AD Ports Group has expanded its reach beyond the UAE significantly, while working on an industry cluster approach at its vast hub in Abu Dhabi. Image Credit: Supplied

Dubai: The ADX-listed fertilizer company Fertiglobe will work with AD Ports Group to jointly ‘explore’ logistics and supply chain opportunities to store and ship urea and ammonia at ports in Egypt and UAE.

The plan is to ‘leverage’ AD Ports group’s cargo handling and storage infrastructure at a time when Fertiglobe os expanding its urea and ammonia storage and shipping capacities. The latter is the world’s biggest sea-based exporter or urea and ammonia combined, as well as being the region’s largest nitrogen fertilizer maker.

“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,” said Ahmed El-Hoshy, CEO of Fertiglobe.

“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.”

Cost savings
Fertiglobe through optimizing its logistics’ costs is targeting $50 million in recurring annualized cost savings by end 2024.

Covering more geography

Fertiglobe and AD Ports Group will explore potential collaboration opportunities in 'other geographies', apart from  the development of supply chain solutions for green ammonia, a hydrogen carrier, through the former's existing operations located near key shipping routes.

"This partnership cements AD Ports Group’s commitment to driving broader global collaboration and supply chain development for alternative fuels," said Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group. 

"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."