Saudi-based Almajdouie Group has joined hands with UAE-based So Safe International and Chinese Jinghai Transport to set up a joint venture, Maxx Logistics, to tap into UAE logistics market which is estimated to reach $40 billion by 2010.

The oldest and leading third-party logistics (3PL) provider in the Middle, Almajdouie Group, said it aims to leverage UAE’s rapid transformation as a global logistic hub.

The company recently opened a Dh50 million ($13.6 million) multi-purpose logistics facility, in Jebel Ali Free Zone (JAFZ), further consolidating the operation’s Middle Eastern strategic footprint.

According to recent studies, the UAE logistics market is poised to reach $40 billion by 2010 as a result of the country’s dedicated efforts to enhance its current infrastructure and sizeable investments into the development of many key areas.

Transworld Intelligence in a new study said the Middle East would continue to witness high growth in contract logistics despite worries that a worldwide economic slowdown would have a serious impact on volumes and revenues.

With an anticipated growth of between 17 and 19 per cent, the region's logistics business is expected to outgrow the entire industry, which is expected to grow at nine per cent.

Abdullah Almajdouie, president of Almajdouie Group and chairman of Maxx Logistics, officially inaugurated the new facility.

The other two joint venture partners Sultan Mahmood, chairman of So Safe International, UAE and Victor Chang, managing director of Jinghai Transport China, were also present at the opening.

SI Mustafa, managing director of Maxx Logistics, and Shaikh Salahuddin, director of Maxx Logistics also took part.

Maxx Logistics, registered under the sponsorship of Jebel Ali Free zone, is a new emerging third-party logistics (3PL) provider which is equipped with latest technological and modern asset support.

The company has quickly established itself as a dynamic enterprise with promising future.

Maxx’s first facility built on a plot more than 16,000 sq m is one of the most modern and latest in its kind in the Middle East which offers the perfect platform for companies to profitably leverage their supply chains using the new hub as a global gateway.

'The investment in the new high tech facility demonstrated an ongoing belief in the significance of Dubai as a global business hub. Dubai’s visionary development and unmatched infrastructure offers the business world an opportunity to access the enormous potential of the Middle East and beyond,' said Abdullah Almajdouie.

'We will continue to pursue an ambitious plan to facilitate increasing trade and market development, both regionally and globally.'

'Our special emphasis focuses on the ever increasing trade of China to UAE and the global trade through UAE as a transitional hub,' he added.

He poibnted out that the construction of the fully air-conditioned facility for Maxx Logistics would be started soon.

This facility will be a “green building” equipped with the latest environment-friendly infrastructure that will be certified under the Dubai government guidelines, he added.-TradeArabia News Service