Saudi’s logistic giant
S . A . TA L K E
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Superior
logistics from A••••to••••B WRITTEN BY
LAURA MULLAN
PRODUCED BY
HEYKEL OUNI
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Standing as one of Saudi Arabia’s leading petrochemical logistics providers, S.A. TALKE shares its strategy for success ith the nation’s ‘Vision 2030’ on the horizon, Saudi Arabia has ramped up its efforts to diversify its economy and reduce its dependence on oil. As such, it has turned its attention to another lucrative commodity – petrochemicals. The Saudi petrochemical industry is critical to the Kingdom’s non-oil economy, with chemical and plastic exports accounting for around $30bn in export revenues in 2015. Saudi Arabia’s efforts to tap into the global petrochemical market is paying off and it seems
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no company understands this better than S.A. TALKE. Earning its stripes as one of the country’s leading logistics service providers, S.A. TALKE offers a range of specialised logistics services such as onsite and off-site operations, packaging, storage, transport as well as value-added services. Established as a joint venture between the German TALKE Group and the Saudi Sisco and Al-Jabr Groups, Managing Director Oliver Klingbeil says that S.A. TALKE has worked hard to cement its position in the region. “I’ve been in the logistics busi-
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“ We’re always defining new ways and new parameters to make safety. This is the culture we uphold and live by every day. You don’t achieve 6mn man hours without LTI without this culture” — Oliver Klingbeil Managing Director
ness for over 30 years,” Klingbeil says. “When I first started at S.A. TALKE in September 2010, I had a team of around 274 staff and we had one project. Now, eight years later, we have close to 1,800 employees and 12 operations in place. “In the beginning, we were not well known in the market, but since we were founded we have consistently developed our expertise and reputation. “We depend on certain parameters, like the oil price, but
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where others haven’t been so successful, we have seen strong growth,” he continues. “We’ve significantly increased our revenue and our net profits. We are always project-driven and have gained awards for our projects. We’ve branched out from our European partners (ALFRED TALKE) and established our brand of S.A. TALKE, which is well-known in Saudi Arabia and the Middle East.” As part of the business, S.A. TALKE handles solids and liquids in the petrochemical sector from J U LY 2 0 1 8
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companies such as SABIC and Chev-
region. Today one of our biggest pro-
ron Phillips – both offsite and onsite.
jects is the Petro Rabigh project phase
The firm can manage entire logistics
II in the western region, which is a joint
centres or individual facilities on its cli-
venture between Saudi Aramco and
ent’s behalf and can also offer offsite
Sumitomo. Through the project, we
multi-user facilities to manage and han-
manage five plants and we have
dle products.
started with 350 staff but we plan to
Last year S.A. TALKE handled
increase the number of staff to up to
around 8.4mn tonnes of products for its
800 people based on how many addi-
customers. Yet, despite its growing
tional projects we see there.
reach, Klingbeil says the firm takes a
“Of course, we also have projects with
project-driven approach to ensure
various SABIC affiliates,” he adds. “We
each project receives the utmost care
manage their Portside Logistics Facil-
and diligence.
ity, which is a 350,000 sqm container
“One of my personal goals was to step into the market in the western
yard where we have the daily movement of around 500 to 700 containers. w w w. s a - t a l k e . c o m
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We also work with Chevron Phil-
manage their container yards and
lips where we manage the entire
some of their products. Then, not to
site for them with two dust free
forget, in Yanbu in the Western region,
warehouses on the site close to
we have a contract with NATPET where
around 100,000 sqm.
we also manage their onsite opera-
“On top of this, we have the Tasnee project where we now
tions.” With experience in projects stretch-
have five existing operations we
ing across Saudi Arabia, one thing
manage. We also have business
remains constant at S.A. TALKE – the
with Dow Chemicals, where we
company’s drive for efficiency and pro-
have a dedicated warehouse
ductivity. With scrupulous monitoring
which we manage for them.
and technological ingenuity, S.A.
“Additionally, we also have business with Sadara, which is a joint venture between Aramco and Dow Chemical where we
TALKE ensures that it upholds best in class standards. “Every day we measure our operations to see how we can become w w w. s a - t a l k e . c o m
S . A . TA L K E
better, more efficient and productive.
The future of logistics is one
We have regular meetings about safety,
which is paved with new innova-
operations, optimisation and finance,
tion and technologies and this is
for example, because the business is
also the case at S.A. TALKE.
not standing still. “We manage and monitor every
Using automation and SAP software, for instance, S.A.
product individually. Every project
TALKE is driving efficiency like
stands for itself,” he adds.
never before.
