Sohar Freezone inks land agreement for USD 565 mn solar cell production facility

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TODAY: Oman’s Sohar to get solar plant + Du advances UAE data center project

Good morning, folks. The newscycle has almost ground to a halt as we head into April’s end, but we still have a few updates to share on freezone and data center projects from UAE and Oman. But first, the latest de-escalatory tariff move from the US…

THE BIG LOGISTICS STORY- Trump softens auto tariffs: US President Donald Trump announced a set of measures easing the tariff burden on the automotive industry. The measures would keep a 25% levy on imported auto parts but are set to exempt the industry from other non-sector tariffs, such as the 25% levies imposed on aluminum and steel, as well as a similar levy imposed on goods imported from Canada and Mexico.

There’s more: The measures include a duty-free quota of about USD 1.9k for each USD 50k vehicle the automakers build in the US. The industry is also set to be compensated for tariffs already paid, up to an amount equal to 3.75% of the value of a US-made car for one year. The second year would see the reimbursement fall to 2.5% of the car’s value before it’s phased out altogether.

WATCH THIS SPACE-

#1- Burkina Faso, Mali, and Niger endorsed Morocco’s Atlantic Ocean access initiative seeking to give the landlocked Sahel nations access to Atlantic ports, Morocco’s public news agency MAP reported. The initiative — announced in 2023 — aims to provide landlocked Sahel nations with access to Morocco’s ports passing through Morocco’s rail infrastructure.

Geopolitical context: The endorsement is a timely reaffirmation of commitment to the initiative after the three nations exited the Economic Community of West African States (ECOWAS) last in the wake of the regional intergovernmental organization's move to put trade restrictions on the group in response to military takeovers.

Lining up infrastructure for the initiative: Morocco’s Dakhla Port — set to kick off operations in 2030 — aims to serve as a gateway to the Atlantic for African Sahel countries. The port has 800k hectares of land allocated to sustainable energy projects, intending to capitalize on exports to Europe. Officials from Morocco, Burkina Faso, Chad, Mali, and Niger met to discuss the initiative for countries in the Sahel region in 2023.

ALSO- The US is interested in backing the Moroccan-led African-Atlantic Gas Pipeline project, Nigerian news outlet Voice of Naija reported, citing a statement by Nigerian Finance Minister Wale Edun. “Key areas of interest include U.S. interest in investments in Nigeria’s natural gas sector particularly the Nigeria-Morocco Gas Pipeline given the country’s vast gas reserves,” Voice of Naija reports, quoting Edun. Formerly known as the Nigeria-Morocco Gas Pipeline project, the African-Atlantic Gas Pipeline — reported to be 5.6k km in length — will transport up to 30 bn cbm annually, with an investment ticket of around USD 25 bn.

REMEMBER- Morocco announced last week that a call for expressions of Interest (EOI) for the pipeline will be rolled out soon as part of an infrastructure push aiming at turning the Kingdom into a regional energy hub. The African-Atlantic pipeline’s first phase — connecting Senegal, Mauritania, and Morocco — is also advancing, with feasibility and design studies concluded and environmental and social impact assessments currently underway.

#2- Boeing delays hold up flydubai expansions: Boeing’s delivery delays to UAE budget-carrier flydubai are hindering the carrier’s expansion into long-haul routes, flydubai CEO Ghaith Al Ghait told AGBI. The delays are part of a USD 11 bn agreement that includes the airline’s first wide-body aircraft, with first deliveries — previously slated for 2026 — now being expected in August 2027.

ICYMI: flydubai inked a services agreement with Boeing in February to boost its fleet operations. Boeing was set to make its tailored parts package available to maintain flydubai’s fleet, as well as provide quick engine change (QEC) kits for the airline’s 737 Max fleet to cut down on costs and reduce schedule impacts.

