Logistics News ME - January 2024

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JOERG MOMMERTZ

Senior Vice President, Head of Center Middle East, Africa, Latin America and CIS ( MEALA & CIS), MAN Truck & Bus SE

JANUARY 2024

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IN THIS ISSUE

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COVER STORY YOUR PREFERRED STALWART TRUCKING CHARIOT

Joerg Mommertz, Senior Vice President and Head of Center - Middle East, Africa, Latin America and CIS ( MEALA & CIS), MAN Truck & Bus SE, and Vibha Mehta discuss MAN Trucks, the trucking business, and Joerg’s journey within the MAN universe…

16 OP-ED THE TRANSFORMATIVE DRIVING Paving the Way for Autonomous Harmony: Parsons in the Era of Driverless Vehicles

18 REPORT

WAREHOUSING IN DUBAI According to Rueben Scriven, Research Manager at Interact Analysis, the warehouse automation industry structure is changing

20 CYBERSECURITY SAFEGUARDING THE GATEWAY The Crucial Role of Cyber Security in the Port Industry’s Future 26 FOOD-TECH YOUR RELIABLE DELIVERY PARTNER Talabat’s Senior Director of Logistics, Khee Lim, and Vibha Mehta talk about how the business is always striving to make deliveries on time…

32 SUPPLY CHAIN

REDEFINING DESTINATION SCALE PROJECT MANAGEMENT Authored by Marco Fahd, Group Chairman and CEO, Versatile International

42 OFFSHORE SERVICES BEHIND THE SCENES Vibha Mehta sat down exclusively with Capt. Rado Antolovic to learn about the nitty-gritty at Drydocks World 74 MOBILITY PROVIDER LUMI REVOLUTIONISING THE LAND MOBILITY SECTOR Azfar Shakeel, CEO of Lumi, speaks to Logistics News ME on how Lumi is setting foot forward to develop and offer techdriven solutions in the mobility industry…

LOGISTICS NEWS ME | JANUARY 2024 | 3

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EDITOR’S NOTE

Happy 2024!

Parallel to this, I developed a few strong connections I would always cherish. Even if both parties to that friendship know that this connection is strong and won't be ending anytime soon, it's weird that I find it hard to understand how two people can become attached in such a short amount of time.

But I suppose that's just the way it goes. Whether personal or professional, I am eager to expand my network this year and am prepared to meet new people and do new things.

Remarkably, my sister's marriage was one of the significant events in 2023. That was a fascinating feeling to come to the surface. I witnessed the union of my first friend and support system. There was a flutter of emotions, and at one point, everyone was ecstatic, showering her with love and being ultra-emotional during her bidai (a Hindu wedding ceremony where the bride was formally sent off to her husband's residence). However, this looked out of flavour since she has been living in the US for the past six years. Emotions overflow at a wedding, and I just saw it up close & personal.

But now that I am keeping the tissue box on the side, we are back in action. While we have a solid year planned, we will kick off with our first event this month with Pillars in Real Estate Awards 2024 and KSA Logistics & Transport Awards 2024 soon to follow. For further details, continue reading this section.

I

t seems like only a moment, yet we are officially in 2024. Like most of us, I knew it on New Year's Eve. In 2023, a lot took place. Professionally, we made sure to be more visible in the KSA, Bahrain, and Qatar than in the United Arab Emirates itself.

I gained a lot more knowledge. In addition, I had interactions with several stunning individuals in the industry, some of whom were able to truly fit into my inner circle, which is also quite remarkable.

8 | LOGISTICS NEWS ME | JANUARY 2024

Vibha Mehta

Vibha Mehta

Editor-in-Chief vibha@bncpublishing.net

vibhamehta01 @vibhamehta01

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REGIONAL NEWS

TO HASTEN FLEET ELECTRIFICATION, KUEHNE+NAGEL ANNOUNCES A NEW LAUNCH

T

he new year starts with electrifying news as Kuehne+Nagel announces its Book and claims insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, previously limited to lowemission fuels.

Implementing decarbonisation solutions and helping customers achieve their sustainability goals are critical components of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone.

Developing Book and claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO, which is now followed by electric vehicles. The first-of-its-kind solution has been tested and validated with leading external stakeholders.

Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges that still limit the

12 | LOGISTICS NEWS ME | JANUARY 2024

deployment of electric trucks today.

“We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low- emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics.

Helping carriers finance their fleet electrification For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners to support them in their fleet electrification journeys. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

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REGIONAL NEWS

AFC ASIAN CUP QATAR 2023 FANS ARE WELCOMED AT HAMAD INTERNATIONAL AIRPORT

H

amad International Airport (DOH), Qatar’s renowned aviation hub, stands poised to welcome visitors from around the globe as Qatar hosts the prestigious 18th edition of the AFC Asian Cup Qatar 2023TM. Set to take place from January 12 to February 10, 2024, the tournament will see twenty-four of the continent’s top teams competing in 51 matches across Qatar’s state-of-the-art stadiums.

Drawing from the lessons and expertise gained during the FIFA World Cup Qatar 2022 TM, the airport has meticulously planned its operations to ensure a seamless arrival experience for visitors entering the vibrant city of Doha.

The comprehensive preparation includes seamless coordination and communication among all stakeholders, ensuring optimal service delivery. Extensive collaboration with transport providers guarantees efficient connectivity to and from the airport, the city, and the stadiums, with multiple public transport options, including taxis, bus services, and the metro, available for visitors.

Arriving passengers can access necessary amenities like foreign exchange services, food and beverage options, convenient stores, and ATMs and purchase local sim cards, which are all conveniently located at the arrival hall.

Passengers with a transit time of more than 8 hours can book a Doha city tour through Discover Qatar, the destination management company of Qatar Airways, to experience the city during the AFC Asian Cup Qatar 2023 TM. Qatar Airways, the country’s national carrier, has partnered with the Asian Football Confederation to transform the fan experience at Asian football competitions in the coming years, including the AFC Asian Cup Qatar 2023TM. The home and hub of Qatar Airways, Hamad International Airport, is set to bring the tournament experience to the terminal with a dedicated fan zone and exciting activations that will provide an immersive experience to passengers.

Upon departure, visitors can indulge in the distinctive offerings at Hamad International Airport, such as the iconic indoor tropical garden, ORCHARD, or explore Souq Al Matar, a lively traditional Qatari market within the airport premises, providing a glimpse into the rich local culture and warm hospitality of Doha.

Hamad International Airport is a candidate for the World’s Best Airport at the Skytrax World Airport Awards 2024. Passengers who have experienced HIA’s award-winning services and facilities can visit Skytrax’s World Airport Survey website and vote for the airport.

LOGISTICS NEWS ME | JANUARY 2024 | 13

LNME

REGIONAL NEWS

TRANSWORLD GROUP AND JAFZA ARE SETTING UP A STATE-OF-THE-ART LOGISTICS CENTRE

D

P World’s Jebel Ali Free Zone (Jafza) and Transworld Group today announced the signing of an agreement to construct a 50,000+ square metre, dry and temperature-controlled distribution centre in Jafza.

The facility, which Jafza will develop, represents a significant expansion for Transworld that will nearly double its regional capacity while expanding the Free Zone logistics infrastructure.

Abdullah Bin Damithan, CEO and Managing Director of DP World GCC, said: “We are delighted to continue our longstanding relationship with Transworld Group by partnering on this project. This agreement reflects our commitment to providing state-of-the-art solutions that cater to the diverse needs of our clients and foster business growth in Jafza while solidifying our position as a leader in the logistics sector.”

The warehouse construction is scheduled to begin in early 2024 and is expected to be completed by 2025, with the expansion coming on the heels of Transworld Group opening its new Cold Chain Distribution Centre in Jafza earlier this year.

14 | LOGISTICS NEWS ME | JANUARY 2024

Ramesh S. Ramakrishnan, Chairman of Transworld Group, said: “This is a momentous occasion for Transworld Group and a reflection of our faith in DP World, Jafza and the UAE. This mega distribution centre will be a landmark for Transworld, symbolising our growth and expansion over the last five decades. It will also complement our foray into the food processing sector. We are thankful to Jafza and DP World for facilitating this venture of Transworld and look forward to many more milestones through this partnership as we continue serving our customers.”

The agreement was officially signed in the presence of Abdullah Bin Damithan, CEO and Managing Director of DP World GCC; Abdulla Al Hashmi, Chief Operating Officer, Parks & Zones at DP World GCC; Ramesh Ramakrishnan, Chairman of Transworld; Ritesh S. Ramakrishnan, Managing Director at Transworld and Anisha Ramakrishnan, Director at Transworld.

Since being established in Jafza in 2005, Transworld has proliferated, with its facility in the Jebel Ali Free Zone serving as a central distribution hub and complementing its logistics and ship-owning businesses. The upcoming facility will bolster Transworld’s capabilities further, featuring cold and frozen chambers to accommodate a range of temperature-sensitive products.

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REGIONAL NEWS

RIYADH AIR AND ACCENTURE WORK TOGETHER TO DEVELOP CORE TECHNOLOGY CAPABILITIES

R

iyadh Air has signed a three-year strategic agreement with Accenture (NYSE: ACN) to help deliver its technology foundation and capabilities as part of its vision to be the world’s first digitally native airline. Accenture will help set up Riyadh Air’s cloudonly infrastructure, cybersecurity capabilities, managed services and operations as the airline gears up for its launch.

The initiative will enable Riyadh Air to operate in a new era of aviation with digital services at its core, using cutting-edge technologies such as cloud data and AI to help deliver a seamless travel experience for its guests and employees. The core

enterprise system will enable the company to scale as it aims to offer over 100 destinations by 2030.

Adam Boukadida, chief financial officer of Riyadh Air, said, “As a digitally native airline, Riyadh Air will be at the forefront of innovation and technology, allowing us to deliver world-class service to our guests.

