Good morning, ladies and gents. The news cycle continues to be dominated by unrest in the Red Sea with Suez Canal shipping volumes impacted and we have some news emerging from Morocco’s planned port expansion.

PSA-

Temporary bridge closure in Abu Dhabi: A bridge connecting Al Maryah Island to Al Zahiyah in Abu Dhabi is now closed until Saturday, 3 February, Abu Dhabi’s Integrated Transport Centersaid.

WATCH THIS SPACE-

#1- The launch of four international companies in Qatar under the Belt and Road Group is set to boost Chinese investments in the country, Gulf Times reports, citing a government official. The group is looking to enhance collaboration in several sectors including infrastructure, trading, and airport and port development, Chairman of the Belt and Road Group Pegasus Wong is quoted as saying. “Our primary mission is to foster cooperation between enterprises in China, Hong Kong, and Qatar, aligning seamlessly with the Belt and Road Initiative,” Wong added.

#2- Egypt aims to boost its trade with Africa by 20% to reach USD 7.4 bn within five years, Egyptian Commercial Service’s Chairman Yahya Elwathik Bellah told Asharq Business. The target is outlined in the AfCFTA framework signed in 2018, Bellah said, which has been endorsed by 47 African nations to date and is set to come into force this year.

#3- Etihad looks to recover to the pre-pandemic volume of 18 mn passengers a year by 2025, Group CEO Antonoaldo Neves told Wam. The carrier is also looking to add new destinations in 2024 including Boston, USA and Nairobi, Kenya, along with more frequent flights to India, Egypt, Sri Lanka, Pakistan, and the Maldives. Etihad has also returned to service large capacity aircraft such as the A380 in a bid to nearly double its 86-aircraft fleet to 160 by 2030, Neves added.

DATA POINTS-

#1- KSA’s e-commerce sector is expected to rake in some SAR 260 bn annually by 2025,given a projected 15% CAGR between 2020 and 2025, according to a Commerce Ministry 4Q 2023 trade bulletin (pdf).

AND- KSA’s Jazan-Farasan Ferry Project’s cargo ferries made over 4.3k trips in 2023, carrying over 47k freight trucks loaded with goods, SPA reports citing a Transport General Authority (TGA) quarterly report. The service also transported over 488k passengers for the year and a total of 92k vehicles. The service is pro bono, with six daily trips for freight and two for passengers.

#2- Astarachay highway bridge increases vehicle capacity: The new Astarachay highway bridge connecting Iran and Azerbaijan has increased vehicle capacity at the border to 300, state-news agency Azertac reports. The new bridge was built to boost trade and transit between the two countries. Iran and Azerbaijan also plan to expand their transit capacity with the Astara-Rasht railway project, scheduled to be commissioned in 2027. Iran and Russia are finalizing the technical details for the EUR 1.6 bn project, including inking an agreement for a loan from the Russia side for the project.

#3- Clarkson’s indicates shipping market drop in 2023, but still above long-term trend:Maritime consultancy and shipping solutions agency Clarksons ’ annual shipping market index, ClarkSea, recorded a 37% y-o-y drop to USD 23.6k in average day rates in 2023, although it was still 33% above the 10-year trend, Seatrade Maritime reports, citing ClarkSea index. Global seaborne trade climbed by 3% y-o-y to USD 12.3 bn tonnes and world fleet capacity grew by 3.2% y-o-y to 2.3 bn dwt. Seaborne tonne-mile trade rose by 5% y-o-y, with oil and oil products increasing by 7% to 10% y-o-y fuelled by the redistribution of Russian oil flows. Dry bulk trade increased by 4.3% y-o-y, but container volumes remained weak.

MARKET WATCH-

Saudi Arabia has lowered the February price of its Arab Light oil to Asian companies, reaching a 27-month low, Reuters said, citing an Aramco statement. The move follows increased competition and worries about an oversupply in the market. Saudi Aramco cut the official selling price (OSP) for February-loading Arab Light to Asia by USD 2 a barrel from January, setting the OSP at USD 1.5 over Oman/Dubai quotes. The kingdom’s price cut — the largest in 13 months — is in line with market expectations, as refiners called for competitive rates against other Middle Eastern producers and Atlantic Basin cargoes.

CIRCLE YOUR CALENDAR-

The UAE will host The Dubai International Pharma and Technologies Conference and Exhibition from Tuesday, 9 January through to Thursday, 11 January in Dubai.The event will bring together the entire pharma value chain, from suppliers, manufacturers, distributors to pharmacists.

KSA will host the Roshn Supply Chain Forum on Thursday, 11 January, in Riyadh. The event will host a series of discussions centering around supply chain growth with applications to real estate by bringing together consultants, contractors, manufacturers and other supply chain professionals.

The UAE will host Transport Middle East from Tuesday, 23 January through to Thursday, 25 January in Abu Dhabi. The event will see more than 30 speakers come together to tackle the current challenges in global transportation and logistics.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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