TRADE PULSE ISSUE 7
SIGNALLING OUR AMBITION TO REIMAGINE TRADE
TRADE PULSE ISSUE 7
Page 2
MOHAMED JUMA AL SHAMISI
Group CEO, AD Ports Group
SIGNALLING OUR GLOBAL AMBITIONS One of the signs of success in the fast-moving world of international trade is the growth of your global profile, as more organisations begin to track your activities and learn from your business model. By that metric, AD Ports Group has had a very successful year. We have announced our ambition to reimagine trade and logistics, and our customers, partners and employees have all responded positively. In the last three months, the venerable Lloyd’s List, one of the world’s oldest continuously running journals, has named Khalifa Port as one of only a handful of ports in the world to have achieved double-digit volume growth in 2021. In addition, we have signed agreements with organisations in Jordan, Iraq and
Egypt to collaborate and share our expertise in managing ports and operations. These achievements, as well as our robust financial performance, were realised against a backdrop of significant pressure on our industry, as supply constraints squeezed the shipping and container markets. That we can continue to deliver to our customers and stakeholders around the world despite these pressures is a strong indication of the strength of our business model and the long-term viability of our strategy. Our rising global profile is supported by ongoing development within the UAE, as we focus on expanding our customer base across all our business clusters. Importantly,
TRADE PULSE ISSUE 7
we are now able to support customers at every part of the supply chain through our integrated model – world-class ports, industrial cities and free zone, maritime services, logistics and digital, all working together as one united offering. To help articulate this positioning, we have created a new group brand — AD Ports Group. This is the umbrella brand that brings together our diverse clusters and businesses and highlights our mission to reimagine world trade by deploying cutting-edge technology and bold new ideas. Our brand architecture articulates our mission to reimagine global trade and highlights our focus on innovation to deliver real benefits to our customers. Looking ahead, we will continue to be among the leading trade facilitation organisations in the world enabling the recovery of global supply
Page 3
chains. In this issue of Trade Pulse, we speak with some of the companies we are working with to address these challenges. Our thanks go to all of you for your role in these important achievements, and for your continued commitment as we look to close out an extremely successful year and build for an even brighter future.
“We have announced our ambitions to reimagine trade and logistics, and our customers, partners and employees have all responded positively”
TRADE PULSE ISSUE 7
Page 4
AD PORTS GROUP RECORDS STRONG REVENUE In November, AD Ports Group announced for Year-to-Date September 2021, which showed revenue, EBITDA and cargo volumes all up year-on-year. In November, AD Ports Group announced its financial results for the nine months ended September 30, 2021, reporting revenue growth of 22% yearon-year to AED 2.791 billion (USD 760 million) compared with AED 2.295 billion (USD 625 million) in the same period last year, driven by volume growth, business diversification and new partnerships.
22%
2.7 million sq. metres of land in this period, reflecting the wider global recovery from the impact of the COVID-19 pandemic, although some supply chain issues remain. Container throughput grew to 2.47 million TEUs (twentyfoot equivalent units) in the first nine months of 2021, up from 2.42 million TEUs in the same period in 2020, despite the ongoing supply constraints faced in the global shipping and container market.
Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group, said: “We reported solid results for the nine months ended September 30, 2021, due to continuing growth in our core businesses and incremental returns from new investments. We are well-positioned for sustained growth as the world economy recovers from the impact of the global pandemic and as we take an active role in helping to resolve global supply chain issues.”
Revenue growth
$760 Million Achieved revenues
EBITDA rose 7% year-onyear to AED 1.161 billion (USD 316 million) during this period, up from AED 1.081 billion (USD 295 million) during the same period in 2020, with growth across most of the business clusters. General cargo volumes rose to 37 million metric tonnes in year-to-date September 2021, up from 22 million metric tonnes in the same period in 2020 while industrial zones leased about
“We are well-positioned for sustained growth as the world economy recovers from the impact of the global pandemic and as we take an active role in helping to resolve global supply chain issues.”
TRADE PULSE ISSUE 7
Page 6
WELCOMING CMA CGM GROUP TO KHALIFA PORT In September, AD Ports Group announced a major agreement that will bring CMA CGM, a world leader in shipping and logistics, to Khalifa Port. We spoke to some of the key executives involved in the agreement about the importance of this deal and what it means for regional trade. Global connectivity, multimodal logistics facilities, logistics process digitalisation, advanced port infrastructure, and warehouse automation, are some of the crucial considerations for establishing a regional shipping hub. Khalifa Port, AD Ports Group’s flagship deep-water port, is therefore ideally positioned to be the new regional hub for the CMA CGM Group. The port can handle the next generation of ultra-large container ships at a strategic geographical location and provides access to a multimodal transport network covering sea, road, air and, from 2023, rail links. Equipped with the latest maritime and logistical technologies innovations, Khalifa Port is also the first terminal in the Middle East to introduce an autonomous port truck system and one of the region’s most technologically advanced ports. Following the landmark 35year concession agreement between AD Ports Group and CMA CGM Group to invest AED 570 million into a new terminal at Khalifa Port, AD Ports Group will develop a wide range of
supporting marine works and infrastructure to support the new terminal. This includes up to a total of 1,200 metres of quay wall, a 3,800-metre breakwater, a full built-out rail platform, and 700,000 sqm of the terminal yard. “This ambitious project we are launching in Abu Dhabi marks an important milestone in CMA CGM’s development strategy in the region. It will also enable our Group to expand its shipping and logistics network in the region, where we see a lot of growth potential”, said Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group. The agreement will also serve as an instrumental part of the global maritime trade connecting markets from east to west. Adding a new container terminal at Khalifa Port will provide CMA CGM with a new regional hub. It will also enable the Group to develop its service offering between Abu Dhabi and South Asia, Western Asia, East Africa, Europe and the Mediterranean, and the Middle East and the Indian sub-continent. “The addition of a new
container terminal at Khalifa Port, which will be managed by a joint venture formed in collaboration with CMA Terminals, opens a new chapter in our organisation’s efforts to become a key facilitator of global trade, and elevates Abu Dhabi’s standing as both a regional and an international hub for maritime trade,” said Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group. The new terminal is scheduled to be handed over in 2024 with an initial capacity of 1.8 million TEUs and will link directly to Khalifa Port’s upcoming rail terminal and utilise its services to accelerate trade flows moving in and out of the UAE. With this,
TRADE PULSE ISSUE 7
Khalifa Port also becomes a regional hub for three of the world’s top four shipping companies. The facility’s capacity and added trade links with other high-profile port destinations are expected to drive investment into local businesses and AD Ports Group’s industrial zones, fast-track the development of crucial sectors, including manufacturing and logistics, and raise demand for an industrial workforce. As a business enabler dedicated to providing vital infrastructure for the global maritime
Page 7
industry, AD Ports Group has invested significantly throughout 2021 in expanding Khalifa Port to expand general cargo capabilities and make the port truly multipurpose. Furthermore, in pursuit to digitalise the maritime industry, AD Ports Group has deployed a growing list of leading-edge innovations, including autonomous technology, robotics and AI, machine learning, blockchain-based supplychain authentication, in addition to efficient and sustainable energy solutions.
