PSA Singapore Terminals and SABIC Asia Pacific: a win-win partnership
SABIC's regional HQ is based in Singapore and the Republic's central as well as strategic location, allows SABIC to respond promptly and effectively to customers' needs.
Singapore's excellent logistics infrastructure enables efficient means to transport materials and distribute products to other parts of Asia and Pacific. This ensures on time delivery to customers with increasing demand to shorten delivery times, SABIC approached PSA Singapore Terminals (PSA) - the world's most advanced and busiest transhipment hub - to act as its shipping centre and central storage hub for Asia Pacific. This proposition has proven to be a great success and has led to a win-win partnership for both parties.
Closer to market, quicker turnaround
Cargo is now shipped from Saudi Arabia to Singapore, and then transported to 15 countries within the Asia Pacific region. PSA has ensured an exceptionally quick turnaround time even with an average of 2,000 containers it handles for SABIC every month. Since the PSA-SABIC partnership was formed in 2002, SABIC has enjoyed smooth distribution and shipping operations from Singapore to the region.
"PSA is a leading port operator in one of the world's major gateway hubs and, with access to 200 ports in Asia, Middle East and Europe, it's geographically well-positioned," explains Ms Yann Hoon Tee, Senior Operations Supervisor for SABIC Asia Pacific.
"It's like having an off-shore distribution center that is close to the market, which means we can be here for our customers. It also cuts down our transit time. This convenience is backed by the efficiencies and excellent facilities at PSA, which ensures reliability of service to our customers." she adds.
"PSA is honored that SABIC chose PSA as its transhipment hub in 2002. Since then, we have remained committed to meet the diverse port services and facilities required by SABIC. We are confident that our excellent port connectivity and first-rate frequency of vessel sailings will continue to facilitate their growing shipping operations," says Alfred Cheong, Senior Distripark Manager of PSA.
Storage flexibility, Services Quality
PSA has tailored its warehouse facilities and services to meet SABIC's needs for increasing flexibility of storage space in spite of PSA's growing transhipment volumes and port operations. This has enabled SABIC to shorten its delivery time and increase service quality.
Serving the world
This mutually beneficial relationship is built on the desire of both organizations to grow globally by leveraging on their strengths such as connectivity to serve international shippers. To foster closer working ties, PSA hosts visits for key personnel from Saudi Arabia to help deepen their understanding of PSA's port operations.
"We were very proud to initiate this project at a time when no one else was doing it," says Paul Hong, Sales Manager, Polymers for SABIC Asia Pacific, based in Singapore. "The tremendous success of this innovative strategy has encouraged top management in Saudi Arabia to ship more products to Asia to meet the growing demand in the region."
SABIC's manufacturing facilities in Saudi Arabia are currently undergoing major expansion projects, and they will go on-stream in the next one to three years. A majority of these expansions will be directed to Asia Pacific where there is a high demand for polymers.
For SABIC and PSA, opportunities will continue to grow along with the economic development and the gradual liberalization of the markets in this region especially China and those in Southeast Asia. In this way, PSA is our value-added partner in giving our customers easier access to products in a timely, reliable and effective manner", he said.
SABIC is exhibiting at K2007 Hall 6, Stand D42
