Logistics News ME - October 2024

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LOGISTICS & TRANSPORT AWARDS 2024

Drive the new way.

New IVECO S-Way: high technology and efficiency on all missions

A wide choice of Euro III / V diesel engines, delivering class-leading power from 360 hp to 560 hp Euro III / 570 hp Euro V and superior fuel economy. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. Full range of fuel-saving devices, such as anti-idling feature, EcoSwitch, Ecoroll and Smart Alternator. Top levels of comfort and safety, with a completely redesigned and reinforced cab, featuring enhanced direct visibility and enlarged cab livability.

Nestled by the coast of Lusail sits the splendor of Raf es and Fairmont Doha, where luxury is rooted in even the smallest details. Open the doors to mesmerizing hospitality and make memories in a world of sophistication.

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Relish the Path

Recently, I listened to a podcast where a young entrepreneur shared a catchy statement. He founded his company at the age of 19 in 2012, and today, the company is valued at USD 1.4 billion. Despite his outstanding success, he mentioned that the day he finally reaches his biggest goal might be his worst. Why? Because

once it's achieved, he'd be left wondering, "What’s next?"

Many of us are consumed by the idea that true happiness and fulfilment will come once we reach that elusive "top" of our ambitions. We pour our energy into getting there, believing that it’s the end goal that matters most. Yet, when we finally arrive, we often

find ourselves reminiscing about the path that got us there—the challenges, the moments of joy, the lessons learned along the way. The true beauty of life lies in those in-between moments, not just the finish line.

Humans are wired to constantly seek more—higher achievements, bigger dreams. But in our relentless pursuit of "what's next," we risk missing the everyday wonders that make life rich and meaningful.

If we knew with certainty that we'd reach our goals in time, wouldn’t we approach the journey with more peace, enjoying the process without the pressure? I believe we would. Ultimately, as long as we keep moving forward, we will achieve what we’re working for. And if we haven’t yet, perhaps it just means our journey isn't finished.

Xiaoyue (Aya) Zhang xiaoyuezhangg

EGYPTAIR PARTNERS WITH AMAZON PAYMENT SERVICES AND BANQUE MISR

Egypt’s national airline, EGYPTAIR, Amazon Payment Services, a leader in digital payments throughout the Middle East and North Africa (MENA), and Banque Misr, the acquiring market leader in Egypt, have established a strategic partnership. Through this partnership, EGYPTAIR’s travel product will be combined with Amazon Payment Services’ range of online payment processing services, with the support of Banque Misr, to improve the online payment experience for travellers worldwide.

With technology playing an increasingly central role in today’s landscape, integrating reliable, trusted, and secure digital solutions helps deliver increased ease for businesses as they connect with high volumes of customers and scale their operations online. Facilitating seamless online transactions through this partnership, Amazon Payment Services is extending its core online payment processing services to enable all EGYPTAIR travellers across the MENA region to conveniently and securely book and pay for their tickets online.

As part of this collaboration, customers will also be able to leverage Amazon Payment Services’ instalments service to pay for their tickets in smaller, more manageable amounts. This flexible payment option serves evolving customer preferences, offering them incremental convenience including increased financial ease, accessibility, and a wide range of payment methods to choose from.

Services, commented: “We are proud to embark on this exciting journey with EGYPTAIR, and their customers, through this new partnership supported by Banque Misr. This collaboration enables us to leverage our advanced technology and leading offering to deliver innovative online payment solutions for EGYPTAIR customers. Fully integrating with EGYPTAIR’s infrastructure and empowering the company across multiple countries in MENA, our focus is on providing travellers with a seamless and secure experience through our suite of convenient payment solutions including instalments.”

As this new collaboration sets the stage for enhanced customer satisfaction and value, Amazon Payment Services continues to support Egypt’s growing digital economy and diversified financial sector. This collaboration reinforces Amazon Payment Services’ commitment to partnering up with industry leaders while empowering Egypt’s customers and businesses in the process.

SWISSPORT WELCOMES NEW CEO FOR SAUDI ARABIA

Hamad Alhemede has been appointed new CEO of Swissport Saudi Arabia, and has taken over his duties since October 1, 2024.

He joins the company from Saudi Ground Services (SGS), where he was a key member of the executive team with more than 17 years of experience. In his most recent role as Vice President of Commercial, he was instrumental in shaping the company’s strategic direction and building strong partnerships within the aviation industry. His wealth of expertise in the

aviation ground services industry will drive Swissport’s continued growth in the Kingdom, where the company aims to further expand its presence in air cargo handling, ground services, and lounge hospitality business, with particular attention to servicing Saudi carriers.

“We are pleased to welcome Hamad Alhemede as our new CEO for Saudi Arabia,” says Dirk Goovaerts, CEO of Swissport’s CEMEAI region and Global Cargo Chair. “His leadership will help Swissport to continue its successful growth story and to contribute toward Vision 2030. We

are ready to deliver operational excellence and the world-class services needed for the future of aviation in Saudi Arabia.”

In this new role, Hamad Alhemede follows Chris Browne, who will continue to support the Saudi team as new Chief Operating Officer for the Middle East region. Chris will have operational responsibility for Swissport in Saudi Arabia and also lead the business in Oman as country manager responsibility for Swissport Oman. Chris will also support the business development activities for the Middle East.

Hamad Alhemede, CEO of Swissport Saudi Arabia

UBER RUNS ON ORACLE CLOUD INFRASTRUCTURE

Uber, the largest ondemand mobility and delivery platform in the world, relies on Oracle Cloud Infrastructure (OCI) to help support the rapid growth and more than one million trips that Uber powers every hour. The company has modernised its application tier and AI infrastructure and migrated much of its operational big data and streaming stack to OCI to help it drive profitable growth, deliver new products to market, and accelerate innovation.

To help transition its core infrastructure to the cloud, the company selected Oracle in 2023 and since then has begun migrating thousands of microservices, multiple data storage platforms, and dozens of AI models to OCI.

“As we continue to grow and enter new markets, we need the flexibility to leverage a wide range of cloud services to help ensure we’re providing the best possible customer experience,” said Kamran Zargahi, senior director, Tech Strategy and Cloud Engineering, Uber. “Collaborating with Oracle has allowed us to innovate faster while managing our infrastructure costs. With OCI, our products can run on best-

of-breed infrastructure that is designed to support multi cloud environments and can scale to support profitable growth.”

Uber has achieved impressive scale, automation, and efficiency by migrating its application tripserving requests to OCI Compute with AMD and converting a considerable portion of its stateless workloads to run on OCI Compute with Ampere Arm. To further enhance the performance of its AI workloads and optimise cost, throughput, and latency for its AI services, Uber leverages OCI AI infrastructure to help power the inferencing of dozens of AI models.

Finally, the company migrated a portion of its big data Hadoop Distributed File System (HDFS) environment, one of the largest in the industry, and re-platformed its storage layer to OCI Object Storage. As a result, Uber has the flexibility to scale storage to nearly unlimited capacity with extremely high durability.

“Uber is a prime example of a forward-thinking organisation that embraces multi cloud partnerships to deliver valuable services to its customers,” said Karan Batta, senior vice president, Oracle Cloud Infrastructure. “We look forward to evolving our cloud partnership with Uber as they continue their rapid growth.”

UNITED DIESEL CELEBRATES 50 YEARS OF EXCELLENCE

United Diesel, a member of the Al Rostamani Group, proudly marked its 50th anniversary, celebrating five decades of significant contributions to the UAE’s transport and logistics sector.

To celebrate this milestone, Al Rostamani Group hosted a grand event in Dubai, attended by distinguished figures from the transport and logistics industry, senior management from Al Rostamani Group and United Diesel, as well as longstanding partners Renault Trucks, Tata Motors, UD Trucks, and Daewoo Trucks. United Diesel recognised its partners in a special ceremony, which included video messages of goodwill and appreciation from each brand.

Since its establishment in 1972, United Diesel has been providing customercentric, innovative, and advanced transport solutions, establishing itself as a leader in the UAE’s logistics infrastructure. The company has consistently set itself apart by adopting the latest global technologies to improve transport efficiency and meet the varied needs of its clients. Beyond providing high-quality

products, United Diesel has prioritised the development of comprehensive after-sales services and maintenance programs, ensuring the ongoing high performance of its vehicles.

The anniversary event featured a panel discussion with participation from Al Rostamani Group CEO Mazen Dalati, Chief Human Capital and Transformation Officer Abdulrahman Saqr, and United Diesel’s General Manager David Sawiras. They highlighted the core values of Al Rostamani Group: commitment, care, and vision, which continue to guide its strategic transformation.

