The Hindu Business Line : DHL to set up logistic hub for oil and gas in India

The company sees huge business potential in the sector with domestic exploration and production activities (E&P) poised to grow in the coming years, said Mr Christoph Remund, CEO of DHL India.

“We see the need for specific logistic support in oil and gas sector in India. Our customers have been seeking such a facility here which will address their need,” said Mr Remund in an interview with Business Line.

DHL currently has four logistic hubs for oil and gas sector located in Singapore, Dubai, the UK and in the US. India would be the fifth one, he said.

The proposed hub in India will have storage facilities for critical spare parts, equipment and chemicals required for oil and gas exploration and DHL will ensure their quick delivery.

“We have a huge facility in Singapore. This is a dedicated hub for oil and gas sector catering to the South-East Asian countries. Similar facilities are not available in India ,” said Mr Remund.

“Oil and gas sector has specific needs in terms of handling of chemicals. You need to have the expertise to handle hazardous materials. You need to have the right facilities to store them,” said Mr Remund.

Similarly, this sector uses large size pipes and equipment which need large yard facility.

With increased oil exploration activities in India post-NELP (New Exploration Licensing Policy), the coming years are expected to see a lot of demand for logistic services. Major oil field operators such as Reliance Industries, ONGC, Cairn India and GSPC are expected enhance their exploration and production activities. RIL recently has announced three new gas discoveries at KG Basin.

DHL is yet to zero in on the location for the Indian hub. “You will have to find a place to serve customers from a place close to the international hub. Also, you need to be closer to your customers as oil and gas has a lot of emergency needs. So, you have to be in between your international hub and where your customers operate.”

“Ideally, we need facilities on both east and west coasts to cater to both onshore and offshore oilfield activities. You see, it is a supply business. It is ongoing. Sites may change time to time,” he said.

DHL has logistic hubs in India for textiles in Tirupur in Tamil Nadu and for life science in Hyderabad.

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