LOGISTICS & TRANSPORT 2022 AWARDS
CELEBRATING INNOVATION IN LOGISTICS
Logistics & Transport Awards 2022 was aimed at recognising past triumphs and acknowledging the future strategies of logistics and supply chain companies from around the region.
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TALKING POINT
HYBRID DELIVERY MODEL
Why a hybrid delivery model is the key to the last-mile conundrum
16 AVIATION BEYOND EXCELLENCE
KUWAIT AIRWAYS CEO MAEN RAZOUQI
Meet the man on a mission to bolster the future of Kuwait’s national airline
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CARGO ROOTED IN SUCCESS
Following Etihad Cargo’s success at the recent Logistics & Transport awards, where the carrier won awards in Air Cargo Operator of the Year, Innovation in Transport and CSR Initiative of the Year categories, Tim Isik, Vice President Commercial, shares insights into Etihad Cargo’s success
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AUTOMATION
REDEFINING AUTOMATION
In conversation with David Dronfield, General Manager, Swisslog Middle East
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HUMAN RESOURCES ABU DHABI AIRPORTS
Launches new initiative to empower next generation of aviation professionals
Keep up to date with all the latest news, features and much more on our website and social media platforms.
The Logistics & Transport Awards 2022 was aimed at recognising past triumphs and acknowledging the future strategies of logistics and supply chain companies from around the region. The awards catered to individuals and companies from a variety of sectors— from transportation, cargo, and warehouses, to e-commerce, supply chain, and technology. The event saw 18 winners crowned at the event. Etihad Cargo, Hellmann Worldwide Logistics, IQ Fulfillment, and Saudi Ports Authority (MAWANI) won multiple awards at the evert. The event also recogsined Dubai Industrial City’s Saud Abu AlShawareb as Industry Leader of the Year, Mahdav Kurup, Hellmann Worldwide Logistics, as CEO of the Year and awarded the Lifetime Achievement Award to H.E. Omar Talal Hariri – President at Saudi Ports Authority (MAWANI). Check out the full results of the awards here.
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6 | LOGISTICS NEWS ME | OCTOBER 2022 WWW.CBNME.COM CELEBRATING THE BEST IN LOGISTICS
Al Masaood Power Division, part of the Al Masaood Group, one of Abu Dhabi’s leading business conglomerates, is showcasing its latest UAE-built smart electric charging solution, SHAMS+ (SHAMSPLUS), at the Environment & Development Forum (EDF) 2022. SHAMS+, which is the first such innovative solution to be fully manufactured in the UAE, is a full-fledged solar-powered charging solution for electric vehicles (EVs) and hybrid marine vessels.
The Environment & De velopment Forum, which is a pre-event for the COP27 summit, started today 11th of September ending on 13th of September 2022, at the Inter
Continental City Stars, Cairo, Egypt, with various national, regional, and international affiliates.
During the event, Al Masaood Power is highlight ing the significance of in novations such as SHAMS+ as an important solution to decarbonize the transport sector in line with its commit ment to promote green mo bility and help achieve UAE’s Net Zero emissions strategy by 2050.
Rasso Bartenschlager, Gen eral Manager, Al Masaood Power Division, said: “Our participation at the forum reflects our commitment to promoting sustainability and achieving net-zero emissions. This forum is a perfect global platform to showcase our in novative sustainable solution, SHAMS+, which marks a new
chapter in our sustainability journey as it is a solar-pow ered solution that will not only help decarbonize the transport industry but will also foster EV adoption in the industrial, construction, and marine sectors in the Gulf region.”
He added: “The forum holds significance as it is an important step in preparing for the upcoming COP27 summit being held in EGYPT this year and COP28 summit being held in UAE in 2023. The importance of such gatherings lies in bringing together govern ments and sectors to exam ine the effects of climate change and to develop a framework to mitigate its effects. Such forums provide a platform to showcase innovative solutions and
technologies that are para mount in countering climate change.”
SHAMS+ is a multi-user charging and solar-powered solution for electric vehicles (EVs) – including cars, buses, trucks, and marine vessels – that can meet all of the mo bility sector’s charging needs while being sustainable and environmentally friendly. This cordless, off-grid and highpower DC solar charging system is an ideal solution for marine docks, for the desert, agricultural fields, interstate highways and can also be implemented in the city. With smart internet-based and universal charging ventures, the solution will provide sus tainable charging through solar energy at the highest charging speed starting from 25 minutes.
Furthermore, the smart internet-based SHAMS+ charging station consists of one DC fast charger with a dual outlet, two battery en ergy storage systems, a solar PV power plant, and electri cal distribution and control systems, all designed with adequate sustainability stand ards in place. Additionally, it has an automatic matching voltage fluctuation for stable charging.
The three-day forum focuses on establishing solutions that address chal lenges brought on by cli mate change and adopting mitigative strategies across various industries – including research and development, policies and strategies, green finance, knowledge shar ing, skills and human capital development, creativity, and technological innovation. It also includes a world-class international exhibition of the most cutting-edge innovative technologies and equipment.
