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(MENAFN - Arab News) A new joint venture company, Warehousing & Distribution Holding Company (WARED) LLC, went into operation on Tuesday, with a view to delivering customized and high-capacity transportation services across the Middle East and North Africa (MENA).
"The new joint venture, with a capital of SR120 million, is owned by Zahid Holding Group and Construction Products Holding Company (CPC) on a 50:50 basis," Marwan Faysal Alfadl, director, business division, Zahid Group Holding LLC, told a press conference at the Qasr Al-Sharq on Tuesday.
WARED's board of directors is chaired by Waleed Zahid, and its members include Saleh Binladin, architect Saad Binladin, engineer Mu'taz Sawwaf, Sami Alaa Eldeen, and Alfadl. Engineer Mu'taz Sawwaf chairs its executive committee, with Alfadl and Adnan Kronfol as members.
Zahid Holding Group's Zahid Heanor and CPC's United Transport Company (UTC) have merged into the new company.
"The partners, through their separate subsidiaries Zahid Heanor and UTC, are already reputed for meticulous and customized transportation and logistics services," Alfadl said.
The joint venture brings "unparalleled market experience and expertise" to the transportation business, he said. "With 30 years' experience in this field, we have a broad knowledge of the market requirements as well as the high capacity to meet these needs in the best ways."
WARED, which will use the latest technologies to expand in the MENA region, was formed after a thorough study of the Saudi and regional markets where companies need high expertise and professionalism to facilitate their businesses, including the provision of modern transport equipment for carrying heavyweight or over-length cargo, he added.
"In the last few years, we successfully provided logistics and transportation services to large construction projects in Saudi Arabia, in particular the King Abdullah University of Science and Technology (KAUST) project," he said. WARED's major area of business is import, transport, distribution, logistics solutions and shipping containers. The company has about 500 heavy, medium and light trucks. It also has heavy trucks to haul heavy equipment of up to 45 meters in length and weighing up to 200 tons, including giant cranes.
In fact, WARED is a "one-stop operation" that provides comprehensive contractual solutions enabling clients to work accurately within the limits of their business assessments and cash flow expectations, said Brian McHale, CEO of the joint venture, he added.
WARED provides door-to-door, sea, air and land transport services, and handles customs clearance through ports, airports and land entry points. Its integrated services for all types of cargo, including refrigerated cargo, cover shipment tracking and complete documents management all at very competitive rates and within budget. "We currently have distribution centers in 12 cities in Saudi Arabia including Madinah, Riyadh, Jeddah, Yanbu, Abha, Tabuk, Qassim, Hail, Dammam, Hofuf and Jubail," said McHale. "Also, we are about to finalize the design of the first two warehouses in Jeddah and Riyadh, each of about 40,000 square meters," he said, adding that WARED has a SR300 million investment plan in addition to its capital expenditure for expansion in 2010.
In the Arab region, WARED has an integrated branch office completed with warehouses and trucks in the industrial zone in Damascus, Syria, and a distribution branch in Jebel Ali in Dubai.
"Work is going on to establish offices, warehouses and a transport center in Egypt, which becomes operational on Oct. 6," McHale said. The expansion plan includes, in the short term, the opening of branches in Abu Dhabi, Lebanon, Jordan and Algeria. The mid-term goal is to expand across the Arab countries to the far west, to South Africa, and eastward to Asia.
WARED is presently negotiating with a major international company specialized in storage and distribution of frozen foods, for the establishment and management of refrigerated warehouses in the Middle East.
WARED's operations are also "green" with its use of low-emission, environment friendly trucks. What WARED proposes to do is to recycle the oils used by trucks under its environmentally friendly plans.
Additionally, the company uses analytical software to choose the shortest and quickest routes. Its drivers are trained to drive cleverly in order to save fuel and reduce air pollution, putting off the engine during waiting times as well as driving cautiously and safely to prevent loss of lives and property. Besides, the company uses electric forklifts for all its warehouse operations.
By K.S. Ramkumar
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