AD Ports Group pulp and paper transhipment hub deal

Photo: AD Ports Group Saif Al Mazrouei ceo Ports Cluster AD Ports Group and Carsten Hellmers ceo AGL sign the agreement (Credit AD Ports Group).jpg
Abu Dhabi’s AD Ports Group has signed an agreement with independent logistics service provider Alexander Global Logistics (AGL), for the distribution of pulp and paper products in the Middle East.

The Middle East port and German logistics provider will establish a transhipment hub dedicated to handling the products, to operate from AD Ports' Khalifa Port.

“The hub aims to address the changing needs of the global supply chain, both for pulp and paper producers and customers,” Saif Al Mazrouei, CEO of Ports Cluster, AD Ports Group, said.

“In the first stage, expected to be completed by the third quarter of 2022, a total of 20,000 square metres of quayside warehousing will be established in Khalifa Port. From there, all kinds of forestry products will be distributed into the Gulf region and beyond.”

AD Ports believes the UAE’s multi-modal connectivity over air, sea, land, and future rail, will allow it to become a regional freight services leader for the unique segment, after a spate of deals supporting various industries. In 2021, AD Ports Group signed a 50-year land lease agreement with Egypt's Anchorage Investments for the development of a grain storage and processing plant at Khalifa Port.

“The unique location, abilities and resources provided by AD Ports Group will soon allow the pulp and paper industry to have a world-class terminal to serve customers in the Abu Dhabi hinterland and reach other destinations taking full advantage of the hub,” Carsten Hellmers, AGL CEO, said.