Global Supply Chain June 2018 Issue

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June 2018 Issue 49

ENHANCING THE BUSINESS OF LOGISTICS

WOMEN IN

LOGISTICS Celebrating our ladies

Commercial vehicles Mercedes Benz trucks Iveco trucks & Ford trucks

ADNOC

Downstream it is

TECOM

The diversification engine


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

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

Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017


Women in logistics SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Managing Editor: Munawar Shariff munawar@signaturemediame.com Art Director: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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

As the entire world focusses on its women, we too, took an opportunity for our People’s issue to focus on the ladies who run our lives behind the scenes. We live in a part of the world where women are encouraged, empowered and nurtured to be their best selves. The best example to cite here is the leadership of the country and how it has set an example of the ideal set up. Only it’s not an ideal it’s a reality. According to the World Economic Forum’s Global Gender Gap Report 2016, the UAE’s global rank is as follows: eighth in wage equality for similar work, first in literacy, first in enrolment in secondary education and first in the sex ratio at birth (female/male). In May 2015, the Government adopted a decision to establish the UAE Gender Balance Council to ensure that Emirati women continue to play a leading role in the development of the UAE. So in this environment, not only are Emirati women being given top responsibilities, it’s the expatriate residents that are also gaining from this overall attitude. After all UAE’s vision is to become one of the world’s top 25 countries for gender equality by 2021. Our cover article features three different perspectives about how women are doing the best they can to empower each other in their daily job descriptions. Because working on yourself is the first step. Page 25. We have a special and very detailed section on Commercial Vehicles in this issue, where our correspondent on the ground, Malcolm Dias, has spoken to the top three truck manufacturers about their commitment to the region. Do let us know your thoughts and Eid Mubarak in advance!

Munawar Shariff Managing Editor munawar@signaturemediame.com

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June 2018 Issue 49

ENHANCING THE BUSINESS OF LOGISTICS

24 06 News 16 Country report Dubai, UAE Dubai’s reputation as a centre for logistics on the rise Recent events have focused attention on Dubai as a major destination for regional and global logistics operators

24 Cover Women in logistics For our people issue, what would be a better topic than tackling the ‘Women in Logistics’ theme?

37 Mercedes Benz trucks committed to the region The MENA region holds great promise for Mercedes Benz trucks 40 Ford trucks go the extra mile Fortified by a powerful 12.7L engine, the Ford 6x4 Tractor Head exemplifies Ford Trucks’ premium offerings

UPS’s new facility located in the DP World London Gateway Logistics Park is one that aims to boost business for all parties involved - UPS, DP World and the UK

43 Iveco makes impressive inroads in the Middle East Iveco gains traction and finds newer and bigger customers procuring new models with wider industrial and commercial applications across the region

52 Slight recovery amid mixed demand - air freight

46 ADNOC to grow 35 Commercial Vehicles downstream business industry in MENA on a roll The Abu Dhabi National Oil Company The commercial vehicles industry is prospering powered by growing demand as oil prices stabilise and big-ticket infrastructure projects are announced

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50 UPS launches flagship in DP World London Gateway Logistics Park

(ADNOC) recently announced initiatives to accelerate the delivery of its recently announced downstream strategy

As air freight volumes continue to trend sideways, growth achieved in April has been better than previou months. This IATA report identifies the best performing regions and most popular routes

56 Tecom - Dubai’s key diversification driver With non-oil revenues soaring in importance for the country’s economy, Tecom Group continues to maintain its top tier role in attracting investments


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dnata and Dubai Airports welcome EGYPTAIR’s first cargo flight in Dubai

From left to right: Faisal Al Mulla (Director - Cargo Business Management, Dubai Airports), Sherif Sabry Morsi (Dubai Cargo Manager, EgyptAir Cargo), Bernd Struck (Senior Vice President - UAE Cargo & DWC Airline Services, dnata), Prakash Menon (Business Development Director-Link Global Logistics FZE/GSSA, EgyptAir Cargo-UAE).

dnata expands partnership with EgyptAir in Dubai dnata will provide EgyptAir with premium cargo handling services from its best-inclass facility at Dubai World Central (DWC). EgyptAir will initially operate one cargo flight a week between Dubai and Cairo using an Airbus A300F aircraft. dnata has been providing ground handling services to EgyptAir at Dubai International Airport since 2005. The expansion of the partnership underlines the attraction of Dubai as an air cargo hub and the demand for dnata’s reliable and quality services and

dedicated team. Including EgyptAir, dnata’s cargo operations serve over 120 airlines at 43 airports handling over three million tonnes of cargo a year. Bernd Struck, Senior Vice President, UAE Cargo and DWC Airline Services for dnata, says,“Delivering service and operational excellence to our customers has been the core of our business for decades. DWC is designed to support logistics well into the future and we are excited to welcome EgyptAir to be part of this journey with us.”

dnata appoints Stephen Templeton as Global Head of Culinary

Harrods of London and The Great Eastern Hotel in the United Kingdom. As the world’s leading culinary caterer, dnata currently operates 63 catering facilities in 12 countries producing over 320,000 world-class meals every day. ”We pride ourselves on our culinary capability across the globe and our ability to deliver authentic cuisine for our customers and their customers. Stephen’s experience is second-to-none and his unwavering focus on perfection will undoubtedly flow through to the product our customers receive,”says David Loft, Chief Commercial Officer for dnata’s catering division.

Dnata is further investing in its culinary catering capability with the appointment of globally-experienced Chef Stephen Templeton to the newly created post of Global Head of Culinary for its international catering division. In his role, Templeton will be responsible for managing all aspects of food presentations, hospitality, kitchen design and product development. Templeton brings over 30 years of hospitality and culinary experience to dnata, most recently leading rhubarb Food Design, one of the UK’s leading hospitality groups, as its Director of Culinary. He previously held executive roles in high profile resorts and hotels, including the world-renowned Mount Nelson Hotel, the Sun City Resort and Casino, Spier Wine Estate and Resort in South Africa,

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DAE signs agreements to sell aircraft valued at US$900 million Dubai Aerospace Enterprise (DAE) Ltd.’s leasing division DAE Capital has recently signed three agreements to sell 16 aircraft with a total market value of approximately US$900 million. The aircraft covered by these agreements include Boeing 737 and Airbus A320, A330, and A350 family aircraft, have an average age of two years and are currently on lease to 11 airlines in 11 countries. Firoz Tarapore, CEO of DAE saya,“This divestment activity will help us optimize our portfolio composition and monetize some of our recent larger-scale investments. This transaction does not impact our total number of customers. Proceeds will be used to pay down debt and be reinvested to support our ambitious growth plans. Proactively managing our portfolio through active trading is a critical component of our long-term portfolio strategy and it is important for us to remain relevant in all segments of the secondary market for aircraft sales.” These agreements are expected to close in the second half of 2018.


Abu Dhabi Airport reduces waiting times and increases capacity with smart IoT technology Dubai Technology Partners LLC (DTP), announced recently that it has joined forces with Xovis, the leading provider of people flow monitoring solutions, to help improve operations at Abu Dhabi International Airport (AUH). Serving 24 million passengers per year, AUH is one of the fastest growing hubs in the world and it is anticipated that the annual passenger throughput will grow to 45 million passengers within the next 10 years. Integrated with DTP’s desk planner solution, the Xovis Passenger Tracking System (Xovis PTS) will allow Abu Dhabi Airports, the operators of Abu Dhabi International Airport, to improve passenger flow and reduce waiting-time in critical areas like check-in, security, immigration and baggage-claim, dynamically manage airport resources and ultimately increase capacity and passenger satisfaction. Commenting on the decision to partner with DTP and Xovis, Abdul Majeed Al Khoori, Acting Chief Executive Officer at Abu Dhabi Airports said,“This project has been key in meeting the growing challenge of balancing the increased volume of passengers and operational efficiency. With the implementation of this smart technology solution provided by experts such as DTP and Xovis, the team will be able to anticipate and respond to traveller flows for better real time and planning decisions. The intelligence that the system is delivering has already proven its value by providing actionable information and real time inputs during recent low visibility operations.” After a successful trial at a check-in area in Terminal 3, DTP, using Xovis’ Smart IoT Technology, has deployed 455 Xovis 3D sensors in 19 sites in T1, T1A and T3.“DTP was in charge of the turnkey project management, including sensors installation, provision of infrastructure and integration between the Passenger Flow Management solution and different airport and airline’s operational systems. We have designed and implemented a Desk Planner module, that enables the airport to forecast“desk demand”for security

company and global leader in supply chain planning and optimization (SCP&O). Since 2004, DTP has acquired extensive knowledge and skills to cater to the continuously evolving airport technology requirements. Due to the rapid growth of the aviation industry in the MENA region, this strategic and immigration alliance will allow DTP to extend areas. Moreover, we its solution offering and provide its analyze and layout aviation customers with Quintiq’s the collected data and world-class, innovative planning and KPIs on interactive optimization solutions that will help airport maps to allow to improve operations efficiency, the airport operations increase productivity and ultimately to react with necessary positively impact passenger measures against satisfaction and retention. any challenges in the “We collaborated with Quintiq in Abdul Razzak Mikati, MD, DTP passenger flow that 2017 to deliver planning solutions to might arise, in a timely manner. Finally, we one of the biggest hub airports in the world to have provided several business intelligence manage its fixed resources; including airport tools that empower airport managers to stands, gates, baggage belts and check-in monitor SLAs and performance of different counters. That successful implementation teams (Operations, Airport Services, Security has improved the airport’s overall efficiency, and Immigration) that are involved with the reliability and passenger satisfaction,”said passengers’ flow,”explained Abdul Razzak Abdul Razzak Mikati, Managing Director Mikati, managing director at DTP. at DTP.“Through that collaboration, we recognized our complementary capabilities and synergies, and collectively, we believe DTP and Quintiq announce that the formalization of our partnership partnership for MENA region will result in the delivery of much-needed, Dubai Technology Partners LLC (DTP) recenlt high-tech aviation optimization solutions to announced that it is has signed a partnership stakeholders across the region.” agreement with Quintiq, a Dassault Systèmes

UPS’s new look for 747 jet ahead of Expo 2020 Dubai One of UPS’s 747 jumbo jets dedicated for long-haul international use is sporting a modified paint scheme highlighting the company’s role as official logistics partner for Expo 2020 Dubai. UPS has only modified the livery of an aircraft four other times in the airline’s 30-year history. Each of those times signifies a major news event – this time, it’s to mark UPS’s unique role in delivering one of the world’s most complex logistics challenges at the upcoming

Expo 2020 Dubai. Millions of visitors from around the world are expected to attend the Expo in the UAE. During the event’s six month run,

UPS will manage all of the logistics of the event, using a team of nearly 1,000 employees and a dedicated 290,000 sq-foot warehouse.

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Geofencing improves fleet management in the GCC In-vehicle monitoring systems (IVMS) and Telematics are known for their ability to track and trace vehicles with Global Positioning System (GPS) location, but Fleet Management Systems & Technologies (FMS Tech) is taking security a step further by introducing the Geofencing software. Already being used in many parts of the world, FMS Tech has introduced this next-generation programme in the GCC to improve the nature of quality control and company policy adherence. Geofencing is

one of the most powerful features that FMS Tech offers as it gives the administrator control of establishing a virtual boundary around a specified location and sends alerts when a specific vehicle enters or exits the area. The fundamentals of the IVMS software and hardware is similar to the black box of an airplane, but it also offers much more including fleet information ranging from vehicle routes and driver performance to policy violations and perimeter breaches.

Tristar Group’s new facilities in Abu Dhabi and Oman Tristar Group has opened two new facilities aimed at enhancing its integrated logistics services to the downstream petroleum industry in the GCC. The new truck staging and workshop facility at Industrial City in Abu Dhabi 2 (ICAD 2) has 50,000 sq metres of area offering tailor-made logistics service options to customers for transport, warehousing, storage and distribution services. It is strategically located near Khalifa Port, and

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the main highway connecting UAE with Saudi Arabia. The Oman facility is located in the Rusayl Industrial Estate which is situated 20 kilometers from Muscat International Airport. The Rusayl Estate hosts a wide spectrum of companies providing consumer as well as industrial-oriented products, ranging from chemicals, electrical and building materials, fiber optic cables, food products, textiles, paints, and others.

