AD Ports Group has progressed on its global expansion journey, signing key strategic agreements with Angolan organisations to expand maritime connectivity along Africa’s west coast.
The group has entered into a framework agreement with the Ministry of Transport of the Republic of Angola to begin collaborating on the development of maritime services and infrastructure across the country.
The group has also entered into a ‘Head of Terms’ agreement to form a joint venture with state-owned logistics and transportation company UNICARGAS, which manages the multipurpose terminal at the Port of Luanda, Angola’s busiest port that handles more than 70 per cent of the country’s international imports and 80 per cent of its non-petroleum exports.
What the agreements entail
The new joint venture, with majority ownership by AD Ports Group, will work to modernise, manage, operate the multipurpose terminal and the logistics business of UNICARGAS.
In the presence of the UAE Minister of State, Sheikh Shakhbout bin Nahyan Al Nahyan, we signed during Abu Dhabi Sustainability Week 2023 key agreements with Angolan organisations to enhance connectivity along Africa’s west coast. pic.twitter.com/nJSwVl1356
— AD Ports Group (@ADPortsGroup) January 19, 2023
Areas highlighted under the strategic framework agreement with the Ministry for potential future joint investment and development include ferry and cabotage services, maritime passenger terminals, and logistics platforms, as well as a Maritime Academy in Angola. The framework agreement also covers plans to consider development of the Caio Deepwater Terminal at Cabinda Port, located in Angola’s oil-rich northwest region.
AD Ports Group’s new agreements in Angola have the potential to significantly boost the country’s maritime industry.
Angola is considered the sixth largest economy in sub-Saharan Africa, with a GDP of $74bn. Well positioned to benefit from increased maritime trade, the country has 1,600 kilometres of Atlantic Ocean coastline, with five major operational ports, located at Luanda, Cabinda, Lobito, Soyo, and Namibe. With Angola’s oil and gas sector contributing approximately 50 per cent of the republic’s GDP, and 90 per cent of exports, the energy sector will benefit from better connectivity.
In line with the leadership’s vision
Captain Mohamed Juma Al Shamisi, MD and group CEO, AD Ports Group, said: “Our collaboration with the Republic of Angola demonstrates AD Ports Group’s commitment to supporting the UAE’s strong and evolving relationship with Angola in line with the directions of our wise leadership.
“We are focused on building fast and efficient maritime trade routes, and we are pleased to bring our robust knowledge base to Angola and the ports located on Africa’s west coast. These agreements reflect the trust the Ministry of Transport and the team at UNICARGAS have placed in us, and in our ability to contribute to Angola’s economic growth plans.”
Ricardo Viegas D´Abreu, Minister for Transport of the Republic of Angola, commented: “The development of the Republic of Angola’s port infrastructure is a key priority of our 2023-2027 National Development Plan. Modernising our port infrastructure is a vital step for Angola to maximise the potential of our natural resources and promote economic growth for the benefit of our people. We are delighted to enter into the framework agreement with AD Ports Group and to benefit from its established knowledge and expertise as a global maritime player.”
Joaquim Nazaré Pimentel da Piedade, the management committee coordinator for UNICARGAS, said: “Our aim is to develop a state-of-the-art multipurpose terminal to enhance the Port of Luanda’s position as Angola’s busiest port, to accelerate trade flows and contribute to economic growth.”
In other news, in December last year, AD Ports Group, and the Africa Finance Corporation (AFC), a provider of infrastructure solutions in Africa, inked a contract to address infrastructure gaps across the continent. The two organisations aim on identifying, financing, developing and investing in much-needed ports, warehouses, maritime and logistics infrastructure projects across Africa. Both parties will bring their technical expertise and financial capacity and networks to a range of development initiatives, focusing on brownfield and greenfield opportunities.