Business Review Middle East - June 2016

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June 2016

www.businessreviewmiddleeast.com

International Container Terminal Services tells us about its three decades of success

The race to repair Iraq’s Mosul dam

Training the next generation of pilots



IN THIS ISSUE

EDITOR’S COMMENT

W E L C O M E T O T H E J U N E issue of Business

Review Middle East magazine. This month, we take a look at the biggest brands in the Middle East, featuring airlines, banks and food manufacturing. Turn to page 20 to find out who made the top 10. And then we speak to Victor Brandao, General Manager at Alpha Aviation Group, about the future of pilot training in the region – a business which is booming. The race to fix Iraq’s Mosul Dam before spring floodwaters overwhelm it is also covered in the magazine – a fascinating construction and humanitarian challenge. Our selection of leading Middle Eastern companies interviewed for this issue includes International Container Terminal Services, Fonterra Brands Middle East, Tabreed Oman, Al Safwa Cement Company and Schindler Middle East.

We do hope you enjoy the issue, please send your feedback to @BusinessRevME on Twitter.

Lucy Dixon Group Editorial Director lucy.dixon@bizclikmedia.com

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Our Capabilities. Our People

Our Capabilities Our People Blueprint Technologies (www.bpterp.com) is an ERP company of professionals focused on providing services on SAP and SAP related services on cloud. Started in the year 2010 with Headquarters in Bangalore, India, with offices in Chennai and Dubai. Blueprint Technologies has partnered with Al-Russaid Technologies(www.al-rushaid.com) in Saudi Arabia and Bin Butti International Holdings(www.bbih.ae) in Abu Dhabi. Blueprint Technologies is a preferred SAP vendor for Companies in Saudi Arabia with strong SAP delivery capabilities. Blueprint Technologies has successfully executed end to end complex SAP projects and have extensive experience in providing SAP solutions for various industrial verticals like Oil & Gas, Petrochemical, Manufacturing, FMCG, Real Estate and Construction. With a strong understanding of the market requirements in various industrial verticals. Blueprint Technologies is also involved in executing projects on cloud with SAP SuccessFactors and Ramco ERP/HCM.

+91 8032 550 345 | 46

info@bpterp.com www.bpterp.com

India | UAE | Saudi Arabia


F E AT U R E S

08

LEADERSHIP

Interview with Victor Brandao - GM of Alpha Aviation Group

14 Pivotal The long, slow death of offshore The race to repair outsourcing Iraq’s Mosul Dam TECHNOLOGY

20 TOP 10

Big brands 5


Company profiles

32

56 6

INTERNATIONAL CONTAINER TERMINAL SERVICES, INC Supply Chain

FONTERRA BRANDS MIDDLE EAST M a yFood 2 0 1 6 & Drink

68

SCHINDLER MIDDLE EAS Construction


ST

44

TABREED OMAN Energy

80

AL SAFWA CEMENT COMPANY Construction

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Training the nex generation of p

Alpha Aviation Academy is a pilot training school t exclusively to the airline. It’s a joint venture between U Arabia Group. The company takes a trainee pilot from Writ ten by: JESS SHANAHAN


xt pilots

LEADERSHIP

that works with Air Arabia to supply pilots UK company Alpha Aviation Group and the Air m zero hours through to a fully qualified First Officer

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LEADERSHIP THE REGION’S AIRLINES and airports are expanding and this is something Alpha Aviation was well aware of when opening its training operation. General Manager of Alpha Aviation Academy, Victor Brandao, says: “Alpha Aviation Group was looking to invest in the region because it was growing. Air Arabia was looking for pilots to supply the airline and the two companies came together in this win-win situation; one getting the business and one getting their own school to produce pilots.” Normally, when someone wants to train as a pilot, they’d go through an academy from zero to the required 320 hours of flight time. At the end of the training, when all the exams have been passed, newly qualified pilots

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are on their own to go off and find a job, which can often be difficult. Alpha Aviation Academy takes this uncertainty out of the equation, as Brandao explains: “This is one of the few programmes where you can get a guaranteed job as a pilot at the end.” While the academy welcomes students from any country and from all walks of life, they do have to go through a selection process to be accepted. This looks at skills in a range of subjects as well as more physical tests. Brandao says: “Our selection process includes exams in maths, physics and English, as well as psychomotor and psychometric tests. If they pass they go on to have an interview with Air Arabia and Alpha Aviation. If they pass this,


T R A I N I N G T H E N E X T G E N E R AT I O N O F P I L O T S

they go onto the programme.” The programme is a direct path through to becoming a fully trained pilot. Brandao explained what trainee pilots could expect from the course: “They start at ground school for their pilot’s license followed by 70 hours flying a single engine airplane. This is their first experience with plane as a pilot. Then they start specific training for the commercial Air Arabia Airbus planes. The basic programme includes multi-group cooperation and instrument training, and simulator time. This then goes onto specific training for the Airbus A320 and the required simulator time needed to qualify to fly the plane. “The final exam features nine real landings and take-offs. This

is the final step in becoming a fully qualified Air Arabia pilot.” Brandao oversees all the operational running of the courses, he is also a pilot for Air Arabia. Having trained elsewhere at the start of his career, he’s confident that this is the best path for aspiring pilots as it takes the effort out of finding employment at the end. Recruitment isn’t limited to those within the UAE, in fact the academy has students from 52 different countries. Brandao says: “The trainees come to us from other countries through our website and the Air Arabia website. Most do research into becoming a pilot and look for information on social media, blogs and through Google. They find people talking about us online and

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LEADERSHIP

get in touch through our website to start the programme. This is how we get people from all over the world. “We also have Facebook and although we could be more active, the programme speaks for itself, and because our students are happy with it and they talk to each other on social media, they are fantastic brand ambassadors!” There’s been a recent increase in women coming through the programme and Alpha Aviation Academy was the first to graduate a female Emirati pilot. Brandao said: 12 June 2016

