Logistics in Saudi Arabia Maritime Air Roads Railway

Transcription

1 German-Saudi Business Magazine June 2013 Logistics in Saudi Arabia Maritime Air Roads Railway

2 Editorial Dear readers, For the German economy, Saudi Arabia and the UAE are the largest export markets in the MENA region. In 2012 Germany exported goods worth 10.5 billion US-Dollars to Saudi-Arabia. During the same period goods worth over 2.2 billion US-Dollars were exported from Saudi Arabia to Germany. Saudi Arabia expands its position as Germany's most important trading partner in the MENA region. Andreas Hergenröther Delegate of German Industry & Commerce for Saudi Arabia and Yemen The growth of the Saudi economy is supported by massive investments, which can be seen when looking at the current project volume. The project volume in Saudi Arabia currently stands at over 900 billion U.S. dollars. Over a quarter of all projects in the Gulf are being planned in Saudi Arabia or have already been implemented. The Kingdom is therefore one of the most important markets worldwide. The declared goal of Saudi Arabia is to develop a diversified transportation infrastructure with an efficient supply chain and logistics network. The Saudi Arabian logistics market will continue to advance as a leading transport and logistics hub within the region. In the next ten years Saudi Arabia has planned to invest more than 100 billion US-Dollars in the logistics sector. This development offers opportunities for contractors, builders and operators of transport facilities. The extension of the railway network, construction of new airports and seaports will further increase Saudi Arabia s competitive advantages in the region. To create a better awareness of the high potential to develop German-Saudi Arabian business relations we would like to present in this current edition the portfolios of some of the major players of the logistic sector in Saudi Arabia. Andreas Hergenröther 1

3 Contents Editorial 01 DP World Middle East Ltd. 36 German-Saudi Business Relations 04 TUSDEER 37 AHK Saudi Arabia Transport Logistic Aviation Saudi Airlines Cargo Logistics in Saudi Arabia 08 Lufthansa German Airlines 42 DHL Schenker Saudi Arabia LLC Fraport AG Roads TALKE KUEHNE + NAGEL Four Winds Saudi Arabia Ltd E. A. Juffali & Brothers Railway Dornier Consulting Maritime 24 RAIL.ONE 54 Saudi Ports Authority 27 AHK Services International Ports Services HUTA GROUP Gulf Stevedoring Design & Developed by: In accordance with GESALO Disclaimer: German Saudi Business Magazine (GSBM), Issue June Your contact persons at AHK Saudi Arabia Editor-in-Chief Andreas Hergenröther Head of Public Relations Christian Engels Responsible for Printing AHK Saudi Arabia Copyright GSBM All rights reserved. 58 No part of this magazine may be reproduced without GSBM s written permission. The opinions expressed in GSBM do not necessarily reflect the views of the German Delegation of Industry and Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia). GSBM is not responsible for the validity of contents in articles written by external authors.

