Lots of regional cooperation

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What we're tracking today

TODAY: Kuwait resumes exports following re-opening of refinery + Russia and India to reboot transport corridor

Good morning, friends. We have another diverse issue for you this morning, with some updates from Egypt and Saudi Arabia in the rail and shipping departments, and plenty of signs of more regional cooperation in the transport sector.

THE BIG LOGISTICS STORY- Saudi Arabia’s state-owned National Shipping Company (Bahri) and Egypt’s Suez Canal Authority are investing USD 50 mn to establish an Egyptian joint-stock company for maritime transport, with the two companies planning to finalize procedures for the new company by the end of August.

HAPPENING TODAY-

Kuwait’s Al Zour refinery resumes exports: Kuwait’s state-owned Kuwait PetroleumCorporation (KPC) resumed exports from its 615k bbl / d Al Zour refinery, after a distillery at the refinery that was closed in early April due to technical difficulties came back online on 21 April, Argus Media reports. The exports resumed with a shipment of 109k tons of very low-sulfur fuel oil to Fujairah, UAE on the Desh Garima oil tanker, according to the news outlet.

WATCH THIS SPACE #1- Qatar Airways could add 85-90 new destinations to its current roster if it is able to procure enough planes, Reuters quotes Al Baker as saying at a presser. The airline is counting on deliveries from Boeing and Airbus — both of which are experiencing production delays — soon.The airline is set to resume its flights to Yanbu and add Tabuk to its Saudi destination network, with additional plans to introduce services to Ras Al Khaimah, Al Baker said, according to a press release. The airline has a network of 160+ destinations in the Gulf and currently flies 84 weekly flights to the UAE to Abu Dhabi, Dubai and Sharjah.

Qatar Airways also plans to “cooperate with … and support” Saudi Arabia’s planned new airline, Riyadh Air, as “there is a lot of business around for everybody,” Al Baker said at the Arabian Travel Market (ATM) event in Dubai, according to Arabian Business. Al Baker did not specify the parameters of the planned cooperation.

Adnoc Gas will build its new LNG export terminal at Ruwais on the Persian Gulf rather than Fujairah, due to its proximity to Adnoc’s facilities, according to a statement. The upcoming Adnoc plant is set to more than double the country’s LNG export volumes and was earlier slated for construction at Fujairah, a major oil trading hub in the region, Bloomberg reports. Adnoc has not revealed the cost of the new facility but investments of this caliber routinely run in the USD bns, Bloomberg notes.

WATCH THIS SPACE #2-Russia and India are set to reboot their 7.2k km International North South Transport Corridor(INSTC) linking them together via Iran, Kazakhstan, Turkmenistan, and Azerbaijan, according to statements cited by Russia’s state-owned TASS.The two countries are set to sign several “supplemental agreements” related to the operations of the corridor on the sidelines of the upcoming KazanForum, which will be held on 18-19 May in Kazan, Russia, according to the agency. The multi-modal logistics highway is anticipated to be a gamechanger for regional trade, with a scope that could rival China’s Belt and Road Initiative.

Background: The origins of the project go back to a September 2000 treaty signed by partner countries, but which failed to get off the ground. Recent supply chain disruptions, sanctions on trade with Russia and Iran, and trade agreements between countries connected by the proposed trade corridor have given new impetus to the project.

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May at the Four Seasons Cairo Nile Plaza The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help Egypt build an export-led economy that makes us a magnet for foreign direct investment (FDI).

Why exports & FDI? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what Egypt as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories.You can learn more on our conference website here.

Some of the biggest names in business and finance are on board — are you? The Enterprise Exports and FDI Forum is taking place with the generous support of our friends, including:

Banking partners: Banque Misr | Al Baraka Bank | Emirates NBD | HSBC

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

HAVEN’T REQUESTED AN INVITE YET? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title and where you work.

CIRCLE YOUR CALENDAR-

The Arabian Travel Market 2023(ATM) is taking place on 1-4 May at the Dubai World Trade Centre in Dubai, UAE. Theconference will gather attendants from more than 100 countries from the travel trade to attend 63 sessions across the global stage, travel tech stage, and a sustainability hub to explore travel trends, opportunities, new destinations and sustainable growth.

The 2024Swiss commodities shipping conferenceGeneva Dry kicked off yesterday and will run until today. The conference, which is organized by the team behind news website Splash to life, brings together analysts, traders, miners, shipowners, and investors to discuss dry bulk shipping market trends.

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

Bahri + Suez Canal Authority allocate USD 50 mn to establish Egyptian joint-stock maritime transport firm

Bahri + Suez Canal Authority to pour USD 50 mn into new joint-stock maritime transport firm: Saudi Arabia’s state-owned National Shipping Company (Bahri) and the Suez Canal Authority (SCA) are investing USD 50 mn to establish an Egyptian joint-stock company for maritime transport, Al Mal reports, citing a source it says is familiar with the matter. The two companies plan to finalize procedures for the new company by the end of August.

