Maersk opens its largest logistics park in the region in Jeddah

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What we're tracking today

TODAY: Algeria starts fuel supplies to Lebanon amid energy crisis

Good morning, friends. Mawani and Maersk lead this morning’s edition with the inauguration of the latter’s logistics park in Jeddah — it’s the Danish company’s largest park of its kind in the Middle East. Meanwhile, UAE’s Mubadala is all focused on its hyperscale data center push with fresh investments in Yondr Group, and the Houthis seem to have struck again in the Red Sea.

^^ We have the rundown on all of this and more, below.

WATCH THIS SPACE-

#1- Algeria starts Lebanon fuel shipments: Sonatrach has begun sending fuel shipments to Lebanon to help ease the impact of a massive energy shortage, Algeria’s state-owned energy giant said in a statement. The first shipment of 30k tons of fuel was on track to depart last night from Algeria’s Skikda Port. Algeria said it would be sending fuel to Lebanon earlier this week, after Lebanon’s state electricity firm, Electricite du Liban, warned that its fuel supplies were exhausted and announced a nationwide power outage. It’s unclear how cash-strapped Lebanon would pay for the Algerian fuel.

#2- Global ins. broker and risk consultant Marsh has launched a first-of-its-kind USD 50 mn ins. facility against port blockage, covering ports and terminals around the world, according to a statement. The facility was formed after the Francis Scott Key Bridge collapse at Baltimore Port in March and the subsequent costly disruption of port operations, according to the statement.

What’s on offer? The initiative offers a capacity of USD 50 mn, and higher limits are offered on a case-by-case basis. The facility, which can supplement existing cover or be purchased separately, aims to cover clients for loss of revenues due to third-party accidents. This would include waterway closures due to vessel collisions, natural disasters, or vessels sinking in a channel. The facility is supported by a panel of Lloyd’s London and London market A+ rated insurers.

MARKET WATCH-

#1- Baltic index maintains upward trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 1.4% to 1,759 points on Tuesday, driven by high capesize rates. Capesize inched up 3.6% to 2,788 points, while the panamax index slipped 2.2% to 1,487 points, its seventeenth straight session in decline.

#2- Oil prices stabilized on Wednesday after falling earlier in the week on concerns regarding economic weakness in China and hope that a possible ceasefire in Gaza could ramp down tensions in the Middle East. Brent crude was basically unchanged at USD 76.09 per barrel (up 0.1% overnight), while US West Texas Intermediate was down 0.4% to USD 74.04.

DATA POINTS-

#1- UAE airports handled c. 2.2 mn tonnes of cargo in 1H 2024, with national carriers transporting 68% of total air cargo, Wam reports. This comprised 528.4k tons of imports, 245.2k tons of exports, and 1.4 mn tons of transit cargo. Total air traffic movements rose by 11.8% y-o-y to 499.8k.

#2- Oman saw 27.0% y-o-y growth in the export of vehicle spare parts to RO 9.9 mn during the first five months of 2024, state news agency Ona reported, citing data from the the National Centre for Statistics and Information (NCSI). The country’s vehicle spare parts imports fell 11.8% y-o-y to RO 44.7 mn during the same period.

HAPPENING NEXT WEEK-

UK-Egypt trade and investment in the spotlight: Our friends at HSBC, together with the Egyptian-British Chamber of Commerce (EBCC) and UK Export Finance (UKEF), will host a webinar next week to discuss how to support infrastructure reforms, potential partnerships in Egypt, and ways to support and connect companies around the world. The webinar takes place next Thursday (29 August) from 12-1pm CLT / 1-2pm UAE.

Want to attend? You can sign up here.

The webinar is a scene-setter for the Egypt-UK Investment and Opportunities Forum in London on Monday, 16 September.

Infrastructure is a key part of the forum. The gathering — which follows on from a June infrastructure mission — will focus on promoting trade and investment in infrastructure, with an emphasis on green hydrogen and renewables as well as sectors including the auto industry, food processing, and tech.

Networking: The forum will include both open panels and pre-arranged business-to-business networking. It will also give attendees the chance to meet with government officials and industry leaders. GAFI will be on hand to deliver an economic update.

Want to join them in London? Register your interest in attending the event here.

***YOU’RE READING EnterpriseAM Logistics, the essential MENA publication for senior execs who care about the industry that connects producers and retailers to global markets. We’re out Monday through Thursday by 9:15am in Cairo and Riyadh and 11:15am in the UAE.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENA climate industry ?
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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.

