July – August 2021 Issue 82
ENHANCING THE BUSINESS OF LOGISTICS
LOGISTICS AUTOMATION The New Normal
SSI Schaefer
Consolidating Regional Presence
ADSO
Maintaining Momentum
GWC Qatar
Prepping for the World Cup 2022
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Democratizing Automation 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
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Automation or automatic control in logistics refers to the use of control systems, machinery or software to improve the efficiency of operations. It usually applies to processes that must be performed in a warehouse or distribution centre and which result in minimal human intervention. In fact, along a supply chain (warehousing, procurement, distribution, customer service, reverse logistics and related operations) there are a multitude of processes that could be automated for all categories of cargoes. The most notable benefit of automation is the labour savings a company will get. Aside from this, automation proves to save materials and energy as well as enhance the quality and accuracy of the business processes. This principle also allows businesses to reduce the time they waste on manual tasks as automation can take care of them with higher percentage of accuracy and fewer errors committed. In other words, automation speeds up business processes. That is automation in general. However, when we talk about logistics automation, we mean streamlining and automating the processes in the logistics industry which can include the following tasks: processing freight operations, documentation, tracking and many more. Global Supply Chain engaged with the SSI Schaefer duo comprising Matthias Hoewer, General Manager, SSI Schaefer Middle East and Africa and Carsten Spiegelberg, General Manager-Logistics Solutions, for their take on the latest in the industry and offerings for its clients in the region. Elsewhere, we spoke exclusively with Riaz Karmali, General Manager, ADSO, possibly one of the oldest freight forwarding and Logistics Services Provider in the UAE and the region now in operation for the past 53 years. Qatar’s GWC is also playing a key role in the country’s logistics preparations for the World Cup 2022. We get the details from the Group CEO, Ranjeev Menon, in a special interview. Cathay Pacific is also doubling its efforts towards sustainability. We have the inside track in a wide ranging interview with Vishnu Rajendran, Area Manager, Middle East, for the airline. Add to this our latest news roundup, updates, OpEds and a lot of carefully sieved and well-curated input to stimulate and satiate the readers’ quest for gainful insights in the logistics and supply chain arena. Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com JULY – AUGUST 2021 3
July – August 2021 Issue 82
20
Logistics Automation
Editorial Espousing the cause of automation in the logistics sector.
36 40 Volvo Trucks 42 IMILE 44 Etihad Rail King Abdullah Port KSA 46 Renault Trucks 48 50 Hellmann-KLM-Martin Air MoU GWC Qatar
An exclusive interview with Group CEO Ranjeev Menon.
06 Swisslog & Automation 21 22 SSI Schaefer 28 NAFL-Fives Group MoU NEWS
Up to date news of the Global Suppy Chain industry
Increasing the value of Warehouse Automation through modernization Top two company officials provide the lowdown on the latest developments NAFL has signed an MoU with Parisheadquartered Fives group for automation initiatives
31 ADSO
Tête-à-tête with Riaz Karmali, the company’s General Manager.
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Unveiling the latest genre of trucks.
IMILE’s Naveen Joseph on the era of transformation in e-commerce.
Track laying inaugurated in Saih Shuaib.
The latest developments at the Kingdom’s fast growing port.
Renowned French trucks manufacturer has bagged some lucrative deals in UAE.
The aviation deal to ensure sustainability.
Moved by people qrcargo.com
DP World and UNICEF reiterate partnership with Jebel Ali Port visit n Abdulla Bin Damithan, DP World’s UAE Region and Jafza CEO & Managing Director, recently welcomed Ted Chaiban, UNICEF’s Regional Director for the Middle East and North Africa, to Dubai as part of its ongoing efforts to leverage DP World’s facilities, infrastructure, and expertise to deliver critical Covid-19 supplies to countries most in need. In January, DP World and UNICEF announced an ambitious and wide-ranging multi-year partnership supporting UNICEF’s mission to distribute critical Covid-19 vaccines and critical supplies on behalf of the COVAX Facility. Through this partnership, DP World and UNICEF are collaborating on advocacy and knowledge-sharing to address logistical bottlenecks hindering access to essential supplies for children and their families. “We offer our infrastructure and expertise to support UNICEF in this effort because everyone should have access to vaccines, especially the most vulnerable members of society,” remarked Bin Damithan. Most recently, DP World supported UNICEF in sending critical supplies to India. Thanks to its end-to-end logistics and quick-reaction capabilities, DP World quickly dispatched these supplies from UNICEF’s facilities in Dubai to New Delhi for distribution within India. “The readiness of logistics infrastructure and services will be valuable as we hope more high-income countries will start to share their vaccine doses through the COVAX facility,” commented Chaiban.
Abdulla Bin Damithan and Ted Chaiban
GAC breaks ground on new contract logistics facility in Ras Bufontas FZ n Construction is underway on GAC Qatar’s new 27,000sqm multi-user contract logistics facility after the groundbreaking ceremony in the Ras Bufontas Free Zone. It follows the signing of an agreement between GAC and Qatar Free Zones Authority (QFZA) in February 2021. The facility is expected to be completed by early 2022. It will be built from sustainable materials, partly fueled by solar power, have several energy-saving features and use recycled water in its operations. The groundbreaking ceremony was attended by HE Anders Bengtcén, Swedish Ambassador to the State of Qatar; Ismail Tahboub, GAC Group Executive Chairman & Trustee; Björn Engblom, GAC Group Vice President - Middle East among many other senior officials. “This facility will contribute towards Qatar as a regional logistics hub and good ecosystem for our investors
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HE Anders Bengtcén, Swedish Ambassador to the State of Qatar; Ismail Tahboub, GAC Group Executive Chairman & Trustee; Björn Engblom, GAC Group VP - Middle East and others.
to run their operations sustainably out of the free zones,” remarked Lim Meng Hui, CEO, QFZA. “Qatar’s logistics sector is a billion-dollar market for industry players to tap into. The
demand for our integrated solutions is expected to be bolstered by the North Field expansion project and the global soccer event in 2022,” stated Daniel Nordberg, General Manager, GAC Qatar.
Abu Dhabi Terminals unveils innovative AI-focused partnership
Jafza’s healthcare and pharmaceuticals sector registers 12% growth n DP World, UAE Region’s Jebel Ali Free Zone (Jafza) witnessed a 12 per cent growth in its healthcare and pharmaceuticals customer base between 2019-2020, according to a recent press communiqué. Spanning an area of around 170,000sqm, and currently housing 174 companies from 41 countries, the segment provides jobs to 1,100 employees. In 2019, the volume of trade in the segment stood at 25,000 metric tonnes, valued at AED900mn (US$ 245mn). Partnerships and initiatives by the government and private and public sector companies are helping to achieve these goals. DP World, UAE Region and Jafza have been at the forefront, ensuring sustainable growth of this sector. “The boom in the healthcare and pharmaceuticals segment in Jafza has highlighted the core competencies of the sector in the Middle East and the seamless connectivity DP World, UAE Region offers to over 3.5 billion consumers
through the highly efficient trade and logistics hub in Jebel Ali, which includes Jafza and the Jebel Ali Port,” affirmed Abdulla Bin Damithan, CEO & Managing Director, DP World-UAE Region and Jafza. As the only free zone with the ability to support indigenous manufacturing for the healthcare and pharmaceutical sector, Jafza has facilities dedicated to the storage of ancillary vaccine preparation and administration items. Additionally, Jebel Ali Port has temperature-controlled warehouses and also consists of nearly 10,000 reefer points spread across the terminals to power refrigerated containers and support pharmaceutical trade. Several incentives like on-demand warehouses on short term lease with multifunctional storage options, no VAT or customs duties and cost-effective transport services enhance ease of accessibility and enable speedier deliveries to benefit companies that operate in Jebel Ali, the press release concluded.
n Abu Dhabi Terminals, in the presence of HE Omar Bin Sultan Al Olama, UAE Ministry of Artificial Intelligence (AI), recently announced a partnership agreement with Microsoft that heralds the next phase in the digital transformation of Abu Dhabi’s flagship maritime asset, Khalifa Port. The landmark partnership will enable enhanced container tracking and autonomous shuttle capabilities across Abu Dhabi Terminal’s Khalifa Port terminal through the deployment of Artificial Intelligence Services of Azure, Microsoft’s Cloud. The technology, deployed in partnership with Microsoft Consulting Services, will fuel the introduction of AI-based container smart tracking solutions that will ensure 100 percent traceability of all handled containers, as well as the potential to launch an autonomous vehicle system. “This collaboration ushers in a new era for autonomous vehicles in a terminal environment,” said Ralph Haupter, President, Microsoft EMEA. “Abu Dhabi Terminals is committed to modernising its port environment, while also dramatically reducing our carbon footprint, and costs, as well as turnaround times for those accessing Khalifa Port,” stated Ahmed Al Mutawa, CEO, Abu Dhabi Terminals. “Abu Dhabi Terminals has constantly worked to improve operational efficiency in a manner not controlled by industry norms and conventions,” remarked Arturo Garcia, Chief Automation Officer, Abu Dhabi Terminals.
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SAL and Sela partner in providing logistics solutions for upcoming major events n SAL Saudi Logistics Services and Sela, a leading events management company based in Saudi Arabia and operating worldwide, recently signed an agreement to provide ground handling services at main airports to support the organization of Sela’s seasonal entertainment events and activities, especially the company’s upcoming events by the end of the year. The agreement signing took place at SAL’s headquarters in Jeddah between Omar Bin Talal Hariri, CEO, SAL and Eng. Loai Kamakhi , General Manager, Business Solutions, Sela. Omar Hariri stressed the importance of this strategic partnership, enhancing the ground handling services in and out of the Kingdom.“Sela is one of the leading companies in the region, and we are excited to provide all logistics support. We are confident this cooperation will result in higher quality service to all the upcoming events in the Kingdom,” Hariri asserted.
“Working side by side with SAL is a huge step forward for both companies and contributes to Sela’s goal to unlock the outstanding potential of logistics, especially in the field of events and entertainment,” commented Eng. Loai Kamakhi. SAL provides premium ground
SAL and Sela Agreement signing ceremony.
handling services for multiple airlines at Saudi Arabia’s local airports and logistic support with cargo chain solutions. The company also connects all means of transportation with regional airports to make a more significant contribution to Saudi Vision 2030 and transform the Kingdom into a global logistics hub.
Emirates Group reports loss of US$ 6bn attributed to the pandemic n The Emirates Group recently announced its first year of loss in over 30 years caused by a significant drop in revenue, fully attributed to the impact of Covid-19 related flight and travel restrictions throughout its entire financial year 2020-21. Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1bn (US$ 6.0bn) for the financial year ended 31 March 2021 compared with an AED 1.7bn (US$ 456mn) profit for last year. “In 2020-21, Emirates and dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions,” affirmed HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. Emirates’ total passenger and cargo capacity declined by 58% to 24.8bn ATKMs at the end of 2020-21, due to pandemic related flight and travel restrictions including a complete suspension of commercial passenger services for nearly
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eight weeks as directed by the UAE government from 25 March 2020. Total operating costs decreased by 46% from last financial year. Cost of ownership (depreciation and amortisation) and employee cost were the two biggest cost components for the airline in 2020-21, followed by fuel, which accounted for 14% of operating costs compared to 31% in 2019-20. Emirates SkyCargo put in a stellar performance by rapidly responding to new demand in a changed global marketplace, contributing to 60% of the airline’s total transport revenue. With the strong demand in air freight throughout the year, Emirates’ cargo division reported a revenue of AED 17.1bn (US$ 4.7bn), an increase of 53% over last year. Tonnage carried decreased by 22% to reach 1.9mn tonnes, due to the reduced available bellyhold capacity for the entire year. At the end of 2020-21, Emirates’ SkyCargo’s total freighter fleet stood unchanged at 11 Boeing 777Fs.
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KIZAD and Helios Industry to set up US$ 1billion Green Ammonia production plant
Gulftainer appoints new CFO
n Khalifa Industrial Zone Abu Dhabi (KIZAD) recently announced the formation of a green ammonia production facility, targeting regional and international markets. Helios Industry, a privately-owned special project vehicle company (SPV), plans to invest over AED3.67 billion (US$1 billion) in the construction of the facility over several years, which it aims to develop with local and international partners in two phases and is projected to produce 200,000 tonnes of green ammonia from 40,000 tonnes of green hydrogen. The Helios facility located in KIZAD, will be powered by a dedicated 800-megawatt solar power plant within KIZAD in the near future, with capacity of 100MW in phase 1. “The adoption of
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sustainability and green technology has gained significant traction within the GCC and greater MENA region over the past few years,” said Abdullah Al Hameli, Head of Industrial Cities & Free Zone Cluster, Abu Dhabi Ports. “Our project is an excellent illustration of our vision: to create, innovate, accelerate, and drive the transition to cleaner energy for a sustainable and better world,” commented MK Saiyed, Managing Director, Helios Industry. Upon completion, the plant is expected to reduce carbon dioxide emissions by an excess of 600,000 tonnes annually, equivalent to the amount of pollution generated by roughly 140,000 vehicles if conventional methods are employed for Ammonia production.
n Gulftainer has appointed Javier Echeverria to its top finance position “Javier will be a strong partner as we manage through the current economic challenges and improve our operating results to position Gulftainer for sustainable, long-term value creation for our customers and shareholders,” remarked Charles Menkhorst, CEO, Gulftainer. “I look forward to executing Gulftainer’s priorities, as well as accelerate growth and enhance value for shareholders and all stakeholders.” said Echeverria. According to the company, Gulftainer is the world’s largest privately owned independent port operator. Established in the emirate of Sharjah in 1976, the rapidly expanding ports and logistics company has built up a strong presence in various parts of the world. Outside the UAE, the Gulftainer Group operates and manages ports and logistics businesses in several countries including Iraq (Iraq Container Terminal, Iraq Project Terminal and Umm Qasr Logistics Centre) and Turkey (Momentum Logistics). In Saudi Arabia, Gulftainer acquired a 51 percent stake in Gulf Stevedoring Contracting Company (GSCCO) in June 2013 and now operates the Northern Container Terminal in Jeddah, Jubail Industrial Port and Jubail Commercial Port. The company’s latest facility, Canaveral Cargo Terminal in Florida, USA, opened in June 2015 following the signing of a 35-year agreement that made Gulftainer the first port management company from the Middle East to operate in the United States.