AL MASAOOD POWER SHOWCASES FIRST UAE-BUILT SMART ELECTRIC CHARGING SOLUTION AT ENVIRONMENT & DEVELOPMENT FORUMDUBAI INDUSTRIAL CITY TO PARTICIPATE IN THE GLOBAL MANUFACTURING AND INDUSTRIALISATION SUMMIT 2022
Dubai Industrial City, a member of TECOM Group PJSC, announced its participation in the Global Manufacturing and Industrialisation Summit (GMIS) 2022, convening in Pittsburgh, Pennsylvania from 28th to 30th September 2022. Aiming to strengthen cross-border trade opportunities between the UAE and the United States, Dubai Industrial City, alongside other organisations and government entities, will be joining the UAE delegation invited by the Ministry of Industry and Advanced Technology (MoIAT).
As one of the largest manufacturing hubs in the region, Dubai Industrial City will participate in various discussions and activities under the umbrella of the UAE delegation to promote the country’s favourable business climate and manufacturing opportunities. As part of the agenda, Dubai Industrial City will be conducting several site tours, aiming to nurture existing and new relationships with American and international customers.
Dubai Industrial City will also participate in MoIAT’s “Why Make it in the Emirates?” panel discussion on September 29th, where it will elaborate on the UAE industrial sector and exports, the role it plays in attracting global and regional com panies and the future of R&D.
Saud Abu Alshawareb, Executive Vice President – Industrial Leasing, TECOM Group PJSC, and Managing Director of Dubai Industrial City, said: “The UAE was the United States’ 18th largest goods export market in 2019, a sign of the active trade network and long-standing relationship between the two
countries. We are honoured to strategically partner with MoIAT and join their delegation to GMIS America as it presents a valuable opportunity to strengthen the dynamics between such a prominent trade partner – especially as our nation cements its position as a globally competitive industrial hub. The UAE’s non-oil trade recently surpassed the AED1 trillion mark in the first half of 2022. Operation 300bn, Make it in the Emirates, and other respective initiatives all contributed to this momen tous achievement.”
He added: “As one of the region’s largest industrial hubs, Dubai Industrial City takes pride in providing a platform where businesses from around the world can expand and benefit from a favourable business climate, world-class infrastructure and unrivalled connectivity. Our community is home to giants like Al Barakah Dates, Standard Carpets, and Anorka Food Indus tries and OSE Industries, all of which are exporting across the region and to the US, Europe, Africa, and Australia. We look forward to being part of insightful and fruitful conversations at GMIS America that will promote on a global scale the UAE’s manufacturing and exporting landscape, while helping solidify a diversified and non-oil-based economy.”
GMIS America, which is the 5th edition of the international industry and manufacturing focused event, will be under the theme of ‘Advancing Global Industrialization and Net Zero’. More than 60 international leaders will be welcomed to drive sustainable manufacturing practices and the clean energy tran sition around the world.
The Egyptian National Postal Organization (ENPO) and SAP have signed an agreement to establish a RISE with SAP Private Cloud, in addition to modernizing software applications and introducing best global practices of postal services.
The contract was signed by Dr. Sherif Farouk, Chairman of ENPO, and Sergio Maccotta, Senior Vice President and General Manager, SAP Middle East South.
Dr. Farouk said: “This protocol is the culmination of the continuous coopera tion and strategic relationship between Egypt Post and SAP and is part of our ongoing efforts to implement the best technology solutions throughout all our services and transactions using advanced software solutions and integrated digital services to facilitate and secure internal and external transactions”.
Dr. Farouk also highlighted that the agreement, which is the first of its kind in the Middle East and Southern Europe region, aims to establish a local cloud center and to enhance existing applica tions to leverage new features and tech nologies such as artificial intelligence and machine learning. The solution can integrate seamlessly with existing nonSAP and financial applications.
The agreement will also provide a ho listic view of ENPO performance and key indicators, and enable ENPO to study, analyze and develop current business cycles in a practical way, and to inform agile decision-making. In addition, some steps in standard processes can be auto mated to reduce human error and inter action, which in turn improves efficiency and reduces cost of ownership.
Ehab Abu Bakr, Vice Chairman, Digital Transformation at ENPO, said: “This agreement represents a big technologi
cal leap for us, as it aims to transform the current work processes on the ad vanced global technological RISE with SAP platform as an integrated solution on a private cloud. In addition to ben efiting from the licenses of SAP Signavio, which provide comprehensive solutions, from designing, documenting, streamlin ing and modeling processes, to improv ing overall efficiencies and increasing performance on a wider scale”.
Mohammed Samy, Managing Direc tor for SAP Egypt, said of the contract, “ENPO is one of our most strategic part ners in Egypt, and we are in a continu ous dialogue with their top management about the new trends in postal services, and ways to develop ENPO’s capabilities to always stay ahead of the game. This new agreement is an example of how SAP is supporting ENPO to reinvent its processes and services, promote innova tion, and deliver new services.”
EGYPT POST SIGNS AGREEMENT WITH SAP TO ESTABLISH AN INTEGRATED SYSTEM FOR CLOUD SOLUTIONSLYVE GLOBAL CONTINUES TO DRIVE INVESTMENT STRATEGY BY ACQUIRING MAJORITY STAKE IN SHOPINI WORLD
Lyve Global, an Abu Dhabi based B2B logistics SaaS platform enabling businesses to digitize their customer journey from order to payment to delivery – announces it has acquired a majority stake in Shopini World, a leading cross-border e-commerce logistics and solutions provider to businesses and consumers across MENA, with operational presence in the UAE, USA, UK, Turkey, and China.
