US-based Ronn to produce hydrogen trucks in Saudi as part of USD 4 bn e-mobility investment push

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What we're tracking today

TODAY: Ronn to produce hydrogen trucks in KSA + DAE finalizes acquisition of Nordic Aviation Capital

Good morning, folks. We’re heading into the weekend with another brisk read. Still, we have a few big updates on investments, acquisitions, and port moves by major industry players from across the region. Shall we?

WATCH THIS SPACE-

#1- US, Houthis reach ceasefire agreement: US President Donald Trump has announced that airstrikes on Houthi-controlled areas in Yemen will cease in exchange for the Yemeni group’s vow to stop attacking US shipping vessels in the region, Reuters reports. The agreement was brokered by Oman, whose Foreign Ministry announced the ceasefire shortly after Trump’s remarks on Tuesday, Reuters said in a separate report.

Israel isn’t part of the agreement: The statements from Washington and Oman did not mention whether the Houthis had agreed to stop attacks on Israel over its war in Gaza, and the head of the Houthi Supreme Political Council Mahdi Al Mashat has indicated that the attacks on Israel will persist. Israel bombed Yemen’s sea and airport infrastructure earlier this week.

REFRESHER- Hopes for a return to business as usual in the Red Sea shipping route were dashed after Israel backed out from advancing its ceasefire agreement in Gaza earlier this year, prompting Yemen’s Houthi to resume its attacks in the maritime route.

#2- Twenty French aviation companies are coming to Saudi to explore investment opportunities and partnerships next week, Al-Eqtisadiah reported, citing French Embassy-affiliated Business France. The companies will explore investments in airports and the maintenance, repair, and overhaul (MROs) sectors, and some are set to follow up on exploratory investment agreements that they previously signed with the Kingdom, Al-Eqtisadiah reported.

IN CONTEXT- The initiative comes amid rising French investment in the country, which has exceeded EUR 17 bn in 2024, positioning France as the Kingdom’s second-largest investor. Currently, 350 French companies operate in Saudi Arabia, including 170 with permanent presence.

#3- EU eyes sanctions on Russian Lukoil’s Dubai unit: The European Union is considering blacklisting Litasco Middle East DMCC — the Dubai-based trading arm of Russian oil giant Lukoil — for allegedly helping facilitate Moscow’s shadow fleet operations, Bloomberg reports, citing documents it has seen. If approved, the proposed sanctions — which still need unanimous approval from all EU member states — could have knock-on effects on European shipowners carrying Russian supplies.

More details: The designation is part of the EU’s proposed 17th sanctions package attempting to pressure the Russian economy through sanctions on its energy revenue streams. The package will target around 150 vessels, 60 individuals, and major Russian oil exporters including Surgutneftegas, as well as several Chinese firms allegedly supplying Russia’s military industry.

IN OTHER NEWS FROM THE BLOC- The EU is planning to hit Boeing aircraft with tariffs should trade negotiations with the US fail, Bloomberg reports. The potential retaliatory levies would be part of a planned tariff round on US goods amounting to EUR 100 mn (c. USD 114 mn), with a long list of goods that will be determined as consultations continue.

What led up to this? The US slapped the EU with a 20% tariff on all incoming goods earlier this year, along with a 25% duty on steel and aluminum imports. In March, the bloc opted for “strong but proportionate” retaliation, with levies on up to EUR 26 bn (USD 28 bn) of US goods starting April 2025.

MARKET WATCH-

#1- Oil prices were steady in the early morning amid uncertainty over the fate of US-China trade negotiations, Reuters reports. Brent crude futures were unchanged at USD 61.12 a barrel, while the US West Texas Intermediate (WTI) edged up by USD 0.06 to reach USD 58.12 a barrel by 00.58 GMT. Both futures fell about 1.7% yesterday, Wednesday.

#2- Baltic index on a downward spiral: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 32 points to 1,374 on Wednesday. The capesize dipped 102 points to 1,935, while the panamax gained two points to 1,362. The smaller supramax index rose four points to 961.

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CIRCLE YOUR CALENDAR-

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.

