MICCO basks in the glow of a remarkable four-and-half decade performance track record

The Company’s growth has been meteoric following its acquisition by the AD Ports Group (ADPG) in 2020

MICCO was positioned well to be part of Abu Dhabi’s growth story, and it can be safely asserted that MICCO’s DNA and imprint can be found within the development of the wider Emirate.

MICCO was founded in 1978 in Abu Dhabi and boasts a rich corporate legacy. Coincidentally, it came into existence at a time when the Emirate, with its rich history of trade with its hinterland, the wider Middle East and the subcontinent, was expanding into oil exploration by building plants, refineries and other vital infrastructure.

MICCO has witnessed the wave of growth within this sector early on and spent the initial years exploring opportunities and capturing them as they came available. Additionally, MICCO was also involved in the development of the city itself as more people moved in, supporting the construction of civic infrastructure, including water pipelines that supported the burgeoning construction boom that took place over the next number of decades.

MICCO’s founding fathers had a great vision for the company, and they prudently reinvested back in the company, purchasing assets, attracting people, building offices, and investing in technology.

MICCO was positioned well to be part of Abu Dhabi’s growth story, and it can be safely asserted that MICCO’s DNA and imprint can be found within the development of the city and the wider Emirate.

Global Supply Chain exclusively interviewed CLIFFORD D’SOUZA, Executive Vice President & COO, MICCO Logistics, Logistics Cluster, AD Ports Group (ADPG), a 35-year company veteran, on the sidelines of the just concluded Breakbulk Middle East 2023 where the Group participated for a number of consecutive years.

The following are transcripts of that expansive interview that covered a wide range of subjects.

Global Supply Chain (GSC): Briefly share your thoughts as you review your track record and legacy over the past four and half decades?

Clifford D’Souza (CD): As we look back over the past 45 years, our growth as a company has been astonishing. This has been especially the case over the past 10 years where we have seen growth multiple times backed by business diversification, asset development, and most importantly, having talented people joining our ranks.

The growth has allowed us to develop a highly integrated value chain of logistics services that puts us not only in a leading position in Abu Dhabi, but also in a highly competitive position in the broader UAE and

ADNOC has been, and continues to be, one of the major catalysts for our business and as it develops new subsidiaries and large-scale projects and developments, especially those in the oil & gas, industrial, petrochemical, and sustainable energy sectors, MICCO will be there to support ADNOC and be an enabling part of that story of growth and success.

The leadership of the UAE has a very clear vision and direction for the country, and we will continue aligning ourselves with that vision as we have done throughout our history and be ready for the opportunities that the future brings.

GSC: Currently, MICCO is part of the AD Ports Group. Walk us through MICCO’s acquisition and its equation with ADPG. CD: 2016 was a major turning point for our organisation as it was a year when the company landed a 4PL contract with Abu Dhabi Terminals (ADT) which was managing the Borouge operations at Khalifa Port.

It was a personal milestone for me as there was significant personal involvement on my part, with support of our entire organisation, in securing this landmark deal.

Upon securing the contract with ADT, which opened up a new industry sector for us, MICCO’s prominence within the market rose further due to the sheer scale of the contract scope.

The transition to the new line of business was not without its challenges, but it allowed us to grow into one of the biggest 4PL service providers in Abu Dhabi. AD Ports Group was keen on developing the logistics side of their service portfolio and in 2020, made the decision to acquire MICCO thanks to our position as the leading private company within Abu Dhabi’s logistics supply chain ecosystem, whose reputation was further elevated with the award of the biggest 4PL contract in the UAE.

GSC: What does MICCO bring to AD Ports Group, and conversely, what does to be part of the AD Ports Group family mean for MICCO?

CD: Bringing MICCO into the AD Ports Group’s family was a strategic move as it allowed the Group to extend its capabilities into the area of logistics and becoming an integrated end-to-end supply chain logistics provider.

In addition, the Group was acquiring a successful organisation with strong business fundamentals, backed by our work with ADNOC, Etihad and large industrial players, strong asset portfolio and excellent brand name and market reputation.

Conversely, being part of the broader AD Ports Group family meant for MICCO that continued growth was assured.