Lyve’s acquisition of a ma jority stake in Shopini World reflects its ongoing commit ment to strengthen its offer ing as the company plans to invest US$150 million in high quality acquisitions within the next two years to broaden its global portfolio and expand market reach.
This acquisition brings to gether significant operational synergies with Shopini’s ecommerce solutions and inter national network, and Lyve’s technology and logistics in frastructure in the region. The combination of Shopini’s firstand middle-mile services with Lyve’s solutions completes the entire logistics cycle – driving efficiencies, and greatly en hancing execution capabilities and customer reach for Lyve’s e-commerce clients.
Lyve continues to evolve, building a rich digitized ecosystem of complete, endto-end solutions through all touchpoints – from order acquisition, to order manage ment, payment, and delivery. With its market-leading cloud-
based platforms and services, the company currently helps facilitate millions of orders every month on behalf of key global and regional brands across the e-commerce, food and beverage, grocery, and healthcare industries.
Through its investment strategy and next phase of growth, focusing on inorganic opportunities that comple ment the development of Lyve’s regional digitized eco system, the company will con tinue to grow and maximize value for each of its portfolio companies, providing tailored support for every investment and working closely to align synergies to leverage its rich network.
Chief Investment Officer at Lyve, Nader Museitif, com mented on the strategic investment: “We’re excited to have Shopini World join the Lyve ecosystem. We’re determined to continue building and expanding our offering in a way that meets our customers growth and digital transformation needs. Our investment strategy is designed to complement and accelerate our organic efforts and we are looking forward to announcing more partnerships in the near fu ture.”
Chief Executive Officer of Shopini World, Rami Murad, said: “We are super excited to be recognized by a great
organization like Lyve Global, for the top-notch parcel cross-borders technolo gies we have built and for the innovative solutions we provide to local and interna tional e-commerce merchants based in USA, UK, Turkey, China, and the UAE. Our partnership with Lyve Global will definitely help us grow faster by enabling and com plementing our cross-borders solutions into the ME and internationally as well.”
As the accelerated growth of digitization continues to disrupt the e-commerce land scape in the region, industry players are developing their overall strategies to establish a strong omnichannel pres ence and solutions to offer a seamless customer experi ence. Lyve’s evolving port folio of digital technologies enables these companies to succeed in this ever-changing landscape.
HYBRID DELIVERY MODEL
BY VLADIMIR NESTEROV, GENERAL MANAGER – UAE, ROUTEQThe digital economy has all but exterminated patience.
Every customer, whether B2B or B2C, has a schedule. And however unrealistic, they expect their suppliers to respect it. As an increasing propor tion of commercial transactions take place online, last-mile delivery has become more and more important. But it is also the costliest link in the supply chain. Compared with rail, sea, and air journeys, last-mile routes are not pre
defined and must be resolved ad hoc, exacerbated by the uncertainty of the exact location of the final destination.
According to a 2020 report from the World Economic Forum (WEF), lastmile makes up 53% of shipping costs and 41% of total supply-chain costs. Businesses beset by demanding cus tomers must decide — will the delivery function be completely inhouse (where the company, with no support, buys and maintains all vehicles and fulfills all orders but consequently has full
control) or completely outsourced (where the business relinquishes all control over deliveries to a third-party partner) or alternatively should the company lease vehicles and then man age as an in-house fleet.
Fortunately, there is a fourth hybrid delivery option — a best of all worlds, if you will, and one that is already be ing used by innovative companies like fashion and lifestyle e-store 6thStreet. This approach is of great use to a new business for example, which can con centrate on product-related issues and leave logistics and courier management to a dedicated third-party provider like an Aramex or a FedEx. Then, when the company grows, it can focus more on costs and customer experience by gradually building its own fleet through ownership or rental. Once firms reach this stage, they can leave standard drop-off and pick-up functions to
Why a hybrid delivery model is the key to the last-mile conundrum
outsource partners and fulfil more complex visits — with services such as cash-on-delivery or ones that require that extra special customer service (for example where customers get to try on clothes) — with inhouse fleets and employees.
Handling volume
Hybrid models are also an effective way of addressing demand spikes. Smaller businesses will not yet be able to respond to the increased transac tion volumes associated with holidays and special events. When Eid Al Fitr arrives, for example, a start-up or SME can pre-plan any escalation with a partner to scale up its pool of driv ers and vehicles. It is worth noting that even if a nascent business has the budget to rapidly acquire vans and couriers, it takes time, not to mention cost, to train staff. And during Rama dan, the need for drivers to take more frequent and longer breaks can also be addressed by outsourcing.
The other side of this peak-handling approach is the trough. Some busi nesses sell vital products like medicines and commonly get orders that must be delivered during non-business hours, where third-party LMD companies may not available. Hence the need to maintain an inhouse fleet.
The hybrid model is also a safe and reliable way to test the waters in a new market. By outsourcing the entire delivery function, enterprises can gauge profitability and, if viable, move in with their own fulfilment centers, fleets, and people.
