MSC to acquire undisclosed shares in Turkey’s Socar Terminal

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TODAY: MSC to snap up undisclosed shares in Turkey’s Socar Terminal

Good morning, folks. We’re heading into the weekend with another brisk read. Still, today’s issue is nothing short of important updates, with M&A, data centers, and trade updates from Turkey, Iraq, UAE, and Egypt. Shall we?

WATCH THIS SPACE-

#1- Asyad to scout four LNG newbuilds in 2026: Oman’s Asyad Shipping — the LNG transport unit of state-backed logistics giant Asyad Group — is looking to place orders for four new LNG carriers next year, TradeWinds reports, citing remarks made by CEO Ibrahim Al Nadhairi during the London International Shipping Week. The logistics player currently has eight LNG carriers in its fleet, two of which are newbuilds expected for delivery by 2026, Al Nadhairi reportedly said.

ICYMI: The firm debuted on the Muscat Stock Exchange last March after raising USD 332.8 mn in an IPO that saw 20% of its shares floated.

#2- Pakistan eyes Emirati, Saudi investments for rail upgrade: Pakistan will court Emirati investors later this month as it seeks as much as USD 2.5 bn in funding for long-delayed rail upgrades, Railways Minister Hanif Abbasi told Arab News. He will visit the UAE and Saudi over the next month to pitch a 25-year build-operate-transfer model.

Mashreq Bank may also be involved, with Abbasi confirming meetings with the bank, which just rolled out commercial operations in Pakistan, to explore prospects in the railway sector. Similar proposals will be taken to Saudi Arabia in mid-October and France later in the month, Abbasi told Arab News.

REFRESHER- DP World is set to invest USD 400 mn into a freight corridor — running from Pakistan’s Karachi Port to Pipri marshalling yard at Port Qasim — under a joint agreement with Pakistan Railways and state-run National Logistics Corporation (NLC). Earlier this year, Etihad Rail and Pakistan’s Railways Ministry inked MoUs to improve the country’s rail network and explore developing a new one.

#3- Iraq’s Development Road project has a new backer: The Omani government has submitted an official request to join the list of sovereign backers of Iraq’s Development Road project, Iraqi Transport Minister Razzaq Muhaibas Al Saadawi said in a statement. The project is also backed by Turkey, Qatar, and the UAE.

What we know about the project: The project includes plans for 15 industrial and logistical zones, along with the construction of a 1.2k-km rail and road link connecting Iraq's Grand Al Faw Port — currently under construction — and Turkey, Arabian Business Gulf Insight (AGBI) reports. The project targets completion in 2029 with an investment ticket of USD 17 bn, according to AGBI.

ICYMI- Iraq completed the first section of road links on the Development Road project, including parts of a three-lane road for heavy trucks and cargo last May. The section covers 62 km, featuring a submerged 11-km tunnel that links Grand Al Faw Port to Safwan road.

#4- Israel attacks Hodeidah Port again: Israel launched a dozen airstrikes on three docks in Yemen’s Hodeidah Port on Tuesday, hours after it issued an order to evacuate the port, Reuters reports, citing Houthi-run Al Masirah TV and unnamed sources. Israel claims the port is being used as a Houthi-controlled point to import weapons from Iran into Yemen.

This isn’t the first time: Israel has struck Hodeidah Port over the last two years multiple times, with the latest campaign taking place in July. Israel had previously attacked three Yemeni ports — Hodeidah, Ras Isa, and Salif — earlier in the same month in retaliation for missiles fired at Israel from Yemen.

REMEMBER- Hodeidah port is responsible for about 80% of the country’s food imports. The port is also essential for the country’s humanitarian aid operations— and has seen its capacity for aid imports fall to about a quarter due to Israeli attacks.

MARKET WATCH-

#1- Oil prices went down in the wake of the US Federal Reserve decision to slash rates yesterday, Reuters reports. Brent crude futures decreased by USD 0.13 to reach USD 67.82 / bbl by 04:17 GMT, while US West Texas Intermediate (WTI) also shed USD 0.18 to trade at USD 63.87 / bbl.

Meanwhile, oil traders are reportedly scrambling to secure supertankers on the Middle East-Asia route as suppliers raise output across the region, Bloomberg reports. Rates for very-large crude carriers (VLCCs) have surged to 100k industry-standard Worldscale points — around USD 96k per day. “A lot more oil is being shipped and we have a market that we’ve not seen in a long time,” chartering manager at Dynacom Tankers Management Odysseus Valatsas said.

