Gulftainer signs management deal with Borouge

Gulftainer, the port operator based in Sharjah, has won a five-year management contract to oversee the logistics operations at a plastics plant in the Al Gharbia region owned by Borouge, a key player in Abu Dhabi's industrialisation plans. Gulftainer has joint ventures in Pakistan, Turkey and the Comoros Islands, while its main businesses are managing the port operations at the Sharjah Container Terminal in the Gulf, and the deepwater Khorfakkan port on Sharjah's east coast. The company was founded 33 years ago. "This agreement with Borouge is a positive step in our strategy for growth in the region," said Peter Richards, the group director and general manager of Gulftainer, which was founded 33 years ago. Abdulaziz al Hajri, the chief executive of Borouge, said Gulftainer would provide on-site logistics services at its plant that produces polyolefins, a raw material in plastics and a key focus of the emirate to develop downstream exports from crude oil reserves. Borouge is a joint venture of Borealis, an Austrian petrochemical company owned by the Government and Abu Dhabi National Oil Company (ADNOC). It is reportedly proceeding with a third-stage expansion of its plastics facilities to more than double capacity, to 4.5 million tonnes from 2 million tonnes a year between next year and 2014. A second-stage expansion, known as Borouge 2, is scheduled to be finished by the end of next year. "With the additional polyolefins capacity coming on stream in mid-2010 and the start-up of our logistics hubs in Singapore, and Shanghai and Guangzhou in China, it is important that we optimise our supply chain operations also in Abu Dhabi to ensure we are a long-term reliable partner for our customers throughout the Middle East and Asia," Mr al Hajri said. Gulftainer's other initiatives include a logistics and haulage joint venture in Pakistan with Pak Shaheen Group; a logistics venture in Turkey formed last year with Demas International; and a 15-year port management concession in the Comoros Islands. Gulftainer also has a logistics subsidiary, Momentum Logistics, in Sharjah. [e-mail]