Good morning, ladies and gents. It’s a very busy morning in our neck of the woods with plenty of developments to dive into across the regional logistics sector, including a new cargo terminal in KSA.

PSA-

Tunisia and Libya have closed the key Ras Jedir border crossing amid armed clashes, Reuters reported last week, citing Tunisian state TV and Libyan officials. The crossing was attacked by “outlaws,” and security forces were dispatched to the site to combat smuggling and to restore security, Libya’s interior ministry said on Tuesday. The Ras Jedir border crossing sees trucks carrying goods moving in both directions, and serves as a transit point for Libyans traveling to Tunisia for medical treatment, the newswire said.

WATCH THIS SPACE-

#1- Abu Dhabi-based real estate developer Aldar Properties is planning another USD 500 mn green sukuk issuance this year and intends to grow its logistics assets, CFO Faisal Falaknaz tells The National. The Islamic bonds will be issued under Aldar’s green framework following a successful USD 500 mn maiden green sukuk issuance last year. Aldar plans to double down on acquisitions, with AED 4-5 bn of equity earmarked to be “deployed into recurring income assets… Logistics is a very important segment that we are very keen on continuing to grow,” according to Falaknaz.

#2- Efforts to resume flows across the Iraq-Turkey oil pipeline have stalled, as financial and legal obstacles continue to hinder resumption one year after operations were halted, Reuters reports, citing sources with knowledge of the matter. The pipeline was at one point responsible for providing about 0.5% of global oil supply, with some 450k barrels per day (bpd) flowing from Iraq to Turkey, the newswire said. Presently, the pipeline’s restart is not being discussed, a source said. Aside from legal and financial hurdles, Iraq’s decision to cap oil exports as part of wider OPEC+ production cuts means that exports through the country’s northern pipeline are no longer a priority, two sources told the newswire. US attempts to broker an agreement between stakeholders in a bid to resume flows and reduce global oil prices have also failed, Iraq expert at the Washington Institute think-tank Michael Knights said.

REMEMBER- Turkey halted imports from Iraq’s semi-autonomous Kurdistan Regional Government (KRG) after a 25 March landmarkdecision by the International Chamber of Commerce deemed the transfers illegal and ordered Turkey to shell out USD 1.5 bn in compensations to Baghdad.

IN OTHER IRAQI NEWS- Iraq has set out a plan to resume Iraqi Airways’ flights to Europe and to restore grounded aircraft to service, according to a statement citing Iraqi Transport Minister Razzaq Muhibis Al Saadawi. Iraqi Airways Company (IAC) has initiated a three-phase agreement with IATA to resolve safety issues cited by the European Union Aviation Safety Agency (EASA), in a bid to boost safety standards, Al Saadawi said. The company has also leased an aircraft with a foreign crew to operate regular routes to Europe in the interim, while working with another firm to bring Iraqi Airways aircraft and crew up to standards that permit operations in Europe, he explained. Meanwhile, IAC has restored seven aircraft to service, with plans to restore an additional ten to service before year’s end, while contracting with global maintenance firms to refit 20 aircraft engines, the official also said.

Iraq is also looking to construct a new airport at Diwaniyah, INA reported last week, citing a decision from a meeting of the Supreme Committee for Reconstruction and Investment, chaired by Prime Minister Mohamed Shiaa Al Sudani. No timeline or investment ticket for the project were disclosed.

#3- Egypt’s Suez Canal Economic Zone (SCZone) inked 127 contracts with investments worth USD 2.8 bn in the nine months between July 2023 and March 2024, according to a statement. Of the total contracts signed, 61 have received final approvals, with a 49% share of foreign investments. Another 61 contracts have also received initial approval, with a 39% share of foreign investments. SCZone has signed 37 new contracts since the year’s start, worth some USD 894 mn in investments, the statement also said.

#4- An upgraded Red Sea service by CMA CGM will kick off in April: French shipping giant CMA CGM is partnering with KSA-based feeder and short-sea shipping operator Folk Maritime to launch an upgraded Red Sea service connecting ports in the Red Sea, with voyages beginning in April, according to a statement released on Thursday. The weekly service, dubbed North Sea Red Express (NRX), will operate two cargo vessels to connect the Saudi Arabian ports of Jeddah, NEOM, and Yanbu with Egypt’s Sokhna and Jordan’s Aqaba ports. The new route’s maiden voyage will set off from Jeddah on 9 April, the statement said.

