Saudi petrochemical maker Sipchem inks integrated logistics solutions agreement with Maersk
The two parties will collaborate on ocean transportation and storage through the King Abdullah Port integrated logistics park and Sipchem will export its products to wider international markets
Sipchem has signed an agreement with A.P. Moller – Maersk (Maersk) in Saudi Arabia that will see the two parties collaborate on ocean transportation and storage through the King Abdullah Port integrated logistics park. Through this agreement, Sipchem will export its products to wider international markets.
Commenting on the agreement, Sipchem's Vice President – Commercial, Eng. Mater Aldhafeeri said: "This new collaboration with Maersk, a leading integrated logistics company, reflects Sipchem's great interest in bringing its diverse range of products to a wider global market through ports, logistic hubs, and new shipping lines and sea lanes. This new business direction will see us take full advantage of the Kingdom's unique geographical position, which has helped make it a major global trade hub. Capitalizing on the port's capabilities also reflects our commitment to furthering the Kingdom's broader Vision 2030 ambitions for global trade and commerce."
The agreement to him is "a prime example of Sipchem's long-term growth strategy in action, which aims to develop and upgrade commercial performance and open new avenues for global market growth and neighboring African markets in particular at this stage."
Mohammad Shihab, Managing Director of Maersk Saudi Arabia, commented: "We are committed to delivering end-to-end solutions for our customers that reduce the complexity of their supply chains." He added: "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 their speed-to-market rates through reduced cargo handovers and single-window access to multiple logistic solutions."
Jay New, CEO of King Abdullah Port, said: "In keeping with our commitment to contributing to the maritime shipping-focused objectives of Vision 2030 and the National Transport and Logistics Strategy, we have a strong emphasis on further strengthening King Abdullah Port's advanced capabilities and enhancing its world-class offerings leveraging the unique strengths of our strategic partners. Our collaboration with Maersk to establish the Kingdom's first petrochemical hub at the port was an extension of this strategy and we are proud that our collective effort has been paying off with local petrochemical companies increasingly choosing to use the facility to export their products. 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."
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 cost-effective manner. The signing of this agreement reflects the company's role as a leading contributor to the growth of the Saudi export market and the national economy.
Further consolidating its leadership in the ports sector on the global level, King Abdullah Port was in May 2022 ranked first among the most efficient container ports in the world in the 2021 Container Port Performance Index report published by The World Bank and S&P Global Market Intelligence. The port improved its ranking from second place last year as a result of its efforts to achieve increased operational efficiency, quality controls, and infrastructure development and management. Recently, the port reached 15 million TEU in container throughput, a stellar achievement in under 9 years since the launch of its container terminal.