Trade Pulse
Q1, 2020
“Full Speed Ahead!”
Next decade belongs to those who can reimagine the future, says Group CEO
KIZAD to host India’s leading plastics maker in aed55m deal
The initiative heard around the world
AD Ports signs deal for Abu Dhabi’s First Commercial Bulk Liquid Storage Terminal
FULL SPEED AHEAD!
The close of the first quarter of 2020 continues to present the trade and logistics world with challenges and opportunities no one could have ever foreseen. COVID-19 has demonstrated itself to be an existential challenge to our industry, and we are all called upon to meet this challenge as directly and proactively as we can, and I urge us all to do so. After all, the trade and logistics industry is most critical to the success of the world’s COVID-19 recovery, both physically and economically. Still, possibilities abound for us to completely transform our industry, and we must work collectively to explore them as fully as we can to the benefit of our many and varied customers.
The last decade has seen general cargo and container volumes increase steadily, ports and industrial zones strategic infrastructure develop at pace, technological innovation continue to expand across our industry, and marine services record increased workloads alongside improved safety. From these ongoing advancements, we can deduce clearly that the next decade will belong to those of us who are able to ‘reimagine’ the future of international trade and logistics, shaping it into an almost entirely customer-centric experience in which multiple services are rendered seamlessly, providing an efficient and enjoyable journey for all.
In this edition of Trade Pulse, we share a few of our Group’s recent updates and provide commentary from Group executives, but also enlighten readers on some of the most significant industry developments by engaging with international experts who are contributing to the ongoing success story of Abu Dhabi Ports.
We thank you in advance for your continued interest in our journey of success.
Enjoy this issue of Trade Pulse!
MohamedAlJumaShamisi
Capt Mohamed Juma Al Shamisi Group CEO, Abu Dhabi Ports
Industry in Focus
In this edition of Trade Pulse, we ask industry experts:
What do global ports operators need to do in 2020 to ensure that they remain competitive?
Dr. Patrick Verhoeven
International Association of Ports and Harbors, organisers of the annual World Ports Conference
Many port operators will have to rethink their entire business model in order to remain competitive. Operators need to rethink how they source and provide energy for their stakeholders. New builds are now being equipped to run on low sulphur and alternative fuels to meet IMO 2020 requirements requiring bunkering infrastructure. As ports become maritime clusters with their own digital ecosystems and circular economies, their cities now demand them to work closer together on key issues such as mobility, employment and use of land. Climate change is forcing port operators to rethink how to sustainably plan for disruptive weather and oceanographic events. Large-scale consolidation amongst maritime and supply chain stakeholders also means that port customers and their needs are very much changing as well.
Peter Tirschwell
Vice President, Maritime & Trade, IHS Markit, a leading global provider of maritime data
Aport must serve many constituencies, which can make operating a port a complex task, but they must first focus on their customers, the ship operators. That means supporting ship operators in many ways, high on the list being to support them to minimise unnecessary cost and to enhance their environmental standing. A way ports can accomplish both, especially for container ships, is to improve Port Call Optimisation by effective use of technology to achieve better coordination among multiple port entities. The goal is to allow ships to enter and leave ports more quickly, enabling them to maximise slow steaming while remaining on schedule, which cuts fuel and CO 2 emissions. As more ports focus on this, a new opportunity is created for ports to collaborate with each other.
Captain Maktoum Al Houqani, Chief Corporate Authority Officer, Abu Dhabi Ports & MD, Abu Dhabi Maritime Academy
Abu Dhabi Ports exists only to serve its customers, first those in the emirate of Abu Dhabi, and then the world; however, we do not only measure our success in financial terms, we seek always to create value for our stakeholders. As we look into 2020, I think all global port operators could benefit from revisiting and improving upon a few common themes. We need to enhance our coordination and alignment with one another, and we can accomplish much of this challenge through increased and improved participation in international forums.
I also think that we should all embrace digital transformation and apply it to our benefit. Finally, global port operators must see 2020 as the year in which environmental sustainability became an industry norm with the introduction of IMO 2020.
