AD Ports Group has signed a Memorandum of Understanding (MoU) with Vale S.A. (Vale) to develop a Mega Hub in Abu Dhabi for industrial complexes to produce low-carbon products for the steelmaking industry.
Vale is a logistics operator in Brazil and a producer of iron ore and nickel.
The agreement will see an allocation of land and related services from Khalifa Economic Zones Abu Dhabi (KEZAD) for the Mega Hub.
The Mega Hub initiative contributes to Vale’s commitment to reduce 15 per cent of net Scope 3 emissions by 2035.
Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33 per cent by 2030 and achieve net zero by 2050.
This is in addition to the development and management of a new handling facility at Khalifa Port, capable of accommodating Valemax vessels with a handling capacity of up to 50 million tonnes of cargo per annum.
AD Ports Group will also develop and manage conveyor infrastructure to transport iron ore and finished products to and from Khalifa Port and KEZAD, and will be exploring commercial collaboration with Vale on the marketing and sale of various bi-products of the manufacturing process in the UAE and the wider region.
Additionally, the agreement includes a maritime collaboration to explore opportunities related to management and operation of very large ore carriers (VLOCs).
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Mohamed Juma Al Shamisi, Managing Director and CEO, AD Ports Group said: “The UAE is committed to not only finding ways to reduce carbon emissions, but also to supporting all efforts aimed at positively affecting the global environment.
“This signing with Vale represents our commitment to the sustainably objectives as set out by the visionary leadership of the UAE.
“Growth and sustainability must go hand in hand, our collaboration with Vale signifies a key step in our contribution towards meeting the UAE Net Zero 2050 strategic initiative,” Shamisi added.
This partnership comes three weeks after AD Ports announced its intention to further expand Khalifa Port to include drydock services.
