UAE-based port developer and regulator AD Ports Group is set to transform connectivity and industrialization in Central Asia through two groundbreaking joint ventures with Kazakhstan.
The agreements were announced in the presence of President of the Republic of Kazakhstan Kassym-Jomart Tokayev in Dubai on December 2, 2023. Kazakhstan’s president met with Investments Minister of the United Arab Emirates Mohammad Hassan Alsuwaidi on the sidelines of the 28th UN Climate Change conference COP28.
Joint Venture between AD Ports and Kazakhstan Railways
AD Ports Group, a global leader in trade, logistics, and industry, has inked an agreement with Kazakhstan Temir Zholy JSC (Kazakhstan Railways) to establish a joint venture aimed at enhancing rail connectivity, maritime shipping services, and the development of operations in Kazakhstan’s ports.
The joint venture, with 51% ownership by AD Ports Group and 49% by Kazakhstan Railways, seeks to create a dynamic regional logistics hub.
Abdulaziz Zayed Al-Shamsi, Regional CEO of AD Ports Group, highlighted the potential for strengthened maritime connectivity between the Middle East and Central Asia.
Abdulaziz Zayed Al-Shamsi, Regional CEO of AD Ports Group, said: “Our joint venture with Kazakhstan Railways has the potential to not only strengthen maritime connectivity between the Middle East and Central Asia, but also opens up new trade routes, making it easier and more efficient to move goods across these two regions.”
The collaboration aims to streamline trade routes, making the movement of goods more efficient. Al-Shamsi stated that the enhanced connectivity could lead to increased trade volumes, benefiting the global maritime industry.
Yerlan Koishibayev, Deputy CEO for Logistics of Kazakhstan Railways, said: “The new joint venture will focus on expanding port infrastructure on the Caspian Sea, creating trade hubs and bringing advance digital technologies.” The collaboration aims to contribute to development of Kazakhstan’s transport and transit potential, increase export directions, and open up markets for Kazakhstani goods in the Arabian Gulf countries, he added.
The joint venture will be implemented in phases, with a focus on developing maritime electronic systems, vessel operations, port and trade development, and railway infrastructure expansion.
AD Ports and KazMunayGas to develop ship building and repair facility in Kazakhstan
In a related development, AD Ports Group and KazMunayGas, the national operator of the oil and gas industry of Kazakhstan, have signed Heads of Terms (HoT) to establish a state-of-the-art ship building and repair facility in the Mangistau region of Kazakhstan.
The shipyard is set to become a cornerstone for AD Ports Group and KMG’s rapidly expanding joint venture – Caspian Integrated Maritime Solutions (CIMS).
The multifaceted facility, would offer a broad range of services including drydocking, afloat repairs, ship building and refurbishment. It would be designed to accommodate diverse vessel types such as bulk carriers, container ships, tankers, offshore vessels, and ferries.
“Our strong alliance with KazMunayGas, through our strategic Joint Venture, CIMS, broadens our range of maritime services and fleet within the Caspian Region, whilst providing further opportunities to utilize our combined strengths to catalyze economic growth of Kazakhstan and the wider region,” Captain Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said.
Magzum Mirzagaliyev, Chairman of KazMunayGas, expressed confidence that the agreement would significantly contribute to strengthening the strategic partnership between the two countries. The collaboration aims to leverage AD Ports Group’s experience in ship repair services for the establishment of the shipyard in Kazakhstan, aligning with the vision of the government and leadership of Kazakhstan.