AD Ports Group has released its annual report for 2023, highlighting that its international business will expand significantly in 2023, particularly following the integration of Noatum. Noatum is a global logistics platform with operations in 27 countries and a leader in automotive logistics services in Europe.
In addition, a series of port, terminal, maritime and shipping agreements in Jordan, Egypt, Pakistan, Republic of Congo, Kazakhstan and Uzbekistan doubled the group’s revenue and expanded its global presence to 46 countries.
Commenting on the report, the chairman of AD Ports Group said: “Through bold, value-adding acquisitions and strategic expansion across the Arabian Gulf, Red Sea, Caspian Sea, Africa and around the world, AD Ports Group has transformed itself into a world-class global trade and logistics facilitator by 2023 in line with the economic diversification goals set by the UAE’s visionary leadership. In a year of heightened uncertainty in global markets, the Group’s record revenues and profits once again underline its resilience and core strengths, as well as its value to shareholders.”
The Group’s endogenous growth strategy focuses on strategic investments and actively makes opportunistic complementary and synergistic value-adding investments in areas such as logistics, maritime transport and port assets.
AD Ports Group Managing Director and Group CEO said: “2023 is one of the most dynamic growth periods in the history of AD Ports Group. We expanded our Marine, shipping and ports business into Jordan, Egypt, Pakistan, Republic of Congo, Uzbekistan and Kazakhstan, in addition to transforming our logistics business with the acquisition of Noatum. Noatum is an integrated supplier active in 27 countries in the automotive logistics industry in Europe.”
Overview Of Global Shipping Industry
The global shipping industry experienced a mixed year in 2023, with freight rates returning to normalisation across all segments despite unbalanced supply and demand dynamics. While the tanker, offshore, bulk and ro-ro markets had a positive year, driven by the reopening of China and a 3 percent increase in global trade volumes, the container market faced challenges, with weak freight rates due to the gradual normalization of supply chains.Increased supply from COVID-19 and fleet.
Despite these differences, the sector remained 33 percent above the 10-year trend on average, with strong performance in the energy transport and offshore sectors – ro-ro rates hit a record high and bulk carriers recovered in the fourth quarter. However, the container business performed better on the trade routes associated with the AD Ports Group, while the main east-west routes were severely affected.
Looking ahead, the shipping and logistics sector will continue to evolve, driven by new trade and investment policies, national security considerations, in response to the post-pandemic shift from a “just in time” strategy to a “just in case” strategy, and the trend towards regionalisation and localisation of supply chains. This shift, coupled with the rapid digitalisation of the logistics sector, is expected to improve trade efficiency and future-proof supply chains. With a diversified logistics footprint centred on Ports, AD Ports Group is well positioned to capitalise on these trends and provide strong support for the re-outsourcing and nearshore outsourcing of supply chains through its global assets.
In addition, the recent Red Sea disruption is expected to further impact throughput and freight rates in 2024, highlighting the importance of regional feeder services and AD Ports Group’s strategic positioning to address the challenges and opportunities of today’s volatile markets.
Jordan Milestones
The beginning of the year saw the inauguration of Aqaba Cruise Terminal, the first facility of its kind in Jordan, and the signing of a 30-year final development concession agreement with the Red Sea Ports Authority (” RSPA “) as well as the operation of a multi-purpose terminal at Safaga Seaport, a strategic location on Egypt’s Red Sea coast.
A major milestone in the Group’s international expansion strategy was the 100% acquisition of Noatum, a global integrated logistics services provider with a presence in all major markets and trade routes worldwide.
As part of the Group’s commitment to strategic development in Africa and emerging markets, the Group has signed a 30-year extendable franchise agreement to manage and operate the multi-purpose terminal in Pointe Noire Port, Congo.
AD Ports Group is committed to replicating the company’s integrated business model in areas that offer long-term and sustainable growth prospects, as reflected in the 50-year concession agreement signed with Karachi Port Trust to develop the state-of-the-art port. Art container terminal. The move is aimed at driving growth, diversifying trade and strengthening bilateral ties between the UAE and Pakistan.
In addition, to meet the growing demand in the global offshore oil and gas market, 10 vessels were purchased to support offshore operations in the Middle East and Southeast Asia. There was also a major cooperation with Kazakhstan’s national shipping company KazMorTransFlot (KMTF) this year with the acquisition of two advanced vessels for the trans-Caspian transport of Kazakhstan’s oil. Today, the group operates more than 250 vessels on all routes.
Financial highlights for 2023 include a 112 per cent year-on-year increase in revenue to AED 11.7 billion. The results for the 12 months ended Dec 31, 2023 showed strong operating and financial results, with EBITDA up 23% year-on-year to AED 2.67 billion and total net profit up 6% year-on-year to AED 1.4 billion in 2023.
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