“The addition of a new container terminal at Khalifa Port opens a new chapter in our organisation’s efforts to become a key facilitator of global trade and elevates Abu Dhabi’s standing as both a regional and an international hub for maritime trade.”
TRADE PULSE ISSUE 7
Page 8
INDUSTRY IN FOCUS
INDUSTRY IN FOCUS – THE GLOBAL CONTAINER CRUNCH In this special report, we look at the challenges facing the global maritime industry and ask industry experts, what is being done to reduce disruption to international supply chains?
SIMON HEANEY Senior Manager - Container Research, Drewry
What are some of the key lessons from the COVID-19 pandemic and its influence on supply chain disruption that will prove invaluable in 2022 and the years to come? It should be obvious to all that the supply chain is not as robust as we had all hoped. The pandemic exposed the fragility of the logistics network and how quickly deficiencies in one link can spread and cause it to break down everywhere. Leanness and efficiency have always been the design principles, but COVID-19 has made it abundantly clear that some degree of resilience has to be added to the mix. I don’t think it is possible to safeguard against all circumstances,
especially when we are talking about once-a-century events, but a new paradigm is required whereby some slack is introduced into the supply chain so that future disruptive events can be worked around. Boosting logistics capacity, be it new container terminals, ships, or warehouses, takes a long time and a lot of money. I think it is important for cargo owners who rely on the supply chain to move goods to understand that if they want extra resilience through upgraded infrastructure, IT and hardware, they should not punish that investment by using excess logistics capacity as a wedge to drive down prices. Hopefully, after things normalise, there will still be
sufficient incentive to make those investments happen. The alternative is to simply cross our fingers and hope for no repeat. From your viewpoint, what is the outlook for container capacity in 2022 and what will shippers need to do to secure the capacity they require? Drewry expects the container market to remain very tight throughout 2022. We have extended our supply recovery timeline to the end of next year, meaning that a significant proportion of capacity will be lost as ships continue to be delayed outside ports. Equipment availability / circulation will continue to be a driving factor for freight rates, which are expected to remain at very elevated levels.
“We are advising our shipper clients to, wherever possible, drop out of the volatile spot market and switch to contract terms, preferably twoyear deals with an index-linked mechanism, and bid early. This will help shippers and carriers align better when it comes to volumes, capacity, and forecasting.”
TRADE PULSE ISSUE 7
We are advising our shipper clients to, wherever possible, drop out of the volatile spot market and switch to contract terms, preferably two-year deals with an index-linked mechanism, and bid early. This will help shippers and carriers align better when it comes to volumes, capacity, and forecasting. Additionally, shippers should limit the amount of ‘free time’ container detention and demurrage they ask for in contracts to become a “shipper of choice”. Digital disruption has become prevalent within the industry over the past few years. How is technology enabling maritime leaders to become more efficient and tackle some of the common challenges now faced within the supply chain? The most recent digital wave has been focusing on data exchange and the ways they can now be aggregated, analysed, and consumed through different cloud applications. These new sets of technologies such as blockchain, API’s serve network orchestration very well which is at the core of the supply chain industry. These general digital transformations have been supporting the volume growth and scalability of organisations that are strategic in times of consolidation. The next transformation wave will certainly be pulled by the creation and distribution of a large amount of data generated by Internet-of-Things (sensors) and smart assets. The influx of industry data opens new services and automation levels never achieved before where Artificial Intelligence will efficiently address large and complex challenges including asset optimisation and supply chain resilience.
Page 9
In our view, the implementation and realisation of the benefits of digitalisation depend more on change management than technology. The complexity of the shipping and logistics ecosystem make this task very challenging. Many of the ideas being realised now are concepts that were already developed in 2000. Progress has been very slow. Drewry is an independent maritime research consultancy offering market insights and advisory services to senior stakeholders across the global shipping industry.
TRADE PULSE ISSUE 7
Page 10
KIM LARSEN VP - Commercial & Business Development, Ports, AD Ports
One of the chief challenges that has afflicted the industry in recent years has been around shipping capacity. What have been some of the mitigating factors that influenced these developments in the industry? Without a doubt, the largest contributor of the global shipping capacity disruption experienced in recent memory is primarily a result of the COVID-19 crisis. Slowing global trade to a crawl, the advent of the pandemic has had a profound impact on how both nations and businesses oversee their respective supply chains and source the goods they need. This was particularly pertinent in the case of critical supplies — medical and food products — that became increasingly constrained and heavily relied on throughout 2020. During the period, we also saw substantial growth within the region’s e-commerce market. Already fast-developing even before the beginning of 2020, e-commerce transactions in the UAE and other highperforming GCC markets were further accelerated as a result of the pandemic. Coming back to our industry, the past few years have seen an increased demand on shipping,
which at one point resulted in vessel charter rates becoming over five times oversubscribed. It was also the case during the period that all tonnage in the market was at max capacity and led to limited availability across markets. This in turn resulted in high spikes in international trade rates, as well as reduced container availability and services in the region. What was AD Ports Group’s approach to tackling this and minimising shipping disruptions in the UAE and across the rest of the Arabian Gulf? On the one hand, AD Ports Group’s Ports cluster has spent the better part of the past two years accelerating the development of ultra-modern infrastructure across our entire portfolio. This includes the ongoing development projects of Khalifa Port and Mugharraq Port that are adding both capacity and the capabilities to target new segments, as well as the construction of advanced warehouses, including specialised storage solutions for handling temperature-sensitive cargo such as medical products and vaccine vials. However, we found quite early on into the pandemic, that both shipping liners and our customers in the Middle East region want an exceptional feedering service. Faced with such a demand, it became a strategic priority of AD Ports Group to add such a capability into our repertoire. We created a robust and sustainable feeder service that has enabled us to supply key markets and unlock trade opportunities across the region. In addition to delivering a measure of trade security to our emirate and the country, the introduction of SAFEEN Feeders brought to the table
a novel service that muchneeded connectivity to the current regional network and delivers cost-savings to our mainliner clients. The new service has also enhanced the mitigated restrictions associated with maritime facilities and extended their reach, enabling the possibility to service mega containerships, while enhancing the utilisation of secondary regional ports. From your viewpoint, how have investment priorities for container ports evolved over the past couple of years? One of the biggest disruptors being felt across our industry at this time is that of digitalisation. And while digital transformation was slowly being embraced across international maritime and logistics — an area of global trade
TRADE PULSE ISSUE 7
that had long resisted digital innovation — the events of the past two years have accelerated efforts by leading players to embrace technology. Industry leaders have begun to explore potential applications of leading-edge technologies, such as Artificial Intelligence, Big Data, and other solutions that enable transparency across the value chain. Many have also discovered the inherent benefits associated with the adoption of a digital culture and how innovation can enhance a business’ efficiency and its ability to collaborate with other like-minded organisations. AD Ports Group has embraced digitalisation across its entire portfolio. One such example lies in the field of automation. Our first semi-automated container port in the GCC region, Khalifa Port, which features ultramodern maritime infrastructure including 42 automated stacking cranes, recently became home to a small fleet of autonomous port trucks. Owned and deployed at the CSP Abu Dhabi container terminal, the first greenfield project of COSCO SHIPPING Ports Limited (CSP), the six electric Qomolo Q-Trucks feature a 360-degree sensory system with traffic monitoring and driving guidance platform that enables them to support
Page 11
mother vessel loading and unloading activities within the facility. The past few years have also seen numerous collaborations with organisations such as Microsoft, who we are working closely with to introduce container tracking and autonomous shuttle capabilities. We have also partnered with a globally renowned vessel designer and tugboat leader to develop the world’s first autonomous commercial marine tugs. One of biggest successes to date, however, lies with the launch of the Advanced Trade and Logistics Platform (ATLP), which serves as an innovative single-window solution designed to facilitate trade for customers and stakeholders across Abu Dhabi’s Sea, land, air, industrial and free zones. Developed and operated by our digital arm, Maqta Gateway, under the supervision of the Abu Dhabi Department of Economic Development, ATLP today features over 700 services and unified payment solutions integrated with 40 government entities and trade operators active across the entire value chain.
