S.A. TALKE on Petrochem Logistics Challenges
SA Talke is one of the most well-known logistics brands in Saudi Arabia, and is globally respected for its highly efficient logistics services for the oil and gas sector. But, the company faces a challenge, while it is famous for oil and gas logistics, it fortunes rest to a large extent on the economic performance of that sector. For this reason, SA Talke wants to diversify, and it plans to do so by leveraging the world-class reputation it has developed in the oil and gas sector.
“We’re looking to diversify our business. Our core business will always be petrochemical, but we also have a strong network that can be adapted for other sectors, the ability to package and transport petrochemicals in an efficient, safe and environmentally friendly way will enable us to be more flexible and bring in additional business in healthcare, food logistics and so on,” says Oliver Klingbeil, managing director of SA Talke. “It’s about combining our core competencies with other market niches.”
SA Talke’s core competence is in on-site logistics operations. It was recently awarded an on-site logistics contract for National Petrochemical Industrial Company (NATPET) in Yanbu, province of Medina, Saudi Arabia. SA Talke will operate on-site logistics for NATPET in Medina´s Yanbu industrial city for an initial period of three years. The contract encompasses product handling and warehouse management.
“We are very pleased we could secure SA Talke´s support to this production entity," says Jamal Malaikah, president and COO of NATPET. “By this move we will further enhance our supply chain efficiency and thus our customers´ experience of our product and service quality,” he added.
With this contract, S.A. TALKE extended the geographical availability of its services from its traditional core area Al-Jubail industrial city, on Saudi´s east coast, to the western province. Speaking about on-site logistics operations broadly, Klingbeil says that it is just one of the services in the company’s portfolio.
“In on-site operation we manage the plant for the client with our own manpower and equipment, that’s usually a 24/7 operation throughout the year. Then we have our own off-site logistics operations of course, we have a silo farm and also dedicated warehousing where we handle the product,” he explains. “We also do consultancy, because we’ve seen a lot of these big players deciding to build a major new plant, but building the facility is just one aspect of the business, operating it and getting all the logistics right can be tricky if it’s not your core competency.”
For some clients, such as Saudi Chevron Phillips Company, SA Talke was also involved in the actual design and development of the refinery. “Clients come to us because sometimes a plant may look good on paper but safety and security issues come into play that they hadn’t expected. So we help the client to refine the plans and make it so that they can go live without any last minute issues,” says Klingbeil.
As a company with a 70-year history in oil and gas logistics, and a 5-million man hours without LTI, SA Talke is a company in high demand, especially since the oil price pulled the rug out from beneath the sector. “There are always pros and cons to this. For us we have regular KPI meetings where we show very clear productivity and efficiency for the client, this includes reduced damages, reduced overtime, reduced downtime, it shows the client that working with us was the right decision,” says Klingbeil.
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For the editorial teams
S.A. TALKE is a joint venture company between ALFRED TALKE group from Germany. The SISCO group from Jeddah and the Al-Jabr group from the Eastern Province. Established in 2003, S.A. TALKE made a pioneering move by entering the first on-site outsourcing relationship in the region.
Offering a full range of specialized logistics services to the Chemical and Petrochemical industries in Saudi Arabia, S.A. TALKE ensures the highest standards of Safety, Service and Quality in all operations.
Leveraging on ALFRED TALKE’s European competence in design, construction and operation of logistic sites as well as capitalize on wide network knowledge, S.A TALKE provides supply chain solutions including on-site/off-site operations, packaging, storage, transport, complemented by a wide range of value added services focused on the logistics of chemical products.
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