Good morning, friends. We have a bumper issue for you this morning with the full run-down on what’s happening in the Red Sea and beyond. But first…

It’s launch morning for EnterpriseAM UAE. Think of it as the UAE analogue to your morning read in Egypt — your essential report on business, finance, the economy, and regulation in one of the world’s most vibrant and exciting economies.

EnterpriseAM UAE is produced in the United Arab Emirates and in Egypt by the same team that brings you Enterprise Logistics, Enterprise Climate, and our flagship product EnterpriseAM and EnterprisePM in Egypt.

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** Stay tuned for the launch later this month of EnterpriseAM KSA. You can tap or click here if you’d like to be added to our list for launch day.

WATCH THIS SPACE-

#1- Egypt’s Red Sea Ports Authority is set to invest some EGP 2 bn to construct sixtugboats with a pulling power of 70 tons by the end of this year,Al Mal reports, citing sources it says have knowledge of the matter. The authority will also invest some EGP 430 mn to develop Port Tawfik port, which is slated for completion by the end of 2024. It is not yet clear who will manage and operate the dock.

AND- Safaga Port could get a USD 50 mn logistics zone: Egypt plans to build a USD 50 mn logistics area behind Safaga Port to load and unload goods hauled by a high speed electric railway linking the Red Sea to the Mediterranean, Asharq Business reported on Friday, citing two government sources. Development of the proposed zone will be financed by Egypt’s government and will cover 100 acres, the sources said. The railway — which is set to link Ain Sokhna, Alexandria and Marsa Matrouh — will be constructed by a consortium including Siemens Mobility, Orascom Construction, and Arab Contractors.

REMEMBER- AD Ports previously inked a definitive 30-year concession agreement with Egypt’s Red Sea Ports Authority (RSPA) for the development and operation of a multi-purpose terminal at Safaga Port. The Safaga 2 terminal is set to kick off operations in 2Q 2025.

#2- The UAE’s Ajman emirate has established a new freezone dubbed the Ajman Centre for New Projects, Wam reports. The freezone, established by decree from Ajman Ruler Humaid bin Rashid Al Nuaimi, is set to enhance the emirate’s position as a hub for global trade and help diversify its economy. The freezone aims to attract foreign investment and create a climate that is flexible and conducive to investment in innovative projects, the news agency said.

#3- Algeria bans transit + transhipment operations through Moroccan ports:Algeria’s Professional Association of Banks and Financial Institutions (ABEF) has banned transshipment and transit operations, through Moroccan ports, including the loading and unloading of cargo from one ship to another, Morocco World News reported on Friday, citing a note from ABEF. “Before any domiciliation, it is necessary to invite your concerned services to ensure, with economic operators, that transshipment/transit does not occur through Moroccan ports,” the outlet quotes the ABEF as saying. Algeria closed off its airspace to Morocco in 2021 shortly after cutting diplomatic relations.

ALSO IN MOROCCO-Italy approved financing of a study on a planned green hydrogen corridor extending from Morocco, to the port of Trieste in Italy, and then extending to Central and Eastern Europe, Morocco World News reported on Saturday. Details on the size of the cabinet’s funding package and a targeted timeline on completion were not disclosed.

REMEMBER-It’s not the first we’ve heard of a Morocco-EU green corridor: In June, Italy and Morocco said they are partnering together with Spain on a green fuels transport corridor which is planned to go through the entire EU region. The trio have decided to exclude Algeria from the project due to diplomatic tensions it holds with Madrid. Last year, the European Hydrogen Backbone initiative submitted an updated version of its vision for the infrastructure map where hydrogen is set to be transported on the project.

#4- Middle Eastern airlines are expected to see a 12.3% rise in air cargo demand in 2024, Airlines reported last week, citing International Air Transport Association data. Air cargo volumes for Middle Eastern carriers witnessed the strongest global performance y-o-y in November 2023, growing by 13.5%, according to IATA 2023 data. Overall, global air cargo is projected to increase by 4.5% y-o-y in 2024.

