Turkey stalls resumption of oil exports through Kurdish area in Iraq + ONE launches carbon emissions calculator

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What we're tracking today

TODAY: Iraq petitions US court for arbitration from Turkey + Suez Canal revenues rise in 1Q 2023

Good morning, friends. We’re finally experiencing the Ramadan news slowdown we’ve been expecting since the holy month began, but we still have a few updates from the region and beyond for you to dive into this morning.

A quick programming note: Enterprise Logistics will be taking a publication holiday on Monday in observance of the Egyptian national holiday of Sham El Nessim. We’ll be back in your inboxes on Tuesday morning at the usual time.

THE BIG LOGISTICS STORY- Iraq petitioned a US federal court to enforce the arbitration award it received last month against Turkey regarding unauthorized oil exports from Iraqi Kurdistan to Turkey’s Ceyhan port, while Turkey stalls the resumption of exports.

HAPPENING TODAY-

Suez Canal revenues jumped to USD 2.3 bn in 1Q 2023, up 35% y-o-y, according to an Egyptian presidency statement. The number of ships transiting the canal during the quarter increased 20% y-o-y. In a meeting with Egyptian President Abdel Fattah El Sisi, Suez Canal Authority Chairman Osama Rabie presented plans to modernize the canal’s fleet, the statement said.

The quarter yielded record-breaking results: 1Q 2023 saw an all-time record for monthly revenues of more than USD 830 mn in March, while some 107 vessels transited the Suez on 13 March, marking a daily record for the canal.

WATCH THIS SPACE-Saudi Arabia and Oman formed a committee to plan for the development of a new integrated economic zone in Dhahirah, Arab News reports. The committee will plan for the execution and management of the zone and monitor the implementation of all programs and initiatives. The committee is made up of members from Saudi Arabia’s Ministry of Investment, Economic Cities and Special Economic Zone Authority and the Saudi Development Fund, as well as officials from Oman’s Public Authority for Special Economic Zones and Freezones.

THE REALIGNMENT-

Syria could soon reclaim its seat in the Arab League: Regional foreign ministers will gather in Jeddah on Friday to discuss Syria’s return to the Arab League following a 12-year suspension, Qatar’s Foreign Ministry spokesperson Majed Al Ansari said at a press briefing, according to Reuters. The Saudi Arabia-hosted meeting will bring together the foreign ministers of Egypt, Jordan, Iraq, and the six GCC countries. Syria was expelled from the Arab League in November 2011 following its brutal crackdowns on pro-democracy protests.

Qatar is reluctant to bury the hatchet: Qatar’s position has not changed, Al Ansari said, adding that "any change in the current (Qatari) position on Syria is mainly linked to an Arab consensus, and a change on the ground that achieves the aspirations of the Syrian people." The GCC member previously declared its opposition to normalizing relations with President Bashar Al Assad, saying he has taken “no serious steps … to repair the damage that he made for his own country and people."

COME TO OUR NEXT ENTERPRISE FORUM-

The Enterprise Exports & FDI Forum, our latest industry-specific conference, is taking place on Monday, 15 May at Four Seasons, Nile Plaza. The Enterprise Exports & FDI Forum will give insiders and newcomers alike the chance to talk about how to develop an export-centered business and how their companies can help us build an export-led economy that makes us a magnet for foreign direct investment (FDI).

What’s the Enterprise Exports & FDI Forum? In the wake of successive floats of EGP, exports and FDI have never been more important to our economy — or our businesses. We’re gathering some of the CEOs, top execs from local companies and multinationals, investors, bankers and finance folks to speak on how businesses can adapt their strategies to be export-oriented and what we as a country can do to draw foreign investment and much-needed FX. Expect it to be heavy on lessons learned in Egypt and other global growth markets — and lots of success stories. You can learn more on our conference website here.

