GLOBAL SUPPLY CHAIN DECEMBER 2018 ISSUE

December 2018 Issue 54

ENHANCING THE BUSINESS OF LOGISTICS

COLD CHAIN Today’s hot button issue Westernacher Balsharaf Technology revolutionising WMS

Tranzone

Streamlining Operations

Kuehne + Nagel UAE In expansion mode

PORT OF PORT OF DUQM DUQM

From the vastness of the ocean and the horizon to the major shipping lanes connecting the terrain, Duqm is the preferred entreport for all yonder, a star is steadily rising. Strategically and East and the West. This Greenfield project project cargo movement for the upstream and conveniently located midway on the southernwith superbly developed port and industry and downstream energy industry. eastern coast of the Arabian Peninsula on transportation infrastructure and businessthe Arabia Sea, the Port of Duqm is steadily friendly policies seeks to attract investment in The multi-purpose identity of the Port emerging as the preferred port of call and its world-class facilities within the customised of Duqm is evident from the advantages maritime hub in the Sultanate of Oman.

Special Economic Zone. and USPs presented: The Port of Duqm, outside of the Arabian Port of Duqm is already linked to other Early Operation Container Terminal: The Port of Gulf and the Straits of Hormuz, has an major seaports in the region, including Salalah Duqm has the clear drive to become a major advantageous geographical position with close and Sohar in Oman and Jebel Ali in UAE via hub for the handling of containers, making and direct proximity to the large hinterland a multi-purpose feeder service operated by full utilisation of its major assets, including its comprising well-populated, emerging and state-owned and operated Oman Shipping prime location, the 18-metre guaranteed deep rapidly developing economies from the Indian Company. This planned service, currently draft, the expansive internal land and quay subcontinent, the African continent and even scheduled to operate weekly or fortnightly, length availability and its current and future the CIS countries. allows industries in the wider Duqm area to intermodal capabilities to reach local, regional As an ancient maritime nation with a rich import and export containers and project and international markets in the most costnauticalPort heritage, takes prideheart in its of the biggest cargo on aSpecial regular basis.

Currently, all major oil efficient of way.the Middle East and of Oman Duqm is the Economic Zone development sea-faring traditions. Continuing that legacy, and gas project cargo import is being routed situated on theasouth eastern ofofthe Sultanate Oman, overlooking Arabian Sea the Sultanate has launched new world class seaboard via the Port Duqm, for existingofenergy Dry Bulk the Terminal: Oman has and vast deposits the Indian Ocean.

It is strategically positioned outside of the Arabian Gulf serving key markets in Asia,Surface port on the Arabian Sea coast in the Al Wusta Greenfield and Brownfield mega-projects as of metallic and non-metallic minerals.

Governorate Central-Eastern TheMENA Port region, well as upcoming developments as Liwa exploration work and geological East inAfrica and theOman. wider while taking benefisuch t from its central location towards themapping oil in of Duqm is within the Special Economic Zone Plastics, BP Khazzan, Yibal Khuffe, as well as the recent past has demonstrated enormous and gas industry in the Sultanate.theThe Port is rapidly evolving into the next transshipment hub and Authority in Duqm (SEZAD).

Duqm Refinery venture. quantities of mineral deposits located within a aims to be “the most preferred multi-purpose port of the region”.

The Duqm Project is the flagship, outcome radius of around 300km of the Port of Duqm. and tribute to the far-sighted ambitions of His Multipurpose Terminal: The Port of Duqm These include an abundance of limestone, Majesty Sultan Qaboos Bin Said Al Said’s 2020 is already well-equipped to handle project and dolomite, gypsum, marble, gabbro, silica Futuristic Vision to +968 accelerate the Sultanate’s break-bulk cargo since 2012. Its impressive sand, shale, kaolin, laterite, basalt, solar salt Call now 24342800/1 or email info@portduqm.com for more information economic development. track record puts it in the stellar position for and ornamental stone. These deposits can be The Port of Duqm, in the heart of the heavy lift operations. Taking full advantage of readily mined, processed and exported out comprehensive Special Economic Zone, is its central location in the heart of several oil of Port of Duqm, thereby adding value to the perfectly located outside of the Arabian Gulf and gas concessions in Oman and not being Sultanate’s natural resources. away from the Strait of Hormuz, with proximity surrounded by hilly or impassable geographical The Port of Duqm has integrated the

STRATEGICALLY LOCATED. MOST PREFERRED.

Port of Duqm firmly emerging PORT OF as the most preferred maritime DUQM hub in the Sultanate of Oman

possibility to add rail connectivity to the terminal. The objective of the future rail line is to connect Duqm with a larger hinterland – including but not limited to the major mining areas of the country. Once operational, the rail network will allow Duqm to become a major dry bulk handling port in the Middle East.

Government of Oman to develop an industrial area of 2,000ha for the petrochemical and related medium heavy to heavy industrial activities. A first phase of 250ha of medium heavy industrial land is currently being developed and handed over to tenants under long term lease agreements.

Call now +968 24342800/1 or email commercial@portduqm.com for more information

STRATEGICALLY LOCATED. MOST PREFERRED.

Liquid Bulk Petrochemical Land: The Logistics Land: The surplus ‘Logistics Liquid Bulk and Petrochemical development Land’ allocation covers an area of area is a 1,375ha area in the northern part of the approximately 600ha to be developed for Port and will be a boon for this industry sector. logistics and light industrial activities.

In a first phase, off site storage facilities The Port of Duqm has to date levelled a are expected to be developed on the liquid vast parcel of 65ha area of the ‘Logistics jetties, serving the future refinery, which will be Land’ which is being handed over to existing developed just north of Port of Duqm. The Port tenants. Utilities are being set up and road Terminal and the Liquid Berths are expected to works are presently being carried out heart and of the Port of Duqm is the biggest Special Economic Zone development of the Middle East and be functional by the end of 2019. advanced infrastructure will soon be made situated on the south eastern seaboard of the Sultanate of Oman, overlooking the Arabian Sea and Being closely located to the major oil & gas available for further developing the logistics the Indian Ocean. It is strategically positioned outside of the Arabian and mining projects in Oman, Duqm is seeksGulf serving key markets in Asia, and transportation industry.

East Africa and the wider MENAtoregion, taking t frominits increasewhile its activity levelbenefi exponentially thecentral location towards the oil near,The foreseeable The Port of Duqm and gas the Sultanate.

Port is future. rapidly evolving into is the next transshipment hub and Port-bound Land: The industry Port-boundinland determined to become a future bunker hub includes all landaims with proximity to themost Port’s preferred quays. to be “the multi-purpose port of the region”. serving the entire region. With new global Phase 1 is the land in and around the bunker regulations coming into effect from commercial quay, the government quay and 2020,info@portduqm.com the Port of Duqm plans to take full information Call now 24342800/1 or email for more the port entrance which+968 covers a total area of advantage of its prime location as well as the approximately 100ha. availability of the right fuel specifications and Phase 2 covers the development of a offer prime bunker services accordingly.

600ha area which is yet to be reclaimed. The The Port of Duqm and its domain is Port plans to start operations in this area once therefore well poised to become a major the Phase 1 developments are complete. maritime hub for handling containers, The Phase 2 expansions include the further project cargo, RORO, liquid & dry bulk development of Container, Dry Bulk, RoRo and break-bulk cargoes. The grand vision and other Multipurpose Terminals. It is of its promoters and authorities is to expected that these tailor-made terminals will serve all stakeholders involved and to become operational between 2025 and 2030. realize its aim to make the Port of Duqm the most preferred port Industrial Land: The Port of Duqm +968 24342800/1 INFO@PORTDUQM.COM ofWWW.PORTDUQM.COM call in the region. has signed a separate usufruct with The @PORTOFDUQM

@PORTDUQM

@PORT-OF-DUQM-COMPANY-SAOC

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                                                                  

         

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Raising the temperature of the cold chain SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 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: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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No more is the logistics and supply chain industry blowing hot or cold with the cold chain. Now it is a cold reality!

The cold chain distribution process is an extension of the good manufacturing practice (GMP) environment that all pharmaceutical and biological products are required to adhere to, enforced by the various health regulatory bodies and other stakeholders.

The GMP environment requires that all processes that might impact the safety, efficacy or quality of the substance must be validated, including storage and distribution of the drug substance.

This December 2018 Edition of Global Supply Chain puts the spotlight on the burgeoning healthcare-pharma chain.

Interestingly, we engage with two women professionals— Anna Mansurova of Hellmann Calipar Healthcare Logistics, our cover story, and Saba Khan of Tranzone Logistics FZCO, on how to manage the pharma chain and what is being done to meet and even surpass operational standards.

Technology has permeated every industry and the logistics industry is no exception. Artificial Intelligence, autonomous vehicles, hyperloop and Warehouse Management Systems (WMS) are some of the specific terms and expressions that are being increasingly being bandied in our industry.

In this technology framework, we look at the close collaboration and successful synergy between Westernacher, the SAP Gold Partner and SAP-enabled quality leader in Business Process and Technology Innovation that effectively partnered with the leading Saudi Arabian retail conglomerate, the Balsharaf Group, to implement the ‘Healthy Warehouse’ concept.

The conclusion of this year also provides the opportunity to indulge in introspection. This year has been challenging but the industry is also typically resilient. We believe the industry, as in the past, will always rise to the occasion.

For now, we hope you will have a joyful and fun-filled festive season. We trust you will enjoy the much deserved respite before we gear up for the New Year 2019.

Merry Christmas and happy reading!

Malcolm Dias Editor malcolm@signaturemediame.com

DECEMBER 2018 3

December 2018 Issue 54

ENHANCING THE BUSINESS OF LOGISTICS

27 06: News 20: Continent Report-Africa The world’s second largest continent both in area and population presents virgin territories and opportunities for growth

26: Westernacher-Balsharaf A case study of successful partnership between a global technology provider and a regional retail conglomerate

31: Tranzone Transition The Saudi Arabian-UAE provider of 3PL for cold chain customers has upgraded its technology and foresees hot prospects ahead

36: Hellmann Calipar Healthcare Logistics The joint venture between the 4 DECEMBER 2018

German logistics giant and an Indian LSP is empowering the region’s healthcare-pharma chain in the region

42: Dubai Customs These are interesting and rewarding times for the gatekeepers of trade into and out of the Emirate

44: Kuehne + Nagel Extension The company inaugurated its third warehouse as part of its Phase 3 expansion in Dubai South on its 40th anniversary

47: Al Majdouie-GEFCO Saudi Arabia’s Al Majdouie and Dubai-based GEFCO join forces to empower automotive logistics

48: KIZAD Construction City KIZAD’s newest venture was unveiled

at Big 5 2018 with sops for the construction sector

50: Honeywell bats for security Safety first is the credo at Honeywell where protection and security of employees in vulnerable sectors is of prime concern

56: ADNOC The star at ADIPEC 2018 seeks to bring gender equality and diversity to its employee force

58: Dubai Maritime Insurance Conference (DMIC) 2018-Debut edition There is traction for the industry, delegates and attendees at the first edition of its kind in the Middle East heard

Amman Municipality acquires MAN vehicles MAN Truck & Bus Jordan has supplied 101 MAN trucks to make the Jordan capital city of Amman cleaner and greener for residents and visitors as part of the Greater Amman Municipality’s (GAM) efforts to upgrade its solid waste operations. The delivery ceremony of the new vehicles at King Hussain Gardens was attended by Amman MayorYoussef Shawarbeh.

“GAM now manages approximately 4,000 tonnes of solid waste a day, a 48% increase

on the amounts seen in 2011. This has placed unprecedented strain on the solid waste infrastructure, which the investment is directly addressing,”noted Erhan Eren, Head of Truck Sales at MAN Trucks & Buses Middle East.

The Amman civic authority has been operating MAN trucks for almost a decade now. Over the years, the number of MAN trucks operating under GAM has significantly increased to almost 67%

commercial vehicles in the maintenance and care operations in Amman.

“We are very pleased that Jordan’s capital as GAM is banking on our trucks and trust in our service solutions,”commented Ahed Sukhon, General Manager, Integrated Automotive, MAN’s authorized dealer in the Kingdom.

In 2019, MAN will celebrate over 100 years truck competence in the municipal sector of waste disposal.

Swisslog peaks new record as the world’s top AutoStore integrator The global explosion in the growth of e-commerce in both the business-to-consumer (B2C) and business-to-business (B2B) segments has led to increased demand for more scalable, modular solutions to meet rapidly changing customer demands.

As customer demand is quickly growing, so too is the need for flexible, robotic solutions.

As one of the most flexible and space efficient goods-toperson solutions available today, AutoStore, a cube-based system, has revolutionised e-commerce fulfillment and small item order picking.

The scalable system can be deployed relatively quickly in almost any warehouse

6 DECEMBER 2018

environment, providing dramatic improvements in space utilisation and productivity compared to traditional shelf-based storage. In the UAE, three companies have deployed this solution till date, with more in the pipeline.

“We believe that AutoStore provides exceptional customer value, and we are looking forward to continuing to deliver exciting automated projects based on this scalable, modular solution,” affirmed Alain Kaddoum, General Manager, Swisslog Middle East.

Swisslog was one of the first AutoStore integrators, with the partnership that began in 2009. Currently, Swisslog has sold more than 130 AutoStore projects in 19 countries.

After nearly 10 years of implementing the AutoStore solutions, Swisslog is in the lead for designing, developing and implementing the system. The company has implemented has implemented both the world’s largest AutoStore system with 361,000 storage bins and the world’s smallest, with only 1,000

bins. Swisslog offers AutoStore customers the intelligent tools to prepare their warehouse for future challenges. Developments like this are allowing new design capabilities for AutoStore, improving the efficiency of the concept even further, building on the vision of demand-driven, self-learning warehouses.

Emirates SkyCargo reaches important Cargo iQ milestones Emirates SkyCargo has reinforced its service standards using the Cargo iQ framework and achieved a number of significant milestones in the process.

The air cargo carrier announced that it has monitored nearly 823,000 shipments using Cargo iQ guidelines in the first six months since it received certification. To date, over 100 stations have been brought under the Cargo iQ domain.

