GLOBAL SUPPLY CHAIN JANUARY 2021

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January 2021 Issue 76

ENHANCING THE BUSINESS OF LOGISTICS

Al-Futtaim HINO HINO Trucks Full Range Dynamic business partner Bridgestone

Rolling in the change

Etihad Rail Powering on

Hope Consortium Virus containment


RAISING THE BAR WELCOME TO SMARTIST, OUR NEW HIGH-TECH FACILITY IN ISTANBUL - THE LOGISTICS CENTRE OF THE WORLD. WE'RE ALSO RAISING THE BAR FOR ENVIRONMENTAL RESPONSIBILITY AND CUSTOMER-FOCUS, MOVING TOWARDS OUR GOAL OF BECOMING THE WORLD'S LEADING AIR CARGO BRAND.

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     


Vroom, vroom… revving up for the New Year SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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

There is no doubt in anyone’s mind that 2020 has been a year like no other. It can best be characterized in a word as challenging, overwhelming, or overpowering perhaps, but a ‘time of testing’ for all nevertheless. So as we usher in the New Year, it is our collective hope that 2021 will bear good tidings, hope and optimism for both our health and the economy. Global Supply Chain kicks off the year with a cover story on Al Futtaim-Hino, a powerful partnership that is driving the commercial vehicle market with an eminent global truck brand. We have an exclusive with Ramez Hamdan, the company’s Managing Director, as our lead feature. Separately, but staying with vehicles, we also engage with Stefano Sanchini, Regional Managing Director, Bridgestone Middle East and Africa (BSMEA), for a company that is steadily breaking off from its mould as an eminent global tyre manufacturer and transforming itself to a holistic, comprehensive mobility solutions provider. Vaccine Logistics has come into its own and becoming a defining and determining factor in the ongoing fight against the pandemic. The UAE’s especially created Hope Consortium is ensuring that the country, given its prized logistics, storage and distribution capabilities, remains a major hub for vaccine distribution in the region and its vast hinterland. Other logistics players are also integral in our collective efforts to combat the virus, and we turn the spotlight on some of the majors in the region and globally. A series of thought leadership articles and contributions from eminent logistics and supply chain professionals are grist for our content mill as we weigh in and deliberate on major issues gripping the industry. Add to this our latest news roundup, updates, OpEds and a lot of input to stimulate and satiate the readers’ quest for gainful insights in the logistics and supply chain arena. Happy reading!

Happy reading! Malcolm Dias Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

Editor malcolm@signaturemediame.com

JANUARY 2021 3


January 2021 Issue 76

20 Al Futtaim-HINO 06 NEWS

46 DHL Express 48 Tristar Group

30 Bridgestone MEA

50 Hope Consortium 51 RAFED-ADP

A dominant force in the UAE’s commercial vehicles market

Up to date news of the Global Suppy Chain industry

Making the transition to holistic mobility solutions provider

36 Bain & Co. 38 ADNOC

Two senior partners on how to forge resilient supply chains Forging new partnership with international oil majors

40 Dubai Customs 42 DCCI-UAE Logistics Review 43 GPCA 44 Etihad Rail Major accomplishments in 2020

A recent virtual meet examines Dubai’s logistics potential GPCA preps for its Annual Forum in Dubai in February 2021 Railworks have commenced for expansion in Al Dhafra region

4 JANUARY 2021

DHL Global Connectedness Index 2020 gives UAE top marks Liquids Transportation company has expanded its Oman operations

Delivering hope for pandemic immunization RAFED and Abu Dhabi Ports collaborate for vaccine distribution

52 SAL Group

Saudi Arabian Logistics is readying for vaccine transportation in the Kingdom

54 Thought Leadership: Tom Craig 2021: In search of the new normal for Supply Chain Management

57 Infor Predictions 58 Contribution-Joe Hepworth 60 Swisslog Autostore Top technology predictions for 2021

2021 Forecast for trade and investment in the Middle East

Wholesaler doubles output with AutoStore empowered by Swisslog


Concurrent Show Guangzhou International Cold Chain Logistics and Equipment Exhibition 2021 Guangzhou International Automated Packaging and Packing products Exhibition 2021 Guangzhou International Logistics and Supply Chain Exhibition 2021 IMS-a CeMAT ASIA event 2021 & IIoT Show 2021

www.chinalet.cn

China import & Export Complex,Guangzhou

25-27 May 2021

LET-a CeMAT ASIA event 2021


DP World and Senegal ink agreement to develop Ndayane port n DP World, and the Government of Senegal, recently signed agreements for the development of a new deepwater port at Ndayane, approximately 50km from the existing port and near the Blaise Diagne international airport. After discussions in the capital Dakar between Senegalese President Macky Sall and Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, it was agreed that it would be more appropriate for Senegal’s development to carry out a more ambitious project and build an entirely new port outside the city. Agreements were signed between Alioune Ndoye, Minister of Fisheries and Maritime Economy of Senegal; Aboubacar Sedikh Beye, Director-General of the Autonomous Port of Dakar (PAD), and the visiting DP World’s Chairman, paving the way for the development of the new port. DP World Dakar SA, will not only develop and operate the 300-hectare (ha) container terminal but also finance, design and develop the land and maritime infrastructure of the new 600ha port. The first phase of this project will see an investment by DP World Dakar of US$ 837mn, which will make it the single largest private sector investment in the history of Senegal and is expected to be

followed by the second phase of investment of US$ 290mn. Phase 1 will include a new container terminal with 840m of the quay and a new 5km marine channel designed to handle 366m vessels and capable of handling the largest container vessels in the world. Phase 2 will create 410m of additional container quay and further dredging of the marine channel to handle 400m vessels.

Technology Innovation Institute and Virgin Hyperloop announce R&D partnership in the UAE n The Technology Innovation Institute (TII), the dedicated ‘applied

research’ pillar of Abu Dhabi’s Advanced Technology Research Council (ATRC), and Virgin Hyperloop (VH), recently announced their collaboration on research, innovation and localization of the futuristic transportation method. The agreement was signed by Faisal Al Bannai, Secretary General, ATR and Sultan Bin Sulayem, Group Chairman and CEO, DP World and Chairman of Virgin Hyperloop, during a virtual ceremony. Transporting passengers and goods at speeds exceeding 1,000km/h, hyperloop is a completely new form of transport with the ambition to become the most sustainable means of mass transportation. Technology Innovation Institute and Virgin Hyperloop will explore research for hyperloop systems on TII’s premises, including pulsed power and magnetic levitation technologies and material sciences that are key to developing the next-generation transport system. “Advanced technology allows us to progress every aspect of life and collaborations with industry partners like Virgin Hyperloop help leverage it for the greater good,” remarked Al Bannai. “We are one step closer to ushering in a new era of ultra-fast, 6 JANUARY 2021

Sultan Bin Sulayem Group Chairman and CEO, DP World and Chairman, Virgin Hyperloop sustainable movement of people and goods,” commented Bin Sulayem. Hyperloop is a cutting-edge technology that will drive entrepreneurship and leadership in the transportation space through the partnership with TII. This in turn will provide opportunities for economic growth through the creation of a strong R&D hub in line with the country’s vision. “Abu Dhabi’s thriving technology sector will provide a perfect location as we look to advance hyperloop technology and foster successful public-private partnerships with key organizations within the ecosystem,” noted Harj Daliwal, Managing Director, Middle East and India, Virgin Hyperloop. The partnership not only creates an opportunity for a research hub but also provides Abu Dhabi with a first mover advantage on a passenger and cargo system. A hyperloop network in the Arabian Gulf region could move up to 45mn passengers per year, powered by solar panels covering the tube, a press communiqué indicated.


Red Sea Gateway Terminal wins Sustainability Award

Dubai Customs gets GInI Innovation Lab Accreditation n The Dubai Customs’ Future Center for Research

n Red Sea Gateway Terminal (RSGT) was recently named winner of the 2020 Sustainability Award at the 17th Annual Seatrade Maritime Awards, Middle East, Indian Subcontinent & Africa, hosted virtually from Dubai. RSGT was selected in recognition of ’the exceptional initiative that supports sustainable maritime commerce’ by the judging panel of independent industry experts. “We remain dedicated to pursuing environmentally sustainable operations at Saudi ‘Arabia’s largest container terminal, through our CSR programme, constant investment in new, low emission and efficient equipment, procedures, and the extensive training of our personnel,” stated Jens Floe, CEO, RSGT. RSGT is currently commissioning two new latest-generation electric-powered STS cranes and 10 new technologically advanced hybrid-rubber-tyred gantry cranes (RTGs) delivered in November, into the facility’s container handling operations. The use of electric cranes eliminates emissions of CO2 and other greenhouse gases resulting from diesel-powered cranes; the hybrid-RTGs switch from diesel to battery power depending upon usage needs, also reducing diesel-related emissions, while improving fuel efficiency. RSGT has also established artificial reefs just outside the port area in support of biodiversity and marine life. Over the 30-year term of the concession agreement signed last year with the Saudi Ports Authority (Mawani), RSGT will be investing US$ 1.7bn in new terminal infrastructure and equipment to improve operational efficiencies and reduce greenhouse gases and other emissions, as the terminal expands annual container throughput capacity to 8.8mn TEU.

and Development has received Accredited Innovation Lab (AInL) certification from the US-based Global Innovation Institute (GInI). The organization is now the first Customs administration in the world to get such a global accreditation. GInI granted Innovation Lab accreditation to Dubai Customs based on a number of assessments which covered strategy, innovation support, design, infrastructure, security, resources, and innovation maturity. GInI operates the world’s most recognized, comprehensive, and professionally-managed evidencebased innovation certification program for individuals and corporations. “Dubai Customs’ steadfast commitment to innovation and service advancement has made us one of the leading, most distinguished customs administrations in the world,” commented Ahmed Mahboob Musabih, Director General, Dubai Customs. “This accreditation reflects the success of our approach to application of new innovation concepts, which fosters a supportive and stimulating environment for innovation within the organization,” remarked Dr. Hussam Juma, Director of Service Innovation and Enterprise Architecture, Dubai Customs. Value-added and transformational innovations supporting DC’s digital transformation strategy such as cross-border e-commerce platform, Al Munasiq smart application, robotic auditing, predictive risk engine and others which use Industry 4.0 technologies of blockchain, artificial intelligence, and big data are GInI accredited.

JANUARY 2021 7


Emirates SkyCargo transports first batch of vaccines for Dubai Health Authority n Emirates SkyCargo has notched yet another milestone by flying in Covid-19 vaccines manufactured by PfizerBioNTech to the UAE for the first time for the Dubai Health Authority (DHA). The vaccines were transported from Brussels on an Emirates flight. “In recognition of their immense contribution for the wellbeing of everyone in the UAE, it has been our honour to transport these vaccines free of charge on our flight,” affirmed HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Group. “By transporting COVID-19 vaccines across our extensive network, we look forward to helping people around the world get back on their feet after the devastating impact of the pandemic,”

asserted Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Emirates SkyCargo has also established a global Pharma Corridors programme working with ground handlers and local airports at major pharma origin and destination stations for enhanced cool chain protection. The current pharma network

covers over 30 cities across the world including Brussels. More recently, Emirates SkyCargo has set up the world’s largest dedicated airside storage and distribution hub for the vaccines in Dubai with the capacity to store up to an estimated 10 million doses of vaccine at the 2-8C temperature range at any one point of time.

Bahri signs Training Services Agreement with NMA n Bahri recently announced the inking of a training services

agreement with the National Maritime Academy (NMA) to train and upskill the Saudi youth in the maritime sector. The agreement further consolidates Bahri’s prominent role in local talent development in line with the Saudi Vision 2030. The agreement was sealed in Bahri’s headquarters in Riyadh by Bahri CEO Eng. Abdullah Aldubaikhi and NMA Managing Director Capt. Turki Alshihri, in the presence of officials from both parties. “The cooperation with NMA was driven by the academy’s experience in the field of human resources development,” commented Eng. Aldubaikhi, noting that this extensive experience allows for providing training programs that guarantee achieving remarkable results that meet Bahri’s expectations. “NMA offers fully integrated advanced and well-proven training programmes that bridge the gap in skills in the maritime sector and prepare highly qualified ‘job-ready’ talent pool,” noted Capt. Alshihri. Under the agreement, NMA will provide the training programs in its training facility in Al Jubail, or any other NMA’s approved academy / training institute in the Kingdom of Saudi Arabia. 8 JANUARY 2021

Bahri CEO Eng. Abdullah Aldubaikhi and NMA Managing Director Capt. Turki Alshihri sign the deal in Riyadh The successful completion of the programmes will be a basic requirement for the employment contract between Bahri and the trainees. The training programmes of NMA, a non-profit national training academy, are supported by the Saudi Human Resources Development Fund (HRDF) and approved by the Transport General Authority (TGA) and UK’s Maritime and Coastguard Agency (MCA).


Khalifa Port’s South Quay now operational

n The first shipment, carrying bauxite, destined for Emirates Global Aluminium (EGA)’s Al Taweelah alumina refinery, called at Khalifa Port’s South Quay, marking the commencement of operations at the newly launched facility. The bulk carrier, Alfred Oldendorff, the first in several shipments to the South Quay for EGA, was swiftly followed by two large general cargo consignments, making use of the recently completed first phase of South Quay, offering a total of 650m of quay wall comprising two berths and 37,000sqm of terminal yard.

EGA will use the South Quay, in addition to its own nearby quay, which began receiving Capesize vessels loaded with bauxite in 2019. The onset of the South Quay’s operations at Abu Dhabi’s dedicated flagship deepwater terminal is the latest in a string of major achievements for the port’s owner and operator, Abu Dhabi Ports. “Khalifa Port’s upgrade and expansion not only enables dramatic growth in our bulk and general cargo handling capacity, but further serves to demonstrate Abu Dhabi Ports’ firm commitment in supporting the individual

needs of new and existing customers,” stressed Saif Al Mazrouei, Head of Ports Cluster, Abu Dhabi Ports. The introduction of the South Quay, together with the adjacent Khalifa Port Logistics (KPL) development will dramatically boost Khalifa Port’s ability to handle any type of cargo and service a wide variety of customers. In addition to the South Quay Phase-1 completion, approximately 800 m of quay wall and almost 175,000sqm of land within KPL has been handed over in advance of the project’s full Phase-1 conclusion in Q1-2021.

