09.10.2024 (Caucasian Journal). We are delighted to welcome Mr. Abdulaziz ZAYED AL SHAMSI, Regional CEO of AD Ports Group (United Arab Emirates).
AD Ports Group is a leading global maritime and logistics company, based in Abu Dhabi. The company has recently acquired a majority stake in Tbilisi Dry Port, and we believe our readers would be keen to learn more about this project and its importance for Georgia and the wider region.
Alexander KAFFKA, editor-in-chief of Caucasian Journal: Dear Abdulaziz, welcome to our journal. Let's begin with your project in Georgia and then explore a broader international perspective. Your company has become the majority owner of Tbilisi Dry Port (TDP), which is scheduled to commence operations this October. For many readers, the term "dry port" might seem contradictory. Could you please explain what a dry port is and what types of operations will you be initiating this autumn?
Abdulaziz Zayed Al Shamsi (AZA): Certainly. A dry port is sometimes referred to as an inland port. The Tbilisi Dry Port (TDP) is an intermodal terminal directly connected by road and rail to a seaport. TDP is a custom-bonded terminal with procedures in place to ensure customs duties are levied and paid, and it is rail-connected. It’s a logistics hub that can move containers, vehicles, and other goods for distribution and storage. TDP is an excellent fit for AD Ports Group. Not only does TDP represent a major step in our strategic expansion along the Middle Corridor between Asia and Europe, but it is also centrally positioned. TDP offers direct westward rail links to Türkiye and Georgia’s ports of Poti and Batumi. To the East, TDP connects with ports located along the Caspian Sea via a railway corridor to Azerbaijan. We have said that we expect to be operational in Tbilisi in Q4, when TDP begins its activities as a regional transit hub for manufacturers, shippers, and consignees moving all types of goods.
Your beautiful country is, like the UAE, also going through a period of rapid growth and change.
AK: How would you summarize the benefits this project brings to Georgia? And, by the way, is this your first endeavor in the country?
AZA: TDP is AD Ports Group’s first activity in Georgia, but not in Central Asia. We have been strategically building our presence along the Middle Corridor over the last two years. We are working closely with governments in the region to support their development plans to increase opportunities for economic growth, leveraging our know-how and sharing our expertise. Given Georgia’s central location in the Caucasus, TDP is a critical next step in strengthening our presence along the Caspian Sea-Black Sea corridor, and in aligning with our growing maritime and logistics assets in Central Asia and Türkiye. We are the majority shareholder in TDP with a 60% stake. With AD Ports Group, one of the fastest-growing integrated trade, transport, logistics and industrial development companies, Georgia gains access to our global network and supply chains in more than 50 countries to grow volumes through Tbilisi. Not only will Georgian products gain more efficient, cost-effective access to world markets through our network, but we aim to capture significant future trade volumes in Tbilisi by leveraging the growth of the Middle Corridor.
AK: Your company seems to have extensive projects in Kazakhstan, ranging from infrastructure to vessels and railways. Are there similar plans for Georgia or neighboring South Caucasus countries?
AZA: We are constantly evaluating opportunities around the world, and this is also true in Central Asia. We tend to seek opportunities that complement our operations and enhance our growing global ports, maritime and shipping, logistics, and industrial development networks, as well as those that bring innovative digital solutions to our Group.
The Middle Corridor is expected to experience considerable growth in container volumes... Because of its position at the center of the Middle Route, Georgia plays an important role in the development of this route.
AK: I understand that projects in Georgia and Kazakhstan are part of the Middle Corridor, the shortest trade route between Asia and Europe. We had discussed the Middle Corridor at length in the interview with the World Bank Regional Director. What is the significance of the Middle Corridor for UAE, and for your company in particular?
