Land disputes + acquisitions

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What we're tracking today

TODAY: Iran eyeing a joint shipping firm with Russia as trade ties grow + is the tanker market getting a boost from rising US oil exports?

Good morning, lovely people. We have a bit of everything for you in this morning’s issue — with news from the startup world, a fresh e-commerce acquisition, and updates on a legal dispute concerning a major regional logistics firm.

THE BIG LOGISTICS STORY- Talks between Russia and Iran over a trade agreement are entering their final stages, with plans to sign it by the end of the year. Meanwhile, Dubai’s InstaShop has acquired wholesale marketplace GroCart.

PSA-New traffic rules for delivery riders in Abu Dhabi: Abu Dhabi’s Joint Safe Traffic Committee is banning delivery bike riders from driving outside the right lane on highways where the speed limit is above 100 km/h, as part of a plan to improve traffic safety for the riders, according to an Integrated Transport Center statement.

WATCH THIS SPACE-Iran wants to set up a joint shipping firm with Russia to facilitate trade and transit “as soon as possible,” Iranian Roads and Urban Development Minister Mehdrad Bazrpash said at the Saint Petersburg International Economic Forum, according to Iran’s semi-official Mehr News Agency.

ALSO FROM THE FORUM- Iran, Russia, Uzbekistan and Turkmenistan reached a quadrilateral agreement over a transit route within the maritime domain of the Amirabad, Anzali and Caspian ports, the news agency reports, without clarifying the details of the agreement. Russia is also interested in potentially importing Iran-made construction materials, Russian Construction, Housing, and Utilities Minister Irek Faizullin is quoted as saying on the sidelines of the forum, according to the news agency.

The Enterprise Finance Forum is our flagship gathering — the one so many of you have been waiting for. The two-day event takes place this September and will be the latest in our must-attend series of invitation-only, C-suite-level gatherings. Stay tuned for more information on the location.

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STAY TUNED for more detail about our exciting agenda in the weeks to come.

MARKET WATCH-

Iran’s oil exports have reached a five-year peak in May despite US sanctions, Reuters reports, citing sources in the know. Exports in May reached 1.5 mn bbl / d in May, as the country boosted its output to over 3 mn bbl / d, which totals 3% of global supply, Reuters writes, citing OPEC figures. The rise in exports comes as OPEC+ cut oil output in a bid to stabilize the market.

Are sanctions against Iran easing? While the US has attempted to curb Iranian oil exports by exiting the 2015 nuclear accord, exports have risen during current US President Joe Biden’s time in office. “Sanctions are in place but perhaps they are not fully implemented or monitored,” one consultant is cited as saying. The consultant added that another indication that exports are rising is the increase of trade in the “dark market, where there is no transparency and so they are not reflected in formal global supply and export data.”

The tanker market is expected to benefit from increased US oil exports despite challenges facing the industry, according to a report (pdf) from Gibson. A decline in US oil rig counts — which is due to various factors including inflation, labor shortages, and oil demand concerns — has not hindered the steady increase in US oil output, as operators continue to increase their efficiency with new drilling technologies and enhanced oil recovery techniques to maximize recoverable oil. The International Energy Agency predicts this trend will continue, with the rise in US oil demand resulting in more cargo for export.

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That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

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CIRCLE YOUR CALENDAR-

Coupa Inspire’s Supply Chain Summit kicked off yesterday and is running till tomorrow in ExCel Exhibition Centre, in London.The three day summit will bring together supply chain leaders and practitioners, to share insights on how to build resilient and agile supply chains, as well as the role of procurement and finance in improving business resilience, and growth.

The two-day Jordan-Iraq Economic Forum, organized by the Iraqi Business Council in Jordan begins today in Amman. The forum — held under the slogan of “Building Bridges of Joint Prosperity” — will provide a platform for the countries to reap their common interests and establish joint partnerships, with a focus on enhancing commercial, industrial, and investment relations between the countries. The forum will focus on industry, finance, communications, information technology, contracting, energy, and mining and will also feature an exhibition to showcase products and help boost trade between the two countries.

The International Paris Air Show — the largest event for the aviation industry — began yesterday, and will run till Sunday in Paris. The event brings together industry players with technological innovations and 2.5k exhibitors from 59 countries, with the first four days of the event reserved for trade visitors, before opening up to the general public starting Friday 23 June. Airlines will get a chance to display new technology, including commercial and military aircraft, and provide the chance to share trends and the latest innovations.

