Turkey eyes more trade + new shipping lines linking MENA ports with Russia

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What we're tracking today

TODAY: Iran’s Ambirabdollahian kicks off Pakistan visit today + Fujairah’s oil stockpiles rise in July

Good morning, friends. We end the week with a busy issue, filled with updates from across the region on everything from data centers to new shipping lines.

THE BIG LOGISTICS STORY- A new Dubai-based shipping operator has launched with 16 shipping lines connecting MENA ports to the Far East, Asia, India and Russia.

HAPPENING TODAY-

Iranian Foreign Minister Hossein Amirabdollahian is planning to visit Pakistan today, Tasnim news agency reported, citing Pakistani daily The Nation. Amirabdollahian is expected to meet with his Pakistani counterpart Bilawal Bhutto Zardari and other Pakistani officials during the two-day visit.

DATA POINT- Mwani Qatar’s container throughput rose 5% m-o-m in July, according to a statement. General and bulk cargo volumes stood at 166.1k tons, while container volumes stood at 100.8 TEUs. The number of vessels increased 15% m-o-m during the month to 226 vessels.

MARKET WATCH- Oil product stockpiles at the UAE’s Port of Fujairah surged to a three-week high as of 31 July, prompted by a 22% rise in gasoline and light distillates compared to the week prior, according to Fujairah Oil Industry Zone data, S&P Globalreports. Total inventories also inched up 5.1% week-on-week to 19.72 mn barrels, but remain down 4.6% since the end of 2022.

Oil product exports from Fujairah reached their highest level since December, averaging around 652k barrels per day (bbl / d), with Singapore, Malaysia, South Korea, and Saudi Arabia being the main recipients, according to Kpler data. Imports for the same period averaged around 751k bbl / d, with Iran, Iraq, and Russia as the biggest importers.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

Do you want to become a commercial partner? Ping a note to Moustafa Taalab, our head of commercial, or fill out this form and we’ll be in touch.

LISTEN TO OUR PODCAST-

DID YOU MISS THE ENTERPRISE EXPORTS AND FDI FORUM? Tune in to the EnterprisePodcast and listen for yourself: The Enterprise Podcast is back with another installment of our forum series, where we bring you audio recordings of what was said on stage at the Enterprise Exports and FDI Forum,which took place in May.

IN THIS WEEK’S EPISODE- We look at whether industrial clusters — which have been used to great effect elsewhere — can be a way for SMEs to be part of a potential export-oriented economy. Our speakers shed light on where industrial zones are working for us already, how Egypt can leverage clusters to get a bigger slice of that cross-border trade, and how industrial clusters can bring together SMEs to work with larger firms. We were joined on that panel by Shady Williams, managing director of IDG, Mohamed ElGebely, team leader at USAID Trade, and Nada El Ahwal, CSO of Transmar.

WANT TO LISTEN? Head to: Apple Podcast | Spotify | Google Podcast. We’re releasing a new episode every Sunday morning.

CIRCLE YOUR CALENDAR-

The UAE’s Finance Ministry extended the deadline for feedback on the Corporate Tax Free Zone public consultation from today until next Wednesday, 9 August, according to a press release. The ministry is holding a digital public consultation on its website that began last week as part of the UAE’s corporate tax freezone regulations, Emirati news agency WAM reports. The consultation aims to gather feedback from freezone-based companies, WAM added.

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

New Dubai-based shipping line links MENA ports with Far East, Asia and Russia

New liner out of Dubai looks to leverage gaps at Russian ports: Dubai-basednewcomer CStarLine has kicked off 16 new shipping routes linking ports in the Middle East with the Far East, India and Russia, according to its website. The new liner is eyeing gaps created after Western liners exited Russia’s ports, Splash reports. Former Maersk executive Zsolt Katona (Linkedin) leads the new carrier as CEO, according to Splash.

The routes:The new carrier looks to bridge ports in East Asia, India, MENA, the Black Sea, and the Baltic Sea. Its routes connect Jebel Ali in the UAE; Jeddah in KSA; Istanbul, Ambarli, Beldeport, Izmir, and Mersin in Turkey; Alexandria in Egypt; Misrata and Benghazi in Libya; and Ashdod and Haifa in Israel to ports in the Far East, India, and Russia. No information was provided regarding vessels, frequencies, and capacities of the shipping lines.

Getting a foot in the door: The new liner joins a slew of outfits scrambling to fill gaps at Russian ports following the pullout of global container lines in the wake of Russia’s invasion of Ukraine, Splash explained. Some of these names include FESCO, Reel Shipping, New New Shipping/Torgmoll, OVP, and Safetrans.