According to data published by Cargo iQ, Emirates SkyCargo is one of the largest air cargo carriers for the total number of shipments tracked using Cargo iQ metrics and the carrier has regularly achieved an exceptional on-time delivery rate for cargo.

“Through Cargo iQ we are transforming the way we interact with service providers including Ground Handlers

and Road Feeder Service partners by bringing increased transparency, control and focus on quality of service into the shipment process,” said Henrik Ambak, Emirates Senior Vice President, Cargo Operations Worldwide.

Through its Cargo Operations Command Centre (COCC), Emirates SkyCargo uses live Cargo iQ data to follow the progress of shipments against predetermined key milestones from acceptance to delivery.

COCC staff pre-emptively identify shipments that are running behind schedule and take corrective measures to get them back on track. This enables Emirates

SkyCargo to meet scheduled milestones and make the shipment available to the customer at destination on time.

Currently cargo from 103 stations and over 9,000 trade lanes in Emirates SkyCargo’s global network are part of the Cargo iQ Partner stations initiative. By early 2019, most of the air cargo carrier’s over 160 stations and trade lanes across six continents will be brought under Cargo iQ processes.

DP World Headquarters achieves carbon neutrality To mark DP World’s attainment of carbon neutrality from its global headquarters in Dubai, Dubai Carbon has issued to Nabil Battal, VP Group Health, DP World, a certificate for Net Zero Carbon Emissions.

DP World’s global headquarters in Jebel Ali is now carbon neutral with regards to its consumption, as a result of installing solar photovoltaic (PV) panels on the building’s rooftop and car park.

In line with its core competency of low carbon strategic economic enablers, Dubai Carbon calculated that DP World has achieved carbon neutrality by generating solar energy through PV panels. This bold sustainable statement from DP World positions the

organisation as a key contributor in reducing greenhouse gas emissions and subsequently combating climate change.

“DP World reaffirms our commitment to helping the Dubai Government reach its goal of reducing the city’s energy demand by 25% by 2030 in line with the Dubai Integrated Energy Strategy. The future of our country lies in businesses integrating green technologies as a part their daily operations,” affirmed Nabil Battal.

“DP World’s efforts reflect the regions strict targets that have been put in to place to reduce carbon emissions in the future, such as through Dubai’s Carbon Abatement Strategy 2021,” commented Ivano

Ionelli, CEO, Dubai Carbon.

The issuing of the Net Zero Carbon Emissions Certificate further strengthens DP World’s commitment to using solar

energy, reflecting the goals of both the Dubai Integrated Energy Strategy (DIES) 2030 and The Dubai Clean Energy Strategy 2050 campaigns.

DECEMBER 2018 7

Gerab Group commences operations at KIZAD and Khalifa Port Khalifa Industrial Zone Abu Dhabi (KIZAD) has announced that Gerab National Enterprises (Gerab Group), a bulk stockist and supplier of seamless pipes, welded pipes and allied components, is to establish its fabrication facility, manufacturing unit and 3PL logistics operations at the zone and nearby Khalifa Port through three major projects.

“The Gerab Group is one of many major institutions that have chosen KIZAD and Khalifa Port as a base for their regional operations due to our commitment to develop a world-class integrated industrial ecosystem that allows companies to collaborate and create innovative solutions,”affirmed Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports “Expanding the portfolio of assets is an integral part of our strategic plan for continued growth and development across the region, with specific focus through investment in domestic operations emphasising our local presence,” asserted Abdullah Sharafi, President, Gerab Group.

Gulftainer-operated US port welcomes Moroccan citrus shipment “As a company specialising in the manufacturing of process equipments such as pressure vessels, reactors, and also large modules, tank farms and piping spools, the expansion at Kizad and Khalifa Port will reinforce the Company’s existing facilities across the UAE,” noted Shashi Ramakrishnan, Managing Director, Quality International, one of the three new corporate entities taking shape within the Gerab Group conglomerate.

This development reflects KIZAD’s commitment to the regional business community, such as launching KIZAD Construction City earlier this year to serve as a storage, manufacturing and distribution hub for construction material, machinery and equipment for major construction projects.

Tristar acquires crude oil terminal in Louisiana

Dubai-based Tristar Group has acquired a 300 thousand barrel crude oil terminal that feeds into the deep water port of Louisiana in the Gulf of Mexico.

This acquisition positions the company for entry in the US shale oil sector.

The Canal Crude Oil Terminal is within the Louisiana Offshore Oil Port (LOOP) which is a deep-water port in the Gulf of Mexico off the coast of Louisiana. The terminal acquired by Tristar, which is spread across 50 acres with 18 tanks, is capable of storing almost 350,000 BBLs. It has a loading capability of 3,000 to 4,000 BBLs per hour. “This is a strategic investment that will not only complement Tristar‘s fuel farm business but also positions Tristar for an entry into the lucrative shale oil Industry in the US,”affirmed Eugene Mayne, CEO, Tristar Group. In 2009, Tristar bought Shell Guam Agat fuel facility which is spread across 237 acres on the Pacific Island of Guam, making it one of the largest fuel storage terminals in the Pacific with a storage capacity of 4.2mn barrels.

8 DECEMBER 2018

The Port of Wilmington in the state of Delaware, operated and managed by GT USA, the US division of the global logistics company Gulftainer, received the first breakbulk shipment of fresh Moroccan citrus fruit of the season in the United States.

The nation’s foremost marine terminal for perishable cargo welcomed the specialised refrigerated vessel MV Belgie Reefer on behalf of long-time customer Fresh Fruit Maroc. The vessel began discharging her cargo of over 574,800 boxes of fresh clementines on the same day.

The Port of Wilmington is a major port of entry and distribution centre for the seasonal imports of fresh Moroccan citrus fruit, including Nour clementines and Nadorcott mandarins.

During this season that runs until March 2019, the port anticipates approximately 12 shiploads of fruit from the Moroccan Atlantic port of Agadir.

“We are privileged to continue to serve our customers and trade partners as the port of choice that ensures timely distribution of the freshest available fruit to North American consumers,”noted Eric Casey, CEO, Port of Wilmington, GT USA. Cargo is stored in the port’s 800,000-squarefoot on-dock refrigerated warehouse complex, one of North America’s largest facilities, before distribution to markets throughout the United States and Canada. The Port of Wilmington to date has handled more than 10.7mn boxes of Moroccan citrus fruit in this 2018-19 season.

Etihad Group announces collaboration with Moog

FedEx introduces additional flight on the USA-UAE route FedEx Express has increased the frequency of its direct MemphisDubai Boeing 777F flight, facilitating intercontinental trade between the Middle East and the USA. “As the first to launch a dedicated flight between the USA and the UAE, FedEx has extensive expertise in shipping from and to the USA, and since 2011, the FedEx Boeing 777F flight has provided considerable access to boost trade between the US and the Middle East,” commented Jack Muhs, Regional President, FedEx Express Middle East, Indian Subcontinent and Africa. “ Over a 10-year period (2006-2016), USA exports to the United Arab Emirates grew by 118%. The UAE is currently the USA’s 28th largest trading partner, with a total trade value of US$ 24bn worth of imports and exports in 2017.

The UAE also represents the largest export market for the European Union (EU) among the Gulf Cooperation Council (GCC) countries, with exports amounting to EUR 42bn, and total trade in goods between the EU and the UAE amounting to EUR 52bn in 2017, the company revealed in a press statement.

Etihad Aviation Group has announced strategic 15-year collaboration with aviation component manufacturer Moog at the recently concluded Bahrain International Airshow.

The partnership will provide Etihad Airways with global access to the Moog’s component pool as well as complete repair support from the manufacturer on a range of part numbers fitted to the airline’s fleet.

Moog will support Etihad Airways Engineering, the largest commercial MRO service provider in the Middle East. The support will expand the company’s component capability onsite to become a centre of excellence for component repair and overhaul. This strategic move is the first

step in the company’s ambition to grow in-house component capabilities.

“In a rapidly expanding market, this strategic partnership offers total support on components installed on the Etihad Airways fleet, as well as developing Etihad Airways Engineering as a centre of excellence,” commented Tony Douglas,

CEO, Etihad Aviation Group.

“We are pleased to have signed a long-term partnership agreement with Etihad Airways and Etihad Airways Engineering and we look forward to building a longlasting relationship with both organisations,” said Mark Brooks, General Manager, Commercial Global Support, Moog.

dnata expands in the USA dnata has launched operations at Los Angeles International Airport and now provides ground handling and cargo services at 20 airports in the country.

To establish operations in Los Angeles, dnata has invested US$ 8mn in infrastructure and resources, creating more than 350 local jobs. Serving six airlines, including Austrian Airlines, Iberia, Japan Airlines, Lufthansa, Swiss International Air Lines and Qantas, dnata will initially handle 4,600 flights a year.

“Adding Los Angeles International Airport to our growing network underlines our strong commitment to the US market, where we have significantly expanded our operations through

investments in our facilities and resources in the past two years,” commented David Barker, CEO, dnata USA. dnata commenced ground handling and cargo operations in the United States by the acquisition of industry players in 2016.

Since then, the company has invested more than

US$ 35mn in facilities, equipment, training and technology, while constantly expanding its operations in the country.

Offering highly competitive benefit packages in the market, in the past two years dnata has hired 1,000 additional employees growing its team strength to over 3,750.

DECEMBER 2018 9

Board reshuffle at Hyperloop One: Sultan Bin Sulayem named Chairman

Hyperloop One has announced that Sultan Bin Sulayem, Group Chairman and CEO of DP World, has been elected as its new Chairman, following the resignation

of Sir Richard Branson. The company that developed a full scale hyperloop system also appointed Jay Walder, a leading mass transportation and technology executive, as its new CEO. Walder will also join the company’s Board of Directors. Dubai Media Office will replace Rob Lloyd, who served as CEO for more than three years.

Bin Sulayem has over three decades of experience across a wide range of industries, bringing a wealth of leadership experience to the Boardroom. Following the recent financing, DP World will become Virgin Hyperloop One’s largest investor, recognising the value of hyperloop to distribute not only passengers, but time sensitive cargo at the speed of flight and the cost of trucking, a press statement from DP World noted.

Bahri hosts customers and partners at annual oil reception’ Over 350 guests attend ‘Bahri Oil Annual Reception’ at a commemorative celebration Bahri recently hosted a reception for its customers, partners, and stakeholders at its ‘Bahri Oil Annual Reception’ in Dubai.

Mre than 350 decision-makers, regulators, and key executives of local and international companies in the maritime industry were hosted by Bahri at ‘Bahri Oil Annual Reception,’ a yearly event organized since 2008 as part of the company’s efforts to connect with and engage its customers and stakeholders all over the world.

The reception was attended by a number of the company’s board members, namely Saleh Al-Debasi, Ibrahim Al-Buainain, Dr. Abdulmalik Al-Hogail, Khalid Al-

10 DECEMBER 2018

Arifi, in addition to Bahri’s CEO, Abdullah Aldubaikhi, and other senior officials.

“2018 has been a remarkable year for Bahri as it recorded solid growth across its operations. It was also a rewarding year as the company was honored with several awards in recognition of its outstanding contributions to the development of the transportation industry in general as well as the global maritime transportation industry,”Aldubaikhi said.

“Bahri’s reputation as an employer of choice is built on its commitment to the implementation of global best practices in human capital management, as well as the professional and personal development of its people,”commented Hisham Al-Khaldi, SVP, HR and Corporate Communications, Bahri.

Rockwell Automation appoints new president for EMEA region

Rockwell Automation has named Susana Gonzalez President of Europe, Middle East, and Africa (EMEA) region.

Gonzalez was most recently Rockwell Automation’s European regional sales vice president. Before joining Rockwell Automation, she led European industrial automation and control sales for a global technology and manufacturing company.

She has over 15 years of experience successfully leading product management and sales organizations in multinational companies.

Gonzalez, the company’s first female president, will replace Thomas Donato effective January 1, 2019.

“Susana Gonzalez’s broad international experience, and exceptional leadership make her the ideal candidate for driving growth in this region,”said Thomas Donato.

Gonzalez will be the company’s first female EMEA president. She will relocate from Germany to the Rockwell Automation EMEA headquarters in Brussels.

GAC inaugurates new Dubai South contract logistics facility

A quarter of a century after opening the first distribution centre in the Middle East, GAC Dubai has officially unveiled its new purpose-built contract logistics facility, at Dubai South.

The inauguration ceremony was attended

by Khalifa Al Zaffin, Executive Chairman.

Dubai Aviation City Corporation (DACC) & Dubai South, and attended by GAC Group President Bengt Ekstrand, GAC Group

Vice President for the Middle East; Fredrik Nyström, GAC Dubai Managing Director Ronald Lichtenecker, and Saadi Abdul Rahim Hassan Al Rais, Chairman of the Board for GAC Dubai, as well as partners and customers.

The AED 100 million facility (US$ 27mn), which broke ground in December 2016 and began operations in May this year, is the largest and most advanced in the company’s history. It, brings the total capacity to more than 170,000 pallet positions to the company’s storage, transportation, value added services and documentation requirements.

“GAC was a pioneer when we arrived in Dubai in 1967, and when we opened the region’s first distribution centre in 1993. Our latest addition in Dubai South continues that pioneering tradition,”noted GAC Group President, Bengt Ekstrand.

The 45,900 pallet, two-chamber temperature- and humidity-controlled facility is designed to handle a diverse range of product categories including fast moving consumer goods (FMCG), food & beverage, beauty products and dangerous goods (DG).

Currently, the facility holds 21,500 occupied pallet positions of goods and handles around 60 vehicle movements per day.

Agility’s Q3-2018 revenue rose 10%, earnings by over 12% Global logistics provider Agility reported third-quarter net profit of KD 20mn, an increase of 12.3% over the same period in 2017. Agility EBITDA (earnings before interest, tax, depreciation and amortization) grew 14.8% to KD 39.2mn. Revenue increased 10% to KD 394.4mn.

For the first nine months of the year, net profit increased 19.7% to KD 58.9mn.

EBITDA was KD 114mn, an increase of 16.9%. Revenue for this period was KD 1,150.4mn, an increase of 12.7%.

“Our third-quarter results build on the momentum Agility has achieved throughout 2018,” said Tarek Sultan, Agility Vice Chairman and CEO. “We have seen double-digit EBITDA growth in our logistics business and across our portfolio of subsidiary companies. The company continues to track towards its goal of $800mn EBITDA by 2020 and its objective of becoming the digital leader in the logistics industry,” he added.

