The world’s largest seaborne exporter of urea and ammonia combined, Fertiglobe, a strategic partnership between ADNOC and OCI Global, has signed a non-binding Memorandum of Understanding (MOU) with AD Ports Group to investigate supply chain and logistics opportunities for storing and shipping urea and ammonia at ports in Egypt and the United Arab Emirates.
As Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, improves operational efficiency, and further automates its logistical activities, the two businesses will look into opportunities to leverage AD Ports Group’s handling and storage infrastructure.
Ahmed El-Hoshy, CEO of Fertiglobe, commented, “We are pleased to partner with AD Ports Group, a UAE national champion and a global leader in maritime trade and logistics.
“Through this MoU we will identify compelling opportunities across our logistics and supply chain management requirements, enabling us to bolster our ability to store and ship urea and ammonia from Egypt and further optimize our logistics’ cost structure.
“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.
“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.”
A key element of Fertiglobe’s recently introduced cost optimisation programme, which aims to save $50 million in recurring annualised costs by the end of 2024, is the further optimisation of its logistics cost structure. Fertiglobe will do this by leveraging AD Ports Group’s strong supply chain capabilities and sustainable modes of inland transportation.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented, “In line with the UAE’s wise Leadership’s vision for economic diversification, this partnership cements AD Ports Group’s commitment to driving broader global collaboration.
“This along with supply chain development for alternative fuels, which contributes to achieving the Group’s sustainability objectives. 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.
“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.”
Fertiglobe and AD Ports Group will explore potential collaboration opportunities in other geographies as well as the development of supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.
