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Geodis unveils plans to tackle gas and oil resupply sector

22/06/2016 by Sharon Shahzad

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Though the falling price of oil may be troublesome for many businesses, it’s been revealed that one firm may be about to take advantage of the situation. Geodis, the international logistics provider, is to open a new office in Aberdeen, UK. This will focus on the gas and oil resupply sector and will place the firm in an ideal position to take advantage of any future recoveries of the energy sector. It comes at a time when many energy firms are struggling.

The latest plans have come to light thanks to Director of Industry Projects Europe Igor Muñiz, who said that Geodis was taking advantage of the current weak market to make strategic gains. Muñiz explained that the logistics firm has a long strategic history of developing well-placed hubs around the world. This plan is working well, and it will place the company in an ideal position to offer resupply services for the gas and oil sector.

“The implementation of the Geodis Oil & Gas Hubs started in Houston and developed to Singapore, Antwerp, Rotterdam, and now this month Aberdeen,” Muñiz explained. “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.”

Speaking in regards to the fact that the company is buying when the market is still facing challenging times, Muñiz said that he believes Geodis is bucking the trend, especially when a lot of companies are using cost-saving measures to reduce expenditure. However, by spending, the firm has been able to stay flexible and adaptable. “This is something that our competition is struggling with because they are cutting service.”

The strategic opening of offices is a bright spot in a sector that remains extremely challenging to work in. “As soon as business gets up we need volumes – bring it on,” Muñiz said. “The oil and gas resupply business at its peak saw customer expenditures of over USD 10 billion. Even in the down market we have right now it’s half of that, but still, it is a big market.”

Whilst Geodis takes steps to create a prosperous future for themselves in the resupply industry, the gas and oil sector continues to experience turbulent markets as prices fail to stabilise. This means that, for many firms, cost-cutting exercises are paramount at a time of uncertainty.

 

 

 

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