June 21 - International logistics provider Geodis is presently opening a new office in Aberdeen, UK, focusing on the oil and gas resupply business.
According to Igor Muñiz, director of industrial projects Europe, Geodis has been making strategic investments in a weak market, in order to take advantage of any future recovery.
Muñiz explained that the Geodis strategy of developing hubs around the world to serve the oil and gas resupply business is performing well.
"The implementation of the Geodis Oil & Gas Hubs started in Houston and developed to Singapore, Antwerp, Rotterdam, and now this month Aberdeen," he stated. "Even though the oil price is down, we think now is the right moment to move in this sector. This is when you have to put the basis down for the future."
Muñiz said the hub strategy provides a strong advantage, as it is "key to consolidating volumes" which in turn improves buying power and service levels delivered to customers.
He believes the company is bucking the trend by investing when the market is challenging, while a great deal of its competitors are undertaking cost saving measures. These investments have enabled the company to remain adaptable and flexible. "This is something that our competition is struggling with because they are cutting service."
The results achieved have been a bright spot in what is otherwise a challenging operational environment. "As soon as business gets up we need volumes - bring it on," he added. "The oil and gas resupply business at its peak saw customer expenditures of over USD10 billion. Even in the down market we have right now it's half of that, but still, it is a big market."
Geodis has also made a point of focusing on the needs of the EPCs, moving various oversized cargoes supporting major capital projects around the world, explained Muñiz. The company has been heavily engaged with refinery projects worldwide, including Petronas' RAPID development in Malaysia, and Tecnicas Reunidas Talara project in Peru. Geodis has also been busy moving combined-cycle turbines, as well as renewable energy equipment in South Africa.
"The good thing is the segmentation - we are not focusing on only one industry," highlighted Muñiz.