Trade Pulse Issue 11

TRADE PULSE

ISSUE 11 OUR JOURNEY OF INTERNATIONAL GROWTH

CAPTAIN MOHAMED JUMA AL SHAMISI

Managing

Director and Group CEO, AD Ports Group

OUR JOURNEY OF INTERNATIONAL GROWTH

Being a global company is much more than just a word or a title – it is about adapting your organisation for worldwide success. AD Ports Group has been on a journey of international expansion throughout 2022 and has recorded several key milestone achievements as we strive to achieve our ambitious objectives.

One of the distinguishing factors of truly global organisations is that they invest in international infrastructure, to ensure that their company has the reach and scalability they need to expand into new markets.

Under the guidance of the UAE’s wise leadership, AD Ports Group has continued its farsighted investment programme this year, demonstrated by the first international acquisition of a majority stake in two Egypt-based maritime

companies, Transmar and TCI. This expansion enhances our presence across key trade lanes and boosts our commercial offering across the Gulf and North Africa. We have also made great progress on the development of our first cruise facility outside of the UAE, at the Port of Aqaba in the Hashemite Kingdom of Jordan.

90 Tonne Block

CMA Terminals Khalifa Port

At the same time, we have continued to enhance infrastructure at home, installing the first 90-tonne block for the quay wall of the new CMA Terminals Khalifa

Port, and receiving the first international shipment at Mugharraq Port after its major expansion programme.

Being global is also about understanding the needs of specific markets, tailoring your commercial offering and portfolio of services to better support customers in those regions. AD Ports Group’s integrated business clusters ensure that we are able to listen to our customers and offer bespoke digital, maritime and logistics solutions that actively support their goals.

In particular, we should highlight the success of the Maritime Cluster in this area, as SAFEEN Group continues to expand its global footprint. In September, we announced the launch of a new UAE-China service to connect the Chinese

ports of Shanghai, Qingdao and Ningbo directly with Khalifa Port. We also joined the new India East Coast Express 2 service, which links Abu Dhabi with Singapore, Colombo, and Chennai.

The company has thrived in the highly competitive marine services and transshipment sectors by responding to opportunities with agility and professionalism. We have signed agreements for fuel oil transport and storage services in Iraq, a charter agreement to support container shipping services to and from Bangladesh and launched a

new international dry bulk shipping service with Invictus Investment.

As you can see, our perspective has widened significantly in 2022, and it will continue to grow as we launch new services, enter new markets and partner with world-leading companies. At the same time, we will maintain our intense focus on the factors that continue to differentiate AD Ports Group –operational excellence, support for innovation and new thinking, and total commitment to customer satisfaction.

“Our perspective has widened significantly in 2022 and it will continue to grow as we launch new services, enter new markets and partner with world-leading companies”

LEAD STORIES

In September, AD Ports Group completed the acquisition of a 70% equity stake in Transmar International Shipping Company (“Transmar”) and Transcargo International S.A.E. (“TCI”). As AD Ports Group’s first international acquisitions, the investment provides the company with a market-leading platform for further growth in container, cargo and port operations in Egypt, North Africa and Gulf regions, and along the entire Red Sea.

AD Ports Group has expanded its global footprint significantly in 2022, announcing a series of new investments and partnerships in markets on key trade routes for the UAE including Jordan, Uzbekistan and Egypt. In September 2022, it completed its first international acquisition of 70% equity stake in Transmar and TCI with a total purchase consideration (Enterprise Value) of AED 514 million (USD 140 million).

“The successful completion of this international acquisition is another important step in our journey of global growth and market expansion in line with the vision of our wise leadership,” said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group on the occasion of the signing. “AD Ports Group prides itself on its proven ability to invest in value-adding partnerships

and acquisitions that enhance our portfolio of services and provide new trade connections for our global customers.”

Transmar is a regional container shipping company that operates across the Middle East, Red Sea, Arabian Gulf and Eastern Coast of Africa. Ports along its routes include Adabiya and Sokhna in Egypt; Jeddah, Jubail and Dammam in the Kingdom of Saudi Arabia; Aqaba in Jordan; Port Sudan in Sudan; and Djibouti in Djibouti, Khalifa Port and Jebel Ali in the UAE. It has special capabilities for handling petrochemical products, which make up a significant proportion of trade along these routes.

TCI is a terminal operator and stevedoring company that specialises in project cargo handling, heavy lift, breakbulk, industrial breakbulk, general cargo and container handling, as well as warehousing and storage facilities. It owns and

operates a fleet of modern stevedoring equipment and has a strong focus on terminal operations in Adabiya Port, which is one of the main ports serving the Egyptian Red Sea region. TCI is the largest operator and sole containers operator in Adabiya Port, holding a significant market share of handling and stevedoring services.

Together, Transmar and TCI are on track to deliver revenue and EBITDA of around USD 137 million and USD 65 million, respectively, for full-year 2022.

“This acquisition provides us with a controlling position in two regional market leaders and enhances our presence along key trade lanes,” concluded Captain Al Shamisi. “We see significant opportunity for leveraging the expertise and experience of Transmar and TCI to enhance our commercial offering across the Gulf region and North Africa.

“This acquisition provides us with a controlling position in two regional market leaders and enhances our presence along key trade lanes. We see significant opportunity for leveraging the expertise and experience of Transmar and TCI to enhance our commercial offering across the Gulf region and North Africa.”

LEAD STORY – INVICTUS

SAFEEN FEEDERS LAUNCHES JOINT VENTURE WITH INVICTUS INVESTMENT

A new joint venture with two leading ADX-listed entities will provide international dry bulk shipping services for Invictus’ dry-bulk trading business and for customers around the world.

SAFEEN Feeders signed a major agreement with Invictus Investment to launch a new international dry bulk shipping service in September.

Under the terms of the agreement, the two companies will purchase ships through Special Purpose Vehicles, owned 85% by SAFEEN Feeders and 15% by Invictus Investment. In addition, SAFEEN Feeders and Invictus Investment will form a joint venture to operate the service. The joint venture will be owned 51% by SAFEEN Feeders and 49% by Invictus Investment.

Five ships of varying sizes will be deployed to support the service, starting in November 2022, with additional vessels envisaged as part of future growth plans.

The joint venture will serve as the carrier for Invictus’ dry-bulk trading business, which currently ships more than three million tonnes of commodities annually, principally wheat and complementary grains. The majority of the ships’ capacity will be provided to support this business.

In addition, the joint venture will also extend its commercial bulk shipping services to other companies globally, with an initial focus on the Red Sea and

Pacific corridors, the Indian sub-continent as well as the Black Sea region, and with the capacity to ship to anywhere in the world within international navigating limits.

Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Under the guidance of our wise leadership, AD Ports Group continues to invest in new initiatives that stimulate economic diversification and support the recovery of international trade.

This is an important agreement for AD Ports Group as we look to expand the diverse portfolio of international dry bulk services that we provide for customers and strengthen food security in the region and around the world. Aligning SAFEEN Feeders shipping expertise with Invictus’ diverse sourcing network will help create a significant new operator, with global reach and a modern fleet.”

Amir Abdellatif, Chief Executive Officer of Invictus Investment Company, said: “Invictus Investment has rapidly developed into a multicontinent operational reach to support trade of a wide variety of commodities, agro-foods, and finished goods.”

