AD Ports Group and Vale partner to develop eco-friendly mega hubs for the steel industry in Abu Dhabi.
AD Ports Group, a leading maritime and logistics operator, has signed a Memorandum of Understanding (MoU) with Vale SA, the world’s largest producer of iron ore and nickel, to establish a state-of-the-art mega hub in Abu Dhabi. The partnership aims to facilitate the production of low-carbon products for the steelmaking industry, serving both local and seaborne markets while significantly reducing CO2 emissions.
Under the agreement, Kezad will allocate land and related services for the mega hub, which will include the development and management of a cutting-edge handling facility at Khalifa Port. This facility will have the capacity to handle Valemax vessels, capable of carrying up to 50 million tonnes of cargo per year.
AD Ports Group will also take charge of constructing and overseeing the conveyor infrastructure required to transport iron ore and finished products between Khalifa Port and Kezad. Additionally, the two companies will explore potential collaborations in the marketing and sale of various byproducts derived from the manufacturing process, both within the UAE and the broader region.
The collaboration extends to maritime operations as well, with both AD Ports Group and Vale SA seeking opportunities for managing and operating very large ore carriers (VLOCs), along with exploring other potential areas of partnership.
Captain Mohamed Juma Al Shamisi, the Managing Director and CEO of AD Ports Group, expressed his enthusiasm about the agreement, stating, “The UAE is dedicated not only to reducing carbon emissions but also to supporting global environmental efforts. This signing with Vale reflects our commitment to the sustainable objectives outlined by the visionary leadership of the UAE. Growth and sustainability must go hand in hand, and our collaboration with Vale marks a significant step in our contribution towards achieving the UAE’s Net Zero 2050 strategic initiative.”
This groundbreaking partnership between AD Ports Group and Vale SA exemplifies the shared commitment of both companies to drive positive change in the steel industry. By leveraging Vale’s expertise as a global leader in iron ore and nickel production, combined with AD Ports Group’s unrivaled logistics capabilities and commitment to sustainability, the mega hub in Abu Dhabi is poised to become a prominent center for the production of low-carbon steel products.
The establishment of this mega hub aligns with the UAE’s ambitious environmental goals and its commitment to achieving carbon neutrality by 2050. It is a testament to the nation’s dedication to pursuing sustainable development and playing a leading role in shaping a greener future for the steel industry.
Vale SA, renowned as the world’s largest producer of iron ore and nickel, brings its extensive experience and expertise to the partnership. With a strong focus on sustainability, Vale is committed to reducing CO2 emissions and is recognized as one of the largest logistics operators in Brazil. This collaboration will leverage the strengths of both companies to create a cutting-edge hub that will cater to the growing demand for eco-friendly steel products, catering to both local and seaborne markets.
The agreement encompasses several key components that will ensure the success of this ambitious project. Kezad, an integral player in Abu Dhabi’s industrial development, will allocate land and provide related services for the mega hub. This will include the establishment and management of a state-of-the-art handling facility at Khalifa Port. This facility will be equipped to accommodate the enormous Valemax vessels, which have a remarkable handling capacity of up to 50 million tonnes of cargo annually.
The collaboration between AD Ports Group and Vale SA sets a remarkable precedent for international partnerships focused on mitigating climate change and promoting eco-friendly industrial practices. As the project progresses, it is expected to bring significant economic and environmental benefits to Abu Dhabi and contribute to the global transition towards a low-carbon economy.