#2- Baltic index keeps moving upwards: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — increased to 1.2% on Wednesday to a new high since 28 July, buoyed by the larger-size segment. The capesize climbed 3.5% to 3,300 points, while the panamax index shed 2.3% to 1,923 points. The smaller supramax index was up 0.1% to 1,492 points.

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CIRCLE YOUR CALENDAR-

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

Turkey will host the Global Freight Summit on Sunday, 28 September until Wednesday, 1 October in Istanbul. The summit will host over 330 attendees and more than 250 firms for policy and knowledge and strategies exchange between forwarding partners.

The UAE will host the African, Middle East, and Islamic Finance Aviation 100 Awards on Monday, 29 September until Wednesday, 1 October in Dubai. The event aims to highlight and reward the most remarkable transactions closed by airlines and aviation manufacturing and leasing firms.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 1 October and Thursday, 2 October in Dammam. It will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure.

The UK will host the Marine Environment Protection Committee Extraordinary Session from Tuesday, 14 October until Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

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

Socar taps MSC to boost operations at Turkey’s Socar Terminal

MSC snaps up shares in Turkey’s Socar Terminal: Italian shipping giant Mediterranean Shipping Company (MSC) inked an agreement with Socar Türkiye, a subsidiary of the State Oil Company of the Azerbaijan Republic (Socar), to become a shareholder of Socar Terminal in Turkey’s Izmir on the Mediterranean, according to a statement. The size of the stake and the transaction were not disclosed.

The rationale: The agreement will see the pair partner on boosting investments in equipment, tech, and digitalization at the terminal in a bid to increase capacity and operational efficiency. TIL will leverage its shipping network and expertise to cap waiting times at the port, according to Azerbaijani outlet Baku WS.

TIL has its fair share in the region: Marsa Maroc inked an agreement with TIL earlier in February to split ownership of Morocco’s Nador West Med Eastern Container Terminal. The agreement was set to grant TIL 49% ownership of the subsidiary owning the terminal. KSA’s King Abdullah Port is TIL’s most prominent MENA project — and the Kingdom’s largest transhipment port and second-largest handling facility, according to TIL’s website.

About Socar Terminal: The container terminal — the largest in the Aegean region — spans some 420k sqm with a 16-m depth and 30k-sqm back area. It is capable of handling next-generation ULCS-class vessels, accommodating ships weighing up to 165k DWT and handling vessels with a capacity of up to 18k TEUs, according to its website.

The latest from Socar: Syria’s Energy Ministry inked an MoU with Socar earlier in July to import gas to Syria through Turkey, mainly for use by power plants in Aleppo and Homs — a supply expected to generate around 1.2-1.3k MW of electricity. AD Ports subsidiary Safeen Group also signed an MoU with Socar to cooperate with Azerbaijan’s maritime and shipping sectors back in 2023.

Iraq partners with Nokia to build first gov’t-owned data centers

Iraq + Nokia to build commercial data centers: Iraq’s Informatics and Telecommunications Public Company (ITPC) has signed an agreement with multinational telco giant Nokia to establish commercial data centers that serve the private sector, according to a statement.

What’s in store? The project entails building two data centers — that will also cater to governmental and civil entities — based at Al Intisar and Al Rasheed switchboards in Baghdad. No investment ticket or project timeline were disclosed. The facilities will be Iraq’s first government-owned data centers, Iraqi News reports.

What they said: "For the first time, the data of Iraqis and all companies is preserved inside Iraq in government sites and hands according to the latest specifications and with global accreditation and highly reliable means of security and reliability recognized internationally,” Iraqi Communications Minister Hiyam Al Yasiri was quoted as saying.

Nokia has previously established a data center for Iraq’s Planning Ministry, according to Iraqi News. The Finnish telco player also signed a three-year strategic partnership with Zain Iraq to upgrade its operations in southern Iraq, according to a press release published last year.

IN OTHER DATA CENTERS NEWS-

e& plans Serbia expansion to power Balkan cloud hub: e&’s digital arm e& Enterprise signed an MoU with Serbia’s Office for IT and e-Government to grow the country’s digital infrastructure, according to a press release. The agreement will see capacity at Serbia’s Tier-4 data center campus in Kragujevac triple by up to 40 MW, from 14 MW currently. Land has already been secured for the expansion, which will host workloads from regional government agencies, hyperscalers, and enterprises.

e& is expanding its operations in Europe: In July, e& — along with Mubadala Investment Company — also signed an agreement with Hungary’s 4iG to explore regional digital infrastructure projects. The latest partnership connects Serbia to e&’s broader digital corridor linking MENA and Europe and opens the door for further collaboration in the Balkans through e& PPF Telecom Group — a JV between e& and Prague-based PPF Group, which acquired Serbia Broadband earlier this year.

