AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, is planning to invest about $600 million to expand its operations in Kazakhstan.
The company, which has so far invested about $175 million into projects in the Central Asian nation, plans to develop a multipurpose terminal to boost trade and grow its fleet in the Caspian Sea, it said in a statement on Tuesday.
These come as part of a number of agreements signed between public and private sector companies from the UAE and Kazakhstan during an investment forum in the capital Astana.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, was at the forum, after meeting Kazakhstan's President Kassym-Jomart Tokayev on Monday as part of an official visit to the country.
The event also sought to explore investment opportunities and strengthen efforts to increase mutual investments across key economic sectors, supporting shared goals for sustainable economic growth, the company said.
The agreements are part of AD Ports Group's long-term plans to develop the Middle Corridor, or the Trans-Caspian International Transport Route, which is "the shortest, least environmentally impactful way to transport goods from China to Europe", Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group, said in the statement.
"The UAE motivates us to be pioneers in the development of new, emerging sustainable trade corridors ... the Middle Corridor and our investments reflect Kazakhstan’s growing role as an emerging export leader."
The expansion in Kazakhstan follows several deals AD Ports Group has completed in the past year.
Those include acquiring 100 per cent of APM Terminals Castellon in Spain, as well as buying a 60 per cent stake in Dubai Technologies, a trade and transport solutions developer in Dubai.
AD Ports Group also acquired 60 per cent stake in Tbilisi Dry Port, a key logistics terminal in Georgia, and secured 81 per cent ownership in the joint venture that signed a 20-year concession to operate and upgrade the existing Luanda Multipurpose Port Terminal in Angola.
The Abu Dhabi company also completed the restructuring and integration of Spanish logistics platform Noatum Group’s assets into AD Ports Group’s existing business verticals to boost its portfolio.
Established in 2006, AD Ports Group's portfolio includes 33 terminals, with a presence in more than 50 countries, and economic zones spanning more than 550 square kilometres.
In February, AD Ports Group reported that its fourth-quarter net profit leapt five fold to Dh383 million ($104.2 million).