DP World acquires Cosmos Agencia Maritima, Peru Closing of the acquisition of 100 per cent of shares of Cosmos Agencia Marítima and 50 per cent stake in Terminales Portuários Euroandinos in the Port of Paita Global trade enabler DP World, recently announced the successful closing of the acquisition of Cosmos Agencia Marítima S.A.C. (CAM) in Peru. On 18 March, DP World and Andino Investment Holding announced an agreement for DP World to acquire 100 per cent of the shares of CAM, a leading fully integrated logistics provider in Peru, for $315.7 million. This also includes 100 per cent of the shares in Triton Transports and Neptunia, and 50 per cent in Terminales Portuarios Euroandinos S.A., in the Port of Paita, which is the second largest container terminal in Peru. This transaction expands DP World’s footprint in Peru by adding another container terminal to the existing terminal at Callao as well as integrated logistics services including warehousing, distribution and cargo handling to provide tailor made solutions to a range of industrial sectors in the country. Further, it also complements the first smart logistics centre in Lurin which is connected through optical fibres to Callao and delivers information to the port and customs enabling customers to manage the movement of their cargo using their own electronic devices and smartphones.


From left to right Elliott Santon, DHL Express Marketing Director MENA, Nour Suliman, CEO DHL Express MENA, Mohamed Salah, Ramy Abass Director MS Commercial

DHL Express announces Egyptian football superstar Mohamed Salah as Brand Ambassador for MENA DHL Express has signed a strategic partnership for the Egyptian football superstar Mohamed Salah to become its brand ambassador for Middle East and North Africa (MENA) region for the next two years. The new collaboration will see the parties working together on a series of marketing activities and CSR initiatives that reinforce the synergies between the core values of DHL Express as a business and Mohamed Salah. It was announced on 23 May at a press conference held in England in the presence of senior DHL Express officials, distinguished guests and international media and comes just a few weeks before Mohamed Salah will lead the Egyptian football team at the FIFA World Cup in Russia.

Under the terms of the new agreement, DHL Express will work closely with Mohamed Salah’s company to support CSR and charitable projects while joining forces to support broader initiatives that can impact communities across the wider MENA region.

Nour Suliman, CEO DHL Express MENA and Mohamed Salah holding DHL’s courier shirt

From left to right Elliott Santon, DHL Express Marketing Director MENA, Nour Suliman, CEO DHL Express MENA , Mohamed Salah, Ramy Abass Director MS Commercial

Dubai Free Zones Council discusses initiatives to stimulate FDI The ninth meeting of the Dubai Free Zones (DFZ) Council, led by His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DFZC, discussed initiatives to promote foreign direct investment (FDI) flows to the emirate’s free zones. Key items on the agenda included easing the business set-up and reducing fees in the free zones, the new e-commerce regulations, the assessment of the effectiveness of measures related to anti-money laundering and combating terrorism financing, as well as Dubai Blink initiative. His Highness Sheikh Ahmed bin Saeed Al Maktoum said:“Over the past decades, free zones have been instrumental in increasing Dubai’s GDP and FDI inflows that are experiencing high annual growth despite the prevailing global economic climate. Today, we see the emirate’s free zones as more than just economic facilitators. Due to their legislative and investment incentives and through adopting strategic initiatives that shape the future of trade and economy to consolidate Dubai’s status as an ideal business destination, they have evolved into globally competitive models.” Furthermore, Dubai Airport Freezone Authority (DAFZA) presented the Dubai Blink initiative in cooperation with Dubai Future Foundation. Aimed at establishing the first digital platform for free zones that leverages artificial intelligence and blockchain technologies to streamline trade among the entities, the initiative will help explore new areas of investment, redefining the concept of investment development in free zones.

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Volvo Trucks 2018 Driver Challenge Awards Ceremony

FAMCO names the best truck driver in the UAE

Volvo Trucks 2018 Driver Challenge

Al-Futtaim Auto & Machinery Company (FAMCO) has named the best truck driver in the UAE in the 2018 Volvo Trucks Driver Challenge. The global competition, hosted by Volvo Trucks, is bold new initiative which sees

Schneider Electric announces industry’s first open innovation platform of buildings Schneider Electric recently announced the next generation of EcoStruxure Building, the industry’s first open innovation platform of buildings. EcoStruxure Building’s open, end-to-end IP architecture enables quick, connectivity of IoT devices for faster commissioning and changes; provides for

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truck drivers put their skills to the test in a challenge of fuel efficiency, safety and productivity. The UAE part of the Driver Challenge saw 35 drivers from across the Emirates participate over four days, showcasing their driving capabilities.

edge control and collaboration between building systems and third-party systems and devices. Its apps, analytics and services layer enables advance analysis and condition-based real-time decision-making. EcoStruxure Building improves building value offering building owners and real estate professionals up to a 15 per cent premium on their buildings and up to six per cent additional rental value. EcoStruxure Building is part of Schneider Electric’s EcoStruxure Architecture. EcoStruxure is our IoT-enabled, plug and

At the end of the Driver Challenge event one winner was crowned Volvo’s best truck driver in the UAE. Pakistani national, Mr Younis Khan, from a Ras Al Khaimah-based company, completed 50km. In second place was, Mr Khalil Hamza, from Sharjah and the third runner up was Mr Marcello Penamante from Fujairah. FAMCO will be flying Mr. Khan to the live final of the global competition - which will be held at the Volvo Trucks Experience Centre in Gothenburg, Sweden in September – where he will compete alongside the top drivers from 42 countries for the world title. Using Dynafleet, Volvo Trucks’ fleet management system, drivers can measure fuel efficiency accurately based on four key aspects – braking, speed adaptation, engine and gear utilisation and standstill.

play, open, interoperable, architecture and platform. EcoStruxure™ delivers enhanced value around safety, reliability, efficiency, sustainability, and connectivity. EcoStruxure™ leverages advancements in IoT, mobility, sensing, cloud, analytics and cybersecurity to deliver Innovation at every level, from Connected Products, Edge Control to Apps, Analytics & Services. EcoStruxure™ has been deployed in 480,000+ installations, with the support of 20,000+ system integrators, connecting over 1.5 million assets.


Nawah energy company enters next phase of preparations for Barakah Unit 1 Nuclear Operations

Etihad Cargo operates its first ‘Year of Zayed’ humanitarian flight Etihad Cargo recently launched its first humanitarian freighter missions. The initiatives are part of the group’s extensive Year of Zayed programme, which will take place throughout 2018. The specially branded Year of Zayed Boeing 777 freighter aircraft departed Abu Dhabi – first to Almaty in Kazakhstan and then to Hyderabad in India – carrying special provisions to be distributed to those in need during the Holy Month of Ramadan. The humanitarian missions are taking place throughout the year in collaboration with the Khalifa Foundation, the Red

Crescent, and His Highness Sheikh Sultan Bin Khalifa Al Nahyan Humanitarian & Scientific Foundation. These missions represent the Year of Zayed theme of respect, one of the four key themes of Etihad’s Year of Zayed activation plan. Faris Saif Al Mazrouei, General Manager of The Founder’s Office, says, “The late Sheikh Zayed initiated countless philanthropic and charitable endeavors throughout his lifetime. His spirit of altruism and generosity transcended borders, and laid the foundations for the UAE’s ongoing role as a leading provider of international aid.

SNC-Lavalin awarded district cooling scheme contract in Makkah, Saudi Arabia SNC-Lavalin is pleased to announce that it has been awarded an engineering, procurement and construction (EPC) contract by Central District Cooling Company, a subsidiary of Saudi Tabreed, for the expansion of its Jabal Omar Development Company (JODC) district cooling scheme in Makkah, Saudi Arabia. Under the contract, SNC-Lavalin is responsible for the design, procurement, construction and commissioning of an additional cooling capacity of 12,000 Refrigeration Tons (RT) with all associated

equipment, energy transfer stations and chilled water network - achieving a total cooling capacity of 47,000 RT. Building on its large portfolio of district cooling projects, an energy-efficient solution for keeping people cool in hot weather, this

JODC expansion contract is valued at SAR 160 million (approx. CAD 53 million). Engineering work on the project is underway, preparatory construction activities are ongoing with plant construction scheduled to begin July 2018.

Nawah Energy Company (Nawah), the operator of the Barakah Nuclear Energy Plant in the Al Dhafra Region of Abu Dhabi, has entered the next phase of preparation for nuclear operations. With construction of Unit 1 recently completed by the Emirates Nuclear Energy Corporation (ENEC) and Joint Venture partner, the Korea Electric Power Corporation (KEPCO), Nawah has completed a comprehensive operational readiness review to generate an updated schedule for the start-up of the first peaceful nuclear energy reactor in the Arab world. The results of Nawah’s review forecast that the loading of nuclear fuel assemblies required to commence nuclear operations at Barakah Unit 1 will occur between the end of 2019 and early 2020. The schedule review was carried out in strict accordance with the principles of a healthy nuclear safety culture, which requires conservative decision-making to support nuclear safety. “Nawah’s commitment to meet the highest standards of quality and safety is the main driver for all our work,” said Mark Reddemann, CEO of Nawah.“As a result, our review relied on global nuclear standards to analyse the remaining work required for nuclear operations, and we are confident that this new projection for Fuel Load gives Nawah a nuclear-centric and conservative schedule to deliver nuclear operations in alignment with the highest standards of safety and quality.” ENEC and KEPCO, as Joint Venture Partners and owners of Nawah and Barakah One Company, the entity managing the commercial and financial interests of the Barakah project, provide support to Nawah’s safety-led and quality-centric approach to preparing for operations in order to ensure that the highest nuclear standards are achieved within the earliest schedule possible.

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Emirates SkyCargo BIAL Intnl Cargo Airline of the Year

Emirates SkyCargo wins more accolades Emirates SkyCargo, the freight division of Emirates, continues to win international recognition for its commitment to develop air transportation solutions customised to the requirements of its customers across the globe. The air cargo carrier has recently garnered a number of prestigious awards at global industry forums. Air Cargo Industry Achievement Award Emirates SkyCargo was awarded the Air Cargo Industry Achievement Award at the World Air Cargo Awards 2018 organised by Air Cargo Week in Shanghai. Based on popular vote, the award reflects the opinions of stakeholders across the global cargo industry and is therefore an important achievement for Emirates SkyCargo. It is also a valuable recognition of the success of the innovative and industry-focused solutions that the air cargo carrier has recently introduced including Emirates Pharma- for the secure transportation of temperature sensitive pharmaceuticals; Emirates Freshfor transporting fresh produce such as fruits, vegetables, sea food and meat; Emirates

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Wheels for moving luxury and premium automobiles; and Emirates AOG for the rapid transportation of aircraft parts. Best Carrier- ‘Flown as Booked’ and ‘Customer Satisfaction’ Emirates SkyCargo was also recognised with two awards at the ‘Quality Awards Italy’, organised by ANAMA (Italy IATA Airfreight Forwarders Association), which recognises cargo carriers for their commitment to quality of service and customer focus. Emirates SkyCargo overcame strong competition to pick up two prizes for Best Carrier in the categories ‘Flown as booked’ and ‘Customer satisfaction’. The awards ceremony was held in Milan and was attended by over 400 aircargo industry leaders, airlines and guests. Best International Cargo Airline 2018 For the third time in a row, Emirates SkyCargo was also crowned ‘Best International Cargo Airline’ by BIAL (Bangalore International Airport Limited) at their annual BIAL Pinnacle Awards Ceremony. Emirates SkyCargo commenced

operations to Bengaluru in 2006 and has since then been an important facilitator for international trade from the region. Emirates SkyCargo offers cargo capacity to Indian businesses through its network in India which also covers Ahmedabad, Chennai, Delhi, Hyderabad, Kochi, Kolkata, Mumbai and Thiruvananthapuram. Emirates SkyCargo, the world’s largest international cargo airline measured by Freight Tonne Kilometres, posted a strong performance for the 2017/18 financial year reporting a total revenue of US$ 3.4 billion (AED 12.4 billion), an increase of 17 per cent from the previous year. The air cargo carrier offers customers cargo capacity on its modern, all wide-body fleet of over 265 aircraft including 14 freighters- 13 Boeing 777-Fs and one B747F.

