The new route will contribute to AD Ports Group’s strategic objectives of increasing regional and global connectivity.
AD Ports Group and Transmar International Shipping Company (Transmar) have launched a new container shipping service that will link Karachi, Pakistan’s busiest port, with the major maritime economies of the Middle East and East Africa. The new route will contribute to AD Ports Group’s strategic objectives of increasing regional and global connectivity.
The new route will provide weekly connections for cargo between Karachi Port and AD Ports Group’s flagship Khalifa Port in Abu Dhabi, in addition to Jebel Ali Port in Dubai, Dammam and Jeddah in KSA, Aqaba in Jordan, Sokhna and Adabiya in Egypt, plus Port Sudan and Djibouti.
Karachi Port is a key economic hub that deals with approximately 60 percent of Pakistan’s cargo, handling on average 26 million tons of cargo per annum. The deep natural port offers an 11 km approach channel, which enables safe navigation for vessels up to 75,000 tonnes deadweight.
The launch of the new Pakistan route follows AD Ports Group’s acquisition of a 70 percent shareholding in Egypt-based Transmar and Transcargo International S.A.E. (TCI) in September 2022.
The new service uses containers provided by Transmar on slots, largely provided by other AD Ports Group companies SAFEEN Feeders and Global Feeder Shipping (GFS), which it acquired earlier this month. By deploying synergies between its companies, AD Ports Group is looking to significantly enhance connectivity across the region.
Captain Ammar Mubarak Al Shaiba, Acting CEO – Maritime Cluster and SAFEEN Group, AD Ports Group, said: “AD Ports Group is working to continuously improve the level of excellence, efficiency and connectivity available to our customers, leveraging the synergies of our recent acquisitions and the high level of support provided by our integrated team. The new weekly service will connect Pakistan’s busiest port with key maritime hubs across the Gulf, Red Sea, and East Africa, enabling the region to foster and increase integrated and collaborative trading partnerships.”
Ahmed El Ahwal, Managing Director, Transmar International Shipping Company said: “As a result of AD Ports Group’s shareholding in Transmar, we are pleased to be able to offer customers across the Middle East and East Africa greater connectivity to Karachi, which is one of the largest ports in South Asia, as well as the enabling customers in Pakistan to reach a wide range of key markets.”
Pakistan and the UAE enjoy a dynamic economic relationship, with bilateral trade in 2021-22 between the two countries valued at approximately $10 billion. In 2020, the top exports from Pakistan to the UAE were $122 million in gold, and $109 million in beef. Top exports in 2020 from the UAE to Pakistan were $2.21 billion in refined petroleum, and $1.04 billion in crude petroleum.
AD Ports Group announced recently that it has acquired Noatum, a global integrated logistics platform with a presence in 26 countries and LTM revenue and EBITDA of Dhs6.91 billion and Dhs555 million, respectively.
The total purchase consideration (Enterprise Value) for 100 per cent ownership amounts to Dhs2.5 billion, implying an LTM EV/EBITDA of 4.6x. This value and earnings accretive acquisition, which significantly broadens AD Ports Group’s global footprint and positions it among the leading logistics and freight forwarding companies in the world, will be fully funded through a new acquisition loan.
Recognising Noatum’s high growth potential and capacity to scale, AD Ports Group intends to create a market-leading international logistics brand, merging its existing logistics business with Noatum to create a significant presence in the region and enhancing services across the company’s global footprint.
Moving forward, Noatum will lead AD Ports Group’s Logistics Cluster, consolidating the company’s existing logistics offering into its operations.
This will be AD Ports Group’s third major international acquisition in 2022, following the acquisition of a 70 percent equity stake in Transmar and TCI in September, and the announcement in November of its acquisition of an 80 percent equity stake in Dubai-based Global Feeder Shipping (GFS).
Noatum, whose origins date back to 1963, operates in three business areas – Logistics, Maritime, and Port Terminals – with market-leading positions in Spain and Turkey and a significant presence in the US, UK, China, and Southeast Asia.
Noatum’s global Logistics business specialises in comprehensive freight management, project logistics, contract logistics, international supply chain management, customs, and e-solutions, with offices and a wide network of agents around the world. In particular, Noatum has advanced capacities in heavy lift logistics, which AD Ports Group aims to bring to the region.