“This is an important agreement for AD Ports Group as we look to expand the diverse portfolio of international dry bulk services that we provide for customers and strengthen food security in the region and around the world.”

POLYFAB – HOW KEZAD GROUP PROVIDES THE FOUNDATIONS FOR GLOBAL GROWTH

A major part of KEZAD Group’s competitive offering is its development of ecosystems that offer ideal platforms for growth for customers in strategic industries. One such success story is PolyFab, whose PVC and HDPE piping products are an integral part of many of the region’s major projects. We spoke to the owner of Polyfab, Sudheer T R, about the support his company has received to grow its market share in the UAE and globally.

worked with key organizations such as Abu Dhabi Municipality, Abu Dhabi Distribution Company (ADDC), ADNOC, DEWA and FEWA, to name a few.

Can you comment on customer demand in the UAE and wider region, is it increasing and what are the most popular applications for your products?

include energy distribution networks, potable water networks, and sewerage networks, in addition to a wide range of construction projects that continue at pace in the nation.

SUDHEER T R

Tell

Polyfab started operations in 2005 out of its first factory in Ajman and has since then seen promising expansion throughout the years. Presently, Polyfab has three factories located in Ajman, Sharjah and Abu Dhabi.

As a leading player in the PVC and HDPE piping industry, we have provided solutions for the region’s major projects including Etihad Railways and Riyadh City, and

According to IMARC Group, the UAE PVC pipes market is expected to reach USD 338 million by 2027 at a CAGR of 4.81 percent. The market continues to grow driven by increasing demand for durable, low-cost, and easy-to-install piping solutions from the construction, transport, and water sectors that Polyfab can provide.

The PVC piping industry provides crucial infrastructure solutions for the development of urban, utility and transport projects in the UAE and we are proud to be a supply partner for the myriad of infrastructure projects that

With business going well, you are expanding operations in KEZAD. What growth has the company seen in the last year leading up to this?

We are also witnessing the export market in the wider MENA region picking up, with a wealth of infrastructure and construction projects in the pipeline in the GCC, Africa and Southern Asia, which make up our major export markets.

In 2021, Polyfab achieved 80 percent growth with a record turnover above AED 80 million (USD 22 million).

What makes Polyfab products stand out from your competitors and how do they benefit customers?

At Polyfab, we are committed

us about Polyfab and the big projects that you have supported?

Polyfab Owner

to providing unmatched quality solutions for our customers at competitive rates. Polyfab’s PVC and HDPE pipes and fittings are designed against the latest international standards with BSI, Kitemark (UK) approval for PVC pipes and fittings; WRAS (UK), FM approval (USA) for HDPE pipes.

What makes KEZAD a suitable base for your growth plans, how do you expect the location to benefit your operations and business development?

Polyfab began its KEZAD journey in 2020 with a single light industrial unit (LIU) and has since achieved great success owing to the strategic location of Abu Dhabi and the multi-model connectivity to key markets provided by AD Ports Group. Ideally situated at the crossroads between Abu Dhabi and Dubai, AD Ports Group’s KEZAD is the ideal location for project supply throughout the two emirates where major construction activities are

happening. With its proximity to the deep-water Khalifa Port, it is also the ideal base for our export activities across the wider region. We have had an extremely successful journey with KEZAD Group and today, thanks to the readiness of land area in KEZAD, we look forward to expanding our operations and to doubling our annual capacity from 15,000 tonnes per year to 30,000 tonnes per year with the establishment of this new facility.

“We have had an extremely successful journey with KEZAD Group and today, thanks to the readiness of land area in KEZAD, we look forward to expanding our operations and to doubling our annual capacity from 15,000 tonnes per year to 30,000 tonnes per year with the establishment of this new facility”

UNDERSTANDING THE FUTURE OF FOOD

In October, AD Ports Group hosted the World Union of Wholesale Markets (WUWM) Conference 2022, a key meeting of the largest international network of fresh food producers, wholesale markets, retailers, and food logistics companies. With food prices reaching record highs around the world, and disruption from the COVID-19 pandemic, climate change and international conflicts causing a sharp spike in hunger, we asked what are the key factors in the future of food, and how can companies

It’s important to note that Abu Dhabi Food Hub – KEZAD is a project that has collaboration at its core, with AD Ports Group, Ghassan Aboud Group and Rungis all working together to share their strengths and make this initiative a success. Such collaboration will be a key factor in shaping the future of food supply chains.

GRAHAM SANDERS

One of the key global learnings we have seen is the pivotal role that regional food hubs play in securing national and regional supply chains and providing access to healthy diets for people across communities.

Availability, accessibility, utilisation, and stability are the four key aspects of food security. Shortfalls in communication, transportation, and storage facilities, as well as gaps in commercial markets, limit people’s ability to access safe and fresh food.

Under the guidance of the UAE’s wise leadership, AD Ports Group is developing Abu Dhabi Food Hub – KEZAD to address these key areas. Located strategically across 3.3 sq. km between Abu Dhabi and Dubai, the Abu Dhabi Food Hub will support the UAE’s strategic objective to ensure that our food supply chain is fast, efficient, sustainable, and secure, and offers variety and quality.

PIERRE LEVY

We believe that improving the resilience of complex and dynamic systems starts with creating technological tools that enable us to simultaneously capture clean data, and to act on it. Invoking high-dimensional learning algorithms in combination with an adequate modelling of large-scale fresh produce flows will dramatically reinvent how global food supply chains can be optimised.

Chief Executive Officer, Abu Dhabi Food Hub – KEZAD

CEO and Co-Founder, Califrais

make a difference?

that is productivity-oriented, leading in some cases to ultra-processed food, and negative health impacts such as obesity and cancer.

Demand will continue to grow but now end-consumers are demanding a shift towards healthy, quality food, produced in an environmentally conscious way. Sustainability will be key for both producers and consumers, achieved through technology.

Examples include new farming systems, optimising the use of land and water, and adoption of alternative proteins such as plantbased and cultured ‘meat,’ algae and insects.”

Deputy CEO, EAT Foundation

We truly believe that food is the most powerful opportunity to improve the health of both people and planet, and to transform our food systems, to help accelerate the pace to reach the UN Sustainable Development Goals by 2030.

To do so, we need access to ground-breaking knowledge and science, such as the EAT-Lancet report, to ensure that food systems are part of the global climate action agenda, to unlock the potential of disruptive innovation and catalyse transformative shifts in the flow of capital into our food systems, and to work on coalitions to drive change.

FEROZ SANAULLA

JAVAD MUSHTAQ Partner,

Feroz Sanaulla, Partner,

Berger Middle East: “In the past half century, the population has doubled, and food production has tripled. This has been possible due to an ecosystem

Roland

Roland Berger Middle East

“Sustainability will be key for both producers and consumers, achieved through technology. Examples include new farming systems, optimising the use of land and water, and adoption of alternative proteins such as plant-based and cultured ‘meat’, algae and insects.”

PROJECT UPDATES

FIRST 90-TONNE BLOCK FOR THE QUAY WALL OF THE NEW CMA TERMINALS KHALIFA PORT IS INSTALLED

Announced in September 2021, the development of the new terminal is on track to be operational in H1 2025, with a budgeted capital expenditure of AED 3.3 billion.