Robust gains are driving a rebound in volumes at Russian ports with 200k TEU of added container capacity calling in since the end of 2022, according to Linerlytica data cited by Splash.

Oman and Etihad Rail Company partner up with Jindal to transport its steel from Oman to the UAE

Oman-Etihad Rail Company + steel maker Jindal to transport its steel to the UAE: Oman-Etihad Rail Company (OERC) and Omani Jindal Shadeed Iron & Steel (Jindal) signed an MoU to set up a green transport logistics corridor between the UAE and Jindal’s steel complex at Sohar Port through the UAE-Oman Rail Network, Emirati news agency WAM reports.

The details: The agreement will see some 4 mn tonnes of raw materials and steel products transported from Jindal’s steel complex to the UAE, WAM added.

What they said: “The MoU will enable Jindal to enhance its supply chain efficiency, benefiting from the UAE-Oman Rail Network’s fast, cost-effective, and sustainable services,” Deputy CEO of OERC Mohammed bin Zahran Al Mahrouqi said.

This is not OERC’s first agreement for metals transport: OERC previously signed an MoU with Brazil’s Vale to work on developing logistical solutions to ship iron ore and derivatives from Vale’s industrial hub in Oman’s Sohar Port and Freezone to Vale’s factories and distribution points.

Background: Etihad Rail and Oman Rail signed a USD 3 bn agreement last year to establish The Oman and Etihad Rail Company, linking Oman’s Sohar Port with the UAE’s national railway network. The transport link between the UAE and Oman — first announced in September — is aimed at boosting trade between the two countries and the region. The rail line serves both passenger and freight trains.

UAE’s Al Masaood Group completes first two phases of bonded warehouse project + Edamah completes warehouse at Bahraini industrial park

Abu Dhabi-based Al Masaood Group has completed the first two phases of its bonded warehouse system in cooperation with the General Administration of Customs in Abu Dhabi, according to a press release. The system will help ease port-to-warehouse operations for the business giant, and streamline the process of shipment clearances for all of the company’s goods and vehicles, the statement said, without disclosing the warehouses’ storage capacity or the investment value. The timeline for completion — and how many phases are left — have also not been disclosed.

The warehouses provide customs + VAT exemptions: The warehouses will provide special customs and VAT exemptions, which results in some 25-30% in deferred taxes in comparison to non-bonded warehouses, according to the statement.

SOUND SMART- Private companies set up bonded warehouses, which are customs-controlled, in foreign countries to store imported goods and defer customs payments.

Background: Al Masaood Group had formed a strategic partnership with the General Administration of Customs in 2022 to create new avenues for Al Masaood to expand their logistics, storage, and import and export sectors across the UAE and the Middle East, according to the statement.

About the company: Abu-Dhabi based Al Masaood Group is a business conglomerate operating across 18 industries, including oil and gas, marine, utilities, heavy equipment and machinery, logistics and modular construction, the statement said.

OTHER STORAGE & WAREHOUSING NEWS-

Edamah completes Sitra warehouse project: Edamah — Bahraini sovereign wealth fund Mumtalakat’s real estate arm — completed a USD 7 bn warehouse project at Sitra Industrial Park, according to a press release. The facility will allow Trident Warehousing and parent company Hoover to expand regional operations.

Amazon Web Services launches cloud region in Israel + Mubadala becomes minority partner in US-based Aligned Data Centers

Amazon Web Services (AWS) has opened its Israel cloud region, its third in the Middle East, the company announced in a press release. The move comes as AWS looks to invest USD 7.2 bn in Israel by 2037, CIO reports.

The details: The Tel Aviv cloud region, first announced in June 2021, features three availability zones — which contain data centers — and will support services including compute, storage, networking, and security.

Background: AWS introduced cloud regions in Bahrain in 2019 and the UAE in 2022. AWS began investing in Israel in 2019 with Amazon CloudFront and has since launched AWS Outposts and AWS Direct Connect. The Tel Aviv region expands AWS’s global availability zones to 102 across 32 regions.

OTHER DATA CENTER NEWS- Abu Dhabi sovereign investor Mubadala has invested in US-based data center firm Aligned Data Centers, positioning itself as “a minority partner alongside majority partners managed by Macquarie Asset Management,” according to a company press release. The USD 276 bn fund did not disclose additional details about the transaction.

