Global Supply Chain March 2019 Issue

March 2019 Issue 57

ENHANCING THE BUSINESS OF LOGISTICS

TRISTAR RISING “A business exists for a lofty purpose not just profit,” – Eugene Mayne, CEO Tristar Group

SSI Schaefer

Intelligent Logistics Solutions and Technologies

Sanofi Logistics & Distribution Centre New Lifeline

Emirates Steel

Strengthened Performance

THE WORLD'S HEALTH IS IN THE SAFE HANDS OF TURKISH CARGO As the cargo airline that flies to more countries than any other, we carry all your health and wellness needs, from pharmaceuticals to medical supplies without ever interrupting the temperature-controlled cold chain.

turkishcargo.com

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                                                                         ’                                

     

Bright stars in the logistics firmament SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3978847/3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: B Raveendran ravi@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com

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 handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.

The present logistics landscape in the Middle East, as with the rest of the world, may look challenging and rightly so in the light of the current economic scenario. Thankfully however, there are bright sparks on the horizon and companies that are bucking the downward trend.

One such stand out is the Tristar Group, established in Dubai in 1998 by professional-turned-entrepreneur Eugene Mayne and our lead story for this edition. Over two decades and an impressive track record later, it makes a good script for a ‘Star is born’ series. We visited the Tristar Group offices in Jebel Ali and met the founder-architect of the company who had a compelling narrative to tell.

SSI Schaefer has also had a stellar record as the global intralogistics pioneering company, demonstrated its extended ingenious offerings at the recently concluded LogiMAT 2019 in Stuttgart, Germany. We approached Matthias Hoewer, General Manager, SSI Schaefer Middle East and Africa, to bring us to speed on the remarkable strides taken by the company in its endeavour to provide innovative products and advanced IT solutions for its customers.

Sanofi Gulf, the Middle East subsidiary of the top French international pharmaceutical giant, recently opened a new Logistics and Distribution Centre in Dubai Logistics City, Dubai South, and we were on hand to witness this landmark occasion and converse with Jean-Paul Scheuer, Company Chair and General Manager, on the sidelines of the event.

Elsewhere, we journeyed to Abu Dhabi, to hear the CEO of Emirates Steel talk of solidified performance by the stateowned and country’s only steel integrator-manufacturer.

The GCC countries can also justifiably boast of one of the finest network of roads and transportation infrastructure comparable with the best in the world. We look at the road to development and the collective US$ 122 billion projects currently in the pipeline and its implications for the logistics and supply chain sectors.

We hope you will enjoy reading our regular stock of news, views and expert input. In his second and final series, one of our long-time contributors Tom Craig, President, LTD Management, USA, continues his case for lean logistics that could revitalise the industry.

Enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

MARCH 2019 3

March 2019 Issue 57

ENHANCING THE BUSINESS OF LOGISTICS

46 Sanofi Gulf The Middle East subsidiary of the French multinational pharmaceutical company has opened its largest Logistics and Distribution Centre in Dubai Logistics City, Dubai South.

48 DHL DHL has released its Global Connectedness Index even as globalisation reaches new highs. The UAE is among the world’s top globally connected countries.

50 Emirates Steel

36 06 NEWS 20 Kuwait – A Country Report Oil, gas and hydrocarbons have been the traditional bastion of the Kuwait economy. The public sector accounts for around three-fourths of the country’s wealth and the ambitious five-year Development Plan (2015-2020) has generous provisions for advances in infrastructure, transportation and energy projects.

26 TriSTAR RISING

intralogistics pioneering company demonstrated its eclectic mix of ingenious creations as it continues to stir and steer the industry with flexible scalable, sustainable and seamlessly integrated solutions.

42 Lean Logistics In his second and final installment, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management advocates and outlines the thinking digits for enabling ‘the lean’ in Lean Logistics.

At the LogiMAT 2019 trade exhibition in Stuttgart, Germany, the global

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53 Port of Duqm The heavy-lift and project cargo capabilities and feats are lifting the profile and performance of the Port of Duqm.

56 GCC Roads Infrastructure A staggering US$ 122bn will be collectively spent on road infrastructure in the GCC alone according to a recent report released

by Orient Planet Research.

58 E-Services Excellence Awards 2019

The Tristar Group, founded in 1998 by visionary professional-turnedentrepreneur Eugene Mayne, has had a meteoric rise during its 20 years of operations. As it enters its third decade, the company is on fast track to further growth and progress.

36 SSI Schaefer

Emirates Steel, the only integrated steel plant in the UAE and owned by the Abu Dhabi Government’s SENAAT General Holding, has solidified its performance in 2018.

Dubai Trade recently recognised winners of the 11th Edition E-Services Excellence Awards 2019.

60 Drones 50

Drones are steadily making forays and inroads in smart city logistics and services.

New US$ 58.5mn Air Cargo Area developed at Bahrain International Airport The new US$ 58.5mn Air Cargo Area at Bahrain International Airport is set to welcome its first tenant as US-based FedEx Express signed a deal to move to the expanded freight complex at the Bahrain International Airport, further strengthening its operations as a GCC logistics hub.

The multinational courier delivery

services company will be occupying a total of 9,000sqm out of the 25,000sqm available space in the new Air Cargo Area, of which 5,000sqm will be warehousing and the rest will be the manoeuvring area.

“We are currently negotiating with two other companies wishing to operate warehouses at the new Cargo Area, which

Panalpina confirms preliminary talks with Agility for possible tie-up Kuwait-based Agility Group is talking to Panalpina over a tie-up that complicates Danish rival DSV’s US$ 4bn bid for the Swiss logistics group that is being fought by the Baselbased company’s biggest shareholder.

Panalpina and Agility affirmed that they were discussing how the two companies’ logistics operations could work together. Agility, with 22,000 employees and US$ 4.6bn in annual revenue, has been expanding globally under Managing

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Director Tarek Sultan.

Panalpina added that it was still reviewing the DSV proposal ‘according to its fiduciary duties’.

The entry of Agility into the fray provides the Swiss company with an alternative to DSV’s offer.

The Ernst Goehner Foundation, which owns 46% of Panalpina is the biggest shareholder in the company. ‘Panalpina is in discussions with Agility Group on potential strategic opportunities with regard to their respective logistics businesses’, Panalpina’s

Board of Directors said in a statement. ‘The discussions between the two companies are at a preliminary stage,’ the statement continued.

A rival proposal could force DSV Chief Executive Jens Bjorn Andersen to sweeten his cash-andshares offer for Panalpina.

Andersen, who said last week he remains in pursuit of a deal, has faced hurdles in Switzerland as he seeks to grow DSV’s footprint, having failed last year in his US$ 1.55bn bid for Swiss freight forwarder CEVA Logistics.

further demonstrates the Kingdom’s strong reputation as a regional hub for logistical services in the GCC and wider Middle East,”affirmed HE Eng. Kamal Bin Ahmed Mohammed, the Bahraini Minister of Transportation and Telecommunications and Chairman, Bahrain Airport Company (BAC).

The Minister said that the new Air Cargo Area that BAC is constructing north of the runway is an important part of the overall growth strategy adopted by the Ministry of Transportation and Telecommunications, and a key component in the Airport Modernisation Program (AMP), which is due to be completed by Q3-2019.

The Minister also noted that the continued cooperation and coordination between BAC, Customs, and the Bahrain Economic Development Board (EDB) played a major role in the fruition of this agreement.

“The GCC is an important region for FedEx Express, where enhanced collaboration between public and private sectors is fueling growth across industries. The logistics market forms a fundamental part of the GCC economy, and we remain committed to serving our customers across Bahrain and connecting them with people and possibilities around the world,” asserted James R. Muhs, President of the FedEx Express Middle East, Indian Subcontinent and Africa (MEISA) region.

“This Letter of Intent further highlights the strength of Bahrain’s transport and logistics sector and supports our strategic focus on e-commerce and regional distribution. There are a number of opportunities for companies like FedEx Express in the GCC’s US$ 1.5tn market, and Bahrain is an ideal location from which to access those markets due to our fast and direct transport links, some of the regions lowest operating costs, and a highly skilled, bilingual workforce,”observed HE Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board (EDB).

BAC signed an agreement in November with French engineering firm, Egis for design and supervision for the new 25,000-sqm Cargo Area, which comprises warehouses, aircraft parking, and associated infrastructure aimed at handling air cargo traffic and e-commerce. The Cargo Area is also equipped with the latest technologies, making it one of the most attractive locations for investment in the Middle East.

