The largest publicly traded courier firm in the Middle East, Aramex, and Abu Dhabi Ports Group have agreed to form a joint venture to serve the goods forwarding sector.
Aramex will control the remaining shares of the new non-vessel operating common carrier (NVOCC) company, according to a statement made by the company to the Dubai Financial Market, where its shares are traded. AD Ports Group will own 51% of the NVOCC company.
The NVOCC business will handle their ocean-bound container cargo and offer "tailored solutions to all goods forwarding industry players."
With a short-term aim of 10,000 containers, it will be crucial in "enhancing and developing shipping connectivity across the GCC, Indian, and East and West African markets," according to Aramex.
The JV partners intend to increase the number of containers throughout the medium to long term.
“The partnership is a perfect illustration of AD Ports Group’s efforts to leverage its synergistic capabilities by building supply chain density along key trade routes and better [use] its assets in its capital-intensive businesses,” AD Ports said, in a separate bourse filing to the Abu Dhabi Securities Exchange, where it is listed.
“It also builds on recent efforts to provide key maritime services to leading companies globally by reinforcing its network effect”.
Since its establishment in 2006, AD Ports has expanded its activities internationally and has recently inked numerous collaboration agreements with businesses along the whole transport and logistics value chain. AD Ports is the owner and operator of industrial cities, free zones, and ten ports in the UAE.
The business and KazMorTransFlot (KMTF), a division of Kazakh National Oil Company (KazMunayGas), inked a shareholders agreement in December to establish a joint venture to provide services, including offshore support and crude oil transport boats in the Caspian and Black seas.