Mazen Dalati, CEO of Al Rostamani Group, expressed his pride in the company’s longevity, stating:

“Only 4 percent of companies make it past 50 years, and we are incredibly proud that United Diesel has joined this exclusive club. This milestone is not just a testament to our resilience and adaptability, but also to the trust and loyalty of our customers and partners. As we look to the future, we remain committed to driving innovation and sustainability in the transport sector, ensuring that we continue to play a key role in the UAE’s growth and development.”

As it celebrates 50 years, United Diesel remains committed to expanding its product portfolio with smart, environmentally friendly transport solutions, in line with the UAE’s goals to reduce carbon emissions and achieve carbon neutrality.

Trending? What’s

Trends in cold storage supply chain and facilities development across the Gulf

The cold storage supply chain and facilities development across the Gulf region have been experiencing significant growth due to increasing demand for perishable goods, food retail expansion, and e-commerce. The Gulf

Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman, have invested heavily in cold chain infrastructure to support their growing economies and populations. Leading this growth are the UAE and Saudi Arabia, which are investing heavily

Originally written by Dr. Shereen Nassar. Edited by Vibha Mehta.

in advanced, energy-efficient facilities. Large enterprises dominate the UAE cold chain sector, primarily concentrated in Dubai and Abu Dhabi’s ports and free zones. The proximity to sea and airports, growing urban populations, and robust transportation infrastructure have spurred growth in these areas. Cold chain companies in the UAE compete based on location, cost, temperature range, product variety, warehouse infrastructure, and industry expertise. Furthermore, the UAE government supports nongovernmental organisations, relief organisations, and their manufacturers and suppliers. These services include air and ocean freight, customs clearance, warehousing, and local distribution of aid materials, thereby enhancing the logistics and cold storage sector’s overall efficiency and reach.

Furthermore, With the worldwide emphasis on sustainability, Gulf countries are exploring energy-efficient options for their cold storage facilities. This involves incorporating renewable energy sources like solar power and utilising advanced refrigeration technologies with reduced environmental impacts. Incorporating technology such as automated storage and retrieval systems (ASRS), blockchain for supply chain transparency, and IoT devices for monitoring and controlling storage conditions is becoming increasingly common in the region’s cold storage facilities. The focus on sustainability is significantly

reshaping the UAE’s cold storage sector. The industry is embracing greener solutions such as solar-powered refrigeration, advanced insulation, and smart energy management to mitigate the environmental impact of energy-intensive operations. This transition helps meet global ecological standards and promotes long-term economic stability in fluctuating energy costs.

The industry also faces a growing labour shortage, particularly challenging for the cold storage supply chain. Manual monitoring of storage equipment demands significant human resources, diverting staff from customer-focused tasks. As the labour shortage worsens, the likelihood of lapses in equipment monitoring grows, increasing the risk of temperature fluctuations going unnoticed. Such oversights can lead to significant consequences, including food spoilage, financial losses, and potential health risks for consumers. To mitigate these risks, food retailers must adopt innovative solutions that reduce the dependency on manual intervention. Automation and remote monitoring technologies offer promising alternatives. By implementing IoT devices that provide realtime temperature monitoring and alerts, retailers can ensure consistent oversight of storage conditions without heavily relying on human resources. Predictive maintenance systems can further enhance operational efficiency by

identifying potential equipment failures before they occur. These technologies safeguard food quality and allow staff to focus on activities that directly enhance customer satisfaction, thereby improving overall operational resilience.

Some countries are more developed than others, which can be due to factors like limited infrastructure, financial constraints, or regulatory challenges. Smaller economies in the region may struggle to invest in as much cold storage infrastructure as their larger neighbours. Cold storage is essential for food security in the Gulf region, where the climate is dry and agricultural capabilities are limited. Countries are investing in cold chains to ensure that imported food products are stored and distributed efficiently, reducing spoilage and waste. Governments in the Gulf are also playing a role in shaping the cold storage sector through regulations and incentives that encourage sustainable practices and investment in modern facilities.

The race for sustainability in the energy-intensive cold storage sector will likely drive further innovation and investment in green technologies. As the Gulf region continues to develop its cold chain infrastructure, it will be necessary to monitor these trends and the strategies different countries employ to stay competitive and sustainable in the global market.

Uprising TheAutomation

Can fully autonomous warehouses become a reality?

The GCC’s logistics and warehouse industry is transforming with automation technologies, where many warehouses now use partial automation, employing robots for tasks like picking and inventory tracking to enhance logistics operations. However, human intervention is still essential for decisionmaking and handling complex or unpredictable situations, which limits the full potential of warehouse automation.

Yet, with continuous advancements in robotics and AI, the vision of fully autonomous warehouses is moving closer to reality.

Key Advancements

The GCC’s logistics and warehouse automation sector is projected to grow significantly, with an expected market value of USD 1.6 billion by 2025, according to statista, underpinned by the adoption of automation technologies. KSA and the UAE lead in material handling, investing in specialised zones to

become key logistics and warehousing hubs. Growing consumer demand for e-commerce and rapid deliveries is intensifying the need for businesses to stay adaptable with automated warehouse solutions.

To meet these rising e-commerce demands, warehouses across the region are evolving rapidly. Robotic arms, mobile robotics, and automated guided vehicles (AGVs) are increasingly being used for carton handling, item picking, and order fulfilment. Next-hour delivery expectations drive flexible infrastructure adoption, helping companies stay competitive in fast-paced markets.

Originally written by Alexei Filippov, Head of Global Business Development at Yango Robotics.
Edited by Aya Zhang.
Alexei Filippov, Head of Global Business Development at Yango Robotics

Robotic capabilities have significantly improved with advancements in computer vision, sensor technology, and machine learning, allowing robots to navigate dynamic environments with greater precision. AI integration with Warehouse Management Systems improves real-time decision-making, inventory management, and predictive analytics, optimises picking, automates reordering processes, and streamlines quality control. These advancements reduce logistics costs, improve service levels, and enhance inventory management, making AI a cornerstone of warehouse automation.

AI in Continuous Learning

One key hurdle is improving robot dexterity and adaptability in unpredictable environments. Robots need advanced learning algorithms to refine their skills and improve manipulation capabilities. Seamless communication between robots and AI systems is also essential for smooth operations, alongside addressing regulatory, safety, and ethical concerns related to fully autonomous warehouses.

AI systems with continuous learning are essential for fully autonomous warehouses. As the global AI market grows, robots will become self-sufficient through machine learning, enabling them to recognize patterns, predict demand, optimise performance and workflows, and make real-time decisions through learned experiences, without external input.

In the Middle East, where AI is projected to contribute USD 320 billion by 2030, according to PwC report, technologies like generative AI are being applied to warehouses, which facilitates self-learning, and allows robots to operate with minimal human intervention and downtime. Companies are increasingly leveraging

big data and Industry 4.0 technologies to drive AI-powered automation, particularly in high-bay warehouses that support the distribution of palletized products.

How Automation Can Boost Profitability

Fully autonomous warehouses lower operational costs, enhance overall efficiency and improve safety by minimising human involvement in hazardous tasks. Automation enables faster processing, increased efficiency, and streamlined operations. McKinsey & Company reported that early adopters of AI-driven supply chains have reduced logistics costs by 15%. Customizable, scalable automation solutions help businesses optimise storage, improve accuracy, adapt to workforce fluctuations, and meet growing consumer demand for faster delivery, positioning first-movers as industry leaders poised for long-term success in a competitive market.

Future of Warehouse Automation

A fully autonomous warehouse would be a selfsustaining system where robots handle tasks like picking, sorting, and transporting goods, while AI manages overall operations. By 2025, over 4 million robots are expected to be deployed in more than 50,000 warehouses globally. Robots will manage up to 50% of e-commerce orders, significantly reducing fulfilment times and enhancing customer satisfaction. The global warehouse automation market is projected to surpass USD 30 billion by 2026, driven by AI’s ability to provide predictive maintenance, streamline decision-making, and deliver tailored solutions, positioning businesses that adopt these technologies as industry leaders.

Fully autonomous warehouses are becoming increasingly feasible with rapid advancements in AI, robotics, and automation technologies. These technologies allow companies to unlock new levels of efficiency, safety, and profitability and failure to them can leave businesses lagging behind industry leaders, as manual processes come with hidden costs. As automation adoption progresses, minimal human intervention will be required in warehouses, transforming logistics in the GCC and positioning businesses for long-term success, bringing fully autonomous warehouses closer to reality.

