MAK Germany to relocate Rotterdam petrochem assets to Sohar in USD 550 mn agreement

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WHAT WE’RE TRACKING TODAY

TODAY: Sohar lands USD 550 mn petrochem plant

Good morning, wonderful people. The news cycle slowdown is still here, leaving us with brisk read as we enter the weekend.

Up first: Oman’s Sohar Freezone is getting a USD 550 mn petrochemicals complex that will produce PTA and PET — two key components for the plastics and polyester industry supply chains. The project is a relocation of Mak Germany’s plant in Rotterdam — shut down in 2024 — and can be seen as another example of how Europe’s high energy costs could spur industrial gains for the GCC and Oman.

ALSO: We also take a look at the UAE’s autonomous trucking sector — and how an integrated regulatory framework across the country, and perhaps across the GCC, can unlock gains and faster uptake for the industry. And while the UAE works on expanding its autonomous logistics sector, more global players are securing big bucks for their expansion.

The big logistics story abroad

Autonomous trucking tech startup Waabi raised USD 1 bn to expand operations, marking the third major funding round for a global autonomous logistics player in just one month. China-based heavy trucking tech startup DeepWay Tech secured USD 173 mn in funds ahead of a planned IPO, and the US-based drone delivery startup Zipline raised USD 600 mn.

The breakdown: The Toronto-based outfit raised USD 750 mn in the Series C round, which included venture capital arms of automotive majors like Volvo, as well as Khosla Ventures and G2 Venture Partners. Uber is also injecting USD 250 mn into Waabi to back its entry into the robotaxis segment.

ALSO- The UK is seeking a reset with China amid tensions with the US, with Prime Minister Keir Starmer to be joined by execs from top banks and manufacturers when he lands in China today. This comes as many Western players are doubling down on China as the US grows more unreliable as a trading partner.

Watch this space

TRADE — Jordan is raising its gas supplies to Syria, after inking a purchase agreement for flows of 140 mmcf/d. The gas will initially be supplied via the Egypt-chartered regasification unit Energos Force, currently docked at the Aqaba terminal in Jordan, until March. Before this new agreement, Jordan had earmarked 30-90 mmcf/d for Syria-bound exports.

Tracing the exact origin of the gas is tricky, given the complex nature of the current Syria-bound supplies. For example, we know Egypt is re-exporting approximately 50 mmcf/d to Syria through Jordanian territories via the Arab Gas Pipeline (AGP), with the volume originating from a blend of sources, Ross Cassidy, VP of MENA Research at Welligence Energy Analytics, previously told us.

We also know that Qatar is a backer of the Jordan-routed gas supplies to Syria, after inking an agreement last March to finance the flows. The agreement earmarked 30-90 mmcf/d, with reports at the time indicating that Jordan would receive the gas in liquefied form before regasifying it at Aqaba and sending it to Syria through the AGP.

PORTS — Egypt wants US operators in its ports. Egypt’s Industry Minister Kamel El Wazir has called on American firms to invest in Egyptian ports during a meeting earlier this week with US Deputy Secretary of State Christopher Landau. The invitation — which Landau welcomed — aligns with Washington’s recent efforts to challenge Chinese dominance in global waterways.

This isn’t the first time Egypt pitches port investments to the US. A previous US delegation, led by Ambassador Herro Mustafa Garg, toured several Egyptian ports in September — including Alexandria, Damietta, Port Said, and Ain Sokhna — and had initially signaled interest in the sector in April.

The geopolitical context: The news comes amid ongoing political tension between the US and China, with both countries vying for key trade outposts amid mounting concerns in DC that the US could face major logistics disadvantages if military conflict erupts. China maintains a large presence along the Suez Canal and its adjacent ports — including the Chinese-operated Teda Industrial Zone in Ain Sokhna, which was earmarked for USD 1.2 bn worth of fresh investments just last month.

DISRUPTION WATCH — Severe weather is disrupting cargo flows and forcing shutdowns of container terminals in Europe. “This situation is affecting the entire industry, and due to the severity and uncertainty of the conditions, we expect delays and closures to continue to impact vessels and terminals across the board,” Maersk said in a statement.

Who’s impacted? Portugal and Spain were among the hardest hit under severe weather warnings yesterday, while Italy declared a state of emergency on Monday after last week’s violent storm pushed water inland. Terminals in the Western Mediterranean, including in Morocco, have also halted operations.

This is the third major disruption for air and sea trade due to severe weather, after storms halted airport operations in the US earlier this week and in Europe earlier this month. The rising frequency of snow storms are also straining the supply of critical de-icing agents.