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

Mawani + Maersk launch SAR 1.3 bn logistics park at Jeddah Islamic Port

Maersk inaugurates largest logistics park in the region: The Saudi Port Authority (Mawani) and Danish shipping giant Maersk have inaugurated a SAR 1.3 bn (USD 346) mn logistics zone at Jeddah Islamic Port, according to separate statements from Mawani (here) and Maersk (here). The park, which Maersk said was the largest single-site logistics and services facility in the Middle East, aims to contribute to logistics development in the Kingdom in a bid to support the facilitation of trade and export to global markets.

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

What we know: The logistics park spans an area of 225k sqm with the capacity to handle 200k TEUs annually. Mawani and Maersk broke ground on the project in February last year. The launch is in line with a plan by the Kingdom to set up 60 logistics zones by 2030.

A wide range of services: The logistics zone will provide importers and exporters with storage and distribution services, warehousing for refrigerated food products, transshipment services, air freight and freight forwarding spaces, and an e-commerce center.

Sustainability in mind: The facility will draw up to 70% of its electricity from 32k solar panels covering an area of 64k sqm on the rooftop. In addition, the park will utilize electric equipment and electric trucks to reduce emissions and implement carbon removal solutions under an ambitious plan by Maersk to achieve net zero by 2040.

What’s special about the port: The port has advanced infrastructure with berths capable of hosting new generations of large ships as well as modern equipment that contribute to the operational efficiency and capacity, according to Maersk.

Lots of action this year at Jeddah Islamic Port: Mawani and Al Jeri Logistics Services inked earlier this week two contracts worth SAR 160 mn to develop two logistics zones for storing and handling containers at Jeddah Islamic Port and King AbdulAziz Port in Dammam. Mawani and DP World broke ground in May on a SAR 900 mn logistics park at Jeddah Islamic Port, with the park set to open in 2Q 2025. The port authority and Global Maritime Services Company also finalized the blueprint for a SAR 219 mn development at Globe Park in Jeddah Islamic Port in the same month. Mawani also partnered with MSC logistics arm Medlog to establish a SAR 175 mn integrated logistics park at Jeddah Islamic Port in March.

UAE’s Mubadala backs Yondr Group in hyperscale data center push

Abu Dhabi sovereign wealth fund Mubadala is investing in global hyperscale data center developer Yondr Group, according to Mubadala statement. Mubadala made the investment “alongside Apollo Management via an existing investment from Apollo-managed funds,” suggesting it may have acquired a piece of a stake that the US-based alternative asset manager picked up in June 2023. Mubadala didn’t put a value on the investment in the London-based firm, nor did it say how the transaction was structured.

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

Mubadala is backing Yondr as global demand for cloud services surges on the back of advancements in artificial intelligence, 5G technology and the internet of things, according to the sovereign fund. It sees the global market for data centers growing at a compound annual growth rate of 11% through 2032.

More on Yondr: Established in 2019, Yondr is a global developer and operator of hyperscale data centers, providing scalable infrastructure for major tech companies. The company has 878 MW in contracted and reserved capacity for the data centers, with 58 MW currently operational.

Mubadala has been steadily expanding its digital infrastructure portfolio: In 2023, Mubadala invested in Aligned Data Centers, a US-based company specializing in Scale Data Centers and build-to-suit solutions for scaled enterprises. The Abu Dhabi wealth fund backed in 2022 pan-Asian data center provider Princeton Digital Group. It has also invested in global fiber network providers like the UK's CityFibre and Northern Europe's GlobalConnect.

How Morocco is becoming a nearshoring hub for European firms

Is Morocco the missing link for EU trade growth? Sitting on the periphery of the EU, Morocco is being considered as an alternative sourcing location by 4% of European firms, according to a report by Danish shipping firm Maersk last month. The EU is Morocco’s leading trade partner, while Morocco is the EU’s 21st biggest trade partner — representing 1% of the EU’s total trade in goods. So, what does Morocco represent for European business and how can the North African country redefine trade relations?

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

Why are European firms diverting? Over 64% of European companies have changed their mechanisms and locations for sourcing materials, largely due to supply chain disruptions, according to a sourcing whitepaper. In addition to shortening supply chains by finding close markets, the firms are also looking for flexibility and reducing reliance on a single source of materials.

