Almajdouie Logistics expects another strong performance this year with renewals of polymer and FMCG deals and new EPC contracts involving refineries, petrochemicals and utilities.

SI Mustafa, Almajdouie Logistics vice president, told Gulf Industry revenues surged 24 per cent in the first nine months of this year compared with the same period in 2011. “We exported over 350,000 teu and handled a similar number of imported containers during the period. Overall we handled over 9 million tonnes of polymers and FMCG besides more than 1.5 million freight tonnes of project cargo. The ratio of heavylift to transport was 60:40. We expect to reach around 2 million freight tonnes of project cargo in 2012,” the official said.

“We are in the process of re-engineering Almajdouie logistics to bring all activities under one name and one oganisation. We will concentrate more on streamlining operations and on cost efficiency rather than growth. However, based on our expertise and knowledge, we expect organic growth in project logistics and the supply chain. Polymer volumes may increase by around 2 to 3 per cent and volumes in other sectors by around 10 per cent in 2013.

“In this era of globalisation, Saudi Arabia is witnessing growing demand for logistics services with companies from diversified sectors now concentrating on managing their supply chain mechanisms in better ways and deepening market penetration. FMCG is one of the major sectors in our area of focus for the coming years because it has significant scope for growth.”

Mustafa said the focus from 2014 would be growth in the supply chain segment in the GCC region and in the following five years it would aim to double revenues as a whole.

The company’s know-how and proven track record coupled with aggressive marketing would foster growth.

Currently Almajdouie Logistics is engaged with eight petrochemical companies in Saudi Arabia for the provision of complete supply chain services. In the oil and gas, power and water sectors, it is executing 18 major projects while in the FMCG sector it is handling a wide spectrum of products including beverages, water, dairy products and food. One of the industrial products whose logistics it is involved with is paints.

CONTRACT WINS
It recently renewed a contract with its longtime partner, Sabic firm Yanpet, for another three years. The new contract requires it to handle an additional volume of 40,000 tonnes in the Saudi Western Region along with customs clearance, transportation, remote storage and container stuffing. Yanpet is a Sabic-Exxon Mobil joint venture with annual production of 1.4 million tonnes of petrochemicals. Almajdouie has been working with Yanpet for the last 13 years. Almajdouie also renewed two contracts with other Sabic affiliates that have a combined annual output of more than 3 million tonnes.

The company’s supply chain services to the polymers and liquid industry include silo and bagging management, production, palletising, warehousing planning and management, stuffing of containers, transportation to ports and custom clearance for shipping.

Almajdouie has been successful in winning packages relating to construction projects, these coming from EPC contactors working on projects including Sadara, Yanbu Export Refinery, Shaybah Refinery, Maaden Steam Plant and power plants Qurrayyah, Ras Al Khair, Shoaiba, Marafiq Yanbu 2 and Rabigh and the Yanbu MED desalination plant. It has won a number of packages from Korean EPC contractors.

SIGNIFICANT MOMENTS
The company had several unusual heavy lift moments this year including moving two 1,800-tonne evaporators in Yanbu, three 800-tonne evaporators in Ras Al Khair and four 1,000-tonne reactors in Yanbu. It transported five other evaporators in Ras Al Khair, each of 4,891 tonnes, and which won an entry in the Guinness World Records book.

2012 was also significant in that Almajdouie Logistics was declared the winner of the “3PL service provider of the year” award for rendering outstanding services. The award was presented at the Sixth Annual Supply Chain and Transport Awards-Scata 2012, held at the Jumeirah Emirates Towers Hotel in Dubai. Mustafa had the distinction of being ranked sixth in the Logistics Middle East Power List which features the most influential leaders in the region’s logistics sector.

Mustafa asserted there were no plans at the moment for creating joint ventures “as we are merging five companies into one which is a difficult task but one that is moving in the right direction.”