#5- Boeing is getting audited: The US Federal Aviation Administration (FAA) will audit Boeing’s production line after the incident that forced an Alaska Airlines flight to make an emergency landing earlier this month, CNBC reported on Friday. More than 170 Boeing 737 Max 9s were grounded following the incident. The audit will assess Boeing’s compliance with quality standards for the 737 Max 9’s production line and its suppliers. The FAA is also looking into the possibility of an independent third party to oversee Boeing inspections.

MARKET WATCH-

Bulgaria is moving away from Russian oil imports in January, turning to alternatives including Kazakhstan, Iraq, and Tunisia, Reuters reported on Thursday, citing traders and LSEG data. While Bulgaria has a waiver on the EU embargo on Russian oil, the country is restricting its import of refined products from Russian crude. Russia’s Lukoil, which operates Bulgaria’s Burgas refinery, will no longer be able to supply the refinery with its own Urals oil, and so the company is considering selling its Bulgarian assets.

Baltic index at lowest in two months: The Baltic Exchange’s dry bulk sea freight index dropped for a third straight session last week, reaching its lowest in nearly two months, Reuters reported on Thursday. The overall index — which factors rates for capesize, panamax, and supramax vessels — fell 11.3%, to settle at 1664, the index’ lowest since 13 November. Weak rates due to the slowdown leading up to the Chinese New Year drove the decline, with recovery projected to take place towards the end of February, the newswire wrote, citing BIMCO shipping market analyst Filipe Gouveia.

DATA POINTS-

#1- Qatar’s Hamad International Airport (HIA) handled 2.3 mn tons of cargo in 2023, according to a statement on X posted last week. Aircraft movements saw a 22% y-o-y boost to 252k aircraft, and passenger numbers spiked 31% over the same period to 45.9 mn. HIA served 52 airlines, connecting 255 destinations, the statement said.

#2- Qatar Chamber completed 92.5 k transactions in 2023, including some 47k certificates of origin, according to a statement published last week. The chamber also inked 10 MOUs with other chambers and counterparts and closed around 49 arbitration, mediation, and conciliation cases. It also oversaw 175 events, hosted 70 trade delegations, and partook in 26 external activities among other undertakings, the statement said.

#3- Jordan’s Zarqa and Mafraq governments exported USD 1.31 bn worth of goods in 2023, Petra reported last week citing statements by the head of the Zarqa Chamber of Industry. Exports to Arab countries in 2023 saw a 4% y-o-y increase to USD 513.5 mn, with Iraq leading the category at USD 154 mn in exports, followed by KSA (USD 136.4 mn), and Palestine (USD 55.1 mn). Meanwhile exports to North America saw a 5% decline during the period to USD 606.1 mn, the statement said.

#4-Iran allocated USD 230 mn for the completion of provincial and national transportation projects over the last Iranian calendar month, including connecting Chabahar Port to the national rail network, MEHR reports. The projects include railway, highway, and freeway development in rural and urban areas. The investment will go towards renovating and maintaining the country’s existing railway fleet and lines as well as fixing potential hazard points or bottlenecks in the line.

#5- Port of Antwerp-Bruges 2023 figures reflect geopolitical tensions: The Port of Antwerp-Bruges saw a 5.5% y-o-y decrease with a total throughput of some 271 mn tonnes of cargo in 2023, according to a statement. The port’s container throughput decreased by some 5.9% y-o-y in tonnes and 7.2% in TEUs amid weakened global economic growth and low demand for commodities, which weighed down global demand for container transport. The port’s liquid bulk throughput decreased by 2.1% y-o-y in 2023 and chemical throughput fell 8.1% on the back of pressure on the European chemical sector. LNG throughput fell below last year, while LPG throughput remained the same, according to the statement. Conventional break bulk throughput volumes normalized to pre-Covid-19 levels, while total roll-on/roll-off traffic handled decreased by 2.1% y-o-y, with 3.56 mn new cars handled. The dry bulk segment also fell by some 13.9% y-o-y on the back of a sharp fall in demand for coal, the statement adds.

CIRCLE YOUR CALENDAR-

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.

The UAE will host the Middle East Bunkering Convention from Monday, 5 February through to Wednesday, 7 February in Dubai. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE will host Sustainable Aviation Futures MENA from Monday, 12 February through to Wednesday, 14 February in Dubai. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

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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