ICYMI: Bahri had signed a non-binding MoU with the Suez Canal Authority in March to establish an Egyptian joint-stock company that will “specialize in owning, leasing, chartering, and operating vessels to transport general and bulk cargo, chemicals, oil, and all operations related to maritime transport.”

The details: Bahri will manage and operate the new company, Al Mal quotes the source as saying. The company, which will serve as a shipping agent, will be entitled to all the incentives granted to SCA-affiliated entities. Its fleet will be Egyptian-flagged and will carry most of Egypt’s imports of strategic commodities. Some 75% of the company’s employees will be Egyptians, as mandated by the law.

What’s next: The two companies are looking into purchasing two 60k ton ships for the new company’s fleet, the source is quoted as saying. The two companies are also looking to appoint a law firm in the next few days to handle registration procedures for the company, and are looking to establish the company’s headquarters soon, the source added.

French mobility firm Systra to conduct feasibility study for Saudi-Kuwait rail link

Another step towards Saudi-Kuwait rail link: Saudi Arabia’s state-owned national railway firm Saudi Railway Company and the Saudi Transport General Authority have appointed French transport and mobility engineering company Systrato carry out the feasibility study for a railway link between Saudi Arabia and Kuwait, Kuwaiti newspaper Al Qabas reports. The value of the tender for the study and detailed design work for the first phase of the railway was set at USD 3.25 mn (KWD 1 mn).

The details: Kuwait had extended the bid submission deadline for the consultancy contract from 21 February to 30 May. The contract awarded to Systra involves a critical review of the railway, concept designs, and detailed engineering designs and technical documents. The study will also cover the passenger terminal, cargo yard, and border facility at Saudi Arabia, and will see Systra provide estimates for the costs of construction, operations, and maintenance.

About the project: The railway, which will be used by freight and passenger trains, is a single track line, spanning 111 km from the Nuwaiseeb Port on Saudi Arabia’s northern border with Kuwait to Al Shadadiyah in Kuwait.

About Systra: The French engineering and consulting group specializes in public transport and mobility solutions. Systra has been active in the Middle East, with developments of tramways in Qatar, UAE and Saudi Arabia. The company has also conducted a feasibility study recently for the French Development Agency on the development of intelligent systems and digital solutions in Tunisia.

Emirati B2B e-commerce platform Eighty6 raises USD 3.7 mn seed round

UAE B2B e-commerce platform Eighty6 has raised USD 3.7 mn in a seed funding round, according to apress release. The Sanabil 500 MENA Seed Accelerator led the round, with participation from prominent GCC family offices and strategic investors with experience in the F&B industry.

Where the money will go: The funds will be used to launch in Kuwait, expand its operations in the UAE, and grow its team in Saudi Arabia, founder Abdul Kader Saadi told Enterprise Logistics. Funding will also go towards enhancing Eighty6’s technological capabilities, the press release said.

About Eighty6: Founded in 2020 by Saadi (LinkedIn),Eighty6 is a B2B e-commerce platform that aims to streamline communication and procurement processes within the F&B industry. The company aims to reduce the time and effort required to procure supplies for both vendors and suppliers.

Syria to curb cross-border drug trafficking

Syria has pledged to ramp up efforts to halt drug trafficking at its borders with Iraq and Jordan, according to a joint statement issued following a meeting of Arab ministers in Amman. Syria will work over the next few months to determine who is transporting narcotics into the two countries and “take the necessary steps to end smuggling on the border with Jordan and Iraq,” the statement says.

Background: Arab governments have accused Syria of producing amphetamine captagon and smuggling it into the Gulf, and top officials have been sanctioned over suspected involvement in the trade, Reuters notes.

DP World appoints a new global vice president of engineering

Emirati logistics firm and port operator DP World has appointed Sangam Reddy(Linkedin) as global vice president of engineering, according to a press release. Reddy most recently served as a director at Amazon India, where he held several different positions over a 10-year period. He will be responsible for market access, e-commerce, and data chain solutions at DP World, according to the release.

Egypt among thirteen MENA countries featured on 2023 Smart City Index

10 MENA cities ranked among the world’s top 100 smart cities:Ten cities in the MENA region placed among the world’s top 100 smart cities, with Abu Dhabi and Dubai making it to the top 20, in the International Institute for Management Development’s (IMD) smart city index report (pdf). Other cities in the top 100 include Riyadh, Jeddah, Mecca, Medina, Doha, Ankara, Tel Aviv, and Muscat. Cairo just missed the top 100, coming in at 108. A total of 141 cities were assessed this year, compared to the previous 118. The Smart City Index was established in 2019 and assesses the technological and economic advances of cities, including ease of mobility.

The story was picked up by The Nationaland Khaleej Times.