Etihad Airways introduces charter flight services n Etihad Airways has expanded its business with the launch of

charter and special flight services. Fully customizable, business and leisure guests can choose from a variety of flight options including a dedicated passenger service, cargo only flight or a combined passenger and cargo package, the carrier said via a recent press communiqué. “While the pandemic continues to impact the commercial aviation industry, charter flights provide a convenient alternative to travel, providing customers with the flexibility to choose the departure time, destination and routing,” commented Alex Featherstone, Vice President Network Planning & Alliances, Etihad Airways. This year, Etihad has flown over 500 charters including passenger, government and humanitarian flights. Over 3.8mn tonnes of cargo have been transported for the government of Abu Dhabi as part of the national aid programme using charter services. Etihad Wellness, the airline’s health and safety programme, ensures the highest standards of hygiene are maintained on charters flights at every stage of the customer journey, the press statement continued. JANUARY 2021 9


Maersk enters partnership with Novo Nordisk on global cold chain logistics

dnata becomes first ground handler to complete green aircraft turnaround in the US

Maersk reefer containers with pharma products

n AP Moller-Maersk recently announced the signing of a logistics agreement with Danish pharmaceutical company Novo Nordisk from 2021. The three-year agreement on cold chain logistics covers transportation including ocean services and inland logistics, the maritime carrier revealed in a press release. The pharma producer chose Maersk’s services to reduce transportation carbon footprint the press statement continued. “Transporting pharmaceuticals on a global level is a demanding task with various complexities that require flexible and resilient supply chains as well as digital and eco-friendly solutions. This achievement showcases the rapid transformation of AP Moller-Maersk as a modern end-to-end logistics company with fully controlled assets,” commented Vincent Clerc, Executive Vice President and CEO, Ocean and Logistics, AP 10 JANUARY 2021

Moller-Maersk. One of the largest pharmaceutical companies in the world, Novo Nordisk has chosen Maersk´s ECO Delivery to reduce the carbon footprint in transportation. The initiative uses sustainable bio-fuel to power selected Maersk-vessels and helps Novo Nordisk to make progress towards its ambitious sustainability goals. “Our ambition of achieving zero environmental impact is a cornerstone of our aspiration to be a truly sustainable business. We consider AP Moller– Maersk to be the right global distribution partner to secure the steady, environmentally friendly delivery of our highvalue shipments and we look forward to the collaboration,” remarked Rune Sylow, Corporate Vice President, Strategic Sourcing, Novo Nordisk. The global agreement will be effective from1 April 2021, the press note concluded.

n dnata has achieved a significant milestone in its

sustainability journey by successfully executing a green turnaround in the United States. dnata ensured a smooth and safe turnaround of a VivaAerobus Airbus A320 aircraft using only zero-emission ramp ground support equipment (GSE) at New York-JFK Airport’s (JFK) Terminal 1. During the green turnaround, dnata’s skilled team transported baggage with electric baggage tractors to the aircraft and applied electric conveyor belts to offload and load baggage and cargo. dnata’s professionally trained staff pushed the aircraft back from the gate with a Mototok electric, remote controlled towbarless pushback tractor, positioning it ready for taxi and departure. dnata is the first ground handler to have successfully completed a green aircraft turnaround in the United States. “We continue to enhance our operations to deliver the highest possible value for our partners by being an employer of choice and socially responsible in our communities,” commented David Barker, CEO of dnata USA. “This initiative clearly demonstrates our commitment to the environment, we are proud to be the first at New York JFK,” remarked Steve Rowland, Executive Director, Terminal One Group Association (TOGA). “We are firmly convinced that sustainability should be at the centre of the air sector operations,” observed Juan Carlos Zuazua, CEO, Viva Aerobus.


ADNOC awards Eni and PTTEP the first offshore exploration block n The Abu Dhabi National Oil Company (ADNOC) recently announced the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Eni Abu Dhabi, a wholly-owned subsidiary of Italy’s multinational energy company, Eni, and PTTEP MENA, a wholly-owned subsidiary of Thailand’s PTT Exploration and Production Public (PTTEP). The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC). It follows ADNOC’s award earlier in December 2020 of an onshore block to Occidental, highlighting how ADNOC continues to leverage and strengthen its strategic partnerships to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources. The exploration concession agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO; Claudio Descalzi, CEO, Eni and Phongsthorn Thavisin, CEO, PTTEP. “This concession award reinforces ADNOC and Eni’s growing partnership across our value chain and deepens our relationship with Thailand’s PTTEP, one of the key markets for our crude oil and products,” affirmed Dr. Al Jaber. Under the terms of this agreement, Eni will operate

ADNOC-ENI-PTTEP signing ceremony the exploration phase of the concession, and PTTEP and Eni will collectively hold a 100% stake in the exploration phase, investing up to AED1.51bn (US$ 412mn) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3. “This further strengthens our relationship with our valuable partner PPTEP. Offshore Block 3 represents a challenging opportunity that can unlock significant value thanks to exploration and appraisal of shallow and deep reservoirs,” commented Descalzi. “This concession award offers another great opportunity for PTTEP to strengthen collaboration with world-class strategic partners Eni and ADNOC,” remarked Thavisin. Offshore Block 3 covers an offshore area of 11,660sqkm northwest of Abu Dhabi city.

IATA appoints new RVP for Africa and Middle East n The International Air Transport Association (IATA) announced that Kamil H. Al-

Kamil Al-Awadhi, Regional VP, IATA

Awadhi will be appointed IATA’s Regional Vice President for Africa and Middle East (AME), effective 1 March 2021. Al-Awadhi succeeds Muhammad Albakri who will become IATA’s Senior VicePresident for Customer, Financial, and Digital Services (CFDS), also effective 1 March 2021. Most recently, Al-Awadhi was CEO, Kuwait Airways, a responsibility he held from November 2018 through August 2020. That capped a 31-year career at Kuwait Airways during which his positions included Deputy CEO and Chief Operating Officer. At IATA, Al-Awadhi will lead the Association’s activities across AME from its regional office in Amman, Jordan. He will report to the IATA Director General and CEO and join IATA’s Strategic Leadership Team. “I look forward to getting started at IATA. Like all regions, AME will need a strong air transport industry to kick-start the economic recovery from the pandemic. The priority to revive aviation is clear and IATA is at the center of this effort,” commented Al-Awadhi. A national of Kuwait, Al-Awadhi holds an MBA in Aerospace Management from the Toulouse Business School. JANUARY 2021 11


Turkish Cargo transports the historical ‘Cybele’ statue back to its home country n Turkish Cargo recently brought the 1700-year old statue of the mother goddess ‘Cybele’ dated back to the 3rd century AD back to its home. The statue was trafficked abroad back in 1970. Performing with the utmost care for the shipments of historical artifacts, Turkish Cargo brought the Statue of Cybele, the mother goddess which is believed to be the symbol and guardian of abundance, back to the lands it belongs after nearly 60 years. The Statue of Cybele, which was brought to Istanbul from New York in the second week of December with the sponsorship of Turkish Airlines following extensive legal efforts of the country’s Ministry of Culture and Tourism. Upon

arrival it will be exhibited in the Istanbul Archeology Museum for a set amount of time. In the recent years, Turkish Cargo carried historical artifacts from Topkapı and Dolmabahce Palaces to Japan, contributed to the return of the missing pieces of the Gypsy Girl Mosaic to its homeland.

The carrier has also in the past carried more than 50 historical masterpieces from Paris Louvre Museum to Tehran and successfully transported the Sarcophagus of Hercules of the Roman Era from Geneva to Istanbul with its specialized teams of experts working meticulously on these sensitive and significant operations that require the utmost care.

CWL announces contract logistics growth in Europe, Middle East and Africa n Crane Worldwide Logistics (CWL) revealed recently that it would further extend its contract logistics footprint within Europe, the Middle East, and Africa. The company, headquartered in Houston, Texas, has announced the opening of new warehouse facilities in the British Midlands; Dublin, Ireland; and Johannesburg, South Africa, and additional space in Tilburg, the Netherlands. The company also confirmed that it has recently opened its doors in Qatar, with a new Doha location. “Due to the urgent need for flexible global supply chain partners, we have seen considerable demand for additional warehouse space in the region. Given our integrated logistics service offering, we are growing with our clients,’ commented Jason Stretton, who recently rejoined the company as Regional Vice President, EMEA. ‘Supply chain partnerships are key to success in the post-COVID environment, and a company of our size and scope can provide the flexibility needed in this changing environment’, remarked Keith Winters, CEO, Crane Worldwide. 12 JANUARY 2021


Phase-2 development of Abu Dhabi’s Delma Port completed

FODEL expands Last-MileDelivery network across five GCC countries n FODEL’s pick-up and dropn Abu Dhabi Ports has recently announced the completion of the

second phase of development at Delma Port. Abu Dhabi Ports is leading the developments of Al Dhafra’s premier multi-purpose port and other key maritime infrastructure in the emirate. Aimed at extending the port’s capability to benefit both the region and the local community’s recreational, fishing and commercial needs, the project will significantly facilitate the movement of landing craft vessels, passenger ferries, pleasure boats, and fishing boats through the new facility. A key focus of the second phase of the development was the construction of a dedicated 315-metre quay wall, which together with several modern onsite facilities, were designed to specifically satisfy the demands of Delma Island’s and Al Dhafra region’s maritime community. Capable of accommodating up to 60 boats, the expansion project will allow the region’s recreational and commercial vessels to easily transfer and relocate from the old Delma Port to the new port. “Projects such as the ongoing development and evolution of the new Delma Port are vital to facilitating the economic growth of Delma Island and Al Dhafra region,” commented Captain Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports. “With the conclusion of the second phase of the development at Delma Port, we have not only provided Al Dhafra’s maritime community with access to modern facilities, but have also built it a new home from where it can continue to grow its business and thrive,” remarked Saif Al Mazrouei, Head of Ports Cluster – Abu Dhabi Ports.

off (PUDO) services, as an alternative to home delivery for e-commerce parcels, has now expanded its services in five GCC markets. Following its successful launch in the UAE in 2018, consumers across Saudi Arabia now have the option to collect their e-commerce parcels from a location most convenient to them, any time they want. The tech startup has also launched its operations in Kuwait, Bahrain and Oman as part of its plans to set up a base across all GCC countries thereby providing a suitable pick-up and drop-off solution for its clients in the region. It turns local merchants into pick up points to enable online shoppers to collect their parcels – any time they want from their local store. Retailers also benefit from increased footfall and revenues from the pick-up, while for e-commerce companies and logistics

players it simplifies the last mile delivery and offers a better alternative for online shoppers than home delivery. Through its network of more than 2,000 merchants across KSA, UAE, Bahrain, Kuwait, and Oman, FODEL provides comprehensive geographic coverage offering online shoppers enhanced convenience, control, flexibility and choice over their e-commerce orders. “The GCC’s e-commerce market has been booming and is expected to reach more than$20bn worth of sales by the end of this year. FODEL is supporting this growth by offering an alternative to home delivery,” commented Soumia Benturquia, CEO & Founder, FODEL. “FODEL has transformed the last mile delivery model for the entire logistics landscape in the region,” remarked Hamdi Osman, Chairman, FODEL. JANUARY 2021 13


Kazakhstan joins World Logistics Passport as hub for Central Asia n The Republic of Kazakhstan is boosting

its position as a trade hub for Europe and Asia by joining the World Logistics Passport (WLP) a major initiative established to increase trading opportunities between developing markets. HE Bakhyt Sultanov, Minister of Trade and Integration, Republic of Kazakhstan, and Sultan Ahmed Bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation, recently signed a Memorandum of Understanding to this effect. The membership will enable Kazakhstan to increase exports to Latin America and Africa Kazakhstan is the third country to formally join Dubai in sharing expertise to smooth trade flows around the world, after Colombia and Senegal. Brazil, Uruguay and South Africa are also registered as partners of the WLP. “Kazakhstan can become a link between the Belt and Road Initiative and the World Logistics Passport. This will open up new

opportunities in the field of transport and logistics, revealing the entire transit potential of the country. Almaty will become the key logistics hub of Kazakhstan,” commented Sultanov. Membership of the World Logistics Passport will enable Kazakhstan to access lesser tapped markets. The country’s

strategic location allows Almaty, its largest city, to increase its share of trade between China and Europe via Rail. “Trade is a vital part of economic development and with the addition of Kazakhstan to the World Logistics Passport, the nation is accelerating its future economic growth,” remarked Bin Sulayem.

UPS delivers PfizerBioNTech vaccines to Saudi Arabia n UPS recently announced the successful delivery of the first

batches of the Pfizer-BioNTech Covid-19 vaccine in Saudi Arabia, to support vaccinations of first citizens and expatriates, the company said in a press statement. Saudi Arabia is the first Arab country to roll out the PfizerBioNTech jab, marking a breakthrough milestone in the ongoing response to the pandemic. “UPS has delivered the first batches of the Pfizer-BioNTech vaccine to Saudi Arabia, to support vaccinations of first citizens and expatriates in the country,” stated Rachid Fergati, UPS Managing Director, Middle East and Indian subcontinent. “We have spent months developing new products, agile approaches and new capabilities to ensure we are fully prepared to deliver the vaccine at the right time, at the right temperature to communities all over the world, especially here in the region,” he continued.

14 JANUARY 2021


Emirates SkyCargo successfully transports a Brazilian satellite n The satellite was dismantled into multiple

components to facilitate easy loading and unloading from the aircraft. Emirates SkyCargo has successfully executed a cargo charter to transport the Brazilian satellite Amazonia-1 from Sao Jose dos Campos, Brazil to Chennai, India. This is the first time that Emirates SkyCargo has transported a space satellite from South America. Amazonia-1 is the first satellite to have been developed completely in Brazil by the National Institute for Space Research (INPE), The satellite is due to be sent to space in February 2021 from the Satish Dhawan Space Centre on the East coast of India. Emirates SkyCargo had to undertake extensive preparations for this charter flight to ensure the safe and secure transport of the satellite. The air cargo carrier had to apply for special permission to operate a Boeing 777 freighter from Sao Jose dos

Campos airport to uplift the satellite. Emirates SkyCargo together with the INPE, the airport and local partners conducted two comprehensive simulation sessions ahead of the transport date to be able to transport the sensitive cargo safely from the airport. During the transportation process, the Amazonia-1 satellite was dismantled into multiple components to facilitate easy

loading and unloading from the aircraft. The satellite components were packed inside large containers to avoid any damage during the transport. Overall, the total cargo weighed around 22 tonnes. Four members of the team from INPE also travelled with the satellite to continuously monitor the status of the cargo during the flight from Sao Jose dos Campos to Dubai and then onwards to Chennai, India.

Michelin wins award for its sustainable Supply Chain

Edouard de Rostolan (Michelin) receives award for category of Smart Mobility from Minister Grace Fu n Michelin has recently won the ‘Smart Mobility’ award from the European Chamber of Commerce in Singapore (EuroCham) at its inaugural EuroCham Sustainability Awards 2020, held virtually. The award recognized Michelin’s continued efforts to ensure that its raw materials, in particular natural rubber, are sustainably and ethically sourced.

The Awards Seminar was graced by Ursula von der Leyen, President of the European Commission and Grace Fu, Singapore’s Minister for Sustainability and the Environment. The Sustainability Awards 2020 marked the importance of sustainability for both the EU Commission and the Singapore Government as both parties strive to create a sustainable future across different sectors, which has been demonstrated by The EU Commission’s European Green Deal and Singapore’s Sustainability Concept Plan. Since 2014, Michelin has been committed to and innovating towards a sustainable supply chain to reduce greenhouse emissions. Natural rubber, a key material used in tire manufacturing, has a particularly complex supply chain where 85% of the global supply is provided for by smallholder farmers. “This important award is recognition of Michelin’s sustainability initiatives, and it strengthens our ambition that everything we do should be sustainable,” commented Chan Hock Sen, Country Head of Michelin Singapore. The EuroCham Sustainability Awards 2020 recognized and acknowledged best sustainability practices by members of the European Chamber of Commerce in Singapore in the following categories--smart mobility; clean and efficient energy; circular economy; sustainable food and nutrition and Green finance.

