AD Ports Group achieves historic milestones in 2021
Abu Dhabi, UAE – AD Ports Group emerged from a challenging 2020, when the global shipping industry was disrupted by COVID-19, to build a strong trajectory of growth throughout 2021, achieving a series of historic milestones and expanding its footprint in the region and beyond.
AD Ports Group closed 2021 with the signing of a number of strategic agreements with the Aqaba Development Corporation for the development of tourism, logistics, transport and marine-related enhancement projects in Aqaba, Jordan.
The strategic partnerships concern the development of Marsa Zayed, a cruise terminal, and the development of an advanced digital Port Community System, along with exploring the development and modernization of a multipurpose port and King Hussein International Airport.
The group reported a solid operational and financial performance throughout the year and this is apparent in its financial performance for the first nine months of 2021. The Group achieved revenue growth of 22% year-on-year to AED 2.791 billion (USD 760 million) compared with AED 2.295 billion (USD 625 million) in the same period last year, driven by volume growth, business diversification and new partnerships.
Container throughput grew to 2.47 million TEUs (twenty-foot equivalent units) in the first nine months of 2021, up from 2.42 million TEUs in the same period in 2020, despite the ongoing supply constraints faced in the global shipping and container market.
AD Ports Group received global interest in its successful issuance of a USD 1 billion bond and subsequent listing on the Abu Dhabi Securities Exchange (ADX) and London Stock Exchange (LSE). Announced in the first half of 2021, the issuance at the time was more than 4.5 times oversubscribed at its peak.
The year 2021 also saw the completion of an extensive rebranding exercise that not only resulted in a new brand name but also a strategic reorganization of the Group’s portfolio.
AD Ports Group also signed several breakthrough partnerships to accelerate trade and the development of industry in the UAE and beyond, including working closely with Abu Dhabi National Oil Company (ADNOC) to enhance safety across Abu Dhabi’s waterways and collaboration with France-based CMA CGM Group to invest AED 570 million in a new terminal at Khalifa Port.
The Group fully supported the resumption of cruise activities in the UAE and remains committed to developing the UAE’s cruise industry to serve as a key contributing factor to developing a diversified and sustainable economy.
AD Ports Group’s Offshore Support and Logistics Services Company (OFCO – Offshore International) acquired seven support vessels to extend the Group’s capabilities in providing highly efficient and cost-effective onshore and offshore integrated logistics solutions and subsea services. With various assets restructured under the umbrella of five clusters —Digital, Industrial Cities & Free Zone (IC&FZ), Logistics, Maritime, and Ports — AD Ports Group is now well-placed to realize a fully integrated portfolio of world-class ports, industrial zones, logistics, maritime, and digital solutions across the entire value chain.
“AD Ports Group entered 2021 with a clear vision for strategic growth and to take Abu Dhabi and the UAE’s economic prowess to new heights. In line with the leadership’s long-term vision, we have spent the past year forging considered partnerships and realizing ground-breaking projects across our organization and assets that have greatly extended our influence on regional trade and industry,” said Falah Mohammad Al Ahbabi, Chairman, AD Ports Group.
“In the new year, the ongoing development of our maritime, industrial, and logistics capabilities will enable us to meet the future demand of a digitally-driven market and non-oil economy.”
Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “While the past year has been one of recovery for many around the world, we are proud of our efforts in evolving the UAE’s trade, logistics and industrial landscape and contributing to the renewed growth of the economy. Throughout the year, we have worked to strengthen and diversify our portfolio while expanding our services in key markets to bolster the growth of commerce across the region and further our mission to reimagine world trade.”