Going green
One final argument for the hybrid model is the sustainability issue. In the wake of COVID, we saw the elevation of ESG (environment, social, govern ance). It is no longer public pantomime nor boardroom theatrics. It is here and it is staying. Carbon footprints are as much a concern for stakehold ers as customer experience, and hybrid models are widely touted as a solution. By either leasing vehicles, or outsourc ing deliveries, enterprises are reducing the number of vehicles they put on the road. Also, by using the right route-
planning software, all delivery firms can reduce the miles travelled and the time spent on the road by optimizing roundtrips.
In its report, mentioned earlier, the WEF makes reference to rising customer demand for online commerce and estimates that if no action is taken, the number of delivery vehicles in the world’s 100 largest cities will increase by 36% by 2030, directly leading to a 32% surge in emissions and a 21% increase in congestion — representing 11 minutes more in daily commute time per passenger.
Getting hybrid models “right”
Hybrid models are the answer to the great trade-off between CX (including sustainability) and business costs. But getting the mix right does not occur naturally and requires some careful thought.
First, businesses should consider how drivers are paid. Per-delivery compensation, where several deliveries are made in a single large vehicle may work in bigger cities such as Dubai or New York. But deliveries made to outlying areas may be few in number for each trip, so hourly rates and mile age coverage would be preferable to the courier. In short, driver preferences must be aligned with the economics of the business and the geography of its operating market.
Also, in a digital economy, digital solutions are the natural answer to complex optimization problems. Route-planning is now highly ad vanced, being able to deduce optimal roundtrips based on traffic congestion for the enhancement of delivery speed and accuracy. But digital platforms also play a critical role in managing hybrid fleets effectively. It is almost impossible to imagine such a task in manual mode, but with machine-learn ing and advanced analytics to hand, all fulfilment managers need do is input the parameters, such as cost of driver, cost for fact of usage, time on stop, COD orders versus prepaid, and a range of others. The software does the rest, not only advising on routes but on which vehicles (leased or owned) to load and dispatch first, along with
a list of orders that are best fulfilled by partners.
Digital transformation may be the rage, but all rages have the potential to enhance or encumber. Businesses that want to use the best possible means of marrying CX to cost optimiza tion would be well served to consider hybrid delivery for their last-mile function.
“HYBRID MODELS ARE AN EFFECTIVE WAY OF ADDRESSING DEMAND SPIKES. SMALLER BUSINESSES WILL NOT YET BE ABLE TO RESPOND TO THE INCREASED TRANSACTION VOLUMES ASSOCIATED WITH HOLIDAYS AND SPECIAL EVENTS.”
BEYOND EXCELLENCE
KUWAIT AIRWAYS CEO MAEN RAZOUQI
Meet the man on a mission to bolster the future of Kuwait’s national airline
by ABY SAM THOMAS16 | LOGISTICS NEWS ME | OCTOBER 2022 WWW.CBNME.COM → MAEN RAZOUQI is a global leadership executive who is currently the Chief Executive Officer of Kuwait Airways. Prior to his current role at the state-owned national airline of Kuwait, he was the President and General Manager for the northern Middle East operations of Schlumberger, the world's largest offshore drilling company.
Do you remember, Aby, who was the second person to walk on the moon?” When Kuwait Airways CEO Maen Razouqi posed this question to me when I interviewed him in August this year, I must admit that in that moment, I found myself stumped for an answer. A Google search later reminded me that the person who followed in American astronaut Neil Armstrong’s historic first steps on the moon was his colleague on the space mission, Buzz Aldrin, but the fact that I couldn’t recall his name off the top of my head allowed Razouqi to make his point. You see, at the time, Razouqi was telling me about Beyond Excellence (BE), the transformation program that he had initiated at Kuwait Airways earlier this year, and I had quizzed him on the reasoning behind the name he chose for the digitally focused initiative. “I come from a personal belief that you have to be number one, and being number two, to me, means you’re the first in the biggest line of losers,” he says. “So, coming second is not something anybody remembers. Do you remember, Aby, who was the second person to step on the moon?” And as I shook my head in response, Razouqi reiterated his reasons for wanting Kuwait Airways -the state-owned national carrier of Kuwait- to aspire to be at the top of its industry. “Within our capabilities and abilities, excellence is not satisfactory,” he declares. “I want us to achieve beyond excellence, because beyond excellence, there is no limit to how far you can go.”
The BE program is one of the most significant initiatives that Razouqi has kickstarted at Kuwait Airways since his announcement as its CEO in October 2021. The initiative, which was launched as part of the 68th anniversary of the enterprise, has been built on the directions on the strategy and goals set by the shareholders and board of directors of Kuwait Airways. Currently, the airline has 34 aircrafts under its purview that operate 57 direct routes, plus 82 in partnership with other airlines, with a workforce of around 6,000 employees. In 2021, Kuwait Airways was declared to be “an official five-star major airline” by the Airline Passenger Experience Association (APEX), whose rating program is the first of its kind in the global aviation industry that’s based solely on certified passenger feedback. From an operations perspective, Razouqi points out that the aviation sector is still trying to return to the high it saw in 2019, its best-performing year before the world was hit by the COVID-19 crisis, and that’s the case for Kuwait Airways as well. “The Middle East specifically will most likely not get to that stage before 2024,” he says. “It’s not a recognition of the lack of capabilities, but, obviously, the readi ness of the infrastructure and resources that are required to go back to that stage.” As an example, Razouqi highlights here the 110% year-over-year (YoY) rise seen in the price of jet fuel lately, which can hamper the recovery being pursued by the aviation industry- however, he notes that there are factors working in its favor as well.
