Société Génerale-led consortium backs Turkish tunnels project with USD 1.8 bn loan

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What we're tracking today

TODAY: Turkish tunnels project gets USD 1.8 bn backing + Sailun to set up 1 USD bn tires plant in Egypt’s Teda

Good morning, friends. We’re heading into the weekend with a brisk read, topped with debt and investment updates from Turkey, Egypt, and Saudi. Earnings also continued to trickle in, with AD Ports Group reporting a solid quarter across all segments. Shall we?

WATCH THIS SPACE-

#1- A joint venture (JV) between Saudi Aramco and freight giant DHL is reportedly shopping for investors to back a USD 267 mn distribution center project in the Kingdom, sources familiar with the matter told Ashraq Business. The pair has reportedly presented the project to several business families in the Gulf, as well as Canadian investment management firm Brookfield Asset Management.

The pitch: The pair is looking to offer possible investors a permanent ownership in the Dammam-based facility, which will be developed on a Built-to-Order (BTO) model where future tenants secure spots pre-construction.

Background: The JV, dubbed Advanced Supply Management Operations (Asmo), was initially set up in 2023 to develop new end-to-end procurement and logistics hubs in the Kingdom before expanding outside in the region. Asmo launched operations at its first warehouse in Riyadh back in January — its first project in a network planned across six locations in the Kingdom.

Warehousing, distribution, and fulfillment spaces in the Kingdom are expected to be in hot demand, as the country’s e-commerce and B2C markets continue their upward trend. In 1Q 2024, Saudi was ranked among the top 10 fastest-growing e-commerce markets, standing at 41.3k existing registrations, up 6% y-o-y.

#2- Iraq, Syria to restart joint pipelines? The Iraqi and Syrian governments are forming a committee to explore restarting an oil pipeline connecting Iraq to Syria’s Baniyas, the Iraq News Agency reports. Both parties are contemplating hiring an international consultant to assess the feasibility of its rehabilitation. Iraq is also looking to resume oil exports via a separate pipeline to Lebanon’s Tripoli, the news report says.

Iraq could use another outlet for oil: Baghdad is one of many Arab countries whose oil outflow relies heavily on the Strait of Hormuz, with around 83% of its crude exports passing through the strait. While Baghdad still possesses another pipeline that can transport oil — from Kirkuk to Ceyhan — via Turkey, the pipeline has a limited capacity of 500k bbl/d and has been offline since March 2023.

Other rerouting options: Iraq could secure its future flows against maritime disruptions by reviving some of its stalled pipeline projects. These include a Jordan pipeline connection — a USD 9 bn project long stalled due to political considerations — and a project to transfer Iraqi crude through Syria, either towards its Mediterranean ports or into Lebanon, as discussed by officials from both countries back in April.

#3- Egypt is planning to launch its new USD 1.6 bn Qena-Safaga high-speed rail line by 1H 2026, three government officials told Asharq Business. The project — the third of its type in a 1.8k km new high-speed electrified network planned across the country — will be implemented by a consortium comprising Siemens Mobility, Arab Contractors, Orascom Construction, and Sewedi Electric, under the supervision of the National Tunnel Authority, an official told the news outlet.

BACKGROUND- The new 175-km line will link Upper Egypt’s Qena to the Red Sea’s Hurghada and Safaga and boast a daily capacity of 200k passengers and 1.5k tons of cargo, according to the National Authority for Tunnels’ website. Siemens-led consortia are also leading two similar projects — one connecting Ain Sokhna and Marsa Matrouh, and another linking 6th of October and Aswan.

#4- Syria seeks more funds through investment forums: The Syria Recovery and Investment Forum will be held in Bahrain and Abu Dhabi this September to raise funds to rebuild Syria’s war-torn infrastructure, TradeArabia reports. Syria’s reconstruction is expected to cost anywhere between USD 250-400 bn, according to a 2019 assessment from the US-based think tank Carnegie Endowment. The events will court funders from several sectors, including ports, housing, and energy, following up on the event’s Dubai launch last month.

MARKET WATCH-

#1- Oil prices gained this morning amid concerns over speculations on possible sanctions on Russian oil trade despite the upcoming US-Russia talks tomorrow, Reuters reports. Brent crude futures went up USD 0.24 to reach USD 65.87 / bbl by 03.56 GMT, while US West Texas Intermediate (WTI) rose by USD 0.21 to trade at USD 62.85/ bbl.

