{"id":80068,"date":"2024-07-31T00:00:00","date_gmt":"2024-07-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/07\/31\/today-mubadala-lines-up-port-sale-dp-world-vs-djibouti-continues\/"},"modified":"2024-07-31T00:00:00","modified_gmt":"2024-07-31T00:00:00","slug":"today-mubadala-lines-up-port-sale-dp-world-vs-djibouti-continues","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/07\/31\/today-mubadala-lines-up-port-sale-dp-world-vs-djibouti-continues\/","title":{"rendered":"TODAY: Mubadala lines up port sale + DP World vs Djibouti continues"},"content":{"rendered":"

Good morning, friends. <\/strong>We have a fairly meaty issue this morning with lots of ground to cover in all things ports, trucks, and legal squabbles. Let\u2019s get the ball rolling with the latest on the high seas\u2026<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Is <\/strong>Turkey cooking up a new emissions trading scheme? <\/strong>Turkey is looking to implement its own emissions trading scheme (ETS) for shipping in a bid to comply with international standards and environmental regulations<\/a>, Splash News<\/a> reports. The Turkish ETS aligns with the EU ETS adopted back in January<\/a>. Turkey\u2019s transshipment traffic saw a 54% y-o-y increase to 1.2 mn TEUs between January and May, with EU nations accounting for 28% of the traffic at 340k TEUs, leading to speculation that carriers are passing through Turkey to avoid the EU\u2019s ETS, the Maritime Executive<\/a> reports.<\/p>\n

REFRESHER- <\/strong>The EU\u2019s ETS<\/a> requires vessels visiting EU ports to offset their CO2 emissions through the purchase of allowances. The regulation applies to vessels with a 5k gross tonnage and above and covers 50% of emissions for voyages starting or ending outside the EU, and 100% of emissions for voyages between EU ports.<\/p>\n

<\/a> #2- Egypt eyes USD 1.2 bn worth of private investments for logistics projects: <\/strong>The Egyptian Transport Ministry wants to attract some USD 1.2 bn in private investment to carry out seven strategic projects to build new dry ports, expand maritime capabilities, and improve logistics centers across the country, Al Mal<\/a> reports, citing a government document it has reportedly seen. The ministry aims to tap both domestic and international companies to implement these projects, which include a USD 530 mn logistics center and land port in Sixth of October City and a USD 160 mn dry port in Sadat City, as well as a port in New Fayoum, dry ports in South Sinai and New Sohag, and sea berths in Sokhna Port and Tewfik Port. <\/p>\n

Part of a bigger plan: <\/strong>The newly appointed Egyptian cabinet has big plans for the country\u2019s ports \u2014 it wants to set up 31 new dry ports and logistics zones during the coming three years. Check the new government\u2019s ambitions for transport and logistics infrastructure in EnterpriseAM Egypt\u2019s deep dive here<\/a>. <\/p>\n

#3- <\/strong>Qatar Airways is looking to make its freighter network more responsive to market <\/strong>changes <\/strong>in efforts to boost its bottom line, Chief Cargo Officer Mark Drusch told Air Cargo News<\/a>. \u201c[The cargo market] swings much more quickly [than passenger],\u201d yet cargo networks are yet to respond to how rapidly the market shifts, Drusch said. \u201cI think that\u2019s something that we can also teach the cargo side of the world \u2013 that you can move your assets around to respond to peaks in demand in one region and reductions in demand in another faster than the passenger side can.\u201d<\/p>\n

Where is it focusing?<\/strong> The carrier is looking to refocus its freighter capacity away from the Americas and provide more services to Asia and India, with some capacity also added to Europe, Drusch said. Asian markets are booming at a rate the market is struggling to keep up with, with limited capacity to expand for ground handlers, slot restraints, and strained human resources.<\/p>\n