“The good news is that the expected passenger growth will continue to be posi tive, at a compound annual growth rate (CAGR) of around 4% YoY,” Razouqi explains. “The expectation is that the number of total travelers around the world should reach double of what it was in 2019, which is around eight billion global ly. So, the industry will grow. It’s the right industry to invest in, as the number of passengers will continue to grow globally.”
And it’s this projected scenario that Razou qi believes Kuwait Airways can capitalize on as it moves into the future. You see, the growth in the number of global passengers is expected to be driven by people from the Asia-Pacific, especially from China and India, and Kuwait Airways, by virtue of its location in this region, stands to gain a lot if it can become the carrier of choice for
→ AS THE FLAG CARRIER OF KUWAIT, Kuwait Airways aims to be associated with success and excellent performance.the populations of these nations. At the same time, the government of Kuwait has been trying to privatize the carrier for a long while now, and while those attempts haven’t panned out in the past, Razouqi is determined to make it happen in his time as the CEO of the enter prise. “I have come into this role to achieve three main objectives in three years,” Razouqi says. “The first objective is basically around transformation and restructuring the organization, both internally and externally. The second, and most important, is to potentially accelerate its profitability in the aviation industry. And last but not the least, considering the privatization law that was passed prior to the onset of the COVID-19 crisis, the third is to decide how to implement it, in the right time, with the right value, for our shareholders.”
Amajor restructuring process is thus underway at Kuwait Airways, with its target being both the workforce (the aim is to reduce the overall management structure cost by 20%, Razouqi reveals), as well as its assets, with the Kuwait Airways fleet set to average 50 planes by 2025 that will cover 60 point-to-point destinations, and 150 overall through partnerships. Meanwhile, the enterprise’s transformation is also ongoing- Razouqi’s steward ship of the BE program has seen the airline engage more strongly with both its clientele and its employ ees to deliver on its overarching goals. Growth, performance, customer experience, and sustainability form the building blocks of the BE program, and Razouqi and his team’s efforts in these domains do seem to be bearing fruit. For instance, Razouqi points out that the second quarter of 2022 has seen the airline’s revenue growth increase by 9% compared to its performance in the first, and there’s also been a profit improvement of 42% with respect to the first half of the year. Passenger numbers have been steadily increasing (a 17% rise from the year’s first quarter), and a host of new destinations -from Salalah and Sharm El Sheikh, to Malaga and Vienna and morehave been added to the Kuwait Airways portfolio as well. Razouqi is also determined to give his customers the best possible experience when they choose
>>>
↑ ESTABLISHED IN 1954, KUWAIT AIRWAYS celebrated its 68th anniversary this year, and the occasion saw the airline launch its Beyond Excellence transformation program, which is focused on enhancing its efficiency and sustaining growth, while also maximizing returns.Kuwait Airways for their journeysand this goes all the way from them simply thinking about booking a flight, to them picking up their lug gage at their final destinations. That would explain, for instance, Kuwait Airways’ new home check-in offer ing that it provides to its premium class customers, or its creation of a new “platinum” tier in its loyalty program. Meanwhile, the airline’s use of the Airbus A320neo family of aircraft -which are known to achieve fuel savings of up to 20%- has been contributing to its environmental, social, and governance (ESG) goals as well.
At the end of the day, all of these efforts are meant to serve a singular goal that Razouqi has outlined for Kuwait Airways, and it’s one that encompasses all of the enterprise’s different components, from aviation to catering, and engineering to training, and more.
“Our target is to be the most ef ficient airline,” he declares. “And to be the most efficient airline, you don’t need to have 200 planes- all you need are two planes to bench mark your efficiency and perfor mance. And we want to be the most efficient airline in the world.” Now, this can perhaps be considered to be a lofty goal for Kuwait Airways, but then again, consider the drive and dedication being exhibited by the person driving the enterprise to achieve it- I can personally state that Razouqi’s bullish and buoyant demeanor is hard to dismiss. Plus, he has come to lead Kuwait Airways with a wealth of experience from an illustrious career that has seen him work in various operational and managerial roles in the Mid dle East, Africa, Europe, and North America- in fact, his last role was as the President and General Manager for the northern Middle East region at Schlumberger, the world’s largest offshore drilling company. Add to that the fact that Razouqi, as a Ku waiti national, considers his current role as a part of his national duty, and that adds a whole another level of drive to what he has set out to accomplish.
“It was an exciting challenge,” Ra zouqi says, as he explains his reasons for taking up his current job. “It’s a very challenging position to be in. And that’s the drive. If we were the number one airline in the world, I may not be in this position, or even attracted to be in this role. But the fact that I want us to go down that route is what drove me to be here
today.” Razouqi’s ambitions are clearly sky-high, and that bodes well for Kuwait Airways’ future as wellhere’s hoping it takes off.
