TRADE PULSE ISSUE 8
A PIVOTAL YEAR FOR AD PORTS GROUP
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CAPTAIN MOHAMED JUMA AL SHAMISI, Managing Director and Group CEO, AD Ports Group
2021: A PIVOTAL YEAR FOR AD PORTS GROUP 2021 was a pivotal year for AD Ports Group. The strength of our business enabled us to navigate a challenging trade climate and emerge as a more united, more efficient, and more dynamic Group than ever before. At the heart of our success has been our capacity to bring together the diverse strands of our organisation into one integrated offering for our customers in the UAE and around the world. Our five clusters — Digital, Industrial Cities & Free Zone, Logistics, Maritime and Ports — have worked together seamlessly to facilitate trade and industry and extend Abu Dhabi’s influence across the globe. We have articulated the impact of this integrated offering through our new name and brand, launched
in November. Institutional support for our business model was evident in the demand for our USD 1 billion bond issuance of April 2021, which achieved the lowest coupon by an Abu Dhabi government-owned entity for a 10-year tenor. This has further intensified following the news that ADQ plans to list AD Ports Group on the Abu Dhabi Securities Exchange (ADX). Key stakeholders have confidence in us because of the strength of our strategy and our results, with AD Ports Group serving as one of the few integrated ports and logistics operations in the world to deliver double-digit growth in 2021, a year that saw significant supply chain disruption. We achieved these positive metrics because of the efficiency of our
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portside team, supported by world-class digital, logistics and maritime services, and also because of the sustained development of our IC&FZ cluster, with more than 2.7 million sq. metres of land leased as of September 2021.
2.7 Million sq metres of land
We also welcomed CMA CGM to Khalifa Port, signing a concession agreement to establish a new terminal that will serve as their regional hub. Importantly, port and logistics operations around the world are recognising the depth of our experience and capabilities and looking to partner with us. In recent months, we have signed major agreements with entities in Jordan, Turkey, Iraq, Bahrain, and Egypt to explore opportunities for collaboration on international projects, which represents an exciting new chapter for us. However, even as we have grown, we have continued to live up to our responsibilities to our community, our environment, and our stakeholders. Projects like the Khalifa Port
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coral relocation plan, which looks to limit our environmental footprint in the pristine waters of the Gulf, or any of the other key initiatives highlighted in this year’s Sustainability Report, demonstrate how seriously we take our role as a long-term steward of the marine ecosystem. The same far-sighted approach informs how we are building sustainability into our plans for training and developing the next generation of UAE national leaders within AD Ports Group. These important achievements were only possible because of the guidance and support of our wise leadership; the sustained support of our partners; and the hard work and dedication of our people. Working together, we have achieved much and will continue to deliver success for our customers, our organisation, and our community in the New Year and far beyond.
“Our five clusters have worked together seamlessly to facilitate trade and industry and extend Abu Dhabi’s influence across the world”
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LEAD STORIES
AGREEMENT TO EXPLORE OPPORTUNITIES IN TURKEY AD Ports Group collaborates with Turkey’s sovereign wealth fund on major investment opportunities within Turkey AD Ports Group has taken another step in its mission to enhance its global footprint by signing a strategic collaboration agreement with Turkey’s Turkiye Varlik Fonu, a leading sovereign wealth fund, which will see both parties explore major investment opportunities for port development and operations, and coordinate efforts to examine other logistics-
related investment projects within Turkey. The agreement was signed in November in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council, and President Recep Tayyip Erdogan. Working together, the two organisations will explore
a range of opportunities for investments in Turkey, establishing a joint steering committee to assess all investment opportunities and foster trade ties between the two parties. The agreement will strengthen AD Ports Group’s position as a leading integrated ports and logistics entity in the region and increase trade between the UAE and Turkey.
“The two organisations will collaborate in exploring and examining a range of opportunities for investments in Turkey”
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AD PORTS GROUP SHOWCASES ARABIAN SAILING BOATS TO MARK 50TH UAE NATIONAL DAY CELEBRATIONS Sailing Boats travelled along Abu Dhabi Corniche in commemoration of the Year of the 50th In celebration of the Year of the 50th National Day, AD Ports Group showcased Arabian sailing boats at the Abu Dhabi Corniche in collaboration with the Cultural Programs and Heritage Festival Committee – Abu Dhabi. The showcase included an exciting line-up of seven sailing boats representing UAE’s seven
emirates for residents and visitors to enjoy as part of the nation’s Golden Jubilee festive activities. AD Ports Group has played an instrumental role during the nation’s formative years since the official inauguration of Zayed Port in 1972 and will continue to serve as an enabler of trade and industry for the next 50 years and beyond.
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INDUSTRY IN FOCUS
INDUSTRY IN FOCUS – WHAT SHOULD WE EXPECT IN 2022? As we enter a new year filled with hope and possibilities, we ask industry experts, “What do you think will be the big trends in trade and logistics in 2022?”
“An integrated approach relies upon digitisation, partnerships, bold thinking and new logistical approaches. For operators that rise to the challenge, there is an opportunity to build a more stable, resilient, and sustainable offering.”