Where the money will go: The funds willsupport Aligned’s expansion in the pan-American market, Mubadala CEO of Real Estate and Infrastructure Investments Khaled Abdulla Al Qubaisi was quoted as saying in the press release.

About Aligned: The data center firm provides both scale data centers and build-to-scale solutions, and is slated to have upwards of 2.5 GW of capacity across over 40 data centers once developments are completed, the release added. Despite a focus on North American operations, Aligned recently expanded to Latin America with the acquisition of regional firm ODATA. The outfit is ramping up operations in Latin America and currently operates data centers in Brazil, Chile, Colombia, and Mexico.

Mubadala has been on a data center investment spree: May saw the fund invest USD 500 mn in US-based broadband and telecom company Brightspeed. This was preceded in 2022 by a USD 350 mn investment in Asia-focused data center company Princeton Digital Group. The sovereign fund also injected GBP 800 mn into UK’s CityFibre.

Nakilat sees growth in net income + revenues in 2Q 2023

Qatar’s Nakilat reports growth in income in 2Q 2023: Qatari liquefied natural gas (LNG) shipping company Nakilat reported an 8.9% y-o-y increase in its bottomline to QAR 379 mn during 2Q 2023,according to its financials (pdf). The company’s topline during the period recorded a 9.1% y-o-y rise to QAR 1.17 bn. The company saw a 6.1% y-o-y jump in net income to QAR 774.9 mn during 1H 2023, while revenues rose 6.8% y-o-y to QAR 2.29 bn.

Net income and revenues were boosted by strong results from LNG, LPG and shipyard joint ventures as well as improved performance in shipyard, according to the earnings presentation (pdf). This helped counterbalance expenses, which rose 7.3% y-o-y in 1H 2023 on the back of a 9.6% y-o-y increase due to higher average variable interest rates on the unhedged portion of debt.

Gulftainer UAE Terminals gets sixth consecutive RoSPA safety award + Etihad Cargo surpasses 1H 2023 operational targets

Port management and logistics outfit Gulftainer UAE Terminals has received the Royal Society for the Prevention of Accidents (RoSPA) Gold Medal safety award for the sixth time running, WAM reported. The award highlights the company’s efforts to secure workplaces and safeguard its employees throughout 2022.

Etihad Cargo has surpassed its 1H 2023 operational goals, achieving 82.7% on-time performance (OTP) for freighter departures and 82% for arrivals, surpassing its 80% target for both, according to a press release. The delivered-as-promised (DAP) rate stood at 90.6% during the period, surpassing its target of 85% and its 2022 DAP rate of 86.6%.

Egypt, Turkey eye boosting trade by 50% over the next five years + Iran, Syria remove trade tariffs. PLUS: More from Algeria, Iran, and Saudi Arabia

Egyptian Trade and Industry Minister Ahmed Samir Saleh and his Turkish counterpart Ömer Bolatplan to boost trade to USD 15 bn over the next five years, with an eye to hit the USD 10 bn mark this year, the countries said in separate statements (here and here). The meeting took place during Saleh’s visit to Turkey, which is the first by an Egyptian trade minister in a decade.

This is the first visit to Turkey by an Egyptian trade minister in 10 years: The meetings come a few weeks after presidents Abdel Fattah El Sisi and Recep Tayyip Erdogan agreed to reestablish diplomatic ties and appoint ambassadors after 10 years of hostilities.

Iran + Syria are cutting bilateral trade tariffs:Iranian Roads and Urban Development Minister Mehrdad Bazrpash and Syrian Economy and Foreign Trade Minister Mohamed Samer al Khalil agreed to remove bilateral trade tariffs at a meeting of the heads of the Iran-Syria Joint Economic Commission, Tasnim News Agency reports. They also discussed using the Iran-Iraq-Syria Railway as a land route transit alternative, as well as the repair and maintenance of existing rail routes, rail fleet servicing and creating a new railway link between Iraq and Syria and a truck transit agreement between Iraq, Syria and Iran. They also discussed boosting air and maritime port partnerships and implementing a trade agreement, Tasnim adds.

