Xpro India setting up global manufacturing unit in UAE’s Ras Al Khaimah

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What we're tracking today

TODAY: DP World inches closer to Sapangar port JV + Maersk CEO sees persistent challenges for supply chains

Good morning, ladies and gentlemen. We’re heading into the weekend with a small handful of stories worth diving into, including developments on DP World’s planned development of Malaysia’s Sapangar Port. Let’s jump right in.

WATCH THIS SPACE-

#1- Iraq is inviting international private companies to submit their bids to expand and operate Baghdad’s International Airport, setting the deadline for submitting offers on 12 September, AFP reports, citing documents it has seen. The country will choose a private partner to “rehabilitate, expand, finance, operate, and maintain” the airport under a long-term PPP contract through a two-stage public tender, the newswire says. The project will be completed in partnership with the International Finance Corporation, which inked an agreement last year to become its lead transaction advisor on the public-private partnership to rehabilitate the airport.

Supply chains will continue to face challenges as tensions in the Red Sea extend into 3Q, shipping giant Maersk CEO Vincent Clerc warned in a statement. “We are going to have in the coming month missing positions or ships that are sailing that are significant different size from what we normally would have on that string, which will also imply reduced ability for us to carry all the demand that there is,” Clerc said. Maersk is deploying all vessels that can sail, including redeploying those that were previously not well utilized, to plug holes in the network.

German logistics systems manufacturer Beumer Group is looking to expand into the UAE and the wider region by establishing a base in the Dubai Integrated Economic Zone’s (DIZ) Dubai CommerCity, CEO Torben Busch told Albayan. “The group’s goal is not limited to expansion across the region, we also seek innovation, and at the same time we are keen to consolidate our existing relationships with our customers and partners in the region,” Busch told the news outlet. The firm looks to leverage DIZ’s strategic location to streamline its commercial operations and logistics services.

MARKET WATCH-

Baltic index down as capesize continues decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2.6% to 1,942, weighed out by a three-week low in capesize rates, Reuters reports. Capesize dipped 5% to 3,099 points, while the panamax segment rose 0.7% to 1,713 points. The smaller supramax index inched down 0.2% to 1,366 points.

Oil prices stabilized on Wednesday amid a drop in US oil stockpiles and a weaker USD that overshadowed signs of low economic growth in China, Reuters reports. Brent crude futures inched up 1.6% to USD 85.08 / bbl, while US West Texas Intermediate rose 2.6% to USD 82.58.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.

Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

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

Xpro India Limited to open global manufacturing unit in Ras Al Khaimah

Rakez to host Xpro India’s first global manufacturing unit: India-based conglomerate Birla’s dielectric film producer Xpro India Limited will develop a AED 100 mn global manufacturing unit in the UAE’s Ras Al Khaimah Economic Zone (Rakez), slated for operation in 2Q 2025, according to a statement. The project, Xpro Dielectric Films, will be the firm's first global manufacturing unit.

Details: The facility will use state-of-the-art machinery on site to produce 4.5k tons of dielectric films per year, according to the statement. The AED 100 mn investment “will account for around 33% of the total capacity under Xpro’s umbrella.”

A regional hub: The firm looks to leverage Ras Al Khaimah’s strategic position as a global logistics hub to supply Xpro’s products to markets in the US, Europe, and East Asia, with Xpro’s India-based manufacturing units meeting around a third of the domestic demand in the country. The firm selected Ras Al Khaimah for this expansion due to its “welcoming and forward-looking business climate, proximity to efficient transport hubs, and advanced infrastructure,” said Xpro Chairman Sidharth Birla.

What they said: “The UAE’s Comprehensive Economic Partnership Agreement (CEPA) and its extensive network of FreeTrade Agreements (FTAs) are additional factors, allowing a unique opportunity to tap into new markets and expand our presence and market reach more effectively,” Birla explained.

REMEMBER- A meeting of the UAE-India High Level Joint Task Force on Investments back in October saw officials from the two countries discuss the Abu Dhabi-India Virtual Trade Corridor, which seeks to boost trade volumes by creating data exchange systems that streamline paperless trade between the two nations.

India has been eyeing expansion in Rakez: Rakez inked an MoU earlier this week with the All India Association of Industries to develop a platform to attract Indian enterprises to Ras Al Khaimah. Rakez also inked an MoU with the Indian Chamber of Commerce to boost business ties between the UAE and India last month.

About Rakez: Rakez, one of the UAE’s biggest economic zones, hosts over 23k SMEs, industrialists, and startups, according to their website.

DP World to enter JV for Sapangar Bay Container Port development this month?

DP World is set to finalize a JV with Malaysia’s Suria Capital this month for the development of the Sapangar port, The Edge Malaysia reports. The JV — dubbed DPW Sabah — will work to establish Sapangar Bay Container Port (SBCP) as a regional trade hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA).

