Abu Dhabi Ports Group (AD Ports) has launched a joint venture with oil and gas company SEG to open new logistics and freight businesses in Uzbekistan and reach global markets.
The signing ceremony also saw the announcement of AD Ports Group’s office in Uzbekistan, the Group’s first in the Central Asia region. The office will oversee the projects announced within the signed agreements.
Under the joint venture, the two companies will create a partnership for logistics and freight forwarding services including intermodal freight forwarding, road, rail and air transport services, the development of inland ports and container depots, warehousing and other logistics infrastructure, contract logistics and custom clearance.
Partners said they will also deploy new technology and specialised processes to address the challenges caused by Uzbekistan’s landlocked location.
“This agreement will support the direction of our wise leadership and strengthen our strategic partnership with Uzbekistan,” said Falah Mohammed Al Ahbabi, Chairman of AD Ports.
“We are delighted to be able to deploy the expertise and resources of AD Ports Group to address the core logistics challenges and opportunities present within the country.
“We believe that we will be able to contribute to unlocking the wider economic potential of the nation by building new supply chains and opening new trade routes.”
AD Ports and SEG have also signed a Memorandum of Understanding (MoU) to support the development of an integrated food storage and distribution hub to enhance Uzbekistan’s trade across global markets.
Under the MoU, the two companies will collaborate on mutual opportunities relating to food storage, transportation, and security, and will explore related end-to-end solutions for the project.
The hub is planned to be operated near Samarkand International Airport by SEG’s subsidiary, Marakand LogAir.
“This agreement will have significant impact on the economic progress of our nation, creating new jobs and new opportunities for trade and development,” said Bakhtiyor Fazilov, Chairman of the Board of SEG.
“Uzbekistan is a major producer of key exports, including oil, natural gas and gold, as well as being the second largest exporter of cotton in the world.
“Through these new joint ventures, we will be able to bring a wider range of products to more markets around the world, transforming our trade potential.”
The total purchase consideration of this transaction amounts to AED514 million ($140 million). The acquisition will be fully funded from AD Ports Group’s existing cash reserves, which stood at over AED3 billion ($816 million) as of 31 March 2022.
