Saudi Arabian Oil Co. (Aramco) and DHL Supply Chain pens down an agreement to create a Procurement and Logistics Hub in Saudi Arabia to provide logistics services to energy and industrial companies, they said Monday.
The hub will be the first such hub for the region catering to customers in the industrial, energy, chemical and petrochemical sectors, a joint press release stated.
“Aramco’s preeminent energy and industrial supply chain ecosystem and DHL’s world-class logistics expertise are expected to enable the joint venture to add value in meeting customers’ supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs”, it said.
To be operational by 2025, the facility aims for more sustainable supply chain, transport and warehousing solutions. The venture has plans to expand to the Middle East and North Africa (MENA).
The venture’s formation needs to pass regulatory approvals and “other customary closing conditions”, the companies said.
“We anticipate that it will not only advance the economic goals of our two companies but also accelerate growth across Saudi Arabia and the MENA region”.Amin H. Nasser, President and Chief Executive, Aramco
“Through it, DHL intends to foster its business operations and logistics networks throughout Saudi Arabia and the MENA region while expanding our industrial footprint”.Oscar de Bok, Chief executive, DHL supply chain
Deutsche Post DHL Group, is the world’s leading logistics company” with 1.818 billion parcels delivered per year. DHL operations include freight transport, postal delivery and supply chain management.