December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
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December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven, flexible automation solutions
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December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven, flexible automation solutions
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December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven, flexible automation solutions
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Healthcare Logistics: Hot Demand for the Cold Chain
SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com
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According to a recent report by a leading healthcare logistics services providers’ consortium, the global healthcare logistics market size was valued at US$ 144.28bn in 2020 and is expected to reach US$ 226.57bn by 2026, growing at a CAGR of 7.8%. The major factors contributing to the growth of the global healthcare logistics industry are the increasing demand for pharmaceuticals and medical devices, emerging technologies in the healthcare supply chain, a growing collaboration between logistics and healthcare providers, and other factors such as rising population and growing chronic disease cases increasing the sector’s trade and output. Pharmaceuticals accounted for a share of 59.71% in the global market in 2020. The pharmaceutical logistics industry has experienced significant growth in the past two decades, and worldwide pharma products’ revenues were total US$ 1.27tn in 2020. The pandemic surged the demand for vaccines and medicines in 2020 and continues in 2021. To get a handle on and obtain insights into the working of the healthcare logistics domain in the region, Global Supply Chain conducted an exclusive interview with Anna Mansurova, Director of Commercial, Hellmann Calipar Healthcare Logistics. We also provide the lowdown on the Abu Dhabi-based headquartered Rafed, which has quickly established itself as a leader in the UAE’s pharmaceutical logistics sector successfully operating out of its warehouse and storage facility of the future, the Rafed Distribution Centre. While playing a pivotal role in the HOPE Consortium’s vaccination efforts, housing the country’s largest cold chain storage capabilities, the Centre’s advanced technology has also enabled Rafed to revolutionize the healthcare procurement sector. Our lead story for this issue centres on Swisslog where we assess the company’s participation in the recently concluded Materials Handling ME 2021 and report an exclusive interview with the freshly inducted David Dronfield, where he responded to multiple questions on a range of both company and industry-related subjects and issues. Elsewhere, Global Supply Chain spoke to Ruth Waugh, General Manager, Twintec Middle East, a leading industrial floorings solutions provider on a range of subjects from its specialist operations, performance, accomplishments and future prospects. As we close the final issue for 2021, in what we can appropriately characterise as a turbulent and tumultuous year for the logistics and supply chain, I take this opportunity to wish our readers festive greetings and an enjoyable holiday season. Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com DECEMBER 2021 3
December 2021 Issue 86
06 NEWS
Up to date news of the Global Suppy Chain industry.
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Swisslog Demonstrating a variety of smart warehousing solutions. Twintec ME Providing pioneering industrial floorings solutions. Turkish Cargo Carrier keeps high profile, reports healthy cargo revenues to date for 2021.
Hellmann Healthcare Logistics Hellmann Healthcare capabilities growing from strength to strength. Rafed Plans to transform UAE healthcare procurement as it marks first anniversary. Healthcare Supply Chains OpEd: Eelco Dijkstra, Global Head of Sales for Healthcare, CEVA Logistics.
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Bahri Acquisition Bahri receives ‘Rayah’, its first ‘gas ready’ VLCC built by IMI and HHI.
Ehrhardt + Partner Group (EPG)
Case Study: Union Coop handpicks EPG LFS for Dubai Warehouse.
50
UD Trucks Euro 5 Brand upgrades its current Quester & Croner Euro 3 Trucks with enhanced features.
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DHL Innovation Centre DHL launches first-of-its-kind mobile Innovation Centre in Dubai South.
SPA-Maersk SPA and Maersk Saudi Arabia set up the first Integrated Logistics Park at Jeddah Islamic Port.
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Etihad Rail Etihad Rail joins Global Manufacturing and Industrialization Summit GMIS as a Strategic Partner
2021
December 2021 Issue 86
by QATAR AIRWAYS C ARGO ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven, flexible automation solutions
What we do, we do for you. And what we do, we cannot do without you. Thank you to all our dedicated customers and employees. 160+ destinations served in 2021 127,000+ flights from Jan-21 to Oct-21 More than 1.4M tonnes of cargo transported from Jan-21 to Oct-21 Over 2,600 devoted employees Moved by people qrcargo.com
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Lepidico to set up US$ 95mn Lithium Production Facility in KIZAD n Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of AD Ports Group’s Industrial Cities & Free Zone (IC&FZ) cluster, recently announced the signing of an agreement with Lepidico Ltd, a global lithium exploration and development company, for establishing the first lithium production facility in the Middle East, utilising a first of its kind designed process. Covering a land area of 57,000sqm, the first phase of Lepidico’s development for the AED 348mn (US$ 95mn) chemical
plant will house clean-tech L-Max and LOH-Max process technologies. The process extracts lithium and recovers valuable by-products from lithium-mica and phosphate minerals. As an eco-friendly, zero-waste facility, the residue predominantly gypsum, will be repurposed for use in the construction industry. “We are pleased to host an innovative and environmentally conscious company like Lepidico, which aims to establish the region’s first lithium production
facility in the Middle East, located in KIZAD. The project is a critical enabler for developing an electric vehicle supply chain in the Middle East,”remarked Abdullah Al Hameli, Head of Industrial Cities & Free Zone Cluster, AD Ports Group. “The signing of the Agreement represents an important milestone in developing the first phase of the new chemical plant and enables critical path geotechnical, and infrastructure EPCM works to commence,”stated Joe Walsh, Managing Director, Lepidico.
FedEx Express signs agreement with Dubai South for new Regional Air Hub
n FedEx Express recently signed an agreement with Dubai South to build its new regional hub for the Middle East, Indian Subcontinent and Africa (MEISA) region at the Logistics District. Located in proximity to Dubai World Central Airport (DWC), the new FedEx Express regional hub at Dubai South will incorporate state-of-the-art technologies
6 DECEMBER 2021
to support the company’s regional and global networks and increase operational efficiencies to meet growing trade demands within the MEISA region. The agreement was inked by Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation and Dubai South and Jack Muhs, Regional President, FedEx Express Middle East, Indian Subcontinent
and Africa region. “With increasing trade needs within the region and globally, the ideal location of the hub and our advanced technology solutions will allow us to grow and strengthen our presence in the MEISA region and beyond,” remarked Muhs. “The mega logistic player’s presence will further consolidate our global position as the preferred choice for industry players seeking to operate in an integrated, economic environment, where they would connect with international markets through a multi-modal platform,” noted Al Zaffin. The new FedEx Express regional hub at DWC will provide the opportunity for future flight growth through Dubai, enabling FedEx to expand its commercial footprint to provide businesses and customers faster access to more countries around the world, a press communiqué concluded.
Evocargo seals co-operation agreement with RTA n As part of a long-term strategy to ramp up its presence in the global and regional smart logistics market, autonomous cargo transportation company Evocargo recently signed a cooperation agreement with Roads & Transport Authority (RTA) to showcase and initiate trials of Autonomous Logistics via its unmanned all-electric hydrogen vehicles. “We have ambitious targets to create awareness of smart logistics service provided by full-size unmanned vehicles EVO.3 (N3 class) and EVO.1 (N1 class), which significantly impacts the logistics industry,” noted Andrei Bolshakov, Founder and Chief Business Development Officer, Evocargo International Holdings Limited. “We are bringing this self-driving technology to our customers and the
public at large as this will improve our services and also help us achieve our goal to have 25 percent of all transportation trips in Dubai is through smart and driverless modes,” commented Ahmed Hashem Bahrozyan, CEO, RTA. Evocargo tailor makes each customer’s logistics ecosystem to support smarter, ecological, sustainable and efficient
solutions for their business needs with autonomous vehicles bringing innovation and cutting-edge services in the cargo transportation ecosystem. Bolshakov spoke at the Dubai World Congress for Self-Driving Transport, a global platform for self-driving transport that gathers prominent experts, policy makers, technology manufacturers, researchers and leading academia. He was accompanied by prominent speakers including Eng. Muammar Al Katheeri, Executive Vice President, Engineering & Smart City DSOA and Prof. Sebastian Thurn, CEO, Kitty Hawk.
UPS begins first direct flight from India to Europe n A UPS 747 flight now connects India directly to Europe and connecting UPS customers to North and Latin American markets five days per week, the company announced via a près communiqué. That doubles the company’s previous capacity to and from India for small and medium-sized business customers looking to grow their revenue base. UPS’s first direct flight from India will connect Delhi to its largest international hub at Cologne, Germany. Customers have been diversifying their supply chains as they respond to pandemic disruptions, and cargo space in
the belly of passenger aircraft, normally reliable and cost-effective, has been significantly reduced. The press statement said that more capacity with the Boeing 747 (payload of 307,000 pounds), translates to lower cost for customers and lower emissions with fewer flights needed. “The agility to connect major economies to India via a direct flight for exports and imports is an example of UPS’s better not bigger strategy and will provide reliability and expanded capacity to UPS’s customers,”said Rachid Fergati, Managing Director Middle East, Central
Asia, and Indian subcontinent, UPS. “India is an integral part of our international growth strategy. It’s why we opened a dedicated express terminal at the Delhi airport last year,” commented Deepak Shrivastava, Country Manager, UPS Express India. Building on UPS’s smart global logistics network, and catering to an increase in demand from businesses seeking to expand into new markets and reach their global customers faster, UPS has also launched new flights to Tel Aviv and Istanbul, the press note concluded.
DECEMBER 2021 7
Mitsui and GS Energy to join TA’ZIZ in low-carbon Blue Ammonia project n Abu Dhabi National Oil Company (ADNOC) and ADQ recently announced that Japan’s Mitsui & Co., Ltd (Mitsui) and Korea’s GS Energy Corporation (GS Energy) have agreed to partner with TA’ZIZ and Fertiglobe to develop the world-scale low-carbon blue ammonia facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais. The partnerships are expected to accelerate Abu Dhabi’s position as a leader in low-carbon fuels, capitalizing on the growing demand for blue ammonia as a carrier fuel for clean hydrogen. The agreements highlight the exceptional international investor interest in TA’ZIZ and follow ADNOC and Fertiglobe’s recent sales of low-carbon blue ammonia demonstration cargos to customers in Japan and Korea. “As the world embraces the energy transition, we will work closely with our new partners to jointly develop new hydrogen markets and applications for low-carbon ammonia to meet the
needs of global export markets for the energy and industry markets in Japan and Korea,” commented HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, ADNOC. “Energy solutions remain a strategic focus area for Mitsui. As a responsible member of the global business community, we will continue to contribute to creating an eco-friendly and sustainable future,” remarked Kenichi Hori, President and CEO, Mitsui. “This agreement for the development of world-scale blue ammonia project in UAE represents a meaningful next step in this shared journey, contributing to achieve the ultimate goal of net zero emissions,” noted Yong Soo Huh, President and CEO, GS Energy. In addition to becoming partners,
Mitsui and GS Energy will, upon equity participation and supply commencement, off-take significant volumes of lowcarbon blue ammonia to meet growing demand in the energy and industrial sectors in Japan and Korea, respectively. impacts the logistics industry. Blue ammonia can be used as a lowcarbon fuel across a wide range of industrial applications, including transportation, power generation and industries including steel, cement, and fertilizer production.
Fero announces US$ 1.1mn in funding n Fero, a cloud-based RPA and ERPproducts company that has created TiA, the World’s 1st Intelligent Virtual Assistant for Supply Chain, is announcing the successful closure of the fundraising of US$ 1.1mn from a boutique institutional investor and various prominent angel investors. Fero provides an ecosystem of Transport ERPs and TiA-Transport Interactive Assistant, software to free logistics employees from mundane tasks. TiA listens, understands, talks, & messages over various messaging platforms, just like Alexa built for Logistics enterprises. “The raise is a great validation of the current success and future potential of Fero products and the team,” stated Carolin-Carmen Neubauer, Co-Founder and COO, Fero. Fero, part of the Microsoft Growth X programme and its novel B2B innovation,
8 DECEMBER 2021
is already being adopted and in use by marquee clients such as DSV, Gulftainer and Emirates Logistics with customers in GCC. The Fero’s ecosystem includes SaaS for First, Last and Mid-Mile Transport Management, Delivery Management and the unique SaaS product of a ‘Plug-and-Play Uberization’ for Road-Freight, called FAST (Freight Aggregation Software for Trucking), all of them come with TiA as well as TiA works on with any other Freight ERP in the market. With its new infusion of capital, the company looks to add tech engineers to its team to continue growing its product capabilities, increase its presence in Europe and further work on additional integrations with Freight ERPs, a press communiqué concluded.
Carolin Neubauer, COO & Co-Founder, Fero.