Meanwhile, the International Energy Agency (IEA) expects global oil demand to grow by 700k bbl/d in 2026, according to the IEA’s August oil market report. The agency kept its 2025 demand forecast unchanged at 104.4 mn bbl/d, with growth of 680k bbl/d, despite weaker-than-expected consumption in China, India, Egypt, and Brazil in recent months.

REMEMBER- Opec is more bullish on demand next year: Opec raised its forecast for oil demand growth in 2026 to 1.4 mn bbl / d — 100k bbl / d higher than previously expected — on the back of strong economic activity in its monthly outlook earlier this week.

Global oil supply was flat in July at 105.6 mn bbl/d, as a 230k bbl/d fall in Opec+ output to 42.72 mn bbl/d was offset by gains from non-Opec+ producers. Higher Opec+ targets for September are set to lift global supply growth to 2.5 mn bbl/d this year and 1.9 mn bbl/d in 2026, with non-Opec+ accounting for half.

This means it’s on track for a surplus: “While oil market balances look ever more bloated as forecast supply far eclipses demand towards year-end and in 2026, additional sanctions on Russia and Iran may curb supplies from the world’s third and fifth largest producers,” the Paris-based agency said.

#2- Baltic index snaps losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 0.4% to 2,025 points on Wednesday. The capesize increased 0.6% to 3,280 points, while the panamax index dipped by 0.1% to 1,594 points. The smaller supramax index went up by 0.5% to 1,336 points.

DATA POINTS-

#1-Boeing sees drop in July deliveries: Aircraft manufacturing giant Boeing has seen its aircraft deliveries drop 20% m-o-m to 48 aircraft in July 2025, Reuters reports. The firm delivered 37 of its 737 MAX, over eight 787s, two 777 freighter jets and one 767. Still, the July deliveries figures represent a 12% rise from last year.

Boeing still behind Airbus: While Airbus’ deliveries also decreased by 13% y-o-y in July, Boeing’s European rival still delivered 19 more jets to record 67 new deliveries.

On a 1H basis, Boeing’s commercial carrier deliveries rose by 60% y-o-y to reach 280 in 1H 2025 — also still way below Airbus’ figures, which delivered 306 aircraft during the same period.

#2- Airports across the UAE over 2.2 mn tons of cargo in 1H 2025, up 4.7% y-o-y, with national carriers handling 67% of the total, Wam reports. Air traffic movements rose 6.2% y-o-y to 531k, with Riyadh, Jeddah, Kuwait, Mumbai, and Bahrain ranked as the busiest routes by weekly flights.

#3- Emirates SkyCargo has increased its cargo capacity to and from East and Southeast Asia to up to 21k tons per week, according to Dubai Media Office. This comes after the company expanded its network, now serving a total of 25 locations across 12 different countries within the region. The air cargo major now offers regular freight trips — about 44 per week — to nine hubs in the region, as well as an average of 13 weekly charter services to and from East Asia.

***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.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ***

CIRCLE YOUR CALENDAR-

The UAE will host the Africa Procurement and Supply Chain Leaders’ Conference on Monday, 25 August until Friday, 29 August in Dubai. The conference will host global industry leaders, policymakers and stakeholders to discuss how AI is changing procurement and supply chain efficiency, sustainability and risk management.

Oman will host Transport Middle East on Monday, 1 September until Wednesday, 3 September in Salalah. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

Saudi Arabia will host the Sustainable Maritime Industry Conference on Wednesday, 3 and Thursday, 4 September in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

Algeria will host the Intra-African Trade Fair on Thursday, 4 September until Wednesday, 10 September in Algiers. The fair will host over 75 countries and 2k exhibitors across several sectors to explore investment prospects and exchange information on trade between B2B and B2G.

Oman will host the Comex Global Technology Show on Sunday, 7 September and run till Wednesday, 10 September in Muscat. The event will host over 360 participants and 133 tech startups to show achievements in eGovernment, fintech, smart cities, health tech, agritech and cybersecurity.

Saudi Arabia will host the Smart Ports & Logistics Transformation Summit on Monday, 15 September and Tuesday, 16 September in Jeddah. The summit will host over 40 global and local speakers, industry experts and policymakers to explore smart port solutions, port operations and logistics within Saudi Arabia.

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

Turkey clinches USD 1.8 bn for rail + highway tunnels project

Turkey lines up financing for Amanos Tunnel project: Turkey has reportedly secured EUR 1.55 bn (USD 1.8 bn) in financing from a Société Génerale-led consortium for the Dörtyol-Hassa Highway and Railway project in the country Southeastern Anatolia region, Turkish outlet Anadolu Agency reports. Three tunnels, about 19 km long each, will be built under the project — one for a rail line and two for a highway.

