTHER DP NEWS-

DP World is looking to “tap the China market more,” on the heels of its acquisition last month of Hong Kong-based logistics firm Cargo Services Far East, CEO Sultan Ahmed Bin Sulayem told South China Morning Post on Thursday. The acquisition has better positioned the firm in China, giving it “better access to logistics and connecting [its] customers to other regions,” Bin Sulayem said. The firm has taken a particular interest in China’s Greater Bay Area, which Bin Sulayem notes has a lot of potential going forward, with a collective USD 1.7 tn GDP and population of over 89 mn.

The Greater Bay Area? Five years ago, Beijing established the Greater Bay Area to unite Hong Kong, Macau, and nine mainland cities in Guangdong province into a strong economic hub. “We watch the fantastic development in the Greater Bay Area. When you put Hong Kong as part of the Greater Bay Area, growth opportunities become very significant,” Bin Sulayem. The company is exploring the robust manufacturing capabilities in Guangzhou, the capital of Guangdong province in southern China, and ways to enhance the efficiency of shipping its products globally, he added.

Adnoc L&S + Wanhua JV places USD 250 mn order for ammonia carriers

Adnoc L&S + Wanhua JV places USD 250 mn order for ammonia carriers: AW Shipping — a JV between Adnoc L&S and Wanhua Chemical Group — will purchase USD 250 mn very large ammonia carriers from China’s Jiangnan Shipyard, according to a statement (pdf) released on Thursday. The carriers are considered among the largest in the world, having an individual carrying capacity of 93k meters of ammonia and are slated for delivery between 2027 and 2028.

There’s more to come: We learned Adnoc L&S is receiving LNG carriers built by Jiangnan Shipyard in 2025 and 2026 when the company added five new VLGCs to its order books back in April 2023.

ICYMI- Adnoc + Wanhua JV ordered 11 dual-fuel low carbon carriers worth USD 1.9 bn from Jiangnan Shipyard back in July, to expand Adnoc’s capacity to transport lower-carbon energy sources. The VLEC carriers will operate under a 20-year time charter contract and are expected to generate USD 4 bn in revenues.

REMEMBER- This is all part of a Adnoc L&S’ expansion spree revealed ahead of the company’s USD 769 mn IPO last year. Since then, the firm received a Hanwha Ocean-produced new-build very large crude carrier (VLCC), the Hafeet, in June 2023. Adnoc L&S also received a second newbuild dual-fuel VLCC the following month and eight self-propelled jack-up barges.

UAE + Malaysia complete CEPA negotiations to reduce trade barriers

UAE + Malaysia complete CEPA negotiations: The UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi has concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with Malaysia’s Investment, Trade, and Industry Minister Zafrul Aziz, Wam reported on Thursday. The CEPA aims to eliminate or lower tariffs, reduce trade barriers, and promote private sector collaborations as well as new investments. The UAE, through its CEPA program, aims to increase its non-oil foreign trade to AED 4 tn.

The UAE aims to capitalize on this agreement to boost certain sectors: Malaysia offers several opportunities for UAE firms, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services, Al Zeyoudi said. Malaysia currently ranks as the UAE’s 12th largest Asian trading partner, with the non-oil trade between the two nations amounting to USD 2.5 bn in 1H 2024.

What they said: “We view the UAE as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa and certain parts of Europe, particularly as Malaysian exports such as electrical and electronics, machineries, jewelry, prepared foodstuff, tropical fruits, palm oil, cocoa and rubber would immediately enjoy zero import duties when this Agreement comes into force,” Aziz said in the statement.

Future plans: The UAE is currently strengthening its ties through CEPA agreements with many countries, especially with the Association of Southeast Asian Countries (ASEAN) bloc, with agreements with Indonesia and Cambodia pending. Agreements with Vietnam and the Philippines are also in the works, and are set to be finalized by the end of the year.

IN OTHER DIPLO NEWS-

Morocco + South Korea discuss rail cooperation: Moroccan Transport Minister Mohammed Abdeljalil discussed with South Korean Vice-Minister Baek Won Kug possible cooperation in the rail and transport sectors. (Hespress)

A heap of updates in rail, equipment, shipping, aviation and warehousing from Mococco, KSA, the UAE, Iraq and Jordan

EQUIPMENT-

ADES renews contract for two onshore rig operations: PIF-backed oil and gas drilling services provider ADES Holding renewed contracts for ADES 13 and ADES 14 onshore rigs in KSA with a period of ten years, starting after the expiry of the current contract, according to a Tadawul disclosure. ADES has a fleet of 87 rigs across nine countries, 38 of them are onshore drilling rigs.

RAIL-

EIB + ONCF partner up on railway adaptation: The European Investment Bank (EIB) has inked a technical assistance partnership agreement with Morocco’s National Office of Railways (ONCF) to strengthen climate resilience and develop an adaptation strategy for Morocco’s railway network, according to a statement released last week.

The details: The 24-month collaboration will involve climate risk assessment, developing detailed maps, vulnerability analysis, and technical recommendations. The project aims to strengthen the resilience of the network, reducing future costs related to climate damage and operational disruptions.