GIL gross revenue rose to KD 292.2mn, an increase of 7% vs. Q3-2017. Net revenue grew 5.1%, reaching KD 64.8mn. The net revenue increase was driven mainly by Air Freight (up 15.6%) and Contract Logistics (up 6.4%).

The sources of GIL’s continued nearterm growth remain its ability to use digital technology and data to enhance its productivity and develop insights and answers for customers needing solutions and better connectivity. GIL remains focused on core drivers of its profitability.

Agility Logistics Parks (ALP), previously Industrial Real Estate, reported 4.8% revenue growth in the third quarter, despite challenging market conditions. In Kuwait, ALP’s focus is driving the efficiency of the existing assets.

In the Saudi Arabian capital Riyadh, ALP has started delivering warehousing space and is on track with the development of the second phase of its logistics park, which will deliver an additional 120,000 sqm capacity.

ALP development in Africa is proceeding well. In addition to Ghana operations, facilities in Mozambique, Nigeria and Cote d’Ivoire are expected to become operational in 2019.

DECEMBER 2018 11

Gulf Air and Etihad to explore avenues for enhanced cooperation

Gulf Air and Etihad Airways are set to explore deeper cooperation following the signing of a Memorandum of Understanding (MOU) at the recently concluded Bahrain International Airshow in the Kingdom.

The wide-ranging MOU covers scope to introduce joint codeshare operations between Abu Dhabi and Manama, as well as on the global flight networks beyond the two carriers’ GCC hubs.

The MOU also contains plans for greater commercial cooperation in the fields of cargo, engineering, guest experience and the optimisation of pilot training facilities.

The MOU was signed on the first day of the Bahrain International Airshow, currently taking place at the Sakhir Airbase, by Tony Douglas, Group CEO, Etihad Aviation Group, and Krešimir Kučko, CEO, Gulf Air. “The relationship between Bahrain and UAE is strong in many fields including aviation and today with the signing of this MOU we enrich the relationship by cooperating with Etihad Airways,” asserted Kučko.

“We look forward to the Etihad and Gulf Air teams coming together during the next few months to look at how we can put that in place, whether it is in codeshare, engineering, cargo, or through our frequent flyer programmes,”commented Douglas.

The teams in both carriers’ engineering and cargo divisions are also set to begin talks about greater cooperation. These discussions would look at optimising MRO (maintenance repair operations) opportunities, as well as ways to increase volumes of freighter traffic flowing into and out of Abu Dhabi and Bahrain.

DP World and SirajPower clinch ‘green’ deal SirajPower has announced a strategic partnership with DP World. Under this partnership, SirajPower will deliver a first batch of 15 MW to DP World’s facilities in Dubai located at Jebel Ali Free Zone (Jafza) and National Industries Park, with a 22-year lease agreement to help the company save its energy consumption / financially.

DP World is already at the forefront of renewable energy innovation and this is a key pillar for its global vision. SirajPower’s partnership with DP World further supports its sustainable, long-term growth plan that is aligned with the United Nation’s ninth Sustainable Development Goal (SDG) to build resilient infrastructure, promote

12 DECEMBER 2018

sustainable industrialisation and foster innovation.

“Initiatives such as Shams Dubai have been instrumental

in the development of the flourishing solar industry in Dubai and supports the long-term green vision of the

country,””affirmed Laurent Longuet, Chief Executive Officer, SirajPower.

“The Solar Power Programme is part of DP World’s larger goal. We are simultaneously developing the Jebel Ali Free Zone Zero Waste Project, with the ultimate goal to develop the world’s first Zero Carbon Emission supply chain across our portfolio,”asserted Mohammed Al Muallem, Chief Executive Officer and Managing Director, DP World, UAE Region.

To execute the contract, SirajPower also announced it will open a branch in Jafza that will help supporting the construction installation and operations. The construction activity is expected to result in significant logistics traffic with almost 80,000 PV panels to be installed, which corresponds to more than 150 containers.

Drones Synergies 2018, a global conference and capacity building workshops, recently concluded at the Zayed University in Dubai. The aim of the two-day event was to see application of latest drone technologies in different fields, particularly in precision agriculture, food security, environmental and natural resource management.

The event, which was attended by more than 150 participants, was designed to foster technology and data in driving decision making in today’s data-powered economies, highlight further advancements in drone technologies and note the rise of the Artificial Intelligence (AI) and Internet of Things (IoT).

Six plenary sessions and twenty capacity building workshops were held at the conference to focus on contemporary and crucial developments related to

Drones Synergies Conference examines future-shaping technology solutions the drone industry and the latest technologies. The event comprised of four practical workshops that included field trials and real drone data acquisition, allowing all delegates to gain and enhance practical experiences.

“Drones will make much difference in the coming years, and we want to ensure that we fulfill

its abundant potential. Education, as well as the nurturing of future talents in this field,”declared Prof. Reyadh Al-Mehaideb,VicePresident, Zayed University.

“Drones have an incredible role in agriculture; it is one of the best technologies when it comes to precision agriculture,”said Dr. Ismahane Elouafi, Director General, ICBA.

“Drones Synergies is the only conference in GCC region that featured project-based learning approach while allowing event delegates to gain practical UAVs knowledge, based on real field trials using the latest drone technology and processing techniques”, noted Rabih Bou Rashid, Managing Director, Falcon Eye Drones.

standard gauge railway from the Tanzanian capital to Kigali that will add a direct rail corridor to the two existing road routes, further improving connectivity for containers and bulk goods.

The facility offers container handling, stuffing and destuffing, warehousing, storage and other cargo handling services. Imports from overseas can be routed through Kigali

Logistics Platform for onward distribution to the surrounding countries of Uganda, Tanzania, Burundi and the DRC, a growing region of over 40 million people.

Customs officers at the incoming port use highly advanced e-tags, to seal incoming containers. These active RFID tags allow realtime tracking of cargoes on route to Kigali, for complete

transparency and added security. A dedicated customs team inside DP World Kigali handles final customs clearances. DP World Kigali is also establishing a road transport solution that will allow clients to fully outsource their end-to-end logistics needs, including international shipments, clearances, repacking and final deliveries.

DP World develops Kigali’s logistics platform DP World and the government of Rwanda have setup a an advanced hub, located 20 kilometers from the capital city Kigali, close to the international airport. The facility is East Africa’s first ever Inland Dry Port developed by DP World.

DP World Kigali (DPWK) is a secure, bonded facility spread over 13 hectares and features an Inland Container Terminal (ICT) with modern warehousing capacity, a container yard, administrative and services buildings, parking areas and other facilities.

DPWK accesses two secure trade gateways for eastern Africa, the port of Mombasa in Kenya and Dar Es Salaam in Tanzania. Rwanda is working closely with Tanzania on a new

DECEMBER 2018 13

Stage Two for Etihad Rail on track following financing agreement The UAE Ministry of Finance and the Abu Dhabi Department of Finance have signed an agreement for the financing of Stage Two of the Etihad Rail national rail network, the UAE National News Agency WAM has reported.

The second stage will extend 605km from Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast, to be followed by future route additions. The volume of goods transported will increase from seven million tons per year on Stage One to more than fifty million tons.

The agreement signing ceremony was attended by HH Sheikh Theyab Bin Mohamed Bin Zayed Al Nahayan, Chairman of Abu Dhabi Department of Transport and Chairman of the Etihad Rail Board of Directors.

“The budget approval for Stage Two of the United Arab Emirates’ national

railway network reflects the keenness of our leadership to implement national strategic projects,”affirmed Sheikh Theyab Bin Mohammed.

Etihad Rail has taken major strides in 2018, most importantly the completion of the preliminary designs of Stage Two of the project in preparation for the launch of tenders for civil construction works by the end of this month.

Etihad Rail is now in advanced stages of commercial and technical negotiations with an extended range of potential partners.

Turkish Cargo continues to fly high with all-round growth

The average industry expansion during the period between January and September 2018 was 2.8% globally while Turkish Cargo reached an increase of 29% and 25% in revenue and transported cargoes respectively.

Maintaining its growth momentum, Turkish Cargo successfully retained its place ranking 8th in the WACD list of top global air cargo service providers.

Attaining a sustainable growth with its newly-launched destinations, current infrastructure and investments, Turkish Cargo has continually increased its capacity in more than 300 destinations included in its current flight network.

Turkish Cargo has demonstrated very good performance in the first nine months of 2018, the airline revealed in a press communication.

According to WACD (World Air Cargo Data), which provides information about the international air cargo market, Turkish Cargo has achieved a 29% rise in revenue and 25% rise in transported cargoes between January and September in 2018 compared to the same period last year.

WACD data also displayed that the global air cargo market has shown the lowest growth average of the past five years considering the first nine months of 2018. Turkish Cargo currently provides service to 122 countries around the world and is one of the fastest growing air cargo brands.

14 DECEMBER 2018

Wintershall added to ADNOC’s Ghasha ultra-sour gas concession The Abu Dhabi Government and the Abu Dhabi National Oil Company (ADNOC) have added Wintershall Holding GmbH to the Ghasha ultra-sour gas mega project with a 10% stake.

Wintershall will contribute 10% of the project capital and operational development expenses.

Germany’s largest crude oil and natural gas producer and a wholly owned subsidiary of BASF, the world’s largest chemicals company by sales, joins Italy’s Eni as partners with ADNOC in the project. The agreement marks the first time a German oil and gas company has been awarded a stake in an Abu Dhabi concession area.

The concession agreement, which has a term of 40 years, was signed by HE Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Mario Mehren, CEO, Wintershall.

“Development of the Ghasha concession area is a strategic priority for ADNOC. The gas, extracted from the concession area, at commercial rates, will make a significant contribution to fulfilling our commitment to ensuring a sustainable and economic gas supply, and achieving our objective of gas selfsufficiency for the UAE,” said Dr. Al Jaber.

The Ghasha ultra-sour concession will tap into the Arab basin, which is estimated to hold multiple trillions of standard cubic feet of recoverable gas. The project is expected to produce over 1.5 billion cubic feet of gas per day when it comes on stream around the middle of the next decade, enough to provide electricity to more than two million homes. Once complete, the project will also produce over 120,000 barrels of oil and high value condensates per day.

Newest bus fleet to enhance comfort for Emirates’ airside passengers To provide passengers with more comfortable transfers when they arrive, depart or transit at Dubai international Airport, Emirates has ushered in a fleet of new high tech buses for its airside passenger operations.

These new dedicated buses will ferry Emirates’ passengers between the terminals and its aircraft at remote stands. Ten of these new buses are already in service. 30 more will be delivered by January 2019, with the entire fleet to comprise 128 buses by 2020.

“Emirates has taken the decision to invest in our own customised buses to transport customers airside at our Dubai airport hub. Together with our latest transport management system, these new buses will provide our customers with

a more comfortable ride and smoother connections,”commented Adel Al Redha, Emirates’ Executive Vice President and Chief Operations Officer.

Emirates is the first airline in the world to introduce airside buses that have equal standing and seating capacity. The new fleet of buses will also have convenient ramp access and fold-up seats to make travel

more comfortable for customers who use wheelchairs or are travelling with baby strollers.

Other customised features include: ambient lighting, an intercom facility to contact the driver, microphones for announcements, and flight information systems inside the buses which display the latest information to customers.

will again be at hand to provide logistics services for the journey back to Dubai.

“The oceans and seas are GAC’s lifeblood, so we are always looking for ways to promote the preservation of the marine environment,” asserted Stuart Bowie, GAC Group Vice President, Commercial, in support of the initiative.

The ‘Year of Zayed’ left Jebel Ali Port in early November and arrived in Dakar on 4 December. After customs clearance, unloading and trimaran assembly works, the rowing team will set off to cross the Atlantic on 14 December, due to arrive in Paramaribo on 7 January, after rowing an average of 14 hours a day.

GAC supports Row4Ocean’s trans-Atlantic bid and marine preservation efforts GAC is supporting the Dubai-based syndicate Row4Ocean’s attempt to complete an endurance-testing journey from Dakar in Senegal to Paramaribo in Suriname, whilst spreading an important marine preservation message.

Row4Ocean is the initiative of Patrick Bol, syndicate owner and skipper rower of the high-tech trimaran ‘Year of Zayed’, in collaboration with global trade enabler DP World. Patrick will lead a team consisting of Andrew Ruinoff, Lewis Knollman and Matt Wilds as they row 2300 nautical miles across the Atlantic.

Through the challenge and along the way, they will raise awareness about ocean pollution by collecting daily water samples and sending them for analysis back in Dubai.

GAC is providing freight services for the boat’s journey from Dubai, where it was built, to the starting point at Dakar, capital of the west African nation of Senegal. After the ‘Year of Zayed’’s trans-Atlantic journey, GAC

DECEMBER 2018 15

Panalpina and Honeywell partner on new technology solutions

Panalpina has announced a strategic alliance with US technology company Honeywell. Honeywell is to become a technology partner supporting Panalpina’s global innovation initiatives around connected distribution centres, connected supply chains, and connected workers.

Panalpina will deploy Honeywell’s industry-leading technology solutions globally at its warehouses, including voice directed solutions, mobile handheld devices, and warehouse automation solutions. The two companies agreed to a strategic alliance to jointly collaborate

Unilever MENA advocates sustainability At a recent industry forum, Unilever drew regional focus to the global issue of sustainability in order to build a truly environmentally responsible future for the Middle East.

In its 6th year, the Unilever Sustainable Living Plan’s (USLP) 2018 focus was on plastic waste and sustainable packaging in a bid to drive collective efforts towards meeting the UAE Vision 2021 and the UNs Sustainable Development Goals (SDGs), with a focus on SDG goal 12 - ‘sustainable consumption and production patterns’.

Two roundtable discussions attended by senior private and public sector representative sought to outline the challenges and opportunities towards the implementation of a circular

16 DECEMBER 2018

and deploy solutions that deliver value to Panalpina’s global customer base.

“The partnership with Honeywell will be instrumental for our LogEx continuous improvement initiatives and support us in providing best-in-class operations to our customers worldwide,” said Mike Wilson, Panalpina’s Global Head of Logistics and Manufacturing.