Evolution Transport of

The UAE transportation industry’s path towards sustainability

As the UAE continues to experience rapid urbanisation and economic growth, its transportation infrastructure is increasingly challenged by the growing demand for mobility. While the nation has made remarkable strides in developing world-class transportation networks, a paradigm shift towards sustainable solutions has become imperative. This shift is driven by environmental concerns, resource depletion, air pollution, and traffic congestion, all of which necessitate a comprehensive overhaul of the transportation sector. This transformation aligns with the UAE’s

ambitious sustainability goals, which include the country’s Net Zero by 2050 strategy.

Technology serves as a powerful toolkit for addressing the UAE’s transportation-related challenges. With the use of technologies such as digital twins, cloud computing, IoT, and AI, the country can reduce emissions, optimise infrastructure, and improve overall mobility. Digital twins, in particular, are a revolutionary technology with enormous potential to enhance the UAE’s transportation sector. By developing virtual replicas of physical assets, ranging from roads and bridges to other public transportation

Originally written by Paul King, Director of Solution Engineering, Bentley Systems.
Edited by Aya Zhang.

systems, stakeholders can obtain insights into performance, identify potential challenges, and maximise operations.

The Dubai Metro, a flagship project that has revolutionised urban mobility in the city, is an excellent illustration of digital twins in action. By leveraging this technology, the Dubai Roads and Transport Authority (RTA) can now optimise route planning, forecast maintenance requirements, and track real-time performance. Such projects truly demonstrate the revolutionary potential of digital twins to improve the sustainability and efficiency of transportation networks. Adopting this technology further will only allow the UAE to maximise resource use, lessen its impact on the environment, and enhance the general standard of living for residents.

Digital twins also represent a significant advancement in the transportation industry, as they have the potential to enhance asset performance, increase reliability, and optimise maintenance strategies. In this context, rail and transit owner-operators are likely to reap the most benefits from digital twins by adopting them from the early stage of design and engineering and taking it through the lifecycle of construction, operations, and maintenance.

An example of a city-level digital twin initiative is the Cross River Rail project in Brisbane, Australia, supported by Bentley Systems’ technology. This project involves the construction of a 10.2-kilometer railway, including a 5.9-kilometer tunnel beneath the Brisbane River. It encompasses the addition of six new stations (four underground and two surface) and upgrades to six existing stations. With a budget of AUD 5.4 billion, construction began in 2019 with an operational target of 2025.

The project places a strong emphasis on employing multi-environment digital twins that maintain continuous communication. This approach not only aids in digital engineering, but also enhances understanding of how proposed assets interact with associated infrastructure.

Shaping a sustainable transportation sector requires a collaborative effort from government agencies, private sector companies, and the general public, backed by innovative policies, cooperative partnerships, and data-driven decision-making. The UAE’s commitment to sustainability, along with its technological prowess, makes the country a global leader in this regard and enables it to meet future demands. By making extensive investments in research and development to create a robust, eco-friendly, and effective transportation system, the nation is moving closer to its cleaner transportation goals.

Powering Progress

IVECO and Arabian Auto Agency supply 150 IVECO S-Way units to Saeed Mohammed Al Bassami Company in Saudi Arabia

IVECO and Arabian Auto Agency (AAA), official dealer in the Kingdom of Saudi Arabia, just started the delivery of 150 units of IVECO S-Way tractor head, model AT440S47T ON, to Saeed Mohammed Bassami (SMB) at their facility in Jeddah. SMB plays a vital role in the transportation segment in the Kingdom. Mr. Sultan Albassami, the chairman of SMB, participated in the delivery ceremony.

All the IVECO S-Way have been assembled at Zeemat plant, the authorised assembly plant of IVECO trucks in Saudi Arabia. The units will join the SMB fleet for the mission for the 2024 transportation season.

Saeed Mohammed Al Bassami (SMB) is considered one of the leading transportation companies in GCC markets, providing transportation and logistics services, in a professional manner that exceeds customers’ expectations, and building long-term relationships with them.

Maan Gharaibeh, General Manager of Arabian Auto Agency, commented: “At AAA, we are delighted to reinforce our strategic partnership with Saeed Mohammed Al Bassami company, a distinguished leader in Saudi Arabia’s transport sector. The delivery of this initial fleet of IVECO S-Way vehicles is enhanced by a tailored aftersales solution

package, ensuring uninterrupted uptime for their growing fleet. Furthermore, this marks the beginning of an exciting journey between AAA and the SMB.”

Mohamed Tarzi, Sales Manager at the ZMS group, expressed his satisfaction with the deal: “This partnership is a testament to the trust that Saeed Mohamed Al-Bassami Company has placed in AAA and the capabilities of IVECO trucks. We are confident that these vehicles will meet and exceed the company’s expectations.”

supporting SMB’s operations and strengthening our partnership in the future.”

IVECO S-Way: The Driver-Centric Heavy-Duty Truck

Antonio Caruso, IVECO Business Manager for Saudi Arabia, added: “After several success stories scored in Saudi Arabia during the last years, our partner Arabian Auto Agency (AAA) in the Kingdom of Saudi Arabia has successfully commenced the delivery of 150 IVECO S-Way to Saeed Mohammed Bassami. Our collaboration with SMB is a demonstration of our commitment and reliability in providing the best transport solution. We always prioritise quality and excellent service to meet our customer’s business needs. We look forward to

IVECO S-Way is the new onroad vehicle of the new IVECO Way range, the ideal business solution for the fleet owner, and the perfect travel companion for the driver. It further increases its fuel efficiency, which was already among the best, with a new engine line-up and next generation rear axle, advanced technologies tailored to the customers’ needs. It builds on the success this range has achieved since its European launch in 2019 and has proved extremely popular with drivers for its high levels of comfort. Customers appreciate the improvements in performance and in Total Cost of Ownership (TCO) that come with high

reliability of new trucks.

In the face of fierce competition, logistics operators need top-level uptime, efficiency and productivity from their fleets. The new IVECO S-Way perfectly meets this requirement, providing a complete package of features without equal, developed with focus on driver centricity. It is more than a product: it offers a business model that covers the vehicle’s entire life cycle and helps IVECO’s customers to meet their own customers’ requirements.

Designed To Maximise Fuel Efficiency

In redesigning the cab from the ground up, IVECO has taken every opportunity to deliver cost savings and productivity gains to the benefit of the owner’s profitability. All the elements of the new design work together to achieve a

superior aerodynamic performance and deliver fuel savings up to 4% on top of the outstanding fuel efficiency that is the hallmark of this product family.

Every detail of the cab exterior has been studied with care to minimise air resistance. The new roof is perfectly integrated into the front end of the vehicle, presenting a flat surface that minimises drag. Even the retractable front step that provides easy access to the windshield completely disappears when not in use. The front grille with high radius corners and side fins, the integrated headlights, the new bumpers design with integrated deflectors, together with the new design of the wheel arches, create flowing lines that optimise air flow – and make a statement with a distinctive style. The vehicle’s aerodynamic performance is further enhanced by additional features that reduce drag by closing gaps. They include the optimised aerodynamic kit with rubber extensions to close up the space between tractor and semi trailer.

The new design of the door, which extends all the way down to the second step, creates a smooth surface on the sides of the cab, reducing turbulence at cruising speed.

A New Cab Designed Around The Driver To Provide Superior Driving Comfort On Board

The IVECO S-Way carries over all the advances introduced in the previous generations and adds a new cab entirely redesigned around the driver to provide the ultimate driving environment with outstanding ergonomics and controls layout.

The ergonomic layout of the controls ensures all the key functions are within easy reach of the driver. The multi functional steering wheel, with 22 switches, puts all the necessary functions at the driver’s fingertips.

This set-up eliminates distractions for the driver who can operate without ever needing to move his hands from the steering wheel. The dashboard and central stack have been redesigned to improve operating comfort and efficiency with a new layout and greatly increased functionalities. The new Start/Stop engine button and the slot for the electronic key with integrated remote control are conveniently placed on the dashboard near the DNR area.

The redesigned roof, lower tunnel and shaped upper shelf provide a comfortable standing height of 2.15 metres in the centre of the cabin, while the upper longitudinal usable space is 35 cm wider than in the previous model, providing easier access to the upper bed and compartments.

The night area combines functionality and comfort with its new symmetrical layout and well-placed storage, USB connections and controls.

The air conditioning system, and integrated parking cooler and heater systems ensure an ideal internal climate within the cab in all weather conditions, when driving or during stops.

Designed For Driver Safety

The IVECO S-Way has been developed with a strong focus on the driver, and the new cab has been redesigned and reinforced to ensure high levels of passive safety, with mechanical resistance compliant with ECE R29.03 cab crash standards.

