January/February 2019
B ULK D ISTRIBUTOR
Logistics
21
DP World set to
transform East
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Abbey wins
Hovis contract
B
aking company Hovis has awarded Abbey Logistics a
UK contract to provide bulk flour distribution to its
bakeries in the Midlands and the South.
Hovis, one of the UK’s most recognised brands, selected Abbey
Logistics following a competitive tender process, where Abbey
demonstrated the added value it could provide through its
flexible and responsive distribution model, ability to invest in
new equipment and its focus on data driven continuous
improvement.
Abbey, the UK’s largest bulk food powder tanker company,
is set to invest significantly in new equipment to bolster Hovis’
existing fleet and is committed to supporting its new customer
with flexible resource from its wider nationwide bulk powder
tanker fleet. All existing bulk distribution staff currently
supporting Hovis in the Midlands and the South will also transfer
to Abbey Logistics when the contract begins.
“We are delighted that Hovis selected us to deliver this
prestigious contract and look forward to providing the
company with a dynamic and flexible service that enhances its
quality of service,” said Steve Granite, Abbey Logistics CEO.
“Our two companies are very closely aligned in terms of our
commitment to quality and continuous improvement and this
new partnership once again demonstrates Abbey’s commitment
to investment in equipment that supports our customers.”
Chris Harrop, Hovis Milling supply chain director, added:
“We needed a transport provider with expertise, experience
and the ability to drive supply chain service to ensure that
Hovis can in turn deliver to our customers and consumers.
“Abbey also demonstrated its commitment to us through its
fleet investment and we were impressed by the company’s ability
to capture and analyse real time data which will deliver increased
operational flexibility.”
espite its recent turbulent past, Rwanda has recovered to
be one of the star economic performers in Africa.
Now the country’s government is teaming up with Dubai-based
ports and logistic group DP World to open a state-of-the-art logistics
hub 20km from the capital city Kigali, and close to the international
airport. The facility is East Africa’s first ever inland dry port
developed by DP World.
DP World Kigali is a secure, bonded facility spread over 13ha and
features an inland container terminal (ICT) with modern
warehousing capacity, a container yard, administrative and services
buildings, parking areas and other facilities.
The facility accesses two secure trade gateways for eastern Africa,
Kenya’s port of Mombasa and Dar es Salaam in Tanzania. Rwanda is
working closely with Tanzania on a new standard gauge railway
from Dar es Salaam to Kigali that will add a direct rail corridor to the
two existing road routes, improving connectivity for containers and
bulk goods.
Currently, the cost of transporting a 20ft container from Shanghai
to Mombasa costs anywhere between US$500 and $1,000. Yet,
transporting the same container from Mombasa to Kigali varies
between $3,000 and $4,000. The introduction of DPWK will serve
the inland logistics problems, delays and cost by providing a one
stop shop for all logistics requirements and cargo services, and
hopefully reduce costs.
The facility o ers container handling, stu ing and de-stu ing,
warehousing, storage and other cargo handling services. Importers
from overseas can be routed through the Kigali Logistics Platform
for onward distribution to the surrounding countries of Uganda,
Tanzania, Burundi and the DRC, a growing region of over 40 million
people.
Customs o icers at the incoming port use highly advanced e-tags
to seal incoming containers. These active RFID tags allow real-time
tracking of cargoes on route to Kigali, for complete transparency
and added security. A dedicated customs team inside DP World
Kigali handles final customs clearances.
DP World Kigali is also establishing a road transport solution that
will allow clients to outsource fully their end-to-end logistics needs,
including international shipments, clearances, repacking and final
deliveries. DP World’s single-window cargo management system and
other investments in IT and automation will increase e iciency and
reduce costs. These are savings that can be passed down along the
supply chain to drive more growth in the region’s economy.
DP World Kigali is a secure, bonded facility spread over 13ha
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P
etrochemical company Borouge has awarded ADNOC
Logistics & Services (ADNOC L&S), the shipping and
services arm of the Abu Dhabi National Oil Company
(ADNOC), a three-year contract to transport 11 million tonnes
of polymers from its Ruwais container terminal in Abu Dhabi,
to Khalifa and Jebel Ali ports.
The contract, awarded after a competitive bidding process, will
support the expansion of activities at the Ruwais terminal. In May
2018, ADNOC L&S signed a five-year agreement with Borouge for
the management of its cargo handling at the terminal of up to
800,000 TEU a year, requiring a broad range of services, from
labour and management expertise, together with safety and
operations.
“This is the second co-operation of its kind between Borouge and
ADNOC L&S in which we have entrusted the handling operations of
our shipping cargo at the Ruwais container terminal,” said Ahmed
Omar Abdulla, CEO of Abu Dhabi Polymers Company (Borouge).
“This represents another developmental milestone for Borouge and
a successful step towards strengthening our supply chain, to ensure
the best and safe delivery of our products to customers around the
world. We are confident that our shipping activities will be further
enhanced thanks to the expertise of ADNOC L&S who are carrying
out all the handling operations of Borouge packed and palletised
products and bulk loaded containers in Ruwais.”
The contract was signed by Ahmed Omar Abdulla, CEO of Abu
Dhabi Polymers Company (Borouge) and Captain Abdulkareem Al-
Masabi, CEO of ADNOC L&S, in a ceremony held at Borouge’s stand
during ArabPlast 2019, the largest plastics, petrochemicals and
rubber industry trade show in the MENA region.
Al Masabi said: “By combining our assets and experience in
shipping, onshore logistics and onshore services we have created a
fully-integrated marine and logistics company, now the largest in
the region, to service customer’ needs across the oil and gas value
chain.
He added, “We offer a distinct advantage to companies, such as
Borouge, in that we can support their diverse needs within port and
shipping operations. We are confident that our partnership with
Borouge is a model that can be replicated to win new business with
both regional and international players.”
Through a combined programme of strategic partnerships and
investments, ADNOC will increase its range and volume of high
value downstream products, secure better access to growth markets
and create a manufacturing ecosystem in Ruwais that will stimulate
in-country value creation, private sector growth and specialised job
opportunities. As the company grows its downstream business, new
opportunities will also be created for ADNOC Logistics and Services,
as ADNOC Group’s shipping and logistics arm.
The contract with Borouge, which is a joint venture between
ADNOC and Austria-based Borealis, supports ADNOC’s 2030
strategy to grow its downstream business, which will see the
company tripling production of petrochemicals to 14.4 million
tonnes a year by 2025.
In May 2018, at its Downstream Investment Forum, ADNOC
unveiled a blueprint to create the world’s largest integrated refining
and petrochemicals complex, in Ruwais, enabling the company to
stretch the value of every barrel it produces. Implementation is now
underway.