Honeywell opens manufacturing and testing centre for advanced energy solutions in Kuwait Honeywell CEO Darius Adamczyk and Kuwait Petroleum Corporation CEO Hashem Hashem inaugurate new facility in Mina Abdullah A new facility opened today by Honeywell has become Kuwait’s first certified in-country manufacturing, integration and testing centre for advanced automation technologies.

The Honeywell Customer Solutions Centre, located in Mina Abdullah in southern Kuwait, was officially inaugurated

by Honeywell Chairman and CEO Darius Adamczyk and Kuwait Petroleum Corporation (KPC) Deputy Chairman and CEO Hashem Hashem.

The centre enables product assembly and customer testing and acceptance to be consolidated under one roof, making it easier and faster for customers to deploy new technologies.

“Honeywell is a committed supporter of Kuwait’s vision to boost energy production, introduce new technologies, develop human capital, and grow key industrial sectors,” Adamczyk said on this occasion.

“Kuwait Petroleum Corporation is focused on maximising the country’s energy resources, and leveraging the latest technology and know-how to optimise operations and achieve greater cost efficiencies in line with our KPC Vision 2040,”Hashem commented.

The new Honeywell facility can assemble distributed control system (DCS) platforms and operator consoles for small- to medium-size automation projects. The centre also customises industrial software and Internet of Things (IoT) solutions, and designs and assembles fire alarm panels, auxiliary consoles, power distribution panels and other cabinet systems.

Last year, Honeywell opened a Customer Experience Centre at its offices in Mina Abdullah to give local customers a deeper understanding of Honeywell’s integrated software and hardware solutions for oil and gas facilities and refineries.

Also present at the inauguration ceremony was Emad Sultan, CEO, Kuwait Oil Company, Waleed Al Bader, CEO, Kuwait National Petroleum Company and Hatem Al Awadhi, Acting CEO, Kuwait Integrated Petroleum Industries Company.

Oman Shipping Company awards three-year supply tender to Lukoil Lukoil Marine Lubricants Middle East, the subsidiary of Russia’s Lukoil Oil Company and located in the UAE, has inked a guaranteed threeyear contract with Oman Shipping Company (OSC).

The signing ceremony was attended by June Manoharan, Director, Lukoil Marine Lubricants and Ibrahim Bakhit Al Nadhairi, Technical Director, Oman Shipping Company. Also present on the occasion was Capt. David Stockley, Chief Operations Officer, Oman Shipping Company.

The deal provides OSC the option of extending the

partnership an additional two years to ultimately bring the agreement to a total of five years. As per the contractual obligations, Lukoil’s supply shall cover OSC’s fleet of 39 vessels consisting of Very Large Crude Carriers (VLCC), Product Tankers, Chemical Tankers, LPG Carriers,Very

Large Ore Carriers (VLOCs) and Bulk Carriers.

This agreement comes at an opportune time as we seek to find alternative ways of elevating the status of our fleet’s reputation with 2020 just around the corner,” affirmed Al Nadhairi.

“Oman Shipping Company has shown great trust in allowing us to continue supplying their vessels,”said Manoharan.

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Continental to expand significantly in the Middle East Premium German tyre and technology company Continental has opened its firstever office in Jeddah, Saudi Arabia.

Aimed to expand company’s presence and strengthen its foothold in the region, the new joint venture project is in partnership with Continental’s previous distributor in Saudi Arabia, Almutlak Trade & Industries, and will support the growing demand for Continental’s products and services in the kingdom.

The announcement has been made during an official meeting hosted by Nikolai Setzer, Member of the Executive Board, Tyre Division, Continental, and Jon Ander Garcia, Regional Manager for Continental Africa & Middle East.

“The opening of the new office marks an important milestone for the brand not only in Saudi Arabia but also in the Middle East. We believe this new partnership will allow us both to grow and to strengthen

our relationship with Saudi Arabia, and the region as a whole,”commented Garcia.

Building on the company’s legacy, Continental also celebrated the inauguration of its first warehouse facility in Jebel Ali, Dubai. The new warehouse will act as a hub connecting plants in Europe, North America and South America with the brand’s distribution partners in the Middle East.

The opening of this dedicated warehouse marks a major landmark development since the establishment of the brand’s regional representation office in 2009.

2019 will also mark the arrival of Continental’s new digital tyre monitoring platform, ContiConnect™. Designed especially for commercial vehicles, the new platform helps fleets to maximise efficiency and send alerts if tyre pressure deviates from the defined value.

The introduction of ContiConnect follows the arrival in the Middle East earlier last year of ContiPressureCheck™, a first-of-its-kind monitoring system for buses and trucks that continuously monitors tyre pressure and temperature via sensors placed inside the tyre.

Saudia Cargo opens office in Dubai; Bags top awards at Air Cargo Africa 2019 Saudi Airlines Cargo Company recently inaugurated its brand-new Cargo sales office in the Free Zone of Dubai International Airport.

The opening of the new sales office comes in line with the company’s strategy to develop its brand-image, enhance its sales outlets & facilities, aiming to improve the logistical services & products offered to the clients.

The Dubai sales office is considered one of the major sales outlets for Saudia Cargo in the region due to the increased demand for Air Cargo services in Dubai, the UAE’s primary centre for commerce and businesses.

Moreover the company uses the bellycapacity of Saudi Arabian Airlines with 14 daily flights from Dubai to Jeddah, Riyadh and Dammam.

In related news, Saudi Airlines Cargo Company won two international awards at the recently concluded Air Cargo Africa 2019 held in Johannesburg, South Africa.

The two awards were the ‘International Cargo Airline of the Year 2018’ in Africa and the ‘International Air Cargo Marketer

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of the Year 2018’ both coming as result of Saudia Cargo’s efforts in intensifying its cargo capacity, fostering its operations and promoting innovative freight solutions, offering its wide-body freighter capacity in addition to an ample belly-hold capacity on board Saudi Arabian Airlines.

Omar Hariri, CEO, Saudia Cargo, thanked the panel of judges which recognised the company’s contributions to help uplift the industry standards that benefit customers and other stakeholders in the supply chain.

“Both awards manifest our sincere commitment to provide world-class service to our distinguished and loyal clients, it also further shows our resolve to continue improving our products and services and bring them to the next level,”he commented on this occasion.

Air Cargo Africa is the top biennial gathering of the global air cargo community to explore and strengthen networking corridors within the emerging markets of the vast African continent.

New DXB branding takes off for Dubai Airports

Dubai Airports partnered with action sports brand XDubai to deliver a dramatic stunt by Emirati athlete and skydiver Mohammed Baker as part of the new DXB brand which aims to position the world’s busiest international airport as a major destination for

culture, hospitality, and entertainment.

After welcoming one billion passengers, the airport is transforming towards creating immersive experiences that embody the true spirit of Dubai for its customers, as part of its new brand reveal today.

The new brand was first revealed at an official event attended by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai; HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai; HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Airports; Paul Griffiths, CEO, Dubai Airports, as well as VIPs and officials.

The stunning showcase saw what is believed to be the world’s longest free fall attempt that began with a jump out of a helicopter and a glide down Sheikh Zayed Road with the iconic Dubai skyline as backdrop, before swooping under eight lanes of traffic on Dubai’s most famous highway.

The event also saw a live installation by UAE calligrapher and art performer, Diaa Allam, among other creative expressions, aimed at linking the essence of old Dubai with the rich and modern heritage the emirate boasts of today.

“The tremendous growth that we have seen in Dubai proves that the GCC region and MENA more broadly, are exceptional opportunities for Quiqup. We are looking

forward to building on the success that we are having in Dubai as we expand across the region,”affirmed Dani El-Zein, General Manager, Quiqup UAE. “Our technology is second to none in the region, and our obsession with industry-leading technology and on customer experience is putting us at the forefront of innovation. We look forward to creating a last-mile infrastructure that serves as a model for the rest of the world,” asserted Bassel El Koussa, CEO and Cofounder, Quiqup.

There are a number of factors that make expansion into the region very attractive.

E-commerce in the region is in its early stages compared with the rest of the world, and growth rates of e-commerce there are among the highest in the world.

Delivery will be fundamental to the growth of this sector, providing attractive market conditions for the expansion.

MENA region is very open to adopting new technologies from scratch, which provides an opportunity to build a last-mile logistics infrastructure that is absolutely cutting edge. This is fueling quicker adoption of Quiqup services in the region.

Quiqup to boost regional expansion through a US$ 13mn strategic funding round Quiqup, a tech scale-up developing a de-centralised, AI powered last-mile logistics infrastructure to power same-day delivery services for retailers and restaurants of all sizes and across all industries, has announced a strategic funding round of £10mn (US$ 12.85mn) to drive expansion across the MENA region.

The funding round is being led by existing investor JOBI Capital, with participation from strategic investor Cedar Mundi Ventures, the Beirut-based VC firm part of Kuwait Holding group.

Quiqup, which launched services in the region in 2017, will build on its current to expand into two cities in the GCC, with others to follow as part of its expansion plan. To support its regional expansion, Quiqup will set up its regional tech hub in Beirut with a development team drawing on the existing local tech-savvy and costefficient talents.

MARCH 2019 9

Navis helps improve efficiency of yard system at SCCT Implementation of the Navis N4 Expert Decking Module, the system which automates yard planning, has resulted in

major efficiencies in yard and quay operations at APM Terminals’ Suez Canal Container Terminal (SCCT). The system is used to

Meet Etihad Cargo’s first Emirati Loadmaster Rashed Saeed Alhajeri’s career path in aviation is far from typical. Inspired by his family, he initially set out to become a pilot - but life got in the way.

Never taking no for an answer, he was committed to pursuing his dream of working in aviation. The choices he made in his career eventually led Rashed from the cockpit to the cargo hold of Etihad’s freighter aircraft.

After an intense training programme that took him from Abu Dhabi across Etihad’s global network of destinations, Rashed Saeed Alsafran Alhajeri successfully qualified as a cargo loadmaster. He is now Etihad’s first ever UAE national loadmaster.

He takes on the complex task of planning the distribution of cargo within Etihad’s aircraft, calculating where the aircraft’s centre of gravity will be based on the weight distribution and how much weight each compartment can safely hold.

Along with ensuring the safety of Etihad’s aircraft and flight crew, loadmasters like Rashed also makes sure cargo is packed as efficiently as possible so that the space is optimised.

10 MARCH 2019

automate planning by distributing containers throughout the yard based on predefined rules. Typically yard planning is extremely time-consuming, costly and inaccurate.

The Navis system aims to optimise the storage of containers in the most efficient manner, leaving more time for users to manage the yard.

At the SCCT, staff focused on dwell times for transhipment containers. Each container was examined, the dwell time assessed and a class was then assigned. Containers with shorter dwell times were assigned a yard lane closer to the berth.

This approach resulted in quay cranes being utilised more efficiently and trucks travelling shorter distances. Savings in equipment running costs, maintenance & repair, and staffing were also achieved. Following piloting and testing, it was then rolled out across the yard over a 20-week period.

N4 Expert Decking assesses yards in real-time, taking container volumes and stack configurations into account. But the system is only as effective as the terminalspecific business rules that are established to determine the most efficient stacking of import, export and empty containers.

Global best-practise sharing The new efficiencies achieved by the SCCT are the latest in a series of continuous improvement. The terminal has become a hub for excellence in training within APM Terminals.

Last year, nine personnel from APM Terminals’ new Moin Container Terminal in Costa Rica and four from its MedPort Tangier Terminal recently travelled to Egypt to attend operational and technical training programs.

The training enabled SCCT to share the best practices it has established. This type of initiative has become a frequent feature of APM Terminals’ commitment to learning across the organisation.

By designing and hosting these training programs, SCCT employees demonstrate the expertise that makes them such able partners.

“The training program that SCCT provided to our team helped to develop excellent knowledge and skills. The experience provided was crucial in the training and development of our professionals,”said Fabian Calvo Bernard, training coordinator for APM Terminals Navis, a part of Cargotec Corporation, is a provider of operational technologies and services that boosts performance and efficiency for the world’s leading organisations across the shipping supply chain.

Emirates signs deal for 40 A330-900s, 30 A350-900s

Airbus and Emirates reach agreement on A380 contract – with the airline to receive 14 more A380s by end 2021, bringing its total A380 order book to 123 units Emirates Airlines recently announced an

Halliburton breaks ground for first specialty chemicals manufacturing facility in Saudi Arabia

order for 40 A330-900 aircraft, and 30 A350900 aircraft, in a heads of agreement signed with Airbus. The deal is worth US$ 21.4 billion at list prices.

The latest generation Airbus A330neo and

A350 aircraft will be delivered to Emirates starting from 2021 and 2024 respectively.

In addition, Airbus and Emirates reached an agreement on outstanding A380 deliveries. The airline will receive 14 more A380s from 2019 until the end of 2021, taking its total A380 order book to 123 units.

“Emirates will continue to invest in our onboard product and services so our customers can be assured that the Emirates A380 experience will always be top-notch,” commented HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.

The A330neos will be deployed on Emirates’ regional destinations, and also enable the airline to serve smaller airports and thereby open new routes and connectivity for its global network.

The A350s will supplement Emirates’ long-haul operations, providing the carrier with added flexibility in terms of capacity deployment on 8 to 12 hour missions from its Dubai hub.

Halliburton recently announced its decision to build the first oilfield chemical manufacturing reaction plant in Saudi Arabia. The plant will have capabilities to manufacture a broad range of chemicals for oil and petrochemicals sectors

The company held a ground-breaking ceremony at the plant’s PlasChem Park location in Jubail in the Kingdom’s Eastern Province. Upon the plant’s completion in 2020, Halliburton will begin local manufacturing of specialty chemicals to help customers achieve production and reliability goals in applications from the reservoir to the refinery “We are excited to house this premier facility in Saudi Arabia while continuing to strengthen our commitment to the ‘In Kingdom Total Value Add’ programme,” said Jeff Miller, Halliburton Chairman, President, and CEO. The plant will have capabilities to manufacture a broad slate of chemicals for stimulation, production, midstream, and downstream engineered treatment programs.

Halliburton’s global laboratory and team in Dhahran Techno Valley and local manufacturing uniquely position the company to accelerate the production of next generation specialty chemical solutions while developing local employees and capabilities.

MARCH 2019 11

sector to develop strategies that will help the industry meet its growth potential and explore future opportunities and challenges.

The event was attended by senior DP World and JAFZA management along with executives from major industry players.

Abdulla Bin Damithan, Chief Commercial Officer for DP World, UAE Region, gave the welcome address and spoke about Dubai’s potential for food and beverage trade and the opportunities that exist.

Ahmed Al Haddad, Chief Operating Officer, JAFZA, also addressed attendees, thanking them for their continued support and shed light on the Zone’s latest offerings and how these can benefit the F&B industry.

“JAFZA is committed to supporting the F&B sector through our world-class services that offer customised solutions to enable businesses to capitalise on opportunities, while providing the infrastructure needed to meet consumer needs in an era of ondemand logistics,”commented Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

F&B forms a key part of JAFZA’s business, with over 460 companies from 66 countries registered in the free zone. JAFZA’s F&B trade reached a total value AED 10.9bn (approximately US$ 3bn) in 2017 and accounted for around 16% of Dubai’s total value during the same period. Top traded commodities were fruits, vegetables and nuts, foodstuff, grains and by-products, beverages and sugar.

As part of the measures to help prevent the entry of restricted and prohibited goods in the country, the Dubai Cargo Village Customs Centre found 308,000 violations and dealt with 298 cases in 2018.

During a recent tour to Dubai Cargo Village Customs Centre, Ahmed Mahboob Musabih, Director of Dubai Customs, applauded the role inspectors at the Centre play in foiling any smuggling attempts.

Musabih was accompanied in his tour by Abdullah Mohammed Al Khaja, Executive Director of Clients Management Division at Dubai Customs; Khalifa Ateeq, Senior Manager, and Khalid Al Mouazen, Inspection Senior Manager at the Centre.

“Dubai Customs moves forward steadily to realise its overall vision of becoming the world leading customs administration that supports legitimate trade,”Musabih said.

One facilitation tool used is the ATA Carnet which Dubai Customs implements to help beneficiaries, such as exhibitors at trade shows, to import their goods duty-free and tax-free for a limited period of up to one year. The entry permit lasts until the completion of the purpose for which the goods have been entered.

