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Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Islamic Port

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Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Islamic Port. Image: Maersk
Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Islamic Port. Image: Maersk
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A. P. Moller – Maersk, global integrator of container logistics, signed an agreement with Saudi Ports Authority “Mawani” committing to an investment of 136Million USD over a period of 25 years to set up an Integrated Logistics Park at the Jeddah Islamic Port in Saudi Arabia.

The agreement was signed in the presence of His Excellency the Minister of Transport and Logistics, Chairman of the Board of Directors of the Authority, Engineer Saleh bin Nasser Al-Jasser, Richard Morgan, Managing Director Maersk West & Central Asia, and several officials of related sectors. The agreement was signed by His Excellency the President of the Saudi Ports Authority, Mr. Omar bin Talal Hariri, and the Managing Director of Maersk Saudi Arabia, Mr. Mohammad Shihab.

The greenfield project spread over an area of 205,000 sq. m. will be the first of its kind at the Jeddah Islamic Port offering an array of solutions with an aim to connect and simplify the supply chains of importers and exporters in the Kingdom. Maersk will also be investing heavily in renewable energy to power this facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.

A vision for the future

Saudi Arabia’s Vision 2030 lays great importance in capitalising the Kingdom’s strategic location to build its role as an integral driver of international trade connecting the continents of Africa, Asia and Europe. Vision 2030 aims at more than tripling the share of non-oil exports from Saudi Arabia from its current levels to reach 50% of its total exports. It aims at substantially raising the Kingdom’s global ranking to top 25 in Logistics Performance Index to ensure that Saudi Arabia becomes the regional leader in logistics.

Commenting on the signing of the agreement, His Excellency the Minister of Transport, Engineer Saleh bin Nasser Al-Jasser, said, “We are pleased today by the signing of this agreement, which will be a remarkable milestone in strengthening the Kingdom’s position regionally and globally and will contribute to transforming the Kingdom into a leading global center in the field of transportation and logistics services.” He added, “The authority’s new strategy supports the maritime transport journey in the Kingdom and enables the authority to continue developing a sustainable and prosperous maritime transport system that supports the Kingdom’s social and economic ambitions and contributes to achieving the ambitious goals of Vision 2030.”

“We are pleased today by the signing of this agreement, which will be a remarkable milestone in strengthening the Kingdom’s position regionally and globally and will contribute to transforming the Kingdom into a leading global center in the field of transportation and logistics services.”, said Saleh bin Nasser Al-Jasser, Minister of Transport, Engineer.

“We are building an innovative, digital and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics & services to create value for customers in the region. Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions.” commented Richard Morgan, Managing Director, Maersk West & Central Asia.

“The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030, with the volume of container handling reaching 18 million TEUs. I am confident that this partnership will greatly enhance the distinguished operational capabilities of Jeddah Islamic Port, which ranks first among the Red Sea ports, with its strategic location on the Red Sea coast linking the international shipping route between East and West.”, said Omar bin Talal Hariri, President of the Saudi Ports Authority.

Strategic Location

Saudi Arabia’s Jeddah Islamic Port sits strategically on the Red Sea Coast connecting the international shipping route between the east and the west. With over 5 million Twenty-feet Equivalent Units (TEUs) of containers flowing in and out of Jeddah Islamic Port, it is the largest port in terms of volume and cargo handling in Saudi Arabia and second largest in GCC (Gulf Cooperation Council) countries. Over 2.5 million TEUs tranship through the Jeddah Islamic Port every year. The port also connects to hinterland through a strong road and rail network.

Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Islamic Port. Image: Maersk

Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Islamic Port. Image: Maersk

A truly integrated logistics solution for all

The bonded and non-bonded warehousing & distribution (W&D) facility will cover more than 70% of the total area while the remaining part will act as a hub for transhipment, air freight and LCL cargo. The W&D part will have several different sections to accommodate general warehousing (food & beverages, furniture, automobiles, chemicals, textile & apparel and machinery, appliances & electronics) and cold chain storage (fruits & vegetables, protein and confectionary & consumables). To cater to the rapid penetration of eCommerce in Saudi Arabia, the facility will also have a dedicated eCommerce fulfilment centre. The Integrated Logistics Park will be able to handle annual volumes close to 200,000 TEUs across different products.

“The vision for the Kingdom to diversify its economy beyond the oil sector is an important one to enable long term growth for Saudi Arabia. At Maersk, we not only believe in this vision, but are also committed to play a role by upgrading the logistics infrastructure through our integrated offering and thus opening more avenues for traders in Saudi Arabia.” said Mohamad Shihab, Managing Director, Maersk Saudi Arabia.

Future-proofing through advanced technology and renewable power

Maersk will deploy state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management, track & trace at unit-level and offers rich dashboards for higher visibility and deeper insights. These systems will help in improving efficiencies and build a cost competitive edge for Maersk’s customers.

Maersk is also charting its path to make the facility carbon-neutral eventually. The warehouses, cold storages and office building will all be powered with renewable solar energy. Even the yard machinery including forklifts, reach stackers, empty container handlers, trucks and other vehicles deployed for the movement of cargo will be electric.

