ADNOC L&S Borouge Transport Deal | $531mn Contract
- Borouge and ADNOC logistics & Services (L&S) have launched a 15-year strategic partnership.
- The service agreement guarantees ADNOC L&S a minimum of $531 million (AED 1.95 billion).
- The agreement encompasses port management, container handling, and feeder container ship services at the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi.
Borouge, ADNOC Logistics & Services Forge $531M Partnership
Borouge and ADNOC logistics & Services (L&S) have launched a 15-year strategic partnership. The Abu Dhabi logistics firm will oversee the transportation of up to 70% of Borouge’s yearly output, enhancing Borouge’s supply chain network.
The service agreement guarantees ADNOC L&S a minimum of $531 million (AED 1.95 billion). It also aims to support Borouge’s expansion, yielding over $50 million in operational cost savings and efficiencies within the first five years. This collaboration highlights the important role of strategic partnerships in optimizing logistics and driving economic growth.
The agreement encompasses port management, container handling, and feeder container ship services at the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. ADNOC L&S will dedicate at least two container feeder ships to transport Borouge’s products from Al Ruwais to Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.
Borouge plans to increase production capacity by 1.4 million tonnes per year by the end of 2026 through its Borouge 4 mega project, solidifying its position as the world’s largest single-site polyolefin complex.This expansion underscores the company’s commitment to meeting rising global demand and further emphasizes the critical role of efficient logistics.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said, “This agreement builds on our longstanding collaboration with ADNOC L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets.”
Al Suwaidi added that the agreement brings significant benefits to Borouge, enhancing logistics and complementing existing rail operations. The partnership reinforces ADNOC L&S’ commitment to providing integrated supply chain solutions that boost trade and support the UAE’s economic diversification.
Captain Abdulkareem Al Masabi,CEO of ADNOC L&S,stated,“This complete container terminal agreement marks a major milestone in our accomplished partnership with Borouge,delivering on ADNOC L&S’ strategy to provide seamless,end-to-end logistics solutions that power the UAE’s industrial growth and export ambitions.”
What’s next
With increased production capacity on the horizon, Borouge aims to efficiently deliver differentiated products and solutions, keeping pace with rising global demand. The enhanced logistics infrastructure will play a crucial role in achieving these goals.