Turkey breaks ground on 224-km railway link to Azerbaijan's Nakhchivan

1

What we're tracking today

TODAY: Turkey breaks ground on its Azerbaijan rail link + Latakia investments streamlined

Good morning, folks. We have a brisk read today as the summer slowdown continues, with rail and ports updates from Turkey and Syria leading the pack. But first, an update on the EU-US trade agreement…

THE BIG LOGISTICS STORY- US, EU finalizes trade pact details: The US and the EU have finalized their trade agreement after months-long negotiations, setting a 15% tariff rate on most of the EU’s products heading to the US. This applies to several sectoral products, including pharma, automotives, and semiconductors. Meanwhile, the EU is expected to move towards removing its current 10% duties on US industrial products, including on US-made cars.

There’s a catch… or two: European cars, which currently face 27.5% rates, will only see their tariffs reduced when and if the EU moves ahead with slashing its duties on “all US industrial goods.” European steel and aluminum will also still face the 50% duties targeting the imports of the essential industrial products.

HAPPENING TODAY-

The Africa Procurement and Supply Chain Leaders’ Conference will open its doors today and run through until Friday, 29 August in Dubai. The conference will bring together global industry leaders, policymakers, and stakeholders to explore AI innovation in procurement and supply chain efficiency, sustainability, and risk management.

WATCH THIS SPACE-

#1- US sanctions Iran-linked crude network: The Trump administration has issued sanctions on 13 entities and eight vessels operating in the UAE, China, Hong Kong, and the Marshall Islands, which it says are facilitating the trade of Iranian crude oil, according to statements here and here. One of the targeted firms is the UAE-based Ozarka Shipping, which manages and operates two Antigua and Barbuda-flagged vessels, Victory Ari and Sondos, as well as the Gambia-flagged Katsuya.

More troubles in Iran’s shipping world: A hacker group known as Lab-Dookhtegan claimed it disabled communications across Iran’s fleet, affecting 39 tankers and 25 cargo ships, it reportedly told the diaspora-run outlet Iran International. The group said it disrupted the operations of the National Iranian Tanker Company (NITC) and the Islamic Republic of Iran Shipping Lines (IRISL) — both state-linked entities heavily involved in shipping Iranian crude.

The hackers also claim to have infiltrated Fanava Group, an Iranian IT and telecoms holding company, the diaspora-run Iranian outlet reports. This allegedly allowed the group to halt Falcon, a program central to Iran’s fleet operation.

Not the first time: Lab-Dookhtegan alleged it targeted 116 NITC and IRISL vessels in a similar attack earlier this year, Iran International reported in March.

#2- Oman kickstarts OMR 12 mn road paving, linkage project: The Omani government is setting up internal road, paving, and linkage projects worth upwards of OMR 12 mn in Wilayat Al Mudhaibi of the North Al Sharqiyah Province, Times of Oman reports. The projects — spanning roughly 71 km — are part of an OMR 25.5 mn road infrastructure push in the province covering 145 km to improve connectivity and economic activities.

….and rolls out Sohar road development project: Oman’s Transport, Communication, and Information Technology Ministry (MTCIT) has launched a tender to design and implement the 9km-long Sohar Link Dualization project in North Al Batinah Governorate, set to take place over an 18-month period, according to a statement released last week. The project — which starts from the roundabout at Oasis Mall to the bridge linking to Al Batinah expressway — aims to reduce traffic congestion and improve road networks.

Not the only project in North Al Batinah: Oman awarded an OMR 221k consultation service contract back in June for the Shinas-Mahdah dual carriageway project in North Al Batinah and Al Buraimi governorates. Meanwhile, its OMR 40 mn Dibba fishing port project — connecting North Al Batinah and Musandam governorates — was reportedly 75% finished in June 2024.

