AD Ports Group bolsters its fleet with Dhs955m investment
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AD Ports Group bolsters its fleet with Dhs955m investment

AD Ports Group bolsters its fleet with Dhs955m investment

The acquisition of the new vessels is part of the company’s expansion strategy that is aimed at broadening its portfolio of services

Kudakwashe Muzoriwa
AD Ports Group strengthens fleet

Abu Dhabi’s AD Ports Group has acquired five bulk carriers and three crude oil tankers worth $260m (Dhs955m), as part of the ports operator’s broader strategy to advance its commercial shipping capabilities.

The five bulk carriers, to be acquired for Dhs459m, form part of the long-term agreement with Saif Powertec, signed in April 2022, for the movement of general cargo and dry bulk cargo between Fujairah Port in the UAE and Bangladesh, the Indian subcontinent, South-East Asia and other global destinations.

“The extension of our fleet with the purchase of another five bulk carriers and the addition of an initial three crude oil tankers is a remarkable milestone for our maritime cluster and will further enable us to equip our business with the right assets and logistics capabilities to adapt to the evolving global demand within the industries in which we operate,” said Mohamed Juma Al Shamisi, managing director and Group CEO at AD Ports Group.

AD Ports’ feeder service, SAFEEN Feeders and Saif Powertec will work together to facilitate global trade and cargo services over the next 15 years.

The purchase of three crude oil tankers, with a total transaction value of Dhs496m, will form part of the seven-year vessel pooling agreement formed in December 2022 with KazMorTransFlot, a subsidiary of Kazakh National Oil Company (KazMunayGas), for the global transportation of crude oil.

Under the agreement, AD Ports and KazMunayGas will collaborate on a broad range of projects including the development of a new fleet of shallow-water vessels to support offshore operations in the Caspian Sea and the development of a tanker fleet to support the export of Kazakh oil.

AD Ports said these agreements solidify its collaborative ventures across the Central and South Asian region supporting international trade and enhancing connectivity, providing a solid foundation for growth in some of the most important markets.

AD Ports’ global expansion

Meanwhile, the acquisitions of the eight vessels follow the recently signed agreements as part of AD Ports’ strategic global expansion to enhance its shipping division under its subsidiary, Maritime Cluster.

Earlier in March, AD Ports signed an agreement with Congo to develop, operate and manage a new multipurpose terminal in Pointe-Noire.

Read: AD Ports Group inks 30-year deal to develop, operate port in Egypt

The shipping and logistics group also signed a 30-year concession agreement worth $200m to develop, manage and operate the Egyptian multi-purpose terminal in the Red Sea port of Safaga.

The terminal will be developed over an approximate area of 810,000 square meters and is set to be operational in Q2 2025. It will boast a quay wall of up to 1,000 meters and it will have the capacity to handle 5 million tonnes of dry bulk and general cargo, 1 million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.

AD Ports Group vesselsAD Ports also partnered with the Suez Canal Economic Zone to develop several projects in ports within the economic zone as the port operator is bolstering its operations in Egypt.

In November, the Abu Dhabi-listed group acquired Spanish logistics firm Noatum for $680m in November 2022, a deal that gives the ports operator exposure to maritime and logistics activities in the Mediterranean as well as port facilities in the European nation.

The company has also built new strategic partnerships to develop connectivity between the GCC region, the Indian Ocean, the Red Sea, East Africa and Central Asia – vital trading regions that will help drive economic growth in the region and internationally.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

Over the past half-decade, the UAE has risen into the upper echelons of the global maritime industry as the Gulf state has evolved into a key logistics hub.

Read: AD Ports, Suez Canal Economic Zone partner to develop projects in Egypt

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