Managed by a joint venture owned by CMA Terminals (70% ownership), a subsidiary of global shipping and logistics giant CMA CGM, and AD Ports Group (30% ownership), the terminal will have an initial capacity of 1.8 million TEUs, will be fully integrated with Etihad Rail and will significantly enhance Khalifa Port’s connectivity and position as a key gateway for the region.

Senior executives from AD Ports Group, CMA CGM, and marine contractor NMDC

attended the installation ceremony, where they signed the block and watched as it was lowered into place via a sea crane. When the quay wall is complete, the signed block will be one of more than 6,000 within the 19m deep berth pocket and will be able to accommodate the world’s largest container vessels. Other facilities under development include a 3,500-metre offshore detached breakwater, a fully builtout rail platform, and 1,000,000 sqm of the terminal yard.

SAIF AL MAZROUEI

Said: “Today marks a key moment in the development of the new terminal in Khalifa Port, which will drive increased trade volumes and add new trade links with other high-profile ports, boosting the UAE’s economy. With the arrival of CMA CGM, Khalifa Port is now providing hubs for three of the world’s top four shipping lines, consolidating our position as a leading facilitator of trade, logistics and industry.”

“With the arrival of CMA CGM, Khalifa Port is now providing hubs for three of the world’s top four shipping lines, consolidating our position as a leading facilitator of trade, logistics and industry.”

Chief Executive Officer - Ports Cluster, AD Ports Group,

AD PORTS GROUP WINS A RECORD 17 ‘STEVIE’ AWARDS

AD Ports Group enjoyed a successful evening at the 19th edition of The Stevie International Business Awards, the global awards recognising excellence and accomplishments within the workplace. This is testament to the remarkable progress that the Group has made in recent years, which has seen it successfully manage the impact of COVID-19 on international shipping and logistics, launch a new brand and list its shares on the main market of the Abu Dhabi Securities Exchange (ADX).

Among the awards received were a Gold for ‘Achievements in Growth’ for its Ports Cluster, which has broadened its international scope significantly in recent months, and Gold also for ‘Communications Department of the Year’, rewarding the team that has delivered a high volume of agenda-setting internal and external campaigns to support the Group’s business expansion.

In addition, there were Gold Awards for the Group’s Digital Cluster, for its Advanced Trade Logistics Platform (ATLP), and for ‘Marketing Campaign of the Year’ for ‘Reimagining Trade’, AD Ports Group’s global brand launch. Individual executives were also named for their outstanding work, with Gold Awards for “Executive of the

Year” going to Saif Al Mazrouei, Chief Executive Officer, Ports Cluster and Capt. Ammar Al Shaiba, Acting CEO of Maritime Cluster and CEO of SAFEEN Feeders. In addition, Majdi Abdel Aziz received the “Lifetime Achievement Award” in recognition of his 31 years of dedication and outstanding service at AD Ports Group.

Silver Awards received by AD Ports Group include

‘Customer Service Department of the Year’, ‘Achievement in International Expansion’ and ‘Fastest-Growing Company of the Year in the Middle East and Africa’, while Mahra Al-Shamsi received a Silver Award for ‘Woman of the Year’ as the first Emirati national female marine captain and Hosam Sheikhani received a Bronze Award in the ‘Customer Service Executive of the Year’ category.

Seven Gold, six Silver, and four Bronze: the largest haul in the company’s history.

AD Ports Group celebrates 17 wins in the Stevie International Business Awards 2022

MAQTA GATEWAY TO SUPPORT LAUNCH OF COMPREHENSIVE AERIAL DRONE DELIVERY SERVICE

As part of the project, Maqta Gateway will deploy its integrated digital marketplace, Margo Hub, to facilitate online transactions between customers.

Maqta Gateway, the digital arm of AD Ports Group; Emirates Post Group and SkyGo, an aerial logistics provider, will trial a new initiative that would provide comprehensive aerial drone delivery and other services in Abu Dhabi.

As part of the project, Maqta Gateway will deploy its integrated digital marketplace, Margo Hub, to facilitate online transactions between customers; Emirates Post Group will manage the service and provide tracking and status updates, while SkyGo will provide drone solutions.

Dr. Noura Al Dhaheri, CEO, Digital Cluster and CEO, Maqta Gateway, AD Ports Group, said: “Drone services could enable greater convenience and faster delivery times for customers across Abu Dhabi, while ensuring a positive environmental impact. Margo Hub is a state-ofthe-art integrated digital marketplace for all logistics needs, from trucking and

warehousing through to the last mile and express delivery, so the expansion into drone services is a seamless extension.”

The trial programme will deploy aerial drones to carry parcels and documents to specified Emirates Post sites across Abu Dhabi.

Beginning with short-range journeys, the programme will expand to long-range tests with an increased capacity to assess demand and understand the wider benefits.

“This explorative drone project represents an efficient and environmentally responsible solution for the delivery of small to medium-sized packages, in line with the Universal Postal Union’s (UPU) sustainable development objectives. By supporting this project, we are confident that we can alleviate road congestion and reduce fuel consumption in last-mile deliveries,” said Abdulla Mohammed Alashram, Group CEO of Emirates Post Group.

AL DHAHERI

– SkyGo

Said: “SkyGo is focused on proactively pioneering the technology of drones across the UAE to positively disrupt multiple sectors within the marketplace. Our ability to collaborate and deliver value has ensured continuous fruitful partnerships with leaders such as the General Civil Aviation Authority, our main partner in our drone project.”

Details of the trial programme will be released towards the end of the year, with a full commercial offering planned for launch in the next year, pending approval.

MOHAMMED

CEO

NOURA AL DHAHERI CEO of AD Ports Digital Cluster

Our participation at the September 22nd International Conference on Women, Peace and Security (ICWPS), held in Abu Dhabi, encouraged us to reflect on the progress that AD Ports Group has made towards engaging and empowering women in a historically male-dominated industry, under the guidance of our wise national leadership.

We are hugely grateful to H.H. Sheikha Fatima bint Mubarak, 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 (FDF), who was the patron of the event and whose example leads our efforts at AD Ports Group.

In the global maritime industry, women represent

just 2-3 percent, on average, of the workforce. Through a proactive strategy of femalefocused initiatives, AD Ports Group is challenging outdated workplace norms and setting a trend by increasing the proportion of women in the workforce significantly.

We continue to support the Advanced Trade & Logistics Graduates (ATLG) initiative, which was launched in 2020 under the patronage of H.H. Sheikha Fatima, by Maqta Gateway in collaboration with the General Women’s Union. Since its inception, the programme has seen tremendous success, with participants completing a total of 32,000 training hours, over more than 350 training sessions, and receiving more than 2,000 applications and 88 participants.

We have also continued to expand our purpose-driven programme, Gain Leadership

Opportunities for Women (GLOW), created in partnership with Aurora50. The programme has been designed to accelerate the careers of high-potential Emirati women and prepare them for boardlevel and leadership positions.

Our approach to supporting women’s talent has been receiving international acclaim; it was recently cited at a UK Conference by the International Maritime Organisation as a case study and a source of best practice.

As a forward-thinking business, we are aware that gender equality across the workforce is good for teamwork, leadership, and commercial success. Across different departments, at all levels – enabling men and women to contribute collaboratively benefits both people and profits.

DR.

