Fertiglobe, the strategic partnership between ADNOC and OCI Global, announced that it has signed a non-binding MoU with AD Ports Group.
he collaboration aims to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.
As explained, Fertiglobe aims to reduce its greenhouse gas (GHG) footprint, enhance operational efficiency, and further automate its logistical activities by exploring opportunities to leverage AD Ports Group’s state-of-the-art cargo handling and storage infrastructure and their proximity to Fertiglobe’s facilities and shipping destinations.
Our strategically located production facilities benefit from direct access to international ports and distribution hubs, allowing us to easily access major end-markets and regions with high demand. Even as this MoU focuses on Egypt and the UAE, there is significant potential to expand our partnership to additional geographies, as well as to the shipping and storage of green ammonia in line with our commitment to deliver more sustainable products to the world.”
..said Ahmed El-Hoshy, CEO of Fertiglobe.
In addition, Fertiglobe seeks to further optimize its logistics cost structure, a key component of its recently introduced cost optimization program, targeting $50 million in recurring annualized cost savings by the end of 2024.
As two homegrown champions, AD Ports Group and Fertiglobe are embarking on this strategic collaboration that holds immense potential. We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.
Fertiglobe and AD Ports Group will also explore potential collaboration opportunities in other geographies as well as the development of supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.