The new design also provides much improved direct visibility for the driver with the one-piece side windows and rear view mirrors. The IVECO S-Way also offers full LED lights, which have a much sharper beam that carries further, improving visibility and obstacle perception by 15%, further enhancing safety in lowlight conditions. In addition, the IVECO S-Way features

a complete array of Advanced Driver Assistance Systems to help the driver operate the vehicle efficiently and safely while reducing fatigue on the road. The cab also addresses security when the vehicle is parked with the new design of the door which now extends all the WAY down, leaving only the bottom step exposed, and includes an additional mechanical door lock inside the cab.

A Renewed Line-Up For High Business Productivity And TCO Performer

The new engine line-up meets Euro III / V emissions standards. The Cursor 9 and 13 engines provide a wide range of power ratings starting from 360 hp to 560/570 hp. The engine efficiency has been improved with the introduction of the Common Rail injection system.

The 9 and 13-litre engines have been coupled with new, high-efficiency Hi-Tronix 12 speeds automated gearbox which enables substantial improvement in electronic clutch control, resulting in greater efficiency, enhanced durability and better performances.

Additional features contribute to the IVECO S-Way’s fuel economy. They include the new Ecoroll function which automatically disengages driveline in smooth slope to exploit vehicle inertia, Ecoswitch which optimises engine power/torque output according to vehicle load and mission, and Tyre Pressure Monitoring system to keep under control the pressure of each tyre for increased safety and fuel efficiency.

Creating Connections

Marwan Abdulaziz Janahi, Senior Vice President of Dubai Science Park at TECOM Group PJSC, sits with LNME to talk about how Dubai Science Park is revolutionising the logistics landscape in the UAE

Can you give us an overview of Dubai Science Park and its role in UAE’s logistics industry?

The Middle East and North Africa region is a vital market for international businesses, and the UAE offers a ready gateway to drive business growth. In addition to consumers seeking faster reactions and service in the e-commerce era, there is an influx of foreign direct investment (FDI) in the UAE’s logistics industry, which is expected to reach AED 110.8 billion in 2030 according to Mordor Intelligence.

The local logistics sector is buoyed by Dubai’s comprehensive travel, mobility, and logistics infrastructure, central to providing access to more than two-thirds of the global population within an eight-hour flight.

At Dubai Science Park, established by TECOM Group PJSC in 2005, we understand that efficient logistics

are crucial to the success of vital economic industries, including the life, energy, and environment science sectors that we serve.

We have designed our facilities to provide comprehensive solutions for the storage and distribution needs of more than 500 customers, including AstraZeneca, Pfizer, BeiGene, GE Healthcare, and Virax Biolabs, to access target markets within the region and beyond while reinforcing resilient business operations. As demand grows for our robust, plugand-play infrastructure, we are tailoring our solutions to address the needs of businesses of all sizes.

Dubai Science Park’s ongoing expansion project aims to increase its storage and logistics capacity by 147%, what impact will this have?

Pharmaceutical and healthcare companies are increasingly developing products and solutions

in line with regional market requirements. This is enabled by strategic support such as Dubai Research and Development Programme and Dubai Economic Agenda ‘D33’, which seek to nurture the local R&D sector to deliver globally impactful innovation.

We are adapting Dubai Science Park’s ecosystem to support this drive by adding 200,000 sq.ft. of storage and logistics spaces equipped with high load power capacity to support customers seeking regional expansion. Our proximity to key transport hubs such as the Al Maktoum International Airport, which upon the completion of its expansion will handle 12 million tonnes of freight, is another boon for businesses. Our infrastructure is designed to support customers across the product development journey, from manufacturing to storage and distribution, unlocking growth.

These pathways are further strengthened by the interoperability offered to customers within TECOM Group’s ecosystem, which includes 10 business districts including Dubai Internet City, Dubai Knowledge Park, and Dubai Design District (d3).

Himalaya is a prime example of a company benefiting from this environment. The Indian wellness brand, which operates a global R&D centre spanning 92,000 sq.ft. in our community, is now expanding its manufacturing footprint with an AED 200 million plant under development at our sister district for the manufacturing sector, Dubai Industrial City.

The factory will work closely with the Dubai

Science Park Centre, allowing its talent at both locations to collaborate in new product development, scale-up activities, and technology transfer, demonstrating how a strong logistics network can facilitate the translation of scientific innovations and business expansion.

As regional R&D in healthcare, biotechnology, and pharmaceuticals grows, what specialised logistics infrastructure is necessary to support this expansion? How is Dubai Science Park ensuring that its logistics capabilities meet these evolving needs? The regional R&D landscape requires a cohesive ecosystem combining purpose-built logistics infrastructure with a collaborative community to power innovation and sustainable growth. Those are the very foundations upon which Dubai Science Park is built. Our laboratory complex, for example, features LEED-certified labs and allows companies to experiment and develop innovative products, while businesses such as Himalaya and Firmenich have constructed dedicated headquarters to innovate locally.

Dubai Science Park also provides comprehensive storage and logistics solutions, including the new expansion, to simplify distribution, as well as the D/ Quarters co-working spaces to nurture collaborative innovation, and in5 Science, the industry-dedicated vertical of TECOM Group’s in5 start-up incubator.

This means customers within our district can connect to TECOM Group’s larger business network, which includes a comprehensive manufacturing

ecosystem at Dubai Industrial City, a pool of talent and researchers at Dubai Knowledge Park and Dubai International Academic City, and future-focused technologists at Dubai Internet City.

Customers at Dubai Science Park are uniquely positioned to collaborate, exchange knowledge, and share talent and resources that drive individual and collective success by leveraging our collaborative ecosystems.

How are shifts in research and innovation, including personalised healthcare and biotech developments, driving demand for advanced logistics solutions?

The rise in personalised healthcare and biotech developments has led to a paradigm shift in the life sciences, embracing more personalised and targeted interventions, as our white paper titled ‘The UAE Healthcare Ecosystem’, developed in collaboration with EY and launched at Arab Health in January 2024, reveals. The white paper notes there is great opportunity to leverage healthcare data, which accounts for 30% of all data generated globally, and this shift to patient-centric healthcare is driving demand for customised logistics, requiring businesses to embrace a more complex manufacturing and supply chain process.

Logistics demand from the science sectors will further grow as Dubai reaffirms its role as a world-class healthcare tourism destination. Dubai welcomed more than 691,000 international medical tourists in 2023, with total spending on healthcare services surpassing AED 1 billion, according to the Dubai Health Authority.

As investor and consumer confidence grows in Dubai’s diversified healthcare landscape, particularly in the era of personalised medicine, demand for advanced manufacturing and logistics solutions will grow, too, and Dubai Science Park’s expansion actively addresses these needs.

With the UAE’s emphasis on building a knowledge-based economy, how do you see advanced logistics contributing to the development of a holistic innovation ecosystem across industries?

Advanced logistics are crucial for the progression of a knowledge-based economy, and a robust supply chain framework can accelerate the innovation journey from the lab to the market, driving economic growth. It aids in creating an environment conducive to the entire innovation cycle – including development, production, storage, and distribution –under one roof.

By providing the infrastructure and logistics solutions essential to a thriving R&D ecosystem, Dubai can attract a larger cohort of world-class businesses and talent and facilitate a sustainable cycle of innovation, collaboration, and competition that feeds the knowledge-based economy and reinforces confidence in Dubai’s position as a global FDI hub.

As sustainability becomes increasingly important in logistics, what steps is Dubai Science Park taking to ensure its logistics operations are environmentally friendly?

We encourage sustainable practices across our operations at Dubai Science Park. Our LEED-certified laboratory complex offers shell and core spaces equipped with air exhaust and ventilation systems, acid-resistant drainage, and a pH neutralisation system to empower R&D while curtailing negative environmental impact.

One of our significant milestones was the successful completion of a solar project in 2023 at Dubai Science Park, which added 0.576 MWp of clean energy to our portfolio. Our commitment to sustainability starts from the top, and our efforts are closely aligned with TECOM Group’s robust environmental, social and governance (ESG) frameworks, reflecting our commitment to a more sustainable and equitable future for all, empowered by the sciences.

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Presented

The LNME Connect 2024 and the Logistics & Transport Awards 2024 were both held on September 26th at Al Habtoor Palace, Dubai. It was an accelerating event, acknowledging the top advancements in the logistics industry in the region and celebrating the top players of the field.

The logistics industry is undergoing a thrilling transformation, especially with visionary projects across the region like Saudi Arabia’s Vision 2030 and the UAE efforts in establishing the country as a logistics hub. The UAEs’ freight and logistics market is set to be valued at around USD 20.03 billion in 2024 and the industry is projected to reach approximately USD 27.51 billion by 2029. From futuristic ports and free zones to the rise of

autonomous technologies and AI-driven supply chains, the Middle East is becoming a trailblazer in logistics. Furthermore, as e-commerce booms and infrastructure modernises, the region is redefining how goods move across the globe, cementing its role as a key player in the logistics industry.