ACHIEVING A CIRCULAR ECONOMY: HOW MANUFACTURING CAN HELP SECURE A NET-ZERO FUTURE

With the 2022 United Nations Climate Change Conference (COP27) a month away, world leaders and industry experts are refocusing their efforts to develop and implement progressive decarbonisation strategies to secure a net-zero future. What is the role that ports can play in supporting the ‘circular economy’ and how is AD Ports Group leading these efforts?

The rise of smart manufacturing offers a pivotal opportunity to balance economic growth with sustainable business practices. With one-fifth of the world’s carbon emissions and 54 per cent of world’s energy consumption coming from the manufacturing and production sectors, according to the World Economic Forum, transforming industries provides the clearest path to a cleaner, more productive future.

That is why Abu Dhabi’s recently launched industrial strategy smart manufacturing at its centre. Designed to support manufacturers that align their operations with the “reuse, reduce, recycle” foundations of a circular economy, the Abu Dhabi Industrial Strategy promotes a new industrial landscape where efforts to limit waste, conserve energy and recycle resources are at the fore.

Manufacturing Reimagined

Facilitating Abu Dhabi’s transition toward a circular economy is a key pillar of AD Ports Group’s strategy within its Economic Cities & Free Zones, driven by KEZAD Group, which provides innovative enterprises with a competitive business ecosystem from where they can forge the future of manufacturing.

Abdullah Al Hameli, Chief Executive Officer, Economic Cities & Free Zones, explains: “Since its foundation, AD Ports Group has supported the growth of the industrial sector through its Economic Cities & Free Zones, developing infrastructure and industry-leading capabilities that have helped accelerate Abu Dhabi’s sustainable growth. Bolstered by the industrial vision of Abu Dhabi’s leadership, and with its proven track record of nurturing future-looking

companies, the Group is leading the way in accelerating a circular economy to provide a cleaner future for Abu Dhabi’s communities and future generations.”

KEZAD Group’s integrated and purpose-built economic zones are today home to more than 1,750 investors from 17 key economic sectors, including a diverse range of clients who are pushing the boundaries to move their industries away from the traditional ‘take, make, and waste’ model.

Zero-waste lithium production

Australian lithium exploration and development company Lepidico, which chose KEZAD as a base to establish the first lithium production facility in the Middle East, provides a standout example of how circular economy principles can increase efficiencies during the extraction and processing of natural resources.

With the mission to develop a sustainable lithium industry, Lepidico has seized the opportunity to recover valuable by-products from lithium-mica and phosphate minerals by carefully integrating a zero-waste philosophy into the project design of its 57,000sqm chemical conversion plant.

Today, the company works closely with KEZAD Group to ensure that residue from the lithium extraction process, predominantly gypsum, reaches new customers in the construction and building materials industry.

Closed-loop textiles production

One of the newer clients in KEZAD’s sustainable ecosystem, textiles manufacturer DGrade has recently opened a 4,000 sqm recycling factory that will process up to 1 billion plastic bottles a year into recycled plastic flake.

In addition to using the flake to produce sustainable uniforms and clothing ranges for businesses, DGrade’s PET flake can also be used to manufacture a variety of recycled packaging to support the FMCG sector in achieving its sustainability goals.

DGrade is promoting a closed loop for plastic in the UAE through the process of remanufacturing. The process of making used parts come to life again through recovery, disassembly, and repair; remanufacturing focuses on extending the lifespan of materials and is a major element of the circular economy philosophy.

Energy saving ‘Hot Metal Road’

Another showcase of circular economy solutions at work in KEZAD is EGA’s Liquid Metal Transfer facility. A specially constructed roadway that enables the transport and delivery of aluminium in molten form, the ‘Hot Metal Road’ is helping to significantly reduce energy consumption during downstream conversion operations for KEZAD-based businesses.

The project highlights how AD Ports Group’s Economic Cities & Free Zones, together with KEZAD Group is making a meaningful change in the industrial sector by strategically integrating businesses to streamline processes and enhance manufacturing operations.

“Facilitating Abu Dhabi’s transition toward a circular economy is a key pillar of AD Ports Group’s strategy within its Economic Cities & Free Zones, which provides innovative enterprises with a competitive business ecosystem from where they can forge the future of manufacturing”

CELEBRATING THE LAUNCH OF KEZAD GROUP

Creation of Integrated Ecosystems for Strategic Industries will Boost Revenue and Create Cost Synergies

AD Ports Group launch ‘KEZAD Group’ in September, as part of the plan to consolidate and grow its Economic Cities & Free Zones offering.

The move follows the integration of Khalifa Industrial Zone Abu Dhabi (KIZAD) and Specialised Economic Zones (ZonesCorp) into the newly formed KEZAD Group (Khalifa Economic Zones Abu Dhabi Group), which comprises 12 economic zones with a total area of 550 square kilometres, including 100 square kilometres designated as Free Zones.

In addition, it has more than 300,000 square metres of prebuilt warehouse facilities and is home to more than 40 staff accommodation complexes with a capacity of over 450,000 beds (located in Abu Dhabi, Al Ain and Al Dhafra Region), including the 77,000 beds operated by KEZAD Group.

Today, KEZAD hosts more than 1,750 clients from 17 industrial and economic sectors catering to a range of key industries such as Pharmaceuticals, Metals, Automotive, Polymers, Building Materials Recycling, Food & Agritech, Plastics & Polymers, Retail & Logistics, Hi-Tech & Green Energy, Life Sciences, Oil & Gas, and Specialty Chemicals, each offering direct access to all industry and economic verticals from processing and storage to distribution.

Captain Mohamed Juma

Al Shamisi, Managing Director & Group CEO, AD Ports Group said: “Under the guidance of our wise leadership, AD Ports Group is committed to strengthening the foundations of the UAE’s manufacturing and industrial sectors, recognising the significant economic and national benefits that such development will bring. The launch of KEZAD Group, which brings together our Economic Cities & Free Zones assets, supports the expansion of dedicated ecosystems for strategic industries, boosting access to international markets, integrating advanced technologies, and accelerating the

transition to a circular economy.

Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group said: “We are proud to launch KEZAD Group under our Economic Cities & Free Zones portfolio, bringing together the entire scope of services and ecosystems that businesses require to thrive in today’s competitive market.”

Mohamed Al Khadar Al Ahmad, CEO, KEZAD GROUP said: “KEZAD Group is now responsible for the largest integrated trade, logistics and industrial hub in the region and is the largest operator of purpose-built economic zones and workers residential cities in the United Arab Emirates.”

KEZAD GROUP TO HOST ABU DHABI’S FIRST ELECTRIC VEHICLE ASSEMBLY FACILITY

First Phase of the Facility will have an annual capacity for 5,00010,000 vehicles

In September, KEZAD Group signed a lease agreement with NWTN to establish an Electric Vehicle (EV) assembly facility in Abu Dhabi to serve the growing demand for sustainable transport options. Founded in 2016, green mobility technology company NWTN has its headquarters in the UAE and aims to produce Smart Passenger Vehicles (SPV) that deploy AI technologies and personalised passenger experiences.

A signing ceremony took place in KEZAD to mark the occasion and showcase NWTN’s innovative range of electronic vehicles.

Under the agreement, NWTN plans to initially operate a 25,000 m2 manufacturing, research and development, vehicle testing, and logistics facility constructed by KEZAD Group with an annual capacity of 5,000-10,000 units for the assembly of semiknocked-down (SKD) Electric Vehicles. In phase two, NWTN plans to introduce several new Electric Vehicle models and expand capacity to 50,000 units annually.