↓ BESIDES HIS ROLE AT KUWAIT AIRWAYS, Maen Razouqi is a co-founder and Executive Director at Afkar Ventures, a MENA-focused energytech investment enterprise.
“To be the most efficient airline, you don’t need to have 200 planes- all you need are two planes to benchmark your efficiency and performance.”
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LOGISTICS & TRANSPORT 2022 AWARDS
CATEGORY PARTNERS
CELEBRATING INNOVATION IN LOGISTICS
Logistics & Transport Awards 2022 was aimed at recognising past triumphs and acknowledging the future strategies of logistics and supply chain companies from around the region. The awards catered to individuals and companies from a variety of sectors— from transportation, cargo, and warehouses, to e-commerce, supply chain, and technology. The event saw 18 winners crowned at the event. Etihad Cargo, Hellmann Worldwide Logistics, IQ Fulfillment, and Saudi Ports Authority (MAWANI) won multiple awards at the evert. The event also recogsined Dubai Industrial City’s Saud Abu AlShawareb as Industry Leader of the Year and awarded the Lifetime Achievement Award to H.E. Omar Talal Hariri – President at Saudi Ports Authority (MAWANI). Check out the full results of the awards here.
MADHAV KURUP, HELLMANN WORLDWIDE LOGISTICS
CEO OF THE YEAR
PROVIDER OF THE
COLDSince its establishment in 2004, Etihad Cargo has achieved significant growth. The cargo and logis tics arm of Etihad Aviation Group, the national airline of the UAE, has taken advantage of the strategic location of its Abu Dhabi hub to build a network that provides vital links from the capital to Africa, America, Asia, Australia, Europe and the Middle East. To achieve its ambition of becoming the air cargo partner of choice for customers around the world, Etihad Cargo has invested in its eight-strong premium product range, digi talisation and sustainability initiatives to ensure the carrier remains at the cutting edge of the sector and delivers on its service promises in full.
Tim Isik, Etihad Cargo’s Vice President Commercial, said, “The air cargo industry is dynamic, and customer require ments are continuously evolving. Etihad Cargo aims to be the easiest air cargo carrier to do business with and every thing we do places our customers at the forefront. We are committed to building relationships that raise standards and future-proof operations against any challenges we may face in the future.”
The success of Etihad Cargo’s customer-centric ap proach has been proven by the carrier’s performance over the last two years. Despite the challenging market conditions resulting from the COVID-19 pandemic, Etihad Cargo achieved a record year in 2021. The carrier
THE
ISIK, VICE PRESIDENT
ETIHAD CARGO’S
has built on this success in 2022, going from strength to strength and posting a 6 per cent increase in revenue in the first half of the year. Carrying 295,000 tonnes of freight, the carrier achieved the best mid-year revenue results in Etihad Cargo’s history.
Isik said, “Etihad Cargo’s mid-year results under line our commitment to working closely with our partners and customers, remaining agile in our re sponse to market challenges and delivering on our ser vice promises. In addition to posting revenue growth, we maintained a strong Delivered as Promised rate
of 86 per cent and an 83 per cent freighter On Time Performance rate, which means our customers can be confident in Etihad Cargo’s capabilities in delivering their cargo on time and in perfect condition.”
Demonstrating the car rier’s commitment to qual ity, Etihad Cargo achieved Cargo iQ recertification in 2022. The carrier also holds IATA’s CEIV Pharma, Fresh and Live Animals certifications, proving Etihad Cargo’s adherence to strict international quality controls. Delivering worldclass solutions aligned with industry best practices has enabled the carrier to achieve growth across sev eral of its premium prod ucts, including 46 per cent growth for Etihad Cargo’s award-winning, dedicated pharmaceutical shipment product, PharmaLife.
Another key factor in Etihad Cargo’s growth has been its continued invest ment in its innovation and digitalisation journey. Since launching its digital strategy in 2018, the carrier has established a state-of-theart Cargo Control Centre in its Abu Dhabi hub, enabling its dedicated team to monitor the status of and track all shipments, flights and road feeder services in real-time. More recently, Etihad Cargo launched an enhanced booking portal that supports English, Arabic and Mandarin languages. Following the roll-out of new updates, in cluding an enhanced lookto-book feature, a dynamic newsfeed and personalised dashboards, bookings made via the portal have surged, increasing by 57 per cent.
“Etihad Cargo is con
tinuously investing in digitalisation,” said Isik. “We have been trialling AI solutions to boost cargo capacity on flights through the measurement of cargo dimensions and optimisa tion of capacity planning. The automated load plans are created in seconds, and these digital solutions will become practical tools we utilise across our network
in the future, which will benefit our customers and also ground handlers.”
Sustainability is also high on the carrier’s agenda. In alignment with Etihad Avia tion Group’s sustainability plans, Etihad Cargo has pledged to achieve net-zero carbon emissions by 2050. In addition to the ongoing development of a dedicated cargo sustainability plan,
“ETIHAD CARGO AIMS TO BE THE EASIEST AIR CARGO CARRIER TO DO BUSINESS WITH AND EVERYTHING WE DO PLACES OUR CUSTOMERS AT THE FOREFRONT. WE ARE COMMITTED TO BUILDING RELATIONSHIPS THAT RAISE STANDARDS AND FUTURE-PROOF OPERATIONS AGAINST ANY CHALLENGES WE MAY FACE IN THE FUTURE.”
