GLOBAL SUPPLY CHAIN APRIL 2022 ISSUE

April 2022 Issue 90

ENHANCING THE BUSINESS OF LOGISTICS

The Challenge Group Taking on the Challenges

Country Report: Oman Forging Ahead

LOGIX NAFL

Formidable Partnership

SSI Schaefer — Nahdi Automation Alliance

THE WORLD'S NEW LOGISTICS CENTER THE NEW HOME OF TURKISH CARGO THAT FLIES TO THE MOST DESTINATIONS IN THE WORLD IS BECOMING THE NEW CENTER OF AIR CARGO LOGISTICS, CONNECTING CONTINENTS.

DRIVE THE NEW WAY

NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions.

The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.

NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.

Bringing on the Challenges

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

Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai

Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

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The economic situation over the past two and half years can best be characterised as ‘challenging’. The Covid-19 pandemic onslaught has taken a devastating toll on the global economy, decimating many businesses notably travel and hospitality in its wake.

Now as the pandemic wanes and the world economy slowly begins to limp back to some semblance of normalcy, we are now confronted with another crisis—the war in Ukraine. The immediate fallout is the retardation of economic growth and the slowing down of much-needed recovery.

It is against this rather bleak challenging background that we have featured the pan European Challenge Group which includes CAL Cargo Airlines and Challenge Airlines BE, for our Cover Story for this edition. The Group, with its offering of multi-modal solutions, has been a standout and a veritable success story that needs to be narrated.

To this end, Global Supply Chain conducted an exclusive interview with Yossi Shoukroun, CEO, Challenge Group, who adopted Challenge as the Corporate name and ‘Challenge Accepted’ as its corporate slogan, is a very daring and assertive move!

Malta-based Shokroun spoke at length on his vision for the company, his strategy and tactical measures to attain corporate goals and financial objectives for the Group. Read on!

Elsewhere, a very significant development in the history of growing Indo-UAE trade relations has been the emergence of the Comprehensive Economic Partnership Agreement (CEPA) that is being billed as a historic one in many ways.

On 18 February 2022, India and the UAE inked a landmark pact aimed at providing a major fillip to the trade of goods and services between the nations. The UAE is India’s third-largest trading partner, and the mega deal was signed during a virtual summit meeting between Indian Prime Minister Narendra Modi and HH The Crown Prince of Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan.

“This agreement will usher in a new era in our bilateral economic relations and the bilateral trade volume will increase from US$ 60 bn to US$ 100bn in 5 years,” affirmed the Indian Premier. To this end, the 3rd edition of the three-day LOGIX hosted by the Federation of Freight Forwarders Associations in India (FFFAI) in partnership with NAFL (the UAE’s National Association of Freight & Logistics) to explore new vistas and opportunities of growth for logistics services providers in both countries.

Additionally, there is more content for insightful reading; input that we hope will stimulate, provoke and inform.

Happy reading!

Malcolm Dias Editor malcolm@signaturemediame.com APRIL 2022 3

Al Ghurair Automobiles

April 2022 Issue 90

22 06 NEWS 28 Savoye 32 Country Report-Oman LOGIX NAFL 36 SSI Schaefer-Nahdi 42 GWC Qatar 46 Up to date news of the Global Suppy Chain industry

Savoye strengthens footprint in MENAT region following recent partnership with ILA

There is optimism in the air for the Sultanate’s logistics sector CEPA is opening new vistas for LSPs both in India and the UAE The German Automation Company is making inroads into Saudi Arabia The LSP excels in Equine Logistics in Qatar

4 APRIL 2022

Challenge Group

Exclusive interview with Yossi Shoukroun, CEO.

48 Maersk Group 50 Swisslog OpEd Dubatt DIC 54 Abu Dhabi Ports 56 DP World 58 60 Etihad Rail

Group opens news warehouse in Jebel Ali Jafza

Five trends shaping E-grocery fulfillment in 2022 A new facility for recycling batteries is coming up at Dubai Industrial City A news roundup A news roundup

The Abu Dhabi-Dubai direct rail link rail track has now been completed

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Emirates SkyCargo reinstates dual hub operations in Dubai n Emirates SkyCargo has announced that it will be reactivating its cargo hub in Dubai South, Emirates SkyCentral DWC, for dedicated freighter aircraft operations from 26 March 2022.

The move will mark a return to dual hub cargo operations in Dubai for the air cargo carrier after a period of nearly two years. In April 2020, Emirates SkyCargo consolidated its freighter (main deck) and passenger (bellyhold) cargo operations at Dubai International Airport (DXB) in light of the suspension of passenger flights during the early stages of the Covid-19 pandemic.

The consolidation was aimed at streamlining and expediting the transport of essential supplies and medical items across the world.

With the growth of Emirates’ passenger network and operations, as well as the

progressive increase in cargo volumes, Emirates SkyCargo will once again structure its operations across two hubs in Dubai- with Emirates SkyCentral DXB handling cargo arriving or departing on passenger aircraft and Emirates SkyCentral DWC handling cargo on freighter aircraft.

A fleet of dedicated trucks operating on a 24X7 basis will provide seamless connectivity for cargo between the two airports. For high priority cargo and urgently required commodities, Emirates SkyCargo will be able to provide a connection time of under five hours from wheels down at DXB to wheels up at DWC and vice-versa.

Saudi Arabia’s SISCO reports FY-2021 results n Saudi Industrial Services Company (SISCO), Saudi Arabia’s leading strategic investor in ports and terminals, logistics parks and services, and water solutions, recently announced its financial results for the calendar year 2021.

Full year revenue, excluding accounting construction revenue, increased by 6.9% year-on-year to SAR 921.2mn-US$ 245.54mn (compared to FY-2020 adjusted revenue of SAR 861.6 million-US$ 229.65mn) driven by strong performance in the ports and logistics segments, the company revealed via a press communique.

Revenue for Q4-2021 decreased by 14.5% to SAR 205.1mn (US$ 54.67mn), compared to Q4-2020, due to pressure on gateway volumes across the Kingdom resulting from global logistics headwinds.

Gross profit for FY-2021 increased by 5.4% to SAR 446.5mn (US$ 119mn) largely driven by revenue growth in the ports and logistics

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segment. Q4-2021 gross profit decreased by 25.7% from Q4-2020 mainly due to the decline in the ports business gross profit Reported net income for the full year period decreased by 58.5% to SAR 57.9mn (US$15.43mn), the press statement continued.

“On an adjusted basis, SISCO delivered strong top and bottom-line results in 2021, driven by market share growth in Jeddah Islamic Port for both gateway and transshipment volumes, and healthy performance in the logistics and water segments,” affirmed Mohammed Al-Mudarres, CEO, SISCO, Key milestones during the year, in support of delivering on the strategy, including the part divestment of the Group’s direct equity stake in RSGT (Red Sea Gate Terminal), ramp-up in logistics capacity expansion by subsidiary LogiPoint, and an important independent sewage water treatment plant win by Tawzea.

Mohammed Al-Mudarres, CEO, SISCO.

Etihad Aviation Group and Al Dahra drive digital transformation n Etihad Aviation Group, incorporating the United Arab Emirates (UAE)’s national airline Etihad Airways, adopted SAP Ariba solutions to consolidate procurement operations in an effort to reduce negotiation cycle time, improve user experience and introduce e-invoicing with suppliers.

With the first nine Claudio Muruzabal, e-auctions, the organization SAP President Middle achieved double-digit East, Africa, and Southern Europe. cost savings, significantly reduced its vendor count, and awarded business to more local suppliers, helping to stimulate the local economy.

“The recent global pandemic accelerated execution of our digital transformation strategy to support our growth, enhance resilience in our supply networks, and advance our social and environmental agendas,” asserted Cassie Mackie, Vice President of Sourcing and Procurement, Etihad Aviation Group.“ Al Dahra, a world-leading agribusiness, needed storage options for grain in desert conditions to support the UAE’s food security. After posting its sourcing needs on SAP Ariba Discovery, Al Dahra received in under three days 142 enquiries from suppliers around the world. An online auction created a 15 percent price reduction, it was revealed in a press communique.

“One of the key reasons why we have opted for SAP Ariba was the power of its network, the ability to source suppliers in different countries is unique. For us this is quite important on a strategic level. It gives us a lot of assurance and it helps us to comply with the growing demands of the business,” remarked Mohamad Saker, Chief Corporate Services, Al Dahra.

“SAP’s Procurement Reimagined event is providing a global platform to showcase how Middle East organizations are using SAP’s innovative procurement technologies to become Intelligent Enterprises that are more resilient, competitive and sustainable,” commented Claudio Muruzabal, SAP President Middle East, Africa, and Southern Europe.

Etihad Cargo posts 49% revenue growth for 2021

n Etihad Cargo has recorded revenue growth of 49 per cent in 2021 as it continued to outperform expectations with a 27 per cent year-on-year increase in freight carried, contributing towards 55 per cent of the group’s revenue.

“2021 was a milestone year for Etihad Cargo,” noted Martin Drew, Senior Vice President Sales & Cargo, Etihad Aviation Group. “The Etihad Cargo team has worked closer than ever with partners and customers to address their demands and allocate necessary capacity, resulting in a record tonnage of 729,200 tonnes – the highest since 2017,” he continued.

In Q1-2021, Etihad Cargo temporarily modified five Boeing 777 aircraft to support cabinloaded cargo, operating more than 800 charter and scheduled cargo flights in the new configuration in 2021, adding capacity along key strategic routes, the carrier said in a press communique.

By mid-2021, Etihad Cargo had announced the recovery of more than 90 per cent of its network compared to pre-COVID. In total, the carrier operated more than 6,000 passenger freighters throughout the year, with freighter

utilisation averaging 16.5 hours.

Premium products have also seen remarkable growth.

PharmaLife, the carrier’s awardwinning pharmaceutical shipment solution, achieved a 85 per cent increase in revenue on 2020, while FreshForward, for transporting perishables, increased by 26 per cent.

With the relaxation of travel restrictions, SkyStable, the carrier’s dedicated equine transportation solution, grew by 28 per cent, and SafeGuard, for transporting valuables, increased by 103 percent compared to 2020.

Over the past year, Etihad Cargo continued to facilitate critical Covid-19 vaccine distribution which contributes to 30 per cent of its pharmaceutical shipments. Jointly with its partners at the HOPE Consortium, over 250mn Covid-19 vaccine doses have been handled to over 40 countries.

In addition, the carrier has announced exploring a proof of concept with SPEEDCARGO for using Artificial Intelligence to measure cargo dimensions and optimise space planning, which will in turn allow Etihad Cargo to improve capacity planning.

APRIL 2022 7

DHL opens region’s first-ever electric vehicle and battery logistics hub in Dubai n The region’s first-ever electric vehicle (EV) and battery logistics hub is now open in Dubai’s Jebel Ali Free Zone.

Built by DHL Global Forwarding and developed in close cooperation with the EV team of DHL Customer Solutions & Innovation (CSI), the 23,500sqm warehouse includes a dedicated EV battery storage area, which will be expanded to 2,000sqm later this year.

“This Centre of Excellence supports the UAE’s and Middle East’s transition to the circular economy by ensuring a consistent supply chain for sustainable mobility solutions,” commented Fathi Tlatli, President Global Auto-Mobility Sector, DHL CSI. EVs are a critical to decarbonize the transport sector. The EV market is expected to grow six times its size over the next 10 years, on the back of surging EV sales. More than half (55%) of new car sales by 2040 are projected to be EVs. “Across the Middle East, DHL is meeting customer needs for EV logistics by leveraging global best practices with specific regional requirements in an agile

and scalable manner,” recorded Samer Kaissi, Country Manager, Dubai and Northern Emirates, DHL Global Forwarding.

Powered by DHL’s Team EV, EV logistics in the region can now be more

AD Ports Group acquires Divetech Marine Engineering Services n AD Ports Group today announced that it has acquired Divetech Marine Engineering Services, a UAE-based topside-subsea solutions provider that offers a range of services including installation, inspection, repair and maintenance for ports and other maritime organisations.

The acquisition and integration of the company into AD Ports Group will extend the range of services offered by the Group’s maritime cluster, placing it in a strong position to generate significant commercial, operational, and financial synergies.

The 100% acquisition will be fully funded from AD Ports Group’s existing cash reserves. Divetech delivered revenue of AED 87mn and EBITDA of AED 20mn in 2021.

“This acquisition also enables our Maritime Cluster to provide a fully holistic service offering that includes undersea inspection, maintenance and repair,” Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group.

“Divetech is a leader in diving and marine services in the UAE, with a wellrespected track record and diverse customer base. It has also delivered impressive top-line growth over the last three years,” remarked Capt. Maktoum Al Houqani, Chief Corporate Authority Officer and Acting Head of Maritime Cluster, AD Ports Group.

8 APRIL 2022

flexible and agile. Compliant, safe, and scalable, DHL’s Dubai facility is custom designed for handling and storing EV material including batteries, charging equipment, and other dangerous goods, a press statement concluded.

SAFEEN Group reinforces Harbour Fleet with addition of ‘SEMAIH’ Harbour Tug

n SAFEEN Group, the marine arm of AD Ports Group, has announced the acquisition of SEMAIH, a RAmparts 2200–Sanmar ‘SIRAPINAR’ Series ASD Harbour Tug, to expand and bolster its towage service capabilities.

Powered by a Caterpillar engine achieving a bollard pull of 50 tons ahead and 45 tons astern, the new vessel is the latest addition to SAFEEN Group’s 20-strong tugboat fleet.

The acquisition is an integral part of the organisation’s ongoing efforts to expand its capabilities and exemplifies AD Ports Group’s commitment to enhance its unique maritime logistical offering with the latest vessel design and service solutions on offer within the industry.

“This tug addition strengthens our ability to meet the evolving trade demand and requests for chartering services, as well as address the increasing complexity of logistical operations across the region,” commented Captain Maktoum Al Houqani, Chief Corporate Authority Officer and Acting Head of Maritime Cluster, AD Ports Group.

“We look forward to further collaboration in the future towards reaching our mutually ambitious targets for building a more sustainable maritime future for all our customers and stakeholder,” remarked Gary Dockerty, Sales Director, Middle East and Africa, Sanmar Shipyards.

The new tug, while currently under construction at one of the tugboat manufacturer’s purpose-built, shipyards in Turkey, will be delivered to AD Ports Group in Q1-2022.

Bahri receives ISO 22301: 2019 certification for exceptional standards of business continuity n In recognition of its commitment to adhering to the latest standards of Business Continuity Management System (BCMS) and establishing robust business continuity strategies, Bahri, a global leader in logistics and transportation, was awarded the ISO 22301:2019 certification by the British Standards Institution (BSI) recently.

The certification highlights the strength of Bahri’s business model as well as its dynamic crisis-response strategies, especially during the pandemic period, which enabled the company to ensure uninterrupted operations and demonstrate a high level of resilience amid challenging circumstances.

