AD Ports Group and Semurg Invest have initiated the construction of a new grain terminal at Kuryk Port in Kazakhstan, marking a significant step in regional logistics and grain trade. The Sarzha Grain Terminal is planned to start with an annual capacity of 570,000 tonnes of grain cargo in its initial phase, with an ambitious expansion to 1.5 million tonnes per year once phase two is completed. The project represents a total investment exceeding $50 million across both phases, with AD Ports contributing approximately $30 million. The venture is structured as a joint ownership, with AD Ports holding 51 percent and Semurg owning the remaining 49 percent. Phase one is scheduled for completion in the first half of 2026, and the terminal is expected to boost global food trade by connecting Kazakhstan to Europe through the Transcaspian International Transport Route.
Project Overview and Scope
The Sarzha Grain Terminal, located at Kuryk Port in Kazakhstan, is designed to serve as a strategic hub for grain handling and export in the region. In its initial configuration, the facility will be capable of processing and moving 570,000 tonnes of grain cargo annually, providing a robust entry point into international markets. The planned phase two expands this capacity to 1.5 million tonnes per year, significantly increasing Kazakhstan’s grain export potential and enabling greater integration into global supply chains. The total investment commitment for the project will surpass $50 million when both phases are fully financed and constructed, underscoring the scale of the endeavor and its importance to the players involved. The breakdown of ownership—51 percent for AD Ports Group and 49 percent for Semurg Invest—reflects a governance structure designed to balance strategic control with local partner participation. The project’s timeline places the completion of phase one in the first half of 2026, signaling a clear schedule for ramping up operations and evaluating early performance metrics.
From a strategic standpoint, the Sarzha Grain Terminal aims to advance global food trade by providing Kazakhstan with a reliable entry point into European markets via the Transcaspian International Transport Route. This route, which traverses multiple logistics corridors, facilitates multimodal movement that can streamline transit times and reduce costs for grain shipments destined for European buyers and other international destinations. The project’s design includes modern handling technologies and adherence to sustainable practices, aligning with contemporary expectations for efficiency, safety, and environmental stewardship in large-scale port operations. The joint venture’s establishment and its phased development illustrate a deliberate move to leverage regional complementarities—Kazakhstan’s grain production capacity and Europe’s demand—through a dedicated, modernized logistics facility. The announcement also highlights the broader strategy of AD Ports Group to expand its footprint in Central Asia and to deepen trade links across the region by investing in infrastructure that can serve as a catalyst for broader economic activity.
Abdulaziz Zayed Al Shamsi, regional CEO of AD Ports Group, emphasized that the investment showcases the group’s commitment to expanding its presence in Central Asia, with Kazakhstan serving as a focal point. He noted that Sarzha Grain Terminal will not only enhance grain trade and handling capacity at Kuryk Port but will also deploy modern technologies and sustainable practices. The joint venture itself dates back to August 2023, when it was first unveiled, marking a turning point in AD Ports’ regional expansion strategy and signaling a continued push into strategic logistics projects in Central Asia. This project sits within a broader pattern of AD Ports’ activity in the region, highlighting a deliberate approach to diversify its geographic footprint and to integrate advanced port services with sustainable operational models.
In a broader context, the Sarzha Grain Terminal aligns with AD Ports Group’s ongoing efforts in 2024 to strengthen its international presence through targeted ventures that expand the company’s network, capabilities, and strategic reach. The group’s Central Asian initiatives are part of a suite of moves designed to bolster cross-border trade facilitation and to create a more resilient, diversified logistics platform that can adapt to shifting global markets. AD Ports’ strategy emphasizes sustainable innovation and operational excellence as core pillars, with a focus on expanding the company’s international footprint while maintaining rigorous standards for efficiency and responsible resource use.
Ownership, Investment and Financing Details
The Sarzha Grain Terminal project is structured as a joint venture between AD Ports Group and Semurg Invest, with a clear equity split: AD Ports holds 51 percent, and Semurg retains 49 percent. This ownership arrangement ensures majority control by AD Ports while preserving a significant minority stake for Semurg, enabling collaborative governance and shared strategic decision-making. The total anticipated investment for the two-phase project exceeds $50 million, reflecting a sizable capital commitment intended to establish a state-of-the-art grain handling facility at Kuryk Port and to support a longer-term expansion trajectory.