ROSS THOMPSON Chief Strategy and Growth Officer
Our industry has seen a great deal of change over the last two years as we confronted the pandemic and the squeeze it put on supply chains, container demand and shipping lines. Change has always been a constant, particularly for ports operators, as we look for new ways to provide integrated, innovative services that will accelerate the flow of goods. Looking ahead past the short-term disruption, we can
see that operators need to adapt with speed and agility to the changing needs of our customers. Not only will we likely see another shift in demand for container space and shipping, but we will also see our industry accelerate the work necessary to sustain global climate change initiatives. Port operators have a role to play as we deepen our integration to offer innovative and comprehensive solutions to customers that also minimise environmental impact. As integrated service providers, we have a real opportunity to build more sustainable, efficient, and seamless operations that will not only speed delivery and reduce waiting times, but also decrease the environmental impact of their journeys. An integrated approach relies upon digitisation, partnerships, bold thinking, and new logistical approaches. For operators that rise to the challenge, there is an opportunity to build a more
stable, resilient, and sustainable offering. AD Ports Group is wellpositioned to seize this moment and support our partners in doing the same.
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MOHAMED AL KHADAR AL AHMED Chief Executive Officer of ZonesCorp
The major trend in industrial cities in 2022 will be the demand for specialist services in support of particular sectors. Companies have a great deal of global choice, so the most
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tailored offerings will likely be the most competitive. Equipping high-demand innovative industries, such as life sciences, robotics, mobility, and sustainable advanced material, will be crucial in 2022. ZonesCorp is expanding support for these businesses, which we believe are the future engines of economic growth. Block 7, one of our upcoming innovation hubs in the Industrial City of Abu Dhabi (ICAD), will offer R&D capabilities, smart services, and technology for innovation-driven industries to flourish. Our integrated hub for the automotive industry, Rahayel will be the first in the region to accommodate a full range of auto-related businesses and services, from
showrooms to workshops and regulatory bodies. We are also upgrading our existing services for the more than 700 manufacturing industries housed in ICAD, as well as modernising the gas network with a data-driven system, the latest technology and techniques for leakage prevention, and enhanced monitoring and controls to ensure uninterrupted supply to our customers. World-class transportation facilities and infrastructure will be key for any business to flourish. Accessible options for connecting businesses to the global market will be another critical competitive factor as companies look to return to growth in 2022.
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DAVID GATWARD Chief - Engineering & Technical Services
The safety and wellbeing of seafarers and employees will be a key trend in 2022. The recent challenges facing these industries have pushed these issues to the forefront, with responsible companies taking urgent steps to ensure that risks are minimised, and support is available for those who need it. AD Ports Group will continue to commit to maintaining a safe environment by promoting
awareness of health and safety at work. The Engineering & Technical Services division has surpassed a major milestone at the end of 2021 with the completion of 15 million manhours without lost time due to injury, and we will strive to maintain and extend that safety record. As we diversify and grow, sustainability remains a core principle for every one of our projects. We will ensure a cohesive approach that identifies potential negative impacts by reducing air emissions, pollution, waste and conserving resources across our ports and facilities.
PATRICK VERHOEVEN Managing Director, International Association of Ports and Harbors (IAPH)
The battle against climate change is the most important driver of change that will affect the port industry in the coming years. There is quite a potential out there for the ports industry to invest in the energy transition. Although not yet a global trend, ports are beginning to explore the potential to act as energy hubs for low-carbon fuel such as hydrogen, which could eventually power significant parts of the maritime industry. We are likely to see the first plans
for ‘green corridors’ between ports on major shipping routes emerge next year. Digitalisation is the second major trend. Digital data exchange between ship and shore is already mandatory under International Maritime Organisation (IMO) rules. But only a minority of ports worldwide have implemented these requirements. There is quite a task, therefore, to bring the global port community up to speed. Ship to shore data exchange is only the first part of digital transformation, and it builds on to create a single maritime window, a port community system where a lot of the cargo related data is exchanged in digital form. And then, it transforms further into a smart port concept where the innovative technologies that we’ve seen developing over the last years are integrated into an entire management of a port ecosystem. Finally, building resilience should be a priority for ports and other supply chain actors. The current supply chain crisis is likely to persist next year, and critical infrastructures such as ports need to have business continuity policies in place to deal with all sorts of disruptions.
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MAHER ABOUD CEO, Automotive at Ghassan Aboud Cars
With the close of 2021 and a somewhat difficult year for many businesses, the logistics industry has had to soldier on and find new and innovative ways to deal with many constraints, bottlenecks and adverse operating conditions. True to the innovative nature of people, the industry has
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stepped up and continued to find a way forward, resulting in some interesting trends for 2022 and beyond. Autonomous vehicles and artificial intelligence are high on the agenda, leading to greater efficiency, extended operating flexibility and enhanced human productivity working in conjunction with these developments. Warehouse operators looking to optimise their businesses have access to a large number of robotic solutions, whether palletised or piece operations. This will help negate the risks of downtime resulting from staff reductions due to COVID should new restrictions apply. Furthermore, it has overall performance benefits related to cost reduction, efficiency, accuracy and visibility. Other trends include the further adoption and use
of big data and predictive analytics to help streamline operations, reduce inventory, manage exposure, understand customer demand and positions logistic operations, both geographically and strategically to adapt and adhere to customer demand and speed to market. Last mile deliveries are set to continue to boom with the ever-growing demand for B2C deliveries across almost every product vertical you can imagine. This equally is spurring the growth of microfulfilment centres and dark store operations servicing industry niches. It is expected that the shipping industry will continue to have capacity constraints well into 2022. We are set for an interesting year ahead, with innovation and digitisation leading the way.