“Our goal is to support Panalpina in realizing its global digital transformation strategy,”said Thomas Park, chief commercial officer of Honeywell Safety and Productivity Solutions. Recent implementations of Honeywell’s Mobility Edge devices and Vocollect Voice technology in two of Panalpina’s warehouses have been very successful and shown a 15% improvement in productivity.

“Combined with our global standardized warehouse management system and integrated solutions, Honeywell adds enabling hardware and innovative technologies to work smarter and more efficiently,”said Brian Caputo, Panalpina’s Corporate Head of Logistics, HR and Legal IT products.

economy in the UAE as well as the best strategies for sustainable packaging including end of use and packaging performance.

“With the topic of sustainability currently under a global microscope, we remain committed to driving the industry agenda and implementing sustainable initiatives,”said Sanjiv Kakkar, Executive Vice President for Unilever MENA, Turkey, Russia, Ukraine and Belarus.

In 2017 Unilever made a bold and public commitment to switch to a circular economy model by making all of its plastic packaging reusable, recyclable or compostable by 2025.

The Unilever Sustainable Living Plan (USLP) is the company’s blueprint for decoupling its environmental footprint from its growth while increasing its positive social impact and aims to drive sustainable change via its brands, innovation, sourcing and operations.

Swisslog demonstrates capabilities and solutions at industry exhibition in Saudi Arabia Swisslog, an eminent player in robotic, data-driven and flexible automated solutions, displayed its latest and most popular technologies including automated pallet warehouse systems and automated storage and retrieval systems at the second edition of the two-day Materials Handling Saudi Arabia in Jeddah.

More and more businesses in Saudi Arabia are coming to recognise the benefits of pallet warehouse automation.

Swisslog solutions for the market include both a traditional high bay warehouse based on Vectura stacker cranes as well as a dynamic PowerStore shuttle system. Both solutions are flexible as well as cost-effective for businesses, the company revealed in postevent press communique.

Representatives at Swisslog were on hand to meet professionals and decision-makers as well local and regional business leaders to discuss material handling issues and answer questions related to fast, high-quality distribution and logistical processes.

Alain Kaddoum, General Manager, Swisslog Middle East said Materials Handling Saudi Arabia is an important expo for Swisslog to be present given that the company has been active in the region for more than five years. Some of the company’s recent customer wins include Almarai and Mai Dubai amongst others, including recently secured new projects in Saudi Arabia.

TSSC showcases turnkey advanced building systems at The Big 5 Technical Supplies & Services Co. (TSSC), one of the leading suppliers and manufacturer of building materials and systems in the Middle East and a member of Harwal Group, announced its participation at the just concluded 2018 Big 5 to showcase its latest innovations for the buildings construction industry and its wide range of construction materials and technologies.

The company is showcasing its turnkey solutions for the construction industry featuring its advanced building systems. The innovative solution offers a complete line of preengineered building systems including the design, manufacturing, and assembly of pre-fabricated structural and lightweight steel buildings.

TSSC further looks to strengthen its professional networks and connect with leading professionals from construction companies, HVAC business owners, and project

managers from building industry segments and discuss its top-level products and solutions.

“We are committed to manufacturing products using environmentally sustainable materials and operational processes and meet our customers’ demand following the highest international standards,”remarked Viken Ohanesian, Executive Director, Harwal Group. TSSC is also known across the region as the largest insulated panel manufacturer by volume, with an annual production of over six million square metres of insulated panels and an annual conversion of 100,000 metric tonnes of steel.

“TSSC has been awarded for its performance by leading organizations in the UAE and the region. As part of our commitment, we hope to reach out to our markets and provide new solutions for the sector,”commented Nazar Shahinian,Vice President, Business Development, Harwal Group.

ADVANCED WAREHOUSE AUTOMATION SOLUTIONS At Swisslog, our scalable future-ready automation systems and SynQ warehouse management software are designed to give you the insight and flexibility you need to meet your company’s changing demands. So they’ll make as much sense tomorrow as they do today.

DECEMBER 2018 17

Trident hosts conference for business associates in GCC, Africa Trident Group, a large, US$ 1bn diversified Indian business conglomerate with interests in logistics and supply

chain, in association with their UAE channel partner Alia Mohammed Trading Company, recently organised a

networking conference for their business associates and customers from the UAE, across the GCC and the African continent.

Addressing the conference, Naveet Jindal, CEO, Sales & Marketing, Paper & Chemicals Business, Trident Limited, and leader of the visiting delegation, traced the meteoric rise and evolution of the Group since its inception in 1990. ”We are a progressive company with an impressive track record with a current documented compounded annual growth rate (CAGR) of 30% and have ambitions plans to further expand and consolidate our growth in the region,”explained Jindal.

The Trident Group currently exports around 15% of its paper products to the Middle East, Africa and other geographies whilst over 90% of its bed and linen production is exported primarily to the United States.

1981-established Alia Mohammed Trading Company is a home grown business in the UAE and exclusive channel partners to Trident Limited for this market.

“Over the past four decades, our strategy and thinking has been consistent with Dubai Government’s vision sustainability and the green economy initiative,”observed Parvesh Kapoor, General Manager, Alia Mohammed Trading Company.

Dubai Carbon enables key energy player to enter the UAE market

Francesco Esposito, Sole Director of PLC System, one of the first businesses in Italy established with the specific purpose of

18 DECEMBER 2018

operating in the renewable energy sector, recently signed a joint venture agreement with Ivano Iannelli, CEO, Dubai Carbon,

signaling the increasing growth of Dubai Carbon’s portfolio of renewable energy partners.

The partnership between the two leaders in the renewable energy market will enable access to advanced systems required to generate renewable energy and in turn achieve the stringent targets set out in Dubai’s Clean Energy Strategy. PLC System will supply and install photovoltaic solar panel systems around Dubai.

“With more than 20 years of experience in the energy sector, we embrace the opportunity to work with regional renewable energy consultants, Dubai Carbon,” commented Esposito.

“We aim to increase use of renewable energy resources in order to meet the targets set by the Dubai Clean Energy Strategy whereby 7% of Dubai’s energy will come from clean energy sources by 2020, 25% by 2030 and 75% by 2050,”remarked Iannelli.

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AFRICA CONTINENT REPORT

Africa on a roll

O

n the whole, Africa’s infrastructure lags well behind the rest of the world, according to the report. There are however substantial differences between the regions.

Although South Africa, the biggest and strongest economy on the continent continues to show strong infrastructure capability, it has the lowest projected annual growth at 3% for the period 2012 – 2017 of the ten economies surveyed, according to recent International Monetary Fund (IMF) statistics.

On the other hand, Nigeria and Kenya have the highest projected rates at 6.8% and 6.2% respectively. While South Africa tops the list for having the most developed transport and logistics sector in

20 DECEMBER 2018

Sub-Saharan Africa placing it on a par with some of the world’s industrialised countries, logistics companies are looking to the rest of Africa for investment opportunities.

South Africa is also regarded the best performer in Africa when it comes to trade facilitation logistics and among the best in terms of transport infrastructure. These are some of the findings of PwC’s ‘Africa gearing up: ‘Future prospects in Africa for the transportation & logistics industry report issued recently.

“As Africa has risen to prominence as an investment destination over the past few years, so the role of transportation and logistics has taken on greater significance.

AFRICA CONTINENT REPORT

On account of its relatively low development rate and burgeoning population, the continent of Africa presents great potential for growth for its overall economy and particularly its energy, mining and agricultural sectors. That bodes well for the logistics, supply chain and transportation industries “Whether moving resources off the continent or bringing goods and services into its burgeoning economies, Africa’s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks,”says Klaus-Dieter Ruske, PwC Transportation & Logistics Global Leader.

The research was carried out by PwC together with Econometrix, South Africa’s leading economic consultants. The report focuses on ten of Africa’s leading developing nations: Algeria, Angola, the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa and Tanzania.

The countries were chosen based on their economic significance,

strong growth in recent years and their potential as transportation and logistics gateways.

Growth sectors drive demand for transportation and logistics services “There is a fast growing demand for the vast raw commodities available on the African continent. Africa has an abundance of oil, gas, and mineral resources and significant opportunities for agricultural expansion.

For logistics companies prospects in the retail and manufacturing sectors are also significant and lead from a period of sustained growth

DECEMBER 2018 21

AFRICA CONTINENT REPORT

Cars in a tunnel digged straight out the cliff on the way to Chapman’s Peak, Capetown, South Africa

22 DECEMBER 2018

AFRICA CONTINENT REPORT

experienced by many African countries,”says Andrew Shaw, PwC Transport & Logistics Leader for South Africa. Observers expect that African retail markets will grow substantially over the next decade.

Africa’s transport and logistics infrastructure “While none of the African countries we analysed comes close to the US and China, South Africa’s overall transport infrastructure scores almost identically to India’s, and better than Indonesia’s, lauded by many as one of the next economies to watch,”says Shaw.

South Africa is also ranked the best logistics performer on the continent, according to the 2013 Logistics Performance Index.

“Logistics strategists can’t afford to ignore the African market of the future. The global transportation and logistics industry can play a vital role in Africa’s efforts to gear up – building its infrastructure, enabling supply chains and distribution networks, providing mobility – and ultimately helping create jobs for its people.”

Intra-trade in Africa tends to be low in comparison to its global counterparts because of poor infrastructure and because most economies continue to be resource based. Currently only about 11% of Africa’s trade is with other African trading partners, compared to Asia where half the trade is between the countries in that region.

There are infrastructure barriers to trade. It takes a substantial

amount of time and money to cross borders and trade because of the poor logistics and transport infrastructure. Trade agreements are an imperative. African free trade zones and the removal of tariff barriers are key.

The Chinese Government and stateowned enterprises are also looking to Africa for hydrocarbons and some raw materials.

In return they are financing massive infrastructure projects in the sub-Saharan region. For example, China is supporting a host of infrastructure projects in South Africa, Tanzania, Ghana and Mozambique.

Gateways Gateways to connect Africa to the rest of the world are also important. There aren’t enough ports to handle existing traffic.

However, this is set to change, with plans in motion to build or expand five major ports: in the west at Barra do Dande and Lobito in Angola, and Lekki in Nigeria, and in the east at Musoma in Tanzania and Lamu in Kenya.

Many companies looking to expand into East Africa are looking at Kenya as their preferred entry point. Kenya is still one of the easier African countries in which to do business – it has flexible labour regulations and investment laws that allow foreign investors to receive the same treatment as local ones. But Kenya’s current transport infrastructure is inadequate to meet the country’s needs and significant improvement is required in the sector.

A lot of companies expanding into West Africa see Nigeria as a gateway into the region. The country ranks as the world’s fourth fastest growing economy, largely driven by oil exports. Nigeria is the largest market in the region, being home to almost 170 million of the 250 million people living in West Africa. 50% of the population is urbanised and the middle class is growing rapidly. This makes it extremely attractive for the retail and consumer sectors.

Vision Nigeria 2020 With its Vision 20:2020, Nigeria aims to be among the world’s top 20 economies by 2020. However, obstacles to the ambitious target remain in the form of inadequate infrastructure.“Notwithstanding these challenges, we believe that Nigeria will continue to be a leading destination for international investors and that this, in turn will generate strong potential for transportation and logistics providers.”

Ghana is also making strides to establish itself an important gateway to the West African market. Ghana has a favourable business environment. Trade and economic factors also favour growth.

The Organisation for Economic CoOperation and Development (OECD) expects Mozambique will become the fourth largest exporter of liquefied natural gas globally and second-largest in Africa after Nigeria. However, Mozambique’s growth potential remains constrained by poor transport infrastructure.

“Each country in Africa has its own value proposition. There is a strong need for the road, rail, air and ports transport networks in some economies to be improved.

Transport and logistics infrastructure has the potential to unlock the economic growth value of the continent. It can also provide businesses with great opportunities for growth and creation of employment,” notes Shaw.

Ruske admits that smart investing in Africa means investors need to understand key regions and local markets.

“If they make the decision to expand in Africa, they will need a solid longterm strategy. The continent needs better transport infrastructure, more connectivity across borders, and an improved business environment to reach its potential,”he concludes.

DECEMBER 2018 23

AFRICA CONTINENT REPORT

Economy: African economies have been resilient and gaining momentum. Real output growth is estimated to have increased 3.6% Fin 2017 and to accelerate to 4.1% in 2018 and 2019, according to a recent African Development Bank 2018 report.

Overall, the recovery of growth has been faster than envisaged, especially among non-resource–intensive economies. The world economy is also

Aerial view of Cape Town, South Africa

24 DECEMBER 2018

in better shape, with faster growth and buoyant capital markets.

With more than $100 trillion in assets managed by institutional investors and commercial banks globally and searching for good returns, African countries have an array of options, beyond domestic resources and foreign aid, to support their investments.

Challenges however remain, especially for the structural transformations that would create more jobs and reduce poverty by

deepening investment in agriculture and developing agricultural value chains to spur modern manufacturing and services.

Diversification Economic diversification is thus key to solving the continent’s problems, especially in the context of a challenging demographic structure. A first priority for African governments is to encourage a shift toward labor-absorbing growth paths.

AFRICA CONTINENT REPORT

A second is to invest in human capital, particularly in the entrepreneurial skills of youth, to facilitate the transition to higherproductivity modern sectors. Continued prudent macroeconomic efforts are needed to create the incentives and business environment for the private sector to play its role.

Macroeconomic policy should aim at ensuring external competitiveness to avoid real exchange rate overvaluations and get the full benefits of trade, improve fiscal revenue,

and rationalize public expenditure. To achieve these goals, the macroeconomic framework must blend real exchange rate flexibility, domestic revenue mobilization, and judicious demand management.

Also needed are massive investments in infrastructure, this year’s special theme. To take advantage of the great potential for infrastructure development, governments will have to put in place effective institutional arrangements

to manage the complex tasks of project planning, design, coordination, implementation, and regulation.

They should also focus on the soft side of infrastructure development—on tackling the big policy and regulatory issues, on training the teams assembling the financing packages, and on conducting constant research to keep up with the knowledge frontier according to Akinwumi A. Adesina, President African Development Bank.

