How Artificial Intelligence Is Powering a New Industrial Boom

By Irina Slav - Nov 02, 2025

• A new ADNOC–Microsoft report finds 87% of energy firms are increasing AI and digital spending, with one-fifth already using agentic AI.
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• Energy leaders see AI as a force for good - even as it doubles data center electricity use and pressures global grids.
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• Oil giants like ADNOC and Aramco are investing petrodollars into AI, betting on the technology to enhance efficiency, emissions monitoring, and long-term growth.
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Concern has been rising that artificial intelligence is killing jobs, and there is evidence to support this. But in the energy industry, executives are loving AI. A fifth of energy companies are already using the technology, and an overwhelming majority of executives believe AI is a force for good. For energy, it has been. AI is driving energy demand much higher than ever before, and it has reasserted the reliability of supply as a top priority.

In a report released this week, the UAE’s ADNOC and Microsoft reported that 87% of companies they surveyed are spending more on artificial intelligence and digital infrastructure. What’s more, a fifth of these companies are now using agentic AI, capable of making complex decisions. “But agentic AI is more than a technical upgrade, it’s a signal that AI is becoming a strategic capability across the energy value chain,” ADNOC and Microsoft reported.

Survey respondents in China and India were especially positive towards artificial intelligence, the report reveals. All Chinese respondents viewed AI as a force for good, along with 92% of Indian respondents. The rest of the world also demonstrated strong enthusiasm for AI, with positive attitudes in Australia and Japan at 87%, falling to 83% for the United States.

As for expectations, everyone that ADNOC and Microsoft surveyed appears to be certain that the growing use of artificial intelligence would drive energy demand higher. To respond to this higher demand, the energy industry needs to start working now to ensure reliable, affordable, and—according to the report—sustainable energy supply for the future.

“Grid capacity remains a potential bottleneck to expanding the digital infrastructure supporting AI,” the authors of the report wrote. “Global data centers account for around 1.5% of the world’s electricity consumption and could double by 2030 to 945 TWh1. This represents approximately 10% of total global electricity demand growth, requiring both new generation and better use of existing assets.”

The energy consumption aspect of artificial intelligence has prompted serious concerns from climate change advocacy circles, as it has spurred a race to secure baseload power generation capacity, meaning gas, coal, and nuclear. Some from the industry, however, believe that AI itself is instrumental for the energy transition by helping transform the grid and improve power generation and distribution, while keeping energy affordable.

“From optimising grids to scientific breakthroughs, AI can help advance the shift to reliable, affordable renewable energy - unlocking the full potential of AI to benefit everyone,” OpenAI’s VP of Global Business, Nate Harbacek, who was among the respondents to the Adnoc/Microsoft survey, said.

This ambition to have AI make alternative energy sources as reliable as baseload generation is not new. So far, however, it seems to have taken the form of so-called demand response only. This means that because wind and solar installations cannot generate around the clock, consumers of electricity need to adjust their consumption habits to match generation patterns. Of course, these are the early days of the Intelligence Age, as OpenAI’s Harbacek calls it, and industries may yet find other, less controversial ways to ensure reliable and affordable energy for everyone.

In the meantime, the energy industry is eager to supply the energy that the AI industry needs. According to the survey, 71% of business executives believe AI proliferation would lead to an increase in global energy consumption in 2030. A minority of 12% believe it would actually lead to a decline in global energy consumption, which at this point is a rather eccentric view. Over a longer horizon, however, more business leaders believe AI would lead to lower energy consumption, with 27% of respondents sharing this belief. Still, a majority of 54% believe that even in 2050, AI will be a drain on energy.

This is good news for the industry to which ADNOC and many of the respondents to its survey belong. In fact, ADNOC and sector players in the Middle East are helping the AI industry grow by investing in it directly. Bloomberg reported on the trend this week, saying the Emirati state oil company, along with Aramco, were “ramping up work with their countries’ national AI champions, using petrodollars to meet the growing need for capital in the race to lead the technology.”

For energy producers, this is akin to securing long-term supply deals with refiners, so chances are that there will be more petrodollars flowing into artificial intelligence projects going forward. Per the respondents to the ADNOC/Microsoft report, it will be money well spent: AI seems to be almost too good to be true, being equally good at boosting operating efficiencies, keeping a lid on costs, and helping with emission monitoring and reduction. The main challenge on the road to the Intelligence Age seems to be a shortage of a skilled workforce to make the best of AI’s capabilities.

