Maersk is initially investing in 100,000 sq m of warehousing space during the first two years of operations at the hub
Maersk Saudi Arabia has entered into a petrochemicals partnership with King Abdullah Port
The pair signed a deal to set up Maersk Integrated Logistics Hub, a non-bonded warehouse, to provide comprehensive logistics services for petrochemical exporters, Maersk said in a statement.
It aims to cover an important logistical requirement of exporters who already have access to Maersk’s solutions such as landside movement of cargo, customs clearance, and ocean logistics. It will also serve as the focal supply chain solution, primarily for Saudi Arabia’s petrochemical exporters. The deal is part of a broader push to boost the competitiveness of Saudi Arabia’s logistics sector.
“The Maersk Integrated Logistics Hub at the King Abdullah Port is an important milestone on our journey of providing integrated logistics solutions for our customers in Saudi Arabia, said Mohammad Shihab, managing director of Maersk 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.”
Exporters based out of the manufacturing hub of Yanbu will now have to truck their cargo only 200 km for loading onto vessels, compared to the almost 350 km to Jeddah, earlier.
It has also reduced the time span from receiving the booking to loading the material on the vessel to six to eight days, compared to between 14 and 18 days before.
Maersk is initially investing in 100,000 sq m of warehousing space during the first two years of operations at the hub and the annual throughput is expected to reach 1 million metric tons by the third year as the demand from exporters grows over the years, Maersk said.
Located on the Red Sea coast in King Abdullah Economic City, King Abdullah Port is the Middle East’s first privately owned, developed and operated port. Once fully completed it will be capable of handling 25 million TEU, 1.5 million CEU and 25 million tons of clean bulk cargo annually.