AD Ports Group, a key player in global trade, logistics, and industry across the Arabian Gulf and Red Sea, has made its debut in the global top 20 rankings of world port operators. This significant milestone, recognized by Drewry, a UK-based firm specializing in the container ports sector, highlights the rapid expansion and growing industry relevance of AD Ports Group’s ports business.
Strategic Expansion and Industry Recognition
AD Ports Group’s ascent to 19th place in the Drewry global rankings is a testament to its ambitious growth strategy, which has been fueled by new operating concessions and the acquisition of Noatum in 2023. Noatum, which manages 16 terminals in Spain, has significantly boosted AD Ports Group’s global footprint, solidifying its position as a leading international port operator.
Leadership and Vision
Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, emphasized the importance of this achievement, noting that the group’s inclusion in the Drewry Top 20 League Table underscores its growing international significance. Under the guidance of the UAE’s leadership, AD Ports Group remains committed to expanding its influence in trade, maritime, logistics, and industrial development, striving to become larger, more profitable, and increasingly global.
Expanding Global Presence
Currently, AD Ports Group operates 33 terminals across eight countries, with 27 of these already operational. The group has new terminals set to come online in the UAE and under concession agreements in the Republic of Congo, Egypt, and Angola. The latest Drewry ranking, based on container throughput data from 2022/2023, reflects the group’s impressive performance, with AD Ports Group reporting a container throughput of 4.91 million Twenty-foot Equivalent Units (TEUs) in 2023, a 13% year-on-year increase.
Growth and Financial Performance
AD Ports Group’s Ports Cluster has continued to experience rapid growth. In the second quarter of 2024, the Ports Cluster reported an 83% year-on-year increase in revenue, reaching AED 563 million (US $153.29 million). This growth was driven by contributions from various strategic acquisitions and concessions, including the management of four berths at Karachi Port in Pakistan, which began under a 50-year concession agreement with Karachi Gateway Terminal Limited (KGTL).
Leveraging Global Opportunities
AD Ports Group is strategically leveraging multipurpose terminals to develop new markets, focusing primarily on the Indian Subcontinent, Red Sea, Mediterranean, South Asia, and Africa. In 2023 and the first half of 2024, the group signed agreements to develop and operate multipurpose terminals in Safaga (Egypt), Pointe Noire (Republic of Congo), and Luanda (Angola). These developments, along with preliminary agreements in Egypt and Bangladesh, are part of a broader strategy to increase the group’s terminal portfolio capacity by more than 60% to 14.5 million TEUs over the next five years.
Strategic Acquisitions and Global Expansion
A significant recent development is the acquisition of a 95% stake in Tanzania International Container Terminal Services (TICTS) by East Africa Gateway Limited, a joint venture led by AD Ports Group and Adani. This acquisition, alongside others in Spain and Pakistan, has positioned AD Ports Group to capitalize on synergies from its expanding global footprint, further enhancing its operational capacity and global influence.
Financial and Strategic Impact of Acquisitions
The 2023 acquisition of Noatum, a leading vertically integrated logistics supplier to global automakers in Europe, has transformed AD Ports Group’s Logistics Cluster. Following the acquisition, the cluster’s revenue more than tripled in 2023, reaching AED 1.94 billion. In the first half of 2024, the Logistics Cluster generated AED 2.2 billion in revenue, accounting for 26% of the group’s overall revenue, making it the second-largest contributor after the Maritime & Shipping Cluster.
Conclusion
AD Ports Group’s inclusion in the Drewry global top 20 rankings reflects its growing global clout and strategic expansion across key markets. With continued investment in new terminals and strategic acquisitions, the group is well-positioned to enhance its role as a leading global port operator, contributing to non-oil-based economic growth in the UAE and beyond.
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Source: Energy Connects