ROOTED IN SUCCESS“WHILE MARKET CHALLENGES CONTINUE TO IMPACT AIR CARGO OPERATIONS, THE FUTURE LOOKS BRIGHT FOR ETIHAD CARGO. WE WILL SOON BE LAUNCHING A NEW STATE-OF-THE-ART COOL CHAIN FACILITY AT ABU DHABI AIRPORT, WHICH WILL FURTHER EXPAND OUR COOL CHAIN STORAGE CAPACITY AND HANDLING CAPABILITIES.”
Etihad Cargo has taken strides to offer more sustainable so lutions to its customers. The carrier replaced 3,000 contain ers from its original aluminium unit load device (ULD) fleet with a more environmentally friendly, lightweight version. The utilisation of these lighter ULDs can provide a weight saving of over 200 kilogrammes on an average wide-bodied freighter flight, which has lowered fuel consumption and CO2 solutions.
More recently, Etihad Cargo entered into a memoran dum of understanding (MOU) with B Medical Systems to develop and launch the world’s first airline-specific passive temperature-controlled container. The containers, which utilise passive cooling technology, retain temperatures from -80 to 25 degrees Celsius for up to five days without requir ing an external power source and offer load capabilities ranging from two to 1,500 litres. Through the reduction in power needed to maintain the temperature for temperaturesensitive pharmaceutical shipments, these units will signifi cantly reduce carbon emissions. Trials of the sustainable container units will commence shortly, and a commercial launch date will be announced following the successful completion of the trials.
Being more environmentally conscious also extends to the carrier’s corporate social responsibility initiatives. Etihad Cargo launched its award-winning Forever Home pro gramme in 2022 to support not-for-profit live animal at-risk transportation. Forever Home has significantly expanded Etihad Cargo’s existing animal welfare and conservation policy, which commits to identifying and implementing ac tions to help prevent the illegal wildlife trade and encourage responsible, sustainable tourism.
The positive impact of this policy was demonstrated in the transportation of four rescued servals. In collaboration with three organisations — Born Free Foundation, Natuurhulp centrum and Panthera Africa — Etihad Cargo provided
free flights for the servals, which were kept illegally as pets in Belgium before they were rescued. Etihad Cargo trans ported the servals from Belgium to their new forever home at the Born Free Rescue Section of Panthera Africa Big Cat Sanctuary in South Africa.
Isik is confident Etihad Cargo will continue to build on its successes. He said, “While market challenges continue to impact air cargo operations, the future looks bright for Etihad Cargo. We will soon be launching a new state-ofthe-art cool chain facility at Abu Dhabi Airport, which will further expand our cool chain storage capacity and handling capabilities. We will also continue to add capacity across our network and modernise our fleet so that we can remain the air cargo partner of choice.”
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REDEFINING AUTOMATION
Building the brand in the Middle East
In my current role as the General Manager of Swisslog Middle East, I am responsible for growing the regional customer base of the company and to create awareness about the need for professionally integrated warehouse automation systems, while also supporting businesses with the provision of custom solutions that gives them a competitive advantage.
Redefining automation in logistics
Technology is continuing to be a truly disruptive force in how the modern supply chain is shaped, defined, and explored. From basic improvements like streamlining operations and increasing process efficiency to fully automating pickup stations, technology is enabling much smarter, simpler supply chain management.
Swisslog’s warehouse management system orchestrates the interaction of individual robotics and warehouse technologies and provides for effective monitoring of ongoing processes. By smartly integrating intelligence in the operations and synchronising the performance of both automated and manual warehouse equipment, companies can expect greater improvement in workflow efficiency and productivity.
We are committed to supporting Middle Eastern retail and e-commerce/e-grocery companies in their efforts to achieve fast product delivery, high accuracy and reduce operational costs. The flexible and modular technologies and software in Swisslog’s Retail & E-Commerce portfolio are specifically designed to meet the dynamic needs of retail, e-commerce
In conversation with David Dronfield, General Manager, Swisslog Middle Eastand multichannel logistics. Retailers can increase the speed of order fulfilment, improve order accuracy and effectively manage an ever-increasing number of SKUs with Swisslog’s automated systems for e-commerce. Order fulfilment rates can be up to five times faster than manual systems.
Swisslog’s automation solutions for retail range from the latest goods-to-person technologies such as CarryPick to dynamic storage and retrieval systems such as the CycloneCarrier and AutoStore solutions, integrated with advanced robotics as well as its next-generation picking technology for retail and e-commerce such as ItemPiQ. In the future, companies will leverage new and innovative technologies to create a self-orchestrated supply chain and previously unimaginable efficiencies. By embracing the era of digitalisation and focusing on the ability to continually optimise, companies will be able to stay ahead of their competition.