Partner Q&A
Al Dahra Holding
Salmeen Al Ameri CEO – Al Dahra Holding
How is Al Dahra contributing to the global food market?
Implementing an end-to-end supply chain in four different continents, has given us control over quality while reducing costs for a stable supply of different products across all seasons.
How does having a facility in KIZAD contribute to your leading role in food security for the UAE, the region and the world?
Having a rice mill within the country for the number one commodity in the region, ensures availability, mobility and quality.
How does your location in KIZAD help overcome distribution challenges being faced by the agri sector?
KIZAD has a strategic location as it is in close proximity to Khalifa Port which allows us to bring fresh product directly to our processing facilities and also allows us to deliver faster and more efficiently to our local and international customers.
What are the key factors that led you to setting up your facility in KIZAD?
The facilities suit all type of business, especially for food processing. KIZAD also has done a great job in facilitating faster and efficient set up processes.
Partner Q&A
Dell EMC
Mohammed Amin, Senior Vice President, Middle East, Turkey and Africa - Dell EMC
What is Dell Technologies’ role in realising Abu Dhabi Ports’ vision of digitisation and ecosystem transformation?
At Dell Technologies, we primarily aim to help organisations build their digital future and transform their infrastructure. We are well positioned with end-to-end solutions to enable Abu Dhabi Ports realise its digital transformation and modernise their IT infrastructure to allow them to unlock the potential of artificial intelligence and Blockchain to develop new services.
What innovations has your strategic partnership with Abu Dhabi Ports introduced to the region and the maritime and logistics sector?
It is a pleasure that we’ve partnered with Abu Dhabi Ports to achieve their visionary step towards transforming the logistics and industrial services in Abu Dhabi and the UAE and lead the disruption of the maritime industry in the region.
VMware, a Dell Technologies company, is providing cutting edge technologies that will help Abu Dhabi Ports leverage the
full strengths of its network and tap into the benefits of fast developing technologies including cloud, AI and Blockchain.
How ready do you see Abu Dhabi Ports’ facilities to fully implement/adopt advanced technologies such as Artificial Intelligence, Blockchain, Cloud, DevOps?
Over the past few years, Abu Dhabi Ports has made significant strides in harnessing innovative digital solutions for trade and port communities. I’m confident to say that Abu Dhabi Ports is on the right and fast track to adapt these technologies and make a real difference.
Where do you see Abu Dhabi Ports in the upcoming 50 years?
In the coming 50 years, I see Abu Dhabi Ports a global leader in ports and logistics operations where a team of talented people deliver agile innovative solutions, outstanding customer service, safe operations and high value to their stakeholders; capitalising on the expertise they have built over the years, and the competence they keep building to operate the most modern and most efficient ports.
News Highlights
The world’s maritime sector is standing in solidarity with communities around the world battling the coronavirus pandemic by joining Abu Dhabi Ports’ initiative “Horns of Hope”.
In a world-first campaign, all ships in harbours around the world will sound their horns in 15-second bursts each evening in recognition and support of the maritime, healthcare, and critical sector personnel who continue to work in mission-critical roles to address the impact of COVID-19. The initiative which was launched on 31 March received a welcome boost today when both the International Maritime Organisation – the 174 member state strong United Nations specialised agency with responsibility for the safety and security of shipping – and the Arab Sea Ports Federation formally committed their members to the cause.
Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports, said: “It is deeply humbling and touching to witness the wide regional and global response to our call to sound the ‘Horns of Hope’. This initiative spreads hope around the world and highlights the vital importance of our maritime and logistics lifelines at a time of crisis.
“We are proud of all essential critical infrastructure workers – administrative and core operations employees who are still working on ground, and around the clock, to drive business continuity, both in Abu Dhabi’s ports as well as all teams working in all ports across the world. We highly appreciate all the government efforts to face the Covid-19 consequences, and its strong commitment to support all business sectors.”