There is a considerable amount of unseen work behind the scenes, enabling both our operations and user experience, with Accenture, our strategic technology partner, helping us to deliver, secure and operate foundational capabilities.”

Emily Weiss, senior managing director at Accenture and head of its Travel practice globally, said, “The launch

of Riyadh Air is a landmark moment for the aviation industry as a whole; a brand-new airline that’s designed from the ground up, harnessing the latest technologies to create hyperconnected experiences that meet the demands of today’s, and tomorrow’s travellers. Drawing on our deep industry and digital expertise, we are proud to collaborate with Riyadh Air to help shape the future of travel.”

Boukadida added, “Accenture is pivotal in enabling Riyadh Air’s cloud-first strategy, and our unique architecture will ensure that our technology stack is future-proof and remains legacy-free. It also will be built and supported with the highest level of cybersecurity and automation in mind from its inception.”

LOGISTICS NEWS ME | JANUARY 2024 | 15

LNME

OP-ED

THE TRANSFORMATIVE

DRIVING

Paving the Way for Autonomous Harmony: Parsons in the Era of Driverless Vehicles Collaboration with the built environment is essential, and the successful adoption of smart technology is integrally linked to the city’s foundations and infrastructure readiness. As the world embraces transformative technologies, such as driverless vehicles, we must look at the necessary foundations to integrate these innovations, ensuring success and sustainability in our urban landscapes.

The Smart City Infrastructure Advantage: While cars are getting smarter, the key to unlocking a driverless vehicle future lies in smart streets and smart cities. Driverless vehicles

have dozens of sensors, radars, and cameras that provide a vast amount of data about objects and activities directly around them. However, they also rely on information from further distances to anticipate traffic conditions, avoid conflicts at intersections, and anticipate human driver actions.

Cities have started understanding these needs and are advancing smart city infrastructure to transform streets and intersections into data-sharing hubs. Sensors embedded in roads and mounted on streetlight poles provide detailed traffic conditions throughout the city, while intelligent corners communicate with approaching driverless vehicles to improve safety and optimize traffic flow. Vehicles and infrastructure continuously communicate to maximise the operations of signals, streetlights, and other city resources around them.

Testing is underway to prepare existing infrastructure for the influx of autonomous vehicles. For example, in partnership with the City of Chicago, Parsons helped implement the Connected Vehicle

16 | LOGISTICS NEWS ME | JANUARY 2024

Originally written by Andrew Bevan, Digital Urbanism Lead at Parsons MEA. Edited by Vibha Mehta.

I

n the journey towards a more innovative, more connected future, autonomous vehicles (AV) have emerged as a critical player promising to revolutionize how we navigate our cities. As autonomous vehicles inch closer to becoming a common sight on our streets, concerns about their impact on urban liveability have grown.

Critics raise valid apprehensions, including the operability of these smart systems within existing city frameworks and their ability to benefit citizens’ quality of life. Concerns include increased congestion, cybersecurity risks, safety and reliability.

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THE TRANSFORMATIVE DRIVING

Corridor Pilot. Focused on improving pedestrian safety, the pilot uses artificial intelligence, connected vehicle data, traffic signal sensors, signal phase and timing data (SPaT), and cameras for pedestrian detection and delivering safety messages to drivers for pedestrian awareness. The data collected has also generated analytics to recognize driver and pedestrian trends that will further the development of autonomous vehicle technology and support the goals of Vision Zero and other safety programs.

Navigating Cybersecurity Challenges: Autonomous vehicles function through the integration of a diverse range of sophisticated technologies, such as sensors, cameras, GPS, radar, light imaging detection and ranging (LiDAR), and advanced computing systems. This intricate system, designed to interpret the vehicle’s surroundings accurately, allows for real-time decision-making capabilities. However, this complex network is susceptible to cybersecurity threats that go beyond the traditional concerns associated with conventional vehicles. The vulnerability lies in the potential infiltration of communication channels, presenting a severe threat that could result in personal information theft or the introduction of malicious software, ultimately compromising the vehicle’s safety.

However, pilots and studies have shown that with optimized traffic flow and reduced congestion, people can spend less time stuck in traffic and more time doing the things they enjoy. Additionally, autonomous vehicles provide a more accessible and equitable mode of transportation for people with disabilities or limited access to public transit.

This increased mobility could lead to better access to jobs, healthcare, and other essential services, ultimately improving overall quality of life.

Furthermore, by reducing the number of cars on the road, autonomous vehicles can help mitigate air pollution, noise pollution, and other negative environmental impacts, creating a more livable and sustainable urban environment.

As Parsons takes the lead in the digital transformation of infrastructure, we not only guide cities through the challenges presented by this transition but also actively implement innovative solutions that enable our clients and cities to tap into unprecedented levels of efficiency, safety, and sustainability.

Recognizing the importance of cybersecurity protection for critical infrastructure, cities are adopting proactive measures such as updating software, encrypting data, and regularly monitoring and assessing system vulnerabilities. By collaborating with cybersecurity experts to develop incident response plans and provide employee training, cities are working to minimize risks and safeguard against potential cyber threats.

Balancing Quality of Life: Others argue that introducing widespread autonomous vehicles might lead to an unforeseen decline in overall quality of life. The concerns revolve around increased screen time during autonomous rides, potential job displacement in traditional transportation sectors reduced walkability and active modes of transportation, and a shift in the social dynamics associated with conventional commuting. The fear is that technology designed to improve convenience might inadvertently alter the human experience, impacting well-being in ways not yet fully understood.

ANDREW BEVAN, Digital Urbanism Lead at Parsons MEA

LOGISTICS NEWS ME | JANUARY 2024 | 17

LNME

REPORT

WAREHOUSING IN DUBAI According To Knight Frank, The Warehouse Shortage In Dubai, With Just 1.56m Sqft Under Construction

T

he supply of under-construction warehouse stock in Dubai’s industrial market stands at just 1.56 million square feet, according to Knight Frank’s latest report: Dubai & Abu Dhabi Industrial Markets Review, Q3, 2023.

According to Knight Frank, demand is outstripping supply and occupiers are faced with the prospect of leasing more secondary stock, while others are gravitating towards locations in Abu Dhabi, which is benefitting from spillover demand.

Indeed, across t the six primary submarkets tracked

by Knight Frank in Abu Dhabi, rents have remained unchanged thus far during H2. Notably, high occupancy levels in KEZAD and Masdar have helped to sustain rents.

Knight Frank also reports a rise in demand in ADAFZ, where space is available for AED 600 per square metre.

To cater to the burgeoning market demand, ADAFZ is developing a new masterplan, Al Falah Free Zone, spanning over 6 square kilometres, which will include both bonded and non-bonded zones.

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FAISAL DURRANI, Partner – Head of Research, MENA

SOURCES OF DEMAND According to Knight Frank, Dubai recorded 9.9 million square feet of new requirements during Q1-Q3 2023. The logistics sector dominates Dubai’s demand, accounting for 44% of new requirements, followed by the manufacturing and industry (16%) and technology sectors (13%).

In Abu Dhabi, new industrial and logistics space requirements grew to 350,000 square metres during the first nine months of 2023, a significant 94% increase on the same period in 2022.

Maxim Talmatchi, Associate Partner, Co-Head of Industrial and Logistics, says: “Demand has been strong this year, and

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WAREHOUSING IN DUBAI

we have worked with several new market entrants from Asia Pacific, CIS countries, Turkey, and India. Additionally, existing industrial occupiers have also been busy expanding their footprints in Dubai.

This growing demand pool has prompted local and international developers to explore opportunities to enter the market with Grade A logistics build-to-rent products. We expect approximately 9-10 million square feet of Grade A logistics warehousing to be delivered in the next ten years.”

Knight Frank’s report also highlights that while warehouse lease rates in Dubai have remained stable thus far during H2 2023, Grade B rents in JAFZA (AED 25 per square foot) and Dubai Industrial City (AED 32 per square foot) have risen by 25% and 19%, when compared to the same period last year.

Similarly, Al Quoz (Grade A) has seen rents climb to 52% above January 2020 levels, marking it the most expensive warehouse leasing location in Dubai.

Faisal Durrani, Partner – Head of Research, MENA, commented: “The transformation of Al Quoz continues.

With lease rates here at AED 58 per square foot, retailers, many of whom are fitness and wellness businesses, cafes, and art galleries, are continuing to snap up warehouses for use as retail premises, adding to the boho vibe that has become entrenched in this part of the city.

primary and secondary rents in the industrial and logistics sector will widen. Tenants remain laser-focused on securing best-in-class, internationally specified warehousing and are now willing to pay a premium to occupy such space, which historically was not the case.

“Given the restricted supply entering the market, landlords willing to invest capital expenditure in modifying or retrofitting their ageing assets will be able to command a rental premium. In contrast, landlords of secondary assets may be able to maintain occupancies in the short term; however, when the new stock does eventually materialise, older assets will likely experience falling rents and increased voids.”

Knight Frank also highlights a critical risk to the market: Heightened investor demand is boosting capital values faster than lease rates, compressing yields. Knight Frank forecasts yields will have slipped from about 8.50- 8.75% in H1 to around 8.0-8.25% by the end of 2023.

In addition, interest rate hikes could dampen demand for industrial assets due to the increased cost of debt. This could slow or even reverse yield compression.

“For industrial occupiers, Al Quoz’s central location between old and new Dubai continues to fuel demand, especially among occupiers from the logistics (last-mile centres) and automotive sectors. The stock transition from warehousing to retail from this core location will undoubtedly continue driving up rents here, particularly when the wider market for light industrial units has occupancy levels hovering at around 98%, and supply is so restricted.”

OUTLOOK According to Knight Frank, Dubai is experiencing a significant influx of institutional investments from the United States, influenced by the UAE’s strategic location, e-commerce growth, and the need for efficient supply chain solutions.