JANUARY 2021 15


Lufthansa Cargo widens portfolio for worldwide transport of Covid-19 vaccines

n Lufthansa Cargo is well prepared for their global distribution of the approved Covid-19 vaccines in the coming months, the carrier revealed in a recent press communiqué. To this end, a dedicated task force has prepared a variety of possible transport scenarios since spring. “The distribution of temperature- and time-sensitive pharmaceuticals is extremely demanding. Thanks to the recent expansion of our ground infrastructure, we can also handle larger volumes and transport them worldwide while supporting our customers to maintain the cold chain,” explained Peter Gerber, CEO, Lufthansa Cargo. “In 2019, we transported around 100,000 tons of pharmaceuticals. We are ready to make another important contribution to overcoming the pandemic by distributing the vaccines worldwide,” he added. While the transport of vaccines is already available with Lufthansa Cargo the company now announced a premium product to its customers that was specifically developed for the transport of Covid-19 vaccines. The product called Covid-19 Temp Premium will be bookable as of 11 January 2021 and will provide a high level of comprehensive and personalized customer service along the travel chain, including seamless monitoring of vaccine shipments throughout the entire process and a 24/7 after sales customer support. With its current freighter fleet of 18 aircraft, Lufthansa Cargo is able to respond flexibly to shifts in demand. If necessary, the provision of additional belly capacity can also be examined, the press note concluded.

16 JANUARY 2021

Kostas Poulopoulos, Area Managing Director Gulf, Levant and Pakistan, Grundfos

Grundfos empowers UAE’s next generation of Engineering students n Grundfos, a leading water and climate company,

is spreading the message of sustainability to the next generation of engineers in the UAE through a learning initiative with three of the region’s top universities which has already reached over 300 students in just one semester. The company has underscored sustainability through University partnership. Grundfos teamed up with American University in Sharjah, Khalifa University and RIT Dubai to deliver training sessions on sustainability and the application of the latest digital pump technologies and cloud communications for fresh, wastewater and district cooling systems, as well as commercial buildings and industrial utilities. “Sustainability has to become a way of life. Through this new initiative, we are collaborating with universities across the UAE to influence the mindset of our future engineers,” commented Kostas Poulopoulos, Area Managing Director Gulf, Levant and Pakistan, Grundfos. In addition to the sustainability training, an additional 50 students have also participated in a special ASME AUS sustainable city competition, which challenged students to maximize sustainability across a city, through key areas such as air quality, water, sewage, waste handling and use of green spaces.


Gavi collaborates with Salesforce for vaccine supply chain efficacy n Salesforce, the global CRM company, and Gavi, the Vaccine Alliance, recently announced via a press statement that they will collaborate to help Gavi manage critical information to equitably distribute approximately two billion Covid-19 vaccines to 190 countries by the end of 2021. Public-private partnerships, such as Gavi, which are focused on getting vaccines to some of the world’s poorest countries, need to be armed with data and technology to facilitate distribution at scale. The ability to manage huge volumes of country data is essential. Gavi needs a single source of truth to help them understand how many vaccines are needed and where. Salesforce Work.com for vaccines, Experience Cloud and Nonprofit Cloud will power Gavi’s COVAX country engagement platform, which will help them manage critical information. Salesforce enables COVAX to move quickly to support fast access to vaccines with a single, secure portal that all participating countries can use to communicate and share information, such as vaccine requirements and access reports. “The scale and urgency of the COVAX mission calls for tools we can expand quickly and use to manage what has become one of the largest and most complex undertakings ever in global health,” said Dr. Seth Berkley, CEO, Gavi. “We are arming 190 countries and economies with the platform they need to communicate critical information around vaccine requirements and equitable distribution for as many as two billion vaccines by the end of 2021,” stressed Rob Acker, CEO, Salesforce.org.

Rob Acker, CEO, Salesforce.org

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000

Web: www.tranzone.ae JANUARY 2021 17


Agility and Aflatoun partner to provide educational opportunities for underprivileged students n Agility and Aflatoun International, an NGO specializing in life skills and financial education around the world, recently announced a partnership that will increase educational opportunities for more than 560,000 students, with at least half of the opportunities created for female students. Agility’s support will fund the development and translation of Aflatoun’s ‘AflaYouth’ financial literacy and entrepreneurship curriculum into Arabic, French and Spanish. ‘AflaYout’” gives students, aged 16-24, access to both online and in-person training, support, mentoring and learning during their transition into the formal labor market, or as they launch an entrepreneurial career according to a corporate press release. ‘AflaYouth’ will be provided to Aflatoun’s network of 45 NGOs in 25 countries in the Middle East, North and West Africa, and Central and South America. Trainings on the curriculum will be provided to NGO partners and local educators, who in turn educate underprivileged youth in the communities where they operate. “Agility’s support means that Aflatoun’s partner NGOs will be able to implement educational programming for refugees and underprivileged local populations in a context and language that’s relevant to them,” remarked Frank Clary, Agility’s Vice President for Sustainability.

Aflatoun in Ghana training adolescents “The skills taught in this program are especially relevant in this time of economic uncertainties. One of the strengths of our programs is that they can be contextualized to local needs and circumstances,” commented Roeland Monasch, CEO, Afltaoun International. Agility has a globally recognized sustainability program, covering humanitarian logistics, community volunteerism, fair labor and environmental sustainability.

Turkish Cargo carries China- produced vaccines to Turkey n Maintaining its continuity for uninterrupted healthcare, medical equipment and vaccine shipments all around the globe, Turkish Cargo recently carried the first batch of the Covid-19 vaccines (Sinovac), procured from China by the Ministry of Health, to Turkey. Loaded inside 17 containers equipped with dedicated cooling systems, Covid-19 vaccines are delivered to the officials of the Turkey’s Ministry of Health after having been successfully transported from Beijing to Ankara via a dedicated flight. Contributing to the continuation of the food and medicine supply chain, Turkish Cargo, on top of its considerable flight network power, increased its capacity by 30 percent. Brand Turkish Cargo enhanced its cold chain shipment scale to 25 thousand tons per month thanks to the capacity procure 18 JANUARY 2021

additional 150 aircraft pallets, reinforcing its capability for carrying vaccines around the world. Holding the approval of the IATA CEIV (Center of Excellence for Independent Validators) Pharma Certificate, Turkish Cargo, maintains the cold chain at the optimal conditions with its ‘TK Pharma’ product designed for carrying pharmaceuticals such as medicine and vaccines at global standards. Maintaining its partnership with the pharmaceutical manufacturers, forwarders,

airports, ground handling companies and the national authorities, the flag carrier is capable of satisfying a wide range of requirements of the pharmaceutical manufacturers by making use of dedicatedly cooled containers and means such as dry ice for the shipments at ultra-frozen range (-70 ° C). Turkish Cargo, has created a global pharmaceutical corridor between more than 400 destinations by transporting pharmaceuticals to key and certificated destinations.


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INO Motors Limited (HML), a subsidiary of Toyota Motor Corporation, was founded in the namesake Japanese city of Hino in 1910 and established as a separate company in 1942. Hino has a rich history in the automotive industry and is the largest manufacturer of medium and heavy-duty trucks and buses in Japan. Under the HINO brand,

20 JANUARY 2021

HML represents the Toyota Group in the global market for trucks and buses. Hino also produces Toyota-signature vehicles on commission, including the popular sport utility vehicle, the Land Cruiser Prado, and the FJ Cruiser. Using the Toyota Production System to achieve continuing gains in productivity and in quality throughout its operations, Hino has adapted that system to its model line to offer customers the best possible products at competitive prices. Worldwide sales of HINO brand trucks and buses total about 100,000 vehicles annually.


AL FUTTAIM-HINO MOTORS: COVER FEATURE

JANUARY 2021 21


AL FUTTAIM-HINO MOTORS: COVER FEATURE

Al Futtaim Motors is the national distributor for HINO in the UAE. Global Supply Chain recently conducted an exclusive interview with Ramez Hamdan, Managing Director Industrial Equipment (Al Futtaim Motors - Famco, Hino and Toyota Material Handling), on a wide range of issues notably the surging reputation of the HINO trademark as the front runner, bucking trends and racing on as a dominant player in a very competitive marketplace. Global Supply Chain (GSC): Briefly trace HINO Trucks’ origins in the UAE and bring us to current on how you are now positioned in the country? Ramez Hamdan (RH): Here In the UAE, HINO is exclusively distributed by AlFuttaim’s Commercial Vehicle Division, an AL Futtaim Automotive Group company, offering customers access to a wellestablished network of 3S (Service, Safety, Satisfaction) facilities in Dubai, Abu Dhabi and Sharjah.

HINO has become a house-hold name in the UAE market for commercial vehicles and currently enjoy the majority market share in the Japanese branded market segment. GSC: How has Al Futtaim-HINO performed to date in the UAE in 2020 and how does it compare with 2019 and how has the pandemic impacted sales? RH: HINO commercial vehicles have witnessed growth in market share reaching

approximately the 43% mark in December 2020. This undoubtedly has a direct relation to the increased demand across the HINO product range by customers operating in essential industries and services such as Logistics and FMCG suppliers with uninterrupted operations despite the pandemic and lockdown period.

Ramez Hamdan, Managing Director Industrial Equipment (Al Futtaim Motors Famco, Hino and Toyota Material Handling)

22 JANUARY 2021


HINO leads with 47% market share in the UAE for Japanese commercial vehicles The Al-Futtaim subsidiary grew by around 300% in the past five years Al-Futtaim HINO, the Al-Futtaim Automotive subsidiary that exclusively franchises light, medium and heavy duty HINO trucks in the UAE, announced recently that it has increased its market share by around 300% in the past 5 years, growing from 12% in 2015 to lead the market with 47% as of May 2020. In the last five years, HINO has established an excellent foothold in the overall FMCG, waste management, logistics, construction and petrol delivery industries. More recently,

it has registered a growth of 23% in the last twelve months, thanks to its increased sales in the FMCG and goods delivery operators sectors. “This commitment paired with our partnership approach to our clients and delivery of a fast and dependable aftersales support stands us in good stead to continue on this trajectory for the coming years,� remarked Ramez Hamdan, Managing Director, Al-Futtaim HINO.

Looking ahead to the next six months, the company is expecting a steady performance in the second half of this year, with an increased focus on its after-sales total support concept to help owners optimize total cost of truck ownership and contributing to the bottom line. The HINO line-up in the UAE consists of light duty HINO300 series, medium duty 500 series and heavy duty 700 series

JANUARY 2021 23


AL FUTTAIM-HINO MOTORS: COVER FEATURE

Al-Futtaim HINO bags major NFPC order of 200 trucks Deal grows NFPC fleet to 450 HINO trucks Al-Futtaim HINO, the automotive company that exclusively franchises light, medium and heavy-duty HINO trucks in the UAE, announced in September 220, the delivery of a major order of 200 HINO trucks to the National Food Product Company (NFPC) cementing its leadership of the FMCG sector in the UAE. Al-Futtaim HINO which has increased its market share by around 300% in the past five years has been the preferred mobility partner for many FMCG companies thanks to HINO’s unmatched Japanese quality and reliability and Al-Futtaim’s dedicated aftersales support. With the latest handover, NFPC’s fleet of HINO trucks grows to 450 HINO trucks, following a similar deal of 250 trucks in 2019. NFPC will use the HINO 916XLWB-6TON

24 JANUARY 2021

trucks to boost its delivery operations which include water shutters, chillers and freezers. “With this deal, we are further cementing our strong relationship with NFPC whose fleet primarily consists of HINO trucks,” remarked Ramez Hamdan, Managing Director, AlFuttaim HINO. The pandemic has resulted in a huge boost to e-commerce and this has had a corresponding increase in our light-duty truck sales which now makes up 65% of our sales primarily to FMCG and logistics operators,” he added. The 200 HINO trucks will be custom-fitted by Al Furat to meet the specific requirements of NFPC and which adhere to UAE safety standards. The HINO line-up in the UAE consists of light-duty 300 series, mediumduty 500 series and heavy-duty 700 series.


AL FUTTAIM-HINO MOTORS: COVER FEATURE

GSC: What is your projected outlook for HINO in 2021? RH: Heading into 2021, the projected outlook for HINO remains positive and we have established solid plans and solutions to meet our customers’ growing demand through sales and after-sales activities alike, complete with dynamic financing options and effective after-sales campaigns and support. GSC: In mid-September 2020 Al-Futtaim HINO delivered a major order of 200 trucks to National Food Product Company. How and why did this mega order materialize? RH: Hino Trucks’ specification, low cost of maintenance, durability and excellent post-sales support ably complemented our offering and success for this order and as our light-duty trucks have become the preferred selection by FMCG operators. GSC: Earlier this year 150 HINO trucks joined the Dubai Refreshment Company fleet. Tell us more.

RH: Our presence in the F&B industry has been increasing year-on-year, thanks to the trust of our partners put in the quality of our trucks and our ‘HINO Total Support’ after-sales concept. The 150 HINO trucks have been customized to meet strict and rigourous quality, operational and reliability standards. There was a sustained period and process of protracted negotiations where a lot of parameters were carefully considered and evaluated. We strictly adhered to PepsiCo’s criteria and we were also mandated to provide eco-driving training sessions to efficiently harness the fleet, optimum utilization and enhanced road safety requirements. The eco-driving trainings come as part of the ‘HINO Total Support’ in addition to helping reduce the risk of major road accidents, the trainings also help drivers

optimize total cost of truck ownership, contributing to bottom line performance, improve fuel efficiency, minimize the cost of wear and tear, reduce service and maintenance costs as well as insurance premiums. GSC: Hino is reportedly the market leader with nearly half of the light-duty truck segment in the UAE. To what do you put the growing popularity of HINO in the UAE? RH: Al-Futtaim HINO which had increased its market share by around 300% in the past five years has been preferred mobility partner for many companies thanks to HINO’s unmatched Japanese quality and reliability and Al-Futtaim’s dedicated aftersales support. JANUARY 2021 25


AL FUTTAIM-HINO MOTORS: COVER FEATURE

Hino bags order for delivery of 150 trucks to Dubai PepsiCo bottler The Al-Futtaim company extends its association with the global food and beverage leader Al-Futtaim’s Commercial Vehicle Division, exclusive distributor of HINO trucks in the UAE, announced that is has delivered a major order of 150 Light Duty HINO 300 series trucks to Dubai Refreshment Company, local bottler and distributor of PepsiCo Beverages in Dubai and the Northern Emirates. This new agreement further extends HINO’s association with PepsiCo bottler in Dubai which will use the new trucks to boost its fleet of refreshment delivery trucks in the UAE. 26 JANUARY 2021

“The 150 HINO trucks are tailor-made to enhance PepsiCo beverages’ delivery operations in the UAE, and we have coupled the delivery with eco-driving training sessions to help the fleet users drive more efficiently and improve their road safety,” remarked Ramez Hamdan, Managing Director, HINO, Al-Futtaim-HINO. “We chose HINO trucks for their quality, performance and fuel efficiency, as they adhere to Euro-4 emission standards,

helping our operations to have a positive impact on the environment, in line with our commitment to support the UAE government’s 2021 vision,” stated Tarek ElSakka, CEO, Dubai Refreshment Company. Conforming to UAE safety standards, HINO has partnered with GORICA for the customization of the body of the trucks to suit the specialized needs of Dubai Refreshment Company – local PepsiCo bottler.