Some of the biggest names in business and finance are on board — are you? If you’re a C-suite exec, business owner, DFI staff, export executive, investor or banker, please fill out the form here to signal your interest, letting us know your name, title, and where you work.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

MARKET WATCH-

OPEC+ crude oil production fell by 300k barrels per day (bbl / d) in March,with the lion’s share of the drop coming from Russia, according to the latest Platts survey by S&P Global Commodities Insights. Russia’s production dropped by 260k bbl / d to 9.6 mn bbl / d on the back of Western sanctions and price caps placed on Russian oil. Although Russia has found some ways around the sanctions, the country decided to slash output by 500k bbl / d as of March through the end of the year to mitigate the impact of the price cap.

The rest of OPEC+ is also coming through with output cuts as of next month: Saudi Arabia, Iraq, the UAE, Kuwait, Algeria, Oman, Gabon, and Kazakhstan have all pledged voluntary cuts ranging from 8k to 500k b/d from May till the end of the year. These latest voluntary cuts total 1.6 mn b/d.

What happens next? OPEC+ ministers are scheduled to meet again on 3-4 June, as analysts are expecting the market to remain tight in 2H 2023.

DATA POINT-

Qatar saw a 12.9% increase in aircraft movement to c.19.5k aircrafts in March, according tostatistics published by Qatar’s Civil Aviation Authority. Cargo and mail transport, on the other hand, didn’t fare as well, witnessing a decline of 5.2% y-o-y to 206k tons. This comes amid a wider slowdown in cargo air traffic in the MENA region this year.

CIRCLE YOUR CALENDAR-

The Arab-African Center for Investment and Development (CAAID) is hosting its Africa Forum of Investment and Commerce from 16 to 17 May, at the Sheraton Hotel in Algiers, Algeria, according to the CAAID website. The forum will bring together more than 650 economic players including government decision makers, researchers, experts, investors, and manufacturers to have economic discussions under the theme of “Africa’s Gateway to Industry, Agriculture and Trade.”

Libya’s transport and logistics expo, Translogistica, will take place from 29 to 31 May, according to the event’s website. The expo will bring together exhibitors from various sectors including trade zones, airports, shipping companies, cargo airlines, warehousing, customs clearance and IT companies operating in the transport and logistics sectors.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Iraq seeks US help in enforcing oil arbitration award + Turkey hesitant to restart oil flow

Iraq has petitioned a US federal court to enforce the arbitration award it received last month in its case against Turkey regarding unauthorized oil exports from Iraqi Kurdistan to Turkey’s Ceyhan port, Reuters reports. The petition, filed with the US District Court of the District of Columbia, is asking for the court to recognize, confirm, and enforce the final award issued by the Arbitral Tribunal.

Remember: The International Chamber of Commerce recently ruled that Turkey must pay Iraq USD 1.5 bn in damagesfor receiving crude oil exports from Iraq’s semi-autonomous Kurdistan region in 2014-2018 without Baghdad’s consent, thus breaching a 1973 agreement. The ruling has prompted Turkey to halt oil flows on the pipeline to the Turkish port of Ceyhan.

Turkey's condition to resume oil exports is no more arbitration: While Iraq’s federal government and the Kurdish Regional Government had signed a temporary agreement to resume oil exports to Turkey on 4 April, flows have yet to resume, Reuters reports. Turkey is holding off on reopening the line pending assurances from Iraq concerning a second arbitration case, sources told Reuters. “Baghdad must give a response about this outstanding arbitration,” a source with knowledge of the matter told Argus, adding that talks should be held soon, but only with assurances from Baghdad in regards to a separate arbitration case for 2018 onwards.

Why logistics parks are growing more popular in the MENA region and beyond

Enterprise explains: Logistics parks. Logistics parks have been popping up across the MENA region in recent years, whether in the UAE, Saudi Arabia or Egypt, as countries ramp up efforts to diversify their economies and become logistics hubs. But while logistics parks are becoming increasingly common, their functions have changed over the years — from being a place for companies to centralize their logistics operations to offering value-added services to enhance supply chains.

