More Pakistani terminals for AD Ports?

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What we're tracking today

TODAY: Russia continues to batter Ukraine’s grain facilities + Iran, Azerbaijan to complete Astarachay bridge in four months

Good morning, lovely people. We have a brisk issue for you this morning, with plenty of updates on the ports, zones and regulatory fronts.

THE BIG LOGISTICS STORIES- AD Ports Group could snag contracts for two more terminals at Pakistan’s Karachi Port. Meanwhile, Dubai’s crown prince has issued amendments that will give the emirate’s Road and Transport Authority more power over railway projects in Dubai.

HAPPENING TODAY-

Russia has targeted Ukraine’s grain storage facilities on the River Danube with drone attacks, BBC reported, citing local officials. The river has become a primary export route for Ukrainian grain after Russia pulled out of the Black Sea grain initiative, which had provided protection for Ukrainian exports via the Black Sea. Russia’s exit was accompanied by “almost nightly” attacks on Ukrainian grain storage facilities on the Black Sea, which has destroyed some 60k tonnes of grain, BBC cites officials as saying.

WATCH THIS SPACE #1- Iran + Azerbaijan to complete construction of the Astarachay Bridge in four months: The 89-meter-long Astarachaybridge, which will connect Iran and Azerbaijan’s international transit highways, will be constructed and operational within four months, Iran’s semi-official Mehr News quotes Azerbaijan's Deputy Prime Minister Shahin Mustafayev and Iran’s Urban Development Minister, Mehrdad Bazrpash as saying during a phone call.

WATCH THIS SPACE #2- The UAE’s first locally produced electric motorcycleSulmi EB-One will hit roads within the next six months, Founder Rashid Al Salmi told Zawya. The EV company is looking to provide prototypes of the e-bike to logistics and delivery services firms in the UAE for trials before the bike is rolled out, Al Salmi says. The all-electric motorcycle — which has not yet been priced — packs a 10.4 KW battery, can cover 300 kilometers on a full charge, and has a 150 km/h top speed.

WATCH THIS SPACE #3- Egyptian officials are considering offering a 48-hour grace period for Jordanian trucks arriving at Nuweiba port after Jordanian officials put forward the request during the Jordanian-Egyptian Technical Committee for Land Transport meeting in Amman, according to an Egyptian Transport Ministry statement.

ALSO- Agricultural products inspection lab to open soon at Nuweiba port: The Egyptian side also confirmed that the agricultural lab in Nuweiba — which inspects and assesses agricultural products transported through the port, and is set to expedite waiting time for trucks — will be operational soon. The two sides also touched on various ways to enhance transportation ties between the two countries, according to the statement.

DATA POINT- Iraq exported more than 1.1 bn USD worth of natural gas, naphtha and fuel oil during 1Q 2023, Qatar News Agencyreports. The country exported 2.64 mn metric tons worth of petroleum products, the news agency said, adding that natgas exports contributed USD 1.8 mn, while naphtha raked in USD 148.2 mn, and fuel oil earned it some USD 927.24 mn.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

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DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the Enterprise Podcast and listen for yourself: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,which took place in May.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast | Anghami. We’re releasing a new episode every Sunday morning.

IN THIS WEEK’S EPISODE- We ask some of the biggest multinationals and suppliers operating here — namely, in logistics, e-commerce, and FMCG — what it is they’re looking for in a local partner, product or service and what are some of the pain points they’ve had to cope with. We were joined on that panel by Khaled Morsy, CEO of DB Schenker Egypt, Omar Elsahy, General Manager at Amazon Egypt, Tarek Kamel, Chairman and CEO of Nestlé Egypt and Sudan.

CIRCLE YOUR CALENDAR-

The UAE’s Finance Ministry is holding a digital public consultation on its website that began last Wednesday and runs until 2 August,as part of the UAE’s corporate tax freezone regulations,Emirati news agency WAM reports.The consultation aims to gather feedback from freezone-based companies, WAM added.

The Russia-Africa Summit and Economic and Humanitarian Forum will take place in Saint Petersburg, Russia tomorrow and Friday. The event will build on discussions in the last iteration of the summit, which took place in Sochi in 2019. It will also look to develop ties between Russia and partner countries in Africa, as well as African organizations such as the African Union. The summit will include discussions about Moscow's grain and fertilizer exports, Reuters reports, citing statements from Oleg Ozerov, ambassador at large at the Russian Foreign Ministry.

ICYMI- Russia recently withdrew from a UN-brokered Black Sea grain agreementthat facilitated the safe export of Ukrainian grains, leading to calls from the UN for Russia to reconsider. The summit will explore the possibility of creating logistics corridors and hubs for various Russian products, including food and fertilizers, as Russia and the West vie for influence in Africa.

