Emirates National Oil Company (ENOC), a diversified entity and leading retailer of fuel in the UAE, 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 Kingdomís 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 ENOCís heritage in the oil & gas retail business are an ideal fit to offer world-class services in the Kingdomís 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 with Elias Monem, Agility CEO for Middle East and Africa, and Abdulsalam Al Mazro (right), the local Saudi partner of Tristar and Al Mazro Group Chairman,
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 Arabiaís 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."
The ENOC-Tristar JV will have its office in Jubail in the Eastern Province and will be assisted by the expertise of Tristarís head office in Dubai and supported by ENOC Retail. The primary activity of the company will be liquid logistics for the petroleum and chemicals sectors, with potential for organic growth in due course and in related sectors.
ENOC has earlier signed a joint venture agreement with Aldrees Petroleum & Transport Services Company (Aldrees), one of Saudi Arabiaís largest petroleum retailers, to set up service stations in different locations across the Kingdom. As per the 50:50 JV, the service stations will feature all the specialised and popular brands operated by ENOC including ZOOM, Pronto, Super Lube and Super Wash.
Tristar has an outstanding track record of servicing the petroleum industry with the highest commitment to the best environmental, health and safety (EH&S) practices. From an entrepreneurial fuel transportation company, Tristar has grown into a multinational player offering integrated supply chain solutions for the refined petroleum products industry including sourcing, storage, handling and final distribution of fuel. Tristarís local partner, Al Mazro Group, KSA, has diversified business interests across Saudi Arabia.