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PROJECT UPDATES
AD PORTS GROUP TO DEVELOP MULTIMODAL TRANSPORT SOLUTIONS FOR KINGDOM OF JORDAN AD Ports Group signs four major agreements with Aqaba Development Corporation to develop tourism, transport and logistics infrastructure in Jordan AD Ports Group signed a series of major agreements with the Aqaba Development Corporation in December, which will see AD Ports Group support the development of tourism, logistics, transport, and digital
infrastructure within Aqaba in the Hashemite Kingdom of Jordan. The strategic partnerships concern the development of Marsa Zayed, a cruise terminal, and the development of an advanced digital Port
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Community System, in addition to agreements to explore the development and modernisation of a multipurpose port and King Hussein International Airport. The Marsa Zayed Land Development Agreement outlines the development of a land area of 1.2 million sqm in Phase 1 of the development of the 3.2 million sqm. Marsa Zayed area by AD Ports Group, which will include a cruise terminal, tourism, leisure, residential and other projects. Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “This strategic alliance will boost the wider efforts of the leadership of Abu Dhabi to drive trade and tourism with our neighbours in the region, and develop world-class infrastructure to expand global reach. “Collectively, these mega-projects represent one of the most significant integrated transport, logistics and tourism development programmes announced in the Hashemite Kingdom of Jordan in recent years.” H.E. Eng. Nayef Ahmad Bakheet, Chief
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Commissioner, Aqaba Special Economic Zone Authority, Chairman of Aqaba Development Corporation said: “We have found a key partner in AD Ports Group, which has the vision, expertise and track record necessary to develop worldclass port and cruise and digital infrastructure. “The agreements and HoT on the development of Marsa Zayed and a cruise terminal, exploring the modernisation of a multipurpose port, the development of King Hussein International Airport, and the establishment of “Maqta Ayla” for digital systems, represent a significant addition to our efforts that aim to develop Aqaba region, and enable rising volumes of visitors to come and experience the Golden Triangle of Jordan, with our unique tourism offerings of Wadi Rum, Aqaba and the ancient city of Petra.” The enhancement projects represent one of the most significant integrated transport and tourism development programmes announced in Jordan in recent years. The partnership will help grow the trade and tourism sectors in the region, create jobs and boost the economy.
“Collectively, these mega-projects represent one of the most significant integrated transport, logistics and tourism development programmes announced in the Hashemite Kingdom of Jordan in recent years”
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AD PORTS GROUP CELEBRATES NINE YEARS OF GROWTH AT KHALIFA PORT 12/12 Anniversary Coincides with Port’s Highest Ever Ranking in Top 100 list AD Ports Group celebrated nine years of continued growth at Khalifa Port on the anniversary of its inauguration. Strategically located between Abu Dhabi and Dubai, Khalifa Port was officially inaugurated on 12.12.12 by President His Highness Sheikh Khalifa bin Zayed Al Nahyan. The Port has shown impressive growth over the nine years since it opened as well as significant resilience, as one of only a handful of ports in the world to achieve notable volume growth over the past year, despite the impact on shipping and the global supply chain due to the COVID-19 pandemic. The port’s impressive growth was reflected in the announcement that it reached its highestever position at number 56 in the 2021 Lloyd’s List Top 100 ranking, the global record of the world’s container port facilities.
Developed from a stretch of reclaimed land four kilometres out at sea, Khalifa Port is now a major hub serving more than 25 shipping lanes with direct links to 70 international destinations. Its commitment to adopting innovative solutions to facilitate trade has seen it become the first container terminal in the middle east to implement an autonomous port truck system. It has fast become a regional hub for some of the world’s top shipping companies such as COSCO SHIPPING Ports and MSC Mediterranean Shipping Company. The port is set to build on its already impressive achievements as it embarks on a new terminal with CMA CGM and the construction of an Etihad Rail terminal that will connect it to the UAE’s national rail network, further cementing its place at the forefront of the nation’s industrial strategy.
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AD PORTS GROUP SIGNS MOU WITH ZAYED HIGHER ORGANIZATION FOR PEOPLE OF DETERMINATION Collaboration aligns with the leadership’s vision for the empowerment of people of determination In line with its commitment to social responsibility and support for all segments of society, AD Ports Group signed an MoU with Zayed Higher Organizations for People of Determination in November. Under the terms of the MoU, the two organizations will work towards supporting people of determination and enabling them to achieve their aspirations and actively contribute to the nation’s development.
As part of the agreement, Maqta Gateway will provide the organisation with access to IBTIKAR platform, which was developed to compile innovative ideas and suggestions submitted by employees, customers, and stakeholders. In addition, Zayed Higher Organization will deliver sign language training programmes for AD Ports Group’s employees, as well as print awareness brochures in Braille for AD Ports Group’s customers of determination.
