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Almajdouie and Sinotrans sign deal to start logistics firm

JEDDAH - Almajdouie Group of Saudi Arabia, and Sinotrans Limited of China have signed an agreement to operate a joint venture logistics company in the Kingdom. Named as Almajdouie Sinotrans Middle East, it will operate in the areas of customs clearance, heavy oversized cargo handling and inland transportation services.

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“Both groups were working together for past three years in Saudi Arabia and successfully completed the project logistics management including customs clearance, heavy oversized cargo and inland transportation services by moving equipment for five cement production lines of Sinoma International Engineering Company Limited in Saudi Arabia and providing quality service by delivering over 500,000 freight tons cargo to the site,” Abdullah Al-Majdouie, vice president of Almajdouie Group, said during the signing ceremony held in Riyadh last week, which was attended by Zhang Jianwei, Sinotrans president and Tao Suyun, vice president.

“This JV will be the leader in logistics industry with a goal to have strong presence in Middle East and North Africa (MENA) region, bringing the best quality services to its customers,” Al Majdouie said.

He added that the Almajdouie Sinotrans Middle East will set up the main office in Saudi Arabia and offer project cargo handling, transportation and project logistics services. “It will gradually move toward GCC and other Middle East countries, while expanding its operation in a qualitative manner,” he said.

Power plant: Meanwhile, the Arabian Bemco Contracting Company Limited, a specialised contractor for building of power stations, industrial facilities and public utilities, has signed a SR8.28 billion agreement with a group of local banks.

This is a multi-purpose facility for the construction of the (PP 10) Power Plant in Riyadh, according to information made available to Khaleej Times here on Thursday.

The signing ceremony of the facilities agreement took place in Jeddah recently. Henry Sarkisian, CEO of Arabian Bemco, and representatives of the six lead mandated banks - Mutasim Mufti and Saad Ur-Rehman of Banque Saudi Fransi, the facility agent, Khalid Fagih of Samba Financial Group, the facility coordinator, and representatives of National Commercial Bank, Arab National Bank, Riyad Bank and Saudi Hollandi Bank signed the deal.

Under this contract, Arabian Bemco will construct and install approximately 2000 MW at the new site for Power Plant No. 10 (PP10) on Alkharj Road 100 km southeast of the Saudi capital. “The power delivery will be in phases starting in month 20, which is a relatively short period whereby Bemco will utilise its distinctive experience in rush projects,” the company said.

Sarkisian said that the company had expanded its activities to include the rest of the Gulf Cooperation Council (GCC) states, not only in the area of construction but also in the areas of business such as investment and development of infrastructure projects.

Pharmaceutical market: Saudi Arabia’s pharmaceutical market should reach $2.96 billion by the end of 2012, according to a report by Piribo, a UK-based independent online store supplying business information on the pharmaceutical and biotechnology industries.

‘Saudi Arabia Pharmaceuticals and Healthcare Report Q3 2008’ finds that Saudi Arabia accounts for around 65 per cent of pharmaceutical sales in the Gulf Cooperation Council (GCC) region.

The report predicts that soaring oil prices will be instrumental in causing increased public and private sector wealth in the first half of the forecast period. However, over the course of the entire period of forecast, the government’s tough stance on pricing and increased generic penetration are expected to limit market value gains. Analysts however feel that other factors such as a growing population, increasing personal wealth and increasing chronic disease burden, will mitigate the effects of the government’s stance on pricing and continue to drive market value upwards.

Authors of the report draw attention to new pharmaceutical pricing regulations, which took effect in February this year and resulted in price cuts for around 1,400 prescription drugs. They say these regulations could limit the attraction of the Kingdom’s pharmaceutical market against its GCC neighbours.