Serco awarded Management contract for Ras Al Khaimah International Airport Services n Public Services Company Serco Middle East has been awarded a 5-year contract to provide essential technical air traffic services including aerodrome control and approach control on behalf of Ras Al Khaimah International Airport, commencing February 2022. The contract was signed by Serco Middle East CEO Phil Malem and HE Engr. Salem Bin Sultan Al Qasimi, Chairman of Department of Civil Aviation, Ras Al Khaimah at Dubai Airshow 2021. Serco will be managing and maintaining an orderly flow of air traffic and coordinate aircrafts both in air and in relevant areas in the airport and support the airport in interaction and compliance with GCAA regulations. “This new contract award and partnership is a testament to our longstanding knowledge of the region and industry and is another stepping stone to expanding our transport business in the Middle East,” remarked Malem. “This partnership plays to our strengths, and I am confident that our airport team will be able to bring the latest standards, policies, procedures and technologies to transform the airport services with notable advancements,” commented HE Salem Al Qasimi. “We are happy to have an operationally reliable partner for the growth of the airport and this is basically our main target for the future as well,” noted Atanasios Titonis, CEO, Ras Al Khaimah International Airport.
Marius Ciavola, CEO, Tradeling.
Tradeling and TAITRA sign agreement to foster B2B e-Commerce trade n Tradeling, the hyper-growing eMarketplace focused on business-to-business (B2B) transactions in the Middle East and North Africa, recently signed a Memorandum of Understanding (MoU) with Taiwan External Trade Development Council (TAITRA) to enable Taiwan-based manufacturers, retailers and brands to export their goods and services to the MENA region on Tradeling’s e-commerce platform. The agreement will allow both entities to exchange information on trade, policies, goods, services and partnership possibilities that may be available from either side and to create partnerships by introducing each other to key service providers ranging from system integrators to logistics companies. Tradeling will also provide logistics support and services such as trade finance and product registration and certification to Taiwanese companies to facilitate trade opportunities without the need for travel to the region. “Tradeling will be organizing meetings, webinars, and seminars to inform the business community about the investment potential available and the efficiencies being achieved through B2B ecommerce,” asserted Marius Ciavola, CEO, Tradeling. “Tradeling’s local know-how, e-commerce platform and total solution services will definitely enhance the trade between Taiwan and MENA,” commented Fu-Tai Wei, Director of Taiwan Trade Centre, Dubai. According to the Taiwan Bureau of Foreign Trade, Ministry of Economic Affairs, bilateral trade between Taiwan and the UAE totaled US$ 4.3bn in the first 3 quarters this year, an increase of 47.4% over last year, including an increase of 10.3% in exports to the UAE.
DECEMBER 2021 9
Emirates Post partners with ENOC Group to enhance its last-mile delivery services n Emirates Post, UAE’s official postal operator and leading express provider, recently announced that it has partnered with ENOC Group to enhance customer experience in its last-mile delivery services in line with its leading drive to support the growth in logistics and e-commerce in the UAE. ZOOM, a leading home-grown convenience store chain owned by ENOC Group, has become a convenient pick up and drop-off location for customers sending or receiving courier shipments via Emirates Post. Both Emirates Post customers and business partners can benefit from this new partnership. The agreement offers a flexible way for customers to pick-up or drop-off their courier packages by
choosing the ZOOM store that is accessible and convenient to them. It also provides an additional delivery location option for businesses using Emirates Post for the fulfillment of their last mile deliveries, a press communiqué indicated. “Offering ease and convenience to our customers is at the core of our Group’s ethos and partnering with Emirates Post,” stressed Saif Humaid Al
Falasi, Group CEO, ENOC. “The new ‘Emirates Post Service Point’ is set to enhance customer experience as well as add value to the growing demand for last-mile solutions across the country. Partnerships such as this one sets to boost Emirates Post’s network of services and successfully integrate convenient locations in the company’s last-mile delivery options,” commented Peter Somers, CEO of Emirates Post.
Emirates SkyCargo signs E-commerce MoU with Emirates Post n Emirates SkyCargo recently signed a Memorandum of Understanding (MoU) at the Dubai Airshow 2021. The MoU was signed by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo, and by Abdulla M. Alashram, Group CEO, Emirates Post Group. Under the terms of the MoU, the two entities will work together to develop an e-commerce end-to-end global logistics platform, with a key focus on serving markets in the Middle East, Africa and West Asia. This will be a first of its kind partnership between an airline cargo carrier and a national postal operator combining the global network and capacity strengths of Emirates SkyCargo with the last-mile delivery expertise and partnerships of EPG’s ‘Emirates Post’ business. The partnership will pivot on the strength of Dubai as a global hub for logistics and will encourage e-commerce businesses to set up operations in the city, ideally positioned as a gateway
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to major consumer markets, a press communiqué stated. With its sophisticated transport links, transit hubs and supply chain infrastructure, Dubai is also well positioned to handle global flows and volumes of e-commerce cargo. “Through this partnership, we will now also be able to draw upon the logistical
and last-mile delivery expertise of EPG’s Emirates Post to create a global platform for e-commerce centred out of Dubai,” observed Sultan. “Emirates Post Group continues to keep up with the global trends in e-commerce and is keen to explore innovative solutions through this strategic partnership,” commented Alashram.
AD Ports Group to develop and operate Egypt’s Safaga Port n AD Ports Group, a leading facilitator of trade and logistics, has signed a Memorandum of Understanding (MoU) with the Egyptian Group for Multipurpose Terminals, the commercial arm of the Egyptian Ministry of Transportation, for the development and operation of a multipurpose terminal in Safaga Port. The agreement was signed in the presence of Kamel El Wazir, Minister of Transportation, Egypt by Saif Al Mazrouei, Head of Ports Cluster, AD Ports Group
and Rear Admiral Abdul Qadir Darwish, Chairman of the Egyptian Group for Multipurpose Terminals. The MoU aims to support the growth of the Middle East’s industrial and logistics sectors, as well as assist in opening new markets for Egyptian exports via direct maritime routes across the Arabian Gulf, East Asia, and Africa regions. “We are confident that the cooperation will prove beneficial for both sides, as it combines the unique characteristics
of Safaga Port with the long-standing expertise offered by AD Ports Group in managing and operating maritime terminals,” commented Al Mazrouie. “The investment environment in Egypt is rich with opportunities, and it is crucial that we advance and enhance seaports in Egypt so that they become centres for further commercial development, and competitive with other international ports. In turn, this will greatly benefit our nation’s national economy,” concluded Rear Admiral Darwish.
Dubai Customs’ Jebel Ali Centre completes 2.2mn transactions for Q1-Q3 2021 n Jebel Ali and Tecom Customs Centre at Sea Customs Centers Management, one of Dubai Customs’ departments, crossed the two million bar by completing 2.189mn customs transactions in the first nine months of 2021 for goods with a value exceeding AED 609bn (US$ 165.8bn) and volume of 79,369 tons. The Centre made 164 seizures and 172,394 inspection operations, and scanned 223,711 containers and consignments in the same period within its consistent development plans and efforts to facilitate trade, secure the borders and help maintain the leading status Dubai enjoys worldwide,
according to a press statement. “We improved the performance of Jebel Ali Center further by developing and updating the inspection systems in place to thwart all smuggling attempts and protect our society from the hazards of prohibited goods,” commented Fouad Al Swaidi, Acting Director, Jebel Ali Customs Centres Management. “We give special attention to raise the efficiency of our people to ensure quick and quality services are delivered to our clients, with the aid of advanced AI based technologies,” remarked Ahmed Al Jamri, Inspection Senior Manager Jebel Ali and Tecom Centre.
DECEMBER 2021 11
AD Ports Group acquires 31 New Tipper Trucks n MICCO Logistics, a subsidiary of AD Ports Group, recently acquired 31 tipper trucks as part of their effort to offer broader integrated logistics support to the UAE’s construction and metals manufacturing sectors. The trucks will join MICCO’s existing ground fleet of 400 plus vehicles that currently service a number of different industry sectors, including the Pharmaceutical, Healthcare, Fresh and General Cargo. The new tipper fleet has a combined transport capacity of over 2,300 metric tonnes and is capable of moving material and supplies between ports, factories, and different development sites across Abu Dhabi and the rest of the UAE. The latest acquisition aims to further diversify the range of services offered by AD Ports Group and enables MICCO to support increased customer demand. The fleet will be fully equipped with pre-installed Fleet Management Systems (FMSi) incorporating and integrating the latest real-time vehicle geo-fencing and telematics technology. “The addition of the new tipper trucks to MICCO’s already impressive vehicle fleet broadens AD Ports Group’s logistics offering and helps boost our status as one of the regional and global leaders in the logistics supply chain
space,” remarked Robert Sutton, Head of Logistics Cluster, AD Ports Group. “As a member of the broader AD Ports Group family, our team at MICCO is working hard to bring our proven service excellence, along with our expanding capabilities, to a new and relatively underserved market segment,” commented Clifford D’Souza, EVP and Chief Operations Officer, MICCO Logistics.
Aramex Launches Aramex Go in Saudi Arabia n Aramex recently announced the launch of Aramex Go, an innovative shipping platform that enables Saudibased entrepreneurs and startups to seamlessly ship products to domestic or international destinations without having a registered profile or a permanent Aramex account. Over the last two years, Saudi-based entrepreneurs and startups have grown exponentially, the majority of which are in the e-commerce businesses. Those businesses require logistics solutions as a key enabler for business growth. With Aramex Go, Aramex provides an innovative, easy to use platform meeting the needs of these entrepreneurs and startups. Users of the platform will benefit from competitive rates and flexible payment solutions through online payment, cash upon collection, as well as cash-ondelivery (COD) services. The platform
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also delivers a great level of efficiency by real-time visibility across global freight allowing multiple shipment creation per forwarding operations, the statement session, a press communiqué stated. concluded. “We believe that our innovative solution will be a game-changer for entrepreneurs whose business models depend on reliable, affordable, and convenient logistics services,” remarked Abdulaziz Alnowaiser, General Manager, Aramex, Saudi Arabia. “We believe that Aramex GO will champion the success of Saudi entrepreneurs by providing them reliable, efficient, and technologydriven platforms that will enhance their competitiveness in local and global markets,” commented Mohammed Sleeq, Chief Digital Officer, Aramex. Aramex also launched Aramex SMART, a full stack payment and delivery solution for e-tailers, as well as CargoWise, an integrated logistics execution platform that Abdulaziz Alnowaiser, General Manager, Aramex, KSA. provides customization, automation and
December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
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AD Ports Group and Iraqi Ports sign MoU to promote co-operation and investments
n AD Ports Group recently signed a Memorandum of Understanding (MoU) with the General Company for Ports of Iraq (GCPI) to promote increased cooperation between the two organizations within the fields of transportation and maritime. The agreement was facilitated during a recent visit of a high-level delegation and signed in the presence of HE Suhail Bin Al Mazrouei, Minister of Energy and Infrastructure in the UAE, and HE Nasser Hussein Al Shebly, Minister of Transportation in Iraq. Set for an initial period of 12 months with a clause for automatic renewal, the MoU will see the exchange of expertise and best practices by both organisations. Additionally, AD Ports Group will conduct feasibility studies on the management and operation of the General Company for Ports of Iraq’s ports and economic zones and other infrastructure, while also exploring potential investment opportunities. As part of its scope, AD Ports Group will also develop national infrastructure, such as roads and rail networks, which will connect Al Faw Ports in Iraq with markets in Jordan and Turkey, while simultaneously financing the feasibility studies stated in the MoU. “We are transferring this invaluable knowledge to our kin in Iraq in order to support the formulation of a diverse and sustainable economy in Iraq,” remarked HE Al Mazrouie. “It is our privilege to announce the start of this new cooperation with AD Ports Group. The MoU will serve as the starting point for future collaboration that will drive the development of a wide range of services,” commented HE Al Shebly.
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ADNOC Logistics & Services to develop new Port and Logistics Facility for TA’ZIZ n ADNOC Logistics & Services (ADNOC L&S), and AD Ports Group have signed an agreement to develop a new port and logistics facility at TA’ZIZ, the chemicals production and industrial hub currently under development at Ruwais, United Arab Emirates (UAE). “The new port will consolidate the UAE’s competitiveness as an international supply chain hub for energy and industry and further positions TA’ZIZ as the preferred partner for investing in the growth of the UAE’s advanced manufacturing base,” noted Captain Abdulkareem Al Masabi, CEO, ADNOC L&S. “Our collaboration with ADNOC L&S to develop a port and liquid terminal facility to support TA’ZIZ is aligned with our vision of driving the growth of international trade in the Emirate,” observed Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group. Three large-scale berths and associated infrastructure in addition to loading and unloading facilities will make up the foundation of the new port. The two liquid berths measure 640 meters in length with the dry bulk berth measuring 320 meters,
which combined equals 10 football pitches. ADNOC L&S is the largest integrated shipping and maritime logistics company in the Middle East, with a fleet of over 240 owned and chartered vessels and integrated solutions models covering the entire oil and gas supply in the UAE. The company operates the largest and only purpose-built oil and gas logistics base in the UAE, providing a wide range of diversified services to the offshore industry. ADNOC L&S’ recent 25-year exclusive agreement to service all Petroleum Ports in Abu Dhabi solidifies its role as the oil and gas supply chain champion in the UAE.