Agility subsidiaries enter convertible loan agreement + Gulf Navigation sells vessel to settle debts. PLUS: News from Trukkin

DEBT-

Agility subsidiaries to ink loan agreement: Kuwait-based Agility subsidiariesPWC Aviation Services Company KSCC (PWC) and United Project for Aviation Services Company (UPAC) are set to sign a KWD 125 mn convertible loan agreement, according to a company disclosure. The loan will go towards financing UPAC’s Reem Mall project in Abu Dhabi. The loan will settle UPAC’s existing debt obligation to PWC and cover the future financing requirements for the project. The loan can be converted into new ordinary shares in UPAC’s capital at PWC's discretion.

Gulf Navigation sells vessel to pay off debts + boost liquidity: Dubai-based shipping Gulf Navigationhas sold a USD 27 mn petrochemical tanker to Classical Oil Field Chemicals (FZCO) to allow it to pay off an USD 11.7 mn loan to Al Masraf, according to a company disclosure. The excess USD 8.2 mn in cash from the sale will go towards the firm’s liquidity position and future growth plans.

STARTUPS-

Egypt’s Khazenly wants to make it easier for merchants to do business overseas: Egyptian B2B logistics startup Khazenly has launched a new cross-border service designed to make it easier for Egyptian merchants to sell their products overseas, it said in a statement (pdf) yesterday. ‘Cross borders’ is an integrated service that helps companies with local fulfillment, foreign-exchange transactions, permits and licenses, and product returns, it said.

ALSO WORTH KNOWING-

Digital logistics firmTrukkinpartnered with P&E Auctions, a division of online auction platform Plant & Equipment, to handle the onshore transportation of heavy equipment and machinery sold through the platform. (Press release)

Singapore’s ambitions to for ammonia bunkering will likely not happen this year

Singapore will not be ready for ammonia bunkering by the end of the yeardespite previous reportsto the contrary, according to a Singapore Maritime and Port Authority (MPA) statement. The announcement was issued to rebut earlier reportsthat the first transfers of the green fuel would take place before 2023 was out. The move had been pending the green light from the relevant regulatory agencies.

Calendar

MAY

May: The Suez Canal Economic Zone (SCZone) plans to hand over a new 1k-meter container berth to the East Port Said Port.

May: The ArabAcademy for Science, Technology and Maritime Transport (AAST) will roll out its first locally-made electric cargo transport vehicle.

1-4 May (Monday-Thursday): Select USA Investment Summit, National Harbor, Maryland, USA.

1-4 May (Monday-Thursday): Arabian Travel Market, DWTC, Dubai.

4 May (Thursday): Deadline to submit proposals for the design, construction, finance, operation, and maintenance of the Salalah-Thamrait trucking road in Oman.

8-10 May (Monday-Wednesday) Global Green Future Fuel (G2F2) Meridien Hotel, Dubai.

9-11 May (Tuesday-Thursday): Airport Show, Sheikh Saeed Halls 1-2, DWTC, Dubai.

9-12 May (Tuesday-Friday): Transport Logistic, Trade Fair Center Messe München, Munich, Germany.

10-12 May (Wednesday-Friday): The African Aviation Summit: Air Finance Africa Conference & Exhibition, Sandton Convention Centre, Johannesburg, South Africa.

15 May (Monday): Exports + FDI Forum, Four Seasons Hotel Cairo at Nile Plaza, Cairo, Egypt.

15-16 May (Monday-Tuesday): Middle East Rail, Abu Dhabi National Exhibition Centre, Abu Dhabi.

15-16 May (Monday-Tuesday): Mobility Live Middle East, Abu Dhabi National Exhibition Centre, Abu Dhabi.

15-16 May (Monday-Tuesday): The Road and Traffic Expo, Abu Dhabi National Exhibition Centre, Abu Dhabi.

15-17 May (Monday-Wednesday): Global Fleet Conference, Cascais, Portugal.

15-19 May (Monday-Tuesday):The UAE Maritime Week.

16-17 May (Tuesday-Wednesday): Africa Forum of Investment and Commerce, Sheraton Hotel, Algiers, Algeria.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

16-18 May (Tuesday-Thursday): Baltic and Black Sea Ports & Shipping, Radisson Hotel & Suites, Gdansk, Poland.

16-18 May (Tuesday-Thursday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

16-18 May (Tuesday-Thursday): IATA Ground Handling Conference, Abu Dhabi National Exhibition Center, Abu Dhabi.

18 May (Thursday): UN-Turkey-Russia Black Sea grain agreement extension expires.

18-19 May (Thursday-Friday): XIV International Russia—Islamic Wold: KazanForum, Kazan Expo, Kazan, Russia

24 May (Wednesday): Fleet and Mobility Summit, Dubai.

29-31 May (Monday-Wednesday): Translogistica Libya 2023, Misurata, Libya.

JUNE

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

6-7 June (Tuesday-Wednesday): Ports and Customs Week, Cape Town, South Africa.

12-15 June (Monday-Thursday): Saudi Plastics & Petrochem, Riyadh, KSA.

14-16 June (Wednesday-Friday): International Conference on Models and Technologies for Intelligent Transportation Systems, Nice, France.

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

JULY

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

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.

SEPTEMBER

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

OCTOBER

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

NOVEMBER

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

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

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

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

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.

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.

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

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

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.

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