Procurement and Logistics Hub

Aramco, DHL announce new end-to-end Procurement and Logistics Hub joint venture

The move is expected to help customers drive supply chain efficiency and cost benefits while reducing their carbon footprint through more sustainable solutions.

Aramco, DHL announce new end-to-end Procurement and Logistics Hub joint venture

Aramco and international contract logistics provider DHL Supply Chain have announced the signing of a shareholders’ agreement for a new Procurement and Logistics Hub in Saudi Arabia, to enhance supply chain efficiency and sustainability. 

 

It would be the region’s first such hub catering to customers in the industrial, energy, chemical and petrochemical sectors.

 

The joint venture aims to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors. The joint venture would initially focus on Saudi Arabia, with aspirations to expand across the Middle East-North Africa (MENA) region.

 

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. 

 

The goal is for the joint venture to achieve industry best practices in procurement and supply chain management, as well as the deployment of more sustainable supply chain, transport and warehousing solutions. 

 

“This partnership brings together two industry leaders, each with long and storied histories,” said Amin Nasser, Aramco president and CEO. “By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the world-class shipping and logistics expertise of DHL, we aim to enable the Procurement and Logistics Hub joint venture to serve as a one-stop hub for customers’ supply chain needs.”

 

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 Nasser

 

Oscar de Bok, DHL Supply Chain CEO, said: "We are extremely excited to announce the signing of this agreement with 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. By working in partnership with Aramco, we aim to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities."

 

Through state-of-the-art technologies, the joint venture is expected to allow businesses to reduce costs, maximize efficiency, and harness digitalization. It represents the culmination of several years of cooperation between the two companies, and looks to transform inventory and logistics management, expand business, create jobs and enable economic diversification in Saudi Arabia and the MENA region.

 

The formation of the joint venture is subject to regulatory approvals and other customary closing conditions.

 

Caption for top photo: From left, Ashraf A. Al Ghazzawi, Aramco acting executive vice president of Strategy and Corporate Development; Hendrik Venter, DHL Supply Chain Europe, Middle East and Africa CEO; Oscar de Bok, DHL Supply Chain CEO; Amin Nasser, Aramco president and CEO;  Tobias Meyer, Deutsche Post DHL Group CEO-designate; Ahmad A. Al Sa'adi, Aramco executive vice president of Technical Services; and Mohammad A. Al Shammary, Aramco senior vice president of Procurement and Supply Chain Management.

 
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