Captain Mohamed Juma Al Shamisi, Managing Director & Group CEO, AD Ports Group, said: “AD Ports Group is committed to driving sustainable manufacturing, and this key strategic partnership in KIZAD will support our wise

leadership’s vision to advance industrial competitiveness while protecting the environment.”

Alan Wu, Chairman & CEO, NWTN, said: “NWTN’s partnership with AD Ports Group’s KEZAD forms a cornerstone of our broader worldwide growth strategy by enabling us to efficiently service a wider range of consumers both in the Middle East and the wider Northern Africa and European markets.”

Set to be the first assembly

facility for Electric Vehicles in Abu Dhabi, the announcement follows recent regulatory updates by the Abu Dhabi Department of Energy (DoE) that seek to accelerate the development of Electric Vehicle infrastructure as part of Abu Dhabi’s Low Emission Vehicle Strategy. The new production facility is also well aligned with UAE Net-Zero by 2050 agenda as it will strengthen industry expertise and increase the availability of low-emission vehicles in UAE.

AL HAMELI

Set to open a wealth of opportunities for businesses and investors alike, Abu Dhabi’s Industrial Strategy is a tremendous initiative that echoes our wise leadership’s ambition to establish the emirate as a global centre for knowledge-based, sustainable, and innovationfocused industries.

As a key industrial facilitator, AD Ports Group’s Economic Cities & Free Zones shares the vision of our leaders to nurture homegrown champions while also attracting the world’s best talent and most pioneering companies to enhance Abu Dhabi’s international competitiveness.

We do this by continuously enhancing our capabilities and infrastructure, a strategy that has seen our Economic Cities & Free Zones contribute

significantly to the growth of key economic sectors in Abu Dhabi and be the driving force behind the launch of our new entity, KEZAD Group.

Established to offer greater opportunities to our customers, KEZAD Group brings together the entire scope of services that industrial businesses require to thrive in today’s competitive market. It follows the integration of Khalifa Industrial Zone Abu Dhabi (KIZAD) and Specialised Economic Zones (ZonesCorp) into one entity and opens an exciting new era of growth and development.

We are proud to say that, today, KEZAD Group serves as the largest operator of integrated and purpose-built economic zones in the United Arab Emirates. With vital infrastructure and services spanning 12 economic zones over a total area of 550km2, the

unified ecosystem is home to over 1750 investors.

As an example of the kind of innovation we are nurturing, in the same month that we launched KEZAD Group, we also signing of a lease agreement with NWTN to establish the first Electric Vehicle (EV) assembly facility in Abu Dhabi.

We remain committed to keeping pace with the ambition of our leaders, and with the launch of KEZAD Group, stand ready to welcome new partnerships with the enterprises looking to be a part of grow in the capital.

ABDULLAH

Chief Executive Officer – Economic Cities & Free Zones Cluster

MICCO LOGISTICS SIGNS PREFERRED SERVICE PROVIDER AGREEMENT WITH ADNEC GROUP IN COLLABORATION WITH DB SCHENKER

Agreement will Support Organisers, Exhibitors, and Participants at Events at

Abu Dhabi National Exhibition Centre

MICCO Logistics, a wholly owned subsidiary of AD Ports Group, recently signed a Preferred Service Provider Agreement with ADNEC Group in collaboration with the international logistics service provider DB Schenker.

The agreement will support the provision of efficient regional and international logistics solutions for supporting organisers, exhibitors, and participants for exhibitions, conferences, and events organised and hosted at the Abu Dhabi National Exhibitions Centre.

The agreement will focus on the development of integrated services including, shipping, transport and other logistics operations to the highest quality.

Clifford D’Souza, Executive Vice President & Chief Operating Officer of MICCO Logistics, AD Ports Group said: “We are very pleased to enter a strategic partnership with ADNEC, which is one of the top destinations for major events in the region and the world. Leveraging MICCO’s unique capabilities and experience along with DB Schenker’s well-established position in the global logistics space, we look forward to working together in providing an integrated and comprehensive

set of solutions that enhance the experience of organisers and participants in the exhibitions and various events held at the Centre all year round. Our partnership will enable participants to take advantage of our advanced logistics services, our global land, sea and air network, considerable manpower expertise and specialised shipping solutions for many vital sectors, thereby meeting the needs of all of ADNEC’s clients.”

Ahmed Al Obaidli, Chief Operating Officer at ADNEC Group said: “This agreement aligns with our commitment to providing the highest level of services to exhibitors and participants in all the events hosted and organised at Abu Dhabi National Exhibition Centre all year round. This comes in line with our efforts for consolidating Abu Dhabi’s leading position as a global capital for business tourism, as well as consolidating the Centre’s position as a destination for major events.

This agreement will help enhance our ability to provide the highest levels of support for event organisers and exhibitors from around the world, by offering a wide range of efficient, advanced, and specialised logistics solutions according

to the highest international standards in this vital sector.”

Christopher Smith, Regional CEO for DB Schenker in the Middle East & Africa said: “We are glad to be partnering up with MICCO and ADNEC Group, the biggest exhibition centre of its kind in the region, and we’re confident that we will work together to enhance the quality of services provided to exhibitors and participants in the various events hosted by the Centre all year round. This will enable us to leverage our comprehensive logistics network and utilise our considerable expertise in this field to enhance the experience of exhibitors and conference attendees.”

MICCO Logistics, which is part of AD Ports Group’s Logistics Cluster, is one of the leading providers of shipping services in Abu Dhabi, with a modern fleet of more than 400 vehicles and specialised storage facilities. With more than 74,500 employees at over 2,100 locations in more than 130 countries, DB Schenker is one of the world’s leading logistics providers and helps clients with effective, specialised supply chain and transportation solutions throughout the region and the globe.

GLOBAL FOOD HUB – HOW THE UAE IS ADDING RESILIENCE TO FOOD SUPPLY CHAINS

Owing to its strategic location and positive economic performance following the global pandemic, and bolstered by the government’s vision to boost food security, the UAE is now home to a fast-growing food production and logistics sector and is primed to play a critical role in adding significant capacity to reinforce and secure local, regional and global food supply chains.

As the pandemic and the postpandemic periods have clearly illustrated, availability of ample food supplies is a significant global issue. According to the UN General Assembly, nearly a billion people had insufficient access to healthy food in 2021, with conditions exacerbated by supply chain bottle necks, disruption from COVID-19 and global conflicts, along with the rising impact of climate change. Food prices are forecast to stay at historically high levels until at least 2024, creating pressures on national budgets and health outcomes in all parts of the world.

Recognising the long-term challenges, the UAE has placed enhanced food production and more resilient supply chains at the heart of its vision for the future. It has announced the target to secure the top spot on the Global Food Security Index – an international measure of indices measuring 113 countries – by 2051.

Achieving that ambitious target in a region that has historically imported more than 80% of its food requires multi-partnership collaboration and a concerted effort, with world-class logistics at its heart.

Therefore, while growing food in the UAE’s agricultural conditions is only half the battle, ensuring that food reaches consumers in a timely and secure manner requires advanced innovation and collaboration.

According to a recent report from Fitch, which indicates that the UAE’s food spending is set to grow from $19 billion in 2022 to $21.5 billion in 2025, at an average growth rate of 4.2 percent per year, the nation’s success in achieving its ambitious resiliency target will be a significant milestone, creating major opportunities for growth.

