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Almajdouie Logistics Exclusive interview with Mohammed Almajdouie, CEO.
The Pioneering, Titan Logistics Services Provider in Saudi Arabia
Almajdouie Logistics facilitates complex logistics operations across the Kingdom seamlessly through expertise and experience
Almajdouie Logistics is a powerhouse in the logistics and supply chain industry in the region. The multi-award-winning company operates in Saudi Arabia, the Middle East and the Far East, providing integrated logistics and comprehensive supply chain solutions to major industries ranging from FMCG to petrochemicals.
The aerial view image of our team transporting components for the Dumat Al Jandal wind farm was selected as photo of the year: over land in the Heavy Lift & Project Forwarding International (HLPFI) Readers vote Awards 2021
Founded in 1965 by Sheikh Ali Ibrahim Almajdouie, the eponymously named Almajdouie Holding initially started out as a land transportation company in Saudi Arabia’s oil-rich Eastern Province.
Headquartered in Dammam, Almajdouie Logistics owns, operates, and integrates its extensive assets and is backed by a team of experts committed to exceeding customer’s expectations. With over 57 years’ cumulative experience serving mega projects; the company is expanding its operation by providing safe, efficient and economical solutions.
Over five decades of operation, the group has grown to incorporate multiple business lines across various industries including automotive, real estate, and steel manufacturing, while logistics has always remained its core business. Today, the group has over 5,000 employees in Saudi Arabia and its associate offices.
Global Supply Chain conducted an exclusive interview with Mohammed Almajdouie, CEO, Almajdouie Logistics, and scion of the Almajdouie family, where he spoke fondly and expansively about the growth and evolution of the company founded by his visionary father Sheikh Ali Ibrahim Almajdouie, 57 years ago founded as a land transport company with a single truck asset.
Over the decades, the vast Almajdouie Conglomerate has grown by leaps and bounds and is now a vibrant, multi-faceted group with interests beyond logistics and supply chain into automobiles, industrials, manufacturing, steel and food products among several other industry verticals.
According to the CEO, Almajdouie Logistics’ main activities cover ThirdParty Logistics (3PL), Automotive, Food, Financial Services, Education, Manufacturing, Real Estate, and Travel industries.
Almajdouie Logistics is an awardwinning company that provides integrated logistics and supply chain solutions to a diverse range of industries in the region, including petrochemical, oil & gas, power & utilities, FMCG & retail, healthcare, and automotive. For more
Mohammed Almajdouie, CEO, Almajdouie Logistics
than 57 years, it has built its reputation on quality, safety, reliability, innovation, and exceeding customers’ expectations.
Extensive assets
Backed by a dedicated team of professionals and an extensive portfolio of assets, including a state-of-the-art- control tower, it continues to serve major clients and megaprojects in Saudi Arabia, the Middle East, and the Far East.
“Customer satisfaction remains a top priority at Almajdouie Logistics. We pride ourselves on innovation and ingenuity, which stands us apart and enables us to provide bespoke solutions that are as simple or complex as our customers may require. Innovation plays a vitally important role because it improves the way we utilize our capabilities, assets, and resources, which helps us to find new ways of exceeding our customers’ expectations,” he affirmed.
Expansion
In addition to its owned subsidiaries, Almajdouie Logistics has forged selective global partnerships with international market leaders in the supply chain industry, which add to its expertise and expand its know-how in various facets of planning. This includes its partnerships with De-Rijke, GEFCO, Sumitomo, and Sinotrans.
“Through our partnership with GEFCO, Almajdouie Logistics launched Arabian Logistics Solutions (ALS), which is the first integrated Finished Vehicle Logistics (FVL) company in the Kingdom of Saudi Arabia. While all vehicle importers have in-house departments for FVL activities, some of them outsource their transportation and customs clearance requirements,” the CEO explained.
“We are the only company that handles the entire supply chain, which enables us to provide customers with costeffective solutions that result in shorter lead times and increased operational efficiency. Despite the challenges of the pandemic and the global shortage of semiconductors, we continue to deliver products to customers safely and on time. This achievement reflects the strength of our five-year partnership,” the CEO further asserted.
Automation
Automation is becoming increasingly prevalent globally, enhancing the safety, stability, and efficiency of operations. It also makes it easier to meet client contractual agreements and deliver a seamless service.
Although investing in automation
technology can be expensive, many operators, including Almajdouie Logistics, recognize the long-term benefits. Adopting this technology makes it easier to keep up with market trends and customers’ evolving expectations.
“Despite the many advantages of digitalization and artificial intelligence, some people believe that these technologies will make human workers obsolete. However, this is not the case. They are important tools that free people from dangerous or boring tasks so they can take on more intellectually stimulating assignments, making companies more productive,” the CEO observed.
Economic Vision 2030
The Kingdom continues making huge strides towards sustainable development, in line with its Economic Vision 2030. Sustainability is crucial to the future of the logistics industry, which is why leading logistics service providers around the world are taking steps to support this process.
