In line with Borouge’s sustainability plan and in coordination with Abu Dhabi Customs, Borouge inaugurated its raw materials import service by container ships at the quayside of the container terminal at the Ruwais plant in Abu Dhabi.
The inauguration ceremony was attended by Hussain Al Hammadi, Vice President Site Supply Chain - Ruwais, Abdulla Al Jaberi, Senior Vice President Corporate Procurement, Salem Eassa Al Hammadi, Manager of Al Ghuwaifat Customs, Younis Mohamed Asad, Vice President Materials and Purchasing Management, along with site’s supply chain team.
This new project will change the old way of importing the Company’s materials, which were previously delivered to the site at Ruwais by trucks. The new way will utilize Khalifa Port to transport all Company’s imports to Ruwais by ADNATCO modern ships. These vessels will be operating regularly between Port Khalifa and Ruwais four times a week.
This achievement provides cost savings for incoming raw materials by optimizing the usage of existing own assets of vessel and Ruwais Distribution Centre. Moreover, it minimizes HSE risk by reducing the number of trucks on UAE roads and supporting Abu Dhabi’s Road Safety Initiative.
The project came to life when a multi cross-functional team formed to create a new innovative supply chain model. The concept of the project was to utilize the existing vessel and Ruwais Distribution Centre warehouse in order to achieve reliable supply chain and logistics of raw materials at optimum cost.
“The new supply chain model for 2013 onwards will provide many advantages for Borouge as it will improve the control on Borouge inbound logistics by establishing a single point of control and visibility on inbound raw material. It will reduce lead time from 7-10 days (port arrival till Ruwais) to less than 2-3 days thus also improving supply security and availability,” said Hussain Al Hammadi, Vice President Site Supply Chain - Ruwais. “In addition, it will reduce truck return journeys within the UAE from 500 km to 20 km.”
Borouge’s plants expansion to total annual capacity of 4.5 million tonnes in 2014 will significantly increase volume of incoming raw materials from around the globe challenging the complex supply chain and massive logistics operation into the Ruwais complex. Inbound logistics of raw materials is estimated to be in range of 120,000 tonnes per year, based on 2013-2017 raw materials forecast including Borouge 3. This will potentially create massive truck traffic from UAE ports and the UAE/GCC suppliers to Ruwais plant as well as return journeys of empty trucks from Ruwais to its point of origin. Therefore, the new project will be an ideal platform to tackle these issues.
At the end of the event, Hussain Al Hammadi, Vice President Site Supply Chain - Ruwais and Abdulla Al Jaberi, Senior Vice President Corporate Procurement, awarded the people who involved in this project with certificates of appreciation.
Borouge was established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Austria based Borealis, a leading provider of chemical and innovative plastics solutions. It is a groundbreaking international partnership at the forefront of the next generation of plastics innovation.
Hussain Al Hammadi, Vice President Site Supply Chain- Ruwais, Abdulla Al Jaberi, Senior Vice President Corporate Procurement, Salem Eassa Al Hammadi, Manager of Al Ghuwaifat Customs, Younis Mohamed Asad, Vice President Materials and Purchasing Management during the inauguration ceremony of Borouge raw materials import service by container ships.