#3- We have another sanctions round on Iran: The US has imposed sanctions on three vessels and their owners that have reportedly delivered refined petroleum products to the Houthis-controlled port of Ras Isa in Yemen, according to a US Treasury Department statement. The sanctions cover the San Marino-flagged vessel Tulip BZ and two Panama-flagged vessels — Maisan and White Whale. The sanctions — the latest in a string of sanction rounds against Iran’s oil trade operation — come amid US-Iran talks exploring a possible agreement on Iran’s nuclear program.

MARKET WATCH-

#1- Oil prices dropped again this morning amid continued concerns over the global growth outlook, Reuters reports. Brent crude futures decreased by USD 0.72 to USD 63.53 a barrel, while the US West Texas Intermediate (WTI) went down by USD 0.70 to reach USD 59.71 a barrel by 04.04 GMT.

Meanwhile, Adnoc is slated to swap its India-bound liquefied petroleum gas (LPG) with discounted US cargoes as of June, industry sources told Reuters. The move will enable Adnoc to ship more of its own LPG to China as purchasers become willing to pay high premiums to replace their previous US supply. Adnoc will supply some US LPG cargoes through its trading units to India under annual contracts from June to July, although one source noted it would be “difficult to replace the entire volumes.”

Background: Indian refiners requested that their Middle East suppliers make this swap last week, asking for the US LPG to be delivered at discounts to the Middle East benchmark Saudi Contract Price. India — the wosecond-largestargest importer after China — sources over 80% of its LPG imports from the Middle East under annual contracts, including UAE, Saudi Arabia, Qatar, and Kuwait.

Adnoc’s been quick to absorb Chinese buyers: China National Offshore Oil Corporation (CNOOC) inked a five-year supply contract agreement with Adnoc for LNG imports last week, marking the third supply contract Adnoc signed with Chinese buyers over that weekend alone. The firm also inked contracts with China’s ENN LNG and Zhenhua Oil.

#3- Baltic index takes a dip: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 0.4% to 1,398 points on Tuesday. The capeseize shed two points to 1,978 points, while the panamax index fell six points to 1,389 points. The smaller supramax index eased eight points to 967.

DATA POINT-

Bahrain’s Khalifa bin Salman Port handled a total of 99.4k TEUs and 186k tons of general cargo in 1Q 2025, Mubasher reports, citing data from Bahrain Ports and Maritime Affairs. The port also handled 36.3 mn metric tons of liquid cargo via the private docks, while the volume of solid cargo reached nearly 4.4 mn metric tons during the same period.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance, and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

Saudi Arabia will host the Saudi Warehousing & Logistics Expo from Tuesday, 27 May to Thursday, 29 May in Riyadh. The expo will host over 18k supply chain industry professionals and more than 400 exhibitors. It will also explore over 3.5k solutions.

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

Sohar inks land agreement for JA Solar’s USD 565 mn solar cell plant

Oman's Sohar Port and Freehavee has inked a land lease agreement with China-based JA Solar to establish a USD 565 mn solar production facility, according to a press release. The project — planned in the Freezone’s second phase — is slated to begin operations by 1Q 2026, with an annual production capacity of 6 GW of solar cells and 3 GW of solar modules.

What they said: "Our facility marks a significant advancement in the solar PV supply chain, integrating all key components from polysilicon to modules. The strategic location within SOHAR Freezone offers essential logistics and positions us in a rapidly growing renewable energy hub,” JA Solar General Manager Fan Jingchao said.

More solar for Sohar: The Omani freezone is also getting another major solar production facility, with an under-development USD 1.6 bn polysilicon plant by United Solar Group. The plant — planned to have an annual capacity of 100k tons — is backed by the International Finance Corporation and the Riyadh-based international investment platform Ewpartners.

Not JA Solar’s first in the region: The Chinese manufacturer partnered with UAE’s Global South Utilities last year to establish two factories in Egypt to produce solar cells and panels. This was reported to include a USD 138 solar cell plant and a USD 75 mn solar panel plant—both of which are set to have a production capacity of 2 GW.

Du advances data center project with AED 170 mn land lease

Du leases a Dubai land plot to develop new data center: Emirati state-owned telecoms firm Du inked an AED 170 mn land lease agreement with Dubai Holding Assets Management to use the plot in developing a greenfield data center, according to a DFM disclosure (pdf). The long-term agreement will last for 25 years with two optional renewal periods of 10 years. The plot extends for 18.6k sqm in the Dubai Design District.