<\/a>#4- The <\/strong>UAE and Chile\u2019s CEPA will go into effect in six months<\/strong>, UAE Foreign Trade Minister Thani Al Zeyoudi told Wam<\/a>. The pair inked the economic partnership agreement this week<\/a> to boost bilateral investments, private sector partnerships, and trade. The CEPA is expected to plug USD 73 mn into the UAE\u2019s economy by 2031, Al Zeyoudi said.<\/p>\n

#5- <\/strong>China\u2019s WeRide <\/strong>is looking to expand globally \u2014 including the UAE \u2014 as AI tech continues to shape <\/strong>the<\/strong> logistics<\/strong> industry<\/strong>, CNBC<\/a> reports. \u201cLogistics delivery and waste transport \u2014 these two areas have been moving forward, from indoor robotics to outdoor robotics to autonomous outdoors. Things are moving relatively fast because of the development of AI right now,\u201d Singapore director of business development Sebastian Yee told CNBC. <\/p>\n

Bigger plans at play:<\/strong> The company \u2014 which develops and trials autonomous vehicles \u2014 filed for an IPO on the Nasdaq on Friday, without disclosing the sum it intends to raise, in what could be the largest US listing by a Chinese company since Didi\u2019s IPO in 2021<\/a>. <\/p>\n

Regional interest is already picking up:<\/strong> \u201cWeRide is the only company which has [driverless] permits from the US, China, UAE and Singapore,\u201d Singapore general manager of WeRide Kerry Xu said. The Chinese-outfit chose the UAE because of its position as a hub in the Middle East and its friendliness towards autonomous vehicle technology.<\/p>\n

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MARKET WATCH- <\/p>\n

#1- <\/strong>Oil prices rebounded from seven week lows this morning in response to breaking news regarding the <\/strong>killing of Hamas leader Ismail Haniyeh<\/a><\/strong> in Iran<\/strong>, Reuters<\/a> reports. Brent crude futures climbed USD 1.17 to USD 79.80 a barrel by 03.46 GMT, while US West Texas Intermediate (WTI) futures rose USD 1.15 to USD 75.88 a barrel. Both Brent and WTI fell about 1.4% yesterday, closing at their lowest levels in seven weeks. <\/p>\n

#2- <\/strong>Baltic index slumps for seventh-consecutive day: <\/strong>The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 dipped 0.6% to 1,797 points, weighed down by low capesize rates, Reuters<\/a> reports. Capesize was down 1.2% to 2,582, while the panamax segment remained unchanged at 1,792 points. The smaller supramax index fell 0.2% to 1,383 points.<\/p>\n

DATA POINT- <\/p>\n

Suez Canal revenues <\/strong>have dropped to around USD 300 mn a month<\/strong>, down 64.7% from USD 850 mn previously, Egyptian Prime Minister Mostafa Madbouly said<\/a> yesterday. Canal revenues continue to suffer due to Red Sea tension, Suez Canal Authority boss Osama Rabie said<\/a> earlier this month, adding that revenues have fallen 23% y-o-y during FY 2023-2024 to USD 7.2 bn. <\/p>\n

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PSA-<\/p>\n

Hapag-Lloyd\u2019s new ECS surcharge<\/strong>:<\/strong> Shipping giant Hapag-Lloyd has announced a new Emergency Space Contingency (ESC) surcharge on cargo loading from North Europe to the Red Sea, effective 15 August and valid until further notice, according to a statement<\/a>. The ESC will be applied to all vessels at a rate of USD 750 per container, including standard, high cube, and reefer container models. Vessels traveling from North Europe to Red Sea ports in Saudi Arabia, Jordan, and Yemen will be affected.<\/p>\n

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THE ENTERPRISE FINANCE FORUM- <\/p>\n

Are you planning to be in Egypt on 24 September? <\/strong>You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders. <\/p>\n

Why attend? We\u2019re in the early days of a generational realignment of power in our <\/strong>industry<\/strong> \u2014 in our region and beyond \u2014 and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen<\/strong>. With that as the backdrop, we\u2019re going to take stock of where we stand six months after the float of the EGP and ask what\u2019s next for finance in Egypt and the wider region. Among the questions we\u2019ll be asking:<\/p>\n