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The World Logistics Passport (WLP) welcomes 10 new countries at inaugural global summit n The World Logistics Passport (WLP), a global, private sector-led initiative designed to smooth the flow of international trade and unlock market access, recently welcomed ten new countries at its inaugural Global Summit. The Summit hosted a mix of CEOs, government ministers and representatives of leading international trade bodies to further international cooperation, offering businesses the right conditions, information and incentives to unlock the full potential of global trade. As the world’s first global freight loyalty scheme, WLP offers members access to three tiers of benefits –silver, gold and platinum–provided by a range of WLP partners including airport authorities, port operators, customs services and others that help to make supply chains more efficient. “The WLP is helping countries grow their economies and create jobs, facilitating
access to new markets and increasing the resilience of the global supply chain in the process,”commented Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer, DP World. The decision of the Kenyan International Freight and Warehousing Association (KIFWA) to join the WLP as the first partner in Kenya lays the foundations for the launch of Kenya as a hub for East Africa. The South African Association of Freight Forwarders (SAAFF) has also
joined the WLP as a partner. It will help to expedite the full operations of South Africa as a hub country through the SAAFF’s ability to mobilize leading South African freight forwarders and logistics companies to join as Members. In Latin America, both Paraguay and Ecuador will now be able to further diversify their exports, adding new international destinations for traders. Malaysia’s Johor Port and India’s Delhi International Airport also joined the WLP as new strategic partners in Asia.
Trukkin raises US$ 7mn in Series A funding round n Trukkin has secured an investment round of SAR 26mn (US$ 7mn) for its Series A round. The round was led by Saudi based Emkan Capital with the participation from Impact46 Seed Fund, Taya Group and other strategic investors. Trukkin is a leading aggregator that digitizes the process of matching shippers with truckers to bring about transparency, reliability and efficiency to the logistics industry. Trukkin also works towards building fintech solutions for payments, insurance, and financial services. “We are excited to close the round with strategic investors, it confirms our vision of creating a world-class regional aggregation platform to enable logistics for the shippers and transporters,” commented Janardan Dalmia, Founder and CEO, Trukkin. “We look forward to supporting Trukkin, in serving hundreds of corporate clients and individual shippers as they
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aggressively look for expansion and growth in reach, capability and business volume,” commented Ghassan Aloshban of Emkan Capital. Trukkin has grown three times since the onset of the pandemic and scaled
into Pakistan midyear in 2020 becoming the first mover and the leading logistics platform in Pakistan while growing its business in the UAE and Saudi Arabia and serving 12 countries in the broader Middle Eastern region.
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Tristar Group unveils its 2020 Sustainability Report n The Tristar Group recently announced the launch of its 2020 Sustainability Report Driving Sustainability in an Uncertain World The 2020 Sustainability Report Driving Sustainability in an Uncertain World is available on the link: https://tristar-group.co/ upload/Tristar-Sustainability-Report-2020.pdf The report highlights the Group’s key Environmental, Social and Governance (ESG) achievements in 2020 such as the Tristar Group’s community outreach initiatives at the height of the Covid-19 pandemic; the launching of the LNG vessel, the continuation of the carbon emission reduction programme, the establishment of a Covid crisis management committee, the holding of the Second ‘Safety at Sea’ Conference via a webinar, and the reduction in its water consumption. The theme of this year’s WED (World Environment Day) is ‘Ecosystem Restoration’, which aims to prevent, halt and reverse the degradation of the ecosystems on every continent and in every ocean. In the UAE, through the Storey Group, the Tristar Forest comprises of 1,000 trees which were planted recently in the Jebel Ali area. The Storey Group has partnered with Emirates
Eugene Mayne, Founder & CEO, Tristar Group.
Marine Environmental Group, as part of its global tree-planting campaign to collectively plant one billion trees around the world by end of 2025.
Dubai Customs’ Jebel Ali Centre completes 952K transactions from January-April 21 n Dubai Customs’ Jebel Ali Centre, which operates under the Sea Customs Centre Management, completed 952,232 transactions between January and April 2021, growing 71% from 557,318 in the corresponding period in 2020, according to a press communiqué. The value of goods in the four months hit AED 298.3bn, and volume reached 38.848mn tons. With the help and cooperation of the Customs Intelligence Department, Jebel Ali Customs Center thwarted all smuggling attempts in the first third of 2021, with 64 seizures made through 75,434 inspection operations. Containers scanned using X-ray scanners reached 93,492 containers, compared to 51 seizures, 73,852 inspection operations and 76,188 containers in the first third of 2020. “We put in place an integrated strategy to develop work at Jebel Ali Customs Center in 2021 to ensure a streamlined flow of goods to the local, regional and international markets,” said Yousef Al Hashimi, Director, Sea Customs Centres Management. “We have developed our work methods to respond in a better way to the needs of our clients, especially under the current challenge posed by the spread of Covid-19 crisis,” commented Fuad Al Suwaidi, Senior Manager, Jebel Ali Customs Centre. Yousef Al Hashimi, Director, Sea Customs Centres Management
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FarEye announces US$ 100million series E Round led by TCV and Dragoneer n FarEye, a leading end-to-end, global delivery management platform, recently announced a US$ 100mn Series E round led by TCV and Dragoneer Investment Group. Existing investors Eight Roads Ventures, Fundamentum and Honeywell also participated in the round. Founded in the year 2013 by Kushal Nahata, Gaurav Srivastava, and Gautam Kumar, FarEye is addressing a multibillion dollar delivery management market that continues to show double digit year on year growth. “The funding is very timely for the delivery and logistics sector as we have seen consumers spending US$ 861billion online with U.S. retailers in 2020, up 44% from $598 billion in 2019,”remarked Kushal Nahata, CEO and Co-Founder, FarEye. New funding will accelerate innovation and global expansion for leading logistics management SaaS platform, according to a press statement. FarEye’s intelligent and sophisticated platform is used by brands to launch and champion multiple delivery models
FarEye Founding Team (L to R-Gautam Kumar, Gaurav Srivastava, Kushal Nahata).
like same-day, next-day, on-demand, and curbside from multiple inventory locations. The company’s platform processes
over 100million transactions each month, supports more than 25,000 drivers, and is integrated into a network of over two million vehicles.
dnata opens new bus maintenance facility at Dubai International n The 5,000sqm workshop is equipped with new equipment and technology that will ensure continuous improvements in the safe and productive maintenance of the DXB bus fleet, enhancing serviceability and supporting smooth transport operations across the airport for passengers, crew and staff. The workshop has been designed to maintain the fleet of nearly 200 passenger apron buses and over 100 staff transportation buses operated airside at DXB. dnata’s new maintenance facility was inaugurated by Jaffar Dawood, dnata’s Senior Vice President for DXB Airline Services, alongside representatives from COBUS Industries. “Our new facility meets the highest standards, helping us consistently deliver world-class safety and timely maintenance solutions for our customers,” remarked Dawood. “These new technologies will significantly improve the working environment for the skilled dnata technicians maintaining these highly specialised vehicles,” said Robert Powell, Vice President dnata Technical Services. “The excellent service of dnata was an important assistance
in guaranteeing the highest reliability of our COBUS product,” commented Andreas Funk, CCO & Sales Director of COBUS Industries. Choosing green or hybrid options is a prime consideration in dnata’s GSE fleet planning. Over the past years, the company has replaced a large number of its ramp vehicles, GSE and forklifts with hybrid or electric alternatives, cumulating in the first zero-emission aircraft turnaround in Dubai.
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DP World UAE Region to expand energy efficiency collaboration with Etihad ESCO Left: Sultan Ahmed Bin Sulayem, Group Chairman and Right: CEO, DP World and Saeed Mohammed Al Tayer, MD & CEO, DEWA
WCAworld elected to IATA’s TTWG n The global independent freight forwarding community is set to be represented within IATA’s Time and Temperature Work Group (TTWG) for the first time, following the announcement that WCAworld has been elected to this influential body. Historically, the TTWG has been comprised largely of multinational forwarders, airports, airlines, shippers and manufacturers. However, the influence of WCA’s Pharma network has ensured that SME forwarders will now also have a voice. The TTWG develops and maintains standards for the procedures, documentation, cargo handling, packaging and acceptance of healthcare goods. This way it facilitates, improves and maintains the proper functioning of the pharmaceutical logistics sector. The group also lobbies government agencies, intergovernmental organizations, stakeholders, carriers, shippers and their intermediaries towards the recognition and adoption of these standards as well as promoting its activities with industry associations and shippers. WCA Pharma network member, Thierry Moreno, CEO of Geneva-based NV Logistics, will assist WCAworld in representing members within the TTWG and will utilise members’ feedback from a new dedicated WCA Pharma portal, designed to ensure maximum input into the future of pharmaceutical transport. Adam McKenna, General Manager, WCA’s Speciality Networks, commented that it was a big moment for the industry with the independent sector having acquired equal standing and influence as multinational forwarders.
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n DP World, UAE Region and Etihad Energy Services Company (Etihad ESCO), a wholly-owned subsidiary of Dubai Electricity and Water Authority (DEWA), announced plans to expand their ongoing energy efficiency collaboration into renewable solar power installations across DP World’s assets in the UAE. They signed a Memorandum of Understanding (MoU) during a virtual ceremony in the presence of Saeed Mohammed Al Tayer, MD & CEO, DEWA, and Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. “Since 2015, Etihad ESCO and DP World have collaborated in projects that are actively reducing DP World’s carbon footprint and supporting sustainability goals,” said Al Tayer. “With this MoU, we open a new chapter in improving energy efficiencies across our assets in the UAE Region. DP World focuses on measuring
and managing its direct environmental impact to contribute to the pressing challenge of climate change,” noted Bin Sulayem. In June 2019, Etihad ESCO had financed and completed the first and second phases of a major retrofit project for the staff accommodation areas of the Jebel Ali Free Zone (Jafza), where nearly 40,000 people live. The project achieved 32.6 per cent savings in energy consumption, surpassing initial targets, upon completion of one year of measurement and verification period. The environment has benefited tremendously since, with 17,000 tonnes of reductions in annual CO2 emissions, equivalent to removing 3,600 cars from roads for a year.
Etihad Cargo and EFL Global successfully deliver vital antiretroviral drugs to Brazil n Etihad Cargo and global supply chain company EFL Global have successfully carried a vital consignment of antiretroviral drugs from India to Brazil. The shipment, which weighed more than 55,000kg, was transported on behalf of a leading manufacturer head quartered in Hyderabad and delivered to São-PauloGuarulhos International Airport in Brazil. “Utilising Etihad Cargo’s pharmaceutical logistics capabilities and EFL’s extensive industry expertise, the shipment was successfully delivered, maintaining strict controls across the entire journey,” explained Martin Drew, Senior Vice President Sales and Cargo, Etihad Aviation Group.
Maintaining the shipment’s integrity, EFL handed the consignment to Etihad Cargo in Hyderabad, with the UAE’s national carrier transiting the shipment through Abu Dhabi International Airport and Milan’s Malpensa International Airport en-route to São Paulo. Etihad Cargo and EFL collaborated to ensure data tracking and real-time status monitoring throughout the journey. “Customers trust our capability to move lifesaving medications across continents in the best way possible
and we take this responsibility very seriously,” commented Rooso Ramachandran, Chief Commercial Officer, EFL Global – India. In the past year, Etihad Cargo has increased pharmaceutical shipments by 50 per cent via its industry leading PharmaLife product. In addition to supporting global customers, the IATA CEIV-certified product has facilitated Etihad Cargo’s support of Abu Dhabi’s HOPE Consortium’s efforts to serve global demand for Covid-19 vaccines.
Fujairah Terminal expansion opened n HH Sheikh Mohammed Bin Hamad Bin Mohammed Al Sharqi, Crown Prince of Fujairah recently opened Fujairah Terminals’ expansion programme, which comprises both infrastructure developments and service enhancement projects for the East Coast UAE maritime hub. Fujairah Terminals, part of Abu Dhabi Ports, has now passed a critical milestone in its long-term AED 1bn (US$ 273mn) programme for the development of multi-purpose terminal facilities within the port. The completion of the expansion works, which commenced three years ago, will increase the terminal’s general cargo throughput to 1.3mn tonnes, provide a multi-purpose area of 25,000sqm for general cargo and Ro-Ro services and increase container capacity to 720,000 TEU, with a total of 110,000sqm of container terminal area. During the ceremony Sheikh Mohammed reviewed ongoing developments at the Fujairah Terminal, including the new customer happiness centre, X-ray scanning and custom inspection zones, engineering workshop and operations command centre.
JULY – AUGUST 2021 17
SAUDIA successfully renews IATA Operational Safety Audit Certification n Saudi Arabian Airlines (SAUDIA), the national flag carrier of the Kingdom of Saudi Arabia, has renewed the IATA Operational Safety Audit (IOSA) certification. Created by the International Air Transport Association (IATA), IOSA is an accredited international evaluation system designed to assess the operational management and control systems of an airline. The biennial audit included a review of the effectiveness of SAUDIA’s documentation of its safety procedures as well as an evaluation of the operational quality requirements and their practical application on the ground. “SAUDIA applies and prioritizes strict internal procedures for the safety and quality of its operations. Passing the audit at this advanced level and receiving the best safety and operational quality reports,” stated Captain Ibrahim S. Koshy, CEO, Saudia. SAUDIA is one of the first airlines to be audited by IOSA since the establishment of the airline audit program in 2003. The IOSA certification is granted by IATA to airlines that meet a number of approved safety and operational quality standards.
Grandweld delivers four GrandMax crewboats for Saudi Arabia’s HSM n Grandweld Shipyards completes the delivery of four GrandMax Crewboats for Ras Tanura, Saudi Arabia-based offshore oil & gas service provider, High Seas Marine Industrial Services Co. (HSM). This feat was accomplished in a span of 14 months, despite the numerous challenges of the pandemic. The official delivery ceremony recently took place at Grandweld’s headquarters in Dubai Maritime City (DMC), in the presence of Eng. Jamal Abki, General Manager, Grandweld Shipyards and Eng. Ibrahim Al Saeed, Managing Director, HSM. “We supported the HSM team with technical insights even before the project was awarded to us and this boosted their confidence in the competencies of the shipyard,” remarked Engr. Abki. “Since we are working with Saudi Aramco, a leading company that has strategic importance in the region and around the globe, the onus was on us to deliver the best quality to satisfy our client,” commented Engr. Al Saeed.