Yet, Dubai needs more prime industrial and logistics land, highlighting the importance of expansion plans by authorities such as DIP and JAFZA. Knight Frank projects that Dubai’s industrial rents will maintain their upward trajectory. The acute supply shortage and Dubai’s ambitious D33 Economic Agenda and Vision 2040 Strategy underpins Knight Frank’s outlook.

Adam Wynne, Associate Partner, Co-Head of Industrial & Logistics UAE, concluded: “Over the next 12-16 months, as the market continues to evolve, we predict the gap between

LOGISTICS NEWS ME | JANUARY 2024 | 19

LNME

CYBERSECURITY

SAFEGUARDING

THE GATEWAY The Crucial Role of Cyber Security in the Port Industry’s Future

I

RAMI REFAAT, Managing Director of CYB3R

20 | LOGISTICS NEWS ME | JANUARY 2024

The Digital Evolution of Ports Traditionally, ports were hubs of manual labour and logistics, where ships were loaded and unloaded with minimal reliance on technology. However, the current landscape is vastly different, with ports undergoing a profound digital transformation. Automation, the Internet of Things (IoT) and interconnected systems have become the norm, streamlining operations and enhancing efficiency. While this digital revolution has undoubtedly brought numerous benefits, it has opened the door to unprecedented cyber security threats.

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Originally written by Rami Refaat, Managing Director at CYB3R. Edited by Vibha Mehta.

n an era where digital advancements have revolutionised industries, the port sector stands at the forefront of technological integration. The seamless flow of goods and information has become synonymous with efficient port operations, making cyber security indispensable in safeguarding critical hubs. As we delve into the digital age, it is clear that the success of the port industry hinges on robust cybersecurity measures. This article explores why cyber security is set to play an essential role in the port industry, addressing the unique challenges and opportunities this sector faces in the digital landscape.

SAFEGUARDING THE GATEWAY

The Growing Threat Landscape A general reliance on digital infrastructure makes industries susceptible to various cyber threats.

From ransomware attacks to data breaches, malicious actors increasingly target ports to disrupt operations and compromise sensitive information.

The consequences of a successful cyber attack on a port can be catastrophic, ranging from financial losses and operational disruptions to potential threats to national security. With the global economy intricately connected through supply chains, a breach in one part of the world can have far-reaching implications globally.

Critical Infrastructure Vulnerabilities A port is more than just a place of transit - it is a critical infrastructure that plays a pivotal role in a country’s economic vitality. Any disruption to port operations can have a cascading effect on the global supply chain, impacting businesses, consumers and the overall economy. Cyber security vulnerabilities in port systems can be exploited to manipulate cargo data, disrupt communication networks, or even compromise the safety of maritime operations. The need for robust cybersecurity measures becomes non-negotiable as ports become more interconnected and reliant on digital technologies.

disruption to port operations can have a domino effect, impacting the movement of goods across borders and continents. Cyber security is pivotal in enhancing supply chain resilience by safeguarding digital systems, ensuring the uninterrupted flow of information and mitigating the risk of cyber-induced disruptions. Ports must invest in cyber security measures that protect their internal systems and contribute to the overall resilience of the supply chain.

Emerging Technologies and Risks New cybersecurity challenges emerge as the port industry embraces emerging technologies such as blockchain, artificial intelligence, and autonomous systems. While these technologies offer unprecedented efficiency and transparency, they also introduce new vulnerabilities that malicious actors can exploit. Securing these cutting-

edge technologies requires a proactive approach, with ports investing in advanced cybersecurity solutions and staying ahead of evolving threats.

In this digital age, the port industry finds itself at a crossroads where technological innovation and cyber security must go hand in hand.

The interconnected nature of port operations and the increasing sophistication of cyber threats underscores the urgency for robust cyber security measures. Ports that prioritise cyber security protect their processes and data and contribute to the overall resilience of the global supply chain. As the port industry navigates the complexities of the digital landscape, investing in cyber security is not just a choice but a strategic imperative for a secure and prosperous future.

Data Privacy and Regulatory Compliance In an era where data is currency, ports handle sensitive information, including cargo manifests, customer data and operational details. Data privacy is not only a business imperative but also a regulatory requirement. The maritime industry is subject to increasing cyber security regulations and standards.

Ports that fail to comply with these regulations risk financial penalties and compromise their reputation in an industry where trust is paramount.

Supply Chain Resilience The port industry is a critical node in the global supply chain. Any

LOGISTICS NEWS ME | JANUARY 2024 | 21

LNME

EXPERT INSIGHT

A leading logistics tech company’s projections indicate an exceptional surge in market value, forecasted to skyrocket from its current evaluation of USD 412 million to a staggering USD 13,948 million by 2032, showcasing an impressive CAGR of 43.5 per cent. In the UAE, the integration of generative AI into logistics operations represents a strategic leap towards enhancing operational efficiency, bolstering competitiveness, and ensuring robustness within the supply chain network.

TRAVERSING INTO 2024 D

Logistics Industry Trends and Strategies to Navigate Challenges in 2024

r Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Suite at Heriot-Watt University Dubai, shares her views on the subject lines…

As 2024 approaches, it becomes increasingly crucial for businesses to proactively anticipate upcoming trends shaping the industry and navigate supply chain challenges effectively. The ability to forecast and adapt to these trends will be instrumental in addressing supply chain disruptions. According to a Gartner survey, it is projected that by 2024, around half of all supply chain entities will allocate resources towards integrating artificial intelligence (AI) and advanced analytics tools. This strategic investment aims to enhance operational efficiencies and responsiveness, enabling organisations to handle complexities within their supply chains better.

Embracing AI-powered applications

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and advanced analytics will empower businesses to gain actionable insights, optimise processes, and make informed decisions, ultimately fostering resilience and competitiveness in an everevolving market landscape. In addition, sustainability and net-zero targets will continue to drive and shape businesses’ innovative environmental initiatives and practices.

AI-enabled logistics activities The logistics and supply chain industry is currently experiencing an extensive technological overhaul, with a milestone poised to redefine operations in 2024the integration of generative AI into logistical frameworks. Generative Artificial Intelligence represents a significant technological leap, housing algorithms and models that can generate various data formats, spanning video, images, text, 3D renderings, and code, all derived from trained input data. Recent global research underscores a notable paradigm shift within the generative AI logistics sector.

With the nation’s strong focus on technological advancements, such innovative integration signifies a shift towards more agile and data-driven decision-making processes. By embracing generative AI technologies, the UAE’s logistics and supply chain industry anticipates significant improvements in predictive analytics, resource optimisation, and streamlined operations, positioning itself as a leading hub for cutting-edge logistics solutions within the region and globally.

With the increasing trend toward digital logistics, cybersecurity is becoming more crucial than ever, and mitigation strategies should be in place. For example, the shipping industry is expected to invest highly in cybersecurity to safeguard cargo from theft, protect sensitive data, and prevent cyberattacks that threaten operations. Multifactor authentication will continue to be the norm in logistics and shipping.

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TRAVERSING INTO 2024

The growing role of data and analytics In the ever-evolving logistics landscape, data stands as the cornerstone, defining operational strategies and shaping the industry’s trajectory in 2024. The critical role of data emerges as a defining trend, underpinning advancements and innovations within logistics practices. Data is the foundation for informed decision-making, enabling logistics professionals to navigate complexities and anticipate market shifts.

With technologies like IoT, AI, and advanced analytics, the sheer volume of data generated across the supply chain has skyrocketed. This influx offers unparalleled opportunities to glean actionable insights and streamline operations. In 2024, the effective utilisation of data becomes crucial in addressing challenges such as supply chain disruptions, inventory management, and customer expectations.

By harnessing data-driven strategies, logistics companies can optimise route planning, predict demand patterns, and enhance overall efficiency while reducing costs. Moreover, data facilitates agility and responsiveness, empowering logistics providers to adapt swiftly to dynamic market demands. Realtime data insights enable proactive decision-making, ensuring timely responses to unforeseen disruptions and fostering a more resilient supply chain.

DR SHEREEN NASSAR, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Suite at Heriot-Watt University Dubai

Rising sustainability pressure drives innovative practices In 2024, the focus on sustainability in logistics will continue to intensify as businesses increasingly recognise its pivotal role in meeting consumer expectations and global environmental commitments. Lastmile delivery, known for its ecological impact, influences consumer perceptions of sustainability.

Consumers witness the environmental implications of inefficient last-mile deliveries, significantly influencing their views of a company’s commitment to sustainability. The growing sustainability pressure for businesses is also driven by

the shift in the focus from Scope 1 (direct carbon emission) and Scope 2 (indirect carbon emissions) towards Scope 3 emissions, which happen across the whole value chain. It is still voluntary, but many countries now require collecting and reporting scope three emissions data as a legal requirement.

Moreover, COP28 learnings have further highlighted the urgency for the logistics industry to prioritise sustainability.

The conference underscored the need for drastic measures to combat climate change, emphasising the pivotal role of logistics in achieving global sustainability goals.

Encouragingly, this heightened awareness has propelled logistics businesses to reconfigure delivery models, invest in eco-friendly transportation, optimise routes, and explore innovative strategies to minimise their environmental footprint. Embracing sustainable practices meets consumer demands and aligns with global commitments, fostering a greener, more conscientious logistics industry. For example, Maersk, a global shipping leader, promoted sustainability through its initiatives to build ships with electricity and alternative fuel sources.

The logistics industry will witness a surge in innovative sustainable practices, such as implementing electric and autonomous vehicles, optimised route planning using advanced analytics, and the integration of renewable energy sources, solidifying sustainability as a defining trend shaping the sector throughout the year. Leveraging technologies like electric vehicles, optimised routing algorithms, and renewable energy integration will mitigate environmental impact while meeting burgeoning consumer demands for eco-conscious logistics solutions. As companies adapt, innovate, and prioritise sustainability, they cater to consumer preferences and contribute significantly to a greener, more resilient future for the logistics industry and the planet at large.

