Planting the Seeds of Changes
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
LNME soars into the future with an exclusive interview featuring Vincent Coste, the Chief Commercial Officer of Riyadh Air LOGISTICS LUMINARIES IN THE
As Saudi Arabia drives Vision 2030, it’s forging a new era in logistics. Uncover stories of the industry’s vibrant transformation
Nestled by the coast of Lusail sits the splendor of Raf es and Fairmont Doha, where luxury is rooted in even the smallest details. Open the doors to mesmerizing hospitality and make memories in a world of sophistication.
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
CEO
Wissam Younane wissam@bncpublishing.net
Director
CEO
Rabih Najm rabih@bncpublishing.net
Wissam Younane wissam@bncpublishing.net
Group Publishing Director
Director
Joaquim D’Costa jo@bncpublishing.net
Rabih Najm rabih@bncpublishing.net
Editor-in-Chief
Group Publishing Director
Vibha Mehta vibha@bncpublishing.net
Joaquim D'Costa jo@bncpublishing.net
Sales Manager
Editor-in-Chief
Alex Brown alex@bncpublishing.net
Vibha Mehta vibha@bncpublishing.net
Assistant Editor
Managing Editor
Aya Zhang aya@bncpublishing.net
Kasun Illankoon kasun@bncpublishing.net
Creative Lead
SUBSCRIBE subscriptions@bncpublishing.net
Christian Harb chriss@bncpublishing.net
Design Christian Harb
Editorial Design
Marketing Executive
Rizaldi Febrian
Aaron Joshua Sinanbam aj@bncpublishing.net
Marketing Executive
Digital Media Producer
Aaron Joshua Sinanbam aj@bncpublishing.net
Alexander Bungas
Videographer Alexander Bungas
PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196
For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706
subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196
All rights reserved © 2023. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.
Printed by United Printing and Publishing | upp.ae
For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706 All rights reserved © 2023. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are o cially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.
Printed by United Printing and Publishing | upp.ae
In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. We’re looking forward to interacting with our readers on all of our social media and web platforms. See you on the web!
addition to our we’re bringing you all sorts of industry news on our web mediums. We’re looking forward to interacting with our readers on all of our social media and web platforms. See you on the web!
"A man who does not plan long ahead will find trouble at his door," said Confucius wisely. Planning acts as a GPS in our lives. Without this, we are wandering blindly through life, each turn potentially leading to chaos. Of course, it might not bring our expected outcomes — some we will celebrate, others we will learn from, and a few that will bring dead ends and total frustration. But it guarantees a sense of direction, and without this direction, we risk staying stagnant while opportunities pass us by.
In this month’s edition, we dive into the transformative shifts taking place in the Kingdom of Saudi Arabia, with Vision 2030 acting as guiding compass. The Kingdom is not merely setting plans and goals; it is plotting a revolutionary course for its future. Saudi logistics companies are aligning with this vision to transform the country into a premier logistics hub. Priorities include investing in infrastructure development, embracing technological advancements, championing sustainability, and forging regional and global partnerships, with companies like SAL Saudi Logistics Services leading the charge. Meanwhile, Riyadh Air is planning to expand its reach to over 100 destinations by 2030, Swisslog is driving the shift to clean energy through cutting-edge technologies, and Saudia Cargo is enhancing non-oil exports to bolster Saudi businesses on the global stage.
Other interesting stories include an exclusive interview with the Co-Founder and Chief Strategy Officer of iMile, who reveals their latest sustainability initiatives, insights from GAC on the evolving e-commerce landscape and its impact on logistics precision, and a behind-the-scenes look at Jumbo Logistics’
New IVECO T-Way: high productivity and safety on off-road terrains
With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-Way features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.
New IVECO S-Way: high technology and efficiency for on-road missions
The new IVECO S-Way, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator, 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.
Step into a world of opulence when you book a Suite at Raffles Doha.
Experience the added luxury of QAR 750 credit to spend on dining in the hotel, and QAR 500 towards any Spa treatment.
Children aged 12 and below are welcome to indulge in the enchantment of complimentary dining.
Rates starting from QAR 3,500 per night
For reservations, please call +974 4030 7100 or email reservations.doha@raffles.com
12.126
The results highlight significant revenue and profit growth, driven by successful project execution and strategic expansion
NMDC Group, a global leader in engineering, procurement, construction, and marine dredging (Abu Dhabi Securities Exchange: NMDC), today disclosed its financial results for the first half of 2024 (H1 2024). The Group reported a 79% increase in revenues, reaching AED 12.126 billion, compared to AED 6.765 billion in the same period last year.
Reflecting the strong growth in its strategic projects, NMDC Group reported a 66% increase in net profits for H1 2024, reaching AED 1.461 billion compared to AED 881 million in the previous year. Gross profits also surged by 109% to AED 1.731 billion, up from AED 829 million. These financial results are a testament to the Group’s operational efficiency and successful expansion through new projects, emphasizing its key role in promoting economic diversification in the region. NMDC Group’s backlog stood strong at AED 72.6 billion, accounting for nearly six times their first-half revenue annualized and demonstrating its solid presence in the market. The Group’s asset value also witnessed significant growth, reaching AED 28.501 billion as of H1 2024, a rise of AED 7.654 billion since Q4 2023.
In the second quarter of 2024, NMDC Group reported a 91% revenue increase to AED 6.784 billion, up from AED 3.556 billion in the same quarter of the previous year. Net profits saw a significant rise of 42%, totaling AED 820 million, up from AED 578 million in Q2 2023. Additionally, gross profits surged by 84% to AED 929 million, compared to AED 506 million in the same period last year.
His Excellency Mohamed Thani Murshed Ghannam Al Rumaithi, Chairman of NMDC Group, said: “The exceptional results we have delivered are deeply rooted in the visionary guidance of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, and the direction of His Highness Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. Their leadership is not only a source of inspiration but also a directive that compels us to push the boundaries of our capabilities and commit to sustainable economic progress. Our achievements reflect our alignment with their vision, showcasing our commitment to driving the UAE’s prosperity and upholding its esteemed position on the global stage.”
“I am extraordinarily proud of what we have achieved at NMDC Group. Our outstanding financial performance is a testament to our relentless pursuit of excellence and our strategic execution. By consistently exceeding our goals,
we have strengthened our leadership in the industry. These accomplishments underscore our dedication to sustainable development and the cultivation of local talent, aligning closely with the broader objectives of the UAE’s economic agenda,” he added.
Eng. Yasser Zaghloul, CEO of NMDC Group, expressed his profound gratitude to the wise leadership and the company’s key shareholders for their unwavering support, adding: “The exceptional performance for the first half of the year is a testament to the continuous direction and backing of the group’s Board of Directors. We meticulously planned, executed, and observed significant advancements in our major projects, expanded our portfolio with new contracts, and reinforced our leadership position in the market. Our strategy, characterized by foresight, innovation, and a steadfast commitment to excellence, has enabled us to surpass our objectives and achieve outstanding financial results. As we aspire to the future, our focus remains on generating sustainable value for our shareholders, enhancing our operational efficiency, and expanding our global footprint.”
Further enhancing its strategic market position, NMDC Group has secured several significant contracts in 2024, demonstrating strong performance and expansion both locally and globally. Key among these is the Abu Dhabi Mangrove Channel Widening Works project, undertaken for Jubail Island Investment Company and valued at USD 35.2 million. Additionally, earlier this year, the Abu Dhabi National Oil Company (ADNOC) commissioned NMDC Group for two major projects: the construction of Al Nouf Artificial Island and the Das Island reclamation project, with staggering values of USD 136.787 million and USD 56.907 million, respectively.
Saudi Maritime & Logistics Congress 2024 will be held at Dhahran Expo in Dammam
As the Kingdom of Saudi Arabia continues to sail towards its Vision 2030 ambition, it is not just charting a new course for itself but is also establishing benchmarks for innovation and development on the global stage.
Showcasing investment opportunities in the maritime and logistics sectors, this year’s Saudi Maritime & Logistics Congress will highlight how Saudi Arabia’s doors are now open even wider to the world, with investments pouring into sectors like renewable energy, maritime and logistics and other key industries.
According to Chris Morley, Group Director of Seatrade Maritime, organisers of the event: “2024 has already proved a phenomenal year of growth for the industry in Saudi. I can highlight several areas which indicate the scale of momentum within the industry which include:
The launch of Folk Maritime – offering feeder services and short sea shipping in the Middle East and supporting the Kingdom’s aspirations in the logistics sector; Mawani’s launch of the Ports Community System (PCS) – raising the efficiency of the operational performance of the Saudi port network; the new rail link connecting Al Jubail and Riyadh Dry Port; the announcement that Fincantieri has launched its new subsidiary – Fincantieri Arabia – to bringing its capabilities across cruise, defense and offshore and of course, the expansion of several law firms in the Kingdom.”
The two-day exhibition and conference will take place at Dhahran Expo, Dammam from 18-19th September 2024 and is held with Founding Strategic Partners, Bahri and Seatrade Maritime. With its main partners, The Saudi Ports Authority (Mawani) and the Transport General Authority (TGA), and strategic partners, Saudi Aramco and IMI, this year’s event is set to break previous attendance records, helped by the necessity to add an extra hall to the exhibition to feature local and international exhibitors.
