Saudi Arabian Oil Co. (Aramco) and DHL Supply Chain have signed an agreement to create a joint venture in Saudi Arabia to provide logistics services to energy and industrial companies, they said on Monday.
The Shopping and Logistics Hub “would be the first center of its kind in the region to serve customers from the industrial, energy, chemical and petrochemical sectors”, says a joint press release.
“Aramco’s pre-eminent industrial and energy supply chain ecosystem and DHL’s world-class logistics expertise are expected to enable the joint venture to add value to meet procurement, warehouse and inventory management needs , transportation and reverse logistics from customers’ supply chain,” he said.
Aiming to be operational by 2025, the facility aims for “more sustainable supply chain, transport and storage solutions”. It is planned to expand to the Middle East and North Africa (MENA).
The company formation is subject to regulatory approvals and “other customary closing conditions,” the companies said.
Amin H. Nasser, Chairman and CEO of Aramco, said in the announcement: “We anticipate that it will not only advance the economic goals of our two companies, but also accelerate growth in Saudi Arabia and the MENA region “.
DHL Supply Chain Executive Director Oscar de Bok commented: “Through this, DHL intends to further its business operations and logistics networks across Saudi Arabia and the MENA region while expand our industrial footprint.”
DHL Supply Chain, part of the Bonn-based Deutsche Post DHL Group, says on its website that it “is the world’s leading logistics company” with 1.818 million packages delivered annually.
The parent company, whose operations include freight, postal delivery and supply chain management, reported revenue of $101.18 billion (€94.4 billion) by 2022, a 15 .5% more than the previous year.
“The jump in revenue was driven entirely by the international business of DHL’s divisions, despite global trade and e-commerce normalizing in 2022 as expected with momentum slowing in the last quarter,” Deutsche Post DHL Group said in a March press release. 9.
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