UAE and 13 other nations launch new trade bloc

UAE among 14 countries in new trade bloc: The UAE joined 13 other countries yesterday to launch the Future of Investment and Trade (FIT) Partnership, according to a statement from the New Zealand government. The initiative is meant to boost investment flows and address emerging trade challenges through a rules-based approach. State news agency Wam also picked up the news.

We knew this was coming: Earlier this month, the UAE was reportedly preparing to spearhead a smaller World Trade Organization-member trade bloc focused on trade openness and international rules. The group — which was expected to launch virtually in November with 10 members — was pitched as a way to give smaller economies a stronger collective voice as US reciprocal tariffs roiled global trade and hit Asian and African countries hardest.

Who’s in: The bloc’s founding members are the UAE, Singapore, New Zealand, Switzerland, Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Morocco, Norway, Panama, Rwanda, and Uruguay.

The priorities: The bloc will focus on practical initiatives, including strengthening supply chains, cutting non-tariff barriers, facilitating foreign direct investment, and adopting new trade technologies. Earlier reports also suggested it could prioritize digital trade standards such as e-signatures and electronic documents. It is designed to remain non-binding and flexible.

The UAE’s non-oil foreign trade has been on the rise: Non-oil foreign trade jumped 24% y-o-y to nearly AED 1.7 tn in 1H 2025, with exports up 44.7% to a record AED 369.5 bn, accounting for 21.4% of total non-oil trade. Trade made up the largest share of non-oil GDP in 1Q 2025 at 15.6%, with the sector now on track to hit AED 4 tn by 2027 — four years ahead of the original 2031 target.

ENERGY TRADE UPDATES FROM EGYPT-

#1- Long-stalled Nitzana pipeline to finally begin construction? Chevron and its Israeli Leviathan partners NewMed Energy and Ratio Energies inked a USD 610 mn agreement with pipeline operator Israel Natural Gas Lines to build the long-awaited Nitzana pipeline connecting Israel and Egypt, NewMed Energy said in a disclosure (pdf) to the Tel Aviv Stock Exchange. The 600 mn cubic feet a day (mcf/d) pipeline stretching 65 km between Israel’s southern gas network and Egypt’s gas network in eastern Sinai will bring Israel’s export capacity to Egypt to 2.2 bcf/d when construction wraps up in 2028, Reuters reports, citing a Chevron statement.

The project has been plagued by delays due to volume allocation and cost burden disagreements between Chevron's partners and Israel’s Natural Gas Authority, with the launch of the pipeline initially planned for this year. The delay will cap Israeli gas exports to Egypt at 1.6 bcf/d from 2H 2026, limiting Egypt's ability to secure a more affordable alternative to costly LNG shipments amid rising domestic demand and declining production.

The news follows a USD 35 bn natural gas export agreement between the two countries last month, which will see 130 bn cubic metres of gas exported to Egypt from 2026 through 2040 under an amendment to an existing 2019 gas export agreement. Flows will first increase from 4.5 bn cubic metres in 2025 to 6.5 bn cubic metres as early as 2026 under the first 20 bn cubic meter phase of the agreement.

The future of the agreement is uncertain after Israeli Prime Minister Benjamin Netanyahu froze it amid rising Israeli-Egyptian tensions.

#2- The Madbouly government reached an agreement with Italy’s Eni to connect Cyprus’s offshore Cronos gas field to Egypt’s Zohr infrastructure to be liquefied and re-exported, an unnamed government source told Asharq Business. The government will make between USD 1-1.5 per mn British thermal units (BTU) exported, with volumes expected to reach 500 mcf/d once operations begin in 2027.

That’s not all: Plans are underway to fast-track the connection of another one of Cyprus’s offshore gas fields, Aphrodite, to the Zohr infrastructure, raising the combined capacity from both fields to 1.3 bcf/d of gas set to be routed through the network by 2028.

REMEMBER- Egypt and Cyprus inked multiple agreements earlier this year that will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

Gulf Air appoints Martin Gauss as CEO

Gulf Air appoints new CEO: Bahrain’s flag carrier Gulf Air has tapped Martin Gauss (LinkedIn) as chief executive officer, with the appointment slated to take effect on 4 November, BNA reports. A former pilot, Gauss has held several senior roles, including Managing Director at Germany’s Deutsche BA and CEO at Cirrus Airlines and Latvian flag carrier Air Baltic. He will be replacing Jeffrey Goh, who has acted as CEO since 2022.