Middle East’s Opportunity to Address Global Food Supply Issues

Across the UAE, a range of organisations are working to support more local food production, developing and deploying a range of cuttingedge technological solutions. Equally, organisations in Abu Dhabi are leading the efforts to build the advanced infrastructure necessary to store and distribute domestically and internationally produced food supplies to local, regional and global markets.

Thanks to its strategic location between East and West, and offering access to over 4.5 billion consumers across Europe, Africa, the Middle East, and Asia, the UAE has an opportunity to provide a central hub for food storage and distribution across a broad footprint, providing it can help address some of the major global key food logistics challenges.

One of these challenges, and an important factor in driving up food prices, has been a record level of food wastage, with up to 40% of fresh food being damaged or wasted due to inadequately-structured supply chains for the current trade dynamics, unfavourable storage conditions or poor handling.

Accordingly, moving innovative storage and logistics solutions closer to customers, supported by cutting-edge monitoring and temperature control, can go a long way in supporting the efficient and safe distribution of temperaturesensitive fresh foods.

Furthermore, a near-sourcing approach that strategically positions key operations like processing, manufacturing and storage closer to key markets,

supported by multi-modal transport links, will help shorten supply chains, reduce delivery times, and minimise damage to perishable goods.

Abu Dhabi’s Integrated Logistics Solutions

Across the UAE, a range of As the UAE’s key enabler of global trade and logistics, AD Ports Group, thanks to its integrated portfolio of end-to-end supply chain solutions, is wellequipped to support efforts to secure sufficient food supplies and ensure these can get to markets safely and efficiently.

As one of its latest milestone projects, it recently launched KLP21 - one of the largest and most advanced temperaturecontrolled logistics hubs in the Middle East and beyond.

Tailor-made to support critical sectors including food and beverage, which require specialised cold and ambient temperature-controlled storage, the hub comprises four warehouses with over 80,000 sqm of capacity supporting 100,000 pallet positions.

Supported by an advanced transport fleet of over 400 vehicles, operated by MICCO Logistics, the hub provides a unique opportunity for fresh food producers and retailers to save on costs, time and waste, while taking advantage of the hub’s position at the crossroads between major global markets.

KLP21 sits within AD Ports Group’s leading trade ecosystem that integrates multi-modal connectivity, digital innovation, and world-class industrial infrastructure to support food trade from every angle.

For example, the logistics hub benefits from proximity to two major seaports, including AD Ports Group’s flagship Khalifa Port, five international airports, major land trade corridor, and

Etihad Cargo’s upcoming rail link connecting the GCC market. Furthermore, KLP21 is located next to the upcoming Abu Dhabi Food Hub – KEZAD, which is set to be one of the largest food production and distribution hubs in the region. Developed in partnership with Ghassan Aboud Group and Rungis, the Food Hub will cover a total land area of 3.3 million sqm and feature market areas, complementary activity zones, industrial cold storage, logistics, waste management and water treatment amenities. In addition, AD Ports Group is also helping lead the global discussion around food security by hosting the World Union of Wholesale Markets (WUWM) Conference 2022 for the first time in the Middle East in October 2022. The event, which brought together local, regional, and international food producers, wholesale markets, retailers, logistics companies, as well as government representatives and policymakers, reflects the UAE’s growing global presence in this crucial discussion. The Logistics Cluster was represented at the Conference by Graham Burne, its Chief Commercial Officer, who offered his insights regarding

development of efficient and sustainable fresh food supply chains for the 21st century during one of the venue’s panel discussions. In addition, the Cluster was also pleased to offer a group of over 60 delegates an inaugural tour of the KLP21 food storage hub.

Looking Forward

Situated at the global geographic crossroads and bolstered by AD Ports Group’s strategic infrastructure and capabilities, Abu Dhabi and the UAE are in a prime position to support the global food security agenda. The food sector in the nation is thriving, and thanks to strong government investment in production and logistics capacity, buyers from around the globe can enjoy efficient and costeffective access to high-quality food products.

The rise of AgriTech businesses and advanced technology are opening opportunities for the UAE to become a net producer of food, and lead exports to other countries across the region. In an era of global food shortages, it is possible to imagine a food-secure future, supported by the vision of the UAE’s leadership.

The global logistics industry has entered a new era ushered in by a strategic shift towards supply chain resilience, as evidenced by greater emphasis on nearshoring and on-shoring of product sourcing. Driven largely by lessons learned during the pandemic and the subsequent need to mitigate supply chain risks, the shift has been made possible due to two important developments.

The first has been a trend among large global trade and logistics operators to develop and integrate their supply chain capabilities and services into singular logistics ecosystems that can drive efficiency, scalability, flexibility, and certainty. The second trend has been the industry’s embrace and adoption of technological innovation including machine learning, blockchain, and automation,

AL ZEER

Chief Executive Officer - Logistics Cluster

all of which are working together to enable the above-noted integration of assets and services. Given AD Ports Group’s significant investments in both of these areas, the Logistics Cluster is well positioned to take advantage of new opportunities that the new resilience-centric era will present.

In terms of integration, we have grown our infrastructure base along with our expertise and capabilities to offer complete end-to-end supply chain services. These developments have allowed us to deliver additional value not only to our current customers, but also enter new sectors, including food & beverage and event logistics - which you can read more about in the section below.

When it comes to technology, our use of machine learning, blockchain and automation is allowing us to streamline workflows, and seamlessly and

securely transfer data, thereby giving us complete digital oversight of our shipments, and the ability to stress test the resilience of our supply chains. In addition, we are seeing major breakthroughs in the application of fully networked autonomous emission-free vehicles and drones. Our team is already switching elements of our transport fleet to battery power and have also piloted the use of drones to count inventory, alongside evaluating their use in last mile delivery.

With these developments in mind, our Cluster is primed to lead the way, optimising supply chain resilience and deploying new innovations for agility and efficiency. We are expanding the envelope of what is possible, while guided by Abu Dhabi leadership’s vision for a sustainable and diversified economy.

FAROOK

OPENING NEW OPPORTUNITIES IN CHINA

Since the introduction of China’s Belt and Road initiative in 2013, the UAE has played a crucial role as a key partner and principal facilitator of global trade, due to its strategic location and commitment to the initiative.

Thanks to the wise leadership of the UAE government, AD Ports Group has emerged as an important platform for Chinese enterprises to enter Europe and Africa, and a critical gateway through which European and African enterprises can explore the Chinese market.

China is presently among the UAE’s top commercial partners, with bilateral commerce between China and the UAE exceeding US$75.6 billion in 2021. Additionally, around 6,000 Chinese businesses currently operate in the UAE, with a sizable Chinese population working primarily in the infrastructure and energy sectors. Chinese exports to the UAE have shown immense growth year-over-year, increasing by US$1.78 billion (53.2%) to US$5.12 billion in the period July 2021-22.

This is one of the many success stories resulting from the Belt and Road initiative, reflecting China’s commitment to forging new trade routes across Asia, Europe the Middle East, and Africa, significantly expanding their economic and political influence over 70% of the world’s population and redefining global trade for generations to come.

