Qatar Airways intends to buy a 25% stake in Virgin Australia

1

What we're tracking today

TODAY: Qatar Airways intends to buy a 25% stake in Virgin Australia

Good morning, folks. It’s a busy news morning, with big acquisition updates from Qatar Airways this morning and the latest on how rising escalations from Israel and retaliatory moves from Iran are affecting regional airspace. Let’s dive right in.

THE BIG LOGISTICS STORY- Regional airspace closes in response to Iranian missile fire: Iran fired some 200 missiles at Israel last night in a massive escalation of regional violence, with the Israeli army saying it has intercepted most missiles and reporting one dead in the West Bank. Israeli Prime Minister Benjamin Netanyahu said the attack was a “big mistake” and vowed retaliation during the opening meeting of his security cabinet yesterday, with the US promising to support Israel in its retaliation.

Iranian Foreign Minister Sayed Abbas Araqchi said Iran’s attacks were “finished,” unless Israel retaliates, in which case their response will be “stronger and more powerful” on X a few hours ago.

UAE carriers are rerouting and canceling flights in response to airspace restrictions following the attacks, Khaleej Times reports. Etihad Airways is rerouting flights today, while Emirates had to cancel and reroute others. Flydubai also had to cancel several flights scheduled yesterday, today, and tomorrow. Israel, Lebanon, Jordan, and Iraq all temporarily closed their airspace for a few hours last night in response to Iran’s attacks.

The Iranian attack is getting plenty of play: Reuters | AP | Bloomberg CNN | BBC

WATCH THIS SPACE-

#1- European firms discuss building electrolyzer factory in Egypt’s Sokhna: Representatives from Norwegian firm Scatec, Belgian company John Cockerill, Italian company Relay, and French company SLB met with Egyptian Minister of Industry and Transport Kamel El Wazir to discuss building a factory in Egypt’s Ain Sokhna to manufacture electrolyzers used in generating hydrogen, according to a statement. The officials examined the specific roles of each of the three companies in the green hydrogen production process, their manufacturing capabilities, and the scale and quality of the equipment utilized in producing electrolyzers.

#2- DP World moving forward with expansions in Mozambique: DP World chairman and CEO Sultan Ahmed bin Sulayem and Mozambique’s President Filipe Nyusi met earlier this week to discuss developing industrial parks across the country and expanding Maputo Port, according to a statement. The firm looks to boost investments in Mozambique to strengthen its presence in the country and enhance trade with wider southern Africa, including South Africa, Zimbabwe, and Zambia.

Background: DP World has operated in Mozambique for over 20 years, remaining the longstanding operator at the country’s Maputo Port. The firm inked an agreement in January to extend its concession at Maputo till 2058. The company has invested USD 600 mn in expanding port infrastructure, and is looking to boost cargo handling capacity from 170k to 530k TEU annually by 2027, according to the statement.

MARKET WATCH-

#1- Oil prices surged over USD 1 in early morning trading on the back of growing concern regarding Middle East escalations, Reuters reports. Brent crude futures rocketed 1.36%, or USD 1, to USD 74.56 a barrel by 03.30 GMT, while US West Texas Intermediate crude gained USD 1.07 trading at USD 70.90 a barrel. Both crude benchmarks surged over 5% in trading yesterday.

#2- Baltic continues its decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — plummeted 2.6% to 2,030 points on Tuesday due to lower reading across the board. The capesize index dropped 125 points to 3,524 points, while the panamax index lost another 28 points to 1,386 points. The smaller supramax index fell another 13 points to 1,283 points.

Opec+’s joint ministerial monitoring committee is expected to leave its oil output policy unchanged when it meets at 3pm KSA today, Reuters reports, citing five unnamed sources from the group. The expectation that the group is likely to stick to its current output policy, which includes plans to phase out the voluntary production cuts starting December, comes despite oil prices falling below USD 70 / bbl for the first time in three years.

DATA POINTS-

Qatar’s Mwani processed 5% more vessels m-o-m in September 2024, reaching 249 vessels, according to a statement. The number of containers handled increased 9% m-o-m to 125k TEUs, while general and bulk cargo increased by 48% to 162k tons and livestock volumes increased by 18% to 28.3k heads.

Dubai International Airport (DXB) raised its annual passenger forecast to 93 mn for 2024, up from a previous estimate of 91.8 mn, operator Dubai Airports CEO Paul Griffits said at an event, according to the National. In 2025, DXB is expected to see 93.8 mn passengers travel through the airport. The airport handled 44.9 mn people in 1H 2024, up 8% y-o-y.

***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.

EnterpriseAM Logistics is available without charge thanks to the generous support of our friends at Hassan Allam Utilities and Transmar.