DECEMBER 2018 25

ADVERTORIAL

Prescription for a Healthy Warehouse

Do you really know how well your warehouse is performing and do you fully understand the steps to take to get it running more smoothly? Essentially are you aware of how healthy your warehouse is? Now a group of dedicated IT professionals specializing in Warehouse Management Systems (WMS) are offering a service to inject a new lease of life into your supply chain and ensure it is running smooth and lean.

26 DECEMBER 2018

W

hen did you last do a warehouse health-check? How do you even ascertain the state of warehouse health? Now the digital doctor is in the house and help is at hand as experienced Westernacher consultants nurture Warehouse Management Systems back to health with system agnostic recommendations and process improvements, as Saudi Arabia’s Balsharaf Group testifies.

Keeping track of inventory, streamlining warehouse operations, avoiding scrapping due to product expiries, timely customer deliveries and ever-changing customer needs and demands are some of the pressing challenges that confront the consumer goods and retail industries at the moment.

Based in the capital Riyadh, the Balsharaf Group is Saudi Arabia’s leading producer

(manufacturing in Saudi Arabia, Egypt and India), distributor and retailer of fast-moving consumer goods (FMCG). They operate both in the country and the GCC for its own brands and as an agent for international brands and private labels.

The Balsharaf Group, founded in 1955, also owns a chain of food stores in the Riyadh area and distributes to over 16,000 outlets across the Kingdom. It has almost 100,000 sqm in storage space spread over 15 cities and handles over 20 million cartons annually for its customers.

However difficult Warehouse Management issues may have seemed, the Balsharaf Group was able to overcome these challenges with SAP’s cutting edge Extended Warehouse Management (EWM) platform for its logistics company, Salasel Al Emdad.

DECEMBER 2018 27

ADVERTORIAL

“Saudi Arabia’s logistics sector heavily depends on expat workers,”explained Sajid Riaz, Chief Information Officer (CIO, Balsharaf Group.“As they become more expensive to hire, there is a growing need to reduce costs and optimise digital systems, but how do you do it?,” asked Riaz.

Comprehensive solutions “It’s not an easy task to become more efficient and productive.You need a technical solution to help you optimise and automate so that you can cut down on manual work and wasted efforts; you need technical help to devise standards for each role, based on past performance data and solutions to measure if employees are delivering as per the standard – and that’s where EWM has come into the picture,”added Riaz.

“One of the biggest challenges the company faced during the process was finding the right implementation partner.

There are many players for SAP ERP implementations but expertise in solutions like SAP EWM is rare.“You need to make sure that you are working with the right implementation partner,”observed Riaz.

After thorough research and numerous meetings, the company chose the Heidelbergbased German multinational company Westernacher, which has over 40 years of experience in initiating and implementing warehouse management systems.

Westernacher Consulting, a niche player in the Digital Supply Chain space and a SAP Gold Partner, offers a ‘Warehouse Health Check’ to qualifying customers, which involves a study of the physical warehouse operations, identification of necessary measures for an optimal implementation of SAP Extended Warehouse Management Solution and a detailed analysis of industry specific and high-level processes.

How will the Westernacher Health Check benefit your organization?

• It creates a fair assessment of practical process improvements • It generates a benchmark to make a staged improvement plan • It ensures KPIs are tied in with organizational transformation goals • It forms a sustainable infrastructure for continued technological growth For a limited period, Westernacher Consulting, through its Dubai Office, is offering its Health Check assessment free of charge to two qualifying customers in the Middle East.

The five-day package consists of a review of your current issues, an onsite analysis of your warehouse operations, suggested areas for optimization, targeted areas for cost reduction, identification of necessary measures and preconditions for an optimal EWM implementation, potential ROI to aid the business case and thecreation of a sustainable framework to leverage the continual evolution of technology (eg. The Industry 4.0 and IoT).

If you want to know more about Westernacher’s ‘Warehouse Health Check’, please contact Mr. Rohith D’Souza on rohith.dsouza@westernacher.com or +971505100520.

28 DECEMBER 2018

“The approach by Westernacher was both professional and comprehensive. They were very involved in the process of finding solutions and dived headlong into it at the very outset,”affirmed Riaz.

Health check “The best initiative that Westernacher took is what they call a ‘Warehouse Health Check’ whereby they spent five days with us even before we signed a deal for the implementation. They offered an industry expert who visited our warehouse, studied the warehouse’s processes and design, and diagnozed the problems,” continued Riaz.

“They also tell you how EWM solutions will address these issues. This is a very smart move on their part because it allows you to assess their expertise and professionalism before the start of the project. It helps you to develop trust with your future implementation partner,” he explained.

Westernacher has been very patient with us. They understand what we’re trying to achieve as a business and in each and every step they have gone the extra mile to support us,”he maintained.

“Westernacher has been very co-operative and assisted us every step of the process.

They indeed went the extra mile to back us up,” noted Riaz.“The team worked diligently to guarantee that the system was rolled out perfectly and seamlessly the first time around with the intended benefits to ensure that their 3PL customers maintained trust in the new system,” he remarked.

HEALTHCARE-PHARMA CHAIN

Digital transformation takes Pharma beyond the pill

Collaborative deployment of digital enablers such as artificial intelligence, IoT, and blockchain aid in shift toward value-based care and logistics

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he pharmaceutical industry today is in a state of flux as it tries to maintain a delicate balance between the need for novel blockbuster drugs and the need for improved operational efficiencies in an increasingly competitive market space. This prognosis was derived by business consulting firm Frost & Sullivan in a recent report.

As healthcare is becoming increasingly democratized, patients are emerging as key decision makers – digitally enabled by the entry of non-traditional tech companies such as Apple, Facebook, and Google – pushing pharmaceutical companies to go beyond-the-pill.

However, in the midst of this chaos, there are pioneering companies offering solutions

30 DECEMBER 2018

that apply cutting-edge technologies to build digital convergence across the pharmaceutical value chain.

Frost & Sullivan’s recent intelligence, Digital Transformation In Pharmaceuticals Industry, 2018, Companies-To-Action, provides a detailed analysis of the key digital enablers, such as artificial intelligence, big data, internet of things (IoT), and blockchain that are bringing digital continuity across smart R&D, flexible manufacturing, connected patients, and digital pharmacy.

In similar vein, and as a consequence of a new ‘healthcare-pharma logistics order’, the case must also be made for logistics services providers (LSPs) to develop innovative warehousing and distribution solutions

that create shareholder value for clients by identifying and eliminating pain points within the domain of the healthcare supply chain continuum.

These essential products are required to be delivered rapidly and efficiently to patients and healthcare providers and institutions.

Logistics is thus indispensable to the growth and survivability of the industry.

Demands for this sensitive sector dealing with life-saving drugs and vitally required pharmaceutical products include delivering medicine, medical equipment and healthcare products across markets. It also includes the provision of a number of services to different areas of the pharmaceutical and healthcare sector including supply chain management.

Amenities include providing temperature controlled monitoring, storage, packing and multimodal global delivery. In such a time critical industry, choosing the right provider is essential to success.

This is an evolving industry and requires strict oversight and monitoring. We look up close and personal at how two Dubaibased companies closely identified with the pharma-healthcare logistics industry conduct their day-to-day businesses.

HEALTHCARE LOGISTICS

Pharma logistics to the fore

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Saba Khan, Head of QHSE, Tranzone UAE

Tranzone is hot on the heels of the cold pharma supply chain following partnerships with leading global and pharmaceutical companies and a unique one-stop approach

subsidiary of Banaja Holdings, the Saudi Arabian market leader in the healthcare sector in the Kingdom, industry certified and fully regulatory compliant Tranzone operates a modern, advanced 3PL warehouse in the Jebel Ali Free Zone.

To ensure efficiency and monitor performance, Tranzone centralises logistics, provides storage, inventory management, as well as purchasing and re-invoicing to the distributors, all at one convenient location.

Tranzone’s capabilities and knowledge are based on over six decades of experience in healthcare logistics and distribution in Saudi Arabia, the largest pharma market in the GCC. “Tranzone FZCO, located in the Jebel Ali Free Zone has been operational in the UAE since 2006 and collectively we have a current employee force of 350.

Our functions are primarily centred on the pharmaceutical warehousing and distribution business as well as in manufacturing and joint investment

models,”explains Saba Islam Khan, Head of Quality, Health, Safety and Environment (QHSE), Tranzone UAE, who joined the company in June 2014.

Service par excellent “We offer our customers logistics services, sea and airfreight services, contract logistics, overland transport as well as supply chain management solutions focused on the healthcare and life science sectors. We have the experience, expertise and capabilities to deliver. Our expansive 9200 sqm warehouse offers a range of value-added services that are customised to individual client needs,” continues Saba.

“From the first step of manufacturing of pharmaceuticals to the distribution of products, excellence is at the root and core of every stage of our operations,”asserts Saba.

“The progress of Tranzone is best assessed by our customers’ satisfaction with the services we offer, it is our core belief that the delivery of best quality of services is of utmost importance in the pharmaceutical business,”she remarks.

As a case in point, she points out Tranzone’s recent leap to streamline its

DECEMBER 2018 31

HEALTHCARE LOGISTICS

business processes with the help of wellknown, reliable QMS (quality management system) software, a major step forward in the field of pharma logistics.

Seal of approval Along with ISO certifications of 9001: Quality Management, 27001: Information Security & ISO 13485, medical devices are also now certified for Transported

32 DECEMBER 2018

Asset Protection Association and Facility Security Requirements, TAPA-FSR.“These certifications and compliances make Tranzone a secure and advanced storage and logistics service provider of the pharma sector,”assures Saba.

“Just as every industry has specific ethos around which their business are built, we too have precise principles and mission while operating efficiently and profitably

within this industry,” says Saba in response to a question on how the healthcare-life sciences logistics sector differs from other industrial sectors?

She believes timelines is one of the greatest challenges she faces every day in this industry as the business deals very closely with human health, wellbeing and lifestyle challenges. Other challenges include the influx of counterfeit drugs

HEALTHCARE LOGISTICS

flooding the market, governmental regulatory and policy changes and the volatility of geo-politics.

“Our products are essentially served to patients and we employ state of art resources to provide maximum attention to the quality of products, storage facility and delivery timelines as it may be a matter of saving someone’s life.

In short I can say we are a community-centric organisation,”she concludes.

DECEMBER 2018 33

HEALTHCARE LOGISTICS

Tranzone harnesses advanced Infor WMS for operational efficiency The upgrade to a more sophisticated and advanced system powered by Infor, a US-headquartered global enterprise software company, was necessary to maintain high quality 3PL services for healthcare in the region

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ranzone FZCO recently announced that SNS, an Infor global enterprise collaborator and partner and a provider of consultancies and solutions for supply chain management, has successfully managed a deployment and upgrade of the trademark Infor Supply Chain Execution-SCE (Warehouse Management System) at its advanced 3PL pharmaceutical warehouse in Jebel Ali, Dubai.

Tranzone, a subsidiary of Banaja Holdings, has partnerships with leading pharmaceutical companies around the world. Offering a unique one-stop approach to its customers, Tranzone services include warehousing storage, inventory management, as well as purchasing and re-invoicing to distributors, all at one centralised location.

34 DECEMBER 2018

Tranzone represents a wide range of multinational, pharmaceutical and healthcare companies. A recent accomplishment was the attainment of the class ‘A’ Certification for its Distribution Resource Planning (DRP) system, making it the only company in the Middle East to achieve such a notable distinction Considering the requirements to handle and monitor more than 10,000 pallets within three different storage areas depending on item categories, as well as the ability to manage the complexity of pharmaceutical fulfilment, the need for a best-of-breed WMS solution became a must.

In addition to implementing the Infor SCE solution, SNS consultants worked on reengineering the warehouse operational

flows with the objective of streamlining the inbound and outbound activities.

Ensuring streamlined operations The Infor Warehouse Management System allows Tranzone to track its stocks at various levels including production dates, expiry dates, countries of origin, and batch numbers, from receiving to shipping. All transactions and data are captured in the warehouse using wireless handheld devices enabling fast processing and minimum data entry errors.

The 3PL billing module was implemented and configured with complex billing contracts to calculate storage rates based on pallet count, location utilization, as well as various handling charges.

With the new upgraded solution Tranzone can run advanced put-away processes, mixing Euro and Standard pallets in fixed width locations across the entire facility.

“Infor SCE has many new features that will help us increase our operations’ efficiency, increase our teams’ productivity and provide more visibility to our management on the operations,”said Mr. Mohammed Malek, Head of IT at Tranzone.

“Implementing the Infor SCE solution for pharmaceutical products knowing the direct impact on people’s well-being is a challenge by itself,”observed Simon Kosseifi, Senior Manager at SNS.

COVER STORY: HELLMANN CALIPAR HEALTHCARE LOGISTICS

Offering a prescription for specialised healthcare logistics

Established in the UAE in 1999, Hellmann Worldwide Logistics’ rise in the region has been meteoric. In 2009, its healthcare logistics arm signed a collaboration agreement with an expert Indian company to offer specialised logistics solutions. There has been no looking back since

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lobally and regionally, the healthcare, pharmaceuticals, biotechnology and life-science sectors have moved centre stage in the recent past. As a spin-off, the specialist logistics and supply chain processes for these have not only gained momentum but have also increasingly come under the scanner.

To get the lowdown on the hot issues impacting the cold, healthcare and pharma chain where Hellmann MENA has made successful forays, Global Supply Chain conducted an exclusive interview with

36 DECEMBER 2018

Anna Mansurova, Commercial Director, Healthcare, Hellmann Calipar Healthcare Logistics, Dubai World Central (DWC).

Global Supply Chain (GSC): Explain firstly the equation between Hellmann Logistics and Calipar Integrated Services?

Anna Mansurova (AM): Hellmann Calipar

Healthcare Logistics is a strategic joint venture established in 2009 between Hellmann Worldwide Logistics of Germany and Calipar Integrated Logistics, part of the diversified Parekh Group of India. Together, we offer specialised healthcare solutions across the

region through our advanced Life Sciences Logistics Centre located in Dubai South.

Hellmann Calipar Healthcare Logistics is the first company to invest in the dedicated healthcare facility in the region, driven by the purpose of providing product integrity throughout the regional healthcare supply chains utilising Dubai as the hub.

