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The demand for speciality chemical warehousing and storage will continue to increase across the region as GCC countries step up industry manufacturing transit cargo demands for Jebel Ali Freezone, according to logistics chief.
IHS Chemical Week's recently published market outlook says chemical demand is expected to strengthen in 2015, with growth expected to exceed 3 per cent in overall global market for the first time in four years.
Chemical warehousing, the storage of dangerous chemicals, has been a growing niche market in the UAE, and with limited supply has always been an in-demand service according to Indu Maritime & Logistics (Indu) Managing Partner, Kush Lakhani.
He says the key growth drivers in this region is coming from UAE, KSA and Qatar where production centres for various chemicals are already well established, combined with increasing export volumes coming out of Africa.
"The UAE itself is steadily growing to become a global manufacturing leader for various Petrochemical industries," he said. "This in turn creates multiple subsidiaries within chemical industries and support industries, all requiring companies like us to provide logistics solutions."
Because of this ever-growing need, companies like Dubai's Jebel Ali Freezone-based,Indu, have diversified into the chemical warehousing industry from traditional logistics businesses in the last few years, with Indu seeing it grow to over 60 per cent of their operations.
Indu currently operate a dedicated space of 5500sqm for chemicals, of which 3000sqm pertains to hazardous chemicals, and 2500sqm for non-hazardous chemicals. To meet increasing demand, the company has begun construction on a new facility, which will further enhance its hazardous storage capacity.
"We've seen demand grow alongside other industries taking off in the region, with manufacturers, traders, construction and oil and gas requirements for chemical warehousing consistently rise," saidLakhani.
"What started off as a small niche has quickly grown to become a major part of our business and the outlook for the next few years indicates the market isn't going to slow down as more projects come online and Jebel Ali Port becomes an even more important regional hub."
Safety is the number one priority for the heavily regulated industry, with strict rules and regulation set forth by the Environment Health and Safety Department, Civil Defence and JAFZA authority. A state-of-the-art fire safety system, explosion proof electrical units, handling equipment, regularly risk assessments andDubai government certified personals are some of the compliance measures that are strictly implemented.
"The regulations and costs of chemical warehousing make entry to the market and upkeep of facilities much more challenging than standard warehousing, keeping the supply low which increases demand and the growth potential of the industry," adds Lakhani.
"These barriers to entry, alongside growing chemical requirements for consumer products and Asia's manufacturing boom, mean chemical warehousing abilities are an essential facility at Jebel Ali Freezone, which serves as one of the main ports between Asia and Europe and the gateways for entry into the Middle East, Africa and Central Asia."
Indu Maritime and Logistics, a freight forwarding and distribution arm of the Indu Group, specialises in a comprehensive range of supply chain and total logistics solutions. These services include air and sea freight, warehousing and distribution, door-to-door transportation, project logistics, warehouse managing, consulting, and chartering services.
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About Indu Maritime & Logistics
INDU operates on a large network, serving international manufacturers, distributors and retailers from the Chemical, FMCG, textiles, pharmaceutical, automotive, electronics and oil & gas industries.
For more media information please contact Ahmad AL-Nashash at IHC for Indu Logistics on +971 508095629 or ahmad@ih-c.com
© Press Release 2015