Were you forwarded this email? Tap or click here to get your own copy of Enterprise Logistics.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on logistics@enterprisemea.com.

DID YOU KNOW that we also cover Egypt, Saudi Arabia, the UAE, and the MENA climate industry ?
***

CIRCLE YOUR CALENDAR-

Bahrain will host the Routes World forum from Sunday, 6 October to Tuesday, 8 October. The event will bring together VPs and network planning heads from some 250 carriers to discuss global air route networks.

Saudi Arabia will host the Global Logistics Forum from Saturday, 12 October to Monday, 14 October in Riyadh. The forum will gather key industry players, government officials, and industry experts to discuss optimizing operations and driving growth in the logistics sector. The event will take a specific look at how the sector can adapt with regards to global climate change and incorporate sustainability into their supply-chain operations.

Saudi Arabia will host the Global Airport & Aviation Forum from Wednesday, 16 October to Thursday, 17 October in Jeddah. The forum will bring together aviation leaders and experts to discuss future projects in the aviation industry, including new airport developments, capacity upgrades and expansions, new aircraft orders, and important airport services.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 21 October and Tuesday, 22 October in Riyadh. The two-day conference aims to discuss strategies, innovation, and technologies in line with Saudi Arabia’s Vision 2030, which aims to position KSA as a logistics hub in the MENA region.

The UAE will host the International Conference on Tourism, Transport, andLogistics on Saturday, 26 October and Sunday, 27 October in Dubai. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

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

Qatar Airways intends to buy a minority 25% equity stake in Virgin Australia

Qatar Airways intends to buy a minority 25% equity stake in Bain Capital-owned Virgin Australia for an undisclosed sum, according to a press release. Reports of a possible acquisition emerged in July. The transaction is still pending approval from the Australian government.

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

A W for Qatar: As part of the transaction, Virgin Australia plans to launch flights from Brisbane, Melbourne, Perth, and Sydney to Doha from mid-2025 with leased aircraft, the statement notes. The flights will translate to over 100 new connecting itineraries across Europe, MENA and Africa for Virgin customers. The increased traffic would spell benefits for Qatar’s Doha hub regardless of whether the Australian government approves Qatar Airways' push to add additional routes, Reuters reports.

It’s been a rocky road: Qatar was denied by Australia a request for additional routes last year over what the Australian government described as invasive body searches of five Australian women at Hamad International Airport in 2020. Qatar Airways entered talks more recently with Australia’s government to boost the number of routes it operates in the country to no avail.

What they said: “This partnership brings the missing piece to Virgin Australia’s longer-term strategy and is a huge vote of confidence in Australian aviation … it will further strengthen Virgin Australia’s ability to compete over the long term,” Virgin Australia CEO Jayne Hrdlicka said in the statement.

And Virgin is banking on Qatar Airways’ strength: "It means that we've got an important shareholder who has a scale that we don't have, who has the expertise that we don't have, that can help us compete better domestically by giving us access to that scale," Hrdlicka added in an interview with ABC television yesterday.

There’s more to come: The minority stake purchase makes Qatar Airways a cornerstone investor in Virgin Australia ahead of an upcoming IPO, the statement notes. Bain Capital said last year it would explore an IPO of Virgin Australia, targeting an AUD 1 bn listing, but plans were pushed to 2024 after assessing market conditions. Bain bought Virgin Australia for USD 2.42 bn back in 2020 after it was placed in voluntary administration.

Qatar Airways has been on an expansion spree: Qatar Airways is set to close a 49% acquisition of RwandAir. The carrier also launched its first cargo hub at Kigali International Airport (KGL) in Rwanda in partnership with RwandAir. Qatar Airways is also looking to invest in a southern African airline as part of expansion plans.

Azizi invests AED 1 bn in 12 building materials factories in Kezad

UAE private developer Azizi Developments will invest AED 1 bn in developing 12 building material factories in Abu Dhabi’s Khalifa Economic Zones’s (Kezad) A cluster, according to a press release. The company signed a 50-year land lease agreement with AD Ports Group.

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

What we know: Covering an area of 220k sqm, the planned facilities include a reinforcement steel cut and bend facility, timber joinery, duct fabrication workshops, aluminum and glass fabrication unit, and an aluminum extrusion factory.

The rationale: Azizi’s move into the manufacture of building materials aims to respond to the demand in commercial real estate, which has seen a steady rise as a result of rapid population growth and the influx of international investors into the UAE to expand their operations.

Kezad has been doubling down on long leases: NMDC Energy inked a 50-year lease agreement in June to set up a new manufacturing facility in the zone back in September. UAE-based Apex Engineering Industries also signed a 50-year land lease agreement back in August to set up a AED 90 mn R&D and manufacturing plant in Kezad’s Area A in Al Ma'mourah. Dubai Cables Group subsidiary Ducab Metal Business (DMB) inked a 50-year lease agreement back in May with Kezad to expand its facilities in the industrial hub adding an additional 51 sqm to its existing 50k facility.