AD PORTS GROUP ACKNOWLEDGED FOR ITS VISION, INNOVATION, AND OVERALL PERFORMANCE Once again, AD Ports Group was recognised for its quality, innovation, and excellence at this year’s The Maritime Standard Awards, held in November. AD Ports Group won the Port of the Year Award, reinforcing its position as a key player in the global ports, trade and logistics sectors. Captain Mohamed Juma Al Shamisi,
Managing Director and Group CEO of AD Ports Group, received The Maritime Standard Visionary Award for his strategic vision and bold outlook to enhancing the industry. SAFEEN, the marine arm of AD Ports Group, won the Deal of the Year Award for broadening its fleet and portfolio of services to the wider bulk transshipment market.
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COVER STORY
YEAR IN REVIEW 2021 was a year of dramatic change for AD Ports Group, as the organisation rallied from the impact of the COVID-19 pandemic to drive its agenda for growth and development forward. We look back on some of the initiatives and innovations that made headlines and made an impact on global trade and logistics. January: Helping businesses achieve their goals AD Ports Group began with the year with a series of agreements and investments designed to support key industries in the UAE. The company signed a 50-year land lease agreement with Anchorage Investment in January, for the development of grain storage and processing plants at Khalifa Port, to be managed by National Feed. In addition, SAFEEN announced a historic agreement with Allianz Marine & Logistics Services (AMLS) to launch a new international provider of integrated maritime logistic services. The joint venture, called Offshore Support and Logistics Services Company (OFCO – Offshore International), aims to be one of the largest, most capable, and cost-efficient providers of onshore and offshore integrated logistics solutions and subsea services in the GCC region and beyond. Recognising the pressures being faced by many businesses as a result of the COVID-19 global pandemic, the company announced
a freeze on rent escalation during 2021 for all businesses in the Industrial Cities and Free Zone cluster. The effective freeze on rent increases followed several measures taken in 2020 to provide relief to customers and benefitted more than 1,400 companies.
February: Harnessing innovation for the community In February, Hope Consortium announced the launch of the mUnity system to ensure full visibility, safety and security, and tamper-proof distribution of the COVID-19 vaccines, despite the complexities of their transportation. Developed by Maqta Gateway, mUnity is a proprietary custom-built digital system that employs blockchain
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technology and is used to track and trace COVID-19 vaccine sourcing, storage, shipment, and all related data in real-time at every step of the vaccine journey. AD Ports Group’s spirit of innovation was also applied to help protect the environment, with the launch of a major coral relocation and conservation project in the waters surrounding Khalifa Port. Conducted in partnership with the Environment Agency – Abu Dhabi (EAD), Khalifa Port’s coral relocation forms part of a series of mitigation measures to lessen the environmental impact from dredging, whilst reclaiming waters that separate the offshore port’s breakwater from the Ras Ghanada coral reef.
March: Leading the way in the effort against COVID-19 Abu Dhabi’s HOPE Consortium hosted the inaugural World Immunisation & Logistics Summit in March, a major international gathering of senior decision-makers in the international fight against the COVID-19 pandemic. The summit provided an open forum for leaders to discuss the logistical challenges associated with vaccine transport and distribution — from production to patient — with the aim of finding scalable, real-world solutions to achieving mass and
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broad worldwide vaccine delivery and vaccination. More than 1,000 attendees participated in the virtual summit, with international speakers including Dr. Tedros Adhanom Ghebreyesus, DirectorGeneral, WHO; Mark Suzman, CEO, Bill & Melinda Gates Foundation; and Stanley C. Erck, President and CEO, Novavax.
April: Winning investor confidence One of April’s highlights was AD Ports Group’s successful bond issue for USD 1 billion, 10-year bonds, jointly listed on the London Stock Exchange (LSE) and Abu Dhabi Securities Exchange (ADX). The issuance was more than 4.5 times over-subscribed at its peak, achieving the lowest coupon by an Abu Dhabi government-owned entity for a 10-year tenor. The success of the bonds demonstrated international confidence in the strength of AD Ports Group’s business and our strategy, as well as strong belief in the vision of the UAE’s leadership. April also saw the inauguration of ‘Hafeet,’ the largest bulk commercial vessel ever registered under the UAE flag, and the commencement of transshipment operations between Emirates Steel and SAFEEN Group. Under the
agreement, SAFEEN works with Emirates Steel to provide short marine shipping services for three shipments of iron ore per month and is responsible for the purchase, rental, delivery, operation and maintenance of cargo ships, trailers, and unloading equipment. Innovation continued to be a priority within the IC&FZ cluster, with ZonesCorp signing an agreement with Malaysia’s Block 7 Investments to develop the Block 7 Innovation Hub in the heart of the Industrial City of Abu Dhabi (ICAD). The new development caters to key sectors like healthcare, computer science, robotics, mobility, renewable energy, and sustainable advanced materials.
May: Supporting green energy In May, KIZAD announced the formation of an 800mw solar-powered plant to power production of 200,000 tonnes of green ammonia targeting regional and international markets. Helios Industry, a privately-owned special project vehicle company (SPV), announced plans to invest over AED3.67 billion (USD1 billion) in the construction of the facility, which is projected to produce 200,000 tonnes of green ammonia from 40,000 tonnes of green hydrogen.