“We have a very good number of female students. We have women from Europe, India, Korea and other parts of Asia. Part of our success is that we treat women and men the same way. They have the same rules, requirements and training. We are more than happy for both men and women to apply and we treat them equally. There’s no special treatment based on gender. Because women are qualifying as pilots, it shows other women it’s a viable career path. While it may once have been a male-dominated profession, that’s starting to change. Being a pilot can work for both men and women who might have families they don’t want to spend too much time away from. Brandao says: “Although this is a demanding profession where you can spend too much time away from home, it can be made to work. You can have a family and be a pilot. Air Arabia allows anyone with a family to be home every day, which is the reason a lot of people choose us. Our pilots can have a normal family life, something they might not be able to get with other airlines.” Running a training academy


such as this is no simple feat because operations rely so heavily on the weather. Brandao explained the reactive nature of the business: “The planning is complex and you can’t just plan for an 18 month training programme and not touch it. “There is a daily challenge of adapting, adjusting and rescheduling all the resources. We have 188 students training so we need to constantly adjust based on simulator availability, weather, technical issues and more. “We have safeguards in place,

especially for the simulator. The first 70 hours flight time also depends completely on the weather as the small single engine planes can only fly when it’s clear. “If the weather is bad there is nothing we can do and there’s an unavoidable delay. I have to reschedule everything in order to not affect the rest of the training. Often, if the weather is bad, we try to recover those lost hours during the weekend. “It’s a plan that’s always changing and every day I look at it to see what we need to do to speed it up or reschedule something.” 13


The race IRAQ’S MO

It has been dubbed the ‘m the world’ and now the ra behemoth Mosul Dam be overwhelm the structure

Writ ten by: GENE

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most dangerous dam in ace is on to repair Iraq’s efore spring floodwaters e and cause its collapse

E V I E VE BE LMA KE R

BUILT IN 1986, Mosul Dam is a key water resource management tool for Iraq and an important strategic tool. Situated on the mighty Tigris River, it flows downstream from the mountains of Turkey. The dam is also just north of the city of Mosul, an Islamic State (IS) stronghold, which complicates security and maintenance. In fact, in 2014, Islamic State briefly captured and held the structure. Though control of Mosul Dam was regained, the skilled workers who painstakingly maintained the structure’s troublesome integrity by injecting cement slurry 24 hours a day, seven days a week, had already scattered. The loss of those difficultto-replace workers, along with the deterioration of the dam while IS held it and the impending spring floodwaters of the Tigris River, have combined to create a potential humanitarian and water resource crisis. Perhaps most critically, a water release valve that has been broken since 2013 could make it impossible to release the rising reservoir level quickly enough. In short, Mosul Dam could be on the verge of collapse and the race is on to make the necessary repairs before it is too late. It is estimated 15

Image copyright: Rehman Abubakr/wikimedia

to repair OSUL DAM

PROJECT


PROJECT that at least 500,000 people would die if the dam collapsed. It’s the perfect storm of water resource management and dam maintenance. Enter the Italians. A contingent of engineers and experts under the purview of the Trevi Spa, a division of Italy’s Trevi Group, has already begun what will amount to about eight months of repairs. The expedited contract, signed on 2 March, is worth €273 million. “Specifically for this important project, an intense level of drilling activities and injection of cement mixtures will take place for the consolidation of the foundations of the dam,” said the company in a statement.

In April, Trevi commenced setting up more than 450 technicians and staff in temporary housing to work at the site. The area is too dangerous for workers to live off-site and travel to the dam. About the same amount of Italian military troops will also stay in the area to protect the workers from regional threats. Trevi workers will repair and maintain the dam’s bottom outlet tunnels. They will also give specialised courses and training for technicians and local staff on the Trevi Group’s Soilmec drilling rigs. The rigs are key for repairing ongoing leakage that occurs because Mosul Dam is built on a gypsum karst foundation, which is extremely soluble and requires continuous

Opening date

Construction Cost

7 JULY ‘86

US$1.5 bn

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T H E R A C E T O R E PA I R I R A Q ’ S M O S U L D A M

maintenance. The foundation is drilled and the cement slurry is injected for stability. It is precisely that ongoing work that was neglected when IS held the dam for several weeks in 2014. Trevi won the expedited contract late last year. “The award of the contract, due to the procedure of urgency related to the conditions of the dam, will not follow the normal tendering procedures and rules of the ministry,” said the Iraqi government in a February statement announcing the contract. It’s not the company’s first urgent repair job. The Trevi Group has almost six decades of experience in soil engineering and has done dam specialised maintenance work more

than 170 times around the world. The US Army Corps of Engineers has been intimately involved, as well. A semi-confidential report issued earlier this year, which was partially leaked through the Iraqi Parliament, gave the findings of a very bleak Corps assessment of the dam’s condition. The findings of that report were largely responsible for sounding the alarm on urgent maintenance needs. US interests in the area — military, business and political — have also been given an evacuation and contingency plan by the US Embassy in the event that the dam fails catastrophically. Rebecca Keller, a Science and Technology Analyst for the US-based

Total capacity

Annual generation

11.1m

3,42 GWh

3

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Image copyright: United States Army Corps of Engineers/wikimedia

PROJECT

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global intelligence company Stratfor, notes that some of the repair work will be a challenge. “It’s going to be a little bit harder in a region that’s still in flux,” says Keller. She adds that fears of total collapse might not be as imminent as they seem. “Most of what’s going through the news right now is a worst case scenario,” she says. “It is still a possibility which everyone is trying to prevent.” In the long run, Keller says that effective regional water resource management could prove to be the most daunting challenge. There is a significant scarcity of resources and a continued migration away from agricultural areas because of a lack of water. “In places of conflict you don’t necessarily think about that as the resource you can lose.” Iraq is in a particularly weak position on that front, and needs to communicate with its neighbors upstream: Syria, Turkey and Iran. Regional instability makes that a problem. Turkey’s construction of the controversial Ilisu Dam, also on the Tigris River, could also complicate matters. The project will flood the the 10,000 year-old city of Hasankeyf

and displace about 70,000 people, according to analysts. It could also have unforeseen repercussions. “There aren’t many countries that communicate well about water issues, even the US,” says Keller. “In general people think that water is a right. They don’t think of it as a resource. You want what’s best for your town or state or nation. It’s a global problem.” A core group of prestigious academics, who believe that Mosul Dam is under the imminent and inevitable threat of collapse, are also working to find solutions. In April, Peace Ambassadors for Iraq hosted a panel of international experts for a symposium on the topic. Aside from urging repairs, their focus has largely been on emergency evacuation procedures. Professor Lucio Ubertini, an expert on hydrological disasters, stated that the victims of hydrological disasters are “typically the victims of inadequacy.” Ubertini and others at the symposium recommended that local insight be tapped as a resource to create what would be “a highly complex engineering project” to map out buildings and surrounding infrastructure needed to save as many lives as possible if the dam does go. 19


BIG brands

Which brands are the most powerful in the region? Business Review Middle East reports Written by: Alice Young

Every year, Brand Finance ranks thousands of global brands to determine which are the most powerful – and here we are taking a look at the top 10 of the Brand Finance Middle East 50. This list of the most valuable brands in the region reveals that the total value of brands in the UAE (USD 27.9 billion) exceeds that of all other countries, including Saudi Arabia.


