The first MoU has been agreed with the Vietnam Maritime Administration (VINAMARINE), a government authority managed by the Ministry of Transport of Vietnam. Potentially, it paves the way for what ADP described as “a dynamic partnership focused on bolstering commercial opportunities across various sectors, including ports, logistics, digital solutions, economic cities, free zones, maritime and shipping”.

The MoU was signed in the presence of Pham Minh Chinh, Prime Minister of Vietnam and H.E Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, by Mohamed Eidha Al Menhali, Regional CEO of AD Ports Group and Mr. Hoang Hong Giang, Deputy Administrator of Vietnam Maritime Administration.

Under the terms of the agreement, both entities will focus on key areas of cooperation, including the development and management of dry ports and inland container depots in addition to advanced logistics operations and digital solutions to enhance the global maritime and shipping sectors. Meanwhile, both parties have agreed to explore further collaborative projects in developing and operating economic cities and free zones.

A joint working group is to be established to oversee the implementation of the project, focusing on the development of initiatives, investments, and opportunities in the agreed areas of cooperation.

“This MoU with VINAMARINE marks another milestone in our journey towards international collaboration, while also supporting the UAE’s wise leadership’s efforts to expand the network of trade partners and build new partnerships with global strategic markets,” explained Mohamed Eidha Al Menhali, regional CEO, AD Ports Group. “Our combined efforts will not only enhance the maritime and logistics sectors in both countries but also create avenues for sustainable growth and development in line with both nations’ economic diversification goals. We are committed to sharing our expertise and resources to unlock new opportunities, fostering a mutual path of prosperity.”

Vietnam is one of the UAE’s largest trading partners in the ASEAN bloc while the UAE is Vietnam’s biggest trading partner in the Middle East. In 2022, non-oil foreign trade between the two countries amassed approximately AED29B (US$7.9B) and was up 10.5% on the previous year.

The other MoU has been signed with Kazakhstan Temir Zholy JSC (Kazakhstan Railways – KTZ) and it involves creating a joint venture company to improve rail connectivity, maritime shipping services, port operations in the Central Asia State. It also covers investments in and implementation of digital services and processes. The new joint venture that will be set up will be majority controlled by AD Ports (51%) with KTZ owning 49% of the equity.

Kazakhstan is a critical link in the middle corridor rail services linking China with Europe where the growth potential is huge, but where infrastructural improvements are needed and administrative and documentary processes enhanced if this is to be realised.

Yerlan Koishibayev deputy CEO for logistics at KTZ explained. “The new joint venture will focus on expanding port infrastructure on the Caspian Sea, creating trade hubs and bringing advance digital technologies. Cooperation between Kazakhstan Railways and AD Ports Group will contribute to the development of transport and transit potential of Kazakhstan, increase export directions and create a market for Kazakhstani goods in the Arabian Gulf countries.”

Abdulaziz Zayed Al-Shamsi, regional CEO of AD Ports Group, agreed. “Our joint venture with Kazakhstan Railways has the potential to not only strengthen maritime connectivity between the Middle East and Central Asia, but also opens up new trade routes, making it easier and more efficient to move goods across these two regions,” he said. “We see this enhanced connectivity leading to increased trade volumes for the benefit of the global maritime industry. Additionally, by leveraging our combined strengths, we are set to create a thriving regional economy, which will have a positive impact on the global maritime industry through increased demand for shipping and logistics services.”