The logistics sector stands at a critical juncture, poised to embrace innovative solutions and transformative approaches to navigate this paradigm shift. Success depends on three core pillars: data utilisation, technological innovation, and sustainability. Embracing the power of data-driven decision-making enables precise insights and operational enhancements. Moreover, leveraging technological advancements like AI, IoT, and efficient route planning tools ensures streamlined operations. Crucially, sustainability stands tall as an imperative, aligning with consumer expectations and global commitments. As companies navigate this landscape, their resilience and competitiveness will nurture a futureready logistics industry poised for growth and environmental stewardship.

Building and enabling a workforce for meaningful change that can be flexible and agile in adapting and responding to different ways of working, mainly through technology, is essential for maintaining a resilient and sustainable logistics and supply chain.

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SEZS

A TURNING POINT

The Salient Skins Of Saudi Arabia’s Announcement Of The Creation Of Four New Special Economic Zones

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stablishing four special economic zones featuring incentives for foreign enterprises represents a significant step forward for Saudi Arabia in its trajectory towards becoming a worldwide hub for commerce and investment. These SEZs are being established following Vision 2030, which seeks to position Saudi Arabia as a significant participant in important industries while progressively generating government income separate from oil exports.

The Economic Cities and Special Zones Authority chairman and Saudi minister of investment, Khalid Al-Falih, summed up the announcement’s significance

by saying, “These four special economic zones offer the chance for foreign investors to have a stake in the world’s fastest-growing economy.”

The International Monetary Fund predicted in August that Saudi Arabia’s economy would expand this year at one of the fastest rates in the world due to a significant increase in oil production and pricing as well as pro-business policies.

SEZs stand for the Kingdom’s rise to prominence and aspiration to lead the global economy in many areas and become a significant global economic hub. The latest addition to the Kingdom’s Free Zone projects is the unique integrated logistics zone located at King Salman International Airport in Riyadh.

They represent the first phase of a larger project intended to promote foreign direct investment, attract highly skilled workers worldwide, and boost entrepreneurship and the economy.

The Zones, managed by the Economic Cities and Special Zones Authority, are strategically located across the country and offer new solutions to the challenges many global companies face as they seek to localize and strengthen their supply chains. The Zones help the Kingdom leverage fundamental macroeconomic changes to create a differentiated business environment and activate new sectors and value chains.

Apart from the specific tax advantages, the Special Economic Zones (SEZs) will be bound by broad tax regulatory regimes that might be distinct from those applied to the rest

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Originally written by Pranav Doshi.

Edited by Vibha Mehta

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A TURNING POINT

of the nation outside the zooms.

These include accounting standards, making English the official language, filing tax returns, tax assessment and collection, controlling the import and export of goods and producing goods inside the Special Economic Zone, and, lastly, enforcing laws against infractions and tax evasion.

Each Zone Will Have Its Specialization: KAEC SEZ will be a leading destination for advanced manufacturing and logistics. It will benefit from its proximity to the research centre at King Abdullah University of Science and Technology, which offers access to cutting-edge research and development facilities that support the development of medical technology and automatedand electric-vehicle technology clusters. The SEZ at Ras Al-Khair, established adjacent to its port, a leading maritime gateway for mining imports and exports, as well as largescale power and water projects, will have a competitive advantage in aiming to be a new fully integrated maritime hub, bolstered by an existing community of sector leaders including the IMI (Innovative

headquarters and commercial operations to the Kingdom, resulting in a worldwide and regional transformation in how people do business in Saudi Arabia.

State economic and financial analysts claim that the SEZs are a game-changer in the Kingdom’s plan to become a significant player in the global business arena.

Medicines Initiative), Hyundai Heavy Industries, and Lamprell. Jazan’s SEZ, in the southwest of the country, will offer a new gateway to Africa for investors eager to capitalize on large-scale infrastructure projects throughout the continent via one of the biggest ports for exports in the region. The Cloud Computing SEZ will be a hub for innovation and collaboration on various technologies shaping the future, capitalizing on the Kingdom’s competitive electricity and data costs.

Multinational corporations, international small and medium-sized businesses, and entrepreneurs continue to relocate their regional

In the end, the SEZs are an essential part of Crown Prince Mohammed bin Salman’s economic plan for the nation; they are a means of establishing a parallel economy that will usher in a new era for Saudi Arabia as a growing global centre for business, innovation, and entrepreneurship, as opposed to a country that is exclusively dependent on its oil resources.

These zones represent a turning point in the Kingdom’s economic development and are one of the final significant legs of the 2030 vision.

These areas have the potential to promote innovation, draw in foreign capital, and establish Saudi Arabia as a major player in the world economy while the world watches.

This project’s success will shape the Kingdom’s economic destiny, which will also add to the Middle East’s larger story of economic diversification.

The stage is set to bring the world to Saudi Arabia — to confirm that the country is indeed a vital component of the global economy.

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KHEE LIM, Senior Director Logistics of Talabat

YOUR RELIABLE DELIVERY PARTNER

Talabat’s Senior Director of Logistics, Khee Lim, and Vibha Mehta talk about how the business is always striving to make deliveries on time…

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YOUR RELIABLE DELIVERY PARTNER

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he Talabat delivery app is a popular way to get meals and other things on demand in the Middle East and North Africa. Due to its primary focus on food and grocery delivery and its provision of q-commerce solutions, it is a wellliked option for time-pressed people and families who wish to save time and effort while still having easy access to meals, groceries, and other essentials.

While speaking to Khee, I first wanted to touch on his experience and how he brings that to the table at Talabat. Khee has been in the food delivery industry for seven to eight years across Deliveroo in the UK, Foodpanda in Germany and more recently at Talabat in the Middle East. According to him, the industry is dynamic and has positively transformed since he first joined – across the ecosystem and various stakeholders. He believes the industry is moving forward at lightning speed after the COVID-19 pandemic, and one cannot live without this industry.

Moreover, when asked, he says the last-mile delivery landscape in the UAE can be described as convenient, reliable, transparent, and brings joy to customers.

Khee feels that the industry is like a newborn baby and that Talabat is scratching the surface. To explain it more straightforwardly, he says, “Therefore, when you consider it, we eat three times a day. That translates to 90 meals a month. It has been difficult for any aggregator to find a significant portion globally.

Thus, much more space remains for improvement. What excites and confuses me the most about food delivery operations is that, in contrast to the right-hailing company, Talabat operates a three-sided marketplace.”

Talabat deals with customers while coordinating with couriers and restaurant/grocery vendors. This increases the possibility of multiple things going wrong at the same time. Khee believes that having all three parties adequately trained and equipped with the appropriate technology to forecast reliability is crucial. Talabat, in turn, has a suitable error detection system to guarantee that each order is completed satisfactorily and that every customer is satisfied.

Current Operations Throughout the Middle East and North Africa, Talabat is a market leader in eight markets in which it operates. These operations are the most widely dispersed geographically among these eight markets regarding their services. “Along with delivering freshly prepared meals from restaurants, we also offer a quick commerce section where you can pick up groceries delivered right to your door from supermarkets and weekly stores. Of course, there will be more to come,” highlights Khee.

Talabat – Food Company Or A LastMile Delivery App? Often related to a food company,

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FOOD-TECH

Data – Key to Digital Transformation The way Talabat uses data to improve technologies and then the technologies to get the correct data to enhance these highly complex operations further is what Khee sees as a positive feedback loop. Being a part of the Delivery Hero ecosystem, Talabat is fortunate to have access to excellent technologies both at Talabat and at Delivery Hero’s headquarters in Berlin, where they can also share some common learnings with other Delivery Hero managers.

“Ultimately, though, our goal is to provide the safest possible customer experience while adhering to the highest quality standards. Therefore, based on my experience in the industry, I believe

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that technology has advanced, but from a data perspective, there’s still more to come,” says Khee.

As a result, having a solid baseline of data is crucial to understanding when mistakes occur and how they resolve the situation. The ability to use data to genuinely address the foundations of delivery that are safe and dependable is more crucial. Talabat, for instance, is actively investigating ways to enhance its capacity to record and preserve volumetric order data to ensure that heavy orders are correctly assigned to riders with suitable vehicles. Ensuring customers receive large orders on schedule while maximizing fleet efficiency and cost-effectiveness. With

data, it’s a win-win situation for all.

Managing The Right Fleet Having the proper fleet under management is crucial for Talabat. To avoid over- or under-hiring partners—a delicate trade-off between their earnings and their stability of earnings to customer experience—they collaborate closely with logistics partners and other businesses to analyse a forward-looking demand planning. Khee points out that it takes much fine-tuning across various markets with different dynamics.

Competitive Balance By going beyond the surface to truly understand the basic principles, stakeholders, customers, restaurant

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YOUR RELIABLE DELIVERY PARTNER

“

We must work with these regulators to, you know, chart out what the industry in the next few years will look like, for not just Talabat but also the stakeholders involved as well,” Khee continues, “because we have more regulatory players entering the ecosystem.”

and grocery partners, riders, and logistics partners, one can genuinely peel back the layers of the onion to determine the customers’ genuine concerns and whether Talabat is meeting those needs. If so, they succeed. Khee believes they are ahead in that situation.

The second is a more proactive approach. Because this industry is so dynamic, they will collaborate closely with their legal, public affairs, and communications teams to stay one step ahead of the competition. “

and following the plan. When you’re talking about higher levels, like emergencies, be it from a product perspective or others. That is the best place to put solid communication skills and regular teamwork to the test. And up to this point. I think I’ve witnessed how the Talabat organization’s members—from C-level executives to MDS members to operations teams to people on the ground—come together to solve issues when they arise,” asserts Khee.