AL FUTTAIM-HINO MOTORS: COVER FEATURE

GSC: How would you characterize the Al Futtaim Commercial Vehicles-HINO partnership? RH: The association is a robust and strategic partnership built on values of an enhanced customer experience, trust and mutual support. GSC: What is your range of commercial vehicles and which are among your top selling models in the region? RH: The HINO line-up offers the widest range of trucks and the range of payload between the series ranging from 2.3 tons to 30 tons and 100 tons GCW, the line-up offers light duty 300 series trucks, mediumduty 500 series and heavy-duty 700 series trucks; and light-duty 300 series trucks are among the top selling models in the region. GSC: What are your brand strengths and how are you leveraging these to gain a larger market share?

RH: Our strength comes from offering a transportation solution with higher performance Engine Euro4, Eco friendly with more safety features like ABS / Airbag / EGIS Cabin, with a higher service interval of 20,000 kms using Hino Engine Oil. Also, the availability of a variety of chassis lengths with payloads for different body application are a determining factor. Add to this are other parameters such as the low cost of maintenance, durability and excellent after-sales support gives us a winning advantage versus the competition. GSC: Do you customize vehicles for specific clientele? RH: We complete customization requests through an approved body fabricator and at the very best quality and prices offered in the market. GSC: Are you more optimistic about increased sales in the face of presently falling fuel prices & are you also exploring alternative fuels like hydrogen or hybrid engines (electric / diesel)?

RH: We are exploring Hino Hybrid engines. For example, the Hino300 Series hybrid truck typifies the solutions that will be needed and the truck was first to employ a Euro4 and EVV compliant 4L diesel engine matched to an auxiliary electric motor that is emissionfree and significantly reduces emissions of carbon monoxide, carbon dioxide, particulate matter and nitrogen oxide. The Hino300 Series Hybrid is projected to be our front-runner as the market turns towards eco-friendly transport solutions. GSC: What is the vision for HINO Trucks in the UAE going forward for the short and long-term futures? RH: Hino Trucks are known for their durability, versatility and its famed ‘Total Support’ after-sales concept in terms of service contracts and spare parts availability. The company’s growth has been based on offering comprehensive tailor-made solutions including genuine spare parts, service contracts, 24/7 service support and expert technical support, all of which promise stable and continued growth in a market that is dynamic, demanding and becoming increasingly environmental conscious. JANUARY 2021 27


RENAULT TRUCKS

Renault Trucks inks deal with ENOC as its newest ‘Partner of Choice’ Major fleet deal sees ENOC take delivery of eight new C 380 Tractor Heads from Renault Trucks

ENOC takes delivery of eight new C 380 Tractor Heads from Renault.

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ubai’s ENOC Group has taken delivery of eight new C 380 Renault Trucks models, which will be used to deliver fuel to the Group’s service stations across the United Arab Emirates, the country’s leading energy player announced. All vehicles are supplied through United Diesel, a member of the Al Rostamani Group, Renault Trucks’ exclusive authorised distributor for Dubai and Northern Emirates. The purchase of the new trucks, which will enhance the Group’s existing fleet, is in line with ENOC’s plans to partner with leading global brands that offer customerfriendly, cost-effective solutions.

driver comfort, exceptional reliability and optimal fuel efficiency, making it ideal for regional and long-haul applications. It is equipped with a range of features ensuring a high level of safety, for the driver as well as for other road users. The cab of the C 380 is built around the driver. All controls are at the driver’s fingertips, while there is also a 7’’ HD LCD information display and seats with fitted red seat belts designed by Recaro. The design of the windshield and side mirrors guarantee clear visibility around the cab with minimum blind spots, essential for helping keep other road users safe.

Truck characteristics

Other safety features include an automatic parking brake, EBS (Electronic Braking System), ESC (Electronic Stability Control) to help maintain route stability control in difficult conditions, and AEBS (Advanced Emergency Braking System), which uses a radar unit and a camera to detect an imminent risk of collision. The LDWS (Lane Departure Warning System) alerts the driver when it detects

Renault Trucks and United Diesel will be delivering the highest standards of specialist after-sales support to ENOC, including 24/7 support, driver and technician training, and a comprehensive repairs and maintenance contract. The Renault Trucks C 380 Tractor Head 6x2 with rear liftable axle offers superior 28 JANUARY 2021

Safety attributes

the vehicle is unintentionally deviating beyond the lane markings, so they can react in time to avoid an accident.

Testimonials “Working with reliable partners such as Renault Trucks and United Diesel will without a doubt allow us to enhance our operational efficiency and adhere to best HSE and industry practices,” commented Saif Humaid Al Falasi, Group CEO, ENOC. “The C380 is an ideal truck for fuel tanker applications, where a robust chassis is an essential factor in its selection, while offering equally unbeatable standards of safety, reliability and cost-effectiveness,” remarked Guillaume Zimmermann, Commercial Director, Renault Trucks Middle East. “United Diesel is very pleased to be a strategic business partner for ENOC. We are confident that this important order will pave the way for a longer-term association with ENOC as a preferred supplier for future projects,” observed Mokhles Makary, General Manager, United Diesel.



BRIDGESTONE EXCLUSIVE INTERVIEW

The New Paradigm: From Tyre Manufacturer to Mobility Solutions Provider

Stefano Sanchini, Regional Managing Director, Bridgestone

“At Bridgestone, we have come to realize that being a mobility services provider means not only meeting customer needs for products but also providing a holistic experience that covers the whole journey. The company’s investments and acquisitions in new business models and technologies are appropriately set to better serve these emerging needs from the consumers,” reveals its Regional Managing Director in a wide ranging engagement with Global Supply Chain—Editor

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ridgestone prepping for advanced solutions that create new value for society and customers. The Japan headquartered multinational was founded in 1931 as an auto and truck parts manufacturer. The Bridgestone Group, now the the largest manufacturer of tyres globally, currently operates 179 production facilities located in 25 countries. Bridgestone Middle East & Africa (BSMEA) is the regional headquarters for the Middle East and Africa region. The Jebel Ali Free Zone facility has a 23,040sqm advanced warehouse to facilitate storage and distribution of Bridgestone and Firestone tires from Japan and other countries for all kinds of vehicles. Global Supply Chain recently conducted

30 JANUARY 2021

an exclusive interview with Stefano Sanchini, Regional Managing Director, Bridgestone MEA. Global Supply Chain (GSC): What is your assessment of the current mobility continuum and how and where is Bridgestone positioned in this spectrum? Stefano Sanchini (SS): More and more people are moving to urban centres of development, taking advantage of economic opportunities but are yet faced with modern day woes such as traffic congestion, safety concerns, noise, and air pollution issues that challenge the sustainability of these towns and cities. Today, people and businesses are more empowered to make decisions that make an impact, particularly through smart and

creative applications of mobility solutions. Mobility has now become an essential element in the creation of smart cities and businesses in the technology sector are further evolving--falling in line with the concept of being connected, autonomous, shared, and electric, or what is more known today as CASE. Aside from this concept, the presence of Artificial Intelligence (AI) and the emergence of 5G is being seen as drivers that accelerate development in the mobility sector. Bridgestone’s mobility solutions are based on four key themes--data collection, data platforms, data analysis, and user interface. These technologies provide innovative solutions to our efforts to develop advanced tyres that meet high


BRIDGESTONE EXCLUSIVE INTERVIEW

sustainability standards. In line with these new developments, the company has adopted a new motto, ‘Solutions for your journey’—as our way of saying where we want to go and what our vision is. The key goal here is to be a solutions provider to the mobility ecosystem. GSC: How would you describe Bridgestone’s evolution from tyre manufacturing to becoming a more holistic, comprehensive organization as a mobility solutions provider? SS: Bridgestone’s business in the EMIA region has rapidly caught up with these trends. In fact, we have now grown to become modern chemists, engineers, data scientists, and digital experts that are known to operate some of the region’s most advanced factories and cutting-edge technology. Last year, the company acquired Webfleet Solutions, motivated by our vision to reinforce our digital capabilities. We have also recently launched MOBOX, which is a monthly subscription service that offers new tyres, full warranty and other premiumrelated vehicle services at an affordable monthly sum. We must evolve our business model to provide sustainable mobility and advanced solutions that create new value for society and for our customers. We are moving beyond passive products to deliver active, intelligent products that are fully integrated into the systems in which they operate. GSC: How significant is the region for Bridgestone and where in the pecking order does the brand stand internationally? SS: Bridgestone is one of the pioneering movers recognized for investing heavily in the Middle East region. The company sees the Middle East as a significant region to our operations. In fact, the company strives to export the right product—a specific product that takes notice of the key essentials, which include road conditions, the weather, and customer expectations for each country in the region. We sought to create a presence in the region as an engineering company that defines how to engineer the best product for this specific condition. The Middle East region has its own identity, which is

different from the others and Bridgestone has been working to cater to its needs. We are market leaders in the region, and the result of all the efforts that we have undertaken for the last 40-50 years is evident now. From an international perspective, Bridgestone is one of the world’s top tyre companies with our business encompassing more than just tyre sales. We also have a growing retail business in EMIA, operate the leading telematics provider in Europe (Webfleet Solutions), and globally we manufacture and sell a wide range of rubber-related and diversified products, including but not limited to commercial roofing materials, seismic isolation rubber, and sporting goods. GSC: How have you performed to date in the region in 2020 and how does it compare with 2019? How has the pandemic impacted sales? SS: The spread of COVID-19 this year did affect our business in the region. 2020 was a difficult year for us compared to 2019, which is viewed as one of our best performing years. We only began to come out towards the end of the third quarter, which gave us the encouragement that things will soon get better and pick up, which is very encouraging. We will end the year strongly, and it will set the right momentum for the year 2021. We have a strong strategy for 2021 and are already implementing it; we have a lot of already ongoing business development efforts to strengthen our presence. We expect a strong comeback in 2021.

GSC: Which are among the top three performing countries in sales terms in the region? SS: Recent performance reports show that Egypt, KSA and the UAE are our top three performing countries. The reports further show that the KSA, which is seen as being the largest carpark in the region, will definitely be the largest market for us. Meanwhile, the UAE’s carpark has extremely high standards with their consumers demanding high quality products and services. Bridgestone is currently number one in the UAE. One of the main markets that we cater to in the region is Egypt where we have maintained a key presence over the last 70 years. We have been working with our current partner for over 25 years and have established a strong presence with the brand both in the commercial and consumer segments.

JANUARY 2021 31


BRIDGESTONE EXCLUSIVE INTERVIEW

GSC: What do you attribute the popularity of Bridgestone in MEA to? SS: As earlier stated, we see the Middle East as an especially important region for Bridgestone. We have been working on understanding the region and the business better--developing the right product for each country in the region. We keep up with evolving customer needs and preferences, which is one of the main contributing factors to the popularity that we enjoy here. In fact, one of our key selling points is our ability to offer customized tyres catering to each country’s needs and requirements. As an example, the products that we sell in this region are tailored to meet the needs and requirements of this market. These are all based on studies, design, research-which are all engineered and developed for the region. The products we make for Egypt are different from the ones we make for the UAE. This is the distinct advantage that we offer--helping us make history and consolidate a stronger legacy and reputation in the region. GSC: What is your projected outlook for Bridgestone in 2021? SS: 2021 will be a year of recovery for us. I see a lot of optimism in the market and believe that this year will be a successful one for Bridgestone and the rest of the region as well. In fact, we are confident in recovering at least 50 per cent of what we lost in 2020. Our ambition is to surpass the 2019 figures by the end of 2022. GSC: How would you characterize Bridgestone’s partnership with its multiple representation agencies in the countries of this region? SS: One of the main organizational aspects that struck me when I joined the company was the value that it places on its partners—something that was highly evident when I speak with these partners and you can immediately sense the high level of affection and connection that they feel towards the brand. We work with our partners as colleagues and they care about us as much as we do about them, if not more. We have partnerships that have been going on for over 70 years, who have been there with

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us through all the ups and downs in the market. We find it easy to work with our partners as we share the same ambition and affection for the brand. We work together with them to deliver the promise that the brand represents and work towards the community we operate in. We also share the same values, ethics, and it is extremely exciting to work with them. Every time I meet with one of our partners, I come back with renewed enthusiasm to do what we are here to do. GSC: What are your expansion plans for the region and do you have plans to set up a manufacturing plant in the region in the foreseeable future? SS: These are truly exciting times for us as we embark on a strategic expansion initiative that aims to reinforce our brand’s presence in the market. The move includes efforts to expand our Firestone brand as well. The objective is to bring up the quality and capabilities to this market. We are also looking into how we can expand our retail footprint with our partners. This strategic expansion initiative is geared to take three years to complete and will run from 2021 to 2023. We were able to open 23 new FirstStop outlets this year alone and hope to open more soon. In addition, with our partners, we are also expanding with their equity. Retail is a key pillar in our strategy which helps us get closer to our end users. GSC: What opportunities and challenges (competition) for the present and future do you foresee going forward? SS: Based on my many years of experience, I believe that the current moment is an overly exciting time to be in as a premium tyre manufacturer. The strong transformation of the industry, which is going in the direction of a premium manufacturer and a technological player like us, promises the entry of many things to look forward to, industry wise. One key example is the huge transformation of mobility—a move that is expected to impact the tyre business. Given our transformation from being a tyre manufacturer to a mobility solutions provider, the key goal we have set is to be a technological provider and player in the

industry. In terms of technology, we bring new challenges to tyre technology (in the times of autonomous and connected vehicles) and Bridgestone being an engineering core company is where we can play and be bold in our actions. Competition is always there, and many more brands are competing in this ecosystem. It means that there is demand. But manufacturing of tyres is just one aspect and being a mobility solutions provider is much more than that. We believe that the future will be a remarkably interesting one for Bridgestone. GSC: What are your brand strengths and how are you leveraging these to gain a larger market share? SS: Bridgestone’s leading market position can be attributed to its solid base. We enjoy the following features - high brand awareness, which helps us enter new markets; the success of our tyre brand and lastly, our partners who look forward to working with us. Bridgestone is a great partner for local distributors. We work with them as one


BRIDGESTONE EXCLUSIVE INTERVIEW

team. It is not important how good we are in the region, but how good our partners are in the market. Our partnerships are a competitive advantage. Our strong market intelligence, among other factors, is leading us to new opportunities in the market. GSC: What is the vision for Bridgestone in the UAE going forward for the short and long-term futures? SS: For the short term, we are now looking at new channels coming in--our online

presence is developing, and we are looking to make this stronger. This, of course, includes plans to further grow our MOBOX subscription. We will also be deploying our Webfleet telematics solution soon, with the pilot case being implemented next year. The UAE is a pilot market for our initiatives, which will be taken to long term and hope to be further developed in the coming years. These are all part of the efforts to make Bridgestone a leader in mobility solutions. Bridgestone is focused on enhancing staff performance and business growth as we seek to increase our market share. We are also looking at all our current initiatives and activities are serving our long-term goals. We continue to remain steadfast in our efforts to advance technology uses and ensure better safety for motorists through sustained awareness campaigns on tyres use. Looking ahead to 2050 and beyond, the company has expressed its keenness and commitment towards maintaining ‘DanTotsu’ or being the leader in the industry, which means we are focused on taking part in building a healthy future for the

people and the planet. We hope to achieve using 100 per cent sustainable materials and implement business operations that contribute to ecological balance from this period onwards. GSC: Expand on your CSR activities, for example the Al Masood-Bridgestone initiative to fight pandemic, along with environmental concerns and emissions? SS: At Bridgestone, sustainability is the key element of our long-term strategy. This is present at the core of our management and is aimed towards creating social and customer value. We are also discussing end-of-life management of tyres with local authorities to create a circular economy. This is a new focus area in the region, and we hope to bring our knowledge from our global markets. As part of our efforts to thank and serve our heroes during the Covid-19 pandemic, we had our partners, ALM & UD Trucks educate truck drivers on the essence and importance of hygiene, social distancing, and health to ensure their utmost safety. We hope to initiate new plans for 2021 with our partners and keep the momentum going.