REMEMBER- Du recently announced plans to build an AED 2 bn hyperscale data center in the UAE for Microsoft, which will be its main tenant. The center’s capacity is planned to be delivered in phases.

Current stocktake: The telecoms firm currently operates five data centers across the country, whose data center market capacity boasts an estimated capacity of about 500 MW, according to Mordor Intelligence data.

The state of green trucking today and its prospects

E-truck demand to rise: The global demand for electric trucking seems poised for significant growth as the demand for plug-in hybrid, battery, and fuel cell electric trucks is forecast to rise to 70% of global sales in 2030 — up from 13% in 2022, according to the Road Transport report by the International Energy Agency (IEA). Global electric truck sales saw a 35% y-o-y increase in 2023, reaching around 54k units, according to a report by IEA.

The West is falling behind: A streak of US and EU-based hydrogen and electric trucking startups have permanently plugged out in the past six months, with modest demand, steep hydrogen and battery costs, and lackluster infrastructure as the likely culprits.

Meanwhile, China’s in the driver’s seat: China's zero-emissions truck market saw unprecedented growth in 2024, with nearly 80k units sold, Bloomberg reported earlier this year. The total — composed of heavy-duty battery-electric trucks and almost 4k hydrogen fuel cell units — more than doubled the deliveries from 2023 and represented over a 25-fold increase compared to output in 2021.

Why is this the case? China's unrivaled growth in all types of electric commercial vehicles is fueled by government policy supporting its supply chains, resulting in EV batteries that cost just USD 90 per kWh, dramatically cheaper than the average of USD 190 per kWh incurred elsewhere in the world, a BloombergNEF survey found. This cost advantage is a key factor in China's rapid expansion in this sector, with lower-cost batteries raising the sector’s ability to compete economically with diesel-run trucks. The rising number of trucks using swappable batteries is also helping to maintain lower operating costs and slash the time needed for re-charging.

BYD plays a central role: China’s leading EV maker BYD is building an independent position by securing a long-term supply of lithium—a crucial battery material—through ownership stakes in mines across six countries on three continents, the Financial Times reported last year. The company owns a subsidiary responsible for establishing EV production facilities, designing its EV software, as well as producing its own computer chips — allowing for tailored innovation and freedom from external chip manufacturers.

UAE AND KSA ARE LEADING THE REGION-

UAE and KSA ports emerge as e-trucking hotspot: Saudi Arabia’s King Abdulaziz Port in Dammam obtained 80 electric trucks from Chinese heavy equipment maker Sany late last year as part of some SAR 7 bn investment made by the Saudi Ports Authority (Mawani) and Saudi Global Ports (SGP). DP World also inked an agreement to deploy 100 electric trucks at Jebel Ali Port, with deployment expected at the time to begin by late 2024, aiming to support 1.6k container movements per day.

UAE’s been ramping up production ventures…: Singapore-based EV maker SingAuto received preliminary approval last year to establish an EV manufacturing hub in Abu Dhabi to produce electric refrigeration trucks in a project backed by an investment of USD 45 mn from an undisclosed UAE investor. Another EV assembly plant with 5k production capacity — including 3k electric trucks — was announced in 2022 in a joint venture between US’ Admiral Mobility, UAE-based car rental company Avis, and China’s Geely Fairzon New Energy Commercial Vehicle Group.

… and long-haul EV infrastructure: The UAE Ministry of Energy and Infrastructure inked an MoU in 2023 with Swedish electric and self-driving trucking startup Einride to deploy a 550 km freight mobility grid—dubbed Falcon Rise. The agreement was said to be aiming for a fast-tracked deployment of 2k EVs, 200 self-driving vehicles, and eight charging stations across the grid connecting Abu Dhabi, Dubai, and Sharjah—the first project of its kind in the region, Einride said at the time. The company signed an agreement with Abu Dhabi’s Integrated Transport Center (ITC) last year to establish a network deploying 1k all-electric heavy-duty trucks and 100 self-driving vehicles.