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June: Announcing major enhancement projects In June, H.H. Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, Crown Prince of Fujairah, officially opened USD 1 billion Fujairah Terminals’ expansion programme, which included infrastructure development and service enhancement projects for the key maritime hub. The completion of the expansion works, which commenced three years ago, has greatly increased the terminal’s general cargo throughput to 1.3 million tonnes, and boosted its multi-purpose area of 25,000 sqm for general cargo and Ro-Ro services. In the same month, Abu Dhabi Terminals, in the presence of His Excellency Omar bin Sultan Al Olama, UAE Ministry of Artificial Intelligence (AI), announced a partnership agreement with Microsoft for the next phase in the digital transformation of Khalifa Port. The partnership enables enhanced container tracking and autonomous shuttle capabilities across Abu Dhabi Terminal’s Khalifa Port terminal, supporting the introduction of AI-based container smart tracking solutions.
July: Driving innovation across the clusters In July, CSP Abu Dhabi container terminal in Khalifa Port became the first terminal in the Middle East to implement an autonomous port truck system. Following a two-month trial period, a total of six electric Q-Trucks were tasked with supporting mother vessel loading and unloading activities within the facility’s container yard. In the same month, AD Ports Group announced the completion of 1.38 million sqm of commercial and retail areas at Rahayel Automotive and Mobility City. Rahayel City is the first integrated hub for the automotive industry in the region to accommodate a full range of auto-related businesses and supporting services. Abu Dhabi Maritime Academy signed a key agreement with Columbia Shipmanagement for the development of training programmes during the month, as well as the provision of consultancy services focused on the applications of alternative fuels, efficiency enhancement and Artificial Intelligence within maritime operations.
August: Meeting customers’ energy needs In August, AD Ports Group embarked on a wide-ranging network service upgrade across ZonesCorp to ensure non-stop gas supplies to its customers. The system modernisation took place over the summer as part of a continuous comprehensive zone development plan to reduce risk and ensure an uninterrupted flow of gas to more than 700 manufacturing industries across the Industrial City of Abu Dhabi.
September: Welcoming a major new partner In September, an agreement with CMA CGM Group, a world leader in shipping and logistics, initiated the development of a new terminal in Khalifa Port that will serve as CMA CGM’s new regional hub. The new terminal is set to be handed over in 2024
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with, in phase 1, an initial quay length of 800 metres and an estimated annual capacity of 1.8 million TEUs. With the arrival of CMA CGM, Khalifa Port became a regional hub for three of world’s top four shipping companies. As part of a global expansion programme, AD Ports Group also signed a Memorandum of Understanding with the General Company for Ports of Iraq to promote increased cooperation between the two organisations within the fields of transportation and maritime. Under the terms of the agreement, the two organisations will exchange expertise and best practices, while 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.
October: Raising standards for the logistics sector Abu Dhabi Ports’ Logistics received the coveted Good Distribution Practice (GDP) accreditation from Bureau Veritas in October, which certified AD Ports’ advanced pharmaceutical cold and ultracold storage facility in KIZAD according to European Union and World Health Organisation (WHO) guidelines. The announcement marked the first time a UAE organisation secured
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accreditation for both standards. AD Ports Group also 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 launched a new purpose-driven programme, GLOW (Gain Leadership Opportunities for Women) to accelerate the careers of highpotential Emirati women and prepare them for board-level and leadership positions.
Diyar Company to investigate opportunities to develop and operate new cruise infrastructure in the Kingdom of Bahrain. In the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Abu Dhabi Executive Council, and President Recep Tayyip Erdogan, AD Ports Group signed a strategic partnership agreement with Turkey’s Turkiye Varlik Fonu to collaborate on significant investment opportunities for port development and operations.
November: Launching the new brand November saw the launch of the new AD Ports Group name and brand, bringing together our diverse clusters and businesses under one umbrella brand, and highlighting our mission to reimagine world trade by deploying cutting-edge technology and bold new ideas. There was also a series of key international agreements signed during the month, including a memorandum of understanding 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 and an initial agreement with Diyar Al Muharraq and the Eagle Hills
December: Celebrating the achievements of the UAE AD Ports Group joined with the nation in celebrating the UAE’s 50th Anniversary in December, a remarkable end to a remarkable year. The group supported the golden jubilee celebrations with seven traditional Arabian sailing boats on the Abu Dhabi Corniche representing the UAE’s seven Emirates. There was good news for Mugharraq Port, which was recognised as an international port facility in December. With the new certification, Mugharraq Port can now receive international and local vessels including container feeders, bulk and break-bulk carriers, mobile offshore drilling units, tugboats, chemical tankers, offshore support vessels, passenger ships and high-speed cargo crafts.
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DR. NOURA AL DHAHERI Head of Digital Looking ahead at the key trends for digital services in 2022, one of the most important factors will be resilience. Accelerating digitisation and automation will help build a significantly more resilient supply chain – a key factor for port operators, shipping companies and their customers. The next year will see a major focus on further deploying digital technologies to ease the flow of goods, automate processes and build a more resilient supply chain. We have already begun to see exciting steps in this direction with international cooperation to establish virtual trade corridors that will make shipping goods between parties faster, easier, and more secure. The security and
traceability of supply chains will also receive a boost from the continuing deployment of digitisation. Advanced tracking will enable customers to have absolute confidence their goods were properly handled throughout their journey. This will impact the shipping of perishable goods and medical supplies such as vaccines as it will enable faster, more accurate and detailed tracking of specific batches should there be a recall or safety advisory issued. This coupled with digital solutions will play a key role in helping to decarbonise trade and meet environmental goals. The Marine Environment Protection Committee has committed to trying to help cut shipping carbon emissions by 40% by 2030. In parallel, the European Union is considering implementing a regional Emissions Trading System (ETS).
