Netanyahu eyeing transport cooperation with KSA

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What we're tracking today

TODAY: DP World could lock in a concession terminal at India’s Kandla Port + bear on the loose on Iraqi Airways flight

Good morning, friends. Just as we predicted, the newsflow this week is keeping us on our toes, with plenty of big updates from across the region.

THE BIG LOGISTICS STORY- Kazakhstan is in talks with a Dubai-based container shipping firm over an agricultural exports route linking it to the Middle East and beyond , via Iranian and Emirati ports. Over in Saudi Arabia, King Abdullah Port has inked strategic partnerships with two fuel service providers to operate at the port.

HAPPENING TODAY-

Bear on the loose: Iraq’s Transport Ministry is currently investigating how a bear escaped from its crate in the cargo hold onboard an Iraqi Airways plane at Dubai International Airport, following a probe by the prime minister, according to a statement from the Prime Minister’s office. The investigation will look into how this caused a negative impact on the aircraft’s performance, flights, and passenger services, according to the statement. The Iraqi airline has since issued an apology for causing almost an hour delay to the flight, cited by the National.

WATCH THIS SPACE #1- DP world is set to finalize a concession agreement for the Tuna-Tekra container terminal in India’s Kandla Port today , India’s ET Infra reports, citing a ministry official.Deendayal Port Authority, a state-owned entity responsible for supervising the Kandla port in Gujarat,awarded Dubai-based DP World’s Indian arm, Hindustan Ports, the concession for the construction of a USD 519.13 mn container terminal at Tuna Tekra earlier this year in February, according to Reuters. The agreement had faced delays due to a court case challenging the environmental clearances, ET Infra reports.

About the terminal: Once complete, the terminal will include a 1100-meter-berth and will have the capacity to accommodate vessels transporting over 18k TEUs, according to a company statement. The terminal will have a total capacity of 2.19 mn TEUs.

In context: DP World has been looking to strengthen its position on India's western coast, as its existing terminal contracts near expiry, according to ET Infra. DP World’s two terminal contracts at Jawaharlal Nehru Port, the second-largest container terminal in India, are set to reach the end of their 30-year terms in 2028.

DATA POINT- Bahrain International Airport (BIA) handled 177k tons of cargo in 1H 2023 , a 6.34% y-o-y drop, Bahrain News Agency reports. The airport did however see improved air traffic, with a 19.8% y-o-y increase to 44.1k aircraft movements, BNA said. Meanwhile, Bahrain’s Gulf Air handled 38.3k tons of cargo in 1H 2023.

CIRCLE YOUR CALENDAR- 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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Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

LISTEN TO OUR PODCAST-

MISSED THE ENTERPRISE EXPORTS AND FDI FORUM? The EnterprisePodcast has you covered : The Enterprise Podcast’s forum series has been bringing you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,which took place in May. Throughout, we learned lessons from some of Egypt’s biggest exporters on how Egypt can export its way out of a crisis. We heard everything from how to build an exports and FDI strategy, to identifying a foreign partner and tapping into a global supply chain.

WANT TO LISTEN? Head to: Apple Podcasts | Spotify | Google Podcasts | Anghami | Omny.

IT’S THE FINAL EPISODE- Our final panel of the day was, naturally, the most forward looking. Our panelists discussed how the companies — be they in age-old industries or emerging ones — have adapted to changes to better position their businesses for an uncertain future. We were joined by Nadia El Tawil, investment officer at pan-African private equity firm AfricInvest, Mostafa Bedair , CEO of Giza Seeds and Herbs, and Abdallah Sallam, CEO of Madinet Masr.

OUR FORUM SERIES CONTINUES NEXT SUNDAY WITH THE ENTERPRISE CLIMATE FORUM- Fresh off the heels of a successful COP27, we held our first forum to dive deep into the fundamentals of what we think is the world’s most important industry. The conversations ranged from exploring the business opportunities for Egyptian entrepreneurs, companies and startups in climate, to demystifying green hydrogen, and how we finance our green transition. And we did it all in the Grand Egyptian Museum.

