Good morning, friends. It’s a brisk read this morning as we roll into the weekend with a lot of port business. Whispers are emerging regarding upcoming developments at Alexandria port, Saudi’s Mawani has made a decisive move towards expanding logistics services at two of the kingdom’s largest ports.
AN EDITOR’S NOTE- In yesterday’s issue of EnterpriseAM Logistics, we mistakenly reported a decrease in net income instead of an increase in net income in Egytran’s 2Q earnings. The story has been amended on our website, and we thank Egytrans for their continued loyal readership and support of our publication.
WATCH THIS SPACE-
#1- Amendments to Egypt’s Maritime Trade Law got the greenlight yesterday during a cabinet meeting, throwing weight behind the country’s wider efforts to transform into a global hub for trade and logistics. Some of the most significant amendments include:
- If a vessel sinks, burns, breaks, is captured, or is lost, the owner or operator must immediately notify the Egyptian Authority for Maritime Safety or the registration office and return the registration certificate to the authorities if possible. Registration certificates should also be returned if the ownership of a given vessel is transferred to a foreigner or a foreign entity.
- Operating an unregistered vessel flying an Egyptian flag is punishable by a prison sentence not exceeding three months and / or a fine ranging from EGP 100k to EGP 1 mn, with the ship potentially subject to confiscation. Operating a ship with an expired registration is punishable by up to one year imprisonment and / or a fine of EGP 50-500k.
- The government must approve the construction plans and specifications of any newly built marine vessel, with construction subject to government oversight.
ON THE TRADE SIDE- Egypt is reportedly seeking to increase its exports to EU countries by 10% y-o-y to EUR 12.5 bn by the end of 2024, Al Arabiya reported, citing an unnamed government official. Egypt’s trade with EU countries constitutes 27% of Egypt’s total foreign trade, with EU investments in the country amounting to some 32% in FDI. Egypt aims to attract more than USD 2 bn in FDI from EU countries for future industries developments within this year.
AND ON THE TRACKS- A trial operation of Egypt’s high-speed electric train will take place within 60 days, National Authority for Tunnels Chairman Tarek Gouely said in a statement earlier this week. Track work is 100% complete and German firm Siemens had completed the manufacturing of 12 trains with imports of five trains per month set to begin from next December. The first line of the train running from Ain Sokhna to Matrouh will be integrated with the Cairo-Aswan railway line at Giza station, contributing to the movement and support of both passengers and goods in industrial and commercial areas.
#2- UAE’s Etihad Rail has launched a new sustainable finance framework to boost green investments in transportation and infrastructure, according to a statement. The new framework ties future financing to ESG objectives, focusing on clean transportation, green buildings, and pollution control. It incorporates green loan and bond principles, sets fund allocation criteria, and establishes project evaluation and reporting mechanisms.
#3- Air France set to restart flights to Lebanon: Air France and its subsidiary Transavia are set to resume flights to Beirut today, according to a list of suspended or canceled services updated daily by Reuters. Air France’s Dutch arm KLM canceled all flights to and from Tel Aviv until 26 October, while Transavia canceled all flights to and from Tel Aviv until 31 March, 2025.
MARKET WATCH-
#1- Oil prices rose in early morning trading buoyed by a positive outlook on potential US interest rate cuts but concerns on weakened demand persist, Reuters reports. Brent crude futures gained USD 0.17 reaching USD 79.93 a barrel by 03.48 GMT, while US West Texas Intermediate (WTI) crude climbed USD 0.21 to USD 77.19 a barrel. Both benchmarks fell over 1% yesterday on the back of US crude inventories spiking unexpectedly and diminishing concerns regarding an escalation in wider Middle East tensions.
#2- Baltic index maintains upwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose nearly 3.5% to 1,728 points on Wednesday breaking three consecutive sessions of losses. The capesize index increased by 7% to 2,650 points, securing its highest level since 25 July. The panamax index fell by 0.2% to 1,560 points for the 12th consecutive session of declines, while the supramax segment rose 0.4% after 13 consecutive sessions of decreases.
DATA POINTS-
#1- Etihad Cargo reported a 17% y-o-y increase in cargo tonnes in 1H 2024 reaching 320k tonnes, according to a press release. In terms of regions, the carrier recorded a 19% y-o-y increase in the East, while the Western region saw a 20% y-o-y growth. The UAE saw a 15% y-o-y increase in tonnage. The carrier’s IATA CEIV Pharma-certified PharmaLife products witnessed a 9% y-o-y increase in tonnage, driven by its specialized cool chain products. SecureTech — which it introduced back in February — recorded a 95% y-o-y increase in revenues during the period.
A good 1H 2024 performance for the cargo segment: The logistical arm of Etihad Airways recorded a 10% y-o-y increase in cargo revenues to AED 1.9 bn (USD 507 mn) in 1H 2024, according to a separate earnings release. The cargo arm attributed its growth in revenues to high demand and cargo fleet capacity. Etihad Airways saw its income after tax climb 48% y-o-y to AED 851 mn in 1H 2024, according to the release. The Abu Dhabi-based carrier’s revenues rose 21% y-o-y to AED 11.7 bn (USD 3.2 bn) during the same period.
#2- Jordan’s industrial exports on the rise: Jordan recorded a rise of 0.13% y-o-y to JOD 4.94 bn to its industrial exports in the past seven months of 2024, Petra reports. The chemical and cosmetics sector recorded the most notable boost of 27.1%, followed by the wood and furniture sector, which rose at 26.7%. Mining exports saw a 30.6% drop in exports, and packing and wrapping sectors also saw a 2.6% dip.
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CIRCLE YOUR CALENDAR-
Saudi Arabia will host the Saudi Warehousing and Logistics Expo on Monday, 2 September to Wednesday, 4 September in Riyadh. The event will bring together leaders in the supply chain, warehousing, and logistics industry from across the Kingdom to discuss investments, trade, geopolitical risks, and localized manufacturing.
Egypt will host the Egypt International Airshow on Tuesday, 3 September to Thursday, 5 September in El Alamein. The event will host a range of discussions touching on industrialization, digitalization, and globalization in the regional commercial aviation sector. During the event, aircrafts and innovative aerospace products, and services will be showcased.
Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.
Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.
Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.