JANUARY 2021 33


BRIDGESTONE EXCLUSIVE INTERVIEW

CSR in the lead: Bridgestone’s innovation and sustainability initiatives

According to Stefano Sanchini, sustainability continues to be at the heart of our commitment and responsibility—something that has been embedded in every aspect of the business, ensuring that all efforts complement our motto, ‘Our Way to Serve.’ Our ‘Enliten’ technology was one of our major steps forward to achieving sustainability in the industry while we continue to work towards our long-term environmental vision where our products are made from raw materials that are fully renewable and sustainable by 2050. Climate change and the limits to natural resources are two main areas of concern for the automotive industry. In Europe, the European

Parliament has put stringent measures for original equipment manufacturers (OEMs) to ensure vehicles’ emissions of CO2 are reduced. We have made progress in various aspects such as reducing raw material consumption, recycling resources, and using them effectively within the company or in collaboration with other companies. We are also exploring the diversification of our energy resources to include renewables. The company is also keen to pursue circular economy and are currently assessing how our products would fit in this new paradigm. These efforts are implemented globally.

Stefano Sanchini-Regional Managing Director, Bridgestone Middle East & Africa (BSMEA) Sanchini joined Bridgestone as Sales Director in 2017, and is responsible for managing the sales activities for Bridgestone’s Middle East & Africa’s branches, along with Commercial Channel Development, Technical Services (Commercial and Consumer) and Retail divisions. In his current role as Regional Managing Director, he is responsible for driving BSMEA’s integration with EMEA and leading the company’s strategy in the region. Sanchini has more than 18 years of experience in the automotive industry, 14 of which were in various roles within the tyre industry. He completed his Master’s degree in Industrial Engineering at Politecnico Di Milano in 1998, and is fluent in three languages, including Italian, English, and Spanish.

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PLIANT SUPPLY CHAINS

Shock-Proof: How to forge resilient Supply Chains Flexibility is in, dependence on one region or country is out Karim Shariff, Partner, Middle East; Sri Rajan, Partner, Bain & Company, San Francisco and Joshua Hinkel, Partner, Bain & Company Dallas, report on the a recent survey and findings by Bain & Company, a global management consultancy and the New York Citybased Digital Supply Chain Institute—Editor

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s Covid-19 threw fragile global supply chains into disarray, many companies were stunned by their own vulnerability. The risk of depending on a supply base that is concentrated in one geographic region has been increasing over the past 30 years, but the pandemic quickly demonstrated how much chaos and pain one unexpected event could inflict. It was a powerful wake-up call. The disruption triggered by Covid-19 has prompted leadership teams to confront a new era of supply chain volatility. Bracing for an era of increased turbulence, leading multinationals are rethinking their supply chain strategies to lower the risk of disruption. In a recent survey of 200 global manufacturers by Bain & Company and the New York City headquartered Digital Supply Chain Institute, executives ranked flexibility and resilience as their top supply chain goals. Only 36% of senior executives ranked cost reduction as a top three goal, down from 63% who saw it as a priority over the past three years.

Improving supply chain resilience To improve supply chain resilience, 45% of respondents plan to shift production closer to home markets in the coming years. The good news is that automation has reduced the cost of manufacturing, eroding the labour arbitrage advantage that fuelled decades of investment in offshore production. 36 JANUARY 2021

Karim Shariff, Partner, Bain & Company Middle East

The cost of humanoid robots is comparatively lower now which means companies with processes capable of being automated such as consumer electronics can opt to move supply chains closer to home without raising costs significantly. For the last 30 years, manufacturing companies have wrung out supply chain costs by dis-aggregating the various steps of the value chain, concentrating each step with a limited number of companies and geographies to improve economies of scale. As a result, most leadership teams lack sufficient supply chain visibility to assess their geopolitical and geographical risks. Before investing in a new supply chain strategy, successful leadership teams evaluate their supplier and contract manufacturer risk according to two factors:

the country where goods are produced and the supplier’s headquarters location.

Key factors Two key factors that determine geopolitical supply chain risk are the supplier’s headquarters and its manufacturing location. Once leaders understand their risk exposure, they start building resilience into their value chains in a two-step process. First, they quickly add flexibility to the supply of finished goods and high-risk subcomponents where possible, to limit immediate risks and satisfy customers. Second, they take a strategic approach to rethinking the value chain from end to end. That includes deciding the pace of change


PLIANT SUPPLY CHAINS

and periodically reviewing decisions based on external conditions and internal capabilities. Below are three steps to help companies pioneer the shift to supply chain resilience:

1.Boost flexibility Supply chain flexibility is becoming a more and more important concept for gaining competitive advantages. The first priority in making supply chains shock-proof is increasing flexibility for supplying finished goods and high-risk subcomponents. This would open the possibility for companies to respond to short term changes in demand and supply situations as well as structural shifts in the environment of the supply chain on an immediate basis. Not many countries have the capacity and infrastructure to handle all the volume, so manufacturers often have to piece together a solution across multiple neighbouring countries. For many companies, aligning a new production location with demand can deliver significant benefits, particularly in industries where demand is rising even through the downturn, including MedTech and certain consumer products.

2. Rethink end-to-end network strategy For each value chain, leadership teams need to properly balance risk and resilience at the lowest total landed cost. This includes decisions on single vs. multiple sourcing, where to manufacture at each stage of assembly, and proximity to customers. They also need to determine whether to produce in-house or outsource, taking into account variables such as national incentives and declining manufacturing costs. Successful companies revisit their value chain choices regularly, especially in turbulent times.

3. Balancing cost risk Resilience does not eclipse every consideration. As leadership teams start to understand where they need flexibility, they face important trade-offs on cost. Investing in too much flexibility can render a company uncompetitive. As they look to reshape supply chains for the future, successful companies determine how much resilience they need, where it matters most, and what they can afford. Resilient and flexible supply chains can be a powerful defensive hedge, but also a

source of competitive advantage. Leaders make the most of options such as capacity buffers, digital infrastructure and nimble teams to react faster and more efficiently than their peers.

Investment needs The investment to build and maintain these capabilities varies, depending on a company’s need for responsiveness and efficiency, as well as the level of industry competition. This is why the roadmap for resilient supply chains must be linked to a company’s long-term business strategy. For example, a high-growth business that has high margins and short product life cycles, and is dependent on components coming from widely distributed sources such as high-end cell phones, will require a different type of supply chain resilience than a hypercompetitive low-margin business, such as clothing or toys, which relies on imported finished goods. Geopolitical volatility and market turbulence will transform supply chain management in the coming decade. Leadership teams that invest in strategies to increase supply resilience will simultaneously create a new source of competitive advantage. JANUARY 2021 37


OIL & GAS

Digital live event held to support the industrial and environmental transformation of ADNOC Twelve selected French companies introduced top solutions to over 450 ADNOC employees

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ithin the framework of the digital transformation of the Oil & Gas sector in the United Arab Emirates, Business France, the national agency supporting the international development of the French economy, organized alongside two leading O&G French multinationals TOTAL and TechnipFMC, the recently held first virtual edition of the ‘French Energy Days’ with ADNOC. Held under the patronage of HE Xavier Chatel, Ambassador of France to the UAE, and Dr Saif Sultan Al Nasseri, CEO, ADNOC Gas Processing, the event presented solutions from a select delegation of 12 companies, in the field of Digitalization, Energy Efficiency, O&G

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4.0 technologies, Robotics. Among the audience, ADNOC employees attended the sessions to understand how the French expertise could contribute to the ambitious Ruwais Transformation Program aiming to become a fully integrated refining and petrochemicals hub in the Middle East. The highlighted solutions focused on energy and cost-savings across the entire energy production value chain such as installation, maintenance, energy consumptions, targeting a more efficient and sustainable industry. In line with ‘La French Fab’ values, the companies emphasized their efficiency to achieve the growth potential of the 4th O&G industrial revolution, in order to play an active role in accelerating digital

transformation. “We strongly believe that the industry needs more innovators and entrepreneurs specialized in cutting edge technologies like Artificial Intelligence, Big Data, IOT and energy efficiency,” commented Foued Kefif, Head of Industry & Cleantech Department, Business France. “Reflecting our ambitious growth plans against our current operating realities, sustainable energy sector development requires borderless collaboration, new business model innovation and creative partnerships that can unlock value across the entire oil and gas ecosystem,” remarked Dr. Al Nasseri. At the event, TechnipFMC unveiled Cybernetix, its autonomous solutions and robots to reduce costs and CO2 emissions.


OIL & GAS

ADNOC awards Occidental Onshore Exploration Block in Abu Dhabi’s second Competitive Block Bid Round Occidental awarded exploration concession and will invest up to AED514mn (US$140mn) during the exploration phase The Abu Dhabi National Oil Company (ADNOC) recently announced the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi Onshore Block 5 to Occidental,

a US-based international oil and gas exploration and production company. The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC) and follows the SPC’s endorsement last month for ADNOC to begin awarding exploration blocks in Abu Dhabi’s second competitive block bid round. Occidental will hold a 100 percent stake in the exploration phase, investing up to AED 514mn (US$140mn), including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 4,212sqkm southeast of Abu Dhabi city. The exploration concession agreement was signed by Dr. Sultan Ahmed Al Jaber,

UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, and Vicki Hollub, President and CEO, Occidental. “Occidental was selected after a very competitive bid round that builds on the success of our debut bid round completed last year as part of Abu Dhabi’s block licensing strategy aimed at accelerating the exploration and development of our substantial hydrocarbon resources,” commented Dr. Al Jaber. “We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi,” remarked Hollub.

ADNOC awards US$ 519mn contract for expanding the world’s largest 3D seismic survey Contract awarded to CNPC affiliate bringing total onshore and offshore seismic survey area to 85,000sqm The Abu Dhabi National Oil Company (ADNOC) recently announced the award of a contract worth up to US$ 519mn (AED 1.9bn) to further expand the scope of the world’s largest combined threedimensional (3D) onshore and offshore seismic survey, which is currently taking place in the Emirate of Abu Dhabi. The expansion underscores the important role seismic surveying plays in enabling ADNOC to identify and explore new hydrocarbon resources as highlighted by the recent major discoveries of recoverable unconventional oil resources and conventional oil reserves. The contract was awarded to BGP Inc., a subsidiary of China National Petroleum Company (CNPC), represented in the United Arab Emirates (UAE) by Al Masaood Oil Industry Supplies & Services Co. This new award brings the total area to be covered by the survey up to 85,000 km and reinforces ADNOC’s commitment to

unlocking the full potential of Abu Dhabi’s vast hydrocarbon resources. 50% of the award value will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, highlighting how ADNOC continues to prioritize ICV as it invests responsibly to deliver its 2030 strategy. “This further demonstrates ADNOC’s commitment to realizing the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy

provider to the world,” stressed Yaser Saeed Al Mazrouei, Executive Director, ADNOC Upstream. This contract increases the scope of the ongoing seismic mega survey to capture coastal areas, islands, and shallow water. It will utilize state-of-the-art technologies including cableless equipment and a wide range of environmentally friendly seismic sources This award prioritized UAE sources for materials, local suppliers, and workforce as well as advanced technologies.

JANUARY 2021 39


DUBAI CUSTOMS

Exceptional achievements in 2020 despite Coronavirus challenges Despite the challenges wrought by the ongoing pandemic, Dubai Customs has been able to buck the trend and successfully meet the challenges of the global economic recession.

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he year 2020 saw new pioneering achievements for Dubai Customs in terms development of Customs work processes and innovation of new solutions and initiatives to ensure the smooth flow of trade and mitigate the impacts of the global pandemic. Ahmed Mahboob Musabih, Director General of Dubai Customs, said: “Against all odds Dubai’s foreign trade is gradually recovering with steady growth momentum despite disruptions from the Covid-19 outbreak. “Dubai Customs also introduced several milestone projects supporting our direction to play a major role in future trade transformations. These include the launch of the Blockchain-based cross-border e-commerce platform, which paves the way to attract more logistics and e-commerce companies,” affirmed Ahmed Mahboob Musabih, Director General, Dubai Customs “In terms of society protection, Dubai Customs also launched ‘Siyaj’, the leading security initiative which employs 24/7 integrated smart control systems to curb illegal trafficking and smuggling, he added.

Non-oil foreign trade Dubai recorded AED 551bn (US$ 150bn) worth of non-oil external trade in the first half of 2020. Imports accounted for AED 320bn (US$ 87.12bn), exports AED 77bn (US$ 21bn), and re-exports AED 154bn

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Ahmed Mahboob Musabih - Director General, Dubai Customs (US$ 41.93bn). A total volume of 44mn tonnes of goods were traded through Dubai during the period, including 30mn tonnes of imports, 8mn tonnes of exports and 6mn tonnes of re-exports.

Sharp rise in transactions Customs transactions processed by Dubai Customs grew by 23% in 2020 compared to 2019. The sharp rise in transactions reflects the strength and resilience of the economy and the emirate’s proven capability to weather external economic shocks and turn challenges into real opportunities.

Smooth remote working Dubai Customs is reaping the fruits of successful investment in advanced technologies and smart applications over recent years. Its business ran smoothly without any significant interruptions during the remote and home working period. There were automatic approval and clearance of about 97% of no-risk

consignment transactions in 2 minutes without any human intervention. From 15th March to 2nd June, employees completed 8.5mn minutes of audio and video calling using Microsoft TEAMS, shared screen for 2.1mn minutes, and sent 1.1mn instant messages. They conducted 298,000 individual and group calls.

IPR Dubai Customs recycled 161,753 counterfeit, IP-infringing products for 59 international brands in 2020, instead of being destroyed. DC’s IPR department resolved 255 intellectual property dispute cases in 2020. The department organized 56 IP awareness events and workshops that benefited 2,667 participants including students, supervisors, government staff and customs inspectors. As many as 367 trademarks and 203 new trade agencies have been recorded by Dubai Customs during 2020.