Last-Minute Frictions Within this volatile industry, varying degrees of emergencies exist. And among those are some that are more seasonal or that can be predicted, like inclement weather. The Talabat teams collaborate closely to guarantee the safety of both couriers and vendors and to handle customer expectations in the event of such incidents. “So, when there are ten days of bad weather in Dubai each year, everything floods. Here, we’ll handle things when they arise by being proactive

Mobility To Test In the future, with e-mobility and e-vehicles, the industry will be put to the test. Khee suggests that there are more aggregators and logistics companies to test the new waters at a larger scale. Talabat is no different. “We have equipped ourselves to drone deliveries in certain areas of Dubai. Additionally, we are investing in piloting on larger scale e-vehicles in three markets next year,” he concludes.

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DRONE

DRONES AT YOUR SERVICE Rabih Bou Rached, Founder of FEDS, on how drones will be changing the landscape of the last-mile industry

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abih founded FEDS Drone-powered Solutions and established the concept of drones as a service in 2014. Up until that point, drones were primarily used in the military, but they had so many other, and more positive, use cases like mapping, inspection, and even saving people’s lives.

When he started FEDS, they didn’t have drone regulations, so they grew alongside the industry and contributed to the local rules and regulations.

Nine years later, FEDS has served

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around 850 clients across 35 countries globally. They work with a wide range of industries such as agriculture, infrastructure, and logistics, with clients including Aramco, Saudi Electricity Company, Transco, Dubai Municipality, Nakheel, DEWA (Dubai Electricity and Water Authority), Majid Al Futtaim, and Ministry of Climate Change and Environment UAE (MoCCaE), among others.

Now, as well as growing the business regionally and internationally, FEDS is also

deeply involved in community efforts for drone regulations and legislation. He also has a passion for contributing to training the next generation of drone industry professionals.

Regional Growth The drone industry has been a transformative and disruptive force in the region that has grown exponentially in popularity and adoption. It first started with aerial media but quickly grew to include envelope surveying, inspections, progress monitoring, precision agriculture, and more as use cases.

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DRONES AT YOUR SERVICE

And soon to be logistics. The most significant avenue for growth or impact has been critical asset inspections.

But they anticipate that logistics will quickly overtake it. There’s also an opportunity for collaboration, and they have fostered strategic partnerships with global players, creating synergies that have expanded FEDS’ reach and influence on the international stage.

E-commerce & Q-commerce The most significant advantage of the MENA region is that the UAE is leading the charge in regulating urban air logistics. This empowers tech-like drones to evolve faster and fill in the gaps required by e-commerce and q-commerce’s rapid advancement.

Drones offer a fast, cost-effective solution aligned with the region’s focus on innovation and technological advances.

He expects to go from proof of concept to mass deployment quickly, which will transform the industry. In logistics specifically, drones aid in warehouse management and cargo transport using long-range and high-capacity drones and in the last mile with precise and safe drones that can be managed and monitored remotely. While in other countries, the regulations lag behind the technology, this is different. And with UAE leading the charge, the other MENA region countries will be quick to follow.

Hand-In-Hand With Last-Mile Industry Globally, FEDS witnessed over 2,000 daily deliveries in 2022, with 2024 set to mark a new era in the industry, especially in the UAE. He believes that they are trending towards faster and even faster deliveries. One can now order the new iPhone and expect it at their door within the hour. Would the next invariable step be reduced from within the next hour to within the next few minutes? And drones will enable that transition.

At FEDS, they are actively working on initiatives to make last-mile deliveries to the UAE a reality next year. They are in the process of collaborating with government bodies and organisations such as the Dubai Future Foundation’s Future Labs Initiatives, which focuses on integrating drones into various sectors and city infrastructure.

Trends And Opportunities In 2024 As Rabih mentioned before, drones have the highest impact on critical asset inspection, and this will only grow more next year. An accelerated shift toward drone-based inspection methodologies in the UAE reduces risks and ensures safer and more efficient critical infrastructure maintenance.

There would also be an opportunity to enhance emergency response and public safety by leveraging drones with thermal imaging and real-time data transmission, playing a pivotal role in search and rescue operations, emergency/ medical response, and fire and safety.

regulatory frameworks is paramount for the maturing drone industry in the UAE. This trend is expected to continue to be refined, and regulations will be implemented to ensure safety and privacy as technology advances.

Are businesses prepared to use drones?

According to Rabih, many businesses are ready but waiting for the regulations. They have seen the benefits of drones regarding safety, efficiency, and cost-effectiveness and are keen to replicate them in their industry. Like any technology-based hardware like servers or computers, they each have maintenance requirements, and one must stay on top of it because a wellmaintained machine will yield better results while ensuring safety. But that’s why one has companies like FEDS to take care of that.

FEDS has the logistics due for an overhaul once drones enter the fray. He has seen many successful pilot programs in Scotland, the USA, and Australia. He anticipates that the UAE will join that list.

Precision agriculture will drive sustainability and propel the use of drones where advanced sensors enable meticulous monitoring, crop analysis, and targeted pesticide application– enhancing productivity while minimising environmental impact.

Lastly, the ongoing development of

RABIH BOU RACHED, Founder of FEDS

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SUPPLY CHAIN

REDEFINING

DESTINATION SCALE

PROJECT MANAGEMENT /

Authored by Marco Fahd, Group Chairman and CEO, Versatile International

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estination-scale projects not only showcase a nation’s capabilities but also reflect its heritage and identity. This is particularly evident in the Middle East, where the use of natural stone in these projects is providing not just building blocks but also a vital ingredient in forging the region’s architectural identity and its march towards forward-looking development.

For asset owners, a key challenge in sourcing natural stone for these large-scale projects is ensuring that the material is delivered on time, within budget, and to the desired standard of quality while navigating the growing complexities of the global supply chain.

The impact of getting material sourcing and procurement right from the start is significant. An estimated 30 percent of overall construction globally is rework – including failure to procure materials in sufficient volume on time, replacing materials that are unfit for purpose, correcting errors made during installation and lack of coordination among contractors.

Today’s market dynamics, especially in the wake of the significant global supply chain disruptions brought by the COVID-19 pandemic, call for an agile and transparent procurement approach. Asset owners must adopt an integrated strategy in sourcing natural stones — one that aligns their vision with the evolving realities of the global market. This approach is more than just meeting timelines and budgets; it’s about upholding quality standards that define these monumental projects.

MARCO FAHD, Group Chairman and CEO of Versatile International

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REDEFINING DESTINATION SCALE PROJECT MANAGEMENT: WHY ASSET OWNERS SHOULD PRIORITIZE SUPPLY CHAIN TRANSPARENCY

The Importance of Supply Chain Transparency The foundation of effective destinationscale project management lies in the transparency of its supply chain. However, supply chains were not designed to be transparent.

Traditionally, companies and suppliers have harbored a reluctance to divulge detailed information, fearing the erosion of competitive advantage or exposure to criticism. This veil of secrecy, while seemingly beneficial in a competitive market, can inadvertently sow the seeds of inefficiency and risk, particularly in giga projects where stakes are high.

In the natural stone industry, the risks for asset developers are multifaceted.

To begin with, sourcing quality material that adheres to the project vision is critical. In the Middle East, where these projects often represent a blend of cultural heritage and modern engineering, the choice of stone is not merely a matter of aesthetics but also of authenticity and longevity.

The variability inherent in natural stone adds layers of complexity in ensuring consistency and quality.

Faced with such variability, asset developers must navigate a labyrinth of stone suppliers, each offering material of different quality. Handling a modest volume of material in this way may be straightforward; but overseeing a supply large enough to cover 100 football fields - as is often the case with destination-scale projects

- is an entirely different matter. Due to these projects’ sheer size and complex supply chain, even minor quality issues can spiral into significant schedule delays and cost overruns.

This challenge is compounded by the changing landscape of Environmental, Social, and Governance (ESG) regulations. With policies becoming more stringent in many destination countries, developers are increasingly held accountable by regulators and investors not just for their immediate practices but for their entire supply chain’s adherence to these standards.

The Saudi Stock Exchange, for example, has published a list of ESG guidance including metrics on labor management, material sourcing,

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SUPPLY CHAIN

supply-chain labor standards, and tax transparency. Neglecting transparency in the supply chain, thus, may bring potential regulatory breaches and ethical noncompliance, leading to reputational damage and the possibility of significant investment withdrawals or project cancellations.

The natural stone industry is particularly susceptible to supply chain opacity due to several inherent factors. Firstly, natural stone quarries, often located in regions with varying labor and ESG compliance standards, can pose ethical and regulatory challenges, if not properly vetted and monitored. Additionally, natural stone’s inherent variability poses a significant challenge. Quarries, even within the same region, can yield stone with considerable differences in quality and appearance. This complexity of sourcing from

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diverse geographical locations, combined with the natural variability of the product, makes transparency in the supply chain not just a matter of ethical compliance but also of ensuring the integrity and quality of the final construction project.

Getting Stone Procurement Right from the Start The escalating scale and complexity of modern-day giga projects, compounded by global supply chain disruptions and stringent ethical and regulatory demands, reveal that traditional procurement methods in material sourcing are fundamentally broken.

According to the McKinsey Global Institute, the demand for destination-scale projects is increasing, now representing 8% of the world GDP. Yet, mere 0.2% of these projects successfully have met their initial projections

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REDEFINING DESTINATION SCALE PROJECT MANAGEMENT: WHY ASSET OWNERS SHOULD PRIORITIZE SUPPLY CHAIN TRANSPARENCY

ESG practices. We inspect the stones at their source to confirm they match specifications, ensuring consistency with the project’s vision upon delivery.