Prior to being acquired, MICCO was a 100% private organisation, which meant that the speed of its organic growth was limited by the inherent scalability of private business. However, as we transitioned into the larger Group, the boundaries of MICCO’s growth have broadened significantly.

GSC: To what do you attribute the growth of MICCO to its current position as a leading provider of 4PL services?

CD: The number one attribute of MICCO’s growth have been its people, both leadership and operational teams alike.

I have been in management roles in this company for a number of decades and one of our major successes has been the retention of highly talented and qualified people within our organisation.

The fact that there are numerous team members who have been with us for the long term, is a testament that our people believe in our organisation and our mission – as ultimately, it is people that make companies, rather than the other way around.

Our second greatest asset has been our reputation, which was developed from recognition among companies that may have not engaged with us before. our time in serving the market and having customers experience the quality of our services. Our reputation, in turn, created a trusted brand within our marketspace, which allowed us to attract new customers and grow our business.

Ultimately, we feel that letting our services speak for themselves and staying one step ahead is the most effective form of marketing.

GSC: What is the range and scope of services offered by MICCO as an integrated Logistics Services Provider?

CD: Our scope extends into offering complete logistics supply chain services, which includes, freight forwarding, warehousing, commercial logistics, road feeder services and surface transport, land, sea and air chartering, distribution logistics, port services, and manpower services.

An example of this is MICCO becoming the logistics partner of ADNEC and having the opportunity to handle such global exhibitions like IDEX 2023. This opportunity has allowed us to not only extend our capabilities into event logistics, but also broaden our awareness and brand

We offer 3PL services where we have our own facilities from where we manage cargo storage, distribution and inventory management, and 4PL services where we manage our clients’ assets with our own manpower and equipment.

Our services are backed by an advanced fleet of over 400 vehicles and a team of over 1500 logistics professionals, which move 4.9 million tonnes of goods across 42.7 million kilometres each year, thanks to a network of renowned global partners.

Unlike a vendor that provides a good or a product, logistics is essentially a service offering that is delivered by a combination of technical processes run by well-trained and motivated teams of specialized professionals.

GSC: What industrial sectors does MICCO cover for its clientele?

CD: The sectors that we serve include Project Logistics, Industrials, Oil and Gas (Energy), Polymers, Healthcare, Food & Beverage, FMCG, port services, automotive, aviation, and now exhibitions as well. Just to give you a sense of scale of our industrial involvement, over the past four decades, we have handled contracts with leading EPC contractors for over a majority of projects in oil and gas, petrochemical, and heavy industries, and our team has handled some of the largest and heaviest modules and columns within the UAE as part of our project freight contracting services.

GSC: Talk to us about MICCO’s recent entry into event logistics by becoming a preferred logistics provider for ADNEC (and managing logistics for the IDEX2023 exhibitions)?

CD: Being the logistics partner of ADNEC in supporting IDEX2023 is exciting for MICCO as it is not only the first IDEX for our company, but is also the largest IDEX in its history.

With that in mind, success of such large scale exhibitions is down to making sure that you have sufficient, efficient and right people in place to complete specific logistical tasks within a very narrow time window. Typically, cargo begins arriving within about a week to ten days in advance of the exhibition and it does so in very large quantities.

Therefore, having the necessary structure, equipment and manpower at various entry points across the country, with complete knowledge of entry protocols and capability to engage with multitude of exhibitors, regulators and important stakeholders is crucial to helping deliver a successful event.

Just to illustrate a point, we handled over 600 shipments within a week, which requires our team to work around the clock to make sure that we are doing our part to make IDEX2023 a resounding success that it has been.

GSC: How is MICCO supporting Abu Dhabi’s growth as a regional food hub by providing operations and logistics services for KLP21, AD Ports Group’s recently announced strategic Food Storage Centre located in KEZAD?

CD: In line with the Group’s diversification strategy, AD Ports Group’s Logistics Cluster, along with the EC &FZ Cluster, recently launched the new advanced food warehousing centre, KEZAD Logistics Park 21 (KLP21).