TOP 10

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TOP 10

01 Emirates SECTOR: AIRLINES COUNTRY: UAE

The airline has consistently dominated the Brand Finance Middle East 50, with a brand value of USD 7.7 billion, far in excess of both direct competitors and brands from other sectors. It spent USD 20 million in 2015 on an advertising campaign featuring actress Jennifer Aniston, and is regularly voted the world’s favourite airline. www.emirates.com

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02 STC SECTOR: TELECOMS COUNTRY: UAE

Saudi Telecom Company (STC) is an innovative telecoms provider. It has recently introduced Jawwy, a digital mobile experience, making it one of the first telecommunications operators globally to design and develop a new mobile experience leveraging online and social media. www.stc.com.sa

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TOP 10

03 Etisalat SECTOR: TELECOMS COUNTRY: UAE

Headquartered in Abu Dhabi, UAE, Etisalat serves 11.6 million residential customers and over 300,000 business and government customers. Its extensive Fiber-To-The-Home (FTTH) network covers 86.4 percent of the UAE’s populated area, making the UAE rank as one of the most fibre-connected countries in the world. www.etisalat.ae

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BIG BRANDS

04 Qatar Airways SECTOR: AIRLINES COUNTRY: QATAR

The national carrier of the State of Qatar is one of the fastest growing airlines operating one of the youngest fleets in the world. Now in its 19th year of operations, it is one of the world’s leaders in sponsoring global sporting events, including the strategic team sponsorships of FC Barcelona and Al-Ahli Saudi Arabia FC. www.qatarairways.com

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TOP 10

05 QNB

SECTOR: FINANCE COUNTRY: QATAR

Established in 1964, Qatar National Bank was the first Qatari-owned commercial bank and it has steadily grown to be the biggest bank in the country. It recently announced that for Q1 of 2016, it recorded a net profit of QAR 2.9 billion (USD 787 million), with total assets up by 10 percent from March 2015 to reach QAR 550 billion (USD 151.1 billion), the highest ever achieved by the group. www.qnb.com

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BIG BRANDS

06 Al Rajhi Bank SECTOR: FINANCE COUNTRY: SAUDI

ARABIA

Al Rajhi Bank was founded in 1957 and is one of the largest Islamic banks in the world with total assets of SR 307 billion (USD 80 billion and over 9,600 employees. The Sharia-compliant banking group has an established base in Riyadh and a network of over 500 branches, with over 118 branches for women. www.alrajhibank.com.sa

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TOP 10

07 Almarai SECTOR: FOOD

COUNTRY: SAUDI

ARABIA

Describing itself as the world’s largest vertically integrated dairy company, Almarai was set up in 1977. Fresh dairy makes up 40 percent of Almarai’s business and it also produces fruit juice, desserts, bakery items and poultry. www.almarai.com

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BIG BRANDS

08 NCB SECTOR: FINANCE COUNTRY: SAUDI

ARABIA

The National Commercial Bank (NCB) was the first Saudi bank to be licensed in the Kingdom and in 1999 the government, through the Ministry of Finance’s Public Investment Fund (PIF), acquired a majority holding in the bank. www.alahli.com

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TOP 10

09 Emirates NBD SECTOR: FINANCE COUNTRY: UAE

Emirates NBD, the leading banking group in the region, was formed in 2007, the result of merger between Emirates Bank International (EBI) and the National Bank of Dubai (NBD). The group invests in several schemes to preserve the culture of the UAE and in 2003, it launched the first pearl museum in the region containing the largest collection of natural pearls in the GCC. www.emiratesnbd.com

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BIG BRANDS

10 Ooredoo SECTOR: TELECOMS COUNTRY: QATAR

With a global customer base of 117 million customers, Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet and corporate managed services to consumers and businesses across markets in the Middle East. In 2015 the company reported revenues of USD 8.8 billion. www.ooredoo.com

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FIRST PORT OF CALL Written by: Nye Longman Produced by: Dennis Morales

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International Container Terminal Services is a mid-sized port and terminal operator but its strong track record, demonstrated over the past three decades, suggests the work of something far greater

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I

nternational Container Terminal Services, Inc. (ICTSI) has been acquiring, developing, managing and operating container ports and terminals across the world since 1987. Following its successful development of the Manila International Container Terminal in the Philippines, the company has established a global footprint

and remains at the forefront of a number of key port developments, utilising its nearly three decades of experience to grow operations in some of the most challenging environments in the world. Operations ICTSI is a publicly listed company; across its eventful history it has

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INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

8,016 Number of jobs to be supported by ICTSI

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delivered for governments across the globe. Alongside overseeing day-to-day operations and providing experienced management oversight, the company focuses on investing and developing its terminals to not only deliver value for investors and stakeholders, but also to build rewarding careers and opportunities for its staff. ICTSI’s Hans Ole Madsen has spent his life working in the shipping and terminals industry; before he took on his Vice Presidency at the company he served in similar VP positions in the AP Moller Maersk Group and APM Terminals.


S U P P LY C H A I N

“It’s been very exciting,” he says. “I have spent most of my life in shipping and working in Asia. I like the management style and the way people do business – it works very well. ICTSI has a very lean operation in terms of business administration; we have independent business units and we try not to make things too complicated – the decision process is very fast.” The company’s presence consists of 13 sites in the AsiaPacific region, three in Africa, three in Europe, eight in the Americas, and three in the Middle East. “The company has been on a 30-year

investment journey, which has seen it develop 20 terminals and projects around the world – the majority of which we own and operate 100 percent, but we also have some joint ventures,” Madsen explains. “We focus on a combination of cost efficiency and keeping our clients happy. We don’t just focus on the ships, we also take the time to focus on the land-based importers and exporters ensuring efficient and smooth receipt and delivery of containers and other cargo. When you achieve that you build a good reputation in the local market because

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INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

the end-clients are happy.” Local communities and stakeholders are also factored into the company’s business plan, he explains: “Wherever possible, within a three-five year period, we try to localise all positions in the host country up to and including senior management level. It can be challenging and is not always achievable but we still have it as a goal and we keep pushing for it.”

