AD Ports Group has announced the launch of a joint venture with SEG, one of the largest oil and gas companies in Uzbekistan, to open new logistics and freight businesses and signed a Memorandum of Understanding to develop a food trading hub in Uzbekistan.
At a signing ceremony in Tashkent, the two companies signed the key agreements to support the collaboration, which aims to develop logistics infrastructure and services that will enable Uzbek and SEG’s refined products to reach global markets at competitive costs.
Under the joint venture agreement, the two companies will create a partnership for logistics and freight forwarding services, including intermodal freight forwarding, road, rail and air transport services, the development of inland ports and container depots, warehousing and other logistics infrastructure, contract logistics and customs clearance.
The venture will deploy new technology and specialised processes to address the challenges caused by Uzbekistan’s double-landlocked geographical location, surrounded by five additional landlocked nations.
A Memorandum of Understanding was also signed to support the development of an integrated food storage and distribution hub to enhance Uzbekistan’s food trade across global markets and drive Central Asian food security. Under the MoU, the two companies will collaborate on opportunities relating to food storage, transportation, and security and will explore related end-to-end solutions for the project.
Based upon the ‘Regional Food Hub – Abu Dhabi’ currently under development in KIZAD, AD Ports Group will share their expertise and provide best practice guidance toward the new project.
A session of talks was also held between the UAE and Uzbekistan sides to discuss strengthening aspects of economic cooperation, including new sectors that would contribute to increasing the volume of trade exchange between the two countries, in the presence of Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade; Mohamed Al Shorafa; along with Uzbek Prime Minister Abdulla Aripov Republic of Uzbekistan and several ministers and officials.
The Regional Food Hub – Abu Dhabi will collaborate with Rungis International Market, the wholesale fresh food market, to bring buyers, sellers, logistics players, consolidators, and distributors together to expand access to fresh food and boost exports for Uzbekistan.
The hub is planned to be operated near Samarkand International Airport by a subsidiary of SEG – MARAKAND LOGAIR.
Al Zeyoudi said that the volume of trade exchange between the UAE and Uzbekistan has grown by 22 percent to reach $486 million during the past year.
He added that the AD Ports Group’s signing of two strategic agreements to establish logistics, freight and food trading infrastructure in Uzbekistan aligns with the wise leadership’s directives aimed at diversifying the country’s economic relations and working to find new markets for national products, in light of the continuous growth of trade exchange between the two friendly countries.