Aramco signs 10-year contract with Exel
Posted: 07 August 2006
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Saudi Aramco has signed a 10-year contract with Exel Saudi Arabia, an Olayan Group joint-venture partner, to provide comprehensive logistical services for Saudi Aramco throughout the Kingdom.
The contract is effective Jan. 1, 2007.
 Esam A. Mousli, vice president of Materials Supply, and Olayan Group general manager Bandar Al-Anazi signed the contract at a July 11 ceremony at Saudi Aramco's Technical Exchange Center.
Fahad M. Al-Baadi, manager of Saudi Aramco Materials Logistics, opened the ceremony and welcomed attendees of the Olayan Group and its JV partners, Exel Logistics, Materials Supply and other organizations.
Exel Saudi Arabia is a joint venture between Olayan Saudi Holding Co. and Exel Overseas Limited ( United Kingdom). Exel is part of Deutsche Post World Net group, based in Bonn, Germany, one of the world's leading logistics services providers.
Al-Baadi said the new logistics contract would enable Saudi Aramco to successfully deliver materials on-time for the company's sharply increasing development and operational requirements throughout Saudi Arabia.
He said the contract with Exel Saudi Arabia will create an integrated logistics service. The contract includes implementation of a system to enable customers to track their material requirements online in real time at any time.
In another major improvement on the current situation, the contract requires Exel Saudi Arabia to receive materials directly from ports/airports, local suppliers and manufacturers at its strategically located, state-of-the-art materials distribution centers (MDCs) in Dammam/Khobar, Riyadh, Jiddah and Yanbu' - outside Saudi Aramco facilities.
Following processing within the centers, delivery of materials will be made on Exel Saudi Arabia trucks, coordinated by an Exel-developed transport management system.
The new logistics contract is a major step forward in the development of logistics infrastructure in the Kingdom, Al-Baadi said. Approximately 500-600 jobs will be created, with emphasis on employing Saudi nationals. Initially, 60 percent of available jobs will be earmarked for Saudis, from the full range of operational positions to managerial roles.
Samer Khawashki, vice president of the Olayan Group, said Exel welcomed its new partnership with Saudi Aramco, and he described it as a "strategic fit" for both companies.
Colin Wain, regional director of Exel Middle East, said Exel's wide experience and global reach would assure that Saudi Aramco is provided best-in-class, market-shaping solutions to its logistics challenges. Wain said Exel Saudi Arabia would work hard to transfer its speci alized knowledge to the Kingdom through the contract.
"Our approach to Saudization is through a program coined 'Careers not Jobs,' offering highly competitive packages for staff and their families to attract and retain qu ality and providing the opportunity to work with a global player that develops and nurtures its people in creating the Exel Saudi Aramco team," he added. |
