RIYADH, 6 January 2007 — Package delivery giant DHL has embarked on a business expansion plan under which the DHL Exel Supply Chain, the logistics division at Deutsche Post World Net, which owns DHL, has concluded a 10-year multi-million-riyal contract with Saudi Aramco.

Deutsche Post’s other affiliate, SNAS/DHL, has planned to invest SR131 million in Saudi Arabia to create new facilities. “With the signing of the new deal, DHL Exel Supply Chain will replace the current fragmented logistics arrangements with an integrated supply chain service,” said Mohammed Otaibi, manager for material logistics at Saudi Aramco, here yesterday.

The contract, which goes into effect this month, represents one of the largest business deals ever achieved by DHL Exel Supply Chain in this region. The transition should be complete by July this year. “DHL has been contracted to develop the oil giant’s national logistics infrastructure,” said John Allan, a board member of Deutsche Post, in charge of logistics business. The contract encompasses the provision, management and operation of four material distribution centers (MDC) or cross-docks in Dammam, Riyadh, Jeddah and Yanbu, of a fleet of vehicles and personnel as well as 14 material service centers (MSCs).

To implement these activities in MDC and MSC locations, DHL will manage a staff of over 400 people, he said. DHL will also set up a system enabling the customers of Saudi Aramco to track the transport of their orders in real time on the Internet. “Working with the world’s leading energy provider is a major opportunity for us,” said John, adding that this contract is “testament to the fact that we are a premier logistics provider to the oil and gas sector in the Middle East.”

Referring to the SNAS/DHL investment plan, David A. Wilson, DHL’s country manager said that, “the company is looking at sites in different places including Jeddah to set up new operational facilities, since the weight capacity in Saudi Arabia is remarkably growing at a rate of 10 to 15 percent annually.” “We are going to double our heavy weight facility, which will eventually result in doubling our customer base,” said Wilson.

He pointed out that DHL would be a major beneficiary of the economic prosperity of the region because it has acquired a brand name with its 30-year presence. The DHL chief said that, “the company is currently handling more than 9,000 shipments daily in Saudi Arabia alone.” “We are also considering to acquire a new environmental-friendly large aircraft to operate on Jeddah-Riyadh-Manama sector,” said Wilson.

He said that DHL, the Kingdom’s leading logistics solution provider, has in fact emerged as the global market leader of the international express and logistics industry specializing in providing innovative and customized solutions. DHL offers expertise in express, air and ocean freight, overland transport and logistics solutions combined with worldwide coverage and an in-depth understanding of local markets.

Besides Saudi Arabia and Gulf states, DHL’s international network links more than 220 countries and territories worldwide. More than 180,000 employees at DHL, which is owned by Deutsche Post World Net, are dedicated to providing fast and reliable services that exceed customers’ expectations. Deutsche Post is the world’s leading logistics group. Its integrated Deutsche Post, DHL and Postbank companies offer tailor-made customer-focused solutions for the management and transport of goods, information and payments.