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

Russia + Iran + regional partners look to ink trade agreement by year’s end

Russia-Iran talks on a trade agreement are in their last lap, Russia’s state-owned news agency TASS said. The FTA between Iran and the Eurasian Economic Union (EAEU) — a unified economic space comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia — could be signed by year’s end, Russia’s Deputy Prime Minister Alexey Overchuk told TASS.

Governments are on board: “Now, indeed, the EAEU has come very close to concluding such an agreement with Iran. This issue was touched upon, including at the Eurasian Intergovernmental Council and received the support of the heads of government. Therefore, we are making progress. The agreement can be signed,” Overchuk said.

Trade with Iran gained renewed importance for Russia after Western sanctions left Moscow cornered,Reuters explains. Punitive measures levied against Russian trade in the wake of the country’s invasion of Ukraine have forced Moscow to look for alternative markets. A regional accord would scale up interim arrangements between Russia and Iran on reduced customs for hundreds of goods categories. Despite Russia’s recent purchases of large numbers of Iranian drones, commodity trade with Iran grew by only 20% in 2022, Reuters added.

Russian negotiators are also pursuing FTAs with Egypt, India, Indonesia, and the UAE, Overchuk added in his interview with TASS. “All these countries are friendly to us, they are growing markets, so respectively the economic center of the new multipolar world is moving in their direction," he said.

GroCart acquired by online grocery marketplace InstaShop

Dubai-based online grocery marketplace InstaShop acquired 100% of B2B wholesale marketplace GroCart, according to a press release (pdf). GroCart declined to disclose the value of the acquisition when approached by Enterprise Logistics. The acquisition boosts InstaShop's presence in the online grocery delivery market and allows it to expand further into the FMCG wholesale industry, the statement said.

What’s next: GroCart plans to expand across the MENA region, with a focus on countries with a high concentration of small shops, like Egypt, the press release said. The company also plans to upgrade its platform and provide financing solutions to businesses, cofounder and COO Nesma Zaghow told Enterprise Logistics, adding that it will continue to operate under its independent brand following the acquisition.

What they said: “By leveraging our extensive network and cutting-edge technology, we aim to revolutionize the way companies shop, ensuring efficiency, cost effectiveness, and a seamless experience,” John Tsioris, founder and CEO of InstaShop said. “Together with InstaShop, we aim to radically facilitate the way FMCG trade, financing and payments are done,” CEO Hussein Hosni said.

About Instashop: InstaShop is an on-demand grocery delivery app operating in the UAE, Bahrain, Egypt, Lebanon. Established in 2015, it now has over 500k active users and partnerships with over 1k supermarkets and specialty stores. In 2020, it was acquiredby Delivery Hero, a global food delivery company based in Germany.

About GroCart: Founded in 2020, GroCart is a B2B platform that aims to streamline wholesale food and grocery operations for suppliers. The platform makes it easier for suppliers to sell and deliver their products to small businesses such as small grocery stores and supermarkets.

Kuwaiti court overturns ruling in favor of Agility Logistics in commercial land dispute

TheKuwaiti Court of Appeal ruled in favor of the Public Authority of Industry (PAI) in a commercial dispute with warehousing and industrial developer Agility, according to a company disclosure. The dispute revolves around a contract from 2003, concerning a land area in Doha, Kuwait, spanning 941k square meters. The land houses some of the company’s warehousing facilities, which it leases out to customers, according to its website.

The ruling: The court accepted the appeal made by the PAI, overturning a previous decision that had proven the existence of a contractual relationship between Agility and the PAI for a period of twenty years, starting from 1 January 2023, and ending on 31 December 2042, for the land in the Doha area.

The impacts of the ruling are still unclear: The financial impact of the decision is difficult to determine now because “the judgment will be appealed,” Agility said, without clarifying when it plans to appeal the decision. The court has also yet to issue a decision to evict the company from the site, according to the Agility disclosure.

But it could cost the company: If the PAI decides to initiate eviction procedures, Agility would lose the revenue from the site. However, if the PAI files an eviction lawsuit, it is expected that Agility will continue to generate revenue until the eviction ruling is enforced, it said in the disclosure. The land plot is one of five contested by the Kuwaiti government, which together constitute roughly 3.5% of the company’s consolidated revenues (KWD 43 mn), according to an earlier disclosure. The book value of these areas accounts for approximately 6% of the company's total assets.

