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AD Ports acquires Noatum, a global integrated logistics platform

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AD Ports acquires Noatum, a global integrated logistics platform. Image: AD Ports
AD Ports acquires Noatum, a global integrated logistics platform. Image: AD Ports
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AD Ports Group announced that it has acquired Noatum, a global integrated logistics platform with a presence in 26 countries and LTM revenue and EBITDA of AED 6.91 billion and AED 555 million, respectively.

The total purchase consideration for 100% ownership amounts to AED 2.5 billion, implying an LTM EV/EBITDA of 4.6x. This value and earnings accretive acquisition, which significantly broadens AD Ports Group’s global footprint and positions it among the leading logistics and freight forwarding companies in the world, will be fully funded through a new acquisition loan.

Recognising Noatum’s high growth potential and capacity to scale, AD Ports Group intends to create a market-leading international logistics brand, merging its existing logistics business with Noatum to create a significant presence in the region and enhancing services across the company’s global footprint. Moving forward, Noatum will lead AD Ports Group’s Logistics Cluster, consolidating the company’s existing logistics offering into its operations.

This will be AD Ports Group’s third major international acquisition in 2022, following the acquisition of a 70 percent equity stake in Transmar and TCI in September, and the announcement in November of its acquisition of an 80% equity stake in Dubai-based Global Feeder Shipping.

Noatum, whose origins date back to 1963, operates in three business areas – Logistics, Maritime, and Port Terminals – with market-leading positions in Spain and Turkey and a significant presence in the US, UK, China, and Southeast Asia.

Noatum’s global Logistics business specialises in comprehensive freight management, project logistics, contract logistics, international supply chain management, customs, and e-solutions, with offices and a wide network of agents around the world.

In particular, Noatum has advanced capacities in heavy lift logistics, which AD Ports Group aims to bring to the region.

The company’s Terminals operations include 15 Ro-Ro, dry bulk, general cargo and container terminals in Spain, supported by highly professional management, while its Maritime division provides shipping agency services, including outsourcing and ancillary services, and cargo services, such as liquid bulk, breakbulk cargo, reefer and dry cargo.

Despite its geographical diversification, the majority of Noatum’s revenues are EUR and USD denominated.

The company, which employs more than 2,600 professionals, provides tailored multi-modal transport solutions, comprehensive logistics services, and advanced port operations across its key markets, and aligns well with AD Ports Group’s integrated business model.

In addition, the company has specialised automotive, project cargo, and port logistics divisions and offers comprehensive supply chain solutions in the oil & gas, renewable energies, food, industrial manufacturing, pharma and healthcare, and retail industries with customised solutions for clients.

Some of the revenue and costs synergies of the acquisition include joint purchasing, stronger relationships with shipping lines to attract them to the group’s terminals, expansion of the agency business by leveraging Noatum’s Maritime business, integration of corporate services and functions, transfer of best practices, and best-in-class technology.

Subject to regulatory approvals, the transaction is expected to close in H1 2023. As part of the transaction, Noatum’s management is locked in for a period of three years to ensure smooth integration.

H.E. Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, said: “Under the direction of our wise leadership, AD Ports Group continues to extend our global footprint through value-adding acquisitions and partnerships with market leaders. This ambitious acquisition brings a major global logistics platform into the AD Ports Group family, significantly enhancing our global connectivity and extending the range of maritime, logistics and ports solutions we can offer as we continue to pursue a determined strategy for growth. This acquisition makes AD Ports Group one of the most significant global players in the finished vehicle logistics, which we intend to expand in our home and core markets.”

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “We thank the leadership of the UAE for their guidance and support for this historic acquisition, which is set to be one of the most significant in the industry this year. Bringing Noatum into our integrated network of businesses will add scale and new layers of expertise, supporting both our global ambitions and our contribution to economic diversification within the UAE. Noatum operates an asset-light model with a high cash conversion rate and will make an immediate contribution to our financials, at the same time as positioning us for international expansion. We will leverage the acquisition of Noatum to build a strong international logistics brand with deep roots in this region.”

Rothschild & Co acted as the financial advisor and A&O as the legal advisor while Bain & Co completed the commercial due diligence and PwC the financial and tax due diligence for AD Ports Group in this transaction.

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Food Logistics

MSC announced a new direct service, called NWC – WAF service

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MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
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MSC announced a new direct service, called NWC – WAF service, connecting Dakar and North Europe, and providing the best transit times on the market.

The new NWC – WAF service, dedicated to the export of reefer commodities from Senegal, will connect the country’s fruit, vegetable and frozen fish suppliers directly to key commercial partners across Europe including France, Belgium and United Kingdom in one week. MSC will connect Senegal with key European gateways such as Antwerp in 7 days, London in 9 days and Le Havre in 11 days.

MSC operates one of the world’s largest and most advanced reefer container fleets. We provide exporters with expertise at every step of the cold supply chain including dedicated reefer experts guaranteeing regular and frequent monitoring of shipments, from the receipt of the loaded container to its final destination.

The fleet deployed for this service will be ready to meet the demand for reefers throughout the season to transport fruit, vegetable and other fresh and frozen products from Senegal to consumers across Northern Europe with an average of 600 plugs available onboard each vessel.

