AD Ports collaborates with Chinese Group to establish region’s first tyre hub

AD Ports Group has signed an agreement with China-based Shandong Port Group, to establish a tyre hub at Kizad for the storage and distribution of tyres in Abu Dhabi.

AD Ports Group will provide space for an upcoming 150,000sqm facility in Kizad under its Industrial Cities and 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.

AD Ports Group and SPG signed two agreements in the presence of Captain Mohamed Juma Al Shamisi, group CEO, AD Ports Group and Li Fengli, GM of Shandong Port Group.

The agreement for the establishment of the tyre storage and distribution hub was signed by Abdullah Al Hameli, head of Industrial Cities and Free Zone Cluster, and Zhang Quancheng，chairman of Shandong Port Overseas Development Group.

Al Shamisi said: “The agreement with Shandong Port Group 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.

.@ADPortsGroup has signed an agreement with China-based Shandong Port Group to establish a tyre storage and distribution hub at Khalifa Industrial Zone Abu Dhabi. The agreement emphasises #AbuDhabi’s position as a leading centre for trade, logistics and industry. pic.twitter.com/GQmAnu7Qlx

— مكتب أبوظبي الإعلامي (@admediaoffice) December 30, 2021

“Intensifying economic partnership through ports and economic free zones is a strategic imperative in our nation’s efforts towards economic diversification. We welcome the cooperation with SPG as it reinforces the UAE’s crucial role as a key partner in China’s BRI and our long-standing commitment to creating opportunities for businesses to prosper.”

Fengli said: “The establishment of SPG in August 2019 ushered in a new era in the reform and development of Shandong province’s coastal port integration. Since its inception, we have focused on accelerating the construction of a world-class ports economy.

“SPG actively implements the Belt and Road Initiative (BRI) and promotes trade cooperation to boost economic growth. We look forward to working together with AD Ports Group, utilising Shandong Port’s comprehensive logistics advantages and Kizad’s advanced infrastructure, industry-leading service capabilities and unparalleled experience to promote the trade and shipping links”.

By importing tyres as bulk cargo and placing them into containers for onward shipment, the agreement provides a novel approach to tackling current and future challenges related to container shortage within the region.