4 HISTORY HISTORY German-Saudi Business Relations German-Saudi economic relations have a long tradition. German global players like Siemens or Mercedes-Benz have been active in the Kingdom for more than 75 years. The transfer of know-how and technology has also been supported as an expression of political and economic partnership by representatives of government and economy of both countries. For instance the first President of the Federal Republic of Germany, H.E. Theodor Heuss, met with Saudi Arabia s H.R.H. King Saud bin Abdulaziz during his term in office. German chancellors like H.E. Helmut Schmidt or today s chancellor H.E. Angela Merkel followed suit and tried to express Germany s close relation to Saudi Arabia. AHK Saudi Arabia has been established as a bridge between Germany and Saudi Arabia by Royal Decree in 1978 and in part of the foreign trade promotion system. The foreign trade promotion of Germany has a very unique structure. Beside the economic sections of the embassies and Germany Trade and Invest the AHK network, consisting of the Chambers and Delegations of Industry and Commerce abroad, is officially assigned to promote German economic relations outside of Germany. With the additional support of the German Federal Ministry of Economics and Technology this makes AHKs the official representation of German economy abroad. AHK Saudi Arabia The official representation of the German economy in Saudi Arabia 4 The Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) has been founded in 1978 by Royal decree under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). AHK Saudi Arabia is part of the German Chamber Network and the official German Foreign business promotion. With 120 offices worldwide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20 employees, AHK Saudi Arabia supports Saudi and German companies with its services. AHKs are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companies in Germany. AHK Saudi Arabia is the official representative of German economy in Saudi Arabia. Besides this AHKs are service providers to companies under the brand DEinternational AHKs provide services to companies both from Germany and their host countries in order to support their foreign business activities. These services include conducting market studies and providing sector information, matchmaking, business consulting, organization and representation of trade shows, issuing business publications, legal information, medical treatment support and vocational training, etc. AHK Saudi Arabia More than 30 years of experience German-Saudi Arabian business relations follow a long tradition In 1978 the Joint German-Saudi Economic Committee composed by representatives of the German Ministry for Economics and the Saudi Ministry of Finance decided to establish a German foreign trade commission in Saudi Arabia. On August 22nd 1978 was the inauguration of the first office for German Saudi economic relations, which has been established by Royal Decree. The first years AHK Saudi Arabia shared the office with the German consulate in Riyadh since in 1985 the German embassy moved from Jeddah to Riyadh. First Delegate of German Industry and Commerce in Saudi Arabia was Dr. Gerhard Fischer ( ), who had at that time just one employee his secretary. His successor Marc Landau ( ) shaped the name German Saudi Arabian Liaison Office for Economic Affairs and his short form GESALO. From the beginning the office was not just responsible for Saudi Arabia but also for the economic relations to Bahrain, Kuwait, Qatar and Yemen. Delegate Dieter Mankowski ( ) intensified the work of AHK Saudi Arabia in the Kingdom. As trade fairs are crucial instruments in foreign trade promotion and Germany is the world s number one venue for organizing international trade fairs it was a logical step to found an own trade fair department. Establishing AHK-Services His successor Dr. Rainer Herret ( ) put the focus on a second issue, which is of high importance for the bilateral economic relations: With the implementation of a legal department AHK Saudi Arabia was able to assist German companies regarding legal questions like customs regulations, taxes and the legal framework of launching branches, founding a Joint Venture with a Saudi company or establishing a liaison office. Since then Saudi businessmen are able to get assistance in the visa process for Germany via the AHK office when they are to visit or exhibit on trade fairs or need to travel for business trips. AHK Saudi Arabia acts also as a mediator in cases of commercial disputes between German and Saudi business partners with the aim to solve disputes without harming the long term business relations. Under the lead of Michael Tockuss ( ) AHK Saudi Arabia ameliorated its services for German companies in the region. Since then today s longest tenured employee, Mohammed Faleel, is in charge for the promotion of business to business development. Due to his knowledge about the market and his connection to Saudi decision makers AHK Saudi Arabia was able to create an infrastructure to provide German companies services like market information, address research, business partner research and the organization of business trips. In the time of Mr. Tockuss a second branch in Jeddah has been opened to serve the companies based in the former capital. For delegate Manfred Rothgänger ( ) the times were difficult as the Kingdom faced terrorist attacks against governmental institutions as well as foreigners in the country. The Jeddah office had to get closed again due to the uncertain circumstances. Nevertheless Saudi Arabia recovered and paved its way to participate in the World Trade Organization (WTO), which can be seen as a great success. In the term in office of Delegate Gerd Doepner ( ) the boom in the United Arab Emirates and the foundation of the German Emirati Joint Council for Industry & Commerce (AHK UAE) led to restructuring the market. Since 2009 German business relations with Bahrain, Kuwait and Qatar is organized by AHK UAE. New Challenges: Andreas Hergenröther Since October 2010 Andreas Hergenröther is the current Delegate of German Industry and Commerce for Saudi Arabia and Yemen. Under his lead the German-Saudi business relations tightened within one year even more and many projects are on the way deepening these relations. In December 2010 the first German-Saudi Arabia Desk has been established at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. Under the lead of Mr. Hergenröther more than 100 events in Germany and Saudi Arabia have been organized by AHK Saudi Arabia in order to promote German-Saudi business relations. With its services for German and Saudi companies AHK Saudi Arabia is in a key position for the bilateral economic relations. Every businessman, who is interested in doing business in Saudi Arabia or in Germany will find an individual concept of entering the market, promoting its business through trade fairs and find the perfect business partner from the other country. 5

5 Transport Logistic 2013 Transport Logistic Transport Logistic 2013 The world s largest exhibition for transport and logistics will take place in Munich, Germany from June 4 7, The German Saudi Arabia Liaison Office for Economic Affairs (AHK Saudi Arabia) has planned a Business Delegation to Transport Logistic 2013, with 24 high ranking officials from top Saudi companies. Several meetings with selected German and Saudi Arabian exhibitors are planned at the trade fair (Saudi Ports Authority, Four Winds Logistics, Saudi Airlines Cargo Company L.L.C., DHL, DB Schenker, Fraport Cargo Services, etc.) Saudi Ports Authority, Saudi Airlines Cargo Company and Four Winds Saudi Arabia Ltd. are exhibiting at the world s largest exhibition for transport and logistics. Saudi Ports Authority The Saudi Ports Authority was established in Its main goal was to develop and improve ports and their management, based on the effective international techniques and systems. The Ports Authority is responsible for supervising the management and operation of eight main ports on the Kingdom's coasts. The total number of docks in these ports is 183 docks, 137 of them are in six commercial ports while 46 docks are in two industrial ports. All of these docks account for the largest network of ports in the Middle East. Saudi Airlines Cargo Saudi Airlines Cargo has grown immensely since its humble beginnings many decades ago, today being recognized as a leading air cargo carrier in the Middle East. With an extensive global network spanning four continents we operate a dedicated freighter fleet and offer ample capacity on our passenger flights across Asia, Africa, Europe and the USA, reaching over 225 international destinations and 26 domestic destinations on our global network. Four Winds Saudi Arabia Ltd. Four Winds Saudi Arabia is specializing in design and management of local and international moving freight forwarding and customs clearance services. Since its inception in 1979, FOUR WINDS S.A. LTD. has become one of the leading freight forwarding companies in Saudi Arabia. It has realized a tremendous growth during the last twenty years, with nine branches established in the Kingdom. These nine branches are strategically located in the country s business centers. In 2013 the show is expanding again and not only in terms of exhibition space, with the inclusion of an additional exhibition hall. It also has more exhibitors: the current total stands at over 1,950 companies from more than 60 countries. Many international market leaders will be among those exhibiting at this premium platform, doing business and networking with an expected audience numbering in excess of 50,000 trade visitors. It will be more international than ever. Strong presence on the part of international exhibitors is particularly noticeable: 41% come from abroad! This European trade fair is well on its way to becoming a world s fair. Also in 2013, all relevant exhibitors will participate in transport logistic in order to present their latest developments to the highly qualified trade visitors, make contact with decision-makers in all sectors of the logistics industry and secure themselves a valuable know how advantage. Transport logistic is the world s biggest trade fair for the multi-facetted industry of moving goods by road, rail, water and air. The fair s portfolio covers logistics and freight transport, telematics and in-company transport and material flow. Integrated into transport logistic 2013 is Air Cargo Europe, an exhibition and conference for the global air cargo business taking place for the fifth time. The extensive conference programme and the 6th Air Cargo Europe provide an expert overview of new markets, trends and innovations in the international transport and logistics industry. 7