Etihad Rail completes excavation works of all tunnels of the UAE National Rail Network n HH Sheikh Hamed Bin Mohammed Al Shari, Member of the Federal Supreme Council and Ruler of Fujairah, stressed the importance of the completion of excavation of all rail tunnels of Package D of Stage Two of the UAE National Rail Network. This will be a key element of the global supply chain, and play a vital role in sustaining the position of the UAE as a global and regional transport, shipping and logistics hub. HH Sheikh Hamed Bin Mohammed Al Sharqi, Member of the Federal Supreme Council and Ruler of Fujairah and His Highness Sheikh Mohammed bin Hamad Al Sharqi, Crown Prince of Fujairah, visited the Sakamkam area in Fujairah,
in the presence of HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman, Etihad Rail, to mark the completion of excavation works of all the nine tunnels, which extend over 6.9km. The completion of the excavation of the nine tunnels recorded one million working hours. The project was supervised and carried out by more than 600 experts, specialists, and workers
Rafed consolidates its leading procurement position with International CIPS Certification n Rafed, the UAE’s primary group purchasing organisation (GPO) for the procurement, supply chain management, storage and distribution of essential medical equipment pharmaceuticals, has received certification status from the Chartered Institute of Procurement and Supply (CIPS) for Ethical Procurement and Supply. The certification places Rafed among the first healthcare organisations in
the Middle East to have received the international recognition, and was the result of almost 70 of Rafed’s procurement team undertaking more than 200 hours of training and examinations. “This accolade further strengthens our position as a leading group purchasing organisation and reaffirms our founding principles based on ethical practices, strengthens our ongoing commitment
using the latest tunnelling machinery and modern technologies. In this regard, Etihad Rail took a series of precautionary measures to limit the noise and vibrations caused by excavation using the explosive blasting methods and their impact on nearby communities, using innovative machinery and equipment that helped overcome these challenges effectively.
to ethical practices, and reinforces our credibility,” affirmed Rashed Saif Al Qubaisi, CEO, Rafed. “As a key resource of support for the UAE’s leading medical facilities, it is imperative that we operate to the highest standards as we strive to further enhance the region’s medical procurement sector,” he added. “Ethics and ethical practices are increasingly coming into question across the supply chain, requiring companies to evaluate their behaviours and sourcing channels,” asserted Sam Achampong, Regional Director, CIPS MENA. “In receiving this CIPS certification, Rafed has demonstrated its commitment to ethics in procurement, ensuring these practices are a firm cornerstone of its business operations,” he continued. This month marks Rafed’s first anniversary, which has seen the organisation play an integral role in the UAE’s distribution of Covid-19 vaccinations, and other essential pharmaceuticals and medical supplies both locally in the UAE and internationally.
DECEMBER 2021 15
Etihad Cargo to deploy AI-powered Airfreight Loading n Etihad Cargo has entered into a Proof-of-Concept agreement with Speedcargo, the leading-edge logistics technology solutions provider, to utilise the Singapore-based provider’s Artificial Intelligence (AI) products to boost cargo capacity on flights. The landmark agreement makes Etihad Cargo only the second aviation company worldwide to leverage the Cargo Eye dimensioning system, and among only a few global carriers to trial Speedcargo’s AI-powered Cargo Mind software solution, which delivers optimal cargo space planning and utilisation in seconds in full adherence to regulations and business constraints. “Etihad Cargo’s goal is to assess whether implementing Cargo Eye and Cargo Mind could ensure a complete end-to-end process which totally transforms airfreight operations,” explained Martin Drew, SVP Sales and Cargo, Etihad Aviation Group. “The Proof-of-Concept will confirm whether these advanced Speedcargo products can boost efficiency, productivity and
revenue returns through digital technology solutions, with the plan to integrate them into our operations in 2022,” he continued. Cargo Eye, developed with Microsoft’s Time-of-Flight sensing technology, captures imagery of incoming cargo and calculates accurate dimensions based on cargo type, size and packaging in real time, while seamlessly integrating the data into existing warehouse management systems. The solution also feeds data into Cargo Mind to accurately build load plans, monitor and promote data compliance, and identify damaged cargo to reduce potential claims. “Etihad Cargo is the first airline to propose using Speedcargo’s new Cargo Mind-Airline Product for early-stage flight planning and creation of final booking lists and first level load plan within the airline ecosystem,” remarked Dr. Suraj Nair, Founder and Chief Technology Officer, Speedcargo.
Etihad Engineering awarded Boeing 737 n Etihad Engineering, the aircraft maintenance, repair, and overhaul (MRO) services provider based in Abu Dhabi, United Arab Emirates, has been awarded a heavy maintenance contract by Virgin Australia for its Boeing 737 fleet. The scope of the contract covers heavy maintenance and modifications on more than 30 nose-to-tail aircraft for the largest airline by fleet size under the Virgin brand. The contract was announced during the Dubai Airshow 2021. Etihad Engineering showcased its comprehensive range of aircraft maintenance and engineering solutions at the event. “With Australian borders reopening and international flights resuming, we are all geared up to support the Virgin Australia team ensuring its Boeing 737 fleet continue to take to the skies in top shape as they meet the projected increase in passenger demand,” noted
16 DECEMBER 2021
Abdul Khaliq Saeed, CEO, Etihad Engineering. “As domestic and international flying ramps up from an Australian perspective, Virgin Australia is as focused as ever on safety and on ensuring our aircraft operate at, and are maintained to, the highest possible standard,” commented Stuart Aggs,
COO, Virgin Australia. Etihad Engineering’s advanced facility is located in Abu Dhabi, adjacent to Abu Dhabi International Airport, over an area of 500,000sqm with 140,000sqm dedicated to aircraft parking and preservation. Aircraft hangars at the facility cover approximately 66,000sqm, including 10,000sqm of aircraft painting facilities.
December 2021 Issue 86
CUSTOMIZED IN-HOUSE SOLUTIONS FOR YOUR BUSINESS automotive logistics
fashion logistics ENHANCING THE BUSINESS OF LOGISTICS
healthcare logistics
Swisslog showcases its data-driven, flexible automation solutions
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AP Moller-Maersk enters strategic partnership with Vestas on all containerised transport n As part of maneuvering successfully in a challenging environment, Vestas and Maersk have formed a long-term strategic partnership for all containerised transport, the companies announced in a press communiqué. The partnership includes door-todoor transport from the company´s suppliers to their factories and service warehouses as well as containerised site parts and transport equipment. In addition, the partnership also includes all airfreight shipments. The partnership does not include non-containerised road transport and outbound transport, which will continue to be managed by DSV and
other partners. “By partnering with Maersk, we can further accelerate the deployment of wind energy and protect profitability, while working together on developing solution that can make our supply chain more sustainable,” noted Tommy Rahbek Nielsen, Chief Operating Officer, Vestas. “We will work to provide fast, resilient and dynamic supply chain solutions to Vestas as a modern end-to-end logistics company with fully controlled assets, while empowering them and turning complications into opportunities,” observed Vincent Clerc, Executive Vice President and CEO, Ocean and Logistics,
AP Moller-Maersk. By partnering with Maersk, the world’s largest asset owner within shipping and containers, Vestas gets direct access to container capacity at a fixed price. This would otherwise be hard to secure in the current environment and thus, it will help ensure business continuity and cost predictability. The existing DSV partnership will continue with a special focus on noncontainerised transport. This means that in addition to the Maersk strategic partnership, Vestas will continue to work closely with DSV and many other partners within other areas of transport. The partnership is effective from 1 January 2022.
AlMalki Group upgrades Warehousing Management with Infor and SNS n Infor, the industry cloud company, and partner SNS, a leading provider of supply chain consultancy and software implementation recently announced that AlMalki Group, has deployed the latest version of Infor WMS (Warehouse Management System). The company relies on efficient and dynamic warehouse operations to support large numbers of outbound orders generated via e-commerce channels. Having used Infor WMS for many years, the group has now upgraded and expanded the solution to support a more digitalised operation and underpin future growth. Infor WMS version 11.4.1 was selected based on its ability to deliver entirely paperless picking and packing methods to boost productivity, and capture all data, both inbound and outbound, to instill visibility and expedite decision-making and customer service, the press statement continued. “With more than 105 brands, we operate high numbers of SKUs, and as such, require seamless warehouse processes and technology from which to maximise efficiency, space utilization and order
18 DECEMBER 2021
reliability,” commented Khaled ElDamouri, Supply Chain and Logistics Director, AlMalki. “Warehouse efficiency, reliability and capacity are the cornerstones of any distributor operating today and, in the field of luxury goods, consistency and the very highest service standards are paramount,” comments Mario Ghosn, General Manager, SNS. “We’re delighted to be working with AlMalki Group, delivering the best warehouse platform via Infor WMS, and helping the group to embrace growing e-commerce demand in the coming years across the region.” Founded in 1952, AlMalki Group is headquartered in Jeddah, Saudi Arabia, and is one of the region’s largest distributors and retailers of luxury goods.
Saudi Arabia’s TRSDC advances digital transformation with SAP n The Red Sea Development Company (TRSDC), which is driving the development of the giga-project The Red Sea Project (TRSP), recently announced that it is advancing its digital transformation with global technology company SAP. Along Saudi Arabia‘s west coast, the Red Sea Project is a regenerative tourism destination spanning 28,000sqm spanning more than 90 unspoiled islands and inland sites. The first phase of 16 hotels will open in late 2022. “As part of our digital transformation roadmap with SAP, The Red Sea Development Company is optimizing our operational efficiency, procurement costs, and talent development,” remarked Ammar Alomani, IT Applications Associate Director of TRSDC. “We are pleased to continue our relationship with SAP having passed through two successful phases with the company already. Having business applications available at the click of a button changes the way employees work, increases productivity and work
from our offices here in Riyadh or on our destination sites”, commented John Pagano, CEO, The Red Sea Development Company. “Digital transformation gives us a solid foundation stone to work from. We’ve become virtually paperless and opened a new chapter of free-flowing information and efficiency,” continued Pagano. TRSDC is already running on the SAP S/4HANA real-time business
suite, the SAP Ariba digital platform, the SAP SuccessFactors human experience management suite, and SAP’s customer experience suite, a press communiqué stated. “Since the beginning of our partnership with The Red Sea Development Company, SAP has been committed to delivering on its promise to deliver best-in-class software innovations,”noted Ahmed AlFaifi, Senior Vice President and Managing Director, SAP Middle East North.
Etihad Airways partners with Microsoft on driving sustainable strategy n Etihad Airways has announced a new partnership with Microsoft, leveraging its latest tools and technologies to advance its sustainability goals.. Under the agreement, the companies will be working together to use advanced analytics and AI to measure and benchmark Etihad’s environmental footprint, allowing the business to implement and assess carbon efficiency savings across its business operations. The innovative collaboration will focus on the implementation of cutting-edge tools and technologies which will turn data into actionable insights and unlock scenarios and use cases that will help Etihad reduce its carbon footprint. “Innovation and sustainability are at the core of our business, and our continued partnership with Microsoft will support us in meeting our sustainability goals to reduce carbon emissions both in the air through operational efficiencies, and on the ground, through improvements in our back office processes and technology infrastructure,” explained Tony Douglas, Group CEO, Etihad Aviation Group. The innovative collaboration will focus on the
implementation of cutting-edge tools and technologies which will turn data into actionable insights and unlock scenarios and use cases that will help Etihad reduce its carbon footprint. “We are aligned with the UAE’s long-term sustainability goals and practices to accelerate growth responsibly, while fulfilling the nation’s ambitious objectives,” asserted Sayed Hashish, General Manager, Microsoft UAE.
DECEMBER 2021 19
ADNOC awards US$ 1.46bn EPC contracts for the Dalma Gas Development Project Mauro Felice, Market Region Manager, Assa Abloy Opening Solutions MEIA, Assa Abloy.
n The Abu Dhabi National Oil Company (ADNOC) recently announced the awarding of two engineering, procurement and construction (EPC) contracts totalling US$ 1.46bn (AED 5.36bn) for the Dalma Gas Development Project. The Dalma field is part of the Ghasha Concession which is the world’s largest offshore sour gas development and an important enabler of gas selfsufficiency for the UAE. The two EPC contracts, awarded to National Petroleum Construction Company (NPCC) and a joint venture (JV) between Tecnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines and umbilicals. Package A of the two Dalma EPC contracts was awarded to NPCC and is valued at $514 million (AED1.89 billion). Package B, awarded to the Tecnicas Reunidas and Target Engineering JV, is valued at US$ 950mn (AED 3.49 bn) and covers the EPC of gas conditioning facilities for gas dehydration, compression and associated utilities on Arzanah Island located 80km from Abu Dhabi. “As we continue to execute this strategic project, we are ensuring it delivers substantial In-Country Value to drive economic growth and support the objectives of the UAE’s Principles of the 50,” noted Yaser Saeed Almazrouei, ADNOC Upstream Executive Director. Both engineering contracts are expected to be completed in 2025 and will enable the Dalma field to produce around 340 million standard cubic feet per day (mmscfd) of natural gas. As part of this, ADNOC and its partners have today awarded a contract to Technip Energies to update the Front-End Engineering and Design (FEED) for the concession.
