AD Ports Group expands global presence, boosts financial performance in 2024

AD Ports Group has reported consistent expansion and a series of strategic investments in 2024.

AD Ports Group ended the year on a high note, marking a significant milestone with the inauguration of CMA Terminals Khalifa Port.

The new container terminal at Khalifa Port increases the port’s capacity by 23 per cent, further establishing it as one of the world’s fastest-growing and most efficient commercial hubs.

In addition, Khalifa Port’s Autoterminal saw a 30 per cent rise in vehicle traffic in H1 2024, bolstered by the rapid construction of 90,000 square meters of additional storage capacity.

This expansion enhances the terminal’s ability to support the growing automotive trade in the region.

Strategic expansion and international growth

The group’s integration of Noatum’s assets was another key development, aligning Noatum’s international brand equity with AD Ports Group’s growth strategy.

The acquisition streamlines operations and opens new product offerings and markets, cementing the Group’s position as a leading enabler of global trade and logistics.

AD Ports Group’s global expansion efforts also gained momentum in 2024 with the securing of a 25-year concession at Karachi Port in Pakistan. The group plans to invest $75m over the next two years to develop and manage the bulk and general cargo terminal at the port, further expanding its footprint in South Asia.

In Egypt, AD Ports strengthened its cruise operations by signing agreements with the Red Sea Ports Authority to develop and manage three cruise terminals in Safaga, Hurghada, and Sharm El Sheikh. This complements the group’s existing terminal in Aqaba, Jordan, enhancing its position in the regional cruise market.

The acquisition of Safina B.V. in Egypt extends AD Ports Group’s network to 15 Egyptian ports, facilitating increased trade through the Suez Canal. The group’s growth in Egypt also includes its previous acquisitions of Transmar and TCI, as well as a multipurpose terminal concession in Safaga.

The group’s expansion into Angola included a concession to operate and develop a multipurpose terminal at the Port of Luanda, a critical transhipment hub for Central and West Africa. The group also formed a joint venture in Tanzania with Adani, acquiring a majority stake in Tanzania International Container Terminal Services (TICTS).

In Georgia, AD Ports Group acquired a 60 per cent stake in Tbilisi Dry Port, an intermodal logistics facility, connecting the Middle Corridor route from Asia to Europe. This acquisition enhances the group’s logistics capabilities across the region, linking ports in Kazakhstan, Azerbaijan, Armenia, Georgia, and Türkiye.

Ad Ports Group: Financial performance and credit rating

The group delivered a strong performance in the first nine months of 2024, posting record revenue of Dhs12.72bn and net profit of Dhs1.29bn.

Growth was led by strong performances across core sectors: Ports (+13 per cent), Maritime & Shipping (+46 per cent), Economic Cities & Free Zones (+11 per cent), Logistics (+26 per cent), and Digital (+4 per cent).

The group’s strong financial performance and liquidity were further recognised by Moody’s, which assigned AD Ports an A1 credit rating with a stable outlook. The rating reflects its robust growth prospects and operational efficiency.

In addition to strong financial performance, AD Ports secured favourable refinancing terms, including the refinancing of a $2.25bn syndicated loan in September and the upsizing of its revolving credit facility (RCF) in December from $1bn to $2.125bn.

Technological advancements and sustainability

AD Ports Group continued its focus on digital transformation in 2024 with the acquisition of a 60 per cent equity stake in Dubai Technologies, a leading developer of intelligent ports’ operations management software. The acquisition strengthens AD Ports Group’s digital cluster, now rebranded as Maqta Technologies Group, which focuses on facilitating global trade through advanced digital solutions.

One of the Cluster’s key projects was a partnership with Jordan’s Aqaba Development Corporation to design a Port Community System for Aqaba’s port, marking the first export of AD Ports’ digitalisation solution.

Further showcasing its commitment to sustainability, AD Ports Group, in collaboration with NMDC Group, launched the state-of-the-art SAFEEN Green, an unmanned vessel designed to revolutionise marine surveys and inspections.

Additionally, its joint venture with Damen Shipyards Group set a Guinness World Record™️ for the world’s most powerful electric tugboat, Bu Tinah, which reduces emissions from marine operations.

Economic zones and industrial development

The group’s KEZAD Group, the largest operator of integrated economic zones in the region, achieved significant success in 2024 with multiple developments. A notable highlight was the Dhs367m investment to establish a modular fabrication facility with NMDC Energy, which is expected to create approximately 3,000 jobs in the oil and gas sector.

Additionally, Titan Lithium signed a 50-year lease agreement to build a lithium processing plant in KEZAD, positioning the UAE as a key player in the global lithium market. The plant, with an investment of Dhs5bn, will produce battery-grade lithium products.

KEZAD also secured a Dhs1bn commitment from Azizi Developments to build 12 factories, marking one of the largest land leases of the year. The zone is also expanding its warehousing capacity with a Dhs621m investment to add over 250,000 sqm of space, increasing total warehousing capacity by 43 per cent.

Looking ahead

Captain Mohamed Juma Al Shamisi, MD and group CEO of AD Ports Group, said: “In 2024, we have strengthened our position in global trade and logistics through strategic expansions and investments. With the recent inauguration of CMA Terminals Khalifa Port and the integration of Noatum, we are poised to further expand our international reach.”

Al Shamisi added: “Our ranking among the top 20 global container port operators for the first time, coupled with our ongoing expansion in Angola, Pakistan, Egypt, and Georgia, demonstrates the robust health of our core businesses and the success of our internationalisation strategy.”