Egypt is reportedly getting a new USD 153 mn grain storage complex

A boost for Egypt’s grain storage: Egypt’s Suez Canal Economic Zone (SCZone) and the Egyptian Holding Company for Silos and Storage are reportedly developing a grain complex for the handling, processing, and storage of grains, with initial investments of USD 153 mn earmarked for the first and second phases, Al Mal reports, citing sources it says have knowledge of the matter. Construction is slated for completion within two and a half years once a local or strategic foreign investor is secured.

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

The breakdown: The first phase will cost USD 75 mn, while the second will come at a price tag of USD 78 mn, according to the Egyptian Holding Company’s preliminary plan.

The facility will store up to 6 mn tons of grain annually: The SCZone allocated 1 mn square meters for the new grain complex, with 385k sqm in a port area, which will house 20 silos capable of storing 4 to 6 mn tons of grain annually. A 650k sqm logistics zone will also process 648k tons of wheat flour and 252k tons of bran annually.

Tapping into Egypt’s export potential: The new complex will primarily target East Africa and the Gulf — 55 mn tons of grain pass through the Suez Canal annually.

Menzies Aviation to open cargo facility at Western Sydney International Airport

Menzies Aviation expands Australian services: Kuwait-based Agility’s ground handling subsidiary Menzies Aviation is set to launch new cargo facilities at Western Sydney International Airport (WSI) by late 2026, according to a statement. Under a long-term lease, Menzies is slated to operate a 22.5k sqm facility for the next two decades in WSI’s Cargo Precinct.

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

What we know: The facility will handle pharma and cool chain products, as well as e-commerce and heavy cargo shipments, which will be processed at a 12.5k sqm warehouse. The site is forecasted to handle some 150k tonnes of cargo annually, equipped with an elevating transfer vehicle (ETV) system able to handle over 150 main deck ULDs. The facility will leverage its airside access, with multiple adjoining freighter bays and compatibility with autonomous vehicle solutions.

A boost for Sydney: The move is forecasted to grow Sydney’s air cargo capacity by some 33%, by allowing for more flexibility and boosting the airport’s peak-time capabilities for managing supply chains.

September was a big month for Menzies: The firm renewed a five-year contract last month with Hong Kong cargo carrier Cathay Cargo to provide cargo and freighter ramp services — managing 85k tonnes annually — in Australia and New Zealand. Menzies also renewed a contract last month to oversee budget-airline Ryanair’s ground handling services at 10 European locations until October 2029. The firm just inaugurated a new cargo facility at Maputo International Airport (MPM) in Mozambique in the same month.

Turning sights to the GCC: Menzies plans to make an “aggressive” expansion in the GCC — including the UAE and KSA — over the next five years, Chairman Hassan El-Houry announced in August. “Saudi Arabia aims to triple its number of passengers to 250 mn by 2030. They plan to invest USD 100 bn in aviation infrastructure to achieve this. We want to be a part of that and will be,” said El-Houry.

Tunisia, Libya, and Algeria seek to improve trade

Tunisia, Libya, and Algeria have put forward a number of proposals at the sixth annual Tunisia-Libya-Algeria Investment Forum, including establishing sea, land, and air links, Atalayar reports. The proposals include opening the Mashhad Saleh border crossing between Tunisia and Libya, creating a maritime link between the city of Zaris in southeast Tunisia and the Libyan capital Tripoli, and establishing direct flights between Djerba Airport in Tunis and several destinations in Libya and Algeria.

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

ICYMI- Tunisia and Libya’s Ras Jedir border crossing was closed in March amid armed clashes, which has cost the two countries some USD 60 mn in trade losses.

OTHER DIPLOMACY NEWS-

Iran + Armenia ink barter trade agreement: Iran and Armenia have signed a barter trade agreement on the sidelines of the Eurasian Economic Forum in Yerevan, facilitating issuing guarantees for Iranian technical and engineering service contractors in Armenia. (Mehr News Agency)

Emirates appoints new commercial managers across MENA

Emirates has appointed new commercial managers in markets across the Middle East, according to a statement. Abdullah Adnan has been promoted to Manager Morocco, Catherine Wesley (LinkedIn) to Manager Algeria, Fahad Al Hassawi (LinkedIn) to District Manager Dahran and KSA Eastern Province, and Khalfan Al Salami (LinkedIn) to Manager Kuwait and Iraq. Emirates has also promoted Khalid Al Zarooni (LinkedIn) to company Vice President.