Kuwaiti Foreign Minister Sheikh Salem Al Sabah will visit Iraq by the end of the month,state-owned Iraqi News Agency reports, citing statements from the Kuwaiti ambassador to Iraq, Tariq Al Faraj. Al Faraj met with Iraqi President Abdul Latif Rashid yesterday to discuss ways to enhance bilateral cooperation and resolve outstanding issues.

The UAE will host the World Trade Organization’s 13th Ministerial Conference(MC13) in Abu Dhabi, in February 2024. The General Council of the WTO elected Foreign Trade Minister Thani bin Ahmed Al Zeyoudi to head the conference. The conference, which is attended by representatives from the 164 countries and customs blocs that make up the WTO, will review the performance of the multilateral trading system and make decisions on the future work of the WTO, WAMreports.

The event will tackle challenges, consider the changing future of trade and come up with clear solutions to make trade more efficient, inclusive, and sustainable,” UAE Foreign Trade Minister and Chair of World Trade Organization Thani bin Ahmed Al Zeyoudi was quoted as saying by WAM.

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

Pakistan greenlights handover of additional terminals to AD Ports

Another Pakistani terminal — or two — for AD Ports?Pakistan has given its initial approval to a framework agreement that would see the country hand over the development, management, and operation of a second terminal at Karachi Port to the UAE, according to a Finance Ministry statement. The agreement is expected to be signed by the two governments “very soon,” Pakistani outlet the Tribune reports. The two sides earlier this week agreed to negotiate an agreement over the terminal, though a new report from the Tribune mentions a second terminal up for grabs.

The details: The agreement will see Pakistan handover berths 11 to 17 at Karachi Port’s East Wharf to AD Ports Group to develop and manage two cargo terminals for an initial five-year period, the Tribune reports. The agreement could be extended beyond five years further down the road, the outlet added.

About the terminals: Berths 11 to 13 are earmarked for a general cargo terminal, while berths 14 to 17 are slated for a terminal equipped to process foods, fertilizers, and other commodities. Upgrades to Pakistan International Container Terminal (PICT) and improvements to infrastructure are also included in the agreement.

This is the second Emirati-Pakistani agreement in as many months: The two governments had signed a 50-year concession agreement to hand AD Ports Group control to “manage, operate, and develop” another terminal at Karachi’s port.

What’s next: Following cabinet approval for the framework, Pakistan will put together a price negotiation committee, the Tribune said. Several parameters are expected to factor into pricing, including terms governing construction, lifespan, capacity, length of quay wall, as well as other factors, the Tribune cites officials at the country’s Maritime Affairs Ministry as saying.

Background: The agreements come on the heels of an MoU inked between Pakistan and the UAE in May which paved the way for AD Ports to contribute to developing Pakistani ports, and saw both countries commit to closer trade ties.

AD Ports Group has been on an expansion spree: Last month also saw the Emirati company announce a 30-year concession agreement it had signed with the Congo to run a terminal at the country’s Pointe-Noire Port. Yet another concession agreement came in mid-March, granting AD Ports Group the rights to develop and operate a port on Egypt’s Red Sea coast at Safaga.

SCZone receives two bids from int’l firms for green gas and methanol bunkering services

SCZone gets bids from green methanol bunkering service providers:The Suez Canal Economic Zone (SCZone) received two bids from international companies to provide green gas and methanol bunkering services for ships passing through the canal, Al Mal reports, citing sources it says are in the know. The SCZone will assess the bids in the coming period, the sources reportedly said, adding that the authority could also open the door for other entities to submit their bids before making a final decision.

Background: The SCZone plans to launch green methanol bunkering services ahead of the initially expected schedule of 2027, SCZone chief Walid Gamal El Din said last week. The authority has received requests for green methanol and green gas bunkering services, months after it first rolled out bunkering services at its ports in May.

WATCH THIS SPACE- The world’s first ever green methanol-powered container ship is set to pass through the Suez Canal next month, the sources said, adding that the SCZone was currently focusing on finalizing related executive procedures. They said the vessel will be refueled at a container terminal at East Port Said Port. The inaugural journey for the vessel leaving from South Korea to Denmark comes under a partnership announced last monthbetween Dutch-based chemical producer OCI Global and Denmark’s shipping giant AP Moller-Maersk.

Dubai hands RTA full control over railway projects

Dubai hands RTA more control over the emirate’s railway projects: Dubai’s Crown Prince Hamdan bin Mohammed bin Rashid Al Maktoum has issued new resolutions amending provisions governing the management and supervision of railway development projects in Dubai, according to a statement. The amendments hand Dubai’s Roads and Transport Authority (RTA) full control over any railway project in the emirate, including those developed by other entities, The National reports.