ALSO WORTH KNOWING-

Uzbek and Iranian officials discussed using Iran’s Bandar Abbas and Chabahar ports as part of a transport corridor between them. (Mehr News Agency)
The Brazil-Saudi Arabia Investment Forum discussed potentially cooperating and attracting investments in the transportation, logistics services, mining, food industries, agriculture, healthcare, sports, and entertainment. (Saudi Gazette)
The Iran-Pakistan joint economic forum discussed developing bilateral economic cooperation. (Islamic Republic News Agency)
Algeria and Tanzania have inked a range of agreements, MoUs, and executive programs covering cooperation in several areas including energy and trade. (Algeria Press Service)
Iranian President Ebrahim Rais met with Sultan of Oman Haitham bin Tariq Al Said to discuss boosting bilateral cooperation. (Xinhua)

Jordan, Canada to launch investment platform by year’s end + Qatar Airways Cargo is upping belly capacity to France. PLUS: More from Saudia, Royal Jordanian Airlines and Iraqi Airways

TRADE-

Jordan + Canada to launch joint investment platform by end of 2023: Jordan and Canada intend to launch a joint electronic platform by the end of the year to showcase avenues for investment and trade between the two countries, Jordan News Agency (Petra) reported, citing an announcement by the Amman Chamber of Commerce. The platform, which will be developed jointly by the chamber and the Jordanian Embassy in Canada, will display products from both nations and facilitate the exchange of market information.

ALSO WORTH KNOWING-

Qatar Airways Cargo is providing belly capacity to two additional destinations in France, withfour flights a week to Lyon and tri-weekly trips to Toulouse. (Statement)
Saudi Arabia’s national carrier, Saudia, will add 20 fuel-efficient Airbus A321neo aircraft — each with a capacity for 180-220 passengers — to its fleet by 2026 to meet growing demand. (Arab News)
Royal Jordanian Airlines iscontracting Swissport to deliver airport ground services, including passenger assistance and aircraft cleaning, at four Saudi airports. (STAT Times)
Iraq’s national carrier Iraqi Airways has inducted two recently delivered Boeing 737-8 MAX aircraft into its fleet. (Statement)

Turkey + EU considering upgrading trade ties + Ford doubles down on electric truck production. PLUS: More on LNG imports, bunkering, and Hapag-Lloyd

Turkey + EU considering easing trade ties:Turkey is discussing updating its customs union with the EU in a bid to re-engage with EU countries’ and investors and boost trade, Bloomberg reports. Although the European Commission has long pushed to update the trade agreement, which has been in place since 1995, no progress has been made due to political tensions with Turkey. While the union provides for a common external tariff for all industrial goods, it does not apply to services, public procurement, or agricultural goods.

What’s the delay? “There are difficult issues to be addressed in this regard,” EU customs commissioner Paolo Gentiloni told Bloomberg after meeting with Turkish Finance Minister Mehmet Simsek. Turkey must first resolve tensions with Cyprus as a stepping stone for re-engagement with the EU, EU foreign affairs chief Josep Borrell is quoted as saying.

ALSO WORTH KNOWING-

Ford is ramping up production of its F-150 Lightning electric truck, aiming to triple production to 150k vehicles a year by October. (Reuters)
Europe’s LNG imports fell 7% in July to 8.6 mn tons, their lowest level since November 2021, as a drop in prices pushes traders to divert their deliveries elsewhere. (Bloomberg)
Bio-LNG bunkering has become available in around 70 ports worldwide, including in Singapore, Rotterdam, and the US east coast. (Seatrade Maritime)
Hapag-Lloyd has successfully completed the 100% acquisition of SM SAAM’sterminal business and associated logistical services after receiving the greenlight from regulatory authorities. (Statement)

Calendar

AUGUST

Oman will award Ras Al Hadd Airport consultancy contract.

31 July-9 August (Monday-Wednesday): KSA trade delegation headed by Investment Minister Khalid Al Falih tours Brazil, Chile, Costa Rica, Argentina, Panama, Paraguay, and Uruguay.

8 August (Tuesday): Kuwait will issue a tender for the construction of Mubarak Al Kabeer Port.

27 August (Sunday): Last day for companies to bidfor the construction tender for Kuwait’s Mubarak Al Kabeer Port.

28 August (Monday): Registration for Emirates Postal Group’s Logistics Unleashed competition concludes.

SEPTEMBER

4-8 September (Monday-Friday): Logistics and Transport Management, Dubai.

5 September (Tuesday): The Leaders in Logistics KSA Summit, Crowne Plaza Al Waha, Riyadh.

6-7 September (Wednesday-Thursday): Sustainability LIVE London, Business Design Centre, London.

11-14 September (Monday-Thursday): The Libyan Moroccan Forum for Trade and Business, Tangiers, Morocco.

11-15 September (Monday-Friday): London International Shipping Week 2023, International Maritime Organization, London, United Kingdom

12 September (Tuesday): Global Pharma Logistics Summit 2023, ITC Maratha, Mumbai, India.

18-19 September (Tuesday-Wednesday): Enterprise Finance Forum, St. Regis Hotel, Cairo.

