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Coffee with: Ahmed El Ahwal, General Manager of Transmar: El Ahwal (Linkedin) was appointed General Manager of regional shipping giant Transmar in 2022 where he now oversees the company’s expansion efforts as a leading regional shipping line. Prior to serving as the managing director, El Ahwal served as Commercial Manager for Transmar.
Transmar joined the AD Ports Group family in September 2022, helping contribute to the group’s vision of becoming a global trade facilitator. With decades of experience in the shipping and terminals industry, Transmar is a leading force in the transport of the region’s trade. Operating in 14 countries and 22 ports, Transmar boasts the largest dedicated container fleet in the region.
We sat for a chat with El Ahwal about the company’s recent expansions, its plans for the future, and how it is tackling challenges amid continued tensions in the Red Sea.
Edited excerpts from our conversation follow:
Enterprise: How has Transmar established itself as a leading regional shipping line?
Ahmed El Ahwal: Our approach has always been focused on our customers and where they need us most. We don’t believe in the ‘build it and they will come’ approach to expansion. We follow our customers’ needs and seek areas where we can add value, and that has been our strategy for the past 45 years. We’ve adapted our business model, changed our areas of operation, and even diversified the types of ships we operate, all to better serve our customers. Currently, we’re exploring various plans to replicate the success we’ve had in the Red Sea region in other areas as well.
E: Where is the company currently operating?
AA: In 2019, Transmar operated in approximately nine ports across four countries. Today, we’ve expanded our operations to encompass 22 ports in 14 countries. This expansion has been quite aggressive, both in terms of fleet size of containers and ships, as well as overall volumes.
Over the past year, we’ve successfully established operations in five new countries within the region: Oman, Kuwait, Qatar, Bahrain, and Iraq. This is particularly significant as Transmar had primarily been focused on operations in the Red Sea area and we have had a presence in the UAE for some time, but now we’ve expanded our footprint into the Gulf region. We’ve also expanded into Taiwan and India, and we plan to sustain this momentum and continue our growth trajectory.
E: How is the company navigating the ongoing Red Sea trade disruptions and what measures did it take to mitigate these risks?
AA: The Red Sea region is undeniably volatile and dynamic. We’ve navigated the blockage of the Suez Canal in 2021, the disruptions caused by the COVID-19 pandemic, and the global supply chain crisis, so it’s not our first time around this. As a company with over four decades of experience, we’ve overcome numerous challenges including wars, revolutions, and civil unrest in countries like Egypt, Sudan, and Yemen.
We try to ensure that our capacity can address unforeseen spikes, even in years where it may not seem logical. Our approach is grounded in our intuition and deep understanding of the regional market, enabling us to anticipate and meet our clients’ needs effectively. The importance of having a local partner, particularly in such a volatile region, cannot be overstated.
E: How were recent disruptions observed in global trade routes?
AA: The primary disruptions have been observed in the East-West trades, particularly from the Far East and South Asia to Europe and North America. Another noteworthy development is the disruptions in the Panama Canal, which was a major concern prior to the Red Sea disruptions. This has led to shifts in global trade patterns, particularly affecting the China to West Coast America trades. Service patterns have also been changing up, with many main shipping lines opting to capitalize on the Cape of Good Hope route. This involves dropping off cargo in the Western Mediterranean and then dispatching it from there to the Eastern Mediterranean, significantly impacting countries such as Sudan and Jordan, which lack alternative ports outside of the Red Sea.
Countries like Egypt and Saudi Arabia, with access to the Mediterranean and Arabian Gulf, have maintained some connectivity to the rest of the world. However, countries within the Red Sea have been significantly affected by the disruptions in service routes, as many main shipping lines have altered their services to avoid the region.
Despite these challenges, the shipping market and reputable shipping lines have demonstrated resilience and adaptability, swiftly responding to changes to minimize disruptions. In recent months, we’ve seen rapid responses to ensure minimal stoppages. Additionally, China’s recovery in terms of import and export volumes has been better than forecasted, which should positively impact the overall situation.
E: On the climate front, how is the changing landscape around green methanol and emissions shaping Transmar’s strategies?
AA: We’ve always been an adapter of global regulations set by bodies like the International Maritime Organization (IMO) regarding emissions and fuel usage. We adhered to the IMO 2020 regulations prohibiting the use of high sulfur content fuel for ships.
While legislation on green fuels and emission control in our region may not be as advanced as in Europe and other areas, we closely monitor developments globally. This includes staying informed about initiatives such as the introduction of carbon taxes and laws in Europe, even if they haven’t yet been implemented in our region.