The Forum in the morning started with a compelling keynote speech by Mourad Hedna, President of UD Trucks Middle East and North Africa, followed by four panels discussing the region’s most relevant topics. After that, the day concluded with a prestigious awards ceremony, where companies, projects, and individuals were honoured for their exceptional contributions, further solidifying the region’s commitment to taking the industry into the next level.

Photography by: Alexander Bungas and Eduardo Buenagua.

Panel 1: Resilience in Supply Chains: Lessons from Recent Disruptions

Recent global events, ranging from geopolitical tensions to the Red Sea crisis, have significantly disrupted supply chains. For instance, blockages in key trade routes have led to delays, heightened costs, and supply shortages. This panel explored the ramifications of these disruptions, drawing lessons from the responses of other stakeholders.

By developing effective strategies, the discussion aimed to better prepare for and mitigate the impact of future challenges.

This panel included the following speakers:

Farooq Shaikh CEO, LogiPoint

Talha Malik

Director of Project Logistics - Middle East, GEODIS

Morsi Berguiga

Partner, Head of Transport & Logistics, KPMG Lower Gulf

Laurance Langdon

General Manager, MFC Group

Panel 2: The Impact of Free Zones on UAE Logistics: Opportunities and Challenges

The establishment and expansion of free zones are influencing the UAE’s logistics operations. The conversation focused on their benefits, such as tax incentives and streamlined customs procedures, which enhance efficiency and attract foreign investment. However, it also addressed challenges like regulatory complexities and infrastructure needs that arise from the rapid expansion of these logistics hubs. Participants discussed strategies to leverage opportunities while mitigating risks in this evolving landscape.

The lineup for this panel featured:

Yasmin Fraij Trade Control Manager - UAE, Kuehne+Nagel

Prateem Sengupta

Director - Direct & International Tax, Andersen

Moderator: Bassant Zeineldeen, Senior Media Editor, The Ports, Customs and Free Zone Corporation

Moderator: Marwa Kaabour, Group Head of Marketing and Corporate Communication, Al Masaood LLC.

Panel 3: E-Commerce Logistics: The Next Frontier in Speed and Efficiency

As the UAE e-commerce market is expected to surpass AED 48.8 billion by 2028, the panel discussed the significant changes observed in the industry over the past few years. Speakers addressed how companies are adapting to the increasing demands for faster delivery times while maintaining cost efficiency and quality, the technologies reshaping logistics, and effective strategies for enhancing visibility across the supply chain to meet consumer demands for greater transparency.

This panel discussion highlighted contributions from:

Hani El Tannir CEO, Al Masaood Group Industrial

Adrian Peiris Business ManagerContract Logistics, GAC Qatar

Marwan Khalife Business Development Manager, LogSquare

Tia Zhang GM - UAE & China, AJEX Logistics Services

Moderator: Vibha Mehta, Editor-in-Chief, Construction Business News ME and Logistics News ME

Panel

4:

Autonomous Logistics: The Future of Drones and Robotics in 3PL

How will drones and robotics revolutionise third-party logistics? Panellists pointed out the evolving role of such technologies, the challenges companies encounter during implementation, and the accessibility of autonomous solutions for smaller logistics providers seeking a competitive advantage. Additionally, the conversation touched on crucial considerations for ensuring the security and safety of drones and robotic systems within logistics operations, paving the way for a more efficient and innovative logistics landscape.

Among the speakers on this panel were:

Julia Bespala Head of Marketing, Yango Robotics

Amar Rizvi CSO, iMile Delivery

Angad Singh Global Director - Innovation and Emerging Technology, Aramex

Nasiba Alshukairy Group Executive Director of StrategyInvestment & Innovation, 7X

Shadi El Abdallah Regional DirectorBusiness Development, Regent

Moderator: Andy Palanisamy, Chief of Innovation & Technology / Board Advisor, Obsession

WAREHOUSE OF THE YEAR

ALS LOGISTICS SOLUTIONS

ALS Logistics Solutions designed and automated the first Smart Logistics Distribution Center in the pharmaceutical industry across the MENA region.

This advanced facility is equipped with temperaturecontrolled logistics and automated order fulfilment, utilising the latest technology to help Al Dawaa ensure

medical security in line with international standards. Smart technology is integrated into material handling systems, enabling item weighing, dimensioning, and scanning.

Their software seamlessly connects all aspects of intralogistics, offering serial number and batch tracking, expiration date verification, and cold chain management.

The company achieved a 138% revenue increase in 2024, excelling in cold chain express logistics with real-time temperature monitoring. They operate temperature-controlled facilities in Riyadh, Dammam, Jeddah, Dubai, and Manama, ensuring safe handling of sensitive goods like pharmaceuticals and food. Their Platinum GDP Certification from MARKEN highlights their compliance and reliability,

making them the first in the UAE and Saudi Arabia to earn this recognition.

As a leading express logistics provider, AJEX offers fast, efficient delivery solutions across the region, specialising in time-sensitive shipments. Their robust network and advanced technology ensure timely, secure deliveries for a wide range of industries.

TECH

INNOVATOR IN SUPPLY CHAIN

SAVOYE has transformed the logistics industry with advanced automated warehouse technologies and supply chain software, driving increased pricing power and profit margins. In 2023, they partnered with

NewEast General Trading L.L.C. to deploy Autonomous Case-handling Robots (ACR) at the Dubai Distribution Centre, the first in the Middle East, boosting efficiency and order accuracy.

As a tech innovator in supply chain, SAVOYE consistently pushes the boundaries by integrating AI-driven solutions to optimise logistics operations. Their cutting-edge systems streamline processes from inventory management to delivery, setting new standards in supply chain automation.

The company is an innovative leader in freight forwarding and logistics, serving emerging markets with comprehensive services including ocean, air, and road freight, customs clearance, and warehousing. Their expertise spans sectors like automotive, food, industrial, life sciences, and technology.

By focusing on customer success and reliable service, they have become a trusted partner for international and domestic logistics solutions. Their commitment to leveraging technology and sustainability further strengthens their position as a key player in the global logistics landscape.

DISRUPTOR IN LAST-MILE INDUSTRY

The company excels in cross-border logistics, with over 600 vehicles, 600 couriers, 2 airport hubs, and 10 delivery centres across the UAE. They offer regional and international delivery to over 200 destinations, leveraging strong operation centres and customs offices. Positioned as a key player in the GCC,

the company ensures fast 2-4 day transit times by managing the entire process from first mile to last mile, including customs clearance.

Their dedication to efficiency and customer satisfaction has made them a trusted partner for businesses seeking reliable logistics solutions in the region.

BREAK BULK OPERATOR OF THE YEAR

SAI WAN SHIPPING

Sai Wan Shipping operates its own fleet and offers cargo chartering services, specialising in break bulk operations for large or heavy cargo.

Headquartered in Hong Kong with a key office in Dubai, they are expanding globally while delivering exceptional service.

Their commitment to innovation allows them to handle complex shipping challenges, ensuring seamless operations for oversized and heavy cargo. With a strong emphasis on sustainability and cutting-edge technology, they continue to enhance their global presence, making them a frontrunner for this award.

PORT OF THE YEAR DP WORLD

DP World is a leading UAE-based multinational logistics company and one of the largest global port operators, headquartered in Dubai. Specialising in cargo logistics, port operations, maritime services, and economic zones, they have grown into a global logistics powerhouse since their formation in 2005. With over 50 years of experience in the GCC, they handle 70 million containers annually and operate in more than 75 countries,

running nearly 150 businesses worldwide.

Their ability to manage vast, complex supply chains has earned them a reputation for efficiency and reliability in the logistics sector. They continue to invest in digital transformation and sustainability, ensuring they remain at the forefront of industry innovation. This commitment to excellence makes them a driving force in the global logistics landscape.

TECH SOLUTION PROVIDER IN LOGISTICS AND SUPPLY CHAIN INDUSTRY

Aramex is a trailblazer in logistics technology, leveraging AI, data analytics, and automation to boost efficiency and elevate the customer experience. With robotics-driven smart warehouses, optimised route planning, and real-time tracking, they streamline operations to provide seamless solutions for e-commerce and global trade.

As a top tech provider in logistics, they use cloud-based platforms and machine learning to improve supply chain transparency and operational accuracy. Their cutting-edge systems enhance package sorting, last-mile delivery, and predictive analytics, enabling better demand forecasting and resource management.

