The UAE-based terminal operator AD Ports Group and Zhejiang Provincial Seaport Investment & Operation Group (Ningbo Zhoushan Port Group), one of China’s largest port operators, have entered into a preliminary strategic agreement to establish an automotive logistics ecosystem connecting Chinese manufacturing capabilities with Middle Eastern, Central Asian, and African markets through integrated terminal operations, dedicated fleet services, and multimodal transport solutions.
The agreement was signed at a ceremony marking the maiden voyage of UGR Zakher, the second liquefied natural gas (LNG)-powered vessel operated by United Global Ro-Ro (UGR), a joint venture formed recently between AD Ports Group and Turkish logistics and port services provider Erkport.
Responding to the growing demand for vehicle exports from China, the agreement outlines plans to reciprocatively develop roll-on/roll-off (RoRo) and automotive terminals at Ningbo Zhoushan Port and AD Ports Group’s hub locations.
Enhancements considered under this agreement include accommodating larger vessels, increasing vehicle handling capacity, and reducing turnaround times at the ports. Plans include using UGR as the designated RoRo carrier. UGR already operates RoRo services connecting China with terminals in the Middle East, Asia and the Mediterranean.
“This preliminary strategic partnership with Zhejiang Provincial Seaport Investment & Operation Group marks a defining moment in our combined efforts to establish smart, connected automotive corridors across continents,” Mohamed Juma Al Shamisi , Managing Director and Group CEO of AD Ports Group, commented.
“With the introduction of our second LNG-powered vessel in the UGR fleet, it not only increases cargo capacity for our customers but also demonstrates our commitment to investing in a fleet that supports global decarbonisation . The continued expansion of our Ro-Ro operations is a key element of our growth strategy, particularly as demand for automobile exports from China continues to rise; we are also excited at the possibility of … multimodal connectivity by integrating the Middle Corridor’s rail and maritime routes.”
“Ningbo Zhoushan Port, a key deep-water port in China, ranks first globally in cargo throughput and serves as a vital hub for world trade. The maiden voyage of the new UGR ship, UGR Zakher, at Ningbo Zhoushan Port marks a new phase in our strategic partnership with AD Ports Group,” Tao Chengbo , Chairman of Zhejiang Provincial Seaport Investment & Operation Group, said.
“Leveraging the cooperation in car roll-on/roll-off services, we will further expand our business areas, enhance comprehensive cooperation in logistics, warehousing, green energy, and talent exchange, and inject strong momentum into the coordinated development of the China-Arab Economic Corridor.”
UGR Zakher, with a capacity of 7,000 CEUs, is said to mirror the attributes of its sister ship, UGR Al Samha, which was delivered earlier this year.
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Together, the two vessels boast the same lower greenhouse gas emissions thanks to the use of LNG, alongside improved energy and operational efficiencies. The new addition significantly improves capacity on the existing deep-sea port route and enhances sailing frequency, according to AD Ports.
As explained, UGR’s capacity will be key to delivering stable sea routes to meet rising demand. Technology integration will also be considered as per the agreement, including digital platforms.
In addition, the partners intend to explore synergies between sea and inland rail routes to create a comprehensive multimodal transport network through the Middle Corridor and offer alternative routing options for China-Central Asia-Europe trade flows, supporting Belt and Road Initiative connectivity objectives.
The partnership is said to reflect a shared commitment to providing support for the growing vehicle export supply chain and to strengthening the trade and logistics bridge between China, the Middle East, and emerging markets across Africa and Central Asia.