Interview: CEO of Saudi Express Logistics firm Naqel

Mohammed Al Bayati speaks to us about logistics in Saudi Arabia.
Mohammed Al Bayati is the chief executive officer of Naqel.
Mohammed Al Bayati is the chief executive officer of Naqel.

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Mohammed Al Bayati is the chief executive officer of Saudi logistics giants Naqel. As a logistics firm, Naqel has the biggest network in Saudi Arabia, controlling more than 1200 vehicles, in more than 20 terminals around the Kingdom, and serving 4900 points.

[1] Can you tell us about Naqel?

In 2005, our company started as a collaboration between Hala Supply chain and the Saudi Post. Hala started in 1994, and by 2004 they were the best company serving the Saudi Post. So in 2004, Saudi Post decided to buy 51 % of Hala, and then its name was changed to Naqel. So Naqel was created in 2005. But now the Saudi Post business makes up less than 20% of our total revenue - we are serving more than 80% of businesses elsewhere.

[2] Naqel recently signed a contract for land at King Fahd International Airport. can you tell us about that?

King Fahd Airport [Dammam] created a free zone consisting of six lands and they offered them to courier companies – we are one of those companies. So we signed the contract for this, 10,000m2 of multimodal land, which we can use for air freight and land freight. This land is bonded, so it will cover bonded shipments coming from the UAE to Saudi Arabia. So express shipments go straight through the express lane and to this land for clearance; it will shorten the time.
We will be starting construction in the next month and will invest about 30 million [Riyals]. The air side will start in 2014, land will start immediately.

[3] What makes your firm successful?

We have already done the difficult part, which was creating a network throughout the whole country. We’re controlling more than 1200 vehicles, in more than 20 terminals around the Kingdom, and we’re serving 4900 points in the country. We also have the ability to track all the shipments and vehicles. The collaboration that we have with customs gives us an advantage of clearing goods. And because we are above the requirement for Saudization, and have partners with a willingness to invest, we will be able to expand.

In Saudi Arabia they are also supporting logistics in general, so they are offering lands in our industrial cities. We’ve received 20 lands around the kingdom – so we will be in every industrial city around Saudi. In Riyadh and Jeddah, we have already built our terminals, and in the others we are starting to build them.

[4] Why should companies use Naqel?

Normally they should care about two things, other than commercial considerations: the quality of the delivery and the time it takes. We are amongst the best achievers of on-time delivery and this is well known to our clients. Today we have more than 70% of the automobile industry with us. For time, we will be in the clearing, in the King Fahd airport, in the trucking, and in the warehousing, so the complete supply chain will be controlled by one company. And then we are able to handle the door to door as well.
 

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