Fertiglobe and AD Ports Collaborate on Investigating Ammonia Storage and Shipping

Fertiglobe and AD Ports Collaborate on Investigating Ammonia Storage and Shipping

Fertiglobe and AD Ports Collaborate on Investigating Ammonia Storage and Shipping

  • 20-Sep-2023 7:38 PM
  • Journalist: S. Jayavikraman

In a Memorandum of Understanding (MoU), which is not legally binding but signifies a commitment to cooperation, Fertiglobe and AD Ports Group have joined forces to explore a range of logistics and supply chain opportunities. Specifically, the collaboration aims to address the storage and shipping of urea and ammonia at key ports located in Egypt and the United Arab Emirates (UAE). This strategic partnership marks a significant step towards optimizing operations, reducing environmental impact, and enhancing global market service.

The primary objective of this collaborative effort is to leverage the existing cargo handling and storage infrastructure of AD Ports Group for the benefit of Fertiglobe. Fertiglobe is keen to enhance its capabilities in the storage and shipping of urea and ammonia, all while advancing its sustainability goals. These objectives encompass not only bolstering operational efficiency but also mitigating greenhouse gas (GHG) emissions and introducing greater automation into its logistics processes.

Fertiglobe recognizes the potential for optimization in its logistics cost structure through this partnership. The ambitious target is to achieve annual cost savings of $50 million by the conclusion of 2024.

Ahmed El-Hoshy, the CEO of Fertiglobe, underscores the strategic significance of their production facilities, which are strategically positioned to offer direct access to international ports and distribution hubs. This strategic positioning empowers Fertiglobe to effectively serve major end markets and regions characterized by substantial demand.

Moreover, this collaboration is not confined to the Middle East; its scope extends to exploring innovative supply chain solutions for green ammonia. Additionally, it provides an avenue to explore opportunities related to a hydrogen carrier, reinforcing Fertiglobe's commitment to delivering sustainable products on a global scale.

El-Hoshy underscores the significance of this MoU as an opportunity to expand their collaborative efforts to regions beyond Egypt and the UAE. It also opens doors to potential collaboration in the storage and shipping of green ammonia, aligning with Fertiglobe's overarching mission to offer more sustainable products to a global audience.

Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, expresses his satisfaction with this collaboration. He emphasizes how AD Ports Group's integrated portfolio, extensive infrastructure, and profound expertise in supply chain management are well-positioned to empower Fertiglobe in its efforts to enhance capabilities in urea and ammonia storage and shipping.

This partnership is a testament to the shared commitment of Fertiglobe and AD Ports Group to explore innovative and sustainable solutions within the realm of ammonia storage and shipping. The focus remains on optimizing operations, reducing environmental impact, and providing efficient services to global markets.



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