By Irina Slav for Oilprice.com

ADNOC Expands Gecko Robotics Partnership to Advance AI and Energy Innovation

By Charles Kennedy - Nov 02, 2025

Abu Dhabi National Oil Company (ADNOC) has expanded its partnership with U.S.-based Gecko Robotics through three new agreements aimed at accelerating the use of artificial intelligence (AI) and robotics across its energy operations while investing in skills training for Emirati talent.

The deals, announced on November 2 at the ENACT Majlis in Abu Dhabi, include a multi-year technology deployment with ADNOC Gas, collaboration on training programs through ADNOC Technical Academy, and a broader framework to explore robotics manufacturing and AI analytics across ADNOC’s asset base.

The first agreement, signed between Gecko Robotics and AIQ, ADNOC’s joint venture with Presight, marks AIQ’s entry into robotics. Under the deal, Gecko’s Cantilever operating system will be deployed across ADNOC Gas facilities to automate inspection and maintenance through real-time robotic data collection and analytics.

A second agreement will see ADNOC and Gecko explore the wider rollout of advanced robotics and AI-powered analytics across the company’s upstream and downstream assets. The collaboration also includes evaluating local manufacturing opportunities for Gecko’s robotic systems in the UAE, reinforcing ADNOC’s strategy to localize high-tech production and expand the nation’s industrial capabilities.

The third deal, between Gecko Robotics and ADNOC Technical Academy (ATA), focuses on training UAE Nationals in robotics operations, data analysis, and maintenance - part of ADNOC’s broader push to equip its workforce with next-generation technology skills.

Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, said the agreements represent “another step on our journey to becoming the world’s most AI-enabled energy company,” adding that the deployment of robotics and AI is key to “driving greater efficiency, safety, and performance” across ADNOC’s operations.

Gecko Robotics CEO Jake Loosararian praised ADNOC’s leadership in digital transformation, saying, “The energy companies that win won’t just utilize technology, they will become technology companies. There is only one way to win this race—and that’s to acquire physical data using robotics and unlock human and machine performance from the AI that data fuels.”

The partnerships come as ADNOC accelerates its “Energy AI” strategy, part of its broader effort to digitize operations and reduce downtime through predictive maintenance and automation. AIQ has been central to this initiative, developing AI-driven solutions for optimizing production, emissions monitoring, and asset management.

This latest move positions ADNOC at the forefront of the Middle East’s growing robotics and AI landscape, reflecting both its global technology ambitions and commitment to developing local expertise.

By Charles Kennedy for Oilprice.com

Big Oil Is Suffering Despite the AI Energy Boom

By Haley Zaremba - Nov 01, 2025

• Artificial intelligence is fueling unprecedented investment in clean and emerging energy technologies, reshaping global energy priorities.
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• Despite growing energy demand, oil producers face weak prices and record oversupply as investor interest shifts elsewhere.
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• Tech billionaires and venture capitalists are betting big on geothermal and nuclear fusion, leaving traditional fossil fuel giants behind.
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AI seems to be the tide that raises all energy boats. Policymakers and private enterprises around the world are adopting an all-of-the-above approach to energy sourcing – clean energy pledges be damned – in order to shore up energy security in an era of unprecedented flux. Governments around the world are greenlighting new projects to boost energy production as fast as they can in an attempt to stay one step ahead of looming energy shortages, while tech moguls bet big on proven as well as unproven energy technologies. But while the AI boom is boosting investments for energy sources from geothermal to nuclear fusion, the world’s biggest energy source is missing out on the influx of cash that seems to be flowing into every other sector. 

Or rather, the amount of AI-inspired dollars flowing into Big Oil’s coffers simply isn’t enough to offset the considerable headwinds faced by the sector today. Despite a rabidly supportive policy environment in the United States and ever-increasing sanctions on Russia, The Economist reports that “times are surprisingly tough for the industry.” Even with ballooning energy demand projections, oil demand has remained soft, and global oil producers are steadily building up a serious oil glut with no signs of relief.

