Maersk Saudi Arabia and King Abdullah Port partner to build petrochemical hub

maersk saudio

A.P. Moller-Maersk (Maersk) Saudi Arabia has entered a strategic partnership with King Abdullah Port to develop a petrochemicals hub in the region.

As part of the partnership, both the entities signed a deal to set up Maersk Integrated Logistics Hub, a non-bonded warehouse, to provide comprehensive logistics services and benefit local petrochemical exporters.

The Maersk Integrated Logistics Hub at King Abdullah Port will 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, offering an integrated logistics service.

Maersk is initially investing in 100,000 sq m of warehousing space during the first two years of operations at the hub, to cater to the annual throughput that will reach 1 million metric tons by third year as demand from exporters grows over the years.

The hub will serve as the focal supply chain solution, primarily for Saudi Arabia’s petrochemical exporters, through the large space allocated for handling and storing cargo

Located within a two-kilometre radius from the terminal yard and directly adjacent to the customs inspection zone, this hub’s strategic location will greatly benefit the exporters by saving time.

Most of the exporters based out of the manufacturing hub of Yanbu have had to truck their cargo almost 350 km to Jeddah for loading onto vessels. The Maersk Integrated Logistics Hub at King Abdullah Port reduces the distance to 200 km.

The reduction in trucking will also positively contributing towards environmental sustainability through reduced emissions.

The agreement was signed by Mohammad Shihab, Managing Director of Maersk Saudi Arabia, and Jay New, CEO of King Abdullah Port, in a ceremony held at King Abdullah Port.

Shihab commented, “The Maersk Integrated Logistics Hub at the King Abdullah Port is an important milestone on our journey of providing logistics solutions for our customers in 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.”

The establishment of the hub is part of a major initiative aimed at increasing the performance efficiencies and competitiveness of Saudi Arabia’s logistics sector.

New added, “The strategic partnership between Maersk and King Abdullah Port is an important step in raising the efficiency of the Kingdom’s logistics sector and boosting our capabilities in logistics and trade in line with the Vision 2030 objectives.

“We are confident that this will significantly enhance the port’s outstanding operational capabilities by enabling us to provide sophisticated services seamlessly, amid the challenges of the current economic situation and the rapid changes in the industry.”

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