“We are honoured to receive this prestigious certification as it underlines our firm commitment to ensuring business growth and excellence, operational efficiency, human resources development, and customer satisfaction,” commented Eng. Abdullah Aldubaikhi, CEO, Bahri.

The accomplishment follows the completion of Bahri’s intensive, bottom-up development of its Business Continuity Management System (BCMS) across its Dubai, Riyadh, Dammam, Jeddah, and Jubail offices over several months.

The week-long intensive external audit conducted by BSI - one of the most respected and reputed management systems certification bodies in the world–recommended Bahri for the ISO 22301:2019 certification with zero non-conformances.

Valid for three years, the certification covers all the business units of Bahri, including Oil, Chemicals, Dry Bulk, Logistics, and Ship Management, as well as its support services, including Finance, IT, Corporate Services, Strategy, Internal Audit, Corporate Secretariat, and Legal Counsel, across all five GCC offices of the company.

APRIL 2022 9

ACWA Power inks power purchase agreement for 700 MW Ar Rass Solar PV project n ACWA Power and the Saudi Power Procurement Company (SPPC), the principal buyer, today signed a power purchase agreement (PPA) to develop the 700 MW Ar Rass solar photovoltaic independent power plant (IPP) in Saudi Arabia’s central Al Qassim province.

The agreement was signed in the presence of HRH Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.

Under the terms of the agreement, ACWA Power will sell energy produced by the project to SPPC for a period of 25 years. Valued at US$450 million (SAR 1.7billion), Ar Rass is the largest PV project that has been tendered as part of Saudi Arabia’s National Renewable Energy Programme (NREP) to date, for which ACWA Power has been earmarked to deliver 70% of the total 58.7 GW target.

ACWA Power will hold a (40.1%) stake in the facility, along with (20%) by the Water and Electricity Holding Company (Badeel), a wholly owned PIF Portfolio Company, and (39.9%) will be owned by

the State Power Investment Corporation from China. When fully functional, the project will produce energy to power around 132,000 homes in central Saudi Arabia.

“As Saudi Arabia’s leadership ramps up its multi- gigawatt plans for diversifying its energy mix to include

renewable energy, solar power is a key component in unlocking positive economic, environmental and social outcomes, whether it is for consumer use, or in mega-projects,” stated Mohammad Abunayyan, Chairman, ACWA Power.

The Ar Rass IPP is expected to reach financial close in Q4-2022.

Opportune time to invest in Saudi Arabian ports—Gulftainer n Saudi Arabia’s Vision 2030 is focused on leveraging the Kingdom’s strategic location to boost its role in connecting the continents of Africa, Asia and Europe. It’s unique location, coupled with the Saudi Ports Authority’s recent allocation of US$ 2.4bn for investment in the development of local ports, there has never been a better time to invest in the Kingdom.

This is according to Jason French, Group CEO, Gulf Stevedoring Contracting Company, a subsidiary of global port and logistics operator Gulftainer, who says that the encouragement of private investment in port infrastructure and services is key to the sustainable development of the Kingdom’s ports.

The privately owned, independent port management and logistics company, which is based in the UAE, is a prime example of the difference such investment can make – its subsidiary in Saudi Arabia, the Gulf Stevedoring Contracting Company, last year invested US$ 50mn to further expand operations at Jubail Commercial Port (JCP) and boost its handling capacity to 1.8 million TEUs. Al Jubail can be replicated. “With our extensive experience in terminal management and our focus on reliability, flexibility, efficiency, and sustainability, we have built a strong foundation of global shipping and logistics services at Al Jubail. Our ambition will be able to duplicate this across other ports and to be a catalyst in the growth of the Kingdom’s trade and economy. The ports sector in Saudi Arabia offers fantastic investment opportunities. With the right investment partners, it can truly become a launch pad for the region,” concluded French.

10 APRIL 2022

FarEye introduces new sustainability capabilities to minimize CO2 emissions Bahri concludes participation in WDS 2022 with two prominent strategic agreements n Highlighting its prominence as a reliable logistics provider with diverse capabilities, Bahri, a global leader in logistics and transportation, concluded its successful participation in the recently concluded World Defense Show (WDS) 2022, the inaugural edition of Saudi Arabia’s global defense exhibition held in Riyadh from 6-9 March.

Bahri signed two prominent strategic partnership agreements at the event and exhibited its unique logistics solutions. The company was also the official freight forwarding partner of WDS 2022.

Bahri’s strategic partnership agreements were signed with the Saudi Arabian National Guard (SANG) and the Saudi Maintenance and Supply Chain Management Company (SMSCMC). The agreements entail multiple long-term benefits for Saudi Arabia’s maritime sector and in line with the ambitious aspirations of Vision 2030, which seek to establish a robust logistics and transportation sector in the Kingdom.

Commenting on Bahri’s participation in WDS 2022 and its new strategic agreements, Eng. Abdullah Aldubaikhi, CEO of Bahri, said: “We are confident that these promising opportunities will accelerate our journey of growth in line with our short- and longterm objectives.”

Bahri’s agreement with SANG was signed in the presence of HRH Abdullah Bin Bandar Bin Abdul Aziz, Minister of National Guard, and Eng. Abdullah Aldubaikhi, CEO, Bahri. Under the agreement, Bahri will provide logistics services to SANG, signifying a new milestone in the company’s continued support to the Kingdom’s security forces.

The agreement was signed jointly by Jeremy Charmak, CEO, SMSCMC and Eng. Abdullah Aldubaikhi. The partnership represents the shared commitment of both companies to create jobs and improve the capabilities of the Saudi nationals and enable their career growth.

n FarEye, a global SaaS platform provider transforming last-mile logistics, recently announced several new capabilities for more environmentally sustainable delivery operations, route optimization, and consumer experience.

New capabilities across FarEye’s Intelligent Delivery Management Platform are designed to help customers boost delivery efficiency, enable green fleets, and gain visibility into outcomes of sustainability initiatives.

“In 2021, customers that used our platform collectively helped reduce carbon footprint by 40,961 tons. We see this number continue to increase as our customers adopt and use these new capabilities across first, mid, and last mile in their delivery network,” remarked Suvrat Joshi, Chief Product Officer, FarEye. FarEye’s four new sustainability capabilities have been developed to help both shippers and carriers minimize CO2 emissions throughout their logistics operations, addressing end consumers’ desire to have their online orders delivered on time and with minimal or zero carbon emissions.

These features include the Green Vehicle Route Planning that enables customers to design and plan last-mile delivery of products with an intelligent mix of green fleets (cargo bikes, bikes and foot delivery); Long-Haul Truck Route Planning that allows carriers to design optimal multi-day, long-haul trucking routes to minimize idling times, avoid roadblocks and reduce fuel consumption.

The Sustainability Dashboard provides a visual representation specifically measuring carbon footprint KPIs for the customer, helping them understand carbon emissions breakdown by mode, route, carrier.

The dashboards are designed to scale to be granular enough to measure package-level emissions. The dashboard also provides the ability to track and control CO2 emissions across all modes of transportation (road, rail, ocean and air) and benchmark third-party carriers and routes with the least CO2 emissions.

APRIL 2022 11

Saudi Fund for Development inaugurated new infrastructure projects in Djibouti n The Saudi Fund for Development (SFD) recently inaugurated two new development projects in the water and housing sector and laid the foundation stone for a project in the transportation sector in Djibouti, with a total amount of US$ 137mn.

During an official visit to the East African nation, Saudi Fund for Development CEO, Sultan Bin Abdulrahman Al-Marshad, met with the President of the Republic of Djibouti HE Ismail Omar Guelleh to discuss the projects financed by SFD for economic and social development worth US$ 305mn since 1982.

As part of the visit, Al-Marshad and the Prime Minister of Djibouti, Abdoulkader Kamil Mohamed, inaugurated a new project to supply clean drinking water to 45,000 people in the coastal Province of Obock.

Funded with a grant of US$ 10 million provided by Saudi Arabia through the SFD, it will involve the construction of 105km of water pipes and eight water tanks to pump clean water from the Bissidiro region.

The SFD CEO and Prime Minister also laid a foundation stone to upgrade 60km of the Djibouti-Galafi arterial road, which was originally funded by Saudi Arabia through the SFD, with US$ 120mn.

“The Saudi Fund for Development has an established track

record in supporting sustainable economic and social initiatives in developing nations. We are pleased to provide ongoing socioeconomic support to our brothers in Djibouti in line with UN Sustainability Development Goals,” commented Al Marshad.

Emirates Building System fast tracks Pharmaceutical Warehouse Project n Emirates Building Systems (EBS), a wholly owned subsidiary of Dubai Investments, and one of the leading manufacturers of steel structures in the Middle East, has successfully completed the pharmaceutical warehouse project for G42 Pharmaceutical Manufacturing Company located in the KIZAD Life Science Park Phase 1 within three months.

The fast-tracked project scope included the supply of 3500MT of steel and accessories inclusive of engineering, procurement, fabrication, supply, installation and fireproofing of the structural steel works.

The Company worked closely with the main contractor to complete the project in the stipulated timeframe. The warehouse spread across three levels is 50m wide, 140m in length, and 30m in height.

“Incorporating the most advanced technologies in design, fabrications, and planning which are increasing the overall productivity, we are able to successfully execute fast track projects and this project is one of them, where we successfully managed the entire scope within a period of 3 months,” commented Joseph Chidiac, General Manager, Emirates Building Systems.

Among the major projects currently being executed by EBS

12 APRIL 2022

include Jafza Logistic Park, steam turbine buildings in Solar Parks Dubai; warehouses for Abu Dhabi Ports authorities, and development projects in Algeria, among many others from multiple countries.

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Noon.com opens the largest Customer Fulfillment Centre in Saudi Arabia n noon.com, the Middle East’s leading digital e-commerce platform, recently opened its largest warehouse space in Riyadh, Saudi Arabia, as part of its ongoing expansion of the logistics and fulfillment network in the Kingdom.

The new ‘Customer Fulfillment Centre’, which spans over 45,000sqm, will enable the rapid delivery of products to millions of customers throughout Saudi Arabia.

Noon’s logistics and fulfillment network in the Kingdom has grown to more than 270,000sqm, including CFCs, last-mile hubs, and many gateway hubs. “noon is committed to enabling the development of systems that contribute to maximizing economic impact and investment across the Kingdom, while also creating increased employment opportunities in our local communities,” commented Ahmed Gadouri, noon KSA. “Our in-house logistics and fulfillment network is critical in driving speed and efficiency to support an ever-improving customer experience,” he continued.

Noon continues to develop its delivery operations and services across the Middle East, creating possibilities for local talent to thrive, a press statement concluded.

Halliburton opens first oilfield Specialty Chemical Manufacturing Reaction Facility in Saudi Arabia n Halliburton recently celebrated the opening of the Halliburton Chemical Reaction Plant – the first of its kind in Saudi Arabia to manufacture a broad range of chemicals for the entire oil and gas value chain as well as many other industries.

The facility expands Halliburton’s manufacturing footprint in the Eastern Hemisphere and strengthens and accelerates its ability to serve the chemical needs of Middle East customers, the company said in a press communique.

“This world-class plant is part of our more than US$ 1bn commitment to Saudi Arabia over the past ten years. It further increases our in-country presence and supports the In Kingdom Total Value Add program by providing new opportunities to local suppliers, vendors, other manufacturing partners, and the local workforce,” commented Jeff Miller, Chairman, President, and CEO, Halliburton.

In addition to manufacturing, the facility allows Halliburton to expand its specialty chemicals research and applications for oilfield stimulation and production. Also, Halliburton now can better serve the region’s

14 APRIL 2022

industrial water and process treatment markets, including refineries, petrochemical plants, and other heavy industrial operations.

“The new downstream industries envisioned for PlasChem Park are vital for the future of the Kingdom’s chemicals and petrochemicals industry. The inauguration of the Halliburton Chemical Reaction Plant will help realize the Kingdom’s Downstream Initiative, combining global expertise with the special chemicals that Sadara produces,” remarked Dr. Faisal Al-Faqeer. CEO, Sadara Chemical Company.

The facility opens contract manufacturing and tolling opportunities to support Saudi agriculture, mining, personal care and other industries. Located at the PlasChem Park in Jubail, the plant advances Halliburton’s

growing presence and commitment to provide enhanced research and development and technical solutions to the local market.

Halliburton formally opened its chemical reaction plant with a ribbon cutting ceremony. Other dignitaries present included Saudi Aramco Vice President of Unconventional Resources, Khalid Al-Abdulqader; Saudi Aramco Vice President of Procurement and Supply Chain Management, Mohammad Al Shammary; Royal Commission CEO, Dr. Ahmed AlHussain; Saudi Aramco Senior Vice President of Upstream, Nasir Al-Naimi; Saudi Aramco Executive Director of Petroleum Engineering & Development, Waleed Al-Mulhim and Saudi Aramco Vice President of Drilling & Workover AbdulHameed Al-Rushaid.

alfanar invests US$ 1.33bn to produce 180mnL of sustainable aviation fuel annually n As part of his recent official visit to the Kingdom of Saudi Arabia and during his visit to the Sabic Development Centre in Riyadh, UK Prime Minister Boris Johnson visited the stand of alfanar where company officials briefed him and provided an outline of their project in Teesside, North East of the UK, where the company is investing one billion UK Pounds in the ‘Lighthouse Green Fuel’ project to produce sustainable aviation fuel from waste.

The project, which is the first of its kind in the UK, produces more than 180mn litres of sustainable aviation fuel annually in the United Kingdom. This amount of sustainable aviation fuel is sufficient to operate 15,000 flights per year, reducing harmful carbon emissions from conventional fuels by more than 700,000 tons annually.

The project is part of alfanar’s ongoing Green Energy Development Programme in different parts of the world, including Spain, India, Egypt and Saudi Arabia.

Bosch to invest on extending semiconductor production in Reutlingen, Germany n In a move to combat the ongoing global chip shortage, Bosch plans to further extend its wafer fab in Reutlingen, Germany.

More than a quarter of a billion euros is to be invested in creating new production space and the necessary clean-room facilities between now and 2025. This will give Bosch the firepower to meet the continuously growing demand for chips used in mobility and IoT applications.

“We are systematically expanding our manufacturing capacity for semiconductors in Reutlingen,” commented Dr. Stefan Hartung, Chairman of the Board of Management, Robert Bosch.

“This new investment will not only strengthen our competitive position but will also benefit our customers and help combat the crisis in the semiconductor supply chain,” he continued.

The construction of a new extension in Reutlingen will create an additional 3,600sqm of ultramodern clean-room space. As of 2025, this additional capacity will produce semiconductors based on technology already in place at the Reutlingen plant.

Bosch is also extending an existing power supply facility and will construct an additional building for media supply systems serving both the new and existing production areas.

The new production area is scheduled to go into operation in 2025.

“AI methods combined with connectivity have helped us achieve continuous, data-driven improvement in manufacturing and thereby produce better

and better chips,” remarked Markus Heyn, Member of the Board of Management of Robert Bosch and Chairman of the Mobility Solutions Business Sector.