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

Kazakhstan in talks over JV to create an agricultural export route via Iranian and Emirati ports

Kazakhstan eyes JV to export agricultural products via transit hubs in Iran and the UAE: Kazakh Deputy Prime Minister and Minister of Trade Serik Zhumangarin met with Simatech Shipping and Forwarding CEO Davud Tafti last week to discuss steps towards establishing the “shortest direct route” connecting the country’s agricultural exports to markets in the Middle East, Pakistan, India and East Africa, according to a ministry statement. The Kazakh statement referred to Simatech as an AD Ports Group subsidiary, though Enterprise Logistics was unable to confirm the accuracy of the statement or receive a response from AD Ports representatives ahead of dispatch time.

The proposed route: Current plans envision the Kazakh port of Kuryk as a starting point for the new route, followed by an oversea and overland journey that will see cargoes delivered to transit hubs at Iran’s Amirabad and Bandar Abbas ports, the ministry statement explained. The three-day journey will position the cargoes within easy access of the Iranian ports of Bandar Khomeini and Chabahar, and the UAE ports of Khalifa and Fujairah, from which they can be forwarded to markets in the Indian subcontinent, the Middle East, East Asia, East Africa, and potentially Europe.

The Kuryk-Khalifa Port axis is the principal component of the proposed route, according to Kazakhstan’s trade ministry statement. To that end, the plan will see investments in infrastructure and equipment to establish the link, the statement said. Simatech also owns two dry ports that can serve as hubs for the consolidation and repackaging of Kazakh agricultural exports.

The proposed initiative ties into bilateral transport agreements between Kazakhstan and Iran, the statement adds. Kazakh Prime Minister Alikhan Smailov’s visit to Iran in April saw both states ink a number of economic agreements, which included a framework to develop links between the ports of Kuryk and Amirabad. Work is currently underway on grain terminal infrastructure to leverage the planned links.

About Simatech: The Dubai-based feeder operator owns sixteen vessels in sixteen different destinations within the Gulf, the Indian subcontinent, Far East and East Africa, according to its LinkedIn. The company also has a number of commercial ports and terminals in Arab countries, according to the Kazakh ministry statement.

King Abdullah Port inks agreements with two bunkering service providers

Two bunkering service providers to operate at King Abdullah Port: Saudi Arabia’s King Abdullah Port has inked strategic partnerships with two marine fuel service providers — UK-based Western Fuel Supply for Petroleum Products and global fuels provider Minerva Bunkering — to provide bunkering services, according to a statement. The move comes as the port looks to boost its maritime service offerings to vessels, the statement said.

Saudi Arabia has been on a bunkering spree: The Saudi Ports Authority(Mawani) recently inked an agreement with Alba Nova and Trafalgar Oil to establish a SAR 2 bn integrated center for bunkering in Saudi’s King Fahad Industrial Port in Yanbu, as part of plans to supply 10 mn tons of fuel to vessels transiting through and arriving to Saudi ports.

Minerva is making rounds across the MENA region: Minerva Bunkering, subsidiary of Mercuria Energy Group, recently began providing bunkering services in Egypt’s Suez Canal, with deliveries to 10 bunker clients in May. The Suez Canal had granted one-year bunkering licenses to Minerva Bunkering, Coral Energy, and Peninsula last year through a tender.

More competition for the UAE’s bunker hub Fujairah: The increased presence of alternative fueling options in Saudi Arabia, Oman, and other ports in the UAE, like Sharjah, has contributed to sluggish demand in Fujairah, according to S&P Global. This has led to a 10.5% y-o-y drop in bunker sales to 3.6 mn cubic meters in 1H 2023, according to S&P Global data.

Neweast to open largest spare parts hub in the Middle East in Jafza

Neweast to set up automotive spare parts distribution center in Jafza: DP World subsidiary Jebel Ali Freezone(Jafza) has inked a lease with UAE-based automotive company Neweast General Trading to launch the biggest spare parts hub in the MENA region by October 2024, according to a press release. The company intends to employ some AED 500 mn into a 165k square meter area at the freezone.

Details: Neweast will allocate a range of automotive spare parts for several vehicles, including passenger cars, vans, buses, trailers and trucks, and serve more than 160 aftermarket brands, the statement said. The spare parts will include engine components, transmission components, braking system parts, suspension system parts, AC system parts, lubricants, batteries, and tires, the statement added.