Market watch

Oil prices surged again this morning after US President Donald Trump reiterated threats of a possible Iran strike, Reuters reports. Brent crude futures were up USD 0.99 to trade at USD 69.39 / bbl as of 04:36 GMT, while US West Texas Intermediate (WTI) decreased by USD 1.06 to USD 64.27 / bbl.

Today’s rise brings the benchmarks to their highest since September last year, after increasing by some 5% since Monday.

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Sohar sets up a USD 550 mn PTA/PET export-grade industrial complex

Sohar Port and Freezone is building a USD 550 mn PTA-to-PET corridor to lock in export-grade industrial volumes of the essential chemical material. The project — to be executed by subsidiaries of MAK Germany and OQ Refineries and Petroleum Industries — targets 1.5 mn tons per year of Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) — split across 11.9 hectares at Sohar Port and 53.6 hectares at Sohar Freezone.

Uh, what’s PTA and PET, Enterprise? PTA is the chemical material made from paraxylene that gets converted into polyester materials, while PET is the mass-market polyester plastic used primarily in packaging, especially bottles, textiles, and fibers.

The supply chain rationale: Sohar is pulling bigger chunks of the chain under its roof. Paraxylene feedstock, the main PTA input, will be sourced by OQ by supplying paraxylene, while Monoethylene Glycol (MEG) and Acetic Acid will be imported through Sohar and moved via a dedicated pipeline network routed through Advario’s bulk-liquid storage at the port.

Why it matters?

Europe’s cost base is the push factor. The complex is set in Sohar as a relocation of assets acquired by MAK Germany from Indorama Ventures Rotterdam PTA/PET site that shut in 2024 amid high costs.

The complex is mainly targeting the Middle East, Africa, Asia, and Europe, but Europe matters here because it’s a huge net-importer of PET. The continent’s utilization of PET in 2022 reached 5 mn tons, with PET production of just 3.9 mn tons — and this is well before the shutdown of the Rotterdam site. That shows a downward trend compared to 2021, when PET production was 4.2 mn tons, according to Independent Commodity Intelligence Services (pdf).

The benchmark

China is the world’s biggest producer of PTA and PET, and its PTA capacity now exceeds 90 mn tons, with the Omani project representing just 1.6% of that volume. Meanwhile, Beijing is grappling with acute overcapacity in PTA and bottle-grade PET, suggesting that the project may face stiff competition for market share unless it secures uptake on the basis of quality or favorable arrangements under freetrade pacts.

The middle-mile should be the UAE’s next big focus in autonomous trucking uptake

How to unlock autonomous trucking’s economic potential: The UAE has made early moves in the rollout of robotaxis and autonomous freight, with more initiatives going live over the past few years. This was partially driven by rising regulatory clarity on how to run pilots and larger-scale commercial operations for autonomous vehicles.

The landscape: On the logistics front, the first mile is leading on uptake, with autonomous trucks already in operation in controlled freezones environments like Jafza, Kezad, and DWC, and more pilots are in the works on the last-mile front. On the passenger transportation front, robotaxis and eVTOLs are also advancing quickly.

There’s a catch: Most of the current rollouts, especially passenger-focused ones, are happening at localized levels, with operational licenses being rolled out on an emirate-by-emirate basis. Dubai and Abu Dhabi are leading on pilots and licensing — and Ras Al Khaimah is catching up with the adoption of new regulations for autonomous vehicles.

This leaves out the higher-value middle-mile segment of autonomous logistics. Because there is currently no comprehensive mutual recognition of licenses, a driverless truck approved in Dubai may become unauthorized the moment it crosses into Abu Dhabi. With high CAPEX associated with autonomous trucking, the lack of country-wide licensing effectively limits operations for the middle-mile and disincentivizes wider uptake.

Uh, the middle mile, Enterprise? The middle mile is the long-haul journey between two fixed hubs — typically moving large volumes of freight from a port like Jebel Ali to a regional distribution center or warehouse. Unlike the last mile, which involves many small stops to deliver packages to homes, the middle mile is largely dominated by heavy trucks moving continuously on highways.

Why the middle mile matters: It is — analysts argue — where the real economic prize lies. However, the economics of this sector are far more fragile than those of the last mile, according to data provided to us by Ken Research. The payback period for autonomous middle-mile trucks is currently 5-7 years — significantly longer than the 3.5-5 years for smaller last-mile vehicles, Ken Research tells EnterpriseAM. But right now, a truck licensed under Dubai’s 2023 law could become unauthorized for autonomous operation the moment it crosses over to another emirate.