20 DECEMBER 2021
Assa Abloy breaks ground for top-notch facility in NIP n Assa Abloy Group, the leading Swedish intentional company in access solutions recently held the groundbreaking ceremony for its first facility in National Industries Park (NIP). Through the new facility, ASSA ABLOY will leverage NIP’s state-ofthe-art infrastructure and flexibility in the logistics chain owing to the readily available transportation and freight services. Spread over an area of 24,000sqm, which is approximately 10 times the size of the Swedish pavilion in Expo 2020 Dubai, the facility will be the headquarters for the Middle East, India, and Africa (MEIA) region. It will also house a 6,000sqm manufacturing area, a 2,000sqm warehouse and an 800sqm showroom that will display the company’s comprehensive range of products. The groundbreaking ceremony for the facility was held in the presence of Ahmad Al Haddad, COO, Parks and Zones, DP World UAE who was present to support the company that also has a facility in Jafza; Mauro Felice, Market Region Manager, Assa Abloy Opening Solutions MEIA, Assa Abloy, and other top management officials. “Such facilities will complement the country’s plans of increasing the industrial sector’s contribution to the national GDP from the current AED 133bn to AED 300bn by 2031,” observed Abdulla Al Jasmi, Head of NIP. “Over the years, we have worked closely with them to enhance their facilities in the free zone with our secure access systems. Our aim now is to become a preferred choice for all the other facilities in Jafza and NIP,” commented Felice.
December 2021 Issue 86
HOW CAN THE MOBILE RACKING SYSTEM MAXIMIZE YOUR WAREHOUSE SPACE? ENHANCING THE BUSINESS OF LOGISTICS
The Mobile Racking System is a high-density storage system, by tapping into the vertical volumetric space, it reduces the warehouse footprint by 45% yet increases the storage capacity by up to 85%. As a warehouse owner you will save on the total building cost of a new warehouse with a faster return of investment.
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Global leader Swisslog showcases its data-driven, flexible automation solutions for the warehousing industry Swisslog Middle East demonstrated a variety of smart warehousing solutions that can help organizations to improve productivity, drive substantial cost reductions and to reduce storage space.
T
he Covid-19 outbreak has undoubtedly triggered interest in automation and robotics and has increased pressure on businesses to improve operational efficiencies, reduce costs and to innovate and grow. The pandemic has demonstrated the creativity, resilience and ingenuity of businesses as well
22 DECEMBER 2021
as the importance of having a clearly defined automation strategy at the core of their business processes. There is renewed interest and critical need for smart solutions that optimize process management, increase productivity and facilitate efficient use of space that are critical to warehousing in many key industries
such as e-grocery, e-commerce and retail. In the Middle East and North Africa (MENA) region, the increasing demand and usage of e-commerce and e-retail prompted the logistics sector to work towards higher productivity and cost efficiency. The warehouse automation market in the
SWISSLOG
DECEMBER 2021 23
SWISSLOG
region is estimated to reach a value of US$ 1.6bn by 2025. Furthermore, the UAE highlighted the importance of automation and launched an awareness campaign on the importance of smart warehouse management systems (WMS) for more than 21,000 companies.
E-commerce surge
The growth of e-commerce is the major driver for warehouse automation. In a survey conducted in Saudi Arabia and the United Arab Emirates, more than 40 percent of respondents said that fast delivery is one of the main factors influencing their choice of online shopping platform and automation within fulfillment warehouses is key to support businesses attain these required lead-times.
Efficient, flexible systems
At Materials Handling Middle East,
David Dronfield, General Manager, Swisslog
24 DECEMBER 2021
Swisslog showcased its proprietary AutoStore with an autonomous live demo. It is a highly efficient robotized storage and order processing solution that integrates easily into existing buildings. The system also provides the flexibility and scalability to meet changing demand while continuing to compress order cycle and delivery times. Also on display were other solutions by Swisslog such as CycloneCarrier which is a dynamic, reliable, efficient and best-in-class automated shuttle system designed for industries where high throughput and excellent availability are essential. It is particularly well-suited for the requirements of the e-commerce, pharmaceutical and fresh food industry. It is designed for applications where high throughput and excellent availability are essential, for example in Retail and e-Commerce for returns
handling, replenishment, or buffer for order consolidation. Visitors could also learn more about the company’s portfolio and expertise in pallet handling automation. “Our solutions are tailored to our clients’ unique business needs and challenges so that they can make this transition as smoothly as possible and reap the benefits of automation. We are working to change the perception of automation in the Middle East and help organizations effectively. We believe that the time is apt for automation in the Middle East” added Dronfield. Global Supply Chain: conducted an exclusive interview with the freshly inducted David Dronfield where he responded to multiple questions on a range of both company and industryrelated subjects and issues.
Global Supply Chain (GSC): As the newly appointed General Manager for Swisslog in the Middle East,
what are your top priorities for the company for the short and possibly the long-term? David Dronfield (DD): Swisslog have a fantastic client relationship in the region and I aim to continue to build and strengthen these relationships while extending our current client base. GSC: How have your priorities and expectations been rearranged and what kind of new demands and pressures are being put on your business now in this pandemic-era? (DD): Responding to the increasing interest in our solutions
portfolio is stretching our resources, but the team has remained committed to guiding and consulting our clients to develop the solutions that best suit their unique criteria. GSC: How important is automation for the logistics in the Middle East and what trends are you observing in the region? DD: The Middle East is an emerging player in the world wide map, and across the key industry sectors efficiency to compete is key to the ongoing success and development of the region. As supply chains converge in the Middle East, operators are constantly
seeking to gain or retain a competitive edge, for both existing industry sectors and those competing to gain from other regions. The cost per unit handled along the supply chain continues to receive increasing scrutiny and automation is one of the key drivers for lowering costs and increasing customer service levels while providing justified ROI. Operators continue to question the viability and justifications for increasing labour based operations without considering the benefits of automation. GSC: What opportunities and challenges confront Swisslog ME going forward in the current landscape?
DECEMBER 2021 25
SWISSLOG
DD: We often have conversations with clients who acknowledge the benefits that automation brings to their operations but continue to retain their perception of ‘automation is expensive’. Repeating my earlier comment, all systems proposed are based on data analysis from client operations and supported with business case justification and cost benefit analysis including ROI. GSC: What are your expansion plans for the company for the foreseeable future in the region? DD: Of course our plans are confidential, but our aim is to be present in all GCC countries providing full consultation and dedicated aftersales support. GSC: How significant is the region for Swisslog ME? DD: Swisslog has established its base within UAE and will expand into the region with a strategy that ensures strong customer support.
26 DECEMBER 2021
The Middle East is viewed long term to be a very strong region for Swisslog. GSC: How is Swisslog ME performing currently (H1-2021) and how does that compare with the corresponding period in H1-2020? DD: While the first half of 2020 was initially affected by the Covid pandemic, the rapid increase in demand for e-commerce solutions ensured 2020 finished strongly and 2021 commenced with a healthy order bank. GSC: What are your expectations for the remainder of 2021 and how do you hope to close this year? DD: As we close on 2021 we are concluding multiple projects that ensure the budgets for this year and will provide a strong foundation for 2022 and 2023. GSC: Describe Swisslog’s partnership with the KUKA Group?
DD: As Swisslog we are the representative of the KUKA Group in the region and will look to leverage the group strengths in robotics and industrial automation within our solution scope. GSC: Briefly summarize some of the more recent Swisslog proprietary technologies that have potential and positive bearing on the logistics / warehousing sector in the region? DD: All our technologies have potential in the region. Definitely our pallet automation solutions for traditional high bay operations, with shuttle or crane technology: In our light goods portfolio, we are the leading provider of AutoStore in the Middle East region and globally with over 300 projects: Swisslog.com/ AutoStore We also have sophisticated robot technologies such as ItemPiQ and ACPaQ. We also implemented miniload projects in the region with our Tornado Stacker crane.
December 2021 Issue 86
PERFORMANCE AND RELIABILITY ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven, flexible automation solutions
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Swisslog completes major automated storage and retrieval processes for Mai Dubai Following the implementation of fully automated and data-driven intralogistics system, the bottled water supplier has benefited with double production, storage capacity and reduced labour costs. Global warehouse automation specialist, Swisslog recently announced the successful installation and implementation of a new fullyautomated storage and retrieval solution for Mai Dubai, a leading Dubaibased bottled drinking water company. The move is part of Mai Dubai’s ongoing expansion initiative and involves the implementation of a fully automated and data driven intralogistics system that is in line with industrial revolution 4.0. As part of an order valued over Euro 20mn (US$ 23.81mn), Swisslog planned and implemented a fully automated system based on intelligent software in the context of big data. The major expansion project included planning and implementing a six-aisle automated high-bay warehouse for raw material and packaging materials as well as an adjacent high-bay warehouse with 17,560 pallet locations for finished goods with 10 aisles.
Advantage Swisslog
The use of Swisslog’s fully automated storage and retrieval solution will help drive key benefits and advantages for Mai Dubai, including a significant reduction in labour costs, improved production and enhanced storage efficiencies. The installation proves to be both timely and strategic – expecting to sustain Mai Dubai’s continuing growth since its inception in December 2012. The company, which is already widely recognized for its excellent reputation, is the official bottled water partner of Emirates Airlines and has also become a household
28 DECEMBER 2021
brand name in Oman, Bahrain, and 13 other countries across Asia, Europe and Africa. The installed Swisslog solutions included the Vectura Pallet Stacker Cranes (ASRS) which are known for its optimized energy-efficient design and delivery of highly efficient storage and retrieval with minimal energy costs; a monorail system complete with 44 trolleys; a pallet conveyor and lifting systems that ensure the efficient flow of goods and sequencing of pallets in receiving and shipping.
Swisslog proprietary software
The company also deployed an advanced high-performance information technology (IT) infrastructure and controls systems, the Swisslog Warehouse Management Software (SynQ), which allows for real-time 3D visualization and condition monitoring of the entire operations. The modular software platform also offers a number of big-data business intelligence tools that can be flexibly added over the time. With its modular architecture and user-friendly design, the WMS software helps Mai Dubai to be prepared for the future. “The implementation of automated and digitalized logistics solutions is part of and contributes to our customerfocused approach. This initiative has helped us not only to improve our production control but also allowed for greater storage density and increased efficiency,” asserted Alexander van‘t Riet, CEO, Mai Dubai. To help ensure business and operational continuity, Swisslog Middle East works as a trusted business partner, providing Mai Dubai with
24/7 on-call support services and preventive maintenance for the equipment in order to ensure high availability (>98%) and low operational downtime.
SWISSLOG
GSC: Tell us about Swisslog ME’s partnership with Mai Dubai? DD: Mai Dubai is one the largest project partnerships for Swisslog in the region. The solution is a complex integration of technologies that support a highly efficient operation. We look forward to a long term partnership with Mai Dubai. GSC: Why did Swisslog participate in Seamless 2021? What did you accomplish there? DD: Over the past months, many existing and potential clients
As Swisslog, we are the representative of the KUKA Group in the region and will look to leverage the group strengths in robotics and industrial automation within our solution scope.
enquired regarding our presence at Seamless 2021. At the venue there was a particular interest to meet and discuss our highly effective e-commerce solutions, particularly for grocery and electronic distributors. Based on this enquiry level we confirmed our participation at Seamless and had a very busy schedule at our stand. GSC: How big is the Swisslog footprint in the warehousing /e-commerce / robotics sectors? DD: period in H1-2020?
DECEMBER 2021 29
SWISSLOG
DD: We believe that clients from key industry sectors would always look to discuss their operational problems and opportunities with Swisslog. Our consultative approach to determine unique client solutions ensures we are foremost in the minds of clients
when considering automation as part of their supply chain roadmaps. GSC: As the official at the helm, what is your vision for Swisslog ME going forward? DD: Our vision is for a fully integrated Swisslog presence across the region, managed by a
talented pool of professionals in all countries ensuring the ‘One Swisslog’ approach for all customers. In key industry sectors, when a client is looking to improve their supply chain performance via intralogistic performance, they will call Swisslog first.
Antonio Trioschi CEO, Swisslog
Swisslog announces new CEO and makes other key appointments Swisslog has announced a series of new appointments within its senior management team to support continued growth and stability. Antonio Trioschi has been appointed as the new Chief Executive Officer. He joined Swisslog nine years ago and has since held several leadership positions across the business. Most recently, Antonio was responsible for the unity of two regions, Central and Greater Europe, into one strong EMEA region. He succeeds Dr. Christian Baur, who left Swisslog in June and who played a key role in setting Swisslog on the path to growth over the past six years. “As we strive to expand our business in a fast-paced industry, our focus is to provide the best possible service to both new and existing customers,” explained Trioschi. Jens Schmale joined Swisslog in 2020 to strengthen its AutoStore offering and has been instrumental in the achievements of the business unit over the last year. Prior to joining Swisslog, he was, among other duties, the Managing Director of a German AutoStore distributor. “I am fully committed to deriving supply chain innovation through robotic and data-driven solutions,” noted Schmale. Based in the company’s Dortmund office, Schmale is set to further strengthen Swisslog’s market position within countries across the EMEA region. Markus Kirchhoff succeeds Schmale as Head of Swisslog AutoStore Europe, bringing many years of industry management experience to the role.