KSA taps US-based Ronn for hydrogen vehicle production in USD 4 bn agreement

Ronn to establish a hydrogen truck factory: US-based Hydrogen automaker Ronn approved a three-year contingency framework to set up a USD 4 bn hydrogen vehicles production JV in Saudi Arabia, according to a press release. The framework would see Ronn establish two facilities in Saudi Arabia to produce 10k hydrogen-electric trucks, along with 1k Ronn Phoenix sport vehicles.

What else do we know? The technical details of the production plants were not disclosed, but Ronn said more details will be announced as more project phases are approved. Engineering plans will be developed in the US and training programs will run for Saudi engineers.

Not a first for Saudi: Chinese automaker Hyperview Mobility is also planning to establish the Kingdom’s first hydrogen-powered truck factory under an MoU signed in February with the Public Investment Fund. The project will kick off with a USD 50 mn investment for its initial phase and looks to produce 1k hydrogen trucks annually, with 60% of the output earmarked for export. 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).

Against the tide: The big push in Saudi comes despite the global headwinds facing the green trucking sector, which saw at least six Western startups go bust over the last seven months, including US-based Nikola and Hyzon Motors and EU-based Hyvia and Quantron, in addition to electric truck and bus makers Arrival and Proterra. Tepid demand, high hydrogen prices, and lackluster infrastructure are among the major challenges facing the industry.

About the company: Ronn designs passenger and commercial vehicles and urban logistics trucks in partnership with manufacturing and engineering firms like Roush and Magna Styer, according to its website. The company is also working on launching strategic frameworks for hydrogen infrastructure in a few regions in cooperation with the contractor firm BayoTech.

DAE boosts fleet with acquisition of Nordic Aviation Capital

DAE takes over Nordic Aviation Capital: Dubai Aerospace Enterprise (DAE) has finalized its full acquisition of Ireland-based Nordic Aviation Capital (NAC) for an enterprise value of USD 2 bn, according to statements here and here.

REMEMBER- DAE inked a definitive agreement earlier this year to acquire 100% of NAC for an undisclosed amount. DAE is bankrolling the latest transaction using a mix of internal resources and committed debt financing.

What DAE is getting: NAC’s fleet comprises 252 assets as of September last year, leased to about 60 airlines in 40 countries. NAC’s regional turboprop and jet assets will join DAE’s fleet to bring its total fleet size to about 750 aircraft worth USD 22 bn — leased to 170 airlines in 70 countries.

ADVISORS- Allen Overy Shearman Sterling and KPMG advised DAE on the transaction.

DAE’s been expanding: DAE inked a definitive agreement with Dublin-based mid-to-end-of-life aviation investor K2 Aviation to sell seven Airbus and Boeing aircraft on a leasing contract to six undisclosed airlines earlier in January. The firm also acquired 17 used aircraft for USD 1 bn in March.

On the flip side: DAE is reportedly mulling over the sale of its Jordan-based maintenance, repair, and overhaul (MRO) unit Joramco. The firm is reportedly tapping Morgan Stanley for the possible sale, which could see it divest its entire 80% stake in the company. Royal Jordanian Airlines currently holds the remaining 20%.

IN OTHER REGIONAL M&A NEWS-

Uber to buy into Turkey’s Trendyol: Uber reached an agreement to acquire an 85% stake in the Turkish e-commerce platform Trendyol Go, Reuters reports. The transaction — set to cost Uber USD 700 mn — comes as the US-based ride-hailing firm works on diversifying its operations abroad amid market saturation at home. The transaction is expected to close in 2H 2025.

What does it mean for Trendyol? Trendyol Go — which is fully owned by China’s e-commerce giant Alibaba — will continue to operate independently, while Uber will start planning how to integrate features from its food delivery arm Uber Eats into Trendyol.

A boon for Uber: The acquisition will give Uber control of the Turkish platform’s operations that cover meals and grocery deliveries from over 900k restaurants and markets through 19k couriers. Trendyol Go’s handled orders value grew by over 50% y-o-t in 2024, garnering about USD 2 bn in orders for 200 mn deliveries.

Jafza to invest AED 8.5 bn in expanding logistics infrastructure

Jafza earmarks AED 8.5 bn for infrastructure revamp: DP World’s Jebel Ali FreeZone (Jafza) is set to plug nearly AED 8.5 bn over the next three years in a bid to bolster infrastructure in the zone, COO Abdullah Al Hashemi told local news outlet Al Khaleej. The projects will be financed through Jafza’s internal portfolio, in addition to DP World-approved agreements inked with private sector players, Al Hashemi said.

