Dubai: The AD Ports Group has made another breakthrough in its international push, by setting up a JV in Uzbekistan. Its partner in the Central Asian nation will be SEG Enera Group, one of the largest ‘multi-sectoral holding companies’ there.
The joint venture - ADL-Ulanish - will provide ‘end-to-end’ logistics services across Uzbekistan. AD Ports Group will bring its finesse in global supply chain logistics and advanced technology to the new company with the goal of ‘addressing some of the logistics challenges faced by enterprises in Uzbekistan, which is a double-landlocked nation, surrounded by five additional landlocked nations’.
The region is deemed a vital global land logistics hub, whose combined GDP is forecast to grow from 3.9 per cent this year to 4.3 per cent in 2024.
Farook Al Zeer, Chairman of Logistics Cluster, AD Ports Group, said: “There is significant demand for freight forwarding and warehousing services in Uzbekistan, which has seen major economic expansion in the recent years, driven by important reforms and modernisation efforts. We are positioned to make a transformational impact across key industries, facilitated by advanced digital services and supported by a world-class team.”
Role for regional partner
The SEG Enera Group will contribute regional expertise and industrial assets, including warehousing, alongside rail and trucking fleets. In addition, the company will provide a range of digital solutions to ‘boost service integration and efficiency’, as well as bring expertise in food security and supply chains to support the creation of a food hub in Uzbekistan.
Timofey Smirnov, CEO of SEG Enera Group, said: “Uzbekistan is a major producer of key exports, including oil, natural gas, gold, copper, cotton, food and other strategic commodities and products needed by the global economy.
“Further development of our logistics sector will create an exciting range of economic opportunities to support our nation’s growing role as a hub for trade between East Asia and Europe.”
In June 2022, the UAE and Uzbekistan signed an MoU to support cooperation in 27 sectors.
AD Ports - bolstered by record profits in 2022 - had been expanding its international presence, through direct investments or through a series of strategic deals.