GSC: Describe the partnership between these two entities? How do they complement each other?

AM: Hellmann Calipar brings together two

family-owned logistics brands, with over 147 years of logistics experience and over three decades of specialised knowledge in the healthcare industry. With family values deeply embedded in the culture of both companies, it is a symbiotic union based on the shared concept of offering a service for the humanity.

Hellmann Worldwide Logistics brings to the partnership extensive contract logistics expertise, freight forwarding network, spanning over 162 countries, industry focused approach through Hellmann’s Healthcare Vertical dedicated team and competence centres.

Hellmann’s team takes care of the complete healthcare solutions covering operational, quality compliance, customer service, technology, logistics and value added services.

Calipar Integrated Logistics, through its parent company the Parekh Group, brings 37 years of experience in pharma distribution in India. Calipar provides knowhow and has invested in the buildings of our healthcare distribution hub. Following the success of the solution, Hellmann Calipar Healthcare Logistics, more than doubled its original capacity.

The total size of the facilities today stands at 26,500 sqm, making it the largest 3PL managed dedicated healthcare facility in the UAE. Our customer base extends across pharmaceutical, bio-pharma, medical devices,

COVER STORY: HELLMANN CALIPAR HEALTHCARE LOGISTICS

Anna Mansurova, Commercial Manager-Healthcare, Hellmann Calipar Healthcare Logistics DWC-LLC, Dubai

DECEMBER 2018 37

COVER STORY: HELLMANN CALIPAR HEALTHCARE LOGISTICS

diagnostics, surgical, ‘cosmeceuticals’ and consumer healthcare sectors.

GSC: Overall, what services and facilities does Hellmann Calipar Healthcare Logistics offer the healthcare logistics sector in the GCC region? Provide us an overview of your mandate and scope of work?

AM: Hellmann Calipar Healthcare Logistics is

committed to maintaining product quality and integrity throughout the supply chain. We are a customer-centric solution, this means that we collaborate with the life science, healthcare industry and regulators to provide innovative and efficient logistics solutions.

38 DECEMBER 2018

Our vision is to be one of the leading supply chain partners of choice to the life science and healthcare industry. To be known as a flexible and quality-driven organisation promoting transparent solutions in all markets to support and exceed today’s and tomorrow’s healthcare supply chain requirements.

With this in mind, we developed range of services to support logistics needs of regional healthcare supply chains, such as management of upstream and downstream logistics flows, compliant product handling— receipt and order preparation, storage in three temperature zones, handling and

assessment of temperature recording devices, product quality releases, route risk assessment, handling of passive and active shipping solutions, inventory an shelf life management, recalls, handling of nonconformities, end to end visibility.

Our key differentiator is expertise in value added services. Examples include phase one serialisation, automatic and manual labelling solutions, redressing and postponement.

Through eight years of regional experience and working with over 20 multinational customers, Hellmann Calipar developed deep understanding of all product types, be generics, high-value biopharmaceuticals,

Based in Dubai, Anna Mansurova heads commercial activities for Hellmann Calipar Healthcare Logistics.

Her journey with Hellmann started in 2008 in the freight forwarding division and further transitioned into the Healthcare with the launch of Hellmann Calipar Healthcare Logistics, where she was appointed the first customer service employee.

Over the course of 10 years she has held multiple roles within the organisation. She established the customer service department, developed departmental structure, processes and performance measures, led and mentored multicultural team, developed long-lasting relationships with customers and business partners, won new businesses, led and consulted number of projects and cost improvement initiatives.

controlled drugs, medical devices, in-vitro diagnostics, surgical devices, implants or consumer medical devices.

GSC: What sets HCHL apart? What are your advantages?

AM: We pride ourselves in our flexibility,

quality of services, IT solutions and developing a culture of continuous improvement.

Being a family owned organisation we are very lean and operate with an entrepreneurial spirit. Customers are at the forefront of our mind. Every requirement is approached from customer’s prospective,

resulting in a range of different, yet innovative and very relevant solutions.

With Hellmann Calipar’s Comprehensive Quality Management System and training programs, the quality of service delivered is guaranteed. We know this has a direct impact on reducing level of errors and omissions and ultimately on the patient safety.

Correct product handling, packing, transportation and risk management approach significantly reduces the probability of damages and losses in the operation.

Hellmann’s drive to continuously improve and innovate ensures the ongoing enhancement of efficiency and quality we deliver.

GSC: Hellmann’s Quality Management System is based on the global healthcare guidelines and further complemented by local quality management system tailored to the customer needs.

AM: On IT systems front, Hellmann Calipar

is steadily investing and follows an approach of utilising proprietary as well as innovative third party systems, providing needed flexibility, compliance, visibility and speed.

For example, our Warehouse Management System is tailored to the healthcare industry and operated on a separate partition, validated to the GAMP 5 standard.

What sets Hellmann Calipar apart is our

DECEMBER 2018 39

COVER STORY: HELLMANN CALIPAR HEALTHCARE LOGISTICS

Continuous Improvement Culture, the drive for sustainable and well-thought solutions.

The Continuous Improvement Programme, as we call it, is a management philosophy that focuses on creating lean processes and people engagement. This in turn, transforms into innovative processes, leadership capabilities and enables efficient, transparent supply chains.

GSC: How are you currently performing; how is 2018 looking and how does that compare with 2017?

AM: We have been successful in establishing

collaborative long term relationships with our customers who see partnership with Hellmann Calipar as a long term journey.

Coupled with Dubai’s leading position as the logistics gateway into the region, our contracts have been renewed.

2018 has been a very positive year from HCHL from a commercial perspective with clear growth whilst operationally bringing on new niche services to add to our portfolio of service offerings.

GSC: How is the healthcare-life sciences logistics sector different from other industrial sectors?

40 DECEMBER 2018

The Pharmaceutical and Medical Equipment sector amongst six strategic sectors that will transform the economy. The UAE local pharma manufacturing capacity is planned to increase to 36 sites by 2020, focusing on production of generic medicines

AM: Every day we are touching someone’s life. This awareness translates into the mindset of providing the greatest care for the products. Eventually this comes down to people. At Hellmann Calipar, we ensure we hire, retain and grow the right talent.

Our employees undergo a great amount of training, technical and industry specific, their performance is continuously assessed.

In the spirit of Hellmann’s DNA, its first people first. With the right people, we are very well positioned to execute on industry requirements. Due to the product nature, compliance and security are paramount.

Collaboration among all the supply chain stake holders is a must.

GSC: How significant is the Pharma-Cold Chain logistics sector within the wider Hellmann Worldwide Logistics Company?

AM: Healthcare Logistics is one of the four

core industry solution within Hellmann Group. Through our centres of excellence, we provide global standards, consistency and industry know-how into the organisation.

Global life science account teams leverage extensive industry knowledge and work with teams locally to offer best suited

Supply chain, IT, transport, packaging or warehousing solution.

When looking at Pharmaceutical space, the trend of branded drugs going off patents, translates into the laser focus on development of innovative products. In Hellmann’s customer base, these drug pipelines will be coming out predominantly from the biopharma sector with requirement for +2C to +8C storage temperatures.

Take the example of cancer treatment. The efficacy of the drug directly determines patient’s life. There is no room for error, tolerance for permissible temperature deviations is very low.

As a logistics service provider we must ensure product integrity. Route risk assessments and route qualifications are the key when developing the right transport solution.

On other hand, the shift to biopharma translates into the low volume and high value dynamics for 3PLs. This is where service provides needs to look beyond monetary stimuli and keep in mind the higher purpose of the drug.

GSC: What are your expansion plans in the region?

AM: Further to maintaining leading position

in the UAE Healthcare logistics, Hellmann has been very successful in developing healthcare solutions in the Kingdom of Saudi Arabia. With extensive local manufacturing bases, we offer management of material flows in and out of manufacturing facilities, storage of the finished goods and final mile distribution into the country.

In terms of value added service, ‘good manufacturing practice’ (GMP) activities has already commenced with labelling of the finished goods. All services performed using Hellmann’s WMS system and quality assured through global and local Quality Management Systems.

GSC: What challenges confront the industry in the region?

AM: Challenges in healthcare supply chains

remains around product integrity, visibility and traceability. Cost efficiencies of supply chains are becoming ever important with the move towards generic space and increasing price pressures.

On other hand, Governments have been working intensively on strategies to diversify away from dependence on oil. UAE Industrial Strategy 2030, for example, defines the

Pharmaceutical and Medical Equipment sector amongst six strategic sectors that will transform the economy. The UAE local pharma manufacturing capacity is planned to increase to 36 sites by 2020, focusing on production of generic medicines.

Furthermore, UAE is very well positioned to transform into the leading regional Medical Tourism Hub. Speed of this transformation will depend on further development of the infrastructure and technology, attracting the right talent and further advancement of private public partnerships.

GSC: What opportunities do you foresee for the company going forward?

AM: We will continue to capitalise on

Hellmann’s expertise and capabilities in value-added services, supporting customer’s strategies and adopting to changing environment. We remain open to the opportunities to further explore IT solutions in the new technology space.

We will continue to support customers in achieving cost efficiencies, through optimisation of the processes, value creation and outsourcing strategies.

DECEMBER 2018 41

DUBAI CUSTOMS

Technological innovations facilitate passenger traffic at Dubai airports, says Dubai Customs supremo

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Dubai Customs Chief inspects facilities at Dubai Airport

42 DECEMBER 2018

he Director of Dubai Customs, Ahmed Mahboob Musabih recently visited the Passenger Operations Department at Dubai International Airport to review the facilities provided to passengers. He congratulated the inspection officers and thanked them for their hard work and vigilance.

“Dubai Customs is the first protection line and its first priority is to ensure safety and security of the emirate’s borders and entry points. It also plays an important role in supporting the national economy by attracting more foreign investments and facilitating trade” he added.

Statistics from the Passenger Operations Department on the first ten months of 2018 revealed that the Department has dealt with more than 21mn passengers coming into Dubai, and checked around 30mn suitcases from around 167,000 flights. These statistics included terminals 1, 2, and 3 at Dubai International Airport (DXB), and Al Maktoum Airport (DWC).

Dubai Customs has recently launched iDeclare. The new app which allows UAE travellers to check customs rules, declare items before arriving and calculate duty that they will have to pay on goods they bring to the country.

“Following the vision and directives of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai we launched iDeclare which reduces the passengers’ waiting time from 45 minutes to only five minutes,” declared Musabih.

He said making passengers happy and satisfied is a priority. For that Dubai Customs employs the most advanced AI technologies to ensure speed and accuracy in all facilities including the check-in counters, baggagescreening facilities, passport counters, especially with the UAE preparing intensively to host Expo 2020, he added.

At the end of the tour Musabih expressed satisfaction over the high-end services being provided to passengers.

Subscribe today December 2018 Issue 54

November 2018 Issue 53

October 2018 Issue 52

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

SUSTAINABILITY Sensitivity and Sensibility

Cargo Insurance

RISK PROTECTING AGAINST

Mercedes Benz Trucks Powering on

Frost & Sullivan A view from the helm

COLD CHAIN Today’s hot button issue

Globe Express Services

MAN Truck & Bus

Going Global

For the long haul

•GSC_November_2018_Cover.indd 1

11/15/18 15:14

Combilift

Lifting businesses

•GSC_October_2018_Cover.indd 1

Westernacher Balsharaf

Tranzone

Technology revolutionising WMS

Aviation

Uplifting lives

10/5/18 11:58

Kuehne + Nagel UAE

Streamlining Operations

In expansion mode

•GSC_December_2018_Cover.indd 1

12/10/18 17:09

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KUEHNE + NAGEL INAUGURATION

Kuehne + Nagel inaugurates a new warehouse in Dubai South

Erwin Wittemaier, President, Kuehne + Nagel Management Middle East and Africa

Thorsten Pook, Managing Director, Kuehne + Nagel, UAE and Oman

New facility marks new milestone for company to commemorate its 40th anniversary in the Middle East

44 DECEMBER 2018

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uehne + Nagel, the international transport and logistics company, is taking great strides in the Middle East where it enjoys a long presence spanning over four decades. The company, a pioneer in the region, first established its offices in 1978 and then set up a regional hub in Dubai South in 2006. Its network has since grown exponentially.

It recently opened its new warehouse extension in the Logistics District in Dubai South as part of its continued expansion in the UAE as a fitting tribute on its 40th anniversary.

HH Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority (DCAA) and Chairman of Dubai Aviation City Corporation (DACC), led the inauguration of the new 10,000 sqm warehouse. Also in attendance were Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation (DACC); Mohsen Ahmad Al Awadhi, Vice President Logistics District, Dubai South and Majid Saif Ahmed Al Ghurair, CEO, Al Ghurair Group The new warehouse is intended for highvalue industries that the company serves in the UAE and the region, furthering boosting Dubai’s global competitiveness through

HH Sheikh Ahmed Bin Saeed Al Maktoum with Kuehne + Nagel and Dubai South officials at the inugural ceremony

sophisticated infrastructure and facilities in the logistics sector.

The right growth conditions Through the Logistics District’s range of real estate solutions and a facilitative approach to meeting international and national regulations, Kuehne + Nagel UAE has successfully expanded its facility serving key sectors such as aerospace and other high-tech industries.

This strategic investment has also enabled the integrated supply chain company to further grow its pharmaceutical and healthcare operations in line with international guidelines in governance, risk and compliance standards.

DECEMBER 2018 45

KUEHNE + NAGEL INAUGURATION

This move further reflects the attractiveness of the Logistics District as an ideal environment for regional expansion and a strategic location to connect to the global markets with its easy access to various ports of entry, including air, sea and land,” commented Khalifa Al Zaffin, Executive Chairman, DACC and Dubai South Dubai South, the fastest growing free zone in the region, continues to attract small and large companies owing to its strategic location, well developed infrastructure and

Thorsten Pook, Managing Director, Kuehne + Nagel, UAE and Oman.

Here to stay: Long-term vision Speaking exclusively to Global Supply Chain on the sidelines of the inaugural and commemorative ceremonies, Thorsten Pook traced the spectacular growth of the Swissheadquartered logistics services provider in the region since its founding in Dubai in 1978 as the transport provider for Dubai Aluminium Company (DUBAL).