Carrying forward its resounding success in 2023 – which witnessed a remarkable 95% YoY attendance increase – the 2024 edition of the Saudi Maritime & Logistics Congress will convene industry leaders, policymakers, and stakeholders, serving as a pivotal platform for dialogue, knowledge exchange, and collaboration, shaping the future of maritime and logistics in the region and beyond.
Strategic importance
In line with its economic diversification efforts, the Kingdom
has been taking massive strides. One of these significant steps has been the launch of the National Transport and Logistics Strategy in 2021, aiming to position the Kingdom as a global logistics hub connecting three continents, and improve all transport services in support of Saudi Vision 2030. As a result, the nation handled over 10.43 million containers at its ports in 2022, helping it jump eight spots to claim the 16th position in the international ranking for container handling quantities. These efforts will continue as the country aims to increase the capacity of its ports to reach more than 40 million standard containers annually by 2030.
As the Kingdom’s most influential gathering of professionals from the maritime and logistics industry, the much-awaited exhibition and conference will play a significant role in making this vision a reality.
Speaking on this, Chris Morley, Group Director of Seatrade Maritime said: “The transport and logistics sectors are undoubtedly significant drivers of the Kingdom’s economy. The Saudi Maritime & Logistics Congress brings these vital sectors together at an unrivalled scale creating maximum value for attendees, exhibitors and the Kingdom alike.”
“This event has seen remarkable growth,” added Morley. “And, this year, we can expect to see over 10,000 attendees from across 70+ countries; a record 200+ exhibitors and a conference programme that brings together nearly 70 international speakers. Our ultimate aim is to facilitate fruitful cooperation between the public and private sector entities that catalyses growth for our industry.”
The company announced previously that it will establish a direct operational presence in Saudi Arabia
Federal Express Corporation (FedEx), the world’s largest express transportation company, has appointed Abdulrahman Al-Mubarak as its new Managing Director Operations of Saudi Arabia. Based in Riyadh, Abdulrahman holds a regional role in the Middle East and is responsible for the company’s strategic direction and operations for Saudi Arabia, Egypt, and Jordan.
Abdulrahman joins FedEx with over 15 years of experience in regulatory compliance, business development, strategic planning, and operational excellence across the Kingdom’s aviation and logistics industry, in both the private and public sectors. He has previously played a vital role in establishing cargo villages across Saudi airports, attracting large-scale inward investments, and founding one of Saudi’s logistics and supply chain companies.
“The Middle East’s growing prominence as a global logistics hub indicates the presence of significant trade and expansion opportunities for businesses to capitalize on. With his extensive experience in the logistics industry, Abdulrahman will play an integral role in unlocking these opportunities for our customers,” said Taarek Hinedi, vice president of FedEx Middle East and Africa Operations. “As Managing Director, Abdulrahman
will lead strategy and planning for our constantly evolving operations in key markets and help customers accelerate their growth through enhanced access to global markets.”
“It is an honor to be part of the FedEx family and to work with such an incredible team. As we look to the future, I am focused on fostering stronger collaborations with authorities, enhancing our services and connectivity, and enabling local businesses to harness the full potential of global trade,” said Abdulrahman AlMubarak, managing director of FedEx Operations.
The Middle East will contribute significantly to the growth of global trade from USD 21 trillion in 2023 to over USD 32 trillion by 2030, according to Standard Chartered’s Future of Trade report. FedEx has been facilitating trade in Saudi Arabia since 1994 by providing its international solutions through local service providers. In 2021, FedEx announced its transition to a direct presence in Saudi Arabia, reinforcing the company’s commitment to meet the country’s growing international shipping demands, in line with the Kingdom’s Vision 2030 goals to diversify its economy.
United Motors & Heavy Equipment will provide a fleet of state-of-the-art MAN trucks
United Motors & Heavy Equipment (UMHE) and Emirates Flight Catering (EKFC), a leader in the aviation catering industry, are pleased to announce the official signing of a deal focused on enhancing operational efficiency within the demanding aviation sector.
Mahmood Ameen, CEO of Emirates Flight Catering, and Khalifa Al Ketbi, Managing Director of United Motors & Heavy Equipment, formally signed the deal.
Under the terms of the partnership, UMHE will provide EKFC with a fleet of cutting-edge MAN trucks, renowned for their reliability, advanced technology, and robust performance. These vehicles are expected to bolster EKFC’s operational efficiency by expediting deliveries and ensuring the seamless flow of goods and services critical to maintaining EKFC’s industry-leading service.
“We are thrilled to partner with Emirates Flight Catering, a leader in the aviation catering industry.”
stated Khalifa Al Ketbi of UMHE. “This collaboration not only reflects our commitment to providing topquality transportation and logistics solutions but also our dedication to supporting the operational excellence of our partners.”
Mahmood Ameen of Emirates Flight Catering noted: “As we continue to enhance our logistics and operational capabilities, the addition of these new MAN trucks from UMHE represents a significant investment in logistics efficiency for Emirates Flight Catering. This acquisition ensures that we can consistently deliver the highest standards of service to our clients by investing in the latest equipment from a leading manufacturer like MAN.”
Positioning
By leveraging the capabilities of the new MAN truck fleet, EKFC is poised to unlock new levels of efficiency. This will further solidify its reputation for exceptional service while meeting the ever-growing demands of its global clientele with even greater precision and speed. This positions both UMHE and EKFC to drive innovation and excellence within their respective industries.
Meeting e-commerce demands with technology and sustainability
The air cargo supply chain plays a critical role in global trade, enabling the swift transportation of goods worldwide. The rise of e-commerce platforms has significantly boosted the demand for air services to cater to product needs. More people are now shopping online, requiring faster and more efficient delivery methods. As a result, air cargo services are increasingly vital in meeting these growing consumer demands.
In addition to consumer behaviour, the establishment of trade agreements and free trade zones, particularly in the Asia-Pacific region, has played a crucial role in promoting international trade and investment. These agreements are designed to make trading across borders easier and more efficient. They work through liberalising trade policies, which means reducing tariffs and other barriers that make international trade expensive or complicated. Simplifying customs procedures ensures that goods can move more quickly and with fewer bureaucratic hurdles.
The role of air services in this context is crucial. Air cargo is essential for transporting goods swiftly and reliably across borders, especially for time-sensitive products. This capability is crucial in the Asia-Pacific region, where countries are working together more
closely than ever before. By facilitating the smooth movement of goods, air services help drive economic growth, supporting businesses in reaching new markets and consumers in accessing a broader range of products. According to a report by Global Market Insights, the air cargo market is projected to reach USD 300 billion by 2032.
As we look ahead, several trends and technological innovations are expected to reshape air cargo logistics. These changes aim to improve efficiency, sustainability, and resilience in a highly connected global economy.
Various industries have demonstrated the substantial benefits of digitalisation, and even within the
aviation industry, the passenger side has seen significant advancements with technologies like mobile check-in, e-gates, and facial recognition.
Digital transformation in air cargo can revolutionise the industry by enhancing efficiency, reliability, and transparency. For instance, automated tracking systems can provide real-time updates on shipments, reducing delays and improving customer satisfaction. Implementing advanced data analytics can optimise route planning and fuel usage, leading to cost savings and a smaller environmental footprint. Moreover, digitalisation enables better integration with e-commerce platforms, allowing air cargo companies to respond swiftly to fluctuating demand and deliver goods faster. This responsiveness is a significant competitive advantage, especially as the e-commerce market continues to grow.
Companies specialising in AI and automation solutions for supply chain management, particularly in the air cargo sector, are being prepared for significant growth. This growth is fueled by the industry’s increasing reliance on advanced technologies to streamline operations, enhance reliability, and meet the rising demand for swift and efficient global cargo transportation.
Products designed to defend against cyber-attacks are expected to be adopted as organisations prioritise securing their supply chains against digital threats. This will further drive innovation and investment in cybersecurity solutions.
Air cargo supply chain plays a crucial role in connecting global supply chains, facilitating the rapid movement of goods across continents. However, this indispensable service also carries a significant environmental burden due to its substantial contribution to emissions. The emissions generated by this sector contribute significantly to global carbon footprints, posing challenges to sustainability efforts and climate change mitigation strategies.
Efforts to balance the efficiency and speed of air cargo with environmental concerns are increasingly important as industries seek ways to minimise their carbon footprint and adopt more sustainable practices in logistics and transportation. Innovations such as sustainable aviation fuels (SAFs) are being explored to make air cargo more eco-friendly. Additionally, companies are investing in carbon offset programmes and adopting green logistics practices to mitigate their environmental impact.
As automation, technological advancements, and sustainable practices are increasingly shaping the air cargo industry, the skill sets demanded by its workforce are evolving. Future jobs in this sector will increasingly require expertise in technology, data analysis, and advanced logistics management.
Educational institutions, along with government and industry partners, can organise training programmes to prepare employees with essential technological skills and strategic knowledge needed in today’s digital air cargo landscape. This proactive effort not only enhances companies’ competitiveness but also supports sustainable growth within the industry, especially when it aligns with technological advancements and environmental considerations. This can better equip the future workforce to navigate future challenges and opportunities in the air cargo supply chain industry effectively.
