DP World, AD Ports Group (ADPG) and Gulftainer, all based in the UAE, QTerminals, which operates the main port of Hamad in Qatar, and Red Sea Gateway Terminal (RSGT), which manages a terminal in the port of Jeddah, Saudi Arabia, have all been very active in the past six months. According to their respective management teams, “these international development programmes will continue” as each company seeks to extend its influence outside of the region, expand its portfolio and diversify its revenue stream.

When it comes to DP World and ADPG, which are the largest and most established GTOs based in the region, the strategies are somewhat different. To start with, they entail much larger investments. In addition, both DP World and ADPG are aggressively pursuing opportunities that will not only expand their core port management/stevedoring businesses but also transform them into vertically integrated maritime transport, infrastructure and logistics entities and give them some influence over customers’ supply chains.

Overseas investments

Both companies have signed off on a significant number of transactions this year. In the past three months, ADPG alone has signed memoranda of understanding (MoU) and/or concluded deals with:

● The Vietnam Maritime Administration (VINAMARINE)
● Kazakhstan Temir Zholy JSC (Kazakhstan Railways – KTZ)
● KazMunayGas – to establish a ship building and repair facility in the Mangistau region of Kazakhstan
● State Oil Company of Azerbaijan Republic (SOCAR) – to collaborate on a number of areas across the Central Asia state’s maritime and shipping sectors
● Grupo Logístico Sesé – to purchase the group’s finished vehicle logistics division Sesé Auto Logistics. The transaction was conducted by Noatum, ADPG’s logistics arm, and cost €81M
● Fertiglobe, a joint venture of OCI Global and ADNOC – to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.

Recently, the group’s focus has been on emerging economies in Southeast Asia, which are benefitting from the shift of manufacturing and industrial processing capacity out of China, and Central Asia. Both areas offer significant growth potential when it comes to cargo volumes and a need for better transport infrastructure.

Since Russia invaded Ukraine, the significance of countries such as Kazakhstan, Azerbaijan and Georgia as transit corridors for cargo moving between China and Europe has increased enormously and investment opportunities have mushroomed. But there is a pressing need for better infrastructure and more capacity is needed in depots, logistics centres and railyards to handle the additional freight efficiently.

Commenting on the MoU signed with VINAMARINE, Mohamed Eidha Al Menhali, regional CEO, ADPG, said: “This marks another milestone in our journey towards international collaboration, while also supporting the UAE’s wise leadership’s efforts to expand the network of trade partners and build new partnerships with global strategic markets. Our combined efforts would not only enhance the maritime and logistics sectors in both countries but also create avenues for sustainable growth and development in line with both nations’ economic diversification goals. We are committed to sharing our expertise and resources to unlock new opportunities, fostering a mutual path of prosperity.”

Under the terms of the agreement, both entities will cooperate in areas such as the development and management of dry ports and inland container depots, the provision of advanced logistics operations and the implementation of digital solutions to enhance the global maritime and shipping sectors. Both parties have also agreed to explore further collaborative projects in economic cities and free zones.

A joint working group is to be set up to oversee the implementation of the various projects with the two groups saying this will focus on the development of initiatives, investments, and opportunities in the agreed areas of cooperation.

The various deals with Kazakhstan and Azerbaijan are highly strategic and, potentially, involve substantial levels of investment in new infrastructure and facilities. The agreement with KTZ, for instance, involves forming a joint venture company in which ADPG will hold 51% of the equity This company will, according to ADPG, establish “a dynamic regional logistics hub” and “transform the whole country’s logistics landscape”, by improving rail connectivity, expanding cargo handling capacity and digitalising business processes. In addition, cargo handling facilities at Kazakhstan’s main ports on the Caspian Sea will be modernised and expanded.

“Our joint venture with Kazakhstan Railways has the potential to not only strengthen maritime connectivity between the Middle East and Central Asia, but also opens up new trade routes, making it easier and more efficient to move goods across these two regions,” said Abdulaziz Zayed Al-Shamsi, regional CEO of ADPG. “We see this enhanced connectivity leading to increased trade volumes for the benefit of the global maritime industry. Additionally, by leveraging our combined strengths, we are set to create a thriving regional economy, which will have a positive impact on the global maritime industry through increased demand for shipping and logistics services.”

He explained that the joint venture would be implemented in phases with both KTZ and ADPG collaborating to improve the country’s rail infrastructure and carrying capacity as well as enhancing its maritime electronic systems, vessel operations, ports and trading systems.

Al-Shamsi added: “These ambitious plans promise to transform the global logistics landscape, enhancing trade flows and maritime efficiency, and to propel the Central Asia region into a new era of economic growth and logistical excellence.”

In Azerbaijan, the emphasis is on expanding the country’s maritime services sector. The investment is being organised through the SAFEEN Group, ADPG’s wholly owned shipping company, which has agreed an MoU with SOCAR.

