The AD Ports Group, the region's leading logistics, industry, and trade facilitator, has struck a deal with Shandong Port Group of China to create a Tyre Hub at KIZAD for tyre storage and distribution.

The agreement between AD Ports Group and Shandong Port Group is consistent with the country's industrialization strategy, and it comes as the UAE's efforts to drive economic diversification, attract foreign direct investment, and consolidate Abu Dhabi's position as a leading trade, logistics, and manufacturing base gain traction as the country marks its 50th anniversary.

By delivering Shandong Port Group complete services from its clusters, the Tyre Hub capitalises on AD Ports Group's expertise as a major facilitator of commerce and logistics. Under its Industrial Cities & Free Zone Cluster, AD Ports Group will give space for a future 150,000-square-meter facility in KIZAD.

Warehouse management, logistics, distribution, and re-export services will be provided by MICCO under the Logistics Cluster of the AD Ports Group, and SAFEEN Feeders under the Maritime Cluster.

Managing director and group CEO of AD Ports Group, Mohamed Juma Al Shamisi said, "The agreement with Shandong Port Group is a historic milestone that illustrates Abu Dhabi's unique logistical offering as well as the importance of the synergies built by the AD Ports Group for its various clusters."

"We are thrilled with the deal, and we are certain that our synergy with the AD Ports Group will generate prospects for the port and logistics sector," said Li Fengli, general manager of Shandong Port Group.

AD Ports Group and SPG inked two agreements in the presence of Al Shamisi and Fengli.

Abdullah Al Hameli, head of Industrial Cities & Free Zone Cluster, and Zhang Quancheng, chairman of Shandong Port Overseas Development Group inked the agreement for the creation of the tyre storage and distribution hub.

Abdullah al Hameli, head of Industrial Cities & Free Zone cluster, AD Ports Group said, "KIZAD serves as a catalyst for businesses and works to increase the competitiveness of Abu Dhabi's economic zones throughout the region. We are excited to continue contributing to Abu Dhabi's economic diversification by bringing in global concepts like the region's first Tyre Hub."

A "Sister Ports" agreement was also signed by Capt. Ammar Al Shaiba, CEO of the Ports Operating Company and managing director of Zayed Port, and Jia Funing, deputy general manager of Shandong Port Group, to form a friendship ports collaboration and boost economic cooperation. The signing took place in conjunction with the purchase and arrival of the first vessel purchased under the terms of the agreement.

"We commend the signing of an agreement with Shandong Port Group, which will strengthen port and shipping industry information and technology exchanges. We are dedicated to building critical trade infrastructure, increasing industrial investment flows to the UAE, and accelerating Abu Dhabi's economic growth and industrialization," said Saif Al Mazrouei, head of Ports Cluster, AD Ports Group.