Mosbeh Senior Vice President, Middle East and Africa, JAGGAER
What supply chain lessons have companies learned from recent disruptions in the Red Sea, Baltimore and unprecedented weather in the UAE?
In recent months, businesses have grappled with a series of supply chain disruptions that have captured global headlines. Within our region, disruptions to commercial shipping routes, particularly through the Red Sea’s Bab el Mandeb strait—aptly named “Gate of Tears” in Arabic—have had a significant impact, underscoring the Red Sea’s crucial role in global trade. In April, unprecedented weather conditions and record rainfall in the UAE created numerous supply challenges.
Meanwhile, on the global stage, the collapse of the Francis Scott Key Bridge in Baltimore and the ongoing war in Ukraine have caused logistical issues that are reverberating worldwide, highlighting the interconnectedness of global supply chains.
The scenario in the Red Sea has seen major shipping companies opting to reroute goods via alternative, safer paths, which can add up to 3,500 nautical miles to the journey. This, in turn, is leading to significant price hikes and long delivery delays for a wide range of consumer goods. For instance, the spot rate at the end of May to send a 40foot (12 meter) container from China to Northern Europe was USD 4,615, almost 3.5 times higher than on May 1, according to pricing platform Xeneta, illustrating the immediate and substantial impact of the disruptions. This is due to rising costs including increased energy expenditures, higher insurance rates, and increased fuel costs due to longer routes. Furthermore, there are the associated environmental impacts.
Closer to home, the floods witnessed in the UAE in April had knock-on effects for many businesses. The latest S&P Global UAE Purchasing Managers’ Index remained at 55.3 in May, the same as April’s low. Perhaps more interestingly, slow sales were reported, with one of the attributing factors being the poor weather conditions, which resulted in capacity constraints and backlogs of work increasing at the fastest rate since 2009.
In the US, the collapse of the Francis Scott Key Bridge in Baltimore raised questions about the impact its absence would have on regional and global supply chains. Despite being relatively unfelt in the Middle East, the ramifications for the local city were far-reaching. Furthermore, despite the port not being the largest on the East Coast, it is closer to the Midwest region, which is known for its vehicle production. The ripple effects on the industry could last for months.
These scenarios, which have all happened in the last three months or are in some instances ongoing, underscore the
critical need for businesses to enhance their adaptability and equip themselves with tools that foster ongoing resilience. As compound events, previously considered rare, now regularly pose challenges to business operations, it is of the utmost importance to be strategically prepared. This preparation is not just a necessity but a strategic advantage that can ensure uninterrupted business continuity.
While the disruptions will undoubtedly affect purchasing decisions, it is vital to build predictability into what can be controlled. Technology can assist in developing that predictability and control.
We all know the ripple effects of the pandemic on global supply chains. A similar, though less severe, disruption is now unfolding due to the ongoing threats in the Red Sea, which is poised to continue affecting the global economy for some time to come. So, isn’t it time to move away from outdated, closed-loop systems and reams of paper-based record-keeping?There are clear lessons from the COVID era still to be learnt, and the flare-up in the Red Sea is a reminder that there’s still work to be done.
Evidence suggests that some companies have heeded the difficult lessons of the last four years and are generally better prepared to respond to the disruptions witnessed in the Red Sea. However, others are still facing tough choices and risks of further disruption.
Shipping around Africa elongates shipping routes and delivery times and increases fuel costs. More expensive modes of transportation, such as air cargo, have the potential to raise financial and operational pressure on organisations and further burden their supply chains.
Companies that have invested in their ability to identify and secure alternative sources and transportation capacity quickly are better positioned to navigate this constantly developing situation and future disruptions. The Red Sea has quickly become the litmus test for organisations’ agility and supply chain resilience.
It is vital to incorporate solutions for digital supply chain management that encompass a range of functionalities to optimise various aspects of the supply chain process.
Resiliency and greater preparedness are crucial to surviving the seemingly ongoing global supply chain issues. A straightforward solution is to improve supply chain planning and efficiency by standardising and automating processes.
A digital solution providing the data, insight and collaborative tools to adapt to the world around us is the game-changer and ultimately allows us to take back control in these unpredictable times.
In global initiatives to combat climate change, increased investment in public transportation— particularly rail—is widely touted as a sustainable pathway towards emission reduction and climate mitigation. According to a recent UN report, shifting to trains and buses may reduce greenhouse gas (GHG) emissions by two-thirds per rider, per kilometer. At the same time, expanding public transport infrastructure service coverage and capacity offers communities an array of economic and social benefits, including wider
Julien Moutte Chief Technology Officer at Bentley
access to employment and education, lower rates of traffic fatalities, and better local air quality than in automobile-dense areas. In short, the shift back to rail— the two-centuries’ old solution that predates personal cars by 100 years—should seem like an obvious step. Why wouldn’t everyone, as they say, just get on board?
Yet, over the past quarter century, Europe has been doing the opposite. Investment in motorways has gone up by 60%, while investment in rail networks
has declined by 6.5%, resulting in the dismantling of local and regional rail networks and the closure of thousands of stations across the continent.
While this trend is starting to reverse, rail investment is still hampered by problems, such as cost inefficiency, competing national interests, and fragmented networks—to say nothing of the complexity of repairs and new construction on systems that have suffered poor maintenance and insufficient development over the past decades.
How can railway network owners get things back on track? Leveraging new digital infrastructure capabilities, particularly digital twins, may help to offer a way forward, allowing optimization of rail infrastructure investments to build faster, cleaner, and more resilient transportation networks for both passenger and freight.
While many people are only aware of digital twins as visual representations of real-world assets and processes, data aggregation and interoperability are among their most useful capabilities. Infrastructure digital twins can connect data and processes from disparate applications or systems and merge them into one unified system that uses a standard format. Digital twins can get these data to “talk to each other” and analyze how different sources may impact one another.
By facilitating real-time data ingestion and processing (that is, incorporating data from disparate sources as it arrives), infrastructure digital twins can capture and connect Europe’s entire railway network to prioritize brownfield and greenfield infrastructure projects. This process can give stakeholders across the continent a single source of truth for millions of data points, offering the potential for efficient, effective, and collaborative workflows across all constituent rail networks and their respective information
technology, engineering technology, and operational technology (IT, ET, and OT) systems.
Maintenance and improvements across rail networks are ongoing challenges. By using infrastructure digital twins, owner-operators can apply artificial intelligence (AI) and machine learning (ML) algorithms to analyze real-time telemetry or imagery/sensor data and perform anomaly detection. AI can also analyze rail operational data and
provide alert notifications to assess and address network issues and failures. Infrastructure digital twins can also be leveraged in a predictive capacity. Using historical repair data, weather data, capacity information, utilization levels, passenger or freight flows, and geophysical data, AI and ML algorithms can suggest what repairs or updates are or will be needed, when, and how best to accomplish them.
Data and insights from infrastructure digital twin simulations could help rail operators analyze maintenance and improvement impacts–how a planned maintenance event would affect certain routes and services, what potential cost or resource constraints may be encountered, or what environmental effects may be incurred as a result. Built-in decision support systems can help stakeholders optimize planning for these updates, factoring in and reconciling disparate
information about cost, safety, environment, and system performance that might have been previously impossible to integrate into these decisions.
With the focus on mitigating climate change, models with embodied carbon capabilities—that is, those with a built-in function to help stakeholders calculate carbon emissions and cost for their project or asset—are more necessary than ever. The reason for this is obvious: GHG emission is a ship that we can’t right once it’s capsized. Infrastructure digital twins can facilitate carbon calculation throughout the lifecycle of an asset, whether it’s being designed, built, used, maintained, or decommissioned. Data from these models can influence stakeholders’ choices from the ground up, such as choosing less emissive materials in construction, such as stone over cement. They can also calculate both the
carbon cost of a proposed change or the cost of not making that proposed change, allowing stakeholders to evaluate an array of scenarios. Ultimately, the carbon capabilities of digital twins enable infrastructure decisions that optimize cost, efficiency, and climate mitigation.
Realistically, the pressure to invest in rail networks is not going to dissipate. Rather, the need to invest will become increasingly urgent, as climate conditions degrade and the targets that have been defined in the UN COPs become harder and harder to reach. Engineering firms and owners-operators will face a deluge of work to be done, much of it backlogged, to repair and improve existing lines, build out connection points between countries, reopen lines that had been decommissioned due to a past preference for highways, and operate and maintain all of these assets. The work will be time and labor intensive, not to mention costly.
Infrastructure digital twins and digital tools powered by AI will be necessary to help manage all this work, at every stage of project lifecycles, from design or redesign, to building and repairing, to utilizing these assets. Engineering
firms and other stakeholders can leverage digital twin capabilities to work collaboratively, optimize workflow and resources, predict and resolve problems, and ultimately close the gap between as-designed and as-built, yielding more resilient and sustainable rail assets.
The adverse impacts of climate change on our transportation systems—from dried-up rivers and canal beds, to destabilized roads as a result of historic flooding, to storm-damaged ports and coastal cities—require us to make drastic and immediate changes to the ways we move people and goods across Europe. In this respect, our economic and environmental goals are powerfully aligned, and more urgent than ever.