The further expansion of the Reutlingen site will primarily serve the growing demand for microelectromechanical systems (MEMS sensors), in the automotive and consumer sectors and for silicon-carbide power semiconductors.

APRIL 2022 15

New FedEx study underscores priorities for Gen Z in the UAE n FedEx Express recently revealed the findings of its ‘Future is Now’ Study among Gen Z (18-24 years old).

As one of the most dynamic emerging markets worldwide, the UAE is home to a vibrant young population, and the study offers valuable insights into the priorities of the younger generation in the country, a press communique stated.

This is particularly true for Gen Z. According to the ‘Future is Now’ study, 35% of Gen Z respondents associated the phrase ‘Future is Now’ with technology advances in business, healthcare, education, and transportation, 33% to sustainable development, 20% to the rise in the use of robotics and artificial intelligence, 8% to expecting everything to be personalized for them, and a mere 4% to living on Mars.

“As an industry leader, we have a responsibility towards the next generations and take bold actions by constantly innovating to meet future expectations,” observed Jack Muhs, Regional president of FedEx Express Middle East, Indian Subcontinent and Africa.

The study indicated that 24% of Gen Z respondents stated they would consider a company’s sustainability agenda and its way of conducting business as a critical measure for choosing work, while an equal percentage (24%) viewed the adoption and

use of technology as most important.

98% of Gen Z respondents also agreed that sustainability would be an indispensable part of their business in the future, and 94% agreed that being ‘planetconscious’ is integral to a futuristic outlook.

Alfa Laval committed to sustainability pledges in the Middle East n Alfa Laval recently hosted a net-zero insight and innovation event, hosted under the theme ‘Innovation that accelerates sustainable solutions’ with engaging discussions around the newest challenges faced by the industries Alfa Laval operates in.

With a spectacular line-up of speakers and presentations, the event sparked innovation imagination on the need to decarbonize the global economy while also producing more energy to meet growing demand.

“We value long-lasting partnerships with our customers and actively collaborate on industry leading net-zero practices,” confirmed Sergio Hicke, President, India, Middle East & Africa, Alfa Laval. “Solving challenges for businesses sparks our imagination and we constantly find innovative ways to assist in the transition away from the carbon economy,” he added.

Energy efficiency, clean energy, and the

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circular economy are the core of Alfa Laval’s sustainability offering in the Middle East, and the heart of what the company can help its customers achieve.

Alfa Laval’s heat transfer and separation technologies have an immediate and sustained effect on the need to meet increasing energy demands and dramatically reduce carbon emissions, a press communique continued.

Alfa Laval is proactively leading a reduction in carbon emissions for Middle Eastern governments, supporting the ambitious net-zero targets in the region.

With the UAE pledging net-zero by 2050 and Saudi Arabia by 2060, Alfa Laval reduces carbon emissions in sectors that are difficult to decarbonize, reducing cost for businesses with industry leading energy-efficiency.

World Defense Show concludes first edition with US$ 7.92bn in deals n Following four trade days that brought together 600 defense and security exhibitors from 42 countries, the fourday World Defense Show (6 to 9 March 2022) concluded its first edition in the Saudi Arabian capital Riyadh recording SAR29.7bn (US$ 7.9bn) in deals.

Founded by the General Authority for Military Industries (GAMI), the world’s first show focused on defense interoperability received 80 global military delegations, 65,000 visits and representation from 85 countries from east to west.

“The networking, knowledgesharing and commercial relationships established through the World Defense Show platform will spur a new era of

investment and growth for Saudi Arabia’s defense and security industry bringing us closer to achieving our target of localizing more than 50% of the Kingdom’s military expenditure by 2030,” observed Ahmad Al-Ohali, Governor, GAMI. As the regulator, enabler and licensor of Saudi Arabia’s defense sector, GAMI worked with partners to review contracts announced at the show, with detailed evaluation of technical specifications in line with international standards, ensuring spending efficiency and operational readiness.

The 2022 edition of World Defense Show was packed with industry-leading networking programs and demonstrations.

From creating business opportunities

through the ‘Meet the Buyer’ programme to thought-provoking initiatives such as International Women in Defense and Future Talent, the show paved the way for further collaboration, sector growth and human capital development a press communique concluded.

The second edition of the biennial WDS will be hosted in Riyadh between 3 to 6 March 2024.

Unilever separates tea business to form eaters n Unilever recently announced the separation of its tea business as a standalone organisation.

The new tea company, now known as ekaterra, is well positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development.

A facility in Dubai will house both, a corporate head office for ekaterra’s Africa, Middle East & Turkey (AMET) region as well as a strategically positioned manufacturing complex, the Lipton Jebel Ali (LJA) factory.

With over 23 years of operations and huge direct investment in the UAE, this factory produces a variety of tea brands serving the region and which are exported across 50+ countries in 6 continents.

The LJA factory is Unilever’s 1st carbon neutral site since 2019 and ekaterra remains keen on reducing the facility’s contribution to CO2 emissions in the region by shifting to the use of solar energy in the future.

As the first factory in the UAE to achieve a ‘Zero-Waste-To-Landfill’ status as early as 2014, this new facility has been designed

to ensure minimal environmental impact, supporting the UAE’s vision on sustainable development goals.

“The journey to maintain our leadership starts with the cup, hence, to further our commitment to consumer quality in the

new facilities we have significantly enhanced our capabilities to plan, monitor and ensure only the best cup of tea is served to our consumers,” said Abhiroop Chuckarbutty, ekaterra President, AMET, at the inauguration of ekaterra facilities.

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Wayout International to revolutionize water supply

n Wayout International brought the latest in digitized eco-friendly water systems at Expo 2020’s Swedish Pavilion to demonstrate how clean technology is being applied to support communities.

A single Wayout system can supply 3,000 people with clean and safe daily drinking and cooking water with zero by-product, while helping to eliminate the use of approximately 6.5mn plastic bottles and prevent the release of 536 MT of carbon dioxide emissions yearly.

The ‘smart’ system stores data on water purity in a digital chip and communicates essential information and consumption data to the user and operator, allowing users to monitor their water drinking habits and the purity of the water consumed.

By installing Wayout’s digitized eco-friendly water systems, including its Smart Pods and Kegs, consumers will transform the area’s water supply and provide a more eco-friendly, smart, and healthier offering for residents in a city that pioneers in sustainable urban

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development.

The discussions will be led by renowned experts and personalities including ocean explorer and world record free diver William Winram, Wayout’s Founder and Creative Director; Martin Renck, and Executive Director, Dubai’s Department of Tourism and Commerce Marketing, Yousuf Lootah, among others.

“Through our discussions in water week, we aim to bring together the heads of innovation to spark a conversation on the importance of innovation for sustainable water solutions commented Renck.

Wayout provides innovative, minimal eco-footprint water systems that distribute scientifically perfected, safe drinking water locally across many markets. The company works to challenge water scarcity through affordable sustain-tech solutions that provide access to 100 percent locally sourced, pure and safe drinking water for schools, corporations, home use, hotels and restaurants, a press communique concluded.

SirajPower to help Al Ghurair Trading reduce their carbon footprint n SirajPower recently announced another significant solar partnership for a 2 MWp solar rooftop system with Al Ghurair Trading, a pioneer organization in real estate warehousing.

As part of this partnership, SirajPower will provide their industry-leading end-toend service, which includes financing, designing, constructing, operating, and maintaining a 2MWp solar rooftop plant at one of Al Ghurair’s largest warehouse facilities in Al Quoz, which covers a 16,682sqm.

“This solar rooftop project will help offset a substantial portion of Al Ghurair’s energy needs whilst also providing the owners and tenants with a clean source of power,” commented Mohammed Abdulghaffar Hussain,

Chairman, SirajPower.

Due to the significant size of the warehouse, the project will utilize over 3,000 solar panels to generate 3.5 GWh of clean energy annually, equivalent to nearly 2,480MT of CO2 emissions offset by almost 41,014 tree seedlings grown for a decade.

Based on the facility’s current production output and consumption, the solar rooftop plant is expected to generate more than 60% of the facility’s annual energy requirements, drastically reducing Al Ghurair Trading’s reliance on conventional electricity.

“SirajPower’s unrivaled portfolio made them the ideal partner to help us build, operate, and maintain our first solar rooftop warehouse,” remarked Ali Al Ghurair, Chairman, Al Ghurair Trading.

Turkish Cargo

Turkish Cargo gets Quality Certification from Cargo iQ

Certification is a critical independent benchmark for the carrier’s performance

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urkish Cargo now has its global operations and services certified by the coveted Cargo iQ Certificate.

The carrier attributes obtaining the certification to the company’s accomplishments, capabilities, innovations and new initiatives.

The top airline became has been recognized by Cargo iQ, an IATA (International Air Transport Association) interest group with the mission of creating and implementing quality standards for the worldwide air cargo industry.

Comprehensive inspection

As part of the Cargo iQ requirements, all processes, including conformity of its operational processes, the services it offers to its customers and the quality management in general terms, of Turkish Cargo, have undergone an inspection by SGS, the independent inspection company based in Geneva and contracted by the IATA. Consequently, the comprehensive inspection was conducted accordingly, the processes and services, carried out meticulously by Turkish Cargo, have been determined to be compliant with the quality standards of Cargo iQ. “The Cargo iQ certificate, an independent benchmark for our performance consistent with the quality standards of the logistics industry, is a

key milestone that denotes our service quality, operational excellence, our standards that are innovative and aimed at meeting the customers’ expectations, and adherence to sustainable goals and commitments,” affirmed Turhan Ozen, Chief Cargo Officer, Turkish Airlines.

Reliable solutions partner

“Thanks to the cutting-edge technologies it uses and develops, and the innovative approaches it adopts and its service quality that is beyond the expectations, Turkish Cargo will continue to rank among the most reliable solution partners in the air cargo industry,” he added.

“We are gratified that Cargo iQ has issued the Quality Audit Certificate to the team of Turkish Cargo. The external auditor and industry regulator has verified and confirmed that Turkish Cargo is complying with the process standards created by Cargo iQ for all our members and for the air cargo industry at large,” asserted Lothar Moehle, Executive Director, Cargo iQ. “I would like to commend hard work of the entire Turkish Cargo team. As the quality work never stops, we are looking forward to cooperating with the TK Cargo team on even further quality improvements in the future,” he concluded.

Turhan Ozen, Chief Cargo Officer, Turkish Airlines.

Operational capabilities 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.

Within this framework, 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.

As a mega airline, with air cargo operations to more than 340 destinations, 98 of which are cargo-only destinations, in 132 countries around the world, Turkish Cargo operates with its fleet of 373 aircraft, 20 of which are freighters, at its hub in Istanbul that connects the continents with its strategic importance.

Turkish Cargo, the fastest growing and developing air cargo brand of the world, aims to become one of the top three air cargo brands in 2025.

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MEFMA 2022

Bright future for the Facilities Management sector predicted in the region MEFMA recognised leading contributors of the industry at MEFMA Awards of Excellence

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he Middle East Facilities Management Association (MEFMA) recently concluded its CONFEX 2022, the region’s largest facility management (FM) event. The event ended on a high note with industry leaders and experts coming together to identify new opportunities and prospects for the future of the FM industry, a press communiqué stated.

The MEFMA CONFEX 2022 took place from March 14 to 17, with the participation of over 500 industry professionals, experts, and government representatives. Eng. Dawood Abdul Rahman Al Hajri, Director General, Dubai Municipality, led the inauguration ceremony, which was followed by a series of workshops, presentations, and panel discussions on industry-related topics.

The welcome address by Jamal Lootah, Co-Founder and President, MEFMA, highlighted the FM market’s potential for rapid growth due to the need for efficiency and cost-effectiveness in operations, and how MEFMA promotes growth through such events.

FM Initiatives

The first day of the event included a series of workshops that presented the latest FM initiatives in digital building and artificial intelligence for the future of FM. The second day of the event featured a wide range of segments, with industry professionals providing insights on key topics through panel discussions, namely ‘FM Transformation Strategy–What Does it Take’ and ‘Technology and Data Driven Facility Management–The Core of Business Excellence and Sustainability.’

Additionally, the event featured case studies that highlighted concepts such as the technological transformation in FM and the leadership roles towards

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adopting technology.

The 3rd and 4th days of the CONFEX consisted of site visits to the ongoing EXPO 2020 Dubai, where participants interacted at various pavilions to gain insight and inspiration.

Awards of Excellence

This year’s event was also highlighted by the very first MEFMA Awards of Excellence in FM 2022. The MEFMA Awards were launched with a vision to promote best practices in the FM industry and drive innovation in the coming years. The awards covered various categories such as Customercentric FM, Digital Transformation, Education and Development, Health and Safety, Sustainability and Energy Management, and Technology Implementation in FM industry.

The winners of the MEFMA Awards

of Excellence in FM 2022 included Musanadah Facilities Management in the Customer-centric FM category; Emrill Services in the Education and Development in FM category; AG Facilities in the Health and Safety in FM category; ENGIE Solutions in the Sustainability and Energy Management in FM category; Initial Saudi Group in the Digital Transformation in FM category; and Imdaad in the Technology Implementation in FM category.

Showcasing dedication

“As part of our first MEFMA Awards of Excellence in FM 2022 ceremony, we are proud that we have successfully recognized and rewarded members for showcasing their dedication to the industry. We congratulate all the winners and encourage all to keep working with the same spirit,”observed Lootah.

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Challenger Group

Massive expansion on the cards for Challenge Group The Challenge Group is a boutique and comprehensive logistics services provider offering global door-to-door transportation with a focus on complicated cargo. In an expansive interview with Global Supply Chain, CEO Yossi Shoukroun explained the reasoning and explanation behind the slogan ‘Challenge Accepted’!

22 APRIL 2022

Challenger Group

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he past two years have no doubt been the most challenging in the entire history of aviation and yet, for one multinational logistics services provider and conglomerate, challenges are what it thrives and, literally, delivers on.

Welcome to the blossoming Challenge Group that characterizes itself as the experts in international cargo solutions.

When you combine experience, an extensive skill set capable of tackling any air cargo and aviation situation, and when defining individual, customercentric solutions is in your company’s DNA, then adopting Challenge as your name and ‘Challenge Accepted’ as your

corporate slogan, is a very logical move, a corporate spokesperson affirmed.

It is also part of a major rebranding that has been underway ever since the Group embarked on its harmonised restructuring in 2020.

Challenge Group composition So, what is the Challenge Group and what does it constitute? It comprises eight associate companies and subsidiaries operating under the corporate umbrella operating from multiple locations.

Challenge Group is a unique, international air cargo conglomeration offering tailored air freight industry solutions

from handling, air and ground logistics, to aviation services, for a wide range of industries and commodities.

Headed by CEO, Yossi Shoukroun, the Group incorporates three airlines: CAL Cargo Airlines based in Israel; Challenge Airlines BE based in Belgium; Challenge Airlines MT and Challenge Air Cargo (the Commercial Arm of the Group) both based in Malta, its own ground handling company in Liege, Belgium; Challenge Handling, a strong European road feeder network out of Liege; Challenge Logistics, an aircraft and parts leasing division; Challenge Aviation, and a comprehensive line maintenance provider, Challenge Technic.

