Good morning, friends. We apologize for the delay in today’s issue due to unforeseen technical circumstances. It’s a big day for ports with a couple of key updates from the region and beyond. We also have a detailed breakdown of what’s happened so far in Agility’s lined up debut on the ADX.

WATCH THIS SPACE-

#1- Bahrain is in the search for investors to fund a vital pipeline that transports crude from Saudi, Bloomberg reports, citing sources it says are familiar with the matter. The pipeline, which connects Saudi oil processing facilities at Abqaiq with Bahrain’s Bapco refiner, has the capacity to transport up to 350k barrels of oil per day. The sources said the Bahraini government could raise a few hundred mn USD from the sale to investors.

#2- The design plan for the USD 35 bn newpassengerterminal at Al Maktoum International Airport includes a “massive leap” in aviation technology, including AI and electric aircraft to cut down on travel time, plus investments in solar power, waste treatment, and biofuels, Dubai Airports CEO Paul Griffiths told The National on Monday. Investment in advanced technology solutions come as air travel demand puts “extraordinary pressure” on existing infrastructure and airline resources, with the number of air travelers set to double to 8 bn annually by 2040.

REFRESHER- The expanded airport is set to be the world’s largest, hosting over 260 mn passengers, handling 12 mn tons of annual cargo, accommodating around 400 aircraft gates, and featuring five parallel runways. It will be five times larger than Dubai International Airport (DXB), with plans to transfer all operations from DXB within 10 years.

#3- The G7’s Russia oil price cap has shown little success since its introduction nearly two years ago, Reuters reports, citing a P&I Club statement submitted to a UK parliamentary hearing this week. The price cap has pushed more vessels to join the so-called shadow fleet, said the group of 12 marine third-party liability ins.ers which covers 87% of global sea tonnage. “The oil price cap appears increasingly unenforceable as more ships and associated services move into this parallel trade. We estimate around 800 tankers have already left the International Group Clubs as a direct result of the introduction of the oil price cap,” the newswire cites the group as saying.

Russian state-owned tanker fleet operator Sovcomflot has renamed at least four tankers listed under US sanctions in defiance, Bloomberg reports. The vessels have also re-flagged from Gabon to Russia. Sovcomflot was hit with US sanctions in February on the grounds it violated the G7-mandated price cap and other “deceptive activity.” Tankers routinely change their names after being sanctioned in order to separate themselves from listings on databases, but the ships remain identifiable by numbers registered with the International Maritime Organization, Bloomberg added. Sovcomflot’s giant tanker fleet — capable of hauling about 700k barrels of oil — has helped keep Russia’s oil moving despite sanctions, according to data from Clarkson Research Services.

ON A RELATED NOTE:Turkey’s exports to Russia fell by a third y-o-y to USD 2.1 bn in 1Q 2024, The Financial Times reports. The sharp drop comes on the back of US pressure, with Biden issuing an executive order in December allowing the Treasury Department to hit Turkish banks with secondary sanctions if they mediate trade supporting Russia’s war in Ukraine, the FT said. The US and EU have lobbied Ankara to curb its trade with Moscow, which saw a steep rise after Russia invaded Ukraine in 2022. Turkey’s exports to Russia saw some recovery in March, despite still being lower y-o-y, indicating that Turkish banks have found ways to reroute payments and remain compliant with sanctions, the FT added.

DISRUPTION WATCH-

Houthis carried out more attacks on commercial vessels and two US destroyers in the Red Sea yesterday, Reuters reports.The group targeted Portugal-flagged MSC Orion, a container ship sailing between Portugal’s Sines and Oman’s Salalah, on the basis of being operated by Israeli-backed Zodiac Maritime, the newswire reports, citing LSEG data. The Houthis also targeted a commercial vessel dubbed Cyclades and two US destroyers, a Houthi spokesman said yesterday. This comes on the heels of an attack earlier this week on a Malta-flagged container ship enroute from Djibouti to Jeddah.

Iran’s Revolutionary Guards naval force is warning that it will retaliate by seizing tankers if more Iranian oil tankers are seized as part of efforts to enforce US sanctions,Iran International reports, citing statements by the commander of Iran’s Revolutionary Guards naval force Alireza Tangsiri. Iran hijacked a tanker in January, a year after the US seized the same tanker — dubbed Suez Rajan at the time — in a bid to enforce sanctions.

Iran’s naval forces will also be escorting their country’s ships in the Gulf of Aden and Atlantic ocean, Tasnim reports, citing statements by Iran’s Navy Commander Rear Admiral Shahram Irani.

MARKET WATCH-

#1- Oil prices fell for the third day in a row this morning on the back of US crude production ramping up and renewed hope for a ceasefire agreement pending in Gaza, Reuters reports. Brent crude futures for July were down 0.5% to USD 85.86 a barrel while U.S. West Texas Intermediate (WTI) futures for June fell 0.6% to USD 81.40 a barrel, the newswire said. US crude production in February rose to 13.5 mn barrels per day (bpd), up from 12.58 mn bpd in January and marking the largest increase seen since October 2021, the newswire added, citing the Energy Information Administration.

#2- Baltic index dips, yanked by weaker rates across all vessel segments: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2.2% to 1,684 points on Monday, marking its sixth consecutive fall, Reuters reports. The larger capesize tumbled 4.2% to 2,080 points, its lowest since 2 February, while panamax fell 1.1% to 1,858 points. The smaller supramax segment also shed 3 points to 1,492 points, ending a 14-session winning spree.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks.It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

CIRCLE YOUR CALENDAR-

UAE will host the ReverseMi Logistics Network from Sunday, 5 May to Tuesday, 7 May in Abu Dhabi. The networking event brings together freight forwarders and logistics companies engaged in reverse logistics by providing clients with means to return goods for recycling, refurbishment, or other types of reuse as a means to promote a circular economy.

Saudi Arabia will host the Saudi Smart Logistics exhibition and summit from Monday, 6 May to Thursday, 9 May in Riyadh. The trade fair brings together local and international suppliers, public officials, professionals, and logistics players, and provides a platform for networking, exchanging know-how, and showcasing new technologies, products, and services.

The UAE will host 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.

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