SHIPPING + MARITIME-

Global shipping organization Bimco has adopted Autoshipman, the first management agreement for autonomous ships, offering a contractual base for third-party ship managers to operate the vessels, according to a statement released last week. The agreement has been developed in response to the growing use of remotely controlled vessels in the commercial shipping sector, says the statement. Under Autoshipman, vessels will have the flexibility to switch operational modes, even in the middle of a voyage, to allow ships to be partially or fully manned when passing through certain jurisdictions or calling at a port.

AVIATION-

Dnata adds 14 GPUs to Dubai fleet: UAE air services provider dnata has added 14 new 180kVA electric ground power units (GPU) to its ground support equipment fleet at Dubai International Airport (DXB), according to a statement released last week. The GPU — a device used to provide electric power for stationary aircraft — will handle 33% of all GPU utilization and will replace diesel-powered equipment, reducing fuel consumption by some 550k liters annually. The air services provider has already deployed four electronic GPUs in its operations, while the remaining 10 are expected to arrive in November.

Joramco + AIG make airport expansion plans: Dubai Aerospace Enterprise’s aircraft MRO and engineering arm Jordan Aircraft Maintenance Limited (Joramco) has inked an agreement with Jordan’s maintenance firm Airport International Group (AIG) for expansion plans, according to a statement released last week. This agreement represents a key milestone in the company’s growth strategy for the upcoming years, particularly with its cutting-edge Hangar 7, set to be operational by the end of 2024, the statement said.

What they said: “This transformative investment underscores our steadfast commitment to expanding QAIA's infrastructure, enhancing its capacity and reinforcing its strategic role within the region. This significant project will not only boost aircraft maintenance capabilities and increase high end services to airlines but also contribute to the local economy by creating hundreds of new job opportunities,” Airport International Group CEO Nicolas Deviller said in the statement.

STORAGE + WAREHOUSES-

Italy’s Raccortubi opens a warehouse in Sharjah: Italian steel supplier Raccortubi, a subsidiary of Commerciale Tubi Acciaio, has inaugurated a AED 25 mn (c. USD 6.8 mn) 20k sq ft warehouse in Sharjah’s Hamriyah Freezone to support oil and gas projects in the region, Trade Arabia reported last week, citing a statement.

RAIL-

Tender issued for Iraq’s Baghdad-Baiji Railway project: The General Company for Iraqi Railways has issued a tender for the completion and restoration of the Baghdad-Baiji railway line, with the deadline for submitting proposals set at 14 November, according to a statement published last week. The selected firm would provide design services as well as restore the existing track along the Taji-Baiji Railway. The project, spanning some 200 km, is expected to take over 24 months to complete. The project is being financed by the World Bank under its Emergency Operations for Development section.

OTHER STORIES WORTH KNOWING THIS MORNING-

Etihad Airways reintroduces its Airbus A380: UAE’s Etihad Airlines is planning to put its Airbus A380 superjumbo double-decker back in operational capacity to London Heathrow, New York JFK and Paris starting 1 November 2024, and Singapore starting 1 February 2025. (The National)
Egypt makes vehicle import easier for disabled persons: Egypt has approved legislation to streamline importing vehicles for people with disabilities. Customs duties and value-added tax on said vehicles will be waived for persons holding a Disability Verification and Comprehensive Services Card. (Daily News Egypt)
Riyadh Air to use Sabre’s AI-powered solutions: Saudi Arabia’s Riyadh Air has inked a strategic agreement with Airline Retail Platform SabreMosaic to use its AI-powered Offer Optimization technology to develop tailored offers through various customer interaction points starting 2025. (Statement)
Mawani to cooperate with Hamburg on port efficiency: Saudi Arabia’s General Port Authority (Mawani) has inked an MoU with the Hamburg Port Authority (HPA) and the Hamburg Port Consulting Company (HPC) to enhance capabilities and operational efficiency at Saudi ports, automation, and sustainability in the maritime sector. (Statement)

Rising tensions in the South China Sea cause concern over key global trade route

Concerns are growing over potential disruption to global trade as tensions rise in the South China Sea (SCS) — a crucial trade bottleneck for China, Japan and India, CNBC reported on Friday. The situation in the SCS “remains tense and unchanged,” Filipino President Ferdinand Marcos said in a statement last week. The South China Sea is the “most valuable shipping land in the world in terms of the value of trade that transit through it,” chief global geo-macro strategist at BCA Research Marko Papic told CNBC.

Background: The South China sea, located in the western Pacific Ocean, falls between China, Taiwan, the Philippines, Vietnam, Indonesia, Thailand, Malaysia, and Cambodia. Most of these nations have disputed claims to territory in the waters, yet China in particular, claims most of the area and uses “gray zone” tactics, CNBC writes, which are coercive actions that go beyond normal diplomatic activities but fall short of an armed conflict.

What’s at stake? The CSIS China Power Project estimates that USD 3.4 tn in trade passed through the South China Sea back in 2016, constituting 21% of global trade, CNBC reports.

Tensions have been high: China and the Philippines exchanged accusations of intentionally ramming coast guard vessels in the disputed waters of the South China Sea last month. The Philippines claimed that a China Coast Guard vessel 5205 “directly and intentionally rammed the Philippine vessel” without provocation, while Beijing said that a Philippine ship “deliberately rammed” a Chinese vessel. The collision — which happened near the Sabina Shoal in South China Sea — was the fifth in a month amid a long-running escalating rivalry between both parties.

Calendar

OCTOBER

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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