Emirates Global Aluminium, one of the UAE's largest non-oil industrial conglomerates, has signed an agreement with global ports operator Gulftainer to boost aluminium exports through the UAE’s eastern coast.
The deal with Gulftainer is part of EGA’s push to further strengthen its outbound logistics network to continue delivering aluminium – the largest made-in-the-UAE export after oil and gas – to its global clientele, EGA said on Wednesday.
Under the agreement, EGA will ship up to 250,000 tonnes of aluminium from the UAE’s East Coast in the first year. It aims to boost exports to 300,000 tonnes in the second year and continue increasing the flow of shipments in subsequent years.
“EGA is the biggest ‘premium aluminium’ producer in the world, and our customers in more than 50 countries need our metal,” said Abdulnasser Bin Kalban, chief executive of EGA.
“We have already made considerable progress diversifying our outbound logistics to ensure reliable deliveries. Today’s agreement with Gulftainer is another important step forward.”
Gulftainer, which operates the Khor Fakkan Container Terminal on the UAE’s East Coast, as well as port facilities in Sharjah, Saudi Arabia, Iraq and the US, will further develop its port infrastructure to accommodate EGA’s export requirement.
In July, Gulftainer chief executive Farid Belbouab said the company will be able to absorb up to 90 per cent of the UAE's total container demand if the Strait of Hormuz is blocked again.
The company plans to nearly triple capacity at its Khor Fakkan terminal. It will initially rise from 3.5 million twenty-foot equivalent units (TEUs) to 5 million within three months. Overall, Gulftainer plans to scale capacity in phases – first to seven million and then to 10 million – over 24, and then 36 months.
Earlier in July, Gulftainer announced $2 billion worth of investments across Khor Fakkan to develop new berth and yard equipment, as well as the development of Al Dhaid and Sajaa dry ports.
The agreement with EGA “goes far beyond logistics – it is about building resilience for UAE trade” Mr Belbouab said on Wednesday.
“By enabling EGA’s increasing logistics demand through the UAE’s East Coast, we are providing a strategic, efficient and reliable gateway to global markets.”
EGA is the latest among UAE companies to announce plans to diversify their export routes away from the Strait of Hormuz, where shipping operations remain disrupted amid Iranian attacks on commercial vessels.
In May, Abu Dhabi chemicals maker Borouge and AD Ports Group signed an agreement to evaluate setting up an alternative export hub at Fujairah.
The move, the parties said at the time, was aimed at boosting the export resilience of Borouge, allowing the company to bypass the strait.
