The non-binding MoU covers the two parties exploring logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.
The two companies will explore opportunities to leverage AD Ports Group’s cargo handling and storage infrastructure as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency and further automates its logistical activities, said Fertiglobe.
Fertiglobe noted that by capitalizing on AD Ports Group’s supply chain capabilities and sustainable modes of inland transportation, it seeks to further optimize its logistics’ cost structure targeting $50 million in annual cost savings by the end of 2024.
Ahmed El-Hoshy, CEO of Fertiglobe, commented: “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.
The agreement could expand activities beyond the Middle East as well as the development of supply chain solutions for green ammonia, and a hydrogen carrier.
“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,” he added.
Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, stated: “We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.”