A logistics leader in Saudi Arabia

A transportation leader in Saudi Arabia TEY_post_Majid-AL-MINHALI

Majid Al Minhali, CEO of Pioneers of Global Excellence, talks to The Energy Year about the company’s credentials in the rig-move business, its value proposition in the petroleum products haulage business and the key aspects of its cargo services. Pioneers of Global Excellence is a logistics and transportation company.

What are the company’s credentials in the rig-move business?
Our primary objective is to become a leading rig-move transportation company in the Kingdom of Saudi Arabia. Located in the Eastern Region, which houses a significant number of oil wells, we have a unique opportunity to expand our business with major drilling companies in Saudi Arabia.
We have already established partnerships with prominent companies such as Arabian Drilling and Saudi Aramco Nabors Drilling, which possess a substantial number of wells in the country. Our fleet has grown significantly and currently consists of over 250 trucks. By comparison, when we began in 2000, our initial fleet was 20-30 trucks. We remain optimistic about the potential for growth and success in this sector.
In light of Saudi Arabia’s emphasis on localisation, particularly within Aramco, the country is actively promoting the IKTVA [in-kingdom total value add] programme to prioritise local companies over international ones. This shift towards supporting local businesses is seen as an opportunity rather than a risk for us.

What is your value proposition for staying ahead of the competition in the rig-move business?
The transportation business is really competitive here, and there is a strong presence of local companies. However, we believe we can surpass them by focusing on key differentiators. Our primary focus is customer satisfaction, and we achieve this through various means.
One of our strengths lies in our fleet, which consists of brand new trucks. These ensure reliable and efficient transportation services.
We not only provide trucks for rig moves. We also assign truck pushers who guide and facilitate smooth rig moves. Additionally, we have a mobile workshop as part of our convoy to address any maintenance issues promptly, minimising disruptions.
In cases where a breakdown occurs and requires more than one hour to fix, we have substitute units readily available. These small yet impactful measures grant us a competitive advantage, as they prioritise customer needs and contribute to increased job opportunities.
Just as Saudi Aramco does not focus on price but rather focuses on quality, at Pioneers quality is more important than price.

What are the key aspects of your ongoing fleet expansion?
We have different types of trailers: fuel tankers, flatbeds of different sizes and extendable loads, wire racks and many more. As a transporter, you should have a view of all the sectors in the transportation industry and understand which sectors you can grow in.
We are therefore constantly expanding our fleet. The size of our fleet coverage plays a crucial role in meeting the diverse needs of our clients. Clients value a comprehensive and capable fleet that can effectively handle various transportation requirements.
To support our fleet expansion, we have self-funded our growth and also established relationships with banks that offer financing opportunities. We recently entered into a contract with Renault, one of the industry’s leading brands, which has provided us with instalment plans facilitated by partnering banks. This enables us to maintain and expand our fleet to meet the evolving demands of our clients.

What is the company’s experience in the petroleum products haulage business?
We have over 10 years’ experience in this field. Back in 2015 we won a bid for a 10-year contract with Saudi Aramco to transport petroleum products. This required us to fulfil all the Aramco requirements for this activity and of course to provide a competitive price.
We mostly provide the service in Saudi Arabia’s Northern Region, moving these products between Saudi Aramco plants. We are actively looking to expand this activity, and we would gladly participate in new bids since we have developed a deep expertise and infrastructure related to this field.

How is Pioneers involved in providing cargo services to Aramco and SABIC?
We work with SABIC as a subcontractor for DHL. We transport the day-to-day items and products that are used in SABIC’s different plants and its multiple affiliates. We mostly deal with spare parts and consumables. In the same fashion we work with NAQEL Express to transport different products, spare parts and more to Aramco plants, refineries and even some compounds.
We are working very hard to be directly contracted by Aramco and SABIC in cargo operations. This is something we will accomplish in the near future.

What is your approach towards safety training?
We firmly believe in the principle that safety comes first, and it serves as our guiding motto. To ensure the highest safety standards, we actively seek partnerships with reputable training centres and institutes, such as NITI (National Industrial Training Institute).
Our collaboration with them is a result of our ongoing project with Aramco in the northern region of Saudi Arabia that involves the transportation of petroleum products between various Aramco bulk plants.

What is your strategy for becoming an integrated rig-move service provider?
We are actively working towards vertical integration to become a comprehensive one-stop shop for rig moves. While transportation remains our primary focus, we recognise the need to expand our services by incorporating lifting cranes into our operations. This will allow us to be a fully integrated service provider for rig moves and to become sole contractors for them.
To support this expansion, we have assembled dedicated teams and allocated resources to drive the implementation process. However, we understand the importance of proceeding gradually and ensuring each step is executed successfully before moving forward.

What is your regional footprint?
In terms of geographical expansion, we have successfully extended our operations to Bahrain and Kuwait, where we offer cargo transportation services through an international contract with Aramex, a multinational logistics company. These ventures enable us to provide comprehensive coverage in the GCC region.

What are the current drivers of Saudi Arabia’s recent socioeconomic changes?
Under the visionary leadership of King Salman and Crown Prince Mohammed bin Salman, the Kingdom of Saudi Arabia is undergoing rapid transformation. With each passing minute, our country is progressing and becoming stronger. The world will undoubtedly witness the remarkable changes taking place. Our leaders envision Saudi Arabia emerging as one of the leading nations globally, and their vision is driving our continuous growth and development.
Amid these favourable market conditions, our vision for the next five years is to position ourselves among the top three players in our industry. We believe this is achievable by leveraging the latest technologies and staying at the forefront of industry advancements.

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