AutoStore
As one of the world’s leading AutoStore integrators, Swisslog is living up to its reputation. As customer demand is quickly growing, so too is the need for flexible, robotic solutions. The global explosion in the growth of e-commerce in both the business-to-consumer and business-tobusiness segments has led to increased demand for more scalable, modular solutions to meet rapidly changing customer demands.
As one of the most flexible and space efficient goods-to-person solutions available today, AutoStore, a cube-based system, has revolutionized e-commerce fulfillment and small item order picking. The scalable system can be deployed relatively quickly in almost any warehouse environment, providing dramatic improvements in space utilization and productivity compared to traditional shelf-based storage.
“As one of the world’s leading AutoStore integrators, Swisslog is living up to its reputation. As customer demand is quickly growing, so too is the need for flexible, robotic solutions.”
AUTOMATION
AutoStore is a unique and simple solution that uses robots and bins to quickly process small parts orders. It provides better use of available space than any other automated system thanks to its unique design that enables direct stacking of bins on top of each other and storage of multiple SKUs in a single bin.
AutoStore can be optimally designed in and around structures such as columns, floor height differences or other spatial peculiarities. Wide tunnels or narrow bridges are also possible.
Current Projects
Raha just went live. We are working on some other key projects in the e-grocery segment in the region. We are also working on expansions of existing sites or other sites from existing customers.
Looking Ahead
80 percent of global warehouses did not have any automation in 2016, but as a result of Covid-19, many businesses adjusted their marketplace strategy and are now considering warehouse automation as their number one priority to drive operational efficiency and improve business processes. The Middle East is gearing up to take advantage of digitization in a big way, and we are seeing companies in the region making credible investments for real results today.
With the increased interest in warehouse automation, Swisslog will be focusing highly on –
> Growing the company’s regional customer base
> We are aiming to achieve this growth by professionally consulting with customers who are new to automation. We want to bring standard automated pallet and light goods storage & handling systems closer to the businesses
> We also want to create awareness about the need for professionally integrated warehouse automation systems and advising clearly on robotic automation solutions such as item picking ItemPiQ and ACPaQ mixed case palletizing in everyday warehouse operations
Challenges faced in the logistics industry
Today a lot of businesses suffer from many challenges. Rising costs, changing consumer habits, increased operating expenses add greater pressure on businesses. Though many businesses
understand that, not many invest in changes. Reports show that a lot of companies are still afraid of using the latest technologies in their business operations as they assume, they are too expensive. We are working on that front to change their perception as we help them implement the solutions delivering a fast return on investment and a longer useful life due to their ability to adapt to change. The time is ripe for automation in the Middle East. Multinational companies in particular will now further improve their supply chain management and establish robust disaster management mechanisms and our aim is to help them adapt and be future ready.
Identifying the right opportunity
Automation is central to several GCC countries’ future development plans as the region’s logistics market is set to grow at a rate of 4.3% CAGR to a value of US$ 3.03 billion by 2028. While we see UAE leading the race for technology adoption, Kingdom of Saudi Arabia is also making a lot of progress and we are receiving a lot of enquiries from businesses in the region on how they can integrate automation technology in their existing infrastructure in a very convenient and efficient manner - without disruption to their current business processes, to remain viable and profitable, and ultimately create the future. We have also several projects in Kuwait and see higher demand here.
LAUNCHES NEW INITIATIVE TO EMPOWER NEXT GENERATION OF AVIATION PROFESSIONALS
Abu Dhabi Airports, the operator of the emir ate’s five airports, announced today the launch of “ASAAS”, a new programme that aims to attract, recruit and train Emirati university graduates who are interested in joining the aviation sector. The programme will seek to empower them with knowledge and experi ence in airport operations and management.
As part of this programme, the successful university gradu ates will receive on-the-job training over a six-month period that is fully sponsored by Abu Dhabi Airports in collabora tion with leading educational institutions. The training has been designed to cover a wide range of industry-relevant subjects, like airport operations (land and airside), aircraft flight and ground operations, health and safety, security management and general business management studies. H.E. Eng. Jamal Salem Al Dhaheri, Managing Director
& Chief Executive Officer at Abu Dhabi Airports, said: “Investing in the aviation sector is at the heart of our man date at Abu Dhabi Airports. The ‘ASAAS’ programme is a testament of our commitment to paving the way for a new generation of Emirati aviation leaders who, with knowledge and experience, would be able to sustain growth and devel opment of this vital sector in Abu Dhabi and the UAE.”
“With an intensive on-the-job training in collaboration with top-class universities in Abu Dhabi, the next generation of aviation leaders will be well-equipped to shape the future of airports.” he added.
Hanan Ibrahim Al Abed, Chief Human Resources Officer at Abu Dhabi Airports, commented: “We are pleased to sponsor a specialised academic programme in collaboration with top universities in the emirate to empower the selected candidates with knowledge that they need to excel in their new career adventure at Abu Dhabi Airports.”
42 | LOGISTICS NEWS ME | OCTOBER 2022 WWW.CBNME.COM HUMAN RESOURCESLNME ABU DHABI AIRPORTS
An efficient, reliable & modern fleet solution
This is a first-of-its-kind Cargo SUV model which is now available across Al Masaood Automobile , Renault showrooms in Abu Dhabi & Al Ain.
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.