Abu Dhabi’s AD Ports Group, SEG to create logistics cluster in Uzbekistan

Abu Dhabi’s AD Ports Group and Uzbekistan’s oil and gas company Sanoat Energetika Guruhi (SEG) have signed an agreement to establish a joint venture for developing logistics infrastructure and services in Uzbekistan.

The agreement will also aim to accelerate the output of Uzbek products, in particular SEG products, to the global market. Under the agreement, the two companies will establish a partnership in logistics and forwarding services, including multimodal forwarding services, road, rail and air transportation, development of container warehouses, warehouse and other logistics infrastructure, contract logistics and customs clearance.

The entities intend to expand the work of the logistics centre by organising transport flows of food products and consumer goods in the near future. The partnership continues SEG’s development strategy to build a vertically integrated oil and gas company able to extract and process hydrocarbon raw materials into high value-added products. AD Ports Group will establish its first foreign office in Uzbekistan to support the project

Falah Mohammed Al Ahbabi, chairman of AD Ports Group, said: “We are delighted to be able to deploy the expertise and resources of AD Ports Group to address the core logistics challenges and opportunities present within the country. We believe that we will be able to contribute to unlocking the wider economic potential of the nation by building new supply chains and opening new trade routes.”

Bakhtiyor Fazilov, chairman of the board of SEG, said: “This agreement will have a significant impact on economic growth in our country, creating new jobs and opening up new opportunities for trade and development. In collaboration with AD Ports Group, we will create new trade corridors equipped with advanced digital services and supported by world-class logistics facilities, including inter-transport freight forwarding.

“Uzbekistan is a major producer of key export commodities, including oil, natural gas, and gold, and the second largest exporter of cotton in the world. Via new joint ventures, we will be able to bring a wider range of our products to the global market.”

Capt. Mohamed Juma Al Shamisi, managing director and group CEO, AD Ports Group, said: “ With our expertise, we will develop multi-modal transport connections that will bring goods to market faster and more efficiently. Our strategic investment in infrastructure and capabilities will help support international companies by opening new points of entry into Central Asian markets and ensuring the highest levels of service and support.”

Last month, AD Ports Group signed an agreement with Enter Engineering Group to launch new businesses providing logistics and freight forwarding services in Uzbekistan.

Read: AD Ports Group to launch logistics and freight services in Uzbekistan