The RTA’s new tasks: The authority is now allowed to enter into contracts and agreements related to railways, adopt policies, plans and programs, as well as plan, design, and develop the public railway network in Dubai, according to the statement. It will then supervise their implementation after approval, it added. It will also be responsible for determining the requirements and procedures necessary for companies to obtain certificates from the rail agency of the RTA and the Safety Regulatory Entity.

What’s next: The new regulations will be effective upon their publication in Dubai’s Official Gazette, according to the statement.

Starlink launches hybrid automated logistics center in Riyadh

Saudi’s Transport and Logistics Ministry has inaugurated the new Starlinkshybrid automated logistics center in Riyadh,the ministry said in a statement. The hybrid logistics facility will utilize robotics, manual picking systems, and sorting functions, with some 250 helping with handling and sorting shipments, the statement said. The facility can process 120k products per day, it added.

The details: The USD 26.65 mn center was created in collaboration with Hong-Kong based Geek+ for automation technology and is set to process 3.6 mn unit orders per month, Zawya reported earlier, citing a Starlinks statement. Its storage area spans 400k square feet, the statement added.

About Starlinks: Saudi-based Starlinks is a supply chain solutions business which provides end-to-end supply chain management and operations across Saudi Arabic and the GCC.

Al Seer Marine reports lower net income in 2Q 2023

Al Seer Marine’sbottomline fell 95.26% y-o-y to AED 38.3 mn in 2Q 2023, according to the company’s financials (pdf)on the Abu Dhabi Securities Exchange (ADX). The supplies and equipment company’s topline inched up 3% y-o-y to AED 312.8 mn during the same period. Al Seer reported a net loss of AED 749.7 mn in 1H 2023, while revenues during the period went up 18.9% to AED 564.3 mn.

The company’s net loss position during the first half of the year comes off the back of a AED 784 mn loss on investments as a result of challenging economic conditions that have impacted equities, according to an earnings release. Al Seer Marine’s strategic acquisitions, however, boosted growth and drove a 63.5% y-o-y increase in the size of property, plant, and equipment to reach AED 1.2 bn in 1H 2023. “These investments have not only diversified our operational capabilities, but also positioned us to better serve the growing global demand for gas transportation,” Al Seer Marine CEO Guy Neivens said.

Jordan, Iraq eye boosting trade ties + Zambia, UAE officials talk logistics cooperation

Jordan + Iraq to deepen bilateral cooperation: Jordan’s Prime Minister Bisher Khasawneh and Iraq’s Prime Minister Muhammad Shia’ Al Sudani held talks to bolster cooperation in several fields and economic cooperation, Jordan News Agency reports. The two officials discussed boosting trade volumes, expanding cooperation in the economic, trade, and investment fields, and supporting the private sector in increasing private sector trade exchange between the countries, according to the news agency. They also discussed developments concerning the joint economic city project and extending a pipeline to export Iraqi oil.

ALSO WORTH KNOWING-

UAE’s State Minister Sheikh Shakhboot bin Nahyan Al Nahyan discussedboosting cooperation on logistics with Zambian President Hakainde Hichilema. (WAM)
Azerbaijan’s President Ilham Aliyev has reassured Iran that it will not block the transit route between Iran and Armenia, which comes as the countries are looking to expand their relations, and increase the value of their trade exchanges to USD 3 bn. (Tasnim)

US airlines’ cargo revenues decline as passenger travel rebounds + LNG newbuilds are getting the lion’s share of investments from shipowners

Air cargo revenues are falling, but it’s not all bad: American airlines are seeing their cargo revenues fall, which is actually a positive sign for the recovery of the travel industry, CNBCreports. Major US carriers, including Delta Airlines, United Airlines, and American Airlines, have reported around 40% y-o-y drops in their 2Q 2022 cargo revenues. The drop indicates a shift from a pandemic trend that saw airlines rely on transporting goods to compensate for revenue loss, CNBC explains, adding that this points to a sign of growth and recovery in the travel sector.

Shipowners have spent some USD 47 bn for newbuild LNG carriers in the past 18 months, surpassing the amount spent on new containerships, Seatrade Maritime reports. Spending on new LNG carriers since the start of 2022 is now the largest for any shipbuilding sector and represents 27% of newbuild investments. LNG newbuilds ordered this year amount to some 30 carriers worth USD 7.7 bn, according to Seatrade Maritime.

Demand for replacements, upped cargo volumes, energy security, and infrastructure requirements are driving the spike in new orders, according to Clarkson Research analysis cited by Seatrade Maritime. Despite hikes to shipbuilding prices, shipowners are scrambling to secure available slots between now and 2027. The trend is likely to continue as surging demand for LNG in Asia and the role of the low emission fuel in the clean energy transition boost demand.