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Against the odds Perhaps the best example of how ICTSI has been able to leverage its agile and locally-considerate business model is its ongoing work at the Port of Umm Qasr in Iraq. In early 2014, ICTSI signed an agreement with the General Company for Ports of Iraq which gave the company responsibility for container and general cargo operations at this crucial port, which also included the remit to


S U P P LY C H A I N

expand on current operations with the construction of a new container and general cargo terminal. Madsen explains: “The development process entailed finding a combination of international designers and local construction companies – this has worked out very well for us. Umm Qasr itself has a yearly capacity for 800,000 TEUs which are serviced by four quay cranes together with two mobile harbour cranes. Situated in the South East of the country, the Port provides a vital supply line with the outside world, servicing ships coming from the Persian Gulf delivering cargo for onward transport

‘The company’s presence consists of 13 sites in the AsiaPacific region, three in Africa, three in Europe, eight in the Americas, and three in the Middle East’

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INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

$1.056 bn The amount of revenue in USD created by ICTSI

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S U P P LY C H A I N

to the country’s interior. “The media and newspapers make people think that there’s a war going on everywhere but the southern part of Iraq has been peaceful for quite some time. It’s challenging but the Iraqi government is very happy that we are here. We believe in the country and $130 million has been invested in Phase 1 alone.” Madsen adds. Phase 1 will add an additional 350,000 TEU capacity to the port. Another example of where ICTSI is developing brand new terminal facilities in a challenging environment is in the Democratic Republic of the Congo (DRC). The port at Matadi, on the Congo River, will be the first in the country to be developed via a Public-Private Partnership (PPP) port in the DRC. “It’s completely greenfield and is a very challenging place to construct in. We basically had to move mountains to make space for container storage. Construction will be fully completed by the end of the year, and by 1st June this year

we will have the first quay, which is important because there are a lot of ships waiting,” Madsen notes. Once completed the port will have an annual capacity of 120,000 TEUs and 350,000 tonnes of cargo. It will provide a significant stimulus to the DRC’s ailing logistics industry since much of the country’s products are currently exported via other countries. Competitive strategy Madsen explains that the structure of ICTSI has been fundamental to its success in challenging environments like Iraq and the DRC. “When you work in a challenging environment, having a lean and mean organisation and being able to make quick decisions is very important. You may be forced to make decisions on the spot – there is no time for bureaucracy; a decentralised organisation and short decision-making process really helps us,” he underlines. Madsen and his colleagues also recognise that while the

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INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

“When you work in a challenging environment, having a lean and mean organisation and being able toW make quick decision is very important” – Hans Ole Madsen, Vice President

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Middle East is a relatively mature market backed up by significant ongoing infrastructure investments, there are still many opportunities to take advantage of given the region’s high growth profile. While the bulk of container terminals in the region exist as government monopolies, the company still seeks areas where it can assist countries by improving core operations and adding value. In terms of competition, Madsen notes: “Many competitors are affiliated to a single shipping company - we are a 100 per cent independent operator – we treat all of our clients equally. We use state-of-the-art software at all of our


S U P P LY C H A I N

terminals – even the smaller ones. In Australia we are completing the development, this year, of the country’s first fully-automated container terminal. We hope to learn a lot from this project and to deploy this technology to other ports.” Having gained a solid reputation for delivering high performing terminals in often very difficult environments, Madsen is confident that ICTSI is more than capable of competing with the largest players in the industry. The company was recently recognised

for having the best corporate bond at the Asset Triple A Country Awards. “We are a medium-sized player in the industry and there are larger ones that compete with us, so it means a lot when we are internationally recognised. In terms of how we compete, we believe that we have many strong and good competitors, so being a little bit more nimble, we can do things smarter and more simply than the bigger players,” he concludes.

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Written by: Lucy Dixon Produced by: Richard Thomas

Keeping COOL


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TA B R E E D O M A N

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June 2016


ENERGY

Tabreed Oman is offering a dynamic approach to district cooling systems in Oman, as Business Review Middle East reports

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ith summer temperatures soaring to 50 degrees Celsius and beyond, it is obvious that cooling is big business in the Middle East – accounting for the majority of the energy needs across the region in the peak season. And district cooling, with the ability to save considerable amounts of energy when compared to traditional systems, is suitable for a range of developments from business districts and airports to hotels and high-density residential buildings. One centralised cooling system can pump chilled water to the buildings of numerous customers, reducing the inefficiencies that occur when every building needs to have its own cooling system. Tabreed Oman, a subsidiary of Tabreed in the UAE, is currently spreading the district cooling message in Oman. The company’s

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TA B R E E D O M A N

Salim Al Farsi CEO

Salim Al Farsi, Chief Executive Officer, has BA (Honours) Accounting Degree University of Derby, UK and later became a fully qualified fellow charted accountant (ACCA UK), Salim brings with him fifteen years’ experience from different industry, started his working life in the Oil and Gas industry then to investment and construction industry and now to the utility business. Prior to joining Tabreed, he was the finance manager at Oman Oil Company E&P.

