AD Ports Group (ADX: ADPORTS), a global leader in logistics, industry, and trade facilitation, and Zhejiang Provincial Seaport Investment & Operation Group Co., Ltd. (Ningbo Zhoushan Port Group), one of China’s largest and most dynamic port operators, have announced a preliminary strategic agreement to establish a comprehensive automotive logistics ecosystem.
Agreement Signed
The agreement was officially signed by Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, and Mr. Tao Chengbo, Chairman of Zhejiang Provincial Seaport Investment & Operation Group Co. Ltd. The signing ceremony coincided with the maiden voyage of the UGR Zakher, the second LNG-powered vessel operated by United Global Ro-Ro (UGR), a Joint Venture between AD Ports Group and Erkport. The UGR Zakher, with a capacity of 7,000 Car Equivalent Units (CEUs), mirrors its sister ship, UGR Al Samha, in offering lower emissions and higher operational efficiency through LNG technology.
Leveraging Ningbo Zhoushan Port’s established automotive sourcing capabilities and UGR’s extensive distribution network, the agreement outlines plans for the reciprocal development of Ro-Ro (Roll-on/Roll-off) and automotive terminals at both Ningbo Zhoushan Port and AD Ports Group’s strategic hub locations. This initiative is a direct response to the escalating demand for vehicle exports from China.
Key enhancements considered under this agreement include:
- Accommodating Larger Vessels: Upgrading infrastructure to handle bigger car carriers.
- Increasing Vehicle Handling Capacity: Expanding facilities to process a greater volume of vehicles.
- Reducing Turnaround Times: Streamlining port operations to minimize the time vessels spend at berths.
Expansion and Modernization
The new preliminary strategic agreement between AD Ports Group and China’s Zhejiang Provincial Seaport Investment & Operation Group is set to revolutionize automotive logistics by enhancing sea and potentially land connectivity for China’s growing vehicle exports.
A core element of this partnership is the expansion and modernization of the Ro-Ro fleet. The UGR Zakher, with a capacity of 7,000 Car Equivalent Units (CEUs), has recently commenced its maiden voyage under this agreement. It mirrors the attributes of its sister ship, UGR Al Samha, which was acquired earlier in the year. Both vessels leverage Liquefied Natural Gas (LNG) for propulsion, leading to lower greenhouse gas emissions and improved energy and operational efficiencies. The addition of the UGR Zakher significantly boosts the capacity on existing deep-sea port routes and enhances sailing frequency, ensuring a more stable, scalable, and cost-effective sea transport solution to meet the surging demand for vehicle exports.
The agreement extends beyond physical infrastructure and fleet expansion to embrace technology integration. The partners will explore comprehensive digital platforms designed to provide:
- Real-time Visibility: Enabling stakeholders to track shipments and operations in real-time.
- Predictive Analytics: Utilizing data to forecast trends and potential issues, allowing for proactive management.
- Automated Coordination Capabilities: Streamlining operational processes, reducing complexity, and minimizing manual intervention, thereby boosting overall performance.
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Source: AD Ports Group