Emirates SkyCargo appoints David Harman as new Cargo Manager Switzerland Emirates SkyCargo has appointed David Harman to the key position of Cargo Manager for Switzerland. Based in Zurich, Harman will be responsible for overseeing all operational and commercial aspects for the freight division of Emirates in the country. With over 30 years of international aviation and cargo experience, David Harman brings valuable knowledge and skills to his new role. He has previously worked as Vice President for dnata Ground and Cargo Handling in Zurich and held various positions through the years at CHEP Aerospace Solutions Ltd, Unitpool AG, Swissport International Ltd. and Swiss Worldcargo. He succeeds Nathalie Picaud, who has taken over responsibility for Pharma Sales in Europe for Emirates SkyCargo.


Jebel Ali Port wins Aflas Award for 24th consecutive year DP World’s flagship Jebel Ali Port has again won the “Best Seaport – Middle East” award at this year’s Asian Freight, Logistics and Supply Chain Awards in Shanghai, China. This is the 24th consecutive year Jebel Ali Port has won the coveted honour, a record achievement in the history of AFLAS Awards.

The award was received by DP World Officials at a ceremony attended by leading businesses in the maritime transportation, supply chain and logistics and trade sectors. As the flagship of global trade enabler DP World, Jebel Ali Port has cemented its position as a leader in maritime trade, ranking

as the tenth largest container port in the world. It has also been ranked as the best in productivity servicing a market of over two billion people. Jebel Ali is also ranked among the most technologically advanced container ports globally and is one of the few in the Middle East that can berth

new-age ULCV vessels with capacities of over 20,000 TEU. The AFLAS Awards are organised by Asia Cargo News and are held annually. They honour top industry performers in the air and shipping transportation sector recognising businesses that set new standards in leadership and service quality over the past year.

Turkish Cargo wins Cargo Airline of the Year Award Aiming to be one of the top five air cargo carriers in the world by 2023, Turkish Cargo continues its successful rise. The carrier has been awarded with the “Cargo Airline of the Year 2018” prize at Air Cargo China, World Cargo Awards 2018 ceremony; which is one of the most important fairs in the air cargo industry organized by Air Cargo Week Magazine. The World Air Cargo Awards Ceremony, which takes place in celebration of excellence in the air cargo market, was held in Shanghai.

As the fastest growing air cargo brand with its outstanding performance in the global air

cargo sector, Turkish Cargo continues its sustainable growth towards its goals for 2023,

developing customized and practical solutions for logistical needs.

JUNE 2018 13


From left: Paul Christopher Haines, General Manager, Etihad Airport Services - Catering, Syed Jassim Mohamed, Senior Manager, Abu Dhabi Food Control Authority, Sultan Al Shehhi, General Manager, Grace Conservation, Chris Youlten, Managing Director, Etihad Airport Services, Khaled AlMehairbi, Senior Vice President and General Manager Etihad Airport Services Ground – Abu Dhabi Hub and CSR Strategy, Mohamed Rashed Al Shehhi, Head Grace Conservation and Kristian James Ireson, Manager Health and Safety- Etihad Airport Services – Catering

Etihad Aviation Group to donate 150,000 meals to charity every year Etihad Aviation Group has launched a community programme that will deliver 400 meals per day to charity. The initiative will be held throughout 2018 and beyond, with approximately 150,000 meals to be donated every year. As part of its sustainability and corporate social responsibility efforts, the Abu Dhabibased airline has teamed up with the Grace

Conservation Programme of Emirates Red Crescent and Abu Dhabi Food Control Authority to donate inflight meals to labourer residences in the Mussaffah area of Abu Dhabi. In line with the 2018 Year of Zayed, the initiative was announced in early Ramadan to promote a spirit of sharing during the Holy Month.

The project is aligned with the sustainability pillar of the Year of Zayed. The meals are initially prepared for the airline’s three on board cabins – First Class, Business Class and Economy Class – and are then transported in a purpose-designed truck to keep them fresh. Emirates Red Crescent will provide an equipped kitchen and trucks to collect and store meals for distribution. Etihad Aviation Group operates to a comprehensive CSR agenda during Ramadan, with many other charity and community activities planned for the local community in the UAE as well as India, Sri Lanka, Vietnam, and other parts of the world.

Corporate sourcing of renewables growing Companies in 75 countries actively sourced 465 terawatt hours (TWh) of renewable energy in 2017, an amount close to the overall electricity demand of France, according to a new report from the International Renewable Energy Agency (IRENA). With the continued decline in the costs of renewables, the report suggests, corporate demand will continue

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to increase as companies seek to reduce electricity bills, hedge against future price spikes and address sustainability concerns. Corporate Sourcing of Renewables: Market and Industry Trends, the first global assessment of trends and policies in corporate sourcing of renewables, shows that renewable energy sourcing by private sector companies,

made possible with the right policy framework in place, can be a key factor in the world’s pursuit of a sustainable energy transformation in line with the objectives set out in the Paris Agreement. The report finds that the corporate sourcing trend is widespread and dynamic, with companies participating in the practice coming from various

sectors. By volume, the majority of renewable electricity was consumed in the materials sector while the highest shares of renewable electricity consumption are found in the financial (24 per cent) and information technology (12 per cent ) sectors. Countries in Europe and North America continue to account for the bulk of corporate sourcing.


Innovating Innovating Innovating Business Business Business &&IT &ITIT


COUNTRY REPORT - DUBAI, UAE

Dubai’s reputation as a centre for logistics on the

rise Recent events have focused attention on Dubai as a major destination for regional and global logistics operators. The city is already on top of its supply chain and logistics infrastructure. This Oxford Business Group report has all the details

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COUNTRY REPORT - DUBAI, UAE

I

n April 2017 Berlin-based industrial manufacturing giant Siemens announced that it planned to set up its global logistics headquarters in the emirate. The firm, which is the single-largest manufacturer in Europe and among the biggest in the world, has ambitious plans for the project, which include new airport, road and port infrastructure development. Additionally, Amazon’s acquisition in early 2017 of UAE online retailer Souq.com indicates a significant move into the region for the US-based retail giant, which is one of the world’s largest logistics companies. In April 2017 the firm began the process of recruiting staff for a Dubai office and a major logistics centre in the emirate.

Recent developments The move by Siemens signals a considerable commitment to Dubai on the part of the firm, which has had operations in the emirate since the 1970s, but not to the degree the new plan indicates. Siemens employed around 2600 people directly in April 2017, a figure expected to jump considerably when work is completed on the firm’s new global logistics headquarters. Meanwhile, Amazon’s pending entry represents the firm’s first foray into the UAE. The move is widely thought to indicate the company’s confidence in both the country’s market and the Middle East overall. In September 2017 Amazon was in the early stages of acquiring office space in Dubai and meeting with the relevant authorities to establish logistics operations.

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COUNTRY REPORT - DUBAI, UAE

sector as of early 2017 was warehousing, Another recent entry to Dubai is Kale storage and logistics. Local firm Centre Point Logistics Solutions, a global logistics IT Logistics (CPL) began operations at its newly provider headquartered in India. In early 2017 the firm set up a new customer service built Dh60m ($16.3m) warehouse located in the Dubai Logistics Corridor in the Dubai and business development centre at Dubai South district in April 2016. The property South in order to participate in the logistics joins a growing array of major players in the industry that is populating the Logistics area, which is quickly becoming a hotspot for District, and Dubai South more generally. investment. CPL has current “We see huge potential total investments of more in this region, with wider Amazon’s than Dh100m ($27.2m) in acceptance of our IT and distribution solutions,”Amar More, acquisition in early warehouse space in the UAE and Oman, CEO of Kale Logistics Solutions Private, told local 2017 of UAE online with total holdings in excess of 278,709 sq metres. The new media.“We will be further retailer Souq. warehouse adds 22,000 sq expanding our portfolio in metres of space and is close air and maritime to bridge com indicates a to both Jebel Ali Port and the technology gap that significant move Al Maktoum International the logistics industry is currently facing.” into the region for Airport (DWC). CPL plans to lease out the property the US-based retail for storage and distribution Storage options operations. Given demand Given increase in interest giant, which is in the region, the new facility in Dubai as a logistics hub one of the world’s will likely be quickly put into for the Middle East, it is use.“With rising interest perhaps not surprising largest logistics among major multinationals that a key growth area in companies and firms already located the emirate’s real estate

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in the Middle East, Dubai’s logistics sector is booming right now,”Lynnette Abad, a partner at the Dubai office of global property management firm Cavendish Maxwell, told OBG.“The government has been very clear about its support for this development and the expansion of the segment in general.” Jebel Ali Port has a warehousing capacity of over 200,000 sq metres and a capacity of 19.3m twenty-foot equivalent units (TEUs) as of 2017.

Building up Though the Amazon and Siemens deals are potentially at a larger scale than anything prior, these recent changes are very much in line with Dubai’s history as a centre for the movement of cargo and people alike. Dubai has long been pitched by the government as a key site of cargo transport, due to its central position in a busy region and its well-developed port, airport, rail and road networks. Some of the earliest infrastructure investments made by the UAE’s government in the 1960s focused on improving the nation’s competitiveness in this sector – the initial dredging of Dubai Creek in 1961 enabled larger cargo ships to


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COUNTRY REPORT - DUBAI, UAE

access the emirate; Port Rashid, Dubai’s first container port, was completed in 1972; and Jebel Ali Port, which has become key to the region, opened for business in 1979. Geoff Walsh, country manager of DHL, told OBG, “Jebel Ali is Dubai’s main magnet for global logistics companies to set up shop in the Emirate. Its infrastructure allows companies to take advantage of the strategic location between Asia and Africa.” According to DP World data, the The Jebel Ali Free Zone, the over 100 sq km industrial

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park, generated trade worth $87.6bn in 2016, contributing to 20.6 per cent of Dubai’s GDP and 5 per cent to the UAE’s. According to a 2016 report by US-based consultancy Frost & Sullivan, Dubai leads the country in logistics, accounting for some 45 per cent of the total share of industry. The sector was forecast to have expanded by around 4 per cent in 2017, and to post a compound annual growth rate of 5.7 per cent between 2015 and 2020. This rapid rate of expansion will be driven in large part by activities related

Given increase in interest in Dubai as a logistics hub for the Middle East, it is perhaps not surprising that a key growth area in the emirate’s real estate sector as of early 2017 was warehousing, storage and logistics


COUNTRY REPORT - DUBAI, UAE

Innovative investment in Dubai to change the face of transport

I

n late February 2017 Dubai’s Roads and Transport Authority (RTA) announced a five-year development strategy for the emirate, covering the 2017 to 2021 period. The plan, which includes more than 30 individual projects and initiatives, is largely aimed at turning the emirate into a global leader in the development and implementation of autonomous transport technology. One of its cornerstones is an international competition that will seek to attract the world’s top drone automobile, aircraft and ship manufacturers to compete for large-scale government contracts. The five-year plan also involves building up Dubai’s legislative environment regarding drone usage, an objective that is widely considered to be as central to the widespread use of drones as competition over big-ticket deals.“Most of the autonomous technologies across the world are in a trial phase now, and nobody is sure when these can be put into practice,”Ahmad Hashem Behroozian, CEO of the RTA’s Licensing Agency, told local media at the time of the authority’s announcement.“So, what we are trying to do is to make the city ready for all future technologies by developing safety standards and introducing relevant legislation, as well as building the required infrastructure.”

In detail

to Expo 2020, a world exposition in Dubai that will run from October 2020 through April 2021. Additional logistics growth drivers include expanding trade among countries in Africa, Asia and the Middle East, and Dubai’s own and federal-level development planning efforts.

State-led developments Dubai’s government has long taken a proactive role in planning the

The RTA’s five-year strategy follows on the ongoing effort to turn Dubai into a smart city. Previous initiatives in support of this goal have included the development of digitally enhanced national IDs, state-operated databases to enhance service provision, and the collection and collation of new data on the emirate, its citizens and visitors, and their daily activities and interactions. Additionally, a key objective of the plan is the conversion of 25 per cent of Dubai’s road traffic into autonomous traffic by 2030. This goal will be met largely through a focus on converting the emirate’s taxi and bus fleets to self-driving vehicles. Other components of the plan related to road transport include initiatives aimed at expanding pedestrian crossings and adding information kiosks throughout the city. These efforts build on a set of recently completed projects aimed at modernising the city’s road system, including installation Port of Salalah,the Oman

of interactive screens and Wi-Fi in taxis, smart car rentals with pay-by-the-minute capabilities, mobile-based trip planners, taxihailing apps and smart bus shelters, among many others.