6 Logistics in Saudi Arabia Logistics in Saudi Arabia Logistics in Saudi Arabia The Kingdom of Saudi Arabia is a growing economy which is diversifying more and more. One of the main economic targets is to develop a diversified transportation infrastructure with a more efficient supply chain and logistics network. With the support of foreign know how, Saudi Arabia intends to meet the rapidly growing demand of logistics services in order to follow the needs of Saudi Arabia based industries and distribution networks. Saudi Arabia is already by far the largest economy in the MENA- region: The foreign trade volume has in creased significantly in recent years. The expected value of Saudi-German trade deals in 2013 is around 10 billion Euros. Billions are spent on the expansion of port and airport capacities, railways and roads. The turnover of the logistics industry is expected to exceed 15 billion Euros by 2015, in comparison to 2011 s turnover of only 11 billion Euros. Between 2004 and 2008 the volume of cargo loading and unloading in the ports of the Kingdom of Saudi Arabia has increased by almost 30% to 155 million tons (excluding crude oil). The past year witnessed an increase to over 160 million tons, hitting a new record high. According to the current development plan, it is expected that by 2014 the total port business will reach 200 million tons. Also, the domestic cargo is expected to show growth rates of 4-5% per annum through Over all, investments of more than 70 billion Euros will be made within the next ten years. This development offers opportunities for contractors, builders, and operators of transport facilities. Especially the extension of the railway network, construction of roads, building of airports and new seaports on the east and west coast, will further increase Saudi Arabia s competitive advantages in the region. In addition to the increasing demand of warehouse logistics and freight forwarding, full supply chain management for the industry is becoming more and more a topic and is constantly growing, especially with the national strategy of establishing more manufacturing companies in the kingdom. Logistic and service companies such as DHL, DB Schenker, Kuehne & Nagel, Lufthansa, Fraport and others have already a very strong presence and are now broadening their focus to oil and related industries, like ALFRED TALKE GmbH & Co. KG which is specialized in supply chain management and logistic solutions for the petrochemical sector up to high volume commodity polymers transportation and storage as well as the highly specialized liquid chemicals handling. Freight transport logistics and industrial logistic services are very welcome in the Kingdom because they are key sectors for promoting sustainable economic growth, technical innovation and the creation of jobs. With the Support of the Federal Ministry of Transport, Building and Urban Development, as expressed by the visit of H.E., Federal Minister, Dr. Peter Ramsauer in 2012 the Delegation of German Industry and Commerce stands ready to assist German and Saudi companies to build business relations, to act as a platform for the exchange of ideas and to facilitate access to each respective market and to increase mutual investment and trade. 8 9

7 DHL DHL Saudi Arabia s fast-growing economy has succeeded in creating opportunities for both exporters and investors. Further boosted by moves to diversify the economy away from dependence on oil and gas, economic reform, market liberalization and a growing private sector, the logistics industry in the Kingdom has subsequently played an increasingly important role in connecting Saudi Arabia to future growth opportunities. As the global logistics leader, DHL has more than 30 years of experience in connecting the Middle East to the rest of the world and supporting growth of emerging markets through logistics excellence. According to Geoff Walsh, Country Manager of Saudi Arabia for DHL, a connected world is a better world. The free trade of products and services contributes significantly to global prosperity. We view the Middle East as a key area for growth for DHL and will continue to invest to keep pace with the increased demand from our customers, continued Walsh. In the last two years, DHL has invested heavily in upgrading our dedicated intercontinental air network. A direct benefit is improved connectivity between the Middle East and other key global markets. By adding new routes between our regional hub at Bahrain and the UK, Belgium, Germany, Hong Kong and the US, DHL has succeeded in supporting the growth of trade and commerce between the Middle East and key markets in Europe, Asia and the US. In upgrading our global infrastructure we are delivering on our promise to be the world s leading cross-border express brand. We are thereby helping our customers get their goods significantly faster to their markets and making it easier for companies to access key industrial production centers. Walsh attributes the company s robust growth in the region, and KSA specifically, to its unique combination of local expertise and global track record for delivering logistics excellence. Currently, DHL Express is the only logistics company across the Middle East to operate its own intra-regional air network. DHL s dedicated intra-regional network includes our own flights serving both Riyadh and Jeddah. Serving the needs of individuals, as well as supporting businesses large and small, DHL has time and time again proven why it is renowned world wide as the market leader for its logistics solutions and enhanced customer service. As part of DHL s investment in the region, it has invested in a training program for all employees designed to improve customer service levels through the Certified International Specialist (CIS) training program. Designed by DHL, the accreditation program is aimed at increasing employees knowledge of changing international business and enhancing customer satisfaction. All DHL Express employees in the Middle East have completed the training program as part of a global training initiative. We understand that our employees are what makes us the number one express company in the world and we are committed to investing in them to ensure that DHL has a competitive edge to succeed in the global marketplace, added Geoff Walsh. With a strong brand and dominant presence across the Middle East, success has followed suit with DHL Express Saudi Arabia Employing more than 1,562 employees in Saudi Arabia, DHL has 48 service point facilities in KSA and continues to illustrate its commitment to innovation, service excellence and providing customers in Saudi Arabia with superior logistics solutions

