Abu Dhabi sets eye on Uzbekistan with new logistics enterprise

Abu Dhabi Ports has set its eyes on Uzbekistan and formed a first-of its-kind enterprise in the country, in cooperation with construction firm Enter Engineering. The choice for an Uzbek enterpriser is indicative of the growing importance of the Central Asian country.

AD Ports Group, as the company from the UAE is called in full, has signed an agreement with Enter Engineering Group to launch new businesses providing logistics and freight forwarding services in Uzbekistan. The two companies are planning to set up several joint ventures to manage logistics and freight forwarding services, including air, sea, land and rail logistics, warehousing, contract logistics, and customs clearance, they said in a statement.

Enter Engineering claims to be a market leader in industrial construction in Uzbekistan. By partnering up with the company, AD Ports hopes to develop its logistics position in the Central Asian region. In return for its commitment domestically, Enter Engineering will have the support of Abu Dhabi in winning tenders in the UAE, with a particular focus on the energy sector.

International expansion AD Group

AD Ports has recently expanded its logistics activities on the global market. It signed several agreements with international logistics companies, such as the mega deal with CMA CGM in September last year.

The French shipping giant and the AD Ports agreed on a 35-year plan for the development of a $154 million terminal at Khalifa Port (Abu Dhabi), which will enable AD Group to establish regional hub with connections to South Asia, Western Asia, East Africa, Europe and the Mediterranean, as well as the Middle East and the Indian subcontinent.

Last month, ​​AD Ports signed an agreement with independent logistics service provider Alexander Global Logistics (AGL), for the distribution of pulp and paper products in the Middle East. Also in this plan, Khalifa Port will have the role of a transhipment hub dedicated to handling the products.

Choice for Uzbekistan

Considering these ambitions, the choice for Uzbekistan for a new enterprise is not surprising. The countries already share 15 projects with a value of 5 billion US dollars, according to the Uzbekistan’s Ministry of Investments and Foreign Trade.

“We are confident that the strong synergies we share with AD Ports Group will deliver real benefits for our customers and stimulate new business opportunities. This agreement will create jobs, support the needs of businesses within Uzbekistan, and open international channels for trade and development”, Bakhtiyor Fazilov, chairman of the board of directors of Enter Engineering Group wa quoted in several media.

Author: Majorie van Leijen

Majorie van Leijen is the editor-in-chief of RailFreight.com, the online magazine for rail freight professionals.

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