Earlier this month, the International Energy Agency raised its estimate for next year's oil glut, predicting a record oversupply for 2026. According to the agency’s official estimates, global oil supply will exceed demand by nearly 4 million barrels a day, potentially breaking the record for the biggest supply glut in history in annual terms.

Oil companies have been underperforming since before this increased projection hit the markets. “Since the start of last year the S&P 500 index of large American companies has produced a total return, including dividends, of 46%,” reports The Economist. “By contrast, American pedlars [sic] of oil and gas, including giants such as Chevron and Exxon, have returned just 14%.” 

Meanwhile, seemingly every other energy sector is going gangbusters. Money is pouring into nuclear energy startups at such a rapid clip that there are rumblings of a bubble. Last year, private equity and venture capital investments in advanced nuclear companies hit an all-time high, “surpass[ing] the total deal value of the past 15 years combined” according to S&P Global.

Even nuclear fusion, which does not yet exist in any commercially viable form, is receiving a windfall of research and development dollars, riding on the back of the AI boom. Sam Altman, the founder of OpenAI – the firm behind ChatGPT – and arguably the number one poster child of the AI sector, is also one of the world’s biggest proponents of and investors in nuclear fusion technology. He has personally poured hundreds of millions of dollars into nuclear fusion startups and headed one of the world’s buzziest potential fusion unicorns, Oklo. in part thanks to his high-profile confidence in the technology’s singular ability to meet AI’s future energy needs, a report by E.U. firm Fusion for Energy finds that the sector’s total funding has skyrocketed from US $1.7 billion in 2020 to US $15 billion as of September 2025.

At the same time, the geothermal energy market is emerging from niche status into mainstream energy investment portfolios. In 2023, the global market for geothermal energy was valued at USD 7.4 billion. It’s projected to reach a whopping USD 12.51 billion by 2032. The investment dollars are piling up as Big Tech gets bullish on the baseload clean energy. Meta and Alphabet (the companies behind Facebook and Google) are listed among the growing number of Silicon Valley firms partnering with geothermal startups. Earlier this year, Cindy Taff, chief executive of geothermal company Sage Geosystems, told The Hill that “It’s going to be the decade of geothermal.” 

But while even the most fringe and emergent forms of energy are soaring to new heights from the AI boom, Big Oil is struggling to benefit from the windfall. Even as Wood Mackenzie pushes back peak oil projections to 2032, supermajors are resorting to layoffs and handing out dividends instead of reinvesting in expansion in what The Economist calls “a sure sign that Western oilmen are feeling downcast about their industry’s growth prospects.”

By Haley Zaremba for Oilprice.com

 

LME fines Japan’s Mizuho for rules breach

Reuters | October 31, 2025 | 

Stock image.

The London Metal Exchange said on Friday it had fined a unit of Japanese financial group Mizuho 265,000 pounds ($356,000) for a breach of rules following an investigation into alleged misconduct.

Mizuho Securities USA, a Category 2 LME member, failed to report the over-the-counter positions of two of its affiliates between September 5, 2022 and December 20, 2024, the LME said in a notice.

Exchange rules require members to report information about the OTC metals business of their clients, affiliates or themselves to the LME on a weekly basis.

Mizuho’s failure to submit the reportable OTC positions was due to “a gap in its internal system and controls”, breaching its obligations to establish and maintain appropriate and adequate risk management systems, the LME said, adding that Mizuho had since carried out remedial action.

The fine is part of a settlement with Mizuho that has been approved by the LME’s enforcement committee, said the notice from the LME’s head of market surveillance, Joe Morrison.

Mizuho declined to comment.

($1 = 0.7451 pounds)

(By Tom Daly; Editing by Kirsten Donovan)

 

OP-ED: Trump’s trade deals are reshaping America’s critical minerals future 

Brodie Sutherland | October 31, 2025 | 3

Shipping containers at the Port of Los Angeles. Stock image by Matt Gush.

The United States is entering a new era of resource security. With fresh agreements signed with Australia and Malaysia, and another on the horizon with Japan, the country is taking decisive steps to secure access to the critical minerals that power everything from electric vehicles (EVs) and renewable energy systems to advanced defense technologies.

These deals represent far more than trade diplomacy; they mark a strategic pivot toward independence in a market long dominated by China. For too long, America’s industrial and energy ambitions have been tied to a single point of global processing control. By asserting stronger partnerships with key Indo-Pacific allies, the US is signaling to the world that it will no longer rely on competitors to fuel its growth.