AZA: Building critical mass along the Middle Corridor is a priority for AD Ports Group. As your readers may be aware, this route is regarded as the shortest trade route between Asia and Europe, covering approximately 7,000 km, and typically requiring a journey of 10 to 15 days. That’s significantly shorter than the other alternatives that currently make up the bulk of East-West trade. The Northern Corridor covers about 10,000 km overland, requiring 15 to 20 days, while the Southern Ocean Route spans approximately 20,000 km, requiring a sea voyage of 45-60 days. Because of this natural advantage, the Middle Corridor is expected to experience considerable growth in container volumes, with the potential to reach 1.9 million Twenty-Foot Equivalent Units by 2040 [A Twenty-Foot Equivalent Unit (TEU) is a standard measurement used in the shipping industry to quantify cargo capacity - CJ]. The UAE is one of the world’s fastest-growing economies, and AD Ports Group, as I mentioned, is one of the fastest-growing trade, transport, and logistics companies. Because of its position at the center of the Middle Route, Georgia plays an important role in the development of this route.
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AK: Following up on my previous question, could you provide a brief overview of your company and the role of AD Ports Group in the UAE and globally?
AZA: AD Ports Group is based in Abu Dhabi, the capital of the United Arab Emirates, and the company is owned 75.42% by ADQ, an Abu Dhabi holding company and strategic investor. We were founded in 2006, and over the last three years have gone through a rapid global expansion through inorganic acquisitions, such as TDP, and organic growth from our growing ports, maritime and shipping, logistics, economic cities and free zones, and digital innovations businesses. We currently generate an increasing share of our group revenue outside of the UAE, and that share is rising as we acquire new assets in more than 50 countries on six continents. Our company went public in 2022, and our shares are traded on the Abu Dhabi Securities Exchange. We have top credit ratings and have been repeatedly recognised in the Middle East and North Africa (MENA) region for our commitment to business excellence, excellence in corporate social responsibility (CSR), and sustainability through our environmental, social, and governance (ESG) standards.
AK: Just a few days ago, UAE media reported remarkable economic growth figures. UAE exports in the first six months of 2024 have already equaled the total annual output of 2019, the pre-COVID year. How do you envision your country's position within the next few years, perhaps five years from now?
AZA: While I am a proud Emirati, I can’t speak for the government or for any economic growth figures or forecasts. Of course, I am aware of our country’s robust GDP growth, and that is a credit to our wise leadership, whose vision, foresight, and guidance are the roots of our success. As a representative of AD Ports Group, my goal is to promote collaborative business relationships wherever we do business relationships that mutually benefit the UAE and its business partners in countries such as Georgia.
AK: In our interview with your Ambassador to Georgia, H.E. Ahmed Ibrahim Alnuaimi, he confirmed that the UAE is the largest investor from the Gulf region in Georgia and views it as a strategic partner. Just days after our publication your company announced the purchase of TDP. What can be done, in your view, to make Georgia even more attractive to investors from the Gulf?
AZA: Georgia is an attractive investment location for AD Ports Group because of its strategic location along the Middle Corridor and its fast-growing economy. According to the World Bank, Georgia’s economy grew by 9.2% in May! So, your beautiful country is, like the UAE, also going through a period of rapid growth and change. Together, I think the UAE, Georgia, AD Ports Group, and TDP, have a bright future ahead of us.
AK: AD Ports Group has undertaken major steps in expanding its global footprint organically and through acquisitions, can you please elaborate on the significance of the Group’s expansion?
AZA: AD Ports Group is one of the fastest-growing enablers of trade, industry, and logistics, our international footprint increased dramatically, following the integration of Spain-based Noatum Logistics, a global provider of integrated ports, maritime, and logistics services with a presence across 27 countries, and a series of ports, terminals, maritime and shipping agreements in global markets including Georgia, Jordan, Egypt, Pakistan, Republic of Congo, Kazakhstan and Uzbekistan, which more than doubled our revenue and extended our global reach to 50 countries.
We remain eager to build up on this momentum, to facilitate trade and enhance connectivity amongst global markets while contributing towards our partners' development plans, and cementing Abu Dhabi’s leading position as a global trade and logistics hub.
AK: If there is anything that you would like to add for our readers, the floor is yours.
AZA: I can only add that I look forward to visiting your country again soon, and I look forward to a successful collaboration between AD Ports Group and our investment partners at TDP in Georgia.
AK: Thank you very much.
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