AD Ports Group, a prominent player in the shipping and logistics sectors, is set to embrace significant shifts in global trade dynamics. In its 2023 annual report, released on Monday, the company outlines its strategic approach to the post-pandemic shift from “just-in-time” to “just-in-case” strategies. This evolution is being driven by new trade and investment policies, national security considerations, and a trend towards regionalisation and localisation of supply chains.
The report states that AD Ports Group is optimally positioned to leverage these changes, with its diversified port-centric logistics footprint. This places the Group at the forefront of supporting re- and nearshoring of supply chains through its global assets. The company expects these shifts, combined with the rapid digitalisation of the logistics sector, to enhance trade efficiency and strengthen the resilience of supply chains.
2023 saw significant disruptions in the Red Sea, which are anticipated to impact shipping volumes and rates in 2024. These developments underscore the importance of regional feeder services and highlight the strategic positioning of AD Ports Group in navigating the volatile market.
The financial highlights of 2023 for AD Ports Group are notable. The company reported a 112 percent year-on-year revenue growth, reaching Dh11.7 billion. Its strong operational and financial performance also reflected in the EBITDA, which increased by 23 percent year-on-year to Dh2.67 billion, and a net profit of Dh1.4 billion, marking a 6 percent year-on-year increase.
AD Ports Group’s growth strategy is characterized by a risk-aware approach, utilizing stable revenue streams and favorable macroeconomic conditions to drive expansion. This includes operational enhancement of current assets and strategic mergers and acquisitions both domestically and internationally. The Group aims to fortify its presence in Abu Dhabi and the UAE while expanding regionally and establishing a significant global footprint in the logistics and trade services sector.
The Group is also focused on strategic investments in logistics, maritime and shipping, and port assets. These investments are intended to enhance customer relationships, expand the logistics network, and reinforce operations in Abu Dhabi. The aim is to ensure these opportunities align with the Group’s criteria for scale, management quality, and financial attractiveness.
Despite mixed fortunes in the global shipping industry in 2023, AD Ports Group experienced strong performance in certain segments, aided by China’s reopening and a 3% increase in global trade volumes. However, the container market faced challenges, with rates softening due to a gradual normalization of supply chains post-COVID-19 and an increase in vessel fleet supply. The industry, on average, remained 33% above its 10-year trend, with strong performance in the energy shipping and offshore segment, and recovery in bulkers towards the end of the year.
AD Ports Group expanded its international footprint significantly in 2023, especially following the integration of Noatum, a global logistics platform active in 27 countries and a leader in automotive logistics services in Europe. Additionally, port, terminal, maritime, and shipping agreements in Jordan, Egypt, Pakistan, Republic of Congo, Kazakhstan, and Uzbekistan contributed to the Group’s revenue doubling and extended its reach to 46 countries.
Falah Al Ahbabi, chairman of AD Ports Group, and Capt. Mohamed Juma Al Shamisi, managing director and group CEO, emphasized the Group’s transformation into a world-class facilitator of global trade and logistics, aligning with the UAE’s economic diversification objectives. They highlighted the Group’s resilience and strength amid global market uncertainty, and its commitment to delivering value to customers, shareholders, and communities, while continuing to grow dynamically both regionally and internationally in 2024.