Now, for the first time in decades, these partnerships are laying the foundation for a more independent, resilient, and competitive future where US innovation is no longer constrained by foreign bottlenecks but fueled by reliable access to the resources that matter most. 

Strengthening US supply security and innovation

With these new agreements in place, the US is positioned to strengthen not only its access to raw materials but also its capacity to refine, process, and recycle them at home. Diversifying imports away from China gives American industries the stability they need to plan and invest with confidence.

By locking in commitments like Malaysia’s pledge to avoid export bans or quotas on rare earths bound for the US, and similar cooperative frameworks with Thailand, Cambodia, and now Australia and Japan, the country is building a supply network anchored in trust and transparency. This kind of coordination is essential for ensuring that future technologies—particularly in EV batteries, aerospace, and semiconductor manufacturing—have secure, ethical, and scalable inputs. 

Reduced exposure to Chinese export controls means more predictable pricing and greater certainty for investors, which in turn accelerates the development of domestic processing hubs and clean-energy technologies. The ripple effects extend across every sector that depends on critical minerals, meaning this shift is not simply about securing supply but rather rebuilding control over the industrial inputs that define the modern economy. By prioritizing allied cooperation and domestic capability, the US is laying the groundwork for a future defined by innovation, resilience, and true energy independence. 

A new era of opportunity

For US miners, these developments represent a long-awaited turning point. The clarity and certainty created by these trade agreements give the industry the stability it needs to grow responsibly and competitively. With dependable access to raw materials from trusted allies, American mining companies can focus on efficient extraction, high environmental standards, and value-added processing within North America.

At the same time, new policy alignment between trade and resource strategy is reducing barriers that once slowed investment and project development. Lower financing risk, faster permitting timelines, and renewed investor confidence are likely to follow, opening the door to new offtake partnerships and co-development opportunities with allied suppliers.

The economic potential is substantial, with billions in added sector value and thousands of new, high-paying jobs projected across key mining states such as Nevada and Wyoming. Beyond the immediate business gains, this momentum signals something larger: a transition from dependence to leadership. By aligning trade policy with industrial capability, the US is positioning itself at the center of a secure, allied mineral supply chain that strengthens national security, fuels clean energy growth, and makes resource independence not just an aspiration but a defining feature of America’s economic future. 

President Trump’s trade strategy has set the stage for a stronger, more secure future for American industry. These agreements are not just about access to minerals; they are about restoring control, confidence, and competitiveness to the US in this critical sector.

By fostering reliable partnerships, encouraging domestic investment, and prioritizing American production, the country is rebuilding the foundation of its industrial strength. From clean energy to advanced defense systems, every sector that depends on critical minerals stands to benefit from a supply chain rooted in trust, transparency, and shared prosperity.

Ultimately, the path ahead is clear: through continued collaboration with allies and bold investment in homegrown capability, the US can secure its place as the global benchmark for resource security and industrial innovation. 

* Brodie Sutherland is CEO of Patriot Critical Minerals Corp., and a geologist with over a decade of experience leading mineral exploration across 20+ countries.

Trump’s $8.5 Billion Effort to Secure a Rare Earths Supply Chain

By Felicity Bradstock - Nov 01, 2025

• The U.S. and Australia signed an $8.5 billion deal to boost critical minerals and rare earth projects, including new mining and refining facilities.
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• China currently dominates the rare earth sector, controlling over two-thirds of mining and nearly all magnet manufacturing capacity.
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• Despite progress, experts warn that developing alternative supply chains could take up to a decade, keeping the West reliant on Chinese materials in the near term.
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The United States is looking to develop new rare earth minerals supply chains to reduce China’s dominance of the sector. In October, President Donald Trump and Australian Prime Minister Anthony Albanese met at the White House to sign an agreement for the strengthening of the critical minerals and rare earths supply chain, with $8.5 billion in projects outlined. 

Rare earths are critical minerals that are used in a variety of applications, including the production of magnets for weapons platforms, semiconductor manufacturing, robotics, and electric vehicles. Currently, China is the largest producer of rare earth metals, dominating the global supply chain. China holds around 70 percent of the world’s rare earth metals, or 44 million metric tonnes of reserves, followed by Brazil with 21 million tonnes, India with 6.9 million tonnes, and Australia with 5.7 million tonnes.