TRADE PULSE ISSUE 7
Page 12
LAUNCHING THE AD PORTS GROUP BRAND We have rolled out the AD Ports Group Brand to better communicate our identity as a fully integrated organisation offering solutions across the entire trade ecosystem. We have announced a new brand name and identity for our business, AD Ports Group. Abu Dhabi Ports and all its assets now sit under this newly branded parent entity. The new brand reflects our position as a fully integrated organisation offering solutions across the entire trade ecosystem. We have also developed a reimagined brand architecture that enables the company to align
new acquisitions quickly and effectively, while at the same time ensuring that operations retain their focus on customers’ needs. By creating a streamlined frictionless user journey, AD Ports Group is making it easier for stakeholders to access a range of integrated and innovative ports, logistics, and trade solutions. In parallel, the brand team has taken the opportunity to refresh the company’s iconic logo,
TRADE PULSE ISSUE 7
refining it to make the logo bolder, stronger and more digitally optimised, with the support of a bespoke typography. The team has also created a modern, dynamic, and imaginative design system which will be applied across the entire group, with a colour code
Page 13
to give each cluster a distinct personality, This cohesive identity will make it clear that we are stronger together, working to achieve our shared goal of reimagining global trade. You can learn more from our website, Abu Dhabi Ports.
“This cohesive identity will make it clear that we are stronger together, working to achieve our shared goal of reimagining global trade.”
Page 14
TRADE PULSE ISSUE 7
PROJECT UPDATES
FIRST AD PORTS GROUP’S CRUISE TERMINAL OUTSIDE OF UAE AD Ports Group signs agreement with Aqaba Development Corporation for State-of-the-Art Cruise Terminal at Marsa Zayed. In September, AD Ports Group signed a Heads of Terms agreement with the Aqaba Development Corporation to begin the development of a stateof-the-art cruise terminal at Marsa Zayed in Aqaba. It will be the first facility to be developed by AD Ports Group in the Hashemite Kingdom of Jordan and its first cruise facility outside of the United Arab Emirates. The new terminal will serve as a gateway in the Port of Aqaba that will receive cruise ships passengers visiting the Red Sea, in addition to serving as a major attraction for the residents of Aqaba with a wide range of tourism, commercial, and entertainment services. A further Head of Terms agreement was also signed for Maqta Gateway to manage the implementation of an advanced Ports Community System (PCS), which will oversee communication between Aqaba ports and terminals operators,
Aqaba Special Economic Zone Authority (ASEZA), Aqaba Development Corporation, Jordan Maritime Commission, customs, support services and onland connections for the Port of Aqaba. Leveraging its expertise as a global facilitator of trade and logistics, AD Ports Group will work closely with the Aqaba Development Corporation to deploy the digital system to expand the technical capacity and capabilities of Aqaba ports.
New terminal will serve as a gateway in the Port of Aqaba that will receive cruise ships passengers visiting the Red Sea
TRADE PULSE ISSUE 7
Page 15
LEPIDICO TO ESTABLISH LITHIUM PRODUCTION FACILITY IN KIZAD 57k sqm Zero-Waste Facility is the first of its kind in the Middle East KIZAD signed an agreement with Lepidico Ltd, a global lithium exploration and development company in October to establish the first lithium production facility in the Middle East, utilising a first-ofits-kind designed process. Covering a land area of 57,000sqm, the first phase of Lepidico’s development for the
AED 348 million ($95 million) chemical plant will house clean-tech L-Max and LOHMax process technologies. The process extracts lithium and recovers valuable by-products from lithium-mica and phosphate minerals. As an ecofriendly, zero-waste facility, the residue predominantly gypsum, will be repurposed for use in the
construction industry. The vertically integrated Phase 1 Project (P1P) comprises two small scale open-pit mines that will feed a mineral concentrator in Namibia, following which the lepidolite concentrate will be shipped to the facility being developed in KIZAD via Khalifa Port.
Page 16
TRADE PULSE ISSUE 7
AD PORTS GROUP AND NYU ABU DHABI CORAL RELOCATION RESEARCH Research study to examine global best practices for coral relocation Building upon the highly successful Khalifa Port Coral Relocation project, AD Ports Group is working with NYU Abu Dhabi (NYUAD) on a research study on coral relocation. The research study will examine global best practices for coral relocation, while also providing region-specific expertise and insights that will enhance future coral reef relocation efforts across the Arabian Gulf.
Scheduled for completion by December 2023, the project will also assist AD Ports Group in developing its expertise in leading such initiatives by equipping its staff with the most pioneering and innovative methods and techniques in the field. AD Ports Group’s staff will also be able to participate in training workshops and field training exercises to gain invaluable first-hand experience of coral relocation practices.