8 Schenker Saudi Arabia LLC Schenker Saudi Arabia LLC Schenker Saudi Arabia LLC In 1975 DB Schenker established its first office in Jeddah. In 1975 DB Schenker established its first office in Jeddah after being selected as project logistics provider by Hochtief for the construction of King Abdul Aziz International Airport Jeddah. What started with a project office developed into a major success story within the DB Schenker network. Being in the Saudi market for more than 30 years DB Schenker has grown its service coverage to include the full range of freight and supply chain management services in conjunction and integrated with its global network. Schenker Saudi Arabia LLC serves its customers through three regional offices the Kingdom namely Riyadh, where also the Corporate Office is located, Jeddah, and Dammam. Although the company has focused traditionally on the freight forwarding segment of the industry, one product has seen an explosive growth in the Kingdom Contract Logistics/Supply Chain Management (SCM) services/solutions. This product includes warehousing/storage, transportation/distribution management, and SCM solution consulting. DB Schenker operates more than 30,000 sqm warehousing space throughout the Kingdom serving customers ranging from industrial chemicals to high-tech/electronics. Schenker Saudi Arabia LLC offers the following products/services: Air Freight Ocean Freight Contract Logistics Supply Chain Management Logistics Consulting & Solution Development These products/services are offered throughout the Kingdom through dedicated professional staff deploying the highest standards, methods and technologies; identical standards and technologies customers have come to expect from DB Schenker around the world. The company also follows a market segmentation strategy where specific vertical markets are targeted based on our local and global knowledge/experience base. The major vertical markets targeted by Schenker Saudi Arabia include: Aero parts/aerospace Automotive Consumer Products Healthcare/Pharmaceutical High Tech/Electronics Oil & Gas Project Logistics With a steady growth, DB Schenker is committed to strengthen its product and regional coverage through direct investment into facilities, infrastructure and resources in order to become the leading logistics service provider in the Kingdom. One essential strategic goal is the development and education of Saudi manpower. DB Schenker believes that the investment in the development of local manpower resources is essential to the long term growth strategy. In order to achieve this the company has joined with government agencies such as the Saudi Human Resources Development Fund to train and employ young Saudis in the logistics industry through a structured program that includes theoretical as well as on job training programs. DB Schenker is also constantly looking for fresh college graduates from the local colleges and universities to employee aspiring young Saudis and put them through an exciting career in logistics. With nearly 59,000 employees and sales totaling 14.3 billion Euros, the Logistics Business Unit of DB Schenker is one of the world s leading service providers in this important industry. The three internal business units of DB Schenker Logistics offer European land transport, global air and ocean freight, comprehensive logistics solutions and global supply chain management from a single source. DB Schenker Logistics holds top positions in the automotive, high-tech and consumer products sectors and in trade fair forwarding, special transports and services for major sporting events

