Oriented on making people closer

AD Ports Group (ADX: ADPORTS), a leading international provider of integrated trade, transport, and logistics solutions, announced on July 9th the strategic expansion of its presence in Central Asia. This expansion began with the official launch of GulfLink Ltd., a joint logistics venture, in Abu Dhabi, UAE, and Astana, Kazakhstan. This enterprise was established in collaboration with KTZ Express, the freight division of Kazakhstan Railways.

GulfLink, with AD Ports Group holding a 51% stake and KTZ Express (the multimodal transport and logistics subsidiary of Kazakhstan Railways – "Kazakhstan Temir Zholy" or KTZ) holding 49%, is poised to transform the logistics landscape of Central Asia. AD Ports Group is actively expanding its presence in regional countries such as Kazakhstan, Uzbekistan, and Georgia.

Strategic objectives and management commentary

Abdulaziz Zayed Al Shamsi, Regional General Manager of AD Ports Group, emphasized the significance of GulfLink's launch in Kazakhstan, noting it as one of Central Asia's fastest-growing economies. He stated, "We are pleased to announce the commencement of operations for our joint venture, GulfLink, with KTZ Express. Kazakhstan is a key link in our strategy to modernize the "Middle Corridor" route through Central Asia, transforming it into a major East-West commercial trade artery that will connect consumers and producers in Asia and Europe. AD Ports Group is committed to deepening its extensive involvement in Kazakhstan and the region to stimulate economic growth through global interconnectivity, benefiting the people of Kazakhstan and Central Asia".

Through GulfLink, AD Ports Group and KTZ Express will offer new freight transportation opportunities across Central Asia and globally, extending through Pakistan, Turkey, the Arabian Gulf, and the Indian Subcontinent. GulfLink's primary focus will be on developing international transport corridors and strengthening Kazakhstan's integration into the global logistics system by creating more resilient and efficient supply chains.

Damir Kozhakhmetov, CEO and Chairman of KTZ Express, also expressed enthusiasm: "We welcome this opportunity to shape the future of global logistics in Kazakhstan and Central Asia with GulfLink. This bold and valuable joint venture with AD Ports Group will provide a new level of unique end-to-end connectivity for Kazakhstan regionally and globally. It will leverage AD Ports Group's global resources and Kazakhstan Railways' regional presence to enhance transport infrastructure and expand trade flows."

Role of KTZ and Kazakhstan's advantages

With an extensive network of 16,000 km of railway lines, KTZ is one of the largest railways and a strategically important state-owned enterprise in Central Asia. In Kazakhstan, where approximately 70% of cargo is transported by rail, the state-owned KTZ provides critical logistical access across all major corridors connecting Central Asia with Europe, China, Turkey, and the Caucasus region.

Kamal Huseynov, CEO of GulfLink, highlighted the new enterprise's pivotal role: "GulfLink will play an important role in ensuring critical interconnectivity between Kazakhstan, the Central Asian region, and the wider world. This will be achieved through enhanced connectivity and the combined infrastructure resources of AD Ports Group and KTZ Express, leveraging Kazakhstan's central geographical position. We will provide added value for customers through our partnerships, the logistics resources of our shareholders, and our commitment to efficiency, innovation, seamless supply chains, and optimized trade".

As a primary transit hub for Central Asia, GulfLink is ideally positioned to capitalize on Kazakhstan's geographical advantage as a logistics center for multimodal interconnectivity, providing unparalleled 360-degree connectivity by rail, road, air, and sea to all destinations in Europe, Asia, and beyond. Transport services via GulfLink will operate along various routes in all directions, following both established and new, emerging trade corridors.

Development of the Middle Corridor and AD Ports Group investments

Furthermore, GulfLink will play a key role in supporting AD Ports Group's Central Asia strategy to revitalize and develop the Middle Corridor (the shortest East-West route between producers in China and Europe) into a major trade supply artery. This will foster regional growth by improving connectivity to the global network.

AD Ports Group is a major investor in the development of the Middle Corridor, with announced investment commitments of USD 775 million in Kazakhstan alone. Over the past three years, the Group has expanded shipping operations with local Kazakh partner Kazmortransflot in the Black and Caspian Seas and plans to launch a logistics and food trading business in Uzbekistan. The Group is also jointly investing with local partners in Kazakhstan in the construction of a grain terminal and has preliminary plans for the development of a multi-purpose terminal at the Port of Kuryk. The Group's evolving network of routes in Central Asia connects the Group's ports and maritime assets in Turkey and Pakistan.

ORIENT

Photo: adportsgroup.com