Maersk Saudi Arabia and King Abdullah Port have signed a deal to set up Maersk Integrated Logistics Hub, a non-bonded warehouse, to provide a comprehensive range of logistics services to local petrochemical exporters.
The new facility is expected to play an important role in facilitating the storage of export cargo and enable pallet handling as well as stuffing and stripping. Located 2km from the port’s container terminal, and directly adjacent to the customs inspection zone, its strategic location is expected to benefit local exporters by saving time while exporters based in the Red Sea industrial city of Yanbu will now have to truck their cargo only 200 km for loading compared to almost 350 km to Jeddah.
Maersk is initially investing in 100,000 m2 of warehousing space during the first two years of operations at the hub. Annual throughput is expected to reach 1 million tonnes by the third year as demand from exporters grows.
Mohammad Shihab, Managing Director, Maersk Saudi Arabia, commented, “The Maersk Integrated Logistics Hub at the King Abdullah Port is an important milestone on our journey of providing logistics solutions for our customers in Saudi Arabia. The multi-carrier origin hub for petrochemical exporters is an affirmation of our commitment to serving Saudi Arabia’s trade and simplifying our customers’ supply chains.”
Jay New, CEO of King Abdullah Port, said he believed the strategic partnership between Maersk and King Abdullah Port represents an important step in raising the efficiency of the Kingdom’s logistics sector. He added, “We are delighted to partner with the world’s leading integrated container logistics company to establish the Kingdom’s first petrochemical hub. We are confident that this will significantly enhance the port’s outstanding operational capabilities by enabling us to provide sophisticated services seamlessly, amid the challenges of the current economic situation and the rapid changes in the industry. The hub will also help our exporters to achieve considerable savings in terms of time and costs, besides significantly reducing risks, helping them serve international customers better.”