Comprising four warehouses with over 80,000sqm of space and 100,000 pallets capacity, KLP21 is one of the largest and most advanced temperaturecontrolled logistics centres in the region designed to support the 3.3sqkm Abu Dhabi Food Hub.

The Logistics Cluster will operate one of the centre’s four 20,000sqm warehouses, which incorporates six multi-temperature chambers capable of accommodating 45,000 pallets at storage temperatures between -26°C to 25°C.

“The facility supports Abu Dhabi’s vision to become a global food trading and logistics hub, and MICCO is looking forward to supporting the operations at the facility and leveraging our diverse fleet assets to serve the needs of its clients”.

GSC: How did MICCO perform in 2022 and what is the outlook for 2023 going forward?

CD: 2022 was a great year for MICCO in terms of top-line growth. 2023 is looking very encouraging and we believe that it will beat expectations.

Considering the health of our business and the general development within the sectors and markets that we serve, we are very optimistic about our performance looking forward.

With the expansion of the Etihad Rail project, there is a transformation in progress in terms of how transportation will be delivered within our region. We look forward to being part of that transformation as the growth of rail will lead to the creation of transport hubs, allowing rail to assume the role of long-haul transport, while trucking can focus on the last leg of the supply chain.

The project is good both for business due to increased volumes, and for environmental sustainability as it will rationalise the role of trucking. Furthermore, there will be a number of landmark projects in the Ruwais area which will be very positive for the market for years to come.

GSC: How would you characterize your participation in the recently concluded Breakbulk 2023? What did you highlight there?

CD: Breakbulk 2023 was a great success and was the largest of its kind to date. We have been participating at every Breakbulk thus far, and I was really encouraged to see people from our own industry participating in the event and a lot of customers coming to the event as well.

The fact that a lot of customers, be it suppliers, manufacturers or EPC companies, were present is an indication that they are looking at logistics as a significant part of their value chain and a major cost component as well, both of which they need to get right in order to deliver effective services to their own customers.

Unlike in the past, most of our large customers today have logistics departments that are staffed with logistics professionals that understand our industry very well.

I have seen many of my logistics industry colleagues start working for our customers. This has been a welcome development as from our point of view, having an educated customer helps make our industry better.

GSC: Tell us about MICCO’s CSR priorities (Corporate Social Responsibilities)?

CD: We take CSR very seriously at MICCO, and over the course of 2022, we have maintained our efforts to both reduce our carbon footprint and maintenance costs by continuously refreshing our 400+ transport fleet with newer and more efficient models of trucks from all major manufacturers.

We are also exploring at the idea of bringing in EV units as well, once the technology matures, our customers become more comfortable with absorbing the additional costs, and as the regulatory environment develops.

As a matter of fact, we will be testing an electric truck from a major manufacturer next month to see how well it performs, and we are one of few freight forwarders in our market that is exploring this technology at the moment. Furthermore, we are testing the use of advanced fuel additives on a trial basis, which has shown to improve fuel efficiency of our fleet by up to 30%, and have introduced telematics for fleet management, which drives the fleet’s effectiveness by monitoring fuel consumption and drivers’ habits, while optimising delivery routes.

GSC: What are your growth plans for the short- and long-term futures?

CD: As our business grows in light of the large industrial projects that will be taking place in Abu Dhabi over the near and long term, we will continue to attract new talent to MICCO as having the right manpower is very important to the sustained growth of our business.

Having the right talents in place will allow our management to focus on developing and diversifying our infrastructure, including warehousing and trucking, and service offerings in order to take advantage of opportunities as they come.

The sectors that we believe will see significant growth include oil and gas, and non-oil industrials, food, FMCG, and pharmaceuticals.

GSC: What is your vision for MICCO on your watch? Where do you hope to steer the company?

CD: As AD Ports Group’s leadership has already said, the goal of the Group is to become a Top-10 global logistics provider by establishing a significant presence in all major global markets.

While MICCO’s main focus will remain local and regional, we expect that our brand recognition, along with our business, will grow as the Group continues to expand its scope and global reach.

We are excited for what the future brings and as our motto says, we will continue to focus on remaining one step ahead.