Sky high In September 2017 Dubai took a noteworthy step towards its goal of becoming one of the first cities to significantly adopt driverless vehicle technology when it ran its first trial run of the Autonomous Air Taxi. The RTA, in a partnership with the German helicopter firm Volocopter, flew the crewless vehicle 200m high during the initial experiment. When operational, the taxis will be able to seat one to two people and fly for a maximum of 30 minutes with a top speed of 100 km per hour. It is estimated that the technology will reduce costs by 44 per cent, saving DH22bn ($5.9bn), increase productivity by 13 per cent and reduce road accidents by 12 per cent.

Coming into focus In April 2017 the RTA also announced that it had partnered with US technology and car transport firm Uber to develop flying cars by 2020. Jeff Holden, Uber’s chief product officer, announced that according to the company’s estimates a flying car could cost around $1.32 per passenger mile to operate, which is equal to Uber’s discount UberX service. Another major project currently under way is the development of the world’s first functional hyperloop network. DP World, Dubai’s government-controlled global ports operator, recently invested $50m in Hyperloop One, a US-based firm developing technology to send passenger and cargo pods down low-pressure tubes at high speeds. Though the project is still in the initial stages, a hyperloop line connecting Dubai and Abu Dhabi could theoretically reduce the travel time between the two cities from the current one hour by car to about 12 minutes. Hyperloop One is working with the authority and other government entities to explore how the network might function in the emirate, particularly in relation to existing transport networks. -www.oxfordbusinessgroup.com

JUNE 2018 21


COUNTRY REPORT - DUBAI, UAE

emirate’s development in terms of logistics facilities, zones and investments. Under the city’s current strategic plan, Dubai Plan 2021, logistics-related targets are prominent. The strategy, which was launched in 2015 and is largely pegged to Expo 2020, has an economic component that aims for the city to become one of the top five logistics centres in the world. In terms of the details of the strategy, key performance indicators under the economy heading include: the emirate’s trade openness ratio; Jebel Ali’s international ranking and volume as measured by

22 JUNE 2018

Dubai’s government has long taken a proactive role in planning the emirate’s development in terms of logistics facilities, zones and investments. Under the city’s current strategic plan, Dubai Plan 2021, logisticsrelated targets are prominent

throughput; the emirate’s overall ranking on the World Bank’s ease of doing business index; and Dubai International Airport’s regional and global ranking and volume as measured by passenger traffic; among others. All of these indicators are closely linked to Dubai’s overall logistics capacity and capability, and the government is doing its part to improve the numbers. “The regulatory environment is very conducive to the functioning of the aviation sector,” Adel Mardini, president and CEO of trip support company Jetex, told OBG. “The Civil Aviation Authority wants the industry


COUNTRY REPORT - DUBAI, UAE

to grow and is committed to enacting rules to enable such growth.”

Noteworthy plans In December 2016 government documents for contract bids showed that the emirate was planning to spend $35.7bn on a new airport and logistics hub in Dubai South, the 145-sq-km free zone development that has been under way in the emirate since 2006. The major expansion of DWC will turn it into the world’s largest airport, with an estimated eventual annual capacity of over 220m passengers and 16m tonnes of

cargo. The development plan involves the construction not only of the airport but also six new clusters in the vicinity: the Logistics District, the Commercial District, Aviation District, Golf District, Exhibition District and Residential District. The emirate plans to raise financing via a consortium of government entities and private sector players for the project. Major public participants that have either already played a role in financing Dubai South or are set to participate in the coming years include Dubai’s Department of Finance and stateowned entities such as the Dubai Aviation

City Corporation and the Investment Corporation of Dubai, among others. While not many details about the Logistics District have been made publicly available, the project is being billed by the government as a supply-chain capital and the world’s first integrated logistics platform, and will include a large multi-modal transport hub, as well as space for logistics handling, warehousing, light manufacturing and assembly. The Logistics District will also offer expedited Customs clearance to registered firms and a wide range of Dubai South-associated incentives.

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COVER

Women in

logistics For our people issue, what would be a better topic than tackling the ‘Women in Logistics’ theme? What we learnt from this exercise is that more needs to be done to highlight the many ladies working hard in logistics. So this is the first of many articles to highlight the hard work and fervour of our ladies. Munawar Shariff has more

G

lobal Supply Chain has gained three very different perspectives about the role women are playing in different aspects of the industry. We start with Baljeet Nagi, Director SCM Strategy ECEMEA at Oracle, UAE, who is at the helm of an initiative at her firm to create better and more

Baljeet Nagi, Director SCM Strategy ECEMEA at Oracle, UAE Soon after graduating in Biology with a BSc Hons from a university in the UK, Baljeet Nagi realised her academic specialisation wasn’t the career for her. “I had no choice but to find work to support myself,” she says. The company she was working in, however, encouraged her to study Accountancy which she did and became, in due time, Financial Controller at a blue chip firm in the heart of London. “After that, very soon I was head hunted by a software company to lead with ERP applications. I excelled in this role leading to various senior positions and did a lot of

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opportunities for women to be encouraged to enter and stay in this industry. We spoke to the management at MARA Xpress about their women-only team of delivery couriers and Saima Ghafar, Senior Supervisor, Neovia Logistics Services, on her hard work and how she has finally created a satisfying role for herself and is raring to move forward in her career.


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COVER

traveling across EMEA. Today after more than 21 years in IT, I am now a Strategy Director for SCM for ECEMEA at Oracle in Dubai,” Nagi continues.“All I would like to emphasize is if you have aspirations and goals, go for them. Your gender or background does not matter!” Nagi says a mentor at an early stage of her career would have probably helped her realise her potential.“I would have spent some time analyzing my skill set and market opportunities. Having said that, I wouldn’t change the experience since that was a great learning opportunity.” “The world we live in today is rapidly changing around us. Today is all about the Digital Autonomous Economy. My advice to someone wanting to start off in this field would be to be flexible and prepared to learn new skills, to embrace the digital world of new technologies and challenges.” Nagi feels the importance of logistics and supply chain management has grown significantly and she suggests: 1. If you are thinking about a career change, the field of logistics has much to offer. 2. Jobs are available in logistics for people of all education levels. As the global economy has expanded, logistics has become increasingly important. 3. Careers in logistics are paying more than ever. Logistics, she opines, is a stepping stone into the field of international business. Many people who begin a career in logistics find that they quickly gain enough experience with international business to develop new skills or confidently take on new opportunities. Opportunities for women are expanding in logistics. Logistics careers have traditionally been held by men, but women are becoming increasingly involved at all levels. And today, many women hold top positions in logistics companies and logistics departments, such as Nagi herself. So while supply chain management (SCM) is still perceived to be a ‘masculine’ role. That is the one aspect of the role - a physical job involving warehouses, trucks etc., the other side to the roles is when SCM actually plays an important strategic part that reaches across functions and regions and requires skill sets that align with human strengths (both male and female fall under the category!)

“Women should be encouraged to pick up skills in stem subjects – science, technology, engineering and maths,”she adds. New college graduates are in high demand for entry level positions in the industry. Recruiting from engineering and tech programmes is a good place to start. Offering paid internships or scholarships to students majoring in supply chain management might also garner interest for students to pursue careers in the industry. Another good idea presented by Nagi is sending guest speakers to campuses who can explain the benefits of being part of the high-tech supply chain and logistics family, and how the industry is moving fast toward a brilliant future, which is hence a great way to foster excitement for a supply chain career path. There is currently a need for a programme like this to inform young people of the possibilities that the supply chain and logistics industry holds.

Leadership A leader needs a high level of cultural and emotional intelligence but above all an awareness of one’s own values and vulnerabilities. Women are perceived as great social risk takers better at reacting to situations with greater emotional intensities than men are. Nagi says,“When confronted with uncertainty, women report fear whereas men report anger!!! Women, therefore, are better managers and leaders!” And Nagi drives the point home by adding,“As per DDI Global Leadership Forecast 2014/2015, an organization performs better financially when more women are in leadership roles!”

Oracle Women’s Leadership programme “I am the leader for Oracle Women’s Leadership programme (OWL) at Oracle in Dubai. OWL is a global initiative, and its mission is to develop, engage, and empower current and future generations of Oracle women leaders to foster an inclusive and innovative workforce. OWL is an important part of Oracle’s overall inclusion strategy, which is vital to maintaining a productive, dynamic global workforce, which strengthens Oracles’ leadership capabilities,” she adds.

Oracle is hiring hundreds of millennial employees annually through their new college grad programmes; these millennials are actively involved in the running of communities at the company’s various hubs; OWL provides an opportunity for them to connect with cross-generations to see career opportunities front and center. OWL Communities have a development focus with their many development programs, various mentoring opportunities and networking events.

Oracle initiatives around the region Worldwide Oracle provides support to STEM initiatives through their daily internal jobs as well as their partners In the UAE - Delivering the Oracle Cloud Internship Programme seminar at “Employer on Campus” Day at HCT Women’s Campus Abu Dhabi In Saudi Arabia - Launched “female only” Oracle HCM and Financials Cloud workforce training with Prince Sultan University for 40 Saudi females as part of King Salman Education for Employment Initiative which will place trainees in jobs upon successful completion of the programme and 10 certified Saudi women on the Oracle Financial Cloud Implementation In Kenya - Holds regular mentoring sessions for girls at the Nairobotics Korogocho Hope Centre. Organised programme where career talk is delivered via Oracle’s female Tech expert @ ‘Girls with Grits Hackathon’ aiming to encourage young ladies to develop and work on hardware and software projects.

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COVER

Mara Express

M

ara Express is a two-year-old, UAEbased courier delivery firm with a 12 member women’s delivery team besides their regular couriers. The team of women couriers are dedicated to delivery of high end luxury fashion as well as retail, cosmetics, FMCG and electronics. Jeremy Skyrme, CEO, Mara Express says, “We currently have 12 women delivery experts spread across the UAE. There were several considerations to our hiring female drivers: the cultural aspect of this region, having female drivers can promote a better customer experience as it creates comfort and confidence for a woman receiving a package from a female driver. Also it adds a different flavor to the entire customer experience and our business. It also breaks the stereotype of only men being ‘delivery agents’.” Mara Xpress believes in diversity within the company as well as giving an equal opportunity to all employees. All drivers undergo a week of immersion to inculcate company values and culture. Coaching sessions are also provided and is one of the main tools that helps them become better at their jobs. “Women are resilient and patient by nature,” continues Skyrme,“important attributes to the type of business as different

28 JUNE 2018

types of customers are encountered with each shipment delivery.“Also, women are able to build a rapport with customers faster than men. The attention to detail is one of the advantages of women drivers over male couriers.” The company suitably rewards their employees to keep the motivation flowing and the morale upbeat. Incentives are awarded for achieving the key performance

indicators (KPI) which is roughly an average of 40 deliveries per day, special campaigns are run during peak seasons when there are a high volume of deliveries, they have initiatives like Employee of the month, the X-tra Miler award as well as monetary and gift items. “A company must be able to adopt diversification and gender equality,” concludes Skyrme.