In a nutshell: Logistics parks are industrial areas where companies store, manage, and distribute their goods from a single location, according to a blog post by Kuwaiti logistics firm Agility. The parks are usually made up of a collection of warehouses, office complexes, data centers, transport depots, fuel pumps, piers or bays, labor accommodations, and retail facilities. The underlying aim behind logistics parks is to streamline businesses’ logistics operations by establishing a central hub for transportation and warehousing, thereby reducing costs and saving time.

What kinds of companies use logistics parks? Manufacturers, assemblers, importers and exporters, or companies that handle packaging of goods on-site, are all examples of businesses that use logistic parks for their operations.

Location, location, location: Location plays a vital role for companies choosing a logistics park. Most parks are strategically situated in industrial belts close to airports, ports with access to freeways, or near railways to provide easy access to transportation modes that cater to a company’s requirements. This kind of access can significantly improve distribution speed and reduce shipping costs for firms. However, not all logistics parks offer access to multiple transportation modes, with some focusing on offering access to just one mode that best suits their customers’ needs.

Logistics parks come with plenty of perks: Parks usually provide additional services such as waste collection, landscaping and office working spaces amenities such as electricity, high-speed internet, water, and catering facilities, according to Marine Insight.

They are not just for big players: Smaller facilities within logistics parks are ideal for smaller e-commerce fulfillment or processing-and-assembly operations. These facilities provide small businesses assistance with freight distribution, and usually provide affordable leasing prices.

But large players that want to expand will also benefit from being in a park: Larger local businesses looking to grow their market share and enter new markets to better compete with multinationals can expand their space as the company grows with the help of storage space at logistics parks, and will benefit from having greater access to transportation networks and well-managed distribution. Multinational corporations tend to take up the larger facilities within parks.

But they require hefty funds: Logistics parks are typically large-scale projects that require significant investment, and many countries face infrastructure and funding constraints, according to CNBC TV18. Funding is a major challenge for logistics parks, particularly in emerging markets.

The largest logistics park in the region? The upcoming USD 346 mn, 225k sqm logistics zone in Jeddah Islamic Port. Maersk and the Saudi Ports (Authority Mawani) began construction on Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port earlier this year. Saudi Arabia already has the King Abdullah Port Logistics Park, spanning an area of 350k sqm and situated near the port of Jeddah on the Red Sea coast, according to its website. It provides a wide range of logistics services, including warehousing and cold storage facilities and an empty container depot and repair facility.

The UAE is also big on logistics parks: Dubai South’s multimodal logistics hub Logistics District spans 18 sqkm and enables cargo to be transported from the port to the airport in 20 minutes. It also provides direct access to the UAE’s main trans-emirates highways. The park includes warehouse facilities and offers flexible storage systems as well as an on-site visa and licensing authority.

Egypt is another up-and-coming player: Egyptian local developerHassan Allam Utilities recently partnered up with Agility to establish two logistics parks in Egypt. The first park, Yanmu East Logistics Park, is set to open in August 2023 and will cost some USD 100 mn to build and the second park, Yanmu West Park, will launch in 2024 at a yet-to-be-finalized location.

Boeing ramps up deliveries of aircraft + HMM slashes container emissions over the past decade

Boeing handed over 64 new aircraft to customers last month, according toCNBC. This marks the manufacturer’s highest number of monthly deliveries since December. The deliveries included seven 787 Dreamliners, which had seen a temporary halt in deliveries while design flaws were worked out. Boeing is planning to ramp up production of the Max to meet orders from airlines eager to capitalize on a boom in air travel, the news agency said.