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Container Shipping Lines

Wan Hai Lines establishes its new office in India

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Wan Hai Lines establishes its new office in India. Image: Unsplash
Wan Hai Lines establishes its new office in India. Image: Unsplash
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Aiming to further enhance service quality and gain a stronger foothold in the Indian sub-continent, Wan Hai Lines has established its India new office in Kolkata in July 2023. Contact details for the new office are as follows: WAN HAI LINES (INDIA) PVT. LTD 3rd Floor, Block C, Apeejay House, 15 Park Street, Kolkata, West Bengal, 700016 TEL: 91-33-4450 4500 According to the 2023 Foreign Trade Policy announced by the Indian Ministry of Commerce and Industry, India’s export trade volume will reach 2 trillion US dollars in 2030.

Therefore, benefiting from government policy incentives and the shifting trend of the global supply chain, India’s status in global manufacturing and international trade is increasing, which is conducive to maintaining long-term high economic growth. And the proportion of global exports has increased significantly. In addition, the continuous economic stimulus policy will help revitalize the domestic economy, and domestic demand is expected to increase significantly. Therefore, Wan Hai is optimistic about India’s future import and export situation. And also through the establishment of a new office to improve the overall operating efficiency.

Wan Hai India Kolkata office held a grand opening reception in the evening of 27th July. During the banquet, there were many important customers & guests. The Kolkata Port Authority, Kolkata terminal operators, feeder operators and important local customers were invited to send representatives to attend the meeting to express their blessings to Wan Hai’s opening of the Kolkata market. At present, Wan Hai has six owned offices in India, namely Mumbai, Chennai, Mundra, and Vizag, Delhi and the sixth office Kolkata office. In addition to directly providing river port services, it will also simultaneously strengthen service links between India and neighboring countries, such as Nepal and Bhutan. It is expected to pursue customer first through continuous expansion in the future and sustainable business philosophy.

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World’s Largest Container Ship, MSC MICHEL CAPPELLINI

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World's Largest Container Ship, MSC MICHEL CAPPELLINI. Image: MSC
World's Largest Container Ship, MSC MICHEL CAPPELLINI. Image: MSC
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More than 800 guests gathered in a custom-made tent at the MSC Gate Terminal in Bremerhaven to witness the naming ceremony of the latest edition to Mediterranean Shipping Company’s fleet, MSC MICHEL CAPPELLINI, with the ship as the backdrop. Prior to the naming ceremony, MSC signed a Memorandum of Understanding with the Free and Hanseatic Cities of Bremen and Hamburg and their ports, agreeing on the use of shore power for MSC’s vessels in both ports.

MSC MICHEL CAPPELLINI is one of the world’s largest and most fuel-efficient container ships by design. At 400 metres in length and with a 61.5 metre beam, it has a capacity of up to 24,346 TEUs. Despite her magnificent size, her design and technical specifications enable the shipment of more cargo at the lowest carbon footprint per container carried.

The vessel employs a small bulbous bow, large diameter propellers and energy-saving ducts, which will help to further reduce fuel consumption and associated greenhouse gas emissions.

MSC MICHEL CAPPELLINI and her sister ships are also built with an air lubrication system to reduce drag on the hull, as well as shaft generators to yield additional power.

In his welcome speech, MSC CEO Soren Toft highlighted the importance of Bremerhaven to MSC as a European cargo hub: “The ports in Bremen are such an important cargo hub for us in Germany and in Northwest Europe. It is truly a strategic location for MSC, and home to over 370 of our colleagues. However, our connection with Germany goes deeper than trade. This is the third naming ceremony of an MSC vessel since 2015, and the second in Bremerhaven. It is therefore by no surprise that we continue to grow with our customers in Germany.”

Soren continued: “Efficiency and innovation are two drivers that led to the development of the MSC MICHEL CAPPELLINI. Through innovation we seek to shift the boundaries of what is possible and surpass our own industry-breaking milestones, a process of continuous evolution. Both, as a family company and as the leader of our industry, we are very mindful of MSC’s key role in decarbonizing the logistics value chain, and the benchmark we set for others in our industry.”

MSC Germany Managing Director Nils Kahn also highlighted the importance of the ports of Bremen as an MSC location: “We handle more than 1 Mio TEU per year here and run dedicated trains to and from many domestic locations. We are connecting the world from exactly this location with a weekly service to the Eastern Mediterranean, two weekly services to the Far East, three weekly services to South America and Mexico and an impressive five weekly services to North America.”

The ship’s blessing was conducted by Provost Dr. Bernhard Stecker, who has led the Catholic Community Association Bremen since 2019 and is the head of the Catholic Office in Bremen, the liaison office of the Catholic Church to the Bremen Senate and the Bremen Parliament in the state. After the blessing, Godmother Cindy-Jo Cappellini performed the christening of the ship by cutting the ribbon and smashing a bottle of champagne against the hull.

Yellow confetti streamed down, the ship’s horns sounded and MSC MICHEL CAPPELLINI can now travel the world’s oceans.

