AD Ports Group, the operator of industrial cities and free zones, and Uzbekistan’s Seg Enera Group have formed a joint venture to further develop the logistics services sector in the central Asian state.
The joint venture company, ADL-Ulanish, will provide end-to-end global logistics services across Uzbekistan, AD Ports said in a filing on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
The partnership allows the Abu Dhabi company to use its expertise in global supply chain logistics in addressing challenges faced by Uzbekistan, a double-landlocked nation, surrounded by five additional landlocked nations.
Seg Enera, a multi-sectoral business group, will contribute its industrial assets, including warehouses, as well as its rail and lorry fleets to ADL-Ulanish’s operations.
The new company will serve not only Seg Enera’s business needs but also those of other clients in Uzbekistan across the industrial, oil and gas, e-commerce, healthcare and pharmaceuticals sectors, AD Ports said.
“The launch of ADL-Ulanish provides us with a platform to extend our extensive portfolio of logistics services and expertise to the key market of Uzbekistan, which is located within a region that is primed for future growth,” said Farook Al Zeer, chairman of Logistics Cluster at AD Ports Group.
“There is significant demand for freight-forwarding and warehousing services in Uzbekistan, which has seen major economic expansion in the recent years, driven by important reforms and modernisation efforts.”
AD Ports is well positioned to make a “transformational impact across key industries” in Uzbekistan, he said.
AD Ports, which made its debut on the ADX in February last year after raising Dh4 billion ($1.08 billion) from its sale of shares, is pushing to expand its operations globally.
In January, the company teamed up with Angolan authorities to enhance maritime connectivity along Africa’s west coast.
Also in January, it signed a partnership with Kazakhstan's state energy company KazMunayGas and signed a preliminary accord with the country's Ministry of Industry and Infrastructural Development for the development of a national marine fleet and coastal infrastructure in the Caspian and Black seas.
Last year, AD Ports acquired Spain’s integrated logistics platform Noatum for Dh2.5 billion, purchased a 70 per cent equity stake in Egypt's International Associated Cargo Carrier for Dh514 million and bought an 80 per cent stake in Dubai's Global Feeder Shipping for Dh2.9 billion.
chairman of Logistics Cluster, AD Ports Group
In June 2022, AD Ports also signed a joint venture agreement with the Engineering Group in Uzbekistan to launch a logistics businesses in the country, focusing on freight-forwarding services, warehousing, contract logistics and customs clearance, the company said at the time.
A month later, it formed a joint venture with Uzbekistan’s oil and gas company SEG — Sanoat Energetika Guruhi — for the development of logistics and freight infrastructure.
Through the partnership with Seg Enera, AD Ports will also explore the development of inland container depots and dry ports in Uzbekistan, it said on Monday.
It will also provide a range of digital solutions to boost service integration and efficiency, as well as support the creation of a food centre in Uzbekistan, it said.