Erwin Wittemaier addressing invitees at the inaugural ceremony

incentives for business setup. The Logistics District is fast becoming the supply chain capital for international markets, given the convenience, proximity and easy access to seaports, airports and major roads.

“The extension of our warehouse campus in Dubai South Logistics District underlines our strong commitment to the UAE and the Middle East. We pride in providing outstanding logistics services to our customers. We recognize the tremendous growth potential of the Middle East and situating our operations in Logistics District is the ideal choice to drive growth for our customers and significantly contributing to the efficiency in their value chain,”noted

46 DECEMBER 2018

According to Pook, the new warehouse facility is spread over an area of 10,000 sqm, built with one main chamber as the general storage area and a mezzanine chamber. The new building is also equipped with the latest warehousing technology and has 10 docking stations and one drive in door with a ramp for aerospace materials and large engines.

The new amenity marks the completion of Phase 3 of Kuehne + Nagel’s expansion spree in the region following the upgrades to Phase 1 (16,000sqm) in 2008 and Phase 2 (15,000sqm) in 2012. Pook noted with pride that the company was the first entrant to go operational in Dubai South and a pioneer

in Dubai Logistics City.“With 41,000sqm of functional space we have advantages of scale. We leverage our experience and expertise to provide a comprehensive suite of services to a mix of clients in the region comprising consumer products, high-tech, aviation, aerospace and pharma industries,” explained Pook.

He further asserted that despite challenges, new business is driving growth and the company is in expansion mode as the current warehouse extension demonstrates.“We still have land for an additional 40,000sqm of potential storage space as the forerunner to Phase 4 growth,”added Pook.

In reply to another question he affirmed that the vision was to grow the company in the region and to make Dubai the logistics hub for the Middle East.“We are bullish and positive about this region and are committed to investing in this geography because we foresee long and short term growth,”he observed.

In a separate interview, Erwin Wittemaier, President, Kuehne + Nagel Management Middle East and Africa, was also optimistic about the company’s prospects in the region.

“We are encouraged by the spurt in our business and continue to attract new, bluechip international companies to our customer fold,”he noted.

Further expansion is also on the cards admitted Wittemaier as part of the Phase 4 development, although remarked it was premature to provide any details at this juncture.

“Meanwhile, we are making technological and IT advancements in the manner we conduct our business and provide endto-end sophisticated solutions for the logistics and supply chain industry. We will stay the course and continue to provide quality solutions for our clientele,”assured Wittemaier, who oversees the company’s operations in 21 countries in the Middle East and the continent of Africa where the company is making many forays.

Kuehne + Nagel UAE has continued to grow in the region since its inception in 1978. With the new warehouse, the company has now extended its capability to meet the growing market demand in the coming years.

If current trends are any indication, Kuehne + Nagel is poised for even greater growth in the coming years as it consolidates its presence in the region.

GEFCO and Almajdouie Logistics create a joint venture in Saudi Arabia

GEFCO (left) and Almajdouie officials (right) at the deal signing ceremony

GEFCO, the European leader in automotive logistics and Saudi Arabia’s Al Majdouie Logistics have announced the formation of 50-50 joint venture in automotive logistics

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he relationship between the two powerhouse companies began in January 2018 when they partnered to provide finished vehicle logistics services to Almajdouie Auto (MMC), the importer of Hyundai in Saudi Arabia. In its second phase, the joint venture plans to offer a full range of finished vehicle services to the Saudi Arabian market and will officially launch operations in the first half of 2019.

“We are very pleased to announce a 50-50 joint venture agreement with Almajdouie Logistics,” commented Luc Nadal, CEO of GEFCO Group.“The new joint venture will benefit from Almajdouie’s strong position in the market and GEFCO’s experience in providing smart and flexible supply chain solutions to customers around the world. This partnership also complements GEFCO’s growing presence in the Gulf, a region in which we have been delivering supply chain excellence for a number of years,” he continued.

“We are delighted to partner with GEFCO Group to serve the automotive logistics needs of the Saudi Arabian market,” remarked Baheej Al Biqawi, CEO of Almajdouie Logistics.“Through this partnership, our two groups will be able to leverage each other’s competitive strengths, enabling us to provide new options and cost-efficient solutions to our customers in the region,” he added.

GEFCO Group is the European leader in automotive logistics and a top 10 global partner in multimodal supply chain solutions. The Group is present in 47 countries in more than 300 destinations.

The GEFCO Group reported a turnover of €4.4 billion in 2017.

A pioneer in its industry for over 50 years, Almajdouie Logistics is a leading integrated supply chain provider in the Middle East and specifically in Saudi Arabia. The Group offers a wide range of services, including transportation, freight forwarding, terminal handling, automotive logistics, and warehousing. It owns, operates, and integrates its assets, which comprise an expansive fleet of vehicles and trailers, and two million sqm of terminal and warehousing facilities.

DECEMBER 2018 47

KIZAD

spotlights purpose-built Construction City

LtoR-Riad Bsaibes, Stylianos Tsoktouridis, Julian Skyrme and Edwin Lammers in a panel discussion

KIZAD Construction City is customised and provides incentives and multiple services for companies in the construction and related sectors

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halifa Industrial Zone Abu Dhabi (KIZAD) showcased its expanded product offerings available at KIZAD Construction City, a dedicated cluster for the manufacture, import, storage and distribution of construction materials in the UAE. The new offerings were introduced at an event hosted by KIZAD themed ‘Let’s Build the UAE Together’.

Following the launch of KIZAD Construction City earlier this year, the 500,000sqm of allotted land available for open yard storage facilities was sold out within six months.

Responding to market demand, the next phase of KIZAD Construction City offers pre-

48 DECEMBER 2018

The panel discussion in progress

built warehouses and Light Industrial Units (LIUs), which are suitable for manufacturing, processing, assembling, and fabrication work.

Additional land has been allocated for open yard storage areas of any scale, bonded areas with easy duty arrangements and industrial and logistics operations.

KIZAD’s construction cluster is purpose built to accommodate an array of construction and building materials related activities; from project-based storage facilities to small-scale light manufacturing businesses and mega projects.

KIZAD Construction City is situated within easy reach of both Abu Dhabi and Dubai in KIZAD, one of the largest industrial and free trade zones in the Middle East and a subsidiary of Abu Dhabi Ports. It benefits from being cost-competitive and interconnected with tech-driven infrastructure and connectivity by sea, road, and air, with rail links being developed through Etihad Rail.

“The UAE construction sector remains resilient despite market changes and challenges caused by external factors. We have expanded our product offering space at KIZAD Construction City in response to this demand. We look forward to welcoming

Amazon’s acquisition in early 2017 of UAE online retailer Souq. com indicates a significant move into the region for the US-based retail giant, which is one of the world’s largest logistics companies

FREE ZONE ENTITY

Invitees confer at the event

Mansoor Al Marar delivering the welcome speech

new occupants,”remarked Samir Chaturvedi, CEO, KIZAD. Mansoor Al Marar, Business Development Manager, KIZAD, welcomed the delegates and guests at the event and emphasised the benefits and opportunities for businesses locating there and return on investment.

Subsequently, Salah Alkhatib, Business Development Manager, KIZAD, also made a presentation on opportunities for businesses in KIZAD for the construction sector.

Speaking to Global Supply Chain on the sidelines of the Big 5 Conference, Salah Alkhatib elaborated on the merits of the KIZAD Construction City Phase II where work is ongoing in full swing.“Advantages at this purpose-built facility, among many other amenities, include open yard storage areas with minimal utility needs; serviced logistic and industrial lands and pre-built warehouses and pre-built Light Industrial Units,” explained Alkhatib.

More than 70 C-level partners, customers and key industry leaders in the construction and building materials sectors were invited to the event, which KIZAD hosted during the Big 5 construction exhibition. The gathering included a panel discussion, which was

moderated by Richard Thompson, Editorial Director, MEED. Panel members included Julian Skyrme, Director-Commercial, Abu Dhabi Ports who earlier did a presentation and highlighted the advantages of doing business with Khalifa Port; Edwin Lammers, Vice President – Commercial and Business Development, KIZAD; Riad Bsaibes, President & CEO, Amana Investments and Stylianos Tsoktouridis, General Manager, TALEX – Taweelah Aluminium Extrusions Company.

Since its launch in April 2018, several major construction companies have already set up shop in KIZAD Construction City. In October 2018, Amana Contracting & Steel Buildings established a 50,000 sqm storage and logistics facility to house and distribute construction products to large-scale industrial, modular and commercial projects across the UAE and wider region.

Businesses in KIZAD Construction City also benefit from access to the fast-growing and semi-automated Khalifa Port, which serves 25 of the world’s major shipping lines with connections to 70 global ports. More connections are expected with the addition of the upcoming COSCO Shipping Ports (CSP) terminal.

DECEMBER 2018 49

Honeywell demonstrates technology capabilities for the regional oil and gas industry

A top company official explains how Honeywell Connected Plant can help achieve higher levels of performance, safety, and address the industrial skills gap

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isitors to ADIPEC 2018 got a close look at new Honeywell technologies that are transforming the industry through data insights and analytics.

The company showcased a range of its safety, security and Honeywell Connected Plant solutions – everything from a software-as-aservice data capture platform, to augmented and virtual reality training solutions.

130-year old Honeywell has worked with almost every major oil and gas company

50 DECEMBER 2018

in the Middle East for the past 60 years, Honeywell has demonstrated how its suite of Connected Plant applications can enhance processes to achieve higher performance, safety, and profitability levels.

“In a truly connected world, technology has become about outcomes, including driving productivity and increased savings,”observed Norm Gilsdorf, President for High Growth Regions, Middle East and Russia at Honeywell.

“For the oil and gas industry, it has become

Miroslav Kafedzhiev, Vice President & General Manager- Middle East, Turkey, Central Asia & Africa for Safety & Productivity Solutions, Honeywell

TECHNOLOGIES FOR THE OIL & GAS SECTOR

provides a good platform for the company to showcase its expertise and capabilities for the regional and international energy sector.

“Honeywell’s strengths lie in our ability to innovate and provide solutions. We are committed to a comprehensive strategy and offer to resolve and address immediate and long-term energy challenges and increase efficiency, decrease costs, increase reliability and security, improve facility management and optimisation through data and analytics, meet carbon footprint and sustainability goals, and turn energy into education, notes Kafedzhiev.

He cited a number of parameters where Honeywell has reinforced its safety credentials. These included Honeywell’s new industrial fire and gas offerings, featuring SIL2/3 certified controllers, equipped with redundancy and HOT swap, which provide high reliability and easy maintenance. crucial to unlock the incredible knowledge and capabilities of workers by equipping them with the skills and tools needed to optimize knowledge capture, sharing and retention through the use of data,”he added.

Miroslav Kafedzhiev, the Dubai-based Vice President & General Manager Middle East, Turkey, Central Asia & Africa for Safety & Productivity Solutions, Honeywell, spoke exclusively to Global Supply Chain on the sidelines of ADIPEC 2018, which he believes

Safety First On the industrial safety front he affirms that the company’s gas and smoke detection solutions keep personnel and facilities safe, while boosting productivity, and lowering compliance and administrative costs. He asserts that Honeywell Safety Products provide high quality personal protective equipment and safety gear designed to protect workers across all types of industries.

“Honeywell has immersive competencies.

This cloud-based simulation offering uses a combination of augmented reality (AR) and virtual reality (VR) to train plant personnel on critical industrial work activities, empowering them to directly improve plant performance, uptime, reliability and safety,”he notes.

He further observed that Thermal IQ enables maintenance engineers and plant managers to more effectively monitor and manage their thermal process equipment, minimising unplanned downtime and maximising uptime.

“The Uniformance Cloud Historian software-as-a-service cloud hosting solution for enterprise-wide data capture, visualization and analysis helps customers improve asset availability, optimize processes and increase plant uptime,”he continues.

He also mentions the Personal Gas Safety measure, a solution that integrates with Honeywell’s leading plant control system to protect workers and speed emergency response in case of hazardous leaks or worker injury.

He also points out to ‘Intelligent Wearables’, hands-free, wearable technology that allows industrial workers to more safely, reliably and efficiently accomplish their tasks in the plant or the field. It uses a head-mounted visual display that responds to voice and brings live data, documents, work procedures, as well as health and safety information into view and can connect field workers with remote experts in real time.

Move advanced technologies “Furthermore, Honeywell’s ‘Measurement IQ for Gas’ selection provides measurement control and meter accuracy by transforming metering operations with 24/7 real-time condition-based monitoring,”’ remarks Kafedzhiev who oversees a vast geographical swathe comprising over 80 countries with a collective population of over a billion people.

“The safety of assets and very importantly of personnel is key and connected technology, connected world, augmented reality and digitization is vital,”to ensure safety in the working environment he comments.

“At Honeywell, we leverage the power of IIoT through advanced software to connect the entire plant operation – from workers to infrastructure – enabling it to perform more intelligently and eliminating unnecessary cost, downtime and complexity. Honeywell has been supplying key technologies to support the global oil and gas industries for over 100 years,”he emphasizes.

The Honeywell Connected Plant integrates the three core pillars of Connected Processes, Connected Assets, and Connected People.

Through this approach, Honeywell ensures that operators have the ultimate tools to access and analyse data, in real time, to best understand the condition of their plant, people, and assets, making operations more reliable, profitable, and secure than ever before, he stressed.

Kafedzhiev also indicated that Honeywell manufactures protective gear and its safety solutions cover a wide range of industries and business verticals including oil & gas; power utilities; wind energy; nuclear; construction and manufacturing, So what is the next big thing for Honeywell?“There is no one single big thing, we are constantly developing, constantly evolving and progress at Honeywell comes in small incremental steps with increasing regularity,”he concludes.

DECEMBER 2018 51

ECONOMY WATCH

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ccording to ICAEW’s latest Economic Insight report, economic recovery in the Middle East is slowly gathering momentum after last year’s slump, when economic growth slowed to an eight-year low at only 0.9%.

Economic Insight: Middle East Q4 2018, produced by Oxford Economics, says the same factors that slowed down economic growth in 2017 are now contributing to the overall economic recovery. Oil prices have hit their highest levels since the end of November 2014 in recent weeks at more than US$ 80pb, oil production has been elevated in the GCC compared to last year and the fiscal stance has been expansionary in 2018 across the GCC in contrast to 2017.