Abdulla Al Muharrami, Head of the Regional Office of Arab Sea Ports Federation, said: “Arab sea ports are the region’s lifeline to the world; they are the single greatest source of our supplies, both raw materials and finished goods, from Cairo to Fujairah and Kuwait City to Jeddah.
“Across all Arab sea ports, we are honoured to sound our horns of hope in unison to show our genuine thanks for the efforts of so many, in so many different areas of service, who continue to overcome the daily challenges presented by COVID-19 to fully undertake their professional roles, so that the rest of us may remain safely at home.”
In the short time since COVID-19 was declared a global pandemic, cases
continue to soar.
More than half the world’s student population is not attending school, offices are working remotely when possible, borders have been closed, airlines have been grounded, and lives disrupted. However, port workers, mariners, equipment operators and administration staff are continuing to maintain the steady movement of cargo in the face of emergency.
Their hard work and dedication help guarantee that supply lines remain open, ensuring that shelves remain stocked and hospitals secure needed medical supplies.
The “Horns of Hope” campaign expects to see vessels within the world’s port harbours signalling solidarity by sounding their horns each day at 18:30 hours.
His Excellency H.E Dr. Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman of the Federal Transport Authority – Land & Maritime (FTA), launches Abu Dhabi Ports’ initiative, the “Horns of Hope”
News Highlights
The AD Ports initiative heard around the world
News Highlights
SAFEEN Acquires its Largest Service Vessel to Date
SAFEEN, Abu Dhabi Ports’ maritime service arm, has announced a successful acquisition of a Post Panamax bulk carrier, making it largest vessel ever to join its inventory.
Built in Romania and in service since 2006, the vessel will operate under the name “HAFEET” and will initially undergo an extensive conversion, prior to commencing operations. The refitting will include state-of-the-art cranes and conveyor system, which, when combined with other design parameters, will render the vessel a potent and efficient transhipment platform, enabling SAFEEN to provide solid bulk cargo transhipment services.
KIZAD Signs aed55 million Deal with India’s Leading Plastics Packager
Shrinath Flexipack Pvt Ltd, India’s leading manufacturer of plastic packaging materials has finalised an agreement to build its first factory in the Middle East at KIZAD.
The investment of AED 55 million ($15 million) will allow the Hyderabad plastics player to set up on a greenfield site within KIZAD’s Polymers Park.
Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of Abu Dhabi Ports, today announced that it has implemented the 25 percent reduction in land lease tariff for new contracts as announced by Abu Dhabi Executive Council on March 16.
News Highlights
Strategic Agreement to Build the First Commercial Bulk Liquid Storage Terminal in Abu Dhabi
Abu Dhabi Ports has signed a strategic agreement with Saudi Arabia based Arabian Chemical Terminals (ACT) that will see the development of the emirate’s first greenfield commercial bulk liquid storage terminal at its flagship, deep-water Khalifa Port. Further diversifying Abu Dhabi Ports’ portfolio with enhanced capabilities in the handling of liquid bulk products and gases, the project will benefit existing customers and attract new customers in the region seeking liquid bulk storage.
Both new and existing customers will be able to take advantage of Khalifa Port’s strategic location combined with its improved maritime, logistics, and industrial capabilities
“Providing technology-rich, end-toend logistics solutions for customers of all sizes and industries is at the core of Abu Dhabi Ports’ diversification strategy.”
- Capt Mohamed Juma Al Shamisi
Serving as the first terminal to be developed by ACT in the UAE and specifically in Abu Dhabi, the facility’s strategic location and advanced facilities, which will deliver world-class logistics and industrial services, is expected to appeal to ACT’s current clientele that includes some of the world’s largest oil and gas firms.
The agreement for the bulk liquid terminal, which will be developed on a 50,000 square metre land plot adjacent to a 16 metre deep-water quay access, with option for an additional 150,000 square metres of land, was signed by Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports and Rakan Alireza, Managing Director of Arabian Chemical Terminals Ltd and Deputy Managing Director of Reza Investment Company Ltd.
As per the agreement, the the bulk liquid terminal is set to be completed in two phases with the first stage slated for commissioning in the second half of 2022.
