AD Ports Group and Hong Kong-based Hutchison Ports will explore joint investment opportunities in the maritime and logistics sector and work together to improve port operations in Tanzania.
The two companies plan to identify business opportunities in feedering, logistics and port activities across the GCC, Africa and Asia, AD Ports said in a statement on Tuesday.
They will also work together in Tanzania, where they will seek opportunities to improve the capabilities and competitiveness of the port operations across the East African country. The focus will be on improving servicing to Tanzania’s landlocked remote areas and neighbouring countries, cultivating more cargo sources and developing existing supporting logistics and cargo processing facilities, according to the statement.
“As a starting point, we will work together to enhance and elevate Tanzania port's standing as a world-leading trade hub,” said Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group.
“AD Ports Group will advance plans to develop and implement an innovative logistics, transportation and digital port management system, as well as investing in the development of new infrastructure, such as logistics centres and new inland container depots around Dar es Salaam Port.”
Hutchison Ports has been operating in Tanzania since 2001.
“We are very committed to this market and its great potential. With strong support from local partners and the addition of AD Ports Group, this new partnership will certainly be greater than the sum of its parts,” Eric Ip, group managing director of Hutchison Ports, said.
“Together, we look forward to working closely with the Tanzania Port Authority to further develop Tanzania International Container Terminal Services as we strive to ensure Dar es Salaam Port remains the premier gateway to the east African region.”
The port of Dar es Salaam handles more than 75 per cent of Tanzania’s trade and is a vital gateway to Tanzania, as well as eastern, central and southern Africa.
AD Ports Group, which made its debut on the ADX in February after raising Dh4 billion ($1.08bn) from its share sale, is planning to expand globally. Last month, the company said it had signed two deals to develop logistics and food trading projects in Uzbekistan.
It will also acquire a 70 per cent stake in Egypt's International Associated Cargo Carrier for Dh514 million to expand its footprint in the Arab world’s most populous country and the wider region.
The company also signed a partnership agreement with the Aqaba Development Corporation to develop tourism, logistics, transport and digital infrastructure in the Jordanian coastal city. It signed a deal with the Egyptian Group for Multipurpose Terminals in November last year to develop and operate a multipurpose terminal at Safaga Port on the Red Sea.
The ports operator is also exploring investment opportunities in Iraq after signing an agreement with the General Company for Ports of Iraq in September.
Established in 2006, AD Ports Group owns and operates 10 ports in the UAE, including Khalifa Port, Zayed Port, Mussaffah Port, Fujairah Terminals, Community Ports, Kamsar Port and the Abu Dhabi Cruise Terminal, as well as a terminal in Guinea.
It also manages more than 550 square kilometres of industrial zones and an end-to-end logistics business, besides offering a range of maritime services.
Hutchison Ports, which employs more than 30,000 people, operates ports and terminals in 26 countries in Asia, the Middle East, Africa, Europe, the Americas and Australasia, according to its website.
In Africa and the Middle East, the company has operations in Egypt, Tanzania, Iraq, Oman, Saudi Arabia and the UAE.