The rationale: The tunnels are set to cut costs and freight shipping times by providing a shorter route passing through the Amanos mountains to connect Iskenderun Port on the Mediterranean to industrial areas around Gaziantep in the southeastern part of the country.

Who else is involved? Financial backers for the project include the Swedish Export Credit Corporation, the Islamic Corporation for the Ins. of Investment and Export Credit, and other undisclosed commercial banks, Daily Sabah reports.

Turkish rail projects have been getting a lot of interest from international backers, with the country securing EUR 2.4 bn (USD 2.8 bn) in green financing from a consortium led by Japan’s Mitsubishi UFJ Financial Group to build a rail link to Azerbaijan’s Nakhchivan exclave, Reuters reported last month. The consortium included Sweden’s EKN and Austria’s export credit agency Oesterreichische Kontrollbank.

Sailun Group to invest USD 1 bn in Sokhna tire plant

Chinese tiremaker Sailun Group will invest USD 1 bn to build an automotive tire plant in the China-Egypt Teda industrial zone within the Sokhna Industrial Zone, according to a statement. The 350k sqm facility will be developed in three phases over three years.

The first phase will begin production in 2026, with a capacity of 3 mn passenger car tires and 600k truck and bus tires annually. Once fully operational, the factory’s total output will exceed 10 mn tires a year, serving both local and export markets.

Sailun is no small fish in the world of tires, ranking as the largest listed tire company in China by revenue. Globally, Sailun ranks as the tenth largest tire company by brand value, according to Brand Finance’s 2025 rankings.

Sailun’s USD 1 bn factory isn’t the only local tire project in the works for Egypt — and it’s not even the most expensive. Organi Group acquired 50% of Rolling Plus Chemical Industries in March to revive its EUR 1 bn tire factory project in the SCZone in partnership with Concrete Plus. Another unnamed Chinese company is also reportedly looking to set up a USD 360 mn tire factory in the SCZone in partnership with the state-owned Arab Organization for Industrialization.

…and there’s more: The government’s attempt to revive and develop state-owned tire manufacturer Trenco also seems to be bearing fruit, with the government signing an agreement with unnamed European companies to develop Trenco’s Alexandria-based factory and another with a Chinese company to establish a new Trenco tire factory in Alexandria’s Amreya.

AD Ports Group reports a strong 2Q

AD PORTS GROUP-

UAE-based port operator AD Ports Group saw its top line jump 15% y-o-y to AED 4.8 bn in 2Q 2025, driven by robust performance across all its segments, according to an earnings release (pdf). The company’s income before tax gained 5% to reach AED 519 mn, while its net income after tax was almost unchanged, gaining just 1% y-o-y to AED 445 mn, largely due to higher income taxes.

2Q by the segment:

Maritime and shipping revenue soared 20% y-o-y to AED 2.4 bn in the last quarter, some 48% of the company’s total 2Q revenue. Despite Red Sea disruptions undermining the region’s contributions, the segment boosted its container feeder volumes by 34% y-o-y on the back of expanded fleets and volume growth in the Far East and Europe;
The company’s ports recorded a top line surge of 31% y-o-y to AED 736 mn, the segment’s largest annual increase. Container throughput increased by 17% y-o-y, while general cargo volumes leaped up 13% y-o-y;
Revenues from the economic cities and freezones sector increased 18% y-o-y to AED 555 mn, driven by a robust 51% growth in revenue from warehouse leases;
The logistics segment’s top line also rose 5% y-o-y AED 1.3 bn, with air freight and growing operations in the Netherlands, Spain, and the US driving the growth.

The company also reported a solid 1H overall, with its top line surging 17% y-o-y to AED 9.4 bn and its bottom line rising 8% y-o-y to AED 908 mn.

Steady despite tensions: AD Ports believes it is well-positioned to resist uncertainties in the container shipping industry — such as escalating geopolitical and trade tensions — thanks to its mitigation strategy and resilient demand and spot rates, the company said. That being said, AD Ports still expects geopolitical conflict in the Red Sea to continue into 2026, making the return to the maritime route doubtful.

PORT OF SALALAH-

Oman’s Port of Salalah saw its net income climb 58.0% y-o-y in 1H 2025 — based on our own calculations — to OMR 2.48 mn, according to an earnings release (pdf). The port’s revenues climbed 21.1% y-o-y, reaching OMR 42.4 mn in the same period. The port’s container terminal processed around 2 mn TEUs, a 21% y-o-y increase. Its general cargo terminal handled 12.9 mn metric tons, an increase of 11% y-o-y.