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30 JUNE 2018


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Saima Ghafar, Senior Supervisor, Neovia Logistics Services Saima Ghafar is an industry veteran, she began her career in 2000 as a startup member at Caterpillar Logistics Services (now Neovia Logistics Services). She came on board fully after completing her BTech Computer Information systems the following year. “My first job was in HR despite my efforts to get into the IT field. During those years, it was rare for women to get a real opportunity in IT in the region, almost like finding a needle in the haystack,”says Ghafar. So, after improving processes in HR for three years, she was able to get her break. Because the fact that she was able to improve processes in HR, enabled her to finish work a few hours earlier and she used her free time to create reports or do other admin roles for the warehouse.“This is how I entered the field of logistics. I had the opportunity to lead IT as well as Transportation (arranging trucks for outbound shipments etc),”she continues. Being Lean Six Sigma certified added to her superlative work and the maintenance of the requisite logistics standards “Exposure to warehouse processes, inventory management, IT / SAP processes, project management and being a certified Green Belt gave me the edge to be given the opportunity to be a Senior Supervisor; with responsibility to handle warehouse operations

JUNE 2018 31


including Transport and IT/IS departments,”she continues.“Another essential part of my job is to implement and sustain the Neovia Operating System in all Neovia facilities as this is an integral part of Neovia’ s culture,”says Ghafar. Ghafar feels that the number of women has, very gradually, increased in the industry during the last 20 years.“In my 17 years of service, the number of women that I have met, in this field are just a handful,” she says. The path is not so smooth for women in any part of the world. Despite the fact that most of multinational companies are strongly committed to gender diversity, it does take time for men to see and let women prove their capabilities; once that trust is established, however, there is no stopping them. Women remain underrepresented in all fields. Compared to men, fewer women are hired at entry level, despite women being about 60 per cent of the recent college graduates*. The trend for women in this industry is upward but very slow. The rate of women leaving the workplace is less compared to men as they want to focus on family as well*. Dubai government has taken great initiatives for women in this field. An example is: at the opening of DP World’s Jebel Ali Container Terminal 3 in 2014, the demonstration of a remotely controlled quay crane during His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai’s, visit to the port was given by a woman crane operator. Out of 30 per cent of the new quay crane Emirati operators recruited, a third are women. In Europe and Americas, the number of women in this field is significant compared to Asian or Middle Eastern countries. Organizations must have a quota for women to be part of logistics and transport. This industry is growing rapidly and is one of the key contributors to a country’s economy. With women being a big part of the workforce, the opportunities are countless which any country or organization cannot ignore. As per a survey conducted in 2015, women were only 10 per cent of the workforce in logistics and warehousing.“During my career, and being part of the recruiting activities, women were and still are always selected for HR and admin jobs. Women are always perceived to be carved only for jobs with soft skills. The slow but steady change is inevitable. The future will see a good number of women in transport & logistics but this is not possible without the support of men at senior levels. *2017 LeanIn.Org and McKinsey – Women in workplace study

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COVER

Leadership “I believe that women are hardworking and can excel in any field. Women generally have a very holistic approach towards any task they perform. People, safety, processes, company culture, all work in sync mentally for them. The natural maternal instincts of women makes them compassionate leaders. They do not just talk about bottom line, KPI’s or productivity but the Emotional Quotient plays heavily under their leadership. Empathy and understanding are a woman leader’s strength which make her more likeable and successful as a leader,”she says.

Stereotyping Ghafar feels that the stereotyping - that women are not capable or suitable for the industry or for that matter any field, has to change. Women need as much support and trust to develop and grow as their male colleagues.“I am a great advocate of crossfunctional training. This is a great tool that can be used by companies to bring out hidden talents. The idea that women cannot work in fields with physical hard work is already a proven myth but needs to be propagated. A change in perspective, skills and experiences is very important in organizational culture; these are the main factors that cause innovation and support creativity. Organizational culture plays a big role, too. Bosses must be held accountable for the growth and development of their employees. This is imperative to fulfill organizational strategy.“I always say that if people have not grown / developed over a period of years or they have been doing the same work for years, their complete potential has not been realized OR that they have not been exposed to bigger challenges / additional responsibilities; which means that bosses have not acted or mentored their people as required. A boss is a first direct mentor to their people. “My advice to anyone starting in this field is: keep an edge over the others by continuously learning and developing yourself. Your development is your priority. Make time to read and learn. Emotional Intelligence is one area that I would recommend which is not taught in any school or university. People are not machines, they are emotional and intellectual beings and they need to be respected and addressed in that manner,”Ghafar concludes.

JUNE 2018 33



COMMERCIAL VEHICLES

JUNE 2018 35


COMMERCIAL VEHICLES

Commercial Vehicles industry in MENA on a roll There are ever increasing numbers of new commercial and heavy vehicles entering our road networks. The commercial vehicles industry is prospering powered by growing demand as oil prices stabilise and big-ticket infrastructure projects are announced. Malcolm Dias takes a test drive

36 JUNE 2018

The already dense and stretched traffic on GCC roads is bracing for more tailbacks by commercial and heavy vehicles, an indication of how the heavy goods transportation industry is driving market growth. Globally, regionally and locally, the freight transport and logistics industry is an important driver of economic growth and an important barometer of a nation’s economy. As the most flexible, versatile and, in many instances, least expensive mode of transport, road freight and haulage is the most commonly used method to carry goods. A new report published by Future Market Insights, estimates point to a revenue growth for Commercial Vehicles (trucks) market in the MENA (Middle East North Africa region) from nearly US$ 5.25bn in 2017 to nearly US$ 8.50bn by 2027 end, resulting in a CAGR (Compound Annual Growth Rate) of five per cent. In terms of volume, the MENA commercial vehicles (trucks) market was pegged at 152,191 units 2017 and is poised to reach a figure of 212,232 units in 2027, and demonstrates a CAGR of 3.4 per cent in the forecast period. Manufacturers and buyers are also paying heed to technological trends that have and will impact commercial vehicles. These include telematics and Internet of Things (IoT) that use embedded sensors to monitor equipment usage in the field through real-time performance information, as well as manufacturing and assembly processes at the OEM (Original Equipment Manufacturer) plants and ‘data analytics’ that include predictive analytics and visualisation to enable real-time review of vehicle performance, condition, uptime and maintenance. Indeed, the Middle East commercial vehicles industry is revving up and reading for the long haul ahead!


COMMERCIAL VEHICLES - MERCEDES-BENZ

committed Mercedes-Benz Trucks -

to the region

M The MENA region holds great promise for Mercedes Benz trucks. In this exclusive chat Marc Legeay, General Manager, Mercedes Benz Trucks, MENA, talks about the technology, expertise and commitment his trucks are providing to their customers

ercedes-Benz Trucks Dubai-based regional office is responsible for 18 markets in the Middle East and North Africa. The region is very heterogeneous with a great variety of regulations, such as emissions norms from non-regulated markets to Euro IV markets, from left-hand-drive to right-handdrive and very different diesel quality levels available across the region.“We see an intense competition in the commercial vehicles sector with manufacturers coming from Europe and Asia mainly,”says Marc Legeay, General Manager, Mercedes Benz Trucks, MENA. In recent years, customer requirements have changed – while in the past, the purchase price of the vehicle was the main buying criteria, now more and more importance is given to the Total Cost of Ownership (TCO). Customers are looking at the price per km or per hour for their operations. Service contracts, parts prices and availability, the residual value of the vehicle, financing solutions, driver training, fuel consumption and telematics

JUNE 2018 37


COMMERCIAL VEHICLES - MERCEDES-BENZ

medium duty range with the are now an integral part of the Accelo, Atego and the famous purchase decision. Unimog to the heavy-duty “The largest economies in the Mega projects trucks Zetros, Actros and now region are also the largest truck are very also Arocs.“We have the right markets,”continues Legeay. vehicle offer,”says Legeay. Mega projects are very important important “Distribution, long haulage, for the truck business as they lead for the truck construction, oil & gas, waste to large demands and inquiries of management, extra heavy-duty new vehicles. Being the market business as or extreme off-road are a few leader in many of the markets they lead to of the niches we cover. We can in the region, every country in this region is of importance to large demands provide our customers with the right solution and the right the brand.“We aim to maintain and inquiries of vehicle for basically every truck our leadership position and application,”adds Legeay. serve our customers best,”adds new vehicles However, the most Legeay.“Partnerships are vital to prominent Mercedes-Benz us - currently Mercedes-Benz truck in the region is undoubtedly the Actros. Trucks covers a wide network of 59 sales and With an exceptional reliability and renowned service outlets across the MENA region and residual value, it can be used for all heavy-duty we are constantly working together with our operations – from tractor head to tipper, rigid authorised general distributors to improve our chassis and mixer applications. Legeay says, network coverage and services offered.” “In March this year we launched the all-new Mercedes-Benz Trucks has a full range of Actros and Arocs offering a further enhanced trucks for all types of businesses – from the

38 JUNE 2018

level of reliability, efficiency and robustness to the Mercedes-Benz truck offering. Having mentioned TCO before, TCO-oriented customers will benefit with the New Actros and Arocs from a further significantly reduced fuel consumption and tailor-made service and extended warranty packages.” Having established a strong presence in the region back since the 1950s, the company believes in a positive future development of the MENA markets.“We constantly strengthen our presence to be closer to our customers and distributors. Since 2001, we have established a Regional Center in Dubai, being one of the first companies of the Jebel Ali Free Zone. And since 2015, our regional office is dedicated to commercial vehicles only. Thanks to this presence and the partnership with our distributors, we celebrated the sales of the 100,000th Actros in the MENA region in 2016, a noticeable milestone for us,”says Legeay proudly. “In order to have the perfect product adapted to the specific conditions of the


region, we have also established a special test centre in Abu Dhabi in 2014,”says Legeay. Since then, the New Actros and Arocs have mastered more than six million test kilometres in the UAE before the recent market launch in the region earlier this year. Operating conditions are tougher in the region than in other parts of the world. Hence, robustness and reliability have always been key buying criteria for truck operators. Efficiency and safety also play key roles in fleet management.“Our new products and services have been developed to ensure that customers will find in our offer the best for their operations. And the Mercedes-Benz Trucks Test Centre based in Abu Dhabi underlines our commitment to testing the trucks for this region, in the region,”says Legeay. Increasing fuel prices have been considered as well.“Many markets in the MENA region have witnessed higher fuel costs, so fuel efficiency is now vital for a profitable truck operation and a key element of the TCO calculation. Fleet owners recognize fuel

efficiency immediately, as they can generate savings at each and every filling of the truck,” continues Legeay. “So, how do we realize these savings? We have developed a brand new drivetrain for the New Actros and Arocs with new, extremely efficient engines, the new Mercedes Powershift 3 gearbox comes as standard in all New Actros and Arocs models and improved aerodynamics further contribute to the high fuel efficiency. As we know that the driver also plays an important role when it comes to fuel efficient driving, we offer driver trainings focusing on this element, too.”

Sustainability and the environment On a global and also regional level, Mercedes Trucks are produced according to highest environmental standards and the engines stand out with highest fuel efficiency. “Looking at the region, we are now introducing trucks complying with the Euro V emission norm in the UAE and Morocco, going even beyond the local regulation imposing Euro IV,”continues Legeay.

Mercedes-Benz Trucks will continue to invest in research and development, driving innovations for our customers’ benefits. The areas of electric mobility, connectivity and automated driving are steadily becoming more important also in the truck business. Here, Mercedes-Benz Trucks will of course also benefit from the developments and expertise within the Daimler Group, for example in battery technology, assistance and safety systems and autonomous driving. In 2016, Mercedes-Benz Trucks gave an outlook with the Urban eTruck on how future emission-free mobility for trucks can look like. “With the eActros, we are now taking the next step. Ten vehicles in two variants, with a gross vehicle weight of 18 or 25 tonnes, are being handed over now to customers in Europe, who are testing their everyday feasibility and economic efficiency under real-life conditions. The long-term aim is: locally emission-free and quiet driving in urban environments with series-production trucks.”

MAY 2018 39


Ford trucks go the extra mile Fortified by a powerful 12.7L engine, the Ford 6x4 Tractor Head exemplifies Ford Trucks’ premium offerings

F

ord Trucks, one of the largest international heavy truck manufacturers in the world, produces a range of vehicles including tractors, construction trucks and distribution trucks with capacity payloads of 12 tons and above. As part of its 2018 offering, the brand recently unveiled its trending 6x4 Tractor Head series 3543T, the latest from the Ford Trucks’ rollout for the Middle East region in Dubai. Given its expertise and product development capabilities and a comprehensive bouquet of pre- and post-purchase initiatives, its recently unfurled model is steadily cruising on the fast track to growth, top company officials believe. “Powered by our advanced, proprietary technology, Ford Trucks enjoy strong brand identity and a solid reputation and

40 JUNE 2018

is the driving force in our expansion in the Middle East markets. The launch is a landmark development and for us this region is significant given our long, 60year association,” affirms Mustafa Caner Sinanoglu, Managing Director, Ford Trucks Middle East speaking exclusively to Global Supply Chain. “Our economical value product offerings meet the highest and most demanding engineering standards and have evolved over the decades in tandem with the regional markets that are becoming increasingly mature, competitive and demanding. It is a good fit,” he continues. The new series bears all the hallmarks and attributes buyers have come to expect of the Ford Trucks brand. The new trucks offer advanced specifications such as 10mm 500 MPa strong steel chassis, twin clutch, 16-speed ZF transmission,

and day and sleeper cab options. Buying alternatives include the purchase of just the chassis or chassis with complete fit-out and tailor-made body to suit the customer’s specifications.

