Emirates Steel, the only integrated steel plant in the UAE and a subsidiary of the General Holding Corporation (Senaat), has signed a marine services agreement with Abu Dhabi Marine Services (Safeen), a subsidiary of Abu Dhabi Ports.
The strategic agreement is valued at Dh1 billion (US$272.24 million), according to a statement.
The agreement was signed by the chief executive officer of Emirates Steel, Engineer Saeed Ghumran Al Remeithi, and Captain Mohamed Juma Al Shamisi, chief executive officer of Abu Dhabi Ports, in the presence of Captain Adil Banihammad, acting chief executive officer– Marine Services, Abu Dhabi Marine Services – Safeen, and a number of senior officials and engineers from both parties.
The agreement, which will be implemented in January 2021 and will extend over the following 10 years, is the result of Emirates Steel’s commitment to both providing high quality products, and optimising its supply chain in accordance with international standards. Such aims fall in line with Emirates Steel’s efforts to support Abu Dhabi Economic Vision 2030.
In the agreement, Safeen will provide short marine shipping services for three shipments of iron ore per month.
Additionally, Safeen will be responsible for the purchase, rental, delivery, operation and maintenance of cargo ships, trailers and unloading equipment for Emirates Steel.
Engineer Jamal Salem Al Dhaheri, chief executive officer, Senaat, said: “We are delighted to have signed this agreement between Emirates Steel and Abu Dhabi Ports, which reflects our ongoing commitment to home-grown entities working together and their keenness to build strategic partnerships that contribute to supporting the economy of Abu Dhabi and the UAE in general.”
Engineer Saeed Ghumran Al Remeithi, chief executive officer, Emirates Steel, said: “We continue to seek to enhance its production capabilities in Abu Dhabi, and the signing of this agreement falls in line with such a commitment.”
“Through this agreement we have ensured the best shipping services for our cargo in order to continue to improve our production capacity in Abu Dhabi,” he added.
“This agreement is the result of a joint effort that has lasted over a year and it reflects the spirit of cooperation between the two national companies. The signing of this agreement with Abu Dhabi Marine Services Company comes following a tendering process, which attracted a diverse and international range of industry leaders,” he said.
“This agreement will enhance Emirates Steel’s capabilities, and contributes towards its goal of being an internationally leading manufacturer and supplier of high quality steel products, alongside providing technical services and solutions to clients, and increasing revenues for shareholders,” he added.
Captain Mohamed Juma Al Shamisi, chief executive officer, Abu Dhabi Ports, said: “This strategic agreement highlights Emirates Steel and our company’s commitment to reinforcing Abu Dhabi’s position as a global industrial hub and contribute to building a sustainable, diversified economy.”
“We are delighted that Emirates Steel has chosen us to provide marine shipping services, and we will continue to leverage Safeen’s expertise to provide world-class services and solutions,” he added.
Captain Adil Banihammad, acting chief executive officer – marine services, Safeen, said: “The agreement with Emirates Steel is one of our biggest and most significant deals to date.”
“We will be expanding our portfolio of services by offering lighterage for the first time, complementing other maritime and quayside-support services. We see huge demand, especially in the Gulf, for the marine shipping sector. We are proud to continue addressing the market’s demand by providing world-class integrated marine and port services,” he added.
Credit: Trade Arabia News Service
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