Background: Earlier this year, media reports suggested that the PAI may request Agility to vacate certain areas within a week. However, Agility said it had not received any official notification from the PAI or any other governmental entity, and said in a disclosurethat it has the right to manage these lands based on existing contracts and filed lawsuits against the PAI to prove that the contracts for the disputed lands have been extended.

The land plots in question: The five plots of land at risk include one located outside the industrial area in Sulaibiah, one within Sulaibiah, another in Amghara Industrial Area, and another outside the industrial area in Mina Abdullah.

AD Ports to launch tender to build EGP 1 bn silos in Egypt

AD Ports-led consortium planning tender for nine silos in Egypt: A consortium of Emirati AD Ports and its Egyptian subsidiary TranscargoInternational are planning to launch a tender for the construction of nine silos for storing cement and dry bulk cargo at a cost of some EGP 1 bn, Al Malreported, citing sources it says are in the know. The silos are expected to begin trial operations by the end of 1Q 2024, according to the sources.

Background: The Emirati company signed two 15-year agreements in mid-March to develop cement terminals at the Al Arish and West Port Said ports. The terminals will collectively require USD 33 mn of investment, and will feature silos with a combined storage capacity of 90k tons. Each silo is expected to handle between 1-1.5 mn tons annually, according to Al Mal.

What’s next: The engineering studies for the project are underway, with plans to hand the consortium some of the land for the project — in Abbas berth at West Port Said — by the end of June, the sources reportedly said.

Moroccan logistics startup Colis lands USD 50k investment from The Baobab Network

Morocco-based logistics platformColis has secured a USD 50k investment from The Baobab Network, as part of its accelerator program, according to a press release. Colis’ accelerator program will help connect Colis with leading angel investors and VCs through a demo day, the press release said. The program has helped the startup gain insights that allow it to “scale and reach new heights,” founder Issam Darui said.

Background: Colis is joining the program as part of a new cohort of four other startups — from countries including Kenya, Togo, Nigeria, Guinea and Morocco — that saw it invest a total of USD 250k.

About Colis:Founded in 2022 by Issam Darui (Linkedin), Colis is a platform and mobile application that provides comparative transport options for parcel deliveries, and allows you to track and monitor your orders.

Qatar and UAE reopen embassies + Iran and Uzbekistan ink transport MoU

Qatar and the UAE reopened their embassies in each country yesterday, two years after Arab states ended their embargo of Qatar, according to a statement by Qatar’s Foreign Ministry. Saudi Arabia, the UAE, Bahrain, and Egypt had severed ties with Qatar in 2017 after accusing the state of supporting terrorism and pursuing closer ties with Iran. Saudi Arabia and Egypt were the first to effect a rapprochement, reinstating diplomatic relations with Qatar in 2021, Reuters writes.

Iran + Uzbekistan ink transport MoU: Iran and Uzbekistan have signed an MoU in Tehran to boost bilateral cooperation in transport and transit, Mehr News Agency reports. The agreement involves developing road and rail transport, facilitating connections between Iran and Central Asian countries through Uzbekistan, and eliminating duties for the road fleet in the territory of each country. The MoU also involves developing transit routes between the two nations, particularly multimodal transport, and operating the southern branch of the East-West Corridor from the southern ports of Iran to Central Asia.

The two countries are also implementing an action plan within three months to upgrade supply chain management capacity in transport and freight to 5 mn tons a year, according to Mehr. The two sides have also agreed to hold meetings to determine a competitive tariff along the rail corridor connecting China, Turkey, and Europe.

They also expressed their readiness to increase the frequency of regular flights and grant incentives for maritime and port services to ensure easier freight transit from Uzbekistan to Iran’s southern port.

This year’s International Paris Air Show is taking place against the backdrop of major supply chain issues

The elephant in the room at the International Paris Show? The aviation industry’s supply chain woes. Although this week’s event for the aviation sector will highlight strong demand for commercial aircraft, what it will likely gloss over are the supply chain troubles hindering the delivery of parts, Reuters explains in an analysis. It is widely believed that the aviation industry’s supply chain, which has been plagued by increasing costs as well as shortages in parts and skilled labor, will have to be restructured, which could take years to achieve.