This means that companies must prepare to take climate change policies seriously. A range of advanced solutions – including big data, blockchain, and advanced automation – are already in development to make a measurable impact in this area. Over the next year, we will see how innovation can further blur the lines to create a truly integrated journey from end-to-end, in a sustainable, profitable and impactful manner. It is an exciting time for digital services.
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KIZAD TO HOST REGION’S FIRST TYRE STORAGE AND DISTRIBUTION HUB Agreement with Shandong Port Group strengthens trade and shipping links AD Ports Group signed an agreement with China-based Shandong Port Group, to establish a Tyre Hub at KIZAD for the storage and distribution of tyres in December. The Tyre Hub leverages the strength of AD Ports Group as a key enabler of trade and logistics by offering Shandong Port Group integrated services from its clusters. AD Ports Group will provide space for an upcoming 150,000 sqm facility in KIZAD under its Industrial Cities & Free Zone Cluster. This will include warehouse management, logistics, distribution, and re-export services offered by MICCO under the AD Ports Group’s Logistics Cluster, and SAFEEN Feeders, under the Maritime Cluster.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “The agreement with Shandong Port Group is a momentous step that highlights the unique logistics offering of Abu Dhabi and the significance of the synergies created by the AD Ports Group for its various clusters.” Li Fengli, General Manager of Shandong Port Group, said: “We are delighted with the agreement, and we are confident that our synergy with the AD Ports Group will yield opportunities for the port and logistics industry. The outlook remains positive as consumer demand triggers major transformations across the global supply chain.”
“The outlook remains positive as consumer demand triggers major transformations across the global supply chain.”
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ABDULLAH AL HAMELI Head of Industrial Cities & Free Zone Despite the global disruption that impacted many industries in 2021, our Industrial Cities & Free Zone Cluster has seen sustained demand throughout the year, and we are primed for further growth in 2022. In fact, the wider disruption impacting the industry is likely to continue to create new opportunities. Centralized manufacturing and warehousing hubs have left some companies unable to respond to the volatility we have seen in global logistics networks. We can see the short-term response already, as large retail and manufacturing concerns such as IKEA and Home Depot buy their own containers and charter their own vessels in an attempt to ensure their products reach crucial markets in time.
However, many companies are looking at the longer term and considering adding more industrial and storage facilities across their global networks. Spreading manufacturing and warehousing around the globe enables companies to build agility into their supply chain and delivery networks, ensuring that they can respond to challenges by ramping up operations in one area to make up for any anticipated shortfalls in others. Near sourcing and on-demand are likely to be key trends in 2022, with businesses deploying new solutions such as 3D printing to ensure their goods are accessible even when supply chains are in flux. AD Ports Group’s IC&FZ Cluster has been instrumental in helping companies execute these strategies through our multimodal connectivity and
support for innovation. Our unique position in Abu Dhabi offers easy and direct access to target markets in both the East and West. While some locations have struggled with a shortage of industrial land, we are in the fortunate position of being able to offer clients the innovative facilities and space they need to reach the global market. The future is certainly bright as we look ahead to 2022, with AD Ports Group in a strong position to meet the ongoing surge in demand for industrial land and the services that potential new customers require.
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AD PORTS GROUP BROADENS LOGISTICS SUPPORT WITH 31 TIPPER TRUCKS Move into construction logistics market will bring integrated services to the underserved sector In an effort to further diversify the range of services and meet increased customer demand, MICCO has acquired 31 tipper trucks that will support the UAE’s construction and metals manufacturing sectors. The trucks will join MICCO’s existing ground fleet of 400 plus vehicles that currently service several different industry sectors, including the Pharmaceutical, Healthcare, Fresh and General Cargo. The new tipper fleet has a combined transport capacity of over 2,300 metric tonnes and is capable of moving material and supplies between ports, factories, and different development sites across Abu Dhabi and the rest of the UAE. The fleet will be fully equipped with pre-installed Fleet Management Systems (FMSi) incorporating and integrating the latest realtime vehicle geo-fencing and telematics technology. The addition of technologically advanced trucks with expanded capacity will help facilitate a steady and reliable supply of construction materials and products from ports and factories directly to construction sites, saving our customers costs and time. Robert Sutton, Head of Logistics Cluster, AD Ports
Group, said: “We are already serving multiple sectors including healthcare, retail, e-commerce, consumer, oil & gas, heavy lift, and polymers, and our entry into the construction sector only underlines our ambition and commitment to diversify our competitive portfolio to serve what is one of the core sectors of the UAE’s economy. Our customers can rest assured that they will be able to easily plug into AD Ports Group’s wide spectrum of integrated services and benefit from our economies of scale.”
“Our customers can rest assured that they will be able to easily plug into AD Ports Group’s wide spectrum of integrated services and benefit from our economies of scale.”