“From our use of fuel-efficient vehicles to our involvement with national renewable energy projects such as the Dumat Al Jandal Wind Farm and the Sakakah Solar PV Plant, Almajdouie Logistics is pleased to play a role in shaping a cleaner and brighter future for Saudi Arabia,” the CEO noted.
Almajdouie Logistics was recognized at the Transport & Logistics Middle East Innovation Awards 2022 for its work on the Dumat Al Jandal Wind Farm project, which is the largest in the Middle East. The team provided heavy transportation, storage, and heavy lift solutions for the project, which is an essential part of the Kingdom’s National Renewable Energy Programme. During this milestone project, our vehicles carried out more than 850 journeys and traveled more than 600,000 km.
The project was a huge undertaking and careful planning was required to ensure a successful outcome. The team enhanced a plug-and-play solution to transport the giant components of the wind turbines, which can reach 100 metres or more in length. Projects such as
RoSPA President Baroness Jolly and Chief Executive Errol Taylor presented the award to Firas Yaqoub Al Saleh - MdR SSHEQ Manager in Dubai.
Almajdouie de Rijke (MdR)
MdR is a joint venture between Almajdouie Logistics (KSA) and De-Rijke Group from the Netherlands (NL).
MdR recently received the Silver Award from the Royal Society for the Prevention of Accidents (RoSPA) for its commitment to health and safety. The internationally renowned RoSPA Health and Safety Awards recognize organizations that have demonstrated an exceptional commitment to raising the standards of health and safety management.
MdR was also recognized by RoPSA with an award for ‘best working environment’ during the Covid-19 pandemic.
MdR has a zero-accident target and is committed to compliance with all International, legal and customer requirements like ISO-26000 Corporate Social Responsibility, ISO-22301 Security and Resilience-Business Continuity Management System, among others.
Standing as a testament to MdR’s employees’ dedication and commitment to excellence are the awards that MdR has been the proud winner of. The company received the best contractor award from Yanpet in 2021.
In 2019, MdR secured its first major project outside of Saudi Arabia, providing all onsite logistics services for a leading company in Oman.
Won Bespoke Logistics Project of the Year at the Transport & Logistics Middle East Innovation Awards 2022 in Dubai.
this reflect the Kingdom’s commitment to diversification, especially in terms of energy production.
Dumat Al Jandal Wind Farm
“The image of our team transporting components for the Dumat Al Jandal Wind Farm was selected as Photo of The Year: Overland in the Heavy Lift & Project Forwarding International (HLPFI) Readers’ Vote Awards 2021. Approximately 26 international companies submitted entries in this category. Our winning entry shows a convoy of trucks traveling from Duba Port, the nearest Saudi Port to the Suez Canal on the Red Sea, to the project site in the northern Al Jouf region of Saudi Arabia,” the CEO further revealed.
The Sakakah Solar PV Plant, the first renewable energy project in the Kingdom of Saudi Arabia, is now connected to the national grid. The project marks a major milestone in the Kingdom’s journey towards sustainable development, in line with its Economic Vision 2030. Almajdouie Logistics provided heavy transport and customs clearance services for this key project.
In partnership with Almajdouie Motors, the official distributor of Hyundai vehicles in the Kingdom, Almajdouie Logistics recently enhanced its fleet with the addition of a new Hyundai Xcient Fuel Cell truck as part of a pilot project. The vehicle runs on hydrogen fuel and is equipped with advanced connectivity and safety features that will contribute to improving operational efficiency, enabling us to provide customers with higher levels of service.
“The growing renewable energy sector has huge potential and provides an ideal opportunity for Almajdouie Logistics to utilize our skills and expand our know-how. We continue to record achievement after achievement, awaiting a new challenge as we work towards a safer and more sustainable future,” the CEO concluded.
Hyundai Xcient Fuel Cell truck
Saudi Arabia’s Transport Ministry showcases its achievements
Under Saudi Vision 2030, the Kingdom’s Transport and Logistics sectors have made several inroads and key accomplishments during the past few year
The prudent policies of the Kingdom’s leadership have enabled the Saudi Arabian transport and logistics sectors to race against time to achieve development targets of Vision 2030.
Multiple accomplishments have contributed to the development of these sectors, which has been the mainstay of the Kingdom’s economy and investments for over the past seven decades following the establishment of the Ministry of Transportation in 1953, which has recently been renamed as the Ministry of Transport and Logistics Services.
The Ministry serves as an umbrella overseeing many sectors, including the Transport General Authority (TGA), which is tasked with enhancing the efficiency and effectiveness of passenger and freight transport services in the Kingdom. TGA focuses on developing logistic services, creating a conducive environment for travel, and encouraging the use of public transport services. In doing so, TGA adopts the highest standards for transport safety, environmental protection, and energy conservation.
The Ministry also oversees the General Authority of Civil Aviation (GACA) that is concerned with the development and implementation of policies and protocols governing civil aviation in Saudi Arabia. The authority uses the best communication and IT solutions to ensure air traffic safety, enable national workforce and drive performance transformation in the aviation sector.