New cranes, equipment and operating procedures will keep Abu Dhabi's port running 24 hours a day.
New cranes, equipment and operating procedures will keep Abu Dhabi's port running 24 hours a day.

Abu Dhabi port to go 24-hours



Around-the-clock customs services and new cranes and other industrial vehicles costing Dh20 million (US$5.4m) are being added at Abu Dhabi's Mina Zayed Port to relieve the strain of surging demand. The port is at overcapacity, leading to delays of up to several weeks for customers to receive cargo. Container vessels have had to wait for as long as two weeks before being allowed to berth. Importers are also abusing a two-week grace period for free yard storage, leading to a glut of 34,000 containers awaiting pickup that has further strained facilities, according to officials.

Short-term measures are being implemented to alleviate the bottleneck until the port begins a phased shutdown in 2011, with activities moving to the Khalifa Port and Industrial Zone under construction in Taweelah near the Dubai border. Customs officials say they are tackling the problem at Mina Zayed. The agency already has stepped up efforts to clear cargo and increased its hours of operation from 12 to 17 a day. Next week, customs will become a 24-hour operation, said Saeed Ahmad al Muhairi, the general manager of the General Administration of Customs under the Department of Finance.

"We are doing this because there is a lot of movement [of vessels travelling] from Dubai to Abu Dhabi and it is getting really busy. We have to be open 24 hours," he said. Millions of dirhams worth of equipment will also be added at the terminals, which are managed by DP World. During next year, Mina Zayed will receive 11 rubber-tyre gantry cranes, which move containers between stacks and will enable the port to maximise its yard space.

Other container-moving equipment such as top-loaders and terminal tractors were also to be added at the port next year, said Mohammed al Mannaei, the chief executive of Abu Dhabi Terminals. "We are also trying to force the customer to clear their cargo to give us additional space." These improvements will increase Mina Zayed's container handling capacity by 43 per cent, to one million containers per year.

Although a relatively small port for the region, its congestion problems are shared with many of its neighbours. Like many Gulf economies, Abu Dhabi's growing population heavily relies on imported consumer goods, while demand also has surged for heavy construction equipment to operate on major residential projects such as those on Yas and Saadiyat islands. Yesterday, DP World said it had overcome congestion at Jebel Ali port that began this summer. It accomplished this by adding yard capacity, helping shippers to better manage berthing times, and raising storage fees to force traders to move containers out.

"We would like to thank our customers for their patience and understanding," said Mohammed al Muallem, a senior vice president and managing director at DP World. igale@thenational.ae

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EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Sector: Software Technology / Artificial Intelligence

Initial investment: $500,000

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Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up 

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