Posted on March 20, 2018
Emirates Global Aluminium (EGA), the UAE’s largest industrial company outside of the oil and gas sector, has signed a Memorandum of Understanding (MoU) with Abu Dhabi Ports (ADP). Through the agreement they will work together to develop opportunities to upgrade the ports, logistics infrastructure and services used abroad by EGA to load raw materials destined for the UAE.
The agreement could lead to new international business opportunities for ADP, enable more efficient shipping for EGA and spur economic growth around the ports concerned by creating opportunities for other trades.
The latest MOU was signed at EGA’s headquarters at Al Taweelah in Khalifa Industrial Zone Abu Dhabi by Captain Mohamed Juma Al Shamisi, ADP chief executive officer, and Abdulla Kalban, managing director and chief executive officer of EGA.
Captain Al Shamisi said: “What we want to create are win-win-win opportunities for Abu Dhabi Ports, EGA, and port operators and their communities around the world. Our 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.”
EGA already works with ADP at Khalifa Port in Abu Dhabi and at Kamsar in the Republic of Guinea. This MoU paves the way for further opportunities through which ADP can develop its international business, while at the same time lowering EGA’s shipping costs through the upgrading of the ports that it uses. Mr. Kalban added, “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.”
Last December EGA signed a long-term port facility agreement with ADP to import bauxite for the Al Taweelah alumina refinery at Khalifa Port using Capesize vessels. This agreement is enabling ADP to invest to develop the port so that it can become the first in the Gulf capable of directly handling these massive ships, thereby reducing EGA’s shipping costs and opening opportunities for other trades. Dredging work will deepen the channel to 18.5 metres and the basin to 18.0 metres depth.
ADP is the operator of a container quay that EGA has built at Kamsar in Guinea, which is being used to unload materials and equipment for the construction of a bauxite mine. Once construction is complete, the container quay will be opened to other trade opportunities
EGA shipped approximately 6 million tonnes of bulk raw materials such as alumina, coke and pitch from some 20 ports worldwide last year. It says bottlenecks at these ports that can reduce the efficiency of shipping include shallow channels that only allow smaller vessels to berth, manual rather than automatic loading, and limited rail capacity.
Source: The Maritime Standard