This continuous improvement is also having a knock-on effect on the company’s safety standards. In fact, in January, the Saudi firm achieved 6mn safe man-hours without Lost Time Injury (LTI) across all the company’s 10
projects. It’s a proud achievement, says Klingbeil, and one which he believes wouldn’t be possible without the company’s high safety standards. “We have a very dedicated safety department and a strong safety culture,” he observes. “Our safety standards and procedures are important to the firm. It starts with myself and we live this culture through every single person. “We’re always defining new ways and new parameters to make safety. This is the culture we uphold and live by every day. You don’t achieve 6mn man hours without LTI without this culture.” J U LY 2 0 1 8
“ Our core business always will be in the petrochemical market, that is what we do best. But we are also looking to explore other market segments” — Oliver Klingbeil Managing Director
“Technology is very important
implemented several new software
as it’s helping us to save time and
solutions in our finance, procurement,
be more efficient,” Klingbeil says.
and HR department.”
“We’re also working on monitor-
With several large-scale logistics con-
ing and managing truck terminals
tracts in its portfolio, S.A. TALKE’s core
so that we can manage these
competency is namely the transporta-
processes and see the entire sup-
tion and handling of liquid chemicals.
ply chain. Internally, we have also
However, keen to keep pace with a
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rapidly changing market, Klingbeil says that the company is preparing a plan B and C, in case of disruption in the market. Leveraging the world-class reputation it has developed in the oil and gas market, the Saudi firm says it is going to combine its core competencies with other market niches to remain ahead of the curve. “Our core business always will be in the petrochemical market, that is what we do best,” says 12
Klingbeil. “But we are also looking to explore other market segments.” “We’re exploring doing trucking in the future for dedicated customers in the chemical market because there is a huge demand for this and we’ve also been looking into managing railway terminals. “We’ve just been awarded a contract from SABIC whereby we will manage their truck terminal in the future, which is a movement of around 750 trucks per day. At the moment we still have a long way to go but, on the J U LY 2 0 1 8
other hand, you cannot start early
employee accomplishments, pro-
enough if you want to get knowl-
mote open communication and
edge and experience in this field.”
hire a diverse range of people,
It seems that agility is key to
even hiring the company’s first
S.A. TALKE’s day-to-day opera-
female employees.
tions, yet despite its dynamic
“The biggest gift is that we
ethos, the company is keen to
have so many incredible team
uphold its core businesses and
members and leaders who are
retain its existing customers.
supporting the company and our
“The world is changing, the market is changing, and there-
clients every day,” he notes. In keeping with Saudi Arabia’s
fore, we also have to be careful
‘Vision 2030,’ S.A. TALKE has
that we don’t lose existing busi-
also encouraged the employ-
ness,” Klingbeil says.
ment of Saudi workers through
“Like any other industry, we
the Kingdom’s ‘Saudization’ pro-
have competition and we
gramme. However, Klingbeil
shouldn’t underestimate them.
doesn’t underestimate the chal-
Therefore, we are working hard
lenges that this task brings.
to retain our business and we are
“We’ve recently been awarded
continuously making an effort to
two new projects where we will
offer our clients the best service
need to bring in more manpower.
at very competitive rates to make
It’s a challenge because we need
sure that we continue to grow
experienced people, which we
and optimize our business on a
can’t always hire from within the
day to day base.”
country. On the other hand, the
Aside from the company’s
sector is also becoming more
best in class practices and dis-
open and so we have hired our
tinctive strategy, Klingbeil
first female employees which I
believes that the true success of
am proud to see.
the company lies in its people. The Saudi firm strives to reward
“We do a lot of campaigns to support the government and the w w w. s a - t a l k e . c o m
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country’s ‘Vision 2030’. I hope from a midand long-term perspective, it will help the country to move in the right direction.” By offering in-depth training and high-quality accommodation, the Saudi firm has created a work environment that Klingbeil describes as an “S.A. TALKE family”. With an employee turnover of only 3-5%, this closeknit atmosphere has paid off. “In our organisation, an employee isn’t a number; an employee is a respected person who we are glad that we have on board,” notes Klingbeil. "We don't categorise, we treat everyone the same. We say to our peo14
ple, ‘you’re not only an employee, you are more. You have valued assets’. This culture is important to S.A. TALKE.” The road ahead is an exciting one for S.A. TALKE. With a proven strategy for success as a logistics service provider, the firm is also exploring other avenues in the market such as the FMCG and pharmaceutical sector. With Saudi Arabia’s ‘Vision 2030’ ahead, Saudi Arabia is set to continue on its upward trajectory and S.A. TALKE is set to follow suit.
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“ The biggest gift is that we have so many incredible team members and leaders who are supporting the company and our clients every day” — Oliver Klingbeil Managing Director
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Tasnee Logistics Building Street 183/218 Jubail Commercial Port, Jubail Industrial Area 10610, Saudi Arabia Jubail, 31961