30 DECEMBER 2021
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December 2021 Issue 86
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Swisslog showcases its data-driven, flexible automation solutions
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TWINTEC ME INDUSTRIAL FLOORING
On Firm Footing: Taking on the Floor
Twintec’s trademark industrial flooring design technologies offer high levels of performance and environment sustainability The European-headquartered international, design and build, concrete flooring contractor is well regarded in the region and offers total service and comprehensive flooring solutions to clients across the GCC.
T
he Twintec Group of industrial flooring companies is the leading producer of jointless steel fibrereinforced concrete flooring in the world, producing more than six million sqm of concrete industrial floor slabs every year. The Twintec name reflects the twin technologies of concrete and steel fibres. Design expertise and high grade materials are coupled with experience, skilled workers, continuously improved procedures and specially designed equipment. As ‘jointless’ flooring specialists Twintec’s valueengineered designs, professional workmanship and innovation are well regarded across the globe. With a skilled, experienced work force, sophisticated equipment and environmental-sensitive operations, the company is a leading
32 DECEMBER 2021
name for customised, durable industrial floorings. Global Supply Chain spoke exclusively to Ruth Waugh, General Manager, Twintec Middle East Industrial Flooring on a range of subjects from its specialist operations, performance, accomplishments and future prospects. Global Supply Chain (GSC): Walk us through how industrial flooring ideas and concepts have evolved over the recent past? How demanding are customers today? Ruth Waugh (RW): Internal concrete industrial floor slabs have indeed evolved over time in terms of design approaches, materials used and production methodologies. From the traditional construction of concrete panels with troublesome saw cut joints (straight cracks) with a variety of concrete reinforcements to today’s totally seamless floor slabs that
result in warehouse floor slabs with no opening construction joints from end to end. Our customers and in turn their customers are rightfully more demanding. As consumer demands change and the supply chain industry evolves, the demands on the concrete floor in terms of operational requirements (racking systems, automation, MHEmaterials handling equipment movements) increase. At the same time customers should demand longevity, added value and consider the environmental sustainability credentials of their concrete floor slab and always consider working with a concrete flooring specialist. Working closely to support the end user directly is essential to ensuring their specific operational requirements are met within the
TWINTEC ME INDUSTRIAL FLOORING
concrete floor slab specification. GSC: How important is the logistics industry for Twintec? RW: 80% of Twintec’s work is designed & built for the logistics industry worldwide. Whilst our products are equally suitable for other applications; manufacturing, hangars, external yards, exhibition halls, data centres, warehouses and industrial buildings among others, it is our logistics industry clients that we work closest with to provide a high performance product to meet their specific individual needs. Twintec follows its logistics clients worldwide, delivering the same level of performance wherever in the world they require it. GSC: Talk to us about Twintec’s proprietary SFRC technology. Please tell us more about SFRC, its USPs how is it distinctive from its competitors and how it
is impacting Twintec’s customers worldwide? RW: Twintec’s designs predominantly include SFRC technology as this enables the construction of large bay ‘jointless’ concrete floor slabs or totally seamless slabs. The use of steel fibre reinforced concrete (SFRC) has a number of benefits: These include significant contribution to overall environmental sustainability credentials of the concrete floor slab and increased business efficiencies and quantifiable reduction in year on year maintenance costs, due to no saw-cut joints (straight cracks) present within the concrete floor slab. Furthermore, the concrete floor slabs are future-proofed by the removal of saw-cut joints to meet changing business needs. GSC: Please elaborate on the ‘DesignBuild-Guarantee’ concept as part of
your total service guarantee? RW: The Twintec total offer concept is unique to Twintec and the only company in the GCC offering such a comprehensive offer. There is one point of responsibility for the concrete floor slabs, so no split of responsibility between designers, material suppliers or labour sub-contractors. Twintec has in-house industry recognised experts in design and the build is managed by our own teams of highly skilled, experienced workers. The latest innovative concrete floor laying equipment is used, manufactured by our own Group company and we provide product liability insurance, PI insurance and long term warranties. All of this provides the customer with peace of mind, eliminates risks and provides life value to the overall logistics facility: Design-BuildGuarantee.
DECEMBER 2021 33
TWINTEC ME INDUSTRIAL FLOORING
GSC: Tell us more about Twintec’s range of flooring products? RW: We would better describe them as solutions rather than products as each floor is specifically designed to meet an individual customer’s specific operational and business needs. Each element of the floor slab is tailored to the needs of the customer and the location of the project, with every detail considered and tailored to specific requirements. Twintec’s early input on a project with the end user can save them time and money in both the short and long term. GSC: Identify some of your top projects and accomplishments in the recent past. RW: Twintec has been working in the Middle East region for the past 15 years and has provided solutions for many high profile clients including Caterpillar, Ikea, Carrefour, GE, Spinneys, Cosco Shipping, DHL, Agility, Nissan and recently within the Dubai South EZDubai logistics district for end user clients Noon and Amazon. We were also proud to be involved in Expo2020 with the design and build of the concrete floor slabs for the Dubai Exhibition Centres (North & South). GSC: How has Twintec fared globally in Q1-Q3 2021, and expectations for the remainder of 2021 and performance vis-à-vis 2020? RW: Twintec is a global company working currently in 30 countries. The global pandemic of course had an impact as we all had to adapt to new scenarios, restrictions on movement, logistics and materials supply challenges and an increased focus on keeping all our employees as safe as possible.
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However, after a period of uncertainty during Q2 and Q3 2020, where projects were delayed and some nervousness among international investors, there has been an increase in projects secured during 2021. Twintec prides itself on its adaptability and ability to work with all parties involved in construction projects and this has been a critical success factor over the past 18 months. GSC: Where is the present growth coming from—what sectors are contributing most to the growth?
RW: E-commerce is an obvious growth area worldwide, driven by consumer behaviour, but also manufacturing, food security facilities and data centre projects have all increased significantly during 2021 as the government and private sector alike react to macro economic factors. The use of sophisticated automated and robotic technology is increasing within logistics facilities, so again the consideration of the concrete floor slab is critical to their successful operation.
TWINTEC ME INDUSTRIAL FLOORING
GSC: How important is the Middle East for Twintec and how are you faring thus far in the region? What is the extent of flooring space produced in the region? RW: The Middle East region and our base here is strategic for the Twintec Group. To date we have designed and constructed 3.2mn sqm of concrete floor slabs and believe we have increased standards and shared our knowledge within the industry to the benefit of all stakeholders. In addition to serving our Middle East customers, the Dubai office is also responsible for facilitating
Ruth Waugh is Twintec Group Executive Committee member, International Business Development Director & General Manager of Twintec Middle East Industrial Flooring. Over 20 years experience in industrial concrete flooring, customer focused and a mantra of patience and persistence. Prior to moving to Dubai in 2016, Ruth was based in the UK and instrumental in Twintec’s global expansion. Ruth Waugh, General Manager, Twintec ME. projects for international clients wanting the same level of performance anywhere in the world. GSC: What opportunities do you foresee in the Middle East for Twintec, talk to us about the challenges confronting the region as well? RW: The logistics sector in the MENA region is going through transformations, introducing robotics and smart technology to increase business productivity, response times and accuracy. The warehouse automation market size in the Middle East is forecast to triple in size over the next five years as companies increase levels of automation and supply chain integration. Twintec can help with this, not just for new concrete floors, but looking at adaption and renovation of existing concrete floor slabs to meet new technology requirements.
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TURKISH CARGO
Turkish Cargo completes successful participation in ‘Logitrans 2021’ Carrier keeps high profile, reports healthy cargo revenues to date for 2021
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urkish Cargo participated this year in Logitrans, Turkey’s most prestigious international transportation and logistics fair, for the 12th time. The global air cargo brand had a 154sqm stand area in the 3-day fair organized at the CNR EXPO Istanbul Fair Centre on November 10-12. It also proved to be a networking opportunity as Turkish Cargo officials met business partners and event participants. The Logitrans Fair hosted approximately 120 firms comprising representatives of cargo agencies, automotive producers, air cargo firms, airport and harbor authorities, IT service providers, customs authorities, logistical associations, logistical schools, the representatives of international logistical publications, and an estimated over 10,000 visitors.
Award winner
Within the framework of the Atlas Logistics Awards, Turkish Cargo was awarded the first prize in the
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‘International Air Carrier’ Category. Turkish Cargo offers the world’s largest direct cargo flight network in the world; consisting of 97 destinations worldwide, excluding express carriers. The carrier performs global business processes with the fleet of Turkish Airlines, consisting of 373 aircraft including 23 dedicated freighters, the carrier revealed.
Achieving sustainable growth with its infrastructure, operational capabilities, fleet, and expert teams in the field, Turkish Cargo aims to become one of the top three air cargo brands in the world. According to the carrier it has been innovating to develop sustainable pioneering projects in the field of digitalization to enhance the quality of service offered to its customers in a changing world.
TURKISH CARGO
Turkish Cargo awarded ‘Air Cargo Excellence ‘recognition by WOF EXPO Possessing the world’s strongest cargo flight network, Turkish Cargo has received the ‘Air Cargo Excellence’ award in a whopping 9 different categories in Slovakia, Bratislava. The first logistics exhibition in Central and Eastern Europe run by WOF EXPO brought together shippers, retailers, wholesalers, importers, and exporters. The voting was carried out directly on the WOF Expo official website, starting in April and continued until the end of July 2021. Attaining sustainable growth with its infrastructure, operational capabilities, fleet and expert teams in the field, Turkish Cargo aims to become one of the top 3 air cargo brands in the world. To this end, Turkish Cargo has been innovating by developing pioneering projects in the field of digitalization to meet the needs of its customers and industry partners to deliver sustainable high-end services in a constantly changing world.
Turkish Cargo adds Macau to its expanding cargo flight network Top carrier keeps growing steadily by strengthening its flight network
DECEMBER 2021 37
HELLMANN HEALTHCARE LOGISTICS
“Hellmann Healthcare capabilities growing from strength to strength” Hope Consortium to support global vaccine distribution efforts
Hellmann Healthcare Logistics
Hellmann Healthcare Logistics is a strategic industry vertical of Hellmann Worldwide Logistics. People, processes, infrastructure and digitalization are the foundation of Hellmann’s healthcare network and enabler to offer compliant, transparent and innovative transportation and distribution solutions. Combining a risk-based approach and integration of secured digital solutions into supply chains, Hellmann offers qualified end-to-end transport with capabilities of real-time and proactive intervention. In the Middle East, Hellmann Healthcare Logistics gained a leadership position by operating a proven-and-tested hub concept for more than a decade, using UAE healthcare warehouses as distribution platforms for the region and Saudi healthcare warehouses for the national distribution in the Kingdom of Saudi Arabia.
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HELLMANN HEALTHCARE LOGISTICS
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n April of this year, at the height of the start of the vaccinations against Covid19 pandemic, Hellmann Healthcare made the key strategic move to enter the UAE’s Hope Consortium to support global vaccine distribution efforts. Six months down the lane Global Supply Chain set down with Anna Mansurova, Director of Commercial, Hellmann Calipar Healthcare Logistics, to reflect on the developments in the regional Healthcare industry. Global Supply Chain (GSC): The past almost two years have been unprecedented and like no other with the onset and continuity of the pandemic. What is your brief assessment of the impact of the pandemic on your business to date and your performance in 2021? Anna Mansurova (AM): 2021 has been a year of switching gears, as the world rolled out vaccination programs. Hellmann Healthcare contributed greatly to those efforts, supporting vaccine distributions in the UAE, Asia, Europe and Latin America. In Russia for example, as we speak, we are in the middle of an audit by local government authorities to qualify our healthcare logistics processes and infrastructure for the vaccine distribution. Our Healthcare teams are very proud to have been part of this journey, which we see transitioning now to becoming the new normal. On the front of Healthcare Supply Chains, companies with Regional Hub strategy did very well, with minor to no disruption in the supply of critical products. The challenge was and remains increased transport costs due to the reduced capacity. As pandemic shifted focus from cost optimization to business continuity, we see increased interest from the healthcare
companies in the regional Hub approach. In the pharmaceutical manufacturing space, local manufacturing capacity in the UAE is increasing through CMO (contract manufacturing) deals and set up of the new vaccine manufacturing capabilities. To support these developments, Healthcare industry will rely greatly on specialized healthcare logistics solutions providers and this is where Hellmann Healthcare expertise is. GSC: Tell us more about developments of Hellmann Healthcare capabilities in the Middle East region. AM: Hellmann’s regional Hub capabilities has been growing from strength to strength. This year addition to our services has been Aggregation capabilities in view of compliance with NHRA, Bahrain aggregation requirements. We successfully delivered required reporting at the aggregation level on time with the originally announced deadline of October 2021. This year as well marks successful delivery of the high-volume kitting project, where 200,000 medical kits were assembled and shipped in the span of 7 days. In the Kingdom of Saudi Arabia, Hellmann Healthcare has entered
the strategic joint venture, this means next year we will be able to offer high-quality healthcare warehousing and distribution operations across the Kingdom. This is important as we see an increased interest from the healthcare companies in the reliable partner able to offer compliant and flexible solutions. Our freight forwarding solutions out of India, has been growing, mainly focus has been on exports into United States and Europe. Hellmann further expended their healthcare quality and commercial teams who together with our product to continue to innovate on solution front. This year marked opening of our office in Egypt. In the short span of 8 months, we are ready to support the Healthcare industry, leveraging our regional structure and UAE competency center. Healthcare Quality Management system has been rolled out together with the employee GDP training. We are very fortunate to have close relationships with our customers, where we expand our collaboration across the region. Seeing our companies growing together over the span of 11 years is a true testimony of the solutions, yet most importantly relationships that we had developed.