ALSO WORTH KNOWING-

South Korean shipping company HMM cut carbon emissions from its container transport by 57.7% over the last decade,according to a statement. The reduction in carbon emissions is due to HMM’s upgraded fleet, which uses energy-efficient mega vessels and optimized service routes, speeds, and cargo stowage. (Marine Insight)

Vertiport terminal in Dubai to be operational by 2026 + News from Saudi Arabia’s Nana, Oman’s Salalah Smart City. PLUS: Hamad International Airport, Saudia, Peninsula and AD Ports

AVIATION-

Dubai’s first vertiport terminal will be operational by 2026: London-based architecture and infrastructure design firm Foster + Partners has developed a concept design for a vertiport terminal in Dubai in collaboration with vertiport technology designer and operator SkyportsInfrastructure, according to a statement. The vertiport will be located next to Dubai International Airport and will be the first of four that are planned for Dubai. The vertiport will be part of an electric vertical take-off and landing infrastructure (eVTOL) network that will connect Dubai’s transportation hubs by providing high speed, zero-emission travel.

STARTUPS-

E-commerce outfit Yango Deli Tech and Saudi online grocery outlet Nanainked an agreement to implement Yango’s tech in Nana’s operations in KSA, according to a press release. The agreement follows a pilot project conducted at one of Nana’s dark stores that saw a significant boost in efficiency. The trial yielded a 97% reduction in average missing items per day, a stock accuracy of almost 100%, and a more than 35% reduction in time needed to prepare orders. The new partnership will “support our vision and fuel our ambitious goals for further expansion and growth,” Nana co-founder and CEO Sami Alhelwah said in the press release.

PROJECTS-

Oman taps a consortium of consultants for master plan of Salalah Smart City: A consortium of international consultants, including F&M Middle East, London-based Cundall, and Milan-based MIC-HUB, has been appointed by Oman’s Housing Ministry to design the master plan for the Salalah Smart City project, Muscat Daily reports. The city's mobility plan will focus on two main areas: macro infrastructure and landscape reconfiguration. The plan aims to minimize emissions by promoting soft mobility and an integrated public transport network. In a bid to reduce car use, the city will enhance existing services to increase transit and mobility services and promote shared and micro mobility. The plan also includes integrating driverless vehicles to reduce road congestion.

ALSO WORTH KNOWING-

Qatar’s Hamad International Airport is teaming up with Dell for its PowerEdge servers as it proceeds the second phase of its expansion plan. The airport aims to introduce IT solutions that can handle high-volume workloads in order to address growing passenger, aircraft, and cargo demands. (Statement)
Saudi flag carrier Saudia adds flights to Europe + Asia: Saudia plans to operate 56 additional weekly flights to 14 destinations across Asia and Europe by mid-2023. (Gulf Business)
Bunkering specialist Peninsula has added a new USD 14 mn tanker to its fleet to bolster its operations in Fujairah, marking its fourth supply tanker in the region. (Statement)
Azerbaijan and UAE’s AD Ports Group discussed prospects for cooperation in trade and investment, Azerbaijan State News Agency reports. AD Ports Group’s Managing Director and CEO Mohamed Juma Al Shamisi spoke with Azerbaijan’s Economy Minister Mikayil Jabbarov about potentially cooperating on projects in the Caspian Sea basin.

China gets new shipping line connecting it to Europe

South Korean shipping company HMMhas launched a new line connecting China’s Tianjin port with Europe, Chinese state-run news agency Xinhua reports. HMM will assign 12 ultra-large 24k TEU vessels into weekly service along the route, which will link China’s industrial hub in Tianjin with major European ports, including Algeciras in Spain, Rotterdam in the Netherlands, Hamburg in Germany and Antwerp in Belgium. China-made products can reach Europe 15% faster on this route, which should save logistics costs for customers, Xinhua quoted HMM chairman Lee Joo-myung as saying.

