Logistics solutions key to Mid-East plastic growth

04 September 2007 03:54  [Source: ICIS news]

DUBAI (ICIS news)--Innovative logistics solutions would play a crucial role in the growth of the Middle East plastic industry, particularly in lieu of the excess polyolefin capacities between 2009-2010, a senior industry official said on Monday.

Logistics would play a crucial role in the Borouge 2 expansion programme, set to triple production capability by 2010, by getting products to customers, Harald Hammer, chief executive officer, Borouge told the MariChem Middle East 2007.

Consequently, the weekly number of trucks and containers to ship products to the Middle East and Asia would increase to 280 trucks and 1400 containers from the current 115 trucks and 400 containers once Borouge 2 came on stream.

He said that the company’s logistics concept would aim for a "pipeline flow" between the Middle East and local hubs in southeast Asia and northeast Asia, which would be managed on replenishment basis.

The concept also included container and product handling in Ruwais, United Arab Emirates (UAE), and through global shipping to hubs.

The Middle East was likely to experience a strong increase in polyethylene (PE) capacity, particularly in 2009-2010, he said. This rapid rise in petrochemical capacity and export volumes would create a significant challenge to the shipping industry.

Hammer said logistics service providers had an important role to play in the management and execution of complex material flow, which, combined with Borouge’s core competence of plastics would provide a win-win situation for both parties.

He highlighted the need for cooperation to find solutions to common logistics challenges that would arise out of this excess 6m tonnes of polyolefins capacity between 2009-2010.

He hoped that the Gulf Petrochemicals and Chemicals Association (GPCA) committee for logistics, which was on track for start-up in 2008, would improve the transport sector.

The conference ends on Tuesday.

By: Anuradha Rao
+65 6780 4359

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