9 TALKE TALKE TALKE Logistics hub Saudi Arabia The Kingdom of Saudi Arabia boasts the largest economy of the Arab states and is the top global producer of crude oil this presents exciting opportunities for German logistics specialists. Today, the Saudi Arabian economy largely revolves around oil and not least in the raw materials industry. Indeed, the petrochemical industry dominates this sector both up and downstream. In 2012, 88 per cent of Saudi Arabia s exported goods were oil and other petrochemical products, and the total value of the country s exports came to 280 billion US dollars. In the same year, imports mostly products for use in mechanical engineering and foodstuffs ran to 106 billion US dollars. Germany is Saudi Arabia s third most important supplier country after the USA and China. The Arab nation s other major import partners include Japan, South Korea, France and Italy. Key industrial ports: Jubail and Yanbu Saudi Arabia is facing many new challenges as a result of its strong economic growth and increasingly diversified economy. A key issue is of course logistics. Consequently, the country has invested millions in the construction of a railway and enhanced port facilities to complement its already well-established road network. Jeddah Islamic Port in Jeddah and the King Abdul Aziz Port in Dammam are perhaps the two most significant seaports in Saudi Arabia. These two ports receive around 65 per cent of all imports into the Arab nation, and handled around 51 million tonnes of imported goods in In 2011, this figure rose to nearly 95 million. The most important cargo for these ports is pourable solid and liquid bulk goods like oil. Most industrial raw materials arrive in and depart from Saudi Arabia via the industrial port of Jubail, the largest port of export in the country. This single port serves as a gateway between the 8,000-hectare industrial complex of Madinat Al-Jubail Al-Sinaiyah (Jubail Industrial City) and the global markets. Today, Jubail is home to nearly 20 large industrial installations such as petrochemical plants and more than 130 additional plants for the production of steel, plastics and fertilisers. Security is Key: Specialized logistics service providers as TALKE guarantee safe and secure services. Economic pressures also prompted the establishment of the industrial port of Yanbu al-bahr. It s ideal location in the Medina province of western Saudi Arabia meant that it was already an important trading centre in ancient times, being situated along the trade route from Yemen to Egypt and the Mediterranean region. Today, Yanbu al-bahr mostly receives shipments of oil and petrochemical products, and oil refineries, plastics plants and petrochemical processing facilities have now been constructed in the neighbouring city. Asia, has already been operating in Saudi Arabia since 2003 as part of the S.A. TALKE joint venture, owned by the TALKE, SISCO and Aljabr Groups. Among other things, S.A. TALKE is responsible for the planning, construction and operation of on-site silo storage and packaging facilities petrochemical plants producing plastic granulates. Some of these products are sold to the Asian market where plastic granulate are used to manufacture a wide range of consumer goods. Consequently, TALKE also acts on behalf of Saudi clients in Asia. Sabic, as well as Ecofuel Italy and the Arab Petroleum Investment Corporation. The Jubail plant has already been in operation for several years now, and so TALKE will be using this opportunity to optimise its technology and processes. To this end, and for the day-to-day running of the plant, the specialist logistics company has employed 140 qualified professionals. With this addition of the Ibn-Zahr plant, TALKE will now be processing around 6 million tonnes of plastics in the Middle East each year, with 4.85 million tonnes being handled in Saudi Arabia alone. 14 TALKE silos for polymer granulates in the Middle East: Producers from the region expand their portfolios towards liquid chemicals with an increasing demand for respective specialized logistics. TALKE proffers logistics knowledge and expertise Saudi Arabia is already the fourth-largest emerging logistics market in the world today (after China, India and Brazil), and this presents exciting opportunities for German businesses. TALKE, one the world s leading logistics service providers for the chemical and petrochemical industries in Europe, the Gulf States and Thanks in part to many years of experience in the global chemical and petrochemical industries, TALKE has been able to win new contracts in Saudi Arabia in One such contract is for the on-site management of a polypropylene plant with an annual output volume of 1.15 million tonnes. The contracting party, Ibn-Zahr, is a joint venture mainly owned by the Riyadh-based Expanding operations to include liquid specialty chemicals manufacture Another market segment which is gaining importance in the region is the expansion of downstream operations; Middle Eastern chemical companies have now begun to produce specialty chemicals themselves. In this context, TALKE was recently charged with the logistics for an 15

10 TALKE acrylic acid manufacturing plant which is owned by a joint venture between Tasnee and Dow Chemical, and is due to come on stream around the middle of this year. At the facility, TALKE will be responsible for the loading and unloading of ISO tanks and trucks with around 140,000 tonnes of the liquid specialty chemical each year. Since it will be dealing with a temperature-sensitive hazardous material, TALKE is preparing for this role with the utmost care and attention. Among other things, the expert Logistics Solutions team has therefore been heavily involved in safety inspections of the site s handling facilities and processes to ensure a smooth logistics operation. Alongside these careful preparations, work is going full speed ahead to get the new plant on stream. To ensure that the site runs as smoothly as possible, TALKE is also in the process of training the people who will be working there in just a few months time. The Saudi team is being supported locally by TALKE Europe, since the company already has many years of experience in handling these products. Petrochemical company Saudi Kayan is also extending its in-house manufacturing processes, and awarded TALKE with the drumming, transportation and storage of an annual 140,000 tonnes of ethoxylates in December As a company which specialises in liquid chemical logistics and almost all types of hazardous materials, TALKE is the ideal partner for this growth strategy. This will enable us to support our customers with best practice logistics solutions as they manufacture products which are new for the region, emphasises Richard Heath, Director Middle East & Asia at the TALKE Group, adding that the TALKE Group also has an established organisation in the Middle East and has been a respected logistics partner for many years. Investing in the next generation of logistics experts As the demand for logistics service providers grows, so too does the demand for skilled logistics professionals. Together with the German Chamber of Commerce (AHK) and other home-grown German companies, TALKE is therefore striving to make the industry more attractive to young Saudi Arabian workers. To this end, Jubail Technical University is planning to offer a three-year chemical logistics training programme free of charge for the next generation of specialists. The exact start date for the first round of courses has not yet been decided. The AHK is working closely with those companies which would like to offer financial support for the programme, states Oliver Klingbeil, General Manager at the S.A. TALKE joint venture in Saudi Arabia. In the context of the growing demand for logistic services, we are naturally hoping that this offer will appeal to the next generation of workers. Advertisement 16 Extended manufacture: TALKE group offers comprehensive transport and logistics services along the complete chemical supply chain.

