"Today it ships 500,000 tonnes of grain into the country from the United States, South America, Russia and Ukraine and aims to double that volume next year by increasing its domestic market share."

Lloyds List
November 18, 2002

PORT management and food distribution company Ajwa Group for Food Industries Holding Company aims to export its grain handling expertise to other countries around the Red Sea, the Middle East and north and east Africa.

The group's grain trading division, Ajwa Grain, is looking to order and distribute grain from new bases in Aqaba, Port Sudan and along Egypt's Red Sea coast.

'Our plans are still on the drawing board,' says Saleh Al Fadhli, deputy general manager and director for port operations and grain trade.

'But we hope to import and re-export grain in a number of international markets.

'Many are small countries that have problems with stevedoring or port facilities at present. But we are looking at opportunities in regional free zones.

'We are studying these countries' tariffs and taxes but we plan to invest in, own and operate grain facilities, starting in the Red Sea and east Africa, perhaps as far south as Mozambique.

'We want to become global operators in grain commodities trading, moving into the Middle East, Iran and north Africa within three years.'

Ajwa started trading in grain in 2000 when the Saudi government eased restrictions on grain imports. The company began to ship yellow corn, soya bean meal and barley into Saudi Arabia.

Today it ships 500,000 tonnes of grain into the country from the United States, South America, Russia and Ukraine and aims to double that volume next year by increasing its domestic market share.

Ajwa Grain operates a 120,000 tonne silo at the port of Jeddah.

'Grain trading is a question of logistics and of volumes,' Mr Al Fadhli says.

'The greater the volume, the more you cut costs and logistics brings further savings, adding value to the operation.'