AD Ports adds trucks, ships and air cargo routes during Strait of Hormuz disruption
AD Ports added 400 trucks, more rail services and air cargo links to protect supply chains
Dubai: AD Ports Group expanded alternative sea, road, rail, and air cargo routes across the UAE during the second quarter of 2026 to keep goods moving amid disruptions around the Strait of Hormuz, including critical shipments such as food and pharmaceuticals.
Cargo operations and feeder services were rerouted through Fujairah Terminals and Khor Fakkan Port on the Gulf of Oman. At the same time, the Group added 400 trucks, increased rail service frequency with Etihad Rail, introduced new air cargo solutions and expanded warehousing and storage capacity.
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The measures were implemented under the UAE’s National Programme to Strengthen Supply Chain Resilience, with AD Ports saying they helped limit the impact of Strait of Hormuz traffic disruption on customers and the wider UAE and GCC economy.
Ships rerouted through UAE east coast
AD Ports reinforced its regional feeder shipping network during the quarter, redeploying and increasing container and bulk cargo capacity across alternative corridors connecting the UAE with India, Pakistan, Oman, Red Sea ports and ports in the Upper Arabian Gulf.
A fleet of 27 container vessels and five bulk vessels was deployed across these routes to maintain cargo movements.
Alternative overland corridors were also established from Fujairah Terminals and third-party capacity at Khor Fakkan, via bonded customs transit, to Khalifa Port, Jebel Ali Port, and Sharjah.
AD Ports Group delivered a record financial performance in Q2 despite operating through perhaps the most significant challenge in its 20-year history. Drawing on our predominantly landlord port business model, the diversification of trade routes through the UAE East Coast, and our growing international port footprint in Spain, Pakistan, Egypt, and Angola, we successfully mitigated regional disruptions whilst sustaining our profit-enhancing global expansion.Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group
The Group added 400 trucks during the quarter. It increased the frequency of services with Etihad Rail, creating additional options for moving cargo across the country when traditional shipping routes were disrupted.
Air cargo added for food and medicines
AD Ports also introduced air cargo solutions focused particularly on critical commodities including food and pharmaceuticals, using six chartered aircraft to date.
Those operations were supported by more than 54,000 square metres of expanded warehousing and storage capacity, as well as additional refrigerated and dry containers. The Group plans to increase dedicated storage capacity further by the end of 2026.
“Our Q2 performance, given the circumstances, was outstanding, led by steady gains in Economic Cities & Free Zones including proceeds from strategic asset sales, and impressive growth in Maritime & Shipping, which benefited from greater capacity and an elevated rate environment," said Al Shamisi. "Our Logistics business also performed strongly, as the Group rapidly developed alternative efficient overland, air, and logistical solutions to help its regional and global customer base navigate the regional situation and its associated supply chain disruptions.”
Quarterly profit rises 88%
The operational changes came during AD Ports Group’s strongest quarter on record, with revenue rising 47% year on year to Dh7.08 billion in Q2 2026.
EBITDA increased 49% to Dh1.74 billion, while total net profit rose 88% to Dh836 million. Net profit attributable to owners of the company increased by 86% to Dh597 million.
Asset sales contributed Dh650 million to quarterly revenue and Dh294 million to EBITDA, including the sale of warehouses in KEZAD Abu Dhabi.
Maritime & Shipping generated Dh3.82 billion in revenue, up 62% from a year earlier, while EBITDA from the cluster increased 79% to Dh1.03 billion.
The Logistics business also benefited from measures introduced to maintain regional supply chains, with revenue rising 30% to Dh1.47 billion and EBITDA increasing 154% to Dh94 million.
UAE port volumes hit by disruption
The impact of the disruption to the Strait of Hormuz remained evident in the Ports business, where UAE container throughput declined 65% year on year to 573,000 TEUs during the quarter.
UAE bulk and general cargo volumes fell 67% to 3.1 million tonnes, while Ports Cluster revenue declined 17% to Dh609 million and EBITDA fell 23% to Dh234 million.
Container feeder shipping volumes also dropped 11% year on year to 740,000 TEUs.
Average rates on Gulf and Indian Subcontinent services, which represented 30% of quarterly feeder volumes, increased 96% year on year, while Red Sea service rates rose 37%.
AD Ports continues overseas expansion
AD Ports continued expanding internationally during the quarter, announcing its largest acquisition to date with the Dh3.1 billion purchase of Brazilian agri-bulk terminal operator Corredor Logística e Infraestrutura.
The transaction is expected to close at the end of the third quarter of 2026.
The Group also agreed to acquire Germany-based MBS Logistics for an enterprise value of Dh300 million, with completion expected in the fourth quarter.
AD Ports completed the Dh1.1 billion purchase of an additional 30% stake in Global Feeder Shipping on June 23, increasing its ownership to 81%.
Total net debt stood at Dh22.73 billion at the end of June, compared with Dh21.45 billion at the end of March, while net leverage improved to 3.7 times from 3.9 times in the previous quarter.
Operating cash flow reached Dh2.14 billion, up 88% year on year. Free cash flow to the firm was negative Dh1.03 billion after accounting for the GFS stake acquisition, while adjusted free cash flow, excluding that transaction, remained positive at Dh73 million.