About the companies: Founded in 1985, Jafza is DP World’s primary freezone, and the largest customs bonded zone in the Middle East. Neweast was founded in 1992 to import and distribute aftermarket automotive parts in the UAE.

Qatar’s Milaha sees marginal bottomline growth in 1H 2023 amid falling container rates

Qatari ocean carrier Milaha ’s bottomline inched up 1% y-o-y to QAR 284 mn in 2Q 2023 , amid a continued slump in container rates, according to the company’s consolidated quarterly financials (pdf). Revenues for the quarter came in at QAR 744.6 mn, down almost 14% when compared to the same period last year.

On a half-year basis: Milaha’s bottomline for 1H 2023 inched up 0.9% y-o-y to QAR 647.9 mn, according to its semi-annual financials (pdf). Total operating revenues declined almost 15% y-o-y to QAR 1.51 bn.

A drop in container rates from last year’s “near record highs” underpinned muted performance: Milaha Maritime and Logistics division — which covers the group’s port services, container shipping, and other activities — saw its bottomline for the first six months of 2023 fall 84% y-o-y to QAR 30 mn on the back of a steep fall in container rates, according to the company’s investor’s presentation (pdf).

But improved performance across other operations more than made up for the shortfall: Milaha’s other subsidiaries all saw positive bottomline growth in 1H 2023, with Milaha Offshore seeing its net income more than triple to QAR 128 mn, on the back of higher yielding projects and better operational efficiency, the investor’s presentation showed. Milaha’s gas and petrochem segment also saw its bottomline rise 6% y-o-y as the business’ first floating storage and offloading (FSO) unit came online halfway last year, making the largest contribution to Milaha’s coffers with a net income of QAR 326 mn.

Looking ahead: The company has muted expectations for maritime freight and other logistics operations in 2H 2023. It sees container rates remaining stable following the large slump in 1H, while warehousing and freight forwarding will likewise also be “subdued,” according to the investors’ presentation. Other operations are slated to see strong to stable growth, in line with what has been observed so far this year.

Swisslog appoints new general manager

Swiss automation solution companySwisslog has appointed Rami Younes (Linkedin) as its general manager and head of sales for Swisslog Middle East, according to a press release. Younes served as COO at ALS Logistic Solutions since 2021, following a two-year stint as COO at Integrated Logistics Services and over a decade at Emerson Commercial & Residential Solutions.

Younes is taking over from David Dronfield (Linkedin), who served as Swisslog’s general manager for two years.

Could Israel + Saudi Arabia cooperate on a transport corridor? PLUS: Jordan + Egypt discuss ways to boost trade, and more from Iran

Israel is confident it will deepen its economic and business ties with Saudi Arabia despite the current absence of formal relations , Israeli Prime Minister Benjamin Netanyahu told Bloomberg in an interview (watch, run time: 3:40). There is “an economic corridor of energy, transport, and communications that naturally goes through our geography [with Saudi Arabia]… we will realize that whether we have formal peace or not,” Netanyhu says in the interview.

Politics not an obstacle: Netanyahu does not think political questions will block or sour this potential with KSA. “If there is political will, there will be a political way to achieve normalization… with Saudi Arabia,” he adds. Netanyahu also dismissed the idea that the Palestinian issue would hinder a potential Saudi-Israel agreement, calling it “sort of a check box” and stressing that he would not do anything that “will give away Israel’s security.”

The two countries have already interacted with each other on an informal level, with Netanyahu visiting the Kingdom back in 2020 , a trip that was never officially recognised, Bloomberg writes. The Kingdom also opened its airspace last year to airlines flying in and out of Israel — and just this month, Israeli-based company SolarEdge Technologies announced a joint venture with Saudi firm Ajlan & Bro’s to develop renewable energy, the outlet writes.

This isn't the first we’ve heard of an economic corridor between Israel and KSA: Back in July, reports that Israel and the US were on track to create a land route linking the UAE to Israel via Saudi Arabia and Jordan made rounds in the media. The corridor would slash costs and transit times for the transport of goods from the UAE to Israel.