#3- Turkey tightens the screws on Israeli-linked ships: Turkish port authorities have started — informally — demanding written pledges from shipping agents to ensure their vessels are not linked to Israel, Reuters reported on Thursday, citing unnamed industry sources. Ships that are Israeli-flagged, managed, owned, arriving from, or heading to Israel will not be allowed to dock at ports throughout Turkey.

That’s not all: The pledges must confirm that vessel owners, managers, and operators are not shipping cargo to Israel — including military equipment and hazardous shipments such as explosives and radioactive materials, the newswire said. Turkey-flagged ships are allegedly also banned from calling at Israeli ports, Bloomberg reported on Thursday.

REMEMBER- Turkey halted all trade with Israel in May 2024 — having reached USD 7 bn annually in 2023 — on the back of its refusal to allow Turkish aid airdrops into Gaza. However, trade between the two countries has not come to a total stop, Bloomberg said, citing local media — though Turkey has denied allegations that it used a loophole to s hip USD 394 mn worth of ca rgo to Israel through third countries.

#4- Boeing, China near 500-jet order: US planemaker Boeing is making headway on an agreement that could see it sell as many as 500 aircraft to China, Bloomberg reported on Thursday, citing unnamed sources. The parties have not yet finalized the agreement terms — pending a defusal of trade tensions with the US, sources told the outlet.

The sale will reportedly play a key role in Washington and Beijing’s long-term trade negotiations. Both sides agreed to renew their tariff truce for another 90 days last week, keeping US levies at 30% and China’s tariffs at 10%. A successful trade pact also hinges upon a bilateral agreement regarding hot-button issues such as microchips and rare earth minerals, the sources said.

MARKET WATCH-

#1- Oil prices went slightly up this morning after a Ukraine attack on Russian energy sites raised concerns over tightening supplies, Reuters reports. Brent crude futures rose by USD 0.03 to reach USD 67.76 / bbl by 03.42 GMT, while US West Texas Intermediate (WTI) increased USD 0.07 to trade at USD 63.73 / bbl.

ALSO- Saudi is ramping up refined products exports, which rose by 148k barrels per day (bbl / d) to some 1.48 mn bbl / d in 2Q, the highest since 2Q 2022, Mees reports. Crude output averaged 9.31 mn bbl / d in 2Q — the highest since 2Q 2023 — and refining runs hit 2.71 mn bbl / d. Crude exports also edged up to some 6 mn bbl / d in 2Q, bucking the usual summer dip thanks to higher runs and more supply availability.

Less burn, more exports: A 6% y-o-y increase in Aramco’s gas output and expanded renewables capacity helped trim local oil burn for power and desalination by 6.3% in 1H, even as electricity demand grew 10%. Oil burn averaged 1.25 mn bbl / d in June, the lowest June figure since 2021, putting Saudi on track for its first annual oil burn decline since 2021 — and potentially the first time volumes dip below 1 mn bbl / d since 2019.

#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 — was up 2.7% to 1,944 points on Friday, buoyed by increases across all segments. The capesize gained 3.3% to 2,793 points, while the panamax index increased 3% to 1,770 points. The smaller supramax index went up by 1.4% to 1,424 points.

#3- The Drewry World Container Index fell by 4% to USD 2,250 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of market turbulence driven by the ongoing US tariffs’ bonanza since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.

DATA POINT-

#1- Global FLNG capacity is set to quadruple by 2035: Floating liquefied natural gas (FLNG) capacity will reach some 42 mn tons per annum (mtpa) by 2030 and 55 mtpa by 2035, nearly four times the 14.1 mtpa recorded last year, according to Rystad Energy.

Cheaper, flexible, and mobile: Developers are leaning on FLNG units as a cost-efficient alternative to onshore facilities, with prices ranging between USD 500-640 per ton. FLNGs are also versatile across deepwater and can be relocated or sold to hedge against project delay. FLNG projects can be delivered faster than onshore facilities, supporting quicker final investment decisions and execution.