It all boils down to unified rules. If comprehensive nationwide regulations allowing Level 4 autonomy across emirates were implemented today, we would see an immediate 18% to 25% uplift in market value, Ken Research estimates. In the longer term, the effect would be more significant, increasing the sector’s CAGR from approximately 25% to 30–33% as deployment constraints ease and fleet procurement accelerates.

DATA POINT- The UAE’s trucking industry is a USD 5.5 bn heavyweight that moves over USD 500 mn in weekly goods across the Saudi border alone.

What comes next? The cross-border multiplier? With Saudi-bound flows essential to the UAE’s trucking industry, advancing a unified autonomous regulation in the wider GCC could also help cut idle time and raise utilization rates — enough to justify the high CAPEX for new autonomous trucks.

Qatar’s Milaha posts positive FY 2025 earnings

Milaha had a good year: Qatar Navigation (Milaha) recorded a 13% y-o-y surge in its bottom line to QAR 1.27 bn (c. USD 349 mn) in FY 2025, according to a statement. The firm’s operating revenues also climbed 17% y-o-y to QAR 3.33 bn during the same period.

The breakdown:

The offshore sector saw a QAR 107 mn y-o-y rise in its bottom line for FY 2025 — driven by added fleet capacity and a larger project pipeline;
The Gas and Petrochemical sector saw a QAR 31 mn y-o-y boost in net income — buoyed by the sale of two very large gas carriers in 3Q 2025;
The Maritime and Logistics unit saw a QAR 7 mn y-o-y drop in net income — with the firm’s container shipping unit pulling down the segment.

REFRESHER- Milaha saw its net income increase by 7% y-o-y to QAR 671 mn in 1H 2025, while its revenues jumped 11% y-o-y to QAR 1.6 bn during the same period.

India’s Adani drops another anchor in Dubai

Indian port operator Adani Ports and Special Economic Zone has set up a new Dubai subsidiary, incorporating AOP Marine and Logistics Services in the emirate, InvestyWise News reports. The move extends Adani’s maritime footprint in the Gulf, building on its 2024 acquisition of an 80% stake in Dubai-based offshore marine services firm Astro Offshore.

Under the hood: AOP Marine is a step-down subsidiary via Sunrise Worldwide Enterprise Limited — 80% owned by Adani Harbour International DMCC — with authorized share capital of AED 50k (50 shares at AED 1k). The entity has yet to commence operations, but its scope covers shipping agency services, ship management, customs brokerage, and logistics, pointing to an end-to-end marine and cargo platform anchored in Dubai.

NXN wagers on the UAE-Pakistan lane with TCS

NXN plugs Pakistan into its corridor network: NXN — the UAE’s unified national logistics platform — has integrated Pakistani-based TCS Express Worldwide to its partner list, giving customers access to Pakistan-bound courier, parcel, and document shipping via NXN branches across the UAE.

UAE💙Pakistan: Islamabad and Abu Dhabi are now fast-tracking CEPA talks, with logistics, ports, and infrastructure on the agenda. Bilateral trade between them topped USD 10.9 bn in FY 2023/24. AD Ports’ Maqta also inked an agreement with Pakistan Single Window to deploy a digital platform that allows traders to file import, export, and transit information through a unified portal.

Calendar

2026

FEBRUARY

3-4 February (Tuesday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

9-11 February (Monday-Wednesday): Future Warehouses & Logistics, Dubai, UAE.

10-12 February (Tuesday-Thursday): Sustainable Aviation Future MENA, Dubai, UAE.

12 February (Thursday): Technical Seminar on Marine Biofuels, London, UK.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

20-22 February (Friday-Sunday): Dubai Freight Camp, Dubai, UAE.

24-25 February (Tuesday-Wednesday): Green Shipping Summit, Athens, Greece.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

25-27 February (Wednesday-Friday): Air Law Treaty Workshop, Tanzania, Dar es Salaam, Tanzania.

MARCH

5-6 March (Thursday-Friday): CargoIS Forum, Miami, United States.

9-13 March (Monday-Friday): WCA Worldwide Conference, Singapore.

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

18-19 March (Wednesday-Thursday): IntraLogisteX, Birmingham, United Kingdom.

18-19 March (Wednesday-Thursday): Green Marine Transport Conference, Amsterdam, The Netherlands.

26 March (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

APRIL

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

16-17 April (Thursday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

MAY

19-21 May (Tuesday-Thursday): Ground Handling Conference (IGHC), Cairo, Egypt.

12-14 May (Tuesday-Thursday): Aviation Energy Forum (AEF), Paris, France.

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