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Justyna Janik, project manager at Maersk Logistics talks to Abdelghani Henni about moving petrochemical mountains.

How wide is the scope of the feasibility study for Abu Dhabi's polymer park?

In partnership with ADBIC, Maersk Logistics feasibility study proposes end-to-end logistics services through a dedicated Abu Dhabi Polymer Park logistics centre. The services offered will include bulk and packed polymer storage and handling, finished goods storage, transportation, distribution and freight forwarding and are tailored to the specific requirements of the plastic conversion industry. A dedicated service provider will enable the tenants of ADPP to realise savings through synergies and economies of scale due to joint procurement of raw materials, ocean freight, trucking and safety stock pooling.

How will it help polymer park residents?

The proposed solution seeks to pool the volumes of the tenants to realise economies of scale in such services as polymer bulk handling, storage and freight forwarding. The tenants will not only benefit from lower overall logistics costs but also more lean and sophisticated supply chains, resulting in higher service levels. Our study shows this will translate into a competitive advantage for the tenants, which should enable them to service all international markets and compete with the longer-established global players.

What is the cost saving to park tenants?

The solution includes bulk and packed handling and storage of polymers, warehousing, trucking and freight forwarding services for finished goods. The total end-cost to the tenants will depend on the service, volume and scope but is expected to result in a net saving of 12% on total logistics spent as compared to current market levels.

What are the main challenges you faced whilst evaluating the study?

The key challenge during the course of the study was forecasting the future volume and product mix of the polymer park. Early mover tenants established the basis for the study however, there are still unconfirmed tenants for which volume and product forecasts were used.

How is the wider logistics industry faring in the region?

Currently the logistics industry in the Middle East is suffering from an overall slowdown which is prevalent throughout the world. However longer term there is a great deal of potential, particularly in the petrochemical sector. The pace of development in the logistics industry will be in line with an increased focus on service as opposed to high price sensitivity.

What specialist services or skills will the peotrochemical sector demand?

Outside of bulk handling requirements, not much. Petrochemical producers in the region have traditionally in-sourced logistics. This means that the operational processes tend to be customised to the requirements of the plants and factories, sometimes constituting the competitive advantage of the manufacturer. The process of outsourcing therefore requires tailored solutions and adequate change management.

Maersk Logistics provides this through our consultancy capabilities, which includes concept studies, feasibilities studies, front end engineering & design of logistics as well as project management consultancy (PMC) to ensure the transition fulfils the operational requirements. For established clients with established production, supply chain optimisation studies are conducted to facilitate the transition.

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