Ocean Network Express launches carbon emissions calculator for its vessels

ONE launches ONE Eco Calculator to measure its CO2 emissions: Japanese container shipping company Ocean Network Express (ONE) has launched a tool that measures carbon emissions generated by its vessels, according to a pressrelease(pdf). The calculator offers two distinct measurements: Tank-to-Wake — which measures emissions generated by burning fuel stored in the vessels’ tanks — and Well-to-Wake — which measures emissions produced through fuel production, delivery, and use aboard the vessels.

How it works: The tool calculates the total distance traveled and CO2 emissions generated between the place of receipt and the place of delivery, including door locations.

Intended for more than just ONE's use: “The ONE Eco Calculator was developed not only for ourselves, but also for like-minded players and customers seeking sustainable transport solutions and seeking to manage their own cargo emissions,” said Senior Vice President of ONE’s Corporate Strategy and Sustainability Department Koshiro Wake.

Calendar

APRIL

16 April (Sunday): Qatar’s Nakilat releases their 1Q 2023 financial results.

18-20 April (Tuesday-Thursday): Intermodal Africa, Durban International Convention Centre, South Africa.

25-27 April (Saturday-Monday): World Cargo Symposium, Hilton Istanbul Bomonti Hotel and Conference Centre, Istanbul, Turkey.

MAY

May: The Suez Canal Economic Zone (SCZone) plans to handover a new 1k-meter container berth to the East Port Said Port.

1-4 May (Monday - Thursday): Select USA Investment Summit, National Harbor, Maryland, USA.

4 May (Thursday): Deadline to submit proposals for the design, construction, finance, operation, and maintenance of the Salalah-Thamrait trucking road in Oman.

9-11 May (Tuesday-Thursday): Airport Show, Sheikh Saeed Halls 1-2, DWTC, Dubai.

9-12 May (Tuesday-Friday): Transport Logistic, Trade Fair Center Messe München, Munich, Germany.

10-12 May (Wednesday-Friday): The African Aviation Summit: Air Finance Africa Conference & Exhibition, Sandton Convention Centre, Johannesburg, South Africa.

15 May (Monday): Exports + FDI Forum, Four Seasons Hotel Cairo at Nile Plaza, Cairo, Egypt.

15-16 May (Monday-Tuesday): Middle East Rail, Abu Dhabi National Exhibition Centre, Abu Dhabi.

15-16 May (Monday-Tuesday): Mobility Live Middle East, Abu Dhabi National Exhibition Centre, Abu Dhabi.

15-17 May (Monday-Wednesday): Global Fleet Conference, Cascais, Portugal.

16-17 May (Tuesday-Wednesday): Africa Forum of Investment and Commerce, Sheraton Hotel, Algiers, Algeria.

16-18 May (Saturday-Monday): Baltic and Black Sea Ports & Shipping, Radisson Hotel & Suites, Gdansk, Poland.

16-18 May (Saturday-Monday): Seatrade Maritime Logistics Middle East, Dubai, UAE.

16-18 May (Saturday-Monday): IATA Ground Handling Conference, Abu Dhabi National Exhibition Center, Abu Dhabi.

18 May (Monday): UN-Turkey-Russia Black Sea grain agreement extension expires.

24 May (Friday): Fleet and Mobility Summit, Dubai.

29-31 May (Monday-Wednesday): Translogistica Libya 2023, Misurata, Libya.

JUNE

June: Suez Canal Economic Zone holds a roadshow in Delhi.

6-7 June (Tuesday-Wednesday): Ports and Customs Week, Cape Town, South Africa.

JULY

1 July (Saturday): A new greenfield liquid bulk terminal in Khalifa Port Abu Dhabi will kick off operations.

16-17 July (Thursday-Friday): The Levitate Conference and Exhibition, St. Regis Amman Hotel.

24-25 July (Monday-Tuesday): ICSG Istanbul, Istanbul Lutfi Kirdar Convention & Exhibition Centre, Istanbul.

SEPTEMBER

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

OCTOBER

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

EVENTS WITH NO SET DATE

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

2024

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

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

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.

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