SOUND SMART- What is sourcing? Sourcing involves the process of identifying, evaluating,and selecting suppliers to offer goods and services. The process often impacts cost, quality, and accessibility of products and services. Firms often try to secure reliable and cost-effective suppliers to ensure a stable flow of materials. There are several types of sourcing, including outsourcing, insourcing, near-sourcing, global sourcing, and single sourcing.

In numbers: The total trade in goods between the EU and Morocco amounted to EUR 53.3 bn (USD 58.2 bn) in 2022. The EU’s imports from Morocco amounted to EUR 21.7 bn — led by transport equipment at EUR 5.1 bn, machinery and appliances at EUR 14.4 bn, mineral products at EUR 4.9 bn, and transport equipment at EUR 3.5 bn. The diversity of goods exported makes Morocco a potential sourcing hub for several European industries that seek cost-effective partners.

Close, and not just geographically: Morocco’s close proximity to Europe is a driving force for European countries to choose it as a trading hub. Morocco and the EU established a Free Trade Area over the past two decades as part of the EU-Morocco Association Agreement, and signed an agreement on additional liberalization of trade in agricultural products over a decade ago. Under the EU Trade Policy Review, the EU offered to discuss trade modernization and investment relations with Morocco to help them adapt to challenges.

Morocco’s Tanger Med is in its top form: Morocco’s Tanger Med Port was among the top 20 container ports in 2023, ranking nineteenth worldwide with 13.4% y-o-y growth in volumes in 2023. It handled some 8.6 mn TEUs throughout last year. Serving as a crossroads between Europe and Africa, the Moroccan port has emerged as a solid contender for multinational companies looking for nearshoring operations, according to a report by the Financial Times’ fDi Intelligence. “Investors can reach Europe easily and relatively fast…labor is still cheap on a relative basis, and there’s good infrastructure and tax incentives. So there’s an opportunity for Morocco to attract more investment and within this potential for [growth] Tanger Med plays a big role,” mission chief at IMF Roberto Cardareli said.

Building bridges: Maersk established the Morocco Bridge Solution last year — a multimodal service that connects Morocco with Spain and the rest of Europe. The solution connects rail and truck transport across Morocco to a maritime shuttle from Tangier to Algeciras. The route aims to drive the growth in trade between Morocco and the EU by reducing congestion and carbon emissions without compromising time-efficiency.

Nearshoring on the rise: European business have been showing increased willingness to trade with Morocco and African nations. The number of trucks crossing from Morocco to Spain and France has seen double-digit growth. However, ferry services could not maintain growth, which led to congestion, high carbon emissions, and increased job market pressures for drivers.

A gateway not just for Europe: Morocco’s Dakhla Port — set to kick off operations in 2030 — will aim to serve as a gateway to the Atlantic for African Sahel countries. The initiative aims to enhance Sahel countries' access to the Atlantic Ocean by providing them with access to Moroccan port and rail infrastructure. France has expressed interest in funding a 3 GW power cable linking the Moroccan city of Casablanca to the town of Dakhla while French independent power producer HDF Energy has partnered with Moroccan investment holding company Falcon Capital Dakhla to establish a green hydrogen production facility in Dakhla.

SAL to boost logistics operations and connectivity at Jazan

PROJECTS-

SAL to improve logistics services offered in Jazan: SAL Saudi Logistics Services inked an agreement with the Royal Commission for Jubail and Yanbu to upgrade logistics provided in the Kingdom’s Jazan region, according to a statement The agreement involves connecting Jazan’s various ports to major airports, as well as supporting investors in Jazan City for Primary and Downstream Industries with logistics services provided by SAL.

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

DISRUPTION WATCH-

Greek-flagged vessel adrift after attack in the Red Sea: A Greek-flagged oil tanker, the Sounion, was reported adrift on Wednesday after it was attacked off Yemen's port city of Hodeidah in the Red Sea, Reuters reported yesterday, citing Greek shipping ministry and the United Kingdom Maritime Trade Operations (UKMTO). Reports indicated the vessel lost engine power and the ability to move after it was attacked by two small boats and was struck by several projectiles, which resulted in minor damage. Reuters quoted a maritime source as saying that the vessel is expected to rely “on its own means" to sail. No injuries have been reported among the 25-member crew. It remains unclear if Yemen’s Houthis were behind yesterday’s attack which was the most serious in the Red Sea in weeks, according to Associated Press.

Remember- Attacks on ships passing along the Red Sea have been making headlines since Israel waged its war on Gaza last year as the Iranian-backed group in Yemen looks to pressure Israel.