As an ally with the United States, Australia is well-positioned to develop its rare earths market, with financial support from the North American country to help counter Chinese dominance. Following the meeting, Albanese said there would be three groups of joint projects between Australia and the U.S., including companies such as the U.S. aluminium firm Alcoa.

The deal reportedly includes an investment of $3 billion from the U.S. for mining and processing projects and outlines a price floor for critical minerals. The White House announced that it plans to invest in the construction of a gallium refinery in Western Australia with a capacity of 100 metric tonnes per year. It said that U.S. investments in Australia were expected to unlock deposits of critical minerals worth $53 billion.

President Trump told reporters, “In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them.” He also said that the U.S. is working with countries other than Australia to diversify its critical mineral supply chains.

However, the development of Australia’s rare earth metals market could take between five and seven years, according to sectoral experts. Meanwhile, China continues to contribute 90 percent of the world’s rare earths refining capacity, around 69 percent of global rare earth mining, and 98 percent of magnet manufacturing.

Following the deal between Trump and Albanese, China’s Ministry of Foreign Affairs, Guo Jiakun, responded by saying, “Resource-rich nations with critical minerals should play a proactive role in safeguarding the security and stability of the industrial and supply chains, and ensure normal economic and trade cooperation.”

Earlier in October, China’s Commerce Ministry announced expanded curbs on the export of rare earths, stating that it aimed to prevent the “misuse” of minerals in the military and other sensitive sectors. The Asian giant added dozens of pieces of refining technology to its control list and announced rules requiring compliance from foreign rare earth producers who use Chinese materials. This led many in the industry to raise concerns over the lack of diversity in the global supply and the potentially detrimental effect of China’s decision.

The rare earth market was valued at $6 billion in 2024, according to Goldman Sachs. The financial institution warned that a disruption of 10 percent in industries reliant on rare earths could lead to $150 billion in economic losses. It said that samarium, graphite, lutetium, and terbium would be extremely vulnerable to export reductions.

The bank said that Western producers, such as Lynas Rare Earths and Solvay, could alleviate the shortages, but dependence on China remains high. It emphasised the eight-to-10-year timeline to develop new rare earth mines and the need for advanced expertise and infrastructure, which most countries with mining potential would need to develop.

The U.S. government is not only looking to Australia to reduce its reliance on China, but is also discussing the possibility of establishing a strategic reserve of rare earths and supporting domestic producers with price controls and tariffs. During his trip to Asia this month, Trump also signed deals with Japan, Malaysia, Thailand, Vietnam, and Cambodia to diversify access to critical minerals.

This week, the U.S. and China reached a framework agreement that will halt the implementation of a 157 percent tariff on Chinese goods and could make way for a trade deal between President Trump and Chinese leader Xi Jinping when they meet. Little information has been released about the deal, but it is likely to include an agreement on rare earths. 

Despite the potential deal between the U.S. and China, the Trump administration is expected to continue to seek ways to diversify its critical minerals supply chain to reduce its reliance on China. Following several months of strained trade relations, the U.S. is expected to continue investing in its energy sovereignty by offering financial support to domestic companies and establishing deals with other world allies across a range of energy sources.

By Felicity Bradstock for Oilprice.com

 

Angola says national budget will not fund Endiama’s De Beers bid

Reuters | October 31, 2025 | 

(Image courtesy of De Beers)

Angola will not fund state-owned miner Endiama’s proposed acquisition of a stake in De Beers through the national budget, Finance Minister Vera Daves de Sousa said on Friday.

Endiama has bid for a majority stake in Anglo American unit De Beers, a source familiar with the matter told Reuters on October 24.

The southwest African country had initially indicated interest in a minority stake in De Beers, which has been put up for sale as Anglo restructures its asset to focus mainly on clean energy metal copper.

Asked how Angola plans to fund the proposed acquisition during a press briefing on the 2026 national budget, de Sousa said there was no provision for the share purchase in the spending plan for next year.

“So, let us assume that the entity (Endiama) has the courage to take this decision, because the funding will not come out of the national budget. That is all I can say,” she said.

