TODAY: DP World reportedly secures financing for Gujarat port development

Good morning, nice people. Ramadan is back and we hope your first day of fasting is going smoothly so far. We have a packed issue today with news from across the regional logistics sector, starting with…

THE BIG LOGISTICS STORY- DP World is reportedly finalizing a USD 422 mn financing facility for the construction of the mega container terminal at Kandla, Gujarat with funds from the National Bank for Financing Infrastructure and Development and Axis Bank.

^^ We have everything on this story and more in the news well, below.

WATCH THIS SPACE-

#1- Saudi Arabia Railways (SAR) signed a three-year contract with Danish shipping giant Maersk to increase the number of Maersk containers transported through its trains between Dammam’s King Abdulaziz Port and Riyadh’s Dry Port, according to a post on X by SAR. The partnership would help raise the Kingdom’s ranking in the World Bank’s Logistics Performance Index, maintain roads infrastructure and reduce emissions.

#2- ADQ taps advisors for Etihad IPO: ADQ has chosen Citigroup, HSBC, First Abu Dhabi Bank as advisers for its prospective Etihad IPO, Bloomberg reported last week, citing people familiar with the matter. Alongside these potential appointments, Rothschild & Co. has been appointed as ADQ’s independent financial advisor.

REMEMBER- ADQ is considering listing Etihad on the public market “as soon as this year,” with the specific timing and size of the offering still undecided. The business information service said ADQ is eyeing going after both a traditional IPO and direct listing.

ALSO-The airline plans to hire 2k pilots, cabin crew, and mechanics this year, ahead of its move to expand its fleet by 15 planes in 2025, Khaleej Times reports. The ADQ-owned carrier reported a fivefold increase in net income to AED 525 mn in 2023 as it looks to prepare for a potential IPO.

IN OTHER AVIATION NEWS- Emirates is backing US plane maker Boeing’s bid to reacquire subcontractor Spirit AeroSystems, saying the move is a step in the right direction in terms of solving Boeing’s quality problems, Reuters reported last week, citing comments made by President Tim Clark. Spirit manufactures roughly 70% of Boeings’ 737 MAX, in addition to forward fuselage sections of the 787 and upcoming 777X, both of which feature strongly in Emirates’ order books. Spirit was once a Boeing subsidiary, but separated from its parent company in 2005. Airbus is also reportedly in talks to acquire some Spirit operations that supply it with parts, the newswire added citing industry sources. The Federal Aviation Administration cleared Boeing’s 737 MAX 9 aircraft to return to service early last month, following a mid-flight panel blow out that saw the fleet grounded in January.

ON A RELATED NOTE-The aviation industry is “likely to miss the 2050 net zero target,” former chief executive of Amsterdam’s Schiphol airport Ruud Sondag told The Financial Times, due to the industry’s continued expansion in airfleets — projected to increase by 28% globally by 2034 to reach 36.4k aircrafts — at a rate faster than the commercialization of sustainable aviation fuel or other green alternatives. The industry will fail to achieve the targets stipulated in the Paris Agreement unless European governments intervene by raising taxes or imposing caps on flights, according to Sondag, who urged that “we need to do something. And if that’s a standstill [in air travel growth] for the time being. [Then] Okay.”

#3- Could Egypt’s Import backlogs soon be a thing of the past?Prime Minister Moustafa Madbouly made a visit to Alexandria Port last Thursday to oversee the release of goods and make a televised address to the press (watch, runtime: 17:38) to signal the Egyptian government’s commitment and ability to clear the backlog of goods in ports stemming from the FX shortage. Madbouly announced that USD 231 mn worth of strategic commodities — excluding gold and oil products — and some USD 464 mn worth of production materials were released between 1-6 March. Over USD 12 bn worth of goods had been released since 1 January, Egyptian Customs Authority (ECA) head El Shahat Ghatwary said.

Strategic commodities and production inputs are priority number one: Food, medicine, animal feed, oil products, raw materials, and production requirements are at the top of the list when it comes to making FX available to speed up the release of goods, Madbouly said. Providing FX to release finished products and consumer goods will be at the bottom of the state’s list of priorities, Madouly added, emphasizing the “the necessity of deepening local industrialization, and the importance of replacing imported products with locally manufactured products.”