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ENGIE in Saudi Arabia reaches commercial close on Jubail 3B IWP n Saudi Water Partnership Company (SWPC), in association the consortium comprised of France-headquartered ENGIE (40%), Saudi based Nesma Company Limited (30%) and Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investment (30%), has achieved commercial close on the Jubail 3B Independent Water Project (IWP). Following the agreement, a 25-year Water Purchase Agreement between SWPC and the ENGIE-Nesma-Ajlan consortium was recently signed in the presence of Eng. Abdulrahman Al Fadli, Chairman, Board of SWPC and Minister of Environment, Water and Agriculture. Located 65 km north of Dammam airport in the Kingdom of Saudi Arabia, the Jubail 3B IWP plant will produce 570,000 cbm/day of potable water through reverse osmosis technology to supply the cities of Jubail and Dammam.
The project is part of the water schemes in Saudi Arabia developed under the public-private-partnership (PPP) structure. The consortium will develop and finance the desalination plant, which will be operated and maintained by ENGIE. The Jubail 3B project was awarded by SWPC as a build, own, operate (BOO) contract, with commercial operation expected in 2024. “The Saudi Water Partnership Company will provide full support for
Fertiglobe joins TA’ZIZ as partner in WorldScale Blue Ammonia Project in Ruwais n TA’ZIZ and Fertiglobe today announced that they have signed an agreement for Fertiglobe to join the world-scale blue ammonia production project at TA’ZIZ in Ruwais, Abu Dhabi. The project benefits from its location in the purpose-built TA’ZIZ Industrial Chemicals Zone, adjacent to the Ruwais Industrial Complex, which will supply the project with attractive hydrogen and nitrogen feedstocks. The agreement is subject to regulatory approvals. Since launching in 2020, TA’ZIZ has attracted significant interest from local and international investors. Today’s agreement marks the first international investor to partner with TA’ZIZ, with further announcements for other TA’ZIZ projects expected shortly. “This is a significant milestone in the development of our blue hydrogen and ammonia business and capitalizes on the strong foundation that ADNOC has developed with Fertiglobe,” stated Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO. The companies will jointly conduct pre-FEED and FEED activities and in parallel ADNOC will undertake a sole-risk feasibility study on blue ammonia. The Final Investment Decision is expected in 2022, and start-up is targeted for 2025. “The use of ammonia as a shipping fuel is particularly promising as it is, together with methanol, the only practical alternative for long-distance shipping to decarbonize in a cost-effective way,” commented,” Nassef Sawiris, Executive Chairman, OCI and CEO, Fertiglobe.
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investment projects, and to enhance private sector participation in sustainable development by providing the opportunity for local and foreign investors to participate in the implementation of these projects,” affirmed Eng. Khalid AlQuraishi, CEO, SWPC. “Through our projects, and in close coordination with our partners, ENGIE remains committed to providing valueadded services,” asserted Turki Al Shehri, CEO, ENGIE, Saudi Arabia.
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LOGISTICS AUTOMATION
There is no doubt in any professional’s mind that logistics automation is the best thing that can happen in business. In this field of activity, many processes are carried out and each stage is extremely important because it contributes to the smooth movement of goods along the chain.
Logistics Automation T he benefits of logistics automation are countless – saving on labor, inventory, energy and more. In addition, the logistics process is carried out faster, more precisely and qualitatively, more economically and more efficiently. It significantly reduces errors and improves customer service.
Reducing Costly Errors Automation helps businesses to fully integrate inventory management through the ERP system – all fixed and current assets and goods available can be included. It provides access to the address book, the introduction of fuel charges and other types of automatic storage, which helps eliminate significant errors. When entering multiple data by hand from the available documents, the possibility of making mistakes is much greater. All of these have many negative financial consequences. These include increasing delivery costs, maintaining excessively high availability, improper planning and coordinating processes, future penalties for documentation errors, etc.
Improved customer service Logistics automation works in the opposite direction – to improve customer service. This provides much
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better control of the shipment while managing the supply chain. One of the most important advantages of the software is that it allows complete tracking of the movement of goods from one place to another, automatic accounting, transaction tracking and invoice payments, generation of automatic documents, custom specifications, etc. Customers will be aware of the final shipping cost. It will also be able to receive up-to-date information on the status of the shipment at any time, where it is located and when it will reach its destination. These automatic notifications create credibility in the eyes of the customer and if they are satisfied they will trust the services provider every time.
Organizational Control There are many companies that to some extent lose control of the processes within the company. Not many new users of automated logistics software share this unpleasant news. The fact is, however, that management can be brought back and be aware of every step of the staff and asset movement. Companies can very quickly keep up with inventory, financial income and expenses, shipping costs, and other deliverables. Just look for the software
with the features needed to control the business! Automated software is flexible and suitable for any personalized business. They provide not only efficient but costeffective delivery of the shipment from start to finish. It is important to choose an easy-to-use system so that one easily and quickly generate the information needed at any time to perform timely controls. Ask for a test period for a future implementation company.
Scale and speed The future of business is focused on increasing automation. The human factor cannot be completely replaced and is not necessary, but the benefits of such software are constantly increasing. Every year, innovations occur–additional features are added to facilitate small, medium and large businesses. The truth is that at every stage of the execution of a particular process, it requires speed, accuracy, quality and efficiency. If one is looking for the best way to save money, improve your services, reduce inventory, transport costs and make more reliable decisions, then look for the right logistics software package. Business needs automation, stay upto-date with innovation and don’t give competitors an easy chance to succeed.n
LOGISTICS AUTOMATION
Developing a strategy for keeping automation systems and software current and in good working order is essential to minimizing risk and maximizing equipment performance—a Swisslog perspective.
Increasing the value of Warehouse Automation through modernization and expansion
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s we wade through the pandemic it is apparent that many warehouse operators that do not know the controls and component on which their automated systems depend on can experience a vulnerable situation due to unplanned downtime. Control system suppliers, for example, routinely introduce new components and end-of-life older ones. If you don’t know you have components that are already, or are approaching, obsolescence you may find yourself struggling to find replacements for failed parts. Instead of replacing a component, you’re faced with the challenge of modernizing the panel without the benefit of being able to schedule work around planned downtime. Developing a strategy for keeping automation systems and software current and in good working order is essential to minimizing risk and maximizing equipment performance. At Swisslog, we’ve developed a number of programmes to help our customers extend the life of their warehouse and get more from their investment in automation. These include:
Hardware modernization: Our hardware modernization programs begin with a comprehensive audit to identify all relevant components,
their manufacturer and their risk of obsolescence. We then develop a plan to address any vulnerabilities. In some cases, the automation systems themselves may be so old they can no longer deliver reliable service and may be recommended for replacement. Once the initial work is complete, we use the list of system components and our knowledge of product lifecycles to continually and proactively identify components that are at risk of obsolescence. This transforms modernization from an event into a continuous process that can be managed with minimal investment and disruption.
Safety assessments: Safety standards, like technology, are continually evolving. Our safety assessments review existing equipment in light of newer safety regulations and recommend changes that bring systems in compliance, such as adding doors to cranes or using light curtains in place of mechanical gates.
Software updates and upgrades: Keeping software current is as important as maintaining hardware. Whether it is performing technology updates necessitated by changes to the underlying software systems, upgrading from previous generations of Swisslog software
to SynQ or installing SynQ to prepare for automation, Swisslog can manage all aspects of a software update or upgrade. We offer IT Managed Services in which our experts assume responsibility for managing all of the IT systems and software required to keep your equipment operating at peak performance.
System expansions: One of the benefits of the current generation of automation systems delivered by Swisslog is the ability to size systems to meet current needs while maintaining the flexibility to expand the system when needs change. We have the experience and expertise to plan system expansions to maximize your investment in automation and minimize the impact on operations. Whether you are operating cranes, AutoStore, CarryPick or one of our shuttle systems, Swisslog can help design and implement the upgrades and expansions that give you the storage and throughput you need to enable continued growth. From modernizing hardware to upgrading software and expanding modular automation systems, Swisslog has the experience and expertise to develop a strategy and plan that minimizes the impact on existing operations and delivers the reliability and performance your business needs. n
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AUTOMATION
Demystifying Automation SSI Schaefer prides in its offerings of effective, cloud-native, web-based, intelligent automation solutions for its customers. Global Supply Chain met the top regional leadership of the company to assess the company’s performance in these pandemic times and for the update on the latest offerings from the leading and long-established provider of logistics automation innovations.
A
ccording to a recent report*, the Global Logistics Automation Market size is expected to reach a staggering US$ 82.3bn by 2026, rising at a market growth of 12.4% CAGR (compound annual growth rate) during the forecast period. Logistics Automation is considered as the application of machinery and automation software to enhance the effectiveness of logistics operations. The Logistics Automation system consists of tools such as software (integration software, business control software and operation control software, and more.) and
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tools such as automated guided vehicles, automated storage, and retrieval systems, conveyors, vertical lift modules, robots, and related services. Global Supply Chain engaged with the tag team of Matthias Hoewer, General Manager, SSI Schaefer Middle East and Africa and Carsten Spiegelberg, General Manager - Logistics Solutions, SSI Schaefer to provide insights and reflections on a variety of issues from provenance, performance, progress plans for the region and outlook for the future. Global Supply Chain (GSC): In your own words, give us the half-
minute low-down / spiel on SSI Schaefer? Mathias Hoewer (MH): Our target at SSI Schaefer is to enable our customers to achieve better business performance through intelligent processes. To this end, we offer modular, scalable intralogistics solutions and outstanding project execution across the full range of intralogistics products, solutions and services. Our offerings range from simple pallet racking for manual warehousing operations up to fully automated robotic solutions including the necessary software. Our innovative, future-ready
82.3billion
AUTOMATION
US$ technologies support and enhance the automation and sustainability of our customers’ systems worldwide and within the Middle East and Africa region with a regional presence of more than 20 years. GSC: Give us a sense of the size and scale of the SSI Schaefer (and subsidiaries) current association with the logistics & supply chain industry in the Middle East? MH: From an organization standpoint, the SSI Schaefer presence in MEA forms part of the larger APAC (Asia Pacific) and MEA (Middle East and Africa) geographical regions which includes SSI Schaefer subsidiaries in more than 20 countries. Within the MEA Region we are operating from three main SSI Schaefer offices in Dubai, Jeddah and Johannesburg with a total of more than 100 employees. Besides our own offices, SSI Schaefer is also represented in more than a dozen countries by one of our local partner companies that operate within our
Global Logistics Automation Market size is expected to reach by 2026, rising at a market growth of 12.4% CAGR
global distributor network. GSC: How did SSI Schaefer fare in the region in 2020? How does that compare with 2019 and what is your outlook for 2021? MH: I believe as for many companies globally, 2020 has been a very challenging year. I am very proud of our entire team here in the region, how quickly they were able to adapt to the new situation and changed business environment. At times where international travel came to a complete standstill, our overall strategy to ‘be local’ and ‘act local’ enabled us to support our clients and keep their businesses going even in these critical situations. For 2021 we are expecting a recovery in
Matthias Hoewer
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AUTOMATION
some industries, especially driven by e-commerce applications and the growing end customer demand for faster and better services. GSC: What are your short and or long-term expansion plans for the region? MH: SSI Schaefer’s commitment to the MEA region is unchanged. Before, during and after the pandemic our focus was, is and will be targeting our customer’s demand for higher automated solutions to improve their business processes. Another strong focus is on the continuous expansion of our customer service solutions within the region. GSC: What are the opportunities in store, competition and challenges confronting SSI Schaefer in the region going forward? MH: Our growing local service portfolio is providing many exciting new opportunities to us and our customers. Topics like predictive maintenance and remote services are gaining more and more importance to assure
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hassle free operations within highly automated solutions. The MEA region has always been a highly competitive market where suppliers from both East and West take up the challenge to provide the best products and services to a highly demanding customer base. I believe one of our strengths is that we can offer both to our clients and that our company’s DNA is combining the best of East and West in our current product portfolio. GSC: How is the surge of e-commerce impacting your business? Carsten Spiegelberg (CS): Even before the coronavirus pandemic, the retail landscape was changing quickly. E-commerce was on a stable growth trajectory, with retailers and manufacturers planning their operations and fulfillment strategies to meet future online market demands. This consumer shift changed market conditions, causing challenges for retailers and brand manufacturers and ultimately
ourselves to come up with flexible fulfillment solutions when transitioning much of the traditional business into e-commerce. However, the pandemic rapidly accelerated e-commerce growth and forced quick adoption and implementation of e-commerce logistics across the industry. GSC: What futuristic trends and advent of technologies do you foresee in intra-logistics automation for the region? CS: Each distribution application is different, so each installation will also be different. Software and automation technology should match each requirement when it comes to system design and installation. While smaller manual applications may be able to handle a one-size-fits-all approach, scalability for future should be mandatory. In this kind of environment flexible technologies around robotics (such as automated guided vehicles (AGV), autonomous mobile robots (AMR)
AUTOMATION
and other handling machines) as well as unit sorter systems will further develop and continue to grow their share. At the same time traditional technologies around automated warehousing, conveyance and order picking will remain to be applied in larger integrated facilities designed for omnichannel and large scale e-commerce applications. GSC: How is SSI Schaefer adopting and adapting to these new technologies and trends? CS: Future-proof logistics solutions must fit seamlessly into our customers operational processes, be infinitely expandable, and adapt flexibly to new conditions. Our approach is not to think in terms of individual systems but to think in terms of complete system solutions. SSI Schaefer has a broad range of products and solutions covering the entire internal material flow and we are continuously expanding this range to adapt to changing markets and requirements. These products then form the foundation for system solutions specifically developed to meet individual requirements more effectively, efficiently and sustainably. GSC: What have been some of your recent major introductions and accomplishments in the region? Please elaborate? CS: In line with our long-term commitment to our customers and partners we are continuously expanding our local competencies to be able to work together in trust and partnership to provide individual consultation in the local context, solve challenges for any application, find the right solutions and ultimately offer products, supply system components, and implement complete solutions. These efforts have not been stopped by the pandemic and we can say that our local team and our
competencies and experience for consultation, sales, implementation and after sales service have become stronger than ever. We can also look at an ever increasing customer base where we have successfully commissioned automated warehouses and state-of-theart shuttle solutions around warehousing and order fulfillment in a diverse range of industries across the region. GSC: How has the onset of the pandemic impacted your regional and global operations? CS: The disruption to global supply chains has on one hand lead to major issues in the implementation of ongoing projects due to material shortages, border closures, travel restriction—you name it. At the same time though it has lead to a major rethink of supply chain structures which, besides the above mentioned impact on e-commerce, also generated a high demand for warehousing space and distribution capacities. The intralogistics market and the demand for high-end intralogistics solutions in Europe and North America is booming whilst Asia and MEA are still taking a more cautious approach towards major investments. We nevertheless expect that with the onset of normal operations across this part of the world this situation will change, and with our strong local team we are well prepared to face the challenges to come. GSC: What is your long-term vision for SSI Schaefer? Where do you hope to take the company hereon? MH: For us the success and growth of SSI Schaefer globally and regionally is an absolute team effort and not a one man show. Our professional team consists of local caretakers, global experts and of course our customers around the region.