DECEMBER 2021 39
HELLMANN HEALTHCARE LOGISTICS
GSC: In the context of developments, you just described, How important is now the Pharma-Cold Chain logistics sector within the wider Hellmann Logistics portfolio? AM: Prior to pandemic Cold chain logistics has been expected to be the key growth driver in the industry, this growth will be accelerated now due to the increased requirement from vaccine sector. This is evident by the innovations in the solutions space arena from passive and active packaging suppliers, rolling out new container solutions and increasing their manufacturing capacity. As major healthcare companies take pledge to reduce their carbon footprint, it will be interesting to see developments in the Middle East region solution space on the re-use or reverse logistics solutions to support those goals. GSC: What challenges and opportunities do you foresee for the company in the region going forward? AM: It is an exciting time to be in the Healthcare logistics in the Middle East. Next to responding to logistics challenges posed by pandemic, region is further progressing with the role out of
serialization compliance with UAE and Qatar mandating compliance in 2022 and 2023 respectively. In the UAE this will transform visibility, security, safety and reliability of the pharmaceutical supply chain, reducing counterfeits and sub-standard medicines. Next to the new capabilities that will be required in the logistics sector throughout all supply chain stakeholders it will be interesting to see how regulations will evolve considering improved visibility. Further opportunities will remain in offering solutions that respond to healthcare company needs for greater flexibility, visibility, and carbon footprint reduction.
Hellmann Healthcare continue to innovate in those domains, with recent addition of CO2 monitoring capabilities to our smart visibility solutions. These capabilities are beyond reporting, yet intelligent assessment and recommendation for the best Supply Chain routes considering Temperature route risk assessments and carbon footprint, all supported by Hellmann’s digital solutions. Healthcare is the strategic industry within Hellmann group and we will continue our sharp focus on our customer needs, responding with innovative solution and supported by caring and knowledgeable team of healthcare logistics professionals.
Anna Mansurova Anna Mansurova is Director of Commercial at Hellmann Calipar Healthcare Logistics, a global logistics company and specialized solution provider for the Healthcare industry. Based in Dubai, Anna heads commercial strategy of the company and solution development for the regional healthcare supply chains. With 12+ years of experience, her healthcare journey started in operations in 2010 when Hellmann established its first regional Healthcare Distribution centre in Dubai. Since then, Anna has held number of operational and leadership roles, worked on various supply chain models, gained profound knowledge of the GDP environment and established diverse healthcare network. Today, Hellmann Healthcare has developed into the market leader in the regional Healthcare logistics with the highly qualified and knowledgeable team.
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HEALTHCARE LOGISTICS
Rafed to transform UAE healthcare procurement as it marks first anniversary Technology-powered expansion across the emirates is key to the evolvement of the procurement market Rafed, the UAE’s prime group purchasing organisation (GPO) for the procurement, supply chain management, storage and distribution of essential medical equipment pharmaceuticals has set ambitious expansion plans across the emirates, fueled by cutting-edge technology and industry 4.0 enabled warehousing
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he Abu Dhabi-based headquartered Rafed, which marks its 12-month anniversary, has quickly established itself as a leader in the UAE’s pharmaceutical logistics sector, successfully operating out of its warehouse and storage facility of the future, the Rafed Distribution Centre, a press communiqué stated. While playing a pivotal role in the HOPE Consortium’s vaccination efforts, housing the country’s largest cold chain storage capabilities, the Centre’s advanced technology has also enabled Rafed to revolutionize the healthcare procurement sector.
Advanced capabilities
With these advanced capabilities, Rafed will drive forward the healthcare supply chain as well as cement its expansion into Dubai and the Northern Emirates. “State-of-the-art warehouses that operate to Industry 4.0 standards, including robotics, security systems and process digitalisation will be critical to the growth and progression of the entire healthcare supply chain,” observed Rashed Al Qubaisi, CEO, Rafed. Al Qubaisi explained that the partnerships and collaborations that Rafed has done over the span of one year since establishment is not only a testament to Rafed’s success and ability to deliver cost-effective logistics solutions but has also accelerated its expansion to serve an
extended network of hospitals, clinics and pharmacies through competitive delivery, procurement, pricing and contracting across the UAE. “The acquisition by Pure Health in April 2021 has only fueled Rafed’s ambitions. As the preferred procurement and logistics organisation for the government healthcare providers, Rafed has now set its sights on growing its presence within the private sector,” he continued.
HOPE Consortium “During the past 12 months, Rafed, a founding partner in the HOPE Consortium has grown from an in-house department to a UAE entity supporting all corners of the UAE’s healthcare procurement needs, celebrating key milestones, which have cemented its position as leader within the industry, the press note continued.
“A key focus for Rafed during the pandemic has been to further establish ourselves as an industry expert in the healthcare sector. Working with associations and manufacturers directly will enable further change for the healthcare procurement supply chain,” stressed Ahmed Al Bastaki, Chief Strategy Officer, Rafed. In addition to smart warehouses and partnerships that provide advanced solutions to organisations at every stage of the supply chain, Rafed continues to develop smart systems that will streamline processes across its operations. Through the partnership with Pure Health, it plans to introduce an integrated SAP digital system to provide immediate procurement and logistics solutions to clients and introduce an enterprise resource planning (ERP) system to identify processes that can be automated.
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HEALTHCARE SUPPLY CHAINS
Logistics that address the risks of supply
The Covid-19 pandemic is teaching us many lessons related to what healthcare supply chains of the future will need to look like to overcome challenges like the ones we’re facing now, writes Eelco Dijkstra, Global Head of Sales for Healthcare, CEVA Logistics.
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ver the past nearly two years, we witnessed a number of compounding disruptions, and some analysts believe it could take years before global supply chains become balanced. In the healthcare industry, supply chain disruptions are also present and there are lessons to be learned in how to
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better mitigate future risks. First, governmental departments of health responsible for the public hospital systems will be rethinking their sourcing strategies. Where a few years ago the strategy might have been to source from anywhere in the world for as low as possible, it’s likely that procurement departments will now be looking
more to source from producers closer to home rather than from far away. Another topic of discussion is likely going to be that of inventory levels. Over the past 10 years, there was a trend to hold little inventory with only a small safety stock. It was a buyer’s market for logistics and transportation services which meant rates were low and capacity was high.
HEALTHCARE SUPPLY CHAINS
Demand spurt
If there is a sudden spike in demand it is relatively easy and cheap to get sufficient quantities of product delivered quickly. Those supply chains were not set up to incorporate large disruptions. This has all changed and holding higher levels of safety stock is back on the agenda. In addition, the trend to improve the quality standards around the warehousing and transportation of healthcare products in the region will continue at an even higher pace. International good distribution practices (GDP) are now more and more stringently applied by Ministries of Health across the Middle East. This is good for the industry. Making sure warehouse logistics and trucking companies comply with these stringent GDP requirements will be a top priority. Today, most regional import logistics activities for healthcare products are outsourced as 3PLs typically distribute goods to distributors across the region.
Last-mile deliveries
CEVA Logistics has a global network of cold chain air freight stations for transporting pharma products.
These final-mile distributors can still improve on the quality and temperature compliance requirements related to the storage and delivery of healthcare products to hospitals, medical clinics and pharmacies. CEVA Logistics has designed its FORPATIENTS healthcare logistics solutions around the patient. This means that the company works with its healthcare clients to provide highend logistics services that not only fulfill increased international quality standards, but that also play into future logistics trends centered on the end patient. Quality and compliance will be key to all healthcare logistics solutions. In the future, having the right logistics solutions will ultimately enable healthcare companies to provide the best patient outcomes even in the midst of unforeseen challenges.
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BAHRI
Bahri receives its first ‘gas ready’ VLCC built by IMI and HHI
Successful completion of ‘Rayah’ expands Bahri’s growing fleet to 42
Bahri, a global leader in logistics and transportation, has expanded its Very Large Crude Carrier (VLCC) fleet to 42 with the addition of its first ‘gas ready’ vessel
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uilt by International Maritime Industries (IMI) and Hyundai Heavy Industries (HHI) at HHI’s shipyard in Ulsan, South Korea, Bahri’s newest acquisition ‘Rayah’ is part of a SAR 371mn (US$ 98.9mn) contract signed in September 2019. The construction of the vessel marks the successful completion of IMI’s first VLCC project. It also strengthens Bahri’s reputation in the crude-oil transportation market and reinforces its credentials as the world’s largest VLCC owner and operator. As well as highlighting IMI and its partners’ capabilities to produce VLCCs to the highest international standards, the project enabled more than 50 IMI engineers to gain valuable on-the-job experience from working alongside HHI’s engineers in South Korea. This experience will contribute to the establishment of a skilled Saudi maritime workforce and the development of Saudi Arabia’s maritime and logistics industry under Saudi Vision 2030, a press communiqué stated.
Special ceremony
The new VLCC was officially named and inducted into Bahri’s fleet at a special ceremony organized virtually between Saudi Arabia and South Korea, where the vessel is currently docked. The
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ceremony was attended by Eng. Amin H. Nasser, President and CEO, Saudi Aramco; Dr. Abdulmalik Al-Hogail, Vice Chairman, Bahri; Eng. Ahmad Al Sa’adi, Chairman, IMI; Young- Seuk Han, Vice Chairman and CEO, HHI; Eng. Abdullah Aldubaikhi, CEO, Bahri; and Eng. Fathi K. Al-Saleem, CEO, IMI, as well as various other Bahri, IMI, and HHI executives. Speaking at the ceremony, Dr. AlHogail said that the addition of ‘Rayah’ to Bahri’s fleet represents an important enhancement in the company’s integrated logistics and marine capabilities. “We are delighted that the induction of Rayah marks the launch of our first gas ready VLCC with multiple advantages, including fuel-efficiency, cost-effectiveness, and environmental benefits,” he commented. “Working with our partners Bahri and HHI, we have successfully met the challenges of the global pandemic to deliver the vessel on time and to the highest international shipbuilding standards,” remarked Al Sa’adi.
Gas-ready VLCC
As a ‘gas ready’ VLCC, Rayah benefits from superior fuel efficiency, as well as advanced systems to ensure heightened
safety, better controls, and improved sustainability. Built with the contribution of Saudi Arabian engineers from IMI, Rayah’s receiving ceremony was also a proud milestone for the Kingdom’s local maritime capabilities.
Joint venture
IMI, a joint venture between leading industry partners Saudi Aramco, Bahri, Lamprell, and HHI, is the largest shipyard in the MENA region at nearly 12 million square meters. It provides new build and maintenance, repair, and overhaul (MRO) services for commercial vessels, including VLCCs, Bulk Carriers, Offshore Support Vessels, and Offshore Jackup rigs. It is the only shipyard with guaranteed off-take agreements worth US$ 10bn (approximately equivalent to SAR 37.5bn) over 10 years, with partners Aramco and Bahri, for the delivery of 20 rigs and 52 vessels. Bahri owns and operates a fleet of 90 vessels, including 42 VLCCs, 23 chemical and 10 product tankers, six multipurpose Ro-Ro vessels, and nine dry-bulk carriers, together with a strong order-book, serving 150 ports worldwide.
December 2021 Issue 86
ENHANCING THE BUSINESS OF LOGISTICS
Swisslog showcases its data-driven,
flexible automation solutions
Twintec ME Hellmann Logistics EPG
Flooring Specialists Hot Demand Case Study-Union Coop
CASE STUDY: EPG WMS
Union Coop handpicks EPG LFS for Dubai Warehouse Inventory accuracy for retailer reaches 100% with EPG WMS; systems streamlined and efficiencies enhanced Union Coop has successfully deployed EPG proprietary Warehouse Management System (LFS) to manage and oversee its complex and challenging logistics operations.
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PG ONE Warehouse Management System (LFS) has brought huge logistics gains for Dubai retail giant. A top Dubai-based retail group announced it has made huge gains in its warehouse logistics operations since deploying EPG’s LFS Warehouse Management System. Union Coop, one of the largest cooperative groups in the Middle East and North Africa (MENA) region and the largest consumer cooperative in the United Arab Emirates, has successfully deployed its signature, tried-andtested EPG ONE™ Warehouse Management System (LFS) to run its multifaceted retail and logistics functions. Union Coop was established in1982 by the UAE Ministry of Labour with a focus to enhance shopping convenience and experience whilst improving economic conditions of the local community where it operates. The cooperative group, with a multinational workforce of 3,100 employees, currently operates 23 hypermarkets, supermarkets and retail outlets as well as three shopping malls in Dubai. The Dubai-based Cooperative giant offers consumers over 69,000 varieties of food and non-food
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commodities sourced from over 30 countries.