Starting immediately, the service will rotate as follows: Antwerp– London Gateway – Le Havre – Tema – Lomé – Tincan/Lagos – Abidjan – Dakar – Antwerp

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Break Bulk

Klaveness Digital to launch an emissions monitoring solution in CargoValue

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Klaveness Digital to launch an emissions monitoring solution in CargoValue. Image: Pixabay
Klaveness Digital to launch an emissions monitoring solution in CargoValue. Image: Pixabay
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In less than 12 months, Klaveness Digital together with ZeroLab have commercialized an emissions monitoring solution that is now live in CargoValue. The monitoring solution, titled ‘Emissions’, is now measuring a significant share of emissions from global dry bulk shipping, empowering its customers to continuously track and manage their carbon footprint.

“Arming our industrial customers with crucial insight like this means they can spend their time actively looking for emissions hotspots and opportunities to reduce their footprint,” said Klaveness Digital Managing Director Aleksander Stensby.

Mitigating carbon risk in the supply chain

Monitoring of emissions was just recently added as a service to the CargoValue platform, marrying industry expertise and technical know-how to mitigate carbon risk in supply chains across all main shipping segments. “In dry bulk we’ve expanded fast and are now serving major global accounts in aluminium, grain and mining to name a few,” Stensby added.

The platform tracks greenhouse gas emissions generated by every freight shipment, using calculations based on satellite data, vessel particulars and actual behaviour. This complements and corroborates an increasing share of data coming into CargoValue from vessels reporting their actual emissions.

Putting data to use in a smart way

“Quality data is the backbone of the digitalization movement, with demand coming not only from customers, but also investors and other stakeholders. Working with us allows charterers to take action now on accurately measuring, assessing, and benchmarking their Scope 3 emissions,” adds Stensby, arguing that the industry needs to follow the example of the first movers and drop the “wait and see mentality” often linked with zero fuels or regulatory agenda.

Head of ZeroLab Morten Skedsmo, whose team has led the development of ‘Emissions’, is pleased to see more customers realize the value of accurate monitoring. “As a shipping company we are taking action on our own emissions and helping other companies do the same, we want to create value every step of the way.”

Building on the insights available through the Emissions module in CargoValue, ZeroLab’s team then apply their expertise to focus on helping charterers to explore reduction strategies, for example by establishing an emissions trajectory in line with the customer’s ESG commitments. As up to 30% of emission reductions can be achieved through improved operational efficiency, the team uses the data to guide customers on where improvements can be made across the supply chain.

Collaboration is key

Stensby, meanwhile, emphasizes the critical importance of collaboration across the value chain in driving decarbonization. “As well as quantifying supply chain emissions and assessing how they align with established frameworks for ESG compliance and industry initiatives such as the Sea Cargo Charter, CargoValue enables collaboration with stakeholders in real-time to build transparency. Some customers have incorporated their global operations and spanning hundreds of supply chain stakeholders into the platform.”

“Digital transformation, leveraging intelligent, cost-effective ways to complement work done by humans is key for survivability and profitability. With our platform of services providing end-to-end commodity visibility, we can act as an extension of customers’ own supply chain function and guide them on their digital journey towards resilience and long-term sustainability,” Stensby concluded.

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Maritime

Kalmar to supply 12 Kalmar Hybrid Straddle Carriers to GMP in France

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Kalmar to supply 12 Kalmar Hybrid Straddle Carriers to GMP in France. Image: Cargotec
Kalmar to supply 12 Kalmar Hybrid Straddle Carriers to GMP in France. Image: Cargotec
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Kalmar, part of Cargotec, has received a repeat order of 12 Kalmar Hybrid Straddle Carriers to GMP in Le Havre, France. This brings GMP’s fleet of Kalmar equipment to a total of over 50, of which 24 are hybrid straddle carriers. The order was booked in Cargotec’s 2022 Q3 order intake, and the equipment is expected to be delivered by the end of Q3 2023. Additionally, Kalmar provides the customer with a preventive maintenance contract.

GMP in the port of Le Havre has been using Kalmar Straddle Carriers since the early 1990s. The latest delivery of 12 Kalmar Hybrid Straddle Carriers took place in 2020. GMP is committed to reducing and mitigating the carbon footprint of its operations through continuously aiming to cut energy use in its facilities and investing in product designs which conserve energy and lower greenhouse gas emissions. Together with its customers, Kalmar aims to shape the future of cargo handling with safe and eco-efficient solutions that improve the customer’s every move. Kalmar Hybrid Straddle Carriers will help contribute towards meeting this goal by enabling significant reductions of both the fuel consumption and CO2 emissions of a terminal’s straddle carrier operations when compared to using traditional diesel-powered machines. Hybrid machines also generate much less noise than their diesel counterparts do.

Louis Jonquière, CEO GMP Le Havre: “Kalmar has been a trusted partner of ours for decades already, and their proven technology and commitment to developing eco-efficient solutions is a perfect fit to our sustainability targets. The hybrid straddle carrier solution will support our terminals in achieving their environmental goals, while also boosting the efficiency of container moves at the same time.”

Mikko Mononen, VP Sales, Kalmar: “We are delighted to further strengthen our already excellent relationship with GMP and continue our shared journey on the road towards a more sustainable future for cargo handling operations. We are investing continuously in R&D efforts to develop more eco-efficient solutions and we are pleased to see that our customers share the same priorities. We are also very proud that with this order, we have sold over 500 Kalmar Hybrid Straddle Carriers globally since their introduction to the market in 2013.”

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