The investment breakdown:

AED 3.5 bn will be invested into new logistics equipment and facilities;
AED 1 bn will go towards upgrading and expanding infrastructure in the zone;
AED 4.1 bn is earmarked for the development of specialized markets – including Bharat Mart for Indian traders and Turk Mart for Turkish traders.

We know Jafza’s been in investment mode for a while: The freezone allocated some AED 90 mn into the second phase of its logistics park in March, adding some 360k sq ft of Grade-A facilities to the plot and bringing the total area of the park to 922k sq ft. The second phase of the park will include loading docks, temperature-controlled warehouses, offices, customizable units, and ramped-up power capacity to support the surge in sites.

…for good reason: Jafza’s rents increased 28% y-o-y in 2024 on the back of strong demand in Dubai from manufacturing, e-commerce, and third-party logistics players. Jafza’s phase one units were all snapped up before the site was even completed in late 2023. The zone is home to over 10k global firms, and just this year alone saw the likes of German technology company Allied Heat Exchange AG (A-Heat), Indian food giant Haldiram, and Local argo-commodity supplier Spring Valley plan to set up shop.

Morocco’s Tanger Med and Liberia ink port modernization agreement

Liberia taps Morocco for port modernization: Tanger Med Engineering, a subsidiary of state-owned Moroccan firm Tanger Med, has inked an agreement with Liberia’s National Port Authority (NPA) to modernize the infrastructure and bureaucracy in Port of Monrovia and the Port of Buchanan, Liberian Observer reports. The investment ticket and the timeline of the project have not been disclosed.

The scope: The agreement aims to modernize the ports’ container terminals, cargo berths, and warehousing zones. The move looks to increase trade volumes, improve efficiency, boost port capacity to accommodate larger vessels, enhance digital integration, and utilize sustainable energy sources, the news outlet adds.

Make it competitive: It will also increase the ports’ competitiveness on a global scale and among West Africa’s major ports — including Ghana, Senegal, Côte d’Ivoire, and Nigeria — as well as position Liberia as a maritime gateway for landlocked Mali and Guinea, KMTV Liberia reports.

Morocco’s shown interest in Liberian ports before: Marsa Maroc signed an MoU in November 2024 with Liberia’s NPA to explore modernizing the country’s main ports. The final agreement was set to include the construction of a new multipurpose terminal at Liberia’s Port of Monrovia under a private-public partnership and the modernization of the Port of Buchanan via the development of a multifunctional terminal to improve efficiency and port throughput.

Morocco💙African ports: Marsa Maroc obtained a license in January to establish its subsidiary Marsa Maroc International Logistics to manage investments and operate new ports in East and West Africa. The port operator will invest an undisclosed amount in Damerjog Oil FZE, which is planning to build an oil and gas port on Djibouti’s Gulf of Aden coast. The subsidiary has also created Marsa Benin to operate terminals 1 and 5 at Benin’s port of Cotonou in West Africa.

Updates on startups, shipping, projects, and aviation from across the region

STORAGE + WAREHOUSES-

DP World has expanded into Singapore with its first logistics asset in the country, the company said in a press release. The 13k sqm multi-bonder warehouse is located at the Mapletree Benoi Logistics Hub and brings the company’s total warehousing space in Asia to over 800k sqm.

REMEMBER- Earlier this week, DP World and Asia Terminals Inc. completed a USD 100 mn project to expand the Philippines’ Manila South Harbor.

STARTUP WATCH-

Bokra grants credit line to iSupply: Pharma distribution startup iSupply secured USD 3 mn in shariah-compliant financing from fintech Bokra, according to a press release (pdf). iSupply will use the fresh funds — which is structured as a revenue-based revolving facility — to scale up its operations locally and strengthen its medical supply chain.

SOUND SMART- A revenue-based revolving financing is a flexible credit line repaid as a percentage of future revenues, allowing funds to be reborrowed once repaid.

