00:00First of all, take us through, how has business been? What numbers are you seeing right now?
00:06Good morning, Aslida. Thanks for having me.
00:09Yeah, so far, I mean, from the start of the war,
00:16in Holfakan Port, located outside of the Strait of Hormuz, had to adjust rapidly.
00:21So while we were observing, obviously, a week to 10 days of congestion at the beginning,
00:27because we had enormous, obviously, amount of volumes that we had to handle, I mean, simultaneously.
00:34And as much as you have all sorts of business continuity plan in place,
00:38I think none, a single industry stakeholder is prepared to absorb such significant volumes.
00:45But the port converted from a transshipment platform now to a 100% gateway status.
00:53We were initially handling about 2,000 containers per week.
00:57As of today, actually, we handle about 50,000 containers per week.
01:01The truck movements ramped up from hundreds per week now to 7,000, hundreds per day to 7,000 per
01:09day.
01:10And all of this, obviously, was possible because of, I mean,
01:15very detailed and synchronized coordination among the different operators in the region.
01:21Farid, how close are you to maximum capacity?
01:26So as of now, we are operating at optimal capacity.
01:30So the port is close to 70% occupancy ratio.
01:34We maintain, obviously, that level of occupancy with the sole objective to make sure that the cargo can keep moving.
01:42So as soon as the cargo is discharged, within a matter of two, three days, the cargo is being evacuated
01:48to other cities, other Emirates.
01:51I mean, we had, obviously, to build, I mean, a very complex network of logistic facilities in a couple of
02:00days and weeks.
02:01And, for instance, we launched a dry port located at 80 kilometers from the, from Sharjah, called Sajjah.
02:09It operates with a 70 hectares capacity and, and, and that, obviously, enabled, obviously, to, to move the cargo smoothly,
02:18Aslinda.
02:20Farid, we know that the Revolutionary Guard has extended its control, you know, to the two ports, including Kofa Khan.
02:30I'm just wondering, how confident are you that it will, will not be attacked?
02:37I, see, I cannot, obviously, give any, any warranty, you know.
02:41I'm, obviously, I'm not a war expert.
02:44What I can tell you, Aslinda, is, obviously, what they claim as a, as a, as a scope of, I
02:51mean, geographical control, obviously, do not make sense.
02:54And, I mean, they are referring to UAE territorial waters.
02:59So, and as of now, obviously, as a matter of sovereignty, and this, I mean, those territorial waters is, obviously,
03:07under the UAE control.
03:10So, what is important for us is to maintain that level of confidence with the ship operators, ship owners.
03:18I believe that the response and the management of this crisis that we were able, so far, to provide to
03:26the industry
03:26illustrate that we are capable, obviously, to maintain that level of trust, but, as well, of safety for the ships
03:36to maintain service continuity in the eastern coast ports of, you know, of the UAE, Aslinda.
03:45Right.
03:47Kofa Khan has been referred to as a lifeline.
03:49How do you protect a lifeline, which is also a high-value target?
03:54I mean, what measures, have you considered, what measures are in place?
04:00I, I mean, I cannot necessarily give, obviously, the entire security plan that is around Kofa Khan.
04:09Obviously, we have a business continuity plan in place, which makes sure, obviously, that in case of any threat,
04:18first, obviously, the safety of our operators, but as well that of the ships and the crews is prioritized.
04:26I mean, we are not compromising, obviously, in any manner on the safety of our people and our partners.
04:33I mean, second, the fact that we are able to move the cargo smoothly and maintain that level of occupancy
04:41ratio in the terminal
04:42and enable, I mean, has enabled, obviously, a smooth management and maintain, as well, I would say,
04:50a port not necessarily crowded with too many people or, for instance, you know, pedestrian traffic in the port.
04:59And we were very clear that, I mean, it's not only about increasing efforts, but building a proper system,
05:07I mean, surrounded by processes and high level of coordination with the different stakeholders,
05:13from port authorities to national security, but as well, customs.
05:19And that has, obviously, enabled, overall, a smooth and safe management of the crisis, as Nilda.
05:26Yeah.
05:28Farid overnight, we heard from President Trump saying that the war is close to ending.
05:36How much impact might that have on your business?
05:40Might Jabal Ali become, you know, the de facto, the main port again?
05:44How are you assessing such a scenario?
05:48I think we have clearly learned that relying, obviously, today on a single point of entry
05:57or particularly on the Strait of Hormuz, obviously, do not make sense.
06:03And as I'm speaking, corridors have been redesigned.
06:08And projects now are underway to reinforce this new UAE-Eastern logistic corridor.
06:16The objective is, obviously, to provide alternative options.
06:20I would say beyond alternative options.
06:23I believe that today, Hormuz Khan, as a gateway, has proven that it should and it became a default setup.
06:33So, while, yes, the Strait will definitely reopen and traffic as well will flow via the Strait,
06:43but shippers, ship owners, importers are very clear, obviously, about their supply chain strategy
06:49that relying, eventually, on only one option is, obviously, of a risk.
06:55And I believe since COVID, we learned a hard way of adjusting and being flexible, obviously,
07:03when it comes to alternative routes, as Linda.
07:07So, Farid, you're suggesting that the customer psyche has changed for good, has changed fundamentally.
07:14It's not about cost anymore.
07:16Correct, correct, correct.
07:17I think the fastest route or the longest route today does not matter.
07:25As long as we are capable to deliver cargo at destination is what matters.
07:33And, obviously, we have noticed an increase with the supply chain costs,
07:40which are, to some extent, justified, considering the risk that the ship owners and the ship operators are facing in
07:48the region.
07:49This will stabilize, obviously, along the way.
07:52We have seen that trend during COVID, when rates jumped literally from $1,000 to $15,000.
08:00I mean, along the way, rates, obviously, drill down and adjusted.
08:06I believe that all those disruptions are proving that supply chain today is not just in a single element of
08:16consideration in a trade strategy.
08:19It's the, I would say, it's the critical de facto factor of success, of making sure that trades continue to
08:28work, as Linda.
08:28I don't know.
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