Bahrain-based Kanoo Freight, a division of Yusuf Bin Ahmed Kanoo LLC (Kanoo), and BDP International (BDP) today announced the formation of a joint venture to serve the logistics and transportation needs of the Middle East’s burgeoning chemical and petrochemical industry. The new entity, named BDP Kanoo Chemical Logistics, will be based in Dammam, Saudi Arabia. Financial terms of the agreement between the two privately-held companies were not disclosed.
Established over 100 years ago, Kanoo was one of the first shipping and logistics agencies in Saudi Arabia and has grown to become one of the largest privately-held regional conglomerates in the Middle East. Kanoo has diversified across a number of complementary transportation enterprises, with an office and warehousing network covering the entire Arabian Peninsula, including the Gulf, Red Sea, and Indian sub-continent.
BDP, which is headquartered in Philadelphia, Pa., USA, has earned a reputation for domain expertise in the chemical sector over the past 40 years, and today serves nine of the world’s top 10 multinational chemical producers, as well as hundreds of others through a global network of wholly owned offices, joint ventures and affiliates in more than 120 countries. Kanoo is a charter member of the BDP Global Network.
“The establishment of this joint venture will provide the services needed for the region to fulfill its vision of economic diversification and adding more value downstream in the hydrocarbon industries,” said Fawzi Ahmed Kanoo, Board Director, Yusuf Bin Ahmed Kanoo Group, and Chairman of Kanoo Freight.
“With the emergence of the Middle East as a global logistics hub, customers in the chemical and petrochemical sector place a great deal of importance on reliable on-time supply, and BDP Kanoo is designed to focus on delivering against or exceeding these expectations.”
“With significant investments in the downstream petrochemical industries and abundance of feedstocks, the Middle East, and Saudi Arabia in particular, is becoming the epicenter of the global petrochemical industry,” said BDP President and CEO Richard J. Bolte, Jr.
“We have a substantial base of clients operating in the region which stand to benefit from our strong presence in the global chemical and petrochemical sector complemented by Kanoo’s deep expertise in regional and local trade and regulatory practices.”
According to World Trade Organization (WTO) figures, Saudi Arabia’s petrochemical exports topped $14 billion in 2008. While petrochemical production was down 12% in North America and 6% in Europe last year, Middle East production grew 14%, a trend which is forecast to continue. Industry analysts forecast that within 10 years, the Middle East will account for approximately 75% of the world’s petrochemical exports, led by Saudi Arabia.
BDP Kanoo Chemical Logistics will offer a full suite of logistics services, including freight forwarding, customs brokerage, marine, air and ground transportation, warehousing and distribution, project and energy logistics, regulatory and security compliance, process management and supply chain solutions. Supporting these services are knowledge of the unique logistics requirements of the chemical industry, dedicated teams of specialists, a Six Sigma culture, and advanced technology for easier management of global logistics with true visibility at every stage of delivery.