AD Ports Group’s financial contribution is estimated at approximately $30 million, underscoring the company’s pivotal role in funding the venture and driving the development of the terminal’s infrastructure and capabilities. The balance of the investment is anticipated to be financed through Semurg Invest and potentially other financing mechanisms aligned with the joint venture’s structure, though the available information confirms the principal ownership split and the overall capital envelope. The capital outlay is allocated toward critical components of the facility, including the construction of storage facilities, loading and unloading equipment, handling systems, security and safety measures, IT and digitalization infrastructure, and ancillary support services essential to efficient grain logistics.
Phase one, designed to deliver an initial throughput of 570,000 tonnes per year, is planned for completion in the first half of 2026. This milestone marks the beginning of commercial operations and sets the foundation for ramping up to the phase-two capacity target of 1.5 million tonnes per year. The phased approach is intended to manage risk, optimize design and construction schedules, and ensure that the facility’s capability aligns with growing regional demand and the broader aims of integrating Kazakhstan into high-capacity transport corridors. The expansion plan provides room for scalability and future enhancements, allowing the terminal to adapt to evolving market conditions, regulatory requirements, and technological advancements in port logistics.
The joint venture’s formation and financing structure reflect a strategic alignment between a major, globally recognized port operator and a regional investment partner. This alignment is expected to yield synergistic benefits, including access to AD Ports’ international network, expertise in port management, and a proven track record in developing and operating large-scale logistics facilities. Semurg Invest, as a partner with local knowledge and market insight, complements this capability with its regional presence and market understanding. The combination of these strengths is aimed at delivering a best-in-class grain terminal that can serve as a cornerstone for regional grain trade, supporting Kazakhstan’s export capabilities and enhancing supply chain reliability for international buyers.
Strategic Significance and Regional Connectivity
The Sarzha Grain Terminal’s strategic significance hinges on its potential to connect Kazakhstan more effectively to European markets through the Transcaspian International Transport Route (ITTR). This route is designed to offer a multimodal corridor that links Central Asia to global markets, leveraging diverse transport modes to optimize transit times, costs, and reliability for bulk commodities such as grain. By situating the terminal at Kuryk Port and integrating it into a broader network, the project stands to improve the efficiency of grain export flows from Kazakhstan and neighboring regions, contributing to a more resilient and diversified logistics landscape in Central Asia.
The terminal’s capacity expansion—from 570,000 tonnes in phase one to 1.5 million tonnes per year in phase two—reflects a deliberate effort to scale operations in response to growing demand and favorable market conditions. The accelerated growth potential is designed to attract downstream logistics partners, spur investment across related sectors, and create a reliable export channel that can support long-term planning for farmers, exporters, and traders. In addition to the increased throughput, the terminal is expected to incorporate advanced technologies and sustainable practices, aligning with contemporary expectations around efficiency, safety, and environmental responsibility. The emphasis on modernization and sustainability should contribute to lower operating costs over time, improved asset utilization, and a reduced environmental footprint.
From a regional development perspective, the Sarzha Grain Terminal contributes to a broader push to diversify Kazakhstan’s export routes and to reduce dependence on any single corridor. By leveraging the Transcaspian ITTR and related multimodal connections, the project fosters greater integration with European markets and aligns with global grain trade dynamics. The initiative also complements ongoing efforts by AD Ports Group to expand its global logistics network, reinforcing its strategic objective to extend frontiers of trade through capable, interconnected port facilities and associated services. The joint venture’s leadership and governance structure will play a crucial role in ensuring that the project delivers the expected economic and trade benefits while adhering to high standards of governance, safety, and sustainability.
Abdulaziz Zayed Al Shamsi’s remarks underscore the broader implications of the investment: enhancing the region’s grain trade capabilities, expanding the capacity for high-quality handling, and incorporating modern technologies and sustainable practices. The partnership’s intent to bolster Kazakhstan’s linkages to Europe through a major corridor highlights the potential to strengthen regional economic integration, improve efficiency for grain exporters, and attract further investment in related infrastructure, services, and value chains. The project’s timing fits within a broader strategic framework of AD Ports Group’s regional expansion and its aim to position itself as a leading player in Central Asia’s evolving logistics landscape.
AD Ports Group: Global Expansion Strategy and Market Position
AD Ports Group’s expansion strategy has been markedly global, with a sequence of ventures and investments throughout 2024 that collectively broaden its geographic footprint, capabilities, and international presence. The group has pursued opportunities across Africa, the Middle East, Europe, and Asia, seeking to diversify its portfolio and strengthen cross-border trade capabilities. The push into Central Asia with the Sarzha Grain Terminal in Kazakhstan aligns with this broader strategic objective, reinforcing AD Ports’ commitment to connecting key markets and enabling seamless, end-to-end logistics solutions for bulk commodities and other freight categories.
