DOHA: Qatar Primary Materials Company (QPMC) has signed a Contract of Affreightment (CoA) with Hyundai Glovis aimed at shipping a bulk amount of 50 million tonnes of aggregates to Qatar; over the coming five years.
During a ceremony took place in Hyundai Glovis’ headquarters in South Korea, Seoul, the agreement was signed by QPMC CEO, Eisa Al Hammadi, and Hyundai Glovis CEO, Kyung-Bae Kim.
The signed contract, running for the coming five consecutive years, is tailor-made to ship the amount of 10 million tonnes of aggregates per year, with a total number of 806 voyage-series; equivalent to 161 voyages per year, with each vessel intended to carry 75 thousand metric tonnes per voyage, whilst operating under the highest shipping services carried by Hyundai Glovis globally.
As per the signed agreement, which starts from January 1, 2016 and is valid until December 31, 2020, the vessels loading the intended primary materials capacity will proceed from the port of Fujairah in UAE and Oman all the way to QPMC’s port and logistics area in Mesaieed.
As per the CoA, the supply of the entire bulk quantity of 50 million tonnes of aggregates will be allocated in commitment to QPMC’s framework of agreement with the Public Works Authority (Ashghal) according to which QPMC has signed to supply Ashghal with 92 mn tonnes of gabbro and limestone.
In parallel, this particular CoA with Hyundai Glovis marks one of QPMC’s strategic mechanism in stabilizing the domestic prices of primary materials; while keeping up with Qatar’s fast growing and thriving construction industry.
Consequently, the agreement between QPMC, the State-owned entrusted arm for the supply of aggregates in Qatar, and Hyundai Glovis, one of the leading shipping and logistic services companies in the world, at a wider scale comes hand-in-hand to meet QPMC’s strategic goal in meeting the sufficient amount of aggregates needed for the implementation of Qatar’s large-scale infrastructure and construction projects in line with Qatar National Vision 2030.
QPMC CEO, Eisa Al Hammadi, said: “The agreement comes to compliment QPMC’s series of successes, in providing strategic supply of aggregates and securing the sufficient demands of primary materials needed in the Qatari market and across the thriving construction industry in Qatar; thus contributing to achieving QPMC’s core objective in stabilizing the prices of aggregates in Qatar and working in liaison to achieve Qatar national Vision 2030”.
“QPMC is the trusted arm in the supply of primary materials across all the infrastructure projects in Qatar. The company’s provision includes providing maximal transparency, efficiency and reliability for its deals and business with suppliers and customers paying ultimate respect and tribute to Qatar’s Construction Specifications (QCS2014)”, Eisa added.
“Kyung-Bae Kim said “Hyundai Glovis takes great pride in our significant partnership with QPMC. This is an unprecedented (CoA) for both of us and we are delighted to have been able to increase our strategic partnership with QPMC over the years. This (CoA) in particular reflects QPMC’s satisfaction in Hyundai Glovis’ global and high standard vessels, shipping and logistic services.”
On another operational level, QPMC has recently launched its gabbro sales to local construction companies, earlier in August 20th, while it has secured five supply agreements procuring nearly 22 million additional tons of primary materials from private Qatari companies that operate in overseas quarries.
The decision to launch sales of primary materials on the local front, through a central entity, QPMC in this case, will allow Ashghal and Qatari contracting companies involved in construction projects in general, to take advantage of competitive prices and guaranteed quality noting that the signed agreements include various specifications of primary materials to suit all construction requirements.
Additionally, to maintain transparency while keeping cost to a minimum without compromising on quality, QPMC adopts the FIFO (first in first out) mechanism which means the materials entering the storage facility first will be sold first.