SOUND SMART- FLNGs produce, while FSRUs consume. The former process and liquefy gas offshore for export, while the floating storage and regasification units (FSRUs) store imported cargoes and regasify them for domestic grids.

#2- Oman’s total foreign trade fell 9.5% to OMR 11.5 bn (USD 30 bn) in 1H 2025, AGBI reported on Thursday, citing data from the country’s National Center for Statistics and Information.

The breakdown:

Omani oil and gas exports dropped 16.5% y-o-y to OMR 7.3 bn (USD 19.2 bn) in the six-month period, while non-oil exports grew 9.1% y-o-y to OMR 3.3 bn;
Total 1H imports went up 5% y-o-y to OMR 8.5 bn, with transport equipment making up 26% of the total;
Re-exports decreased 5% to OMR 815 mn during the period, due to low transhipment of transport equipment and mineral products.

#3- Traceable calls at Syrian ports surged 338% y-o-y in July 2025, on the back of a US- and EU-led push to lift sanctions on Syria earlier this year, Lloyd’s List reported last week. That said, dark port calls — where vessels arrive with their Automatic Identification System transponder turned off — still persist, the outlet said.

***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, Transmar, and AK-Ships.

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, and the UAE ***

CIRCLE YOUR CALENDAR-

Bahrain will host the Syria Recovery and Investment Forum on Sunday, 1 September and Monday, 2 September in Manama. The forum will host global industry leaders, policymakers, and stakeholders to discuss Syria's most urgent rebuilding needs — and attract investments — across key sectors including education, energy, housing, smart cities, ports, and metro systems.

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 and 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 moves ahead with railway link to Azerbaijan

Turkey has broken ground on a railway project linking it to Azerbaijan's Nakhchivan exclave, Reuters reported on Friday. The 224-km rail line will connect Turkey’s eastern provinces, Kars and Iğdır, through the Dilucu border crossing to Azerbaijan’s Nakhchivan. No investment ticket or project timeline was disclosed.

The details: The project will feature an electrified, double-track railway capable of moving 15 mn tons of cargo and 5.5 mn passengers annually, the Turkish outlet Anadolu reported last week. Construction works will also include extensive tunnels and bridges to install the rail amid the irregular terrain that characterizes the region. The connection is set to boost energy exports in the South Caucasus and bolster economic ties between Armenia and Azerbaijan.

Seizing the moment: Turkey is benefiting from progress on the Armenia-Azerbaijan logistics corridor, after the two historic rivals signed a Washington-brokered peace accord earlier this month. Once developed, the Zangezur Corridor — now named the Trump Route for International Peace and Prosperity — will provide a direct link between Europe and the regions of Central Asia and South Caucasus, bypassing both Russia and Iran as transit hubs.

Footing the bill: Ankara clinched EUR 2.4 bn in green financing for the railway project last month, according to Reuters. A consortium of lenders provided the funds, including Japan's MUFG Bank, Swedish export credit agency EKN, Austria's OeKB, and a subsidiary of the Islamic Development Bank. Meanwhile, Turkey expects to generate TRY 147.6 bn (USD 3.6 bn) from the Zangezur Corridor over 30 years, Anadolu said, citing Turkish Transport and Infrastructure Minister Abdulkadir Uraloğlu.

Trade in numbers: Azerbaijan’s exports to Turkey reached around USD 5.9 bn in 2023, with gas comprising some USD 3.7 bn of the exported goods, according to the Observatory of Economic Complexity. Turkish exports to Azerbaijan reached USD 2.6 bn, with packaged pharma products making up the single largest exported commodity at USD 68.2 mn.

CMA CGM expedites phase two of Syria’s Latakia Port

CMA CGM expedites Latakia Port investments: French logistics giant CMA CGM is fast-tracking the launch of the EUR 200 mn second phase of its Latakia Port concession, according to a press release published last week. The move follows an agreement reached last week in a meeting between Syrian premier Ahmed Al Sharaa and CEO and Chairman Rodolphe Saadé.