The company’s international ventures in 2024 included projects in Angola, Egypt, Tanzania, Pakistan, and Georgia, among others. These initiatives illustrate a sustained effort to expand the group’s network beyond its traditional base in the Middle East and North Africa (MENA) region, leveraging its experience in port operations, inland logistics, and multi-modal transport to offer integrated services across continents. By expanding its portfolio, AD Ports Group aims to create a more resilient and diversified revenue stream, reducing reliance on a single market and capitalizing on the growth of global trade and commodity flows.
AD Ports Group operates Khalifa Port in Abu Dhabi, a flagship facility that demonstrates the company’s capability in managing large-scale port operations and delivering integrated logistics services. The group’s expansion under the umbrella of state involvement is supported by ADQ, a prominent state investor, which underscores the strategic importance of the company’s international growth efforts to national economic diversification and regional influence. The focus on sustainable innovation and responsible operations is a central theme in AD Ports’ expansion strategy, reflecting a commitment to balancing growth with environmental and social considerations.
Financially, the company reported robust performance in the third quarter of 2024, with revenue reaching Dirhams 4.66 billion, marking a 10 percent increase compared with the same period in the previous year. Net profit rose by 11 percent to Dirhams 439 million, signaling positive momentum across its diversified operations and confirming the company’s ability to translate expansion into sustained earnings growth. These results reflect the company’s successful execution of its expansion plans, its ability to monetize new ventures, and its capacity to leverage scale, efficiency improvements, and technology-driven optimization to enhance overall financial performance.
The combination of ongoing global expansion, strategic partnerships, and consistent financial growth positions AD Ports Group as a leading player in the global logistics and port services sector. The Sarzha Grain Terminal project exemplifies how the company combines regional investment with a broader international strategy to create interconnected networks that bolster trade, support regional development, and drive long-term value for shareholders and stakeholders. The company’s approach reflects a nuanced understanding of global trade dynamics and a proactive stance toward capitalizing on emerging opportunities in high-growth markets while maintaining a strong commitment to sustainable operations.
Sustainability, Technology and Operational Excellence
A core aspect of the Sarzha Grain Terminal project, as highlighted by AD Ports Group leadership, is the integration of modern technologies and sustainable practices into the terminal’s design, construction, and eventual operations. This emphasis on technological adoption encompasses automation, digitalization, and enhanced data analytics to optimize cargo handling, security, and throughput. The intent is to achieve higher efficiency, reduce turnaround times, improve accuracy in grain measurement and grading, and bolster safety protocols for workers and equipment. In addition, sustainable practices are positioned at the forefront, with potential focus on energy efficiency, reduced emissions, waste management, and responsible resource use within the terminal’s operating framework. The move toward sustainability is expected to generate long-term benefits, including lower operating costs, improved environmental performance, and enhanced resilience to regulatory changes and market expectations.
The Sarzha Grain Terminal’s planned integration with the Transcaspian ITTR underscores the importance of technology-led modernization in cross-border trade. The terminal is anticipated to leverage digital platforms and integrated logistics solutions to streamline documentation, customs clearance, and real-time tracking of shipments. By enabling smoother coordination among shipping lines, rail operators, and inland transport services, the project supports faster transit and greater reliability for grain exporters and buyers. The combination of modernization and sustainability is also aligned with broader industry trends toward green logistics, energy-efficient operations, and the use of data-driven decision-making to optimize route selection and load management.
Beyond the Sarzha project itself, AD Ports Group’s global expansion is characterized by the adoption of best practices in port management, safety, and operational excellence. The company’s strategy includes deploying standardized operating procedures, investing in workforce development, and implementing advanced cargo handling technologies across its portfolio of facilities. These investments contribute to improved asset utilization, reduced dwell times, and enhanced service quality for customers. The emphasis on sustainability complements the company’s growth trajectory by addressing environmental, social, and governance considerations that are increasingly central to investor and regulator expectations.
Financial Performance and Corporate Outlook
AD Ports Group’s financial results for the third quarter of 2024 reflect a positive trajectory across its diversified operations. The company reported revenue of Dirhams 4.66 billion, representing a 10 percent year-on-year increase that signals healthy demand for its services and the effectiveness of its expansion strategy. Net profit rose to Dirhams 439 million, an 11 percent increase compared with the same period in the prior year, illustrating successful portfolio management and operational efficiency gains alongside revenue growth. These figures underscore the company’s ability to translate its geographic expansion into tangible financial gains, supported by a mix of port operations, logistics services, and strategic investments in high-potential markets.