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Challenger Group

Global Supply Chain (GSC): The Challenger Group business by-line is ‘Challenge Accepted!’. Please expand on this corporate calling?

Yossi Shoukroun (YS): Indeed our motto is ‘Challenge Accepted!’ We are an air cargo conglomeration that works to make the impossible possible. We never say no, and we don’t give up. That is both our mindset and our approach to business.

Our mission is to be a first-choice carrier, and to empower our customers’ expansion by providing end-to-end logistics solutions.

Yossi Shoukroun, CEO, Challenge Group, responded to an exclusive Global Supply Chain interview.

GSC: What entities and solutions providers constitute the Challenge Group?

YS: Challenge Group currently consists of 3 airlines (CAL, Challenge Airlines BE, and the upcoming Challenge Airlines MT), Challenge Handling in Liege, Challenge Aircargo which is our commercial arm, Challenge Logistics providing pan-European and US roadfeeder services, Challenge Aviation to manage our different assets, and Challenge Technik which is dedicated to maintenance activities.

GSC: What are the unique airfreight solutions offered by the Challenge Group? Are these all limited to airfreight only?

YS: We specialise in the transport of big and complex commodities, offering end-to-end solutions (logistics, handling, airfreight capacity), charter operations, and tailor-made solutions. We are in full control and ownership of the entire process, providing all related services through our subsidiaries.

GSC: Which European countries does the Challenge Group operate in?

YS: Our hub is Liege, where we operate all our flights. However, we offer an extensive road feeder service able to reach any destination with Europe. We handle more than 5000 trucks a month.

GSC: What is the range of services offered by the Challenge Group and specifically what are your strengths / specialties?

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Yossi Shoukroun During most of his career spanning over 30 years, Yossi Shoukroun has been involved in Airports and Air Cargo Industry, as an Executive and line management in General Management, Operations Management, Planning, Project Management, Business Development and Financial Management.

Shoukroun is an experienced Managing Director with a demonstrated history of working in the airlines/aviation industry. Skilled in Negotiations, Budgeting, Business Planning, Operations Management, and Analytical Skills.

Shoukroun is a team member, leading the airline’s growth and success with vast experience in Supply Chain Management and complex logistics systems.

Since 2021, he has been promoted as CEO of Challenge Group and is now based in Malta.

Challenger Group

YS: Our aim is to cover the complete supply chain process by ourselves–that includes transportation, handling, sorting, trucking, airfreight capacity. Our mission is not only to be considered a carrier of choice by our customers, but a reliable business partner that empowers their growth and success by providing end-to-end solutions tailored to their specific needs.

GSC: What industrial sectors / verticals does the Challenge Group cover for its clientele?

YS: 65% of our cargo is special cargo (mainly helicopters, cars, horses, oil & gas equipment, pharma, aircraft engines).

We are looking to expand our product portfolio and are open to providing any value-added services our customers may require to perfect their supply chain.

GSC: What opportunities and challenges do you foresee for the Challenge Group going forward?

YS: We have gone through an intense period of growth over the past two years.

We want to continue to grow, but in a sustainable way, and our people will be the key enablers of this process. We have a detailed strategy in place regarding fleet renewal and new destinations. Stay tuned for more news to come….watch this space!

GSC: Who are among the top 5 clients of the Challenge Group?

YS: Every customer is important to us, and since we handle high percentage of special cargo, our relationship with customers is special as well.

GSC: How did the Challenge Group perform in 2021 and what is the outlook for 2022?

YS: 2021 was a record year for us. We kept our performance up throughout, and the results of the first quarter of this year point to 2022 probably being a similarly successful year.

GSC: How did the pandemic impact your operations and revenues, if at all?

YS: Like any other industry stakeholder, we were unprepared at the beginning, and faced a common uncertainty.

However, we learned to be more efficient, invest more in digital technologies, review our processes, and develop a more consistent business continuity plan.

GSC: What general concerns / challenges confront the generic freight sector in the countries you operate in?

YS: Globally, the past couple of years showed us how fragile the supply chain is, and how things can change quickly, so we need to be flexible and adapt our business model to mega changes.

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

YS: Our strategy is to triple the current fleet and operate12 aircraft within the next 5 years. We plan to add 4 Boeing 76F and 4 77F converted aircraft, and have applied for a new AOC in Malta, where Challenge Group has its headquarter.

Moving to a twin-engine aircraft fleet will give us a more sustainable business model. We are evaluating new destinations for this additional capacity, and I can confirm that the decisions on those choices will be taken together with our customers and business partners.

GSC: Are you planning overseas expansion or JVs / partnerships?

YS: As mentioned before, we want to grow with a specific plan based

on strategic partnerships or projects that enable us to make best use of our industry experience and strengths.

GSC: Is the Challenge Group planning a foray in the UAE / GCC or the Middle East region? Why? YS: Our story began in the Middle East, and we recently began deploying capacity into the U.A.E. to support our customers in dealing with the constraints of the seafreight business on the Far East, EU, and US trade lanes.

GSC: Give us an example of one or two most challenging / daunting tasks performed by the Challenge Group?

YS: We carried out full charter operations of PPE and related commodities – including vaccines, distributing these throughout Europe and the U.S. We handled all of the horses for the last Olympic games. Unique paintings and other artwork for large exhibitions, are also always very special projects.

GSC: What is the short and long-term vision for the Challenge Group? Where do you hope to steer the company?

YS: We are definitely moving to the next level and aim to become a key player in our industry by adopting a new and flexible business model based on tailormade end-to-end solutions covering all the areas of the logistics supply chain.

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Challenger Group

The Group’s cargo airline experience dates back to its CAL Cargo Airlines’ beginnings in 1976, and its handling division (previously known as LACHS) was established in 1997. The other companies were founded over the course of the past six years. Malta-based Challenge Air Cargo is the latest addition and is due to commence operations this year.

Core expertise Challenge Group’s core expertise in airfreight, handling, and logistics, has established it as a leading provider of reliable, integrated, and tailor-made, air-cargo door-to-door solutions. In fact, 65% of its business is non-standard cargo that requires innovative, industry-specific handling solutions: many of these have been for outsize freight shipments.

One reason why, alongside a host of state-of-the-art and highly automated air cargo handling equipment and facilities, the Group is in possession of Europe’s largest 52-tonne high-loader, located in Liege. From temperaturesensitive shipments (IATA CEIV Pharmacertified in the air and on the ground), to dangerous goods, all the way through to live animals (Challenge Handling also manages the ultra-modern Horse

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Inn hotel, one of the finest in Europe, at Liege Airport: more than 250 horses passed through it to on their way to the Tokyo Olympics last year, for example); Challenge Group is trained, certified, and experienced in handling and flying all kinds of commodities.

Challenge Airlines (BE) was established in April 2017 and received its AOC (Air Operator’s Certificate) in April 2019 from the Belgian CAA allowing a start of operation in May 2019. In July 2019, we obtained the USA OPS SPEC from the Federal Aviation Administration (FAA) enabling operations to the United States.

In September 2020, we obtained the China OPS SPEC allowing us to operate to China as well.

Trebling capacity Over the last four years, the company has trebled its capacity and now handles 300,000 tonnes of cargo per year, with an ambition to reach half a million tonnes annually by 2023. Today, it counts 850 employees and a fleet of four B747-400F. These will soon be complemented by four 767-300BDSF and four 777-300ERSF conversions over the next two years, Challenge Group follows a solid, 5-year

expansion strategy in terms of further fleet growth, exploring new business areas, and continuing to develop its rapidly expanding first and last mile services across Europe and the US, to provide quality end-to-end solutions to its customers.

“Air cargo is a people-driven industry, full of down-to-earth, hands-on characters. We identify strongly with this direct, solution-focused approach, and have incorporated company values that precisely reflect this attitude: Passion, Authenticity, Agility. The perfect ingredients for the success of our ‘Challenge Accepted’ promise. We enjoy getting things done!” says Yossi Shoukroun, CEO of Challenge Group.

A modern, unified digital presence is also part of the new branding scheme, aimed at bringing the Group’s different divisions together. Yet, one feature of the Group that is already inherent and identical across all of its companies, and in the words of the CEO, is the attitude of its people: it is their can-do approach, creativity, and total customer focus, that ensure the highest levels of quality, safety, and efficiency in solving all challenges entrusted to Challenge Group. Challenge accepted – Challenge solved!

Savoye

Savoye strengthens footprint in MENAT region following recent partnership with ILA Partnership aims to distribute Savoye’s range of automated packaging solutions in Turkey

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avoye, a leading global warehouse automation integrator and software publisher, has announced its partnership with ILA, a Turkeybased integration services provider, to distribute its range of automated packaging machines in Turkey.

Savoye, which launched its new office in the UAE last year, is poised to enhance its presence in the MENAT (Middle East, North Africa and Turkey) region with the latest association.

The global planning solutions provider has already established a name in the Middle East since opening its office in the UAE, introducing advanced software and technologies that facilitate smooth supply chain operations for the industry.

Partnership Savoye’s latest partnership with ILA will generate high sales for its automated

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packaging solutions, especially given Turkey’s population of over 80 million people and an abundance of e-commerce and retail industries with immense potential.

“Building business relations and partnerships has helped us grow more and strengthened our position as a leader in automation and intralogistics software and hardware solutions in the region. We look forward to our association with ILA, as this will facilitate sales of our automated packaging machines,” stated Alain Kaddoum, Managing Director, Savoye Middle East.

“The MENAT region has been embracing modern technologies rapidly, as we’ve witnessed since the pandemic, and we will continue to introduce our world-class solutions, in order to support and take the industry a step forward, as well as meet the needs of consumers,” he continued.

Integration services provider ILA, a system integration services provider in Turkey, specializes in comprehensive planning system integration services by adding its own domestic machinery and warehouse management software to the products purchased through its partners.

In addition to delivering high-quality products, the firm caters to a wide range of markets like local and national brands, as well as global players. The partnership is set to boost the business growth for both parties and will enable Savoye to set a mark in Turkey.

“I strongly believe the new cooperation with Savoye will create added value to ILA through its automated packaging solutions, which will definitely be an exceptional solution for Turkish companies,” commented Emre Yenal, Managing Director, ILA.

Savoye

Automation “This not only allows us to automate the processes, but also helps us minimize the number of parcels, resulting in fewer transportation costs. Together with Savoye, we are confident to deliver the best value to our strategic partners,” he added.

The agreement between Savoye and ILA entitles the latter to promote, sell, install, and maintain Savoye’s range of automated packaging products. ILA’s integration solutions allow the creation of a robust ecosystem, positioning them to become a complete solutions provider by delivering all-round maintenance and services for Savoye’s offerings.

Turkish automation market “At Savoye, we are very pleased about the partnership with ILA, one of the leading players in the Turkish intralogistics market. The combination of ILA’s experience on the local warehouse automation market, with Savoye’s comprehensive range of packaging machines can be combined to offer innovative solutions. These solutions mainly include Jivaro and the Jivaro Print version, catering to the needs of Turkey’s fast growing business sectors such as e-commerce,” explained Frédéric Zielinski, Managing Director, Savoye EMEA. “We are proud of the work we are doing for the industry and will continue to offer comprehensive solutions that meet the needs of logistics organizations, ranging from the simplest to the most complex operations,” he further elaborated.

Savoye is an expert in the design and integration of automated and robotic intralogistics systems, as well as a publisher of supply chain execution (SCE) software solutions. Its products and services are deployed in over 40 countries, combining hardware and software, custom-built to accommodate customer needs. The company specializes in manual, semi-mechanised, highly automated, and robotised solutions and software for the supply chain and planning industry.

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Nuclear Energy / Sustainable Energy

Barakah Nuclear Energy Plant doubles clean electricity generation Unit 2 adds a further 1,400 MW zero-carbon emissions electricity capacity to the UAE’s transmission grid

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he Emirates Nuclear Energy Corporation (ENEC) recently announced the start of commercial operations of Unit 2 at the Barakah Nuclear Energy Plant.

Unit 2 adds 1,400 megawatts of zerocarbon emission electricity to the national grid, bringing the total produced by Units 1 and 2 to 2,800 megawatts and further securing energy supply and advancing the UAE’s sustainability goals.

This new milestone takes ENEC and its subsidiaries to the halfway mark of delivering on its commitment to supply up to a quarter of the country’s electricity needs, reliably powering the economy by generating clean electricity 24/7 and significantly contributing to the UAE’s Net Zero by 2050 initiative.

The start of commercial operations at Unit 2 doubles the Barakah Plant’s generation of emissions-free electricity, enabling rapid decarbonization of the UAE’s power sector in pursuit of Net Zero 2050.

Diversifying energy resources While increasingly supporting the country’s strategy to diversify energy sources in a shift towards cleaner energy, ENEC is also spearheading the UAE

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Net Zero by 2050 Strategic Initiative by preventing millions of tons of carbon emissions and helping to tackle climate change, delivering climate solutions today.

When its four units are commercially operating, the Barakah Plant will produce up to 25% of the UAE’s electricity needs and will prevent about 22.4mn tons of carbon emissions annually, equivalent to the emissions of 4.8mn cars.

The Barakah Plant significantly boosts the UAE’s energy security through domestic clean electricity generation.

By 2025, the Plant will be responsible for generating more than 85% of Abu Dhabi Emirate’s clean electricity making it the biggest contributor to reducing Abu Dhabi’s carbon emissions by 50% by the middle of the decade.

“The sale of electricity further supports Abu Dhabi’s Clean Energy Certification program, allowing more businesses to demonstrate the sustainability credentials and stimulating the growth of our Net Zero economy,”remarked Nasser Al Nasseri, CEO, Barakah One Company, ENEC’s subsidiary in charge of representing the financial and commercial interests of the Barakah Plant project.

The commercial operations of Unit 2 were completed with the continuous support of EWEC and the Abu Dhabi

Transmission and Dispatch Company (TRANSCO) who ensure that the clean electricity generated at Barakah is delivered to consumers across the UAE in a safe and sustainable manner.

World-class experience “The start of Unit 2 commercial operations comes as a result of the world-class operating experience of our teams made up of UAE Nationals and international experts,” commented Engineer Ali Al Hammadi, CEO, Nawah Energy Company, ENEC’s subsidiary mandated to operate and maintain the Barakah Plant.

Unit 2 joins Unit 1, which achieved commercial operation in April 2021.

Units 3 and 4 are in the final stages of commissioning, with Unit 3 construction already complete and now undergoing operational readiness preparations, and Unit 4 in the final stages of construction completion.

The development of the Barakah Plant as a whole is now more than 96% complete, having steadily progressed since construction started in 2012.

The Barakah Nuclear Energy Plant, located in the Al Dhafra region of the Emirate of Abu Dhabi, is one of the largest nuclear energy plants in the world, with four APR-1400 units.