About the JV: Indonesian port operator Suria Capital previously signed a conditional share subscription agreement with DP World to hand it a 51% stake in a JV. The remaining 49% would be given to Sabah Ports. The Sabah Ports Authority would then issue DP World Sabah the license to operate and manage the container port. DP World would co-manage SBSCP.

Where we’re at: Negotiations are still ongoing between DP World and the Sabah government on payment terms, including the split of proceeds from the port’s development, Managing Director of Suria Capital Datuk Ng Kiat Min told The Edge. The JV is also subject to a review of port tariffs, which the Edge says have not been changed for 35 years.

What’s next? Once terms are agreed, Suria Capital will enter discussions to extend the length of its concession agreement at the port for a further 30 years to 2064, the Edge reported previously.

A boon for DP World: The JV could potentially bring to DP world MYR mns for DP World within the next 10 years. The partnership is set to boost cargo volumes, which are “easily worth MYR 1 bn in value creation,” Min Ng said.

REFRESHER- DP World inked an agreement with Malaysia’s Sabah Ports to jointly manage SBSCP back in May. The agreement will see DP World support efforts to boost SBCP’s container handling capacity from 500k TEUs to 1.25 mn TEUs by 2025. The pair will also invest in improvement to SBCP’s cold chain storage and transport capabilities to increase the export of Sabah’s agricultural products to international markets opening growth pathways.

Background: The latest partnership builds upon a long-term collaboration agreement inked by DP World and Sabah Ports in 2019, where both parties agreed to co-develop solutions to boost SBCP’s competitiveness. Long term, the partnership looks to boost land and sea connectivity in Sabah, curb transit times and costs, and improve standards across Sabah’s supply chains.

Almajdouie Logistics to set up JV with CEVA Logistics in Saudi Arabia

Almajdouie links up with CEVA to form logistics JV: Saudi Arabia’s Almajdouie Logistics is forming a joint venture (JV) with France-based CMA CGM’s logistics arm CEVA Logistics to boost logistic services in the Kingdom, according to a statement. No investment ticket or timeline for the JV were specified. CEVA Logistics will hold majority control over the JV, though the exact ownership split has not been disclosed.

Details: The JV will add around 2k jobs in Saudi Arabia and maintain a local fleet of over 2k assets. Almajdouie will leverage CEVA's expansive global logistics network to offer end-to-end integrated logistics solutions to its growing international customer base, says the statement. CEVA will use Almajdouies’ strong domestic network to expand its presence in the Kingdom and the region. The new venture will offer its services to a variety of sector subsects including e-commerce, retail, automotive, and energy industries.

What they said: The partnership will “strengthen our competitive advantage and offer an integrated and comprehensive suite of logistics services enabling us to capitalize on the opportunities presented by the Kingdom's vibrant and rapidly evolving business landscape,” Almajdouie CEO Mohammed Almajdouie said in the statement.

Not CMA CGM’s first venture in KSA: Saudi Ports Authority (Mawani) and CMA CGM began construction in November on their new SAR 487 mn integrated logistics area in Jeddah Islamic Port. The authority inked the agreement with the new logistics area — which is set to span over 130k square — meters back in 2022. The project is slated for completion in 1Q 2025.

About Almajdouie Logistics: The firm, headquartered in Dammam, offers a variety of services including freight forwarding, terminal handling, automotive logistics, and warehousing, according to their website. Almajdouie has 1.2 mn sqm of warehousing and terminal capacity in the Kingdom.

Morocco and Guinea-Bissau ink agreements for trade facilitation

Morocco + Guinea-Bissau sign logistics agreements: Morocco inked several cooperation agreements with Guinea-Bissau in several domains including customs, transport, and trade facilitation, according to a statement. The agreements include a framework for mutual administrative assistance in customs matters as well as one for the land transport of passengers and goods.

Cargo, aviation and trade updates from the UAE and Qatar

CARGO-

Dubai South + Evocargo run trial for autonomous electric trucks: Dubai South carried out the first stage of trials for autonomous electric trucks in the UAE’s Dubai South Logistics District in partnership with UAE-based Evocargo, according to a statement. The trial included checks for hardware, software, and reliability of the electric truck. The unmanned electric vehicle — Evocargo N1 — navigated a predefined route and was tested with other road participants including automobiles, trucks, pedestrians, and emergency stops to measure its object detention, accident prevention, and collision avoidance.