11 KUEHNE + NAGEL KUEHNE + NAGEL KUEHNE + NAGEL Over 30 years of experience in Saudi Arabia In Saudi Arabia, Kuehne + Nagel International AG has its own offices in Jeddah, Riyadh and Dammam. Having entered the market with a joint venture back in 1977, the company now offers its customers a wide range of forwarding and logistics services. Kuehne + Nagel started operations in Saudi Arabia in 1977 as a joint venture with the leading trading company E.A. Juffalli & Bros. Trading successfully under the name of Orient Transport Company, the jointly owned firm developed steadily. In 2007, Kuehne + Nagel had the opportunity to acquire 100% of the shares and thus became the first global logistics provider to operate a wholly-subsidiary in this country. Since then the national company has been registered in Saudi Arabia as Kuehne + Nagel Ltd. With the new ownership, the company is fully connected to both the global transport network and IT-systems of the Kuehne + Nagel Group, generates significant advantages for the customers in Saudi Arabia. Well established since 1977 Kuehne + Nagel Saudi Arabia offers its customers a wide range of local and global services, from seafreight over airfreight to warehousing & value added services, overland & regional distribution, customs brokerage and international project forwarding. Furthermore, the company provides a portfolio of sophisticated contract logistics services and selects and manages carriers, depending on the customers individual requirements. To name just a few, the company offers contract negotiations and contract management, tracking & tracing, domestic and regional distribution, express and shuttle services as well as contract domestic transportation. Special know-how and industry expertise Jeddah, Riyadh and Dammam are fully operational seafreight and airfreight set-ups, cooperating with well established best-in-class carriers. Next to import and export services, Kuehne + Nagel in Saudi Arabia offers tailor-made products for customers from industries such as aerospace, automotive, pharmaceutical, healthcare and oil and gas. The company also provides first class hotel logistics services and is a leader in the handling of perishable goods. A dedicated team of experts is responsible for the management and execution of industrial project shipments. This includes the flexibility to adjust immediately to changing requirements during all stages of the project process, in-depth expertise of all local rules and regulations and the knowhow to safely transport heavy lift cargo and out-of-gauge shipments. With some 100 employees and a full range of logistics and contract logistics services, Kuehne + Nagel is well-established in the Saudi Arabian market. With over 63,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions. For further information please visit

12 Four Winds Saudi Arabia Ltd. Four Winds Saudi Arabia Ltd. As a global logistics company supported by worldwide network partner, Four Winds S.A can provide services required to meet your needs, and those of your suppliers, from door to door, consolidated shipments, DGR shipments and direct airlines fright. Through our kingdom wide and worldwide network, Four winds S.A can provide premier services for all types of airfreight movement. Sea Freight Solution difficult consignment. Four Winds customs brokers are comprehensively trained in specific areas and unique customs procedures. our customs team will take full and complete responsibility for insuring that the correct documentation has been prepared will in advance to avoid expensive and time consuming delays. Warehousing and Distribution solutions It has been in operation for almost 20 years and has gone from strength with the introduction of new enhanced transit times and expansion into the Kingdom. Four Winds express can also provides what we can call it Saudi saver service which is designed for the single package shipment at extremely competitive rate with full tracking and tracing capability. Supply Chain Solution. Four Winds Saudi Arabia Ltd. Four Winds keeps growing like flowers in the field... Four Winds S.A has gained and developed an enviable reputation as major provider of quality export, import and ocean freight services. our dedicated teams of sea freight specialists have developed dedicated ocean freight services for both export and import in response to customer requirements. no item of freight is too small or too large to be shipped by Four Winds logistics to any part of the world. Customs Brokerage To further strengthen the company s operation, Four Winds S.A maintained and managed warehouses across the kingdom of Saudi Arabia. These facilities are suitable for any type of cargo, petrochemicals, general cargo and industrial commodities. Our warehouses are well maintained, with fire fighting and alarm system, fully secured and protected, temperature controlled for temperature sensitive and DGR shipments. Transportation Solutions Saudi Arabia is a positive factor in gulf region and holds a unique commercial position in the post financial crisis economic environment. Saudi Arabia is one of the few nations in the Gulf region that has managed to sustain positive growth rates through a robust economy and intelligent utilization of natural resources. 20 In the middle of the fuel revolution and among the glimpses of the Arabian desert, somewhere around 1979 a passion for excellence on the Saudi soil was born. The need for transportation, moving, warehousing and freight forwarding skyrocketed like never before; here Four winds was born to meet all those who were looking for someone to care about their shipments, their belongings and their history. Since the beginning Four winds S.A was founded upon the shoulders of hardworking men and women who are always on the go and passionate about our ever growing challenge of linking our clients to the world, in any possible way. In the years to come, we are looking forward to continue to grow, and continue the innovation and creativity in the logistics world. In an industry that is based on communications and interactions before anything else we will continue to reflect on our long experience and resonate with the new opportunities for our clients. There is something quite overwhelming statistically about a country of 27 million of when 8 million are expats, being one of the world largest producer of oil and the sixth largest extractor of natural gas. Although still a relatively young country, Saudi Arabia is fast taking its place as international power house, thanks to a programmers of continuous reinvestment into every aspect of daily life from welfare to education. As the number of the building projects in the continues to grow so Four Winds expands to meet the incessant demand for professional logistics services which including the following: Air Freight Solution Four winds S.A is widely recognized as the leading customs broker in the kingdom of Saudi Arabia. We are proud to say that Four Winds S.A is the only logistics provider in the kingdom which owns a customs license. this hard earned and privileged status gives us a distinct advantage when it comes to work out to complement our airfreight and sea freight services and to offer our customer the best logistics solution. FW- express was formed to provide export and import services between the cities of the kingdom of Saudi Arabia and between Saudi Arabia and GCC countries. Four Winds express presents a total inland solution. Parallel to those economic dynamism is a growing demand for sophisticated supplychain solution which must be customized according to the changing needs of customers in divers industries such as oil and gas, petrochemical, power and energy, 21