Carsten Spiegelberg
The success and growth of SSI Schaefer globally and regionally is an absolute team effort of caretakers, global experts and our customers around the region. We strive to grow with our customers and help them to get stronger out of the current pandemic. The opportunities in our industry and region strongly outweigh the risks. Quality and technology driven solutions will be in very high demand in the years to come. All in all I am very optimistic for the future development of our group throughout the MEA region. n (*Global Logistics Automation Market By Function, By Component, By Enterprise Size, By End User, By Region, Industry Analysis and Forecast, 2020 2026”—Reportlinker.com)
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NAFL-FIVES GROUP MOU
Nafl and fives sas ink mou to boost UAE’s e-commerce and logistics growth The partnership is designed to utilise Fives’ experience in automated sorting and intra-logistics robotic solutions to improve NAFL members’ efficiencies The agreement between country’s leading freight and logistics association and leading industrial engineering and automation group will drive sector-wide efficiencies and digitalisation
T
he National Association of Freight and Logistics UAE (NAFL), one of the Arabian Gulf’s oldest and most active associations, has recently signed a landmark MoU with Fives Smart Automation Solutions (Fives SAS) to propel growth and automation across the UAE’s e-commerce and logistics sectors.
Conceived to explore sectorwide opportunities to improve and
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automate the logistics industry and support the UAE’s burgeoning e-commerce growth, the MoU was signed by Nadia Abdul Aziz, President, NAFL and International Chamber of Commerce (ICC) Chair of the Customs and Trade Facilitation Commission UAE, and Umer Saleem, Business Development and Sales - MENA, SE Asia and Turkey, Fives SAS. Massimiliano Fochetti, Global EVP
Sales and Marketing, Fives SAS, was also in attendance.
Mutual cooperation “This MoU will foster mutual cooperation in various areas to support the logistics industry, capture opportunities, and work closer with government entities to further automate the logistics and e-commerce industry,” stated Aziz.
NAFL signes a landmark MOU with Fives Smart Automation Solutions.
NAFL-FIVES GROUP MOU
“By harnessing the global expertise of NAFL and Fives SAS, we look forward to productive progress and hastening widespread adoption of technologically advanced methods which will ensure the UAE’s competitive advantage in our focus sectors,” she added. Worth more than AED 220bn (US$ 60bn), the UAE logistics market contributes more than 13 per cent of the country’s GDP. The development of the logistics ecosystem through digital and infrastructure investment is a key focus in current initiatives designed to sustain the nation’s economic growth, with advantegeous government policies paving the way for the UAE to be a truly global logistic hub.
Local engagement “After successfully executing several smart projects in the region, Fives Smart Automation Solutions appreciates how local customers understand the importance and benefits of smart automation, a trend which has been fast-tracked due to the Covid-19 pandemic,” affirmed Fochetti.“Aligned with
our ambitious growth target, we are ready to cater to our local customers’ needs as a strategic partner for NAFL in the UAE,” he continued. With more than two centuries of experience, Fives is an industrial engineering group which designs and manufactures machines, process equipment and production lines for the world’s largest manufacturers. Operating across various sectors, from aerospace and automotive to oil and gas, Fives SAS will support NAFL’s 400-plus corporate members who include global conglomerates as well as large and medium national organisations. The cooperation will look to enhance and facilitate the work of NAFL members and support digitalisation processes.
UAE- A prime logistics hub “In addition to illustrating the UAE’s strength as a global logistics and humanitarian hub, the pandemic has re-emphasised the importance of capitalising on e-commerce growth, including significant opportunities for last mile delivery services which are in great demand,” affirmed Aziz added.
Massimiliano Fochetti, Global EVP Sales and Marketing, Fives SAS, was also in attendance.
“Fives Smart Automation Solutions have successfully executed several smart projects in the region. Local customers understand the importance & benefits of smart automation more than ever due to the pandemic. Aligned with our ambitious growth target, we are ready to cater to our local customer’s needs. Fives are honored to be a strategic partner for NAFL in the UAE.”
Umer Saleem, Business Development and Sales - MENA, SE Asia and Turkey, Fives SAS.
“The UAE is an ideal logistic hub for both sectors due to its excellent connectivity by air, sea and land, as well as rail, which a priority for the country’s leaders,” he continued The MoU also outlines further collaboration designed to utilise Fives’ experience in automated sorting and intralogistics robotic solutions to improve NAFL members’ efficiencies, assist global market knowledge and robotic expertise, and aid Emiratisation and local recruitment initiatives. Paris-headquartered Fives Smart Automation Solutions (Fives SAS) is a division of Fives, the industrial engineering group founded more than 200 years ago and designs and manufactures machines, process equipment and production lines for some of the world’s largest manufacturers. n
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Join NAFL / FIATA to get connected for networking and business opportunities Membership open for 2021
TRAINING
Most powerful network in the world for freight and logistics
SCHOLARSHIPS FOR DESERVING UAE NATIONALS
Here’s why you should consider being a member: International Benefits:
National Benefits:
+ The FIATA member certificate + Use of the Fiata logo + Entry in the FIATA members directory & networking events + Advertising in the FIATA members directory, review and information (FIATA e-Flash) + Special Rates for FIATA publication and articles + Access to secretariat›s assistance + FIATA arbitration code + Use of FIATA documents + FIATA worldwide member connectivity + Talent Connect Worldwide, E-Learning
+ + + + + + + + + +
The NAFL member certificate Use of the NAFL logo Free access to networking events Discountes rates in participating in global and regional conferences Asssistance in case of legal advocacy Discounts for cargo/logistic events and exhibition stands Discount training for NAFL members Training/Certification for regional/international courses Insurance at discounted rates (cargo/liability/medical) Complimentary internship, Skill upgrade and Mentoring & Innovation ideas + Discounted supplier rates for industry products
Be the Industry voice, protect yourself by STC, Insurance and maritime advice, network B2B, B2C ACCREDITATIONS National Association of Freight & Logistics
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Register at info@nafl.ae or shankar@nafl.ae, www.nafl.ae
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ADSO
ADSO: Over five decades on, the legend lives on and legacy continues
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Established in 1968 in Abu Dhabi by the late founder Philip El Khoury, Abu Dhabi Services Office (ADSO) has grown exponentially over the past 53 years to become a pioneering, premier and heavyweight logistics services provider across the region.
rom its modest beginnings 53 years ago, ADSO expanded rapidly under the dynamic leadership of its visionary and far-sighted founder Philip El Khoury. Even before the formation of the UAE Federation, ADSO opened its office in Silla on the UAE-Saudi Arabia border in 1972 and inaugurated its Dubai office in 1974. Since then ADSO has offices dotting multiple locations across the UAE and in Muscat and Bahrain. Since its inception, ISOapproved ADSO primarily focused on land transportation.
The experience, expertise and proficiencies ADSO has developed over the years in moving cargoes throughout the Gulf and the Middle East is attributed to their knowledge of the geographies and cross-border customs clearances ad formalities that give ADSO the advantage as a one-stop solutions provider for all transportation and forwarding requirements. Presently ADSO offers transportation network for all categories of freight across the GCC, Iraq, the Levant and CIS countries. Global Supply Chain interviewed Riaz Karmali, General
Highlights: ADSO recently handled a Sea / Air consignment shipped from Europe for its principal, an Austrian client Rosenbauer consisting of 3 fire engines which were urgently needed by the final receiver United Nations in Heart, Afghanistan. The dimensions of the fire engines 11.85 m x 3 x 3.73 weight 21 ton each. These were cleared on priority from Jebel Ali port and shifted to DWC where all the landside and airside handling accounted, customs clearance and customs inspection were handled and the fire engines were safely loaded and secured on board the largest freighter in the world, the Antonov AN124.
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ADSO
ADSO ADSO was established under the dynamic leadership of Philip El Khoury [1932-1996] as a small clearing and freight forwarding company in the United Arab Emirates. With the passage of time ADSO has nurtured into one of the pioneers in the freight forwarding industry catering to domestic, cross border and International services; keeping pace with the region’s rapid infrastructural expansion. With a dedicated team of employees, market expertise and wise management, the company has today grown into one of the largest and most comprehensive door-to-door trucking services across the Arabian Gulf, Middle East and CIS markets. LAND FREIGHT ADSO with the help of its strong network of transporters can arrange Flat Bed trucks, Curtain Side trucks, Low Bed Trailers, Open Box trucks, Closed Box trucks, Reefer Trucks, Pickups, Temperature Controlled Reefers, Flat Bed with Side Grill trucks for all types of cargo movements such as Door to Door, Port to Port, Door to Port and Port to Door.
Riaz Karmali, General Manager, ADSO
Manager, ADSO, for the lowdown on the progress and latest accomplishments in the company’s long road to success. Global Supply Chain (GSC): To what do you attribute the growth of ADSO to its current position as a leading provider of 3PL services provider? Riaz Karmali (RK): Our 50 plus years of service and extensive experience coupled with core competencies and profound insights in the transportation and logistics business enables us to provide the finest quality of services for our customers. GSC: What is the range / scope of services offered by ADSO? RK: ADSO offers a complete portfolio of freight forwarding— sea, air and land multi-modal transportation services. These include marine support, equipment hire, customs clearance and a host of related services. ADSO strengths lie in its capabilities for the transportation
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SEA FREIGHT Our 50 years long-term relations with shipping lines mean we can provide you with access to a global carrier network, covering major ports around the world, with the best transit times, fully flexible scheduling to meet your shipping needs. We offer a flexible range of Sea Freight services for both Full-Container Load (FCL), Less-ThanContainer Load (LCL) shipments, Break-bulk, Project Forwarding, Partial and Full Charter Services. AIR FREIGHT We can ensure complete door-to-door and airport-to-airport movement of your cargo and smooth customs clearance. Our experience in scheduling and clearance procedures combined with our network of offices and selection of premium air freight carriers, gives our clients maximum options of optimum connections thus enabling our customers to save time and money.
ADSO
of OOG (out of guage) cargo and heavy lift and with its own offices to facilitate border and customs clearances at checkpoints in Guweifat; Khatam Al Shekleh, Mizyad and Hatta. GSC: What industrial sectors does ADSO cover for its clientele? RK: The industry verticals we serve include oil, petrochemicals, contracting, automobile, heavy equipment, machinery, project cargo, energy, power, steel, manufacturing, construction and infrastructure. GSC: What opportunities and challenges do you foresee for ADSO going forward? RK: We are very optimistic about the future owing to the great vision and leadership of the UAE Rulers and the tremendous economic investments being made in bigticket projects. To this end we are bullish about the future. GSC: How did ADSO perform in 2020 and what is the outlook for 2021? RK: The world economy suffered in 2020 and the freight sector was adversely affected due to the
lockdown across the globe which implies that trade volumes were greatly reduced for a prolonged period. Despite lifting of the lockdowns, many restrictions are still applicable through the first and second quarters of 2021. We however are seeing some traction now in the third quarter and we are cautiously optimistic we will fare better in the remainder of the year. GSC: How did the pandemic impact your operations and
revenues, if at all? RK: Being in the service industry we maintained our operations on the ground to serve our clients while the administration and sales departments worked remotely due to social distancing measures. Clearly we witnessed loss of trade revenues but we have managed to sustain and retain our staff. GSC: What general concerns and challenges confront the freight sector in light of the current economic situation?
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ADSO
RK: The fall in business volumes and intense competition remain our biggest concerns at the present time. GSC: Tell us more about ADSO’s specialized project logistics business particularly in the energy, oil & gas, petrochemicals, power & utilities and telecommunications sectors among other. RK: ADSO is one of the few forwarders that transport oil rigs across the GCC. The largest item moved from Abu Dhabi to Oman was a 35m X 10m X 10m machinery unit to PDO, Oman which was a major challenge. We also specialize in TIR (Transports Internationaux Routiers) shipments from UAE to MENA and the Gulf region. GSC: What are your growth plans for the short and long term futures? RK: Once a vast majority of
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people are vaccinated it is my hope that the world economy will get moving again and the freight business will claw back to the prepandemic levels. We are waiting patiently for business to get back to normalcy. GSC: Are you planning overseas expansion or JVs / partnerships? RK: Currently we don’t have any plans but we are ready and able to grow and expand our operations and seie opportunities as they come along. GSC: What is your vision for ADSO on your watch? RK: Customer satisfaction has and will always be our first priority. We strive to find solutions and provide accurate feedback to our clients on shipment status. We also plan to open offices in major GCC and MENA cities. In the complex world of freight forwarding, ADSO will always make everything look quite simple. n
PERFORMANCE AND RELIABILITY
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GWC, QATAR
GWC Logistics all set to play its vital role in Qatar’s delivery of the FIFA World Cup Qatar 2022 Qatar and FIFA will benefit from Gulf Warehousing Company’s (GWC) exceptional home capabilities buttressed by a global network and fully integrated world-class solutions, affirms Group CEO Ranjeev Menon in a wide ranging interview with Global Supply Chain.
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atar’s home grown GWC is one of the region’s fastest growing companies and in 2022 it will play a key and indispensable role in the delivery of the biggest sporting event ever to be held in the Middle East and Arab world. GWC, established as a Qatari shareholding company in 2004, is the leading provider and undisputed leader of logistics and supply chain solutions in the State of Qatar. It is the premier, fully integrated logistics provider and a leader in supply chain solutions that caters to all industry verticals. Thanks to its impeccable credentials, global network and experience in handling major
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sporting events, GWC was last year unveiled as the first ‘Regional Supporter’ and ‘Official Logistics Provider’ for the FIFA World Cup Qatar 2022.