#4-Arab Bridge Maritime — a JV between the governments of Egypt, Iraq, and Jordan — is looking to bolster company capital by some USD 105 mn, on the back of strong earnings in 2023 which were boosted by Red Sea diversions, according to a statement, citing comments made by General Manager Adnan Al Abdala said at a general assembly. The company is proceeding with plans to modernize its fleet and seeks to acquire new Ro-Pax cargo vessels to haul goods between Aqaba and Nuweiba, among other equipment, the statement added.

#5- Iraq is looking to construct a 2 mn barrel per day (bpd) oil pipeline, connecting to export terminals in the south of the country, at an investment that is upward of USD 416 mn, and within a 2024 to 2025 timeframe, Al Sharq Al Awsat reports, citing statements by head of state-owned Basra Oil Company, Bassem Abdul Karim. Iraq is in talks with Dutch dredging and heavylift outfit Boskalis to implement the pipeline, which will link oil storage infrastructure to Basra’s Al Faw Port, Abdul Karim said. The new pipeline, which will be the third in a network connecting to southern ports, will boost Iraq’s oil exports via the Persian Gulf from 3.4 mn bpd to 5 mn bpd, the Iraqi official added. The latest initiative comes on the heels of the recent return to service of the northern Baiji-Kirkuk pipeline, which saw a 10-year hiatus due to sabotage, Iraq’s oil ministry said.

MARKET WATCH-

#1- Baltic Index records weekly gains: The Baltic Exchange’s Dry Bulk Index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 4.2% to 2,345 points on Friday, and was up 6.4% for the week, recording its fifth weekly gain due to strong demand across all vessel segments, Reuters reported on Saturday. The capesize subindex rose 6.7% to 4,245 points, its highest level since 14 December, and the panamax subindex gained 1.1% to 1,861 points. The smaller supramax segment gained one point to 1,318 points, the newswire said.

#2- Oil dipped 1% on Friday,as sluggish demand in China outweighed gains due to extended OPEC+ production cuts, Reuters reported on Friday. Brent crude dipped 1.1% to USD 82.08 a barrel, while West Texas Intermediate (WTI) fell 1.2% to USD 78.01 a barrel, with Brent and WTI falling 1.8% and 2.5% for the week, the newswire said. OPEC+ latest decision to extend cuts into this year’s second quarter and declining Russian volumes on the back of sanctions have tightened the market, but demand is also capped by a slowdown in China and lack of a seasonal uptick in US demand, the newswire said citing an analyst.

#3- Drewry’s World Container Index (WCI) dropped 6% to USD 3,287 per 40 ft container last week, but was up 82% y-o-y, maritime research and consultancy firm Drewry reported on Thursday. The latest WCI reading was also 131% above the average 2019 rate of USD 1,420 per 40 ft container, and USD 830 above the 10-year average rate of USD 2,697, which is inflated due to unusually strong performance during the pandemic, Drewry said.

DATA POINT-

Iraqi Ports Company raked in some IQD 65 bn in revenues in February from cargo and oil terminals, according to a statement. Northern Umm Qasr Port saw IQD 26 bn in returns for the month, while Khor Al Zubair port achieved IQD 12 bn, Southern Umm Qasr Port reeled in IQD 5 bn, Abu Flous Port saw IQD 569 mn in revenues, and oil terminals brought in a combined IQD 21 bn. Iraqi ports imported 61k TEU in containers in February, while exporting 87k TEU, the statement also said.

CIRCLE YOUR CALENDAR-

The UAE will host Abu Dhabi Mobility Week from Wednesday, 24 April to Wednesday, 1 May in Abu Dhabi. The event, organized by The Department of Municipalities and Transport – Abu Dhabi (DMT), will feature announcements, forums, and introduce a mobility strategy for the emirate.

Iran will host the second Iran-Africa International Summit from Wednesday, 24 April through to Friday, 26 April in Tehran. The event will see Iran receive trade ministers from more than 40 African countries.

Saudi Arabia will host a special World Economic Forum event from Sunday, 28 April through to Monday, 29 April in Riyadh. The event will focus on global collaboration and energy.

The UAE will host the 23rd edition of the Airport Show from Tuesday, 14 May through to Thursday, 16 May in Dubai. The 23rd Airport Show will see representation from airport suppliers, airport service providers, aviation executives, and regional decision makers. The event will highlight current innovations and new technologies, while emphasizing this year’s “Sustainability and Innovation,” theme.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

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