Where’s the money going?

Expanding the container terminal’s capacity to handle over 1 mn TEUs per year;
Digitizing port functions, including cargo handling;
Revamping infrastructure to accommodate larger vessels with 16-meter drafts;
Integrating rail and road links;
Establishing and operating new dry ports elsewhere in Syria.

REMEMBER- CMA CGM agreed to invest EUR 230 mn to upgrade the Syrian port earlier this year, committing EUR 30 mn for the first year of its 30-year concession. CMA will also develop and operate dry ports in both the Syrian-Jordanian Joint Freezone and the Adra freezone.

That’s not all in Syria: Beyond CMA CGM’s moves, more projects and investments across Syria’s logistics sectors are lining up, with a pipeline that includes the following:

A (USD 800 mncommitment from DP World to redevelop Tartus Port under a build-operate-transfer model;
A USD 4 bn investment to develop Damascus International Airport by a Qatar-US-Turkey consortium;
A spate of Turkish investments in industrial zones for SMEs across the country;
A freezone in Turkey-bordering Idlib currently under development, spanning 1.1 mn sqm area and including a dry port;
A USD 374.3k tender to upgrade Al Muslimiyah freezone in Aleppo Governorate, launched earlier this year;
An automotive-focused freezone is also said to be in the works, though no further details were disclosed.

Abu Dhabi Airports taps Carsten Nørland as CCO + KSA appoints Mousa Abargi as MOTLS’ logistics services deputy minister

#1- Abu Dhabi Airports tapped Carsten Nørland (LinkedIn) as chief commercial officer, the firm said in a post on LinkedIn. Nørland was most recently CEO of German-Danish ferry operator Scandlines and earlier held senior roles at Royal Unibrew and Copenhagen Airport. In his new role, he will oversee commercial operations spanning route development, retail, dutyfree, F&B, property management, and partnerships, according to a press release.

#2- Saudi Arabia’s Transport and Logistics Services Ministry (MOTLS) has appointed Mousa Albargi (LinkedIn) as logistics services deputy minister, according to a statement. Albargi has over 25 years of leadership experience in supply chain, logistics, transportation, procurement, strategy, private-sector enablement, vendor management, and strategic sourcing. He most recently served as executive VP for logistics at Saudi Arabia’s National Industrial Development and Logistics Program, following a stint as director of vendor-related management and later as general manager of supply chain at the National Water Company.

Updates on trade, cargo, and aviation from UAE, Iran, and Iraq

TRADE-

#1- DP World, Itochu ink trade + logistics MoU for Sub-Saharan Africa: State-owned logistics giant DP World is partnering with one of Japan’s largest trading companies, Itochu, to expand logistics connectivity and trade access across Sub-Saharan Africa, according to Dubai Media Office. Under an MoU, the two will seek to boost Japanese companies’ presence in the region, with initial efforts targeting improving supply chains, commodities and food products distribution, as well as fleet and logistics operations.

REMEMBER- DP World currently operates in 48 African countries. Last year, the logistics company earmarked USD 3 bn for new port infrastructure in the continent, partnered with the UK government to develop DR Congo’s first deep-sea container port, and got the greenlight from Mozambique’s government to expand the Maputo port.

#2- Kemet mulls Egypt, Tanzania plants: Edible oil manufacturer Kemet Logistics Export Import plans to establish two factories with combined investments of USD 5 mn over the coming two years, one in Egypt and one in Tanzania, Commercial Director Younes Gomaa told Al Borsa. Each of the factories will have a daily production capacity of 200 tons, 30% of which will be earmarked for exports. The plants will produce pure sunflower oil and soybean oil.

