AD Ports Group, SEG sign deals for infra development in Uzbekistan
Joint venture and MoU to accelerate trade and promote food security for the Central Asian nation.
AD Ports Group has signed a joint venture agreement with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses, and signed a memorandum of understanding to develop a food trading hub in Uzbekistan.
At a signing ceremony in Tashkent, the two companies signed the key agreements to support the collaboration, which aims to develop logistics infrastructure and services that will enable Uzbek and SEG's refined products to reach global markets at competitive costs, according to a statement from AD Ports.
"The signing ceremony saw the announcement of AD Ports Group's office in Uzbekistan, the Group's first in the Central Asia region. The office will oversee the projects announced within the agreements signed in Tashkent."
The two companies will create a partnership for logistics and freight forwarding services including intermodal freight forwarding, road, rail and air transport services, the development of inland ports and container depots, warehousing and other logistics infrastructure, contract logistics and custom clearance, the statement said.
"This agreement will support the direction of our leadership and strengthen our strategic partnership with Uzbekistan," says Falah Mohammed Al Ahbabi, Chairman, AD Ports Group. "We are delighted to be able to deploy the expertise and resources of AD Ports Group to address the core logistics challenges and opportunities present within the country. We believe that we will be able to contribute to unlocking the wider economic potential of the nation by building new supply chains and opening new trade routes. Our capacity to build one-stop economic hubs and logistics centres will be put to good use through the creation of a dedicated food hub, as well as the creation of inland ports and depots."
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, adds: "This is a major new agreement that will help transform trade and logistics for Uzbekistan, which has a fast-growing economy and rich natural resources. With our expertise, we will develop multi-modal transport connections that will bring goods to market faster and more efficiently. Our strategic investment in infrastructure and capabilities will help support international companies by opening new points of entry into Central Asian markets and ensuring the highest levels of service and support. In line with the direction of the UAE's leadership, we are positioning Abu Dhabi as a global leader in logistics and industry."
Bakhtiyor Fazilov, Chairman of the Board, SEG added: "This agreement will have a significant impact on the economic progress of our nation, creating new jobs and new opportunities for trade and development. Through working with AD Ports Group, we will establish new trade corridors that will be facilitated by advanced digital services and supported by world-class logistics facilities, including intermodal freight forwarding. Uzbekistan is a major producer of key exports, including oil, natural gas and gold, as well as being the second largest exporter of cotton in the world. Through these new joint ventures, we will be able to bring a wider range of products to more markets around the world, transforming our trade potential."
The MoU will support the development of an integrated food storage and distribution hub to enhance Uzbekistan's food trade across global markets and drive Central Asian food security, the statement said.
Based upon the Regional Food Hub – Abu Dhabi currently under development in KIZAD, AD Ports Group will share their expertise and provide best practice guidance toward the new project. "The food hub will collaborate with Rungis International Market, the wholesale fresh food market, to bring buyers, sellers, logistics players, consolidators, and distributors together to expand access to fresh food and boost exports for Uzbekistan."
The hub is planned to be operated near Samarkand International Airport by Marakand Logair, a subsidiary of SEG.