By getting stone procurement right from the start, we remove supply chain risks, increase transparency for asset owners, and guarantee precision and quality in project delivery. Our partnership with the Diriyah Gate Development Authority, Saudi Arabia’s flagship cultural heritage initiative, has seen the successful completion of more than 50 projects, reflecting our commitment to managing large-scale, complex supply chain challenges in the natural stone industry.

in terms of cost, schedule, and expected benefits since the 2000s.

Asset developers need to adopt a more integrated and transparent procurement approach, one where the entire supply chain, from quarry to installation, is closely monitored and managed to ensure alignment with both the quality standard and ethical and environmental compliance.

At Versatile International, our work pioneers this innovative procurement approach. As the first fully integrated stone project management consultancy (SPMC) in the Middle East, our project governance model is designed

specifically for destination-scale asset developers. Our approach guarantees certainty of outcome by meticulously removing supply chain risks at every stage of the procurement process.

At the outset, we work closely with developers to guarantee the selected stone aligns with project requirements, considering properties such as water absorbency, tensile strength, and resistance to weathering. When potential risks surface, we offer corrective recommendations for the best procurement strategy.

During procurement, we evaluate suppliers based on material quality, delivery timeline, and appropriate

Conclusion In conclusion, our imperative is clear. Embrace a holistic, transparent procurement strategy that stands resilient and adaptable in the face of evolving market dynamics.

At Versatile International, we understand this and have in place a robust approach to natural stone procurement that significantly reduces the supply chain risk at every stage.

By adopting this approach, asset owners in the Middle East have the unique opportunity to set a global benchmark in project management.

It’s a chance to lead, showcasing how change and innovation can drive long-term success, even amidst the most challenging scenarios. In doing so, the region can demonstrate its capability not only in envisioning monumental projects but also in executing them with unmatched efficiency and foresight.

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COVER STORY

YOUR PREFERRED STALWART TRUCKING CHARIOT Joerg Mommertz, Senior Vice President, Head of Center Middle East, Africa, Latin America and CIS ( MEALA & CIS), MAN Truck & Bus SE, and Vibha Mehta discuss MAN Trucks, the trucking business, and Joerg’s journey within the MAN universe…

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t is eight in the morning, and I am sitting in the MAN Trucks UAE corporate office, ready to meet with Joerg Mommertz, the Senior Vice President, Head of Center Middle East, Africa, Latin America, and CIS (MEALA & CIS) of MAN Truck & Bus SE, over a steaming hot cup of coffee. While my crew is wrapping up Joerg’s cover photoshoot, we see that the sun has just awoken, casting dazzling rays across his visage. He is very cooperative, calm, collected, and adaptable, which are some of the most crucial traits for someone who organises and manages a significant regional affair while operating under the auspices of a worldwide brand.

We swiftly head to his cabin after the

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shoot to hear more about the company, his background, and his journey with MAN. We start talking as Joerg introduces himself and explains this job description as the Senior Vice President, Head of Center - Middle East, Africa, Latin America, and CIS (MEALA & CIS) at MAN Truck & Bus SE. This means they operate in approximately 77 countries in the MEALA & CIS region and collaborate with approximately 56 private capital importers. Having been employed by MAN since 1991, Joerg assumed this role in 2019 and proudly refers to himself as the company’s ‘old white elephant.’ Working through Russia, India, Poland, Belgium, Sweden, Germany, and finally, the Middle East, where Poland, in particular, had a significant role in Joerg’s career.

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YOUR PREFERRED STALWART TRUCKING CHARIOT

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COVER STORY

Digital Transformation At MAN Trucks, they have been embracing technology in many creative ways to revolutionise the trucking industry via efficiency and inventiveness, and the logistics sector is propelling this development. With their lengthy past, being in operation for over 130 years, they have been seen navigating with an open mindset, creativity, innovation and inventiveness.

And this drew me to the company,” Joerg points out.

Considering how technological enhancement is at the forefront at MAN, the MAN New Truck Generation series from the German vehicle manufacturer is one of the best all-around transport solutions

MAN has ever produced. It is precisely matched to the unique business needs of their customers and tailored to the needs of the drivers. The New Truck Generation is known in the market for its durability, reliability, and performance in challenging environments.

With a sparkle in his eyes, Joerg chuckled with excitement as he takes a trip down the memory lane. He recalls how MAN has been on a constant roll to deliver the best range of products in the market by embedding innovation and creativity with an open mindset. “It was at MAN that Rudolf Christian Karl Diesel created his first diesel engine.

Although the company has a long innovation history, it has always been forward-thinking and looking for new ideas and technological advancements.

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YOUR PREFERRED STALWART TRUCKING CHARIOT

Some of the highlighting factors of the MAN New Truck Generation include: • Excellent Driver Fit: The New Truck Generation offers the best workplace possible for the drivers – the most crucial link in the transportation chain, by combining exceptional ergonomics, functionality, and an iconic design.

• Great Efficiency & Economy: Their vehicle’s meagre total operating costs are primarily attributable to their lower fuel usage. Maximum productivity is also ensured when the vehicle’s robust technology can withstand harsh operating conditions and extreme climates, even in the face of a large transport capacity.

• Optimized Uptime - Innovative and digital services in combination with excellent reliability distinguish the MAN New Truck Generation. All to ensure that our customers’ vehicles have the highest levels of productivity.

• Strong Partner: The latest series also provides optimal maintenance management, tailored repair agreements, and customised transport options coupled with knowledgeable assistance, always prioritising the customer and their requirements.

The tagline ‘Simply my Truck’ for the new generation of MAN Trucks is more than just a catchphrase; it serves as a substantial basis for development to bridge the gap among various stakeholders. Joerg remembers how the MAN developers visited truck stops, service stations, and over 700 drivers to learn firsthand how the perfect workspace and living area should be planned. Professional input and individual preferences were also directly incorporated into the new series.

He scans the room for miniature models to give me a better idea of his feelings as he passionately describes the new series and the path it requires to realise that one vision. Taking one of the miniature trucks in his hands, he mentions how MAN brought about 300 domestic and foreign clients from a total of 16 different countries to Munich so that they could collaborate

with them in workshops to determine the most necessary specifications for the forthcoming model. “After comparing the varied inputs with the driver interview feedback, the developers integrated the resulting core ideas into the many trailblazing features of the MAN New Truck Generation series,” expresses Joerg.

In today’s world, MAN Trucks also come with sophisticated telematics

systems that gather data in real-time on location, fuel consumption, and engine efficiency. Then, by utilising this data, they intend to increase fleet efficiency overall and help plan maintenance and routes.

“Not only that, but MAN Trucks also provides fleet managers with cloudbased solutions that enable remote diagnostics, performance analysis, and real-time monitoring – a direction

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COVER STORY

that the leading companies in the industry are taking to become more resilient and quick innovators, making MAN Trucks stand tall,” says Joerg.

Partnerships And Collaborations Peering onto one of the picture frames adjacent to him, which depicts two men exchanging handshakes, Joerg muses on the importance of partnerships and collaborations for his growth and that of at MAN. “Our success in the Middle East is due to our efforts and exceptional collaboration with private capital importers and dealers. We have cultivated excellent relationships in the Middle East markets, characterised by long-standing loyalty and trust,” highlights Joerg.

In fact, their partnerships with countries such as Oman and Saudi Arabia have endured for over 30 years, which speaks volumes about the strength and mutual commitment of their alliances. “These partnerships are built on trust and involve investments from both sides, creating a foundation for fruitful collaboration,” specifies Joerg.

Sustainability x E-Mobility Economic and environmental considerations are becoming more and more crucial, especially when it comes to fuel efficiency.

Although MAN sincerely believes that battery-powered vehicles are the way of the future, there’s no denying that diesel engines will continue to be the primary power source for trucks in their current markets, including the Middle East.

“For this reason, year after year, we have been putting forth endless effort to maximise efficiency and lower emissions from our diesel engines through small improvements,” mentions Joerg.

And, of course, when the word sustainability spills, I was looking to know more about MAN’s plans for electric trucks. Joerg leans slightly in his chair and focuses on how the availability of a dependable charging network and the specific infrastructure

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requirements play a significant role in implementing electric mobility at different levels.

“The Middle East is becoming more upscale, and since more development is being planned and the economies are booming, we will have the opportunity to be in the right place at the right time,” indicates Joerg.

Yet, Joerg is indicative that they will begin manufacturing heavy-duty, long-haul e-trucks regularly for the Middle East shortly – allowing access to countries with even hotter temperatures, which is very important for the region to be one of them.

Trends In 2024 The potential for MAN to advance in the upcoming years is quite exceptional due to the growing trends in the transportation sector. One such development is planning a network exclusively dedicated to e-mobility, which is a complicated process requiring extensive discussions and consultations.

Numerous elements have significance in this situation, including figuring out the infrastructure needed for charging, examining daily operations, and identifying the ideal battery capacity.

Of all things, we are aware that technology is propelling the forward creation of new transportation options. Big Data, the Internet of Things, Artificial Intelligence, and Advanced Driver-Assistance Systems are a few examples.

“Under certain circumstances, I believe IoT will play a major role in autonomous driving and will eventually arrive.” He continues, “Though some have been excessively hopeful, it is currently available in certain situations; it remains to be seen whether it will spread more widely in normal traffic situations, but it will come. All those factors will thus result in a new way of looking at logistics, but logistics will still happen; the ship needs to be unloaded, and the tricky part will be getting the cargo to the warehouse, where we become involved.” Joerg concludes.

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BEHIND

THE SCENES

CAPT. RADO ANTOLOVIC, CEO at Drydocks World - Dubai

Vibha Mehta sat down exclusively with Capt. Rado Antolovic to learn about the nitty-gritty at Drydocks World

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apt. Rado Antolovic’s maritime journey began when he was inspired by his father’s role as Vice Admiral for the Yugoslav Navy. This early connection propelled him into a career anchored in the maritime world.

Growing up, the sea was an integral part of his life. His grandfather, who owned a shipyard and a fleet of cargo vessels, often took him aboard ships in the Adriatic Sea during summer breaks in Yugoslavia.