Overall, UAE-China bilateral trade relationship continues to grow, and Chinese investors are increasingly finding the UAE proposition extremely attractive thanks to, among many other things, its lower tax rates, and pro-enterprise environment. Furthermore, there are significant synergies between China and the GCC on anticipated development areas like tourism, telecommunications, renewable energy, smart cities, artificial intelligence, and technology-oriented businesses, all of which are creating major opportunities.

Today, Khalifa Port serves as the base of Middle East operations for China’s COSCO Shipping Lines, the world’s largest container operator, supporting trade flows and making Abu Dhabi a regional hub for China’s foreign

trade and port and shipping enterprises. More than 60% of China’s trade in the region now transits through the UAE. The range of opportunities to invest in progressive and advanced business hubs located across the UAE provides not only ample opportunities for prospective businesses but further solidifies Abu Dhabi and China’s close trade and political ties in the years to come.

Our most recent bilateral trade initiative is the recently launched new UAE-China service by SAFEEN Feeders, where a recently purchased container vessel, SAFEEN Power, has been deployed, with a capacity of 3,400 TEUs. The monthly service connects the Chinese ports of Shanghai, Qingdao and Ningbo directly with Khalifa Port in Abu Dhabi, opening an important new trade route.

This will be SAFEEN Feeders’ first service to call in China and will boost trade volumes even further, reflecting the Company’s global vision to continually expand maritime services. China-UAE trade is predicted to continue to grow significantly over the coming period, and this monthly service will support faster delivery times and provide greater efficiency.

We are also providing hubs for Chinese manufacturing within the GCC, for example, at the end of 2021 AD Ports Group announced two deals with China-based Shandong Port Group. The first was to establish the first tyre hub at KEZAD for the storage and distribution of tyres in Abu Dhabi, and the second “Sister ports” agreement was designed to further bolster trade and shipping links between the UAE and China.

The 150,000 square metres tyre hub will include warehouse management, logistics, distribution, and re-export services from Micco Logistics under AD Ports Group’s Logistics cluster and SAFEEN Feeders under the Maritime cluster. By importing tyres as bulk cargo and placing them into containers for onward shipment, the agreement provides a fresh approach to tackling current and future regional container shortage issues.

UAE business interests in the East are not solely focused on China of course, there has always been a global vision, however it’s undeniable that the Gulf business is trending more and more eastwards. This is reinforced by SAFEEN’s earlier announcement to support the new India East Coast Express 2 service, linking Singapore, Colombo in Sri Lanka and Chennai, India.

But China remains the most important trade partner in the East, with other industries also strengthening economic ties. For example, Etihad Airways and Henan Province Airport Group, have entered into an agreement to create an “Air Silk Road” aimed at boosting air cargo operations, and First Abu Dhabi Bank has opened its first branch in China in March of this year, in Shanghai.

Many such collaborations with China are expected in the coming years as Abu Dhabi continues its economic diversification programme, emerging as a principal facilitator of global trade and a fast-developing industrial destination which reinforces the UAE’s crucial role as a key partner in China’s Belt and Road Initiative.

GENERATING THOUGHT LEADERSHIP FOR THE SUPERYACHT SECTOR

Developed from a range of qualitative interviews with international experts conducted in 2021 and 2022, a new whitepaper from AD Ports Group examines the factors that attract owners to venture beyond traditional destinations.

With 5,325 registered superyachts currently on the world’s waterways, divided between 4,492 motor yachts and 833 sailing yachts, Abu Dhabi is on a journey to becoming a major destination for the global superyachting industry.

According to a report entitled ‘New Winter Oasis for Maritime Luxury Experience – Abu Dhabi’s Quest to Become a Global Superyacht Destination’, published by Abu Dhabi Maritime (AD Maritime), custodian of the Emirate’s waterways and part of AD Ports Group, the Emirate has achieved a number of important milestones that superyacht owners consider when selecting their destinations.

After extensive consultation with industry experts, the report identified four key criteria that give Abu Dhabi significant comparative advantages, including: favourable seasonal weather and sea conditions; advanced maritime infrastructure and related services; established legal and regulatory environment; and worldclass attractions incorporating social, cultural, and entertainment elements.

Superyachts, which represent the pinnacle of maritime leisure craft design and luxury lifestyle, are vessels of more than 30 metres in length predominantly residing in fewer than a dozen countries around the world. While designs may vary in terms of size and flare, superyachts all tend to have similar traits: wealthy owners, charter companies, maintenance-intensive operational requirements, and a strong demand for picturesque cruising opportunities.

Sea conditions in the Arabian Gulf, with their low winds and calm waters year-round, along with moderate low season temperatures, mean that vessels do not need to be lifted from the water and stored at great expense, thereby increasing Abu Dhabi’s attractiveness.

The report also highlighted Abu Dhabi’s extensive leisure and entertainment offerings to the global

superyacht community, including untouched coastal desert beauty featuring marine protected areas and a collection of scenic islands, beaches and anchorage destinations.

One of the areas where the Emirate has made significant progress, according to the whitepaper, is in the development of the legal and regulatory framework in support of superyacht owners and their crews, many of whom are not full-time residents in the country. The recent launch of comprehensive and fully digitised Safety Maps of all waterways within the Emirate, identifying anchorage areas, zones for motorised and non-motorised craft, and speed limits, was cited as one key improvement.

AD Ports Group’s latest whitepaper, ‘New Winter Oasis for Maritime Luxury Experience,’ can be accessed here: https://www.admaritime.ae/ superyacht-destination-whitepaper/

The global growth of the Maritime Cluster, and of SAFEEN Group in particular, has been one of the defining success factors for AD Ports Group in 2022.

We have seen the Cluster significantly expand its fleet and the numbers of routes it serves, broaden its portfolio of services, launch important new joint ventures, and add to its roster of impressive global clients.

In September alone, SAFEEN Feeders launched new trade routes to link Singapore, Chennai and Colombo, launched our first China service, signed a charter agreement with Saif Powertec to meet surging demand for container capacity between UAE and Bangladesh, and

CAPTAIN AMMAR AL SHEIBA Acting Chief Executive Officer - Maritime Cluster

launched a joint venture with Invictus Investment for a new international dry bulk shipping service.

SAFEEN Group also signed an agreement with Amaan Baghdad Company of Iraq to support a new project relating to fuel oil transport and storage from Khor Al Zubair and Umm Qasr oil terminals.

The Maritime Cluster has been able to capture these opportunities because of our unique position in the global marine services sector. The maritime sector typically has been divided between large enterprises, who have the scale to operate across the world’s most important shipping lanes, and a network of family-owned businesses that specialise in more focused service areas. AD Ports Group is one of the few

entities capable of serving both sides of the market.

We can do this because we have the agility and entrepreneurial approach to meet the maritime service needs of these smaller entities while still having the scale and infrastructure to work with the giants. This positions us in a very exciting place for future growth and development.

HOW PORTS CAN SUPPORT THE GLOBAL DECARBONISATION AGENDA

Ports around the world are working to limit their environmental impact and deploy new innovations to support long-term goals. We look at how AD Ports Group is helping to lead the way in this essential area.

The maritime and logistics industry plays a crucial role in contributing to the global decarbonisation agenda.

According to the International Maritime Organisation, shipping currently accounts for around 3 percent of global carbon dioxide emissions, with more than half of maritime emissions originating from ships berthed in ports.