Multiple Services Portfolio Priding itself as a one-stop-shop for all the logistics needs of its clients, GWC offers a full suite of solutions that handles everything, from a single document to a multi-ton shipment from origin to point of use and critically, to return shipments back to their home port if necessary. GWC has a logistical infrastructure footprint covering more than 3,800,000sqm including
the largest privately-owned logistics hub in the region, along with a team of dedicated and innovative specialists, supported by state-ofthe-art IT systems. Since its inception, GWC has become Qatar’s first choice for all logistics requirements and an accomplished provider of logistical solutions for a range of major sporting events, including the 2006 Asian Games, the 2011 AFC Asian Cup, the 2019 Arabian Gulf Cup and the last two versions of the FIFA Club World Cup, which were both held in Qatar. Global Supply Chain engaged with GWC’s Group CEO, Ranjeev Menon, who brought us to current and spoke expansively about the
GWC, QATAR
Ranjeev Menon, CEO, GWC Group
company’s progress to-date and the excitement about the pivotal role it will play in delivering the impending 22nd edition of the FIFA World Cup. Global Supply Chain (GSC): As the Official ‘Logistics Services Provider’ for the FIFA World Cup Qatar 2022, GWC will play a vital role in the success of the tournament. Explain more about this partnership? Ranjeev Menon (RM): We were very proud to be announced as the first Regional Supporter and Official Logistics Provider for the FIFA World Cup 2022 last September. It is a huge honour for our business to play a key role in delivering the biggest sporting event in Qatar and the region’s history. Logistics will play a significant role during the tournament and thanks to this relationship, we will work very closely with FIFA, the Supreme Committee for Delivery & Legacy and the FIFA World Cup Qatar 2022 to implement and execute a broad spectrum of logistics services, both in the lead up to the tournament, during the
LISTED
A LEADING LOGISTICS POWERHOUSE
2004 EMPLOYEES
NO. 1
CUSTOMERS
3PL and 4PL Service Provider in Qatar
1,500+
2,600+ GLOBALLY
TOTAL ASSETS
4.08
WAREHOUSING FOOTPRINT sqm
QAR Billion YTD 2021
1,200+
Trucks, Trailers and Specialised Vehicles
Warehouses and Distribution Centers
LOCATIONS ACROSS THE GCC
Open Yard
32,500
210,000
Container Yard
3PL Pallet Locations
20
sqm
END TO END SUPPLY CHAIN SOLUTIONS
GWC Contract Logistics
GWC Hazmat
GWC Forwarding
GWC Transport
GWC Relocations
GWC Consulting
GWC Projects
GWC Records
GWC Fine Art
GWC Sports
GWC Equestrian
GWC Pharma
event and after the final whistle. Very simply, we will be involved in every part of operations, from venue logistics, broadcasting and cold chain logistics, to shipping, customs clearance, transport and warehousing, down to logistics operations of merchandise, souvenirs, and food and beverages. All details, large and small, will require end-to-end tracking and execution, from point of entry, to point of use and a highly coordinated reverse logistics solution. GWC will offer this full spectrum of services thanks to 3,800,000sqm of integrated logistics infrastructure, a global reach through our extensive
sqm
830,000 260,000
AUTHORISED SERVICE CONTRACTOR FOR UPS IN QATAR
CERTIFICATIONS
freight forwarding network, more than 1,200 specialist transportation vehicles offering last-mile solutions, best-in-class IT solutions, and a highly competent team of professionals. By drawing on our robust network of contacts throughout the world to deliver the logistics and supply chain requirements, we have every confidence that we will showcase to the world what Qatar is capable of delivering in the fields of sport, culture, tourism and beyond. Our highly developed logistics infrastructure and vast knowledge and experience prepared us for this
JULY – AUGUST 2021 37
GWC, QATAR
3,800,000sqm of integrated logistics infrastructure, a global reach through our extensive freight forwarding network, more than 1,200 specialist transportation vehicles, best-in-class IT solutions, and a highly competent team of professionals. undertaking, and we continue to develop and improve in order to ensure the successful realisation of yet another landmark event in Qatar’s exciting journey. GSC: What are the specific preparations GWC has made for the world’s greatest sporting event? RM: In many ways, we have been preparing to support an event of this magnitude ever since we were established. Over the years, we have developed practical, hands-on experience through supporting the delivery of a range of high-profile sporting events, including the Asian Games, AFC Asian Cup and two editions of the last two editions of FIFA Club World Cup. Every event provides us with unique challenges and lessons learned. When it comes to FIFA World Cup Qatar 2022, we have broken down our services into six key areas: event logistics, customs brokerage, global freight forwarding, venue services, warehousing services, and reverse logistics. Thinking specifically about host country activities, our 19 logistics centres, which are spread strategically across Qatar will provide a complete spectrum of
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services and exclusive access to all tournament venues, whether they be stadiums or other sites, such as the international broadcast centre or Fan Festivals. Our end-to-end services, lean operating model and wide network of partnerships mean we are perfectly prepared to deliver whatever FIFA and the host nation require in order to stage a successful tournament. Our organisational values are also helping us to prepare for the World Cup. We are committed to delivering first-class, innovative and sustainable solutions. In addition, we are always willing to adapt to changing circumstances. Our team are up to the challenge, when solutions are needed, we step up and deliver. One example of this would be during the recent FIFA Club World Cup Qatar 2020. This tournament was hosted during a global pandemic, something which added an extra layer of challenges to all our operations. We adapted quickly, collaborated closely with our stakeholders and assisted Qatar and FIFA stage a tournament with fans present that was considered a great success by the players, supporters and officials in attendance. We understand that situations especially on a global level are fluid and ever changing. That’s why we pride ourselves on being streamlined, adaptable and continuously prepared to offer fast resolutions whatever the challenge.
GSC: Are you fully equipped and ready to offer a full suite of logistics solutions from the port of entry to point of use and return shipments back to home port or any other destination for the FIFA World Cup Qatar 2022? RM: We are fully equipped and stand ready to support what will be a unique version of the FIFA World Cup Qatar 2022 as the most compact World Cup in modern history. All tournament venues will be close to one another, for example the longest distance between stadiums is just 75km, from Al Bayt in the north of the country to Al Janoub in the south. The compact nature of the tournament is not only great for fans, players and officials; it will also help our operations to be fast and sustainable. In the lead up to the tournament, during the event itself and afterwards, our global network and highly experienced workforce will provide a full suite of logistics solutions. We will benefit from seamless access to all venues and have dedicated resources at each event site to ensure smooth delivery throughout. GSC: Provide us some insights into GWC’s warehousing competencies, storage solutions and metrics for the same? RM: Our warehousing capabilities and more than adequate storage solutions are backed by a 1,200-strong fleet of trucks, trailers and specialized vehicles to deliver and collect from logistics
GWC, QATAR
compounds, stadiums, training sites, fan zones and other locations. This fleet size effectively makes GWC the single largest fleet owner in Qatar. In addition, we are supported by a state-of-the-art warehouse management system, along with order management and transport management systems capable of integrating directly with the stadium material delivery scheduling software. Add all of this to our 2,600-strong workforce, 19 key locations, 250,000 pallet locations and a global reach of more than 600 offices and you can be sure that GWC is fully equipped to meet all the requirements of FIFA and the host nation for the next World Cup. Collectively, these abilities make GWC a premier and formidable force as a Logistics Services Provider in Qatar. To be trusted by FIFA and Qatar to provide logistics for the world’s greatest single sporting event is a huge honour and one we do not take lightly. We stand ready and prepared to offer all logistics solutions from port of entry to point of use, and return shipments back to home port or any other destination. It’s a huge challenge we are greatly looking forward to. GSC: Will the huge investments you have made in logistics and industrial infrastructure specifically for Qatar 2022 be used after the tournament? RM: We are incredibly excited to support Qatar in delivering the World Cup, however we are fully aware that the tournament will last for only 28 days. For the country and for us at GWC what is most important is what comes afterwards, specifically the legacy the tournament will leave for future generations. For us, the World Cup is part of the journey and will help Qatar achieve the tenants of National Vision 2030. Here at GWC, we
truly commend the immense efforts of the nation towards the development and completion of the various infrastructures coming together under a united and sustainable vision. When it comes to logistics and specifically the investments we have made in our operations, we know the World Cup is only the beginning. Qatar is committed to hosting more major sporting events in the future, including the 2030 Asian Games and we will be on hand to support whatever comes next. Continued growth, commitment to quality and sustainability and always being prepared to innovate in achieving goals, to name a few, describes Qatar’s journey; and we are proud that our efforts have been a reflection of that, leading to the actualization of Qatar’s 2030 vision and beyond. FIFA World Cup Qatar 2022 is just the start of an incredible journey. GSC: What support have you received from the country’s leadership, policymakers, regulators and administrators in realising your major projects and expansion in Qatar? RM: We have received massive support from all sectors from day one of our journey. We wouldn’t be where we are today without the vision, commitment and passion of Qatar’s wise leadership. One area of particular support would be Qatar’s management of the public-private partnership (PPP) something GWC is proud to benefit from. Through this partnership, we are committed to developing Qatari abilities and reinforcing the logistics sector’s role and contribution to economic development, while offering direction to government projects for new approaches and modern vision in managing national projects efficiently and sustainably. GWC provided one of the first of Qatar’s public-private partnerships to bear fruit, the
GWC Bu Sulba Warehousing Park. This was designed based on government directives to offer small and medium enterprises the best logistics infrastructure needed for their success. This project achieved its aims while providing strong economies of scale, efficient designs and operations, and innovative technologies that deliver cost
Our 2,600-strong workforce, 19 key locations, 250,000 pallet locations and a global reach of more than 600 offices. GWC is fully equipped to meet all the requirements of FIFA and the host nation for the next World Cup. savings, both in the short-term and for decades to come, all while entailing less public risk to government partners. Another PPP under development right now is Al Wukair Logistics Park, which is focusing on the micro, small and medium enterprises. This 1.5sqkm facility caters for a whole range of industries that require light industrial workshops, storage units and open yards; offering ideal platform for established companies and new market entrants. Al Wukair is one of several facilities which is attracting businesses to the country, along with Qatar’s commitment to offering a simple company formation process in which GWC is able to support. A logistics park keenly supports Qatar’s commitment to diversifying the economy and reducing the country’s reliance on hydrocarbons income, in line with Qatar National Vision 2030. We look forward to continuing our strong partnership with the country’s visionary leadership as we work together to deliver a World Cup like no other and achieve the goals of Qatar National Vision 2030. n
JULY – AUGUST 2021 39
VOLVO TRUCKS NEW LAUNCH
FAMCO launches new range of heavy-duty Volvo Trucks models in the UAE New generation FH, FM and FMX models are designed to maximize profitability for customers across the Emirates
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AMCO (Al-Futtaim Auto & Machinery Company), the UAE’s leading heavy vehicle and machinery importer, recently launched its new cutting-edge Volvo Trucks range as it reinforces its market-leading position in the Emirates. The new-generation FH, FM and FMX heavy-duty trucks have been redesigned to deliver even higher levels of productivity, class-leading safety features, as well as a more driver-friendly experience with an enhanced driver interface, interior space and overall visibility. These advanced models deliver a stronger return on range, giving users an environmental and financial saving in the process.
Partners FAMCO and Volvo Trucks have been partners in the UAE since1978 and have established a solid relationship that extends far beyond just the initial sales cycle. “FAMCO and Volvo Trucks truly are a team working closely together on a daily basis. Bringing classleading products to the market and providing the support and guidance our customers need, regardless of their industry or usage,”remarked Ramez Hamdan, Managing Director, FAMCO Commercial Vehicles. “In these challenging times, launching our new FH, FM and FMX models in the UAE has been a real team effort from everyone involved,” commented Frank O’Connor, Vice President - Middle
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East and Turkey Volvo Trucks International.
Flagship model Volvo Trucks’ flagship model, the new Volvo FH is the next generation of truck designed with the driver in mind. This model features a re-imagined cab, innovative safety features and a driver focused working environment. A key aim of the new design is to give the driver a more productive, safe and comfortable life on the road. The attention given to drivers is most obvious in the updated interior working environment. Their workspace is centered around a modernized dashboard which features a fully digital 12-inch high resolution instrument display. Further safety enhancing features on the Volvo FH include downhill cruise control, which sets a maximum speed to help prevent unwanted acceleration when travelling downhill, and an option of improved Adaptive Cruise Control (ACC) that works at all speeds, even down to zero km/h. The new generation Volvo FH combines the most successful elements from the previous FH series with smart technologies and a functional, human centric design. The result is an intelligent and sophisticated truck that helps the driver deliver outstanding performance under any conditions. The bold new look of the exterior is characterized by the signature V-shaped headlights which have
now been moved outwards to align with the feature line of the cab doors. The turn indicators have also been moved to the door, giving the truck both improved aerodynamics and a more confident look. The wiper panel is cleaner and slimmer while a bigger iron mark makes the new Volvo FH easily recognizable even from a distance.
Collision warning The Electronically controlled Brake System (EBS), which is a prerequisite for safety features such as ‘Collision Warning’ with Emergency Brake and Electronic Stability Control, now comes as standard on the new truck. Volvo Dynamic Steering, with the safety systems Lane Keeping Assist and Stability Assist, is also available as an option. Other features like AGM batteries, Clutch able air compressor helps in reducing the downtime as well as increasing the efficiency of the vehicle. The new Volvo FM is designed to attract drivers with a new cab and better visibility. The new Volvo FM heavy duty truck will be the ultimate workplace on wheels in all segments.
Above: Ramez Hamdan, Managing Director of FAMCO and Commercial Vehicles. Left: Volvo Trucks has unveiled a new lineup of heavy duty commercial vehicles.
VOLVO TRUCKS NEW LAUNCH
Potential customers checking out the new Volvo Trucks models.
The Globetrotter new sleeper cab has been upgraded with a raised bed and improved storage possibilities that include a large storage compartment underneath the bed and an upper rear storage with LED panels in the compartment dividers. The instrument display, which comes ready for future updates and connected services, is designed to simplify the driver’s interactions and minimize distractions when accessing critical information.
New cab, increased payloads The all new Volvo FMX with an entirely new cab, increased payloads and innovative safety features will improve customer expectation in areas such as sustainability, cost efficiency, safety and productivity. With increased front axle loads of up to 20 tonnes and option of up to a 38 tonne bogie, the new Volvo FMX is built for the toughest conditions and most demanding assignments. The interior is characterized by a new dashboard with more storage space, new colours and a modern cluster. It includes a
dynamic 12-inch high-resolution instrument display with a userfriendly interface allowing the driver to immediately see relevant information and select between four different screen views, depending on the driving situation. The new FMX also comes equipped with new traction control panels that helps the driver easily and quickly handle potentially dangerous situations, both on and off the road. The new Volvo FMX features the heaviest addition to Volvo’s chassis range – a 38-tonne bogie that allows for a Gross Vehicle Weight (GCW) of up to 58 tonnes.
