AD Ports Group to launch Pulp & Paper products hub with Germany’s AGL

By Arya M Nair, Official Reporter
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AD Ports
Mr. Carsten Hellmers & Mr. Saif Al Mazrouei during agreement signing

AD Ports Group has signed a strategic partnership agreement with Germany-based Alexander Global Logistics (AGL) to establish a leading hub for the development and distribution of pulp and paper products across the Middle East.

As per the agreement, the two parties will work closely to launch the transshipment hub which will operate from Khalifa Port, AD Ports Group’s flagship port and a vital link connecting East and West trade.

The new partnership marks the latest in a series of developments at Khalifa Port aimed at expanding the deep water port’s capabilities to support a wide variety of industries.

The two parties will also collaborate to launch a new $154 million terminal in Khalifa Port that will be operated by a new joint venture between CMA CGM, a French container transportation and shipping company, with 70 percent ownership and AD Ports Group with 30 percent.

Saif Al Mazrouei
Saif Al Mazrouei
CEO – Ports Cluster
AD Ports Group

“Today’s announcement marks a key milestone in Khalifa Port’s ongoing development to support the UAE’s industrialization efforts, and is also the first step in what we see as Abu Dhabi’s transformation into a regional leader for pulp and paper products. Leveraging our long-standing expertise as the emirate’s leading facilitator of trade, logistics, and industry, as well as Abu Dhabi’s central location linking global trade and its multi-modal connectivity solutions over air, sea, land, and future rail, our new joint venture with Alexander Global Logistics GmbH will meet the evolving needs of this fast-growing industry.”

The hub aims to address the changing needs of the global supply chain, both for pulp and paper producers and customers. In the first stage, expected to be completed by Q3 2022, a total of 20,000 sqm of quayside warehousing will be established in Khalifa Port. From there, all kinds of forestry products will be distributed into the Gulf region and beyond.

Mr. Carsten Hellmers, CEO of AGL, said that “We are very excited about this project, as we have the strongest belief that the combination of expertise and knowledge of the industry brought into this Strategic Partnership Agreement by Alexander Global Logistics plus the unique location, abilities and resources provided by AD Ports Group will soon allow the Pulp and Paper industry to have a world-class terminal to serve customers in the Abu Dhabi hinterland and reach other destinations taking full advantage of the hub.”

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