Emirates National Oil Company (ENOC) has joined hands with Tristar Transport, a Dubai-based multi-modal liquid logistics service provider with a global network, to set up a new joint venture (JV) in Saudi Arabia focused on specialised logistics services for the Kingdom’s petroleum and chemicals sectors.
With an initial capital outlay of SAR 30 million, the new ENOC-Tristar JV will initially operate a small fleet of vehicles this year for supporting the logistics requirements of the oil, gas and chemicals sectors in the Kingdom. Envisaged as a self-contained logistics facility, the JV plans to expand its fleet strength to 500 vehicles by 2017. The company will also operate open and covered warehousing facility for storage of oil and chemicals, and an ISO tank cleaning facility to support the growing requirements from the industry.
Announcing the JV, Saeed Khoory, chief executive officer of ENOC, said, “We are continuously exploring new growth and expansion opportunities that add value to our stakeholders. Saudi Arabia is a key market where ENOC is strengthening its footprint, in diverse sectors, through strong industry partnerships. The joint venture with Tristar Transport, an organisation with proven credentials in the logistics sector, and ENOC’s heritage in the oil & gas retail business are an ideal fit to offer world-class services in the Kingdom’s fast-growing oil, gas and chemicals logistics sectors.”
The JV agreement was signed at a ceremony held at the ENOC Headquarters in Dubai by Burhan Al Hashemi, Managing Director of ENOC Retail, and Eugene Mayne, Founder and Group CEO of Tristar, in the presence of Elias Monem, CEO for Middle East and Africa of Agility, and Abdulsalam Al Mazro, the local Saudi partner of Tristar and Chairman of Al Mazro Group.
Al Hashemi said: “ENOC has built strong industry partnerships in Saudi Arabia and the new joint venture with Tristar Transport will further enable us to expand the range of services we offer, especially in the logistics sector. According to estimates, the contract logistics sector is set to grow by an average 7 per cent in the Middle East through 2015, with the highest growth in Saudi Arabia and the UAE. Logistics ventures in Saudi Arabia are also projected to reach over US$20 billion by 2015 underlining the strong business opportunity. Tristar has proven competencies in the sector, and the joint venture will offer an array of services that meet the requirements of the industry.”
Eugene Mayne added: “Led by the sustained growth of the energy sector, there are concerted efforts to upgrade the standards and technology of Saudi Arabia’s logistics sector, particularly for the oil, gas and chemicals industries. Through our partnership with ENOC, which has demonstrated excellence in retail, terminalling and logistical operations, we are bringing to the Kingdom truly world-class services of the highest safety standards and reliability. The joint venture will focus on meeting the growing requirements of the petroleum and chemicals sectors, and will serve the GCC and wider Middle East geographic area from Saudi Arabia.”
