AD Ports signs deal to develop and operate port in Bangladesh
Top officials during the signing ceremony on Thursday.
The MoU was signed by Rear Admiral Mohammad Sohail, Chairman of Chittagong Port Authority, and Ahmed Al Mutawa, Regional CEO, AD Ports Group, in the presence of Abdullah Ali Al Hammoudi, UAE Ambassador to Bangladesh, Khalid Mahmud Chowdhury, MP, Minister of State for Shipping, and Md. Mostafa Kamal, Senior Secretary, Ministry of Shipping – Government of the People’s Republic of Bangladesh.
Rear Admiral Mohammad Sohail, Chairman, Chittagong Port Authority, said, “The Multi-Purpose Port in Chittagong is a priority for the Government of Bangladesh. It will be a game changer for the regional economy in general and Bangladesh economy in particular. We are pleased to collaborate with AD Ports Group on the development of this vital project, leveraging their expertise and capabilities as a global trade and logistics player. We hope that this MoU will pave the way for further cooperation that will attract more foreign direct investments to Bangladesh.”
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “We are excited to explore the development and operation of the Multi-Purpose Port and other ancillary opportunities in Chittagong, the main seaport of Bangladesh, and look forward to leveraging our experience and capabilities to assist our partners in addressing increased trade volumes in one of the fastest growing economies in South-East Asia, guided by the vision of our wise leadership.”
Over 90 per cent of Bangladesh’s international trade is conducted through the ports of Chittagong, furthermore, Bangladesh’s seaports are an integral part of the multimodal network that links the republic to the hinterland, in addition to providing sea access for the landlocked Himalayan countries Nepal, Bhutan and India’s Northeast region.
AD Ports Group announced recently its financial results for the three months ending 31st March 2024, reporting strong operational and financial performance, with revenue more than doubling Year-on-Year (YoY) to Dhs3.89 billion, +22% YoY on a Like-For-Like (LFL) basis after adjusting for the effect of mergers and acquisitions (M&A).
The Group recorded EBITDA of AED1.04 billion in Q1 2024, up 49% year-on-year.
Last month, AD Ports Group entered into a preliminary agreement with the General Company for Ports of Iraq (GCPI).
Under the terms of the agreement, both parties will establish a joint venture to develop Al-Faw Grand Port and its economic zone, as well as any future expansion. Furthermore, the agreement also encompasses the potential investment, management, and operation of ports, economic zones, and related infrastructure in other cities in the Republic of Iraq.
The agreement was signed in the presence of Razzaq Muhaibas Al-Saadawi, Iraq’s Minister of Transport, and Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, by Captain Mohamed Juma Al Shamisi, Managing Director & Group CEO, AD Ports Group, and Dr. Eng. Farhan Muhesen Al Fartosi, Director General of the General Company for Ports of Iraq.
This signing follows a Memorandum of Understanding (MoU) inked by the two parties in September 2021, and the subsequent addendum, signed in August 2023, to intensify cooperation. The venture is set to bring together the expertise of both entities to attract international terminal operators, foster global trade relations, and develop commercial sea corridors, contributing to Iraq’s economic growth.
