SPG Yantai Port (SPG), a large government owned enterprise that operates major ports in East China’s Shandong province and AD Ports Group, a global leader in logistics, industry, and trade facilitation have signed a preliminary strategic agreement to establish green automotive business parks, promoting vehicle trade between Asia, Middle East and North Africa and leveraging sustainable energy.
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Recognising the significant opportunity to establish a comprehensive China-Middle East-Africa automotive logistics corridor, the parties will combine their infrastructure, market positions and expertise, to deliver an efficient supply chain for both new and second-hand vehicles. The initiative will leverage China’s position as the world’s largest automotive market with significant export potential, alongside Abu Dhabi’s role as a rapidly growing trade and logistics hub.
Under the terms of the agreement the parties will explore the establishment and operation of an integrated bilateral terminal and auto hub network, connecting the Asia-Pacific Green Automotive Circular Economy Industrial Park in Yantai, Shandong, with AD Ports Group’s automotive terminals and hubs in the UAE, and other key countries, to create a seamless and efficient vehicle supply chain.
Under consideration will be the development of state-of-the-art auto hubs integrated into ports, utilising AI-driven technologies to enhance operational efficiency and deliver competitive advantages in the automotive logistics sector. This will include exploration of sustainable energy initiatives, leveraging SPG Yantai Port’s advanced energy infrastructure and logistics capabilities alongside AD Ports Group’s strategic location in the Middle East, and its role in supporting the thriving energy sector in the region.
In recent years, with the continuous rise of the international influence of Chinese automobile brands, China’s second-hand car exports are ushering in an important period of development opportunities. As the largest overseas market for China’s second-hand car exports, the strategic position of the United Arab Emirates is particularly significant. The strategic cooperation between SPG Yantai Port and AD Ports Group, based on the complementary advantages of both sides in the fields of port operation, logistics network and market channels, contains significant strategic synergy value and will inject strong momentum into deepening the economic and trade exchanges between the two countries.
“Building on our longstanding relationship with SPG Yantai Port, this strategic agreement reflects our shared vision for strengthening trade and logistics links between China, the UAE and wider global markets. The development of integrated green automotive industrial parks will elevate Abu Dhabi’s role as a key hub for the automotive market contributing to economic diversification, supporting a circular economy and creating sustainable value for customers across Asia, the Middle East and North Africa,” said Captain Ammar Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group.