Emirates Steel, which operates the only integrated steel plant in the UAE, has signed a multi-million-dollar agreement with Abu Dhabi Marine Services (Safeen), a subsidiary of Abu Dhabi Ports, to provide a wide range of services in support of the short sea transportation and transhipment of bulk cargoes.
The 10-year agreement will be implemented in January 2021 and provides for Safeen to deliver marine support services for three shipments of iron ore per month. Additionally, Safeen will be responsible for the purchase, rental, delivery, operation and maintenance of the necessary cargo ships, trailers and unloading equipment for Emirates Steel.
Emirates Steel’s chief executive, Eng. Saeed Ghumran Al Remeithi, said: “Emirates Steel continues 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.”
The agreement with Emirates Steel is one of Safeen’s biggest and most significant deals to date and is valued at around AED 1 billion (US$ 272 million). As a result of the new contract Safeen will be expanding its portfolio of services, by offering lighterage for the first time, for example.