Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

AD Ports Group, SEG Sign Deals to Develop Logistics, Freight, Food Trading Infrastructure in Uzbekistan

AD Ports Group, SEG Sign Deals to Develop Logistics, Freight, Food Trading Infrastructure in Uzbekistan

Thursday, 7 July, 2022 - 08:00
Officials at the signing ceremony between AD Ports and SEG. (WAM)

Abu Dhabi Ports Group launched a joint venture with SEG, one of Uzbekistan's largest oil and gas companies, to open new logistics and freight businesses.


They also signed a Memorandum of Understanding (MoU) to develop a food trading hub in Uzbekistan.


During a 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.


The signing 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 and coordinate with the Group's headquarters in Abu Dhabi to ensure the progress of work on projects and meet all requirements.


Under the joint venture agreement, 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, container depots, warehousing, and other logistics infrastructure, contract logistics and customs clearance.


The venture will deploy new technology and specialized processes to address the challenges caused by Uzbekistan's double-landlocked geographical location, surrounded by five additional landlocked nations.


An MoU was also signed to 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.


Under the MoU, the two companies will collaborate on opportunities relating to food storage, transportation, and security and explore related end-to-end solutions for the project.


The two sides will cooperate under the initial agreement to take advantage of the collaborative opportunities available in food storage and transportation and ensuring food security, as well as exploring integrated solutions that can be employed in the project.


The hub will be operated near Samarkand International Airport by a subsidiary of SEG - MARAKAND LOGAIR.


Chairman of AD Ports Group, Falah al-Ahbabi, said the agreement would support the direction of the wise leadership and strengthen the strategic partnership with Uzbekistan.


"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," Ahbabi said.


He indicated that the project would contribute to unlocking the broader 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 centers will be put to good use by creating a dedicated food hub and inland ports and depots," noted Ahbabi.


The Chairman of the Board of SEG, Bakhtiyor Fazilov, stressed that Uzbekistan is a major producer of key exports, including oil, natural gas, and gold.


Fazilov noted that Uzbekistan is "the second-largest exporter of cotton in the world. Through these joint ventures, we will be able to bring a wider range of products to more markets worldwide, transforming our trade potential."


Editor Picks

Multimedia