DUBAI CUSTOMS

Moreover, the IPR department also registered 8 knowledge assets and innovations supporting Customs work that were developed internally by DC teams and employees.

Siyaj initiative Dubai Customs launched Siyaj (Fence) initiative, the smart integrated system to control Dubai’s customs entry-points. The new system is based on a number of sophisticated AI technologies, rapid intervention teams that work around the clock, drones, and the K9 sniffing dog unit for targeting and inspection operations inside the customs zone. The initiative will enhance Dubai and the UAE’s security and help protect the society from the hazards of illegitimate shipments and smuggling while facilitating trade and supporting the global supply chain.

e-Commerce Dubai Customs plays a major role in supporting the strategy which sees Dubai as the world’s capital of the new economy. This is done through reinforcing the companies of the future economy such as the e-commerce businesses by facilitating trade and reducing costs for them so that they can

set up regional operations in Dubai. For that, Dubai Customs is developing the Cross Border e-Commerce Platform; the collaborative blockchain-based e-commerce platform, which caters to the needs of all stakeholders in the e-commerce supply chain. The platform aims to increase the share of Dubai-based e-commerce businesses in local and regional distribution to AED 24bn (US$ 6.53bn) by 2022, through augmenting the number of regional and global e-commerce companies operating in Dubai in the coming years. In order to motivate e-commerce companies to establish e-logistics distribution centres in Dubai, the government aims to reduce the total cost of e-commerce operations by 20% - including the costs of returned goods, storage, and transportation. Dubai Customs estimates that E-commerce sales are expected to rise 23% to US$ 27bn (AED100bn) in 2022.

summer training programme 2020 qualified 1179 students over 912 training hours. Dubai Customs ‘Leaders’ training program graduated the fifth batch of employees who joined the program to develop their leadership competencies and gain learning and skills on how to overcome current and future challenges. The programme, which Dubai Customs launched at the end of 2019, engaged 16 employees from different departments and centres in Dubai Customs. The 54-hour program, accredited by the Institute of Leadership and Management, ILM, included different sessions that covered topics like personal skills, authorization, leadership, team motivation and leadership skills. During the programme, a Virtual Reality Leadership Lab was launched to train the employees in a unique and more interactive content.

Training courses

Dubai Customs established a sustainable model for corporate social responsibility, and managed to overcome obstacles and challenges during this exceptional year due to the Covid-19 pandemic. The government entity conducted 140 community-oriented and charitable initiatives benefiting more than 63,000 people from all segments of society.

Dubai Customs carried out 732 training courses during 2020, targeting 4,000 staff participants, spanning a total of 29,000 training hours. Of these 676 online training courses were conducted during the Covid-19 pandemic. DC’s

CSR

JANUARY 2021 27


UAE LOGISTICS SECTOR: A REVIEW

Industry leaders offer glimpse into future of UAE logistics sector 360 Dialogue Series sheds light on key trends and technologies reshaping supply chains during Covid-19

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usinesses in the UAE are adapting quickly to new trends and technologies that are accelerating change within global logistics, industry experts said during a recent virtual panel discussion hosted by Dubai Chamber of Commerce and Industry. The panel was organised as part of the 360 Dialogue Series and joined by Mahmood Al Bastaki, COO, DT (Dubai Trade) World; Harj Dhaliwal Managing Director Middle East & India Virgin Hyperloop; and Yasir Jamal VP Supply Chain, North Africa & Middle East, Unilever, and attended by over 100 participants. In his welcome remarks, Hassan Al Hashemi, Vice President, International Relations, Dubai Chamber of Commerce and Industry, explained that the virtual event comes at a time when companies from around the world are leveraging Dubai’s strategic geographic position and world-class logistics infrastructure to reposition their businesses as they prepare for a post-Covid recovery. Despite the unprecedented challenges seen this year in the wake of Covid-19, Dubai has found itself in a strong position, given its strong focus on embracing digital transformation and investing in logistics infrastructure, Al Hashemi remarked. He also highlighted the important role played Dubai Chamber in ensuring business continuity and improving ease of doing business during Covid-19 through its wide range of e-services and policy advocacy efforts.

Key trends The panellists outlined a number of key trends seen within the UAE logistics sector, including the seamless shift to digital services, 42 JANUARY 2021

the transition from land to sea freight and the adoption of advanced technologies, which they said were crucial in helping industry players navigate new challenges. The pandemic has proven that adaptive and agile supply chains are a competitive edge for successful businesses, the panellists noted, identifying last-mile delivery, increased integration between ports and free zones, closer collaboration among logistics and transportation players and a stronger prevalence of AI and robotics in production facilities as key trends that will reshape the future of the sector. Having recently reached a milestone after

successfully completing its first test drive with human passengers, Virgin Hyperloop’s new technology is expected to change the dynamics of passenger and cargo transportation in the future, the panellists added. Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub.


GPCA ANNUAL FORUM

GPCA’s in-person Annual Forum set be held in February 2021

The forum will address sustainable growth issues in the Chemical Industry

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he Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, recently announced that a special edition of the two-day 15th Annual GPCA Forum will take place on 10-11 February 2021 at the Madinat Jumeirah, Dubai, addressing the theme ‘Leadership in the New Reality–Catalyzing Sustainable Growth in the Chemical Industry’. The forum’s agenda will include four main sessions which will be addressed by CEOs of leading chemical companies and key players from the Arabian Gulf region and globally. They will discuss opportunities for the new era beyond Covid-19. The forum is set to attract senior industry executives from over 50 countries. The Covid-19 pandemic led to plunging petrochemical prices, eroding margins, and depressed demand during the first two quarters of 2020. The regional chemical industry started to bounce back in Q3 but has not recovered fully yet.

Net income growth in Q3-2020

Eminent attendees

Despite earnings being negative, the third quarter of this year closed with net income growth for the majority of listed GCC chemical producers, which posted an average net income growth of 78%. As the chemical industry emerges from the devastating impact of the coronavirus pandemic, leadership in the new reality will become front and center to companies’ journey towards success in 2021 and beyond. The Annual GPCA Forum will provide renewed perspectives from across the world on key issues that remain top of mind for industry leaders today including leveraging technology post crisis, what value creation will look like in a changing landscape, the need to upskill the workforce of the future, build supply chain resilience and drive positive sustainability results. Over the last decade and a half, the Annual GPCA Forum has established itself as the most anticipated downstream industry event, and promises to deliver a compelling program with an impressive line-up of speakers who will descend from all over the region and the world.

Some of the key speakers and panelists confirmed so far include Yousef Al-Benyan, CEO, SABIC and Chairman, GPCA; Ilham Kadri, CEO and Chairman of the Executive Committee, Solvay; Dr. Markus Steilemann, CEO, Covestro and President, PlasticsEurope; Dominic Waughray, Managing Director, World Economic Forum; Ahmed Saleh Al Jahdhami, CEO Downstream, OQ; Dr. Faisal Al-Faqeer, CEO, Sadara Chemical Company; Mosaed Al Ohali, CEO, Ma’aden; Dr. Ahmed Ali Attiga, CEO, APICORP and Rayan Fayez, MD and CEO, Banque Saudi Fransi. The Covid-19 pandemic has presented unimaginable challenges to the chemical industry the world over and redefined the priorities, business strategies and metrics for success for today’s organizations. “The 2021 Annual GPCA Forum will provide a platform to debate and answer key questions and more, and share lessons learned from the region and the world as we come together to navigate through the new reality in the post pandemic era and build a more resilient future for our industry, society and planet,” observed Dr. Abdulwahab AlSadoun, Secretary General, GPCA. JANUARY 2021 43


ETIHAD RAIL

Etihad Rail track laying works across Al Dhafra region inaugurated

HH Sheikh Hamdan inaugurating the first track-laying works of Package A.

Works are part of Package A of the UAE national railway network

H

H Sheikh Hamdan Bin Zayed Al Nahyan, the Ruler’s Representative in Al Dhafra, in the UAE’s vast Western Region (formerly Gharabiya), recently inaugurated track-laying works across planned sites in the region in Package A of Stage Two of the UAE’s national railway, during his visit to Etihad Rail’s railhead in Al Ruwais. Sheikh Hamdan was accompanied by Falah Mohammad Al Ahbabi, Chairman of the Department of Municipalities and Transport and Etihad Rail Board Member, and senior executives from the company. Sheikh Hamdan Bin Zayed Al Nahyan was briefed by Shadi Malak, Chief Executive Officer of Etihad Rail, on construction progress of Package A, which will connect the UAE rail network to Al Ghuwaifat on the Saudi border and the wider GCC region. Having started in early 2020, steady progress has been made on construction of Package A, which is now 59% complete.

Key milestones The project has achieved key milestones, with construction progress of Stage Two accelerated, while Etihad Rail’s Stage One continues to overachieve, with 2020 operations out performing 2019’s results. A presentation on progress being made across Package A revealed that half of the soil preparation works have been completed, with 79% of sand and rock cutting also finished. Overall, 59% of Package A construction works have already concluded. 44 JANUARY 2021

Group picture following the ceremonial inauguration of the tracklaying works of Package A of Etihad Rail’s Stage Two.

As the strategic enabler of the UAE’s ambition to become a global hub for advanced logistics operations, Sheikh Hamdan stressed the need to continue developing all four packages of Stage Two, according to the highest international standards. He also emphasised that the project aligns with one of the most important pillars of the UAE’s preparations for the next fifty years, and is a major contributor to the growth of the national economy, as the development of a national railway network enables a sustainable transport sector.

Government priorities During the presentation, Shadi Malak, CEO, Etihad Rail, referred to the directives of the Government on the importance of

training and employing young nationals to lead this vital sector, pointing out that the company’s team includes several Emiratis working in key positions. In addition, he stated that Etihad Rail has established the first railway Diploma in the UAE, to train and qualify the young Emiratis to be the driving force for this strategic national project, and confirmed that the first batch of students graduated in 2020 and already working on site. The visit was attended by HE Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure; HE Dr. Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, CEO, Abu Dhabi National Oil Company, ADNOC; HE Eng. Awaidha Murshed Al Marar, Chairman of the Department of Energy, Member of the Executive Council in addition to several senior officials.


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UAE ranks amongst world’s Top 5 most globally connected countries DHL EXPRESS

DHL Global Connectedness Index 2020 signals recovery of globalization following COVID-19 setback

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he UAE has emerged as one of the top five most globally connected countries in the world according to the recently released DHL Global Connectedness Index 2020. Now in its seventh edition, the report compiled in collaboration with DHL and the NYU Stern School of Business provides a comprehensive assessment of globalization during the Covid-19 pandemic. It tracks international flows of trade, capital, information and people across 169 countries and territories, finding that the UAE, along with the Netherlands, Singapore, Belgium and Ireland, lead the global ranks. After holding steady in 2019, current 46 JANUARY 2021

forecasts imply that the index will fall significantly in 2020 due to the distancing effects of Covvid-19 on societies, such as closed borders, travel bans and grounded passenger airlines. Trade and capital flows have already started to recover and international data flows surged during the spreading pandemic as in-person contact went into the online world, boosting international internet traffic, phone calls and e-commerce. “Connected supply chains and logistics networks play an essential role in keeping the world running and stabilizing globalization especially at a time of a crisis that spans our globe. This reminds us of the

Nour Suliman, CEO, DHL Express MENA.


DHL EXPRESS

need to stay prepared for any challenge,” stressed John Pearson, CEO, DHL Express. “The UAE has remained resilient to the global pandemic, prompted by the government’s vigilant efforts to contain the spread very early on and minimize the country’s health, safety and economic impact,” commented Nour Suliman, CEO, DHL Express MENA. “This report demonstrates both the dangers of a world where critical linkages break down and the urgent need for more effective cooperation in the face of global challenges,” remarked GCI lead author Steven A. Altman, Senior Research Scholar and Director of the DHL Initiative on Globalization at the NYU Stern School of Business.

Digital flows surging, trade and capital flows recovering, people flows plummeting Predictably, lockdowns and travel bans to curb the spread of the virus have led to an unprecedented collapse of people flows in 2020. The number of people traveling to foreign countries is on track to fall 70% in 2020, according to the latest UN forecast. International tourism may not return to its pre-pandemic level until 2023. In contrast, trade, capital, and information flows have held up surprisingly well. International trade has rebounded strongly after a sharp plunge at the onset of the pandemic and remains a vital backbone for economies worldwide.

DHL delivers first consignment of Covid-19 vaccines to Singapore

Rigorous planning and testing to ensure supply chain supports vaccine’s stringent temperature requirements

John Pearson, CEO, DHL Express.

DHL, the leading global brand in the logistics industry recently announced the successful delivery of the first batch of COVID-19 vaccines to Singapore. The vaccines arrived on a cargo flight from Brussels, Belgium to Singapore. Temperature trackers equipped with sophisticated GPS are also packed within each thermal shipper box to provide full visibility throughout the shipment’s entire journey. DHL Global Forwarding arranged for the collection of the vaccines from the manufacturing site in Puurs, Belgium where the cargo was accompanied by security escorts on the road to the Brussels International Airport. The cargo arrived at Singapore’s Changi International Airport on where DHL handled the customs clearance and final delivery to a designated location in Singapore. The company will also handle the return of these special shipper boxes to Europe. Throughout the journey, the vaccine shipments were tracked by DHL. “Every effort was made to ensure the vaccines are delivered within the fastest possible time, ensuring the quality, safety and security of these critical shipments,” emphasized Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.

More than 9,000 specialists work across DHL’s dedicated global network so that pharmaceutical, medical devices, clinical trials and research organizations, wholesalers and distributors, as well as hospitals and healthcare providers are connected across the value chain and through digitalization, from clinical trials to point of care, and every step in between, according to a corporate press communiqué. DHL’s portfolio for the healthcare industry includes 150+ pharmacists, 20+ clinical trials depots, 100+ certified stations, 160+ GDPqualified warehouses, 15+ GMP-certified sites, 135+ medical express sites, and a time-definite international express network covering 220 countries and territories. On a global scale, logistics providers are challenged to establish medical supply chains rapidly to deliver vaccines of unprecedented amount of more than 10bn doses worldwide -- also in regions with less developed logistics infrastructure, where approximately 3bn people live. To provide global coverage of the next two years, DHL estimated in its vaccine whitepaper report that up to 200,000 pallet shippers and 15mn cooling boxes as well as 15,000 flights will be required across the various supply chain setups. JANUARY 2021 47


TRISTAR GROUP

Tristar Group closes US$ 8mn contract with Linde Global Helium

The Company will be the sole transport provider for Linde’s helium cargo across the GCC

Eugene Mayne, Founder & CEO, Tristar Group.