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ROBERT SUTTON Head of Logistics
When we look ahead to 2022, the three significant topics that will become increasingly important within the logistics space will be digitalisation, environmental solutions, and supply chain resilience. We have come a long way in building a number of truly end-to-end integrated solutions, and our next challenge will be working with stakeholders around the world to ensure that the solutions in place are resilient, environmentally friendly and deliver value on an international scale. Digitalisation is already having a major impact on the logistics sector. The deployment of autonomous vehicles, for example, is already helping organisations to reduce costs and increase efficiencies. Equally, artificial intelligence solutions are playing a key role in freight management,
enabling companies to optimise routes and plan more efficiently for changes in demand and supply. We will likely see other technologies come to the fore in the New Year. We are already deploying blockchain technology within the supply chain, improving visibility into all aspects of the Supply Chain. Our leadership in this area will create a key competitive edge for our customers. The next step is to take the technology and innovative solutions and extend it beyond our operations, integrating with external partners – whether they be manufacturers, shipping lines, customs, or last mile delivery providers. This deepening integration will be the key to enhancing visibility up-mid and downstream in the supply chain. Our journey on the three topics has already begun of course, but over the next year, we expect it to gather pace. While optimising Logistics
and associated services will always be the core of what we do, extending the benefits to partners is the key to building faster, more resilient supply chains that can better serve companies and consumers. Building on our past successes and preparing for the future allows us to set our course for the coming year and beyond.
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SAFEEN FEEDERS EXPANDS FLEET IN THE ARABIAN GULF New service vessel will enhance capacity and offer cost-effective solution to customers SAFEEN Feeders has enhanced its ability to provide customers with flexible, agile, sustainable, and cost-effective connectivity solutions with the addition of SAFEEN Pearl to its feeder service fleet in the Arabian Gulf. The container ship, formerly called Vega Virgo, will be deployed in its UAE Coastal Service (UCO), providing a seamless connection to UAE coastal ports via its hub at Khalifa Port. SAFEEN Pearl has a gross registered tonnage (GRT) of 10,000 tonnes and a nominal handling capacity of 966 TEU. It has an LOA of 139 metres, a breadth of 22.6 metres and a draft of 8.8 metres. It was built in South Korea in 2012. SAFEEN Pearl will help meet the demand for a coastal service in the UAE from AD Ports Group’s hub at Khalifa Port, connecting customers in the Indian subcontinent and
Arabian Gulf with some of the world’s leading shipping liners. Captain Maktoum Al Houqani, Chief Corporate Authority Officer and Acting Head of Maritime Cluster - AD Ports Group, said: “As part of the UAE-Coastal Feeder Service, SAFEEN Pearl will greatly improve our ability to provide customers with a flexible, agile, sustainable, and costeffective solution that meets their demand of a coastal service in the UAE from our hub at Khalifa Port. It will also develop our ability to target customers in the Indian subcontinent and the Arabian Gulf region and connect them with some of the world’s leading shipping liners.” The expansion of the fleet also supports the UAE’s re-election bid to the International Maritime Organization (IMO) Council under category B, which will take place in 2022.
“SAFEEN Pearl will greatly improve our ability to provide customers with a flexible, agile, sustainable, and cost-effective solution that meets their demand of a coastal service in the UAE from our hub at Khalifa Port.”
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Capt. MAKTOUM AL HOUQANI Head of Maritime
The stress-test created by the COVID-19 pandemic has pushed the global maritime sector into a thorough review of industry practices, as companies around the world struggled with port closures, disruption to shipping and crew shortages. New protocols have been introduced, new technologies implemented, and new approaches to logistics and supply chain management have become urgent priorities. Looking ahead to 2022, we can see that organisations like AD Ports Group that were already reviewing and revitalising their approach to these issues have a built-in competitive advantage. Not only have we been able to emerge from the pandemic with strong momentum, but we are also better placed to anticipate the needs of our customers moving forward.
For example, our expansion of connectivity services is enabling AD Ports Group to help customers manage the ongoing supply chain issues more effectively. Our fleet of feeder ships provides customers with greater optionality in the management of capacity, so that even if the current tightness in the supply of container ships continues — or if we face oversupply issues in the later part of 2022 — they will always have a cost-effective, flexible solution available to them. The introduction of ‘Smart Ships’ that deploy cloud services to support onboard vessel operations will also enhance readiness. Another key trend has been the move away from paperbased processes as part of the efforts to reduce crosscontamination. Digitising documents saves time and
money and enables faster decision-making. Again, this is an area where AD Ports Group has made good progress. We see that collaboration and data sharing are a natural extension of digitisation and are already experiencing real benefits. So, the outlook for 2022 is extremely positive. We believe we are entering an exciting phase of growth and development, and while we anticipate the maritime sector will continue to face challenges, we are confident that we are well prepared to manage them
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AD PORTS GROUP INKS AGREEMENT FOR BAHRAIN CRUISES AD Ports Group to work closely with partners to enhance Bahrain’s cruise infrastructure AD Ports Group has inked an initial agreement with Diyar Al Muharraq and the Eagle Hills Diyar Company to investigate opportunities to develop and operate new cruise infrastructure in the Kingdom of Bahrain. The agreement is part of the Group’s continued efforts to elevate the Arabian Gulf’s cruise business and builds upon Bahrain’s potential
to become the fourth high performing cruise destination in the Arabian Gulf. AD Ports group will work with partners to conduct feasibility studies to identify avenues of investment and the development of new cruise infrastructure and services. These will be undertaken with a view to the construction of a new cruise terminal to enhance Bahrain’s
current cruise offering. AD Ports Group was also awarded the responsibility of overseeing the facilities operations upon completion. The agreement leverages AD Ports Group’s extensive experience and expertise as a long-standing driver of the Middle East’s cruise industry and is set to increase capacity for Bahrain’s rapidly growing cruise market.