Increased space cab The new Volvo FMX is built on an entirely new cab platform, based on Volvo’s long and successful experience of delivering robust and functional construction trucks. The completely new cab includes a front section with easily replaceable sturdy parts, headlamp protectors and new V-shaped LED headlamps. To make it easy for drivers to enter or exit, we’ve designed new anti-slip footsteps.
The new Volvo FMX comes with increased space in the day cab and storage of up to 800 litres. Drivers also get improved visibility thanks to a lowered door line and new rear view mirrors. The visibility can be improved further by adding a camera as an option on the passenger side which provides a complementary view of the side of the truck. The driver can gain more traction by engaging the differential locks in an easy way, by turning a knob, viewing the traction status on the instrument display at the same time. A new steering wheel with a neck tilt option offers the driver a more ergonomic driving position. For particularly rough applications like mining, the Volvo FMX comes with an optional steel roof hatch with an emergency exit handle that removes the entire hatch. By designing the robust new FMX construction truck that can carry more tonnes and maneuver more easily, while keeping the driver safe and comfortable, Volvo Trucks can help increase both productivity and profitability in the construction industry. n
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TECHNOLOGY
An era of transformation Innovative Technology and ingenious trends are changing the face of the E-commerce landscape and taking over the logistics, writes Naveen Joseph, Co-Founder and VP-Strategy & New Markets for iMile, a UAEbased e-commerce logistics based emerging start-up.
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ike many other industries, the logistics landscape is currently facing great change. Driven by a variety of disruptive factors–rapid digitalization, innovative technology, new business models and changing customer expectations, the industry is amidst an era of unprecedented transformation. The rise of e-commerce, amplified by the onset of Covid-19, has also shaped the future of logistics. The pandemic pushed consumers online, accelerating the growth of e-commerce in the Middle East. 40% of consumers in the region are shopping online more than they were prior to the pandemic. In key markets such as the UAE and Saudi Arabia, an average of 58% of consumers stated they would maintain their current shopping behaviours post pandemic. In countries where the growth of e-commerce has been particularly prominent, strong trends of technological uplift are emerging in the logistics industry. Furthermore, customer expectations have increased significantly, for both individuals and businesses. Consumers want goods faster, with more flexibility, and at lower or no delivery costs. The entire supply chain is under pressure to meet growing customer demands, pushing the logistics industry to explore ways to deliver better service at an even lower cost.
Readiness is critical Logistics readiness is critical for the transformation of the industry. The goal for businesses in the industry should be to move beyond traditional shipping services to manage unexpected spikes in volumes, while constantly improving delivery success rates. Adopting best-in-class technology is vital to enabling efficiency and creating more collaborative operating models that truly leverage the power of technology. A key trend driving transformation in the logistics industry is automation and Artificial Intelligence. A growing shortage of labour, coupled with an explosion in demand from e-commerce retailers, is encouraging logistics businesses to increasingly automate processes for smoother operations. Automation is enabling enhancements in transport management systems such as cloud-based integration and
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real-time track-and-trace capabilities, which have strengthened operations for both B2B and B2C supply chains by improving route and demand planning. In response to the pandemic, the logistics sector had to quickly adapt to meet consumer demands. This fast-tracked the adoption of robotics for automated warehouse picking systems, last-mile delivery robots and predictive optimization software.
Augmented Intelligence solutions Moving forward, logistics companies are aiming to implement more Augmented Intelligence solutions. These technologies can replace certain manual jobs that don’t require very complex skills, such as warehouse sorting and driving transportation, allowing logistics companies to dedicate manpower to other areas of the supply chain. Augmented Intelligence enables logistics professionals to reduce manual errors and focus more on analytic and complex duties, ultimately saving time and operating expenses, all while improving efficiency. Supply chain visibility is an essential for any logistics business operating today. However, it’s time to take supply chain visibility a step forward by incorporating real time data. We can’t talk about supply chain visibility without IoT sensor technology – vital for efficiently tracking inventory, vehicles and equipment through cloud-based technology. IoT sensors can collect real-time data to improve operational efficiency. For example, data on traffic patterns, weather or road and port conditions can be used to adapt actions and
TECHNOLOGY
Naveen Joseph is the Co-Founder & VP Strategy & New Markets, iMile, an e-commerce logistics based emerging start-up dedicated to bridging the gap between China and the world In iMile Naveen plays diverse roles looking after several internal departments with an objective to build scalable processes. He is a process driven professional with critical thinking ability and business acumen. Prior to iMile, Naveen was Head of Operations for Fetchr. He also carries over 7 years of rich experience in Amazon.com where he played diverse roles in several departments. reshape demand or redirect supply to optimize route planning. Logistics companies that have integrated real-time technology into their supply chain have reported 20% more efficiency than those without integration. In the coming years, 5G is predicted to lead the global standard of communication technology. This can enhance IoT tracking and sensor technology to enhance realtime data insights. In terms of directly improving the consumer experience, customer service is a key touchpoint for the logistics industry. Web to mobile technology is increasingly being adopted, moving tracking and customer interactions on mobile for a more agile communication model.
Chatbots Chatbots are another key trend, increasingly integrated to tackle customer service challenges in the logistics industry. Bots are a form of automation/AI technology that help to deliver highquality customer support while reducing costs and optimizing employee’s time and management. The best feature of chatbots 24/7 service. Customers today want responses quicker than ever. More than anything, they want to feel heard. Chatbots have capabilities to instantly process order amendments, receive delivery requests, track shipments, provide data analytics and respond to basic queries, anytime, anywhere. Another trend that is sweeping across industries is sustainability, and logistics is no exception. Last-mile delivery, in particular, has been regarded as an energy-consuming
function, encouraging opportunities for greener approaches to lessen environmental impact. Logistics companies are switching to electric vehicles and using AI-based software to calculate transport route with the lowest emissions. In my experience with iMile, the level of customization achieved through in-house technology can deliver significant benefits to improve speed, efficiency and ultimately, customer satisfaction. Developing more streamlined consumer touchpoints and simplified user interfaces is one way we keep customers satisfied within the ever-growing demand of the logistics space.
Collaborative approach Going forward, one of the most important drivers of growth in the logistics industry is to build a strong connection between tech teams and on-the-ground operations. This collaborative approach encourages technology created to truly reflect the pain points of customers. Furthermore, it’s important to have talent in place that embraces change to innovate, helping to push boundaries in the industry. Common themes throughout these technological trends are collaborative working and reactive adaptability, which is what enables current market leaders to maintain their dominance. The logistics landscape is growing at an exponential rate, and the only way to survive, and thrive, is by embracing new opportunities and challenges that come your way. The future of logistics will continue to test adaptability, resilience and intelligence for all organisations operating in global trade. n
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ETIHAD RAIL
Track laying inaugurated in Saih Shuaib leading to Abu Dhabi and Dubai
Sheikh Theyab and his delegation tours Etihad Rail project.
Theyab Bin Mohamed Bin Zayed reviewed the latest developments of the project
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heikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court and Chairman of Etihad Rail, recently inaugurated track laying at the railhead in Saih Shuaib, heading towards Abu Dhabi and Dubai. Sheikh Theyab reviewed the project updates through a journey he took on an inspection train designated for supervision and inspection of construction works, from the starting point of track laying in Saih Shuaib towards both Abu Dhabi and Dubai. During the 10km journey reaching Al Maha Forest, Sheikh
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Theyab was briefed on Etihad Rail’s procedures and measures to protect the natural habitat and wildlife during the implementation of the project within the forest, including the development of bridges, culverts and animal crossings. During the visit, Sheikh Theyab stressed the importance of this strategic project, which is capable of revolutionising the UAE’s transport sector, and emphasised that the network forms a key part of the UAE’s world-class integrated transport ecosystem, strengthening the UAE’s global leading position in provision of quality transport infrastructure.
Sheikh Theyab tours Etihad Rail project.
The development of the UAE National Rail Network, one of the largest infrastructure projects in the nation, is on schedule for delivery. The network is significant in providing a modern and sustainable national rail network, bolstering the UAE’s leading regional standing. Etihad Rail has successfully completed Stage One of the network. Stage One is fully operational and was delivered on schedule and within budget. The route spans 264 km, transporting granulated sulphur from sources at Shah and Habshan to the export point at Ruwais. n
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KING ABDULLAH PORT, SAUDI ARABIA
King Abdullah Port ranked second most efficient container port globally by the World Bank The port’s prominent position in CPPI 2020 demonstrates its growing capabilities and strong commitment to the Kingdom’s Vision 2030
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audi Arabia’s King Abdullah Port, on the Kingdom’s Red Sea coast, has been ranked second among the most efficient container ports in the world, according to the Container Port Performance Index (CPPI) for the year 2020 published by The World Bank and IHS Markit. The report, which is the first of its kind that scores ports against different metrics, is based on total port hours per ship call, standardized for different ship sizes and container moves per call. Rabigh-based Economic City’s
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King Abdullah Port’s prominent position in CPPI 2020 recognizes the quality and efficiency of its infrastructure and its contributions to Saudi Arabia’s growth strategy and the Kingdom’s growing importance as a global trade hub. The recognition also demonstrates the port’s continuous progress in accordance with its long-term strategic plans and objectives, embodying the motto ‘Sailing Toward the Vision’ launched during its official inauguration in 2019, which was attended by HRH Prince Mohammad Bin Salman, Crown
Prince, Deputy Prime Minister and Minister of Defence.
High performance “We are proud of King Abdullah Port’s consistently high performance in various global rankings and indices, highlighting our growing operational capabilities as well as our extraordinary resilience amid the current challenges of the global economy,” asserted Jay New, CEO, King Abdullah Port. Furthermore, King Abdullah Port’s continued milestone underlines
the success of the public-private partnership model, considering that we are partnered with over 17 government agencies while being fully managed and operated by the private sector, according to a corporate press communiqué. “With each new recognition at the global level, we continue to deliver on our commitment to raising the efficiency of Saudi Arabia’s logistics and trade sectors, transforming the Kingdom into a top global hub connecting Asia, Europe, and Africa, and increasing its non-oil exports, in line with the Kingdom’s Vision 2030 objectives,” he continued. King Abdullah Port has been actively contributing to the postCovid-19 resurgence of the Saudi Arabian economy through its enhanced operational efficiency, digital initiatives, realigned working practices and procedures, and proactive health and safety protocols.
Impressive growth As a result, the port was able to achieve impressive growth and success amid the challenges besides further strengthening the Kingdom’s trade and logistics sectors, the press note continued. Owned by the Ports Development Company, King Abdullah Port is the region’s first port to be owned, developed, and operated by the private sector. Listed as one of the fastest-growing container ports, the port emerged as one of the world’s top 100 ports within four years of operation. With its strategic location in King Abdullah Economic City–a modern city with a pro-business ecosystem and infrastructure–King Abdullah Port leverages the city’s advanced facilities and services, particularly the Industrial Valley, which has attracted many logistics projects as well as light and medium industries. n
King Abdullah Port attains new record for monthly breakbulk cargo handling The port handled 600,000 tons of breakbulk cargo in April 2021 King Abdullah Port accomplished a new record for the monthly volume of breakbulk cargo, by handling over 600,000 tons during April 2021. The accomplishment demonstrates the port’s outstanding capacity and efficiency in cargo handling as well as the role it plays in facilitating the smooth flow of trade in the Kingdom and the region, besides its contributions to the growth of the logistics sector. “King Abdullah Port’s new record demonstrates its growing significance as a major hub for global trade through the advanced infrastructure and efficient operations,” stated Jay New, CEO, King Abdullah Port. The new feat that consists of cement-related, agricultural and steel materials follows King Abdullah Port’s strong performance of 2020 despite the challenges of the global pandemic, when it recorded a 12.4% growth of the bulk and general cargo segment. Ranked as the world’s second most efficient port by The World Bank in 2020, King Abdullah port emerged as one of the world’s top 100 ports within four years of operation. King Abdullah Port is the Middle East’s first privately owned, developed and operated port. Occupying an area of 17.4sqm and enjoying close proximity to the key Saudi cities of Jeddah, Makkah, Al Madinah and Yanbu, as well as its direct access to extensive transportation networks that facilitates the cargo transport through the kingdom and the rest of the region, the port is making an increasingly important contribution to the Kingdom’s global role in maritime trade and logistics. Once fully completed, King Abdullah Port will be capable of handling 25 million TEU, 1.5 million CEU and 25 million tons of clean bulk cargo annually. With state-of-the-art infrastructure and processing facilities, the world’s deepest 18-m berths, multi-level expanding operations, in addition to a fully-integrated Port Community System, the Smart Gate system and multipurpose bonded and re-export zones, King Abdullah Port reflects the important role of the private sector in realizing the Kingdom’s Vision 2030.
Saudi Ports appoints Omar Hariri as CEO The Saudi Ports Authority (Mawani-SPA) Board of Directors has appointed Omar Bin Talal Hariri as CEO, effective early July 2021, according to a recent press statement. This appointment culminates 18 years of experience, which he started in 2004, as the new CEO proved his competency through the number of leadership positions he held in the transport and logistics sectors, Mawani said in a recent filing. Prior to this, Hariri was Saudi Airlines Cargo and the Saudi Logistics Company (SAL) CEO, since 2018. He led the two companies towards transformation by developing infrastructure, introducing the latest digital programs, modernizing systems and raising the Saudization rates to 95 percent, among other changes. He also worked on developing and implementing the group’s strategy in line with the Kingdom’s Vision 2030. Hariri held the position of CEO in several companies earlier. He is also a member of boards of directors and committees, in the International Air Transport Association Consulting (IATA Consulting), the Logistics Committee of the Jeddah Chamber of Commerce, and others. He also chairs the Board of Directors of the SkyTeam Cargo Alliance.
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RENAULT TRUCKS & VANS
Fujairah’s Al Jadawel signs deal for 10 Renault Trucks The Renault Trucks K 480 Tractor Head 6x4 models to deliver the highest levels of driver comfort for the transport operator
R Renault Trucks K 480 in action.
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enault Trucks recently announced the delivery of ten K 480 heavy-duty construction models to one of the UAE’s leading construction material transportation companies, Al Jadawel Land Transport. The ten Renault Trucks models are part of a total fleet size of 98, and Al Jadawel Land Transport plans to turn the whole fleet to Renault Trucks by end of next year.
