AD Ports Group, Vale to develop low-carbon mega hub for steel industry

AD Ports Group has signed an MoU with Vale, the world’s largest producer of iron ore and nickel, and one of the leading logistics operators in Brazil.

The MoU will see the development of a ‘Mega Hub’ in Abu Dhabi for industrial complexes that manufacture low-carbon items for the steel-making industry for both the local and seaborne markets, with a significant reduction of CO2 emissions.

Land and related services from KEZAD will be allocated for the ‘Mega Hub’, in addition to the development and management of a high-tech handling facility at Khalifa Port, capable of accommodating Valemax vessels with a handling capacity of up to 50 million tonnes of cargo per annum.

AD Ports Group will develop and manage conveyor infrastructure to transport iron ore and finished products to and from Khalifa Port and KEZAD and will be exploring commercial collaboration with Vale on the marketing and sale of various bi-products of the manufacturing process in the UAE and the wider region.

Mega Hub in line with sustainability objectives

The MoU also includes a maritime collaboration to explore opportunities related to the management and operation of very large ore carriers (VLOCs) and other possible avenues of partnership.

Captain Mohamed Juma Al Shamisi, managing director and CEO of AD Ports Group, said, “The UAE is committed to not only finding ways to reduce carbon emissions but also to support all efforts to positively affect the global environment. This signing with Vale represents our commitment to the sustainable objectives as set out by the visionary leadership of the UAE.

“Growth and sustainability must go hand in hand, our collaboration with Vale signifies a key step in our contribution towards meeting the UAE Net Zero 2050 strategic initiative.”

Eduardo Bartolomeo, CEO of Vale, said, “We are encouraged by this opportunity to build a Mega Hub in the UAE, a country which is strategically positioned to positively influence our drive to significantly reduce CO2 emissions around the globe. Our ability to leverage this new concept of using low-carbon technology in the production of hot briquetted iron signals the success of our products globally.”

The initiative contributes to Vale’s commitment to reduce 15 per cent of net Scope 3 emissions by 2035.

Vale is also seeking to reduce its absolute Scope 1 and 2 emissions by 33 per cent by 2030 and achieve net zero by 2050, in line with the Paris Agreement, leading the evolution process towards sustainable mining.

By leveraging their collective strengths, AD Ports Group and Vale are seeking to enhance the overall efficiency of the global supply chain.

Image courtesy: WAM