13 Four Winds Saudi Arabia Ltd. Miele German Quality and Brand Fascination at all times The Heritage Miele is a German manufacturer of premium domestic appliances. It was founded in 1899 and has always been a family-owned, family-run company. Since the founding days, Miele s guiding motto of Immer Besser or Forever Better is applied to everything Miele delivers. Quality and Luxury Miele does not only stand for quality and durability but for pure luxury as well. We focus on the highest degree of customer convenience, offering innovative products with an ageless design and a broad range of functionalities, leading to perfect results. Miele is renowned for its constant improvement in designing and manufacturing award winning appliances. A synonym for the very best in quality, craftsmanship and sustainability Miele is often found in the luxurious homes of royal families, diplomats, celebrities, and the most discerning customers around the world. To name a few: the Burj Khalifa in the UAE, the Trump Towers in the USA, Pallazo Versace in Australia. Experience Miele appliances in KSA A portfolio of Miele appliances in the factories in Germany to adhere to the power and other technical requirements of the Kingdom of Saudi Arabia. Miele appliances do not just deliver convenience and innovation; they portray a contemporary lifestyle and artistic living space. infrastructures, manufacturing, retail group, project and exhibition and healthcare. As logistics specialist, we offer wide-range of tailored supply chain solution to major industries sectors drawn from a kingdom wide scale and strong international network. As a service-oriented company, we see to it that we deliver value across our clienteles' supply chain needs from the initial consultancy and design phase, up to the implementation and innovation stage. Project cargo solution Some consignment just do not fit into standard containers. That's where experience and knowledge really counts. If you need to ship cargoes that are exceptional in some way heavy, out of gauge, hazardous or in any way unusual, then let the expertise of Four Winds make it simple. Over the years, we have shipped all kind of consignments to destinations all over the world involving small commodities and unusual cargoes that are large, super heavy and fragile such as dismantled factories, drilling platform, and oil and gas refineries. Every job requires a unique solutions and approach, reason why our team of experts never stop to innovate for a job well done. We work with worldwide trusted specialist partners who are available 24/7 all the year around the year whenever and wherever we need them. Together, we ll ensure that the cargo reaches its destination, no matter where in the world that might be regardless of the size, weight or shape of the consignment on time, in tip-top condition. Our excellent track record, you can be confident that your cargo, is in the safest and most reliable hands from origin to destination. Heavy left and OOG movement execution: Appointing/ Classifying Agent Appointing Marin Warranty Surveyor Selection of Carrier/ Air or Sea Selection of heavy Lift haulage Carrier of both Origin and Destination Cost Analysis Four Winds S.A believes that every steps of the way, alongside with our clients, is an opportunity to further develop the potential of certain industry. This principle encourage us to capitalize on market demand by optimizing our business performance productivity and delivery to clients and end users through the efficiency of our supply chain and logistics management. 113 years of Miele Quality, innovation and emotional appeal are the main characteristics that make Miele so unique. Miele s extensive range of kitchen and home appliances includes multi-functional ovens, steam ovens, hobs and cooker hoods, cooling appliances, coffee makers, dishwashers, as Jeddah - PO Box Jeddah Tel Fax Branches: Jeddah - Madina Road - Tel Fax Jeddah - Sitten Street - Tel Fax Riyadh - Alaia General - Tel Fax Taif - Tel Fax Miele appliances are available at all Awad Badi Nahas shops throughout the Kingdom. Please visit any of the branches to learn more about Miele and experience the appliances. /awadbadinahas /awadbadinahas /awadbadinahas 22