SeaLead began as a regional vessel operator and has since embarked on an impressive journey in the global container shipping industry. Initially, they secured slots on mainliner and feeder services to meet the demands of their valued customers. Over a short period, they have experienced remarkable growth, and their dedication to delivering high-quality, efficient,

and timely shipping solutions has positioned them as a leader in the sector.

Their expanding global network and strategic partnerships have further enhanced their capabilities, allowing them to meet evolving market demands. With a focus on innovation and sustainability, they continue to set new standards in the shipping industry.

The company stands out in last-mile logistics by providing exceptional value, speed, and customer satisfaction. Utilising advanced technology and a customer-centric approach, they have created a last-mile solution that goes beyond conventional logistics. Their strong network and real-time tracking capabilities guarantee

transparency and prompt deliveries, improving the overall customer experience.

Their focus on excellence, along with value-added services like contactless delivery and flexible scheduling, positions them as a top contender for the Last Mile Logistics Company of the Year award.

BEST AUTOMOBILE COMPANY

AL MASAOOD COMMERCIAL VEHICLES & EQUIPMENT CVE

The organisation secured a TCM agency contract covering the entire UAE and was recognised for exceeding its target goals. As a leading player in the waste management industry, with over 500 units in operation, the company has strengthened its after sales services by entering into agreements with

government bodies, private and semi-government sectors, oil companies, and various industrial and commercial organisations.

The company now holds a 35% market share in the heavy-duty sector and has increased its Spare Parts stock turnover ratio from 1.03 in 2018 to 7.25 in 2024.

AIR FREIGHT PROVIDER OF THE YEAR

DP WORLD LOGISTICS GCC

The company is a leading air freight provider serving businesses across the GCC region. Strategically located in the rapidly growing Middle East, they leverage advanced IT platforms and a diverse range of air

transportation solutions to ensure efficient and timely deliveries.

With over 40 years of expertise in the logistics industry, they offer air cargo handling, cross-docking, customs clearance, and freight forwarding. This combination

of experience, technology, and commitment to customer satisfaction positions them as a top air freight provider in the region. Additionally, their focus on sustainability and innovation ensures they remain ahead in a competitive market.

AIR CARGO OPERATOR OF THE YEAR ETIHAD CARGO

In 2024, Etihad Cargo reinforced its position in the UAE’s logistics and trade industries, achieving a 17% increase in overall tonnage compared to the previous year. Significant growth was observed regionally, especially in the East, which also saw a 17% rise in tonnage. Meanwhile, the Western region and the UAE overall recorded impressive increases of 20% and 25%, respectively.

By strategically expanding its network, introducing innovative products, and forming essential partnerships, the organisation has enhanced Abu Dhabi’s status as a vital centre in global trade. This submission showcases the company’s commitment to supporting the UAE’s ambitious objectives and its steadfast dedication to excellence and customer satisfaction.

LOGISTICS ENABLEMENT PLATFORM OF THE YEAR

The platform “Waslah,” meaning “connection” in Arabic, emerges as an exceptional solution for businesses, SMEs, and individuals looking to optimise their logistics operations. Its comprehensive features not only cater to shipping and last-mile delivery requirements but also foster broader commercial success, particularly in the highly competitive e-commerce landscape.

7X’s platform harnesses advanced technologies for optimised route planning, consolidated shipments, and real-time smart tracking. Waslah enables users to secure better rates and volume discounts with partner operators, potentially reducing delivery costs by up to 70%. Additionally, its seamless integration with leading e-commerce POS platforms and marketplaces streamlines workflows, allowing users to manage inventories, track orders, and handle returns with ease.

EXCELLENCE IN FLEET SOLUTION UD TRUCKS

UD Trucks is a leader in fleet solutions, offering innovative and reliable transportation for businesses across various sectors. Known for their durable and fuel-efficient vehicles, the company supports industries such as logistics and heavyduty transport. Their advanced telematics system provides real-time data on vehicle performance, fuel consumption, and

driver behaviour, helping fleet managers optimise routes and improve productivity.

With a commitment to innovation, customer satisfaction, and reliable service, the company continues to set the standard in fleet management, making them a trusted partner for businesses aiming for efficiency and excellence.

LOGISTICS CONSULTANT FIRM OF THE YEAR

HOUSE OF SHIPPING

House of Shipping is a prominent consultancy firm specialising in business advisory services for the maritime, shipping, and logistics sectors. The team possesses a broad range of expertise, including legal services, human resources, finance and taxation, information technology, process transformation, and marketing.

The company offers tailored solutions for both emerging and established businesses, ensuring every client receives the necessary support to thrive. What distinguishes them is their unique approach, integrating extensive industry knowledge with cutting-edge technology to provide comprehensive assistance, helping clients achieve their strategic objectives and enhance overall performance.

ENVIRONMENTAL EXCELLENCE AWARD GREEN BOX CONTAINERS

The company has quickly risen to prominence as a leading manufacturer of modular buildings in the UAE, specialising in transforming ISO shipping containers into adaptable spaces such as offices, cafes, clinics, and homes. Their expertise encompasses container conversion, the reuse of shipping containers, sustainable construction, container sales, and container architecture.

They provide innovative and eco-friendly solutions that serve a global market, offering both portable and permanent options.

They are dedicated to recycling and repurposing old shipping containers. By minimising waste and lowering environmental impact, they actively promote ecological responsibility and resource conservation.

GLOBAL TRADE HUB OF THE YEAR LOGIPOINT KSA

LogiPoint has long benefited from a prime strategic position along the world’s shipping routes. This advantageous location has become even more critical over the past year, as international conflicts have disrupted these vital trade corridors.

As regional instability has impacted the Red Sea routes, international shipping has faced

major upheaval. During this challenging time, the company collaborated with trade stakeholders to operationalize the Saudi land bridge, establishing a bonded corridor between the Arabian Gulf ports and the Red Sea port of Jeddah. This initiative offers shippers a faster, scalable alternative that could remain beneficial even after the Red Sea corridor returns to normal.

LOGISTICS COMPANY OF THE YEAR

DHL GLOBAL FORWARDING

In the past year, DHL Global Forwarding has achieved significant milestones, including a strategic 20-year partnership with Etihad Rail to reduce carbon emissions in road transport by 21% by 2050. They launched the UAE’s first

electric truck through their platform, Saloodo!, and acquired Danzas AEI Emirates, enhancing their logistics capabilities.

Committed to social responsibility, the company established the Ubuntu

Academy for underprivileged youth and supported flood relief in the Northern UAE. These efforts have earned them recognition in the Middle East, reinforcing their crucial role in regional economic development.

Inside the Pulse of Amazon

Abdo Chlala, Country Manager at Amazon Saudi Arabia, takes us on an in-depth look at the company’s operations and future ambitions

E-Commerce Growth in Saudi Arabia

Saudi Arabia is one of the largest and fastest-growing e-commerce markets in the region. Government data indicates that almost two out of three people in the Kingdom shop online today at leading sites such as Amazon.sa.

There are a number of factors that contribute to the growth of the country’s online retail sector. At 99%, Saudi Arabia has one of highest internet penetration rates in the world, making online shopping more accessible to customers. This is especially attractive to the Kingdom’s young and tech savvy youth population who seek convenience, a wide selection of products, and attractive offers. At Amazon, the company continues to innovate across these pillars to deliver what customers want.

Furthermore, the development of logistics infrastructure and technology in Saudi Arabia has contributed to a more seamless experience for customers, thus leading to the boom.

The availability of more reliable and popular online payment options is another factor that has made online retail more appealing to customers. Underlying all these developments is the government’s investment in the digital transformation of the economy through its Vision 2030 goal of a diversified future.

Today’s Trend

With e-commerce projected to account for over 25% of retail sales by 2035, compared to 10% currently, as reported by McKinsey, building efficiencies in the last mile has become a critical factor for businesses

to remain competitive and deliver superior customer experiences.

Technology is the key to building robust last mile operations. Data and predictive analytics, AI and 5G connectivity, provide prescriptive solutions for the smooth movement and delivery of packages. Another recent trend in Saudi Arabia’s last mile delivery is flexible delivery options, with customers having the option to choose dates and time of delivery. Today’s customers want to buy from businesses that understand who they are and what they need. As the online retail sector continues to grow, these trends

Abdo Chlala, Country Manager at Amazon Saudi Arabia

will further drive the last mile to become even more seamless and efficient.

Fueling Saudi Vision 2030

Since the launch of Amazon.sa in 2020, it has been committed to Saudi Arabia’s vision for a diversified future, with investments designed to deliver socioeconomic impact. Amazon focuses on giving customers what they want – a wide selection of products, low prices, and fast delivery – making it attractive for more customers in Saudi Arabia to shop online, while also strengthening the Kingdom’s payments sector by encouraging Saudi customers to move towards digital payments.