News Highlights
Autoterminal Khalifa Port Launches
State-Of-The-Art Technical Centre
Autoterminal Khalifa Port, a joint venture between Abu Dhabi Ports and Autoterminal Barcelona, the operator of the advanced RoRo terminal at Khalifa Port, has unveiled an all-new technical centre aimed at diversifying the portfolio of services on offer to customers.
As the first facility of its kind in the region, the centre provides a wide range of value-added services for customers within the Middle East’s automotive market. From pre-delivery inspection to accessory fitting, automotive importers stand to benefit from reduced labour and transportation costs, as vehicles can be prepared for showroom display or the receiving consignee without needing to visit a third-party facility.
Saif Al Mazrouei, Head of Ports Cluster at
Abu Dhabi Ports said: “Since its founding in 2018, Autoterminal Khalifa Port has quickly established itself as one of the leading choices for automotive distribution moving to and from the Gulf.
“Managed by a dedicated team committed to innovation, Autoterminal Khalifa Port has not only flourished in the market, but has become a role model for others in the industry to follow. The new Technical Centre is a culmination of that continuous drive for improvement and
opens new opportunities for our customers to benefit from.”
Pierre Algeo, CEO of Autoterminal Khalifa Port, said: “Furthering our directive to become the leading distribution hub for automotive vehicles from East Asia, the launch of our new technical centre opens new opportunities for our customers.
“Using our centre, clients will be able to conduct any necessary modification prior to final delivery streamlining their respective operations and achieving improved cost-savings. We are delighted to be the first in the region to offer this added benefit directly within our terminal.”
In addition to offering car washing, predelivery inspection and polishing on site, the facility will have the capability to conduct smart repairs.
News Highlights
MAQTA Gateway Launches Industrial Zone Services Through Single Window Platform
Maqta Gateway, developer and operator of the first Port Community System in the UAE and a wholly-owned subsidiary of Abu Dhabi Ports today announced the launch of Industrial Zone Services through its pioneering Single Window platform, in partnership with ZonesCorp, the UAE’s largest operator of purpose-built Economic zones.
A development that comes in continuation of Maqta Gateway’s achievements throughout the past five years, in providing services to leading companies including KIZAD, Abu Dhabi Terminals, CSP Abu Dhabi Port Container Terminal (COSCO), Autoterminal Khalifa Port and SAFEEN – Abu Dhabi Marine Services, in addition to partnering with The General Administration of Customs in Abu Dhabi to provide digital customs services across sea ports.
The new partnership aims to eliminate the need for customers to visit ZonesCorp Service Centers in Abu Dhabi and Al Ain to conduct processes and transactions, eliminating more than 150,000 physical trips annually. Through the Single Window
platform, customers will now be able to process multiple services and requests digitally, including: inquiries on contracts and investments, information on worker residential cities, work permits and residency services. Launched in 2015, Maqta Gateway’s Single Window Platform offers complete digital solutions, that simplify shipping and freight forwarding procedures to digitally facilitate global trade.
The platform to date has facilitated 23 million transactions.
Moreover, Maqta Gateway also ended 2019 by launching MARGO, enabling consumers importing personal goods from anywhere around the world through Khalifa Port or Abu Dhabi International Airport to have their goods cleared and delivered directly to their homes anywhere in the UAE, via online. The new digital services support the Digital Month initiative, which was launched by Abu Dhabi Government, within the efforts exerted by the various government entities to enhance customer experience through innovative digital services and solutions.
“We
are committed to providing innovative solutions to our customers and continue to explore ways to facilitate trade in Abu Dhabi and contribute towards its sustainable economic development plans.”
-Dr.
Noura Al Dhaheri Head of Digitalization Cluster at Abu Dhabi
Ports and CEO of Maqta Gateway
News Highlights
Abu Dhabi Maritime Academy and National Association of Freight and Logistics to Collaborate to Advance Education in Logistics Education
In line with the UAE’s 2030 vision to foster a knowledgebased economy, the Abu Dhabi Maritime Academy (ADMA) has signed a memorandum of understanding (MoU) with the National Association of Freight and Logistics (NAFL) to further the logistics education and training standards offered in the UAE.
