Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC and OCI Global (EURONEXT: OCI), the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa (MENA) region, and an early mover in sustainable ammonia, today announced that it has signed a non-binding Memorandum of Understanding (MoU) with AD Ports Group (ADX: ADPORTS), a leading facilitator of global trade, logistics and industry, to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.
The two companies will explore opportunities to leverage AD Ports Group’s state-of-the-art cargo handling and storage infrastructure, as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency and further automates its logistical activities.
Ahmed El-Hoshy, CEO of Fertiglobe, commented:
“We are pleased to partner with AD Ports Group, a UAE national champion and a global leader in maritime trade and logistics. Through this MoU we will identify compelling opportunities across our logistics and supply chain management requirements, enabling us to bolster our ability to store and ship urea and ammonia from Egypt and further optimize our logistics’ cost structure. Today, our strategically located production facilities benefit from direct access to international ports and distribution hubs, allowing us to easily access major end-markets and regions with high demand. This MoU will enable us to expand our partnership beyond Egypt and the UAE, as well as to the shipping and storage of green ammonia, in line with our commitment to deliver more sustainable products to the world.”
By capitalizing on AD Ports Group's robust supply chain capabilities and sustainable modes of inland transportation, Fertiglobe seeks to further optimize its logistics’ cost structure, a key component of its recently introduced cost optimization program, targeting $50 million in recurring annualized cost savings by the end of 2024.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented:
"In line with the UAE’s wise Leadership’s vision for economic diversification, this partnership cements AD Ports Group’s commitment to driving broader global collaboration and supply chain development for alternative fuels, which contributes to achieving the Group's sustainability objectives. We anticipate that this will become a remarkable step towards a greener, more efficient future. As two homegrown champions, AD Ports Group and Fertiglobe are embarking on this strategic collaboration that holds immense potential. We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.”
Fertiglobe and AD Ports Group will explore potential collaboration opportunities in other geographies as well as the development of supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.
Source: Zawya