TRADE PULSE ISSUE 7
Page 17
AD PORTS GROUP AND AURORA50 PARTNER TO EMPOWER EMIRATI WOMEN New programme is designed to accelerate the careers of highpotential Emirati women AD Ports Group has signed a new partnership agreement with Aurora50, a social enterprise focusing on achieving gender-balanced boardrooms in the UAE. Through the new partnership, AD Ports Group and Aurora50 aim to create a more inclusive and integrated work environment with a new purpose-driven programme, Gaining Leadership Opportunities for Women (GLOW). The programme has been designed to accelerate the careers of high-potential Emirati women
and prepare them for board-level and leadership positions. The accelerator will enable Emirati women to build a strategic plan for their career development and maximise career opportunities using design-thinking tools. In addition, it will provide a suitable support mechanism and encouragement vehicle to enable female Emirati employees to achieve and realise their highest potential. invaluable first-hand experience of coral relocation practices.
TRADE PULSE ISSUE 7
Page 18
PROJECT UPDATES
HOPE CONSORTIUM REACHES A NEW MILESTONE 200 million vaccines handled across 40 countries. The HOPE Consortium and its founding members the Department of Health – Abu Dhabi, AD Ports Group, Etihad Cargo, Rafed, SkyCell, and Maqta Gateway, are celebrating the remarkable milestone of distributing 200 million vaccines across 40 countries as part of the global fight against COVID-19. One of the largest logistical operations of modern times, the Hope Consortium is a highly integrated effort to deliver hope and vital vaccines to the global community. The Consortium is working to expand handling volumes and geographical reach, employing a ‘hub and spoke model’, which enables the Consortium to store large quantities of vaccines at AD Ports Group’s advanced cold storage hub in Abu Dhabi and align its global deliveries with the capacity of the recipient nations to receive the vaccines safely. Advanced cold chain technology and processes have proven to be vital to the success of the initiative, ensuring temperature control and product security throughout the entire supply chain. AD Port Group’s proprietary custombuilt digital system “mUnity” ensures full vaccine visibility and tamper-proof distribution. Developed by Maqta Gateway, mUnity uses blockchain
technology to track and trace COVID-19 vaccine sourcing, storage, shipment, and all related data in real-time. “Combining Abu Dhabi’s strategic position as a gateway to two-thirds of the global population with the unique capabilities of our world-class partners, the Hope Consortium has developed one of the most complete and effective endto-end vaccine supply chains in the world capable of fulfilling our global mission,” said Robert Sutton, Head of the Logistics Cluster, AD Ports Group. In the summer of 2021, the HOPE Consortium extended its value proposition to include in-country vaccination services with the aim of accelerating global immunisation and eliminating vaccine wastage. In Africa, the partners have already begun implementing stage one of the programme, which includes assessing existing on-ground logistics and medical capabilities and infrastructure, and initial deployment of a mobile team of 15 members. The team includes doctors and nurses that work to establish local immunisation hubs needed to coordinate the administration of the vaccines, maintain patient records, and track the progress of national vaccination efforts. In the second stage, the
200 Million Vaccines handled
programme will be scaled up to include a team tasked with setting-up regional vaccination centres equipped with medical equipment and supplies, storage freezers for vaccines and power generation units. Two fully equipped mobile vaccination vehicles, airlifted from Abu Dhabi, will augment the team’s reach beyond the established regional vaccination centres. To “future proof” the effort, the HOPE Consortium’s team will be training the local medical and logistical staff to ensure that immunisation drives can continue without interruption.
“The Hope Consortium has developed one of the most complete and most effective end-to-end vaccine supply chains in the world.”
TRADE PULSE ISSUE 7
Page 19
HOPE CONSORTIUM WORKS WITH ASTRAL AVIATION FOR AFRICA VACCINE DISTRIBUTION New Agreement will see Vaccines Delivered by Freighters and Drones The HOPE Consortium has partnered with Kenya-based cargo airline Astral Aviation to offer vaccine distribution solutions across the African continent. As part of the partnership agreement, both entities will focus on intra-African cooperation to enhance vaccine distribution. The HOPE Consortium will use Astral Aviation’s comprehensive network and market expertise to support its global objective
of facilitating vaccine availability. The alliance will ensure timely delivery of vaccines and critical supplies to all 54 African nations. Astral Aviation operates a diverse fleet of 14 freighter aircraft and provides innovative, flexible, and cost-effective UAV (Unmanned Aerial Vehicle) and UAS (Unmanned Aerial Systems) integrated drone-based solutions, as well as warehousing solutions to both in-store and remote locations.
TRADE PULSE ISSUE 7
Page 20
FUJAIRAH JOINS ADVANCED TRADE AND LOGISTICS PLATFORM (ATLP) ATLP digitally facilitate trade across sea, air, land, industrial and free zones in Abu Dhabi and beyond Maqta Gateway announced the inclusion of Fujairah’s trade and logistics ecosystem within the Advanced Trade and Logistics Platform (ATLP) in September. ATLP’s phased adoption over key milestones is expected to accelerate the development of trade in Fujairah, standardise information exchange and messaging, increase security and predictability through increased transparency. His Highness Sheikh Eng. Mohammed bin Hamad bin Saif Al Sharqi, Director of Fujairah’s eGovernment
Department, said: “Since the founding of Fujairah’s E-Government Department in 2003, the organisation has achieved great strides with its charge to advance the digital transformation of the emirate’s government services. Our new link with the Advanced Trade and Logistics Platform, which aims to interconnect all trade and logistics across the country’s air, land, sea, industrial and free zones, is the latest step in our continued journey to realise our strategic goals toward digital transformation.
“By synchronising our infrastructure with the latest innovations and integrated solutions offered by ATLP, we will offer stakeholders and commercial businesses an enhanced experience when interacting with our platforms.” In addition to reducing paperwork, administrative, and processing times, Fujairah’s adoption of a single point of entry for its commercial stakeholders involved in trade and logistics will also provide real-time information at any time of the day.
“Our new link with the Advanced Trade and Logistics Platform is the latest step in our continued journey to realise our strategic goals toward digital transformation.”