But technology is on our side. Emerging infrastructure digital twin capabilities can help modernize and transform rail networks that are badly in need of refurbishment and enable us to build different and better infrastructure in the future. State-of-the-art, sustainable infrastructure can help us to meet the complex needs of our increasingly globalized era and improve our quality of life to the greatest extent possible.
Trevor Stamp, General Manager - Contract Logistics at GAC Dubai, on navigating e-commerce logistics in the Middle East
The current e-commerce sector works on stringent delivery schedules and tight cost margins. So, from the customer’s perspective, there is no room for error. Rectifications are costly and most end up with loss of sales, reputation and brand loyalty.
This is all made more challenging by the ever-expanding presence of the e-commerce sector across the Middle East, which is expected to reach a value of USD 50 billion by 2025 driven by rising disposable incomes and a more tech-savvy customer base. Changing consumer behaviours and the impact of online shopping has resulted in more cargo moving via road, rail, air
Trevor Stamp General ManagerContract Logistics at GAC Dubai
and sea, with the Middle East at the centre, connecting East and West.
Meeting the demands of consumers who expect swift and seamless delivery of items is the main challenge for logistics providers in the Middle East. Understanding the criticality and true meaning of “urgency” when it comes to GAC’s customers is why we believe there is no room for error. Every second counts for businesses with such tight margins and that means ensuring that we have the facilities, capabilities and experience to support their needs, as well as the technology to enhance transparency and communication throughout the supply chain.
The main challenge for logistics providers like GAC is catering to the increased demand for efficient storage, transportation and distribution of goods to meet online consumer demands. It also means
developing tailored services that specifically cater to the e-commerce sector, such as last-mile delivery, reverse logistics and inventory management.
Fortunately, GAC has been actively involved in the Middle East’s logistics sector for more than 60 years so we have organically developed those capabilities, built those facilities, and gained the experience to become a well-established and household name in the region.
Consumer demands are also changing and this is one of the biggest challenges we face as a B2C channel. Gone are the days where someone eagerly awaited their specific package that they ordered days ahead. Customer expectations have evolved. Today, they expect express delivery services that enable them to change their mind, cancel orders, create new ones and customise them as needed. In order to live up to these
expectations, we are constantly improving the way we operate as we are often racing against time.
Being adaptable to customer and market trends is vital. We cannot predict the next trend but we can prepare ourselves. This means building flexibility into our service offerings so that we can tailor them to meet the requirements of our customers and their cargo. All of this enhances efficiency across the supply chain and ensures we are ready to service evolving strategies.
Some key ways that GAC’s teams across the Middle East have adapted to support customers include expanding their service portfolio to include customised solutions and value-added services, integrating technology to provide real-time tracking and reporting, and offering flexible and scalable solutions that can adapt to fluctuating demand,
seasonal trends, short or long-term requirements and evolving market conditions.
The UAE is a regional powerhouse and almost 100% of its population has internet and mobile phone access. Its e-commerce market size is forecasted to reach USD 17 billion by 2025. By that time, the Dubai Chamber of Commerce and Industry predicts USD 8 billion in e-commerce sales. GAC has the reach and resources to serve that market, both in the UAE and across the Middle East, with facilities in Abu Dhabi, Bahrain, Dubai, Kuwait, Oman, Qatar and Saudi Arabia. We look at the region as a whole, and the logistics landscape is very promising.
Using technology to enhance the transparency and efficiency of the e-commerce market is now a musthave for logistics providers. GAC’s inventory management tools are fully integrated with customers, provide clear lines of communication between systems without the need for human interference. These tools provide visibility of each order during each stage, from receiving, allocation, picking, packing, handling to last-mile delivery. All of this is now done digitally to enhance visibility and offer datadriven insights to our customers.
Other technology, such as warehouse and transportation management systems, RFID sensors, data analytics
and automation, are all growing in importance to enable logistics providers to cater to the e-commerce market. All of these are areas of investment that GAC has been focusing on for years, which is why we remain the most reliable logistics provider in the Middle East and customers stay with us for a long time.
At GAC Dubai, we have implemented a unique initiative using technology to improve operational efficiency, reduce defects and enhance the quality of processes. Our Lean Six Sigma initiative is a data-driven methodology that reduces process variations and defects within our operations. We are now moving towards a 99.99966% defect-free performance as part of our drive to ensure GAC has operational excellence across our entire logistics offerings.
The Middle East will play a vital role in logistics going forward so it is important that the region and the players within it, including GAC, continue to improve operations and infrastructure, meet stringent regulations and cybersecurity requirements, and build trust with customers.
Consumer demands continue to evolve so it is difficult to predict what the next evolution of logistics and e-commerce in the Middle East region will be. For GAC, however, we are making sure we are prepared for any eventuality and be able to capitalise on opportunities that present themselves.
Dubai
Unreserved
AuctionSeptember 24 - 25
Bidding starts on September 18
Personal inspections: September 18 - 25
Address: Junction
9 - Gate 8 - Jebel Ali
Free zone - DubaiUnited Arab Emirates Register to bid online
In an exclusive interview with Mr. Naveen Joseph, Co-Founder of iMile, and Mr. Amar Rizvi, Chief Strategy Officer of iMile, we delve into the company’s innovative strides in sustainability
Our conversation starts with Mr. Naveen Joseph:
What exciting changes is iMile making with its new sustainable packaging initiative? iMile’s transition to sustainable packaging marks a pivotal step in our commitment to environmental stewardship. We are adopting fully recyclable and biodegradable materials, sourced with environmental considerations in mind. This initiative is designed to significantly reduce our operational waste and lower our overall carbon footprint. By implementing these practices, iMile not only aligns with global sustainability standards but also leads by example within the GCC logistics sector, demonstrating that operational efficiency and environmental responsibility can coexist harmoniously.
Your recent initiative to distribute plants with packages on World Environment Day was quite inventive. What inspired this approach, and what impact has it had?
Our global initiative to distribute plants with packages on World Environment Day was inspired by the belief that small, collective actions can lead to significant environmental impact. This initiative was implemented in every country where we operate,
reflecting our commitment to sustainability on a worldwide scale. By including a plant with each delivery, we provided customers with a tangible symbol of our dedication to environmental preservation and encouraged them to participate in green practices. This approach fostered a personal connection to environmental stewardship.
The initiative received positive feedback globally, enhancing customer engagement and awareness. It demonstrated that corporate actions could influence societal behaviors positively, reinforcing iMile’s role as a leader in sustainable practices.
Can you share other sustainability initiatives that the company has undertaken?
iMile has implemented several key sustainability initiatives beyond our shift to eco-friendly packaging. We are actively integrating electric and hybrid vehicles into our fleet to reduce emissions and enhance fuel efficiency in relevant regions.
Additionally, we have optimized delivery routes to minimize fuel consumption and introduced comprehensive recycling programs across our facilities. These measures reflect our commitment to advancing sustainability in the logistics sector and demonstrate our ongoing efforts to reduce our environmental impact while setting a standard for industry practices in the GCC region.
Looking ahead, iMile is dedicated to continuously exploring and implementing new sustainability initiatives. We are planning to launch more innovative programs aimed at further enhancing our environmental stewardship, details of which will be shared in the future.
Then, we turn to Mr. Amar Rizvi:
How do you envision iMile’s sustainability efforts evolving in the future?
Looking ahead, iMile is poised to further enhance its sustainability initiatives through the integration of advanced green technologies and practices. We plan to expand our fleet of zero-emission vehicles and increase the use of renewable energy across our operations. Our long-term objectives include significantly reducing our carbon footprint and influencing industry standards towards greater sustainability. By driving these advancements, we aim to contribute to a
greener logistics ecosystem in the GCC & beyond and support environmental goals, establishing a legacy of sustainable progress and industry leadership.
Why is sustainability crucial in last-mile delivery, and what impact does it have on the overall logistics industry in the GCC?
Sustainability in last-mile delivery is paramount due to its profound environmental impact, particularly in the rapidly urbanizing GCC region. As cities expand, the resulting traffic congestion and pollution present significant challenges.
Implementing sustainable practices, such as deploying electric delivery vehicles and optimizing delivery routes, directly reduces carbon emissions and air pollution. This commitment aligns with the GCC’s regional sustainability goals. Additionally, by embracing green logistics, companies can achieve operational efficiencies, lower costs, and enhance PLANTING
their corporate reputation. Ultimately, these practices set a new industry standard, driving broader adoption of eco-friendly solutions and supporting the region’s transition towards a sustainable future.
Any final thoughts you would like to share?
iMile remains steadfast in its commitment to sustainability and ethical business practices. Our ongoing initiatives underscore our dedication to environmental stewardship and operational excellence. As we continue to innovate and lead within the logistics sector, we encourage collaboration with industry partners to advance shared sustainability goals. Together, we can drive meaningful change, benefiting both the GCC region and the global community through our collective efforts towards a more sustainable future.
Origin & Destination Services in 150+ Countries
Surface Transportation in 06 Continents
Warehousing and Quality Control
The Kingdom of Saudi Arabia is swiftly emerging as a cutting-edge logistics hub, gaining prominence as a key global trade player. This transformation is propelled by Saudi Vision 2030, alongside the National Industrial Development and Logistics Program (NIDLP) playing a central role.
