DHL wins multi-million-dollar contract with oil giant Saudi Aramco
Worlds number one logistics provider to strengthen its leading position in the Middle EastBonn, 12/28/2006, 10:30 AM CET
DHL Exel Supply Chain, the logistics specialist at Deutsche Post World Net, has concluded a 10-year multi-million-dollar contract with the world's number one crude oil producer, Saudi Aramco. Starting with the implementation on January 1, 2007 it represents one of the largest business deals ever achieved by DHL Exel Supply Chain in the region and substantially strengthens the Group's position in the Middle East. The transition to steady state should be complete by July 2007.
DHL has been contracted to develop the oil giant's national logistics infrastructure. This encompasses the provision, management and operation of four Material Distribution Centers (MDC) or Cross-Docks in Dammam, Riyadh, Jiddah and Yanbu, of a fleet of vehicles and personnel as well as 14 Material Service Centers (MSC). To implement these activities in MDC and MSC locations, DHL will manage a staff of over 400 people. DHL will also set up a system enabling the customers of Saudi Aramco to track the transport of their orders in real time on the Internet.
Mohammed Otaibi, Manager, Material Logistics, Saudi Aramco, said: "DHL Exel Supply Chain in Saudi Arabia will replace the current fragmented logistics arrangements with an integrated supply chain service. We are delighted to embark on this long term and important commercial relationship with DHL, in the knowledge that their logistics expertise represents a perfect strategic fit with our Kingdom-wide business."
John Allan, the board member at Deutsche Post World Net in charge of the logistics business, said of the contract: "Working with the world's leading energy provider is a fantastic opportunity for us. This win is testament to the fact that we are the premier logistics provider to the oil and gas sector in the Middle East."