Updates on warehouses. regulation and aviation from Qatar and the UAE

STORAGE + WAREHOUSES-

Nexx sets up fulfillment center in MLC: Hong Kong-based smart logistics firm Nexx has partnered up with Chinese e-commerce logistics firm Zipto Supply Chain to develop and operate a 5k sqm AI fulfillment center in Qatar’s Milaha Logistics City (MLC), Gulf Times reports. The facility is scheduled to start operations in 4Q 2025.

The details: The center will provide end-to-end warehousing services through AI-powered management systems, along with automated sorting robots for cross-border B2C and B2B e-commerce businesses. Chinese logistics firm Kerry e-Commerce will also operate the facility.

The UAE also has footprints in this project. Nexx partnered up with last-mile delivery firm iMile, enabling the UAE-based company to set up a base at the new fulfillment center in MLC and expand its services across Qatar.

REMEMBER- Nexx is backing MLC’s automation drive: Milaha inked an MoU with Nexx in June to use its AI-powered automation technologies in MLC — supporting MLC’s “transition to semi and fully-automated” operations by optimizing sorting, picking, and fulfillment.

REGULATION WATCH-

Qatar unites shipping under one commercial registry: The Qatari government has announced that logistics companies operating in the shipping field can now combine their land, sea, and air activities under a single commercial registration, according to a statement. The move aims to reduce costs, ease bureaucratic processes, and support local logistics companies.

AVIATION-

#1- Emirates launches new AED 500 mn flight training center in Dubai: Emirates Airline has opened a new flight crew training centre valued at AED 500 mn, providing current and future pilots training on its fleet of Airbus A350s and upcoming Boeing 777Xs, according to the Dubai Media Office.

#2- Budget carrier flydubai will begin four weekly flights to Nairobi from 15 October, operating out of Terminal 3 at Dubai International Airport, according to a Dubai Media Office statement. The airline will also increase its Mombasa route to a daily service from 1 October, bringing its total weekly flights to Kenya to 11.

Bigger picture: The addition of Nairobi takes flydubai’s African network to 12 destinations, including Addis Ababa, Alexandria, Asmara, Al Alamein, Cairo, Dar es Salaam, Djibouti, Entebbe, Hargeisa, and Zanzibar.

FedEx to see lower earnings due to halted ‘de minimis’ levies

FedEx to face a rough quarter: US-based logistics giant FedEx is set to register an unspecified earnings drop this upcoming quarter after the US move to end the de-minimis rule — a duty exemption on packages entering the US worth USD 800 or less, Reuters reports, citing unnamed analysts. The firm’s CFO, John Dietrich, forecasted a nearly USD 170 mn drop in earnings for its last fiscal quarter — representing almost 0.8% of their overall revenue.

DATA POINT- China and Hong Kong account for some 75% of the small parcels arriving in the US under the de-minimis rule.

REFRESHER- The US ended its de-minimis rule starting 29 August, forcing at least 30 countries to suspend parcel freight into the US. Parcel shipments to the country reportedly dropped by 80% in early September.

Calendar

15-19 September (Monday-Friday): London International Shipping Week, London, UK.

23 September (Tuesday): TradeWinds Shipowners Forum Greece, Athens, Greece.

24 September (Wednesday): Syria Recovery and Investment Forum, Abu Dhabi, UAE.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

25 September (Thursday): World Maritime Day.

28 September-1 October (Sunday-Wednesday): Global Freight Summit, Istanbul, Turkey.

29 September-1 October (Monday-Wednesday): African, Middle East, and Islamic Finance Aviation 100 Awards, Dubai, UAE.

30 September-2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

1-2 October (Wednesday-Thursday): Saudi Maritime and Logistics Congress, Dammam, Saudi Arabia.

6-8 October (Monday-Wednesday): Maritime Cyprus Conference, Limassol, Cyprus.

7-8 October (Tuesday-Wednesday): Global EV and Mobility Technology (Gemtech) Forum, Riyadh.

7-9 October (Wednesday-Thursday): World Aviation Festival, Lisbon, Portugal.

13-17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

14-16 October (Tuesday-Thursday): AntwerpXL, Antwerp, Belgium.

15 October (Wednesday): Global Trade Review, Cairo, Egypt

16-18 October (Thursday-Saturday): International Forum and Expo on Mobility, Transport and Logistics (Logiterre), Casablanca, Morocco.

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

NOVEMBER

3-6 November (Monday-Thursday): Adipec Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

DECEMBER

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

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

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

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

MARCH 2026

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

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