The Fujairah-based company will be using the new models, which have been supplied by Renault Trucks’ partner in the UAE, United Diesel, to transport aggregate from the crushers in the Northern Emirates across the country. The Renault Trucks K 480 Tractor Head 6x4 models purchased by Al Jadawel Land Transport deliver the highest levels of driver comfort, reliability, and fuel efficiency. They are equipped with a range of features that are designed to optimise productivity, minimise downtime, reduce operation costs and maximise profitability, according to a corporate press communiqué. “With operations across the UAE, which is known for its tough terrain and high temperatures, we require trucks able to withstand these harsh conditions,” commented Najah Al Tahir, Owner, Al Jadawel Land Transport.
RENAULT TRUCKS & VANS
Renault Trucks enters a large purchase deal with Al Jadawel Land Transport
“We are seeing more and more customers working with crushers in the Northern Emirates shifting to K models, which is certainly not a coincidence,” remarked Guillaume Zimmermann, Commercial Director, Renault Trucks Middle East.
Al Jadawel Land Transport’s new Renault Truck K 480 models.
“This latest fleet deal is due to the quality of the Renault Trucks produce line-up, but also to our dedication for delivering the highest standards of customer service in the UAE,” stated Mokhles Makary, General Manager, United Diesel. n
Al-Babtain Group opts for Renault vans for refrigerated cargo supplies in Kuwait Yali & Alayyab Trading, authorized dealer of Thermo King in Kuwait will supply Al-Babtain Group with dedicated service and at least 700 Renault van units in 2021, making it a one-stop-shop for Renault refrigerated vehicles. “This deal makes us a one-stop-shop for companies looking for a reliable refrigerated transport solution, with low total cost of ownership and a flexible and dedicated service across the country,” remarked M. Balasubramanian M, Head, Fleet Sales & Leasing, Al-Babtain Group. “At Thermo King, we are working closely with our authorized dealers to give transport companies access to the latest technology, expertise and on-theground support they need to keep their operations running efficiently,” stated Walid Sellami, Area Manager Middle East and North Africa, Thermo King.
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SUSTAINABILITY
Hellmann’s Middle East South Asia operation is the first in the region to join the Air France KLM Martinair Cargo Sustainable Aviation Fuel programme.
Air France KLM Martinair Cargo Sustainable Aviation Fuel programme
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he Middle East South Asia (MESA) operation of Hellmann Worldwide, one of the largest global logistics service providers has become the first in the region to join the Air France KLM Martinair Cargo (AFKLMP Cargo) Sustainable Aviation Fuel (SAF) programme, it was announced via a recent press communiqué. Hellmann is a global logistics services provider with a strong commitment to sustainability focusing on the three pillars of economy, ecology, and social issues. The AFKLMP Cargo SAF contract was signed at the regional Air France-KLM office in Dubai, United Arab Emirates, by senior representatives of both companies. Air France-KLM launched its innovative corporate SAF programme in January 2021 to enable companies to play an active role in the future of sustainable travel.
SAF Programme The Cargo SAF Programme makes it possible for shippers and forwarders to power a share of their flights using SAF. Customers may choose their level of engagement and AFKLMP Cargo ensures that the total amount of investment is used for the sourcing of SAF.
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Cargo SAF Programme partners receive a third-party audited report justifying the purchased amount of SAF linked to the traffic volume, and indicating the achieved reduction in CO2, helping make air transport more sustainable. By participating in the Cargo SAF Programme, customers not only reduce their carbon footprint but also demonstrate leadership and a commitment to a more sustainable future.
Reducing carbon footprint “In our 150-year long company history, we have always been organisation that lives sustainability; always keeping in mind our great responsibility for people, the environment and
also society. Joining hands with Air France KLM Martinair Cargo has given us an opportunity to contribute towards reducing our carbon footprint, in freight transportation,” remarked Baby George, Vice President – Airfreight, Hellmann MESA. “With this agreement we are frontrunners in the industry by delivering green logistics solutions. Our shared commitment to creating a sustainable future for aviation means that together, we are now taking ambitious steps to achieving this by pioneering the development and adoption of these revolutionary fuels in the region,” commented Philippe van Meir, Director Middle East & Southern Asia, Air France KLM Martinair Cargo. n
Hellmann MESA has partnered with Air France KLM Martinair Cargo (AFKLMP Cargo) to support the Sustainable Aviation Fuel (SAF) programme.
OPED: TECHNOLOGY
Track-and-trace technology: Advancing full supply chain visibility For a supply chain to be fully organized and efficient, complete system visibility is a need that one cannot simply ignore and dispense with. Real-time visibility is critical to handling the complexity that comes with managing an expansive supply chain network, which typically comprises many parties, not to mention lots of paperwork, and technologies, opines Jihad Tayara, CEO, EVOTEQ.
V
isibility and transparency in business operations and monitoring are vital and paramount given that the freight and logistics industry in the Middle East and Africa region is seen to witness a compound annual growth rate of approximately 4 per cent during 2021-2026. Full supply chain visibility provides a more comprehensive management as it allows roundthe-clock, 360-view of the location and movement of parts, materials, components or products. This helps deter costly delays, tracks status and guarantees the reliability of supply at every stage, as they move from the manufacturer to the end user. It also enables swift action and response in case supplies are needed to be redirected due to changes in demand and other factors. Its other advantages include higher profitability and productivity opportunities, improved operational efficiency and product loss prevention. A low visibility environment invites risks and may put the supply chain system in jeopardy. It may result in unfortunate incidents such as theft, serious human errors and order mistakes. The risk of fake products entering the supply chain is also likely, posing serious
threats to communities. Counterfeit medicines, food products, personal care and a host of other substandard items are considered a threat if left undetected, delivered to and used by the households.
Allocating resources Businesses use a track-and-trace technology to enable real-time monitoring of the supply of goods in their warehouse facilities and efficient management of delivery commitments and targets, as well as to comply with existing regulations. It is also through track and trace that companies can provide customers with updates about their shipments or ordered products. From the place of origin to the destination, customers have now the ability to know the status and condition of their cargo – leading to increased client trust, confidence and retention. This monitoring of their parcels is now an expected service among shoppers and considered an added value to the totality of their online shopping experience. Businesses nowadays are anticipated to extend this visibility, as customers continue to turn to digital channels for all their needs. In the UAE and Saudi Arabia, more than 80 per cent of consumers
Jihad Tayara, CEO, EVOTEQ
have now shifted to online shopping since Covid-19.
Supply chains issues The track-and-trace system can also tackle other supply chainrelated issues, including poor agility, flexibility, and coordination, lack of transparency, and disruptions – all of which result in increased cost and loss of sales opportunities. Mistake patterns can easily be spotted and, more importantly, the possibility of counterfeit products entering the supply chain can be avoided. A track-and-trace technology also puts in place a process that drives informed decisions, with real-time data that is being churned out can be utilized to identify trends and patterns for further system improvement and to anticipate future customer and business needs. Under the new normal brought about by the Covid-19 pandemic, full visibility through track and trace has become more imperative than ever before. The growing e-commerce activities and even the need to monitor and transport Covid-19 vaccines are now raising the stakes in the industry. Companies must take heed and ensure supply chain visibility to help them be more prepared for a post-pandemic world. n
80% of consumers have shifted to online shopping since Covid-19
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CATHAY PACIFIC EXCLUSIVE
Cathay Pacific Airways operated its first flight from Dubai to Hong Kong in the pandemic on 21 May.
Sustainability initiatives take off with Cathay Pacific’s environmental concerns The Cathay Pacific Group recently released its 2020 Sustainable Development Report that highlights the initiatives brought about by the pandemic to lead the charge towards sustainable aviation and ensure future generations can experience the joy of travel.
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he latest Cathay Pacific Sustainability Report has identified the progress made in reducing carbon footprint and measures taken to tackle operational sustainability matters. The airline announced its commitment to achieve net-zero carbon emissions by 2050. To get the lowdown on how Cathay Pacific is engaged on ecology matters and a wide range of other subjects, Global Supply Chain interviewed Vishnu Rajendran, Area Manager, Middle East. He spoke expansively about all things cargo, performance,
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expansion plans and the carrier’s spirited response to the pandemic challenges. Global Supply Chain (GSC): How significant is the cargo sector & cargo operations / component from a revenue standpoint for Cathay Pacific? Vishnu Rajendran (VR): We have always had a strong foothold in both verticals of our business, passenger and cargo. However, given the current scenario that we are in, cargo has definitely emerged as the stronger sector between the two business units. While it has always been one of
the fundamental drivers of our business, our reliance towards cargo has increased. Our global cargo revenue in 2020 was HK$ 24,573mn (US$ 3.166bn), an increase of 16.2% compared to 2019 and we continue to see a firm demand for cargo going forward. GSC: How significant is the UAE and the region for Cathay Pacific? How is demand holding up in the region? Do you operate freight only flights into the region? VR: For over 40 years, Middle East as a region has always been of prime importance to Cathay Pacific especially from a cargo perspective.
CATHAY PACIFIC EXCLUSIVE
For the month of June, not only are we operating five freighters to Europe and one weekly freighter to Hong Kong, ex-Dubai, but have also deployed a weekly freighter into Riyadh, thereby expanding our footprint in the GCC region. Precovid-19, we had a robust passenger schedule which was fourteen flights per week that supported our cargo services. However, after a temporary pause in our services due to the pandemic, we have resumed our passenger operation, albeit with a reduced schedule. Our resumption of passenger flights on 21 May, 2021 was positively received by both passengers and trade partners, particularly from the cargo side of the business. Owing to the demand for both passenger and cargo flights, we will be ramping up our frequency to two flights per week from July onwards. We have always seen a mix of demand for various products, specifically for the renowned Expert LIFT product, wherein we tailor make solutions for customers to transport odd-size shipments on our freighters. Moreover, our partners prefer using the Expert LIFT solution since we pick up odd size shipments such as engines from the shippers warehouse and load them directly on to our flight. Going forward we continue to see a similar demand for general cargo, secure cargo as well as courier shipments especially to 4th and 6th freedom. GSC: How did Cathay Pacific (Cargo) perform in the UAE / Middle East region in 2020 and how does that compare with your 2019 performance? VR: 2020 was indeed a challenging time for the aviation industry as a whole. However, our cargo operations proved to be a ray of hope across our global network, including the UAE. We operated a total of 143 freighters, 158
passenger flights and 24 cargoonly-passenger flights in 2020. We saw strong demand for medical supplies over 6000kg of passive pharma shipments. In a world with new ways of working such as Work-From-Home and online schooling, we saw an increase in demand for electronics, specifically laptops being uplifted to USA, mainly Miami. GSC: What is your outlook for 2021? What new products / initiatives (if any) do you plan to launch for CX this year? VR: Cathay Pacific was one of the first few airlines to be hit by the pandemic and we have taken numerous measures to stabilise our business. Understanding the importance of servicing our customers and trade partners across our business verticals has been immensely important for us. Not only are we regularly reviewing the developing situation but are also communicating with our customers actively, helping us service them better. Our focus has been on enhancing our expertise and being technologically progressive. We are in the process of fast-tracking our digitalisation projects such Blockchain management, taking the lead in IATA’s ONE Record initiative, adding the Envirotainer Releye RLP for carriage on our aircraft fleet–being the first Asian airline to do so, as well as adopting the CommonPass. We continue to take strong safety measures for our customers travelling with us as well as provide them with the flexibility they require. We understand the impact that vaccination will have on global travel and have encouraged our teams to get vaccinated. We believe that increased vaccination will help in normalizing international travel globally. Furthermore, we stand ready to support people from different countries and communities around
Vishnu Rajendran, Area Manager, Middle East
Our global cargo revenue in 2020 was US$ 3.166bn, an increase of 16.2% compared to 2019 and we continue to see a firm demand for cargo going forward. the world. Through our efforts to bring Hong Kong residents home from the United Kingdom or supply essential medical aid to India, we will do whatever we can, whenever required. GSC: How many destinations regionally and globally does CX cover? What are your top 3 destinations for out-bound cargo from UAE? VR: Cathay Pacific has a robust network of over 200 destinations across the world. In addition to our hub, Hong Kong, Europe continues to be a key focus as we operate direct flights to Amsterdam, Frankfurt and Paris from Dubai. We also see strong demand to the South West Pacific. GSC: Where does CX stand with regard to passenger flights out of your Hong Kong hub into the Middle East? When do you propose to resume flights into this region? VR: Owing to the pandemic last year, we had temporarily suspended operations in 2020. However, we recently resumed weekly passenger operations on 21 May 2021 and
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CATHAY PACIFIC EXCLUSIVE
have deployed the Airbus A330 on the Hong Kong–Dubai–Hong Kong route. We intend to increase this to two flights per week from July and continue to remain optimistic towards a further increase in frequency, in the near future. GSC: Cathay Pacific recently published its 2020 Sustainability Report. How vital is Sustainability for the carrier and why? VR: With the pandemic looming over us, we recognise the importance of a sustainable and safe future, more than ever. We believe the four aspects of sustainability, i.e. environment, social, economic and governance is of paramount significance to us. Through our sustainable development strategy policy we aim to go beyond the jurisdictions of not only doing business, but have an multi-layered impact as a humble employer, a valueadding community member, and a service provider that exceeds our customers’ expectations. Over the years, including the time when during the pandemic our sustainability journey never stopped. We continue to focus on the key initiatives across our business, be it in on board by
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reducing paper, serving sustainably sourced food or even on-ground by reducing ground emissions from non-aircraft operations by investing in multiple methods including energy-saving measures such as low-impact lighting devices, chilled water system optimisation and ground fleet vehicle electrification. We have also taken delivery of 10 new fuel-efficient aircrafts, reduced a significant amount of single-use plastic from our baseline, and introduced our ‘4R’ Single-use Plastic Strategy: Rethink, Reduce, Reuse, Recycle. Furthermore, we eliminated 43 million pieces of single-use plastic items from our annual usage baseline and have also committed to achieving net zero carbon emission by 2050. GSC: What are the key takeaways and highlights from the report in relation to safety, biodiversity, food sustainability and climate? VR: Safety: Safety has always been our number one priority. In the face of a global health threat, we are committed to safe travel more than ever. We launched Cathay Care, a new protocol that incorporates exceptional hygiene and disinfection practices at airports and onboard our aircraft to ensure the wellbeing of our customers and
our people during their journeys. In 2020, we also introduced the new Port Restart Process to enable the safe return of passengers and employees to closed airports when conditions allow. Biodiversity: We implement policies that protect against illegal animal trade, serve sustainable seafood on our flights and work with suppliers to promote practices to reduce their environmental impact. In 2020, we served over 58 tonnes of certified sustainable seafood and carried out 1,672 air cargo screenings on 151 freight forwarding agents in line with our Sustainable Development Cargo Carriage Policy. Our priority in 2021 is to continue working with civil society organisations to prevent illegal wildlife trades. Food sustainability: We recognise the need to conserve certain species that are endangered due to the problem of overfishing, and have established our internal Sustainable Food Policy to provide guidance for our purchasing decisions. We consciously opt out of purchasing specific unsustainable food items. Additionally, as a step to provide customers with plant-based dishes and meat alternatives, we have been serving customers Beyond Meat.