Updates in aviation and e-commerce from Egypt, Kuwait, KSA

STARTUP WATCH-

Kuwaiti e-commerce startup Bazaar Gate has secured USD 1 mn in funding from undisclosed investors, Wamda reports. The company will use the investment for regional expansion, refining its technology, and adding services to its Partners platform, which allows users and entrepreneurs to establish a fully functional e-commerce dropshipping business without the complications of starting an online store. Partners, which was launched in 2024, provides services including logistics, inventory, customer support, payment gateways, and instant profit tracking.

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

About Bazaar Gate: The company, founded in 2020 by Mohammad AlMutawa, is a one-stop-shop shipping e-commerce platform that includes a delivery system, a banking system, and a payment gateway, according to the statement.

E-COMMERCE-

AJEX + Widect partner up on e-commerce logistics: Saudi-based logistics solution provider AJEX has inked a strategic partnership with Turkish Airlines subsidiary logistics firm Widect to boost e-commerce logistics between Turkey and the Middle East, according to a statement. The partnership aims to expand shipping solutions on the Turkey to Middle East route and improve last-mile delivery services to accommodate the emerging e-commerce sectors across the MENA region.

AVIATION-

Egyptair + Liebherr ink three-year MRO agreement: Egyptair’s maintenance and engineering arm has inked a three-year service contract with Germany-based Liebherr-Aerospace for the maintenance of heat transfer equipment aboard its Airbus A320ceo fleet, according to a statement. Under the agreement, Liebherr will also provide heat transfer equipment maintenance for airlines with existing MRO contracts with Egyptair.

ZONES-

Sohar freezone to get USD 7 mn food re-export plant: Oman’s Sohar Port and Freezone has inked a land lease agreement with KSA-based Dan Foods Industries to develop a USD 7 mn food manufacturing plant in the zone, according to a statement. The facility, which will cover 15k sqm, will focus on repacking food goods from India, New Zealand, and Canada, and re-export to markets across the region. The plant will repackage bulk-imported food goods and produce meal ready-to-eat (MRE) solutions.

PORTS-

Aqaba Port development initiative extended until 2046: Jordan’s Aqaba Development Corporation, Aqaba Container Terminal Corporation, AP Moller Fiance, and APM Terminals have extended the Aqaba Port joint development agreement for an additional 15 years, effective until 2046, Petra reports. The project was first launched in 2006 between Jordan’s Aqaba Development Corporation and APM Terminals. Under the extension, the group intends to invest an additional USD 242 mn to reduce carbon emissions at the port, with the aim of reaching carbon neutrality by 2040.

OTHER STORIES WORTH KNOWING THIS MORNING-

Oman’s Al-Aflaj Road 39% complete: Oman’s Transport, Communication, and Information Technology Ministry has announced that the completion rate for the Al-Aflaj Road project has reached 39%. The 22 km-long road starts at the Al-Mudhaibi-Sinaw intersection and ends at Al Aflaj village. (Statement)

Boeing considers selling stock for USD 10 bn

Boeing considers stock sale: US planemaker Boeing is considering raising at least USD 10 bn by selling stocks in a bid to restore cash reserves depleted further by the ongoing strike at the company, Bloomberg reports, citing sources familiar with the matter. Raising equity likely won’t happen for at least a month as the firm wants a clearer assessment of the financial implications caused by the strike.

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

The money strain is real: Boeing is facing a liquidity crunch after burning through USD 8.25 bn during 1H 2024, and analysts expect it to suffer a USD 3.36 bn cash outflow in 3Q 2024. The strike will likely cost the company some USD 1.5 bn for each month that workers are off the job. Boeing says it is willing to “take any necessary actions” to preserve its investment grade rating and fix a balance sheet burdened by its USD 58 bn debt load. “We are perfectly comfortable to supplement our liquidity position to support those two objectives,” Bloomberg quoted CFO Brian West as saying.

IN OTHER BOEING NEWS- Boeing finds itself in more hot water: The US National Transport Safety Board (NTSB) has said that over 40 foreign parties operating Boeing 737 airplanes may be using planes with rudder components which could pose safety risks, Reuters reports, citing a statement. The authority has found that some 271 impacted parts may be installed on aircrafts in service, but did not clarify which carriers may be using these parts. Boeing has declined to comment, but it said last week that it had informed affected 737 operators of a “potential condition with the rudder rollout guidance actuator.”

Background: The investigation was provoked by an incident on a United Airlines flight, when the plane's rudder pedals was stuck in neutral position during a landing at Newark Airport earlier this year. The authority has since found that two foreign operators suffered similar incidents in 2019, raising concern of a much wider issue.

Calendar

SEPTEMBER

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, 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.

13-15 November (Wednesday-Friday): ITC North-South - New Horizons, Astrakhan, Russia

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily