June 2022 Issue 92
ENHANCING THE BUSINESS OF LOGISTICS
Almajdouie Logistics
The leading integrated supply chain provider in the Middle East
Saudi Arabia-Logistics Report Card Heavy hitter metrics
Hellmann Saudi Arabia Successful decade of operations
GWC-Qatar
Key role at FIFA World Cup 2022™
THE WORLD'S NEW LOGISTICS CENTER THE NEW HOME OF TURKISH CARGO THAT FLIES TO THE MOST DESTINATIONS IN THE WORLD IS BECOMING THE NEW CENTER OF AIR CARGO LOGISTICS, CONNECTING CONTINENTS.
DRIVE THE NEW WAY
NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.
High oil prices fuelling the Saudi Arabian economy!
SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com
Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai
Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. 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.
After registering a stronger-than-expected recovery in 2021, the Saudi Arabian economy is on an accelerated path to growth in 2022, driven by higher oil prices and non-oil activities, as oil production strengthens and pandemic pressures fade. Saudi Arabia continues to successfully control adverse impacts of the pandemic despite experiencing an outbreak of the Omicron variant at the end of 2021. Growth is expected to accelerate to 7% in 2022 before leveling out at 3.8% and 3.0% in 2023 and 2024, respectively. Stronger oil output is the main driver behind the recovery, which is expected to grow by 13% in 2022 following the end of the OPEC+ production cuts in December 2022. With encouraging data emerging from the Kingdom, Saudi Arabia is on a roll. Economic indicators are looking good, and the outlook is optimistic for all facets of the economy notably transportation and planning. We have a direct report from the Saudi Arabian Ministry of Transport and Logisatics Services. When we talk Saudi Arabia, we are talking about a powerhouse economy, the biggest economy in the region. When it comes to transportation, planning and supply chain, no talk can be complete without the mention of Almajdouie Logistics, the giant Logistics Services Provider in the Kingdom. Sheikh Mohammed Ali Almajdouie, CEO, Almajdouie Logistics, is our special guest for the lead story. In a wide-ranging interview, he spoke expansively about his long-established company, its exponential growth, its new and existing professional partnerships and his vision for the future. Continuing with the Saudi Arabia report, we also conducted an exclusive interview with Saudi Arabia expert TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan and Lars Nielsen, Managing Director, Hellmann, Saudi Arabia, for the low down on the 10th Anniversary of the company’s operations in the Kingdom. Qatar’s Gulf Warehousing Corporation—GWC has its work cut out for it as it preps itself for the fast-approaching FIFA World Cup Qatar 2022™ set to commence in November. Global Supply Chain recently moderated an interesting and stimulating panel discussion at Seamless 2022 on the subject of Hybrid Solutions. Our distinguished panellists were Vladimir Nesterov, General Manager, RouteQ, ME, and Dharmin Ved, CEO, 6th Street, an online fashion retailer. I thank them for their contribution and insights. For now, Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com
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June 2022 Issue 92
22 Almajdouie Logistics Exclusive interview with Mohammed Almajdouie, CEO.
06 Arabia—Transport & 29 Saudi Logistics Metrics NEWS
Up to date news of the Global Suppy Chain industry
Data released by the Saudi Arabian Ministry of Transport and Logistics Services.
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KSA-Frost & Sullivan Report
TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan fields questions on the Saudi logistics landscape.
48 GWC-Qatar 53 The Smart Factory
Exclusive interview with Ranjeev Menon, CEO.
Salem Machaka, Vice President, Global Professional Services, Infor, on the Smart Networked Factory.
54 Shippeo
Shippeo introduces Carbon Visibility and brings new features to Ocean and Road Visibility.
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38 RouteQ 42
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Hellmann Saudi Arabia
Q&A with Lars Nielsen Managing Director, Hellmann, Saudi Arabia, Vladimir Nesterov, GM, RouteQ, ME, participates in a panel discussion on LMD Hybrid Solutions.
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DHL Volvo
DHL and Volvo Trucks partner to introduce zero emission electric trucks.
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Shipsy
At Seamless 2022, Shipsy showcased AI solutions that build smarter logistics processes
Savoye
Savoye increases global footfall with 26% growth, breaks record turnover at US$ 214mn in 2021.
Turkish Cargo
Turkish Cargo awarded the ‘Best Air Cargo Brand’ in Europe for Sustainability.
Hyke
Hyke helps B2B parties unlock next-level speed & efficiency
CHAPTER 3
LET’S STAND TOGETHER
And offer a friend and confidant Every child needs a familiar source of comfort; someone they can confide in when the world outside seems daunting. Because WeQare, we want to give children a constant companion they can call their own. Moved by people qrcargo.com
Etihad Airways leads sustainable Aviation with flight tests to reduce carbon emissions n Etihad Airways recently undertook a week of intensive research and testing on over 30 flights to test operational efficiencies, technology and procedures that will reduce carbon emissions, in an expansion of its ongoing sustainability flight testing regime. The week-long programme, coinciding with Earth Day on 22 April, included over 20 commercial flights operating across Etihad’s network to test contrail avoidance technologies in partnership with SATAVIA, a UK-based green aerospace company. The airline also operated up to 13
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n Al Masaood Commercial Vehicles and Equipment (CV&E), part of Al Masaood Group, Abu Dhabi’s leading conglomerate, has formally announced that it is the authorized distributor for Toyo Carriers Manufacturing (TCM) in Abu Dhabi, Al Ain, Western region, Dubai and the Northern Emirates. TCM, a long-established global brand in the material handling industry, offers a high-quality portfolio of forklift products designed and engineered to meet client requirements. Supplied from production facilities in Japan, China, Thailand, and Europe, TCM’s value-for-money product range includes internal combustion engine forklifts, electric counterbalanced forklifts, reach trucks and skid steer loaders. The load capacity of small TCM forklifts ranges from 1.5 tonnes to 23 tonnes, with the brand’s large-size products able to support heavy tasks such as container handling operations in ports.
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dedicated ‘EcoFlights’ testing a range of flight and engine optimisation initiatives, with successful trials to be incorporated into regular scheduled operations. Each of these flight tests were operated on Etihad’s fleet of fuel-efficient A350 and 787 aircraft, spearheaded by the ‘Etihad Greenliner’, and Etihad’s newest aircraft, the ‘Sustainable 50’. “The results we develop will add to the body of work and knowledge base we’ve built to support the aviation industry on its journey to decarbonization,” commented Tony Douglas, Group Chief Executive Officer, Etihad Aviation Group. The bulk of tests conducted over the week are part of a year-long partnership
with SATAVIA to enable contrail prevention, integrating atmospheric modelling with operational flight planning to prevent contrail formation. Aircraft contrails, or condensation trails, are clouds made up of aircraft-generated ice crystals, which cause a net surface heating effect globally by trapping atmospheric heat. Contrails cause up to 60% of aviation’s total climate impact, the equivalent to two percent of all human impact. “Our understanding of contrails will lay the groundwork for future conversion into tradable carbon credits incentivising widespread adoption of contrail prevention across the aviation sector,”stressed Dr Adam Durant, CEO, SATAVIA.
Al Masaood is now the official distributor of TCM forklifts in the UAE
“To offer holistic solutions, we also provide flexible financing schemes and attractive leasing options. TCM is the latest in Al Masaood’s growing network of partnerships with renowned global brands, best known for their quality and excellence,” commented Mohamed El Zeftawi, General Manager of Al Masaood CV&E.
“Our increasing collaboration with Al Masaood CV&E, the exclusive TCM agent in the UAE, is intended to open up new frontiers to continue in the excellent delivery of our after-sales service and for be-spoke solutions in material handling,” observed Kosuke Matsuda, Acting Deputy Manager–Overseas Sales and Marketing Headquarters, Mitsubishi Logisnext.
Tradeling launches its second Fulfillment Centre in the UAE n Tradeling, the Middle East and North Africa’s dominant eMarketplace focused on B2B transactions, recently announced the launch of its second Fulfillment Centre in Dubai to meet market demand following the growth it witnessed in Q1-2022. The new facility is also part of Tradeling’s larger growth strategy focused on strengthening its operations in the UAE and expanding its footprint throughout the MENA region, starting with Egypt and Saudi Arabia. The technologically advanced 11,000sqm fulfillment center located at Tarkhees will drive innovation and wholesale in the MENA region and will mainly cater to international sellers and edukaan customers. edukaan is one of Tradeling’s brands catering to microbusinesses such as groceries and salons. Tradeling’s revenue in Q1-2022 has increased by 35% month over month and surpassed 30x compared to the same period last year, its product selection reached close to 1mn unique products in 14 categories including automotive, beauty
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& personal care, construction & hardware, consumer electronics and many more. Tradeling currently has over 150,000 registered buyers and sellers from over 55 countries and have received over 100,000 quotation and inquiry requests. The tech empowered eCommerce platform provides essential value-adds for buyers including finding trading partners and products from verified sellers curated by industry experts, a catered platform for every business type, and trade finance
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facilities through direct credit lines and several partnerships with banks and credit insurance companies, a press communique stated. “Driven by the obsession with our customer’s needs, digital-first mentality, and innovation, the new facility will make sure we keep up with the demand from both buyers and sellers while easing their operational challenges,” commented Marius Ciavola, CEO, Tradeling.
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dnata boosts Erbil operations fuelled NEWS by US$ 17mn investment n dnata recently announced significant expansion of its operations in Erbil, Iraq. The company opened a new, advanced cool chain facility and a bus maintenance facility for its state-of-the-art bussing fleets at Erbil International Airport (EBL), which together represent a total investment of US$ 3.5mn. dnata has also announced that it would invest an additional US$ 14mn and add a 16,000sqm cargo warehouse to its infrastructure in Iraq. The three new facilities will create up to 100 local jobs with dnata. dnata’s new cool chain facility is capable of processing 10,000T of perishables annually. It enables dnata’s cargo team to offer an uncompromised chilled and frozen storage and cool chain product to its airline customers at EBL, catering to food product categories and pharmaceuticals. The new bus maintenance facility was designed to maintain the fleet of eight
passenger apron buses and over 10 transportation buses operated at EBL. dnata’s new cargo warehouse, which is expected to open in 2023, will further significantly enhance the company’s cargo offering in Iraq. It will be capable of processing 100,000T of cargo, with a special focus on pharma and other cool
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chain commodities, annually. “Our latest investment in three new facilities will help us further expand and improve our operations in Erbil as demand for reliable and safe cargo services is on the rise across the region,” commented Tom Alwyn-Jones, Managing Director, dnata Erbil.
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Maersk reports Q1-2022 results n AP Moller- Maersk (Maersk) delivered record results for Q1-2022 across its businesses, driven by higher rates and strong long-term partnerships with customers seeking end-to-end supply chain support. Revenue was up 55pct. to US$ 19.3bn, EBITDA more than doubled to US$ 9.1bn and free cash flow increased to US$ 6bn, the company announced via a press communique. “In Q1-2022 we delivered the best earnings quarter ever in AP MollerMaersk with growth across Ocean, Logistics and Terminals. The increased earnings are driven by freight rates and by contracts being signed at higher levels. In Logistics, we enjoyed strong demand for products and solutions across our portfolio leading to the 5th quarter in a row with organic growth of more than 30pct. while Terminals
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Trade flow growth flattened from Far East to both North America and Europe. Russia’s invasion of Ukraine is having a negative impact on trade flows and consumer confidence in Europe, the press statement concluded.
Cathay Pacific Cargo introduces a suite of Priority options for time-sensitive shipments
n Cathay Pacific Cargo is introducing a suite of Priority options, offering dedicated booking tiers tailored to cargo shipments. Priority provides greater choice and better-defined service options to customers: speed, capacity and assurance for every shipment. This service will also be available in the UAE besides the airlines’ other ports, the carrier revealed in a press communique. The Priority solution offers three service tiers–First (PR1), Essential Plus (PR2) and Essential (PR3). For general cargo shipments, customers can choose the tier best suited to their needs. In addition, the First (PR1) and Essential Plus (PR2) service tiers have been extended and are now applicable to all types of shipments requiring special handling, including but not limited to Pharma LIFT, Fresh LIFT and DG LIFT. First (PR1) is the premium tier that offers the highest commitment to priority for customers’ time-critical shipments. This includes access to capacity even on
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presented its best quarter ever,” explained Søren Skou, CEO, AP Moller- Maersk. In Ocean, revenue increased 64pct. to US$ 15.6bn during Q1-2022 as strong rates more than offset a 7pct. decline in volumes. Revenue for the full year is expected to continue to be strong as the increase in freight rates on our long-term contract portfolio will add approximately US$ 10bn to revenue in 2022 compared to 2021. In Q1-2022, revenue in Logistics grew 41pct. to US$ 2.9bn compared to same quarter last year as both existing and new customers continue to buy into the full value proposition of integrated solutions. Freight rates remained elevated in Q12022 as Covid-19 and capacity shortages continued to disrupt the supply-side of the logistics industry. Global container demand declined by 1.2pct. compared to +8pct. in 2021 while global air cargo volumes increased by 2.9pct.
very high-demand flights, with guaranteed uplift once the booking is confirmed. Essential (PR3) is the standard service, providing a reliable and economical solution to bring all kinds of shipments to where they are needed through the Cathay Pacific network and via its professional handling services. Essential Plus (PR2) is an upgraded service, providing more access to capacity
on popular flights and with a higher handling priority than Essential. “Our Priority tiers are reflected directly in our new Click & Ship booking platform, Cathay Pacific Cargo or EzyCargo websites, in order to put speed and access to capacity at our customers’ fingertips,” remarked Rajesh Menon, Regional Head of Cargo South Asia, Middle East and Africa (SAMEA), Cathay Pacific.
Gulftainer handles operations in record time at Iraq port
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News Etihad NEWSCargo appoints
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Vice President– Commercial
NEWS n Gulftainer, the largest privately owned, independent port management and logistics company globally, has recently accomplished record-breaking operational excellence by handling 4,000 steel pipes within four hours. The cargo was discharged in the Port of Umm Qasr and transported to the Umm Qasr Logistics Centre (UQLC) where it will be stored until customs cleared and collected by the customer. Gulftainer operates a container terminal ICT in the port, located in southern Iraq alongside Gulftainer’s logistical arm Momentum, operates Umm Qasr Logistics Centre (UQLC), which, this week, discharged the vessel Jabal Ali 1. The operation included the discharge of 4,000 steel pipes completed in less than four hours with zero damages, marking a new cargo handling record for the Gulftainer and Momentum team
n Based in Etihad Cargo’s headquarters in Abu Dhabi, Isik will oversee the carrier’s global commercial operations. Isik joins Etihad Cargo from American Airlines, where he gained over a decade of experience working within the aviation and air cargo sectors. In his new role with Etihad Cargo, Isik will oversee the development and deployment of the carrier’s sales strategy and be responsible for further growing Etihad Cargo’s strategic relationships, executing sales and marketing plans and driving team performance. Isik will lead Etihad Cargo’s commercial operations globally, supported by Latha Narayan, Etihad Cargo’s Director–Commercial Asia Pacific, Australasia and Indian Subcontinent, and Mark Faulkner, DirectorCargo Commercial West. Isik will report to Martin Drew, Senior Vice President-Sales & Cargo. “Etihad Cargo is delighted to have Tim on the team. I am confident his knowledge and expertise will contribute to Etihad Cargo’s continued growth, enabling the carrier to further strengthen its position as the air cargo partner of choice,” remarked Drew. “I look forward to working closely with Martin and the rest of the team as Etihad Cargo continues its journey of growth through innovation and successfully adapting to the needs of customers and the dynamic challenges of the air cargo market,” commented Isik.
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in Iraq. “Our Iraqi affiliate UQIC performed exceptionally well, demonstrating speed, professionalism, accuracy, and competence as they handled this extensive consignment within record time,” remarked Peter Richards, CEO, Gulftainer. The UQLC, which covers an area of 750,000 sqm, has been developed just to the north of Umm Qasr Port and is ideally placed to provide all types of portrelated services. It is a fully integrated logistics centre with facilities offering value-added services, including cargo transportation from the port, cargo handling, warehouse facilities, consolidation, deconsolidation, sorting, stripping, and stuffing of loads in/ out of containers, and verification, packaging, labelling and other logistic services, a press statement concluded.
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RSA Global launches digital road freight platform ClickRF n RSA Global recently launched the digital freight platform ClickRF(Click for your Road Freight). ClickRF is a digital marketplace for all road freight services across the UAE and GCC region providing shippers and transporters with an aggregator service for fast, convenient, and transparent transport solutions. The platform is powered by Artificial Intelligence (AI) and RSA Global’s voiceenabled intelligent assistant RiA. Being the first of its kind in the region, RiA carries out administrative tasks on behalf of ClickRF’s users saving them time and effort. Through ClickRF shippers can inquire rates for any land lane within the UAE and GCC region, compare and negotiate offered rates, book shipments, instantly track and trace them, perform online
payments, and receive e-invoices, amongst others. In turn, transport providers can bid and adjust rates for requested lanes, manage orders, manage their drivers & fleet, receive online payments, and continuously optimize their operational processes by utilizing the system’s smart data. All steps are facilitated via a transparent real time communication between the supply chain stakeholders through the single window interface WhatsApp.
“A first of its kind IVA (interactive virtual assistant) that is built on a groundbreaking platform of AI, ML and NLP. UAE is just the first market; we will be taking this across our entire network soon,” commented Abhishek Shah, CEO & Co-Founder, RSA Global. “Going live with ClickRF is an important milestone of RSA Global’s digital transformation aiming at digitizing 100% of our customers’ interactions with us”, remarked Karthikeyan Hariharan, COO, RSA Global.
TIER Mobility Launches E-Bikes and E-Scooters in Ruwais n TIER, Europe’s leading shared micro-mobility provider which launched its fleet of high-tech e-scooters across the UAE in 2019, has officially launched its first fleet of e-bikes in the UAE, alongside the latest model, TIER 5, in Ruwais to provide an alternative way of transportation to over 29,000 residents. Ruwais is located 240km West of Abu Dhabi and has been developed by Abu Dhabi National Oil Company (ADNOC), as a city for people working for the oil company to live in. The launch is in line with TIER’s strategic plan to provide micro-mobility solutions in all major cities and hubs across the Middle East, enabling a larger audience with the option of an environmentally friendly, sustainable method of transport, whilst reducing carbon emissions. The launch has been made possible through TIER’s agreement with ADNOC, the leading energy provider that has set a 2030 Sustainability Agenda to protect the environment, with high-level goals to decrease greenhouse gas emissions by 25%. Together, both parties share similar visions to contribute towards a more sustainable future. “This is yet another milestone for TIER, as we are opening our 6th city across the Middle East and launching our first fleet of e-bikes in the UAE, allowing residents to travel longer distances using a sustainable transport method,” remarked Amir Melad, General Manager, Middle East, TIER. Residents in Ruwais are also able to use the TIER e-scooters by using the same app as the e-bikes, finding an e-scooter on the virtual map, and unlocking it by scanning the QR code, the press release concluded.
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TA’ZIZ and Reliance partner with UAE’s Shaheen on US$ 2bn chemicals project in Ruwais n Abu Dhabi Chemicals Derivatives Company (TA’ZIZ) announced today that Shaheen Chem Holdings Investment (Shaheen), will join the proposed PVC joint venture that will construct and operate a world-scale Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) facility, at the TA’ZIZ Industrial Chemicals Zone, in Ruwais. The TA’ZIZ Industrial Chemicals Zone is a joint venture between ADNOC and ADQ. With an investment of more than US$2bn (AED 7.34 billion), the project will supply local manufacturers, replacing chemicals currently imported, while also exporting to meet growing demand for these chemicals globally. Shaheen brings extensive knowledge of the local market and joins the project with a focus on utilizing production for use in local supply chains. The agreement marks the first direct investment by a privately-owned United Arab Emirates
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(UAE) company in the TA’ZIZ Industrial Chemicals Zone. “The partnership supports our national strategy to drive the growth and diversification of the country’s industrial base, strengthen domestic supply chains and enable the private sector to ‘Make it in the Emirates’, in line with the Government directives,” commented Khaleefa Yousef Al Mheiri, TA’ZIZ Acting CEO.
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“This project will be the cornerstone for many exciting downstream opportunities which will create a whole new industrial cluster in the UAE, in line with the Abu Dhabi Economic Vision 2030,” remarked Walid Azhari, Managing Director, Shaheen.
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Aramex Q1-2022 net profit increases 3% YoY to US$ 12.8mn
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n Aramex recently announced its financial results for the first quarter Q1-2022 ended 31st March 2022. Q1 2022 Revenues rose 2% YoY to AED 1.45 bn (US$ 395mn) driven by strong performance in logistics & freight-forwarding business. Net profit for Q1-2022 rose 3% YoY to AED 47mn (US$ 12.8mn). Excluding the impact of write-offs from discontinued technologies, Normalized Net Profit for the period increased 14% YoY to AED 52mn (US$ 14.16mn). “Aramex is off to a strong start in 2022. We produced a solid financial and business performance as we continue to execute on our ambitious growth strategy delivered through our recently redesigned and more focused operating model,” observed Othman Aljeda, CEO, Aramex. “Achieving near Q1-2021 volumes is impressive and suggests that despite a resumption to life as normal, consumers have adapted to a new way of local shopping, and we believe this will continue to drive sustain growth in this segment,” commented Alaa Saoudi, Chief Operating Officer–Express. “Over the past three months we sustained our growth momentum. Supported by our revamped operating model, we built deeper expertise and understanding of the business, market dynamics and customer needs,” remarked Mohammad Alkhas, Chief Operating Officer–Logistics & Freight-Forwarding.
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New economic collaboration between UAE and Kuwait establishes a Virtual Trade Corridor n AD Ports Group recently announced the signing of a Memorandum of Understand (MoU) with the Kuwait General Administration of Customs to establish a new virtual trade corridor between the UAE and Kuwait, under the supervision of Department of Economic Development – Abu Dhabi (ADDED). The signing took place in Kuwait following a visit by DED’s Logistics Committee, under the auspices HE Abdulwahab Al-Rushaid, Minister of Finance and Minister of State for Economic Affairs and Investments - Kuwait and in presence of HE Dr. Matar Hamed Al Neyadi, Ambassador of the UAE to Kuwait, and was signed by Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, and Suleiman AbdulAziz Al-Fahd, Director of the General Administration of Customs, Kuwait. The MoU builds on existing cooperation between the UAE and Kuwait. Under its terms, Maqta Gateway, AD Ports Group’s digital arm will develop the new virtual trade corridor based upon its Advanced Trade & Logistics Platform (ATLP), under the supervision of the Department of Economic DevelopmentAbu Dhabi, establishing new policies, procedures and systems integrations
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to support a virtual trade corridor that will further simplify and facilitate cross-border trade. With the establishment of the new virtual trade corridor and implementation of integrated solutions, customs authorities in both countries will be able to access pre-arrival information for international cargo movements, making cross-validation of information significantly faster and promoting pre-clearance of goods. The MoU will also provide for accelerated procedures for expediting shipments of perishable goods, reducing dwell time at borders. The digital integration also has significant safety and security benefits, improving visibility for authorities over any possible risks associated with goods that move between the two nations, as well as reducing the inspection rate and simplifying procedures for authorisation holders.
Oware raises $3.3M to offer businesses flexible warehousing and distribution across Pakistan
n Oware, a Pakistan-based B2B warehousing and distribution start-up, has raised US$ 3.3mn in pre-seed funding. The round is backed by Silicon Valley investors along with other strong global investors and other strategic angel investors. Co-founded in June 2021 by Maersk and Careem alumni Raza Kazmi and Adil Nisar respectively, Oware empowers companies to grow through flexible warehousing and intelligent distribution, ensuring flexible response to demand fluctuations and faster and more affordable delivery of goods. Oware offers businesses scalable and tech-driven warehousing and distribution
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for B2B and retail through its connected fulfillment centres and third-party logistics providers. Companies can quickly start operations from more locations to reach more customers, unhindered by operationally intense and complex logistics planning and capital investment restricting business growth. “There is a huge opportunity in the B2B movement of goods across the region, but it remains immensely underserved. Local businesses remain trapped in an archaic and opaque environment dealing with antiquated supply chain systems that are no longer fit for purpose and remain slow, limited, and capital intensive,” commented Kazmi
Pakistan’s logistics industry represents a $35 billion+ market opportunity and provides approximately 6% of total employment. Lack of warehouse flexibility and insights leads to overspending on warehousing and inventory, which results in expensive and late deliveries with poor visibility into operations. “To get to its end destination, a product has to move between several warehouses, fulfillment centres, and trucks. This complex ballet is managed by multiple businesses without interconnected systems. Our vision is to build a large scale connected world of distribution that enables a faster route to market for our customers,”remarked Nisar.
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SISCO announces acquisition of stake in Green Dome from its subsidiary LogiPoint n Saudi Industrial Services Company, Saudi Arabia’s leading strategic investment company in the ports, logistics, and water sectors, announces that its Board of Directors has approved the acquisition of a 31.7% direct equity stake in Green Dome Investments (Green Dome) from its subsidiary Saudi Trade & Export Development Company (LogiPoint). The acquisition, which will take place at fair value for a total consideration of SAR 44.5mn (US$ 11.86mn), is subject to shareholder approval at SISCO’s Annual General Meeting. Headquartered in Dubai, UAE, Green Dome is a logistics investment fund that invests in companies positioned to benefit from the growing demand for integrated logistics in the wider GCC region. Green Dome’s buy-and-build strategy targets companies that are profitable, well-managed and have a demonstrable track record of success in order to generate economies of scale in the logistics services market. The acquisition also enables SISCO’s subsidiary LogiPoint to focus on its core offering as a leading logistics real estate developer and operator. “Integrating Green Dome directly into the SISCO group supports our five-year strategy to deepen our penetration of the logistics services space and will enable us to unlock and realize significant synergies for both SISCO and Green Dome,” explained Mohammed AlMudarres, CEO, SISCO. Key milestones during the last twelve months, in support of delivering on the strategy, have included the part divestment of the Group’s direct equity stake in the Red Sea Gateway Terminal Company; expansion by subsidiary LogiPoint; and important independent sewage water treatment plant contract awards in the water solutions segment.
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Swvl adds a key partnership to its SaaS offering n Swvl, a global provider of transformative tech-enabled mass transit solutions, recently announced entry into a strategic partnership with City Group Co. KSCP (City Group), a leading transport operator and warehousing services provider, through which City Group will utilize Swvl’s Software as a Service (SaaS) offerings in Kuwait. Under the partnership, Swvl and City Group will work to provide the optimal transportation platform for serving Kuwaiti residents, which will simplify their daily lives. The platform will feature a wide range of services, including ondemand, door-to-door, ride hailing, ride sharing and network buses, as well as school and corporate solutions.
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Swvl and City Group will initially focus on the development of an initial launch program titled ‘Kuwait City Express’. The program will include on-demand and other preferred services, with plans to scale services to 100 or more vehicles over the following six months. Following the successful completion of these phases, Swvl and City Group expect to initiate a comprehensive platform onboarding of City Group’s remaining vehicles over a mutually agreed upon period. “We are deeply committed to the
Kuwaiti transport sector and believe that collectively we have the unique ability to transform the current offering and customer experience for the benefit of the country’s daily passengers. In the process, we will make mobility more reliable, affordable and convenient,” commented Mostafa Kandil, Swvl Founder and CEO. “The launch in Kuwait represents another major organic market expansion after the recent launches of B2C platforms in Argentina, Chile, and Jordan,” asserted Youssef Salem, CFO, Swvl.
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Hyke helps B2B parties unlock next-level speed & efficiency
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n Hyke, an app-based digital distribution platform, provides instrumental assistance, in-depth market research, real-time data visibility, and efficient communication tools to manufacturers, retailers, and distributors to help them connect seamlessly. The Hyke app-based platform is essentially a seamless and uncomplicated app-based system that allows its users to get all the technology, supply chain infrastructure, and market reach they require in a few simple clicks or taps, a press communique revealed. It caters to a wide range of interests, providing a proper channel that puts all stakeholders in an advantageous position throughout the UAE and KSA. In addition, Hyke offers a substantial benefit for any supplier wanting access to this retailer base, as it currently has 10,000+ Retailers and in-store employees from the merchants’ side. Hyke gives manufacturers a bird’s-eye view of the entire value chain, real-time knowledge on sales, inventory, and market demand credit to retailers as well as support for maintaining consistent quality of operations and data access across all markets. Hyke has also launched its B2B Marketplace, which enables retailers to list and distribute their products using the Hyke App across UAE and KSA. Hyke’s B2B Marketplace was able to attract 10+ suppliers to list their products in just a few months and is already proving useful for them by adding value in maximizing the suppliers’ business in the region. Hyke is a cutting-edge technology platform that is driven by artificial intelligence, machine learning, and predictive analytics, as well as a strong logistics network that balances effectiveness and speed, the press statement concluded.
Passenger traffic gains momentum at ADIA during Q1-2022 n Abu Dhabi Airports recently released its passenger traffic results for Q1-2022 which reveal Abu Dhabi International Airport welcomed 2.56 million guests, more than triple the number seen during the same period last year, on the back of resurgent demand and the resulting introduction of new frequencies, routes, and services. First quarter statistics confirm that 2,563,297 passengers were served compared to 807,310 in Q1 2021, an increase of 218% as Covid-19 related travel restrictions across the globe eased and markets re-opened. The airport recorded 22,689 flights during the period compared to 16,351 in 2021, a sharp increase of 38.8%. “The first quarter continued to build on the momentum we saw in Q4-2021 as travel restrictions eased further,
markets re-opened and airlines deployed capacity to accommodate the resulting surge in demand,” commented Shareef Hashim Al Hashmi, CEO, Abu Dhabi Airports. As a result, Abu Dhabi International Airport welcomed the expansion of operations by home carriers Etihad Airways, Wizz Air Abu Dhabi and Air Arabia Abu Dhabi, the launch of 10 new routes as well as the introduction of new carriers Go First and Pegasus Airlines. Load factors have also doubled with the average passenger load factor reaching 70% during the first three months of the year versus 35% during the same period in 2021. The top five countries in terms of passenger volumes during the period were India (515,927), Pakistan (253,874), United Kingdom (170,620), KSA (137,582) and Egypt (127,009).
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Tristar Group receives two RoSPA Gold Awards in two cities n The UK-based RoSPA (Royal Society for the Prevention of Accidents) held its first ever Health & Safety Awards in the Middle East. On this occasion, RosPA presented the Tristar Group with the RoSPA Gold Medal Award for Safety Enforcement. Mayne earlier received the RoSPA Fleet Safety Gold Medal Award in mid-May during the Safety & Health Expo at ExCeL London. Both Gold Awards recognized the company’s 2021 outstanding performance in health and safety and for effectively managing occupational road risks. According to RoSPA, which received nearly 2,000 entries, these internationally recognized
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culture, outstanding control of risk and very low levels of error and harm. Among the attendees at the Dubai event were Tristar Group CEO, Eugene Mayne; RoSPA President Baroness Judith Jolly, and RoSPA CEO, Errol Taylor; along with Tristar Road Transport (UAE) Product Head, Arundhan Alphonse, and Tristar Group HSEQ & Sustainability Manager, Sridhar Srinivasalu.
Bridgestone EMEA puts spotlight on sustainable investing for green mobility advancement
n Bridgestone EMEA recently highlighted the rising need for the development of quality sustainable tyres considering the increasing rollout of electric vehicles (EVs) and mounting calls for green mobility in the region. Bridgestone made the statement during its participation at the Electric Vehicle Innovation Summit (EVIS), held in May 2022 in Abu Dhabi. During the summit, the company noted the growing demand for premium tyres and tyre technologies specific to EV requirements. “Bridgestone is fully committed to aligning its business model with circular economy and carbon neutrality across the value chain. Knowing that EVs are vital innovations to reduce the transport sector’s carbon emissions, we are moving towards developing tyres that can answer all relevant needs concerning this special type of vehicle,” commented Stefano Sanchini, Regional Managing Director, Bridgestone MEA.
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awards have become the most soughtafter accolade by organizations from every sector around the world, offering them the opportunity to prove their ongoing commitment to raising standards and to celebrate success. RoSPA Gold Award winners have attained a very high level of performance, demonstrating well developed occupational health and safety management systems and
He was joined by Mike Granoff, Managing Partner, Maniv Mobility (Israel); Alex Gilbert, Head of Energy & Electrification‐Commercial Development, Transport for London (UK); Sophia Nadur, Managing Partner, bp Ventures (UK); and Karine Singh, Managing Director, Total Energies (UAE). Capitalising on huge opportunities in the EV market, the leading tyre brand
formed a partnership with electric car startup Fisker to launch an all-electric SUV in several European markets. It also acquired the Arvento Mobile Systems, a digital fleet solutions provider that offers fleet management services to customers in Turkey and the Middle East. In addition, it teamed up with Webfleet Solutions to help boost the efficiency of the automotive market.
Ajman Free Zone signs MoU with Zajel n Ajman Free Zone (AFZ) recently signed a Memorandum of Understanding (MoU) with Zajel, a specialized company in the field of logistics and transport. The agreement was signed by HE Eng. Ali AlSuwaidi, Director General, Ajman Free Zone and Yousuf Alkhaja, CEO, Zajel. Under the agreement, Zajel will provide smart and efficient delivery services to free zone business partners, including the shipping and delivery of packages around the world. This collaboration will allow AFZ’s business partners and customers to benefit from the wide range of services provided by Zajel locally and internationally, including delivery and eCommerce services and solutions; international import and export services; and land, sea, and air freight services. HE Eng. AlSuwaidi stated that this MoU establishes a framework for effective collaboration between AFZ and Zajel, which will improve the efficiency of AFZ’s value-added services and expand the range of facilities it provides to its
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business partners. “The established partnership will help realize the strategic goals of both parties to provide diverse services that meet the international standards and enhance customer experience,”commented Alkhaja. This move comes in line with the AFZ’s vision to expand its cooperation
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with partners, including service providers, government, and private institutions and companies; and to improve the quality of its value-added services and solutions. The agreement also reflects Ajman Free Zone’s dedication to facilitating investor journey and encouraging the growth of business projects, a press communique concluded.
Bosch to invest up to Euro 500mn to develop components for hydrogen electrolysis n Bosch has announced that it will be investing up to Euro 500mn towards the development of electrolyzer components under its Mobility Solutions business sector by the end of the decade. When it comes to green hydrogen, Bosch is stepping on the gas: in the interest of effective climate action, the company is planning not only to use this new fuel, but also to be one of the companies producing it. This is why Bosch is branching out into the development of components for electrolyzers, which use electrolysis to split water into hydrogen and oxygen. “We cannot afford to delay climate action any longer, so we aim to use Bosch technology to support the rapid expansion of hydrogen production in Europe,” stressed Dr. Stefan Hartung, Chairman of the Board of Management of Robert Bosch GmbH, at the presentation of the company’s annual figures. “To do this, we will leverage our know-
how in fuel-cell technology,” added Dr. Markus Heyn, Member of the Board of Management of Bosch, and Chairman of the Mobility Solutions business sector. In light of energy diversification, the move away from fossil fuels, and the need to reduce carbon dioxide emissions, demand for green hydrogen is growing rapidly, not only
in energy-intensive industries such as steel, chemicals, and heavy-duty freight, but also in private real estate. According to a report published by PwC, demand for green hydrogen across the GCC is expected to grow significantly in the medium term, reaching about 530mn tons by 2050.
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NEWS Multiply Group to News NEWS invest US$ 50mn as a News
cornerstone investor in Abu Dhabi-based Borouge’s IPO
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NEWS Dubai CommerCity showcases its latest technology trends at Seamless Middle East
n Multiply Group, a technology-focused holding company based in Abu Dhabi, recently announced it has agreed to purchase shares in the forthcoming Initial Public Offering (IPO) of Borouge for a total amount of AED 183.75mn (US$ 50mn) as a cornerstone investor. “Our investment underpins our confidence in the Abu Dhabi market which has maintained strong momentum in its capital market despite the ongoing global economic uncertainty. We see this momentum continuing on the back of solid economic growth in Abu Dhabi and ADX’s growing depth, resilience, and sophistication,” affirmed Samia Bouazza, CEO and Managing Director, Multiply Group. This investment is also an opportunity to partner with ADNOC Group, which is set to play a vital role in the sustainable growth of Abu Dhabi and the UAE. Borouge has adopted a comprehensive sustainability agenda with a strong focus on promoting a zero-waste plastics circular economy. It aims to reduce its Scope 1 emissions 25%, its energy intensity 30% and continuous flaring 100% by 2030. The last 12 months has seen the Group make investments of AED 367mn (US$100mn) in DEWA as a cornerstone investor in its IPO, alongside digital and ecommerce platforms with substantial earning potential and international high growth firms, including US vehicle-focused digital media platform Firefly. Multiply recently posted its Q1-2022 financial results, achieving a net profit of AED 334.9mn (US$ 91.18mn).
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n As part of its participation at Seamless Middle East 2022, Dubai CommerCity, the first and leading e-commerce free zone in the region, highlighted its incorporation of the latest technology trends in its services. The free zone ensures the adoption of advanced technologies to facilitate the process of setting up new e-commerce businesses and drive the growth of the industry. As part of his keynote presentation on the advantages of setting up an e-commerce business in a free zone, Abdulrahman Shaheen, Senior Vice President of Operations at Dubai CommerCity, discussed the importance of Blockchain for enabling seamless trade, highlighting Dubai CommerCity’s collaboration with Dubai Customs to launch the free zone’s own blockchain node. The blockchain node will be offered to Dubai CommerCity’s tenants, lowering their implementation cost significantly and allowing them to leverage the operational efficiencies. “Incorporating blockchain brings major benefits to our clients, which include a reduced cost for e-commerce, allowing importing goods to the local market from the free zone, automated declaration, reduced charges, easy return of goods, automated duty refunds, an integrated and uniform gate-pass process, and reduced documentation,” observed Shaheen. According to Mitch Bittermann, Senior Vice President of Commercials, Dubai CommerCity, some of the most significant e-commerce trends include conversational commerce, super-apps, and the metaverse. In addition, some retail trends include the beacon technology, digital experience mall, contactless shopping, micro-fulfilment centres within shopping malls, among others. The recently concluded two-day Seamless Middle East 2022 brought together hundreds of representatives of startups, innovators, and business leaders in the fields of financial technology, e-commerce, and retail, a press statement concluded.
Emirates boosts its partnership with Huawei n Emirates recently announced the extension of its partnership with the tech giant, Huawei, by signing a Memorandum of Understanding (MoU) at the Arabian Travel Market 2022, to provide further exposure to both brands in the Middle East, China and African markets, through joint activities and collaborations that increase audience engagement. The MoU was signed by Orhan Abbas, Senior Vice President of Commercial Operations –Far East, Emirates and Pablo Ning, President, Huawei Consumer Business Group-Middle East & Africa, in the presence of Adnan Kazim, Emirates’ Chief Commercial Officer. The agreement encompasses marketing collaborations between Emirates and Huawei on joint projects and promotional activities, which aim at expanding their reach in the other’s home market. In addition, both brands will remain committed to achieving mutual benefits, including the continued development of the Emirates Mobile App in the Huawei AppGallery.
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Emirates and Huawei first established a strategic partnership in early 2020, a move that expanded the user base of the Emirates App by making it available on the AppGallery of Huawei’s smart devices.
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Wizz Air eyes potential expansion in Saudi Arabia n Wizz Air reccently signed a Memorandum of Understanding (MoU) together with the Ministry of Investment of the Kingdom of Saudi Arabia, supported by the Saudi National Air Connectivity Programme (a Ministry of Tourism initiative to support the development of the Saudi Tourism Sector). The purpose of the MoU is to explore airline market development opportunities in the Kingdom., a press statement reported. The Kingdom has launched a strategic and ambitious vision to triple passenger traffic in the Kingdom by 2030 as part of the Vision 2030 programme. This will provide unprecedented opportunities for airlines and the aviation supply chain. Wizz Air’s innovative and sustainable ultra-low-cost-carrier model is proven to develop markets by making air travel affordable for more people than ever before. The MoU reflects a shared vision between the parties on the potential Wizz Air could bring to the Kingdom to stimulate new demand, thereby making a
significant contribution to Saudi Arabia’s planned growth. The parties will work together to enable potential investment and
operating models to benefit and add to the Saudi Arabian aviation ecosystem, boosting its tourism industry and significantly increasing its connectivity.
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GWC Marine receives three key ISO Certifications n GWC Marine Qatar has recently received three ISO certifications—the ISO 9001:2015 certification for Quality Management System, ISO 14001:2015 for Environmental Management System, and ISO 45001:2018 for Occupational Health and Safety Management System. GWC Marine is a leading shipping agency in Qatar representing International Shipping Lines (Container), Ro-Ro, Tanker, Break-bulk and Bulk vessels at all seaports in Qatar. The company is delighted to have been awarded ISO 9001:2015 certification, an internationally recognized standard that ensures their products and services meet the needs of customers through an effective quality management system. ISO 14001:2015 certification is an acknowledgement of its commitment to continually evolve its environmental management system, while ISO 45001:2018 looks at occupational health safety measures. The ISO 14000 Environmental Management standard requires companies to actively manage their environmental responsibilities. These certifications reaffirm the company’s ability to provide quality products and services that meet customer and applicable statutory and
regulatory requirements. ISO 45001:2018 is a globally recognized occupational health and safety standard to help organizations improve employee safety, reduce workplace risks, and create safer working conditions. “Receiving this accreditation demonstrates our ongoing commitment to quality and continuous improvement through an effective quality management
system, a journey that began with certification of our parent organization some years ago,” noted Pradeep Kumar, Senior Director, Shipping Services, GWC. GWC Marine, a subsidiary of GWC was established in 2015. GWC Marine offers a slew of services that include full Vessel agency, Crew logistics, Hub Services, Freight Forwarding, Project Cargo Handling, Husbandry, Protective agency, Chartering and Brokering.
Zbooni and Meydan Freezone Agree Strategic Partnership n Pioneering eCommerce platform Zbooni and leading business ecosystem Meydan Freezone recently agreed a strategic partnership to propel the growth of digital commerce businesses in Dubai. The deal will empower entrepreneurs setting up in Meydan FZ with the tools needed to thrive in today’s increasingly digital business environment. In line with Meydan FZ’s objective of providing a holistic hub for new businesses, Zbooni will play a critical role in its fastdeveloping ecosystem of partners. “Dubai is a world-class ecosystem for entrepreneurship and Zbooni shares our vision to empower the next generation of successful start-ups. We look forward to unlocking the value of this partnership and putting our clients in a position to thrive,” stressed Omar Khoory, Chief
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Assets Officer, Nakheel. “Business licensing, smooth payments and effective sales channels are vital for any legitimate company and through this partnership, company founders can get up and running more quickly and conveniently than ever before,” observed Ramy Assaf, Cofounder and CEO, Zbooni. With the ability to create digital product catalogues, and sell via popular messaging services like WhatsApp, Zbooni is a practical solution which resonates with the SME community and customers alike. Beyond making a sale, Zbooni offers real-time payment links, automation of invoices, and business intelligence that is invaluable to a business owner, a press communique concluded.
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ALMAJDOUIE ALMAJDOUIE LOGISTICS: CEO LOGISTICS INTERVIEW
The Pioneering, Titan Logistics Services Provider in Saudi Arabia Almajdouie Logistics facilitates complex logistics operations across the Kingdom seamlessly through expertise and experience
Almajdouie Logistics is a powerhouse in the logistics and supply chain industry in the region. The multi-award-winning company operates in Saudi Arabia, the Middle East and the Far East, providing integrated logistics and comprehensive supply chain solutions to major industries ranging from FMCG to petrochemicals.
The aerial view image of our team transporting components for the Dumat Al Jandal wind farm was selected as photo of the year: over land in the Heavy Lift & Project Forwarding International (HLPFI) Readers vote Awards 2021
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ALMAJDOUIE LOGISTICS: CEO INTERVIEW
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ounded in 1965 by Sheikh Ali Ibrahim Almajdouie, the eponymously named Almajdouie Holding initially started out as a land transportation company in Saudi Arabia’s oil-rich Eastern Province. Headquartered in Dammam, Almajdouie Logistics owns, operates, and integrates its extensive assets and is backed by a team of experts committed to exceeding customer’s expectations. With over 57 years’ cumulative experience serving mega projects; the company is expanding its operation by providing safe, efficient and economical solutions. Over five decades of operation, the group has grown to incorporate multiple business lines across various industries
including automotive, real estate, and steel manufacturing, while logistics has always remained its core business. Today, the group has over 5,000 employees in Saudi Arabia and its associate offices. Global Supply Chain conducted an exclusive interview with Mohammed Almajdouie, CEO, Almajdouie Logistics, and scion of the Almajdouie family, where he spoke fondly and expansively about the growth and evolution of the company founded by his visionary father Sheikh Ali Ibrahim Almajdouie, 57 years ago founded as a land transport company with a single truck asset. Over the decades, the vast Almajdouie Conglomerate has grown by leaps and bounds and is now a vibrant,
multi-faceted group with interests beyond logistics and supply chain into automobiles, industrials, manufacturing, steel and food products among several other industry verticals. According to the CEO, Almajdouie Logistics’ main activities cover ThirdParty Logistics (3PL), Automotive, Food, Financial Services, Education, Manufacturing, Real Estate, and Travel industries. Almajdouie Logistics is an awardwinning company that provides integrated logistics and supply chain solutions to a diverse range of industries in the region, including petrochemical, oil & gas, power & utilities, FMCG & retail, healthcare, and automotive. For more
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ALMAJDOUIE LOGISTICS: CEO INTERVIEW
Mohammed Almajdouie, CEO, Almajdouie Logistics
than 57 years, it has built its reputation on quality, safety, reliability, innovation, and exceeding customers’ expectations.
expectations,” he affirmed.
Extensive assets
In addition to its owned subsidiaries, Almajdouie Logistics has forged selective global partnerships with international market leaders in the supply chain industry, which add to its expertise and expand its know-how in various facets of planning. This includes its partnerships with De-Rijke, GEFCO, Sumitomo, and Sinotrans. “Through our partnership with GEFCO, Almajdouie Logistics launched Arabian Logistics Solutions (ALS), which is the first integrated Finished Vehicle Logistics (FVL) company in the Kingdom of Saudi Arabia. While all vehicle importers have in-house departments for FVL activities, some of them outsource their transportation and customs clearance requirements,” the
Backed by a dedicated team of professionals and an extensive portfolio of assets, including a state-of-the-artcontrol tower, it continues to serve major clients and megaprojects in Saudi Arabia, the Middle East, and the Far East. “Customer satisfaction remains a top priority at Almajdouie Logistics. We pride ourselves on innovation and ingenuity, which stands us apart and enables us to provide bespoke solutions that are as simple or complex as our customers may require. Innovation plays a vitally important role because it improves the way we utilize our capabilities, assets, and resources, which helps us to find new ways of exceeding our customers’
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Expansion
CEO explained. “We are the only company that handles the entire supply chain, which enables us to provide customers with costeffective solutions that result in shorter lead times and increased operational efficiency. Despite the challenges of the pandemic and the global shortage of semiconductors, we continue to deliver products to customers safely and on time. This achievement reflects the strength of our five-year partnership,” the CEO further asserted.
Automation Automation is becoming increasingly prevalent globally, enhancing the safety, stability, and efficiency of operations. It also makes it easier to meet client contractual agreements and deliver a seamless service. Although investing in automation
technology can be expensive, many operators, including Almajdouie Logistics, recognize the long-term benefits. Adopting this technology makes it easier to keep up with market trends and customers’ evolving expectations. “Despite the many advantages of digitalization and artificial intelligence, some people believe that these technologies will make human workers obsolete. However, this is not the case. They are important tools that free people from dangerous or boring tasks so they can take on more intellectually stimulating assignments, making companies more productive,”the CEO observed.
Economic Vision 2030 The Kingdom continues making huge strides towards sustainable development, in line with its Economic Vision 2030. Sustainability is crucial to the future of the logistics industry, which is why leading logistics service providers around the world are taking steps to support this process. “From our use of fuel-efficient vehicles to our involvement with national renewable energy projects such as the Dumat Al Jandal Wind Farm and the Sakakah Solar PV Plant, Almajdouie Logistics is pleased to play a role in shaping a cleaner and brighter future for Saudi Arabia,” the CEO noted. Almajdouie Logistics was recognized at the Transport & Logistics Middle East Innovation Awards 2022 for its work on the Dumat Al Jandal Wind Farm project, which is the largest in the Middle East. The team provided heavy transportation, storage, and heavy lift solutions for the project, which is an essential part of the Kingdom’s National Renewable Energy Programme. During this milestone project, our vehicles carried out more than 850 journeys and traveled more than 600,000 km. The project was a huge undertaking and careful planning was required to ensure a successful outcome. The team enhanced a plug-and-play solution to transport the giant components of the wind turbines, which can reach 100 metres or more in length. Projects such as
RoSPA President Baroness Jolly and Chief Executive Errol Taylor presented the award to Firas Yaqoub Al Saleh - MdR SSHEQ Manager in Dubai.
Almajdouie de Rijke (MdR) MdR is a joint venture between Almajdouie Logistics (KSA) and De-Rijke Group from the Netherlands (NL). MdR recently received the Silver Award from the Royal Society for the Prevention of Accidents (RoSPA) for its commitment to health and safety. The internationally renowned RoSPA Health and Safety Awards recognize organizations that have demonstrated an exceptional commitment to raising the standards of health and safety management. MdR was also recognized by RoPSA with an award for ‘best working environment’ during the Covid-19 pandemic. MdR has a zero-accident target and is committed to compliance with all International, legal and customer requirements like ISO-26000 Corporate Social Responsibility, ISO-22301 Security and Resilience-Business Continuity Management System, among others. Standing as a testament to MdR’s employees’ dedication and commitment to excellence are the awards that MdR has been the proud winner of. The company received the best contractor award from Yanpet in 2021. In 2019, MdR secured its first major project outside of Saudi Arabia, providing all onsite logistics services for a leading company in Oman. Won Bespoke Logistics Project of the Year at the Transport & Logistics Middle East Innovation Awards 2022 in Dubai.
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this reflect the Kingdom’s commitment to diversification, especially in terms of energy production.
Dumat Al Jandal Wind Farm “The image of our team transporting components for the Dumat Al Jandal Wind Farm was selected as Photo of The Year: Overland in the Heavy Lift & Project Forwarding International (HLPFI) Readers’Vote Awards 2021. Approximately 26 international companies submitted entries in this category. Our winning entry shows a convoy of trucks traveling from Duba Port, the nearest Saudi Port to the Suez Canal on the Red Sea, to the project site in the northern Al Jouf region of Saudi Arabia,” the CEO further revealed. The Sakakah Solar PV Plant, the first renewable energy project in the Kingdom of Saudi Arabia, is now connected to the national grid. The project marks a major milestone in the Kingdom’s journey towards sustainable development, in line with its Economic Vision 2030. Almajdouie Logistics provided heavy transport and customs clearance services for this key project.
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In partnership with Almajdouie Motors, the official distributor of Hyundai vehicles in the Kingdom, Almajdouie Logistics recently enhanced its fleet with the addition of a new Hyundai Xcient Fuel Cell truck as part of a pilot project. The vehicle runs on hydrogen fuel and is equipped with advanced connectivity and safety features that will contribute to improving operational efficiency,
Hyundai Xcient Fuel Cell truck
enabling us to provide customers with higher levels of service. “The growing renewable energy sector has huge potential and provides an ideal opportunity for Almajdouie Logistics to utilize our skills and expand our know-how. We continue to record achievement after achievement, awaiting a new challenge as we work towards a safer and more sustainable future,”the CEO concluded.
COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
Saudi Arabia’s Transport Ministry showcases its achievements Under Saudi Vision 2030, the Kingdom’s Transport and Logistics sectors have made several inroads and key accomplishments during the past few year The prudent policies of the Kingdom’s leadership have enabled the Saudi Arabian transport and logistics sectors to race against time to achieve development targets of Vision 2030.
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ultiple accomplishments have contributed to the development of these sectors, which has been the mainstay of the Kingdom’s economy and investments for over the past seven decades following the establishment of the Ministry of Transportation in 1953, which has recently been renamed as the Ministry of Transport and Logistics Services.
The Ministry serves as an umbrella overseeing many sectors, including the Transport General Authority (TGA), which is tasked with enhancing the efficiency and effectiveness of passenger and freight transport services in the Kingdom. TGA focuses on developing logistic services, creating a conducive environment for travel, and encouraging the use of public transport services. In doing so, TGA adopts the highest standards for transport safety, environmental protection, and energy conservation. The Ministry also oversees the General Authority of Civil Aviation (GACA) that is concerned with the development and implementation of policies and protocols governing civil aviation in Saudi Arabia. The authority uses the best communication and IT solutions to ensure air traffic safety, enable national workforce and drive performance transformation in the aviation sector.
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MAWANI The Saudi Ports Authority (MAWANI) also comes under the purview of the Ministry. The authority seeks to enhance capabilities of Saudi ports to make them more competitive, using the best practices to reduce and mitigate the adverse effects that port activities have on the environment. Its mission is to create a safe environment for individuals, assets, and cargoes. Additionally, the Ministry supervises the Saudi Arabia Railway Company (SAR), which focuses on providing streamlined state-of-the-art railway services, while encouraging local companies and increasing local content. It is also focused on recruiting highly qualified professionals, investing in the construction and development of a unified railway infrastructure in the Kingdom and reducing its carbon footprint.
The National Transport and Logistics Strategy (NTLS) The launch by HRH The Crown Prince of the National Transport and Logistics Strategy (NTLS), the most prominent event witnessed recently by the transport sector, has provided a new impetus to the transport and logistics sector. NTLS aims to strengthen Saudi Arabia’s position as a global logistics
hub, connecting three continents. It seeks to enhance all transport services and means of transportation and promote integration among the logistics sector and the modern modes of transportation to support the comprehensive development of the Kingdom. The strategy primarily focuses on the infrastructure development and launch of many platforms and logistic areas, as well as the implementation of advanced operations. It also strengthens effective publicprivate partnerships to achieve four key objectives including to promote Saudi Arabia’s position as a global logistics hub, enhance quality of life in Saudi cities, achieve balanced general budget and improve performance of government authorities.
Additionally, the NTLS aims to establish a new national carrier and a new airport in Riyadh, increase public transport market share to 15 percent and reduce carbon emissions by 25 percent. It also aims to increase sector’s GDP contribution to 10 percent, and implement many projects to expand the railway network, including the construction of the Land Bridge that connects east of Saudi Arabia to the west, in addition to many major projects that will benefit the whole nation. HRH The Crown Prince is the Head of the Higher Committee for Transport and Logistics, which reflects his firm belief in the important role played by the Transport and Logistics Sector and development opportunities it offers to uplift the Kingdom’s economy, enable and support different sectors in the country.
Ambitious objectives
Saudi Vision 2030
The national strategy comprises many major projects and ambitious objectives, which include putting the Kingdom at the sixth place globally in road quality and reducing road deaths to less than eight fatalities per 100,000 population by 2030. The strategy also aims to achieve the handling of 40 million containers, transportation of 330 million passengers via Saudi airports, as well as increasing air freight transport capacity to 4.5 million tons.
Under Saudi Vision 2030, the Kingdom’s Transport and Logistics sectors have made several inroads and key accomplishments during the past few years. The first and the foremost among them is the Kingdom’s rise to the top position in the global road connectivity index for 2021 by the Global Competitiveness Report. It also ranked first in the Arab region in the installation of rumble strips,
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according to the GCC-STAT report. Additionally, the sector saw a 75,000km long expansion in the country’s road networks and a drop in traffic deaths with 13 fatalities per 100,000 population. The sector also launched the Saudi Road Code initiative and implemented many road projects to enhance road safety and improve the maintenance to ensure raising the standard of life through enabling a reliable transportation and a higher level of safety and quality.
The Transport General Authority (TGA) Regarding the public transport sector, the regulatory environment was developed with a series of executive legislations and decisions. The Transport General Authority (TGA) won NDLP Award of Excellence in 2021, as well as the award of the top five government authorities for integration across the logistics sector. As part of its efforts to combat the pandemic, the transport sector launched an initiative to offer free rides to vaccination centers in partnership with the Ministry of Health. It approved 17 ride-sharing applications, resulting in 65.5 million trips. Also, the sector opened 18 business service centers across the Kingdom,
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serving more than 80,000 beneficiaries. The Unified Electronic Contract for car rental services was launched and made mandatory for car rental companies. The automated public transport traffic violations monitoring system and violations appeal service were launched. Freight brokers were obliged to use electronic shipping documents. The sector scored 82 percent on the overall regulatory compliance index and also carried out following programmes and initiatives to improve its overall services: • Implemented an operational life expectancy requirement for foreign vehicles imported to the Kingdom. • Launched a human capital transformation project. • Achieved 100 percent on the index of employment data quality; implemented an initiative for licensing privately-owned vehicles for public transportation. • Issued more than 17,000 licenses for road transport activities. • Launched a project for scheduling truck entry to main cities. Implemented the recommendations of the transport sector’s anticoncealment committee; introduced 18 new regulations and laws. Reduced the minimum allowed model year of
trucks designed for transporting goods that are imported to the Kingdom. • Achieved full nationalization of the ride-sharing sector and registered more than 300,000 male and female new drivers in the sector. With regard to air transport, the sector accomplished many successes including classification of King Abdulaziz International Airport in Jeddah, King Fahd International Airport in Dammam and Prince Mohammad Bin Abdulaziz International Airport in Madinah among the world’s top 100 airports, according to SkyTrax’s 2021 World Airport Survey as well as being classified among the top 10 airports in the Middle East. Saudi Arabia also won the membership of the Executive Council of the Arab Civil Aviation Organization. Saudi Air Navigation Services (SANS) ranked fifth in the world safety award. The Saudi Academy of Civil Aviation won the membership and seat of the Global Aviation Training Office of the International Civil Aviation Organization (ICAO) and was accredited by the Airports Council International (ACIATI). The electronic portal for passenger service was launched. The sector also worked on a corporate transformation project for airports to promote governance of the air transport sector.
Perfecting waste Perfecting waste collection collection
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COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
Saudi Arabian Ministry of Transport and Logistic Services The renamed Saudi Arabian Ministry of Transport and Logistic Services was established in 1953 to oversee all aspects of transport: roads, railways, and ports. In 1975 the Kingdom’s ministries and its public institutions went through a reformation process that led to establishing the Saudi ports, the Saudi railways and the ministry have become responsible for planning, designing, constructing and maintaining the roads and the bridges. Later, a specialized agency for transport was established for planning and supervising the sectors of land and maritime transport and coordinate between its different means, also, to set the regulations governing various transport sectors and issue the necessary licenses for land and maritime transport activities. In 2003 the Ministry of Transportation became the Ministry of Transport. In 2016, the Council of Ministers’ decree stated that the Minister of Transport
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should have supervisory role on the air transport sector, with the title of President of the General Civil Aviation Authority. The authority is responsible for overseeing the operational and safety regulations, the air navigation services and the operations at the Kingdom’s airports. It is worth mentioning that
the Kingdom’s airports are 27 airports: five international airports, 12 regional airports, and ten domestic airports, all of which offer all needed services for air travellers. HE Engineer Saleh Bin Nasser Bin Ali Al-Jasser is the current Saudi Arabian Minister of Transport and Logistics Services, appointed in October 2019.
COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
Additionally, Saudi Arabia signed an agreement with the International Air Transport Association (IATA) for the establishment of a headquarters in the Kingdom. The sector also launched an extension of the new SAL air cargo terminal at King Abdulaziz International Airport in Jeddah and launched a classification program for air transport and airport service providers. Regarding the maritime transport sector, the Kingdom ranked fifth as world’s fastest country in handling container ships, according to the UNCTAD index. Saudi Arabia also ranked first in the Arab World and 20th globally in terms of shipping tonnage. It also won International Maritime Organization’s (IMO) council membership.
Global classification of Saudi Ports’ performance The global classification of Saudi ports’ performance increased to rank 16 in terms of handled cargo, according to Lloyd’s List annual report. Jeddah Islamic Port, King Abdullah Port and King Abdulaziz Port were listed among the world’s largest 100 ports. The sector also signed an agreement for the establishment of Middle East’s largest integrated logistics zone in Jeddah Islamic Port with full investment by Maersk shipping company. Another
contract was signed for the establishment of Middle East’s largest terminal for grain and feed import and processing. Additionally, the sector announced investment opportunities for developing and operating multipurpose terminals at eight Saudi ports. With regard to railway, all sector’s regulatory operations were completed and integrated and assets transferred to the Saudi Railway Company (SAR). A concession agreement for operation of Riyadh Dry Port was signed to enhance operational efficiency and achieve transportation of 1.5 million containers between Riyadh and Dammam by 2030. Al-Qurayyat passenger railway station was launched and fully integrated with the North-South Railway Line. Additionally, Haramain High Speed Railway was fully reoperated. The sector also fully automated the technical connection between SAR East, North, Haramain High Speed Railway networks. On another front, SAR managed to transport 21 million tons of minerals and goods in 2021, saving some 1.2 million truck trips, which reduced carbon emissions by more than 1,200 tons.
Saudi Railway Company SAR also transported more than 3 million passengers across its three railway lines
and obtained risk management ISO 22301 certification and quality ISO 9001 certification. It was also granted the local content certificate by the Local Content and Government Procurement Authority. Regarding the logistics sector, the Council of Ministers approved a decision concerning the establishment of the Logistic Services Agency. The unified logistics license was launched to streamline process for investors with more than 34 local and international companies getting licenses to conduct logistic activities in the Kingdom. As part of this, seven activities were integrated into one process. The Saudi Logistics Academy was also inaugurated. HRH The Crown Prince’s support had a profound impact on the realization of such achievements made by the sector as it seeks to achieve the objectives of the ambitious Vision of the Kingdom and its wise forward-looking leadership that created opportunities and enabled people to actively contribute to the development and welfare of their country. The transport and logistics sector will move forward to deliver new successes through its planned projects and programs and in line with set schedules, for achieving the objectives of the National Transport and Logistics Strategy, which is a key pillar of Saudi Vision 2030 programmes.
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COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
Saudi Arabia’s burgeoning economy to peak over US$ one trillion in 2022—IMF Forecast Under Saudi Vision 2030, the Kingdom’s Transport and Logistics sectors have made several inroads and key accomplishments during the past few year With stable growth in non-oil sectors and the spike in oil prices, Saudi Arabia managed to blunt off the effects of the pandemic. The country reported a GDP of about US$ 833 billion in 2021. Economic growth of the country is predicted to rise by 6.8 to 7 percent in 2022 due to higher oil prices, before returning to a normal growth rate 3.8 to 4 percent in 2023, affirms a recent Frost & Sullivan Report.
TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan
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he financial growth metrics are looking good for Saudi Arabia on all counts. According to recent International Monetary Fund (IMF) forecasts, the size of the Kingdom’s economy will exceed US$1 trillion in 2022, for the first time in its history, it was widely reported in the regional and international media. The International Monetary Fund (IMF) raised its 2022 forecast for Saudi Arabia, suggesting that the Kingdom’s economy is set to grow by more than two-fold amid a record-high surge in oil prices. The IMF’s latest report entitled ‘World Economic Outlook: War sets back the global recovery,’ stated that it revised its 2022 economic forecast for Saudi Arabia, anticipating a 2.8 percent growth, “reflecting higher oil productions in line with the OPEC+ agreement, reinforced by strong-than-anticipated growth in the non-oil sector.” The Fund’s baseline fiscal projections are primarily based on its understanding of government policies as outlined in the 2022 budget, the report stated, adding that export oil revenues are based on World Economic Outlook baseline oil price assumptions and their understanding of current oil policy under the OPEC+ agreement. Their monetary projections for the Kingdom were based on the continuation of the exchange rate peg to the US dollar currency, the report added. Saudi Arabia’s economy grew by 9.6 percent in the first quarter of 2022, compared to a year earlier, according to flash government estimates in early May 2002, as a recovery in the oil sector drove the strongest growth in more than a decade. During the first quarter, oil activity in
COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
Saudi Arabia increased by 20.4 percent and non-oil activity by 3.7 percent, the estimates showed. If the estimates are confirmed, they would mark the highest growth rate since 2011, the Saudi General Authority for Statistics stated. These encouraging statistics and reports clearly bode well for the Saudi Arabian economy and a surge in logistics and supply chain capital investments and business growth in this key sector in the Kingdom as reiterated by TJ Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan. Global Supply Chain (GSC): How would you characterize the state of the current Saudi Arabian economy—general comments, brief? TJ Sivan (TJS): After more than two years from the economic dip that resulted from the onset of the Covid pandemic, Saudi Arabia has managed to register strong
growth and recover better than expected in the latter half of 2021. With stable growth in non-oil sectors and the spike in oil prices, Saudi Arabia managed to blunt off the effects of the pandemic. The country reported a GDP of about US$ 833 billion in 2021. Economic growth of the country is predicted to rise by 6.8 to 7 percent in 2022 due to higher oil prices, before returning to a normal growth rate 3.8 to 4 percent in 2023.
growth stage. Oil output is predicted to grow by 11 to 14 percent in 2022 after the conclusion of OPEC+ production cutbacks in December 2022. The oil sector contributes about 40 percent of GDP and around 60 percent of government revenue, which is likely to support infrastructure investment growth; considering logistics as a priority area as part of Vision 2030, investments in logistics infrastructure is expected to increase.
GSC: The Saudi economy is being boosted by surging oil prices and revenues. What implications does this have for the Kingdom’s economy in real time and what is your assessment of the same? TJS: A key factor in the recovery of the Saudi Arabian economy was the hike in oil prices. With increased prices, Saudi Aramco benefitted from this surge as it almost doubled its profits. The profit from oil brought the country from recovery to a
GSC: Covid-19 is now on decline. Relatively speaking, how much of an economic fallout has the pandemic had on Saudi Arabia had vis-a-vis other regional neighbours and countries? TJS: In 2020-2022 Saudi Arabia fared better when compared to other GCC countries. Despite limited restrictions, the Kingdom’s growth was high compared to its neighboring countries, and it managed to recover its economy fairly well in 2021.
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COUNTRY REPORT: KINGDOM OF SAUDI ARABIA Saudi economy during 2021-2022
increased significantly and reached about SAR 231 billion (US$ 61.6bn) in its non-oil sector in 2021, seeing 37percent growth from the previous year.
The Saudi Economy remained strong compared to neighbouring countries such as Kuwait and UAE in 2020 and recovered well in 2021 with a growth of 3.2 percent. It is expected to perform better in 2022 compared to other neighboring countries. GSC: As things stand currently, what are the key takeaways and highlights of the Saudi economy? TJS: The progress regarding the nonoil sector development is estimated at 4 percent growth this year, and the oil sector is predicted to grow between 11 to 14 percent. Increased private consumption, religious tourism, and more investments by the Public Investment Fund (PIF—the Saudi Sovereign Wealth Fund) and other government organizations will play a pivotal role in increasing GDP from non-oil sectors. The boom in ecommerce and increased cross-border trade are expected to
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support the growth of the logistics industry. GSC: Where are the new opportunities and challenges for investment in Saudi Arabia and which sectors hold the most promise and potential? TJS: New opportunities for Investment in Saudi Arabia are in petrochemicals, logistics, construction, mining, manufacturing, industrial and tourism. Challenges within the investments could be related to Covid-related disruptions, increasingly changing business atmosphere and security challenges. However, the challenges are few and the opportunities outweigh the challenges by a huge number. As Saudi Arabia is moving towards developing its sectors with full force, foreign investments are increasing, with PIF as the government-led investor fuelling the growth of various sectors. The most promising sectors are
manufacturing, industrial and tourism, with Giga smart city projects under construction. GSC: Saudi Vision 2030 has been the logistics and supply chain and transportation infrastructure the centerpiece of the Kingdom’s economy…. comment please. TJS: Development of infrastructure is one of the main priorities of Saudi Arabia for its ‘Vision 2030’, as it plans to become the logistics hub of the region, connecting Europe, Asia and Africa. The government has taken several initiatives for a smart government, Industry 4.0 and a cloud-based platform to support its logistics activities. These initiatives will incorporate the newest technologies like Blockchain, 5G, BigData, AI, Robotics and IoT. PIF’s Warehouse Automation project offers a fully automated warehouse with robotics. Regarding port automation, the
COUNTRY REPORT: KINGDOM OF SAUDI ARABIA
stagnate in terms of development. Since Saudi Arabia has a geographical advantage, it aims to establish itself as a logistics hub and therefore improve its economic stature. By 2030, Saudi Arabia intends their transport and logistics sector to contribute 10 percent to the total GDP, which stood at around 6 percent in 2021.
Saudi Global Ports has invested in developing key infrastructure in King Abdulaziz Port in Dammam with a focus on sustainable and advanced systems. Airport development projects are being undertaken with a focus on increasing air cargo capacity. Road and railway projects are also expected to strengthen logistics capabilities of Saudi Arabia further. GSC: How significant is the logistics and supply chain industry to Saudi Arabia, the region’s biggest economy? TJS: To diversify its economy, Saudi Arabia plans to construct economic cities and special economic zones. The country wishes to open tourism and increase trade facilitation. As the supply chain lies in the heart of the most important sectors contributing to the GDP, logistics is crucial for these sectors to flourish. Without a resilient supply chain, the growth of various sectors might get hindered and therefore the sector will
GSC: What kind of impact will giga projects like Neom, AMAALA, Red Sea Development Project and Qiddiya to name a few, have on the logistics sector in the Kingdom? TJS: Promising the latest technology and clean energy in these Giga projects, the Kingdom aims to commercialize them and build them into tourist destinations. As the business will develop in the region and new economies will emerge, logistics services are required to serve the areas that would face a demand from customers. As customers pour in and the city expands, logistics sector will face an increasing demand for an integrated smart supply chain. The Private sector is contributing to take advantage of this opportunity. Maersk’s Integrated Logistics Park is under construction in Jeddah Islamic ports and intends to offer extensive Warehousing, distribution and e-commerce services. In tandem, public sectors like Saudi Ports Authority (MAWANI) and DP World Jeddah are working on expanding the Container terminal in Jeddah Islamic Port. In addition, the Neom, AMAALA, Red Sea Development and Qiddiya projects are all expected to incorporate the newest technologies and be digitally smart. This will require smart logistics services and a more significant demand base to cater to. GSC: How important is Aramco to the Kingdom’s economy? What implications do oil revenues have for the logistics sector in the country? TJS: Saudi Arabia’s oil sector is responsible for roughly 40 percent of its income. With such a high percentage of contribution to GDP, it is the largest sector constituting the economy of the
Kingdom. Aramco is the largest oil and gas company in the country, accounting for the highest percentage of share compared to its competitors. It contributes largely to Saudi Arabia’s economy and has also participated in developmental programs. The company plans on developing and incorporating technology in its strategy. It intends to focus on doubling its production and making its business stronger by expanding into chemicals and include renewables as well. GSC: What has been the impact of the pilgrimage-hajj-umrah-ban this year on the economy? TJS: In 2019, the number of religious tourists in the Kingdom was approximately 19 million for Umrah and 2.5 million for Hajj. Collectively they accounted for about 6-8 percent of the total GDP, including oil and 19-21 percent in the exclusively non-oil sector. However, restrictions have been eased up since 2021, during which the government allowed about 60,000 local pilgrims only for Hajj and nearly six million local and international pilgrims for Umrah. This year, Saudi Arabia expects to welcome one million pilgrims for the annual Hajj season and Umrah to recover its economy. GSC: Based on current trends and economic indices, what is Frost & Sullivan’s prognosis for the Saudi economy and the logistics and supply chain sector for 2021-2022? TJS: Saudi economy during 20212022 increased significantly and reached about SAR 231 billion (US$ 61.6bn) in its non-oil sector in 2021, seeing 37percent growth from the previous year. It is expected to grow at a higher percentage in 2022 with the development of non-oil sectors in Saudi Arabia. Concurrently, as the economy develops, the supply chain sector will see a high demand in relation to increased business activities. The industry is said to grow at a CAGR of around 4-5 percent between 2022-2025, as Saudi Arabia’s vision 2030 will progress.
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HELLMANN WORLDWIDE LOGISTICS-SAUDI ARABIA
“Saudi Arabia is an attractive market for 3PLs” — Lars Nielsen, Managing Director, Hellmann, Saudi Arabia
Hellmann Worldwide Logistics operations gain momentum in the Kingdom over the nine years since its founding Saudi Arabia’s strategic geographical location at the confluence of three continents presents tremendous growth opportunities for the logistics and supply chain sector opines the resident supremo of Hellmann Worldwide Logistics in the Kingdom.
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ince its inception in Saudi Arabia in 2013, Hellmann Worldwide Logistics has demonstrated a proven track record and expanded operations. In an exclusive interview with Global Supply Chain, Lars Nielsen, Managing Director, Hellmann Worldwide Logistics, Saudi Arabia, reviewed the progress of the company over the nine years years since its establishment in the Kingdom and prospects for the future. Global Supply Chain (GSC): How and why is Saudi Arabia important for Hellmann Worldwide Logistics? Lars Nielsen (LN): It is obvious that the population, size of the country, the presence of vital energy resources and other key downstream and related
Lars Nielsen, Managing Director, Hellmann Worldwide Logistics, Saudi Arabia, is an international Logistics Director with almost 30 years of experience gathered on three continents (the European Union, the Americas and APAC-Asia Pacific). Lars spent the last 11 year working in the logistics segment in Saudi Arabia where he currently resides and is responsible for all Hellmann entities in the Kingdom.
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HELLMANN WORLDWIDE LOGISTICS-SAUDI ARABIA
derivatives among several other ancillary industries in Saudi Arabia demands strategic attention from anyone, both regionally, but for some aspects even globally and that was initially why we established our entity here. Saudi Arabia is an attractive market for any 3PL, but its geographical location presents major opportunities in the regional Logistics landscape and when that is considered, the attractiveness multiplies. In addition to that, there is also an increasing trend in the number of our global customers taking advantage of the Regional HQ Programme in Saudi Arabia, and when they go through such major organizational transformations, we are able to provide the much-needed stability and services to their supply chains. GSC: How are you doing in 2022, post pandemic and what are your projections for the remainder of the year? LN: Year-to-date we are exceeding expectations and I cautiously foresee an upward trend in our growth trajectory, but this is of course will all directly impacted by rapidly changing global factors. Our key focus is on securing stability and uninterrupted supply chains through long term commitments with our partners both on the customer side as well as supplier side.
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GSC: How would you characterize your equation with Saudi Chemicals Company? LN: Saudi Chemicals Company is a perfect marriage of one of the strongest distribution networks in the kingdom and internationally benchmarked systems and processes backed by a fully compliant QMS tailormade for Healthcare Products. The result is a unique setup in a market otherwise only served by local distributors and the demand for our services is growing in line with tighter Government regulations and increased influence of international Healthcare Companies. GSC: Do you anticipate more new business partnerships in the Kingdom? LN: Forging partnerships are part of our DNA so this is will always remain a possibility and priority in some shape or form. GSC: Saudi Vision 2030 has made the logistics and supply chain and transportation infrastructure the centerpiece of the Kingdom’s economy…. how will it boost the logistics sector in the country? LN: The simple answer is“in all ways”!! Working in the logistics sector in Saudi Arabia you can almost feel the vibe no matter where you go, and it truly is a great
transformation taking place in all aspects. Very frequently you see new major announcements from all types of stakeholders, private as well as government and it’s ranging from multi-million-dollar investments to groundbreaking changes in regulation. What I find most refreshing is the Government’s approach to this, there is a constant urge to support the industry and make our lives easier. With the efforts of Government bodies like the Ministry of Transportation and the Ministry of Investment there is no doubt in my mind that the future Saudi Arabia will take on a much more dominant position in the regional Logistics landscape GSC: What is your vision, for the medium and long term for Hellmann in Saudi Arabia going forward? LN: In the current highly volatile market I believe we are ahead of the curve when it comes to stability so next comes growth, growth and more growth–both horizontally and vertically. We will never be the biggest, but we aim to be the best in our segment and the current market in Saudi Arabia is experiencing the consolidation of big players. At the same time, quite a few new local entrants have emerged so there’s plenty of room for us to grow and solidify our position as experts in our field.
ROUTEQ AT SEAMLESS 2022
RouteQ showcases innovative delivery-routing solutions at Seamless 2022 Company hosted panel discussions on the rise of hybrid-delivery models used by companies to combine outsourced and in-house delivery capacity
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outeQ, a provider of cloud-based, AI-driven solutions for route planning, recently participated at the recently concluded Seamless Middle East 2022, the regional e-commerce industry’s top trade event, which took place at Dubai World Trade Center. The participation closely followed RouteQ’s February announcement of the opening of its Dubai operations in preparation for expansion across the Middle East, a move taken to plug the critical gaps in the region’s delivery-fleet operations. “At a time when many supply chains have been broken or modified, the pressure is on retailers, e-grocers, and logistics companies to improve metrics around last mile delivery — the most expensive part of the delivery process. Last-mile delivery can account for as
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much as 25% of an order’s total cost. But unlike the first mile, it can be significantly optimized with help from technology,” affirmed Vladimir Nesterov, General Manager, RouteQ, Middle East.
Last-mile deliveries Last-mile delivery logistics can be very fragile when not organized thoroughly. Factors like wrong addresses, traffic congestion, lack of parking, and poor communication with the courier can easily have a negative effect on the delivery process. RouteQ manages more than 300 such parameters with special tags describing the conditions for vehicle routing, such as the presence of equipment in the vehicle for a particular parcel, as well as complex work and rest schedules for couriers. These special tags also overlay with the
most precise traffic forecast to further increase efficiency. On Day One of Seamless Middle East 2022, RouteQ hosted a discussion on the rise of hybrid-delivery models, used by companies to combine outsourced and in-house delivery capacity to effectively meet transportation and human resource demands. The session — which featured Dharmin Ved, CEO of 6th Street and Vladimir Nesterov, GM for Middle East at RouteQ — covered issues such as how to choose between in-house, outsourced, and hybrid models and the quandary of in-house versus outsourced fleets with regard to maintaining a balance with deliverymanagement technologies. Discussing the role of hybrid delivery models for companies of various sizes, Dharmin commented,“Hybrid solutions will not go away and are clearly here to stay. As
ROUTEQ AT SEAMLESS 2022
business volumes grow, the in-sourced transportation model may not be able to cope up with increased demand. Also, for seasonal demand it is best to rely on external transporters. The hybrid model can be adapted to take care of both the peaks and troughs demand situations.” In explaining the various parameters that organizations should consider when deciding if hybrid delivery models are suited for their business, Vladimir said, “Cost per order (CPO) is one of the most important factors to be considered when determining which delivery model is best suited for your business. If you look at businesses like e-grocery for example, it could account for almost 40% of P&L with last mile accounting for almost 25% of that. Other key considerations include customer satisfaction index, the size and scale of the business, route planning, the nature and product lines of the business, the clientele, and the geographical spread.” In addition to discussing hybrid delivery models, both executives stressed the value of automation in streamlining and optimizing logistics operations with Vladimir pointing out that automation can cut logistics costs by 20% and ensure up to 98% of deliveries are accurately delivered.
Profile RouteQ is a plug-and-play AI-powered software solution that makes it possible to easily level-up delivery operations. It lets you sustainably manage your fleet while increasing customer satisfaction and making more money at the same time. RouteQ’s major value lies in traffic data, which is harnessed to precisely estimate delivery arrivals while making 99% of deliveries on time (and delivering 30% more orders with the same-sized fleet). The software offers a level of transparency into the delivery process that hasn’t been seen before — everyone from customer service to the delivery person to the customers themselves has a clear window into the entire delivery process and can easily communicate with each other there. RouteQ offers two major services: automatic route planning and improved
Dharmin Ved, CEO, 6TH Street Dharmin Ved has made his mark in the fashion retail industry as the CEO of 6TH STREET, the latest Apparel Group venture in the digital space. Being qualified as a Chartered Accountant in the UK, Ved’s first job was at Ernst & Young, London. Soon after, he was appointed as CEO of LM Exchange, one of the largest money exchange businesses in the UAE and Oman. Ved made his debut in the fashion retail industry by taking on the role of Managing Director of Apparel Group in Russia. 6TH STREET was launched in November 2016 as a start-up of only five team members and has since, rapidly grown to become one of the top e-commerce destinations in the region. courier monitoring and communication. The automatic route planning system quickly finds the best routes for companies with lots of orders across a variety of logistics scenarios. It uses historical traffic data and precise arrival time predictions to optimize these routes. It can formulate routes while accounting for various conditions like
freight dimensions, transport capacity, acceptable delivery time margins, the throughput of warehouses, and beyond. The platform also supports more than 300 specific restrictions, like the presence of equipment in the vehicle for a particular parcel, as well as complex work and rest regimes for drivers who spend multiple days on the road at a time.
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ROUTEQ AT SEAMLESS 2022
Getting same-day delivery right… on time, every time
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Mastercard survey from late 2020 showed that 73% of UAE consumers were doing more online shopping than they had before the pandemic, and groceries topped the list of those purchases. Online grocery shopping is a prime example of the same-day delivery (SDD) culture that has become a part of consumer expectations in recent years, and these expectations extend to a range of other goods. If any business is prepared to offer SDD, then all its competitors must follow suit. And they must do so with excellent precision because the modern shopper will not stand for poor experiences. But SDD is a tricky proposition involving a range of factors that have to be managed in concert. Here are four tips that businesses can use to get SDD right every time.
1. Managing resources and capacity Deliverers must begin by understanding what vehicles, drivers, and warehouse personnel are available to them. Also
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By Vladimir Nesterov, General Manager – Middle East, RouteQ important is being mindful of demand surges, using historical data. Some, such as holiday seasons, are easier to predict than others. But even with COVID, once lockdowns were announced, many businesses were able to foresee the increases in demand. Given the resources on hand and the expected demand, organizations can appropriately cap same-day orders to coincide with their capabilities, bringing in other factors such as product availability. A customer will be more forgiving of being told up front that SDD is not available than of being promised it and subsequently let down.
2. Location, location, location Across the UAE, the speed of construction has led to a profusion of imprecise addresses. Geolocation challenges can be overcome by modern logtech solutions that offer customers widgets that can send SMS or WhatsApp messages to their contact numbers. The customer can then collaborate with drivers in real time to
pinpoint their location using a rich map interface. Customer interactions are translated into accurate GPS coordinates for delivery drivers.
3. Smart route planning While many companies still manually plan routes, digital solutions are far more efficient at covering all the factors involved. Companies must fulfil the maximum number of deliveries with the minimum number of vehicles. Or, if the level of service time is the priority, they may want to dedicate the maximum amount of time to customers at their location, letting them check the produce, for example. Either way, optimizing the number of vehicles in service on a given day requires factoring in physical size of goods, the type of goods (perishable or non-perishable), fleet size, vehicle capacity, the need for special equipment (such as freezers or cold boxes), and the geographical distribution of locations for deliveries and returns. After inputting all the operational parameters and restrictions, route
ROUTEQ AT SEAMLESS 2022
planning solutions overlay the data with a traffic forecast — based on historical data — giving organizations the ability to predict traffic conditions at any time of the day or on any part of the route. This will enable the diversion of drivers from congested roads, for example. Some modern routing platforms can plan thousands of deliveries within an hour, while reducing costs by 20% and achieving accuracy rates of 98%. Another important part of route planning in SDD is additional allowance for enhanced services around cut-off times. Often, a company will receive 90% of its daily orders before the cut-off time and the remaining 10% within the following two hours. While previous practice may have made the 10% wait for the following day, customer loyalty can be greatly increased by making another iteration of deliveries and distributing the remaining 10% to on-route delivery vehicles for delivery on the same day too. Good route planning platforms will optimally build in these additional iterations and allow for ad hoc pick-up points, such as mobile warehouses and dark-stores, to be integrated into the journey of an in-the-field vehicle.
customers, as happens with food-delivery companies like Deliveroo. This is by far the best way to ensure customers are home and ready to accept their packages. Logtech systems provide a range of tools for keeping both drivers and customers informed of progress. Routes, and ETAs are updated in real time for customers, and couriers in the field have access to an order execution list and interactive map of the delivery area. Any action by the driver to adjust the route is recorded by the platform and relayed to managers and customers. And couriers can also communicate with managers and customers directly from their mobile field app.
On time, every time Expectations can only be managed by transparent information, and workflows that never fail. Once businesses commit to a workflow, customers expect it to complete at the date and time promised. Logtech platforms have advanced to the level where they are capable of managing hundreds of data points to optimize all kinds of deliveries. Same-day demands are the most difficult to fulfil, but through investment in the right methodologies and technologies, regional businesses will soon see that same-day deliveries can be on time, every time.
4. Optimizing service times at drop-off points Knowing how long the delivery person needs at an address is crucial as time spent at each location can have a significant impact on efficiency and costs — not to mention customer satisfaction and loyalty —if not properly managed. Drivers might struggle to find the exact address, or parking, or may arrive at a delivery location only to find the customer is not at home. And cash on delivery (COD) shipments can be slowed down if the customer does not have the cash to hand. Stretched service time can have a knock-on effect, as a late arrival for the next address may directly lead to the same factors — the customer being absent or not having cash ready for a COD delivery. Again, digital platforms can alleviate these issues by providing two-way monitoring capabilities to drivers and
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DHL-VOLVO PARTNERSHIP
DHL and Volvo Trucks partner to introduce zero emission electric trucks The intended order includes 40 electric trucks package deliveries in urban transport
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olvo Trucks and Deutsche Post DHL Group have signed a cooperation agreement to accelerate the shift to zero exhaust emission vehicles. DHL intends to intensify its transition to heavy electric trucks by deploying a total of 44 new electric Volvo trucks on routes in Europe. The announcement was made in a joint press communique. The intended order includes 40 electric trucks of the model Volvo FE and Volvo FL, to be used for package deliveries in urban transport. Electric trucks for longer routes are also part of the scope and DHL has decided to begin using Volvo trucks for regional hauling, starting with four Volvo FM Electric trucks in the UK. The first trucks have been ordered already, six by DHL Parcel UK and two by DHL Freight. This will result in annually savings of nearly 600 tons of carbon dioxide and nearly 225,000 litres of diesel fuel for Deutsche Post DHL Group.
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Commitment “We are committed to meet growing customer demand for green and sustainable solutions and achieve our long-term goal of net zero emissions by 2050. As a logistics service provider, the conversion of our vehicle fleet is an important lever to help us avoid carbon dioxide emissions on the road as well,” explained Pablo Ciano, Executive Vice President for Corporate Development, Deutsche Post DHL Group. An important factor in DHL’s decision to ramp up the transition to zero emission vehicles is due to the positive experience it has with using an electric Volvo truck in London since November 2020 – making last mile deliveries into the West End shopping district. The vehicle was the very first fully electric commercial heavy truck used for urban logistics in the UK. “DHL is an important global logistics provider, committed to reduce its impact
on climate change. Together we can make a difference for the better and we will work in the spirit of partnership, aiming to reach our science-based targets to reduce our climate impacts,” commented Roger Alm, President at Volvo Trucks.
Cooperation The cooperation involves adoption of new Volvo technologies and joint development activities within the field of electrification. The agreement also includes analysis by Volvo Trucks of DHL’s transport operations, with the goal to ensure successful deployment of tailormade electrical transport solutions. Volvo Trucks is leading the market for heavy all-electric trucks in Europe, with a market share of 42% in 2021. Already in 2019, Volvo Trucks started serial production of electric trucks, as one of the very first truck brands in the world to do so. The company has delivered electric trucks to a wide range of customers in Europe, North America and Australia.
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GWC QATAR STADIUM 974
GWC braces for FIFA World Cup Qatar 2022
TM
The Qatar logistics colossus is taking on the onus of one of the world’s biggest and acclaimed sporting events in its stride GWC is the first regional supporter and official logistics provider for the FIFA World Cup Qatar 2022™. As the leading provider of logistics and supply chain solutions in the State of Qatar, GWC occupies a place of pride in the country’s logistics landscape. It also has its work ahead clearly cut out.
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WC was established as a Qatari shareholding company and listed on the Qatar Stock Exchange in 2004; the company began operating in 2005 with a single small warehouse and a handful of vehicles. GWC has since grown exponentially and now offers the full spectrum of highquality solutions to a variety of industry verticals in the country. The company is backed by a team of committed and innovative experts in the field and supported by state-of-the-art IT systems and logistical infrastructure, including the largest self-contained logistics hub in the State of Qatar, the
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Logistics Village Qatar. Now, new logistics trends are beginning to take shape in the Qatari business world, pioneered by Gulf Warehousing Company (GWC).
FIFA World Cup Qatar 2022TM Now as the Official Logistics Provider for FIFA World Cup Qatar 2022TM, GWC offers 3.84mn sqm logistics footprint in Qatar, and expanding, with over 250,000 pallet locations. The company provides a wide range of logistics and ancillary services, utilizing a global freight network.
Ranjeev Menon, Group CEO, GWC
GWC QATAR
The 2022 World Cup in Qatar kicks off on Monday, November 21 and the 28-day excitement and fanfare will climax with the nail-biting final is scheduled for Sunday 18 December at the Lusail Stadium in Doha. As the countdown begins to an exciting era, Global Supply Chain conducted an exclusive interview with Ranjeev Menon, Group CEO, GWC on wide range of subjects both FIFA and non-FIFA related. Global Supply Chain (GSC): Give us the extent and scope of GWC’s logistics services offerings for the FIFA World Cup 2022 and where does the company see itself after this mega event? Ranjeev Menon (RM): Let me start by saying that we, at GWC, are very excited and honoured to be the Official Regional Supporter and Logistics Provider for FIFA World Cup Qatar 2022TM. We began our sports logistics journey in 2006 and have come a long way in short period of time. We started conceptualizing the logistics for the World Cup years ago and our ambit of services range from venue
management, broadcasting, and cold chain logistics, to shipping, customs clearance, warehousing, and distribution, down to the logistics management of merchandise, souvenirs, food, and beverage. GWC will be managing all details, large and small, and will provide end-to-end planning, tracking and execution, from point of origin to point of use, in addition to highly coordinated reverse logistics. We offer this breadth of services with near to 4 million square meters of owned integrated logistics infrastructure, a global freight forwarding network, more than 1,600 specialised transportation vehicles, best in class IT solutions, comprehensive tracking systems, and highly competent team of professionals. GSC: As a premier provider of logistics services, GWC has a long & successful track record of developing and managing bespoke logistics hubs in country including Logistics Village Qatar, Ras Laffan Logistics Hub. How significant are these projects and how do these
empower GWC? RM: These projects are the backbone of our organisation and give us the tools to deliver the best to our customers and serve different industries and verticals. For instance, Ras Laffan and Messaieed, caters to the logistics requirements of oil and gas industry. The 380,000 sq m infrastructure contains the first ISO-certified and government approved warehouse for third-party storage of hazardous materials. On the other hand, LVQ is the region’s largest and most modern privatelyowned and self-contained full-service logistics center which plays a major role in FIFA World Cup Qatar 2022TM. GSC: What is the range of storage solutions on offer to potential renters of the warehousing units? RM: A whole range of options is offered to our tenants starting with flexible scalability opportunities within GWC’s 3.84 million sq meter of logistics parks presence in Qatar and across the GCC, which include end-to-end supply chain
GWC Supply Base at Ras Laffan West Side Services Area
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GWC QATAR
GWC Al Wukair Logistics Park master plan
horses from 20 European countries, who first travelled to Amsterdam, which was the central hub and then to Doha. GWC had full on-the-ground teams in origin and destination, handling the export and import into and out of Qatar, providing a veterinarian and a professional air groom per flight to accompany horses all the way. In addition to the transport of the horses, GWC also has the expertise to transport and install temporary stables in which the horses lodge. This requires the cooperation of the company’s freight and relocations teams as they ensure the proper handling of the various equestrian equipment on both legs of the trip.
solutions ranging from contract logistics, relocation, sports, fine art to freight forwarding and consulting services. GSC: GWC is also big in equine / equestrian logistics……please elaborate. RM: We have managed to make a mark very swiftly in equestrian logistics by providing end-to-end solutions for the transport of horses and related assets
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by land and air and partnering with the best grooms and veterinarians during the transport and quarantine. GWC has been instrumental in supporting several international equestrian events held in Qatar, such as the CHI AL SHAQAB presented by Longines 2022 held earlier this year. We had first handled the logistics for this event in 2015 where GWC received
GSC: These and other iconic projects constitute a big leap for the company; how do these projects line up with the Qatar National Vision 2030? RM: GWC is committed to promoting and help deliver the goals of Qatar National Vision 2030 by supporting MSMEs towards the diversification of the economy. Through our logistics parks we offer MSMEs, which play a critical role in innovation and development, a one-stopshop to thrive and compete in today’s markets.
GWC QATAR
For instance, our Al Wukair Logistics Park, which is strategically located in south-central Doha, between Hamad international airport, Hamad seaport, and Al Majd road is designed to cater to the needs of micro, small, and mediumsized businesses in various industries. It allows new businesses to take advantage of the park by setting up a business there, or by using its services to support their existing business. The park is also equipped with all the necessary facilities, including storage units, office space, and workshops, which allows businesses to operate from the Park without having to set up their infrastructure. GSC: How healthy is the logistics sector in Qatar and what is the growth potential? RM: I believe it is doing well. We did have to face many challenges over the last two years, but the sector has been steadily getting back on track. With massive investment in infrastructure, numerous new projects, and an e-commerce boom, Qatar’s logistics sector has been expanding rapidly, a development that GWC is committed to support as a leading logistics provider and the Authorized Service Contractor of UPS in Qatar. The country’s logistics market has been growing steadily over the past five years – it is estimated to be valued at more than USD 7.5 billion and is estimated to register a CAGR of more than 7% during 2021-2026. GSC: How significant was GWC’s role in the Pharma chain related to distribution of Covid-19 vaccines? RM: GWC, played an essential role in ensuring timely and sufficient delivery of Covid-19 vaccine in Qatar, thanks to our relationship with UPS as their Authorized Service Contractor in the State of Qatar, we were entrusted with this task to deliver these life-saving vaccines. GWC has its own pharmaceutical facility, offering 25,000 square meters of storage space and equipped with temperature controlled, refrigerated, and frozen chambers built to the latest specifications. This facility was also the first in Qatar to be licensed to offer 3PL
Nawaf Al Emadi receives the Qatar MoL Award.
GWC recognised by the Ministry of Labour for its commitment towards occupational health and safety GWC was recognised for its persistent and pioneering work towards safeguarding the health and safety of its employees, at the Occupational Safety and Health Conference, with the theme ‘Occupational Safety and Health - Commitments and Responsibilities’. “GWC is committed towards ensuring the protection of workers’ health and preventing accidents, injuries and illnesses arising out of, or occurring due to work, by eliminating or minimising the causes of hazards inherent in the working environment. Through our various initiatives we diligently and regularly ensure that the health and safety of our employees remains our top priority,” asserted Nawaf AlEmadi, Executive Director, GWC. This Conference was held as part of the World Day for Safety and Health at Work, which falls on April 28 annually and was organised by the Qatar Ministry of Labour (MoL), in cooperation with the National Human Rights Committee (NHRC), the International Labour Organization (ILO), and the International Federation of Building and Wood Workers (BWI). As part of this conference, top performing distinguished companies in the field of occupational health and safety were recognised for their efforts with regard to educating workers at all levels about the standards and requirements for occupational safety and health, in addition to their continuous keenness to apply the best standards to maintain health and safety.
Training “Whether it is preparing and organising periodic emergency drills, training employees by promoting a HSE culture or conducting safety inspections, GWC ensures that all measures possible are taken to empower, educate and protect our employees, and contractors working with GWC,” remarked Ranjeev Menon, Group CEO, GWC. He further added that GWC recently celebrated the World Safety Day at its facilities in Ras Laffan Industrial City (RLIC) and Logistics Village Qatar (LVQ). The celebration was communicated via safety awareness video, poster drawing competition, and much more. GWC Hazmat (oil and gas solutions) recently achieved four years of no ‘Lost Time Injury (LTI)’ with one of its customers in Ras Laffan Industrial City (RLIC), a major feat in GWC’s impressive track record of HSE achievements. The Company also issued over 894 work permits without any incident in 2021.
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GWC QATAR
Logistics Village Qatar
services for the pharmaceutical market in the nation. Our expertise in this sector has never been more needed than during the Covid-19 pandemic. GSC: What new technological trends in the workplace has GWC espoused in the recent past? RM: GWC is strongly driven by technology and is committed to creating innovative solutions that govern every business process, and driving decisions through data and analytics We have also partnered with Gaussin and Gam Qatar to test Gaussin’s zeroemission electric tractors and yard automation solutions in several GWC warehouses, including GWC Al Wukair Logistic Park in Qatar. We firmly believe in the power of digitalisation and have put in place various initiatives to ensure that we are able to provide holistic and innovative solutions to our client while keeping sustainability, cost and efficacy at the heart of it. As a testament to that, we were recently recognised at the Forbes Digital Qatar Symposium & Awards 2021
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GWC-Equestrian Logistics.
which are aimed at honoring the digital transformation journey of the public and private sector. GSC: GWC recently initiated a major promotion campaign with CNN. Tell us more? RM: We are collaborating with CNN on a new multiplatform campaign across Europe, Middle East and Africa (EMEA) to highlight our global logistics services and our role as the official host nation
logistics provider for the FIFA World Cup Qatar 2022™ to our core target audience including key business decision makers, investors and high net worth individuals. As part of this collaboration, through our campaign titled,‘Life, Delivered’ we aim to showcase GWC’s unique role in providing intricate planning and robust infrastructure for logistics spanning various sectors including cold chain, oil and gas, pharmaceuticals, fine art and mega events such as the FIFA World CupTM.
MANUFACTURING
The smart networked factory – shorten the distance to your customers Judging by the headlines, continuous global logistics issues, continued pandemic restrictions, and rising prices for raw materials mean that manufacturers have their work cut out for 2022. In addition, the drive towards sustainability is adding pressure to readjust the manufacturing footprint, writes Salem Machaka, Vice President, Global Professional Services, Infor, in this OpEd.
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ost manufacturers are still stuck with a geographic footprint, which was driven by labor arbitrage around the globe, rather than by factors such as closeness to customers or ecological concerns. To increase efficiency, many producers have started to implement Industry 4.0 technologies. Industry 4.0 came with the promise of a smart factory being profitable at the production lot size of one unit. The concept was introduced at the brink of the millennium change with the introduction of cyber-physical systems to share, analyze and guide intelligent actions for various processes in the industry to make the machines smarter and to lower downtime. Analytics can also be used for other aspects like logistics, demand forecasts, production scheduling and quality control, capacity utilization and efficiency boosting.
Leveraging potential However, we still stand at the beginning for leveraging the true potential of Industry 4.0. Smart technologies offer no less than the possibility to redesign the global manufacturing footprint, to position factories closer to markets, reduce logistics nightmares and increase visibility of the ecosystem partners, including suppliers and customers. So, what are the most important
ingredients for a strategy to create the future-proof smart factory? Customers increasingly demand highly personalized products as well as an enhanced customer experience. Manufacturing companies adopt highly agile cloud-based solutions to gain the ability to increase individualization, service additions, and serve higher flexibility requirements. The need to reduce delays and transport costs, as well as the drive toward a more sustainable production and the imperative to reduce the distance to the physical endconsumer lead organizations to redesign the manufacturing footprint, with the support of leading-edge technologies, to build smaller, smart factories closer to the customer. Smart decisions require end-to endvisibility. This requires a consolidated view across the manufacturing business, including the commercial, the procurement and the operational sides.
Streamlined processes A tightly linked view and streamlined processes across the order system, shop floor operations, and the supply chain optimize capacity and requirement management and failover alternatives across the entire system. A global view and command structure to react quickly to supply chain challenges. A connected supply chain operating with a single view of orders, shipments and inventory, and shared
digital processes provides the visibility needed to improve velocity and the agility to respond to disruptions in a timely and efficient manner. More intelligent automation, using AI-driven insights, can lead to assembly lines that are adjusting automatically. Smart technologies allow smaller manufacturing sites to be situated close to the customers. But how can producers reach fundamental business decisions as to how to relocate manufacturing sites? The most important ingredient needed is good intelligence. True, manufacturing organizations leverage plenty of data across the operation. But is the data linked up, consistent and treated to enable insightful business decisions?
Smart Factory A smart factory is a highly digitized, connected production facility that uses technologies such as artificial intelligence (AI), Internet of Things (IoT) and robotics to help companies manufacture products, create new business value, unlock data-driven insights, and automate or eliminate business processes. These technologies enable people to do their jobs in a more productive and efficient manner while improving quality and overall safety. At the same time, the technologies enable smart factories to self-adapt and autonomously optimize manufacturing operations, helping organizations to compete better amid the many global challenges they face.
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SHIPPEO CARBON VISIBILITY
Shippeo introduces Carbon Visibility and brings new features to Ocean and Road Visibility New Carbon Visibility dashboard makes monitoring carbon dioxide emissions easy Accurate, consolidated carbon dioxide emissions monitoring for shippers and carriers Carbon Visibility offers shippers and logistics service providers a consolidated view of CO2 emissions for upstream and downstream transport and distribution activities in one place, bringing a number of new capabilities to help companies monitor progress towards sustainability objectives, the press statement continued. Carriers also benefit from the new Carbon Visibility offering, allowing them to avoid the time-consuming manual work that they are faced with today to calculate emissions on behalf of their clients.
Instant reports
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hippeo, a leading provider of global and multimodal shipment visibility, recently announced new products and major platform enhancements, as part of their feature-packed 2022 Spring platform release. The updates focus on customer satisfaction, new innovations, performance, and meeting evolving market needs. A new CO2 emissions calculator provides critical information on carbon emissions and other greenhouse gasses from supply chain transport and distribution for shippers, logistics service providers and carriers, the company said in a press communique. Container tracking using Shippeo’s Ocean Visibility solution is now faster and easier with a new user experience and powerful monitoring capabilities. In addition, timesaving usability enhancements, data quality improvements and ETA accuracy
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advancements are introduced for the company’s market-leading Road Visibility product. Finally with the migration to Google Cloud and Snowflake, significant performance and scalability upgrades are added to the Shippeo platform.
Carriers can now use Shippeo to instantly generate carbon dioxide emission reports, which should allow them to more easily allocate carbon dioxide emissions from a single vehicle to multiple customers in LTL/groupage scenarios based on their business rules.
Spring platform
Infrastructure improvements to boost data quality and user experience
“Our latest Spring platform release is packed full of new features and capabilities for customers,”explained Anand Medepalli, Chief Product Officer at Shippeo,“This includes a completely new Carbon Visibility offering for accurately calculating carbon dioxide and other greenhouse gas emissions at the shipment level, as well as major enhancements to our Ocean and Road visibility solutions. We are evolving our platform to not only meet the needs of our customers today, but also to solve tomorrow’s supply chain problems,”he continued.
Shippeo’s platform has been migrated to Google Cloud Platform in its entirety, representing a major improvement in infrastructure. The shift ensures significant scalability, performance and localization capabilities along with enhanced security for customers, the press note concluded. Paris, France-headquartered Shippeo is a global leader in real-time multimodal transportation visibility, helping major shippers and logistics service providers deliver exceptional customer service and achieve operational excellence.
SMART LOGISTICS PROCESSES
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he Middle East Africa (MEA) Smart Cities market is set to double by this year. The UAE is one of the frontrunners in the race as it speeds towards achieving its Smart City status by fulfilling the goals highlighted in the Dubai 2040 Plan and the Abu Dhabi Economic Vision 2030. Shipsy, a leading global smart logistics management platform provider, is assisting companies attain Smart City and sustainability goals through its AI-driven smart logistics management solutions. This is at a time when UAE is poised to become a key driver of global trade with a 6% growth in exports annually, Shipsy’s technology innovations will play a pivotal role in enabling the government here to balance social, environmental, and financial progression.
Leveraging businesses “Shipsy is helping businesses leverage AI, Machine Learning, IoT, Predictive Intelligence, Automation, Big Data Analytics, Blockchain, and more to build resilient supply chain networks capable of responding to demand-supply fluctuations and absorbing unprecedented disruptions,” asserted Soham Chokshi, CEO and Co-Founder, Shipsy. With demand for faster online deliveries ballooning, cross-border eCommerce
Shipsy showcases key sustainability innovations at Seamless 2022 Company demonstrated how innovative AI solutions help businesses build smarter logistics processes and ensure sustainable supply chain operations activities are intensifying, and margins getting thinner, businesses in the region are posed with logistics challenges that can be transformed into novel opportunities when addressed using the right technology. At the recently concluded Seamless 2022 in Dubai, Shipsy exhibited how 170+ customers across the globe are using its platform to cost-efficiently scale deliveries, provide engaging and transparent delivery experiences, optimize cross-border logistics operations, mitigate transportation risks, and achieve more.
Reducing carbon emissions Businesses in the region use Shipsy’s technology to monitor and reduce carbon emissions. Their technology ensures lesser trip volumes, reduces miles traveled and return volumes, and significantly eliminates chances of delivery failures and empty miles to counter carbon dioxide
emissions. “Shipsy is empowering businesses across the globe to expedite their logistics sustainability goals. It is curbing distance traveled by 5% and reducing trip volumes by 6%. It ensures 14% more deliveries per driver and drastically reduces failure rates by improving address accuracy,”added Chokshi. Shipsy also announced the launch of its shipment tracking platform and demonstrating its innovations in the space at Seamless 2022. Shipsy enables businesses worldwide to build resilient, connected, agile, sustainable, and autonomous supply chain and logistics operations. The company’s smart logistics management platform empowers businesses to significantly reduce operating costs, lower carbon footprint, enhance customer experiences, boost delivery productivity, and drive seamless cross-border freight movement, a press statement concluded.
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SAVOYE
Savoye increases global footfall with 26% growth, breaks record turnover at US$ 214mn The logistics solution provider to highlight innovative solutions at Seamless Middle East 2022 Sets example
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avoye, a leading global warehouse automation integrator and software publisher in the Middle East, has recorded a turnover of AED 796mn (US$ 214mn) in 2021, with AED 833mn (US$ 226.8mn) orders and a big 26 % growth compared to the previous year. Meanwhile, in line with its commitment to foster the supply and logistics sector in the region, Savoye participated in the Seamless Middle East event on 21 May and 1 June 2022 to highlight its growth and showcase its new innovative solutions adapted for e-commerce and retail industry. The logistics solution provider, which entered the Middle East market at a time when businesses were adversely affected due to the global pandemic, has successfully established its base, and its presence in the region.
New partnerships “Last year we maintained and ensured new and existing partnerships, while influencing the industry to adopt useful innovative technologies, leading to our growth and recognition worldwide,” stressed Alain Kaddoum, Managing Director, Savoye Middle East.
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For the first time, the logistics solution provider displayed its cutting-edge HAIPICK Robotic Solution at the Seamless Middle East event throughout a live demo during the two days exhibition and showcased its Innovative ODATiO WMS software solution for retail and e-commerce sectors. During the event, Kaddoum highlighted trending topics through his presentation themed ‘The new era of fulfillment automation: the adoption of robotics’.
Savoye’s participation in the event set an example for the companies in the industry to adopt the use of these software and hardware solutions, including their state-of-the-art ODATiO WMS software solution. The solutions provider reported many companies have benefitted from the solution, as its functions consists of a combination of warehouse and transportation management system that offers extensive modularity for users - in SaaS mode or with a license. The solutions provider, which has already enhanced its AMR offering (Autonomous Mobile Robots), is further planning to intensify its R&D work, involving Artificial Intelligence (AI).
Sustainability goals Aiming to achieve its sustainability goals, Savoye has sketched out a plan to further its research into optimization and sustainability of last-mile logistics with innovative international companies to ensure a fine balance between their carbon footprint and that consumers have easy access to products. Savoye is an expert in the design and integration of automated and robotic intralogistics systems, as well as a publisher of supply chain execution (SCE) software solutions. Its products and services are deployed in over 40 countries, combining hardware and software, custom-built to accommodate customer needs. The company specializes in manual, semi-mechanized, highly automated, and robotized solutions and software for the supply chain and logistics industry, a press statement concluded.
TURKISH CARGO
Turkish Cargo awarded the ‘Best Air Cargo Brand’ in Europe for Sustainability Temperature-sensitive cargo is transported by environmentally friendly methods
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urkish Cargo was recently crowned for the ecological policies that are being implemented within the framework of its activities worldwide with an award, the carrier announced in a press communique. The air cargo carrier was selected as the best air cargo brand in Europe and deemed worthy of the ‘Sustainable Cargo Airline of the Year 2022: EUROPE’ at the Freightweek Sustainability Awards 2022. The annual Freightweek Sustainability Awards programme incorporates categories that cover the top-ranking air cargo brands, airports, handling companies, container and ULD vendors in respect of sustainability, as well as all stakeholders of the air cargo operations such as air cargo technologies, drone technologies, storage services. With innovative approaches, we aim to deliver effective solutions to our customers and industry partners. Within this scope, Turkish Cargo has recently inaugurated its new hub, SMARTIST, at Istanbul Airport. This new facility is a major example of the brand’s
commitment to offer high-end services, enhanced with smart technologies and digitalization to shape the future of the global air cargo business,” stated Turhan Ozen, Chief Cargo Officer, Turkish Airlines.
Robotic Process Automation (RPA) technology Thanks to the Robotic Process Automation (RPA) technology that enhances the business quality and enables the employees to focus on the processes with a higher added value, Turkish Cargo maintains its journey to the future more robustly by making use of the software robots in its business processes, the press statement continued. The software robots, called as metalcollar, can execute the business processes which are routine, manually performed and repetitive, on 7/24 basis, and act in harmony with the white-collar employees. Thus, enhanced business processes are being conducted in terms of quality, speed, productivity, and digitalization.
Turhan Ozen, Chief Cargo Officer, Turkish Airlines.
Working in partnership with leading active and passive container suppliers in the industry, Turkish Cargo has made the choice of environmentally friendly containers for the transport of the temperature-sensitive cargo. Such containers, some of which are operated by being charged and some of which are equipped with dedicated cooling plates, also allow for re-use. Thanks to such containers, temperature-sensitive cargo is shipped without carbon emission and within the desired temperature range from the point of origin to the destination in an environment friendly way.
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GPCA
GCC Plastic industry advances on Circular Economy Challenges persist, agree speakers at Riyadh GPCA Conference
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he development of ‘circular’ polymers with recycled plastic content, investing in advanced recycling facilities as well as the announcement of key regional initiatives focused on sustainability demonstrate significant progress by the GCC polymer industry and the region’s leadership to adopt the circular economy. However, more work lies ahead, said speakers at the recently concluded 11th Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Conference in Riyadh, Saudi Arabia under the theme of ‘Plastics Reimagined: A Circular Future Awaits’. A recent GPCA report, entitled ‘The Plastic Conversion Opportunity in the GCC: Moulding a Sustainable Future ‘Towards a Plastics Circular Economy’ and released at the GPCA Plastics Conference, has identified challenges such as an uncompetitive recycled plastics market, inadequate knowledge about the circular economy, high investment requirements and the
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high cost of products made in a circular economy model as barriers to further progress. The report goes on to highlight unfavorable regulations, the complex international supply chain of the plastics industry as well as a lack of collaboration between stakeholders as obstacles to achieving a circular economy in the region.
Circular economy The circular economy presents an enormous opportunity, with the World Economic Forum predicting that it will yield up to USD 4.5 trillion in economic benefits in the years to 2030. On a regional level, transforming the current linear model to a more circular approach can help drive progress on the Middle East Green initiative, the GCC governments’ national visions and enable regional signatories to meet their commitments to the Paris Agreement, while lowering emissions.
According to speakers at the twoday event, less than 10% of the plastics produced globally are ever recycled due to the diversity and variability of plastics waste, contamination, gaps in the existing infrastructure, and new demands of advanced recycling. An effective strategic response must be designed to address these issues and prevent over US$ 120bn from being lost through plastic waste annually, experts said. Nadia Al Hajji, Deputy Chief Executive Officer, Projects and Business Development, PIC, and Vice–Chair, GPCA Plastics Committee, welcomed delegates, highlighting the importance of value chain collaboration to address the challenges facing the industry. Chemical recycling also came under the spotlight in the keynote address by Tim Stedman, CEO, Agilyx. On day one delegates heard from esteemed industry leaders including Naser Aldousari, CEO, EQUATE, and Chair of the GPCA Plastics Committee, who delivered the welcome address;
GPCA
Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA. Mutlaq Al-Morished, CEO, TASNEE.
GPCA welcomes EU’s strategic partnership with GCC and member states GPCA Riyadh-Welcome address by Naser Aldousari, CEO, EQUATE, and Chair of the GPCA Plastics Committee.
Mutlaq Al-Morished, CEO, TASNEE; Marwan Frem, President, Napco National; and Eng. Bodour Mohammed Al-Meer, Sustainability Director, Supreme Committee for Delivery and Legacy, Qatar.
Recycling “The industry must promote recycling and the reuse of plastic products, which according to the WEF can extend the life of at least 20% of all plastic products. Greater collaboration, investing in research and innovation and adopting a life cycle approach will also be needed to enact change in the plastics circular economy in the region,” stated Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA. The GPCA Plastics Conference was held for the first time in Riyadh, Saudi Arabia, and attracted a record number of 425 delegates from more than 116 companies in the Arabian Gulf region and globally.
The European Union has unveiled a new, strategic partnership to strengthen block’s cooperation with GCC The Gulf Petrochemicals and Chemicals Association (GPCA) recently welcomed the European Union’s announcement to adopt a strategic partnership with the Gulf Cooperation Council (GCC) and its member states in the areas of energy security and trade. The joint communication, unveiled by the EU further addresses a series of key policy areas and presents concrete proposals to strengthen EU-GCC cooperation on the green transition, climate change, trade, economic diversification, regional stability and global security, among others. GPCA welcomes the opportunity for closer cooperation between the GCC states and the EU as it would not only provide significant socio-economic benefits for the people and consumers of both regions, but it would also advance their efforts to solve key sustainability challenges, innovate fresh solutions and develop local human capital. The announcement aligns closely with GPCA’s position on strengthening bilateral trade with Europe by removing trade barriers and tariffs.
After Asia, Western Europe is the GCC’s second largest export partner for chemicals and petrochemicals, with 6.7 million tons exported in 2020. Since its inception in 2006, GPCA has consistently advocated for a free trade agreement (FTA) between the two regions. The GCC is currently signatory to an FTA with the European Free Trade Area (EFTA), comprising Iceland, Lichtenstein, Norway, and Switzerland, but a wider FTA with the EU is yet to be reached. In the current landscape, geopolitical crises, energy supply challenges and increased trade tensions continue to underline the importance of forming strategic partnerships with a reliable, long-term partner. GPCA believes that an FTA, whether general or sectoral, would help to maximize potential economic and trade benefits to both regions. “The GCC region with its vast natural reserves, both hydrocarbon and renewable, combined with the EU’s human capital and knowhow, amassed over decades of science and development, will result in a stronger and more resilient relationship between the two economic areas,” concluded Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.
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EMBRACING DIGITAL TRANSFORMATION
Taking Supply Chain performance to new levels Digital transformation is the integration of digital technology into all business areas, resulting in revolutionizing changes in how businesses operate and deliver value to their customers, asserts Rodrigo Campos, Chief Operating Officer, Hyke, in this special contribution.
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igital transformation is pivotal to supply chain success in the modern business landscape. By driving changes across operations, back-office productivity, sales and customer service, digitalization can help businesses stay abreast with the ever-changing requirements of the marketplace. However, simply implementing new technologies is not enough. To really reap the benefits of digital transformation, it is necessary to have complete visibility across the entire supply chain. This allows for greater optimization and utilization of resources throughout the chain, leading to improved performance overall. Thus, you can take your supply chain performance to new levels by embracing digital transformation. In the context of the supply chain, digital transformation can be used to achieve several objectives, including reducing costs, improving efficiencies, and increasing transparency. By digitizing supply chain processes and data, businesses can gain greater visibility into their operations, identify areas of improvement, and make real-time adjustments to optimize performance.
Pivot Digital transformation is pivotal to taking supply chain performance to new levels. By embracing digitalization, businesses can overcome various challenges associated with traditional supply chains, such as volatility and lack of transparency. R&D also plays a critical role in digital transformation, as it can help businesses improve the maintenance of their digital systems and leverage data more effectively. Digital transformation can also help
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enterprises achieve sustainable supply chains by reducing waste and promoting efficiency. Sustainability is also a key consideration in today’s business world.
Right Approach The right approach for you will vary depending on your business’s specific goals and needs. There are a few essential elements that all successful digital transformations have in common: a clear understanding of the available technologies and how they can be applied to achieve desired outcomes.
Rodrigo Campos, COO, Hyke Rodrigo Campos is a seasoned professional with 20+ years of experience working across different geographies and leading multicultural teams. Rodrigo has been instrumental in building Hyke from the ground up, as the first B2B e-commerce platform of its kind in the region, right from setting the strategy together with the CEO and the validation of the first MVP, to hiring outstanding talent and going to market in record time. Rodrigo currently pursuing his Doctorate in Business Administration at IE Business School.
These include a robust supply chain strategy that considers the ever-changing business and technology landscape; and a commitment to continuously improving processes and data management practices to drive lasting competitive advantage. Digital transformation is revolutionizing the supply chain. By automating processes and adopting new technologies, businesses can reduce costs, improve efficiency and be more responsive to changes in demand.
Supply Chain digitalization The key to successful digitalization of the supply chain is an in-depth understanding of available technologies and how they can be effectively applied throughout the value chain. For instance, Hyke uses an advanced technology powered by AI, machine learning, and predictive analytics, and is complemented by a robust supply chain for faster first mile as well as last mile services. Businesses can generate a significant financial return and lasting competitive advantage by blending the right combination of people, processes, and data. Digital transformation is a continuous journey for your business, and not a destination. Like any journey, there are challenges that must be overcome along the way. In an increasingly competitive marketplace, those that embrace digital solutions will be best placed to succeed.
(Hyke is a digital platform that connects suppliers with retailers and provides the technology, supply chain infrastructure, financial capabilities, and market reach to help them engage and run their business seamlessly and efficiently—Editor)
ADVANCED SOFTWARE
A COMPLETE UNIVERSE OF SOLUTIONS: OMS, WMS, WCS, TMS, EDI
WMS
TAKE CONTROL OF YOUR SUPPLY CHAIN!
#POWERFUL BUSINESS RULES ENGINE A ll ows to d ef i n e a n d m o d if y operational rules autonomously by the end user with no limit on the number of settings
#MODULARITY By integrating WMS and TMS within the same application, modules can be activated progressively
#UPGRADABILITY Continuous access to the latest updates
#INTEGRATED DASHBOARD Complete visibility of the warehouse thanks to a multi-site, interactive and fully customizable dashboard
#FLEXIBLE HOSTING Available in a private cloud, public cloud, or on-premises
#AGILITY SaaS or License mode
#AUTOMATION-READY Design
ODATiO orchestrates automated systems, robotics, AI and machine learning applications
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www.savoye.com
Burlington Tower 11th Floor, Office no.1111 &1108 Business Bay Dubai - United Arab Emirates P.O.Box 51188
SUPPLY CHAIN SOLUTIONS
Cold chain solutions made simple Keeping a seamless cold chain is what makes your business stand out. With specialized individual cold chain solutions for healthcare and pharmaceutical products, Hellmann is proud to offer you temperature and humidity-controlled transportation and storage.
Lets Do Business! Gordon Barnard Chief Commercial Officer (MESA) Middle East & South Asia Gordon.Barnard@hellmann.com
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