Customised Coop Factory
Union Coop launched Co-Op Factory, a state-of-the-art central warehouse facility, in July 2020 to meet its growing storage requirements. Located in Dubai’s Al Tayy suburb in the Al Khawaneej district, Coop Factory is one of the largest and most technologically advanced warehouses for food and non-food commodities in the MENA region.
Covering a total area of 129,369sqm, the 8-storey warehouse incorporates pellet and shelf racking systems, with a storage height exceeding 20m. The facility also houses a self-service wholesale outlet. The warehouse maintains a strategic stock of more than six months’ worth of food and nonfood items and houses storage units for foods and non-food commodities in addition to cold stores/freezer storage units. These are all served through 22 gates for incoming and outgoing goods. Featuring around 20,000 pallet locations, the warehouse is divided into five operational sections (food, non-food, chiller, freezer, damage) and operates with multiple employee shifts.
“Installed with the latest equipment for operations – such as loading, unloading, handling and storage – the warehouse enhances the storage capacity of goods and ensures their availability at all times,” affirmed Khalid Bin Diban Al Falasi, CEO, Union Coop. Union Coop’s WMS task force selected Ehrhardt Partner Group’s (EPG) ground-breaking LFS programme ahead of a wide range of global providers because it came with an outstanding reputation, courtesy of numerous testimonials from existing UAE users. Significantly, those customers operate in similar sectors to Union Coop, a company press communiqué revealed.
Inventory Insights
In addition to the productivity benefits, LFS provides ease of use for multinational staff and unsurpassed inventory data. Ehrhardt Partner Group service and support is exceptional. “The EPG team of experts based out of Dubai Logistics City was extremely competent, very flexible and very supportive in assisting us in the quick and successful implementation of LFS at the Coop Factory warehouse facility,” enthused Kashif Rasheed, WMS Project Manager, Union Coop.
CASE STUDY: EPG WMS
Project Challenges
Inventory management mismatch Huge warehouse Food and non-food commodities Over 20,000 pallet locations Complex distribution to 20+ retail outlets Multinational workforce
Largest UAE Cooperative
Union Coop set up a task force to evaluate global Warehouse Management System (WMS) providers in 2018, while Coop Factory was still under construction. The cooperative giant then floated an international RFQ (request for quote) and received many bid proposals from the world’s leading WMS providers including the Ehrhardt Partner Group (EPG). Union Coop’s task force was very impressed by EPG’s testimonials from the UAE retail industry, as they highlighted the deployment and successful use of EPG’s LFS by leading players in the UAE retail sector. Aiman Othman, IT Director of Union Coop, provided strong leadership throughout the execution of the project as well as guidance to his team, including the project manager and team members, to help
ensure the successful realization of the project. In addition, Othman, along with other business directors of the Cooperative, played a vital role in the selection of EPG’s LFS. “Firstly, we became aware of renowned UAE-based retail industry companies featuring in EPG’s testimonials, which had similar operations to ours and were also using the same leading ERP system,” asserted Rasheed following the go-live. “We figured that if these industry players are using the EPG LFS solution, so should we, especially as there is a very tight integration between ERP and WMS,” he continued. “Secondly, we asked ourselves which specific vertical is using EPG’s LFS solution? We are in the retail, food and non-food commodities industry, just like the other highlighted UAE-based retail
players that are successfully using LFS. These were the crucial points that led Union Coop to opt for the EPG system for our new warehouse in late 2019,” he further observed.
EPG’SWMS LFS comes up tops
Union Coop went live with LFS at the Coop Factory warehouse in February 2020, joining over 100,000 other global LFS users. The sophisticated LFS solution today manages the entire warehouse operations. Warehouse employees use RFequipped LFS-guided portable data terminals (PDTs) on a day-to-day basis to receive, store and pick goods. When a picking operation has to be conducted via a PTD notification, a warehouse picker selects the pick list on their personal PDT and allows LFS to guide them to a bin location to pick the requested item.
DECEMBER 2021 47
CASE STUDY: EPG WMS
EPG – Smarter Connected Logistics EPG is a leading international provider for a comprehensive Supply Chain Execution Suite (EPG ONE™) and employs 700 people at 19 locations around the world. The company group provides its more than 1,500 customers with WMS, WCS, WFM, TMS and voice solutions to optimize logistics processes – from manual to fully automated logistics environments. EPG solutions cover the entire supply chain from warehouse and road to ground and cargo handling solutions at airports. Logistics consulting, cloud services, managed services and logistics training courses at the company’s own academy round out the comprehensive list of solutions from EPG.
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CASE STUDY: EPG WMS
Project Solutions
EPG ONE LFS Dividing huge warehouse into 5 zones EPG Multiple Logistics Solutions Center (Dubai) training 24/7 EPG support with project implementation team
Project Results
100% integration with client’s ERP system 100% inventory accuracy achieved Errors reduced by 90% Pick-up times improved by 95% Warehouse space allocation enhanced by 95% 100% LFS stabilisation
DECEMBER 2021 49
UD TRUCKS
UD Trucks Launches the new Euro 5 Range in the region Upgrades its current Quester & Croner Euro 3 Trucks with enhanced features The newly unveiled Euro 5 range of UD Trucks feature significant upgrades to minimise their environmental impact, improve efficiency and uptime, increase profitability, and optimise the Total Cost of Ownership (TCO), all without compromising the benefits offered by the previous models.
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D Trucks recently launched Euro 5 versions of its popular Quester and Croner trucks in the region for the first time at a spectacular and well attended ceremony at the Autodrome in Dubai Motor City attended by HE Noboru Sekiguchi, the Consul General of Japan to the UAE, other consular officials, regional overseas
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dealers, VIPs and media personnel. The launch of the new Euro 5 trucks comes ahead of the introduction of new regulations in fast-growing regional countries such as the United Arab Emirates, which currently has a Euro 4 emission standard, and Qatar, which will be adopting Euro 5 emission standards by mid-2022.
This move by UD Trucks allows businesses to better prepare for the switch to more environmentallyfriendly fleets, as the Euro 5 range reduces NO2 emissions by about 43 percent compared to Euro 4 and significantly reduces the carbon footprint of the vehicles through cleaner emissions, according to a press communiqué.
UD TRUCKS
new Quester also extend to safety, where ESCOT takes away the drivers’ need to shift an average of 1,000-1,500 times a day by automatically selecting the right gear at any given time. This leads to increased focus and safety for the driver. The latest Euro 5 upgrades also add to the Croner’s special specification list. The Croner is available in three models MKE, LKE and PKE with wheelbase variants that offer up to 21 different configurations to suit the specific demands of various industries. The truck’s fuel efficiency has been improved, in part due to a more aerodynamic cab design that reduces drag by 5 percent compared to previous models. The Croner is very much driver-focused as its cabin is designed to put driver comfort first with numerous active and passive safety features to protect the driver, cargo, and surrounding traffic.
Emissions Taking into account that emissions from transportation alone have the potential to increase global
emission levels by over 1.5 per cent, these heavy-duty and medium duty trucks, which combine optimal fuel efficiency with enhanced durability, have evolved further to meet modern transport and environmental challenges. Being the first truck manufacturer to introduce Selective Catalytic Reduction (SCR) technology in 2004, UD Trucks’ new range features SCR technology to significantly boost environmental protection and fuel economy. With such benefits, SCR technology is proven to be more reliable when compared to other emission control technologies for reducing emissions. The new range focuses on three themes: improved efficiency and optimised TCO; better uptime; and better for the environment. The truck manufacturer also delivers better uptime for both models via less maintenance time and an expanded AdBlue supply network, which is a safe-to Wuse diesel exhaust fluid used in vehicles with SCR technology to reduce harmful gases from being released into the atmosphere.
Advanced features The number of advanced features offered on the Quester, one of UD Trucks’ most established, durable and efficient trucks, has been added along with the latest Euro 5 upgrade. The Quester Euro 5 range, with 460 hp and 2250 Nm torque, also delivers improved fuel economy by about 10 percent, assisted by the ESCOT automated manual transmission feature, a lighter tare weight and optimised driveline. Improvements made to the
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UD TRUCKS
Most importantly, a cleaner and more robust engine configuration with lower sensitivity to sulfur content in fuel leads to a longer engine life and contributes to a better environment. The truck is fitted with innovative UD Telematics, a high-tech wireless communications system, which allows transportation companies to maximise efficiency with real-time vehicle tracking and geo-fencing.
Quester The Quester provides the ultimate comfort and experience for the driver with a new steering wheel and improved seat. The new range of Quester and Croner trucks, both Euro 5 and Euro 3, features a new instrument cluster with real-time
52 DECEMBER 2021
fuel coaching. This enhancement provides the driver with immediate and specific feedback on driving techniques that are more fuel efficient. “In the rapidly-changing trucks industry, staying ahead of the competition by launching Euro 5 trucks is a core focus for UD Trucks. The Quester and Croner Euro 5 models reflect UD Trucks’‘Better Life’ commitment. The launch is another example of offering optimum support for our customers as we make sure they are ready for any new regulations in such a fastgrowing region,” asserted Mourad Hedna, President, UD Trucks Middle East, East and North Africa. At launch, the new Euro 5 models will be available in the United Arab Emirates and Qatar. At the same
time, regional markets such as Saudi Arabia, Bahrain, Kuwait, Pakistan, Iraq, and others will benefit from new, improved versions of the Euro 3 Quester and Croner models. These new Euro 3 models will also enjoy a number of upgrades and improvements to offer a more driver-focused and environmentally-friendly alternative, while ensuring optimum profitability for customers around the region. Other than the engines, the Euro 3 trucks receive the same upgrades as the Euro 5 models, such as the new instrument cluster, ESCOT automated manual transmission feature, fuel coaching system, body builder module, and the UD Trucks Telematics Services.
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DHL INNOVATION CENTRE
DHL launches first-of-its-kind mobile Innovation Centre in Dubai South Move to accelerate logistics innovation in the Middle East and Africa The state-of-the-art MEA Innovation Centre will present a collaborative platform for customers, partners and other thought leaders to solve complex logistics challenges, learn about the latest trends in logistics, and network with industry innovators across the MEA region.
I
n the presence of HH Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority (DCAA), Chairman and Chief Executive of Emirates Group and Chairman of Dubai Airports, DHL has launched its Mobile Middle East and Africa (MEA) Innovation Centre in Dubai. Top executives from DHL and Dubai South also officiated the opening of the new facility. The first-of-its-kind 450sqm facility located in the Logistics District at Dubai South is easily assembled and disassembled, ready to move on to the next location. “DHL looks look forward to bringing customer-centric innovation, inspiring ideas and applying our proven innovation methodologies to solve our customer problems so that colleagues in the region can support them in confidently navigating changes,” noted Katja Busch, Chief Commercial Officer and Head of Customer Solutions and Innovation, DHL. “Dubai epitomizes disruptive thinking and celebrates
54 DECEMBER 2021
innovation. The Centre’s conception and innovative execution are aligned with Dubai South’s ambition to be a next-generation, innovations-led logistics hub for the region,” observed Mohsen Ahmad Alawadhi, CEO, Logistics District, Dubai South. The Mobile MEA Innovation Centre will host a selection of exhibits built around key technologies that will reshape the logistics industry in the future alongside proof of concepts successfully implemented in DHL’s operations.
Technology focus
Exhibits have been curated to reflect the unique requirements of DHL’s customers in the region, with a focus on the topics of IoT, Artificial Intelligence, Robotics, Bionic Enhancement and Data Analytics across the domains of supply chain analytics, warehouse digital twins and last mile delivery optimization. “The Innovation Centres are the showpiece of DHL’s Innovation program, which features its own trend research division, proven innovation workshop methodologies, and a calendar
of thought leadership events that deep dive into technologies set to impact the logistics industry,”explained Matthias Heutger, SVP Global Head of Innovation & Commercial Development for DHL Customer Solutions & Innovation. “The MEA IC will package this approach and offer our customers a highly-relevant agenda that reflects the possibilities of operating in the region,” he continued. The Mobile MEA Innovation Centre is DHL’s fourth innovation centre globally – after Chicago, USA; Cologne, Germany; and Singapore; and the first completely mobile one. The Mobile MEA Innovation Centre is a modular building that was shipped to Dubai in containers from Germany, before being assembled on site in Dubai South. The facility is expected to stay in Dubai until 2022, then move to Qatar, the next location on its journey across the MEA region, and is expected to continue its journey through 2027.
DHL INNOVATION CENTRE
DECEMBER 2021 55
DHL INNOVATION CENTRE
Irina Albanese, Head of Innovation Middle East & Africa, DHL.
