Doha: Strong regional multi-stakeholder partnerships will be the key for a dynamic, flexible and growth-driven petrochemicals industry, said industry experts at the sixth Supply Chain conference, organised by the Gulf Petrochemicals and Chemicals Association (GPCA).
“The industry needs advanced national and regional infrastructure if we are to succeed,” said Mohammad Husain, Chairman of the GPCA Supply Chain Committee and Chief Executive Officer of Equate.
Husain highlighted that the expansion and introduction of new land and sea transport infrastructure would make the Gulf’s petrochemicals industry more flexible, a trait that is necessary for this export oriented sector. “If you look at Kuwait, for example, 95 percent of the products, be it petrochemicals or oil and gas, are exported.” The GCC exported approximately 79 percent of its total product portfolio to 177 countries last year, amounting to 63.4 million tonnes of chemicals, according to GPCA estimates. Petrochemical exports for the year were valued at 55.5bn.
Husain said that the only way to overcome logistics bottlenecks in the petrochemical industry is to strengthen partnerships between GCC government entities, border and customs regulators, logistics service providers and educational institutions. “The supply chain is made up of many links, and we will only be as strong as the links that make up the entire chain.”
Ambitious railway developments in the Gulf region will become a critical enabler for growth by facilitating intra-regional chemicals trade. The growing capabilities of the petrochemicals industry will likewise benefit the emerging railway network. “For rail to succeed, petrochemicals need to be transported on trains,” said Dr Rumaih Al Rumaih, CEO, Saudi Railway Company. “Railways will make a return on investment only if it transports high- value freight, like petrochemicals, across long- distances.”
A well-connected railway network will result in capacity and fuel savings, as well as environmental benefits. “One train is the equivalent of 600 trucks, which can result in savings of 70 percent for fuel and greenhouse gas emissions,” explained Dr Al Rumaih.
“The GCC petrochemicals industry has seen astonishing growth over the last few years,” said Dr Abdulwahab Al Sadoun, Secretary-General of GPCA. Over 350 delegates from 23 countries attended the sixth annual Supply Chain conference. The Peninsula