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ristar Group recently announced that it has won a five-year contract, valued at US$ 8mn, with Linde Global Helium. Playing a key role in Linde Global Helium’s supply chain, Tristar will provide transport for Linde’s helium cargo across the GCC. Tristar will utilise its specially designed fleet which has advanced built-in safety features, to ensure the safe transport and delivery of Linde’s cryogenic containers. The cargo will be transported by Tristar’s professional drivers, who are all accredited and qualified in the handling of hazardous products including cryogenic gases at extremely low temperatures. “We are very pleased to continue working with Linde as they share Tristar’s values and hold the same standards when it comes to health and safety,” commented Eugene Mayne, Founder-CEO, Tristar Group. “With Tristar, we have a reliable partner who supports us in ensuring the supply of our global helium customers safely and on time, wherever they are,” remarked Kurt Richter, Head of Helium Supply Chain Management, Linde. Tristar has been providing transportation services to Linde Global since 2006 across the GCC. Earlier this year, Tristar Group’s joint venture in Saudi Arabia, United Stars, signed a five-year contract with LindeSigas, to transport industrial and medical gases to Linde-Sigas clients across the Kingdom from five centrally located depots in Dammam, Jeddah, Riyadh, Jubail, and Yanbu. 48 JANUARY 2021

Tristar adds new road fleet for Shell in Oman New additions equipped with advanced safety features The Tristar Group has announced that it has successfully inducted six fuel tankers and 11 Scania trucks to its fleet in Oman, which are under contract with Shell. The tankers have a capacity of 36.4KL, and have safety features including emergency braking, lane departure warning signals, an electronic stability programme and state of the art air bags and inflatable curtains. The Scania trucks have safety features that will improve performance and reduce CO2 emissions. “As a key player in the maritime and road transport industry, it is our duty to take a leading role in improving safety conditions by ensuring all our vessels and vehicles are equipped with the latest technology,” affirmed Eugene Mayne, Group CEO, Tristar. Tristar Oman was established in 2002. Based in Muscat, Tristar Oman is one of the leading bulk liquid road transport companies in the Sultanate and is a key transporter for major international and local oil and gas companies.


TRISTAR GROUP

Tristar Group CEO awarded the Seatrade Maritime Lifetime Achievement Award 2020 Recognition given to Eugene Mayne for his sterling contribution to the industry

Tristar Group Founder and CEO, Eugene Mayne, has been awarded the prestigious Lifetime Achievement Award 2020 at the recent Seatrade Maritime Awards Middle East, Indian Subcontinent & Africa 2020. Held on December 14, 2020, the unique first of its kind virtual ceremony honoured the work of individuals and organizations from the maritime industry who achieved great success despite the global pandemic. “We are proud to appreciate a global expert in the maritime energy industry, such as Eugene Mayne, Founder and CEO, Tristar Group. His dedication and innovative approach is a story to be told for future generations, as a role model for entrepreneurship and smart leadership,” commented Chris Hayman, Chairman, Seatrade. Now in its 17th year, Seatrade Maritime Awards Middle East, Indian Subcontinent & Africa 2020 is the largest and longest established awards programme in the region.

Tristar’s ‘Safety at Sea’ Conference attracts over 1,000 participants Event was held virtually on December 9 and discussed challenges facing the sea-faring community The Tristar Group held their second annual ‘Safety at Sea’ conference virtually on December 9 with more than 1,000 attendees across the globe with a majority of officers and crew attending from aboard their vessels. Speakers were from oil major Shell, global law firm Holman Fenwick Willan (HFW), global maritime health advocate Marine Benefits and Kuwait Oil Tanker Company (KOTC). All of them addressed mental health and Covid-19 issues faced by seafarers. In his keynote address Eugene Mayne, Founder and CEO of Tristar Group, urged the industry to draw attention, with all relevant stakeholders, to the plight of seafarers during his opening address. He referenced a report from the Norwegian Hull Club that estimates there are about 400,000 seafarers trapped at sea due to the pandemic. “Shipping is responsible for over 80 per cent of global trade and depends on

more than two million seafarers worldwide. A broader recognition of seafarers as key workers is essential to manage their health and wellbeing,” Mayne observed. He further said that travel bans, embarkation and disembarkation restrictions have severely strained working conditions in the global shipping sector. As a result, seafarers are either unable to board ships or are stranded on board extending their contracts beyond their original tours of duty, often beyond the 11-month maximum period on board. “This situation has had a severe impact on the well-being of seafarers and other marine personnel including the right to physical and mental health, freedom of movement and a right to family life. It also dramatically increases the risk to the security of maritime assets including potential for environmental incidents,” Mayne added.

JANUARY 2021 49


VACCINE LOGISTICS

UAE’s Hope Consortium accelerates vaccine distribution and supplies

The Hope Consortium has partnered with four key logistics services providers.

Expands its offerings through four major partnerships covering 170 countries

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he newly-launched Hope Consortium, a UAE-based publicprivate partnership, has bolstered its distribution reach following a strategic agreement with leading international freight forwarders. The latest consortium partners, which include Agility, Aramex, Hellmann and Kuehne + Nagel, will help address the different steps of the logistical challenge, including ‘last mile’, with a capacity of billions of SARS-CoV-2 vaccine doses by the end of 2021, reports WAM, the UAE official news agency. Spearheaded by the Department of Health–Abu Dhabi (DoH), the Hope Consortium appointed these global transport companies based on their expert abilities and reach to safely and effectively deliver vaccine doses under cold and ultracold conditions between transportation hubs, warehouses, medical facilities and other final destinations in over 170 countries. Representing the top global and Abu Dhabi supply chain solution players, the Hope Consortium consists of Etihad Cargo, Abu Dhabi Ports, Rafed – the healthcare 50 JANUARY 2021

purchasing arm of Abu Dhabi-based ADQ and Switzerland’s award-winning SkyCell, which develops next-generation, temperature-controlled logistics containers for the pharmaceutical industry.

Recipe for Success “The Hope Consortium’s success relies upon the collaboration of public sector entities and leading private sector companies across the global logistics supply chain. This partnership demonstrates the unrivalled global strength of Hope Consortium,” stressed Dr. Jamal Mohammed Alkaabi, Undersecretary, DoH. “The inclusion of leading freight forwarders will further strengthen the Hope Consortium proposition and elevate our global capabilities,” noted Martin Drew, Senior Vice President Sales and Cargo, Etihad Aviation Group. Through the Hope Consortium, Agility looks forward to utilizing our global logistics footprint and warehousing network to make a difference on a global scale,” observed Khadim Al Darei, Chairman, Agility Abu Dhabi.

“Our part of the promise is to help deliver a portion of the billions of vaccine doses to their target populations on-time and in accordance with the world’s most stringent health and safety standards,” stated Captain Mohamed Juma Al Shamisi, Chairman, Aramex.

Two-pronged approach “Combining a risk-based approach and integration of secured digital solutions into supply chains, Hellmann offers qualified end-to-end transport with capabilities of real-time and proactive intervention,” asserted Reiner Heiken, CEO, Hellmann Worldwide Logistics. “We will leverage our unique strengths in the vaccine supply chain and facilitate vaccine availability across the world. We will make it happen,” assured Robert Coyle, Senior Vice President, Pharma & Healthcare Strategy, Kuehne+Nagel. Between them, the four companies involved in the Hope Consortium cover 80 percent of the world’s countries and transported over four million tons of air freight cargo globally last year.


VACCINE LOGISTICS

Rafed an Abu Dhabi Ports collaborate on UAE’s Cold Store Distribution Centre Centre is the UAE’s largest Health & Medical Supplies facility

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afed, the recently established healthcare procurement company, and Abu Dhabi Ports, the region’s premier facilitator of logistics, transport, and trade, have signed a collaboration agreement to jointly launch the largest healthcare and medical supplies cold store distribution centre in the UAE. Under the strategic collaboration agreement, Abu Dhabi Ports will deliver a state-of-the-art warehouse and inventory management solution for upstream, midstream and downstream operations as Rafed’s fourth-party logistics service provider. Both Abu Dhabi Ports Group and Rafed are members of the Hope Consortium launched last week. Spearheaded by the Department of Health Abu Dhabi, the consortium represented a public-private partnership and offers a complete supply chain solution to address vaccine transport, demand planning, sourcing, training, and digital technology infrastructure, and facilitate vaccine availability across the world, it was revealed in a press communiqué.

Technologically advanced The new distribution centre will be the largest, most technologically advanced centre in the UAE. The partnership will provide stakeholders with streamlined services and synergies across multiple business areas, specifically enabling them to deliver pharmaceuticals, medical equipment and consumables across the local and regional supply chains. Both Abu Dhabi Ports Group and Rafed are members of the Hope Consortium launched last week. Spearheaded by the Department of Health Abu Dhabi, the consortium represents a public-private partnership and offers a complete supply chain solution to address vaccine transport, demand planning, sourcing, training,

Rafed and ADP collaborate to store and transport the pandemic vaccines.

and digital technology infrastructure, and facilitate vaccine availability across the world. “As part of our strategy, we are creating a new business model that enhances the procurement process of the healthcare sector that is primed for future growth and deliver exceptional value, efficiency and quality,” commented Rashed Saif Al Qubaisi, CEO, Rafed. “Rafed’s agreement with Abu Dhabi Ports as their sole provider of logistics services is a testament to our capabilities and expertise in efficiently managing end-to-end supply chain and associated value added services to support the healthcare sector across the country,” remarked Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports.

Enhanced logistics capabilities Abu Dhabi Ports recently announced its enhanced logistics capabilities for the storage and distribution of more than 70mn Covid-19 vaccines at its dedicated 19,000sqm temperature-controlled warehouse facility in Khalifa Industrial Zone Abu Dhabi (KIZAD).

The technologically advanced facility is equipped to store vaccines and other pharmaceutical products at a temperature range of 2 to 8 degrees as well as the more extreme range of -80 degrees. The facility is equipped with temperature and humidity systems monitored digitally via a control dashboard.

Ensuring availability and quality Rafed aims to ensure the availability and quality of essential goods and services for Abu Dhabi’s healthcare sector, which include pharmaceuticals, equipment, diagnostics and consumables, and to reduce operating costs for healthcare providers. As a Group Purchasing Organization (GPO), Rafed specialises primarily in healthcare procurement which includes supplier sourcing and contract management, procurement ordering services, warehousing, and distribution. Rafed was developed by and is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy JANUARY 2021 51


VACCINE LOGISTICS

SAL unveils new timely tailored infrastructure to streamline vaccines distribution New pharma and perishable facilities unfurled at the Cargo Village in Riyadh

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audi Arabian Logistics Company (SAL), the Kingdom’s leading cargo ground handler and logistics provider, recently announced the unveiling of its new pharma and perishable facilities at the Cargo Village in Riyadh, including the much-awaited Covid-19 vaccines soon to be rolled out worldwide. The Saudi Arabian Minister of Transport Eng. Saleh bin Nasser Al-Jasser inaugurated SAL’s new facilities at the country’s main gateway, King Khalid International Airport in Riyadh, Saudi Arabia. SAL, a subsidiary of the Saudi Arabian Airlines Corporation, that is tasked to complement the nation’s goal of creating a global logistics hub. With 5,000sqm of storage, the pharma and perishable facilities combined can adequately handle up to 365,000 tons of cargo a year. SAL’s partnership with other stakeholders including the Saudi Customs and Saudi Food and Drug Authority has made clearance of shipments easier and faster.

A section of SAL Pharma officials pose for a picture.

Sophisticated operations The new facilities have four docks for loading refrigerated containers. The project, which started its operations, also has twelve warehouses with different temperatures ranging from minus 20 degrees Celsius to 25 degrees Celsius to suit the nature and type of cargo to be stored. In addition, within the facility, there is a special storage dedicated for flower cargo. “The launch of the Riyadh Cold Storage facilities comes at a historic moment that coincides with the world’s anticipation for the delivery of the Covid-19 vaccine. This urgency makes us harness the capabilities of the operation capacity of our pharmaceutical facility and be fully prepared to receive and handle the new vaccines in coordination with the health authorities,”asserted Omar Hariri, CEO, SAL. The new project, he added, will enhance SAL’s handling and storage services for medical and pharmaceuticals in line with 52 JANUARY 2021

SAL Pharma officials at a facility.

the highest quality standards approved by appropriate EU regulators. The opening of the facilities ushers in a new and advanced phase for handling sensitive cargoes including foodstuffs that require special care. Within the facilities, there are divisions run by the Saudi Food and Drug Authority and the Saudi Customs to inspect and expedite the cargo handling process to avoid an unbreakable cool chain.

Temperature regulation The new facilities also feature a 650sqm temperature control breakdown area. There’s also an area for shipping refrigerated containers enough for 20 active containers. It is also equipped with a

thermal isolation area. Last May, SAL started its operations at its new facilities in the Riyadh-based King Khalid International Airport’s Cargo Village. The total area of the facilities is 42,000sqm while its operation capacity reaches 450,000 tons a year including cargoes and goods handled. SAL aims to contribute to the Saudi Vision 2030 objectives and turn the Kingdom into a global logistics hub and invest in its strategic geographical location connecting three continents. The Saudi Ministry of Transport assured the country’s transport infrastructure and facilities, particularly air cargo and logistics, are fully prepared to handle Covid-19 vaccines once it is ready for distribution.


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THOUGHT LEADERSHIP

The pandemic has thrown much of the Supply Chain mechanism and ecosystem into disruption and disarray. The search is now on for the new normal and the new paradigm writes Tom Craig President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain— Editor.

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irstly, I’d like to put a disclaimer. I did not predict a global pandemic and the impact it would have on businesses, supply chains, logistics, and transportation. Supply shocks. Demand shocks. Amazing front line efforts rife across supply chains, transportation, and logistics. As a note, much of what you may read for 2021 is a continuation of what is happening and what is accelerating in the e-commerce, technology, investors, retail domains. So I am going to take a different approach. It will not be predictions and forecasts. It will not revisit what happened and what will continue to happen. Besides what is happening—let us talk about what should be happening—the new normal, pandemic takeaways. Some of the content reflects what supply chain management was supposed to be when the term took hold and before it became about costs.

Validation 2020 validated the strategic and critical importance of supply chain management. 54 JANUARY 2021

In search of the new normal for Supply Chain Management Coupled with that is the recognition of the end-to-end supply chain. That is a different take from the pro-Covid when it was just SCM. Supply chains manned the front line in keeping companies and therefore economies going. That recognition had begun earlier with e-commerce, Amazon, and how they used a new supply chain management to drive its order delivery / click-to-door times. Supply chains also show in discussions about global trade and onshore / nearshore. So here are ideas on changes to supply chain management as part of the new normal. There is a slant on operations which is important and is and was with coronavirus: Organization: It is time to move away from the transportation, warehouse, logistics approach. Define instead as upstream and downstream. So that• Mirrors and aligns with how the business operates and the supply and demand shocks with Covid. • Recognize upstream chaos with suppliers and import transportation. Container

lines, ports, upstream complexity, size, nonlinearity, and supply chains within supply chains. It also brings procurement / purchasing and inbound transportation/ logistics into this segment. • Delineate downstream and all the transportation problems. • Enforces SCM’s strategic and critical importance. • Break from costs and cost centers view. That obsession has held back supply chain management development. • Move from nodes (stop) and links (start) to a flow of materials, parts, components, and finished goods. Think of the inventory turn speed and financial benefit. • Operate supply chains with the end-toend scope. • Bring focus on resilience. • Enhances planning and operations. Role of transportation and logistics: Tied to the organization is how transportation and logistics fit into this supply chain. Their importance is unquestioned, and I am not diminishing it. Covid taught us that.