In response to this pressing concern, many ports are globally aligning their strategies with the United Nations Global Compact and Sustainable Development Goals for 2030, with a distinct rise in projects that tackle sustainability, zero-carbon, and ESG initiatives within the maritime trade ecosystem.

The scale of the challenge is significant – not least the financial investment required.

According to research from the Global Maritime Forum, the scale of cumulative investment needed to achieve the IMO target of reducing carbon emissions from shipping by at least 50% by 2050 is approximately USD 1-1.4 trillion, or on average between USD 50 – 70 billion annually for 20 years.

As a result, decarbonisation requires collaboration between nations and companies. For ports to succeed in their efforts towards

decarbonisation, collaborative development and capitalising of industry best practices and R&D are required.

Several ports are developing the infrastructure required to switch from fuel oil, an intensive transition that will realise a multi-fuel landscape featuring options such as low and high sulphur, LNG, biofuels, methanol, methane, ethanol, ammonia, and green hydrogen. Given the uncertainty around the long-term prospects for these different fuels, there is an expansion in multi-fuel portfolio ecosystems and the development of green corridors and infrastructure to make operations more sustainable.

Within the GCC and greater MENA region, the adoption of sustainable and green technologies has gained significant traction over the past few years and looking at the trends in the ports ecosystem, green hydrogen-based fuels are set to be the backbone for the shipping industry’s decarbonisation journey.

Port authorities globally are working closely with universities not only to fund research on the adaptation of hydrogen vehicles for different regional climates or on methods to reduce the cost of clean fuels, but also to accelerate the onboarding

of a younger generation to fill new roles brought on by the energy transition.

Saif Al Mazrouei, CEO of Ports Cluster, AD Ports Group, explains: “For AD Ports Group, these challenges represent an opportunity for thought leadership. There is a robust energy management system to continuously monitor energy consumption and seek ways to reduce energy intensity and dependence on fossil fuels.”

The Group is also prioritising the creation of infrastructure and services for hydrogen production and shipping, recognising its potential as a green energy of the future. AD Ports Group is working with Abu Dhabi National Energy Company PJSC (TAQA) on a project for a green ammonia export facility to be based in KEZAD fuelled by hydrogen produced by an electrolyser facility paired with a solar photovoltaic (PV) power plant. The green hydrogen would be turned into liquid ammonia to supply ships converted to use ammonia as a bunker fuel and for export via specialized gas carriers.

Ammonia, which is relatively easier to transport than pure hydrogen, has several industrial uses and can also be easily turned back into hydrogen.

“For AD Ports Group, these challenges represent an opportunity for thought leadership. There is a robust energy management system to continuously monitor energy consumption and seek ways to reduce energy intensity and dependence on fossil fuels.”

FIRST INTERNATIONAL SHIPMENT ARRIVES AT MUGHARRAQ PORT

The first international shipment has arrived at Mugharraq Port since it was recognised as an international port facility under the provision of the International Code for the Security of Ships and of Port Facilities (ISPS Code) by the UAE’s Ministry of Energy and Infrastructure.

International recognition was achieved after a series of major upgrades at the port, including the extension of the quay wall up to 480 metres with additional berths, deepening of the facility’s depth to 8 metres, as well as the upgrade in yard footprint and heavy lift capability of 15 ton bearing capacity per m2 and the development of additional RoRo ramps.

The port has long served as a leading maritime facility, offering a host of offshore, oil and gas, general cargo, logistics support, bulk, and break-bulk handling services.

It connects nearby Delma Island via RoRo and ferry services. Ongoing extension work at the port, as well as the new international port certification, will support the wider long-term development plan for the Al Dhafra region.

Saif Al Mazrouei, Chief Executive Officer, Ports Cluster, AD Ports Group, said: “The arrival of our first international shipment is a significant milestone for the expansion of new international business

opportunities and will enhance Abu Dhabi’s position as a global trade hub. The recognition of Mugharraq Port as an international port will provide significant support to development within the Al Dhafra region, and enable the creation of new trade routes connecting the UAE to the world”

Mubarak Al Mazrouei, Acting Managing Director, Mussafah Port and Al Dhafra Region, AD Ports Group, said, “It is our great pleasure

welcome the first international shipment at Mugharraq Port, a testament to our commitment to the ongoing development in the Al Dhafra region – catering to both commercial and recreational maritime activities. Our international certification will support the development of Mugharraq Port’s logistical capabilities, especially in the global energy market, while supporting AD Ports Group’s aspirations to position the port as a key player in global trade.”

International recognition achieved after a series of upgrades including the extension of the quay wall, deepening of the facility’s depth, and additional Ro-Ro ramps.

“The recognition of Mugharraq Port as an international port will provide significant support to development within the Al Dhafra region, and also enable the creation of new trade routes connecting the UAE to the world.”

to

SAIF AL MAZROUEI

AD Ports Group is building a strong reputation as a reliable partner and determined executor. When we embark on a project, we strive to ensure it is delivered to the highest standards, on-time, and on-budget. This is one of the reasons many of the world’s leading companies are looking to work with us.

A great example of this has been the rapid development of the new CMA Terminals at Khalifa Port, launched in partnership with CMA CGM Group in 2021.

In September, AD Ports Group installed the first 90-tonne block for the quay wall. When the quay wall is complete, the block will be one of more than 6,000 within the 19m deep berth pocket and will be able to accommodate the world’s

largest container vessels. Marine works such as the reclamation of land for the new terminal, construction of a new port basin, and an offshore detached breakwater are also on-track Other facilities under development include a 3,500-metre offshore detached breakwater, a fully built-out rail platform, and 1,000,000 sqm of the terminal yard. Once ready, the new terminal will have an initial capacity of 1.8 million TEUs, will be fully integrated with Etihad Rail and will significantly enhance Khalifa Port’s connectivity and position as a key gateway for the region.

We are also making good progress in Aqaba, where development work on the new cruise terminal and multipurpose port is proceeding well and a number of significant announcements are coming

soon.

At the same time as achieving these construction milestones, AD Ports Group continues to live up to our environmental and community responsibilities. Sustainability is at the heart of all our port development projects, as we look to conserve both the marine ecosystems and the communities that surround our ports.

Chief Executive Officer - Ports Cluster

FACTS & FIGURES

MAPPING THE GLOBAL FOOD SECTOR

AD Ports is playing a key role in the global food sector, building innovative infrastructure such as Abu Dhabi Food Hub – KEZAD and KLP21, the advanced warehousing and logistics hub; supporting thought leadership by hosting the World Union of Wholesale Markets Conference; and launching a new international dry bulk shipping service with SAFEEN Feeders and Invictus Investment

Here are the key numbers that define this strategic sector:

Revenue in the global food market in 2022 is valued at US$8.66tn. The market is expected to grow by 6.72% annually.

In 2022, globally, bread and cereal products accounted for the highest average volume per capita of any group of food stuffs, at 78.48kg.

The UAE currently imports 85% of its food, valued at approximately US $14 billion in 2020 (up from nearly US $10 billion a decade ago).

34% of customers within the UAE are willing to pay higher prices for the perceived quality of a preferred brand.

Comparing September 2021 to September 2022, the average price of wheat has risen by 20%, maize by 29% and rice by 8%.

In 2022, 20 countries have implemented 29 food export bans, while six countries have implemented measures limiting exports.

Sources: World Bank, Australian Government Department of Agriculture, Water and the Environment, US Department of Agriculture.