REMEMBER- We caught wind of NRX late last month, with reports at the time indicating that the route will be operated using two 2.5k TEU feeders with an additional 700k TEU vessel connecting the route with Sudan every two weeks.

#5- The UAE could become one of Africa’s biggest FDI sources over the next five years, with investments focused on renewable energy, logistics, and agriculture, Bloomberg reported on Thursday. The country made USD 44.5 bn in investment pledges across Africa last year, with key investments in Sudan, Ethiopia, Zambia, and other countries, with a focus on infrastructure development and resource extraction. The growth of UAE’s FDI presence in Africa had jumped two years ago, last year it was still comfortably in the double-digits, but the next two-to-three years we’ll see a return to growth in the thirties and above,” Standard Bank Group CEO Rassem Zok tells the business information service.

#6- Saudia will bid King Khalid Airport farewell: National flag carrier Saudia will move out of King Khalid International Airport in Riyadh “in a synchronized manner” to leave room for the emergence of new PIF-owned airliner Riyadh Air, Saudi General Authority of Civil Aviation (GACA) VP of Strategy Mohammed Alkhuraisi told Bloomberg in an interview last week. “You don’t want two big carriers to operate out of the same hub,” he said, adding that the transition would be made gradually to ensure that air connectivity to Riyadh is not affected.

We’ve been hearing a lot on Saudia as of late:The Public Investment Fund is reportedly in early talks to acquire Saudia as soon as next year to add to its aviation assets portfolio. Plans see the flagship carrier privatized or merged with Riyadh Air, a second PIF-owned flag carrier.

MARKET WATCH-

#1- Baltic index sees weekly drop, yanked lower by falling capesize and panamax rates: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2% to 2,196 points on Friday. The measure was also down 7.8% for the week, breaking six weeks of consecutive gains, on the back of flagging demand for capesize and panamax vessel segments, Reuters reported on Saturday. The larger capesize subindex dropped 3% at 3,482 points, and was down 14.3% for the week. While panamax dipped 1.8% at 2,165 points, down 3% for the week, and the smaller supramax segment shed 4 points at 1,383 points, gaining for its seventh straight week, the newswire said.

#2- Oil prices dipped on Friday, and were stable w-o-w, as renewed hopes for a Gaza ceasefire weighed down crude benchmarks, while continued war in Europe and a falling US rig count buoyed prices. Reuters reported on Friday. Brent crude oil futures for May fell USD 0.35 to USD 85.43 a barrel, while US crude dropped USD 0.44 to USD 80.63 a barrel, the newswire said. The market is closely monitoring developments in Gaza, where a ceasefire may push the Houthis to allow tankers to resume transits via the Red Sea, partner with Again Capital John Kilduff told Reuters.

#3- Drewry’s World Container Index (WCI) fell 5% to USD 3,010 per 40 foot container for the week ending Thursday, but was up 71% when compared to the same period last year, maritime research and consultancy firm Drewry reported on Thursday. The latest WCI index is also 112% greater than the average 2019 pre-pandemic rate of USD 1,420 and USD 752 above the 10 year average rate of USD 2,699.

#4- UAE’s Fujairah Port oil product stockpiles rose 10% to 20.05 mn barrels for the week ending 18 March, marking an eight-months high, as regional demand typically slows during Ramadan, S&P Global reported last week, citing Fujairah Oil Industry Zone and historical figures. Fujairah’s stockpiles grew 16% since the end of last year, with the week seeing stocks of heavy distillates, which include grades used as shipping fuel, surging 11% to 10.64 mn barrels, a three-months high, while light distillates increased 6.3% to 7.53 mn barrels, and middle distillates grew 25% to 1.88 mn barrels, their highest in four weeks, S&P Global said.

DATA POINTS-

#1- The General Air Navigation Company, under Iraq’s Transport Ministry, saw its revenues surge 26% y-o-y to IQD 75.5 bn in 2023, according to a statement.

#2- Iran’s road freight volumes reached 14.75 mn tons for the year ending 19 March 2024, up 58% y-o-y, Tasnim reported on Saturday, citing statements by Iran’s Roads and Urban Developments Minister Mehrdad Bazrpash. The growth in volumes is attributed to improvements to software and infrastructure, as well as successful diplomatic drives, Tasnim said, citing IRNA.

CIRCLE YOUR CALENDAR-

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Iran will host the second Iran-Africa International Summitfrom Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

Saudi Arabia will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host the 23rd edition of the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s “Sustainability and Innovation,” theme.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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