JAFZA forays into the F&B sector Jebel Ali Free Zone (JAFZA) recently organised a customer forum for companies that operate in the food and beverage (F&B)

Dubai Customs to strengthen control measures at Cargo Village Centre 12 MARCH 2019

Etihad Rail and ZonesCorp to establish railway logistics facility at ICAD Constructing a logistics facility will contribute to consolidating logistics operations around Abu Dhabi’s industrial enclave Etihad Rail, the developer and operator of the UAE’s national railway network, has signed a Memorandum of Understanding with ZonesCorp to establish railway and logistics facilities within the Industrial City of Abu Dhabi (ICAD).

Etihad Rail’s logistic facility will complement the Corporation’s Abu Dhabi Logistics City Development Project, covering an area of approximately 6 million square meters. The projects will serve the industrial entities in the Industrial City of Abu Dhabi (ICAD) and Mussafah, and will provide a point of departure for goods bound for Saudi Arabia. The logistic facility will be the closest logistics point to the city of Abu Dhabi.

HE Sheikh Theyab Bin Mohamed Al Nahyan, Chairman of Abu Dhabi Department of Transport and Chairman of Etihad Rail, and Falah Mohammad Al Ahbabi, Chairman of the Department of Urban Planning and Municipalities and Chairman of the Higher Corporation for Specialized Economic Zones, attended the

The soaring AKH Tower changes Dammam’s skyline Serving as the new headquarters for the prominent Al Abdul Karim Holding (AKH) company in Dammam, the AKH Tower is now open for business. Designed and supervised by Dewan Architects+Engineers, the dramatic 37-storey building ranks as the tallest building in Dammam and the 30th tallest in the Kingdom of Saudi Arabia.

Setting out to impress, the striking design of the AKH Tower, with its gleaming glass, geometric patterns and soaring height, is an attractive sight in the oil capital of Saudi Arabia’s Eastern Province.

Designed as an ‘intelligent’ building, the tower is equipped with a state-of-the-art telecommunication system, a CCTV system, access control system, energy-saving system, computer-based building management system (BMS), a sophisticated Data Centre

signing ceremony. The agreement was signed

by Shadi Malak, CEO, Etihad Rail, and Saeed Eisa Mohammed Al Khyeli, Director-General, ZonesCorp.

The agreement outlines the collaboration between the two parties to form a joint leadership team and qualified task forces to follow up the progress and achievement of the project, as well as ensuring the completion of operational processes in accordance with the specified completion date, optimal performance methodologies and the relevant policies.

“ZonesCorp is a key partner for Etihad Rail as it is the largest developer and operator of purpose-built industrial zones in the UAE and is playing a leading role in developing the nation’s industrial sector,”affirmed HE Sheikh Theyab Al Nahyan “Etihad Rail’s logistic facility contributes to the integration of Abu Dhabi Logistics City, in order to provide a competitive environment for investment projects in the Higher Corporation’s economic zones and reduce operational costs for investors,”added Al Ahbabi.

The signing of the MoU comes as Etihad

Rail prepares to embark on Stage Two of the Etihad Rail network, which will extend 605 kilometers from Ghuweifat on the UAE’s border with Saudi Arabia to Fujairah on the east coast, through ICAD, Khalifa Port, Jebel Ali and Khor Fakkan, to be followed by further route additions.

and an advanced audiovisual system for the conference rooms.

The tower also has its own backup standby electricity generator and a built-in uninterruptible power supply (UPS). Ample car parking is available in the basement and across seven levels of the podium.

According to Ammar Al Assam, Executive Director, Dewan Architects+Engineers, the shape of the tower is more than just a visual treat; it is also contributes to a versatile, highly functional design.“The tower’s façade and slanting volumes make for arresting lines and configurations within the interior, creating distinctive and dynamic office spaces on every floor,”said Al Assam.

Dammam, the capital city of Saudi Arabia’s Eastern Province, is the major administrative centre for the Saudi oil industry. As one of the nation’s chief ports, Dammam serves as a major exporting point for petroleum and natural gas.

MARCH 2019 13

Daimler Commercial Vehicles fetes EMC

Emirates Motor Company Commercial Vehicles (EMC CV) earned two prestigious awards at the Daimler Commercial Vehicles Conference Middle East & Africa 2019.

EMC CV, the authorized general distributor of Mercedes-Benz Commercial Vehicles in the Emirate of Abu Dhabi and the flagship company of ALFAHIM Group,

DP World wins recognition for sustainable practice at Jebel Ali Port DP World, UAE Region has won top honours at the 11th edition of Dubai Award for Sustainable Transport (DAST) organised by the Roads and Transport Authority (RTA) that encourages public and private sector organisations to address the challenges of mobility and environmental conservation.

DP World, UAE Region won the first position for Mobility Management (Smart Transport) and second position for Environmental Protection (Truck Deployment Optimisation per Quay Crane). The trade enabler was also cited for implementing successful business practices and raising awareness in the community through its sustainability programmes.

The ceremony was held under the patronage of HH Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown

14 MARCH 2019

received both the ‘General Distributor of the Year’ Award as well as the ‘MercedesBenz Trucks’ Award for its outstanding performance in sales and customer service and parts in 2018.

“These awards recognize successful strategic decisions that allow EMC CV to lead in the MENA region in truck, bus, and

van sales as well as in customer service and parts,”asserted Kay-Wolf Ahlden, President & CEO, DCV MENA. “To be singled out among Mercedes-Benz dealerships in the MENA region as the General Distributor of the Year shows the level of business excellence we have achieved as a proud member under ALFAHIM umbrella,”said Bilal Al Ribi, General Manager of EMC CV. EMC CV secured the ‘General Distributor of the Year’ Award for the second consecutive year through implementing real fuel testing measures, comprehensive service contracts, FleetBoard telematics and driver training as well as by introducing the all-new Actros & Arocs, focusing on total cost of ownership solutions for its customers.

EMC CV was able to sell a range of civilian trucks and military and G-class vehicles in addition to the all-new Actros and Arocs. The Abu Dhabi distributor was also recognized for introducing the new Citaro Euro 6 bus to the region. This was achieved through a public transport agreement that includes a comprehensive service contract for five years in combination with a Sprinter Minbus solution that is unique in the region.

Prince of Dubai and Chairman of Dubai Executive Council. HH Sheikh Mansour Bin Mohammed Bin Rashid Al Maktoum, Chairman of the Dubai International Marine Club presented the awards to Mohammed Al Muallem, CEO & MD, DP World, UAE Region, in the presence of Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors, RTA, and heads of public and private organisations.

“The objectives of the Dubai Award for Sustainable Transport closely match our sustainable business activities. We are honoured to receive this award for innovative projects at Jebel Ali Port,”said Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

RTA launched the DAST awards to raise awareness of sustainable transport practice, encourage partnership and cooperation in transport, mobility and environmental protection, and enabling best practice in these areas.

Delivering the Future: FedEx unveils Autonomous Delivery Robot in collaboration with DEKA Development & Research Corp. and its founder Dean Kamen, inventor of many life-changing technologies, including the iBot Personal Mobility Device and the Segway.“The bot has unique capabilities that make it unlike other autonomous vehicles,” Kamen commented.

We built upon the power base of the iBot, an advanced, FDA-approved, mobility device for the disabled population with more than 10 million hours of reliable, real-world operation. By leveraging this base in an additional application, we hope that the iBot will become even more accessible to those who need it for their own mobility,”he commented.

The FedEx bot is designed to travel on sidewalks and along roadsides, safely delivering smaller shipments to customers’ homes and businesses.

Bot features include pedestrian-safe technology from the iBot, plus advanced technology such as LiDAR and multiple cameras, allowing the zeroemission, battery-powered bot to be aware of its surroundings.

FedEx Corp. announced today a development in delivery solutions to meet the rapidly changing needs of consumers, the FedEx SameDay Bot, an autonomous delivery device designed to help retailers make same-day and last-mile deliveries to their customers.

With the bot, retailers will be able to accept orders from nearby customers and deliver them by bot directly to customers’ homes or businesses the same day. FedEx is collaborating with select companies to help assess retailers’ autonomous delivery needs. On average, more than 60% of merchants’ customers live within three miles of a store location, demonstrating the opportunity for ondemand, hyper-local delivery.