The aim is to diversify the economy away from oil dependence and promote sustainable development.
In addition, it plans to elevate and refine its logistics infrastructure and establish Saudi Arabia as a leading global logistics hub,
Words by: Aya Zhang
featuring significant investments in ports, airports, and road networks. For example, innovations like drone deliveries in Riyadh and AIdriven supply chains in Jeddah underscore the Kingdom’s unwavering commitment to advancing logistics and digital infrastructure in a sustainable manner.
As Saudi Arabia enhances its regional influence, it is also making significant strides on the global stage. The Kingdom’s ambitious infrastructure projects, strategic investments, and focus on sustainability are not only reshaping its role in the global supply chain but also impressively expanding its global influence. The successful bids for Expo 2030 and the FIFA
World Cup 2034 are poised to create substantial business opportunities and further drive trade and commerce, solidifying the Kingdom’s position on the global map.
Saudi Arabia’s journey from a regional crossroads to a global logistics powerhouse is nothing short of extraordinary. The Kingdom is weaving a tapestry of innovation and growth, stitching together advanced technologies, strategic infrastructure, and sustainable practices. The vibrant pulse of progress is evident in every corner. As the Kingdom continues to innovate and expand, it is setting the stage for a new era, one where it stands as a beacon of excellence and a trailblazer in the realm of logistics.
LNME soars into the future with Riyadh Air’s visionary plans
In March 2023, His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister and Chairman of the Public Investment Fund (PIF), announced the creation of Riyadh Air as a PIF-backed company. Shortly after its launch, Riyadh Air made an unprecedented order for wide-body 787-9 Dreamliners, underscoring the airline’s commitment to swiftly establishing a world-class network. Today, we sit down with Vincent Coste, Chief Commercial Officer of Riyadh Air, to discuss the company’s extraordinary achievements since its inception and to offer a glimpse into its exciting future:
Can you share the thrilling growth trajectory of Riyadh Air?
We have been growing ever since we began our story, back in March 2023. We have ambitious plans to establish Saudi Arabia as a global aviation hub and fly to over 100 destinations by 2030, so we needed a smart growth strategy.
Very quickly, we established important
projects and partnerships, including our two livery announcements, which dominated the headlines when they were revealed in Paris and Dubai. We reached a number of big milestones in the first year, through partnership agreements with the likes of Microsoft, Adobe, IBM, Atletico Madrid and Boeing, and we are now seeing a continuation of that success.
In the last few months alone, we have signed some key strategic partnerships with carriers such as Delta and Singapore Airlines, unveiled our fashion line, and moved into our new state-of-the-art headquarters in Riyadh. As we move towards our maiden flight next year, you can expect more exciting announcements about our growth.
What are your expansion plans?
Saudi Arabia is rapidly growing in popularity as a tourist destination and it demands a national carrier like Riyadh Air to meet the needs of travellers coming to and from the Kingdom, so we have big plans for
expansion once we take to the skies in mid-2025.
We have begun putting together our worldclass crew, we launched our stunning Riyadh Air fashion line last month in Paris, and we are excited to see our frontline team members in those outfits.
Also last month we signed an MoU with Delta Air Lines which will serve as a strategic partnership allowing both airlines to expand our networks. It is also important to remember that the Saudi Aviation strategy sets out to serve 330 million air passengers by 2030, increasing air connectivity to 250 destinations and doubling air cargo capacity to 4.5 million tons. So, things have been moving quickly.
We have seen growth across the Middle East with a number of airlines in the region announcing bigger passenger numbers than previous years, which is really exciting for Riyadh Air because we can see the thirst for air travel across the GCC and we cannot wait to be a part of the equation. We know the market extremely well and we are looking forward to elevating the experience for our guests to levels never seen before in the aviation industry.
In what ways are technology and innovation incorporated into Riyadh Air?
Riyadh Air is a digitally native airline which means technology is at the heart of everything we do. We weave the latest technologies into every step of the journey to ensure our services run smoothly and offer guests a seamless
travel experience. We are working with the best in the world, from Microsoft and Adobe, to Accenture and Oracle, to ensure the guest experience is elevated thanks to technology, from the moment a booking is made to the moment our guest lands.
Earlier this year, we also announced an agreement with Cellpoint Digital, the leading provider of payment solutions in the airline industry to equip us with innovative payment technology to process local and crossborder transactions efficiently. Additionally, in April, we announced a partnership with Artefact to bring AI solutions to our guests through cutting edge cloud and AI technologies, ensuring our guests receive hyper-personalised experiences. Therefore, there is no doubt Riyadh Air will be at the forefront of new technology enabling digital innovation at every guest touchpoint.
In terms of sustainability, how is the airline mitigating environmental effects? Riyadh Air will be the most forward-thinking carrier in the skies by embracing the latest innovations in technology and adopting the best sustainability.
To be the leader in aviation sustainability means we will be embracing the best practices, and we look forward to sharing more in due course.
Following our inauguration, our substantial order of Boeing 787-9 Dreamliners represents a major leap in sustainability, cutting CO2 emissions by 20% to 30% and reducing noise by 60%.
What does the future hold for Riyadh Air in the next three years?
We are first looking forward to a successful maiden flight
“Our aim is to be flying to over 100 destinations by 2030, which is a hugely ambitious goal for a start-up airline but it is one that we are fully confident of reaching.
”Vincent Coste, Chief Commercial Officer of Riyadh Air
in 2025, that will be a big moment in our history because we have been working solidly behind the scenes to ensure we are on track. Then you will see more flights of course, with more destinations being announced across our global network. By 2030 we will be flying to over 100 destinations so over the next few years you can expect to see the iconic Riyadh Air liveries in the skies in a whole host of countries. Ultimately, we are playing a huge part in the Kingdom’s Vision 2030
plans to grow and diversify the economy in KSA, with travel and tourism being a key factor in that growth. So that is what we are expecting to see with Riyadh Air, a lot of growth as we bring the warm, authentic Saudi Arabian hospitality to the world. We are also creating over 200,000 jobs, directly and indirectly, so that is something we are excited to build, while also contributing to KSA’s non-oil GDP growth by USD 20 billion.
Faisal Albedah Managing Director & Chief Executive Officer, SAL Saudi Logistics Services
Faisal Albedah, Managing Director & Chief Executive Officer, SAL Saudi Logistics Services sheds light on how Saudi Vision 2030 is shaping the company’s strategic initiatives
The supply chain industry in Saudi Arabia has undergone significant transformation over the past few years, driven by a combination of governmental initiatives, technological advancements, and an increasing private sector participation.
The Saudi government’s Vision 2030 has been a major catalyst for change, aiming to diversify the economy and reduce dependence on oil revenues. As part of this vision, the National Industrial Development and Logistics
Program (NIDLP) has been launched to enhance the logistics infrastructure and position Saudi Arabia as a global logistics hub. This includes significant investments in transportation infrastructure, such as the expansion of ports, airports, and road networks.
The adoption of advanced technologies has been pivotal in the evolution of the supply chain industry. From the use of drones for delivery services, to the implementation of AI and IoT for better tracking and management of goods, the industry is becoming increasingly efficient and integrated.
SAL has signed an MOU with SPACE AGE to initiate negotiations for establishing a partnership focused on utilizing drone technology for the transportation and delivery of shipments. This collaboration will involve building the necessary technical solutions and infrastructure, as well as transferring and localizing drone industries to the Kingdom.
The regulatory environment has also evolved to support the growth of the supply chain industry. Improved customs procedures, the introduction of electronic documentation, and enhanced compliance standards have facilitated smoother and faster logistics operations.
Additionally, SAL has entered into agreements with investments exceeding SAR 1 billion with key regional airports, including King Fahd International Airport in Dammam and Prince Mohammed bin Abdulaziz International Airport in Medina, to develop and upgrade cargo facilities, thereby increasing handling capacity and improving service quality. By working closely with regional logistics providers, SAL ensures seamless integration across different transportation modes, enhancing its ability to offer comprehensive logistics solutions, including its road feeder services.
The company’s active participation in regional trade
Saudi Arabia’s strategic location as a gateway connecting three continents provides significant opportunities for regional connectivity. SAL leverages this advantage through numerous key regional partnerships and initiatives. The company has formed strategic alliances with leading regional airlines, including its most recent partnership with Air China, to enhance air cargo operations capacity and connectivity, enabling it to provide efficient cargo services across the Middle East and beyond.
exhibitions, such as the Future Aviation Forum and the Annual Supply Chain Conference, allows it to forge new partnerships and explore innovative logistics solutions, providing platforms for collaboration with other key players in the logistics and transportation sectors.
Furthermore, as a member of several regional logistics alliances and industry groups, SAL facilitates the exchange of best practices, knowledge sharing, and collaborative problem-solving, ultimately enhancing its logistical capabilities across the Middle East. By
leveraging these regional partnerships, SAL ensures efficient and reliable services, positioning itself as a key player in the region’s logistics landscape and the National Logistics Champion.
When it comes to sustainability, SAL is dedicated to reducing its environmental impact through a variety of proactive initiatives. It has integrated electric forklifts into its operations to reduce emissions and improve energy efficiency. Its warehouses are designed and operated to be energy-efficient, equipped with advanced climate control and lighting systems to minimize energy consumption.