#3- Iran and Armenia have slashed tariffs on 87% of bilaterally traded goods, bolstering Tehran’s trade ties with the Eurasian Economic Union (EAEU), Tehran Times reported last week, citing Iran’s Industry, Mining, and Trade Minister Seyed Mohammad Atabak. Iran was recently recognized as a permanent observer in the EAEU — of which Armenia is a member — amid efforts by Tehran to expand a preferential trade pact with the bloc, the outlet said.

CARGO-

#1- SolitAir kicks off air cargo operations in mainland China: Dubai-based cargo carrier SolitAir launched direct flights from its logistics facility at Al Maktoum International Airport to China’s industrial city of Ürümqi, according to a press release published on Thursday. The move marks its first direct route into mainland China — providing faster transit for time-sensitive cargo such as electronics, pharma products, fashion goods, and perishables.

IN CONTEXT- China is the UAE’s largest trading partner, with bilateral trade exceeding USD 102 bn in 2024, the press release says. Ürümqi is positioned as a logistics gateway to Central Asia and is located near key points on China’s Belt and Road Initiative.

#2- Etihad Cargo increases belly-hold capacity with updated winter schedule:

Etihad Airways’ cargo arm Etihad Cargo has added new destinations to its winter flight schedule, according to a press release published on Thursday. The carrier is launching new routes to Hong Kong, Hanoi, and Taipei, and increasing the frequency of its services to Lisbon, Warsaw, Atlanta, Bangkok, and Manchester.

Also in the pipeline: Between November 2025 and March 2026, Etihad Airways plans to gradually launch passenger flights to 16 new destinations — including Addis Ababa, Algiers, and Bucharest — with the aim of increasing its belly-hold capacity on more than 1k weekly flights. Increasing passenger flight destinations will strengthen the airline’s presence in Europe, Asia, Africa, and the Americas, the statement says.

AVIATION-

Iraq, Lebanese firm ink ground-handling agreement: The Iraqi Airports Administration Directorate inked a contract with Lebanese air transport firm Charter for ground handling services at Basra International Airport, after the agreement with the previous local services provider expired, Shafaq News reported on Wednesday. The Lebanese firm will provide cargo, transport, and ground operation services.

APM Terminals to modernize India’s ports with USD 1 bn investment

APM Terminals to inject USD 1 bn into India’s ports: Maersk subsidiary APM Terminals has inked an MoU with India’s Andhra Pradesh Maritime Board to invest USD 1 bn into modernizing the country’s ports and terminals — with plans to establish a joint working committee for the project by 3Q 2025, according to a statement released on Friday. APM will provide expertise on development plans, infrastructure design, and sustainable port operations through the use of low-emission tech and energy-efficient cargo handling systems.

REMEMBER- APM Terminals already operates two ports in India, including Amreli District’s Gujarat Pipavav private port and Gateway Terminals India at Maharashtra JNPA Port.

APM has footprints in the region: Oman’s APM Terminals-operated Salalah Port completed a USD 300 mn expansion project in February — growing the port's container capacity to 6.5 mn TEUs, upgrading all six berths, and expanding the port’s yard. The Maersk subsidiary also inked a letter of intent with Bahrain to upgrade infrastructure at the APM Terminals-operated Khalifa bin Salman Port.

Blackstone has raised the debt facility of Aligned Data Centers — in which the UAE’s Mubadala has a minoritystake — to more than USD 1 bn, Bloomberg reported last week. The alternative investment outfit is providing senior secured debt to support Aligned’s data center build-out — expected to add an extra 5 GW of data center capacity across its operations in North and South America. Blackstone’s move follows a USD 600 mn investment it deployed last March to back an 80 MW project in the US.

Calendar

AUGUST

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

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

SEPTEMBER

1-2 September (Monday-Tuesday): Syria Recovery and 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 and 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 and Logistics Congress, Dammam, Saudi Arabia.

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

7-8 October (Tuesday-Wednesday): Global EV and 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.

Sections

About

Privacy & Support

Get EnterpriseAM daily