AVIATION-

Ooredoo + Cisco + Qatar Airways partner on digital transformation: Qatari telecoms company Ooredoo has partnered with Cisco to support Qatar Airways’ hybrid cloud transformation, according to a press release. The agreement aims to integrate innovative networking, security, and cloud technologies into Qatar Airways’ IT infrastructure. Cisco and Ooredoo will cooperate with the airline to migrate their data center into the cloud as well as tailor a hybrid cloud environment to help improve operational efficiency and scalability.

LOGISTICS HANDLING-

Kaden + DB Schenker to partner on Saudi logistics: Riyadh-based real estate firm Kaden has signed an agreement with German logistics giant DB Schenker to expand logistics services across the Saudi market, Argaam reported. The agreement aims to develop state-of-the-art logistics facilities and custom-designed warehouses to meet DB Schenker’s operational needs.

OTHER STORIES WORTH KNOWING THIS MORNING-

Air India Express adds new routes to Kuwait: Air India Express has launched direct flights to Kuwait from Mangaluru and Mumbai. (Economic Times)

EU governments split over Chinese EV decision

EU governments were divided over tariffs on Chinese e-vehicles in a non-binding vote at the European Commission, Reuters reported, citing sources familiar with the matter. A dozen EU members voted in support of the tariffs, four voted against, and 11 abstained, the source said. The EU Commission is expected to consider this vote when deciding whether to proceed with definitive duties in what is the EU's most prominent trade case to date. The Commission, if it proposes duties at the conclusion of its investigation, will submit them to a binding vote among EU members. They would be implemented unless a qualified majority of 15 member countries, representing 65% of the EU population, vote against them.

Who did what? France, Italy, and Spain supported the tariffs, while Germany, FInland, and Sweden abstained. Germany’s abstention was in “critical solidarity” with the Commission, according to one source, while Finland had doubts about whether it was in the EU’s interests to impose the tariffs given that not all European car manufacturers favored the measures. German automakers — which made a third of their sales in China in 2023 — have urged the EU to drop the tariffs, which not only impact Chinese producers, but also China-built cars by Western automakers.

REMEMBER- The European Commission has told automakers it will begin imposing additional tariffs on Chinese EVs from July to protect its local automotive industry. On top of the preexisting 10%, the duties will stand at 17.4% for BYD, 20% for Geely, and 38.1% for SAIC. Companies such as Tesla and BMW that produce vehicles in China, but were “cooperative” during the investigation, will be hit with a 21% tariff. The tariffs follow similar protectionist moves by the US, which quadrupled duties on Chinese EVs last month to 100%.

Calendar

AUGUST

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai, UAE.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

3-5 September (Tuesday-Thursday): Egypt International Airshow, El Alamein, Egypt.

10-11 September (Tuesday-Wednesday): SkyMove MENA, Riyadh, Saudi Arabia.

12 September (Wednesday): Deadline for companies to submit bids for expansion and operation of Baghdad’s International Airport.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition (AICE) , Dubai, UAE.

23-26 September (Monday-Thursday): Freight Summit 15th Global Conference, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

30 September - 2 October (Monday-Wednesday): African, Middle East & Islamic Finance Aviation 100 Awards, Dubai, UAE.

OCTOBER

6-8 October (Sunday-Tuesday): Routes World 2024, Bahrain.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi, UAE.

7-9 October (Monday-Wednesday): AFSIC – Investing in Africa, London, UK.

8-10 October (Tuesday-Thursday): AntwerpXL Expo, Antwerp, Belgium.

13 October (Sunday): International Transport Workers’ Federation (ITF) Congress, Marrakesh, Morocco.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah, Saudi Arabia.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh, Saudi Arabia.

22-24 October (Tuesday-Thursday): Asean Ports and Logistics, Johor, Malaysia.

22-24 October (Tuesday-Thursday): Global Ports Forum, Singapore.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai, UAE.

NOVEMBER

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh, Saudi Arabia.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

13-15 November (Wednesday-Friday): The Bahrain International Airshow, Sakhir Airbase, Bahrain.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Damman, Saudi Arabia.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

18-19 November (Monday-Tuesday): G20 Summit, Rio de Janeiro, Brazil.

20-21 November (Wednesday-Thursday): Saudi Rail Exhibition, Riyadh, Saudi Arabia.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

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

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

EVENTS WITH NO SET DATE

IATA Annual General Meeting (AGM) and World Air Transport Summit, New Delhi, India.

1H 2024: Civil Construction subcontracts for construction firms in Oman for implementation of the Abu Dhabi - Suhar rail link to be announced.

2H 2024: Bahri’s barges for Saline Water Conversion Corporation (SWCC) to begin initial and commercial operation.

King Salman Energy Park is set to become operational.

The Cross-Border Digital Trade Forum, Dubai.

2025

FEBRUARY

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

APRIL

16-17 April: Global Ports Forum, Dubai, UAE.

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 twoof 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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