Powerful and popular In Sinanoglu’s assessment, the popularity of Ford Trucks’ latest introduction is due to the revised and now preferred axle configuration which enhances the model’s capacity to move heavy loads and have better grip on off-road conditions in construction and quarry sites. “A truly competitive, viable and economical alternative, the Ford Trucks 6x4 Tractor Head series are powerful and capable vehicles tailored to meet the specific needs of the UAE market. The 3543T is now equipped with 24-inch tyres in response to market requirements and is currently being offered with a comprehensive warranty that can be extended up to five years.” According to Sinanoglu, the 24-inch tyres provide superior ground clearance and high traction in extreme and challenging conditions, while the high front axle capacity increases its durability and the high towing capacity to allow transportation of heavy loads.“The restructured configuration allows for delivering power to more tyres, thereby producing better control and overall vehicle operation and is ideal for long distance haulage,”he points out. Sinanoglu says that Ford Trucks is continually focused on building long-


COMMERCIAL VEHICLES - FORD TRUCKS

Mustafa Caner Sinanoglu, Managing Director, Middle East, Ford Trucks

JUNE 2018 41


COMMERCIAL VEHICLES - FORD TRUCKS

term relationships with its customers by understanding the true need of each customer and the regional requirements. “Ford Trucks available in the Middle East are built to European standards and specifications that surpass even the most stringent GCC stipulations. As a consequence, our pioneering series has been designed and developed with consideration of our GCC clients’ needs and regional market requirements. “Offering comfort and exceptional uphill traction, the 2018 6x4 Tractor Head series delivers 430 PS at 1800 rpm and 2150 Nm of torque between 1000–1300 rpm. The optional 600 KW Intarder option offered for even tougher conditions brings the total braking capacity to 1000 KW, ensuring that the heaviest loads can be carried safely on even the steepest slopes,” he asserts. Sinanoglu oversees Ford Trucks’ operations in GCC, Lebanon, Jordan, Iraq and Afghanistan in addition to his native Turkey. The country accounts for around 30 per cent of the annual production capacity of 15,000 trucks and tractors at the plant and constitutes the third biggest market in Europe. Saudi Arabia, the UAE and Kuwait constitute the top three markets in the Middle East.“Business prospects this year look promising for Ford Trucks in this important region. Q1-2018 sales was encouraging, we anticipate the second half of 2018 to be better than the first and are confident will close strong this year in the region,” he observes.

42 JUNE 2018

Trucks and telematics Ford Trucks’ fuel-efficient vehicles offer quality and durability with low cost of ownership. Additionally, models such as 1843T tractor, 1833 (4x2), 3543P/M/D (6x4) and the 4143M/D (8x4) mixer can be customised with transmission and cabin modules for on-road and offroad conditions. Additionally all Ford Trucks come equipped and powered with Arvento FMS (Fleet Management Systems) technology, a leading provider of telematics solutions. Established in 2005, Arvento FMS provides fleet operators with visibility into vehicle location, fuel usage, speed and mileage and other insights into their mobile workforce, enabling them to reduce their operating costs and increase their revenues. Designed for the most challenging environments, with best-in-class sequence and efficiency, an important feature in the new Ford Series is the Automated Transmission option. With off-road, rocking and economy modes, the automated transmission option assists drivers in keeping their vehicle sure-footed on virtually any terrain. “The new Ford Trucks series continues to save after purchase, offering a competitive advantage with 25 per cent reduced maintenance costs. The service agreements provide unlimited warranty for two-year periods, unprecedented in the industry, with mileage extended up to 40,000 kilometre that will allow customers to have the most

inclusive maintenance advantage in the logistics and construction sectors,” he adds. He also observes that in addition to the above, the following considerations make the Ford 3543T very competitive. These include less down time, low fuel consumption, extended warranty, on-site maintenance and repair services at mobile workshop sites, increase vehicle uptime and professional training at the Ford Driver Academy. “Clearly this is a B2B business and customers rightly seek returns on their considerable financial investment on our products. If our track record is anything to go by, Ford trucks enjoy a rock solid reputation for their rugged capability and outstanding performance. To this end all indications are that this meticulously developed model over an extended period of time will also be a runaway success. We are headed to a new milestone,”he concludes.

The newly introduced ‘Hot Climate’ package provides the truck driver and occupants comfort in hot and dusty environments with improved A/C and radiator performance, and improved cabin isolation and filtration. The package was developed over a two-year period of vehicle durability tests in simulated laboratory conditions and tailored to specific customer expectations through a series of road tests in the region. The package is offered across the entire product line-up for the UAE. DEVELOPMENT PROCESS OF THE NEW FORD TRUCKS SERIES €150 million invested in the development of Ecotorq engines and new Ford Trucks 750 engineers worked for four years to develop this model The trucks have covered more than two million km of test drive in eight different regions The new Ford Trucks Series was tested in eight countries across three continents, under the world’s toughest conditions, and prepared


COMMERCIAL VEHICLES - IVECO

Iveco makes impressive inroads in the Middle East Priding itself for producing strong, sturdy and dependable vehicles for every load and every mission, the Italian designer and manufacturer of light, medium and heavy duty trucks, is on a roll in the Middle East as the brand gains traction and finds newer and bigger customers procuring new models with wider industrial and commercial applications across the region

JUNE 2018 43


COMMERCIAL VEHICLES - IVECO

F Marco Torta

44 JUNE 2018

irst incorporated in 1975 in Turin, Italy, following a merger of five Italian, French and German automotive brands, Iveco is now one of the world’s leaders in road transportation - a steady reputation built over the decades. It has come a long way in the Middle East where the brand has made deep forays in the region’s competitive commercial vehicles sector. With a solid presence in the region, production plants across five continents, 5000 points of sales and service in over 160 countries, Iveco is a global force to reckon with. “Making the business of transportation easier, more productive and importantly economical to our customers is our goal,” explains Marco Torta, Area Manager for Gulf Area, Iraq and East Africa from the Iveco Regional Office in Dubai.“Our standing in this region is rock solid, as tough as the trucks we manufacture. Our commercial vehicles are completely reliable and built to impeccable standards, powered by modern and robust

engines to ensure safe and rewarding driving,” he continues. Torta also cites several advantages of brand Iveco that has catapulted the company into the big league of this transportation segment both regionally and globally.“We are cost-effective and our consumption and operating costs are relatively low which in turn proves profitable for our customers. We offer the finest European technology recognised around the world and our expertise is backed with an extensive professional assistance network, 24X7 customer service and a string of financing options,”he affirms.

Iveco ingenuity “Quality is at the core of vehicles that carry the trustworthy Iveco name. Our versatile and highperformance tough-body trucks are also suited for off-road conditions and our production standards offer value-for-money in terms of tonnage, power, torque, safety and ergonomics,”he points out. Iveco is present in the region with an extensive and well served network. In November 2017, Kuwait Automotive Imports Company-Al Shaya


COMMERCIAL VEHICLES - IVECO

that serve both our customers and the environment,”he notes. According to Torta, Iveco has been investing in the development of alternative drive systems for over 30 years. It offers EEV (Enhanced Environmentally Friendly Vehicle) engines running on diesel or compressed natural gas on its entire range. Iveco’s vision is to develop modes of transportation that reach their destination in the most efficient, ecological and safe way. The company places an emphasis on its innovation practices in order to continuously improve and enhance its technologies. Innovation follows the guiding principles of sustainability and serving customers.

Bodybuilding, Iveco style

& Al Sagar, a leading automotive and auto products distributor in Kuwait, launched Iveco in Kuwait, bringing the country into its partner fold. The brand is represented across all of the GCC including five locations across Saudi Arabia in addition to representations in Iraq, Jordan and Lebanon. Iveco’s current product range for the region is exhaustive with a full offering of vehicles for customers from varied business sectors. In the heavy range, the company produces delivery and haulage vehicles for general transportation as well as vehicles for carrying refrigerated cargo, cars and liquids. Iveco vehicles also find application for Municipal services (garbage and sewage), recovery and airport services. For the construction and materials transportation segment, Iveco offers container trucks, tippers, container trucks, flatbeds, concrete mixers, pumps and tankers. “We are strong on economic considerations including lower fuel consumption, lower emissions, longer maintenance intervals,

long lasting value and lower total cost of ownership. We are also strong in performance with our Euro 3 13-litre cursor engines and high torque delivery even below 1000 rpm. We are also strong on design and comfort with our vehicles available in three cab versions, adjustable steering wheel and controls at one’s fingertips and a new dashboard with ergonomically positioned, easy-to-reach switchgear.”

Cruising along fine Iveco performed well in 2017 registering growth in sales of 20 per cent over 2016. “2018 looks promising with the regional economies picking up and in recovery mode thanks to a spurt in oil prices. In conjunction with our regional partners and our efforts, we are confident of attaining our targets in 2018,” he observes. Torta notes that one of the major trends in the market is innovation.“Iveco is committed to safe, efficient and sustainable mobility and works to develop technological solutions

Iveco offer versatile vehicles adapted for different missions. Iveco has a dedicated department that manages vehicle bodybuilding in order to seek best-fit solutions both in terms of product match and economics. The bodybuilder department works with customers in the configuration of the vehicle from start to finish to get optimum results. Iveco’s commitment to sustainability evident in the various areas of the brand’s activities, from the promotion of increasingly sustainable mobility to the reduction of the environmental impact through its production processes; from the management and development of human resources to quality of life in the workplace; from initiatives involving the sales network to those benefiting local communities. Progress towards the achievement of these objectives is constantly measured and observed through the use of specific performance indicators. With the switch to the Euro 4 engine and emission standards there will be a wider range of vehicles in terms of engine power.“Iveco already offers a full range but after the switch our customers will have the opportunity to choose between new versions,”says Torta. “For example the Trakker 410 hp will now be available in the heavy range. In our light range there will be much more choice in terms of engine power and the most innovative aspect will be the Daily Hi-Matic version that represents the first eight speed automatic gearbox in industry for more comfort and safety.”

JUNE 2018 45


OIL AND GAS

ADNOC

H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO

to grow downstream business The Abu Dhabi National Oil Company (ADNOC) recently announced that it is receiving considerable interest from potential partners, as it explores a range of new growth options and initiatives to accelerate the delivery of its recently announced downstream strategy 46 JUNE 2018

A

DNOC detailed plans to invest AED 165 billion (US $45 billion), to become a global downstream leader, enabling it to further stretch the value of every barrel it produces to the benefit of ADNOC, its partners and the UAE, creating a range of opportunities for new and existing partners and investors. This new downstream plan were outlined on May 13, at the ADNOC Downstream Investment Forum in Abu Dhabi. The downstream strategy will build on the ADNOC transformation programme of the last two years, which focuses on maximizing

value by driving operational efficiency, enhancing performance, realigning the management of its portfolio of assets, and introducing a new and expanded partnership and investment model. H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, says,“As we grow in the downstream, a central pillar of our strategy will be the creation of a global refining and petrochemical growth engine at Ruwais. We are exploring a range of options in Ruwais, including bringing in partners who share our vision to develop new businesses that will accelerate the growth of the complex.


