Safeen Feeders, AD Ports Group’s feeder services company, has linked up with Saif Powertec, a listed ports and logistics company in Bangladesh, to boost trade and shipping.
Under the terms of the agreement, the two companies will work together to enable trade and cargo services from Fujairah to Bangladesh over 15 years, AD Ports said in a statement on Friday.
“Our collaboration with Saif Powertec not only introduces a fast and low-cost service for customers’ dry bulk shipping needs, but will also have a tremendous impact on maritime trade across our combined spheres of influence,” said Capt Maktoum Al Houqani, chief executive of the maritime cluster at AD Ports Group.
“Leveraging Safeen Feeders’ expertise as a maritime service provider, as well as its fleet capabilities, Saif is well-positioned to accelerate the trade of dry construction materials between the UAE and Bangladesh, along with other dry cargo goods to key markets across the region and beyond.”
AD Ports Group, which operates ports, industrial cities and free zones in the emirate, established Safeen Feeders in 2020 to improve connectivity between the region’s ports and serve trade in the region.
Safeen Feeders links Abu Dhabi to other ports in the UAE, the Gulf region and the Indian subcontinent.
As part of the latest agreement, Safeen Feeders will provide eight Supramax bulk carriers with a capacity of 55,000 deadweight tonnes to Saif Powertec.
“In addition to boosting trade between the UAE and Bangladesh, the collaboration with Saif Powertec brings a new opportunity to deliver an enhanced cargo service to customers across the Indian subcontinent, South-East Asia as well as other global destinations,” Capt Ammar Al Shaiba, chief executive of Safeen Feeders and acting chief executive of the Ports Operating Company at AD Ports Group, said.
The agreement with Safeen Feeders enhances Saif Powertec’s “capabilities as Bangladesh’s sole terminal operator to facilitate the movement of dry cargo at the international level”, managing director Tarafder Amin said.
The companies will jointly own and operate bulk-shipping services that will promote maritime trade between the Mena region and the Asian subcontinent, AD Ports said.
Other areas of potential collaboration involving Saif Powertec include the leasing of berths and potentially jetties to develop and improve cargo operations, along with the adoption of warehouse storage solutions offered by AD Ports Group.
The scope of the agreement also covers future areas of collaboration to jointly develop and invest in the maritime infrastructure and projects of Bangladesh and the UAE, AD Ports said.
AD Ports Group, which made its debut on the Abu Dhabi Securities Exchange in February, raised Dh4 billion ($1.08bn) from its share sale.
Its portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones within ZonesCorp and the Khalifa Industrial Zone Abu Dhabi.
The company is looking to expand its operations and announced plans to develop one of the region’s largest food-trading and logistics centres at Kizad to boost food security.