Updates on warehousing, regulations, aviation, and shipping from across the region

STORAGE + WAREHOUSES-

Logitech lands at Maersk’s Jafza facility: Swiss electronics manufacturer Logitech has launched a new distribution center at a Maersk warehousing and distribution facility in Dubai’s Jebel Ali Freetrade Zone (Jafza), according to a statement. Logitech hopes the project will help it reduce its shipping time by 30 days and expand market access for its full product portfolio — from gaming accessories to video conferencing solutions — while optimizing its supply chain operations across Africa, the Middle East, Turkey, and Central Asia.

REGULATION WATCH-

#1- NAT non-operating assets could be up for grabs: Egypt’s House of Representatives gave final approval to amendments to the law regulating the National Authority for Tunnels (NAT) that remove the “public utility” designation from the authority’s non-operating assets. The change will allow NAT — or any of its affiliated companies — to exploit these assets for investment purposes, including through potential partnerships or sales to private-sector players, as part of a broader effort to boost the authority’s revenue streams. The amendment only applies to assets not currently in operational use.

#2- Egypt’s cabinet also greenlit the formation of a committee to implement a risk management system for customs clearance, an initiative that seeks to streamline imports, according to a cabinet statement. This committee will develop the framework for implementing the system, monitor its execution, and propose legislative changes. The system will be tied to the Egyptian customs platform Nafeza.

CARGO-

Saudia Cargo + Henan ink cargo partnership: Saudia Cargo and China’s Henan Aviation Group inked an MoU to ramp up services between Riyadh and Zhengzhou via the Air Silk Road, according to a statement. The agreement will “advance cooperation in flight simulation systems, aviation training [and] aircraft leasing,” Chairman Zhang Mingchao said. Under the MoU, the new routes are also set to support cross-border e-commerce and digital shipping operations. No further details regarding the number of new routes or timelines were disclosed.

AVIATION-

Emirates bolsters cooperation with the Philippines: Dubai-based Emirates Airlines and Philippine Airlines agreed to expand their cargo interline cooperation on the sidelines of Dubai’s Arabian Travel Market, according to a statement. The new partnership includes the exchange of expertise in ground handling, maintenance, and technical training. The pair also agreed to explore the potential for a reciprocal code-sharing agreement on flights operating between Dubai and the Philippines.

SHIPPING + MARITIME-

China to supply Algeria with new vessels for national shipping fleet: China Petroleum Technology and Development Corporation (CPTDC) has been awarded a contract to supply Madar Maritime Company — a subsidiary of Algeria’s state-owned Madar Holding — with two vessels, Algerian newspaper Echorouk El Yawmi reports. This came after the Algerian Public Assembly issued a notice of provisional award earlier this month for an acquisition of two new or old solid material carrier ships.

China launches rare direct route to Latin America

A rare direct link from China to Latin America linking the Asian giant’s busiest shipping hub Guangzhou Port to Peru’s Chancay Port launched yesterday, Reuters reports, citing a statement from China’s public broadcaster CCTV. Cosco’s Volga Vessel will be the first ship embarking on the voyage with about 400 containers of auto parts, refrigerators, home appliances, and other goods.

The rationale: The direct link is set to cut the cost of China-South America voyages by 20%, with each trip expected to take about 30 days. The route will also see Chancay port — which has recently undergone a USD 3.5 bn upgrade — act as a linking point for Chinese ships heading to other South American ports, such as Mexico's Manzanillo Port and Chile's San Antonio Port,

Calendar

APRIL

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

6-7 May (Tuesday-Wednesday): Capital Market Summit, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

15-18 May (Thursday-Sunday): Global Logistics Conference, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

28-30 (Wednesday-Friday): International Conference on Logistics and Supply Chain Management, Casablanca, Morocco.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

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

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

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

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

OCTOBER

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

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

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.

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

EVENTS WITH NO SET DATE

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 two of Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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