OIL AND GAS

Bob Dudley, CEO of BP

“The expansion and enhancement of our refining capabilities in Ruwais, along with the development of Derivatives and Conversion Parks, are key initiatives aimed at significantly expanding ADNOC’s downstream operations. They will provide the UAE private sector, and international companies, the opportunity to partner with us to build and profit from the extended petrochemical value chain. The entire plan will support the development and diversification of the UAE’s economy, create highly skilled, specialized jobs and contribute to GDP growth.” ADNOC is now accelerating this transformation by executing its downstream

strategy that is aligned with ADNOC’s 2030 strategy of a more profitable upstream, more valuable downstream, more sustainable and economic gas supply, and more proactive, adaptive marketing and trading. ADNOC will look to create long term downstream partnerships, providing access to opportunities across the value chain for both investors and partners. Bob Dudley, CEO of BP, who was in attendance at the Downstream Investment Forum, commented on ADNOC’s partnership model and the investment opportunities it provides, saying,“Abu Dhabi for us is a strategic partner, it’s a great place

John Flint, Group CEO of HSBC

Mark Garrett, CEO of Borealis

to invest. The UAE has great resources to produce, and it exports those, but now it can take them and add more value to every barrel of crude oil and natural gas it produces, turning them into other products, and sending them to the markets. This seems like a natural fit because Abu Dhabi is located at the crossroads of the world, and it’s a really ambitious idea that Abu Dhabi has experience of executing.” John Flint, Group CEO of HSBC, paid tribute to the impact of the program and the prospects of the UAE, saying,“ADNOC’s transformation is capturing the attention of investors around the world. The UAE is a

JUNE 2018 47


OIL AND GAS

10 per cent of refining capacity in the good place to invest now because it has economic ambition coupled with dynamic Middle East. ADNOC aims to increase and enhance the processing capacity and clear leadership.” and capabilities of the Ruwais refinery Mark Garrett, CEO of Borealis, the Austria headquartered partner of ADNOC and petrochemicals complex through a range of new initiatives and investments, in their joint venture Borouge, said, including: “When we invest, we look for long term advantaged feedstock supply, ability to A new refinery – a greenfield project access markets, ability to leverage our to build a 600,000 barrel per day crude technologies and the ability to fund. In refinery. regards to ADNOC and Abu Dhabi, we A Crude Flexibility Project (CFP) – a found these things.” new refinery upgrade to allow ADNOC Central to the to process heavier crudes. plan will be a major Developing this capability With a refining enhancement and will allow ADNOC to expansion of refining, export more of its highcapacity of petrochemicals value Murban, as well as and manufacturing further support its new 922,000 barrels operations and asset-backed trading per day (bpd) capabilities in Ruwais, activities. UAE. The plans A Gasoline Aromatics of crude and will build on the Project (GAP) – the condensate, existing strengths and development of new competitive advantages processing units to ADNOC’s of the Ruwais Industrial upgrade the company’s operations in Complex, through a light and heavy naphtha combined program of streams, which would Ruwais already strategic partnerships allow ADNOC to increase make it the fourth its gasoline production and and investment, and will see ADNOC allow the development largest refining increase the range and of another vertical in the complex globally volume of high-value ADNOC petrochemical downstream products value chain through to meet rising global demand. An the development of aromatics, leading enhancement of refining capacity and to further downstream business and capabilities will enable the creation of a investment activities within the new manufacturing ecosystem in Ruwais in Ruwais Derivatives and Conversion the form of Derivatives and Conversion Parks, and the potential export to growth Parks that will further stimulate Inmarkets. Country Value creation, private sector A new Linear Alkyl Benzene growth and employment in the UAE. The (LAB) project – the LAB manufacturing plans will see crude oil refining capacity facility will be fully integrated within doubled, and petrochemicals production the ADNOC Refining complex, taking tripled by 2025. In addition, the plans feedstocks of kerosene and benzene to will see the creation of more than 15,000 produce the most common raw material highly skilled, specialized jobs in the in the manufacture of biodegradable petrochemicals and refining fields added household and industrial detergents and a by 2025, along with a contribution of an number of other products. additional one per cent to GDP per year. A mixed feed cracker – ADNOC and With a refining capacity of 922,000 Borealis are constructing the Borouge 4 barrels per day (bpd) of crude and complex, which moved to the Front End condensate, ADNOC’s operations in Engineering Design (FEED) stage in July Ruwais already make it the fourth largest 2017, and will encompass a world-scale, refining complex globally, representing mixed feedstock cracker, that will be fully

48 JUNE 2018


OIL AND GAS

integrated with ADNOC’s Ruwais refineries. An additional polypropylene plant – also in July 2017, it was announced that the new polypropylene plant (PP5) had moved into the engineering, procurement and construction (EPC) tendering phase. The plant will be based on Borealis’ proprietary Borstar® technology, and will be integrated with the existing Borouge 3 complex. Carbon Black and Delayed Coker – an upgrade to improve product recoverability and maximize value from the bottom of the barrel. Further to the above refining projects, the Ruwais Derivatives Park will enable partners to invest alongside ADNOC in assets that produce new primary chemical products from a broader range of feedstocks made available from the expanded Ruwais Refinery and the new Mixed Feed Cracker. Beyond the Derivatives Park, the Ruwais Conversion Park will enable new businesses even further down the value chain, taking feedstock from ADNOC Refining, Borouge and the Derivatives Park, to manufacture higher value, converted end products, including packaging materials, coatings, high voltage insulation, pipes and automotive composites. In addition to supplying valuable feedstocks, ADNOC will also avail developed land, infrastructure, utilities and shared services at attractive rates to the potential tenants. This announcement comes on the back of a number of significant recent announcements from ADNOC, including: an agreement with OCP Group of Morocco to explore the phased creation of a new global fertilizers joint venture; a Memorandum of Understanding (MOU) with Ravago Group, a leading service solutions provider in the global polymers and chemicals market, to explore opportunities for cooperation at the Ruwais Industrial Complex; and a project development agreement with Cepsa of Spain moving the above mentioned, new worldscale Linear Alkylbenzene (LAB) facility, also in Ruwais, to the FEED stage. In parallel to the developments at its domestic refining operations at Ruwais, ADNOC is actively pursuing international expansion by targeting select growth market opportunities to establish new refining and petrochemical footprints across the value chain and improve its market access and product placement capabilities.

JUNE 2018 49


INTERNATIONAL BUSINESS

UPS’s new facility located in the DP World London Gateway Logistics Park is one that aims to boost business for all parties involved - UPS, DP World and the UK

50 JUNE 2018

UPS launches flagship in DP World London Gateway Logistics Park

U

PS officially opened its new 32,000 sq metre package sorting and delivery facility in the south east of England. At US$163 million, the new London Hub is one of UPS’s largest single infrastructure investments outside of the United States in the company’s history. “Every single day, we see evidence of a more inter-connected world of commerce. And we are delighted that UPS continues building upon its relationship with Dubai-based DP World to explore new international opportunities,”commented Rami Suleiman, newly appointed UPS

President of the Indian Subcontinent, Middle East and Africa region (ISMEA).“We are leveraging our work with DP World, a global trade enabler, along with UPS’s smart global logistics network to improve trade flow processes that our customers rely upon to expand their businesses globally.” UPS is also working with Expo 2020 Dubai as the official logistics partner to help connect Dubai to the world and the world to Dubai. The theme of the UK’s participation in Expo 2020 Dubai is “Global Britain – Innovating for a Shared Future.”The UK will build a pavilion and host a programme of business and cultural events in Dubai.


INTERNATIONAL BUSINESS

“We congratulate UPS on this strategic development. By using DP World London Gateway Logistics Park and Port, UPS will have a fast ‘global conveyor-belt’ directly connected to their own worldwide network,” says His Excellency Sultan Ahmed bin Sulayem, DP World’s Group Chairman and CEO.“This development confirms that the market-centric location of DP World London Gateway, right on the doorstep of London and the South East and on the same site as the country’s fastest growing deep-sea port, can only add value to supply chains – through reductions in cost, time and carbon footprint.”

Located at the DP World London Gateway Logistics Park, the new building will act as a UK package processing hub and distribution centre for the local area as well as a gateway to UPS’s global logistics network, with capacity to process up to 28,000 packages per hour and room for further expansion. “E-commerce growth, cross-border trade expansion, and unique customer needs are accelerating demand for UPS’s services,” says Lou Rivieccio, President, UPS Europe. “This strategic investment in capacity and cutting-edge technologies in the UK is helping advance UPS’s smart global logistics network of the future.”

More than 500 employees will operate out of the new operations hub that spans the space of approximately five football pitches. With over four miles of conveyor belts, the facility features advanced package scanning and sortation equipment that increase the flexibility to efficiently route packages to their final destinations. Business and residential customers will benefit from enhanced speed and accuracy as UPS meets their growing global shipping demands. “This state-of-the-art facility enables us to further improve our services to companies of all sizes that are looking to grow their cross-border business,” says Mark Vale, President for UPS UK, Ireland and Nordics. “With strong growth in our export volume in the UK, which increased nearly 20 per cent in 2017 and more than 15 per cent in the first quarter of 2018, we are optimistic about the future. This key investment is tangible proof of UPS’s commitment to helping customers doing business in and with the UK.” The new London Hub is part of a US$2 billion infrastructure and network investment programme by UPS across Europe to add capacity and provide even faster services across the region. Recent investments as part of this programme include the announcement of a US$155 million facility in Eindhoven, the Netherlands, the opening of an UD$80 million facility in Bielefeld, Germany, and the construction of a US$100 million hub in Evry, France. Attending the official opening ceremony, British Transport Secretary, Chris Grayling MP said,“The significant investment announced today by UPS is a strong vote of confidence in our country’s economic strength and our aspirations for the future. As the gateways for as much as 95 per cent of our international trade, our ports including the world-leading operations at London Gateway - are vital to our country’s long-term prosperity. That is why we are committed to enhancing their productivity and maximising their potential, as set out in our port connectivity study. This new London Hub, bringing employment and investment in the South East, will further enhance our position as an outward-facing and dynamic trading nation.”

JUNE 2018 51


COMMERCIAL VEHICLES - IVECO

Slight recovery amid

mixed

demand

As volumes continue to trend sideways, growth achieved in April has been better than previou months. This IATA report identifies the best performing regions and most popular routes

Y

ear-on-year growth in industry-wide freight tonne kilometres (FTKs) recovered to 4.1 per cent in April, having fallen to a 23-month low of 1.8 per cent in March. We continue to expect FTKs to grow in the region of four per cent in 2018. However, with volumes now having trended sideways in seasonally adjusted (SA) terms for the past eight months, the risks appear to be more on the

52 JUNE 2018

downside. Annual growth in freight capacity exceeded that of demand in April for just the second time in 21 months.

freight volumes in seasonally adjusted monthon-month terms in April, and broadly reversed the corresponding decline seen in March.

Annual FTK growth recovered somewhat in April

Traffic trends sideways

Having fallen to a 23-month low of 1.8 per cent in March, year-on-year growth in industry-wide FTKs recovered to 4.1 per cent in April. This outcome reflected a pick-up in

Nonetheless, the mixed demand picture since the end of last year means that the increase in April was just the second rise on a month-onmonth basis since December. Indeed, the bigger picture is that FTK volumes have now trended


AIR FREIGHT

broadly sideways in SA terms since August last year. Unless we see a pick-up in the seasonally adjusted demand trend in the coming months, the implication is that the annual FTK growth rate will slow once again towards mid-2018.

Air freight demand drivers have softened The current moderation in air freight demand momentum largely reflects the

fact that the inventory re-stocking cycle, which helped to boost freight demand last year, looks to have now run its course. As we have noted before, having fallen between the start of 2016 and the end of 2017, the inventory-to-sales ratio in the US has risen so far in 2018. The moderation in air freight demand is also consistent with the latest signs from the new export orders component of the global manufacturing

Purchasing Managers’ Index (PMI), which has proven to be a very good leading indicator for air freight in the past. While the series remains above the 50-mark that is notionally consistent with rising export orders, it fell in April to its lowest level since October 2016, and is currently pointing to annual FTK growth remaining in low single digit territory in the coming months.

MAY 2018 53


AIR FREIGHT

Wider weakness in world trade expected The latest developments in the global PMI series reflect a broad-based moderation in export order books for manufacturing firms across the major exporting countries in the world. Meanwhile, it is interesting to note that growth in global containerized trade has also slowed in tandem with air freight in recent months. Taken together, both of these factors suggest that wider momentum in world trade growth may be weakening alongside the recent pick-up in protectionist measures and rhetoric. As we noted in a recent research note, the latest developments in air freight suggest that it is prudent to be cautious about the wider outlook for world trade.

The current moderation in air freight demand momentum largely reflects the fact that the inventory re-stocking cycle, which helped to boost freight demand last year, looks to have now run its course

Solid FTK growth still expected in 2018 as a whole There is still a long way to go this year, and we continue to expect industry-wide FTKs to grow in the region of 4 per cent in 2018 as a whole. Following the very strong growth performance seen in 2017, this would still be a robust outcome for the air freight segment. Nonetheless, this would need air freight volumes to resume their upward SA trend in the coming months, and the risks to the outlook appear to be tilted to the downside.

Capacity is growing faster than demand Available freight tonne kilometres (AFTKs) grew by 5.1 per cent year-on-year in April, down from 6.3 per cent in the previous month. The upward trend in SA FTKs has fallen below that of AFTKs over the past eight months or so. April was just the second time in 21 months in which the annual pace of capacity growth has exceeded that of demand. As a result, the industry wide freight load factor fell by 0.5 percentage points compared to April 2017. International FTK growth also recovered modestly Industry-wide international FTKs grew by 4.9 per cent year-on-year in April, up from 2.2 per cent in March.