Both organisations will work closely together to create and introduce new professional development programmes in the field of freight and logistics, while also offering globally recognised degrees, such as the International Federation of Freight Forwarders Associations (FIATA) Diploma.
The agreement was signed by Captain Maktoum Al Houqani, Managing Director, Abu Dhabi Maritime Academy and Nadia Abdul Aziz, President of National Association of Freight and Logistics at ADMA, during an event-filled day that included a seminar showcasing the new courses on offer and a workshop highlighting the freight forwarding and logistics service market.
Captain Maktoum Al Houqani, Managing Director, Abu Dhabi Maritime Academy, said: “Reinforcing our longstanding role as an enabler for the Middle East’s maritime and trade industry, our newly minted agreement with NAFL has expanded our capacity to develop the future leaders of the world’s logistics market.
“Combining NAFL’s expertise on global best practices and our state-of-the-art training facilities will not only provide talented youth with the opportunity to develop a skill set that is future ready but at the same time elevate the quality of freight and logistics services offered within the UAE.”
In addition to offering the International FIATA Diploma and courses in freight and logistics, the two parties will collaborate on formulating awareness programmes that will highlight the benefits of the market for prospective students in search for a rewarding career within an evolving and critical industry.
Creating Next-Generation Mariners
Since its establishment in 2006, Abu Dhabi Ports has been aligning itself with the economic plans and directives of Abu Dhabi Government’s 2030 Economic Vision.
This led to Abu Dhabi Ports establishing the Abu Dhabi Maritime Academy – to contribute to the knowledge economy and position itself as leading maritime education and maritime training provider in the UAE and the region.
Internationally Accredited Courses
Our courses are locally and internationally approved by UK Maritime & Coastguard Agency (MCA), UAE Federal Transport Authority (FTA), International Association Lighthouse Authorities (IALA), and Lloyd’s Register.
Abu Dhabi Cruise Terminal, Sir Bani Yas Cruise Beach and Fujairah Terminals welcomed more than half a million visitors in 2019, a 47% increase over the previous season. More than 54,000 cruise guests took time to see the Sheikh Zayed Grand Mosque, their favourite.
Zone Abu Dhabi (KIZAD) is 410 square kilometres, which is approximately two-thirds the size of the city-state of Singapore, and more than twice the size of the US Capital city, Washington, DC.
Facts & Figures
SAFEEN, Abu Dhabi Ports’ integrated marine services arm, has demonstrated a steadfast focus on safety, reflected by the fact that it has been operating for more than 1,100 full-time days without lost time injury. That is an impressive 2,300,000 working hours!
Abu Dhabi Port’s Margo solution, from Maqta Gateway, is the UAE’s first online cargo clearance and delivery solution marketplace, which is capable of bringing the world to your UAE doorstep in a matter of clicks.
7 Facts about Shipping Containers
Made in China
97% of all shipping containers are made in China. China manufactures approx. 5.8 million TEU a year.
Invented in 1956
A gentleman named Malcolm McLean invented the first metal container in 1956 as a replacement for the traditional break bulk cargo handling.
There Are a Lot of Them
It’s estimated that there are over 17 million active shipping containers around the world making a total of 200 million trips a year. That should give you some idea of the massive scale that is modern world trade.
They’re Not Just Used for Shipping
Shipping containers are incredibly versatile. Including the ones used for shipping. They’re frequently used in the construction of homes and offices, and are even available as storage container rentals.
They Don’t Always Make It
While losing a shipping container is a rare event, around 675 shipping containers are lost at sea annually.
The Port of Shanghai
The busiest port in the world, the Port of Shanghai handled over 42 million containers in 2018.
Container Size
A standard TEU (Twenty-Foot Equivalent Unit) container can hold 3,500 shoe boxes, while a 40-ft high cube can hold at least 8,000 shoe boxes.
MohamedAlJumaShamisi
ةراجتلا