TRADE PULSE ISSUE 7
Page 21
DR. NOURA AL DHAHERI Head of Digital When world leaders gathered for the 26th UN Climate Change Conference of the Parties (COP26) this November, it was a sobering reminder of the scale of the environmental challenges facing us as a global community. As net contributors to greenhouse emissions, the shipping and logistics industries have a responsibility to act decisively. The International Maritime Organization (IMO) has announced plans to cut the shipping sector’s CO2 emissions by 50 percent by 2050. Digitalisation will play a key role in this collective effort. For example, our flagship deep water port, Khalifa Port, is the first semi-automated container port in the region. Deploying the latest smart
container technology, it supports faster, more efficient processing to reduce waiting times at the port and resultant CO2 emissions, Sustainability was built into the port’s construction, with significant steps taken to protect the marine ecosystem, including the construction of the Middle East’s longest breakwater to safeguard the Ras Ghanada coral reef. Our Advanced Trade and Logistics Platform (ATLP) has boosted the number of digital transactions and cut the need for physical visits. Our newly launched services have enabled more than 50,000,000 digital transactions, saving more than 900,000 hours in sea cargo shipping services and 150,000 hours in inspection and clearance. This in turn reduces the time for trucks waiting at the port for general cargo by 70%, Taken together, Maqta
Gateway has achieved more than 200,000 tonnes of CO2 emission reductions over the past five years. We believe decarbonization and digitalization will go hand-in-hand to reduce CO2 emissions and bring the most profound change across everything we do. We are proud of the steps we have taken but recognise there is a long way still to go. We continue to review the benefits of AI and business intelligence to help tackle operational issues, better manage supply chains via predictive demand and supply, and monitor fuel consumption and environmental impact. Working together, we are confident that we can harness innovation and ensure a better world for our children.
TRADE PULSE ISSUE 7
Page 23
CELEBRATING FEMALE EMIRATI TALENT Second Graduation Ceremony for the ATLG 2.0 initiative sees 30 students graduate AD Ports Group and the General Women’s Union (GWU) celebrated the graduation of the second batch of female Emirati students who completed an intensive training programme under the ATLG 2.0 initiative, launched under the patronage of Her Highness Sheikha Fatima Bint Mubarak, Mother of the Nation, Chairwoman of the
General Women’s Union (GWU), President of the Supreme Council for Motherhood and Childhood and Supreme Chairwoman of the Family Development Foundation. Organised by AD Ports Group and sponsored by the General Women’s Union, the ATLG initiative aims to enhance the skills and expertise of Emirati women and empower them to
become partners in the UAE’s national journey of technical development and achievements. The second edition of the initiative “ATLG 2.0” saw significant participation requests, with more than 1,000 applications. In total, 30 female Emirati graduates successfully passed the initial tests and qualified to move further in the programme.
TRADE PULSE ISSUE 7
Page 24
3D PRINTING TACKLES SUPPLY CHAIN CHALLENGES Technology presents a unique solution in combating the challenges associated with single-source supply chains. Of the many lessons learned by nations and global businesses over the course of the COVID-19 crisis, none were as illuminating as the realisation of the dangers of single-source dependency within the supply chain. Many around the world who were already contending with the fragile nature of singlesource supply chains, found themselves further hampered by the pandemic and sought to identify novel solutions in tackling this challenge. One viable solution to emerge was that of 3D printing technology. Aiding to decentralise production, enhance resource efficiency, improve inventory and logistics, as well as help minimise the complexity of global supply chains, the technology also presents a unique business case in the form of product customisation. Holding great potential for the formation of more agile supply chains, 3D printing provides manufacturers with a new level of freedom to tailor their products to the specific needs of their customers. An equally important breakthrough in the field lies with the advent of 4D printing. The technology also enables a 3D printed object to transform into another structure through external stimulation such as the applications of different
degrees of temperature or light and therefore is an important customisable and adaptable solution for addressing supply chain challenges. This results not only in a wholly novel product design for adaptable products that can transform its function when required, one example being 4D printed water valves that can seal themselves when exposed to a change in liquid temperature but can also impact supply chains. For example, parts assembled in factories within a condensed form can be later “unpacked” via an environmental stimulus into a shape that was previously more challenging to transport. This holds immense value for transporting products to remote areas where the available transport solutions are limited in capacity and capability. As one of the leading facilitators of industry in the UAE, AD Ports Group, through its Industrial Cities & Free Zone Cluster (IC&FZ) has already begun to explore the viability of establishing a dedicated 3D/4D printing hub in the emirate. Potentially located within KIZAD, the largest integrated trade, logistics, and industrial hub in the region, the proposed hub would house facilities aimed at supporting companies to better scale manufacturing production of products, engage in research
and development, as well as service and maintain 3D/4D printing equipment.
“3D printing provides manufacturers with a new level of freedom to tailor their products to the specific needs of their customers.”
TRADE PULSE ISSUE 7
Page 25
ABDULLAH AL HAMELI Head of Industrial Cities & Free Zone Over the past year, the logistics industry has seen a growing trend amongst retailers seeking to take better control of their respective supply chains. Demand for fast delivery times stimulated by the relentless competition of e-commerce had already set this trend in motion, but the global pandemic greatly accelerated demand. A prime example of this lies with the recent announcement by ready-toassemble furniture giant IKEA, which confirmed that it had begun to ship goods using chartered vessels and that it was purchasing containers to ensure box availability. Other retail leaders announcing moves to directly control maritime supply chains including Walmart and Home Depot in the US. Aimed at countering the
disruptions in container shipping that has plagued shippers and carriers, many retailers have begun to consider undertaking this costly investment to counter instances of material shortage and delays because of port congestions. Yet taking direct control of shipping creates a new wave of challenges, and still leaves other issues unresolved, such as the difficulties of ‘last mile’ shipping. An alternative solution that AD Ports Group’s IC&FZ cluster can offer its clients is multimodal connectivity. In addition to providing an integrated ecosystem backed by industry-leading services and competitive utility rates for all those involved across the entire value chain, our multimodal connectivity transport solutions provide our customers with easy and direct access to reach their targeted
market, whether it be in the East or West. They enable us to actively support the collection, processing, and production of new goods for our customers. We should view the challenges currently facing the industry as an ideal opportunity to promote our model of integrated ports, industrial zones, logistics, maritime, and digital solution platforms to facilitate global trade. There is obviously strong demand in the market for our services.
Page 26
TRADE PULSE ISSUE 7
ZONESCORP DRIVING AUTOMOTIVE SECTOR GROWTH IN RAHAYEL AUTOMOTIVE AND MOBILITY CITY Technology presents a unique solution in combating the challenges associated with single-source supply chains. Bolstered by a growing industry comprising an ecosystem made up of importers, suppliers, consumers, and prospective manufacturers, the Middle East auto industry is on the verge of substantial growth. With traditional oil-rich countries in the Gulf Cooperation Council having long served as profitable markets for the import of high-end sports vehicles, such as Saudi Arabia and the UAE, the momentum has greatly shifted towards establishing regional manufacturing hubs in the years to come. Moreover, the growth potential is also further augmented with the increasing popularity of electric vehicles. Having long served as a bedrock for Abu Dhabi’s industry, AD Ports Group’s IC&FZ cluster has driven the development of many of the UAE’s promising
sectors, including automotive. In fact, ZonesCorp part of the cluster and one of the largest economic zone operators in the country, recently completed 1.38 million sqm of commercial and retail areas at Rahayel Automotive and Mobility City. As the first integrated hub for the automotive industry in the region designed to support the growth of several auto-related businesses and supporting services, Rahayel City features a range of facilities including showrooms, service centres, and a vehicle test track, to name a few. With sector-based regulatory and governing bodies also present in the city, the strategically located automotive city provides its customers with a onestop-shop service model that fast tracks approvals and streamlines the process for the establishment of new business.