Shipping, roads, and trade updates from Saudi, UAE, Iraq, and Turkey

SHIPPING + MARITIME-

Dubai-based logistics firm Al Sharqi Shipping is expanding to Kenya and Uganda, with the support of the Dubai Chamber of Commerce’s Kenyan office, according to the Dubai Media Office. The firm will extend supply chain, freight forwarding, and cargo consolidation services, while expanding its offerings — from customs clearance to investing in local trucking infrastructure — across African markets.

ROADS-

The SAR 200 mn bridge connecting the Jazan Special Economic Zone to the Jazan City for Primary and Downstream Industries (JCPDI) Port is 55% complete, state news agency SPA reports. The 625 m bridge, developed by the Royal Commission for Jubail and Yanbu, aims at easing the movement of goods and supporting the growing economic activities in the region.

TRADE-

The Iraqi and Turkish governments are forming a joint customs committee to streamline bilateral trade flows, Iraq News Agency reports. Both parties are working to raise their trade volume to USD 30 bn, with plans to establish new customs ports and joint investments, the state-owned outlet says.

REMEMBER- Iraq’s Development Road Project seeks to establish Iraq as an intermodal transhipment hub, connecting it to Turkey via 1.2k km of road and rail. Regional players, including the UAE, Turkey, and Qatar, have all pledged to back the project.

Businesses continue to prioritize supply chains sustainability despite trade tensions, backlash – report finds

Has environmental security taken a back seat as trade tensions bubble over? Shifting political priorities and heightened trade tensions have raised concerns that climate action might be now on the backburner, but a recent Economist Impact’s survey have found that businesses are not retreating from their goals, with over 62% of respondents stating that supply chains sustainability remains least as important as it was a year ago

Geopolitical tensions — including security, trade wars, and protectionism — have escalated over the past five years, the Economist said in its latest Trade in Transition survey report (pdf), published in collaboration with the UAE’s DP World. On the other hand, sustainability efforts — defined as environmental impact, emission levels, climate change impact, and renewable energy — surged in 2018, peaking in 2022, before taking a steep drop in 2024.

Sustainability as a business priority: About 62% of surveyed firms stressed their commitment to sustainability, some driven by investor-mandated regulatory compliance (38%) and others by foresight of climate change’s impact on supply chains (25%).

On adapting and building climate resistance, 38% of firms said they increased tech investments to locate supply chain risks, while 34% chose to develop more efficient supply chain strategies with suppliers. Other tactics include diversifying suppliers to reduce exposure, embracing well-adapted production sites and transport routes, investing in locations less exposed to extreme weather conditions, and sourcing from markets with solid sustainability goals.

HD Hyundai to restart Philippines shipbuilding, invest USD 550 mn in grounded shipyard

South Korean shipbuilder HD Hyundai will take over a facility in the Philippines’ Subic Bay, as part of a 10-year lease contract, The Manila Times reports. HD Hyundai will reportedly invest USD 550 mn in the facility over 10 years, reviving the country’s halted shipbuilding industry.

About the project: The facility will span 200 hectares leased from Agila Subic — an abandoned shipyard bought by alternative investment outfit Cerberus in 2022, after its owner, Hanjin Heavy Industries, went bankrupt in 2019, The Manila Times reported separately. The facility will initially construct tankers of up to 250 meters in length over a build time of 16-18 months, before scaling up production capacity to 10 vessels per year, according to the outlet. Operations are set to begin in January 2026.

HD Hyundai’s eyeing a bigger global footprint: The Korean shipbuilder is reportedly considering bidding for the rights to operate the Casablanca shipyard, which would better suit its services to Europe and the Mediterranean. HD Hyundai also set in motion its plans to expand its Vietnam operations late last year, Lloyd’s List reported at the time.

Calendar

AUGUST

25-29 August (Monday-Friday): Africa Procurement & Supply Chain Leaders’ Conference, Dubai, UAE

31 August (Sunday): GCC Forum for Green Mobility, Salalah, Oman.

SEPTEMBER

1-2 September (Monday-Tuesday): Syria Recovery & Investment Forum, Manama, Bahrain

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

15 September (Monday): Logistics Leaders Saudi 2025, Riyadh, KSA

15-16 (Monday-Tuesday) September: Smart Ports & Logistics Transformation Summit, Jeddah, KSA

23 September (Tuesday): TradeWinds Shipowners Forum Greece 2025, Athens, Greece

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

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

25 September (Thursday): World Maritime Day.

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

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

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

6-8 October (Monday-Wednesday): Maritime Cyprus Conference 2025, Limassol, Cyprus.

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

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.

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

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

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

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit & 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.

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