{"id":82599,"date":"2024-11-25T00:00:00","date_gmt":"2024-11-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/11\/25\/today-a-big-day-for-regional-rail-projects-egypts-sczone-signs-land-agreement-with-orascom-industrial-parks\/"},"modified":"2024-11-25T00:00:00","modified_gmt":"2024-11-25T00:00:00","slug":"today-a-big-day-for-regional-rail-projects-egypts-sczone-signs-land-agreement-with-orascom-industrial-parks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/11\/25\/today-a-big-day-for-regional-rail-projects-egypts-sczone-signs-land-agreement-with-orascom-industrial-parks\/","title":{"rendered":"TODAY: A big day for regional rail projects + Egypt\u2019s SCZone signs land agreement with Orascom Industrial Parks"},"content":{"rendered":"

Good morning, nice people. <\/strong>We have a busy start to the week with a raft of regional rail updates to work through, as well as whispers of M&A news developments and investments plans from Adnoc and DP World. Let\u2019s dive right in.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/strong><\/a>#1- Abu Dhabi National Oil Company (Adnoc) is reportedly considering selling 3-5% of <\/strong>Adnoc Gas<\/strong>, Bloomberg<\/a> reported on Friday, citing sources with knowledge of the matter. While the size and timing of the transaction have yet to be agreed on, the sale could be announced in the coming days, the sources added. The stake may fetch some USD 3.5 bn based on the gas unit\u2019s share price at Fridays\u2019 close. <\/p>\n

REMEMBER-<\/strong> Adnoc sold a 5.5% stake<\/a> in its drilling unit in a secondary sale for USD 935 mn to institutional investors in May.<\/p>\n

#2- <\/strong>Iraq\u2019s Mosul International Airport is slated to reopen in 2025<\/strong> with 86% of the project <\/strong>completed so far<\/strong>, Iraqi Transport Ministry spokesman Maytham Al Safi told INA<\/a> on Saturday. The airport will handle receiving and transporting aircraft, Al Safi told the outlet. <\/p>\n

Background:<\/strong> Iraq broke ground on the reconstruction of the airport back in 2022<\/a> \u2014 previously slated for completion by 2024 \u2014 after the airport was damaged back in 2017. Iraq previously awarded Turkish firms<\/a> contracts to reconstruct Mosul Airport, with several agreements awarded to firms for the supply of equipment and systems.<\/p>\n

Iraq\u2019s been ramping up on airport developments: <\/strong>Iraq invited international private companies back in July<\/a> to submit their bids to expand and operate Baghdad\u2019s International Airport. Iraq\u2019s Nasiriyah International Airport<\/a> project is also expected to be finished within the next year. The ministry also had two plans, the first intended to boost airport infrastructure and maintenance at airports in Baghdad, Basra and Najaf, while the second sees Iraq collaborating with the International Finance Corporation (IFC) to rehabilitate Baghdad Airport, undergo expansions, or build a new airport. <\/p>\n

<\/a>#3- <\/strong>DP World mulls investments in Cambodia:<\/strong> DP World CEO Sultan Ahmed Bin Sulayem expressed interest in investing in Cambodia\u2019s transportation, logistics, and industrial park development during a call with Cambodian Prime Minister Hun Manet yesterday, Cambodian newswire Khmer Times<\/a> reported on Friday.<\/p>\n

Building on<\/strong> Cambodia links:<\/strong> DP World acquired Laos-based port operator Savan Logistics back in May<\/a>, which is situated on the east-west economic corridor<\/a> that links Laos, Cambodia, Myanmar, Thailand, and Vietnam. The port operator has also opened 51 new freight forwarding offices<\/a> across Asia Pacific, expanding its end-to-end supply chain services in the region. <\/p>\n

SPEAKING OF DP- Maersk and Hapag-Lloyd\u2019s Gemini Cooperation has chosen DP World-operated London Gateway port as its UK hub<\/strong>, exiting Felixstowe port in a bid to tape into more single operator routes and less port calls per services, according to a statement<\/a> released last week. The change \u2014 set to take place from February 2025 \u2014 will most affect the Asia-Europe trades, while the Middle East-Europe (London Gateway) and Trans-Atlantic (Southampton) Gemini services will remain unchanged. <\/p>\n

REFRESHER- What <\/strong>is the Gemini<\/strong> Cooperation? <\/strong>The Gemini Cooperation is an alliance by Hapag Lloyd and Maersk that aims to offer a flexible ocean network with schedule reliability above 90% for services under the Gemini umbrella, according to the statement. We first caught wind of this partnership back in January<\/a>, but the US Federal Maritime Commission (FMC) held up the launch in July<\/a> pending the divulgence of additional information needed to determine the venture\u2019s competitive impact.<\/p>\n

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#4- <\/strong>Egypt reviews LNG needs:<\/strong> Egypt \u2014 which recently diverted cargoes carrying liquefied natural gas (LNG) shipments \u2014 is \u201cupdating production and consumption models according to actual figures\u201d with the aim of \u201cachieving the optimal and most efficient energy mix,\u201d according to a statement<\/a> released on Saturday. Egypt\u2019s Energy Ministry denied reports circulated about issues at a floating LNG terminal at Ain Sokhna, indicating that the regasification unit is operating without any problems that would hinder meeting the market\u2019s natural gas needs. <\/p>\n

ICYMI- <\/strong>Egypt\u2019s Oil Ministry is in talks with suppliers to postpone LNG shipments from 4Q 2024 to 1Q 2025, a government source told EnterpriseAM last week<\/a>. The shipments are part of the 20 cargoes of LNG that the government bought for USD 907 mn to cover domestic needs between October and December<\/p>\n

REFRESHER- <\/strong>Egypt has reduced its imports of liquefied natural gas (LNG) via its gasification plant in Ain Sokhna port by a third to 500 mn cubic ft per day. <\/p>\n

<\/a>ON THE AVIATION SIDE-<\/strong> Big airport privatization news could be imminent:<\/strong> Egypt\u2019s Prime Minister Mostafa Madbouly is gearing up to announce \u201cpositive news\u201d regarding the airport privatization plan developed with the International Finance Corporation (IFC), Madbouly said during a meeting with IFC Africa head S\u00e9rgio Pimenta, according to statement<\/a>. <\/p>\n

Pimenta echoed Madbouly\u2019s sentiments during the meeting,<\/strong> saying that important progress has been made in the ongoing consultations with the Egyptian government regarding the airports privatization plan, and that agreements have been reached on most fronts.<\/p>\n

ON PORT SIDE- Egypt is planning to slash customs clearance times to two days by 2025 in a bid to improve the country\u2019s investment and trade climate<\/strong>, Egyptian Investment Minister Hassan El Khatib said at a presser<\/a> on Friday. The first phase of the plan will see custom clearance times reduced to four days, followed by the targeted two, which will help increase the country\u2019s competitiveness in investors\u2019 eyes and reduce logistical costs, according to El Khatib.<\/p>\n

AND IN LEGISLATIVE UPDATES-<\/strong> The Egyptian Senate will vote on a handful of bills this week affecting the logistics sector. <\/strong>The senate passed a bill yesterday to tighten restrictions on those aiming to join the importers registry, stipulating that those aiming to join the register should have a capital of at least EGP 500k, and for limited liability companies to have a paid up capital of at least EGP 2 mn. The stated purpose of the bill is to protect local industries and stabilize prices in the local market. <\/p>\n

Still up for a vote?<\/strong><\/p>\n