UAE’s AD Ports Group boosts cooperation with Shandong Ports Group

Image courtesy: AD Ports Group

AD Ports Group has signed multiple collaboration agreements with China’s Shandong Port Group (SPG) to forge a partnership and strengthen cooperation, announced in December 2021, between the two ports and logistics companies.

Under the agreement, Shandong Port will transport passenger vehicles from its ports in China to Autoterminal Khalifa Port, to be stored and displayed within facilities in KEZAD.

The new cooperation is established to strengthen the position of Abu Dhabi as a preferred destination for the Chinese Automotive Industry. It covers all aspects of the operations, display and services.

“As an integrated hub for trade, logistics and Industry, KEZAD Group continues to support the development of the diversified economy of Abu Dhabi and the UAE in line with the vision of our wise leadership,” said Abdullah Al Hameli, CEO of Economic Cities & Free Zones, AD Ports Group.

By expanding our cooperation with Shandong Ports Group, we are attracting Chinese automotive companies using Autoterminal Khalifa Port and KEZAD Group, demonstrating our ability to serve the automotive industry through an integrated solution.
Learn more: https://t.co/CxynTtIicH pic.twitter.com/NCGPlaDijw

— AD Ports Group (@ADPortsGroup) July 27, 2023

Al Hameli said AD Ports Group will continue to work with like-minded conglomerates such as Shandong Port, adding that the two entities are active players in implementing China’s Belt and Road Initiative to boost trade cooperation and accelerate growth between the UAE and China.

Saif Al Mazrouei, CEO of Ports Cluster, AD Ports Group said, “Our agreements with Shandong Ports Group underscore our commitment to fostering global connections and serving as a catalyst for economic growth. As we embark on this journey together, we are poised to redefine logistics and port operations, setting new benchmarks for the industry at large, whilst driving prosperity and further strengthening our position globally.”

AD Ports expands global reach

Meanwhile, the agreements with Shandong Port follow a string of deals and agreements as AD Ports seeks to become a more diversified, integrated logistics company.

The ports operator signed a 50-year concession agreement with Karachi Port Trust to operate and develop the Karachi Gateway Terminal, berths 6 to 9 at Karachi Port in June. 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, one million tonnes of liquid bulk, 450K TEUs of containerised cargo, and 50K CEUs of RORO.

The Abu Dhabi-listed logistics giant also completed the acquisition of Spain-based logistics services provider Noatum in a deal valued at $722m (Dhs2.65bn) earlier in July.

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 Group completes acquisition of Spain’s Noatum