“The customer saw it in his benefit to spend that bit of extra cash to convert his buildings to be compatible to our system – so he could slice his electricity bill by half for the next 25 years” – Salim Al Farsi, CEO

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CEO Salim Al Farsi explains its business model: “What we provide is a solution whereby we build a cooling plant that can serve multiple customers. It’s owned by Tabreed Oman for the next 25 years, so it is in our best interest to look after it in the best possible way. The customer does not need to worry about anything except receiving the service.” This means that Tabreed Oman’s customers pay monthly energy bills in the same way they always have for other utilities such as power and water, without needing to concern themselves with maintenance of the equipment. Energy-efficient cooling that saves building owners both money and hassle seems like a straightforward choice, and Al Farsi’s team is working hard to make sure the benefits are explained to potential clients throughout Oman. It goes beyond cutting energy bills, he says, even meaning that a newbuild’s construction costs can


ENERGY

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TA B R E E D O M A N

“A lot of the time we get referred by our current customers, in fact our biggest customer came through referral” – Salim Al Farsi, CEO

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ENERGY

25

The total number of staff employed by Tabreed Oman

that Tabreed Oman is conducting an educational campaign at the moment. Al Farsi adds: “All the officials so far that we have seen love the concept. Everybody appreciates what we do and everybody believes in what we do.” Turning this belief into firm orders is not quite as simple – but as Tabreed Oman’s happy customers are spreading the word, the company is steadily growing. As we all know, word of mouth is a very powerful marketing tool. So as the projects come in, Al Farsi is working on further expansion, building personal relationships with potential clients. “My network is good and a lot of the time we get referred by our current customers, in fact our biggest customer came through referral. Tabreed Oman is the only company in Oman offering district

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Musabah Al Siyabi

Operation & Maintenance Director Musabah Hamed Al Siyabi Has a BSc in Electrical Engineering from Sultan Qaboos University with over 17-years experience in design, operation and maintenance of Electrical & Mechanical Systems for Power & DC Plants & Building Services. He joined Tabreed Oman in 2009 as a Project Senior Engineer & prior to joining Tabreed, he was a Project Engineer for the Ministry of Defense Engineering Services.

be reduced. “As a rule of thumb, a building’s energy requirements will be 70/30 with the majority needed for the air conditioning system. And the rest goes for the building remaining load. By removing up to 70 percent of the requirement,

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all the electrical infrastructure will be reduced. By using a Tabreed system, the total building capital investment cost can be reduced by 15 percent to 20 percent. Clearly a district cooling system can reduce costs significantly,


ENERGY

Abdullah Al-Hinai

Projects & Planning Director Abdullah Said Al-Hinai Has a Master degree (MSc) in Engineering Projects Management from Bournemouth University (UK), having more than 18 years of experience in the fields of Telecommunications and Civil Projects. Prior to his assignment with Tabreed Oman, Abdullah was an Equipments Engineer at MB Petroleum Services and before that he was Radio Supervisor and Projects Director Assistant in the Royal Navy of Oman.

but despite being around since the 19th century, it is a relatively new concept in Oman. Other benefits of district cooling include space saving, no chiller noise, a reduction of refrigerant emissions, improved building appearance and

reduced electrical infrastructure. Despite these advantages, Al Farsi says: “It is a bit of challenge to convince people to sign up for our coolage solution, because not many people are aware of how it works.” So you could say

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TA B R E E D O M A N

2m OMR

The amount of revenue generated by Tabreed Oman 54

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cooling systems in this way. “The only competition we have is how to convince people not to buy the system themselves but to come to us. There are a lot of things we can bring on the table as benefits, our knowledge and experience.” Al Farsi points out that Tabreed Oman is the expert in this field and its business model means that customers are taking no risk themselves, as they aren’t responsible for the operation and maintenance of the equipment. The company’s biggest project to date was


ENERGY

the Palm Mall, owned by Tamani Global Development & Investment LLC, The cooling system offered by Tabreed Oman will utilize Treated Sewage Effluent (TSE) water provided by Haya, resulting in a very green solution. Another project is the Knowledge Oasis Muscat (KOM), a technology park which was opened in 2003, which involved a mix of newbuilds and existing buildings. Al Farsi explains: “For this particular

project we built a plant and connected new buildings. At the same time, we had two existing buildings already at that site, so we converted them to our new system. The customer saw it in his benefit to spend that bit of extra cash to convert those buildings to be compatible to our system – so they could slice their electricity bills by half for the next 25 years. That’s an awful lot of money to save.”

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Responsible dairies Written by: Nell Walker Produced by: Alex Barron



FONTERRA BRANDS MIDDLE EAST

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FOOD & DRINK

New Zealand’s largest company, Fonterra, has an enormous global reach, with its dairy products found all over the world. Operations Director Aamir Mehdi describes to Business Review Middle East how the company has grown, and its increasing impact on the region

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ew Zealand’s largest company, Fonterra, began as a merger of the New Zealand Dairy Board and Kiwi Cooperative Dairies in 2001, having previously operated as several smaller co-ops. It is owned by over 10,000 farmers and handles more than 90 percent of the milk produced within the country. While Fonterra as a corporate entity is relatively new, its heritage goes back nearly 150 years – Anchor was founded in 1886 and remains incredibly popular across each country in which Fonterra operates. Fonterra’s reach spreads over 130 countries, maintaining two distinct arms of business: Fonterra Ingredients, which produces an array of daily ingredients to sell

to huge food companies such as Nestle, Danone and Kraft, and a relatively smaller Brands division, specialising in converting those same ingredients to valueadded products sold under Fonterra’s own brand names, making Fonterra one of the few fully-integrated dairy supply chain companies in the world. New Zealand, with its human population of around four million, has between five and six million cows, leaving Fonterra needing to find homes for billions of litres of milk. The natural solution was to become a worldwide dairy exporter – now the largest in the world – and the fifth largest dairy producer. Aamir Mehdi, Operations Director at Fonterra Middle East, has

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helped to develop the company’s footprint in Africa with a brand enormous global reach from its new factory in Addis Ababa. Middle East headquarters in Dubai. “We sell milk powder, butter, and “I work within the Middle East/ a variety of cheeses and creams, Africa/Central but in the absence Asia sector of of access to local the business,” he milk pools in this Responsible Dairying says. “Of about region we choose 63 countries in - for now - not to this region, we are compete with the active within 25 of big names in fresh them. I look after milk products. We the operations side are committed which is composed to move New of manufacturing, Zealand’s pure dairy supply chain, R&D, nutrition across our procurement, and supporting markets; that is where all our dairy new market expansion projects. ingredients come from and then, This is a very wide region with and there’s a lot of processing a lot of emerging markets. We involved to turn it into the consumer already have a presence with products we sell here. Innovation our own manufacturing facility in is a high priority; this can only Saudi Arabia – our big regional be done if you have local assets. manufacturing site – and we’ve We can’t get everything readyrecently expanded our asset made from New Zealand.”