“The FedEx SameDay Bot is an innovation designed to change the face of local delivery and help retailers efficiently address their customers’ rising expectations,”said Brie Carere, Executive Vice President and Chief Marketing and Communications Officer for FedEx. The FedEx bot is being developed

Etihad Airways transports the Special Olympics Flame of Hope to Abu Dhabi Etihad Airways, official airline partner of Special Olympics World Games Abu Dhabi 2019, has delivered the World Games Flame of Hope to the UAE capital. The flame was carried in a specially designed cradle yesterday on a Boeing 787-9 aircraft sporting the airline’s new Special Olympics livery.

A symbolic arrival ceremony was held at Abu Dhabi International Airport’s VIP Terminal to celebrate the occasion, attended

by HE Sheikh Nahyan Bin Mubarak Al Nahyan, UAE Minister of Tolerance; HE Hessa Bint Essa Buhumaid, UAE Minister of Community; Khalfan Mohamad Al Mazrouei, Managing Director, Special Olympics World Games Abu Dhabi 2019 and VIP dignitaries and representatives from the Special Olympics..

The torch will be carried throughout all

seven emirates of the UAE from 4 March to 13 March before concluding its journey at the Opening Ceremony of the Games.

“Flying the World Games Flame of Hope from Athens to Abu Dhabi in the UAE’s Year of Tolerance is a tremendous honour for all of us at Etihad Airways,”affirmed Tony Douglas,

Etihad Aviation Group Chief Executive Officer.

Etihad Airways will ferry athletes, equipment, coaches, dignitaries, and media to Abu Dhabi for the event. The athletes will be accompanied by 2,500 coaches and delegates.

MARCH 2019 15

Almajdouie Logistics wins MRM Business Innovation Award

Saudi Arabia-headquartered and 1965-established Almajdouie Logistics was awarded the 10th Edition Mohammed Bin Rashid Al Maktoum (MRM) Business Innovation Award by the Dubai Chamber of Commerce and Industry for its commitment to ingenuity and continuous improvement.

Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation

Agility reports earnings increase of 18% for 2018, 15% in Q4-2018

2018 revenues were KD 1,550.2 million, an increase of 10.2% over 2017 Agility recently reported 2018 net profit of KD 81.1 million, an increase of 18.4% from 2017. Revenue for the year reached KD 1,550.2 million, and EBITDA was KD 154.8 million, increases of 10.2% and 14.5%, respectively.

For the fourth quarter 2018, Agility reported a net profit of KD 22.2 million, or 15.35 fils per share, an increase of 15.1% over Q4 2017. EBITDA for Q4 2018 was KD 40.8 million, an increase of 8.4%.

“Agility has improved profitability for shareholders for 10 consecutive quarters. In 2018, Agility posted double-digit EBITDA growth for the third year in a row,”said Tarek

16 MARCH 2019

Authority, Chairman of Emirates Group, and Chief Executive of the Emirates Group presented the award to Baheej Al Biqawi, CEO, Almajdouie Logistics, at a recent ceremony held in the Dubai Opera.

In attendance were more than 1,700 delegates, including dignitaries, government officials, and business leaders from the UAE and GCC.

The award recognises and celebrates businesses for outstanding practices and achievements in innovation, which contribute to the development of their country’s economies and serve as an inspiration for like-minded companies across the GCC. HH Sheikh Ahmed Bin Saeed Al Maktoum, President, Dubai Civil Aviation Authority, and Chairman & Chief Executive, Emirates Airlines & Group, honoured the winners of the 10th cycle of the MRM Business Awards and the 2nd cycle of the MRM Business Innovation Awards today at a prestigious ceremony hosted at Dubai Opera.

Commenting on the occasion, HE Sultan Bin Saeed Al Mansoori, UAE Minister of Economy and Chairman of Panel of Judges for the MRM Business Awards and MRM Business Innovation Awards, said the recognition have fostered a culture of excellence within business communities in the UAE and GCC, facilitated the adoption of best practices and raised industry standards.

Winners of the MRM Business Awards were selected by a high-level panel of judges chaired by HE Sultan Bin Saeed Al Mansoori. Among the panel judges were HE Mohammed Ahmed Bin Abdulaziz AlShehhi, Undersecretary for Economic Affairs, UAE Ministry of Economy; HE Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry and other officials.

Sultan, Vice Chairman and CEO, Agility.

Sultan said the company continued to invest in its future by building more than 1 million sqm of new warehousing and industrial facilities across the Middle East and Africa; building, through one its subsidiaries, the $1.2 billion Reem Mall mega project in Abu Dhabi; and investing more than $100 million in Shipa, its digital logistics platform.

Agility Global Integrated Logistics (GIL) revenue grew 8.6% to KD 1,153.1 million in 2018, driven by strong growth across core products. Net revenue also grew by 4.9% year-over-year, with 22.9% net revenue margins, as a result of better air freight yields and stable ocean freight yields.

In air freight, the fastest growing verticals were fashion, industrial and high-tech. In ocean freight, Agility saw strong trans-Pacific trade lane growth, particularly in anticipation of US-China tariff implementation.

Middle East Electricity 2019 puts the power sector in the limelight Power industry professionals from around the world will converge at Middle East Electricity 2019 during the first week of March, for the 44th edition of the region’s leading event for the power industry, to debate, promote and reshape the future of a sector beset by gamechanging disruption.

The exhibition features 14 exhibition halls, and an anticipated turnout of more than 60,000 industry professionals will discover more than 1,600 leading manufacturers and suppliers from all continents ready to promote a multitude of disparate technology.

MEE 2019 includes five dedicated sectors within a combined mega-show power generation; transmission and distribution; lighting; solar; and energy storage and management.

“From smart grids to bifacial solar panels and everything from generation to transmission, distribution and all touch points in between that are re-energising and recalibrating a sector on the tipping point of total transformation, MEE 2019 has it all,” explained Claudia Konieczna, Exhibition Director, Informa Industrial Group, organisers of MEE. “The industry is focused on discovering new business practices and technologies to address pressing issues of rising power demand, the need to control critical power costs and hasten the adoption of renewables to progress more sustainable business models,”added Konieczna.

Boosting the programme this year is the pioneering, opening day conference focusing on IoT lighting – the first of its kind in the region – when experts from the Middle

East, South America, Europe, India and the USA will probe the possible advances from leveraging IoT within the lighting sector and its ability to transform lifestyles.

Some of the biggest names and emerging players in the business will address the challenges, pinpoint growth opportunities and identify technologies and tactics needed to survive in a rapidly changing industry. The conference will also feature case studies from Saudi Arabia, Egypt, Lebanon and Ghana, as well as the unveiling of new research on preventative maintenance for international combustion engines using AI and big data.

Middle East Electricity is being held against a backdrop of a bullish forecast by the Arab Petroleum Investment Corporation (APICORP). The multilateral development bank has predicted the MENA region’s power capacity will expand by an average of 6.4% annually by 2022, corresponding to additional capacity of 117 gigawatts and requiring US$ 152bn of investment in generation capacity.

MARCH 2019 17

Abu Dhabi (DOT), which included an Aviation Sector Stakeholders’ Forum that focused on key challenges in aviation, and a tour to Etihad Airways facilities.

The delegation included dignitaries and leaders from various Civil Aviation Authorities within the region, which included the Kingdom of Morocco, Palestine, the

Hashemite Kingdom of Jordan, the Kingdom of Bahrain, Yemen, Libya, Lebanon, Egypt, the Sultanate of Oman, the Kingdom of Saudi Arabia, Kuwait, Iraq and Sudan.

The high level delegation was welcomed to a two-hour tour around the key features and facilities of the future airport terminal. The aim was to deliver a full passenger experience of all the travel processes involved.

The visit started at the MTB car-park where guests were presented with brief introduction of the new terminal, then moved through the facility’s walkway to the departure hall. The delegation then moved to the transit area where they saw the vast space for the duty free, F&B, and hospitality offerings.

From there, the group moved towards Pier 4 into one of the departure gates to reach the arrival level. The guests exited the new terminal following their arrival process, which allowed them to experience the entire passenger travel journey whether departing from or arriving to the new gateway.

“We are building future capacity not only for Abu Dhabi, but for the entire region, which will have a tangible impact on the sustainability of the economic growth and development locally and regionally,” commented Bryan Thompson, CEO Abu Dhabi Airports.

extension on schedule in the coming months, announced Eric Casey, CEO .

Extension of the dock and crane rail should be completed this summer at a cost of US$17 million. Also, in process is enhancing warehouse storage by increasing racking for palletized cargo and upgrading the roof to improve safety and security. “In the coming months we’ll commence work to upgrade the cargo throughput capability from 350,000

TEUs to 600,000 TEUs and add capacity for roll-on roll-off cargo,”Casey said.