Additionally, as a sponsor of the Roshan Saudi Football League, SAL, in collaboration with the Oil Sustainability Program (OSP), introduced the world’s first Fan Zone made of plastic palettes. This Fan Zone, with a capacity of over 250 seats, was created for football fans to watch the matches of the Roshan Saudi Professional League. This innovative initiative showcases SAL’s commitment to sustainability by repurposing plastic waste into functional structures.
Moreover, the company has recently signed an MOU with Tarshid Solutions Company to enhance energy efficiency across its station’s facilities. This partnership aims to implement state-of-the-art energy-saving technologies and practices, ensuring its operations are as eco-friendly as possible. By collaborating with Tarshid, SAL is taking significant steps toward reducing its carbon footprint and promoting sustainable energy use within its infrastructure.
SAL’s roadmap for the future is closely aligned with Saudi Arabia’s Vision 2030, focusing on transforming the Kingdom into a global logistics hub and enhancing its position in the global supply chain. The company’s strategic priorities include infrastructure development, technology and innovation, sustainability initiatives, talent development, regional and global partnerships, customer-centric solutions, and working closely with government entities such as the Ministry of Transport and Logistic Services and GACA to ensure regulatory compliance and alignment with national logistics policies. SAL’s strategic initiatives support the National Industrial Development and Logistics Program (NIDLP) and other key Vision 2030 projects.
Marwan Niazi,
Marwan Niazi Vice President Commercial of Saudia Cargo
Vice President Commercial
of
Saudia Cargo,
highlights the company’s latest ventures in 2024
Saudia Cargo has achieved several significant milestones to date for this year. The company maintained a high On-Time Performance (OTP) of 93% for freighter operations. Export volume also saw a notable 22% increase compared to the previous year.
Furthermore, Saudia Cargo has shown impressive growth and operational capabilities. In the first quarter of 2024, we experienced a 20% increase in cargo volume compared to the same period in the previous year. The fleet consists of eight dedicated freighter aircraft, including Boeing 747-400ERFs and Boeing 777Fs, complemented by the cargo capacity of over 144 passenger aircraft.
The e-commerce sector experienced a 36% growth in volume, while the fashion sector saw an impressive 73% increase. We continue to expand our network with the announcement of new routes, including flights’ launch to Shenzhen, a critical market within the global supply chain network, and Zhengzhou, the capital of east-central China. These new routes forge more connections between the Kingdom and key Chinese cities, enhancing logistical efficiency and opening new doors for Saudi and Chinese businesses to reach international markets.
Saudia Cargo operates a comprehensive export service using a fleet of modern Boeing freighters. The company serves over 100 airport destinations and 250 customer locations, facilitating the global export of Saudi products. Saudia Cargo plays a crucial role in supporting the Kingdom’s Vision 2030 by boosting non-oil exports and enabling Saudi businesses to compete internationally.
Key export destinations include China, South Korea, and India, with a strong emphasis on perishable products. We focus on bolstering the agricultural sector by supporting Saudi agricultural producers and manufacturers, ensuring their valuable cargo arrives in perfect condition, and showcasing the strength of our logistical capabilities.
We are proud to support Saudi businesses in exporting their products worldwide, including agricultural goods and seafood. We recently achieved a milestone with the successful shipment of the first batch of Saudi shrimp to China. This
landmark collaboration with the Jazan Development and Investment Company (JAZADCO) strengthens ties between Saudi Arabia and China.
This accomplishment follows three months of transporting over 30 tons of shipments for the Dava agriculture company. This includes the first shipment of Saudi-grown agricultural products cultivated using advanced hydroponic farming techniques destined for Europe.
By connecting the heart of Saudi Arabia to the world, we ensure a smooth journey for these high-quality products, allowing a global audience to experience the finest the Kingdom has to offer.
in Saudi Arabia to have a highly robust technological infrastructure. We have moved beyond the transition from manual to electronic services and are now focusing on improving electronic service delivery.
Our significant progress in e-AWB adoption, with a surge to 88% in 2024, demonstrates our digital prowess and commitment to cutting-edge technologies. Moreover, harnessing the power of data analytics, automation and artificial intelligence is intrinsic to our strategy moving forward, ensuring we remain at the forefront of technological advancements in the air cargo industry. We take pride in our technological services’ ability to provide high-quality services in a short time due to the
Saudia Cargo’s dedication to technological innovation is at the forefront of our operations. We recognize that embracing cutting-edge technology is paramount in our quest to continually enhance services and customer experiences. We are fortunate
infrastructure and data available, benefiting Saudi Arabia and its people.
Partnerships with major e-commerce players like Cainiao and Alibaba’s logistics arm, along with the integration of services with global logistics hubs
such as the Cainiao Liege eHub are testament to Saudia Cargo’s commitment to leveraging technology for operational excellence.
These collaborations allow us to meet the increasing demands and ensure reliable and efficient services. Additionally, implementing automated processes and predictive analytics helps improve efficiency and reduce operational costs.
Saudia Cargo adapts to changing market trends and demands by continuously expanding its network, forming strategic partnerships, and launching new services that cater to emerging markets.
We are undergoing a strategic fleet expansion to meet both current and future demands, with additional aircraft introduced this year and three more to follow soon. We boosted volume by 32% in Q1 and aim to double fleet capacity in the next 18 months.
A recent example of a groundbreaking strategic partnership is the MoU signed with Red Sea Global. This partnership will introduce an independent mechanism for airport cargo services, improving operational efficiency and connectivity between the Red Sea Airport and over 800 global destinations. The agreement underscores Saudia Cargo’s commitment to enhancing logistics and diversifying the economy in Saudi Arabia. Furthermore, it facilitates the Kingdom’s ambitious giga development projects in line with Saudi Vision 2030, aligns with Saudia Cargo’s new brand promise, ‘Life Uninterrupted,’ and emphasizes the company’s human-first approach to decision-making and strategy.
Our focus on reducing CO2 emissions by, for example, decreasing the volume of trucking has
been successful. Our initiatives have improved efficiency and profitability on a large scale and have positively impacted the daily lives of our employees, empowering the business to foster and develop partnerships.
Our initiatives include focusing on responsible
consumption by diverting plastic and paper airway bills and reducing waste. We are embracing technology and investing in digitization to reduce fuel consumption and CO2 emissions.
We have set certain requirements for our suppliers globally to demonstrate our commitment to the European market
and its environmental goals. Trucking companies working with Saudi Cargo in this market must use electric vehicles, as required in the EU. These efforts are also driving forward our goal of reaching netzero emissions.
Overall, investing in the latest technology for cargo handling, tracking, and other logistics functions, along with forming strategic partnerships with other logistics providers and investing in local talent for training and development are at the core of our sustainability strategy.
What’s on the Horizon?
The air cargo industry is poised for significant growth, driven by the rising demand for e-commerce and global trade. Under the Vision 2030 initiative, the Kingdom of Saudi Arabia is expected to see a substantial increase in non-oil exports and a growing contribution from the private sector to the GDP.
Saudia Cargo is also working to make its own impact and contribution in tandem to this. We aim to expand our operational reach and leverage our strategic location to strengthen Saudi Arabia’s position in the air cargo and logistics industry. This expansion will also create new opportunities for Saudis in a flourishing sector and enable them to receive advanced training and education that will empower their professional and personal capabilities.
We anticipate that Saudia Cargo’s continued expansion in trade relations with key partners like China will drive growth in air cargo volumes. The industry will also likely see further integration of advanced technologies to enhance efficiency and sustainability in logistics operations.
Initiatives like ‘Made in Saudi’ will continue to bolster the export sector, support local businesses in reaching international markets, and contribute to the Kingdom’s economic diversification goals. Saudia Cargo’s strategic focus on high-yield products and its robust cybersecurity measures further position the company to lead in an evolving global marketplace.
Rami Younes General Manager of Swisslog Middle East
Rami Younes,
General Manager of Swisslog Middle East,
delves into Saudi Arabia’s automation landscape and explores emerging opportunities in sustainability, innovation, and beyond
Warehouse automation in Saudi Arabia is undergoing rapid expansion, driven by the burgeoning e-commerce sector and substantial investments in digital infrastructure. The Middle East warehouse automation market is projected to reach USD 1.6 billion by 2025, underscoring the significant demand for advanced technologies and integrated supply chain solutions.
Swisslog plays a crucial role in this transformation by providing cutting-edge automation solutions tailored to the unique needs of the Saudi market. For instance, Swisslog has partnered with Almarai, Saudi Arabia’s leading dairy company, to automate its distribution logistics. This partnership resulted in a 25% increase in throughput, a 30% reduction in order fulfilment time, and significant improvements in inventory accuracy and operational efficiency, thereby enhancing overall customer satisfaction.
Saudi Vision 2030 aims to diversify the Kingdom’s economy, reduce its dependence on oil, and promote sustainable development across various sectors, including logistics and digital infrastructure. Warehouse automation aligns seamlessly with these goals by improving supply chain efficiency, reducing operational costs, and promoting sustainability.
Swisslog’s automation solutions contribute to these objectives by optimising logistics operations, enhancing inventory management, and supporting the transition to clean energy through energy-efficient technologies. These advancements are in line with Vision 2030’s emphasis on fostering innovation, attracting investments, and achieving sustainability targets.