Perfecting waste Perfecting waste collection collection

RENAULT TRUCKS C: PERFECT SOLUTION FOR WASTE MANAGEMENT APPLICATION Renault Trucks C380 P6X4 E5 fitted with 25cbm garbage compactor in partnership with RENAULT has TRUCKS C: PERFECT FOR WASTE Gorica-Farid been designed to offer theSOLUTION complete application with all the necessary features to end user both from technical and commercial standpoint.

MANAGEMENT APPLICATION This truck is also equipped with superior safery garbage features compactor such as advanced emergency Renault Trucks C380 P6X4 E5 fitted with 25cbm in partnership with brake system, lane departure warning system, and tire pressure monitoring Gorica-Farid has been designed to offer the complete application with all thesystem. necessary features to end user both from technical and commercial standpoint.

This truck is also equipped with superior safery features such as advanced emergency middle-east.renault-trucks.com brake system, lane departure warning system, and tire pressure monitoring system.

Country Overview: Sultanate of Oman

Digital and investment initiatives to boost logistics sector in the Sultanate of Oman The Sultanate’s Oman Logistics Strategy lays out long-term objectives for increasing the contribution of the logistics sector to GDP.

O

man’s strategic objectives over the past several years have focused on easing congestion and enhancing capacity by investing in infrastructure and technology for new ports and road links, as well as expanded routes for national airline carriers.

Oman aspires to leverage its deepwater ports on the Gulf of Oman and

The strategic port town of Duqm

32 APRIL 2022

the Indian Ocean to become one of the world’s top ten logistics hubs by 2040.

Omani ports are connected with 86 ports in 40 countries. The strategic port town of Duqm, located halfway between Muscat and Salalah on the Indian Ocean, is Oman’s flagship development project. Duqm will eventually include a new port; naval base; dry dock; fisheries

hub; industrial free zone; hotels; power and desalination plants; a refinery; a 250-kilometer pipeline network from interior oil fields; liquid jetty; and an oil tank storage terminal.

The government also aspires to build a rail line to facilitate the transfer of mineral resources from the Shweimiyah area in Oman’s Dhofar governorate to the port.

Country Overview: Sultanate of Oman

Focus on regional development Road construction is another major focus of domestic and regional development.

The government opened more than 100 miles of roadways along the Sharqiya Expressway in 2020 connecting the city of Bidbid, near Muscat, with the governorates along Oman’s coastline.

The government plans to open a new road through the Empty Quarter connecting Riyadh with Muscat and other major Omani cities, including Duqm and other Omani ports. Oman has an ongoing drive to improve its public transport infrastructure through the expansion of its bus system and private taxi services.

Khazaen Economic City, a 20-square mile logistics-led development outside Muscat, will feature an automobile market, according to current planning.

The government is also considering privatizing the national bus and ferry networks.

In April 2021, the Sultanate’s flag carrier, Oman Air, entered into a codeshare agreement with Qatar Airways which includes Qatar Airways’ direct flights to the United States as part of a general strategy to expand routes and designations. Oman’s first budget airline, Salam Air, launched operations in 2016 and has expanded its regional routes. With reduced business due to the Covid-19 pandemic, these carriers are likely to focus on cost optimization initiatives in the short term.

Revamped Airport The new Muscat International Airport opened in March 2018. Duqm Airport’s passenger terminal opened in September 2018 and the airport hopes to add regional and international routes in the future.

Government restructuring saw the transfer of transport and road responsibilities to the new Ministry of Transport, Communications and Information Technology in 2020. It also moved government agency Asyad, which focuses on port, free zone, shipping, drydock, and e-commerce services under the

Oman Investment Authority.

In light of tightened budgets, the government anticipates a larger role for the private sector in the future, not only in providing capital, but also in tie-ups with the public sector to help manage state assets.

Leading Sub-Sectors Oman imports vehicles for domestic sales and for re-exports to regional markets.

In addition to a continuing market for passenger vehicles, Oman is importing construction, airport, and port equipment including buses, aircraft, X-ray security screening equipment, cranes, rubber tire gantries, port access control and security solutions, logistics software, and engineering, project management, and consultancy services.

Opportunities Oman’s strategic location on the Strait of Hormuz, as well as its deep-water ports on the Gulf of Oman and Indian Ocean outside of the Strait, are main selling points as its logistics infrastructure grows and connectivity improves. The

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Country Overview: Sultanate of Oman

The new Muscat International Airport opened in March 2018 short-term challenge will be financing amid budget constraints and oil price uncertainty. Many large infrastructure projects are currently on hold or delayed.

The Special Economic Zone Authority for Duqm and the Port of Duqm are actively seeking foreign investment to help finance development. In addition to the massive array of construction projects, Duqm requires infrastructure development in sewage treatment, drainage, water desalination, power plants, buildings, telecommunication services, and landscaping.

In June 2021, the Port of Duqm floated a public tender to select a terminal operator for its new container terminal.

In July 2021, Asyad built its first new ship at Duqm’s dry dock, which also provides ship repair and maintenance services.

Saudi Arabia is considering establishing an industrial zone in Duqm.

The Duqm refinery project offers transportation and logistics opportunities. Oman’s two established ports in Sohar and Salalah also present

34 APRIL 2022

significant opportunities. Sohar’s free zone has been at the forefront of Oman’s downstream manufacturing growth.

Salalah is in a prime location at the crossroads of East-West shipping, with weekly connections to and from the U.S. East Coast. Its port has a container terminal with seven berths of up to 18 meters’ draft and a general cargo terminal of 12 berths of up to 16 meters’ draft, with infrastructure to handle the world’s largest container vessels, as well as bulk cargo, bunkering and warehousing.

Oman is increasingly looking to the private sector for investment and expertise, particularly to develop its projects pipeline through joint ventures or PPPs. The government will also rely on PPPs to run the four terminals for containers, general cargo, bulk goods, and liquids at Port of Duqm; and in the developments of ports at Khasab and Shinas in the north. The government seeks to transform Port Sultan Qaboos into a mixed-use waterfront cruise and leisure destination under a PPP model.

Oman supply chain network The Oman supply chain network is expected to benefit from the economic diversification initiatives that focus on non-oil sector development, including transportation infrastructure across the main industrial and port locations.

Initiatives related to Sultanate Oman Logistics Strategy (SOLS) focus on improving national, regional, and global connectivity and to be amongst the top 10 global logistic players by 2040.

Infrastructure and technology improvement is one of the key pillars identified in the 10th five-year development plan(2021-2025) which is aligned with SOLS (2040). State-owned Asyad Group is playing an important role in the expansion and moderinzation of port infrastructure assets and facilitate development of free zones.

It also aims to enhance the logistics and technology infrastructure capabilities to enable Oman to become a logistics hub.

Country Overview: Sultanate of Oman

T J Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan Some of the major infrastructure related investments includes the following projects: Establishing and expanding rail and road networks to facilitate inter-regional connectivity such as Land Connectivity with the Kingdom of Saudi Arabia which was one of the priority areas for transportation infrastructure development. Oman rail focuses on the development of domestic rail infrastructure. To improve export performance of minerals from Al Wusta and Dhofar governorates, the mineral rail project connecting processing plants and key ports such as Port Duqm is being explored under a Public-Private partnership mode.

Duqm Special Economic Zone will be one of the key infrastructure projects being undertaken, which includes a multi-purpose port, facilities for repairing ships, airport, and tourist, industrial, and logistical areas. Private investments in the Special Economic Zone of Duqm in Oman has increased to USD 9.35 billion with more than 400 projects in various stages of development and operations. Investments in Oman’s Duqm SEZ

is expected to cross US$ 10 billion by 2022 Salalah port capacity expansion, strengthening of feeder connectivity among the ports in the Gulf region, upgradation of port infrastructure with port community system are some of the key initiatives undertaken in recent years.

The development of South Al Batinah land port is expected to improve and strengthen connectivity, while a dry port at Khazaen economic city is expected to streamline cargo movement between all major ports in the country.

Digitalization Initiatives National digitalization transformation initiatives include National IT Infrastructure, The National Program for Digital Economy, and The National Program for AI and Advanced Technologies. The National Program for Digital Economy aims to accelerate the adoption of digital technologies in smart governance, digital society, and business digitalization to transform Oman into a knowledge economy.

Specifically, this program’s focus areas are expected be as follows: strengthen IT infrastructure relating to data centers and cloud services, develop cyber securityrelated infrastructure, and facilitate the adoption of digital technologies among the key economic sectors such as manufacturing, logistics, finance, and healthcare sectors.

Oman Technology Fund is another technology-related initiative that aims to make the country a preferred destination for technology investment for SMEs and

start-ups to explore digital applications opportunities across economic sectors.

Some of the other key developments in digitalization include the following: Tawseel, a national cloud-based technology initiative, was launched by Oman Logistics Centre (ASYAD) to enable logistics providers to adopt the latest logistics solutions.

Oman Blockchain Club was established to explore potential applications in international trade processes based on blockchain technology and facilitate rapid adoption of this technology in other economic and trade sectors.

Bayan System-a one-stop-shop for customs clearance and inspections–was released by The Directorate General of Customs, which made the customs clearance processes completely paperless.

Tech Try was launched by Asyad Group for testing applications of drone technology in logistics. Some pilot tests include using drones in port operations, last-mile delivery operations and stock analysis in modern warehouses.

The National Program for Artificial Intelligence (AI) and Advanced Technologies explores applications of AI in business processes to improve operational efficiency and reduce costs across multiple industries, including supply chain and logistics.

About the Author: T J Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan Over 15 years of experience in the areas of economic, industrial and supply chain and logistics research and consulting space.

He has hands-on experience in developing insights and actionable strategies for various strategic and operational challenges relating to supply chain and logistics.

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NAFL @ LOGIX

“CEPA paves way for new era of growth for between UAE and India” H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation.

NAFL President Nadia Abdul Aziz suggests a strategic logistics corridor between India and UAE; Indian logistics market estimated to grow to US$ 380bn in 2025

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n 18 February 2022, India and the United Arab Emirates, inked a Comprehensive Economic Partnership Agreement (CEPA) that is being characterized as a major trading landmark. The event was innaugurated by H.E. Dr. Thani Al Zayoudi, UAE Minister of State for Foreign Trade.

The milestone pact is aimed at providing a major boost to the trade of goods and services between the nations.

The mega deal was signed during a virtual summit meeting between Narendra Modi, Prime Minister of India and HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy

36 APRIL 2022

Supreme Commander of the UAE Armed Forces. H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation spoke on the role of customs and smart services and cooperation between Dubai Customs and India customs in relation to trade facilitation and AEO certification services recognition between both nations.

Ushering in prosperity CEPA paves the way for a new era of joint economic growth and prosperity in the two countries, improves mutual

access to markets, enhances economic and investment opportunities and paves the way for broader prospects, H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation.

Speaking at the recently concluded 3rd Edition of LOGIX India, in Dubai, supported by the UAE’s National Association of Freight and Logistics (NAFL), Musabih noted that the agreement aims to raise the value of non-oil trade from US$ 40bn annually to US$ 100bn within five years, which creates tremendous opportunities for the business community and companies in both countries.

NAFL @ LOGIX

The Central Government will develop four Logistics Parks and up to 100 Cargo Terminals in providing a fillip to the logistics sector.

Economic zones like textile clusters, pharmaceutical clusters, electronic parks and more will be covered.

Global Supply Chain interviewed Dr Ajay Sahai, Director General & CEO of the New Delhi-headquartered Federation of Indian Export Organisations (FIEO), on the sidelines of the recently concluded 3rd Edition Logix held in Dubai association with NAFL. Global Supply Chain (GSC): What is your take and overview of this 3rd Edition Logix held in Dubai, UAE? Dr. Ajay Sahai (AS): FIEO was greatly enthused and motivated to host the 3rd Edition Logix in Dubai, UAE. Firstly, in light of the US$ 100bn mega trade deal CEPA signed by India and the UAE, the agreement is a big boost to two-way trade between the two countries and opens new opportunities and vistas for the logistics industry for both nations.

We recognize the UAE to be the logistics hub of the Middle East and we hope to capitalize on these opportunities present. To this end we in India want to partner and associate with companies in the UAE to develop integrated logistics solutions with new efficiencies and extensive digital usage for mutual good.

We in India are excited about these prospects and the implications it has for companies, logistics services providers (LSPs) and for all stakeholders on both sides.

We chose to host the 3rd edition Logix in Dubai in recognition of its preeminence and well-regarded position in the logistics industrial vertical.

GSC: In real terms what concrete benefits are in store for Indian logistics companies?

AS: Indian logistics companies are poised for growth as more investment becomes available both from the Government and private sectors. The Indian Government is committed to supersize and expand infrastructure across the country.

Approved in October 2021, the Prime Minister Gati Shakti Initiative for logistics empowerment aims to provide multimodal connectivity to various economic zones to integrate the infrastructure linkages holistically for seamless movement of people, goods and services to improve logistics efficiency.

On the cards is also the decision by the Central Government to develop four Logistics Parks and up to 100 Cargo Terminals in providing a fillip to the logistics sector.

Economic zones like textile clusters, pharmaceutical clusters, electronic parks and more will be covered to make Indian businesses more competitive globally by cutting down the logistics

costs and ensuring proper linkages for local industry and consumers.

Furthermore, in addition to the Central Government, individual State Governments are also in the race to capitalize and take advantage of emerging prospects. Some State Governments are also offering incentives and sops to attract investments and provide new employment vistas.

GSC: What is your assessment of the 3rd Logix event in Dubai?

AS: Firstly, we were fortunate to partner with NAFL. The officials here were instrumental and involved in organizing the event and we value their input and expertise.

We are here for the long haul and hope to forge new partnerships and alliances going forward. We are excited about the new opportunities that will blossom in the spirit of CEPA and the expansion of trade volumes between the brotherly countries. We are optimistic about the new developments going forward.

At LOGIX India 2022 participating companies displayed solutions for improving cost effectiveness and operational efficiencies for logistics, investment opportunities in infrastructure & Warehousing and technology integration and IT enablement.

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NAFL @ LOGIX

The agreement aims to raise the value of non-oil trade from US$ 40bn annually to US$ 100bn within five years.

H.E. Dr. Thani Al Zayoudi, UAE Minister of State for Foreign Trade

Unleashing opportunities Key logistics players in India and UAE utilised the three-day event, held at Hotel Le Meridien Dubai, to work out ways and means to improve the prospects of the freight and logistics market.

“From strategic cooperation, it has also established tremendous opportunities in vital sectors such as trade, investment, hospitality, aviation and renewable energy and petrochemicals, noting that the UAE, thanks to its advanced and pioneering services, establishing its position as a major logistics gateway for the flow of international trade and investment around the world,” continued.

Logistics Corridor Nadia Abdul Aziz, President, UAE’s National Association of Freight and Logistics (NAFL) suggested a strategic logistics corridor apart from a trade corridor for which more investments should be made into sea freight between the two countries, so that logistics cost will be reduced.