Global ports set to plug EUR 2 tn into modernization as importance as geopolitical assets grow

Big money is going into the world’s ports as their geopolitical value comes into focus: Governments around the world are investing big into developing their ports, whose importance as geopolitical assets is more obvious now than ever, according to a Bloomberg report. Some EUR 2 tn is expected to be spent on modernizing ports over the next decade to ensure that they adhere to the latest standards in digital technology, automation, and green energy.

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

Global dynamics are shifting: “It’s now much clearer that ports are geopolitical assets and that emphasis hasn’t always been there,” Spanish maritime consultancy firm Ports and Logistics Advisory owner Peter de Langen told the business news service. Maritime gateways handle 80% of global merchandise trade, meaning they facilitate the movement of USD 25 tn in trade annually, and as such are being heavily affected by geopolitical events.

China is making big moves: China’s Shenzhen Port is forecasted to become a global vehicle export hub, with plans to expand the port’s automaking capacity in partnership with car manufacturer BYD, according to the report.

Singapore is no slouch either: The Port of Singapore is gearing up to handle significantly more cargo with fewer human workers, employing robots instead. The operation will eventually relocate to a new area on the western side of the island city-state, with an investment of USD 15 bn to develop what Singapore claims will be the world’s largest fully automated terminal. The new port “will be a critical engine driving the Singapore economy,” then-Prime Minister Lee Hsien Loong said in 2022.

India has big plans of its own: India’s under-development Vadhvan Port, which will be the starting port for the India-Middle East-Europe Economic Corridor (IMEC), is set to expand the country’s export capability significantly. The Vadhvan port is set to be a massive facility, featuring nine container terminals each stretching one kilometer in length. It will include specialized berths for wheeled and liquid cargo, as well as one for the coast guard. Expected to be finished by the end of the decade, the USD 9 bn port will be capable of handling around 23 million container units, positioning it among the top 10 largest ports globally, according to the project's supporters.

Green plans in Antwerp: Brussels’ Antwerp Bruges Port is planned to become Europe’s green energy-powered corridor. DP World plugged a EUR 200 mn into its container yard at the port in 2020, with plans to convert petrol-powered container carriers to automated electric stacking cranes, set to be completed by 2026, according to a statement.

New trade hubs are emerging: Somaliland’s Berbera Port is “becoming more strategic in light of new threats to global maritime trade in the Red Sea and Gulf of Aden,” think tank Sahan Research director Matt Bryden told Bloomberg. UAE-based terminal operator DP World inaugurated its container terminal, with a handling capacity of 500k TEUs annually, at Somliland’s Berbera Port, back in 2021, according to a statement. The firm is investing up to USD 442 mn into developing and expanding the port, looking to leveraging Somaliland’s strategic position in the Gulf of Aden. It aims to boost its access to the key trade bottleneck, which sees passing of nearly 12% of global trade flow.

A potential Canadian rail strike could cost the fertilizer industry mns in losses

A potential strike by Canadian rail workers could cost the fertilizer industry up to USD 46.2 mn every day in lost revenues, in addition to operational and logistical costs, Fertilizer Canada warned in an emailed statement cited by Reuters. “Our industry continues to be very concerned by the potential of a dual rail disruption and the cascading impacts on Canada's economy and global food security,” it said. Canada is the biggest producer and exporter of a key ingredient in fertilizers, potash, with railways moving some 69k metric tons per day. Some 75% of all fertilizer products in the country are moved by rail.

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

BACKGROUND- Canada’s two largest railroad operators issued lockout orders on Sunday amid a dispute with the country’s Teamsters union. The two railroad operators — Canadian National Railway and Canadian Pacific Kansas City (CPKC) — have said they would lock out workers today unless agreements are reached.

The state of play: Union and company negotiators were in last-minute talks at dispatch time today as a deadline of midnight Ottawa time approached for an agreement, according to the Globe and Mail.

Calendar

AUGUST

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai, UAE.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein, Egypt.

10-11 September (Tuesday-Wednesday): SkyMove MENA, Riyadh, Saudi Arabia.

12 September (Wednesday): Deadline for companies to submit bids for expansion and operation of Baghdad’s International Airport.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition (AICE), Dubai, UAE.

23-26 September (Monday-Thursday): Freight Summit Global Conference, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

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

OCTOBER

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

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

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

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

12-14 October (Saturday-Monday): Global Logistics Forum 2024, 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.

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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