Amman chamber issues recommendations to boost Jordan-Egypt trade: The Amman Chamber of Commerce (ACC) proposed several measures to boost Jordan’s exports to the Egyptian market, and implement the trade MoUs signed between the countries, according to a report prepared by the ACC picked up by Jordanian news agency Petra.

The recommendations: The report recommends designing support programs for technical conformity, establishing collaborative trade exhibitions, streamlining customs procedures, reducing administrative costs for the smooth flow of goods between the two countries, and exchanging trade data, according to Petra. These measures all fall in line with the countries’ efforts to facilitate and bolster joint trade, and aim to address challenges identified by the report, including obstacles to registration procedures, transportation obstacles, and high costs.

The report was presented during the Joint Jordanian-Egyptian Higher Committee session , which took place yesterday and saw officials ink several MoUs in the fields of economic policy, environmental affairs and vocational training, Ahram Gate reports.

ALSO WORTH KNOWING-

Russian Deputy Minister of Industry and Trade for Aviation Affairs Andrey Boginsky discussed strengthening cooperation in aircraft overhaul and manufacturing with Iran’s Deputy Minister of Industry for Transportation Affairs Manouchehr Manteghi.(Tasnim News Agency)
Iranian political deputy at the Foreign Affairs Ministry Ali Bagheri Kani met with Serbia's State Secretary Ambassador Goran Aleksić to discuss enhancing trade ,boosting trade volumes and economic ties. (Mehr News Agency)

Etihad Cargo to deliver US post + DHL Aviation is using Egyptair’s cargo complexes. PLUS: New customs duty on Iraqi carpet imports

AVIATION-

Etihad Cargo to deliver US post: Etihad Cargo has inked an interline agreement with a division of US-based National Air Cargo, National Airlines, to roll out the ICAIR23 program for the United States Postal Service (USPS), which is slated to launch this month and continue till August 2027, according to a press release. The first stage of the program will see National Airlines dispatch USPS civilian, military, and diplomatic mail using Etihad Cargo’s services.

DHL Aviation to operate cargo flights via EgyptAir Cargo ’s cargo complexes: EgyptAir Cargo will handle DHL aviation’s cargo flights through its cargo complex in Cairo under a new agreement, according to a statement. DHL Aviation began operating its first cargo flights through the complex on 1 August, and will be operating two flights every week.

ALSO WORTH KNOWING-

Ira q’s cabinet has slapped a 60% customs duty on imported carpets and rugs. The tariff, which aims to protect local producers, will remain in effect for four years. (Statement)

MSC acquires majority stake in air freighter AlisCargo Airlines + Yellow files for bankruptcy

MSC has acquired a majority stake in Milan-based air freight carrier AlisCargo Airlines , with plans for a full takeover by early 2024 once AlisCargo restarts operations with the delivery of a Boeing 777F, according to a press release. The move aims to strengthen MSC Air Cargo operations, establishing a European hub and transit point for its solutions and enhancing trade lane network coverage.

ALSO WORTH KNOWING-

US trucking firm Yellow has filed for bankruptcy , after announcing last week that it would shut down operations after failing to refinance USD 1.5 bn of debt. (Statement)

Calendar

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

31 July-9 August (Monday-Wednesday): KSA trade delegation headed by Investment Minister Khalid Al Falih tours Brazil, Chile, Costa Rica, Argentina, Panama, Paraguay, and Uruguay.

8 August (Tuesday): Kuwait will issue a tender for the construction of Mubarak Al Kabeer Port.

27 August (Sunday): Last day for companies to bid for the construction tender for Kuwait’s Mubarak Al Kabeer Port.

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.

11-15 September (Monday-Friday): London International Shipping Week 2023, International Maritime Organization, London, United Kingdom

12 September (Tuesday): Global Pharma Logistics Summit 2023, ITC Maratha, Mumbai, India.

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

20-21 September (Wednesday-Thursday): Saudi Maritime Congress, Dhahran Expo, Damman, Saudi Arabia.

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.

25-27 September (Monday-Wednesday): Agriculture Horticulture Development Board’s trade mission to Kuwait.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

26-28 September (Tuesday-Thursday): Breakbulk Americas, George R. Brown Convention Center, Houston, Texas.

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.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

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.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

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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