Saudi Aramco signed a new agreement with DHL, the global logistics services company, to establish the first global center for logistics services in the region, in the Kingdom.
Today, Monday, March 20 (2023), the popular and integrated Saudi company in the field of energy and chemicals announced the signing of a shareholder agreement to establish the global center, with the aim of contributing to enhancing supply chain efficiency and sustainability, according to a statement on its official website.
The first global center for logistics services in the region, jointly between Aramco and DHL, is scheduled to meet the needs of companies operating in the industrial sectors, energy, chemicals and petrochemicals, according to what was seen by the specialized energy platform.
The world’s first logistics center
The project of the first global logistics center in the region – which is expected to be operational by 2025 – aims to provide integrated and reliable procurement and supply chain services to companies in the industrial, energy, chemical and petrochemical sectors.
It is expected that the project will initially focus on the center’s activities in Saudi Arabia, with the possibility of expanding its services in the future to include the Middle East and North Africa region, according to the information obtained by the specialized energy platform.
The project combines Saudi Aramco’s industry-leading energy supply chain system, and DHL’s global expertise in the field of logistics services, with the aim of adding value to meet procurement services, warehouse management, inventory, transportation, and reverse logistics services.
The project also aims to achieve best industrial practices in procurement and supply chain management, in addition to adopting more sustainable solutions in the field of supply chain, transportation and warehousing.
A huge electronic platform for services
The President and Chief Executive Officer of Saudi Aramco, Engineer Amin Al-Nasser, said that the company is proud of signing the agreement to establish a company based on an innovative business model, through which a platform is established that is a huge electronic market to serve companies operating in the energy and chemicals sector, to supply their needs.
According to Al-Nasser, the first global center for procurement and services in the region will focus, in its first phase, on Saudi Arabia, with the possibility of extending its business at a later time to serve companies in the Middle East and North Africa region, according to statements seen by the specialized energy platform.
He added, “The project is based on the strengths of Saudi Aramco, which is characterized by a large and reliable system for procurement and warehouse management to meet projects and operational works, in addition to the strengths of DHL, which has global experience in the field of shipping and logistics services.”
He explained that the project will be a world-class integrated center, equipped with artificial intelligence and high digital technologies, to allow Saudi Aramco and other companies to purchase industrial equipment and spare parts from the electronic market efficiently and quickly.
Al-Nasser expressed his hope that the project would represent a qualitative addition to the supply chain and logistics services in the Kingdom, especially since it is expected to reduce the operating costs for the beneficiary companies, and reduce carbon emissions resulting from their work.
Global logistics network
In turn, DHL CEO Oscar de Boeck said that the company aims, through the agreement, to strengthen its business and its logistics network throughout the Kingdom of Saudi Arabia and the Middle East and North Africa region, according to statements seen by the specialized energy platform.
He explained that the company seeks to expand its presence in the industrial sector, as it aims, by working with Saudi Aramco to establish the first global center for logistics services, to provide regional and multinational companies with a global and strong logistics network that promotes positive economic growth.
The project is expected to contribute, through the latest technology and digitization, to reducing costs and increasing efficiency, as it represents the culmination of several years of cooperation between Saudi Aramco and DHL, and aims to bring about a quantum leap in inventory management and logistics services, business expansion, and job creation. .
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