14 Maritime The expansions of seaports offer opportunities for construction companies and port operators as well as development and administration service providers. Jeddah Islamic Port alone is currently investing $ million to upgrade its facilities to handle an increasing amount of cargo. Last year, the annual handling capacity of the port stood at 62 million tons, up by 20 percent from the year before. According to SAGIA, the port can increase its capacity by 30% - 50% once the enhancements are operational. Already, the port handles more than 65 % of the traffic entering the Kingdom from the sea. All Ports are constantly on the lookout for operators and other service providers in order to improve maritime infrastructure: The ports of King Abdullah Economic City and Jizan Economic City, as well as the Logistics Park adjacent to Yanbu Commercial Port and King Fahd Maritime Industrial Port at Yanbu, which is the biggest port on the Red Sea for loading oil. It has 22 quays and receives tankers with a capacity up to 500,000 tons. The biggest port on the East coast, Jubail Commercial Port has a whole 2nd Terminal at present. Although the ports are owned by state, Royal approval was granted to pass responsibility for all operations and maintenance of berths, and equipment owned by the Ports Authority to the Maritime private sector. Since the Saudi ports are subdivided into a number of independent terminals (container terminals, general cargo terminals, reefer cargo terminals, bulk cargo terminals, etc.) with every terminal having its own area, equipment, warehouses, workshops and open yards, the responsibilities of managing and operating the ports were passed to the private sector in a terminal by terminal basis. On the Eastern Coast, King Fahd Industrial Port is constantly extended in order to service the Industrial City of Jubail. Run by the Royal Commission for Jubail & Yanbo (RCJY), the Industrial City accounts for more than 7 percent of the Kingdom s gross domestic product. Jubail has evolved into a major player in the global petrochemicals market. The second phase of extension of the industrial complex that started to be implemented in 1975 will add a second industrial area to house up to 22 new primary industries. In addition to King Fahd Industrial Port, railway links to the natural resources, mainly the bauxite mines in the northwest, are currently being build. With more industrialization and an increasing demand to ship goods locally and worldwide, an increased demand not only for freight forwarding, but also for industrial logistics management will arise. German Companies are already well established. TÜV, with its subsidiaries TUV Rheinland Arabia TUV NORD and TUV SUED, is active in all major industrial sectors, providing services for aviation, ports and industrial logistics in addition to certification services. TUV Nord is providing services for ports handling, TUV Rheinland is providing Testing labs for import goods in the commercial port in Jeddah, while TUV Sued is focusing on services for Airports and the Eastern coast. DB Schenker, Kühne & Nagel, Henkel and Talke are providing the full range of logistic services, ranging from freight forwarding to sophisticated supply chain management and operations services. Top Possibilities Port operation optimization Loading and unloading facilities Warehousing and inventory management Communication systems Supply-chain management 24 25

15 Saudi Ports Authority Saudi Ports Authority Logistics Opportunities in Saudi Arabia LogiMat - your ideal storage and picking solution for small parts Working according to the convenient principle of goods to man, this automated storage and order picking solution can efficiently reduces the proportion of travel time by more than 70% and increases the commissioning speed by 6 to 10 times. LogiMat provides efficient space utilisation that helps reduce energy and storage costs, thanks to its extremely compact design. Contact us today for more information. P: +971/4/ E: info@ssi-schaefer.ae The Kingdom of Saudi Arabia (KSA) is located strategically between three continents namely Asia, Africa and Europe. The transport and logistics sector in Saudi Arabia is supporting a population of 28,5 million (2011) and plays a crucial role as enabler and prerequisite for growth in the country as well as for the economic cities (EC s). As a result of the economic growth and the development of the EC s, annual cargo volumes will triple from 300 million tons in 2005 to around 900 million tons in Domestic volumes will remain to be predominantly transported by road and rail, while international volumes will be transported mainly by sea. The two most important ports for imports are and will remain Jeddah Islamic Port and King Abdul Aziz Port Dammam. Jubail Industrial Port is the biggest port for export, Yanbu Industrial Port follows as the second biggest port for exports. An often cited statement is that ports are just a link in the chain between producer and consumer. This implies that hinterland connections are as important as maritime transport and ports. The existing infrastructure, however, has not yet kept pace with the industrial development of Saudi Arabia and is still inadequate with limited inland road, rail and sea connectivity. For this reason numerous projects for the development of ports, roads and railway transportation have been planned. With the right incentives and also by leveraging the country s strategic location to attract more traffic to its seaports, airports, logistics network; Saudi Arabian Government aims to strategically privatize operation and management of components of the transport and logistics sector. The KSA, by scoring 3.22 (out of a maximum of 5) in the Logistics Performance Index scale of the World Bank, takes up the 40th ranking position. Considering in detail assessment grades in the six assessment criteria, it is clear that the weakest points are the efficiency in the clearance process and uncompetitive shipment prices, denoting structural and competition problems of the trucking sector. The development of the carriers in detail Rail: The existing railway network of Saudi Arabia connects the port of Dammam to the capital Riyadh. This infrastructure of the current railway network comprises two mainlines and one branch line with a combined length of 1018 km. Beyond that Saudi Arabia will develop a 2300 km north-south railway system that will link the northern mineral mines with the processing facilities on the Arabian Gulf. Most important in the framework of a reorientation of the logistics structure will be the planned Landbridge. This project will involve construction and operation of 945 km of new standardgauge-track from Riyadh to Jeddah as well as a new 115 km spur from Dammam port to the industrial city of Jubail. This expansion will transform the existing network into an important strategic freight link connecting the port cities of Jeddah, Dammam and Jubail via Riyadh s inland dry port. It will transform the way the containers are transported around the country finally. For the transport of containers by rail to be more efficient and cost effective than by road, a much more agile and flexible system must be created and it will also require the development of more dry ports. These dry ports, as is Riyadh dry port, would need to be specified as maritime destinations so that containers could be consigned to them under Multimodal (or Through) Bills of Lading. Delivery time for containers tracked between Dammam and Jeddah will be less than hours compared to up to eight days journey by sea around Ras Al-Mandab from the Red Sea to Arabian Gulf. Sea Transport and Ports: Saudi Arabia has the largest port network in the Middle East. Saudi Ports Authority (SEAPA) supervises development, management and operation of the major seaports located on the two coasts of Saudi Arabia (Jeddah Islamic Port, King Abdul Aziz Port Dammam, King Fahd Industrial Port Jubail, Jubail Commercial Port, King Fahd Industrial Port Yanbu, Yanbu Commercial Port, Jizan Port, Dhiba Port). These ports have together 183 berths in the commercial and industrial ports. 27