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FONTERRA

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Paint Cans

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Plastic Pails

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FOOD & DRINK

Everyday nutrition to dairy nutrition, and if they can The portfolio for Mehdi’s region get it, it’s very expensive,” Mehdi of the business is dominated by says. “We have developed a Everyday Nutrition, which targets product which targets deficiencies products that people consume in children but costs less than a for basic nourishment. It involves can of soda. Addressing the issues a focus upon products which of affordability and availability are would be found on the typical our main strategy for expansion.” household dining table for everyday consumption like Corporate identity butter, milk Fonterra places powder, and a huge amount spreadable of focus on its cheese. identity with Number of Employees at Fonterra also has its customers, Fonterra brands middle east Specialist Nutrition consumers, and offerings for adults and shareholders. This identity children. The company intends a involves being responsible in the great deal of expansion into Africa, way that it makes its nutrition for which the concept of Everyday available, including the basic quality Nutrition customised for local of the product, hygiene factors, needs - especially in markets with processing techniques, ingredients, deficiencies - is proving popular. and care for the environment. “There are almost 100 million The company complies with the people in Ethiopia with little access highest standards in the world,

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becoming seen as the most trusted source of dairy nutrition in the world,” Mehdi says. “We go to great lengths to signify and demonstrate that. As an example we are installing X-ray machines to check for contamination in all production lines, which sometimes cost twice as much as entire packing lines of some of our competitors; the effort we make to live by our aim to be the most trusted dairy is demonstrated at all touch-points - in the way we treat our animal herds, our people, and our customers.” ensuring that the cows are almost exclusively grass-fed with no chemical hormones involved. Sustainability is a major component of this identity, and Fonterra places enormous significance on the concept: “Our dedication to sustainable standards allows us to work towards

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Farming operations The farming operation in New Zealand is one of the most sophisticated in the world; the policies it has in place, the treatment of animals, milking techniques, and equipment are all state-of-theart. The country’s beef industry allows for a lot of collaboration


FOOD & DRINK

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Established in 1981, GGMC is one of the first Glass Plants in GCC for producing high quality glass containers for the beverage and food sectors in the Middle East region. GGMC has two furnaces with the capability to produce a wide range of Glass containers of various sizes, shapes, colors, capacities and weights. With the strength of state-of-the-art technology and consolidated experience, GGMC, is committed to total customer satisfaction. P.O Box 26996, Safat 13130 Kuwait Tel: (965) 22285552 | Fax: (965) 22285551 Email: sales@ggmc.com.kw Website: www.ggmc.com.kw


FONTERRA BRANDS MIDDLE EAST

in the ethical treatment of cows, and Fonterra also works with environmental protection groups regarding the best ways to recycle the bio-waste they produce. As the biggest company in the nation, Fonterra is the employer of choice, and the scale of the business attracts key talent – beyond New Zealand, Fonterra relies on the strength of its brands and reputation for the same. “Our sheer household presence across the world is a huge advantage,” says Mehdi. “The reach we have is massive, and people who come and work with us become ambassadors. When you see our products on the shelves, especially in the Middle East where there are aisles and aisles filled with options for consumers, we have something for every dining occasion. In terms of quality and freshness we believe our offerings are both

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world standard and differentiated. “One of the strategies that we continue to work on is the strength of our brand, and what it stands for in terms of improving the life and health of families – that’s very close to our hearts. We don’t use a ‘one size fits all’ approach for products, especially in a place as diverse as the Middle East.” Expansion Fonterra’s expansion plans are quite focused towards Africa as well as building on the strength of current competencies in KSA. Mehdi considers the company to be hugely committed to the MEA region, with the Saudi factory in particular undergoing projects for new production lines that will make cheese products for every segment, suited to the local palate. “When we look at the countries that we are present in, as well as


FOOD & DRINK

Our Supply Chain

where we are expanding, there is also focus on what we contribute back to the community. Raising The quality and skill set of local talent especially in KSA and Ethiopia is very high up on the agenda, We are spending time and effort in training, development and recruitment of fresh local talent from universities who can be groomed for future

leadership of this business. Setting up a local R&D team in Saudi is a strong example of this. “We’ll continue to invest heavily in pursuit of this goal of raising the capabilities of local talent. We want to be known as a very responsible corporate citizen, who is committed to this region for the long run.”

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Escalating innovation Written by: Alice Young Produced by: Craig Daniels


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SCHINDLER MIDDLE-EAST

Having grown from a company with almost 150 years of experience, Schindler Middle East is poised to dominate its target markets backed up by a number of innovations

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or almost 150 years, Swissbased Schindler has been a world leader for elevators, escalators and moving walks. With a reach that spans roughly 100 countries and over 1,000 offices, the company has operated in the MENA region for seven years and previously with distributors. As skyscrapers were erected all across the region in the wake of the oil boom, Schindler Middle East was perfectly positioned to deliver its long-standing expertise. Far from complacent, the company is focused on fine-tuning its competitive strategy, expanding territorially and developing its talent base.

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TECHNOLOGY

Operations Schindler’s remit covers the manufacture, installation, and servicing of elevators, escalators and moving walks, as well as the added ability to modernise legacy installations. As well as delivering the most high-tech engineering in the industry, the company also specialises in providing building transit solutions in line with the latest safety and reliability standards. Through a series of offices, distributors, warehouses and affiliates, Schindler Middle East has operations in Kuwait, Iraq, Bahrain, Egypt, Lebanon, Qatar, Saudi Arabia, UAE, Iran, Oman, and Jordan. All told, the region is served by seven main branches and six distributors, as well as training centres in Jeddah and Dubai. In order to ensure that this offering consistently delivers for customers, the company has a strong improvement programme in place, which brings together all aspects of its operations, spearheaded by the company’s R&D department.

Matteo Napoli, UAE Managing Director explains: “We have a culture of continuous improvement - we never stop looking for improvements to our operations, our processes, and our products. Mostly we are delivering input related to the field in order to provide continuous feedback on the process, material, and tools so that these can be improved and we can bring more innovation. “Sending information back to our headquarters and every branch in each territory makes us aware of these improvements. We value customer feedback because it pushes us to continuously improve our operations.” Schindler is also in the process of further aligning its distribution channels to more closely meet the needs of its customer base. Not only does a distributor need to make economic sense for the company, it also needs to meet the company’s stringent standards, which includes a particular focus on health and safety.

