Almajdouie Group’s logistic companies have responded to the global economic crisis with strategic plans and have succeeded in blunting the effects of international recession by seizing opportunities coming their way, a senior group official has said.

“Economic recession has affected every business including logistics but we are certain that this event will not greatly affect us if we plan effectively, and that is what Almajdouie Logistics is doing,” said its vice president SI Mustafa.

Logistic firms within the group were kept busy implementing orders they bagged before the recession began and new contracts won as the recession wore on.

The group gave a performance rundown of their operations.

“Almajdouie Continental Freight (CFC) was able to seize some opportunities to grow. New solutions were formulated and tried, which eventually benefited both the clients and CFC,” Mustafa commented.

CFC has successfully handled several contracts in recent months. It completed the Al Jouf cement plant project in cooperation with Sinotrans of China and is currently implementing the RCC project.

“Looking ahead, CFC is positive it will attract more business as we have motivation amidst the tough situation we are facing. CFC acknowledges the fact it will not be that easy but that if it executes its projects and plans in the right manner it will come out a stronger company,” observed Mustafa.

Alternative strategies
For Almajdouie Heavy Lift Transport & Engineering (MHL), 2009 has been a big challenge as many projects were shelved or delayed. The company managed, however, to carry on, focusing on alternative strategies such as maintenance or refurbishment of equipment, manpower training and systems development. In an optimistic vein, it plans to buy equipment in anticipation of winning projects in 2010 and beyond.

One approach the company followed was to target projects beyond those relating to industrial construction.

Over the past several months, MHL’s major achievement was the handling of cargo for  the Marafiq independent water and power project (IWPP), Saudi Kayan, Ma’aden Ammonia, Meedco, NCP, Zamil Steel, Alfanar and locomotive networks, among others.

Looking ahead, MHL expects to handle additional contracts including the Jubail Export Refinery, Karan project, Manifa Gas Facilities, Riyadh Refinery, Makkah Railway, Yanbu expansion, Petro Rabigh expansion and the Ras Tanura integrated petrochemical complex.

“Under one roof we offer diversified services, which give us the cutting edge to prosper. We also own all the equipment in our facilities,” remarked Mustafa.

As in the case of MHL, Almajdouie Transport (MTR) faced the same challenges during 2009 but the year was also a rewarding one as it was fortunate to be granted major road haulage work by such parties as Petro Rabigh, Yansab and Al Waha.

MTR acquired a wide and easily accessible terminal inside Tusdeer’s Jeddah Islamic Port concession which serves as the midpoint operation for Western Region projects. It is also using the existing Khumra Terminal.

The company has enrolled workers from various nationalities and brought in 500 new vehicles to the existing 1,000 trailer units earning it the title of the largest transporter in Saudi Arabia. MTR was named “Best Road Hauler in the Middle East” by the organisers of the Middle East Logistics Awards in Dubai.

Mustafa: battling the effects of global recession

The company is hopeful that in 2010 all projects will be in full swing and it will maintain its superiority in the transport sector through the implementation of gigantic projects as well as by continuing to serve long-time business partners such as Yanpet, Petrokemya, Ibn Zahr and Sabic headquarters.

The entre MTR team is hard at work to ensure delivery schedules are met and that it does so in the safest possible way. It has accomplished “system improvements” in all areas for enhancing customer satisfaction.

Momentum gained
Notwithstanding the global financial crunch, Almajdouie Logistics and Distribution (MLD) was able to add several prestigious companies to its clientele list. “MLD was the first company in the region to offer 3PL services. Impressed by its performance in the previous year, many clients decided to renew and extend their contracts,” said Mustafa. Those that did so were Saudi Fisheries Co, Sigma Paints, Castrol, the Hana Water Project, Saudi Xerox and Hungry Bunny. 

Additionally it was called upon to provide 3PL services kingdom-wise to Rabea Foods and the Anmiantit Group. These engagements necessitated an increase in the fleet strength.

MLD highlights that it uniquely caters to its customers through the creation of a flexible and economical supply chain and logistic solutions all of which have given it the leading edge in the market. More than 350 dedicated trailers are on the road in response to demand.

Another group outfit, Almajdouie PSC Heavy Lift Co Ltd, has managed to stay in control and be in the lead. Based in Bahrain, the company is a joint venture of the Almajdouie and Fagioli groups and specialises in multi-modal transportation and the lifting of super-heavy cargo.

With the support of regional facilities in Dammam, Abu Dhabi and Kuwait, the company has managed to occupy a top position in the handling of complex engineered items, completing its responsibilities on budget, safely and on schedule.

Recent highlights include:
• The 12 km inland transportation of nine units of 1,800-tonne   evaporators to the Marafiq IWPP site and installation of   the same.  The cargo had to be partly routed through a residential area and involved coordination with the local   government authorities including those in charge of roads, bridges and utilities.

• Transportation across 160 km from Jubail to Ma’aden of a carbon dioxide absorber weighing 518 tonnes and a 413-tonne HP flash vessel. The cargo was moved safely and swiftly and at temperatures of over 40 deg C along the distance, possibly the longest haul in the Middle East involving self-propelled transporters.

Almajdouie PSC has enjoyed rapid expansion all over the Middle East while gaining a reputation for quality and innovation. This culminated in the recent award of important projects.

One of the projects is the Al Dur IWPP in Bahrain. Almajdouie PSC is handling the project logistics of approximately 250,000 tonnes of general, heavy and oversized cargo including multi-modal. It receives material at the Khalifa Bin Salman Port and delivers to site on board self-propelled, conventional and lowbed trailers and carries equipment of up to 250 tonnes by barge and RoRo craft.

The second project is the Shuweihat S2 IWPP in the UAE. It was awarded two contracts for the new phase of the desalination and power project in Abu Dhabi which were in addition to work it was assigned for the earlier phase. The first relates to RoRo handling, inland transportation and delivery of six 4,350-tonne evaporator units that are more than 100 m long. The project commenced recently and two units have already been delivered. The second contract entails delivering to site major power plant components such as HRSGs and transformers of up to 300 tonnes. The equipment is to arrive at Port Zayed by barge and RoRo vessels.

The Almajdouie terminal in Tusdeer’s concession area at Jeddah Islamic Port

“This year the company expanded rapidly and expects to win other major plants in the petrochemical and power sectors that are to be built in the next few years in the region,” said Mustafa.

Total logistics
Rabigh Petrochemical Logistics (RPL), a joint venture between Almajdouie and Sumitomo Warehouse Company of Japan, is busy with PetroRabigh in the handling of total logistics. RPL has started delivering products to PetroRabigh clients in the Middle East and the Far East. The coming months will be challenging as the company will be producing at full capacity. But RPL is fully geared up with all the necessary equipment and a team of more than 600.

Another Almajdouie logistics firm within Almajdouie Group is MDR Logistics, a joint venture between the group and De Rijke of Europe. Within a short span of time it has developed as the largest petrochemical logistics company not only in Saudi Arabia but also in the whole of the Middle East and is acknowledged as the second largest of its kind in the world in terms of volume. MDR is currently handling Ibn Zahr, Yansab, Natpet and Petokemya. It was recently awarded the Saudi Kayan project.  MDR moved swiftly, deploying a dedicated project manager and a pre-commissioning team within a week of winning the contract. MDR is also operating the largest terminal of its kind in the region, some 500,000 sq m in area at Jubail.

A subsidiary particularly affected by the ongoing economic crisis is Maxx Logistics, a Dubai-based warehousing company. It is slowly building a customer base and hopefully 2010 will be a good year for it, Mustafa says. The facility at Dubai is state of the art and one of the best in Dubai, he adds.