Meanwhile, his father’s role as a Vice Admiral in the Navy only deepened

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his fascination with maritime life.

These experiences served as a source of inspiration and laid the foundation for his understanding of the sea’s significance to society and the economy.

This early exposure ultimately steered him towards a career deeply rooted in the maritime world.

Armed with a PhD in Transport and Economics from Macquarie University, his professional trajectory spans decades. The subsequent chapter saw him as the Managing Director of P&O Maritime in 2013. Under his leadership, the company underwent a remarkable

turnaround, securing long-term contracts and revolutionising vessel operations and engineering. These experiences fortified his preparedness for the challenges at Drydocks World Dubai.

As CEO, he spearheaded a transformative journey, meticulously restructuring the company. From organisational dynamics to sustainability and technology, his approach rested on a long-term strategic plan, an unwavering commitment to innovation, and alignment with market needs.

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BEHIND THE SCENES

Notable Projects And Achievements Of Drydocks World Dubai This year, they celebrated their 40th anniversary. Drydocks World Dubai has reflected on a rich history of numerous achievements and milestones across ship repair, rig major maintenance and upgrades, offshore projects, and vessel conversions. With a remarkable 40 years of experience in ship repair, the company has completed over 10000 projects, averaging 300 annually, and concurrently they have managed 42 refurbishment projects. Rado has accomplished more than 250 projects in the realm of rigs and jacks. The offshore sector has completed 100 projects, earning the facility a five-star rating from the British Safety Council.

Supported by a workforce of over 11,000 own plus 5,000 subcontractors, the Yard has consistently delivered excellence.

Among the standout projects is the refurbishment of the iconic ocean liner QE2, where Drydocks World was pivotal in transforming it into a luxurious hotel, floating museum, and entertainment destination. Additionally, the recently completed HKZ Alpha and Beta topside project, a collaborative effort by Drydocks World, Petrofac, and TenneT, successfully developed two 700 MW offshore substations, integral to connecting the 1.5 GW Hollandse Kust Zuid wind farm to the Dutch grid, showcasing a significant leap in renewable energy.

enduring commitment to excellence and innovation in the maritime and offshore industries.

Facilities And Capabilities Boasting an expansive shipyard, the three gravings and one floating dock include a dock specifically designed to accommodate the world’s largest vessels, with over 3,700 meters – showcasing their commitment to handling diverse and challenging projects.

The flexibility provided by these spaces allows us to undertake a wide range of projects, from routine maintenance to complex conversions and repairs.

Drydocks’ commitment to excellence is evident in their dedicated advanced mechanical, pipe, and electrical shops and the Coating and Galvanising department for specialised coating works.

A significant addition to their capabilities is the 70,000 square meter ‘South Yard’ facility with a load-out capacity of 35,000 T, a testament to dedication and innovation. Equipped with heavy-lift cranes, including a formidable 2,000-ton floating crane, and employing advanced technologies such as robotic systems, they prioritise efficiency and precision in operations.

Partnerships Or Collaborations Drydocks World Dubai has strategically forged impactful partnerships to elevate its portfolio of EPC services and secure new prospects. A noteworthy alliance with Aker Solutions for the Petrojarl Knarr FPSO project and a pre-commitment agreement to

In a testament to its global reach, Drydocks World has been entrusted by the Montenegrin government to revitalise the former Bijela shipyard, turning it into a premium superyacht refit and maintenance facility. As Drydocks World continues to mark its 40th year, these achievements underscore its

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deliver two renewable energy platforms for Vattenfall’s Norfolk Offshore Wind Zone development in the United Kingdom underscores their commitment to delivering intricate solutions in the energy sector.

In a stride towards sustainability, the collaboration with Silverstream Technologies underscores dedication to eco-friendly practices, promoting technologies like air lubrication in ship operations.

These collaborations extend their global reach and position them at the forefront of technological innovations and sustainable practices, propelling Drydocks World Dubai as a stalwart in the maritime industry.

Emerging Trends The maritime industry is undergoing a rapid transformation, marked by a focus on sustainability, safety, and digitalisation. Looking forward, key trends include a heightened emphasis on sustainable fuels such as LNG, methanol, and hydrogen and the integration of green technologies in ship operations.

In the context of the Oil and gas sector, despite efforts to transition to cleaner energy sources, it continues to be a crucial player in the global economy.

Trends within this sector include: • A focus on offshore exploration and production.

• Navigating the transition to cleaner energy alternatives.

• Heightened commitment to environmental and social responsibility.

These perspectives underline the dynamic interplay between the maritime and drydock industries and the oil and gas sector.

Future Goals Drydocks World envisions becoming the global leader in ship repair, conversion, new building, and offshore fabrication, positioning ourselves at the forefront of the maritime industry. To

maintain a pivotal role, they prioritise continuous innovation and adaptability.

Embracing technological advancements is integral to the strategy. They have been investing in cuttingedge technologies and exploring collaborations for alternative fuel solutions to align with the industry’s shift towards sustainability. Their dedication to green practices underscores the responsibility to environmental stewardship.

Recognizing the importance of human capital, they focus on workforce development. Ensuring the teams are adept with the skills needed for emerging technologies and industry trends is paramount. They reinforce their ability to drive excellence and innovation by nurturing a skilled and knowledgeable workforce.

They have also initiated a project to retrofit small vessels with hybridbattery packages, reducing marine carbon emissions. We’re currently upgrading one of their harbour tugs with advanced battery technology.

Following this, they plan to offer retrofitting services to external clients’ vessels, like yachts and leisure crafts, using the Mina Rashid in Dubai facilities.

Safety remains paramount, with a growing reliance on digital tools and AI-driven systems for predictive maintenance and hazard identification.

Operationally, there is a clear trajectory towards increased digitalisation and automation, enhancing efficiency and fostering data-driven decision-making.

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TYRES

WHEELING AROUND WITH

CONTINENTAL In conversation with Jose De la Fuente, Managing Director from Continental Tires Middle East

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ince returning to the Middle East in 2022, Jose De la Fuente, Managing Director of Continental Tires Middle East, has prioritised fostering solid alliances with local players. He seeks to build cooperative connections to assist Continental Tires Middle East in foreseeing market trends, creating creative solutions, and immediately meeting client demands. Market expansion is still essential, and they are adjusting their strategy to fit various

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Middle Eastern subregions. Continental Tires provides unique goods and services that align with the shifting consumer preferences and emerging technologies, with innovation as a primary motivator. The company aims to improve client experiences using digital technology and offer top-notch support via fleet and retail strategies.

Tailoring Continental’s Offerings And Strategies The Middle East presents multiple

opportunities, and Jose is adapting Continental Tires’ offerings accordingly.

“For instance, we understand that the Gulf and Levante regions have distinct needs in terms of their climate and terrain, so we’re working on providing specialised products and solutions that cater to these specific markets, like our newly introduced CrossContat and UltraContact tyres,” he shares.

His focus will also be on retail and fleet sectors, which will support their partners in addressing the unique

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WHEELING AROUND WITH CONTINENTAL

in navigating the challenges of the region’s uncertainties, like raw material availability and price fluctuations.

“We’re agile in our operations and sourcing strategies to ensure continuity,” comments Jose. Moreover, he sees these challenges as opportunities to innovate within their supply chain, exploring sustainable alternatives and responsible sourcing practices.

challenges and opportunities they face in these sub-regions.

Automation Continental Tires recognises the potential of AI and IoT in improving safety and performance. Their focus remains on enhancing driver behaviour through personalised data-driven approaches. Globally, Continental is leading the conversation through ContiTech. AI is essential for Continental to meet the requirements of current megatrends such as automated driving, connectivity, electrification, and shared mobility. “It offers us tremendous opportunities to guide our company and our customers into the future of mobility.” He continues, “We anticipate further advancements

in autonomous driving technologies and aim to align our offerings with the region’s technological growth.”

‘Circle of Trust’ initiative Engaging in CSR initiatives and community outreach programs remains a core part of the company’s commitment. Partnering with organisations like the Red Crescent, UNICEF, and RTA, they aim to expand their efforts toward sustainability and safety enhancements. “Our dedication to eco-friendly products and practices underscores our commitment to the environment, and we actively collaborate with regional authorities on sustainability initiatives. Our outlook for Continental in the Middle East is optimistic. We’re committed to collaborating with regional authorities and demonstrating our commitment to sustainability, innovation, and customer-centricity. These efforts aim to solidify Continental’s position as a leader in the Middle East market,” concludes Jose.

Developing Sustainable Tyres In The Region Sustainability is a cornerstone of Jose’s strategy. Continental Tires is investing heavily in R&D to create tyres with higher sustainable material content, aiming for 100% sustainable materials in their flagship products by 2050.

He adds, “Our commitment extends beyond product development to our manufacturing processes, where we strive for a 100% carbon-neutral and responsible supply chain by 2050.”

This involves leveraging renewable energy sources and minimising waste generation. They are also heavily investing in increasing their customers’ mileage to help reduce their environmental impacts.

Navigating Supply Chain Challenges In The Region Flexibility and adaptability are crucial

JOSE DE LA FUENTE, Managing Director Continental Tires Middle East

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DISTRIBUTION

REVOLUTIONIZING

THE LOGISTICS INDUSTRY AJEX Logistics Services: Pioneering Growth and Commitment in the Logistics Industry

Regional expertise, global access In a world where connectivity defines success, AJEX Logistics Services has emerged as a Middle East specialist in express distribution and supply chain solutions.

Headquartered in Riyadh, Saudi Arabia, AJEX has firmly established itself in the regional sector through bold and well-executed strategies since its launch in 2021.

