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Borouge and CWT in Singapore hub deal

posted on 03/02/2009: 3450 views

Borouge, a leading provider of innovative, value-creating plastics solutions, has signed a service contract with CWT Logistics, Singapore, to establish the Borouge Southeast Asia logistics hub.

According to the agreement, CWT Logistics will also provide local logistics services for Borouge's customers in Asia for 10 years with effect from its operational start-up date in 2010.

CWT Logistics will undertake the design, development and construction of a packaging facility, together with providing dedicated existing state-of-the-art warehouse facilities at the Singapore commodity hub for the storage of Borouge products. In addition to the storage facilities, CWT Logistics will also be providing packaging services and an integrated container depot to handle a total annual volume of approximately 330,000 tonnes of polyolefins dispatched by Borouge from Abu Dhabi to the logistics hub.

"The Southeast Asia logistics hub is the third such logistics facility to be awarded by Borouge in the Far East. The hubs will provide storage and logistics support for our operations close to our customers," said Abdulaziz Alhajri, Chief Executive Officer of Borouge Abu Dhabi Polymers.

"This will enable us to provide fast and flexible delivery service to our customers for all of Borouge's high-value product lines, especially for our customers in Southeast Asia, Australia and the surrounding regions since Singapore represents an unrivalled trans-shipment hub in the Far East."

The position of CWT Logistics as an established long-term logistics provider in Singapore, with a strong knowledge of the region and the local logistics market, will greatly boost Borouge's growth in Southeast Asia and the Far East, Alhajri added.

Eric Herman, CEO of CWT Logistics, said his company has continued to strive for service excellence through its employees, well-designed processes and professionalism. "We are able to generate synergies from the various expertise within the group so as to arrive at a solution that is efficient, cost-effective and tailored to the needs of our partners," he said.

Herman noted that for the Borouge Southeast Asia/Singapore logistics hub, CWT Logistics will combine its extensive network, strong supply chain knowledge and innovation of warehousing to provide the most robust solution for Borouge to meet its future growth plans by bringing the company closer to its markets and delivering the best service to its customers in the region.

Borouge's current production capacity in the UAE is 600,000 tonnes of Borstar polyethylene per year. With the ongoing Borouge 2 project expansion, this capacity will increase to two million tonnes per year by the middle of 2010 and will add polypropylene to the product mix. Construction of the Borouge 2 facility has already started and consists of a 1.5 million tonnes ethane cracker, the world's largest olefins conversion unit (with a capacity of 750,000 tonnes), two Borstar polypropylene plants with a total capacity of 800,000 tonnes and a 540,000 tonnes Borstar polyethylene plant. – Emirates Business


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