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EGA and Abu Dhabi Ports sign MoU for more efficient shipping

TLME News Service

Emirates Global Aluminium, the largest industrial company outside oil and gas, has signed a Memorandum of Understanding with Abu Dhabi Ports, to work together to develop opportunities for Abu Dhabi Ports to upgrade ports, logistics infrastructure and services abroad used by EGA to load raw materials destined for the UAE.

The agreement could lead to new international business opportunities for Abu Dhabi Ports, enable more efficient shipping for EGA, and spur economic growth around the ports by creating opportunities for other trade.

The agreement was signed at EGA’s headquarters at Al Taweelah in Khalifa Industrial Zone Abu Dhabi by Captain Mohamed Juma Al Shamisi, Chief Executive Officer of Abu Dhabi Ports, and Abdulla Kalban, Managing Director and Chief Executive Officer of EGA.

In December EGA signed a long-term port facility agreement with Abu Dhabi Ports to import bauxite for EGA’s Al Taweelah alumina refinery at Khalifa Port using the world’s largest bulk cargo ships, known as Capesize vessels.

The agreement, and the security of demand it creates, is enabling Abu Dhabi Ports to invest to develop the port to become the first in the Gulf capable of directly handling these massive ships, reducing EGA’s shipping costs and opening opportunities for other trade. The dredging will deepen the channel to 18.5 metres and basin to 18.0 metres basis zero tide. EGA plans to use large dry bulk ships to import raw materials without the need to transfer all or some of the cargo to smaller vessels outside the port, reducing long-term shipping costs and improving environmental performance.

EGA shipped approximately 6 million tonnes of bulk raw materials such as alumina, coke and pitch from some 20 ports worldwide last year. Bottlenecks at ports that can reduce the efficiency of shipping can range from shallow channels that only allow smaller vessels to berth, to manual rather than automatic loading, to limited rail capacity reaching the port itself.

Abu Dhabi Ports is the operator of a container quay that EGA has built at Kamsar in Guinea. EGA is using the quay to unload materials and equipment for the construction of a bauxite mine. Once construction is complete, the container quay will be opened to other trade. EGA’s site is the biggest industrial facility at KIZAD and covers an area five times the size of Al Marayah Island in Abu Dhabi. EGA also operates an aluminium smelter at Jebel Ali in Dubai.

Transport and Logistics ME