AD Ports Group’s Noatum unveils new rail logistics solution

Image credit: AD Ports Group/ Twitter

Noatum Group, a subsidiary of AD Ports Group, has launched its new rail logistics solution for the Middle East region.

The new offering was inaugurated with the launch of its first rail shuttle service between Khalifa Port and Fujairah Terminals. It complements Noatum’s regional portfolio of freight forwarding products, which leverage land, sea, and air transport.

The shuttle service, provided by UAE’s national railway Etihad Rail, aims to add significant capacity to the regional logistics network and offer customers transporting large volumes of overland freight an option.

“Serving as a key pillar of our multimodal transport network, the National Railway Network – developed and operated by Etihad Railway – not only links our strategic seaports and inland logistics assets but also serves as a springboard for our nation’s and the region’s future economic development for generations to come,” said Mohamed Juma Al Shamisi, managing director and group CEO of AD Ports Group.

Noatum’s rail logistics service offers weekly departures capable of carrying up to 156 Twenty-Foot Equivalent Units (TEUs) or 78 Forty-Foot Equivalent Units (FEUs) per direction via a single train.

Depending on demand, AD Ports said the the solution can incorporate first—and last-mile truck transport, thereby providing clients with seamless end-to-end connectivity.

The new rail service offers significant advantages over traditional road transport, including cost savings, increased efficiency, and reduced environmental impact. Its scalability and ability to handle various types of cargo make it ideal for businesses seeking to optimise their logistics operations.

Noatum plans to expand the service by increasing the number of weekly departures between Khalifa Port and Fujairah Terminals and launch new shuttle services across the broader regional rail network, depending on demand.

Noatum growth strategy

Meanwhile, AD Ports’ acquisition of Noatum in November 2022, valued at $722m (Dhs2.65bn), propelled the Abu Dhabi-listed logistics giant into the top 20 global container port operators as it continues to expand its global footprint.

Noatum expanded into Egypt in August following the acquisition of a majority stake in Safina B.V., and the deal is expected to close in Q3 2024.

The acquisition of Safina is a significant step for Noatum Maritime in its ongoing expansion across the Mediterranean, which recently included the launch of its offices in Türkiye.

Noatum inaugurated Noatum Maritime’s office in Türkiye in May, expanding its reach in key regional markets and focusing on strengthening its services in the Mediterranean region. Noatum Maritime’s foray into Türkiye aligns with AD Ports’ international expansion strategy and presence in major global markets.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi and other ports and logistics parks in the Middle East, Northern Africa, the Indian Subcontinent, Central and Southeast Asia, and Europe.

The logistics behemoth AD Ports Group reported container throughput of 4.91 million TEUs in 2023, up 13 per cent year-on-year while total volumes handled at its UAE terminals increased 6 per cent to 4.6 million TEUs.

Read: AD Ports’ Noatum enters Egypt market; acquires Safina Shipping Services