SHIPPING + MARITIME-

#1- Oman’s Asyad Group has launched a tender for consultants to conduct a feasibility study for the expansion of the Asyad Drydock at Duqm port, according to a statement. The study aims to assess the berth arrangement and dock options and will cover economic feasibility, revenue generation, environmental impact, operational efficiency, and any necessary engineering works. Interested parties can procure the application documents up until 19 May, while the bid submission should be filed by 27 May.

Asyad Group is on feasibility tenders roll: Asyad received four bids to conduct a feasibility study evaluating Oman’s logistics supply chain readiness for the firm’s planned green hydrogen projects.

#2- Shanghai-based Cosco Shipping Lines has launched a new regional subsidiary — Cosco Shipping Lines Saudi Arabia — in collaboration with Saudi Ports Authority (Mawani), according to a statement published last week. The new subsidiary will be based in Dammam and comes as Cosco works to solidify its presence in the region, marking the Kingdom as an operational hub, Xinde Marine News reported last week. The firm is also looking to establish its assets at Jeddah Islamic Port and support Jubail Industrial City’s rail terminal project.

A strategic move for Cosco: The US tariffs on Chinese goods and China-built vessels are expected to have a sizable impact on global shipping — with container shipping volumes expected to drop by 1.5-2% in 2025. Cosco Shipping is especially vulnerable due to its mix of Chinese-built vessels, with its profits forecasted to slip by over 50% this year after more than doubling last year — while Japanese and Taiwanese liners are set to benefit.

AVIATION-

Morocco has issued two expressions of interest (EOIs) for a new terminal at Casablanca’s largest airport, Reuters reports. The expansion — scheduled for completion in 2029 — will increase capacity at the airport by 20 mn and cost USD 1.6 bn, ONDA said in a statement. Moroccan construction firm STAM was awarded a MAD 294 mn contract for the first phase of construction of the new terminal at Mohammed V International Airport in Casablanca.

REMEMBER- Morocco has reportedly been working on a new airport development in Casablanca that would accommodate about 40 mn passengers. The exact scope and the investment ticket for the new project are still unclear, with some reports citing a USD 3 bn figure and others mentioning a USD 1.6 bn ticket.

PROJECTS-

Turk Mart to follow Bharat Mart: DP World is currently developing a market for Turkish traders — Turk Mart — which will be built on Sheikh Mohammed bin Zayed Road adjacent to Dubai’s Expo City, CEO and managing director Abdulla bin Damithan told Khaleej Times. The Turkish market takes inspiration from the upcoming market for Indian traders, Bharat Mart, which is poised to be operational by 2026 and slated to operate at full capacity by 2027. The two markets will be located alongside the Yiwu Market — a 200k sqm site designated for Chinese traders composed of 1.6k showrooms, open since 2022.

Background: Dubai-based port operator DP World kickstarted the development of Bharat Mart — a warehousing and trading hub designed for Indian MSMEs — in April.

Most shipbuilders are safe amidst Trump’s trade war — except the Chinese

South Korean and Japanese shipbuilders are poised to emerge as the biggest winners from Trump’s attempted crackdown on China’s shipbuilding industry, the Economist reported. Rather than reviving the ailing US shipbuilding industry, the levies imposed on China-built vessels would likely shift the market share away from China to markets that already have the production capacity, such as South Korea and Japan — which both accounted for half of the global merchant-fleet tonnage in the late 2000s and about third as of 2024, the Economist reported, citing data from shipping consultancy firm Clarksons.

REMEMBER- The US introduced levies on all China-built and China-flagged vessels last month. The levies impose on non-Chinese operators a USD 2 mn fee per American voyage for a big container ship and USD 3.5 mn for a supertanker, while Chinese operators will be charged triple the fees.

Rainbows and butterflies for South Korean firms: South Korea’s Shipbuilding giants Hanwha Ocean and HD Hyundai are already firing on all cylinders. For example, Hanwha’s revenues for 1Q 2025 increased 38% y-o-y to 2.2 bn, while their operating net income nearly quintupled.

Make American shipbuilding great again? Not quite. The US produces just 0.1% of the world’s merchant vessels — down from 5% over 50 years ago — indicating that there are hardly any supply chains or shipyards except a few naval facilities. Shippers are also less likely to turn to the US for new orders given its weak pool of skilled labor and high production costs, with South Korea being a more obvious choice at a sixth of the US price.

Calendar

MAY

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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