The warehouse automation industry in Saudi Arabia faces some challenges, including a shortage of diverse storage requirements and harsh environmental conditions such as extreme heat and dust. However, these challenges also present significant opportunities for innovation and customisation.
Swisslog addresses these challenges with solutions that include predictive maintenance algorithms to detect potential issues before equipment failure, reducing downtime and
maintenance needs in harsh climates. Additionally, Swisslog’s systems are designed to be user-friendly and adaptable to various industry needs, allowing them to be operated by less skilled workers. The growing e-commerce sector and strategic investments in logistics infrastructure also offer considerable opportunities for expanding automation in the Kingdom.
Automation contributes to sustainability by improving energy efficiency, reducing waste, and optimising resource utilisation. In Saudi Arabia, where Vision 2030 emphasises clean energy and sustainability, automated systems help achieve these objectives by minimising manual handling, reducing errors, and enhancing operational efficiency. The use of electric machines and robotics, often powered by renewable energy sources, further supports the Kingdom’s sustainability goals.
Moreover, space optimisation through robotics is essential in urban areas with growing populations and increasing e-commerce activities, helping to reduce the overall environmental impact of logistics operations.
Swisslog’s automated systems are engineered to enhance energy efficiency and reduce carbon emissions, which is crucial for achieving sustainability goals. Key features include high bay warehouse pallet stacker cranes that harness regenerative power, energy-efficient robots consuming only 0.1 kW per hour, and systems that optimise storage space to reduce energy usage. These technologies contribute significantly to lowering the carbon footprint of logistics operations by minimising energy consumption and leveraging renewable energy sources.
Automation adoption is rapidly accelerating globally, and Saudi Arabia is no exception, witnessing swift regional uptake in recent years. Swisslog recognises this potential and focuses on providing adaptable solutions, employing advanced technologies such as autonomous mobile robots (AMRs), artificial intelligence (AI), and big data analytics.
These technologies optimise operations by automating tasks like material transport, leveraging AI for predictive maintenance and process optimisation, and utilising big data analytics for informed decision-making based on real-time insights. This approach improves efficiency, accuracy, and overall productivity in logistics and warehousing
processes, contributing to the advancement of Saudi businesses in the global market.
The future of automation in Saudi Arabia looks extremely promising, with continued investments in digital infrastructure and a focus on sustainability driving growth. The Kingdom’s logistics market is expected to generate an estimated revenue of USD 3,388.8 million in 2024, reflecting the significant potential for automation.
Key trends include the rise of “pop-up” or “dark” warehouses to meet the demand for faster deliveries, major investments in cold storage for the food, beverage, and pharmaceutical sectors, and the adoption of electrified automation solutions that consume minimal energy. These developments promise a future of eco-friendly logistics and robust economic growth for KSA’s non-oil sectors.
The Middle East, and Saudi Arabia in particular, represents a significant growth market for Swisslog, with the regional warehouse automation market projected to reach USD 1.885.8 million by 2026. Saudi Arabia’s strategic focus on logistics and automation, driven by Vision 2030, provides a dynamic environment for innovation and investment.
Swisslog’s proven track record and commitment to sustainability position it as a trusted partner for companies seeking to optimise their supply chain operations in this rapidly evolving market. By leveraging advanced technologies and data-driven solutions, Swisslog is well-equipped to support the Kingdom’s goals of economic diversification, sustainability, and global competitiveness.
How is J&T Express addressing the growing demand for parcel delivery in Saudi Arabia with its new service?
In recent years, with the continuous prosperity of the global digital economy, new business models such as e-commerce have accelerated the circulation of goods in society. This has led to unprecedented growth in the personal parcel delivery business in Saudi Arabia and the entire Middle East region.
In June 2024, J&T Express officially launched its J&T SPEED service in the Kingdom of Saudi Arabia. As a global integrated logistics service provider, the newly launched service aims to provide more efficient,
convenient, and reliable parcel delivery experiences for individual customers and businesses in Saudi Arabia, addressing the region’s increasing demand for parcel delivery services.
J&T SPEED offers convenient order placement channels. Users can easily place orders and send parcels through various methods, including the official app and website. Additionally, J&T SPEED leverages J&T Express’s robust logistics network and operational experience to provide users with extremely fast delivery services. Statistics show that J&T SPEED’s
average delivery time is only 58 hours. Delivery from Riyadh to Jeddah can be completed in as little as 20 hours, while intracity express delivery can be achieved within 14 hours.
Since its launch, J&T SPEED has achieved significant business growth. Its efficient and convenient services have attracted many individual customers, including students, housewives, and freelancers. Customers apply it to deliver documents, gifts, clothes, daily necessities, and more. Notably, 73% of the orders were placed through the app. In the first month after its launch, J&T SPEED’s order volume in major Saudi Arabian cities such as Riyadh and Jeddah increased by 30% compared to the testing period.
Saudi economy. With the continuous development and improvement of the business, J&T SPEED is expected to become one of the most competitive logistics service brands in the Middle East, contributing to the diversified development of the Saudi economy.
The launch of the new service not only marks another significant breakthrough for the company in the logistics industry, reflecting the company’s high internal requirements for service quality and customer experience, but also further consolidates its leading position in the Middle East market.
The promotion of J&T SPEED service is deeply integrated with Saudi Vision 2030. The country’s vision aims to promote the diversified development of the Saudi economy, strengthen Saudi Arabia’s connections with international markets, and enhance its national competitiveness. Logistics, as an important support for economic development, is particularly significant for achieving Saudi Vision 2030.
The promotion of J&T SPEED can help Saudi Arabia strengthen connections with international markets, improve logistics efficiency, and promote the prosperity and development of the
“We are delighted to launch J&T SPEED to address the rising demand for personal express delivery services in Saudi Arabia, extending beyond e-commerce platforms, and seize the business opportunities in the Saudi market. Our user-friendly app enables individual users to conveniently place orders and experience our fast and reliable delivery. We firmly believe J&T SPEED will cater to the growing personal express delivery needs in Saudi Arabia and continue to provide Saudi users with an enhanced parcel delivery experience.
”Kim Gao, Project Manager of J&T SPEED at J&T Express
The Saudi-Oman highway’s design focused on upholding the highest standards of traffic safety
The highway linking Saudi Arabia and Sultanate of Oman stands as a remarkable engineering feat in the heart of the Empty Quarter desert (Rub AlKhali), serving as a vital artery that strengthens cooperation between Saudi Arabia and Oman across various fields. This crucial roadway stretches 564 kilometers, from the Batha Haradh intersection to the Empty Quarter border crossing. Its construction required over 1.3 million work hours and the use of 750 specialized pieces of heavy equipment to overcome the harsh desert environment.
The project was executed in two phases. The first phase involved the construction of a 319-kilometer road reaching the Shaybah oil field, while the second phase extended from
Shaybah to the Empty Quarter border crossing with Oman, covering a distance of 246 kilometers. The highway’s design prioritized the highest traffic safety standards, incorporating 30 kilometers of night lighting, road markings spanning 12 million square meters, and reflective markers and warning signs. Additionally, rest stops for trucks and cars were provided on both sides of the road to ensure the safety and security of all users.
This strategic project will significantly enhance trade and tourism between Saudi Arabia and Oman, facilitating the movement of pilgrims and visitors to the holy sites. It also plays a pivotal role in achieving the goals of the National Transport and Logistics Strategy, solidifying the Kingdom’s position as a global logistics hub.
Writer Relocations is a global leader in the relocation and global mobility sector, having a robust presence in the GCC region for over 24 years. Its offerings include a wide array of relocation services such as household goods transportation, office moves, and secure storage solutions. The company takes pride in its cutting-edge technological infrastructure, seamless operational integration, along with an experienced international team proficient in navigating regional intricacies and regulatory environments.
The UAE is actively investing in developing world-class storage solutions across various sectors, positioning itself as a prominent marketplace in the global storage arena. As a hub for premium services, the country offers diverse options for businesses seeking cost-effective solutions. With varying needs ranging from compact self-storage units to expansive warehouses, large organisations require tailored facilities that ensure the utmost care and security for their inventory.
Of late, along with the large-secure spaces, the country is witnessing a demand for self-storage spaces which is an economic solution. Frequent commercial moves like retail chains, offices, home renovations and moves within the UAE’s dynamic rental market are driving the demand for safe and secure storage options.
Writer Relocations operates a modern and secure facility in DIP-2. Its strategic location near Jebel Ali Free Zone and Al Maktoum International Airport provides excellent connectivity to major commercial districts and residential areas.
The company supports current trends by offering a range of secure and efficient storage services tailored to meet the
evolving needs of its clients. It boasts an extensive network covering key business and industrial centres across the region. Writer Relocations’ services include climate-controlled storage, real-time inventory management, and advanced security measures, ensuring the safety and integrity of stored items. Additionally, it offers seamless relocation services for both individuals and businesses, with integrated storage solutions ensuring a hassle-free experience.
