With more than 750 port calls planned this year, Maersk Line, part of the AP Moller Maersk (APMM) Group, is set to play a key role in the kingdom’s import and export trade. Back in 2010, the number of port calls was 450, so the additional calls effectively amount to an increase of 56 per cent.

“This growth illustrates Maersk Line’s strategic value for the Saudi market, and it is backed up by operational excellence, product enhancement and human resource development,” a Maersk Line statement said. 

“New services were introduced in 2012 to cover emerging markets in the west particularly, and from both eastern and western provinces of the kingdom. These have been appreciated by customers as transportation time has been reduced, and direct connections to emerging markets have been established.”

The APMM Group has pledged to contribute positively across Saudi Arabia and continue to invest in services and skills development to strengthen trade activities. It indicated it was in a sound position to capitalise on the projected boom in the kingdom with expertise for easing cargo handling and facilitate commerce.

More than $400 billion has been budgeted for spending on Saudi infrastructure development in the coming three years. The Saudi retail business is estimated to be worth $83 billion in 2012 and projected to reach $131.2 billion by 2016. Saudi Arabia has largely a young population and personal disposable income levels are expected to grow at 10 per cent CAGR over the next five years, making the country one of the most attractive markets for retail business.

Saudi Arabia is a key player in global petrochemicals manufacturing. More than $10 billion has been invested in the sector over the past two years and additionally $10 billion is planned to be invested for the next two years primarily in the industrial hub cities of Jubail and Yanbu.

“Exports and imports have grown more than 15 per cent in 2012 over last year, and APMM is looking forward to assisting in this challenging period,” Sunil Joseph, managing director of Maersk in Saudi Arabia, said.

As delays in delivery schedules could mean loss of future business for customers, APMM will “continue to go the extra mile” to ensure schedule integrity and reliability, he added.

A RELIABLE CARRIER
Maersk Line said its vessels maintained on-time departures at more than 90 per cent accuracy during the period of congestion. “The company held its competitive edge: while other carriers were waiting for days before they could berth in the terminal, Maersk was able to maintain weekly calls as per schedule, as the only carrier in the industry. The good experience was appreciated by customers,”  it said.

Rigo Van Loy, freight forwarding advisor of ExxonMobil, says: “Maersk Line is the only carrier with a fixed window and the only shipping company that maintains schedule integrity. All other carriers that we work with require three to four days’ buffer in their schedules.”

Another important focus area for Maersk Line is efficient and hassle-free processes.

“The on-line systems developed by Maersk Line to process bookings and track shipments, for example, are the best across the industry today,” commented Joseph.

In addition to its product offerings and transit times, Maersk Line is committed to working with various stakeholders across the ministries of transportation, ports, customs and related departments. The goal is to implement process improvements in the current not very efficient setup for giving smooth cargo handling and clearance opportunities to Saudi customers.

For example, Maersk Line’s staff has assisted customers in adopting new methods of transporting cargo. The dry exports in reefer equipment, popularly called NOR (non-operating reefer), has more than doubled in 2012 as Saudi customers realised the importance of equipment availability and seamless operations. They were quick to embrace the concept and reap the benefits.

Maersk Line has noted there is high wastage in the shipping industry across Saudi Arabia and space on vessels is not utilised to its full potential. The container turn time and free time is much longer than in neighbouring markets. Additionally, the availability of equipment is a challenge due to the east-west imbalance, and the process of positioning empty equipment is long and cumbersome. There are fewer direct products in the Saudi market with rates being far less than in neighbouring markets which offer higher returns on investment.

Maersk Line’s says its response to these challenges is having professionals in the industry who work closely with customers and other stakeholders, such as terminals, customs and transportation and shipping ministries to provide solutions aimed at sustaining growth.