AD Ports Group has announced the launch of a joint venture with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses.
It has also signed a Memorandum of Understanding (MoU) to develop a food trading hub in Uzbekistan.
AD Port’s joint venture with SEG aims to develop logistics infrastructure and services that will enable Uzbek and the company’s refined products to reach global markets at competitive costs.
The Abu Dhabi-based major has also announced opening the Group’s office in Uzbekistan, its first in the Central Asia region.
The office will oversee the projects announced within the agreements signed in Tashkent.
Under the joint venture agreement, the two companies will create a partnership for logistics and freight forwarding services, including intermodal freight forwarding, road, rail and air transport services.
The joint venture will also undertake development of inland ports and container depots, warehousing and other logistics infrastructure, contract logistics and customs clearance.
The venture will deploy new technology and specialised processes to address the challenges caused by Uzbekistan’s double-landlocked geographical location, surrounded by five additional landlocked nations.
The MoU envisages development of an integrated food storage and distribution hub to enhance Uzbekistan’s food trade across global markets and drive Central Asian food security.
Under the MoU, the two companies will collaborate on opportunities relating to food storage, transportation, and security and will explore related end-to-end solutions for the project.
Modelled on the ‘Regional Food Hub – Abu Dhabi’ currently under development in KIZAD, AD Ports Group will share their expertise and provide best practice guidance toward the new project.
The signing ceremony followed the UAE and Uzbekistan sides discussing strengthening aspects of economic cooperation, including new sectors that would contribute to increasing the volume of trade exchange between the two countries.
The signing ceremony was attended by, among others, Dr. Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade, USE, and Ilkhom Makhkamov, minister of transport of Uzbekistan.
Dr. Thani Al Zeyoudi said the volume of trade exchange between the UAE and Uzbekistan has grown by 22 percent to reach $486 million during the past year, Wam reported.
The UAE and Uzbekistan signed a bilateral MoU to promote exchange of knowledge, expertise and successful experiences in June 2022.
The expanded strategic partnership covers 27 sectors, including the financial sector, education sector, economy, government leadership, food security and agriculture, ports and customs.
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