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Gulf Test Safety Consultancies P.O Box 133143, AbuDhabi, United Arab Emirates T: +971 2 5575244 | F: +971 2 5575883 P.O Box 184518, Dubai, United Arab Emirates T: +971 4 273 4038 | F: +971 4 273 4039

Gulf Test is currently providing Third party Inspection services of Elevators, Escalators & Loose lifting gear to Schindler UAE. GTS Third Party Inspection services are accredited by Dubai Accreditation Centre (DAC, ILAC Recognized) and ENAS. EHS training services provided by GTS are approved by ACTVET and accredited by NEBOSH, IOSH, NASP, EFR UK, SAIA USA. GTS is approved by AD EHS Centre as Grade A, EHS Consultant for the Development and Implementation of EHSMS. Mobile: +971 52 909 7149 | Web Site: www.gulftest.org | Email: sales@gulftest.org

Your imagination our design Specialist manufacturers of components and fixtures to enhance the elevator appearance inside and out, Dewhurst design and develop products that meet the strict requirements of architects, consultants and property owners.

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For our New Product Guide or for further information please contact: Neil Gardner

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TECHNOLOGY

Philippe Boue Managing Director Schindler Middle East Philippe has been working for Schindler for the last 18 years and has served Schindler organisation in multiple roles in France, China and lately in Japan. At his current position Philippe leads the Middle East Region. w w w. s c h i n d l e r. c o m

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‘The Solar Impulse project aims to develop long-range, solar powered aircraft; 2015 saw the longest solar powered flight in history between Abu Dhabi and Hawaii’ Talent management Schindler’s industry necessitates that its 3,000 Middle East employees are not only well-trained in health and safety measures, but also a variety of essential technical skills, which is why the company has developed a robust talent management programme. Alongside its holistic training protocols, Schindler also enables its employees to progress to new levels of responsibility. Alongside pathways to senior management, members of the workforce are also able to develop their expertise across the company and specialise in a variety of fields. Philippe Boue, Schindler’s Middle East Managing Director explains: “Our business is a

people business, especially when it comes to maintenance. We developed management systems to make sure that our field technicians are safe and that they live the values of our company.” He adds that Schindler combines its years of experience with the latest best practices: “We make a distinction between technical training and general training. Everything related to technical training is done in house. We have more almost 150 years of history, expertise, and experience that is passed on in training courses but when it comes to new innovations or general training we use a mix of in-house and external. When it comes to training for our leaders and senior

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Akcura MetalCrafters is one of the top Elevator interior manufacturing companies in the UAE serving UAE and Middle East markets. Our speciality is Stainless steel, Wood, Glass, Stone, wall covering and Leather interiors for the Elevators and Escalators. Tel: +971 4 2592533 Email: info@akcurametalcrafters.com akcura@eim.ae www.akcurametalcrafters.com

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executives we may often source technical training from business schools to get fresh views.� The company still bears the surname of co-founder Robert Schindler and, as Napoli explains, retains a strong sense of identity: “This is very peculiar market compared to many others in the rest of the world, because we are all basically expatriates. One of the most important


TECHNOLOGY

values is that we are a family company and we want employees to feel part of the Schindler family. “To attract, retain and motivate our employees we have a solid training plan, which encourages job rotation; we have a retention plan for loyal employees company with a rewards package.” Competitive strategy Many companies would become complacent with such an established and developed offering as Schindler, but it is keen to

remain in control of its destiny and therefore has a number of initiatives in place to keep ahead of its competition. An example of this is its willingness to utilise technology to facilitate communication; via its Field Link platform, engineers are able to utilise mobile technology to order parts and liaise with the company call centre. Napoli adds: “Technology is, of course, a clear success factor in our operations to differentiate our product and services from the competition. Lately, we have invested a lot in terms of digitalisation. “We have

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embraced the digital world and we now see technology as more than just tools or gadgets - we are really focused on embedding our processes to make us more efficient and more competitive.” The company, Boue explains, is also in the process of refining some of its supply chain processes in order to operate more efficiently: “We are also working on continuous improvement programs for our subcontractors in order to deliver the best quality for every single project.” Always keen to keep abreast of future technologies, Schindler Middle East is engaged in a number of innovative, high-profile ventures. Most prominent of these is the Solar Impulse project which aims to develop long-range, solar powered aircraft; 2015 saw

the longest solar powered flight in history between Abu Dhabi and Hawaii. The company has also been instrumental in the development of a solar powered elevator, which will enable businesses to seamlessly reduce their carbon footprints. Schindler Middle East has developed an already strong presence in a region that has experienced substantial growth, and it is set to continue on this trajectory. Having invested considerable time and resources in ensuring that the business is firmly in line with the demands of its customers, the company has been able to demonstrate to the world that it is home to some of the most talented and innovative engineers on the planet, and that its position is very much secured for years to come.

Number of employees

3,000

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TECHNOLOGY

Matteo Napoli Managing Director Schindler UAE Matteo Napoli holds a Master of Science (MSc) degree in Management, from the University “Politecnico di Milano”. In 2009, he joined Schindler in Italy. Since then, Matteo has served in various roles, starting with sales in Italy, then becoming the executive assistant to the Deputy CEO in Spain, to continue as a project manager in the UAE. He is currently the managing director of UAE.

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Cementi


ing the supply chain Written by: Nell Walker

Produced by: Heykel Ouni 81


A L S A F WA C E M E N T C O M PA N Y ( A S C C )

Riad Bestani, Supply Chain Director of Alsafwa Cement, describes the positive effect his procurement overhaul has had on the prestigious company

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2008

The year that ASCC was founded

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lsafwa is a joint venture between four partners, with half of them private and half public, the former being two industrial partners – LafargeHolcim, the world leader in the building materials industry, and El Khayyat, a red brick manufacturer. Based in Saudi Arabia, this cluster of companies has led to Alsafwa becoming a trusted and respected company across the GCC, to the point that it plans to double capacity by 2017. Riad Bestani, the CPO of Alsafwa’s cement arm, joined the company in 2013 after many years of procurement experience. This familiarity with the industry means that he is well aware of the safety issues of providing cement in a region like Saudi Arabia, even outside the company’s property. “Road safety is a real challenge in this part of the world,” he says, “and Alsafwa people need to drive back and forth more than 300km per day. One of the things we’ve done to ensure the best health and safety conditions for our staff is reducing the travelling hazards for them by


CONSTRUCTION

providing buses, in addition to adequate accommodation onsite for the majority of plant staff. Our plant is far from town, so the least we can do is reduce risks by making sure our employees get back home safe and sound. ” The processes involved in creating cement – grinding stone, burning it (up to 1400 degrees Celsius) until it’s liquefied, and grinding again into a powder – involves behaviors and practices that can be dangerous if they are not properly anticipated and secured.

