AD Ports signs deal with China’s Shandong Port Group to set up tire hub

By Arya M Nair, Intern Reporter
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Abu Dhabi Ports
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Abu Dhabi Ports (AD Ports) Group, the region’s leading logistics, industry, and trade facilitator, has signed an agreement with China-based Shandong Port Group (SPG) to establish a tire hub at the Khalifa Industrial Zone Abu Dhabi (KIZAD) for tire storage and distribution.

The agreement supports the UAE’s efforts to diversify its economy, attract foreign direct investment, and strengthen Abu Dhabi’s position as global trade, logistics, and manufacturing hub, as part of the country’s industrialization strategy.

The tire hub leverages the strength of AD Ports Group as a key enabler of trade and logistics by offering SPG integrated services from its clusters.

AD Ports Group will provide space for the upcoming 150,000 square meter facility at 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.

Mohamed Juma Al Shamisi
Mohamed Juma Al Shamisi
Group CEO
Abu Dhabi Ports

“The agreement with SPG 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 a greater level of Chinese industrial interest and investment in Abu Dhabi.”

AD Ports Group acts as a host of strategic opportunities for leading Chinese businesses seeking to expand their footprint in the Middle East. By importing tires as bulk cargo and placing them into containers for onward shipment, the agreement offers a novel approach to address existing and future challenges related to container shortages within the region.

Mr. Li Fengli, General Manager of SPG, said that “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.”

Related: AD Ports, Jordan’s ADC strike major development agreements


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