Supporting local SMEs is a fundamental part of Amazon’s work and contributes towards the Vision 2030 goal to increase SME contribution to the Kingdom’s GDP from 20% to 35%. The company enables entrepreneurs and startups in Saudi Arabia to use its tools, services and programs to grow their business online. In fact, Amazon is working closely with Monsha’at, and MISA to empower 40,000 SMEs by 2025, connecting them with millions of Amazon. sa customers.

Amazon recently rolled out its ‘Saudi Made’ storefront featuring thousands of locally manufactured products making it easier for customers to support local businesses. As its network grows, it provides opportunities for more entrepreneurs and SMBs in the logistics and delivery business in Saudi Arabia to utilise its infrastructure,

technology and training, enabling them to scale their businesses as Amazon’s Delivery Service Partner.

Additionally, the company is invested in nurturing the Kingdom’s talent by offering its employees a variety of roles where they can learn in-demand skills and pursue a range of career paths – from technology and analytics to delivery and supply chain roles.

Investments in Technology and Innovation

Amazon brings over 25 years of global logistics technology and innovation to Saudi Arabia in line with the Kingdom’s goal to be the goto logistics hub for the region. The transformative technologies in the company’s fulfilment network play an integral role in ensuring speed, safety and reliability for its customers.

All Amazon’s facilities in Saudi Arabia are equipped with its latest global innovations powered by Machine Learning and Artificial Intelligence to enhance efficiencies in the fulfilment processes. Complex algorithms are deployed to accomplish within minutes what used to take hours. This worldleading efficiency enables the company to offer same-day and next-day delivery through Amazon Prime in Saudi Arabia.

The business also leverages innovative technology to maximise efficiency on the road, provide guidance to drivers on delivery routes and reduce delivery times by placing delivery stations and other pick-up points close to large Amazon customer populations. Its teams are constantly evaluating how it can leverage technology to improve processes, enhance safety for employees, and ensure a smooth and seamless experience for customers.

Towards Sustainability

As part of Amazon’s commitment to be netzero carbon across all of its business by 2040, its sustainability initiatives support the Saudi Vision 2030 goal of a Net Zero future by 2060. The company is making strategic investments in people and technology to reduce carbon emissions at every

stage of the fulfilment process –from the time an item is picked off the shelf in a fulfilment centre, to the materials used to pack the item, and the transportation method that gets the parcel to the customer’s door.

As of the end of last year, Amazon has 500+ wind and solar projects globally, and it is proud to be the world’s largest corporate purchaser of renewable energy since 2020. In its facilities across the region, Amazon incorporates carbon-friendly design concepts, efficient control systems, data and analytics to improve energy efficiency. In its transportation network in MENA, it is exploring alternative delivery methods to reduce its impact on the environment. It continues to look at a variety of factors including route distance, size of the order and infrastructure passing into and out of urban areas to

determine the optimal way to deliver to customers across the Kingdom.

In packaging, Amazon’s aim is to achieve smaller and lighter packages using science-based systems to reduce waste. The system determines the type and size of packaging needed, enabling the company to pack more packages into each delivery, resulting in fewer trips.

Across every aspect of its operations, Amazon is taking small but meaningful steps to make sure it is an environmentally responsible company, and while some actions and investments will have immediate carbon savings, others will take years to demonstrate results. The company remains focused on leveraging its scale and assets to fight climate change, and work to accelerate innovation that can also help

others reach net-zero carbon.

The Next Chapter

The e-commerce market in Saudi Arabia is estimated to reach USD 27.37 billion by 2029, more than double its current value. With this burgeoning growth, the online retail sector is constantly evolving. Artificial Intelligence is the latest disruptor that is expected to lead the next wave of transformation and support personalization in online retail. However, despite the advancements in technology, what customers want has not changedwide selection, low prices, and fast delivery, and AI is enhancing these core customer values.

AI is taking personalisation to the next level in the customer journey, helping customers seamlessly navigate wide selections to find just what they need. Amazon’s newly launched AI recommendation engines, such as Rufus in the US, offer customers a personal shopping assistant that gives feedback and advice. In MENA and in Saudi Arabia, Amazon deploys AI to personalise and localise its devices. For example, in 2021, the company launched Alexa in the Saudi Arabic dialect. It also rolled out a range of new localised services for Alexa users in Saudi Arabia such as requesting prayer times, setting reminders, and adding quizzes and recipes, designed to make daily spiritual practices and rituals easier and more accessible.

Look into the future, technology continues to elevate online retail in the region, by fostering a more personalised, localised and innovative customer experience.

Supply AI Threads of

How are companies weaving GenAI into the fabric of their supply chains?

Alexandros Komianos, a supply chain expert and Partner at EY Middle East and Business Consulting, brings over 25 years of experience in business and systems transformation. Specialising in supply chain and logistics, he has crafted operating models that encompass every aspect of the supply chain— from procurement and integrated business planning to logistics and last-mile delivery.

Recently, he shared insights from EY’s latest research in collaboration with HFS Research, exploring how companies are integrating GenAI into their supply chains. This study gathered perspectives from 460 senior supply chain and operations leaders across 19 countries in the Americas, Asia-Pacific (APAC), and EMEIA regions, spanning industries such as consumer goods, health sciences, energy, technology, telecommunications, and manufacturing.

GenAI is being hailed as a revolutionary force in supply chain management. Can you explain why it’s seen as such a game-changer?

GenAI has the potential to build the autonomous supply chains of the future. Nearly 85% of enterprises believe GenAI will play a crucial role in their supply chain strategies by 2030, and 80% see it as a transformative force. This represents a significant shift towards low-human-touch, autonomous supply networks that can significantly improve efficiency, reduce costs, and enhance decision-making capabilities.

What level of adoption are we currently seeing with GenAI in supply chains?

According to recent findings, 73% of supply chain executives either pilot or implement GenAI projects, allocating substantial portions of their AI budgets toward these technologies. Over the next 24 months, we expect GenAI adoption in supply chains to surpass the current levels of traditional AI, signalling a significant transition in how supply chains are managed.

Alexandros Komianos Partner at EY Middle East and Business Consulting

Despite this enthusiasm, many organisations face significant challenges. What are some of the key obstacles they’re encountering?

Yes, despite the excitement, many enterprises have encountered substantial hurdles. These challenges include data readiness, the complexity of integration, and the need for significant changes in IT infrastructure. There are also serious concerns about privacy, cybersecurity risks, and regulatory compliance, leading organisations to reassess their GenAI programs over the last year. Deploying untested technologies at scale has made some enterprises cautious.

Given these challenges, what steps can enterprises take to succeed in their GenAI pursuits for supply chains?

To succeed, enterprises should start by developing a phased adoption roadmap. Begin by focusing on areas that promise quick returns, such as demand forecasting, before expanding to more complex, long-term use cases like supplier management. Leveraging cloud technologies for faster deployments and scalability is also crucial. 84% of leading enterprises expect to rely more on cloud platforms when implementing their GenAI programs. Additionally, enterprises should prioritise building in-house GenAI capabilities and promoting crossfunctional collaboration.

You mentioned crossfunctional collaboration. Why is

this so important in unlocking the total value of GenAI?

Cross-functional collaboration is crucial because 78% of companies believe it’s necessary to unlock the full potential of GenAI. Collaboration must go beyond internal departments and align with suppliers, distributors, and customers. This holistic approach enables organisations to fully leverage GenAI to enhance innovation, agility, product quality, and revenue generation.

What about measuring the success of GenAI initiatives?

How should enterprises approach this?

Enterprises should customise each supply chain function’s key performance indicators (KPIs). For example, when assessing GenAI’s impact in a warehouse, an increase in throughput could be a key indicator. However, these metrics should also be aligned with long-term business goals, like achieving supply chain agility. This ensures that companies can effectively evaluate the immediate and strategic benefits of GenAI adoption.

What other technologies should companies consider integrating alongside GenAI to maximise its potential?

Along with GenAI, enterprises are leveraging a complementary tech ecosystem, including traditional AI, 5G networks, speech recognition, and edge computing. By combining these technologies, companies can achieve more pronounced results,

such as faster data processing and more efficient operations.

Governance and compliance are significant concerns when adopting new technologies like GenAI. What strategies should enterprises follow in this area?

A comprehensive governance and compliance plan is essential. Companies must create a GenAI framework that includes risk assessments, policies on usecase selection, deployment practices, and continuous employee training. Transparency with stakeholders is also critical. This kind of rigorous governance will help mitigate risks and ensure that GenAI is deployed responsibly and effectively.

Finally, what’s the long-term vision for enterprises looking to integrate GenAI into their supply chains?