TRADE PULSE ISSUE 7
Page 27
IC&FZ: ABOUT 2.7 MILLION SQ. METRES OF INDUSTRIAL LAND LEASED IN 9M 2021 Several projects activated over the past year include the launch of the Life Science Park and Rahayel Automotive and Mobility City. Showcasing the success of its efforts to spearhead the growth of the UAE’s industrial prowess and the diversification of the national economy, AD Ports Group has revealed that more than 2.7 million square metres of its Industrial Cities & Free Zone cluster have been leased in the first nine months of 2021. Drawing interest from local, regional, and international businesses involved
across a host of sectors, including metals, food, auto, technology, and chemicals, the cluster has also secured significant FDI investments from segments such as e-commerce, plastics, logistics, and light manufacturing. Comprising Khalifa Industrial Zone Abu Dhabi (KIZAD) and ZonesCorp, and a total of 550 square kilometres of industrial and commercial land, the
Industrial Cities & Free Zone Cluster has seen the activation of several industry-leading projects over the past year. This includes the unveiling of the Life Science Park, a dedicated area for the development of medical-related products, as well as Rahayel Automotive and Mobility City, the first integrated hub for the automotive industry in the region.
AD PORTS GROUP ISSUES 280 LICENCES TO BUILDING MATERIAL COMPANIES The UAE’s construction sector was valued at USD 101.45 billion in 2020 and is expected to reach USD 133.53 billion by 2026.the Life Science Park and Rahayel Automotive and Mobility City. Driving the growth of the UAE’s construction and building material sector, a key industry within the national economy that was valued at USD 101.45 billion in 2020 and which is expected to reach USD 133.53 billion by 2026, AD Ports Group has successfully issued over 280 licenses to construction businesses based within the Group’s Industrial Cities & Free Zone Cluster. Occupying a land area of 12,765,938 square metres, IC&FZ is today home to some
of the biggest building material companies, which include the likes of EGA, Emirates Steel, and Emirates Float Glass. In line with the leadership’s vision to realise future growth of the sector, AD Ports Group has cultivated a portfolio of industryleading services and businessfriendly incentives to draw new interests to IC&FZ. These incentives and the full benefits of the cluster were showcased at the recent Big 5 Show that ran from 12-15 September in Dubai.
“Occupying a land area of 12,765,938 square metres, IC&FZ is home to some of the biggest building material companies.”
TRADE PULSE ISSUE 7
Page 28
AD PORTS GROUP RECEIVES GLOBAL PHARMA QUALITY ACCREDITATION First time an organisation in the UAE has secured GDP accreditation for both European Union and World Health Organisation (WHO) standards. The Logistics Cluster has been awarded the coveted Good Distribution Practice (GDP) accreditation by Bureau Veritas, which certified AD Ports Group’ advanced pharmaceutical cold and ultra-cold storage facility in KIZAD and its related logistical services. The accreditation was assessed against both European Union and World Health Organisation (WHO) guidelines, making it the first time an organisation in the UAE has secured accreditation for both standards. The GDP accreditation
certifies that all required measures to safeguard product quality and reduce risk are in place and are being followed along the entire pharma cold and non-cold chain journey. Adherence to these high standards assures customers that all pharmaceutical products they receive through AD Ports Group’s healthcare vertical can maintain their quality and efficacy. Robert Sutton, Head of Logistics Cluster, AD Ports Group, said: “Securing the Good Distribution Practice accreditation from Bureau Veritas, one of the world’s most prominent
certification bodies, is a unique accomplishment in the healthcare and pharma cold and non-cold chain logistics space, and serves as a testament to our team’s commitment to business excellence and customer care.”
“This is a unique accomplishment in the healthcare and pharma cold and non-cold chain logistics space.”
TRADE PULSE ISSUE 7
Page 29
ROBERT SUTTON Head of Logistics
At the recent Hypermotion Dubai 2021, there was a lot of discussion around the impact of the COVID-19 pandemic on the supply chain resiliency and measures that can be implemented to mitigate risks and keep essential goods moving. As part of AD Ports Group’s participation, I highlighted our efforts to maintain food security and facilitate the movement of critical cargo, including vital medical and vaccine supplies. As food security became a major concern for nations around the world, our Logistics Cluster moved quickly to establish a dedicated team to provide end-to-end solutions for the national food programme. The team oversaw the provision of over 100,000 storage pallet positions to enable retailers increase critical food reserves. Our work included repurposing more than 50,000 sqm of exhibition and hospitality
space to cater for increased food inventory storage and humanitarian aid. At the same time, we worked swiftly to establish one of the world’s largest advanced medical storage warehouses to secure and hold COVID-19 vaccines, essential pharmaceuticals and other medical supplies and equipment. The facility, which is in KIZAD, can hold more than 120 million vaccines at any time and forms the backbone of our Abu Dhabi-led HOPE Consortium partnership. The past year has also taught us the value of technology in safeguarding supply chains and ensuring their resiliency. AD Ports Group implemented a host of innovations, including the introduction of advanced risk analysis modelling and the testing of drones for real-time inventory management. We are also developing new ultra-modern warehouses that feature cutting-edge technologies,
including advanced cooling solutions, solar panelling for sustainable power generation, as well as a novel mobile racking innovation for greater space utilisation. Our efforts to support the HOPE Consortium initiative have led to the launch of mUnity, a new blockchainenabled platform, developed by Maqta Gateway, that provides digital connectivity and verification throughout the entire vaccine supply chain. By capturing the storage and transport data on the blockchain, mUnity provides immutable evidence and assurance that the vaccines we deliver are safe and effective. This is an exciting time as technological innovation is evolving the nature of logistics at a rapid pace to drive efficiencies and savings and reduce carbon footprint.
TRADE PULSE ISSUE 7
Page 30
NEW WHITEPAPER ON COLD CHAIN TECHNOLOGY Whitepaper highlights importance of the ‘last mile’ - the movement of vaccines and medicines from the delivery point to their ultimate destination. In September, AD Ports Group published a new whitepaper on the role of advanced cold chain technology in supporting and sustaining the global life science industry. The team conducted telephone and video call interviews with global experts, asking them about the science, technology, and processes that support the cold chain. The aim was to learn what cold chain professionals believed were evolving best practices that organisations could implement to effect immediate and lasting change. One of the key findings was that the industry is relying increasingly heavily on the global cold chain, making it critical for life sciences companies to remain ahead of the constant changes taking place in the related areas of technology, logistics, and infrastructure development.