Casey was appointed CEO of GT USA Wilmington in October 2018. He earlier was Vice President of Virginia International Terminals and an executive at Maersk Line.

GT USA Wilmington, a subsidiary of Gulftainer, the world’s largest privatelyowned independent port operator and logistics company based in the United Arab Emirates, signed a 50-year concession agreement in September 2018 to operate and expand the Port of Wilmington, Delaware, which has served shipping lines and customers since 1923.

As part of the concession agreement to expand the Port of Wilmington, Delaware, Gulftainer will invest significantly in the port and on a new container facility at DuPont’s former Edgemoor site.

GT USA Wilmington also will establish a training facility at the development site specifically for the ports and logistics industries that is expected to train up to 1,000 people a year.

Abu Dhabi’s Midfield Terminal hosts leaders from the regional aviation community Abu Dhabi Airports recently hosted leaders from various civil aviation entities within the region for a tour of the Midfield Terminal Building (MTB), to witness the future gateway and the largest infrastructure project within the Emirate.

The tour was part of a networking event organized by the Department of Transport

GT USA invests US$17 million in infrastructure at the Port of Wilmington GT USA Wilmington, the US division of the global logistics company Gulftainer, has begun work on the initial set of major improvements at the Port of Wilmington and is on track to complete warehouse improvements and dock and crane rail

18 MARCH 2019

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KUWAIT COUNTRY REPORT

20 MARCH 2019

KUWAIT COUNTRY REPORT

Kuwait

on a roll with upgrades and expansion of infrastructure, transportation and energy projects

Kuwait is wealthy nation with a very high per capita income. It has developed a welfare state, financed almost entirely by oil revenues. The country’s growth is fuelled mainly by hydrocarbons account for an overwhelming percentage of the revenues and GDP. The five-year Development Plan (2015-2020) contains several large infrastructure, transport and refinery projects. The public sector dominates the economy and accounts for three-quarters of the country’s wealth

W

ith 6% of the world’s proven oil reserves and 1% of its natural gas, hydrocarbons continue to constitute the backbone of Kuwait’s economy.

Given that the energy sector accounts for 90% of exports and government revenues, state coffers have been under strain as a result of the 2014 fall in oil prices, a recent jreport on the Northern Gulf nation by the Oxford Business Group has revealed.

However, the resurgence in global commodity markets bodes well for the future and has led to a to a renewed sense of optimism for investors as the government forges ahead with diversification efforts under the auspices of

MARCH 2019 21

the Kuwait National Development Plan, or New Kuwait.

Unveiled in January 2017, the plan sets out long-term development priorities that are being pursued through 164 strategic programmes organised into five themes and seven pillars. These include positioning Kuwait as a global hub for the petrochemical industry and tripling foreign direct investment.

Upgrades, expansion Meanwhile, work continues on upgrades to the country’s infrastructure, with the expansion of Kuwait’s international airport well under way and a high-speed international railway set to connect the country to Iraq and eventually link up with the proposed GCC rail network.

With major new development projects under way across all transport sectors, Kuwait is pouring billions of dinars into transforming its roads, ports and airports. The country’s medium-term objective is to capitalise on its strategic location in order to become the northern nexus of the Gulf, facilitating and profiting from flows of international trade across the region for decades to come.

In the shorter term, Kuwait faces challenges in tackling delays and congestion that slow the flow of goods and people around the country and across its borders.

New gateways: Developments promise to improve transport by land, sea and air With major new development projects under way across all transport sectors, Kuwait is pouring billions of dinars into transforming its roads, ports and airports. The country’s medium-term objective is to capitalise on its strategic location in order to become the northern nexus of the Gulf, facilitating and profiting from flows of international trade across the region for decades to come. In the shorter term, Kuwait faces challenges in tackling delays and congestion that slow the flow of goods and people around the country and across its borders.

SECTOR SIGNIFICANCE: Activity in the transport sector made a significant and growing contribution to Kuwait’s economy in 2017. According to data from the Central Statistical Bureau (CSB), sector GDP rose by 11% at current prices to KD1.3bn ($4.3bn) and by 6% at constant prices to KD1.2bn ($4bn).

22 MARCH 2019

That year the industry contributed 6.6% of non-oil and 3.6% of total nominal GDP, and 7% of non-oil and 3.7% of total real GDP. The Public Authority for Civil Aviation revealed in June 2018 that the transport, storage and communications sectors employed 69,421 private sector workers and 102 government staff at that time.

GOVERNMENT SUPERVISION: A number of different government bodies have responsibilities pertaining to transport. The portfolio of the Ministry of Communication includes transport, postal services and telecommunications, and the ministry originally held responsibility for road and maritime transport issues.

Amiri Decree 115 of 2014 established the Public Authority for Roads and Transportation (PART), giving it responsibility for delivering an integrated and sustainable land transportation system for Kuwait. Its board of directors includes representatives from 11 government ministries and departments.

PART was tasked with planning the introduction of light rapid transit and rail solutions. The Ministry of Public Works (MoPW) also plays a key role in commissioning, tendering and overseeing infrastructure projects.

In May 2018 a review of major projects by the National Bank of Kuwait’s (NBK) economic research department reported that the MoPW was reviewing PART’s mandate for overseeing transport schemes following parliamentary questions about its role and interactions with other government agencies.

The Directorate General of Civil Aviation (DGCA) was formed in 1975 when the government’s Civil Aviation Department was renamed. Its duties include air safety and the development of the aviation sector, while the Kuwait Ports Authority’s jurisdiction includes maritime traffic and control of the country’s seaports and terminals. The Ministry of Interior oversees visas, immigration and the monitoring of traveller numbers.

TRAFFIC INDICATORS: Data collated

KUWAIT COUNTRY REPORT

While these aspects of the study are indicative of the physical state of the country’s road, maritime and aviation infrastructure, Kuwait’s goods market efficiency rank of 89th is more a reflection of the performance of its systems and processes. The report ranked Kuwait 103rd under the heading“burden of customs procedures”, while a survey of Kuwaiti business leaders revealed that the most common complaint, registered by 21.7% of respondents, was the ongoing presence of inefficient bureaucratic procedures.

World Bank reports

by the CSB for 2016 shows that traffic on Kuwait’s roads, and through its ports and airports increased significantly between 2007 and 2016. In those 10 years the numbers of vehicles on the roads grew by 55%, from 1.29m to 2m.

Furthermore, private car numbers increased at the same rate, from 1.03m to 1.6m, and private trucks increased by 56%, from 165,252 to 258,394. The number of construction vehicles rose by 78%, from 12,594 to 22,441.

Over the same ten-year period, Kuwait’s ports saw tonnage handled increase by 51%.

From 2012 to 2016 the volume of sea cargo loaded and unloaded increased by 20%, from 39.9m to 42.3m tonnes, while the throughput of twenty-foot equivalent units (TEUs) or containers, including imports and exports, grew by 21.5%, from 824,196 to over 1m TEUs per annum.

The most significant increases in traffic in the ten years from 2007 to 2016 were seen at Kuwait International Airport, which has

a maximum capacity of 7m passengers. The number of flights grew by 77%, from 54,773 to 96,990, while passenger numbers grew by 70%, from 6.9m to 11.76m. The DGCA revealed in early 2018 that annual passenger numbers had grown 17% since 2016, reaching 13.7m – almost double the intended maximum capacity of the facility.

INTERNATIONAL INDICES: The congestion experienced by travellers and shipping companies is reflected in Kuwait’s ranking and performance in a number of key international indices. In the World Economic Forum’s 2017 Global Competitiveness Index of 137 countries, Kuwait’s rank fell from 38th to 52nd.

The index compares 12 pillars of each economy, with infrastructure and goods market efficiency being particularly relevant to assessments of its transport sector.

Kuwait’s infrastructure as a whole ranked 64th, and in the sub-categories for roads, ports and airports it placed 63rd, 78th and 117th, respectively.

The World Bank publishes two separate reports that give indicators on transport and logistics.“Doing Business 2018”ranked Kuwait 96th out of 190 countries, and calculated that the country’s distance to the frontier was 61.23, where the optimum score is 100.

