Abu Dhabi Ports streamlines EGA’s steel logistics in ‘win-win’ deal
Emirates Global Aluminium (EGA) and Abu Dhabi Ports have signed a Memorandum of Understanding for Abu Dhabi Ports to upgrade ports, logistics infrastructure and services abroad used by EGA to load raw materials destined for the UAE.
The agreement could lead to new international business opportunities for Abu Dhabi Ports in steel logistics, and will enable more efficient shipping for EGA, while spurring economic growth around the ports by creating opportunities for other trade.
The agreement was signed at EGA’s headquarters at Al Taweelah in Khalifa Industrial Zone Abu Dhabi by Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, and Abdulla Kalban, CEO of EGA, it added.
“What we want to create are win-win-win opportunities for Abu Dhabi Ports, EGA, and port operators and their communities around the world,” said Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.
“Abu Dhabi Ports’ expertise in developing ports and interest in investing internationally, combined with EGA’s demand to use port facilities, should make upgrade projects economically attractive to the benefit of everybody,” he added.
“EGA already works with Abu Dhabi Ports at Khalifa Port in Abu Dhabi and at Kamsar in the Republic of Guinea. This MoU paves the way for further opportunities through which Abu Dhabi Ports can develop its international business, whilst lowering EGA’s shipping costs through the upgrading of the ports that we use,” said Abdulla Kalban, CEO of EGA.
“Securing raw materials at competitive prices depends not just on good relationships with suppliers but also on ease of shipping, so we look forward to developing these opportunities for Abu Dhabi Ports to invest to the benefit of both our businesses and the local economies around these ports,” he added.
In December EGA signed a long-term port facility agreement with Abu Dhabi Ports to import bauxite for EGA’s Al Taweelah alumina refinery at Khalifa Port using the world’s largest bulk cargo ships, known as Capesize vessels.
The agreement, and the security of demand it creates, is enabling Abu Dhabi Ports to invest to develop the port to become the first in the Gulf capable of directly handling these massive ships, reducing EGA’s shipping costs and opening opportunities for other trade.
The dredging will deepen the channel to 18.5m and basin to 18m basis zero tide.
EGA plans to use large dry bulk ships to import raw materials without the need to transfer all or some of the cargo to smaller vessels outside the port, reducing long-term shipping costs and improving environmental performance.