Global Supply Chain spoke exclusively with Irina Albanese, Head of Innovation Middle East & Africa, DHL Customer Solutions & Innovation, on this occasion. Global Supply Chain (GSC): Briefly, what is the wisdom behind the DHL Innovation Centre initiative? Irina Albanese (IA): At DHL, we have always been a business that champions customer-centric solutions that transform the logistics industry. That means always being a truly innovative thinker and always collaborating with inspiring partners who share our passion for innovation. Innovation is in our DNA and our enthusiasm is contagious. Every year we welcome thousands of interested customers to our DHL Innovation Centers around the world. Here, visitors find interactive displays and haptic demonstrations, and our subject-matter experts provide a direct and tangible experience of current technologies and innovations. Each interaction has the potential to ignite
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powerful, transformative solutions for logistics operations. Working on the latest trends and technologies, DHL is committed to shaping the future of logistics and supply chain solutions, and the Innovation Centers are a step in this direction. GSC: Why was the 4th such Centre in Dubai and why now? IA: DHL has Innovation Centers across the globe located in Chicago, USA; Cologne, Germany; and in Singapore. The latest MEA Innovation Centre in Dubai is the first-of-itskind mobile centre which can move from site to site across the region. The DHL Mobile MEA Innovation is planned to tour various countries in the Middle East & Africa through 2027. The first stop is in Dubai, in our current location close to Dubai South headquarters, to coincide with the Expo 2020 in the UAE. Dubai in also a logistics hub for the region and the world and has taken
a tech-forward approach to logistics. With our Mobile MEA Innovation Centre we aim to bring innovative and future thinking solutions to support the constantly expanding economy. Dubai epitomizes disruptive design thinking and has set an inspirational benchmark in making the impossible possible – particularly in infrastructure logistics and digitalization. The UAE and Dubai’s innovation strategies aim to position the country and the Emirate among the world’s leaders in innovation as part of its commitment to achieve the goals of UAE Centennial 2071.
At DHL, we believe the mobile MEA Innovation Centre in Dubai and the UAE will pave the way to bring innovation closer to our customers in the Middle East. GSC: What will the DHL Dubai Innovation Centre hope to accomplish for the duration of the stay? IA: The new Mobile MEA Innovation
DHL INNOVATION CENTRE
Centre will provide an inspiring and interactive visitor experience to explore the future of logistics. It showcases cutting edge innovation and solutions, projects and industry capabilities, extending the existing Innovation Centre ecosystem and helps customers drive digitalization. Working on the latest trends and technologies, DHL is actively shaping the future of logistics and supply chain solutions. As part of the events, workshops, and tours organized at the MEA Innovation Center, our customers from the region can learn about the technologies DHL has incorporated across its global operations, as well as insights into the cutting-edge innovation and solutions, projects, and industry skills in place within the organization. Apart from this, IoT, robotics, bionic enhancements, and data analytics in the sectors of supply chain analytics, warehouse digital
twins, and last mile delivery optimization will be showcased at the MEA Innovation Center.
GSC: Briefly, what are the latest technology trends in the logistics and supply chain industry and what is your prognosis for the immediate future? IA: We believe digitalization will become the greatest lever, steadily improving services, processes, and standards between now and 2025. For instance, we will see wider adoption of digital solutions such as our online freight marketplace Saloodo!, which is leading the movement to ‘Uberize’ trucking. It helps carriers manage their fleets better and optimize the capacity of their full truckload (FTL) shipments with a few ‘clicks’, while shippers can find the most pricecompetitive option. E-commerce continues to be one of the main drivers for business growth. DHL’s divisions
benefit from dynamic growth opportunities for their solutions along the entire logistics value chain, from inbound logistics to fulfillment, delivery and returns. DHL is the only company able to offer single elements as well as the entire e-commerce supply chain on a global scale. We are also fully embedding sustainability across our operations. Our purpose remains to connect people and improve their lives by enabling trade and helping businesses to grow. Aside from the point of contact between the businesses and their customers, technology is also altering the logistics industry. Venture capitalists have invested about $30 billion in the logistics industry since 2012. Around 3,000 entrepreneurs are now working in the logistics area to develop new products, services, and business strategies. Big data and advanced analytics, AI, robotics and automation, and the Internet of Things are just a few of the technological advances that are garnering attention and investments - particularly in logistics with IoT. We aim to showcase these evolving trends at the MEA Innovation Center. GSC: How significant is the Middle East and Africa for DHL? IA: The aim of the Mobile MEA Innovation Centre is to spearhead the future of logistics and drive customer-centric innovation across the Middle East region and beyond, focusing on key logistics innovation trends for the region such as Internet of Things, Artificial Intelligence and Data Analytics. The Middle East and Africa region is witnessing unprecedented technological advances in the logistics sector, which are strategically aligned to their national ambitions and strategic visions. The DHL’s Mobile MEA Innovation Centre is thus a significant step to inspire national ambitions with its explorations of the future of logistics.
DECEMBER 2021 57
DHL INNOVATION CENTRE
The region is a well-positioned logistics hubs for domestic and transit shipments. Trade routes like the Suez Canal acts as a gateway for trans EU Africa Asia and Pan Arab States with $1 Trillion goods passing through per annum. The UAE and KSA have taken a tech-forward approach to logistics, with our MEA Mobile Innovation Centre we aim to bring innovative and future thinking solutions to support the constantly expanding economy. GSC: How is DHL faring to date in 2021 and what is your outlook for the remainder of the year? IA: An extraordinary year is coming to an end, a year that will no doubt be remembered as a defining moment in our society and for our world as a whole. The current situation has certainly created unusual market conditions, some to our advantage (accelerating e-commerce, lack of air freight capacity), and others less so (decrease in GDP). The continued positive business development is underpinned by a continued equally strong development of cash flow; Deutsche Post DHL Group grew strongly in the third quarter of the current financial year 2021. The Group increased its revenue by 23.5 percent year-on-year to EUR 20.0bn. Additionally, The Group’s operating profit (EBIT) in the third quarter of 2021 increased by 28.6 percent year-on-year to EUR 1.8bn. The EBIT margin improved to 8.8 percent (previous year: 8.5 percent). GSC: What are the DHL Innovation Centre expansion plans for the region for the short and long terms? IA: The Mobile MEA Innovation will travel to Qatar, before moving on till South Africa, Egypt, Nigeria, Ivory Coast and Morocco through 2027. GSC: How would you characterize your partnership with Dubai South? IA: Dubai epitomizes disruptive thinking and celebrates innovation. Therefore, it is a pleasure for Dubai South to be home to the DHL Mobile MEA Innovation Centre in its Logistics District, testifying its
58 DECEMBER 2021
pre-eminent position as the local and regional hub for the sector. The Centre’s conception and innovative execution are aligned with Dubai South’s ambition to be the nextgeneration, innovations-led logistics hub for the region. We are proud to launch the DHL Innovation brand in Dubai South, which is shaping up to be a logistics hub at the centre of a robust supply chain ecosystem and a major contributor to the economic growth of Dubai and the United Arab Emirates. GSC: What is the DHL message / takeaway on this occasion?
IA: At DHL, we have always been a business that champions customer-centric solutions aimed at transforming the logistics industry. The organization takes pride in being an innovative thinker and collaborating with inspiring partners who share our passion for innovation. Across our Innovation Centers, we spearhead the future of logistics and drive customer-centric innovations across the world. We welcome customers, partners, and other innovative thinkers to engage with DHL experts and benefit from a range of tailored activities and services to think and achieve beyond potential.
SPA-MAERSK PARTNERSHIP
SPA and Maersk Saudi Arabia to set up the first Integrated Logistics Park at Jeddah Maersk’s Integrated Logistics Park will offer customers extensive infrastructure for warehousing & distribution, cold storage, and e-commerce
S
audi Ports Authority (MAWANI) today signed an agreement with AP Moller-Maersk, global integrator of container logistics, committing to an investment of US$ 136mn (SAR 510mn) over a period of 25 years to set up an Integrated Logistics Park at Jeddah Islamic Port in Saudi Arabia.
The signing took place in the presence of the Minister of Transport and Logistics, Chairman of the Board of Directors of Saudi Ports Authority, Engineer Saleh Bin Nasser Al-Jasser, and Richard Morgan, Managing Director, Maersk West & Central Asia, together with several officials from related sectors. The agreement was signed by Omar Bin Tall Hariri, President, Saudi Ports Authority and Mohammad Shihab, Managing Director, Maersk Saudi Arabia. Spread over an area of 205,000sqm, the Greenfield project will be the first of its kind at Jeddah Islamic Port offering an array of solutions with the goal of connecting and simplifying the supply chains of importers and exporters in the Kingdom. Mares will also be investing heavily in renewable energy to power the facility and eventually achieve carbon-neutrality. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
A vision for the future
Saudi Arabia’s Vision 2030 lays great importance in capitalizing on the Kingdom’s strategic location to build its role as an integral driver of international trade connecting the continents of Africa, Asia and Europe. Vision 2030 aims to more than triple the share of non-oil exports from Saudi Arabia from its current levels, to reach 50% of total exports. It also seeks to substantially raise the Kingdom’s global ranking in the Logistics
Performance Index to ensure that Saudi Arabia becomes the regional leader in logistics. “The development of the new Integrated Logistics Park will further enhance the capabilities of Jeddah Islamic Port and contribute to consolidating the Kingdom’s position as a leading global hub for maritime transport and logistics services,”commented HE Engineer Saleh Al-Josser. “We are building an innovative, digital and technologically-advanced logistics infrastructure on the foundations of our strong network of global shipping and logistics services to create value for customers in the region. Our ambition is not only to connect and simplify our customers’ supply chains, but also be a catalyst in the growth of trade and economies through our customer-centric solutions,” noted Morgan. “The strategic partnership between the authority and Maersk is an important step to achieve our ambition for Jeddah Islamic Port to become among the top ten ports in the world by 2030,”observed Omar Hariri.
Integrated logistics solutions
The bonded and non-bonded Warehousing & Distribution (W&D) facility will cover more than 70% of the total area, while the remaining part will act as a hub for transshipment, air freight, LCL cargo. To cater to the rapid penetration of e-Commerce in Saudi Arabia, the facility will also have a dedicated e-Commerce fulfillment centre. The Integrated Logistics Park will be able to handle annual volumes close to 200,000 TEUs across different products.
Maersk will deploy a state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management and track & trace at unit-level, and offers rich dashboards for higher visibility and deeper insights. These systems will help in improving efficiencies and build a cost competitive edge for Maersk’s customers. Maersk is also charting its path to eventually make the facility carbon-neutral. The warehouses, cold storages and office building will all be powered with renewable solar energy. Even the yard machinery including forklifts, reach stackers, empty container handlers, trucks and other vehicles deployed for the movement of cargo will be electric.
DECEMBER 2021 59
ETIHAD RAIL
Etihad Rail joins GMIS as a Strategic Partner Partnership to promote expansion of global supply chain networks
Omar Al Sebeyi, Acting Executive Director, Etihad Rail.
T
he Global Manufacturing and Industrialization Summit (GMIS) and Etihad Rail, the developer and operator of the UAE National Rail Network, will partner to highlight the vital role of rail transport in supporting the transformation of logistics, manufacturing and building a sustainable supply chain in the United Arab Emirates (UAE), and globally. As a Strategic Partner to GMIS, Etihad Rail showcased how rail networks will serve as an economic growth engine for manufacturers in the UAE as well as the Gulf Cooperation Council (GCC) countries. The company will share its expertise in delivering faster, greener, more effective, and technologically advanced transport solutions to support the development of a globally integrated business environment, in line with the Abu Dhabi Economic Vision 2030 and UAE Centennial 2071, the rail operator said in a press note. Etihad Rail participated in the fourth edition of the Global Manufacturing and Industrialisation Summit (GMIS 2021), held at EXPO’s Dubai Exhibition Centre in the fourth week of November 2021, where it highlighted the importance of rail networks in reducing supply chain costs, through reducing transport and storage costs, thereby increasing competitiveness and productivity in the industrial sector.
60 NOVEMBER 2021
Accelerating industrialization “Etihad Rail is committed to accelerating industrialisation, economic growth and social development in the UAE and across the GCC, while offering a safe and sustainable mode of transportation for both businesses and individuals in the region. As we build the next-generation of transport and logistics solutions, we constantly seek new partnerships and collaborations with organisations who are passionate about enhancing the UAE’s regional and global competitiveness,” asserted Omar Al Sebeyi, Acting Executive Director, Commercial Sector, Etihad Rail. Established in 2009, Etihad Rail, one of the region’s largest infrastructure projects, will link the principal industries across the country and connect the UAE to its neighbouring nations. The Abu Dhabi-headquartered railway network is focused on improving energy efficiency and helping regional manufacturers adopt more sustainable practises. Etihad Rail’s Stage One has a proven track record of delivering economic success for customers, having carried more than 39 million tonnes of granulated sulphur since operations commenced in 2016 until October 2021, making the UAE the world’s foremost exporter of granulated sulphur. Once complete, the UAE rail network will be able to transport 60mn tonnes of goods annually.
Energy efficient Globally, rail is among the most energy efficient modes of transport for both freight and passengers, and represents just 2% of the total transport energy demand, according to the International Energy Agency (IEA). Carbon emissions from rail transport are 70 to 80% lower than conventional road freight, removing two million trucks from the road each year, complementing manufacturers’ environmental, social and corporate governance (ESG) priorities. “Etihad Rail is transforming the wider transport and logistics ecosystem in the UAE and GCC. They are also at the forefront of developing cutting-edge technology and sustainability solutions to help industrial organisations enhance supply chain resilience and reduce transport costs,” noted Badr AlOlama, Head of the GMIS Organising Committee.
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