In addition, the whitepaper highlighted the importance of the so-called ‘last mile’, the movement of vaccines and medicines from the delivery point to the ultimate destination. Because of the global shortage of logistics providers with Good Distribution Practice (GDP) accreditation, there are challenges with localised distribution, since not everybody can safely handle or distribute or collect the products. There also are local disposal considerations where products might be spoiled or compromised, creating documentation and GDP-compliance issues. The whitepaper highlights some of the major solutions deployed by AD Ports Group, as well as the global partnerships that are improving the supply chain.
MICCO EXPANDS GLOBAL LOGISTICS SERVICES WITH ITS NEW LCL PRODUCT OFFERING As part of its growth strategy, MICCO Logistics, a subsidiary of AD Ports Group, has commenced its own Lessthan-Container Load (LCL) product offering adding a greater range of flexible shipping solutions to its
customers. LCL transport allows multiple customers shipping limited quantities of goods originating from multiple destinations to consolidate their cargo into a single container before it is shipped to its
final destination, thereby enhancing efficiency and saving on transport costs. MICCO’s international consolidation sites are located in Italy and Shanghai, while its destuffing hub is based at Khalifa Port.
TRADE PULSE ISSUE 7
Page 32
INTERNATIONAL BOAT SHOW SUCCESS Abu Dhabi Maritime flew the flag at the Monaco Yacht Show and Abu Dhabi International Boat Show in 2021. This September, Abu Dhabi Maritime took part in this year’s Monaco Yacht Show, the world’s premiere industry event which brings together the international luxury yachting community. The event provided an ideal showcase to promote Abu Dhabi as a major global super yachting destination, highlight infrastructure projects and plans aimed at expanding the presence of super yachts, and unveil the new marine protected areas in Abu Dhabi that will be made available to the public. Visitors to the show viewed a new marine reserves map highlighting the newly opened
marine areas. The project is being facilitated in close partnership with the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi), and the Environmental Agency - Abu Dhabi. Abu Dhabi Maritime was also a Strategic Partner of the Abu Dhabi International Boat Show, further showcasing the opportunities and potential that Abu Dhabi offers as an international maritime destination. The event, which took place at ADNEC’s purposebuilt Marina in October 2021, drew an impressive display of boats, yachts, and marine-related products from both the UAE and around the globe.
TRADE PULSE ISSUE 7
Page 33
Capt. MAKTOUM AL HOUQANI Head of Maritime
A long-term goal for the Maritime Cluster is to help position Abu Dhabi as one of the top five maritime global cities. Naturally, this will require a multi-agency effort to achieve, and we are working closely with partners on a broad range of projects. Developing world-class infrastructure is a key step in this process, as is ensuring that the right facilities are available, such as adequate marine space, the right number of berths, fuel stations, and maintenance facilities, and more. We also need to give special consideration to the needs of superyacht owners, who require distinct facilities of the highest quality and specialisation, in order to attract that specific demographic. It is also important to create ‘destinations’ for nautical visitors. That means
promoting the experiences, amenities, and variety of islands accessible to yachts and boats around Abu Dhabi. For example, the Abu Dhabi Grand Prix helps attract superyacht owners to our shores every December, and we are working closely with key agencies to attract as many visitors as we can. We are working with the Department of Culture and Tourism to develop some of the emirate’s islands and with the Environment Agency so that we can accommodate maritime visitors at the same time as ensuring the protection of marine areas. This will ensure that we can position Abu Dhabi as a sustainable destination with fantastic views and surroundings. In parallel, we are making progress in the regulatory space, ensuring that every aspect of our offering meets international requirements. A positive measure of
our progress towards this target has been the warm response we received at the Monaco Yacht Show 2021 and Abu Dhabi International Boat Show 2021. Visitors consistently commented on the high profile of Abu Dhabi in the international industry and the excitement around our various projects.
TRADE PULSE ISSUE 7
Page 34
NEW CODE OF PRACTICE FOR MARINA OPERATIONS ISSUED New Code Supports Wider Safety and Security Regulatory Reform of Abu Dhabi’s Waterways and Maritime Infrastructure In line with international HSE best practices, the Department of Municipalities and Transport (DMT) in collaboration with Abu Dhabi Maritime recently prepared and issued a new Code of Practice (CoP) for commercial marina operations within Abu Dhabi. The new code forms an integral part of DMT’s regulatory reform designed to provide safe management of Abu Dhabi’s marine assets and their operations. Abu Dhabi Maritime oversees the organisation of marinas
referred to in the CoP, which addresses the management of several aspects of their business operations, including a set of rules and conditions which must be adhered to by their stakeholders. Areas covered include safety and environment, emergencies, communications, marina inspections, maintenance, and security. Additionally, in compliance with the CoP, attestation of Marina Berth Leasing Contracts is now mandatory in an effort to provide both
boat owners and marinas with standardised terms and conditions and eliminate disputes and issues between parties. The new attestation service is available online at www.admaritime.ae through a seamless process and will follow the same principles as Abu Dhabi Tenancy Law. The new CoP is part of a broader effort to help achieve the collective vision of transforming Abu Dhabi into a major global maritime capital.
