Transportation and logistics services provider United Gulf Group (UGG) is on an ambitious plan to expand across the GCC region by opening hubs at main ports, especially Dubai.

As part of its growth strategy the company aims to further expand its business territory by identifying new market demands.

“We’re planning to develop our business across the GCC area to tap the growing market,” Ahmed M Ifteiha, general manager, said, adding, “It will also help us override the current crisis.”

UGG is currently part of a road transport project involving a 1,000 km logistic operation between Turaif in Saudi Arabia and Jordan.

Despite a drop in volume this year, UGG is poised to overtake last year’s sales with its half-yearly figure topping SR20.4 million ($5.4 million), for the period ending June 2009. Its 2008 sales were valued at SR37.2 million and in 2007 the figure was SR43.2 million.

Ifteiha attributes the drop in volume to the financial crisis, tight competition, an increase in the number of transporters and cross border policies.

The volume handled was higher at 831,848 tonnes in 2007 when compared with 794,878 tonnes in the previous year.

The volume stood at 317,863 tonnes for the half-yearly period ending June 2009.

The company’s services across the GCC region include overland transportation of heavy industry products, customised logistics management, overland transportation of bulk chemicals and petroleum products, online tracking of consignments, clearing and forwarding activities and in-house fleet maintenance and repair of heavy vehicles.

Its supply chain management covers key activities like procurement (global network), polymer blending and silo management, product packaging operations, warehousing and yard management, container management, shipping and dispatch, import and export operations, customs clearance management and equipment supply and maintenance.

“We don’t do just transportation, but also manage logistics,” say company sources. “The ability to design and manage innovative supply chain solutions helps us provide customers with a flexible, reliable and competitive service,” they add.
UGG’s logistics have been built around its technological strength. Operations are managed by ERP (Enterprise Resource Planning)-based software, enhancing the efficiency of operations and productivity. Consignments are controlled and monitored through GPS, with the facility to track them online through GPRS.

Besides this, the company has trucks with a faster turnaround time and customised solutions for transportation, storage and distribution.

UGG’s main customers include United Gulf Steel Mills Company (UGS) and Modern Décor & Wood Products Company (Modecor).

UGS is a leading medium section rolling mill in the GCC located at Jubail Industrial City in Saudi Arabia. The mill is designed to produce up to 450,000 tonnes per annum of structural steel angles, flat bars, beams, channels and round and square bars in a wide range of sizes.

Modecor is a producer of decorative surfacing material and is also located at Al Jubail industrial city. Modecor manufactures and markets decorative laminates, thermo-fused melamine faced panels and melamine edge bands. It can produce 10 million sq m of thermo fused melamine faced panels and 5 million sq m of laminates annually.

UGG’s main customers also include: Dorrat Al Wadi Trading, RNA Resources, Dubai; Fal World Express and Middle East Battery Company.

Its shareholders are Mazen Kalifa Allahiq Al Nuaimi, Saudi Arabia, and Mohammed Jalal & Sons Co, Bahrain.