ALSO WORTH KNOWING-

Danish freight forwarder DSV has upped its full-year net income guidance due to bumper 2Q earnings and a forecasted surge in trade volumes. (Statement)

UAE + US firms to help develop India’s green ports + QDB to provide Qatari freezone firms with financial solutions. PLUS: More from IMO

UAE + US companies to help develop green ports in India: UAE-based port and marine services company Trot Solutions signed an MoU with US lithium-ion battery tech firm C4V to develop renewable energy and storage solutions to power India’s port activities, the Press Trust of India news agency reports, citing a C4V statement. The timeline and investment cost of the project were not disclosed.

The details: The agreement covers converting the existing ports into green facilities and jointly developing a “strong supply chain through C4V gigafactories,” according to the statement. The two companies will also collaborate on research and development projects, and building renewable and battery storage facilities that will power all port equipment, including small vessels.

TheUAE’s Energia Verde is also set to invest USD 18 mn in greenifying Indian ports: UAE-based real estate firm Luxury Assets Real Estate will invest INR 1.5 bn (c. USD 18.3 mn ) to greenify three of India’s ports through Energia Verde, its newly formed JV with the UK’s Sunshine Holdings, CEO Mohammed Adeel Shaikh told Enterprise. The ports are located in Mumbai and the south and eastern regions of the country. A timeline for the operational launch of the projects was not disclosed.

ALSO WORTH KNOWING-

Qatar Development Bank (QDB) will provide investors in freezones underQatarFreezonesAuthority with its financial services, programs and advisory. (Statement)
The United Nations’ International Maritime Organization (IMO) is set to open aregional officein Alexandria by the end of the year. (Statement)
The United Nations has begun an operation to transfer 1 mn barrels of oil from the decaying FSO Safer to a replacement vessel off Yemen's coast to prevent a potential environmental disaster. (France24)

UK and France partner up to improve seafarers' working conditions

The UK + France introduce new initiatives to improve conditions for seafarers: The UK government has unveiled a new package of measures providing significant improvement in seafarers’ rights and welfare with the introduction of the Seafarers’ Charter, it said in a statement. The charter, supported by major ferry companies, aims to ensure fair wages, proper rest periods, and appropriate training for thousands of seafarers.

The details: The Seafarers’ Charter requires employers to pay overtime at a rate of at least 1.25x the basic hourly rate, provide adequate training and development, provide full indefinite contracts, allow access to social security benefits, and conduct regular drug and alcohol testing.

The charter is a response to P&O Ferries’ unjust firing of nearly 800 staff without notice or consultation last year, according to the statement. It will be launched alongside a similar initiative by the French government, strengthening cooperation between the two countries to protect those working in the Channel. It comes as part of the government’s wider nine-point plan to protect seafarers and boost employment protections.

Nuclear propulsion for shipping could help speed up the path towards net zero

Nuclear-powered shipping can improve vessels’ operational efficiency and cut back on emissions,according to an American Bureau of Shipping (ABS) study picked up by Splash. The study, which modeled the effects of fitting a 14k TEU container vessel and a 157k dwt Suezmax tanker with nuclear propulsion, yielded overwhelmingly positive results in terms of upped container capacity, speeds, and emissions reductions, Splash reported. The addition of four 5 MW, heat-pipe microreactors helped raise operational speeds, and only required refueling once during its 25-year life span. Both concept vessels would emit zero CO2, though the vessel with the four microreactors had decreased cargo capacity, Splash reported.

Despite significant potential, challenges abound: A transition to nuclear propulsion in commercial shipping carries significant challenges in terms of commercializing the technology involved, financial models, and public perceptions, according to a separate Splash report. Entrenched public opinion against widespread applications of nuclear energy is perhaps the most significant hurdle, with the report noting that the public “fears” nuclear power.

Financial models are also a problem: The commercial shipping sector operates in accordance with a widely-accepted arrangement whereby shipowners build, finance, maintain, and operate ships while cargo movers foot the fuel bill. A switch to nuclear power would disrupt this balance as ships would require more resources to build and operate, but would not require refueling during their lifespan, the report notes.

Calendar

JULY

17-28 (Monday-Friday): The fourth round of negotiations between the GCC and the UK for a trade agreement will take place in London.

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

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

28 August (Monday): Registration for Emirates Postal Group’s Logistics Unleashed competition concludes.

SEPTEMBER

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

5 September (Tuesday): The Leaders in Logistics KSA Summit, Crowne Plaza Al Waha, 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.

18-19 September (Tuesday-Wednesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

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.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

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

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

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.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

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

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

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

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.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

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.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

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.

1H 2024: Work is scheduled to begin on the 162 km Rasht-Astara railway in Iran.

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

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.

2024

The Bahrain International Airshow will kick off to mark a decade of success

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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