Doha - Petrochemical consortium, Qatofin has awarded a contract for the construction and operation of a dedicated logistics terminal worth QR140m ($38m) in Mesaieed Industrial City (MIC), to German firm Talke Logistic Services.
The deal includes completing construction work of an onsite silo logistics centre - one of the biggest and most advanced in the Gulf - by the end of this year and operation of the facility on behalf of Qatofin for 15 years.
Talke Logistic Services said this is one of the largest contracts the company has won in its history. The transaction also involves the acquisition of Vos Silo Logistics Qatar and Vos Middle East Holding by the company.Qatofin General Manager, Mohammed Yousef Al Mulla and Talke Logistic Services CEO, Armin Talke signed the agreement here yesterday at a ceremony.
Al Mulla said at the function that with the evolution of the petrochemical industry, customers expect outstanding quality services alongside quality products.Qatofin spared no efforts to develop a strategic partnership with Talke to secure logistics solutions that match the company's pursuit for customer satisfaction, he said.Al Mulla said the deal will launch mutually beneficial partnership between Qatofin and Talke.
The Qatofin logistics terminal will be one of the largest and ultra modern of its kind in the GCC. Occupying a total area of 100,000 sq.m, 56,000 sq.m of covered warehouse for packaged products, 12 silos of 1,100 cubic meters each for bulk storage, two fully automated packaging lines and container handling area, the terminal will cater for a total production ranging from 450,000 to 600,000 metric tons per annum when operation gets underway. "The construction and operation of the Qatofin facility means Talke is the first logistics provider to be active in the petrochemical industry's main producing countries in the Middle East," said Talke Managing Director, Alfred Talke.
Al Mulla said the project will be completed on time for Qatofin will start production of low linear density polyethylene (LLDPE) in the first quarter of 2009 in its new facility being built in Mesaieed.
Qatofin is a joint venture between Qatar Petrochemical Company (Qapco) with 63 per cent stake, Qatar Petroleum (QP) with 1 per cent and Total Petrochemicals of France with 36 per cent.
It's long-term goal is to develop Qatar's polyethylene industry into one of the leading global producer of LLDPE in the region. Qatar's extensive gas resources provide the basis for production.
The Qatofin project involves the construction of an ethane cracker with a capacity of 1.3 million tons of ethylene in Ras Laffan Industrial City (RLIC) with the participation of Q-Chem II and 450 KT LLDPE facilities in Mesaieed.
© The Peninsula 2008
