Emirates National Oil Company (ENOC) has partnered with Dubai-based Tristar Transport, a multi-modal liquid logistics service provider, to set up a new joint venture in Saudi Arabia.
The JV will have an initial capital outlay of SAR30 million ($7.99 million) and will focus on providing specialised logistics services for the Kingdom’s petroleum and chemicals sectors.
The new firm plans to begin operations with a small fleet of vehicles this year, and aims to expand its fleet strength to 500 vehicles by 2017. The company will also operate open and covered warehousing facility for the storage of oil and chemicals and an ISO tank cleaning facility.
It will have its office in Jubail in the Kingdom’s Eastern Province, a joint statement said.
Burhan Al Hashemi, managing director of ENOC Retail said: “According to estimates, the contract logistics sector is set to grow by an average seven 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 $20 billion by 2015 underlining the strong business opportunity.
“The joint venture will offer an array of services that meet the requirements of the industry.”
The primary activity of the company will be liquid logistics for the petroleum and chemicals sectors, but it will look to expand in related industries in the future, the statement said.
ENOC earlier signed a JV agreement with Aldrees Petroleum & Transport Services Company, one of Saudi Arabia’s largest petroleum retailers, to set up service stations in different locations across the Kingdom. As per the agreement, the service stations will feature ENOC’s brands such as ZOOM, Pronto, Super Lube and Super Wash.