Abu Dhabi Ports acquires Micco Logistics as it targets underserved markets

Abu Dhabi Ports said on Sunday it acquired local freight management firm Micco Logistics as it seeks to expand its services across the logistics supply chain and cater to underserved market segments.

The ports operator said that the deal opens up more opportunities for its logistics arm to cater to "strategic segments" including retail, e-commerce, fast-moving consumer goods (FMCG), pharmaceuticals and healthcare.

"Our greatly expanded capacity to deliver a wide spectrum of services across the entire supply chain has also opened doors for us to target new opportunities in segments that have been traditionally underserved, including FMCG and healthcare," Robert Sutton, head of Abu Dhabi Ports Logistics cluster, said in a statement. "With the addition of Micco, we are truly connecting the world with the Gulf and beyond.”

Abu Dhabi Ports, which is part of state-owned holding company ADQ, is expanding its supply chain logistics portfolio as the UAE capital seeks to grow as an international hub for maritime trade. The emirate is diversifying its economy amid a push to reduce its dependence on hydrocarbons, boost foreign investment, improve employment and promote trade through the development of its ports.

ADQ's portfolio includes transport, aviation and logistics assets such as Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail and a recently acquired  22.25 per cent stake in the Middle East's biggest courier company, Aramex.

"We are collaborating with Abu Dhabi Ports to transform its logistics arm into one of the largest, most capable and most cost-efficient providers of fully integrated and holistic logistics solutions in the UAE and beyond," Khalifa Sultan Al Suwaidi, vice chairman of Abu Dhabi Ports and chief investment officer at ADQ, said.

Abu Dhabi-based Micco Logistics, which began operations in 1978 as a freight forwarding company serving the oil and gas industry, also operates in the areas of travel services and specialised supply chain activities, according to its website. Its supply chain solutions include transportation of aircraft engines and odd-size cargo, overland trucking and road-feeder services and scheduled or ad-hoc deliveries.

"The acquisition of MICCO is a critical step in our emirate’s journey to establish itself as a leading hub within the global trade and supply chains," Mohamed Juma Al Shamisi, group chief executive of Abu Dhabi Ports, said.