Nadia said more synergy should be

38 APRIL 2022

H.E. Ahmad Mahboob, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation.

created between the Indian and the UAE freight forwarders, who will be the main strategic people who facilitate more trade between the two countries.

“If a logistics corridor is created, the cost can be reduced, so also the food inflation if smart logistics is applied,” she affirmed.

Trade diversification Omar Alkhan Abdulla, Director of International Offices, Dubai Chamber, asserted that the target of US$ 100bn can be achieved much before the fiveyear target if the trade is diversified and India rediscovers itself.

“Dubai Chambers has plans to open two or three more offices in India, apart from its one in Mumbai. With all these steps, we hope the target can be achieved much before five years.

The LOGIX conference has helped in moving people closer,” he observed.

“Dubai Chamber, in collaboration with the Confederation of Indian Industry (CII), plans to increase the roadshows to help India rediscover it in different regions. We are also trying to attract more Indian companies and Indian multinationals and increase

the trade and trade diversification,” he further added.

Advantage CEPA “The event is an ideal opportunity for the cargo and logistics organisations to meet and set targets as spelt out in the CEPA. The Indian logistics market is estimated to grow to US$ 380bn in 2025 and the freight and logistics market in UAE will generate over US$ 31.41bn in 2026,” stated Humaid Bin Salem, Chairman, International Chamber of Commerce (ICC), UAE. Dr Ajay Sahai, Director General & CEO of Federation of Indian Export Organisations (FIEO) suggested the setting up of a permanent India Mart in the UAE, on the same lines of the longestablished China Mart in Dubai.

“We want Indian products to be showcased in Dubai, so that we look beyond the UAE for marketing them in the entire GCC and Africa, as there are lots of buyers from Africa. They come to Dubai for placing orders, but not travelling to India. If Indian products are displayed here, they can place orders and we can back the mart with warehousing and distribution centre,” he stressed.

NAFL @ LOGIX

UAE-India mega deal CEPA to be operational in one month NAFL, FFFAI sign MoU for training, women, and youth empowerment The pivotal Comprehensive Economic Partnership Agreement (CEPA) signed by the UAE and India will be operational within one month, by latest end April 2022, reliable sources have pointed out.

The mega agreement will simplify customs procedures, reduce logistics cost and open new opportunities for professional services, officials said at the closing of the 3rd Edition of LOGIX India, in Dubai, supported by the UAE’s National Association of Freight and Logistics (NAFL).

The three-day logistics conference concluded with a valedictory session at the India Pavilion at Expo 2020 Dubai addressed by top officials from both the countries.

LOGIX LOGIX was organized by the Federation of Indian Export Organisations (FIEO) and supported by Federation of Freight Forwarders Association in India (FFFAI) and NAFL (UAE).

Nadia Abdul Aziz, President of the UAE’s National Association of Freight and Logistics (NAFL) said CEPA will boost UAE’s logistics sector which contributes more than 14% to Dubai’s GDP. “With CEPA in place, Indian products can penetrate the UAE market through which they can enter the GCC, Arab League markets, Commonwealth of Independent States (CIS), Africa and beyond,” she added Meanwhile, a Memorandum of

Understanding (MoU) was signed between NAFL and FFFAI. The MoU covers mutual cooperation of the two federations of freight forwarders, exchange of knowledge, technology/innovation, women empowerment and youth programs, and exchange capacity building programs.”

“The MoU provides for trade support, empowerment of women and youth, skill development and training and exchange of logistics students,” said Nadia.

More synergy should New era of growth be created between Earlier, H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, the Indian and the UAE Ports, Customs and Free Zone Corporation, freight forwarders, who said that the CEPA will pave the way for will be the main strategic a new era of joint economic growth and prosperity in the two countries, improves people who facilitate access to markets, enhances more trade between the mutual economic and investment opportunities two countries. and paves the way for broader prospects.

APRIL 2022 39

NAFL @ LOGIX

The Indian logistics market is estimated to grow to US$ 380bn in 2025 and the freight and logistics market in UAE will generate over US$ 31.41bn in 2026.”

According to industry professions, the Agreement, endorsed by HH Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Dubai and Deputy Supreme Commander of the UAE Armed Forces and Indian Prime Minister Narendra D. Modi in a recent virtual meet, will simplify customs procedures, reduce logistics cost, open new opportunities and create jobs It must be noted that India has now crossed the US$ 400bn benchmark in annual exports.

Key Logistics players in India and UAE utilized the recently concluded the threeday meeting, to work out ways and means to improve the prospects of the freight and logistics market and deliberate on a wide number of issues.

Logistics: The next opportunity for India In a globally competitive scenario, operational and logistics efficiency determines the location and movement of goods. Freight and logistics networks are realigning according to the location of production and consumption activities, creating the hub-and-spoke models that are needed to improve freight and logistics performance.

Logistics is regarded as the backbone of the economy, providing efficient and cost-effective flow of goods on which other commercial sectors depend upon.

India has made substantial progress in trade-related logistics reflected in leading global indices. India scored 90.3 per cent in 2021 in the United Nations Economic and Social Commission for Asia Pacific’s (UNESCAP) latest Global Survey on Digital and Sustainable Trade Facilitation, a remarkable jump from its score of 78.5 per cent in 2019, on account of improvement in scores of five key indicators.

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H.E. Humaid Bin Salem, Chairman, International Chamber of Commerce (ICC), UAE.

CEPA Free Trade Agreement

FIEO—Profile

India and UAE signed the historic Comprehensive Economic Partnership Agreement (CEPA) on 18 February 2022 aimed at boosting the merchandise trade between the two countries to US$ 100bn over next five years.

The deal was signed during the virtual summit meeting between the leaders of the two countries—the Hon’ble Prime Minister of India, Shri Narendra Modi and HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

India, celebrating its 75 years of independence and UAE, celebrating 50 years of its foundation are at an appropriate time to reset the relationship between two nations and take it to greater heights than ever before.

Logistics sector will be the enabler for this mega agreement. Join us at the 3rd edition of LOGIX India 2022 and meet the key logistics players in India and UAE.

The Federation of Indian Export Organisations popularly known as ‘FIEO’, is the apex body of the Government recognised Export Promotion Councils, Commodity Boards and Development Authorities in India.

Set up in 1965 by Ministry of Commerce, Government of India to focus the efforts of all stakeholders engaged in promotion of trade from the country, FIEO is partner of Government of India to boost International Trade from India.

FIEO provides the crucial interface between International Trading community of India with the Central and State Governments, Financial Institutions, Ports, Railways, Surface Transport and all engaged in Export Trade Facilitation.

The Federation directly and indirectly serves the interests of over 200,000 exporters from every Industry and Services sector in the country.

SSI Schaefer-Nahdi Alliance

SSI Schaefer and Saudi Arabia’s Nahdi Medical Company launch partnership The Middle East’s first Automated Pharmaceutical Distribution Centre established in the Kingdom

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SI Schaefer, the world’s leading provider of modular warehousing and planning solutions, in cooperation with Nahdi Medical Company, Saudi Arabia’s largest pharmaceutical retail chain, announced the implementation of the country’s first world-class pharmaceutical system in March 2022.

In the heart of Jeddah’s industrial zone, the new facility significantly increases the country’s logistics capacity and preparedness for safe and reliable pharmaceutical distribution.

Nahdi Distribution Centre (IMDAD) in the Red Sea coastal city of Jeddah, is the Kingdom’s first-ever automated

42 APRIL 2022

pharmaceutical facility and falls in line with Saudi Arabia’s Vision 2030 initiative, which aims to turn the Kingdom into a global logistics hub and create a longterm investment environment in the industrial and logistics sector.

SFDA Regulations Covering an area of 250,000sqm, the facility features temperature-controlled logistics, flexible distribution center and automated order fulfillment using cuttingedge technology and systems to support Nahdi to guarantee medical security in accordance with the latest international standards and SFDA (Saudi Food & Drug

Authority) best practices regulations.

Powered by SSI Schaefer technology, the facility was developed in cooperation with the Saudi Authority for Industrial Cities and Technology Zones (MODON) as the first smart distribution center in the retail sector for Middle East and North Africa (MENA).

IMDAD is designed to handle an annual 200 million units of medical products alone. This is an unprecedented feat and is made possible by SSI Schaefer’s state-of-the-art SSI Cuby shuttle technology in combination with conventional Pick-by-Light picking consolidated by an intelligent system infrastructure.

WAMAS software With automation, IMDAD can move up to 600 shipping totes containing more than 10,000 order lines per hour of operation. The SSI Schaefer scope of supply comprises an impressive range of subsystems from receiving and product decanting, SSI Cuby supported Goods-to-Person and Pick-by-Light Picking, conveyor technology, automatic tote closing, labelling, and strapping to sortation and presentation for shipping.

The whole solution is controlled and managed by SSI Schaefer’s logistics software WAMAS. In addition to the storage capacity of the SSI Cuby Goods-to-Person and Pickby-Light areas of 37,260 and 25,600 tote locations to support the picking of slow and fast moving products respectively, the SSI Schaefer scope also included extensive pallet storage to support the storage and picking of medical appliances, returns handling and other related processes.

These areas also involve extensive pallet storage and picking for big & bulky items and medical appliances zones, return handling and other processes.

These storage areas incorporate a special channel system using an automatic SSI Orbiter system with specific picking tunnels to enhance the performance, selective racking system, pallet flow racking system, shelving, multi-tier shelving system with high standard steel structure and carton live storage system.

APRIL 2022 43

and cover typical market requirements. The range of services offered thanks to the collaboration between DS AUTOMOTION and SSI SCHAEFER will increase on account of another partnership with the specialist Rocla.

SSI Schaefer-Nahdi Alliance

• Lift Truck • Platform AGV • AGVs for heavy loads • AGVs for the automation of assembly lines

Classification by function Low Lifter

Very-Narrow-Aisle (VNA)

Picking

High Lifter

Platform

Multiple Pallet

Reach Truck

Conveyor Deck

Heavy Duty

Counterbalance

Lift & Carry

Assembly Line

Dynamic AGV Fleet for Longchamp How to guarantee a fully automated material flow from the finished goods warehouse to picking without needing to install a static conveying system? SSI SCHAEFER developed an ideal solution for Longchamp, a manufacturer of leather products. Automated guided vehicles automatically take the pallets from the receiving warehouse and bring them to the specified warehouse locations in the picking area. In the process, they seamlessly integrate into a system consisting of racking systems, bin conveying systems, belt lifts, and pallet conveying systems. The SSI SCHAEFER WAMAS® logistics software ensures their smooth interaction.

High efficiency standards “Through the understanding of operations and processes, complete data, performance analysis and design consultancy, the technology and innovation provided by SSI Schaefer allows Nahdi to assure high efficiency standards, accurate reporting, and quality customer service,” affirmed Ayman Al Ammar, GM, SSI Schaefer Saudi Arabia.

“In a climate which has a lot of uncertainty, modern automated material handling solutions are becoming the trend and way to move forward for many businesses. In the pharmaceutical and healthcare industry, we see the benefits being amplified throughout the supply chain,” he added.

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Apart from the hardware, the SSI Schaefer supplied WAMAS Warehouse Management System provides realtime tracking of the goods. Aside from fulfilling Nahdi’s vision to provide world-class services, it moreover allows them to efficiently track, trace and move their goods batch controlled and FEFO (First Expiry, First Out), to assure integrity, productivity, and performance effectiveness and to have accurate records that ensure all goods are accounted for and deter pilferage.

Saudi Vision 2030 “The vision of IMDAD stems from Nahdi’s unyielding commitment towards achieving Vision 2030 and the National Industrial Development Programme’s

targets of creating and improving the performance of logistics hubs across the Kingdom,” asserted Eng. Yasser Joharji, CEO, Nahdi Medical Company.

SSI Schaefer has played an integral role in bringing this vision to life through equipping IMDAD with the latest technologies that would not only support us in providing world-class services but would also assure higher efficiency standards, accurate reporting, and quality customer service.

“With SSI Schaefer’s vast experience in the region, on-the-ground engineering and after sales capabilities to provide complete solutions, adding value to its customer’s specific needs and benefits, Nahdi Medical Company can make this grand vision a reality,” stressed Eng. Raed Monagel, Chief Supply Chain Officer (GSCO), Nahdi Medical Company.

IMDAD IMDAD will be the largest logistics Distribution Centre in the Middle East in the pharmaceutical industry designed to guarantee medical security in accordance with the latest international systems and to reflect Nahdi’s role as an effective partner in supporting Vision 2030.

Neunkirchen, Germany headquartered SSI Schaefer Group is the world’s leading provider of modular warehousing and logistics solutions. Across six continents, SSI Schaefer develops and implements innovative industry-specific answers to its customers’ unique challenges. As a result, it plays a key role in shaping the future of material handling, a corporate press communique concluded.

15

GWC Qatar

GWC excels in Equestrian Logistics Leading Qatar’s LSP has become the provider of choice for equestrian logistics, offering comprehensive solutions for the transport of horses of all breeds along with their equipment by land or air freight.

Q

atar has always been a major investor in horses globally and with the launch of Al Shaqab it has taken equine welfare, breeding and R&D to another level.

Transporting horses has developed into a specialised logistics profession and GWC is spearheading this category with the provision of dedicated equine logistics services.

The logistics industry plays a central role in supporting these international events, and GWC has become the provider of choice for equestrian logistics, offering comprehensive solutions for the transport of horses of all breeds along with their equipment by land or air freight, quarantine services and health monitoring, supervision of customs clearance and offloading onto the airport tarmac, flight charters, in addition to consultancy services for horse transportation projects.

46 APRIL 2022

The Journey GWC’s Equestrian logistics unit provides the solution for every leg of the journey, including land transport, Quarantine and supervision, Mediation with all relevant authorities, Customs clearance and tarmac supervision, Arranging professional grooms and veterinarians and international airfreight and aircraft charter solutions.

GWC’s Equestrian story began in 2014, and since then GWC has been instrumental in supporting several international equestrian events held in Qatar, where the company provided coordination with owners and transporters in Europe, charter flights, tarmac supervision during loading and unloading of horses, construction of stalls at events, arranging of professional grooms and veterinarians, and document collection and confirmation for entry and exit of horses.

GWC Qatar

The Process There is no doubt that transporting these majestic animals requires due diligence and a very meticulous process. To begin with, clearance must be provided from this departure point and the final destination, which requires the support of health officials in various countries.

GWC’s close relationship with various health authorities in Qatar has helped keep this process smooth throughout the years, starting with this very first project. GWC has also built a strong relationship with the grooms and veterinarians who travel with these horses to keep them calm and healthy, the press note added.

Upon arrival, the horses require support from the tarmac of the air strip, ensuring they de- plane and step onto the specialized land vehicles without incident, all this while GWC continues to liaise with the relevant health authorities on the ground.

In addition to the transport of the

horses, GWC also has the expertise to transport and install temporary stables in which the horses lodge. This requires the cooperation of the company’s freight and relocations teams as they ensure the proper handling of the various equestrian paraphernalia on both legs of the trip.

