DHL Exel Supply Chain, the logistics arm of Deutsche Post World Net, has landed a 10-year multi-million-dollar contract from leading crude oil producer Saudi Aramco.

Without giving a specific figure, the German company described the deal as one of the largest ever clinched by DHL Exel Supply Chain in the region, and subsequently expects the contract to substantially strengthen the group's position in the Middle East.

"Working with the world's leading energy provider is a fantastic opportunity for us," said John Allan, the board member at Deutsche Post World Net in charge of the logistics business. "This win is testament to the fact that we are the premier logistics provider to the oil and gas sector in the Middle East."

Starting from the beginning of the New Year, DHL has been tasked with developing the oil giant's national logistics infrastructure. This encompasses the provision, management and operation of four material distribution centres or cross-docks in Dammam, Riyadh, Jiddah and Yanbu, a fleet of vehicles, as well as 14 material service centres, which are collectively staffed by over 400 employees.

DHL is also setting up a system to enable the customers of Saudi Aramco to track the transport of their orders in real time over the Internet.

"DHL Exel Supply Chain in Saudi Arabia will replace the current fragmented logistics arrangements with an integrated supply chain service. We are delighted to embark on this long term and important commercial relationship with DHL, in the knowledge that their logistics expertise represents a perfect strategic fit with our Kingdom-wide business," said Mohammed Otaibi, manager of Material Logistics at Saudi Aramco.