Mina Zayed sees 27% leap in container shipments



Abu Dhabi boosted its status as an emerging shipping hub in the first half of the year as its gateway port unveiled a double-digit jump in shipments, bucking expectations of region-wide falls in turnover. The number of containers handled at Mina Zayed increased by 27 per cent between January and June to 223,281, Abu Dhabi Terminals said. The biggest gain was in June, when container shipments were up by 58 per cent compared to the same month last year, to 44,390 TEUs (twenty-foot equivalent units). "Consumers don't seem to be feeling any effect from the global recession, with shipments rising in the past two months," said Dilker CP, the business development manager at Expolanka Freight, a freight forwarder. Although imported consumer goods are on the rise, car shipments fell in Abu Dhabi, in line with global trends. There were 19,809 vehicles shipped into Mina Zayed in the first half of the year, half the number shipped in a year ago. The decline accelerated in the second quarter, with a year-on-year fall of 81 per cent in April, 83 per cent in May and 86 per cent last month, Abu Dhabi Terminals said. With slowing sales and rising inventories, Abu Dhabi dealerships have scaled back on imports, particularly in the second quarter. But overall, the rise in the number of containers - which can carry everything from air-conditioning units to foodstuffs - going through Mina Zayed contrasts with estimates for the Middle East port industry, which is expected to see a 7 per cent fall in shipments this year. Globally, the economic downturn will have an even bigger impact, with a 10.3 per cent drop in shipments expected, according to Drewry Shipping Consultants of the UK. Neil Dekker, an analyst at Drewry, said last week: "The container sector is looking at a US$20 billion black hole." The growth comes after APL, the world's seventh-largest shipping line, included Abu Dhabi on its express service linking South Asia, the Gulf and the Red Sea earlier in the year. APL said it added the main-line service to respond to a rising need for imported construction supplies, household appliances and agricultural products such as alfalfa for local dairies. With Abu Dhabi's young property sector still seeing growth, building materials shipments climbed 38 per cent in the first six months to 2.6 million metric tonnes, as progress continued with developments on the mainland and on islands adjoining Abu Dhabi Island. In the cargo category, shipments of general items such as steel and timber fell by 8 per cent in the first half, to 1.21 million tonnes. Bulk cargo such as -cement and its precursor, clinker, was up 141 per cent to 1.45 million tonnes. Freight forwarders said the biggest share of building materials was being delivered to Yas Island, site of the Formula One Grand Prix in November, while deliveries of materials to Reem Island had slowed recently. Abu Dhabi Terminals is owned by Mubadala Development, the Government's investment arm, and managed by DP World. Its main port at Mina Zayed will be phased out from 2011 as shipments move to the new Khalifa port in Taweelah. The number of vessels calling into the port fell by 6 per cent, as shippers began operating larger ships into Abu Dhabi. igale@thenational.ae

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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Turkish Ladies

Various artists, Sony Music Turkey 

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Engine: Dual 180kW and 300kW front and rear motors

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Engine 3.6-litre V6

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Stars: Dr Ghassan Abu-Sittah

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Engine: 3.0-litre 6-cyl turbo

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U19 WORLD CUP, WEST INDIES

UAE group fixtures (all in St Kitts)

  • Saturday 15 January: UAE beat Canada by 49 runs 
  • Thursday 20 January: v England 
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UAE squad:

Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles
Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly,
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Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

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