Logistics support In the year 2015, GWC successfully provided logistics support of 128 horses for the Chi Al Shaqab international event, with the horses divided among those performing at the vaulting, dressage, show jumping, and paradressage events.

GWC has full ground teams in both origin and Doha, handling the export and import into and out of Qatar, providing a veterinarian or a veterinarian’s assistant and a professional air groom per flight to accompany horses on board, and tarmac supervision on departure and arrival.

The Company also works closely with the Qatar Ministry of Environment’s Veterinary Affairs Department to ensure

all processes comply with the highest standards of biosecurity at all times.

GWC excels at every vertical it serves by putting in the time and effort needed to ensure that the services are delivered according to best-in-class industry standards and practices, the press statement continued.

The Progress With the successful delivery of the first event, GWC has built upon every success in the industry, delivering their solutions to 22 major events in Qatar, and moving over 2,000 horses for these events to date.

The company has also diversified, offering these solutions to private breeders and owners as they relocate to Qatar or participate in the international pedigree market. This is a particularly relevant requirement in the Middle East, where the Arabian horse is utilised to breed with other pedigrees to improve their worth by reinforcing their patience, speed, and profile.

APRIL 2022 47

Maersk in Dubai

Maersk Kanoo UAE inaugurates its first Integrated Logistics Centre at DP World, Jafza The newly opened 10,000sqm Warehousing & Distribution (W&D) facility at Jebel Ali Free Zone (Jafza) in Dubai will cater to commodities across petrochemical, retail & lifestyle, fast moving consumer goods (FMCG), technology and automotive sectors, amongst others.

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aersk Kanoo UAE, an integrator of container logistics, recently inaugurated its first Integrated Logistics Centre in Dubai, UAE, at DP World’s leading trade and logistics hub, Jafza.

The Maersk Integrated Logistics Centre was inaugurated by Richard Morgan, Regional Managing Director, Maersk West & Central Asia and Christopher Cook, Managing Director, Maersk UAE, in the presence of Maersk’s top W&D customers in the UAE.

Important milestone “It is an important milestone for the Maersk Group today as it opened its first Integrated Logistics Centre in the UAE in a move that would strengthen its commitment towards its customers in the Middle East,” noted Morgan.

“The Group’s journey towards creating end-to-end logistics solutions is taking a definite shape as it continues to connect and simplify its customers’ supply chains through solutions that are designed and executed considering their specific requirements and challenges,” he added.

Ocean shipping and inbound logistics

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and distribution have traditionally been shared amongst multiple stakeholders in the region, resulting in complex logistical requirements, a press communique indicated.

“With the brand-new Integrated Logistics Centre in Dubai, Maersk is taking an important step towards building a truly integrated solution for its customers wherein the customers will get single window access to multiple logistics requirements, not only for the goods flowing in and out of UAE but even other Middle Eastern counties who use Dubai as a gateway to global trade.

Decarbonising logistics and services Maersk has a strong commitment to decarbonise logistics and services.

The facility will get solar panels on its rooftop to cater to all the entire electricity requirements for facility operations.

The 434 MWh/year clean energy production of this installation will reduce more than 1,700 tonnes of carbon emissions over 10 years; an equivalent decarbonisation feat achieved by planting over 70,000 trees seedlings over 10 years.

“AP Moller–Maersk goal is to achieve minimum 90% green operations at our warehouses, depots and cold stores worldwide by 2030. The green energy that it is producing through the solar panels at its facility that powers its operations with, is testimony to the clear definite steps towards decarbonizing planning and services,” observed Cook.

Tech-enabled solution for all “The Maersk Integrated Logistics Centre in Dubai will be an addition to the existing global footprint of over 250 warehouses, 85 of which were opened in 2021 alone, covering 1.5mn sqm across 50 countries.

The facility will cater to various types of goods across sectors such as petrochemical, retail & lifestyle, fast moving consumer goods (FMCG), technology and automotive, amongst others.

The facility is strategically located with a close link to seaport operations and the Al Maktoum Airport. This will allow the facility to serve consumers requiring air cross-docking and those moving lessthan-container-load (LCL) cargo.

Maersk in Dubai

The facility will be powered by a state-of-the-art warehouse management system that implements modern technologies and digital solutions for efficient inventory management, track & trace at unit-level and offers rich dashboards for higher visibility and deeper insights.

Advanced solutions For example, with advanced solutions for expiry date management, wastages in FMCG can be brought down to zero, thus building a cost competitive edge for Maersk’s customers.

Maersk’s Integrated Logistics Centre will support existing services provided, including ocean shipping, landside transportation, customs clearance, contract logistics, and e-commerce solutions.

Customers taking advantage of integrated solutions from Maersk will benefit from reduced handovers of their cargo through its journey, leading to potentially faster turnaround times, higher visibility, better control and more predictability of their supply chains, the press statement concluded.

Maersk ME4 service to call King Abdullah Port to support Saudi Arabian exporters Petrochemical exporters at Maersk’s Integrated Logistics Hub to benefit strongly from the new ocean service call at King Abdullah Port Maersk recently announced its ME4 Westbound service (Middle East to Europe) to call King Abdullah Port effective March 13, 2022.

With this change, Maersk aims to serve its customers better by bringing an ocean service closer to its 100,000sqm non-bonded warehouse located at King Abdullah Port.

The Maersk Integrated Logistics Hub at King Abdullah Port is a non-bonded warehouse providing a truly integrated logistics offering, primarily for Saudi Arabia’s petrochemical exporters.

It serves as the focal supply chain solution through the large space allocated for handling and storing cargo. The hub complements Maersk’s diverse solutions at the port, such as landside movement of cargo, customs clearance, and ocean logistics besides playing a vital role in facilitating the storage of export cargo and enabling pallet

handling, stuffing, and shuttling.

With the ME4 service calling King Abdullah Port, exporters using the warehouse will get easy access to ocean service for their exports to the western markets.

“When we set up the Integrated Logistics Hub at King Abdullah Port, our ambition was to get closer to our customers by providing a warehousing facility near the manufacturing hubs,” remarked Mohammad Shihab, Managing Director, Maersk Saudi Arabia.

Jay New, the CEO of King Abdullah Port, said that with the ME4 service calling at the port, exporters will be able to enjoy wide-ranging benefits. “King Abdullah Port’s inclusion in Maersk ME4 provides our customers, especially those in the petrochemical industry, with access to more destinations across Europe and Latin America,” he noted.

APRIL 2022 49

Op-Ed: Swisslog

Five trends shaping E-grocery fulfillment in 2022

This will be the year will mark the year when virtually every major grocer finalizes their e-grocery strategy, and many will move into the execution phase using MFC automation The year 2021 answered some important questions about e-grocery fulfillment and how grocers can most effectively fulfill online orders through micro fulfillment centres (MFCs) and e-grocery fulfillment centres (EFCs). David Dronfield, General Manager, Swisslog Middle East, highlights some of the major trends emerging across material handling in 2022 in this special OpEd for Global Supply Chain.

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he majority of the grocery market used 2021 to gain a better understanding of the complexities of e-grocery fulfillment and began to implement the organizational changes required to support an MFC strategy in the future. As a result, 2022 will mark the year when virtually every major grocer finalizes their e-grocery strategy, and many will move into the execution phase using MFC automation.”

The five trends that grocers should prepare for as they begin to execute on their strategies, based on our work with

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industry leaders who have successful MFCs and EFCs operating today.

1

E-grocery orders get smaller and more frequent

The big question coming into 2021 was how much the ‘return-to-normal’ would affect demand for e-grocery services. Would demand drop steeply from the highs experienced during the early days of the pandemic or would the convenience and time savings offered by on-line grocery shopping convert first-

time users into regular customers?

That question was answered definitively in 2021. Despite online grocery’s share of total sales being up and down on a month-to-month basis, the overall trend was one of growth.

According to a report from strategic advisory firm ‘Brick Meets Clicks’, the share of the U.S. grocery market represented by e-grocery pickup and delivery grew to 10% of total sales in 2021, up 2 points from 2020.

While the firm saw relative consistency in order frequency through 2021, we expect this to change in 2022.

Op-Ed: Swisslog

David Dronfield General Manager, Swisslog Middle East David Dronfield is the General Manager of Swisslog Middle East, an intralogistics provider that delivers robot-based and data-driven automation solutions for customers.

David brings more than 35 years of professional experience in the warehouse automation sector with expertise across sales, marketing, business development, project management and in managing senior leadership roles. Having worked in the industry for more than three decades, David brings with him a wealth of experience and industry expertise.

Prior to joining Swisslog Middle East, David has served as Founder & Managing Director of Intralogistic Solution, a company providing intralogistic design, supply chain consulting & turnkey equipment solutions.

David also managed business operations in various locations, including the United Kingdom, Australia, Indonesia and Thailand prior to relocating to UAE. David holds a B.Sc degree in Electrical and Electronics Engineering from the University of Surrey.

As consumers get more comfortable with online grocery shopping and the convenience it provides, they will place smaller, more frequent e-grocery orders.

This could put further pressure on the productivity and efficiency of in-store order picking as a means of fulfilling online orders.

MFCs and EFCs enable greater agility in responding to changing order profiles because the automation systems deployed in these facilities provide the flexibility to scale throughput and inventory independently.

2

Competition around delivery times heats up

Another byproduct of the maturing of e-grocery is the growing pressure to reduce order fulfillment times that will occur in 2022.

As was seen in the broader e-commerce market, as consumers get more comfortable with, and more dependent on, online shopping they expect faster order fulfillment times. The largest, bestfunded players fuel these expectations by continually shrinking delivery times to improve customer experiences and create differentiation.

E-grocery will experience a similar evolution and likely much faster than occurred in other e-commerce segments.

Of course, in e-grocery fulfillment, times are measured in hours and minutes rather than days. Grocers relying on manual fulfillment will be hard-pressed to keep pace with customer expectations, particularly in light of changing labor profiles in many markets.

Those moving to automation must ensure their systems are optimized for speed through advanced slotting strategies, maximum automation utilization, and orchestration across upstream and downstream processes.

Automated systems must also be easy to use to better accommodate employee turnover and reduce fatigue.

3

Grocers cut through the hype and focus on the business case

In the early months of the pandemic, grocers were developing fulfillment plans as a reaction to an extreme situation. The rapid spike in demand for e-grocery services created a sense of urgency that overshadowed

APRIL 2022 51

Op-Ed: Swisslog

the need for a solid business case. Speed of deployment was paramount and the situation too dynamic for a fully developed business case. That led some to adopt quick-to-deploy solutions that did not achieve cost-per-order expectations.

That is no longer the case entering 2022. Grocers moving forward with MFCs and EFCs in 2022 will take a more analytical and long-term approach to their e-grocery decisions. The focus is no longer on responding quickly to an unprecedented change in the market, but in establishing and scaling a cost-neutral e-grocery offering.

This shift is increasingly being informed by the experience of early adopters whose facilities met and exceeded expectations. Automation providers that worked with these early adopters are now positioned to help grocers determine the best distribution strategy based on order volumes in each market and accurately project the performance of automated fulfillment centres, both vital components of the business case.

4

Innovative automation configurations emerge to address key application challenges

The flexibility of the automation deployed in MFCs and EFCs allows these systems

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to adapt to small and irregularly shaped locations and scale with changes in demand. In 2022, it will also be leveraged in innovative configurations that more tightly integrate manual picking with automation.

One example that is expected to gain traction is placing cube-based automation that would normally be floor-mounted onto a mezzanine.

Fast-moving and perishable inventory is then located directly beneath the automation system to improve material flow through the fulfillment centre and optimize building and space utilization.

5

Omni-mode last mile fulfillment increases the focus on consolidation

When e-grocery fulfillment is limited to curbside pickup, order consolidation and staging can be relatively easy to manage. But when fulfillment hubs are supporting pickup as well as delivery to customers and retail spokes, consolidation and staging gets complex.

Managing the timing of orders across the various modes can create confusion and requires more space than many sites have available.

This is increasing the focus on consolidation in e-grocery fulfillment centre planning. In 2022 more grocers

using a hub-and-spoke distribution strategy will choose to automate consolidation as well as fulfillment.

Shuttle systems have proven to be an ideal consolidation engine and will be increasingly paired with cubebased automation systems, such as AutoStore, to efficiently consolidate the ambient, chilled and frozen components of an order based on delivery and pickup schedules.

Rapid advancement It may be a little premature to say e-grocery fulfillment has come of age, but it is advancing rapidly as volumes increase and more grocers gain experience operating MFCs and EFCs. In 2022, that progress will be seen in a wave of grocers launching their initial e-grocery distribution centres.

By collaborating with experienced partners and leveraging lessons from early adopters, these organizations can achieve cost efficiencies and performance levels that no one was sure were possible just two years ago.

Meanwhile, grocers that already have MFCs and EFCs in the market will focus on scaling their use of the strategy and using the speed and agility these facilities enable to create competitive advantage.

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Dubatt Recycling Plant

Dubatt, Regency Group, Seashore Group and DIC officials at the ground-breaking ceremony.

Ground-breaking ceremony held for Dubatt’s battery recycling plant in DIC One of MENA’s largest recycling facilities is being developed at an investment of US$ 29.95mn

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ubatt Battery Recycling, a joint venture between the Regency Group and the Seashore Group, recently broke ground on a 70,000sqft, firstof-its-kind, fully integrated lead acid battery (LAB) recycling plant at Dubai Industrial City (DIC).

Spread over a land area of 154,000sqft and being developed at an investment of AED 110mn (US$ 29.95mn), the state-of-the-art facility will contribute to the UAE Circular Economy Policy and Sustainability Goals by transforming used batteries into lead ingots and plastic chips for reuse by battery manufacturers.

Unveiling the details of Dubatt at a press conference, promoters said the plant is scheduled to be fully operational

by January 2023. Earlier in the day, the

54 APRIL 2022

groundbreaking ceremony attended

by Saud Abu Al Shawareb, Managing Director, Dubai Industrial City, was held in the presence of delegates from various government officials and VIPs. The guests of honor at the ceremony included Eng. Abdul Majeed Abdul Azeez Saifaie, Director, Waste Management Department, Dubai Municipality, and Abdullah Al Mahri, Director, Investments and Stakeholder Management, Ministry of Industry and Advanced Technology.

Clean Future

“As the region’s leading industrial hub, it is part of our purview to complement these efforts and support our leadership’s vision for a clean future by providing enabling infrastructure

and framework that supports the reclamation of hazardous materials like lead and plastic into reusable products,” commented Saud Abu Al Shawareb.

“Dubatt is an inspirational investment from the UAE Circular Economy Policy and Sustainability Goals. Upon completion, we will act as an organized recycler and waste management facility for ULA batteries thereby promoting reduction of carbon footprint and climate change,” noted Shamsudheen Binmohideen, Chairman, Regency Group.

The press conference was also addressed by Ali Ibrahim, Deputy Director General of Dubai Economy, Eng. Saeed Alawadi, CEO, Dubai Industries and Exports and Giacomo Civettilo, Founder and Director for SERI Group, Italy.

