AD Ports Group to drive presence in Uzbekistan logistics market via JV

AD Ports Group has created a joint venture with Uzbekistan’s SEG ENERA Group to provide end-to-end global logistics services across the central Asian country.

The new venture, which will operate under the ADL-Ulanish brand, will offer a variety of advanced services including freight forwarding, air and land logistics, warehousing and storage, customs clearance services and development of inland container depots and dry ports.

The company will also provide a range of digital solutions to boost service integration and efficiency as well as bring expertise in food security and supply chains to support the creation of a food hub in Uzbekistan.

The Abu Dhabi-based ports operator said it will bring its cutting-edge expertise in global supply chain logistics and advanced technology to the new venture to address the logistics challenges faced by enterprises in Uzbekistan.

Uzbekistan company SEG ENERA to offer regional experience

AD Ports’ partner in the venture, SEG ENERA, will contribute its regional expertise, best practices and industrial assets including warehousing capacity, alongside rail and trucking fleets.

Through the venture, the two entities plan to serve not only SEG ENERA’s business needs but also those of other clients within the nation’s market representing a spectrum of industry sectors that range from industrial project logistics to oil and gas to e-commerce.

Uzbekistan, a double-landlocked nation that is surrounded by five additional landlocked nations, is a vital global land logistics hub, whose regional GDP is forecasted to grow from 3.9 per cent in 2023 to 4.3 per cent in 2024, according to the World Bank.

Farook Al Zeer, chairman, Logistics Cluster, AD Ports Group, said: “There is significant demand for freight forwarding and warehousing services in Uzbekistan, which has seen a major economic expansion in recent years, driven by important reforms and modernisation efforts. By leveraging our global expertise, we are positioned to make a transformational impact across key industries, facilitated by advanced digital services and supported by a world-class team.” 

The UAE and Uzbekistan signed a bilateral MoU to support cooperation in 27 sectors, involving initiatives in government modernisation to benefit from the Gulf country’s experience and promote the relations between the two nations.

AD Ports: Growth prospects

Meanwhile, AD Ports has made several acquisitions since going public in February 2022 as the company looks to expand its global footprint while growing organically and inorganically.

AD Ports bought Spanish logistics firm Noatum for $680m in November 2022, a deal that offers the ports company exposure to maritime and logistics activities in the Mediterranean as well as port facilities in the European nation.

The Noatum deal came after the company had acquired an 80 per cent stake in Dubai-based Global Feeder Shipping for $800m earlier that month, a deal that is expected to help AD Ports by linking its assets, including Khalifa Port more closely to core markets in the Arabian Gulf, Red Sea, Indian Subcontinent and Turkey.

Read: AD Ports Group acquires 80% stake in Global Feeder Shipping

AD Ports also acquire a 70 per cent stake in International Associated Cargo Carrier, which owns two Egyptian maritime companies Transmar International Shipping Company and Transcargo International, in a deal valued at $140m.

AD Ports handled a record general cargo volume increased by 3 per cent to reach 31.7 million tonnes in 2022, compared with 44.6 million tonnes in 2021, which included a one-off sand supply project of 14.7 million tonnes.

Also read: AD Ports Group reports strong growth, global expansion in first year as publicly listed entity

Founded in 2006, AD Ports contributes as much as 14% to Abu Dhabi’s non-oil economy and owns and operates 11 ports and terminals in the UAE and Guinea in Africa.

Our record financial results for 2022 and a special world record were key achievements in February for AD Ports Group.#ADPortsGroup #MonthInAMinute #Achievements pic.twitter.com/5FhWjmSLf7

— AD Ports Group (@ADPortsGroup) March 1, 2023