Erhardt, Erog Pair Up for Saudi Venture

New Entity to Focus on Project Cargo Opportunities in Middle East

International freight forwarder Erhardt Projects and oil and gas-focussed Erog have formed a joint venture in Saudi Arabia for the transport of project cargo in the Middle East.

The new company – Erhardt Projects for Logistic Services – will be based in the eastern city of Al Khobar, one of the busiest logistics hubs in the Persian Gulf.

“The partnership with Erog Holding marks a historic milestone for Erhardt,” said Igor Muniz, CEO of Erhardt. “It allows us to be present in a key location for project cargo logistics in the coming years, and gives us the opportunity to work together to play a relevant role in connecting the end-to-end supply chain in the project cargo sector in the region.”

The project market in Saudi Arabia is booming, driven by ongoing investments in fossil fuels and, more recently, the kingdom’s Vision 2030 diversification plan to pivot the economy towards more sustainable, private-sector industries.

The strategy is luring overseas investment and know-how and translating into huge cargo-carrying opportunities for breakbulk, with billions of dollars earmarked for projects in renewable energy, construction, port infrastructure, tourism and entertainment.

“Erhardt Projects is firmly committed to those regions and sectors with both a stable and a growing demand for cargo projects. And Saudi Arabia is clearly one of the world’s foremost energy hubs,” Muniz told Breakbulk.

“The oil and gas industry is one of those sectors we are referring to. A significant part of our operations and business involves logistics projects and customers in this field, where we are continuing to innovate and seek customized solutions to increase the efficiency of supply chains and reduce their costs.

“At the same time, and as part of the diversification strategy that lies at the heart of our business growth, we are committed to and investing in other energy sectors, such as renewables. This is a crucial field in the global drive towards sustainability and has an enormous potential for growth by playing a major role in the economy over the coming years."

Erhardt Projects is part of the Spain-based conglomerate Erhardt. The company also has offices in France, Portugal, China and the UAE. Erog, meanwhile, is a Saudi holding company focussing on the supply of capital equipment and services for the oil and gas sector.

Erhardt Projects will be exhibiting at Breakbulk Middle East 2023, taking place on 13-14 February at the Dubai World Trade Centre in the UAE. Saudi-based logistics professionals will be at the event to provide some unique insights on project developments at a Saudi Arabia Spotlight: The Role of Giga Projects speaker session.

You can check out the full event programme here.

PHOTO CREDIT: Erhardt Logistics