The revenue and profit growth are complemented by the company’s broader strategic focus on expanding its international network, strengthening its capabilities, and enhancing its sustainability-oriented operational model. The performance in 2024 reflects the cumulative impact of executed ventures and the early-stage contributions from newly developed facilities and partnerships, such as the Sarzha Grain Terminal project in Kazakhstan. The positive financial trend also suggests that AD Ports Group’s diversified portfolio is well-positioned to weather market fluctuations and capitalize on opportunities amid evolving global trade dynamics, including shifts in grain markets, regional transport corridors, and demand for integrated logistics solutions.
Given the scale and scope of its international expansion, the group’s outlook remains oriented toward continued growth, diversification, and shareholder value creation. The ongoing development of flagship assets, along with the deployment of advanced technologies and sustainable practices, is expected to support improved margins, higher asset utilization, and stronger competitive positioning in a crowded global logistics landscape. The company’s strategic emphasis on Central Asia and other high-growth regions aligns with broader macroeconomic trends toward regional economic integration, infrastructure investment, and the globalization of supply chains. As AD Ports continues to execute its agenda, stakeholders can anticipate ongoing announcements regarding new partnerships, project milestones, and potential further expansions that build on the foundations established in 2023 and 2024.
Risk Management, Regulatory Environment and Economic Impact
The development of the Sarzha Grain Terminal is subject to a range of risks and regulatory considerations typical of large-scale cross-border logistics projects. Construction timelines, financing arrangements, and the timely execution of the phase-two expansion are all contingent on stable project governance, access to capital, and the ability to coordinate across multiple jurisdictions and regulatory frameworks. The project’s success will depend on effective risk management practices, including contingency planning for potential supply chain disruptions, exchange rate fluctuations, and changes in trade policy that could affect grain flows and corridor usage. Additionally, environmental and social governance considerations—such as environmental impact assessments, community engagement, and adherence to local regulations—are likely to shape project execution and ongoing operations.
Regulatory clarity and cooperation among stakeholders in Kazakhstan and neighboring regions will also influence the project’s trajectory. The Transcaspian ITTR, as a corridor, hinges on cross-border coordination, interoperability of logistics systems, and the alignment of customs and import/export procedures to ensure efficient movement of goods. The success of the Sarzha Grain Terminal could, in turn, set a precedent for further investments in port infrastructure and multimodal logistics in Central Asia, contributing to regional economic diversification and job creation. The project’s alignment with sustainable practices may also position it favorably with lenders, insurers, and investors who prioritize environmental, social, and governance criteria in infrastructure investments.
From an economic perspective, the Sarzha Grain Terminal has the potential to influence grain trade dynamics in the region by increasing capacity, reducing bottlenecks, and providing a reliable export channel. The enhanced capacity and improved logistics reliability can support higher export volumes, potentially benefitting farmers and exporters by offering more predictable access to international markets and pricing opportunities. The project could also spur ancillary investments in related supply chains, including storage, processing, and transportation services, contributing to a broader positive impact on regional economic activity and competitiveness. As with all large-scale infrastructure projects, ongoing monitoring, transparent reporting, and adaptive management will be essential to ensure the anticipated benefits materialize while mitigating any adverse effects.
Conclusion
The joint venture between AD Ports Group and Semurg Invest to build the Sarzha Grain Terminal at Kuryk Port represents a pivotal development for Kazakhstan’s grain export capability and for regional trade connectivity. With initial capacity of 570,000 tonnes per year and a planned expansion to 1.5 million tonnes, the project is backed by an investment exceeding $50 million, spearheaded by AD Ports with a 51 percent stake. Completion of phase one is targeted for the first half of 2026, setting the stage for enhanced grain handling, multimodal transport integration, and stronger links between Kazakhstan and Europe through the Transcaspian International Transport Route. The initiative aligns with AD Ports Group’s broader strategy to expand its global footprint, diversify its portfolio, and advance sustainable, technology-driven logistics solutions across continents. In parallel with the Kazakhstan project, AD Ports continues to grow its international presence through ventures in Angola, Egypt, Tanzania, Pakistan, and Georgia, while maintaining a solid financial position evidenced by solid year-over-year revenue and profit growth in 2024. As these efforts unfold, the Sarzha Grain Terminal is poised to contribute meaningfully to regional economic development, improved trade efficiency, and the ongoing modernization of Central Asia’s logistics infrastructure.