The company ensures strict control of every situation to guarantee safety procedures are followed. “The quarry area we have onsite has a very tough mountain topography, and working on it is very complex,” Bestani explains. “We need to drill, to blast materials, vehicles need to go up and down, and we need excavators to ensure full control over falling rocks. Geomining experts that have visited our quarry warned us on the high numbers of hazards that have to be monitored and anticipated. We have

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As a leader in fabrication, maintenance and erection service of heavy industrial plants, INTERMAINT has the human , technical resources , the depth of know-how and experience to help clients achieve success domestically and overseas. Address: P.O.Box 325591 Riyadh 11371 | Tel: +966 11 47 622 30 | Fax: + 966 11 29 16 798. | Email: hesham@intermaint.net | Website: www.intermaint.net

WORN THE REST, NOW USE THE BEST Aceros y Suministros, founded in 1951, is a company specialized in manufacturing and supplying steel wear parts for the cement &mining industries. Offering impact, abrasion, corrosion and high temperature resistant steels, to suit different working conditions and processes such as crushing, grinding, pyroprocessing and material handling. Our products are of the highest quality and meet the most demanding technical requirements.

Contact: www.acerosysuministros.com cement@acerosysuministros.com


CONSTRUCTION

strict safety exigencies towards our suppliers working on-site, and our employees make sure health and safety requirements are being fulfilled. “We have to be very careful, so we assess suppliers to ensure they understand our safety procedures. We train them, and we refresh that training regularly. We make checks and audits across every level, and really these are basic requirements. Lives are at stake. When a safety problem appears, everyone is empowered to stop it and report it for deep analysis of its root causes. We have company-wide reviews with health and safety committees which makes sure we’re implementing the action plans.” When Bestani joined the company, one of his main missions was to create a proper process for procurement activity and build a structured procurement organisation. Due to a growing market and a high number of job opportunities, one challenge in Saudi Arabia – and across the GCC – is employees’ tendency to quickly move on, especially the younger generation, making it challenging to acquire and retain the right staff. Bestani immediately brought on board new people for his team composed of trusted connections he had made during his career, and he ensured the existing team was properly positioned for tasks they fitted into. “It’s about networking, putting together the right organisation, delegating to people in

“We are one of the very few, if not the only company to be using alternative fuel in the cement industry” – Riad Bestani, Supply Chain Director of Alsafwa Cement

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300

The number of ASCC employees

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key areas, and building trust with people you believe can bring you the performance. The procurement team was split into three groups – industrial sourcing, general services sourcing, and performance activities, which give you the performance and evaluation of the way you’re managing your supply chain. We track a number of KPIs among the suppliers, assessing their performance, cost reduction for main strategic suppliers, and lead time between requests and orders as well as spend coverage.” Bestani spent two years implementing a task force composed of people from main interacting departments of the company – plant, finance, and IT – making sure they worked intelligently and understood what their individual responsibilities were. It has meant enormous progress in terms of procurement, but it is a continuous task to keep people trained and engaged in their job role. Bestani explains: “I had to drive far-reaching changes. It’s not easy to accept that there are hurdles to overcome and a lot of convincing that

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needed to happen, but in the end it was worth the effort, and it’s been quite positive with results translating to some big savings. Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation and to retain the talent.” Saudisation is being heavily promoted in the country, and involves retaining as much

business as possible in the Kingdom itself. The rule in Saudi is that if a foreign company wants to invest, it has to be making a partnership with a local company. It is also required that investors procure obligations depending on the sector – for cement, there has to be a minimum level of Saudisation. “HR, for example, needs to be Saudi national,” Bestani says. “The minimum general Saudisation in our sector needs to be 12 percent, and we have 49 percent

Efficient Operation Through Quality Lubrication


CONSTRUCTION

as of today. It gives us all kinds of advantages; there’s a sort of mileage card and the more Saudi nationals you have on board, the more you can get loans and subsidies from banks and the government. It’s a great incentive.” The company also tries hard to increase female employees number into work, since national law allows it only in specific areas. Alsafwa hired its first female employee in 2010, and Bestani is pleased to have contributed in his department last year with the first female in procurement: “I’m proud of being able to do that, because it’s challenging, since women have a long way to go to gain access to the job market. We hire most of them into entry positions and train them up for better opportunities later on.” The cement business in Saudi Arabia is enormous; the nation produces 50-60 million tons a year, compared with the US which creates 75 million tons with ten times the population. Most of the companies that produce it are 20-30 years old, and the way Alsafwa’s cement business differentiates itself is through innovation and sustainability. “We focus a lot on innovative solutions. Oil is becoming a scarcer commodity, so we’re looking at alternative fuels, and we’re working with municipalities and utilities companies who are eager to develop more environmentally-friendly use of energy through waste management

“Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation” – Riad Bestani, Supply Chain Director of Alsafwa Cement

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and recycling initiatives. This is one of the great advantages the LafargeHolcim group has in terms of developing solutions. “Its highly state-of-the-art research center in Lyon, France, allows different business units of the group around the world to benefit from its knowledge and experts in key practices. However, the move is very slow here, and it takes a while to get approvals. It requires a lot of involvement, patience, and commitment to achieve what we want to. We are one of the very few, if not the only company to be using alternative fuel in the cement industry.” The company’s motto is ‘think global, act local’, and Bestani is keen to stand out from other Saudi businesses with Alsafwa’s unique approach: “The support we get from the group in terms of worldwide supplier panel and Best Cost Countries solutions – a platform based in China helping to source alternatively to European brands – is definitely giving us a step ahead compared to competition, and we always need to keep that advantage. “In two years’ time, we are not going to be doing procurement the same way. Procurement evolves with the needs, and sustainability will change with it. This procurement department wasn’t always making use of all these advantages, and I’ve had to adapt it to bring it up-to-date. Business isn’t static; we’ll be improving all the time.”

500m Riyal ASCC’s annual revenue

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