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Aramco, DHL seek to establish a joint logistics center in Saudi Arabia

 

Saudi Aramco has signed a shareholder agreement with DHL International to establish a new global procurement and logistics center in Saudi Arabia, according to a statement issued by the company on Monday.

 

The center, which is the first of its kind in the region, meets the needs of companies operating in the industrial, energy, chemical, and petrochemical sectors.

Providing Procurement & Supply Chain

The joint venture, which is expected to be operational by 2025, aims to provide procurement and supply chain services to companies operating in various industry sectors, including energy, chemicals, and petrochemicals.

 

The project is expected to initially focus on the Kingdom, with the possibility of expanding its scope of services in the future to include the Middle East and North Africa region.

 

The joint venture will bring together Saudi Aramco‘s industrial energy supply chain system and DHL’s logistics services for procurement, warehouse and inventory management, transportation, and reverse logistics.

Huge electronic market

The project will serve as a vast electronic market serving companies operating in the energy and chemicals sector in supplying their needs of equipment, industrial materials, and spare parts, according to Saudi Aramco President and Chief Executive Officer, Amin Al-Nasser.

 

Al-Nasser expected that the project would reduce operating costs for the beneficiary companies and contribute to reducing carbon emissions resulting from their work, “we also hope that it will enhance economic goals and help accelerate the pace of industrial growth in the Kingdom.”

 

DHL CEO Oscar de Boeck said that his company aims, through working with Saudi Aramco, to “provide regional and multinational companies operating in these sectors with a strong global logistics network, promote positive economic growth, and encourage them to adopt sustainable activities.” “.

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