20-22 September (Wednesday-Friday): Transport Evolution Africa Forum and Expo, Inkosi Albert Luthuli ICC Complex (Durban ICC), South Africa.

20-23 September (Wednesday-Saturday): MTB Workboats, Hyatt Regency Dubai, Dubai.

25-27 September(Monday-Wednesday): Airline Economics Growth Frontiers Middle East & Africa, The Ritz-Carlton, Dubai, UAE.

26-28 September (Tuesday-Thursday): ProcureCon, Hyatt Regency Barcelona Tower, Spain.

26-28 September (Tuesday-Thursday): Breakbulk Americas, George R. Brown Convention Center, Houston, Texas.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

OCTOBER

Egypt’s Suez Canal Economic Zone (SCZone) goes on a roadshow to South Korea.

3-4 October (Tuesday-Wednesday): IATA World Sustainability Symposium, Madrid, Spain.

3-5 October (Tuesday-Thursday): Smarter Mobility Africa Summit, South Africa.

10-12 October (Tuesday-Thursday): Autonomous E-mobility Forum, Doha, Qatar.

24-25 October (Tuesday-Wednesday): Future Fuels Europe, Amsterdam, Netherlands.

26-29 October (Thursday-Sunday): International Congress of Aviation and Space Medicine, Conrad, Etihad Towers, Abu Dhabi, UAE.

30 Oct-2 Nov (Monday-Thursday): IAPH World Ports Conference, Abu Dhabi, UAE.

30-31 October (Monday-Tuesday): Gartner Supply Chain Planning Summit, London, UK.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

NOVEMBER

1 November (Wednesday): Smart Maritime Network Dubai Conference, Conrad Dubai, UAE.

9-15 November (Thursday-Wednesday): Intra-AfricanTrade Fair, Cairo, Egypt.

13-17 November (Monday-Friday): Dubai Airshow, Dubai World Center, UAE.

14-15 November (Tuesday-Wednesday): Supply Chain & Logistics Arabia, Narcissus, Riyadh, Saudi Arabia.

14-17 November (Tuesday-Friday): IATA Slot Conference, Dubai World Trade Centre, Dubai, UAE.

15 November (Wednesday): Leaders in Logistics UAE Summit, Dubai.

21-23 November (Tuesday-Thursday): Intermobility Expo 2023, Dubai World Trade Center, Dubai, UAE.

21-23 November (Tuesday-Thursday): Touchdown Middle East, Gulf Hotel, Bahrain.

23 November (Thursday): Global Supply Chain and Logistics Summit, Grand Millennium Hotel Business Bay, Dubai, UAE.

30 November-3 December (Saturday-Tuesday): Handling Expo, Egypt International Exhibition Center, Cairo, Egypt.

September-November: Emirates Postal Group’s “Logistics Unleashed” competition, UAE.

DECEMBER

10-11 December (Tuesday-Wednesday): Invest in Logistics, St.Regis Almasa Hotel, New Administrative Capital, Egypt.

EVENTS WITH NO SET DATE

2H2023:Construction of Neom’s first hydrogen fueling station will kick off.

2H2023: Expansion of Baghdad International Airport to begin.

3Q 2023: Design and supervision contract for Oman’s proposed Musandam Airport to be awarded.

Before the end of the year: The first phase of the Ain Sokhna port redevelopment will wrap.

2024

1Q 2024: Construction of phase 3 of Agility’s logistic park in Abidjan, Côte d’Ivoire to be completed.

1H 2024: Work is scheduled to begin on the 162 km Rasht-Astara railway in Iran.

FEBRUARY 2024

13th World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-15 February (Monday-Thursday): African Air Expo, Cape Town.

28 February-1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

MARCH 2024

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Center, Dubai, UAE.

12-14 March (Tuesday- Thursday): IATA World Cargo Symposium, Hong Kong International Airport.

MAY 2024

2-3 May (Thursday-Friday): Geneva Dry, Geneva, Switzerland, Hotel President Wilson.

JUNE 2024

19-21 June (Wednesday-Friday): World Freezones Organization’s Annual International Conference and Exhibition, Bari, Italy.

DECEMBER 2024

10-12 December (Tuesday-Thursday): Middle East Business Aviation, DWC, Dubai, UAE.

2024

The Bahrain International Airshow will kick off to mark a decade of success

2025

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.

2027

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

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