Across the 10 categories, Kuwait’s lowest score was in an area of the economy with great pertinence to transport and logistics: trading across borders. By this measure Kuwait ranked 154th out of 190, and had a distance to frontier score of 54.24. The report noted that border compliance for exports took 96 hours to receive, and it took the same length of time to obtain documentary compliance for imports. Import border compliance took 89 hours, with businesses waiting up to 72 hours for export document clearance. It was also costly, with exporters paying $602 plus $191 for border and export compliance, and importers charged $491 for border compliance and $332 for import documents.

CUTTING RED TAPE: In June 2017 the World Bank surveyed all countries in the Doing Business report in order to establish whether or not port authorities and Customs officials were using two specific digital methods to encourage speedy and effective clearance: a Customs Electronic Digital Interchange (EDI) system and an Electronic Single Window (SW). Kuwait was using the Global Link EDI system for all imports and exports, but it did not have an SW system installed.

The World Bank observed in 2017 that using a single electronic gateway to submit online documents to every relevant government agency at once has enabled many trading nations to become more efficient and competitive. However, it noted that is not possible to install a one-off“plug and play”system that is used elsewhere in each country, and many economies

MARCH 2019 23

KUWAIT COUNTRY REPORT

are held back by lack of coordination and digital awareness among their disparate government agencies.

ROAD WORKS: As it strives to ease traffic congestion on highways, Kuwait is investing billions of dinars in road building.

At the end of 2016 the country had 7620 km of paved roads, representing a 25% increase in its street network since 2007. 102 km of new roads were laid in 2016, which matched the progress made in 2015. Although there were some delays in new project awards in the second half of 2017, work continued on major infrastructure schemes, as well as on new suburban streets.

The most high profile highway scheme that is under way in the country is the construction of two bridges that will connect Shuwaikh Port with the western tip and northern shores of Kuwait Bay. The 12.4-km Doha link will carry three lanes of traffic in each direction and create major new intersections that are expected to serve Kuwait for the next 30 years.

At the eastern extreme, the Shuwaikh interchange will serve as the starting point for both new bridges. Traffic heading west will come to the Doha interchange and can then turn south on the Doha Peninsular Road to the new Entertainment City interchange.

Traffic heading north from Shuwaikh will take the Sheikh Jaber Causeway to the Subiyah district, a journey that will reduce the driving distance from 104 km to 36 km.

It will form a strategic highway carrying traffic from Kuwait to the site of the planned Silk City development and beyond to Boubiyan Island, drawing together the northern and southern parts of the country. Work commenced on the KD738m (US$2.5bn) causeway project in November 2013 and is due to be completed by November 2018.

ROAD TENDERS: A number of the key road building projects awarded to construction companies in 2017 and 2018 were related to the development of Subiyah and the surrounding area. These include a KD212m ($703m) project for infrastructure, consisting of roads in South Al Mutlaa, and additional works tendered by the Public Authority For Housing Welfare in the first few months of 2018.

It was anticipated that an additional crossroads construction project for South Al Mutlaa would be awarded in 2018, after a

24 MARCH 2019

KD85m ($282m) bid encountered problems obtaining credit for the scheme. Furthermore, the existing road network is being enhanced with a new KD26m ($86m) intersection at Fifth Ring Road and King Abdul Aziz Road.

In the first three months of 2018, projects with a combined value of KD139m (US$461m) were awarded to improve Kuwait’s Regional Road South and to complete works on the Northern Regional Road from Abdaly Expressway to Future Crossroads.

SEA PORTS: Kuwait is served by three seaports. Shuwaikh Port is 4055 metres in length, and has 21 berths. Seven of these can accommodate vessels with deeper drafts: three with 6.7-metre depths and four with 8.5 metres. Vessels with 9.5-metre depths are able to dock at high tide. Berths 10, 12 and 13 receive container ships and have gantry cranes with 65-tonne capacities.

The port has 16 closed warehouses and a total area of 170,323 sq metres. Shuaiba Port is 4068 metres in length, and has 20 berths with depths ranging from 7.5 to 14 metres.

Four are dedicated to container handling and are equipped with seven container gantry cranes, each with a capacity of 56 tonnes.

Kuwait National Petroleum Company also operates an oil pier at the port, which has a depth of 16 metres and exports sulphur and petroleum coke. Meanwhile, Doha Port (a small coastal port in Kuwait) has a depth of 4.3 metres and is used by dhows, barges and coastal vessels operating between Gulf ports.

Maritime trade is a central focus of the New Kuwait 2035 vision, and Mubarak Al Kabeer Port on Boubiyan Island is expected to be a major regional hub after its scheduled opening in 2019. With an anticipated final investment of KD1.2bn ($4.0bn), Mubarak Al Kabeer Port will have 24 berths and a capacity of 8.1m TEUs. In March 2018 Kuwait Investment Forum was advised that Mina Mubarak Al Kabeer was 51.5% complete. Kuwait is not the only country in the Gulf investing in considerable increases in port infrastructure. In particular, Dubai is planning new capacity of 3.1m, 1m and 4m TEUs at Jebel Ali’s Terminal four, two and three, respectively.

AIRPORT EXPANSION: Kuwait’s overcrowded international airport has been the focus of several expansion projects. In August 2018 a support facility, Terminal 4,

opened as a stop-gap measure while work on the new $4.3bn Terminal 2 continued. Terminal 4 will be used exclusively by the national carrier Kuwait Airways. The KD52.89m ($175.4m), 55,000-sq-metre facility has nine gates and 2450 parking spaces.

Plans to build Terminal 4 were announced in 2015 when it became clear that the country could not wait for the major Terminal 2 project to be completed. Work on Terminal 2 began in 2017, and is being completed

by Turkish company Limak and Kuwaiti firm Kharafi International. Construction is expected to take four years and will increase capacity to 13m, with provision to grow to 25m in the future.

Investment in the Aviation sector Sheikh Salman Al Humoud Al Sabah, Director-General of the GDCA, told the Kuwait Investment Forum in March 2018 that more than $25bn is projected to be invested in the aviation sector in the years to come.

In addition to the construction of Terminal 2, a 3m-sq-metre temporary cargo facility called Cargo City will be built. Increasing volumes of cargo are driving demand for the new location.

The private airline Jazeera completed its own terminal (T5) at KIA in mid-2018. The new 4750-sq-metre terminal has a capacity of 2.5m passengers and parking for 350 vehicles. In 2017 the company saw revenues climb by 7.3% to KD56.6m ($187.7m) while net profits fell by 23.7% to KD8.2m ($27.2m).

Another private Kuwaiti airline, Wataniya Airways, invested $2.7bn ($9.0bn) in 2017 in a fleet of 25 Airbus A320neo aircraft. In June 2017 the DGCA granted Wataniya a licence to operate from Kuwait Airport.

OUTLOOK: With the opening of its new causeways, port and expanded airport, Kuwait’s ongoing investment in its land, sea and air infrastructure should yield positive results by the early 2020s.

Each of these new facilities has an important role to play in the country’s longterm goal of diversifying, moving its economy away from oil and reinventing itself as a vibrant trade centre in the northern Gulf.

(Global Supply Chain thanks Oxford Business Group (OBG) for the publication of this report extracted from ‘The Report: Kuwait 2018 – Transport & Logistics.’)

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COVER STORY: THE TRISTAR GROUP

26 MARCH 2019

COVER STORY: THE TRISTAR GROUP

Purpose Driven Business:

Traversing a Stellar Trajectory

Group makes forays in US Mainland: Acquires crude oil terminal in Louisiana In an exclusive interview with Global Supply Chain in his well-appointed office in Dubai and from his apex position, Eugene Mayne, CEO, Tristar Group, provides an intimate and animated narrative of the exponential rise of the company, the accomplishments, current opportunities and challenges and his plans and vision for the future.

I

n the realm of integrated liquid logistics both in the region and globally, one indigenous company is a stand-out. From modest beginnings in 1998, the multi-award winning, multinational Tristar Group has had a meteoric growth and now operates in 20 countries across the globe offering a slew of associated services.

The long-established Tristar Group, headquartered in Jebel Ali Industrial 2, is an imposing sight in Dubai’s leading industrial enclave. The sprawling yard houses dozens of imposing, brightly painted, signature tri-colour green red and black 18-wheeler tanker trucks, a fraction of the over 1,500 strong fleet owned by the company.

The company, founded by Eugene Mayne in 1998, the consummate professional and visionary entrepreneur, following a brilliant 22-year career with Caltex, had small beginnings with limited capital and minimal resources but plenty of ambition, grit, determination, extraordinary leadership and the will to succeed. That resolve and fortitude have now paid off handsome dividends and the company is now in the big league of oil and gas supply chain with a highly motivated workforce and well developed capabilities.