Anglo values De Beers at $4.9 billion after recording $3.5 billion in impairments over the past two years.

Angola’s ambitions for De Beers could potentially trigger a standoff with neighbouring Botswana, which is also seeking control of the diamond producer.

Botswana – which currently owns 15% of De Beers and contributes 70% of its annual rough diamond production – considers the company a strategic national asset, despite a recent slump in prices that has badly hurt its economy.

(By Miguel Gomes, Nelson Banya and Sfundo Parakozov; Editing by Franklin Paul and Rosalba O’Brien)

 

Indonesia’s Amman Mineral moves a step closer to getting export permit

Reuters | November 1, 2025 | 

Credit: Amman Mineral

Indonesia’s energy ministry has backed copper miner Amman Mineral Internasional to export 480,000 dry metric tons of concentrate, the company said on Saturday, with the recommendation valid for six months from October 31.

Amman Mineral needs the backing to secure an export permit from the trade ministry, which said on Saturday Amman had yet to apply for one.

“With the resumption of copper concentrate exports, which had been suspended since early 2025, Amman will be able to prevent concentrate storage facilities from exceeding their capacity,” Amman said in a statement.

This would allow mining operations to continue, it added.

Since mid-2023, Indonesia has banned exports of copper concentrates and other raw minerals to encourage domestic processing of the metal.

However, Amman was allowed to export until December 2024, a date by which it was expected to commission a smelter to process concentrates into copper cathodes, used to make wires, cables and electronics.

But the smelter stopped operations temporarily in July and August this year after damage to its flash converting furnace and sulphuric acid plant units.

Repairs may finish in the first half of 2026, Amman said, adding that the smelter is operating partially now.

(By Stanley Widianto and Bernadette Christina; Editing by Muralikumar Anantharaman)

 

Study: South Africa-Europe Shipping Route Could Run on Ammonia by 2029

Harbor and iron ore pier at Saldanha Bay, South Africa (Hp.Baumeler / CC BY SA 4.0)

Published Nov 2, 2025 8:58 PM by The Maritime Executive

 

Despite the existing uncertainty in global regulations for clean shipping, some decarbonization initiatives are setting ambitious targets for transitioning to alternative fuels. One such example is the South Africa-Europe iron ore shipping route, which could feasibly deploy ammonia-fueled bulk carriers as soon as 2029 and scale toward full decarbonization by 2035. These findings are contained in a feasibility study by the Global Maritime Forum, produced in partnership with a consortium formed in 2023 to develop a green shipping corridor on the South Africa-Europe iron ore trade route.

The consortium includes Anglo American, CMB.TECH, Freeport Saldanha, Vuka Marine and Engie. The green shipping corridor being developed will link Saldanha Bay in South Africa’s Western Cape to the Port of Rotterdam in Netherlands. It will become one of the first Global South-to-North green shipping routes.

With South Africa advancing a national green hydrogen market, the maritime sector is seen to play a key offtake role. As a result, some major ports in the country are at different stages of developing green shipping fuel infrastructure. Saldanha Bay is one of the ports, offering a significant opportunity to cut emissions in the shipping sector as South Africa’s primary iron-ore export terminal.

Recently, the port appointed the Council for Scientific and Industrial Research (CSIR) to coordinate phase 1 of its Green Hydrogen Master Plan. The initiative is aimed at positioning Saldanha Bay port as a green hydrogen production and export hub. The project has been shown to be cost-competitive, especially with the conversion of green hydrogen to ammonia fuel.

According to the Global Maritime Forum study, the green hydrogen projects already underway near the ports of Boegoebaai, Saldanha and Walvis Bay are enough to meet the green corridor’s fuel demand. This includes the corridor’s high-demand scenario of 22 bulk carriers per annum by 2035. However, the study predicts that in the initial years of the green corridor operation, ammonia-fueled vessels will likely bunker in Rotterdam. As a major global fuels hub, Rotterdam is currently one of the most mature ports in terms of ammonia bunkering and safety frameworks.

In the meantime, Saldanha Bay has an opportunity to finalize infrastructure for green ammonia production. Based on its strategic location and significance in bulk shipping, Saldanha Bay by 2035 is poised to become an important global bunkering hub for green ammonia.