Many enterprises’ long-term vision is to build autonomous, networked supply chains driven by advanced GenAI applications. These supply chains would be capable of predictive and adaptive operations, greatly enhancing efficiency and resilience. While the path to integration is challenging, the potential benefits make GenAI a critical strategic endeavour for future-ready organisations.

Despite the hurdles, the future of supply chains will be heavily influenced by GenAI. Absolutely. With the right strategies, GenAI can unlock immense value and drive the supply chain evolution toward autonomy and adaptability.

Speed of Change

Public Affairs VP, J&T Express ME, outlines the company’s strategic growth in the rapidly evolving e-commerce landscape across the MENA region

J&T Express is a global logistics service provider with leading express delivery services in Southeast Asia and China, the world’s largest and fastest-growing markets. Founded in 2015, its express network now spans 13 countries, covering Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt. It operates 237 large-scale transit centres and 19,600 pick-up points. This extensive infrastructure is supported by over 400,000 service staff and 8,500 network partners.

Success Determinants

J&T’s success in last-mile delivery relies on its multifaceted approach. First of all, in addition to flexibly adjusting capacity, J&T built a robust capacity reserve, to allocate delivery resources dynamically according to real-time order volumes and regional demand. This method enables the company to maintain delivery efficiency even during peak seasons, holidays, and other high-demand periods.

Secondly, the density of J&T’s delivery network, along with rational site selection and coverage, directly minimises its last-mile delivery times. In densely populated urban areas, J&T’s highly concentrated networks are essential to meet high order demand, while in suburban and rural areas, it leverages smart and remote-managed networks to increase coverage while reducing costs.

Furthermore, J&T operates modern sorting centres by using automated sorting technology, accelerating the sorting and loading of parcels and minimising errors. Optimising warehouse management ensures that parcels flow quickly through each stage of the delivery process.

The organisation prioritises rigorous quality control procedures to maintain its consistent highquality services, which include courier training and standardised protocols for scanning, inspection, delivery confirmation and so on, ensuring efficiency at every step. Additionally, real-time tracking of the delivery process enables the organisation to proactively identify and resolve potential issues.

Moreover, J&T also attaches great importance to green logistics, echoing the growing environmental awareness globally. The company is able to effectively reduce carbon emissions and improve transportation efficiency by utilising eco-friendly packaging materials and optimising delivery routes.

Last but not least, J&T fosters strategic partnerships with both local and cross-border e-commerce platforms, retailers and more, to build a comprehensive and synergistic logistics ecosystem.

Ziyad Alkhazzi,
Ziyad Alkhazzi, Public Affairs VP, J&T Express ME

J&T SPEED

Recently J&T launched J&T SPEED, a C2C personal courier service, in Saudi Arabia. J&T SPEED is designed to meet the delivery needs of individual users. This convenient and cost-effective service allows users to ship parcels easily through a user-friendly online platform.

Placing an order with J&T SPEED is effortless, with multiple channels available including the official app, website, and more. Leveraging its robust logistics network and operational expertise, J&T SPEED can deliver parcels with impressive speed. Statistics show that its average delivery time is only 58 hours, with the fastest delivery from Riyadh to Jeddah clocking in at a mere 20 hours. For intra-city deliveries, parcels can be delivered in as little as 14 hours.

Landscape

The logistics and e-commerce industry in the GCC region is experiencing unprecedented surge, particularly in economically vibrant countries like Saudi Arabia, the UAE, and Qatar. The penetration rate and transaction volume of e-commerce in those areas have been steadily rising.

This surge in e-commerce has placed a spotlight on logistics services, with consumer expectations for speed, flexibility, and transparency in last-mile delivery reaching new heights. Customers now expect swift and reliable delivery, creating a fertile ground for courier and logistics companies to offer innovative solutions, and capture a share of this burgeoning market.

Despite the immense potential, the industry in the region still faces certain challenges. Firstly, varying customs policies and regulations across borders complicate the management of cross-border logistics, demanding more investment from courier companies to ensure compliance and streamline operations.

Secondly, the region’s extreme weather conditions, including sandstorms and scorching temperatures, can cause unforeseen disruptions to transportation, which directly impact delivery times, especially for time-sensitive services.

Additionally, the region’s unique geography and rising demand for cross-border logistics complicate the coordination for multinational logistics networks, requiring companies to necessitate sophisticated supply chain management capabilities.

Nevertheless, the future remains bright. Continuous technological advancements and ongoing improvements in logistics

infrastructure promise continued growth potential for the region’s logistics and e-commerce sectors. Collaboration between governments and private enterprises will play a crucial role in overcoming challenges and driving industrial growth.

In the Future

Since its inception, J&T has successfully achieved rapid expansion through its sharp market insights and strong operational capabilities. Looking ahead, J&T will not only continue to solidify its leading position in the global market, but also invest more in digital transformation, customer experience enhancement, and sustainable development, empowering it to deliver even more exceptional logistics services to its valued customers. At the same time, it will keep strengthening its partnerships with both local and cross-border e-commerce platforms, providing more efficient logistics support to fuel the development of global e-commerce.

Forging Rail Connections

Etihad Rail: Driving UAE’s Logistics Transformation

The UAE’s infrastructural landscape is rapidly transforming, and at the heart of this change is Etihad Rail. This ambitious national railway project, spanning 1,200 kilometers,

is designed to reshape freight and passenger transport across the Emirates, connecting industrial hubs, ports, and cities while linking the UAE to the broader Gulf Cooperation Council (GCC) railway system.

With construction advancing steadily, 2024 stands as a critical year for Etihad Rail. This feature explores the latest updates, key milestones, and what the future holds for this transformative project.

Progress on Schedule: Phases and Milestones

Etihad Rail’s construction has been broken into phases, each strategically aligned with the UAE’s logistical needs. Phase One, operational since 2016, covers a 264-kilometer freight network from Shah to Ruwais, primarily

transporting sulfur. This phase laid the groundwork for the UAE’s shift away from road-heavy logistics, offering a greener, safer, and more efficient alternative.

Phase Two, the backbone of the project, spans 605 kilometers, extending the network from the Saudi border at Ghuweifat to Fujairah on the UAE’s east coast. As of mid-2024, over 75% of this phase has been completed. Key achievements include the connection between Al Dhafra and Abu Dhabi’s industrial zones, such as KIZAD (Khalifa Industrial Zone Abu Dhabi), a crucial link that will drive economic growth by facilitating efficient freight movement. The completion of major infrastructure components, including the railway bridge over the E11 highway near Abu

Dhabi, signals that the project is progressing swiftly toward its ambitious goals.

Strategic Partnerships Fueling Success

Etihad Rail’s development is about more than just construction—it’s a key driver of economic growth and international collaboration. Several significant partnerships have been announced in recent years, demonstrating the global interest in the project. In 2023, Etihad Rail signed a high-profile contract with China’s CRRC Corporation for the supply of diesel multiple units (DMUs) and

Etihad Rail’s development goes beyond construction—it_s a crucial catalyst for economic expansion and fosters international cooperation

passenger coaches. This move underscores Etihad Rail’s transition from a freight-only network to a dual-purpose one that will also serve passengers.

A notable partnership with Spain’s national rail operator, Renfe, was formalized through a Memorandum of Understanding (MoU) in 2023. This collaboration will bring in expertise from Spain, focusing on operational efficiency, maintenance practices, and knowledge sharing as Etihad Rail moves closer to launching passenger services. These international agreements highlight the UAE’s commitment to building a world-class rail network by adopting global best practices.

Companies Driving the Construction Front

The development of Etihad Rail wouldn’t be possible without the key companies leading the construction efforts. The joint venture between China State Construction Engineering Corporation (CSCEC) and South Korea’s SK Engineering & Construction has been instrumental in the engineering and construction of critical infrastructure for Phase Two. Their expertise in

building large-scale, complex transportation projects has ensured that the construction of rail lines, tunnels, and bridges is executed with precision and on schedule.

Meanwhile, UAE-based contractor Ghantoot Transport and General Contracting is playing a crucial role in the rail network’s expansion. Known for its vast experience in infrastructure projects, Ghantoot is responsible for constructing several key sections of the railway and ensuring the seamless integration of the rail system into the country’s existing transport infrastructure. Another significant player is L&T Construction, part of India’s Larsen & Toubro, which is overseeing the construction of tunnels in the mountainous terrain between Sharjah and Fujairah, one of the most challenging aspects of the project.

These companies, through a combination of local expertise and global collaboration, are driving the physical realization of Etihad Rail, ensuring the network’s timely completion while adhering to the highest safety and quality standards.

Etihad Rail’s construction has been broken into phases, each strategically aligned with the UAE’s logistical needs

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