“Azerbaijan, positioned strategically at a crossroads between Georgia, Kazakhstan, and TÜrkiye, could serve as a pivotal development area for the SAFEEN Group, connecting Central Asia to global markets,” said Ammar Al Shaiba, CEO of the Maritime Cluster and SAFEEN Group.

Under the terms of the agreement, both parties aim to leverage their respective strengths and vast experience to deliver a broad range of maritime and logistics services  to elevate the maritime landscape in Azerbaijan and support key economic and strategic projects for both parties. This includes shipping of crude and petroleum products, infrastructure development, and other cargo transportation. The intention is to also support the modernisation of onshore and offshore logistics, with a key focus on wind projects, advancing Azerbaijan’s renewable energy goals.

“This MoU with SOCAR opens new avenues for prospective multifaceted synergies in the maritime and shipping sector,” explained Al Shaiba. “Azerbaijan’s strategic location and SOCAR’s expertise will ensure a dynamic platform for elevating maritime services, infrastructure, and logistics in the region. Furthermore, it will enable the facilitation of the further development of trade corridors in this geographically significant area.”

African focus

In recent months, DP World has focused its attention on Africa, agreeing a US$365.1M multiproduct, multi-jurisdiction and multi-currency facility (MCF) with Standard Bank in October to support its expansion programme in the sub-Sahara region. The arrangement is important in that it supports both DP World’s general banking (US$150M) and longer-term funding needs (US$215.1M).

In terms of specific projects, the 30-year concession agreement signed with the Tanzania Ports Authority to invest in and manage Dar es Salaam, the country’s largest port, is without doubt the most important.

“We are honoured to partner with the Government of Tanzania to revitalise the port of Dar es Salaam,” said Sultan Ahmed bin Sulayem, chairman and CEO of DP World Group, at the signing ceremony. “This deal is in line with Tanzania’s strategic development plans and is testament of the visionary leadership of H.E. Samia Suluhu Hassan.”

He added: “The development will deliver trade opportunities for the region, connecting East Africa and broader sub-Saharan Africa with global markets, driving economic growth, job creation, enhanced access to products and service, and creating value for all our stakeholders. Alongside other ports that we operate, this concession agreement marks another milestone in our collective efforts to leverage DP World’s global and local expertise to enhance the region’s supply chain to support the economic growth of the entire continent.”

In the initial phase of the contract, DP World will invest approximately US$250M in upgrading the port by installing new equipment, refurbishing infrastructure, including some quays, and installing new software and digital processes to streamline and improve the port’s operational efficiencies. Over the lifetime of the concession agreement, DP World indicated that as much as US$1B could be invested with the development of cold stores, various hinterland logistics centres and a special economic zone possible.

Asian assault

Outside of Africa, DP World has signed deals to expand its operating presence in India and Indonesia, both viewed as strongly growing emerging markets by the company.

In India, DP World and the National Investment and Infrastructure Fund, which is backed by the Indian Government, have formed a joint venture company – Hindustan Infralog Private Ltd (HIPL). Earlier this year, HIPL successfully signed a concession agreement with the Deendayal Port Authority (Kandla) to develop and operate a large 2.2M TEU a year capacity container terminal at Tuna-Tekra.  The 30-year build-operate-transfer concession agreement, which includes an option to extend it for another 20 years, entails the construction of 1.1 km of wharf line, which can be extended by 275m, with draughts alongside suitable for accommodating ships carrying 18,000 TEU. It involves capital expenditure of at least US$510M with the terminal scheduled to open in 2027.

The latest deal will increase the number of terminals operated by DP World in India to six and raise its annual handling capacity to about 8.2M TEU.

In Indonesia, DP World has just commenced work on building a new terminal at Gresik in East Java which, when completed, could have the capacity to handle 3M TEU a year. DP World is working with Indonesia’s Maspion Group on the project, the objective of which is to attract further investments into the region while strengthening East Java’s position as a key trading and logistics gateway. 

DP World Maspion East Java, which has been established as a joint venture to operate the new terminal, will also develop an integrated industrial and logistics park, adjacent to the container terminal.  An initial 110ha of land has been allocated for this zone, but with additional land available to expand the facility when required.

“We see significant potential in Indonesia as a major hub for global trade, and we hope to unlock further growth in the region through meaningful partnerships and investments that bring opportunities through greater trade connectivity for local businesses and communities,” said Bin Sulayem.

He added: “Our partnership with the Maspion Group to build new infrastructure in Gresik will strengthen East Java’s position as a key trade and logistics gateway. It  will also serve as a cornerstone in our strategy to expand our global ports and logistics network to offer our customers end-to-end solutions and boost supply chain resilience.”

Meanwhile, DP World continues to expand the supply chain side of its business, recently completing the purchase of Long Beach-based CFR Rinkens, a specialist provider of logistics services for the automotive industry.