CATHAY PACIFIC EXCLUSIVE
Climate: The Cathay Pacific Group has committed to achieving net-zero carbon emissions by 2050. We recognise that our industry must decarbonise in order to mitigate the impact of climate change and as one of the leaders in the industry we aspire to be one of the chief contributors to the global efforts. We have set up a dedicated crossfunctional Climate Action Steering Group and have also developed an approach to tackle climate change. This approach extends from managing our own operations, to working with industry bodies and helping our customers to reduce their carbon footprint from flying. We have further identified five core areas of our climate change strategy - Carbon Offsetting and Reduction, Scheme for International Aviation (CORSIA), Sustainable aviation fuel, Carbon offset programme, Aircraft emissions and Ground emissions, and have actively been understanding and enhancing our existing efforts in all these areas. GSC: What is CX’s composition (kinds and range of products) for both inbound and outbound from the UAE? VR: We see an array of different shipments across our operations from the UAE. One of the products that continues to have an increase in demand are odd-size shipments. Additionally, we also see a demand for shipments ranging from general cargo, dangerous goods and valuable goods. We also provide expertise loading through nose door operations where required. As we continuously study the demand for different product segments from the Middle East, we believe that product innovation is key. We recently launched two additional products in the UAE and across the network–Vaccine Solution and Skid FCB, which is only seen in inbound shipments. GSC: What are your short and
Our cargo operations proved to be a ray of hope across our global network, including the UAE. We operated a total of 143 freighters, 158 passenger flights and 24 cargo-only-passenger flights in 2020. long term expansion plans & vision for CX? Do you plan to open up new destinations in the region? Going forward, what opportunities and challenges do you foresee for CX in the UAE and the region? VR: One of the major challenges we face is the ambiguity that lies ahead. However, the past year and a half has forced us to study different strategic approaches. Our focus going forward would be to carefully, yet effectively implement solutions that accommodate the market demand, utilise the current cargo capacity to the maximum as well as to provide innovative offerings through strategic partnerships. A key opportunity definitely lies in the transport of vaccines. We have launched the Vaccine Solution which caters to the extreme temperature range required for vaccine transportation. Additionally, the delivery of our A350s as well as our technological expansion, will undoubtedly help
us better serve our customers on both passenger and cargo fronts. While we gradually resuming our flights to various destinations, we are positive that once border restrictions start easing, we will see an uptick in passenger demand and further increases in capacity. We have been operating in the UAE for over 40 years. This continues to be a strategic and very important market for us. While the pandemic decimated passenger demand, we believe the future does hold many opportunities. One of which is being the ability to cater to pent up demand by connecting passengers safely, efficiently and comfortably to their preferred destinations. On the cargo side, limited schedules across the network have undoubtedly had an impact on our cargo carrying capacity. In this regard, we continue to study the market and evaluate different opportunities. We are confident that we will overcome this challenge as travel restrictions ease. n
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EMIRATES SKYCARGO
Emirates SkyCargo expands pharma cool chain infrastructure in Dubai Carrier has so far transported 75 million pandemic vaccine doses; aims for 100mn by end June 2021
E Emirates SkyCargo has flown over 350 tonnes of vaccines around the world
mirates SkyCargo has further strengthened its temperature sensitive pharma and vaccine handling capabilities in Dubai with the extension of its fully automated cool room with 94 airline pallet positions at its EU GDP certified dedicated pharma facility at Dubai International Airport. The extended cool room will provide an additional 2600sqm of temperature controlled environment (2-25 degrees Celsius) for the storage and handling of vaccines and other pharmaceuticals at Emirates SkyCargo’s purpose built GDP certified facility. This has reinforced the carrier’s position as an industry leader for the air transportation of pharmaceuticals and providing additional capacity at its Dubai hub to meet the growing demand for transportation of Covid-19 vaccines. The new extension can hold an estimated 60-90 million doses of pandemic vaccines at one time.
Transportation of vaccines Emirates SkyCargo continues to play a leading role in the international distribution of
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Covid-19 vaccines having transported over 75 million doses of vaccines on more than 250 flights to over 60 destinations since late 2020. “Emirates SkyCargo is proud to have flown over 350 tonnes of vaccines around the world, delivering much needed support to communities that are still heavily impacted by the current wave of the pandemic. We expect to reach the 100 million doses milestone well before the end of this month,”said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Emirates SkyCargo was one of the first air cargo carriers to begin extensive preparations during the early stages of the pandemic for the transportation of Covid-19 vaccines. In October 2020, the carrier announced the setting up of a dedicated GDP certified airside hub in Dubai for transporting vaccines. The carrier has over 20,000sqm of EU GDP certified cool chain infrastructure for storing and handling vaccines in Dubai. Emirates SkyCargo also has more than 50 cool dollies dedicated for pharmaceuticals at its hub protecting temperature sensitive shipments such as vaccines during
transit between the aircraft and the cargo terminal.
DP World partnership In January 2020, Emirates SkyCargo joined hands with DP World, International Humanitarian City and Dubai Airports to form the Dubai Vaccine Logistics Alliance aimed at rapidly transporting Covid-19 vaccines through Dubai to developing countries. This was shortly followed up in February 2020 with an MoU with UNICEF to expedite the transportation of Covid-19 vaccines under the COVAX initiative. In addition to Covid-19 vaccines, Emirates SkyCargo has transported thousands of tonnes of other essential commodities such as PPE, pharmaceuticals and related supplies on its flights. The carrier recently set up a humanitarian airbridge initiative to transport urgent Covid-19 relief items to India. Under the initiative, the air cargo is offering any available cargo capacity on its flights from Dubai to nine destinations in India, free of charge for NGOs for transporting medical and relief items. n
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WAREHOUSE MANAGEMENT SYSTEMS
Tech innovations
in warehouse management are a non-negotiable pillar in post-pandemic operations Under these unforeseen and prolonged pandemic circumstances and a future that is unclear, supply chain and one of its key components, warehouse management, can get increasingly complex to ensure business continuity. Most importantly adaptability to changing context and risk mitigation would be critical to ensure seamless operations, opines Alok Sharma, CEO, Shycocan Corporation, in this special contribution.
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he pandemic has brought dramatic changes to every walk of life. We have had to brace for a new normal that is far away from what we were used to while we cope with the waves of new strains. Clearly, there is a lot of uncertainty and ambiguity ahead of us. The new demand for e-commerce has kept supply chain managers up at night. As technological advancements prop up and the awareness grows, more and more organizations are turning towards implementing them to survive and thrive in the new normal. 80 percent of global warehouses did not have any technology implementation in 2016 and 36 percent of retailers said they adjusted their marketplace strategy as a result of Covid-19. For effective and efficient running of a business, warehouse management needs to be structured to manage the present and the changing needs, with technology playing an integral role in being ready for today and tomorrow.
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Given below are some pointers in Technology Innovation for Warehouse management in the new normal which is evolving and continuously changing.
Technology for Safety The workforce is the heart of your business and their safety and security in the premises should be given the highest priority. Providing the workforce with life & medical insurance and conducting a vaccine drive should be the early interventions to give them confidence to work. Thermal scanners help determine body temperatures with no contact and keep the environment safe. Deploying these units at all relevant entrance and exit points shall ensure that temperature is monitored round the clock. Despite such steps taken by many warehousing companies, operations have been disrupted whenever the workforce has been infected during the pandemic. A new category of devices for
viral-defence is needed that can halt the transmission of the virus from one person to another in all enclosed spaces especially the warehouses. One must explore path-breaking innovations like the Shycocan, a virus attenuation device that neutralises viruses in the current pandemic with up to 99.9% efficacy indoors. This revolutionary device can be placed in indoor spaces to create safe zone areas where transmission of the virus can be stopped with ease. Coupled with the power of IoT, this technology can be integrated into facility & building management systems and can be tracked to build a strong and robust safety net. Winning the confidence of your employees is critical for both productivity and smooth operations.
Technology for Business Continuity Business continuity is of paramount importance in today’s environment. Ensure your employees can support
the warehousing operations from home and give them the necessary tools to keep in touch with ground teams and communicate efficiently. Logistics has taken a new form that quickly eliminates paper processes and conventional methods of management to avoid no-touch operations wherever possible. Automation is now an imperative and a major differentiator as customers need emergency supplies in today’s times and look forward to the fastest and most efficient providers. In the new normal, customers simply cannot afford the risk associated with manual processes and their potential inefficiencies. This is where the power of automation for meeting market demands and providing adaptable solutions comes in. The automation market across the region is set for a paradigm shift due to digitalisation initiatives by end-user industries and the global warehouse automation market is set to grow more than double from 2019 to 2025, on the back of strong macro and industry growth drivers of e-commerce fulfillment and increasing warehousing labour costs. This pandemic has made it apparent that supply chain needs to be more agile, adaptable, nimble footed to meet the dynamic challenges and requirements of the marketplace.
Technology for preparedness The pandemic has been disruptive and posed major challenges to the industry like never before. It is insufficient to focus on the current normal, but plan and proactively be prepared for future challenges too. The marketplace will be dynamic and far more competitive in the future than today. The Middle East is one of the fastest growing e-commerce
markets across the globe. The market was worth US$ 8.3bn in 2017 and is expected to more than triple by 2022 to reach US$ 28.5bn, according to a new research by Bain & Company and Google. E-commerce is booming and customers are leaning more to these platforms to serve them while remaining in the safety of their homes. At a time when it is difficult to conduct business, the demands & expectations of clients is bound to rise. Warehouse Automation is no longer an option. Warehouse digitalization initiative requires enhancing skills of existing resources as well as bringing in fresh expertise such warehouse domain functional analysts, emerging technology specialists, data scientists, agile coaches and change leaders. They will enable the much need process efficiencies, working collaboratively and preparing the business for ever changing market needs and rising customer expectation. These efforts would secure and help businesses to remain relevant for the present while being better prepared for the future as well.
replaced bulky hand scanners and enable ease of operation. With lockdown conditions and lowered manpower resources in warehouses, there is an increasing dependency on technology help the warehouse achieve its daily, weekly and monthly targets. This pandemic is unprecedented and warehouses have to rely on innovative technology to keep their businesses running today and in the future. We began by saying ‘the pandemic changed everything’, but, optimism says, ‘technology will change everything for the better.’ n
Technology for productivity An optimum balance between technology and human capital in warehouses is critical to costeffective daily output. High quality manpower, Controlled labour costs complemented by progressive automation using best digital technologies would enhance overall warehouse productivity. For example, an innovative technology like voice picking can enhance manpower productivity and operational accuracy as it keeps them physically free. Workers are easily trained to be efficient in using their voice to function. Ring scanners have
Alok Sharma CEO, Shycocan Corporation (Scalene Hyperchange Corona Canon), the company behind a breakthrough new technology, the Shycocan, a virus attenuation device that can disable the entire Coronavirus family of viruses with up to 99.9% efficacy in enclosed spaces as per multiple virology test reports from accredited laboratories globally. He is the former MD of Apple India, an angel investor, entrepreneur and eternal optimist.
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THE LAST WORD
Supply Chain reliance. It is required?
The pandemic has thrown much of the Supply Chain mechanism and ecosystem into disruption and disarray. That is a given. In a changing landscape resilience and flexibility are important attributes for supply chain professionals 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.
H Supply chain management is the largest part of every company – external and internal
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ere are some thoughts for manufacturers, retailers, and MNCs on supply chain resilience. This is a work in progress. Becoming supply chain resilient is not confined to the four walls and technology. Building supply chain resilience is not optional. Over the past almost 18 months, think of all the stories about supply chains. The E2E (Exchange-toExchange) supply chain is a case in point. Its innate resilience is being tested daily. When material, manufacturing, logistics and transport demand exceed their design capabilities and the impact of the pandemic continues, then increased supply chain resilience implies reduced supply chain risk. Supply chain management is the largest part of every company-external and internal. And it touches about every department inside. There are two parts to your supply chain resilience—inside the confines of your facilities and outside. Inside the company gets much attention. Outside, despite its size and complexity, does not
and that can be a shortcoming in your effort. Start with your supply chain structure--the organization, process and technology. Much of the stories on SCM resilience talk about technology. That can be a singularity of focus and miss much as to supply chains. Let’s go beyond things like robotics, drones, and 3D printing. Data analytics: Think of all the data across your end-to-end supply chain and what it can mean to operations and performance. Digitization: This also provides more data for analytics and all participants in your E2E supply chain. Visibility: This is more than the track and trace transportation providers give you. Go deeper and granular. The real needs are with your inventory, purchase orders, and customer orders. Take a purchase order and track all that happens, including parties that you may not normally see. Blockchain: Getting all the transaction participants involved including those you may not see. Build the blocks for your chain.
This gives visibility and data. Assess your process: Removing gaps improves your speed and responsiveness. Gaps are potential points where there is no resilience. Follow your inventory / products / finished goods / raw materials, and more. Take your purchase orders and customer orders. See each step of the process. Look for gaps and redundancies, made to compensate for gaps. Look at the two segments of your supply chain—upstream / inbound and downstream / outbound. Upstream is large and complex. It is where the supply of supply chains begins. There are supply chains within supply chains. Map your end-to-end supply chain. That is important so you can see everything. That includes parties you may not see or come in direct contact with; ones that your suppliers or logistics providers may use. Work with your suppliers on resilience. That includes having them work with their suppliers’ resilience. Now you see the size and complexity. n
Optimise your space and material handling with automated pallet storage and retrieval systems. Kanghar, our multi-depth high density storage solution improves space utilisation and efficiency for Low SKU, High Density distribution centers. ACME’s customised solutions help transform your supply chain with quick ROI.
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