“However, to help Saldanha Bay transition quickly, blending public and private funding can unlock investment in infrastructure and reduce the risks of early projects,” said Shannon Neumann, Associate, Investment Facilitation at Freeport Saldanha.

Top image: Harbor and iron ore pier at Saldanha Bay, South Africa (Hp.Baumeler / CC BY SA 4.0)

South Africa Halts Plans for Establishing a Shipping Line

Back to the future: South Africa's previous state-owned shipping line operated four boxships during the apartheid era, including SA Sederberg, seen here in Hamburg circa 1986 (Wolfgang Fricke / CC BY SA 3.0)

Published Nov 2, 2025 8:32 PM by The Maritime ExecutivE

South Africa has temporarily shelved plans for establishing a shipping line to allow for further consultations. Early last month, the Cabinet approved the withdrawal of the Merchant Shipping Bill, which was tabled in parliament in May 2023. The Bill contained provisions for reviving South Africa’s maritime sector, including cabotage regulations to develop the country’s merchant fleet. This would be operated under a state-owned entity referred as the South African Shipping Company (SASCO).

In approving the withdrawal of the bill, the cabinet said that the Department of Transport will now have time to finalize consultations with different stakeholders. The discussions will be carried out under the National Economic Development & Labor Council (NEDLAC). The body is mandated to facilitate public participation for government bills in cooperation with trade groups and community organizations.

Early this year, major industry groups in the South African maritime sector voiced their opposition to the Merchant Shipping Bill. The lobbyists including Exporters Western Cape (EWC) argued that the bill skipped the NEDLAC process, hence lacking industry input. A Parliamentary Monitoring Group (PMG) report dated 20 May 2025 also indicated that the Bill was not submitted to NEDLAC, which is against parliamentary procedures.  

The bill’s proposal to establish SASCO also proved contentious with different stakeholders. For instance, the South African Association of Freight Forwarders (Saaff) said that the existing port infrastructure could easily be overwhelmed by cabotage regulations. The hub and spoke port model requires well-developed and efficient terminals to avoid backlogs along the transport chain. In the case of South Africa, a port such as Durban handles over 60% of the country’s containerized cargo. This means the port could be easily overwhelmed in a scenario where it is made as a hub port under the cabotage regulations proposed by the bill.

“While the development of a national shipping capability is broadly supported, implementing a restrictive cabotage regime without understanding its full economic impact risks unintended consequences,” added Saaff.

In addition, some observers doubted the government’s ability to run a national shipping line, recalling the era of the previously state-owned Safmarine. Formed in 1946, Safmarine was acquired by the Danish ocean carrier Maersk in 1999, at a time when the global shipping industry was undergoing massive consolidation.

Top image: SA Sederberg, seen here in Hamburg circa 1986 (Wolfgang Fricke / CC BY SA 3.0)

 

Saudi’s RSGT Finalizes 30-Year Lease of Djibouti’s Tadjourah Port

iStock / Anil_Mukundan

Published Nov 2, 2025 9:55 PM by The Maritime Executive

 

Middle East-based terminal operators continue to expand their footprint in Africa, with governments in the region opening up ports to private investors. Last week, Saudi Arabia’s Red Sea Gateway Terminal (RSGT) signed a 30-year concession agreement with Djibouti Ports and Free Zones Authority (DPFZA) to operate and develop Port of Tadjourah. The concession builds on a memorandum of understanding (MoU) signed by the two parties in March. The MoU set out cooperation between Djibouti and Saudi Arabia in maritime and logistics sectors.

The Tadjourah port was commissioned in 2017 as part of Djibouti’s government plan to expand transport infrastructure in northern Djibouti. The port was also built to facilitate potash exports from Ethiopia, mined in the Danakil Depression of the Afar region. Other Ethiopian general cargo exports processed at the port include livestock and sesame.

Under the 30-year concession deal, RSGT has pledged to transform Port of Tadjourah into a multi-purpose terminal of choice in the region. The operator projects that in the next few years the port will reach a handling capacity of five million tons per year, enhancing its status as a gateway for Ethiopia’s general cargo imports and exports.

“The collaboration between RSGT and DPFZA in the development of the Port of Tadjourah will further consolidate Djibouti’s strategic position as a leading logistics and maritime hub in the Horn of Africa and the Red Sea,” said DPFZA.

