Abu Dhabi port regulator and operator AD Ports Group has formed a joint venture with Kazakhstan Temir Zholy (KTZ or Kazakhstan Railways) to enhance both rail connectivity and maritime operations across Central Asia.
AD Ports will manage a 51% stake while KTZ will manage a 49% of the new joint venture.
The joint venture will focus on collaboration across maritime electronic systems, vessel operations, and port and trade development alongside rail offering expansions.
Abdulaziz al-Shamsi, Regional CEO of AD Ports Group said: “We see this enhanced connectivity leading to increased trade volumes for the benefit of the global maritime industry.
“Additionally, by leveraging our combined strengths, we are set to create a thriving regional economy, which will have a positive impact on the global maritime industry through increased demand for shipping and logistics services.”
According to AD Ports, the partnership is set to enhance trade flows and maritime efficiency, boosting Central Asia’s economic growth.
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The Kazakh side of the deal explained the importance of the Caspian Sea to the deal.
Yerlan Koishibayev, deputy CEO for Logistics of Kazakhstan Temir Zholy (Kazakhstan Railways), added: “The new joint venture will focus on expanding port infrastructure on the Caspian Sea, creating trade hubs and bringing advanced digital technologies.
“Cooperation between Kazakhstan Railways and AD Ports Group will contribute to the development of transport and transit potential of Kazakhstan, increase export directions and create a market for Kazakhstani goods in the Arabian Gulf countries.”
This follows a recent partnership between AD Ports Group and Kazakhstan. This witnessed the partnership between AD Ports and Kazakh national shipping company KazMorTransFlot with the aim of expanding Kazakhstan’s oil operations.