RIYADH: The UAE’s Abu Dhabi Ports Group has successfully refinanced and more than doubled its revolving credit facility from $1 billion to $2.13 billion. The move extends the facility’s maturity from 2026 to 2028, with an option for further extension until 2030.

This expansion is aimed at optimizing financing costs by improving interest margins and securing long-term liquidity. The facility, which is denominated in both Emirati dirhams and US dollars, has garnered significant interest from a diverse group of local, regional, European, Asian, and international banks. As a result, the facility was oversubscribed by more than 2.5 times.

The bank syndicate backing AD Ports Group has expanded from nine to 18 financial institutions, reflecting growing confidence in the company’s financial health and strategic direction.

“The overwhelming interest in our new RCF and the resulting oversubscription underscore the confidence that the banking community has in AD Ports Group’s robust financial health and strategic direction,” said Martin Aarup, chief financial officer of AD Ports Group.

“This refinancing initiative will optimize our financing costs, strengthen liquidity, and provide enhanced flexibility to support the company’s growth plans in the short and medium term. Additionally, the extended maturity of the facility will enable better financial planning.”

AD Ports Group holds strong investment-grade ratings of “AA-” with a stable outlook from Fitch, and A1 with a stable outlook from Moody’s.

In mid-December, AD Ports Group appointed Egypt’s Hassan Allam Construction, a subsidiary of Hassan Allam Holding, to develop the infrastructure for the Noatum Ports-Safaga Terminal in Egypt.

This terminal, located on the Red Sea coast, will be the first internationally operated port facility in Upper Egypt. Spanning approximately 810,000 sq. meters, the terminal will handle an annual capacity of 450,000 twenty-foot equivalent units of container cargo, 5 million tonnes of dry bulk and general cargo, and 1 million tonnes of liquid bulk.

The Safaga Terminal is a key part of AD Ports Group’s broader strategy to invest in major infrastructure projects that drive economic growth and strengthen its international market position.

In the same month, AD Ports Group also inaugurated the CMA Terminals Khalifa Port, a new $843 million (3.1 billion dirham) container terminal. The launch ceremony was led by Sheikh Khaled bin Mohamed bin Zayed Al-Nahyan, crown prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council.

The terminal is operated by a joint venture between CMA CGM Group’s subsidiary CMA Terminals, which holds a 70 percent stake, and AD Ports Group, with a 30 percent share.

During the ceremony, a memorandum of understanding was also signed to enhance maritime training in the UAE and the Gulf Cooperation Council. The CMA CGM Group will support cadet placements and training through the Abu Dhabi Maritime Academy.

RIYADH: Trade facilitation specialist Folk Maritime Services has secured a strategic agreement with Shanghai CIMC Yangshan Logistics Equipment to purchase 5,600 advanced, fully recyclable shipping containers, revealed the company’s CEO.  

The move is part of the Public Investment Fund-owned company’s broader strategy to promote sustainability and drive technological innovation in the Middle East's maritime industry. 

Poul Hestbaek emphasized the company’s role as a leader in the regional liner and feeder sector, focusing on sustainability and the implementation of advanced technologies. “These containers have a capacity of 6,700 TEUs (twenty-foot equivalent units) and are 100 percent recyclable,” Hestbaek told Arab News in an interview. 

“We have only chosen materials that, once the containers have gone through their lifecycle, can be fully recycled and put back into the production line. This is a significant sustainability element,” he added. 

The containers, designed to last 15 to 20 years, are part of Folk Maritime’s broader efforts to reduce its environmental footprint. Hestbaek said, “By designing containers with full recyclability in mind, we’re closing the loop on waste and contributing to a more sustainable shipping industry.”  

Innovative Tracking Technology 

In addition to sustainability, Folk Maritime is investing in cutting-edge tracking technology to enhance customer experience. The company is installing sensors in its containers that will allow customers to monitor their cargo in real-time.  

“We are installing trackers so that our customers can, at any given time, follow their container’s location and monitor their cargo,” Hestbaek said.  

These trackers include sensors that provide real-time updates and alerts if the container’s door is opened or closed, ensuring that customers can detect potential compromises to their shipments. 

“This feature is relatively new technology. While it may be used in some very big global trade, it’s the first of its kind in the Middle East area. We are the first to offer that, and we believe it will be a big help for our customers,” Hestbaek said. 

Expanding regional connectivity 

Folk Maritime is expanding its services to improve regional trade connectivity and connect key ports, in line with Saudi Arabia’s Vision 2030.

“Our first services connected Jeddah to Egypt and Jordan. We also opened the first weekly direct connection between Jeddah and NEOM, along with a sea connection to Yanbu, which offers safer transportation of heavy containers and reduces road wear and tear,” Hestbaek said. 

Additionally, Folk Maritime has launched services in Port Sudan, further strengthening trade relations between Saudi Arabia and the African nation, and is facilitating cargo transport from India to Jeddah and surrounding countries.  

India-Middle East trade corridor 

With trade between India and the Middle East expanding rapidly, Folk Maritime is positioning itself to capitalize on this growing corridor.  

“Our service connects India directly to Dammam, offering faster and more reliable transit times. Unlike competitors, we skip ports like Jebel Ali and Abu Dhabi to ensure quicker delivery for Saudi customers,” Hestbaek said. 

India, increasingly a major supplier of goods to the Middle East, has seen Saudi Arabia account for half of the region’s consumption, further underscoring the strategic importance of this new service. 

Commitment to sustainability 

Sustainability remains a cornerstone of Folk Maritime’s strategy. The company operates fuel-efficient vessels and optimizes services to run at lower, more cost-effective speeds, reducing both fuel consumption and carbon emissions. 

“Our vessels are specifically designed to operate efficiently at lower speeds, which significantly reduces our environmental impact,” Hestbaek said.  

Looking ahead, Folk Maritime is exploring carbon capture technology to further reduce its environmental footprint. “If we can find a way to capture the carbon footprint of fossil fuel use, it will be a game changer, especially for this part of the world,” Hestbaek emphasized. 

Driving Vision 2030 goals 

As part of Saudi Arabia’s Vision 2030, Folk Maritime is focused on transforming the Kingdom into a global logistics hub. By connecting key ports and streamlining trade flows, the company aims to facilitate greater regional trade while supporting the country’s broader economic objectives. 

“Saudi Arabia generates a significant amount of the region’s cargo. Our goal is to serve this growing market and align with Vision 2030’s objectives to create seamless trade networks across the region,” Hestbaek concluded. 

Folk Maritime’s focus on sustainability, technological innovation, and expanding regional connectivity positions it as a key player in reshaping Middle East, East Africa, and India trade routes, setting a new benchmark for the shipping industry.