In addition, the RSGT concession comes at a time there are plans to expand multi-modal connections to Tadjourah port. Last week, the Ethiopian Railway Corporation announced plans for a $1.58 billion standard-gauge railway intended to connect Northern Ethiopia to the Red Sea ports of Tadjourah, Assab and Massawa. These ports offer the closest sea-access for Ethiopia’s Afar and Tigray regions, which are seeing growth in the potash mining sector.

The proposed extension of the railway to Tadjourah port is part of the existing Ethiopia-Djibouti line completed in 2017. The route is currently served by the Tadjourah-Balho-Mekelle highway. The northward expansion of the Ethiopia-Djibouti railway to reach Tadjourah will go a long way in accelerating growth for the port.

 

Caledonian Maritime Assets Relies on ABB to Power All-Electric Ferries

ABB, maritime, marine, maritime industry, technology, shipbuilding, Remontowa Shipbuilding S.A., Caledonian Maritime Assets Ltd, Port Askaig, ports, ferries, ferry terminal, shore power

Published Nov 2, 2025 7:32 PM by The Maritime Executive

[By: ABB]

ABB has won an order with Poland-based Remontowa Shipbuilding S.A. to supply power distribution and propulsion systems featuring ABB’s Compact Onboard DC Grid™ for seven all-electric double-ended ferries. The vessels are scheduled for delivery to Scottish owner Caledonian Maritime Assets Ltd (CMAL) between late 2027 and early 2029. ABB has also been selected as the sole supplier responsible for delivering shore power solutions across multiple CMAL ferry terminals, beginning with Kennacraig and Port Askaig.  

As part of the ship owner’s Small Vessel Replacement Programme aiming to achieve a substantial renewal of the small vessel fleet and associated port upgrades, the 50-meter ferries will bring enhanced resilience and sustainability to the CMAL fleet . They will serve nine routes in the Clyde and Hebrides region on Scotland’s west coast, each transporting up to 200 passengers and 24 cars at a time – with the exception of one vessel, which has capacity for 250 passengers and 16 cars.

"We appreciate ABB’s expertise in power, propulsion and electrification. Combined with our excellence in shipbuilding, we will make this a great set of vessels to advance low-emission transportation across the western Scottish ferry network,” said Michal Jaguszewski, Director of Commerce, Remontowa Shipbuilding S.A.

Designed for vessels with significant space limitations, ABB’s Compact Onboard DC Grid™ solution offers a distributed configuration that simplifies system integration and enhances efficiency. The system comprises a robust, short circuit-tested marine DC switchboard and wall-mounted HES880 mobile inverters. Flexible and highly efficient operations are secured through a seamlessly integrated power and energy management, alarm and monitoring system. Integrated with ABB’s new AXME Marine Motors, the comprehensive solution combines high power density and light weight in a small footprint. Developed specifically for small to mid-sized electric and hybrid vessels, the Compact Onboard DC Grid™ blends proven durability, high performance, and installation flexibility in one compact solution.

Once operational, ABB’s shore connection system will allow berthed vessels to turn off their engines and connect to the local electrical grid, thereby significantly reducing CO? emissions and decreasing noise pollution in port areas. As a result, air quality in the area will improve, and the emission reductions will support CMAL’s long-term environmental goals.

Co-funded by the Scottish Government, the project represents an important step in the United Kingdom’s efforts to decarbonize its ports by eliminating emissions from docked vessels. 

“These ferries will bring increased capacity and the benefits of clean, fully electric propulsion to island and rural communities in Scotland”, said Jim Anderson, Director of Vessels at CMAL. “ABB’s experience in system integration and ensuring ship electrification and shore connection work efficiently together is well placed, and we look forward to taking delivery of the vessels.” 

“This order confirms the ability of our Compact Onboard DC Grid™ to meet the power requirements of our short-distance shipping customers in a distributed design suited to smaller hulls,” said Juha Koskela, President, ABB’s Marine & Ports division. “By enabling the efficient and flexible electrification of inland, coastal, and short-sea ships, the system makes an invaluable contribution to maritime decarbonization. Additionally, this collaboration strengthens ABB’s position as a global leader in shore connection technology and reflects the growing demand for cleaner port operations worldwide.”

The products and services herein described in this press release are not endorsed by The Maritime Executive.