Struggles of the little guy: Smaller suppliers, burdened by debt that they took on during the pandemic, are now struggling to afford new capacity. “The issue now is deep down in the supply chain, tier-three suppliers and lower, where the investment and headcount required for the demand picture makes them very nervous and makes their lenders very nervous,” said one lessor.

Is a consolidation trend coming? Meanwhile, large suppliers are considering in-house work as a potential solution. “We’re looking at it more broadly than we ever have in probably the last 20 years,” Madsen said. Consolidation is also a possible way out, other industry players say.

Cosco Shipping awarded contract to transport + install Aramco offshore platform. PLUS: News from the Saudi Export Development Authority + Etihad Airways

ENERGY-

Cosco Shipping to transport + set up Marjan offshore platforms: Cosco Shipping has secured a contract to transport and install Saudi Aramco’s PK1 offshore platform on the Majran oil field off the coast of Saudi Arabia by 2024 in what is the company’s largest project to date, according to a press release. The company will utilize two dynamic positioning semi-submersible ships to transport and install the platform. The two vessels — which are set to be produced in Indonesia, China, and the UAE — will be installed in six offshore platforms through dynamic positioning.

ALSO WORTH KNOWING-

The Saudi Export Development Authority sent a trade mission to Baghdad, which saw more than 37 Saudi and 100 Iraqi companies explore potential cooperation. (Statement)
Etihad Airways introduced direct flights between Abu Dhabi and Lisbon on Sunday. (Press release)
Egypt has received 19 US locomotives at Alexandria Port as part of an agreement with the US-based Wabtec for the manufacture and supply of 100 locomotives. (Ministrystatement)

MSC eyeing Brazilian logistics outfit for potential USD 1 bn acquisition

MSC is reportedly in talks to acquire Brazilian port and maritime logistics outfit Wilson Sonsin a USD 1 bn buyout, according to local Brazilian media reports picked up by Splash. MSC has been on an acquisition spree in Latin America, after acquiring Brazilian intermodal logistics company Log-In Logistica. Ocean Wilsons, Wilson Sons’ parent company, confirmed last week that it was “considering all potential strategic options,” while noting that it has yet to receive a “formal proposal” for the sale of its 57% stake in Wilson Sons, according to a statement. MSC has yet to comment on the rumored acquisition, Splash reports.

Calendar

JUNE

June: Suez Canal Economic Zone holds a roadshow in Delhi.

19-21 June (Monday-Wednesday): Coupa Inspire, ExCel, London, UK.

19-25 June (Monday-Sunday): Paris Air Show, Le Bourget Parc des Expositions, Paris, France.

20-21 June (Tuesday-Wednesday): Jordan-Iraq Economic Forum, Amman, Jordan.

20-23 June (Tuesday-Friday): Conference on the Marine Transportation System Innovative Science and Technologies Toward Greater Sustainability, Washington DC, US.

21-23 June (Friday-Sunday): Eurasia Rail, Istanbul Expo Center, Istanbul.

29 June- 2 July (Thursday- Sunday): The China-Africa Economic and Trade Expo (CAETE), Changsha, China.

JULY

1 July (Saturday): A new greenfield liquid bulk terminal in Khalifa Port Abu Dhabi will kick off operations.

1 July (Saturday): New UAE Federal Tax Authority VAT Ecommerce rules take effect.

16-17 July (Thursday-Friday): The Levitate Conference and Exhibition, St. Regis Amman Hotel.

24-25 July (Monday-Tuesday): ICSG Istanbul, Istanbul Lutfi Kirdar Convention & Exhibition Centre, Istanbul.

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

SEPTEMBER

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

5 September (Tuesday): The Leaders in Logistics KSA Summit, Riyadh.

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

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

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

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

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

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

OCTOBER

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

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

26-29 October (Thursday-Sunday): International Congress of Aviation and Space Medicine, Conrad, Etihad Towers, Abu Dhabi, UAE.

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

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

NOVEMBER

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

9-15 November (Thursday-Wednesday): Intra-AfricanTrade Fair, Cairo, Egypt.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

DECEMBER

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

EVENTS WITH NO SET DATE

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

2H2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d'Ivoire to be completed.

FEBRUARY 2024

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-15 February (Monday-Thursday): African Air Expo, Cape Town.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Geneva, Switzerland, Hotel President Wilson.

DECEMBER 2024

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

2025

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

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

2027

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

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