THOUGHT LEADERSHIP

JANUARY 2021 55


THOUGHT LEADERSHIP

However, with an end-to-end supply chain, then how to position them is a discussion that needs to be had. They should be defined in terms of the supply chain, both upstream and downstream and then blended accordingly. I see them in a type of matrix management across the supply chain organization for operations, negotiations, and performance/relationships management. Also, there are 3PL providers. With the emphasis on the supply chain, they should transition to 3PSCM or SCMaaS, which brings in some of the technology that is discussed below. Otherwise, the logistics focus of these outside firms can clash with the supply chain focus of the company. Borrowing from the original 3PLs which were freight forwarders with staffing inside the customer, I think this would create a continuous collaboration among the buyer and seller. That would be a unique relationship with great upside for all. Technology, Resilience, Blockchain, Visibility: Technology and investors have gotten much attention. And I expect they will be, both for predictions/trends and accelerated usage for 2021. To me, tech options are for supply chain operations and planning. They are not an option. The question is which you need most. First, part of the company tech group should be imbedded in supply chain management. This would improve understanding of needs, operation detail, any vendor selection and implementation. TMS (transportation management system) and ERP (enterprise resource planning) are two technologies that have been around for a while. This section is about ‘new’ ones. Much of the tech push comes down to resilience and the need for it. Some see resilient supply chains meaning technology, which cannot catch diseases, replaces humans. Others see the improvement to operations or planning. Warehouse robotics for order picking and storage and autonomous/driverless vehicles meet both needs. Digitization can meet both with providing data that can be used with analytics and artificial intelligence. Move away from documents. Much in supply chain management is not digitized. Nevertheless, digitization is a 56 JANUARY 2021

BOPIS vs Click-toDelivery. It is about order picking performance and costs and last-mile delivery cost. There should be nothing in the analysis as to an allocation of store overhead/fixed costs. requirement of what must be done. This can be seen with international and all the parties involved in each transaction. So this area is one that needs attention. Some automation is in the hyped stage. Blockchain is an example. It is supposed to build supply chain visibility and chain of custody. That has not been established and, at times, seems to be about cryptocurrency than supply chain management. Visibility is much needed. It should be end-to-end, upstream and downstream. It also ties to the chain of custody. Two points here. One is the recognition of the number of stakeholders and participants involved. Think of all the suppliers, their suppliers, various transportation modes and providers, warehouses, customs and where they are located. A good example is with an import order and shipment. The players you see and do not see. That reach and scope is a weakness in present visibility and blockchain, activities that are missed. The other point is this is really about your purchase orders and your customers’ orders. It starts with your purchase order and your supplier’s performance and your performance with a customer order. The perfect order—delivered complete, accurate, and on time. The need is for an integrated view. Where is my purchase order? Will it

arrive as planned? That is the starting point—at the supplier. Same with what you do with the customer order. The other point is misdirection. Is not only about transportation and a track and trace of a shipment. Where is your end-to-end inventory and that includes in-transit? Is it in the correct positions? Transport is a secondary means to all that. Some of the technologies require spending and resource capabilities that not all firms have. For them, assessment and increased focus must be used to improve supply chain management. E-commerce: Many retailers were closed during the pandemic. That and public health concerns made shoppers go online. E-commerce growth surged. Big time. Retailers who were already positioned with their supply chains to drive the online customer experience are doing well. It would be interesting to see costs for two retail fulfillment options of in-store versus warehouse. Fulfillment—in-store vs warehouse. Or for BOPIS vs Clickto-Delivery. It is about order picking performance and costs and last-mile delivery cost. There should be nothing in the analysis as to an allocation of store overhead/fixed costs. If there is, then perhaps there should be recognition of the cost for customers to pick up orders instead of having them delivered. The point is to have apples with apples, and not mixed fruit salad. Manufacturing should gear up for its customers wanting fast order delivery. E-commerce is more than customers sending online orders. It is about those orders and delivering them as specified by customers. Tied with the retail and manufacturing online business are the supply chains for e-commerce as compared to traditional business. How many warehouses should there be to provide needed order delivery speed? Will firms use the standard vertical warehouses designed for pallets of products instead of the horizontal for online? The volume of orders is a factor here as is the shipping of cases or pallet loads. Conclusion: The pandemic is changing how and what business is done and what customers are doing. This means both now and post-pandemic—the new normal. It is a matter of what should be with supply chain management versus what will be.


TECHNOLOGY TRENDS

Infor’s top technology predictions for 2021 Soma Somasundaram, Chief Technology Officer & President-Products, and Rod Johnson, Global President and Chief Revenue Officer, Infor, offer their predictions on cloud, AI and supply chain developments in 2021—Editor. Cloud and AI - Soma Somasundaram Cloud technology will reinvent event experiences After the US Open tennis tournament successfully pivoted to cloud and AI this year to enhance the virtual experience for fans who could not attend the physical event, we will see an uptick in physical events leveraging cloud technology to give viewers tailored experiences. With 2021 primed to grip the world’s attention with several major events, such as the Summer Olympics in Tokyo and the Wimbledon Championship, cloud technology is poised to completely reinvent what we know about fan experiences today. The potential for using cloud technology to transform events is enormous — think real-time crowd excitement analysis to optimize highlights and advertisements, extremely low-latency live feeds, and moderated crowd interaction – all hosted on robust cloud platforms. Multi-tenant cloud architectures will be the new gold standard Using multi-tenant cloud solutions means companies are automatically kept up-to-date with the most cutting-edge technology, without having to worry about manual updates or replacing hardware. As we move into a new year that likely will bring more uncertainty, multitenant cloud solutions will become critical technology differentiators, helping businesses remain agile and innovative, while also reducing their e-waste footprints and helping them move closer to their sustainability targets.

AI will transform the hiring process In the unpredictable job market of 2021, it will be critical for organizations to leverage AI to ensure they find the right candidate for the job. AI will enable HR departments to become more proactive in their hiring and help them determine a candidate’s cultural fit by using data to measure the quality of a hire. Innovations such as intelligent screening software that automates resume screening, recruiter chatbots that engage candidates in real-time, and digitized interviews that help assess a candidate’s fit, will start becoming commonplace in HR departments. AI also holds great promise for creating more diverse and inclusive workplaces, given its ability to reduce biases and add objectivity into employment decisionmaking through AI-powered algorithms that will identify the unique qualities of candidates. AI in healthcare will become mission critical Over the next year, we will see the accelerated adoption of AI across many areas of healthcare. By applying machine learning to real-time global data sets, healthcare professionals can more accurately track contact between staff and infected patients, enable accurate diagnoses, utilize predictive analytics to track personal protective equipment (PPE), optimize workforce allocations, and develop more effective and lasting vaccinations.

Supply Chain - Rod Johnson Supply Chains will rapidly become digital As a direct result of Covid-19, we are going to see the acceleration of digital supply chains in 2021. While supply chain leaders have traditionally viewed digital transformation in the context of efficiency and cost, the focus will now be on agility and resiliency. That’s where digital technology comes in. A multi-enterprise, digital supply chain enables better end-to-end visibility, better predictive analytics, and better and smarter automation. Leaders will be able to customize and flex their supply chains based on market demand and make better use of ecosystem partners. These digital tools are as far ranging as artificial intelligence, augmented reality, and robotic process automation and are expected to shift early promises to impactful value propositions. Artificial intelligence will be critical for real-time supply and demand matching As the incredible supply chain disruptions of 2020 unfolded, it became clear that managing real-time supply and demand matching and forecasting were no longer tasks humans can take on alone. It’s no longer reasonable to expect a supply chain leader to predict when one country’s market will suddenly close and another’s will open, or account for evershifting materials and costs — especially as government restrictions on transportation and travel change rapidly. In 2021, we will see supply chain managers accelerating their adoption of AI to augment workers’ instincts and experiences and provide them with intelligent insights into changing market conditions, letting them accurately forecast supply and demand in real-time. JANUARY 2021 57


OPINION / CONTRIBUTION

2021 Forecast for trade and investment in the Middle East Joe Hepworth, the Dubai-based Director, OCO Global, and Founder, The British Centres for Business (BCB), examines his crystal ball to predict 2021 trends for FDIs in the region against the backdrop of the ubiquitous though unwelcome Coronavirus that has dominated the world for all of 2020.

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or all the challenges that currently exist in making predictions for the year ahead, I don’t envy those who were doing the same exercise a year ago, given what’s transpired since (much as they’d have been able to claim force majeure-unforeseeable circumstances that prevent someone from fulfilling a contract). Based on where we are now, in the latter stages of the whole Covid-19 episode and with the signal advances in vaccination progress in November and December however, I do think that we can make some relatively confident calls on the year ahead in terms of the foreign direct investment and international trade landscape for the Middle East. The first and most obvious thing to suggest is that it will be a good year, taken in isolation. The effect of Covid-19 in 2020 and the impact it has had on trade and investment (estimated to be down by 40% versus 2019) was such that even very modest growth would look good in relative terms. As such, don’t be fooled by year-on-year figures. For anyone who’s reporting them in 2021, a more accurate benchmark would be 58 JANUARY 2021

2019 or 2018 figures, but do expect a return to growth, albeit from a much lower base.

Surging UAE-Israel ties The flurry of activity between the UAE and Israel that’s marked the last few months looks set to continue into 2021. It’s likely to change in nature however, with more substance replacing the initial excitement, as tangible deals start to be struck. Based on the work we’ve been doing with Israeli companies, the main focus at this stage looks to be on establishing trade links–finding agents, distributors & commercial partners – ahead of potential inward FDI projects over the next few years once the market has been proven. Should other GCC countries beyond Bahrain and the UAE also agree peace terms with Israel, a similar commercial dividend would be reaped across the whole region. The UAE would stand to benefit the most from this as it would bring its regional hub status into full play for Israeli companies, and this in turn would be a significant stimulus for inward investment from Israel.

Of course, geopolitics continues to have a massive impact on trade and investment, and the thawing of other regional relationships would have a similar impact, whilst we also wait to see how the new rulers of Kuwait and Oman will shape their respective national approaches post-Covid. International politics also has a large influence and all eyes are on the new Biden administration in the USA to see how it will engage with the Middle East, and Iran in particular.

The China factor The United States’ relationship with China is very likely to impact the region. As a result of Covid, we are already seeing multinational companies look at reshoring or near-shoring key supply chain nodes to reduce the reliance on China. We see the Middle East as a likely winner from this pattern with its relative proximity to key demand markets in India, Africa and Europe. Add in the continued USA-China tensions – and we don’t expect a material thaw under President-elect Joe Biden in the short term – and the Middle East looks to


OPINION / CONTRIBUTION

Joe Hepworth Director, OCO Global, and Founder, The British Centres for Business (BCB) With responsibilities across all market sectors and multiple regional countries, Joe oversees trade and export support projects across the region and is responsible for delivering the company’s investment attraction services in the region. He also leads the company’s economic development consulting team for the GCC. As part of Joe’s work with OCO, he holds a number of other important client representational roles in the Middle East. He is Director for Missouri Department of Economic Development in the Middle East; Regional Director for IDA Ireland; Middle East Director for the Connected Places Catapult and has managed the UK’s Department of International Trade regional delivery contract since 2013.

play an important role as a ‘neutral’ region relatively unscathed by bilateral trade wars, which is obviously positive for trade and investment here. The region also stands to benefit from continued disruption of the uncertainties around the Brexit trade deal, with UK companies in particular looking for benign regions to trade with. The recent raft of new laws announced in the UAE regarding both corporate legislation such as 100% ownership and more; social and liberal changes for expats, further enhances the UAE’s position as the ‘go to’ MENA location for foreign companies looking to establish a regional presence. Related to this, one of the biggest trends for 2021, in the UAE in particular, is likely to be wholesale corporate restructuring amongst multi-nationals already present here as they look to realign and take advantage of the new rules emerging in the first quarter.

Consolidation inclination This will most likely see a consolidation of sites and trade licenses and a flight to value,

Expo 2020, the ultimate forum for countries to showcase their best technology, culture, innovation, and more with the winners being those jurisdictions – emirates or free zones – who appreciate this and can offer something more than an office or warehouse lease. A look at 2021 wouldn’t be complete without considering the importance of Expo 2020 Dubai as a vital celebration of the UAE in its golden jubilee year. The Middle East’s first ever mega-event moment in the sun and, by October 2021 I hope, the global lodestar for post-Covid 19 recovery. Whilst Expo isn’t a trade show, it’s still the ultimate forum for countries to showcase their best features–technology, culture, innovation, ecology and more -so expect this to be done with fervent pride, and for the UAE to benefit as the host of an event that’s now even more important than was originally intended. JANUARY 2021 59


SWISSLOG—CASE STUDY

Organic wholesaler doubles output with AutoStore empowered by Swisslog The leading wholesaler in the Swiss organic market, Bio Partner, has doubled its output following the implementation of innovative robotic logistics from Swisslog at its facility in Aargau, Switzerland.

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io Partner, the leading service provider and wholesaler for the Swiss organic specialist market, supplies business customers in the organic specialist trade as well as the rest of the retail and food industry from its location in Seon. As a result of the merger with Somona, the warehouse reached its performance and capacity limits, and the wholesaler turned to a local partner with a global footprint to deliver an automated storage system. The 12,200m2 warehouse handles 10,000+ products, a process now optimized thanks to the high-performance AutoStore storage solution, delivered by global warehouse automation specialist, Swisslog, a member of the KUKA group. “Companies with large warehouses have to constantly work on increasing efficiency and our robot systems work flawlessly around the clock,” commented Dr. Christian Baur, CEO, Swisslog. The aim of this new system from Swisslog is to automate the storage and picking of the dry assortment and to compress it in terms of volume.

Consistently high performance The new AutoStore system at Bio Partner has 44 robots with the ability to handle 25,000 containers and at least 6,000 products completely autonomously.“The high-tech robots create a volume of 900 containers per hour and, depending on the development, this system can still be expanded considerably,” continued Dr. Baur. The orders are automatically transmitted to the AutoStore system and processed in 60 JANUARY 2021

accordance with parallel processes, which are a huge advantage in large warehouses. This means that higher volumes can be made available in a shorter time. Picking errors cost time and money, and robots don’t make mistakes since the hardware and software work together perfectly.

Modular Warehouse Management Bio Partner relies on the modular warehouse management software SynQ from Swisslog to orchestrate the warehouse and picking processes based on data-based

insights. “Our company relies on long-term, sustainable partnerships. With Swisslog, we found a strong local partner and the system installation was quick and easy,” remarked Lukas Mettler, Head, Warehouse Logistics, Bio Partner. As a leading global integrator with over 200 realized projects, this is just one example of many projects which showcase the wide implementation spectrum of AutoStore empowered by Swisslog. Swisslog provides data-driven and robotic solutions for logistics automation alongside reliable, modular service concepts.


WHO GIVES YOU THE COMPLETE STORAGE SOLUTION? SSI Schaefer is the total solution provider in Intralogistics. Your one-stop shop for warehouse storage and automated systems needs in the MEA region and worldwide. P.O. Box 37600 Dubai Logistics City – Plot WB54 | Dubai South, Dubai United Arab Emirates | +971 4 804 8100 | ssi-schaefer.com


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