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SAIF AL MAZROUEI Head of Ports
Looking back on 2021, we can say it was a year of challenges and achievements. Like much of the world, we felt the impact of global supply chain challenges caused by the disruption of the global COVID-19 pandemic. However, thanks to our high levels of professionalism and organisation, our long-term investment in key infrastructure, and the support of our partners and teams, we delivered year-onyear growth and were able to delight our customers. We anticipate that the current disruption will continue into the New Year. However, while operators cannot entirely control the bottlenecks in the global supply chain, we are able to take bold, innovative steps that enable us to scale our operations and streamline processes as much as possible
to better manage them. The real story of 2022 will be digital transformation and a networked approach to facilitating trade. Working with national and international partners to simplify and coordinate customs processes for example, will reduce a significant amount of strain on operators and customers alike, reducing the amount of time goods spend in port and leading to faster, more efficient shipping. In addition, we are likely to see customers re-examining their strategies for just-intime delivery models and outsourcing, given the shocks experienced over the past two years. We stand ready to support them in this process, working through our integrated platform to provide easier access to warehouse and storage space as part of our consolidated offering.
Thanks to proactive investments into our port infrastructure and associated services, I anticipate that AD Ports Group will continue to grow and excel in 2022. We are excited about the possibilities ahead.
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HOPE CONSORTIUM
HOPE CONSORTIUM JOINS NEW PHARMA COLLABORATION WITH BELGIUM The collaboration will establish a fully compliant origin-to-destination pharma air corridor between Abu Dhabi and Brussels. The HOPE Consortium was one of the founding partners of a new agreement to establish a global distribution corridor for vaccine delivery and life science needs with Belgium, a leading global pharmaceutical hub. Two major declarations were signed during a delegation visit from Belgium to Abu Dhabi, hosted by the Department of Health – Abu Dhabi (DoH). The first agreement was between the HOPE Consortium, Abu Dhabi Airports Company (ADAC), Brussels Airport Company, Pharma. Aero, and the Department of Health – Abu Dhabi. The collaboration aims to establish a fully compliant origin-to-destination pharma air corridor between Abu Dhabi and Brussels Airports. The dedicated pharma trade lane will unite key compliant and sector certified supply chain stakeholders, including forwarders and ground handling agents. Western Europe currently ranks as the world’s second-largest pharmaceutical export market with
a total export value of nearly EUR 42 billion in 2020. Captain Mohamed Juma Al Shamisi, Chairman of the HOPE Consortium Executive Committee and Managing Director and Group CEO of AD Ports Group, said. “The HOPE Consortium, along with our partners, has developed one of the most extensive end-to-end vaccine supply chains, capable of delivering millions of Covid-19 vaccines anywhere around the globe. “We look forward to further strengthening the relationship between Abu Dhabi and Belgium through the establishment of a future pharma corridor, benefiting the region and the world.” The other declaration of collaboration was signed by the HOPE Consortium, Pharma.Aero, Khalifa University of Science and Technology and the University of Antwerp to host the second edition of the “Pharma Logistics Masterclass”, a course focused on critical challenges and developments in pharma supply chains and logistics, by Khalifa University in Abu Dhabi in September 2022.
“We look forward to further strengthening the relationship between Abu Dhabi and Belgium through the establishment of a future pharma corridor, benefiting the region and the world”
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FACTS & FIGURES In December 2021, AD Ports Group and the Aqaba Development Corporation signed strategic partnerships to support the continued development of tourism, transport and logistics infrastructure within the Hashemite Kingdom of Jordan. The agreements were: Marsa Zayed Land Development Agreement The development of a land area of 1.2 million sqm in phase 1 of the development of the 3.2 million Marsa Zayed area by AD Ports Group, which will include a cruise terminal, tourism, leisure, residential and other projects.
Cruise Terminal Agreement The development, management, and operation of a new cruise terminal in Aqaba, which will serve as a gateway for passengers visiting the Red Sea. The first phase of development will include the terminal’s building on a total square area of 2,000 sqm, and a 700m long quay.
Maqta Ayla, New Joint Venture Maqta Gateway has signed an agreement with Aqaba Development Corporation establishing Maqta Ayla to develop and operate an advanced Ports Community System (PCS). The system will oversee the communication between the Port of Aqaba and terminal operators, and other stakeholders. The system is expected to complete around two million digital transactions per year.
Development of New Multi-Purpose Port Cooperation on the development and operation of a multi-purpose port with facilities including Ro-Ro, general cargo, grain, and livestock handling.
Development of King Hussein International Airport Collaboration on the development of King Hussein International Airport – Aqaba, to enable increasing volumes of international and domestic tourism.