AD Ports Group completes Tbilisi Dry Port acquisition with 60% stake
- 15 Aug 2024
AD Ports Group, a leading facilitator of global trade, logistics, and industry, on Thursday announced the completion of the acquisition process of the Tbilisi Dry Port, which sees the Group become the majority owner with a 60% stake.
The state-of-the-art, rail-linked, and custom bonded intermodal logistics hub, in Georgia - scheduled to be operational in October 2024 - further strengthens the Group’s role in connecting Asia and Europe, via the Middle Trade Corridor, linking manufacturing centres in Western Asia to the consumer markets of Eastern Europe, by efficiently leveraging a network of sea and dry ports across Kazakhstan, Azerbaijan, Armenia, Georgia and Turkey.
Abdulaziz Zayed AlShamsi, Regional CEO, AD Ports Group said: “We are delighted with the completion of the Tbilisi Dry Port acquisition. The agreement highlights AD Ports Group’s unwavering commitment towards strengthening global supply chains, and we recognise the growing influence of the Middle Corridor on global trade. We are fully focused on successfully operating this important logistics hub, which enhances connectivity between Western Asia and Eastern Europe, and positions AD Ports Group at the forefront of global trade. This is the latest in a number of strategic international investments by AD Ports Group, in line with our wise leadership’s vision, to advance economic growth, job creation and mutual benefit.”
The new hub is strategically positioned between the Caspian Sea and Black Sea, at the heart of the Middle Corridor, and integrates multiple facilities including a container freight station, warehouses and a car storage park. Serving as a crucial point of entry, exit, and regional transit, it accommodates manufactures, shippers and consignees moving containers, vehicles and various goods for distribution and storage. The project has direct westward railway links to Türkiye and Georgian ports of Poti and Batumi, further connecting European Black Sea ports in Bulgaria and Romania.
The project will be completed in three phases. By the end of the initial phase, the handling capacity is expected to reach 96,500 TEUs, with 10,000 sqm of warehouse and a car storage yard. Upon the completion of phase three, the project will have a handling capacity of 286,000 TEU, 100,000 sqm of warehouse and a significantly expanded car storage yard. Further land plots have already been secured and can be developed as and when needed.
The Middle Corridor is regarded as the shortest trade route between Asia and Europe, covering approximately 7,000 km and requiring a journey of 10 to 15 days. The existing Northern Corridor covers about 10,000 km overland, requiring 15 to 20 days, while the Southern Ocean Route spans approximately 20,000 km, requiring a sea voyage of 45-60 days. The Middle Corridor is expected to serve considerable growth in container volumes, which has the potential to reach 1.9 million TEUs by 2040.
Established in 2006, AD Ports Group today serves as one of the world’s premier facilitators of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade.
Operating several clusters including Digital, Economic Cities & Free Zones, Logistics, Maritime & Shipping, and Ports, AD Ports Group’s portfolio comprises 28 terminals, with a presence in over 50 countries, and more than 550 square kilometres of economic zones within KEZAD Group, the largest integrated trade, logistics, and industrial business grouping in the Middle East.
AD Ports Group is rated A+ by S&P and A+ Outlook Stable by Fitch.
Meanwhile, AD Ports Group Delivers an Impressive 56% YoY Increase in EBITDA and 42% Growth in Total Net Profit in Q2 2024.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “Our strong second-quarter results provide further compelling proof of the success of AD Ports Group’s targeted, value-enhancing international expansion, which is being driven not only by acquisitions, but also by solid organic growth across our core businesses. Looking ahead to the remainder of 2024 and beyond, we are on course for the profitable internationalisation of the Group. As we continue along this exciting journey, we remain inspired and guided by our wise leaders’ vision of a future marked by global connectivity, sustainability and innovative thinking to guide us through the current geopolitical headwinds.’’
Martin Aarup, Group Chief Financial Officer, AD Ports Group, said: “Our strong Q2 2024 financial results reflect the effects of recent accretive acquisitions, and the positive organic growth of our five-pillar business portfolio, which was led during this period by our Ports, Logistics and Digital clusters. The Group recorded EBITDA of Dhs 1.07 billion in Q2 2024, up 56% year-on-year, and 8% on a like-for-like basis excl. the base effect of M&A. As our group expands and grows more international, we are committed to steering AD Ports Group profitably through macroeconomic turbulence whilst leveraging future growth opportunities as they arise.”
WAM