EGA and Gulftainer sign agreement to boost aluminium exports from UAE East Coast

Emirates Global Aluminium (EGA), a key non-oil industrial player in the UAE, has entered into a partnership with global ports operator Gulftainer to enhance aluminium exports through the UAE’s eastern coast. This collaboration aligns with EGA's strategy to strengthen its outbound logistics network, ensuring the continuous and reliable delivery of aluminium – the UAE's leading non-oil export after oil and gas – to its international clients.

According to the agreement, EGA plans to ship up to 250,000 tonnes of aluminium from the UAE’s eastern coast in the first year, with ambitions to increase this volume to 300,000 tonnes by the second year, and beyond. "EGA is the world's leading producer of premium aluminium, and our global customers rely heavily on our metal," stated EGA's CEO, Abdulnasser Bin Kalban.

"Our alliance with Gulftainer marks another significant milestone in our efforts to ensure consistent supply." Gulftainer, which manages the Khor Fakkan Container Terminal on the UAE’s eastern coast and port facilities in Sharjah, Saudi Arabia, Iraq, and the United States, will further develop its facilities to meet EGA’s growing export needs.

In July, Gulftainer's CEO, Farid Belbouab, revealed plans to nearly triple the terminal's capacity at Khor Fakkan, initially increasing from 3.5 million to 5 million twenty-foot equivalent units (TEUs) within three months, with further expansions planned over 24 and 36 months, ultimately reaching 10 million TEUs. Gulftainer aims to handle up to 90% of the UAE's container demand, even if the Strait of Hormuz were blocked.

The partnership with EGA is seen by Gulftainer as a strategic move to build resilience in UAE trade, providing a secure and efficient pathway for the company's expanding logistics requirements to global markets, according to Belbouab. This agreement follows a trend among UAE companies shifting their export routes away from the Strait of Hormuz, where shipping activities have been disrupted by Iranian attacks on commercial vessels.

In May, Abu Dhabi chemicals manufacturer Borouge signed an agreement with AD Ports Group to explore establishing an alternative export hub in Fujairah, intended to bolster Borouge's export resilience and circumvent the Strait.