Memorandum of Understanding on Shore Power Infrastructure

Shortly before the naming ceremony started, Kai Stuehrenberg, State Secretary for Economic Affairs of the Free Hanseatic City of Bremen, Andreas Dressel, Senator for Finance of the Free and Hanseatic City of Hamburg and MSC CEO Soren Toft met for the signing of a Memorandum of Understanding (MoU) agreeing on the use of shore power for MSC container vessels in both ports.

Soren Toft said: “I am particularly proud that we signed a Memorandum of Understanding between MSC, the Free and Hanseatic Cities of Bremen and Hamburg, and their port administrations, to partner and collaborate on the implementation of shore power taking us one step closer to ensuring a decarbonized supply chain for global trade.”

MSC Germany Managing Director Nils Kahn also called on German authorities in Berlin to ensure closer collaboration between German ports on the topic of infrastructure development, citing the MoU signed between MSC and the port authorities as an example of what private-public partnership means for MSC.

Additional speeches were given by Kai Stuehrenberg, State Secretary for Economic Affairs of the Free Hanseatic City of Bremen, Andreas Dressel, Senator for Finance of the Free and Hanseatic City of Hamburg.

The Naming Ceremony

The ceremony was a celebration, highlighting MSC’s commitment to sustainability, sports and the arts. It was moderated by German TV presenter, Jule Gölsdorf. She introduced Boris Herrmann, Germany’s leading yachtsman, world record holder and skipper of sailing team Team Malizia. Boris Herrmann shared his experience from the recent Ocean Race. MSC is a sponsor of Team Malizia and one of the six Official Founding Partners. In front of the 800-guest crowd Boris expressed his gratitude for MSC’s sponsorship and dedication to net zero commitments.

Guests included representatives of local authorities and businesses, customers and journalists. They enjoyed a spectacular performance by Andrea Casta, the famous Italian crossover electric violinist, and Sarah Voss, Germany’s artistic gymnast, all-around national champion and bronze medal winner in the team competition at the 2022 European Championships. The live music and the acrobatic gymnastic performance expressed the very concept of balance between progress and sustainability, humans and nature, present and past.

MSC CEO Soren Toft concluded: “Global trade is crucial for maintaining peace, economic development and growth, and we are serving as a neutral force in the face of the political and diplomatic adversity we see today. Our new 24,000 TEUs-class ships, some of the world’s largest currently on the water, are essential for facilitating and enabling effective global trade. Ultimately connecting cultures, people and continents.“

 

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ONE announces FLX, a new service for South American reefer shipments

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ONE announces FLX, a new service for South American reefer shipments. Image: ONE
ONE announces FLX, a new service for South American reefer shipments. Image: ONE
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Ocean Network Express Pte. Ltd. announces FLX, a new service connecting the West Coast of South America to the East Coast of North America. The service is set to launch in September 2023. With an emphasis on innovative and efficient transportation solutions, FLX caters to customers looking for reliable South American reefer container shipments.

Flavorful South American Delights Reach New Shores

Many Latin American fruits, vegetables and seafood, such as mangoes, asparagus, shrimp, have been gaining popularity worldwide. As a result, Latin American reefer container transportation has seen a remarkable growth, nearly doubling over the past few years.

Strengthening Our Commitment to South America and Reefer Services

With our reefer services, we have established ourselves as a significant player on the Latin America-Asia route, for which we have earned praise from our customers over the years. To further improve the quality of our transportation services, we are redoubling our efforts by investing in state-of-the-art equipment, including Control Atmosphere (CA) containers and telematics devices.

Unveiling FLX: Expanding New Horizons for Shipments

FLX provides exclusive service, connecting the South America West Coast to the North America East Coast (Florida) with our own dedicated fleet of vessels. The service aims to offer fresh options to our valued customers, including those previously engaged in Asia-bound shipments, while expanding shipping possibilities and streamlining supply chain processes. FLX will launch in September 2023 in preparation for the harvest and shipping season.

Service Details

The FLX service will deploy four vessels in order to ensure schedule stability. This service will connect Callao and Paita (Peru), and Guayaquil (Ecuador) to South Florida with one of the fastest transit times on the market. With excellent options for the transportation of refrigerated cargo, the direct routes include Callao-South Florida in 11 days, Paita-South Florida in 9 days, and Guayaquil-South Florida in 8 days.

Furthermore, FLX provides a direct connection from South Florida to Honduras, in addition to destinations in Colombia, Ecuador and Peru. With hub ports like Cartagena (Colombia) and Callao (Peru), ONE services can be seamlessly connected with other services to/from the United States, East Coast South America, Europe, Caribbean and Asia.

Chilean exporters can also conveniently connect their cargoes via Callao, adding to the route’s accessibility. In summary, the FLX route offers multiple connection options:
Callao – Paita – Guayaquil – Cartagena – South Florida – Puerto Cortés – Cartagena – Callao.

Yu Kurimoto, Managing Director of ONE said, “We aim to share South America’s distinctive flavors with people across the globe. With our FLX and LUX services, we are excited to open new doors for businesses and individuals, enabling them to enjoy the authentic tastes of this vibrant region.”

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