Advanced logistics

The acquisition of CFR Rinkens represents a strategic move to enhance its capabilities in delivering precisely tailored solutions to its automotive clients. DP World claims to transport one in every 10 new cars worldwide and said the acquisition “brings new dimensions to the company’s comprehensive suite of services”.

But it is CFR Rinkens’ knowledge and experience in supplying logistics and support services to the fast-growing energy storage and battery life cycle industries that is also seen as being of particular interest to DP World.

Beat Simon, group chief commercial officer, logistics, at DP World, explained: “We are thrilled to welcome CFR Rinkens into the  DP World family as we continue to deliver our strategy to provide innovative end-to-end logistics services to our clients. Our combined capabilities will empower our automotive clients to navigate the challenges presented by the industry’s shift to electric vehicles and the emerging green energy revolution.”

Boasting 16 ro-ro terminals, shipping over 30,000 cars in containers annually, and offering storage solutions for over 1M cars, DP World’s facilities handle 2M CEU each year, while also providing value-added services for dealer ready vehicles. Meanwhile, when it comes to containers DP World controls about 9% of global handling capacity and operates over 60 terminals across the globe.

First deal

In contrast, Red Sea Gateway Terminal (RSGT) has secured its first contract. RSGT’s shareholders include Red Sea Ports Development Co (60%) – owned by Xenel Industries and Saudi Industrial Services Co of Saudi Arabia and MMC (20%) of Malaysia, – the Public Investment Fund of Saudi Arabia (20%) and Cosco Shipping Ports (20%).

RSGT had been nominated as the operator of the Patenga Container Terminal (PCT) in the Bangladeshi port of Chattogram (formerly Chittagong) more than a year ago, but it was only in early December this year that the 22-year equip, operate and transfer concession was finally signed.

The terminal has already been built by the Chattogram Port Authority (CPA) at a cost of about US$250M and it is operational although only vessels with their own handling gear can call at the moment. This will change with RSGT committed to spending US$170M on new equipment, including four state-of-the-art STS cranes and RTGs, automation projects and software installations.

PCT comprises a 584m wharf with depths alongside of 10-12m and over 200,000m2  of yard space. It has the capacity to process 500,000 TEU a year and can accommodate ships loading up to about 6,000 TEU.

“In collaboration with CPA, we aim to expand Bangladesh’s trade network and foster economic growth for its citizens,” said Jens Floe, CEO of RSGT. “This marks the initiation of what we hope will be an enduring strategic alliance, enabling RSGT to further invest in the port infrastructure of this rapidly evolving economy. We eagerly anticipate leveraging our operational excellence to enhance the performance of Bangladesh’s primary gateway port.”

Chattogram is one of the busiest ports in the Bay of Bengal and it processes more than 90% of the country’s foreign trade and so the deal is hugely significant for RSGT which is keen to expand its network of terminals.

European presence

The past few months have seen QTerminals make considerable progress on the global stage, acquiring a presence in Poland and the Netherlands to support earlier deals in the port of Olvia (Ukraine) – currently inactive as a result of the war with Russia – and Port Akdeniz, Antalya, TÜrkiye.

In August, QTerminals acquired a majority shareholding in the Rotterdam-based Kramer Group, operator of Rotterdam Container Terminal, depots in the Maasvlakte and Eemhaven areas of the port and provider of a full range of transport and logistics services.

“The Kramer Group deal is an important strategic step for QTerminals as we will expand our presence into Europe’s largest port,” said Neville Bissett, CEO of QTerminals. “It complements QTerminals’ existing business and adds a robust value-creating service offering and European network to our portfolio.”

He added: “The Kramer Group has both a core and strategic importance to the port of Rotterdam, as it supplements the port’s activities whilst having direct access to the deepsea terminals of the port. The presence of QTerminals in the Port of Rotterdam is strategic and reputable for the QTerminals Group in particular and for the State of Qatar in general as QTerminals Group’s profile will become known in the largest European port.”

Then in September, QTerminals and its partner Belgian Deme Concessions secured the concession to construct and operate a new container terminal in the Polish port of Świnoujście. The new terminal is expected to open by 2028 and will be designed to handle gateway and transhipment cargo.

“The initial capacity will be 1M TEU, but with the ability to build out to more than 2M TEU, depending on demand and market conditions,” said Charles Meaby, group chief business development and integration officer of QTerminals.

While Gulftainer has not added to its global portfolio of assets recently, it has consolidated its position in the UAE by agreeing a 35-year extension with the Sharjah Ports, Customs and Free Zones Authority to operate Sharjah Container Terminal and Khorfakkan Container Terminal. The original concessions were granted for Port Khali (Sharjah) and Khorfakkan in 1976 and 1986, respectively.

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This complete item is approximately 2720 words in length, and appeared in the December 2023 issue of WorldCargo News, on page 13. To access this issue download the PDF here