Dubatt Recycling Plant

Production capacities The Dubatt Plant will start with a 10 ton/hour battery breaker, 4 cubic meter smelter and 4 refinery kettles. Initial capacity is to recycle up to 25,000 metric tonnes of ULABS (Used lead acid batteries) annually and produce 14,000 tonnes of lead ingots and 1,750 tonnes of plastic chips which will be sold to battery manufacturers, medical, fishing, and other industrial sectors. This accounts for recycling around 35% of the lead acid battery scrap generated in the UAE. The plant machinery and technology are provided by FIB SPA, part of SERI Group Italy who are the pioneers in battery recycling technology with expertise in setting up numerous plants across the world.

Environmental concern

“A study we undertook found that the UAE produces approximately 6,000 metric tons of batteries per month and globally battery scraps are not processed in an environment friendly manner, ´ remarked Hasique Pandikadavath, Director, Dubatt.

He observed that globally unorganized battery processors break open ULABS, take the lead plates and grids manually, smelt them in rudimentary ovens and make lead ingots.

“We aim to enhance the efficient repurposing of batteries by sourcing it from the market, collaborating with major battery traders, scrap traders, car dealerships, garages, and government authorities. We also solicit the support of all relevant stakeholders, the media and the public in contributing to this Green Clean Initiative,” added Pandikadavath.

Future Plan – ‘Made in UAE’ batteries “We are planning to double our recycling capacity within a year from our commercial production and our plant is constructed with this provision to expand. Our future plan is to set up a lead acid battery production plant in the next two years as part of our vertical integration and expansion. We intend

“It’s a part of our purview to complement the efforts and support our leadership’s vision for a clean future by providing enabling infrastructure and framework that supports the reclamation of hazardous materials like lead and plastic into reusable products.” to produce a `Made in UAE’ brand of batteries soon,” stated Binmohideen.

The Group is also looking at a technology partnership with FAAM Italy, a division of SERI Group Italy, for manufacturing new advanced lithium-ion batteries to power electric vehicles and other applications. Dubatt’s technology partner is SERI SRL who are the pioneers in battery recycling and lithium-ion battery manufacturing.

The Regency Group is a UAE based holding company established in 1994, that owns a diverse portfolio of businesses across retail, hospitality, healthcare, media, general trading, education, mining & manufacturing.

The group has established a global presence and are further expanding its reach. The most visible outpost of Regency Group is Grand Hypermarkets, with 86 outlets across the GCC and India.

The Seashore group, established in 1989, is one of the largest multifaceted business houses with operations in the UAE and Qatar. Seashore group consists of 15 business divisions across manufacturing, recycling, waste management, engineering, construction, trading, and stevedoring.

APRIL 2022 55

Abu Dhabi Ports Group

ATLP launches digital airfreight solutions to bolster Air Cargo Service to streamline movement of shipments to and from aircrafts, enhance journey transparency and document processing

A

s part of ongoing efforts to accelerate the digitalisation of Abu Dhabi’s trade and logistics landscape and to further enhance the capabilities of the Advanced Trade and Logistics Platform (ATLP), Maqta Gateway, AD Ports Group’s digital arm has introduced Digital Airfreight Solutions as part of the Advanced Trade and Logistics Platform (ATLP).

Inaugurated in May 2020 by HH Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, and Chairman of the Abu Dhabi Executive Office, the Advanced Trade and Logistics Platform (ATLP) is the first of its kind in the region.

It is developed and operated by Maqta Gateway, under the supervision of the Abu Dhabi Department of Economic Development (ADDED) and aims to integrate and facilitate

56 APRIL 2022

the operations of trade and logistics sectors, and link the sea, land, air, industrial and free zones with all authorities regulating these activities.

The Digital Airfreight Solutions, developed in close collaboration with key partners that include Abu Dhabi Airports, Etihad Airport Services and Etihad Cargo, the new solution will streamline the movement of air cargo shipments to and from all five airports in Abu Dhabi.

Digital processing Beyond digitalising and simplifying the processing of air cargo for the benefit of all stakeholders and customers involved, ATLP’s latest solutions will introduce new levels of efficiencies, including reducing waiting times by 80 percent, improving delivery time via customs integration, enhancing track and trace visibility, introducing digital payment

channels as well as enhancing warehouse utilisation through an automated appointment system.

“On our journey to accelerate the digitalisation of trade and logistics in the region ATLP is taking the next steps towards enhancing transparency across the entire value chain and enabling stakeholders and customers to realise new efficiencies associated with the movement of air cargo to and from Abu Dhabi,” affirmed Dr. Noura Al Dhaheri, Head of Digital Cluster, AD Ports Group and CEO, Maqta Gateway.

“The ATLP digital airfreight solutions introduce an invaluable tool to ATLP to further consolidate Abu Dhabi’s trade ecosystem and accelerate the facilitation of trade across the UAE and beyond,” asserted Dr. Ali Husain Makki, Executive Director, Logistics & Trade Facilitation Sector, Abu Dhabi Department of Economic Development.

Abu Dhabi Ports Group

Additional capabilities “We are confident that the additional capabilities of the ATLP will have a positive impact on airport and airlines operations by accelerating the movement of air cargo shipments,” stated Francois Bourienne, Chief Commercial Officer, Abu Dhabi Airports.

Digital Airfreight Solutions have also reduced delivery time by 50 percent for both imports and exports. This was achieved thanks to the online submission of documents, enabling ground handlers to perform pre-checks and process shipments without waiting for the customer to arrive at the counter.

To ensure the successful implementation of these new solutions throughout the air freight ecosystem, Maqta Gateway recently signed an agreement with Etihad Aviation Group, under which the two parties will work together to deploy these digital solutions among all customers, partners, and stakeholders active within the air freight sector.

Doubling Air Cargo revenues “With the industry estimating that world air cargo traffic will more than double in revenue worth over the coming two decades to US$ 578 billion tonnekilometre (RTK), the Emirate of Abu Dhabi is becoming digitally ready to secure a sizeable and justifiable market share,” observed Martin Drew, SVP Sales and Cargo, Etihad Aviation Group.

“The capabilities of the Advanced Trade and Logistics Platform enables stakeholders across land, sea, air, and future rail, to not only conduct trade in a highly efficient and integrated digital approach, but it also allows users to access the services they need and to pay for them, all through a single-window interface,” noted Jubran Al Breiki, Director, Etihad Airport Services.

Maqta Gateway has also recently introduced a new inspection and clearance module, which links directly with Abu Dhabi Customs’ online services and other regulatory authorities and enable traders to manage their entire end-to-end cargo experience on ATLP’s single-window.

AD Ports Group inks Agreement to establish the 450,000sqm Metal Park in KIZAD Agreement signed with Metal Park Investment ME AD Ports Group recently signed an agreement with Metal Park Investment ME to establish an integrated metal hub in KIZAD that will cater to all industry verticals and offer flexibilities of scale to metal vendors, processors, and fabricators in the UAE. Covering a total land area of 450,000sqm, the future upcoming Metal Park in KIZAD will be equipped with advanced facilities supporting storage and handling, processing, and fabrication activities, whilst offering access to research and development amenities, rental office space, and associated financial services.

The agreement was signed in the presence of Captain Mohamed Juma Al Shamsi, Group CEO, AD Ports Group; Abdullah Al Hameli, Head of Economic Cities & Free Zones Cluster, and Saleh Shahrestani, Chairman, Metal Park Investment ME. In addition to industry-related infrastructure, Metal Park offers customers a unique solution featuring production planning capabilities, easy

entry and exit policies, and access to finance and human resources services to keep operations at optimal levels.

Furthermore, by using the most secure ERP system, businesses can cut down administration time and take advantage of industry-leading technologies to help their businesses reach new heights.

“Metal Park in KIZAD will create an ecosystem that helps metal service providers grow their business and adapt to market trends and conditions quickly and effectively, so they can plan for the future without constraint,” commented Abdullah Al Hameli, Head of Economic Cities & Free Zones Cluster.

“One of the defining points in the steel industry, Metal Park will revolutionise the steel fabrication industry and transform it into a winwin economy by providing a platform for metal services to be more efficient financially, economically and environmentally,” remarked Saleh Shahrestani, Chairman, Metal Park Investment ME.

APRIL 2022 57

DP World

Drydocks World and Petrofac complete Alpha and Beta topsides for TenneT’s Offshore Grid Upon completion in 2023, Hollandse Kust Zuid can power millions of households with renewable energy

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he Beta topside, the second of two High Voltage Alternating Current (HVAC) offshore transformer station topsides, successfully sailed away from Drydocks World Dubai’s fabrication yard to the Netherlands on 18 February 2022, following the Alpha topside in November 2021.

Together, the Alpha and Beta topsides will form part of the Hollandse Kust Zuid (HKZ) grid connection that will connect the offshore wind farm with the Dutch mainland, producing enough renewable electricity to cover the annual needs of over two million households when fully operational in 2023.

Drydocks World is committed to supporting its customers through the energy transition and beyond, with collaborative projects such as the HKZ grid connection exemplifying its involvement in the shift to a greener world, a press release stated.

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The offshore wind farm will cover an area of 235.8sqkm and be made up of four 350 MW offshore wind farms, which will be connected to two 700 MW offshore substations: the already installed HKZ Alpha topside and the recently delivered HKZ Beta topside.

Significant Milestone

“We are proud and happy to have reached such a significant milestone on this important project, working with our partners to help our client TenneT and the Dutch government increase wind energy production capacity offshore of the Netherlands,” asserted Lahoud, COO, Engineering & Construction, Petrofac.

DP World Pavilion-Expo 2020 “With the completion of the Beta topside, Capt. Rado Antolovic PhD, Drydocks the offshore grid that TenneT is building in the World was recently joined by Elie Lahoud, North Sea is starting to take shape. Hollandse Petrofac and Marco Kuijpers, TenneT at Kust Zuid is the first connection of an offshore Expo 2020 in the DP World Pavilion, to wind farm to the Maasvlakte,” noted Kuijpers, celebrate the sail away of both topsides.

Director Large Project Offshore, TenneT. “At Drydocks World, we are committed The HKZ Alpha and Beta topside project to supporting our customers and industry is an end-to-end collaboration between with innovative low carbon and net Drydocks World, Petrofac and TenneT, zero solutions to energy production. As committed to producing greener energy. such, completing our part in the HKZ Petrofac awarded the contract to Drydocks Alpha and Beta topside project is a World to complete fabrication, commissioning major milestone for us,” affirmed Capt. and load out for two topsides, the press Antolovic PhD, CEO, Drydocks World. communique concluded.

DP World

Supply chain crisis compounds inflation in 2022 Chairman of DP World says supply chain bottlenecks will not clear until 2023 Recently published new research reveals that supply chain issues are exacerbating inflation.

The study by Economist Impact, sponsored by DP World, the leading provider of smart planning solutions, found that during 2022 trade is expected to expand further, with exports growing 16% in 2021, and imports by 12%. Production levels have been unable to keep pace with demand leading to supply shortages and will limit import growth in 2022.

“The report is evidence that rising freight rates, and low production levels, coupled with a volatile social-economic situation in Europe, will keep inflation high in 2022 as companies navigate a risky trading environment,” commented Sultan Ahmed bin Sulayem, DP World Chairman and CEO. The survey of 3,000 respondents, captured perspectives of company leaders across the world. In addition to rising inflation, geopolitical tensions between the US and China continue to concern executives with 30% claiming that ongoing trade war between the US and China is the top reason to be pessimistic about global trade.

Takeaways Highlights of the report are as follows: • Report indicates supply shortages will increase inflationary pressure in 2022 • Chairman of DP World says supply chain bottlenecks will not clear until 2023 • 29% of companies that export are concerned about the risk of rising inflation due to supply chain disruption

• 30% of companies expect increasing transport costs to limit export-led growth in 2022, contributing to higher inflation • Just-in-time shipping is dying with over a quarter of companies now holding onto stock for three months Despite the apprehension, and low production levels limiting imports, international revenue expanded for 68% of companies exporting freight in 2021, compared with 42% in 2020. 35% attributed that growth to an expansion of exports into new markets, as companies took advantage of new trade routes created by the pandemic.

To cope with the pandemic and ease inflationary pressures, companies are also changing their strategic outlook. 48% now said diversifying their supplier base is their primary reconfiguration strategy, with efforts focussed on sourcing raw materials (24%) and managing shipping lines and logistics (21%).

The highest cited reason for optimism for global trade was the growth of technology to ease supply chain issues, particularly the adoption of 5G to increase connectivity.

Streamlining operations Digitalisation can also streamline operations and increase efficiencies in trade. 67% of companies in the industrial sector are already using digital platforms for supply chain management. Businesses now have greater flexibility to move cargo faster, track progress in real time and automate customs clearance processes, helping address non-tariff barriers.

APRIL 2022 59

Etihad Rail

Abu Dhabi-Dubai direct rail link rail track completed The railway length is 256 km and required 47 million hours of work.

The metrics are astounding—the railway line includes 29 bridges, 60 crossings and 137 drainage channels. The total excavation and backfill work amounted 46mn cbm, with the participation of 13,300 workers, recording more than 47mn working hours.

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H. Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance and HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court and Chairman, Etihad Rail, recently witnessed the connection of Abu Dhabi and Dubai with a direct railway within the UAE National Rail Network, in a major development within the largest infrastructure project in the UAE. Their Highnesses installed the final piece on the railway track, marking the start of a new phase of logistic and economic integration between the two emirates, and in preparation for linking the rest of the emirates to an integrated national railway network in the UAE. The completion of the main railway between Abu Dhabi and Dubai comes within the framework of ‘The UAE Railway Programme’ which was launched as a part of the ‘Projects of the 50’, with an investment worth of AED 50bn US$ (US$ 13.61bn).

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National network

Strategic position

The UAE Railway Programme includes a national network of railway projects that would link the seven emirates.

The programme is expected to create economic opportunities amounting to AED 200bn (US$ 54.45bn).

HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum affirmed that the UAE Railway Programme reflects UAE’s ambitions and aspirations to start the next fifty years with huge development projects that enhance its position as a leading regional and global centre in the sectors of trade, economy and logistics services.

HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan stressed the importance of completing the main railway of the UAE National Rail Network which connect the emirates of Abu Dhabi and Dubai to Sharjah, in connecting the cities and industries to a safe and sustainable rail network.

HH Sheikh Theyab bin Mohamed affirmed that the completion of the main railway will enhance the strategic position of the project at the transport and infrastructure levels and contributes to the promotion of sustainable development in the UAE, and the consolidation of its position to remain in the first ranks at the regional and global levels.

The railway which length is 256 km and is designed based on the highest international standards and specifications concerned with environmental aspects, safety and quality, will play a pivotal role in developing the UAE National Rail Network, facilitate goods transportation within the UAE and reduce transportation costs.

The railway line includes 29 bridges, 60 crossings and 137 drainage channels.

The total excavation and backfill work amounted 46mn cbm, with the participation of 13,300 workers, recording more than 47mn working hours.

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