Now expanding its reach beyond the region, AJEX has established strong transport links from China, Europe and Africa, helping to cement the company’s role as a valued trade enabler, connecting businesses to the thriving Middle East markets The launch of AJEX’s most recent and ground-breaking services include its AJEX-KERRY Ocean-Express service, providing end-to-end, fast and efficient multimodal shipping options between Europe and Saudi Arabia with a ‘No Delay Guarantee’ transit time of just 16 to 22 days. AJEX also launched its Domestic Same Day and AJEX Reverse Pick-up Services earlier this year to meet the growing demand for seamless logistics solutions in

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the GCC’s maturing e-commerce markets. Moreover, AJEX has just announced the opening of its US operations and comprehensive sea and air freight services for heavy-weight shipments between the US and the Middle East region, further expanding its global reach.

“2023 has proven to be a robust year for AJEX, marked by the achievement of several crucial milestones. Our reach has expanded across the Middle East, Europe, China, and now the US, showcasing our commitment to enhancing the logistics sector and fostering economic growth on local and global scales. We take pride in being the driving force behind seamless trade, enabling businesses to thrive and communities to prosper throughout the Middle East and beyond,” said Mohammed Al Bayalti, CEO of AJEX Logistics Services.

Cold-Chain Proficiency AJEX’s distinct prowess within the Middle Eastern logistics industry is prominently showcased through its expert command of cold chain logistics. Mainly focused

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REVOLUTIONIZING THE LOGISTICS INDUSTRY

on the pharmaceutical and life sciences sectors, AJEX has etched its reputation on the bedrock of an expansive domestic network across Saudi Arabia, incorporating dedicated cold-chain services and controlled warehousing facilities in key hubs such as Dammam, Jeddah, and Riyadh. These strategically positioned facilities have been meticulously designed to cater to the intricate demands of temperaturesensitive goods, and plans are already underway to expand these capabilities to the neighbouring countries, further enhancing AJEX’s service offering.

Every facet of AJEX’s operations resonates with unwavering adherence to local and international regulations, substantiated by a team of certified professionals who skillfully manage each warehouse. A testament to AJEX’s commitment to innovation, state-ofthe-art automation mechanisms have been seamlessly integrated, ensuring the safety of material handling processes and the optimization of efficiency. A standout feature of AJEX’s technological advancements is the real-time monitoring and temperature mapping capabilities for individual pallets. This innovation particularly resonates with sectors like government and healthcare, where precision is paramount.

“Guided by our unwavering commitment to precision and excellence, AJEX delivers innovative cold chain solutions that guarantee the safe, secure and reliable transportation of temperature-sensitive goods. Our dedicated pursuit of cutting-edge technologies and relentless devotion to maintaining industry-leading standards set us apart as the trusted partner for delivering reliability and quality in every shipment,” Al Bayati commented.

Talent and Diversity AJEX actively participates in the government-led program initiated in 2021 by the Saudi Logistics Academy,

demonstrating a commitment to empowering the next generation of logistics professionals. The company’s dedication to supporting Vision 2030 objectives is evident in its pledge to hire 150 Saudi graduates who complete the program.

“Our partnership with the Saudi Logistics Academy demonstrates our commitment to supporting Vision 2030 objectives and is one of the many programs we have designed to MOHAMMED AL BAYALTI, CEO of AJEX support and develop Logistics Services young graduates. By empowering the next player in the Middle East regional generation of logistics professionals, market is a testament to its pioneering both men and women, with the spirit, commitment to growth, and knowledge and skills they need to dedication to excellence. With a strong succeed, we are supporting not only foundation, strategic partnerships, Saudization but greater gender diversity and a progressive approach to in the logistics industry. This will inclusivity and innovation, AJEX is support female empowerment and a well-positioned to continue shaping strong and more resilient logistics sector the logistics landscape and supporting for Saudi Arabia’s promising future,” regional and inter-global growth for said Albayati. years.

AJEX’s progressive approach to “Opportunities abound for AJEX and fostering diversity and empowering the Middle East’s logistics industry as women has been recognized as a we anticipate a promising future. With pioneering effort in the logistics the continuous expansion of sector. The company’s hiring and trade among Saudi Arabian and development initiatives have yielded Middle Eastern businesses and global tangible results, with 56% of its frontpartners, our prominence in the market line team members in support function is set to grow, thanks to our talented female and 42% of all employees being staff’s unwavering commitment and Saudi national, further bolstering its expertise. As we embrace the changes commitment to diversity, Saudization and progress together, we are poised to and gender inclusivity. embark on a journey of prosperity and Final Thoughts success,” Al Bayati added.

AJEX Logistics Services’ journey from its inception to becoming a prominent

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LUMI: REVOLUTIONISING THE LAND MOBILITY SECTOR

LUMI

REVOLUTIONISING THE LAND MOBILITY SECTOR Azfar Shakeel, CEO of Lumi, speaks to Logistics News ME on how Lumi is setting foot forward to develop and offer tech-driven solutions in the mobility industry…

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nder the Seera Group Holding umbrella, Lumi Rental Company began as a standalone enterprise in 2006 and provided automobile rental services to a portfolio of travel agencies. In 2016, the automobile rental company reorganised its strategic goals and recruited a team of experts to oversee operations.

With 35 car rental branches, three vehicle maintenance centres, mobile workshops, third-party vendors, digital channels, and a used car sales showroom, the business has become one of the industry leaders in the rental car sector. It serves prospects in the Central, Western, Eastern, Northern, and Southern regions.

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Three business categories comprise Lumi’s essential activities: 1. Leasing vehicles and offering associated services.

2. Renting cars and offering related services.

3. Selling old automobiles that the company owns and releases from its operations.

• Can you walk us through your background and journey in the industry?

I began my professional career more than 28 years ago. Before joining Lumi in 2016, I gained valuable expertise at Fortune 500 firms and leading Middle Eastern conglomerates. Working in both rising and recession economies in diverse sectors and multicultural situations has broadened my horizons and improved my business management skills. A solid financial background further enables me to preserve customer relationships in my current role while boosting and maintaining revenue.

• What services does Lumi offer, and what are your plans for expansion next year?

We are a young, dynamic, digitally-first business dedicated to providing the land mobility industry with a practical, tech-driven solution. Our growth strategy has always been centred on providing our

valued customers with high-quality service, whether through our cutting-edge digital services that give a seamless experience for our highly qualified and trained staff members who provide individualised care to our valued clients.

Today, a fleet of approximately 30,000 wellmaintained vehicles is displayed throughout 36 Saudi branches. At Lumi, our three primary business units include Leasing, where we offer corporate and government clients customised, affordable solutions; Car Rental, which provides motorists dependable short- and long-term rental services; and Used Car Sales, where customers can browse a range of wellmaintained used vehicles both online and in person at our showrooms.

Additionally, we launched the first motorcycle rental business in the Kingdom, offering BMW and Harley Davidson models for the more adventurous riders. 2024 will be a dynamic year for the mobility industry, with the Saudi government’s initiatives to drive more tourism and business activities, which will positively impact our sector. We are geared to meet the challenges of greater demand from an evergrowing population looking for easy, quick access to car rental and leasing services in Saudi Arabia.

• You recently collaborated with MachineTalks; can you tell us more about that?

Our collaboration with MachineTalks is part of our brand strategy to be at the forefront of driving digitisation in the automotive sector. The newly inked agreement will enable us to harness machine learning and the Internet of Things to provide our customers with a tech-savvy operational experience.

Our state-of-the-art digital channels offer a seamless experience to our customers, who can access the rental and leasing portal with a button. By analysing real-time data, MachinesTalk will be able to streamline our process and maximise vehicle utility, which will be beneficial to our stakeholders as well as our end-users.

SYED AZFAR SHAKEEL, CEO of Lumi Rental Company

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• According to you, how is the e-mobility market shaping, and what are some of the challenges and opportunities you see in the industry?

With sustainability a considerable focus in the automotive industry, Saudi Arabia is geared to reduce its carbon footprint and diversify its non-oil economy. In 2022, the Saudi government launched Ceer, the country’s first electric vehicle manufacturing company.

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LUMI: REVOLUTIONISING THE LAND MOBILITY SECTOR

At the World Economic Forum at Davos, Saudi Arabia’s Minister of Investment, Khalid Al Falih, announced the establishment of three EV production facilities in the Kingdom.

This will no doubt propel the country’s ambitious target to increase by 30 per cent the number of EVs on Saudi roads by 2030.

The Saudi Arabian government’s master plan to install EV Charging Infrastructure nationwide will benefit car rental and leasing companies such as Lumi. The switch to electric vehicles will radically change the lives of people, the planet, and our industry.

While the challenges are many, the move away from traditional modes of transport to EV offers us at Lumi great opportunities to immerse ourselves in a sector that is key to our shared green future. The government’s commitment to establishing an extensive infrastructure network is a welcome move to integrate EVs into all our lives.

• KSA is developing at lightning speed. How would you describe

the transportation industry in the country?

With the country opening its economy to new businesses and religious and leisure tourism on an upswing, the land mobility sector stands to benefit significantly from the resultant footfall.

Saudi Arabia’s Vision 2030 allows us to expand our reach and service clients nationwide. We foresee an extremely agile automation industry that will have to grow by leaps and bounds to meet the requirements brought about by the growth of the logistics and infrastructure sectors.

company, Lumi has always been committed to driving change by adapting to the requirements of an ever-evolving society. With the Saudi government committed to reducing its carbon footprint and raising the bar regionally to embrace change, we are also aligned with the excellent vision to deliver a cleaner, greener environment for our common good.

The rapid development of Saudi Arabia’s transport and logistics sector, with new roads, bridges and tunnels coming up, has expanded the reach of the urban cities today. Lumi is well positioned to meet the requirements with our vehicles available for rent or lease, providing great value for money.

• What is Lumi’s commitment to sustainability and environmental responsibility?

As a fledging car renting and leasing

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DRIVE THE NEW WAY

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.