TRADE PULSE ISSUE 7
Page 36
TAKING OUR EXPERIENCE GLOBAL AD Ports Group’s expertise in developing port facilities is opening new opportunities for international growth The recent history of AD Ports Group has been modernisation and development of facilities across our portfolio. These mega-projects, some of which are in development, some of which are now coming online, have generated international customer interest, and helped develop the skillsets of the project teams responsible. Perhaps the highest-profile example of this work has been the successful Khalifa Port expansion, which boosted capacity with 200 metres of quay wall and almost 175,000 square metres of land within Khalifa Port Logistics in the project’s first phase. In addition, there has been the completion of expansion works at Fujairah Terminals, which included increasing the facility’s general cargo throughput to 1.3 million tonnes and the purchase of advanced Post Panamex ship-to-shore quay cranes from China has increased the handling capacity to 700,000 TEUS annually. There have even been more specialised projects announced, such as the wide-ranging network service upgrade across ZonesCorp, part of the Industrial Cities & Free Zone Cluster, to ensure non-stop gas supply to customers. The system modernisation is part of a continuous comprehensive zone development plan to ensure an uninterrupted
gas flow to more than 700 manufacturing industries across the Industrial City of Abu Dhabi (ICAD). Saif Al Mazrouei, Head of Ports Cluster, AD Ports Group, said: “Deploying new technologies, encouraging new thinking, and leveraging the integrated strength of our whole organisation ensures that AD Ports Group is continuously upgrading our ports to stay ahead of our customers’ demands and expectations. As an added benefit, the best practices and knowledge developed through these expansion projects have become a highly valuable resource in themselves. People know that AD Ports Group has taken a leading position in the development of world-class ports and are eager to work with us.” One of the most recent examples of international cooperation has been the agreement with the Egyptian Group for Multipurpose Terminals, the commercial arm of the Egyptian Ministry of Transportation, for the development and operation of a multipurpose terminal in Safaga Port. The signing was conducted on the side-lines of the 4th Smart Transport, Logistics & Traffic Fair & Forum for the MEA Region, which was held under the patronage of His
Excellency Abdel Fattah El-Sisi, President of the Arab Republic of Egypt. Under the terms of the agreement, AD Ports Group will explore investment opportunities and conduct feasibility and local market studies related to developing and operating a multipurpose terminal in Safaga Port. The MoU aims to support the growth of the Middle East’s industrial and logistics sectors, as well as assist in opening new markets for Egyptian exports via direct maritime routes across the Arabian Gulf, East Asia, and Africa regions. Another agreement with the Aqaba Development Corporation will see AD Ports Group begin the development of a state-of-the-art cruise terminal at Marsa Zayed in Aqaba, our first cruise facility outside of the UAE. These projects are only two of a number in development that will see AD Ports Group take its expertise into exciting new markets. Al Mazrouei explains, “Our progress over recent years provides us with unique insight and experience in developing the next generation of multimodal ports and providing bespoke solutions for specific clients. It opens important new opportunities for us to expand into new markets.”
TRADE PULSE ISSUE 7
Page 37
SAIF AL MAZROUEI Head of Ports
Looking at our results in the first 9 months of 2021, it is clear that the global economy is recovering from the global COVID-19 pandemic. General cargo and container volumes are up year-on-year, and AD Ports Group is even welcoming cruise passengers to our terminals again. However, we need to be mindful that the global transport backlog, caused by the supply chain disruption of COVID-19, is still a reality in our industry. Shipping costs have risen because of ongoing supply constraints in the global shipping and container markets. According to analyst group Drewry Shipping, world port handling throughput fell in the third quarter of 2021 due to bottlenecks and other issues such as Chinese power cuts. During the same period, spot
rates were also higher than previously anticipated. Demand continues to outstrip the supply of containers and ships, and this problem is likely to continue to affect markets through the busy end-of-year and into 2022. So, what can a progressive ports organisation do to help our customers manage these challenges? We’ve already seen the benefit of our investment in maritime services, with SAFEEN Feeders helping to ease some of the pressure through the increased connectivity and optimised shipping costs enabled by their feeder services. However, it is within the ports where we can deliver the greatest relief. Better coordination and digitisation can boost productivity, reducing waiting time on anchor and ensuring faster loading and unloading. This in turn enables ships to turnaround faster and cut down the delays.
Our investments into making our ports truly world-class facilities is demonstrating our worth in this challenging period. Customers know they can rely on AD Ports Group to deliver rapid, effective, and safe services enabled by the latest technology.
Page 38
TRADE PULSE ISSUE 7
KHALIFA PORT RISES TO 56 ON LLOYD’S LIST TOP 100 Leading Port Continues its Ascent on Key Industry Ranking due to Impressive Volume Khalifa Port has continued to scale the Lloyd’s List Top 100 rankings in 2021, driven by impressive volume growth. It now stands at 56, its highest ranking to date. Lloyd’s List is one of the world’s oldest continuously running journals, having provided weekly shipping news in London, UK, as early as 1734. This report highlights Khalifa Port’s container throughput figures, which increased by nearly 16%, making it one of only a handful of ports to achieve double-digit volume growth
over the past year, when shipping numbers globally were down due to the impact of the coronavirus pandemic. The report also mentions that AD Ports Group’s success has been underscored by the arrival of container shipping giants COSCO and Mediterranean Shipping Co. Volumes are expected to increase in the coming years as the terminal’s tenants draw in more services. Further business is also expected to be generated by KIZAD.
NEW AGREEMENT WITH GENERAL COMPANY FOR PORTS OF IRAQ As part of its scope, AD Ports Group will develop national infrastructure, such as roads and rail networks. In September, AD Ports Group signed a Memorandum of Understanding (MoU) with the General Company for Ports of Iraq (GCPI) to promote increased cooperation between the two organisations. The MoU will see the exchange of expertise and best practices by both organisations. Additionally, AD Ports Group will conduct feasibility studies on the management and operation of the General Company for Ports of Iraq’s ports and economic zones and other infrastructure, while also exploring potential investment opportunities. As part of its scope, AD Ports Group will develop national infrastructure, such as roads and rail networks, which will connect Al Faw Ports in Iraq with markets in Jordan and Turkey, while simultaneously supporting the feasibility studies.
TRADE PULSE ISSUE 7
Page 39
MUGHARRAQ PORT RECOGNISED AS AN INTERNATIONAL PORT FACILITY With new certification, Mugharraq Port can receive international and local vessels Mugharraq Port, a strategic port located in the Al Dhafra Region, has been recognised as an international port facility. Until now, the port has served as a maritime facility for the offshore oil and gas sector, providing offshore, oil and gas, logistics support, bulk and break-bulk handling services. With the new certification under the provisions of the International Code for the
Security of Ships and of Port Facilities (ISPS Code) by the UAE’s Ministry of Energy and Infrastructure, Mugharraq Port can now receive international and or local vessels such as container feeders, bulk and break-bulk carriers, mobile offshore drilling units, tugboats, chemical tankers, offshore support vessels, passenger ships and high-speed cargo crafts, among others.
TRADE PULSE ISSUE 7
Page 40
FACTS & FIGURES In September, AD Ports Group and CMA CGM Group signed a 35-year concession agreement to establish a new terminal in Khalifa Port that will be managed by a new joint venture and act as CMA CGM Group’s regional hub. Here are some fascinating facts about the new terminal: Ownership of new joint venture split between CMA Terminals, a subsidiary of CMA CGM, and AD Ports Group.
The upcoming terminal will enable CMA CGM Group to target untapped markets in South Asia, Western Asia, and North & East Africa, as well as the Middle East.
Construction of the terminal is scheduled to start in 2021, and it is set to be handed over in 2024.
The terminal will feature an initial annual capacity of 1.48 million TEUs and 800 metres of quay wall.
It will have a 3,800-metre-long detached breakwater, 70-metre-wide road corridor, and a fully built-out rail platform.
TRADE PULSE ISSUE 7
Page 41