AD Ports Group, the region’s premier facilitator of logistics, industry, and trade, has signed an agreement with China-based Shandong Port Group, to establish a Tyre Hub at KIZAD for the storage and distribution of tyres.

The agreement between AD Ports Group and Shandong Port Group (SPG) comes as UAE’s efforts gain momentum on the country’s 50th anniversary to drive economic diversification, attracts foreign direct investment, and consolidate Abu Dhabi’s position as a leading trade, logistics, and manufacturing base, in line with the nation’s industrialisation strategy.

The Tyre Hub leverages the strength of AD Ports Group as a key enabler of trade and logistics by offering Shandong Port Group integrated services from its clusters. AD Ports Group will provide space for an upcoming 150,000 sqm facility in KIZAD under its Industrial Cities & Free Zone Cluster. This will include warehouse management, logistics, distribution, and re-export services offered by MICCO under the AD Ports Group’s Logistics Cluster, and SAFEEN Feeders, under the Maritime Cluster.

Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group, said: “The agreement with Shandong Port Group is a momentous step that highlights the unique logistics offering of Abu Dhabi and the significance of the synergies created by the AD Ports Group for its various clusters.

“Under the vision of the leadership, the UAE is emerging as a principal facilitator of global trade and a fast-developing industrial destination that complements China’s Belt and Road Initiative (BRI). We are pleased to see greater level of Chinese industrial interest and investment in Abu Dhabi.

“Intensifying economic partnership through ports and economic free zones is a strategic imperative in our nation’s efforts towards economic diversification. We welcome the cooperation with SPG as it reinforces the UAE’s crucial role as a key partner in China’s BRI and our long-standing commitment to creating opportunities for businesses to prosper.”

Li Fengli, General Manager of Shandong Port Group, said: “We are delighted with the agreement, and we are confident that our synergy with the AD Ports Group will yield opportunities for the port and logistics industry. The outlook remains positive as consumer demand triggers major transformations across the global supply chain.

 “The establishment of SPG in August 2019 ushered in a new era in the reform and development of Shandong province's coastal port integration. Since its inception, we have focused on accelerating the construction of a world-class ports economy.

“SPG actively implements the Belt and Road Initiative (BRI) and promotes trade cooperation to boost economic growth. We look forward to working together with AD Ports Group, utilising Shandong Port’s comprehensive logistics advantages and KIZAD’s advanced infrastructure, industry-leading service capabilities and unparalleled experience to promote the trade and shipping links”.

AD Ports Group and SPG signed two agreements in the presence of Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group and Li Fengli, GM of Shandong Port Group.

The agreement for the establishment of the tyre storage and distribution hub was signed by Abdullah Al Hameli, Head of Industrial Cities & Free Zone Cluster, and Zhang Quancheng,Chairman of Shandong Port Overseas Development Group.

Commenting on the agreement, Abdullah al Hameli, Head of Industrial Cities & Free Zone cluster, AD Ports Group, said: “KIZAD serves as a catalyst for businesses and aims to increase the competitiveness of Abu Dhabi’s economic zones across the region. We are keen to continue playing a meaningful role in adding to Abu Dhabi’s economic diversification by attracting global concepts such as the region’s first Tyre Hub to Abu Dhabi.”

Capt. Ammar Al Shaiba, CEO of the Ports Operating Company & Managing Director of Zayed Port and Jia Funing, Deputy General Manager of Shandong Port Group also signed a ‘Sister Ports’ agreement to forge a friendship ports partnership and strengthen business cooperation. The signing coincided with the acquisition and arrival of the first vessel procured as part of the agreement.

Saif Al Mazrouei, Head of Ports Cluster, AD Ports Group, said: “As the premier industrial and economic zones operator in the region, AD Ports Group provides a host of strategic opportunities for leading Chinese businesses seeking to expand their footprint in the Middle East. We welcome the signing of an agreement with Shandong Port Group, which will enhance information and technological exchanges for advancement in the areas of port and shipping industry.

“We remain committed to developing vital trade infrastructure, boosting industrial investment flows to the UAE, and helping accelerate Abu Dhabi’s economic growth and industrialisation.”

By importing tyres as bulk cargo and placing them into containers for onward shipment, the agreement provides a novel approach to tackling current and future challenges related to container shortage within the region.