As a result, the GCC governments are expected to benefit from a combination of higher oil prices and elevated oil production levels, contributing positively to oil sector growth, fiscal and external balances. The global crude oil price is forecast to average US$ 80 per barrel in Q4 2018, retreating slightly to US$ 76.5 per barrel in 2019.

PMI Index slump On the other hand, indicators for the non-oil sector are also showing positive signs after a slow start in 2018. The PMI index, which measures the health of the non-oil private sector, slumped amid the introduction of the 5% VAT in Saudi and UAE in January 2018, but recovered thereafter and remains in expansionary territory.

Similarly, credit to the private sector, which measures bank lending to the private sector and a proxy of domestic economic activity, has accelerated in the top three GCC economies (Saudi Arabia, UAE and Qatar) in Q2-2018.

“Supported by higher oil prices, oil exporters in the Middle East region will experience visible improvements in external and fiscal balances in 2018–19. Non-oil activity is also expected to continue its recovery, supported by a slower pace of fiscal consolidation,” remarked Mohamed Bardastani, ICAEW Economic Advisor and Senior Economist for Middle East at Oxford Economics.

52 DECEMBER 2018

Middle East economies still oil dependent Oil continues to dominate and shape the macroeconomic outlook for Middle Eastern economies, despite major economic diversification efforts, says a leading accountancy and finance body

UAE’s non-oil sector drives economic growth in 2018 The economic outlook for UAE is set to accelerate to 2% this year, up from the eight-year low of 0.8% in 2017, supported by rising oil prices, regional economic recovery, higher public spending and investment and a gradual build-up in business momentum.

The oil sector is expected to remain a drag on growth in 2018, as overall production has remained limited in the first half of 2018 at

an average of 2.85 million barrels per day (bpd), down by almost 2% from the average of 2.91mn bpd in H1-2017. However, oil production increased in Q3-2018 by nearly 0.14mn bpd to 2.99mn bpd, higher than the 2.85mn bpd seen in the first half of 2018, due to tighter global oil market conditions as countries brace for the effects of US sanctions against Iran.

Oil production is expected to pick up further by the year end, subject to market conditions, as the UAE continues to expand its production capacity to 3.5mn bpd by the end of this year. Overall, despite the recent acceleration in oil activity, the oil-sector is expected to decline slightly by 0.3% in 2018.

Non-oil sector on the ascendancy In contrast, the non-oil sector, representing close to 70% of the UAE’s economy, confirms that the economy has been recovering from last year’s slowdown. Non-oil activity, as evident by the Central Bank’s non-oil augmented economic composite indicator, has accelerated by 3.8% year-on-year in Q1 2018, marking the fastest expansion in eight quarters. The non-oil sector is expected to grow by 3% in 2018 and by 3.6% in 2019.

Other proxy indicators also paint a similarly positive picture. The PMI index has remained in expansionary territory this year, while credit to the private sector continued to trend upwards over the last few months, reaching a 19-month high in August at 5.4%.

The non-oil sector will be stimulated as the UAE government recently announced reforms to support the economy. Dubbed Ghadan 21 (or Tomorrow 21), this entails an AED 50 billion (US$13.6 billion) stimulus plan that includes various measures to prop up investment and facilitate doing business in the country.

“The UAE economy has been adapting well to a prolonged decline in oil prices since 2014. For instance, the introduction of VAT in 2018 has been an historic milestone and is expected to substantially strengthen and diversify government revenues in the coming years,”noted Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA).

ECONOMY WATCH

Michael Armstrong, ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA)

DECEMBER 2018 53

AIR CARGO

Air dominates in GCC cargo online searches UAE and Kuwait local cargo search dominated by air, Saudi Arabia dominated by land

54 DECEMBER 2018

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CC online searches divide opinion on land and sea cargo options, according to recent research from SEMrush, a ‘software as a service’ company based in Philadelphia that sells marketing analytics software subscriptions.

Trends during the last three years show sharp contrasts in local online search queries for the type of cargo transport sought, along with the related products and destinations for these shipments, differed in the Kingdom of Saudi Arabia, United Arab Emirates and Kuwait.

The majority of cargo searches on the award-winning digital marketing suite in the UAE were related to air cargo at 94% of online search volumes, versus sea cargo at 4% and land at 2%. The top four countries most mentioned in UAE cargo search queries were India, KSA, UK and France.

KSA’s online searches for cargo put land services in the lead with 62%, followed by air at 25%, and sea at 13%. Internet cargo searches within the Kingdom mostly highlighted demand for domestic cargo services inside the main cities including

AIR CARGO

Riyadh, Jeddah, and Dammam. The most sought-after product related to cargo searches were car related, closely followed by those seeking the fastest and cheapest cargo services to Egypt and from the USA and UAE. Meanwhile the pattern in Kuwait revealed that air cargo was the most sought after at 50% of searches, with land cargo coming close with 40% and sea cargo at 10%. Cars also featured prominently in cargo searches in Kuwait.

“Search data can tell marketers in the GCC a lot about the public’s needs and preferences.

These can be very different from the needs of corporations as we can see from the cargo search patterns across its market. The fact that the UAE has positioned itself as the region’s cargo gateway is a strong pull factor that attracts the majority of searches in the country specifically looking for air cargo,”commented Adam Zeidan, Corporate Communications Manager for SEMrush in MENA region.

Air cargo facilities have been expanding rapidly at both Abu Dhabi and Dubai international airports with approximately 3.6 mn tons of air cargo handled by the UAE in 2017, according to reports from both Emirates’ Chambers of Commerce. In Saudi Arabia, where most online cargo searches relate to land freight services, experts estimate there are approximately 750,000 light and heavy commercial vehicles in operation in the Kingdom, of which the vast majorities are used to carry goods not passengers.

DECEMBER 2018 55

OIL & GAS-ADIPEC 2018

Focus on attracting and retaining talent in the Oil and Gas Industry Inclusion and diversity were hot button issues discussed at the especially convened Energy Conference at ADIPEC 2018 where diversity of thought and human capital, and importance of inclusive policies in the workplace were put on the spotlight

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il and gas companies are approaching human capital with a broader framework, aiming to foster inclusive workspaces and diverse resources, bridging the gender disparity in recruitment, mentorship and promotion.

According to research by Accenture, the oil and gas industry faces a critical human capital shortage in the coming years. As a prime example, estimates show the supply of technical professionals in the United States upstream sector fell by around a quarter between 2014 and 2016, while demand is likely rise by around 80% between 2017 and 2025.

56 DECEMBER 2018

Current recruitment rates into the industry will struggle to meet that need, with only around 2% of graduates considering oil and gas as a top career choice.

To ensure they have access to the skills they need, companies must look beyond their traditional talent pool – such as placing greater emphasis on appealing to women and millennials, who are currently underrepresented. A study by the Boston Consulting Group (BCG), has found women make up just 22% of the oil and gas workforce, one of the lowest proportions of any major industry sector.

Women welcome to the workforce The gap is especially pronounced in oilfield services, where they comprise only 15% of the workforce. The proportion also falls with seniority, dropping from 25% of oil and gas middle management, to just 17% of the senior leadership.

Women tend to be employed in office and administration roles, rather than technical professions that offer the most common pathway to senior positions.

“We have made enormous progress, but we still have a long way to go,”said Mae Al Mozaini, Manager, Regulatory Affairs, Saudi

Aramco.“Women’s participation is essential to ensuring oil and gas has enough talent to drive growth in the coming years. This is why we need to focus on inclusion,”she continued.

To drive this change, this year’s edition of the world’s leading oil and gas event, the Abu Dhabi Petroleum Exhibition and Conference (ADIPEC), has repositioned its distinctive women’s programme to create the new Inclusion and Diversity in Energy Conference.

Gender, diversity, and minorities’ representation The conference, which took place at ADIPEC 2018, brought together inclusion and diversity advocates, industry leaders and decision-makers, offering a full day of discussions, debates and practical experiences. Locating the event within a powerful global knowledge-sharing platform, ADIPEC, with its proven record of hosting leading CEOs, government ministers, and industry experts, ensure the discussion is placed at the forefront of industry decision-making.

The Inclusion and Diversity in Energy Conference explored myriad topics

OIL & GAS-ADIPEC 2018

including identifying and addressing cognitive and cultural bias patterns in recruitment and advancement of employees across geographies, businesses and different career levels.

“Government-private organisation partnerships play an extremely important role in shaping any sector; be it their policies, their outlook or their roadmap,” said Omar Al Qurashi, Director – Corporate

Communications and General Services, Supreme Council of Energy, and a 2018 Inclusion and Diversity in Energy Advisory Board Member.

Key panelists joining this year’s event included: Isabel Hametner, Senior Vice President - Human Resources, OMV; Natalia Shehadeh, Senior Vice President and Chief Compliance Officer, Technip FMC; Omar Ahmed Al Qurashi, Director - Corporate Communication and General Services, Supreme Council of Energy; Mae Al Mozaini, Manager – Research and Advisory, Saudi Aramco; Sara Hassett, Director – Diversity, Inclusion and Culture, Baker Hughes, a GE Company.

Also in attendance were Ellen Chin,Vice President Human Resources, Weatherford; Mansoor Mohamed Al Hamed, Head of New Business Development, Mubadala Petroleum; Hege Kverneland, Corporate Vice President & Chief Technology Officer, National Oilwell Varco; Nour Al Maskari, Head of Strategic Human Capital, Masdar; Emeliana RiceOxley,Vice President-Exploration, Petronas; Saudamini Dubey, Managing Director, Middle East and Turkey, Accenture Digital; and Ghaliba Al-Hinai, Head of Omanisation, Petroleum Development Oman (PDO) among others.

DECEMBER 2018 57

MARITIME INSURANCE

Captain Abdullah Darwish Al Hayas, General Manager of Maritime Transport Affairs at the Federal Authority for Land and Marine Transport addresses the conference

Khamis Juma Buamim, CEO, Gulf Navigation, addresses the conference

GCC marine insurance market valued at US$ 26bn

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he Dubai Marine Insurance Conference, the region’s unique event focusing on the regional and global maritime insurance sector, recently concluded its activities on with a call for establishing a GCC or even a Gulf-Asian insurance group that specialises in insurance and reinsurance operations in the maritime sector, including ships, vessels, cargo operations, transport of goods and oil and petrochemicals to and from the region.

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The call comes within efforts to reinforce stability in the levels of insurance prices and to retain the largest share of insurance premiums locally or in the Gulf regionally.

Ocean transportation accounts for up to 90% of the world’s trade.

The value of the UAE’s investments in the ports and marine industries sector exceeded US$ 66bn between 2014 and 2017, representing about 35% of the total investment in the Middle East sector, amounting to US$ 190bn. The state ports and

Khalid Meftah, Director, Business Development, DMCA addresses the conference

Marine insurance experts call for a regional insurance alliance at the recent Dubai Marine Insurance Conference attended by leading marine insurance experts, marine safety and security experts, port authorities and professionals from the region’s maritime sector airports handled goods worth US$ 628bn in 2017, of which US$ 360bn dollars is the share of ports, according to data from the World Trade Organisation (WTO).

The conference’s keynote address was provided by Khamis Juma Buamim, CEO, Gulf Navigation Holding and organised by Anchor Marine, one of the region’s leading providers of shipping services.

The conference focused on factors affecting maritime trade security, Marine and equipment, cargo shipping and risk

MARITIME INSURANCE

A section of the audience at DMIC

A panel discussion at DMIC

DECEMBER 2018 59

MARITIME INSURANCE

Delegates pose for a picture at the Dubai Maritime Insurance Conference

management insurance, and marine electronic risk management and insurance.

“As a critical engine for the national economy, the marine insurance sector needs to be addressed more frequently to make sure that it adapts with the rapid developments of the marine industry, the objective that has been achieved successfully by Dubai Marine Insurance Conference,”Buamim noted.

During his keynote speech, Buamim pointed out that more than 90% of marine insurance operations are carried out outside the region through non-local insurers, which means a significant loss of premiums; moreover the situation does not reflect the strength and reality of the national economy and active trading movement.

He also pointed out to the importance of the existence of insurance institutions or a group capable of carrying out large insurance operations to provide the national economy with insurance premiums commensurate with the size of the UAE’s strong economy, which is characterised by a stable investment environment, economic and political and can continue to grow.

Forging partnerships The conference witnessed an announcement of partnership between International

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Institute of Marine Surveying (IIMS) and Maritime Sky that specialises in Marketing and media strategy, to support the (IIMS) 6th biennial conference in Dubai, which brings attention to the UAE as a leading maritime hub.

Speakers list at the conference that took place onboard of Queen Elizabeth 2 in Dubai, included Captain Abdullah Darwish Al Hayas, General Manager of Maritime Transport Affairs at the Federal Authority for Land and Marine Transport; Oscar Lavender, Rolls Royce Marine Vice President and Walid Al Tamimi, General Manager and Executive Assistant to the Vice President, Emirates Maritime Arbitration Centre.

Khalid Meftah, Director of Business Development at the Dubai Maritime City Authority (DMCA), disclosed that the total marine insurance premium in the UAE insurance market rose to a whopping AED 1.1bn in 2017, higher by 10% over the previous year. It also represented a 3.5% increase in the total property and liability insurance premiums during the same period.

He added that the market share of the national insurance companies accounts for a remarkable 71% of the local marine insurance market against 29% for foreign companies, providing once again its

importance in the progress of both the domestic maritime industry and the country’s entire national economy.

Changing landscape Capt. Gamal Fekry, Managing Director, MC Ship Management in Dubai observed that the maritime insurance landscape witnessed a lot of changes, as more and more shipping and oil vessels companies are focused on proactive actions to reduce the high cost of marine insurance.

He advised them to adopt risk management systems that would minimise the faults that could cause risks in earlier stages. Some other giant companies have developed self-insured schemes as there are no big enough insurance companies that can handle the volume of business. He added that the volume of marine insurance in the Gulf region accounts for US$ 26bn annually.

IIMS is a non-governmental 27-year old professional institution that has its membership base in over 92 countries, which makes it one of the most diverse global institutes of its kind.

The event was attended by around 500 marine business experts and marine insurance professionals over a two-day period.