AD Ports Group Begins Major Logistics Operations In Luanda, Angola With Significant Investment

AD Ports Group has embarked on a significant venture in Luanda, Angola, by managing and developing a multipurpose terminal and logistics business. This initiative, in collaboration with local partners Unicargas and Multiparques, marks a strategic expansion into sub-Saharan Africa. The operations commenced at Noatum Ports Luanda Terminal, the largest port in Angola, which handles a substantial portion of the country's cargo.

The Port of Luanda is crucial for regional trade, providing maritime access to landlocked countries like the Democratic Republic of the Congo and Zambia. AD Ports Group holds an 81% stake in the terminal venture with Unicargas and Multiparques and a 90% stake in the logistics venture with Unicargas. These partnerships aim to enhance Angola's logistical capabilities significantly.

Under a 20-year concession agreement signed with the Luanda Port Authority in April 2024, AD Ports Group committed to investing approximately USD 250 million by 2026. This investment will modernise the terminal and develop Noatum Unicargas Logistics, offering integrated logistics services locally and internationally. The investment could rise to USD 380 million based on market demand.

Mohamed Eidha Al Menhali, Regional CEO of AD Ports Group, stated, "With the planned upgrade of Luanda’s multipurpose port terminal, and establishment of an integrated logistics and freight forwarding business leveraging our Group’s global network and reach, AD Ports Group is positioned to capture the growth in Angola’s container volumes, which are forecast to rise on average by 3.3% annually over the next decade."

The terminal will be upgraded to handle general cargo, containers, and Ro-Ro operations. It will be unique in Luanda with a depth of 16 metres alongside, accommodating Super Post Panamax vessels up to 14,000 TEUs. The terminal area will be re-engineered for efficient container handling using advanced equipment and IT systems.

New container handling equipment is expected by Q3 2026 to boost capacity from 25,000 TEUs to 350,000 TEUs. Contracts were awarded to Shanghai Zhenhua Heavy Industries Co. Ltd for three Super Post-Panamax STS cranes and eight hybrid RTG cranes. These cranes are designed for efficiency and reduced emissions.

Strategic Partnerships and Future Prospects

Ricardo Daniel Sandão Queirós Viegas de Abreu, Minister of Transport for Angola, remarked on this partnership's significance: "The Port of Luanda is the main maritime gateway to Angola... Our strategic partnership with AD Ports Group... will transform the Port of Luanda into an efficient... facility that transforms our logistical capabilities..."

The Angolan government supports this partnership fully, ensuring that investments exceeding USD 250 million result in sustainable infrastructure development. This collaboration aims to create numerous jobs while enhancing training opportunities for locals.

Commitment to Safety and Operational Excellence

The transfer of business assets was seamless without disrupting terminal operations. AD Ports Group prioritises health and safety improvements at the terminal through a comprehensive Health, Safety, and Environment programme aimed at managing workplace hazards effectively.

Noatum Unicargas Logistics plans significant investments in new trucks and systems integrated with Noatum Logistics' global network. This integration aims to strengthen Angola's international market access while fostering economic growth driven by investments.

This venture aligns with AD Ports Group's broader strategy across Africa over recent years. With over USD 800 million announced for maritime investments in Egypt, Congo Republic, Tanzania, and Angola since entering these markets post-2023 framework agreements.

With inputs from WAM