Petrochemicals producer Sipchem has signed an agreement with A.P. Moller – Maersk in Saudi Arabia that will see the two parties collaborate on ocean transportation and storage through King Abdullah Port’s integrated logistics park. The partnership is part of Sipchem’s plans to export its products to more international markets, including neighbouring African countries in particular.
Mohammad Shihab, Managing Director of Maersk Saudi Arabia, commented: “Through this partnership, Sipchem will be provided with cargo storage options at our integrated logistics park and gain access to King Abdullah Port’s Ocean network. We will help Sipchem improve speed-to-market rates through reduced cargo handovers and single-window access to multiple logistic solutions.”
This agreement aims to strengthen Sipchem’s strategic position amongst regional and international petrochemical producers, enabling it to market its products worldwide in a timelier and more cost-effective manner.
King Abdullah Port has been collaborating with Maersk to set up the Kingdom’s first petrochemicals hub and more local petrochemicals companies are now using the facility to export their products. Jay New, CEO of King Abdullah Port, added: “We are confident that Sipchem will tremendously benefit from the market-leading services King Abdullah Port and the Maersk Integrated Logistics Center provide, while this agreement translates to further growth in our business and an increase in Saudi Arabia’s exports.”