AD Ports Group's Strategic Noatum Buyout Catapults It Into Top 20 Global Port Operators

AD Ports Group has ascended to the 19th position among the world's largest container port operators, thanks to its acquisition of Noatum in 2023. This ranking by Drewry, a UK-based firm, underscores AD Ports Group's expanding influence in the industry.

The Drewry Port Equity Index now includes AD Ports Group for the first time. This index is a benchmark global stock index comprising shares of 10 major publicly traded port operators. The inclusion highlights the growing importance of AD Ports Group in global trade and logistics.

AD Ports Group currently manages 33 terminals across eight countries, including the UAE, Spain, and Pakistan. Of these, 27 are operational, with new terminals planned in the UAE and under concession agreements in Congo, Egypt, and Angola. The acquisition of Noatum added 16 terminals in Spain to its portfolio.

In June 2024, East Africa Gateway Limited—a joint venture led by AD Ports Group and Adani—acquired a 95% stake in Tanzania International Container Terminal Services (TICTS). TICTS operates berths 8-11 at Dar es Salaam ports in Tanzania. These developments aim to increase AD Ports Group's terminal capacity by over 60% to 14.5 million TEUs within five years.

In 2023, AD Ports Group reported a container throughput of 4.91 million Twenty-foot Equivalent Units (TEUs), marking a 13% year-on-year increase. The total volume handled at its UAE terminals rose by 6% to reach 4.6 million TEUs. Contributions from Noatum accounted for six months of this growth following its consolidation into the group.

The Ports Cluster saw significant growth this year as well. In Q2 2024, revenue from this cluster increased by 83% year-on-year and by 13% on a like-for-like basis, reaching Dh563 million.

AD Ports Group is focusing on multipurpose terminals to explore new markets primarily in the Indian Subcontinent, Red Sea, Mediterranean, South Asia, and Africa. Agreements have been signed to develop and operate multipurpose terminals in Safaga (Egypt), Pointe Noire (Congo), and Luanda (Angola).

Preliminary agreements are also in place for developing multipurpose terminals at East Port Said and Sokhna in Egypt and Chittagong in Bangladesh. These initiatives are part of AD Ports' strategy to expand its global footprint.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, stated: "The inclusion of AD Ports Group in the Drewry Top 20 League Table of container port operators confirms the growing international significance of our Group as we pursue our value-driven expansion in trade, maritime, logistics and industrial development."

Saif Al Mazrouei, CEO of the Ports Cluster at AD Ports Group, added: "The new Drewry global ports operator ranking is an acknowledgement of the growing clout of AD Ports Group on a global stage."

Diversified Operations

Active in over 50 countries across various regions including the Middle East and Europe, AD Ports Group is a diversified entity contributing significantly to non-oil economic growth in the UAE. The group operates through five integrated clusters: Ports; Maritime & Shipping; Economic Cities & Free Zones; Logistics; and Digital business clusters.

The acquisition of Noatum also transformed AD Ports' Logistics business into Noatum Logistics worldwide. This move tripled revenue for the Logistics Cluster to Dh1.94 billion in 2023 from AED 532 million in 2022.

In H1 2024 alone, the Logistics Cluster generated Dh2.2 billion in revenue, making it the second-largest contributor after Maritime & Shipping Cluster. This showcases how strategic acquisitions have bolstered overall financial performance.

The group's management of four berths on Karachi Port's East Wharf under a long-term concession agreement further contributed to this growth trajectory.