Latin America topped the growth chart again Annual growth in international FTKs flown by airlines based in Latin America fell to

54 JUNE 2018

Asia Pacific and Europe present subdues picture It is an even more subdued picture for the two largest freight-flying regions, Asia Pacific and Europe. Admittedly, airlines based in these regions both reported accelerations in yearon-year growth in international FTKs in April relative to March (to 5.6 per cent from two per cent in the case of Asia Pacific, and to 2.4 per cent from 0.8 per cent for Europe). However, the bigger picture is that both regions have seen air freight volumes trend sideways in SA terms since mid-2017. As the largest freight-carrying region, Asia Pacific is most exposed to any risks of rising global protectionism or trade wars. Meanwhile, a stronger euro, combined with the softer new export order index for the region’s key exporting nation, Germany, pose downside risks for European carriers.

Downward trend in North American volumes

10.8 per cent in April from 17.4 per cent in March, but the region still topped the annual growth chart for the second month in a row. Freight volumes have recovered over the past 18 months or so alongside an improvement in economic conditions in the continent’s largest economy, Brazil. In SA terms, volumes remain at levels last seen in the second half of 2014.

Middle East carriers came in a close second Middle Eastern carriers posted the second fastest annual growth rate in April (7.3 per cent, up from 1.0 per cent in March). However, the acceleration in the annual growth rate mainly reflected developments a year ago rather than any substantial change in the near-term trend; in fact, international FTK volumes have trended upwards at just a modest annualized rate of just 1-2 per cent over the past six months. All told, this supports signs of a broader moderation in global trade conditions.

Airlines based in North America saw a deceleration in annual international FTK growth in April (to 4.0 per cent, from 5.3 per cent in March). A downward trend in traffic has emerged since the end of last year and is something we will continue to monitor closely. The weakening in the US dollar that we saw from the start of 2017 into the start of this year looks to have supported outbound air shipments; according to the US Census Bureau, export volumes from the US by air grew by 11.7 per cent year-on-year in Q1, compared to a corresponding 7.5 per cent increase in imports. (Note that the US dollar has been rising more recently.)

Africa growth jumps back into positive territory Meanwhile, year-on-year growth in international FTKs flown by African airlines recovered into positive territory in April (+5.8 per cent, from -3.1 per cent in March). Recall that international FTK volumes flown by African airlines surged by 25 per cent last year. However, FTKs have trended down in SA terms since peaking in late-2017 and are currently at levels last seen in the middle of last year. -IATA Economics economics@iata.org


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TECOM

Tecom

Dubai’s key diversification

driver

With non-oil revenues soaring in importance for the country’s economy, Tecom Group continues to maintain its top tier role in attracting investments in six vital non-oil sectors - Manufacturing, IT, Media, Science Education, Design

T

ecom Group, a member of Dubai Holding, continued to show strong performance and sustainable growth in 2017, playing an integral role in Dubai’s diversification plan and consolidating its position as a global business hub. Tecom Group plays a critical role in developing six vital non-oil sectors, including information technology, media, science, education, design and manufacturing, through establishing stateof-the-art infrastructure, a robust legislative environment and effective business solutions. Tecom Group also focuses on entrepreneurship and SMEs to help local companies pave the way to global expansion. In line with the Group’s support for developing and empowering national talent

56 JUNE 2018

across various economic sectors, its business parks today are led by a distinguished senior Emirati team. Tecom’s 11 business parks – Dubai Internet City, Dubai Outsource City, Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Knowledge Park, Dubai International Academic City, Dubai Science Park, Dubai Industrial Park, Emirates Towers Business Park and Dubai Design District – attracted over 480 new business partners in 2017, bringing the total number of companies to 5,600. Employing more than 90,000 people from 162 nationalities, Tecom Group’s business communities also maintained a high occupancy rate of more than 86 per cent. The Group hosted over 900 technology, education, design, media, science and industry events over the past year,

boosting the growth of vital economic sectors that drive Dubai’s economic diversification.

Directions Malek Al Malek, CEO of Tecom Group, says, “Tecom Group continues its strong year-onyear performance, in line with the integrated plan for Dubai Plan 2021. Our efforts are in line with Dubai Holding’s strategic direction, which focuses in addressing the market’s growing needs, increase the contribution of non-oil economic sectors to the GDP and establish digital transformation enablers to make Dubai the smartest city in the world.” He adds,“Over the past two decades, the Group has created a business experience that is unprecedented in its integration and ability to provide an attractive environment for enterprises from across the world. Our efforts have significantly strengthened Dubai’s position as a global economic hub. We will continue to promote the emirate as a key destination for business and innovation. “Tecom Group’s first business community Dubai Internet City was launched in 1999 amid a radical transformation of the global economy and a rapid rise of economic concepts that have changed the international landscape, such as globalisation of trade, industry and knowledge economy, and enabling entrepreneurship and e-commerce. From the outset, the purpose of the Group was not only to keep pace with these transformations, but also to envisage the future and contribute to consolidating Dubai’s status as a global success story.”

Sector-wise achievements Since its inception, Tecom Group has been providing the necessary supportive business setup landscape, enabling environment and integrated infrastructure that constantly evolves, allowing its partners to innovate, grow and expand into the wider region. Today, Tecom Group continues to support Dubai’s strategy of competitiveness and excellence. The Group is focusing on the development of its current and future projects that provide an integrated business environment for global entrepreneurs, strengthening Dubai’s position as a hub for a diversified, sustainable and resilient businesses and investments. Technology is the first economic sector


Tecom Group is well-placed to lead local and regional economic growth, strengthening Dubai’s global position as an attractive business hub and an attractive job market for Emiratis leading the growth of national economy

Malek Al Malek, CEO of Tecom Group

developed by the Group. At the forefront of this sector is Dubai Internet City (DIC), one of the largest information and communications technology (ICT) business parks in the Middle East and North Africa, and the home to world-renowned corporations, including listed Fortune 500 companies; in addition to Dubai Outsource City, a specialised outsourcing hub. The two communities boast a combined total of 1,600, ranging from major international corporations to small and medium-sized businesses and entrepreneurs, employing 34,000 professionals. Since its inception, DIC has been shaping the tech business landscape in the region, diversifying the economy and promoting Dubai as a global destination that spearheads digital transformation and

provides a conducive ecosystem for worldclass companies and innovation centres. Leading multinational corporations that have chosen to call DIC home include Google, Facebook, IBM, Microsoft, Oracle and Snapchat. Over the years, DIC’s business partners have secured investments from local and international investors totalling AED7.8 billion (US$2 billion). Some of the partners commenced operations as small-scale startups prior to becoming runaway success stories with DIC’s support. Dubai Internet City is now home to 11 innovation centres including Cisco and SAP. The education, training and HR sector, represented by Dubai International Academic City (DIAC) and Dubai Knowledge Park (DKP), is one of the key pillars of Dubai’s transition to

a knowledge-based economy. The two business communities account for 500 companies in the field of education and professional development with over 5,300 employees. DIAC is home to 27 universities, including 22 international campuses of renowned educational institutions from across the globe, catering to 25,000 students from 150 nationalities. In 2017, the University of Birmingham opened its campus in DIAC, becoming the first educational institution based in Dubai to rank among the top 100 universities in the world. Other international institutions that DIAC welcomed to its fold last year include BMI Media and Curtin University. Design is one of the most prominent economic sectors that are gaining momentum in Dubai. Hosting a creative workforce over 8,000-strong, Dubai Design District (d3) has

JUNE 2018 57


TECOM

become one of the premier art, fashion and architecture hubs in the region. Housing 500 of Tecom Group’s business partners, d3 is also an entertainment and art destination with a portfolio of popular events to its credit, including Dubai Design Week, Fashion Forward and Sole DXB. Key global fashion houses that have joined d3 include Chanel, Dior, BOSS, and Burberry. The Dubai Institute of Design and Innovation (DIDI) opened registration for its programmes that were developed jointly with Massachusetts Institute of Technology (MIT) and Parsons Design School. The business community has also laid the foundation for the iconic Mercedes Benz Tower that will accommodate the automobile manufacturer’s regional corporate headquarters, branches and showrooms. Dubai Media City, Dubai Studio City and Dubai Production City represent the dynamic media arena with a focus on creative industries such as advertising, filmmaking and production. Companies based here, including CNN, BBC, Discovery Networks,YouTube Space and Disney, employ over 34,500 people and make up the largest share of Tecom Group’s business partners – 2,000 in total. In the industrial sector, Dubai Industrial Park (DI) is the leading industry and logistics hub in the MENA region and a key contributor to reinforcing Dubai’s position as the regional trade and manufacturing powerhouse. DI accounts for 700 of total companies. The park announced an AED135 million infrastructure expansion in line with the growth of the industrial sector in Dubai and the UAE. Furthermore, DI launched the third phase of light industrial units and refrigerated warehouses that comprise 197 warehousing facilities spanning 1.5 million square feet. In 2017, several prominent industrial and commercial names joined the list of business partners of Dubai Industrial Park, while some existing partners expanded their business. Tecom Group has also enabled the science sector through creating Dubai Science Park (DSP) that is poised to become a leading business destination attracting international companies operating in diverse scientific disciplines. Today, DSP has 350 business partners, including global pharma giants Bayer and Pfizer, that employ over 3,700 industry professionals

58 JUNE 2018

Tecom is a key contributor to the growth of Dubai’s non-oil economy 900 technology, education, design, media, science and industry events held during

2017

C

Abdulla Belhoul, Chief Commercial Officer, Tecom Group

M

Y

Entrepreneurship While Tecom Group has succeeded in attracting the world’s largest companies to its business communities, it has also always focused on supporting emerging talents, startups as well as small and medium-sized businesses that are the mainstay of the economy. A major catalyst

in the Group’s success in this regard was the creation of in5, an innovation hub that aims to nurture fledgling companies to their next phase of growth. With its three innovation centres focused on tech, design and media, located in Dubai Internet City, Dubai Design District and Dubai Production City, in5 assists promising

CM

MY

CY

CMY

K



TECOM

startups through business setup, smart labs, creative spaces, mentorship, training, events and access to investors. The number of in5 partners has reached nearly 160, and these enterprises have succeeded in raising funds of AED190 million.

Projects under development The Group is set to complete several key development projects in 2018. Huawei International Technology will inaugurate its regional headquarters in Dubai Internet City. This year will also see the completion of development work at the Innovation Hub Phase 1 in Dubai Internet City that aims to accelerate the transformation of Dubai into a smart city and support the knowledgebased economy through promoting global partnerships with world-class players in innovation and technology. Furthermore, works on the headquarters of Dubai Science Park have entered their final stages. Dubai Science Park is poised to become a leading business destination attracting international companies operating in diverse scientific disciplines.

Human resources Tecom Group has been a key contributor to the local knowledge economy in more ways than one. The leadership of its business communities comprises passionate and committed executives, who have risen through the ranks to form a team driven by 100 per cent UAE nationals that enable Dubai’s and the wider UAE’s economic diversification, making the Group an important source of home-grown talent. As part of Tecom Group’s growth strategy, Abdulla Belhoul will take on the new role of Chief Commercial Officer to drive the growth of the Group’s 11 business communities and expansion of its service offering. He will spearhead the Group’s journey of success and maximise returns while ensuring the provision of best-in-class experiences for all business partners and introducing new functions to empower young leaders to play a key role in the next phase of Tecom’s growth. During 2017, Tecom Group organised over 200 training programmes that comprised more than 1,000 sessions.

Corporate social responsibility In 2017, Tecom continued its community outreach initiatives as part of its sustained

60 JUNE 2018

corporate social responsibility (CSR) mandate. The Group established partnerships with local institutions working in charitable and humanitarian fields, primarily those focused on education and health. The partners of Dubai International Academic City and Dubai Knowledge Park offered scholarships worth AED35 million to more than 2,800 students in the UAE, in addition to executing a range of other CSR initiatives.

Eye on the future Speaking on the future direction of Tecom Group, Malek Al Malek says,“We will continue enhancing Dubai’s business ecosystem, enabling new industries and

exploring future transformations. We will work relentlessly to shape an environment that facilitates the integration of new business models in the economic landscape, and leads the uptake of bioscience, new media and artificial intelligence.” He adds,“We are also committed to creating unparalleled business opportunities that reinforce Dubai’s leading position as a smart city and a world-class destination to live and work. To achieve this priority, we are building on six pillars: developing sustainable smart infrastructure, facilitating business, attracting talent, investing in human capital, supporting entrepreneurship and promoting critical work environments.”




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