Some of the key features of Writer Relocations’ secure storage facility include:
• Regular safety audits and inspections
• Climate-controlled environment
• Sustainable waste management practices
• Advanced digitalization in warehouse management systems (WMS)
• Ongoing staff training
• Annual maintenance contracts for infrastructure and pest control
• Frequent sanitization and disinfection protocols
• 24/7 security
With a strong foothold in the GCC region spanning over two decades, Writer Relocations understands country-specific regulatory frameworks and possess proficiency in seamlessly integrating across diverse transportation modes. The company’s advanced technological infrastructure includes cutting-edge systems like real-time tracking and transit management, which deliver timely updates to the clients. Supported by skilled global teams, the company navigates regional intricacies and proactively addresses challenges, ensuring the relocation process is conducted smoothly and efficiently.
Being a global mobility leader, the organization continually develops technology and innovative solutions to enhance its efficiency, accuracy, and adaptability in warehouse management. Some of its key technological capabilities include:
• Real-time inventory management
• QR and barcode systems
• User-friendly interfaces
• Integration capabilities
• Real-time tracking
Writer Relocations’ objective aligns with the UAE’s vision to mitigate environmental impact, promote cost efficiency, and strengthen corporate responsibility. To achieve these goals, the company’s sustainability efforts encompass a variety of initiatives. It utilises eco-friendly packaging materials and implements comprehensive waste reduction programmes. The storage facilities are equipped with energy-efficient technologies, and proper disposal and recycling practices are implemented throughout operations. The organization regularly collaborates with partners to amplify its impact and ensure sustainable practices across its supply chain. Moreover, the company’s transportation planning strategies are designed to minimise fuel consumption, contributing to reduced emissions. There are also regular assessments of carbon footprint to monitor and improve environmental performance continuously.
The UAE economy is forecast to grow by 4% in 2024, attributed to higher
oil prices, strong capital and investment inflows, and surging domestic activities, including increased consumer spending, business investments, and growth in the real estate market. The influx of people from around the world has been constant, which is why there is tremendous growth in the property market. However, younger generations prefer an asset-light lifestyle, leaning more towards flexibility, modular services, technology, sustainable practices, and a focus on experiences over possessions. Writer Relocations remains agile in adapting to these changing trends and consistently offers customised solutions to meet clients’ requirements.
In the vibrant UAE market, the demand for storage solutions is intricately tied to its dynamic economic landscape. As businesses and individuals in the region evolve, so do their requirements for secure and efficient storage facilities. Writer Relocations recognises that success in this dynamic environment hinges on continuously enhancing the customer experience across all interactions. This involves not only meeting current storage needs but also anticipating and adapting to future demands. Embracing technological advancements is crucial in this regard, enabling the company to offer state-of-the-art, secure storage solutions that are reliable, agile and responsive to changing market dynamics. By staying attuned to these principles, Writer Relocations ensures remaining a trusted partner in the UAE’s evolving storage sector.
Mr. Vikas Chadha, CEO of Jumbo Electronics Ltd, shares insights into the company’s logistics division, explores the evolving logistics landscape in the region, and discusses the company’s impressive growth and future prospects
Jumbo Logistics, a subsidiary of JECL Logistics LLC, is one of the largest logistics service providers in the region. Over the last 20+ years, we’ve helped brands streamline their supply chains and grow their businesses by managing logistics efficiently. We’re rapidly expanding our customer base from global majors and large distributors to the growing e-commerce community.
We specialise in a broad range of logistics services, including third-party logistics (3PL), imports, clearing and forwarding, warehousing, last mile delivery, and reverse logistics — crucial for service-oriented companies and e-commerce giants. Our warehousing and storage solutions are extensive, featuring both racked and bulk storage options in free zones and the mainland. We also offer custom handling solutions and transportation tailored to each client’s needs.
Our fleet, among the most advanced in the market, includes delivery trucks, vans, and containers. This
allows us to cover multiple regions seamlessly. We ensure efficient B2B and B2C deliveries and offer warehousing and open yards management. Our facilities are technologically driven, utilising Warehouse Management Systems (WMS) for inventory control, providing real-time visibility and data analytics to aid business decision-making.
Security is another cornerstone of our operations. Our sites are fully secure with controlled access, CCTV, fire sprinkler systems, and 24hour security, including electronic surveillance and periodic patrolling. Additionally, we have warehouses available for lease in the mainland, equipped with specialised material handling equipment for enhanced efficiency. Our last mile delivery services cover the entire UAE, ensuring timely and accurate deliveries.
This past year has been transformative
for Jumbo Logistics, marked by several significant achievements. Our last mile delivery business has seen substantial growth due to our commitment to ontime delivery and extensive coverage within the UAE. We have also upgraded our bulk warehouses, converting them into sophisticated racking facilities integrated with advanced WMS systems, leading to an impressive inventory accuracy improvement, now at 99.99%.
Our 3PL business has expanded significantly compared to the previous year, thanks to our focus on bringing major 3PL brands into our distribution network. This growth is supported by our dedicated approach to strengthening relationships with 3PL customers and providing tailored
solutions that meet their specific business needs. These initiatives highlight our commitment to excellence and our ability to adapt to the evolving logistics landscape.
The logistics industry in the GCC region, particularly in the UAE and Saudi Arabia, is experiencing dynamic growth and transformation. Both countries are heavily investing in diversifying their economies away from oil dependency, with significant investments in logistics infrastructure as part of their national visions such as Saudi Vision 2030 and We The UAE 2031.
In the UAE, the logistics sector is thriving due to the country’ strategic location, world-class infrastructure,
and business-friendly environment. The UAE has established itself as a global logistics hub, with Dubai’s Jebel Ali Port and Al Maktoum International Airport playing pivotal roles in facilitating trade and commerce. Saudi Arabia also aims to transform itself into a global logistics hub by investing heavily in infrastructure projects like the NEOM megacity and the Red Sea Project. These initiatives are expected to create vast opportunities for logistics companies, particularly in the areas of transportation, warehousing, and distribution.
According to reports, the logistics market in the UAE was valued at USD 35.9 billion in 2023, and it is expected to reach USD 58.5 billion by 2032, growing at a compound annual growth rate (CAGR) of about 5.58% from 2024 to 2032.
Technological advancements are also playing a crucial role. The adoption of IoT, AI, and blockchain technology is revolutionising supply chain management, offering real-time visibility and enhanced operational efficiency. Improved transportation networks and the strategic location of the UAE and Saudi Arabia as global trade hubs further cement their pivotal roles in regional and international logistics.
Overall, the GCC logistics industry is poised for substantial growth, driven by increased trade activities, government investments, and technological
advancements. Companies operating in this region must stay agile and innovative to capitalise on these opportunities and navigate the evolving landscape successfully.
What sets Jumbo Logistics’ 3PL services apart is our relentless focus on delivering value and efficiency. We prioritise on-time delivery, ensuring that our clients’ goods reach their destinations as scheduled. Our pricing is competitive and flexible, accommodating volume growth without compromising on quality or service.
We leverage advanced technology to maintain high inventory accuracy, supported by our robust WMS systems. Real-time data and visibility through our Transportation Management System (TMS) provide our clients with transparency and control over their logistics operations. Our strong relationships with leading freight forwarders, transportation, and courier companies enable seamless coordination and execution.
Customer satisfaction is paramount to us, and our highly skilled workforce is dedicated to supporting all aspects of 3PL and transportation operations. We understand that customers demand realtime data and visibility, and we deliver that through our technology-driven solutions.
Innovation in Action Technology and innovation are integral to Jumbo Logistics’ operations, driving efficiency and enhancing service delivery. For instance, our updated WMS (Warehouse Management System) allows for precise material traceability and inventory control, ensuring that stock levels are accurately monitored and managed and that every item is accurately tracked from the moment it enters the warehouse until it reaches its final destination.
For instance, the integration of D365-WMS-LMD allows for automated inbound processes, reducing delays and manual efforts. This system provides real-time inventory visibility, movement statistics, and just-in-time (JIT) inventory planning, all of which are crucial for efficient supply chain management. The WMS has significantly improved inventory accuracy, which now stands at an impressive 99.99%.
Our enhanced GPS technology ensures accurate tracking for both B2B and B2C deliveries. This means our vehicles follow optimised routes, reducing delivery times and improving customer satisfaction. Real-time coordination and intelligent vehicle routing schedules help us handle ad-hoc requests effectively, providing timely updates and notifications to customers.
Additionally, the use of automated delivery orders and route planning enhances operational efficiency. Automated order processing minimises the risk of errors and ensures that orders are fulfilled promptly.
The future of the logistics industry is poised for significant advancements, characterised by increased automation, sustainability initiatives, and enhanced visibility. At Jumbo Logistics, we are committed to mitigating risks, increasing visibility, and automating our systems to stay ahead of industry trends.
As environmental concerns continue to rise, there is a growing push for greener logistics solutions. Sustainability is a priority for us, and we are actively adopting green practices across our supply chain, from eco-friendly vehicles to energy-efficient warehouses. We are also keen on embracing new technologies and trends in last mile delivery to meet the growing demand for fast and reliable services.
Looking ahead, we plan to continue investing in technology to enhance our operations and expand our reach. Our goal is to provide seamless, efficient, and sustainable logistics solutions that meet the evolving needs of our clients and contribute to a greener future.
By staying agile and proactive, we are confident in our ability to navigate the evolving logistics landscape and drive growth for our business and our clients.