MARCH 2019 27

Global Reach From its Head Office, the company oversees operations in the Tristar World in 20 countries and territories across the globe from the US-territory of Guam, half a world away in the East to Haiti in the West, Tristar is a fully integrated liquid logistics solutions provider catering to the needs of the petroleum and chemical industries, both in the region and globally.

Tristar’s core expertise lies in handling hydrocarbons, lubricants, chemicals and liquid gases with dedicated facilities to manage road transport, warehousing, fuel farms, turnkey fuel supply operations, into plane fuel services, chemicals distribution, and ship owning and chartering for clean petroleum products.

Today, Tristar is the partner of choice to a number of major multinational and regional oil companies.

The company counts ADNOC, Shell, BP, Total, ENOC, ExxonMobil, Linde and Dow Chemical- oil majors and blue-chip, premium accounts among its customers. The company has progressed considerably along the way, traversing competition and challenges and ensuring operational excellence and espousing strong values.

Mayne has consistently been listed among the top 25 most influential logistics executives in the Middle East for six consecutive years and is also counted among the Top 100 Indian Leaders in the Arab World for five consecutive years.

Global Supply Chain: To what do you attribute the success of the Tristar Group?

Eugene Mayne: Our investments in developing

capabilities and competence combined with our expertise, experience, excellence and work ethos and ethics has yielded rich dividends. Over the past 20 years since our inception in 1998, we have built and developed a model that addresses the needs and finds solutions to customers’ challenges. We now operate in 20 countries in multiple time zones across several continents.

Our success is founded and built around customer focus. We offer superior services developing, earning, reinforcing customer loyalty and satisfaction. We are highly customer oriented and we are all about striving to keep our customers happy. We do not compromise on the quality of our service and are totally committed to serving our customers to the highest standards of professionalism.

This has been instrumental in building a lot of strategic relationships and we have grown both our businesses and our customer base comprising several top oil majors whose size, scale and extent of operations have enabled our growth. We now have a highly diversified portfolio offering an extensive repertoire of top grade services.

Safety is and will always be our first and primary consideration and at the bedrock of our business.

28 MARCH 2019

Momentous Milestones: Growth Timeline Tristar was established by Eugene Mayne in 1998 out of the need for a safe and reliable road transport company for the petroleum industry in the UAE. The road transport business was soon complemented by a wide range of best in class warehousing and lubricant distribution centers.

In 2003, Tristar joined hands with Kuwait-based Agility which is one of the world’s leading providers of integrated logistics services.

A year later, in 2004, Tristar Energy was set up to enable the company to engage in the ship owning and chartering business.

In 2007, Tristar entered the continent of Africa to manage one of the largest turnkey fuel supply contracts awarded to any company in the continent by an international non-governmental organization.

Tristar won a second fuel supply contract in Africa in 2009. Also in the same year it acquired a four-millionbarrel capacity storage facility in the Pacific island of Guam for holding strategic fuel reserves.

In 2011, Tristar established its commercial aviation wing for into plane services at the Juba International Airport in the capital of South Sudan.

In 2012, it established its Lubricants Distribution business in East Africa with Nairobi, Kenya as the main base.

It also started its coastal bunkering service in Mauritius and turnkey fuel supply operations in Haiti.

In 2013, Tristar expanded its Road Transport operations in Saudi Arabia and ordered six new MR product/ chemical tankers with Korean shipbuilder Hyundai Mipo Dockyard to be delivered in 2016.

In 2016, Tristar acquired 100 percent ownership of Abu Dhabibased Emirates Ship Investment Company also known as Eships from Egon Oldendorff GmbH & Co. KG, a company of the Oldendorff Group.

In the same year, Tristar commissioned its multi logistics polymers facility at JAFZA South which is a one-stop shop of polymers logistics services and also offers specialized warehousing for chemicals, dangerous goods and polymers. The facility has an automatic ISO tank cleaning station.

In 2017, Tricore FZC, the

agrochemicals toll manufacturer of Tristar, was in full operations and backed by a team with in-depth knowledge for the development, production and use of a wide range of additives and adjuvants for agrochemical formulations.

In 2018, it acquired the Shell Chemicals Terminal inside JAFZA which is situated on a 21,000sqm water facing lot and consists of nine above-the-ground storage tanks with a capacity of 5,505CBM, a jetty with three pipeline connections to the tanks, truck loading gantry and drumming facility. The company expanded into the US mainland with the purchase of a 300,000-barrel crude oil terminal that feeds into the deep water port of Louisiana in the Gulf of Mexico.

Under Mayne’s leadership Tristar has grown from a local transport company to a fully integrated liquid logistics solutions provider and a Ship Owning company offering best in class services to the downstream oil and gas industry.

The shipping business under Eships now owns and operates 26 chemical (with 6 new orders arriving in 2020), oil and gas tankers globally mostly with Oil Majors. All Tristar vessels are maintained to the highest safety standards and undergo Ship Inspection Report Programme (SIRE).

River transport operations support the company’s fuel operations in large parts of Africa using purpose built fuel barges to overcome navigational challenges in the inland waterways of Africa. Coastal vessels are operated to support the company’s bunkering operations in and around port limits in the GCC and Africa.

Tristar counts a host of national and international oil companies and NGOs as its customers. The company is present in 20 countries in the Middle East, Africa, Asia, the Pacific and the Americas.

Tristar is a two-time winner of Dubai Government’s Quality Awards, a six-time winner of UK-based RoSPA’s Gold Award on Occupational Health and Safety, and a recipient of the Prince Michael International Award for Road Safety and the Sheikh Khalifa Excellence Award for its efforts and obligation towards continuous improvement aimed at enhancing business and operational excellence.

COVER STORY: THE TRISTAR GROUP

30 MARCH 2019

COVER STORY: THE TRISTAR GROUP

We will never compromise on aspects of security and protection of our employees as well as the products we transport and handle.

Sustainability is also at the core of our business credo and we are devoted to adhering to and meeting the ‘2030 Agenda’ United Nations Sustainable Development Goals (SDGs).

GSC: How did the Tristar Group perform in 2018 vis-à-vis 2017?

EM: We performed well in 2018; registering a

growth rate in the higher single digits which is commendable given the challenges and volatility of the business both at the regional and international levels. We reported a considerable hike in our maritime transportation business reflected both in volume and rates.

We expect this trend to continue in 2019, following two long-term charter agreements signed with SABIC through our Saudi Arabian subsidiary and joint venture United Stars, to provide transportation services for downstream chemicals and from the production plants in Jubail in the Eastern province and Yanbu on the western Red Sea coast to customers within the Kingdom and the GCC countries.

The chartering business component is expected to grow even further as we take delivery of the remainder of the previously ordered MR (medium range) chemical carriers from Hyundai’s Mipo Dockyard in South Korea in the run up to 2020. This will substantially boost our existing capacity resulting in potential additional business. With these acquisitions coming on stream, our fleet is expected to be enhanced greatly. Currently, with almost 30 ships, we are one of the largest privately owned shipping companies in the region.

GSC: You were recently conferred with the prestigious ‘Golden Peacock Global Award for CSR’ in India. Brief comment please?

EM: The award is testimony to and

recognition of our continued engagement with Corporate Social Responsibility (CSR) consistent with the United Nations Sustainable Development Goals that we espouse. As a responsible corporate citizen, we take accountability seriously and will not pass by any opportunity to make a difference.

We ensure that the culture of safety that we have cultivated within our institution is scrupulously followed. This is also in the best interests of all stakeholders involved.

Furthermore, we empower our employees with periodic training programs and special skills, reward good performers, as well as develop communities and the environment around our business locations as part of our CSR regime.

GSC: What are the projections for 2019? And what are the opportunities and challenges for the Tristar Group going forward?

EM: We are a fast growing company and

as our track record demonstrates we are in growth mode and fully intend to spread our wings. We are excited that this year, as in previous years, we definitely have plans for growth in the pipeline.

While I cannot divulge specifics, I would like to describe our future development plans as work in progress. We clearly have sights and designs on growth in India, a growing economy, on the back of our existing networks, where we foresee tremendous potential.

We also plan to make some strategic acquisitions in sync with our corporate objectives and further empower and energize our operations. Several options are currently on the table. Clearly it would be premature for me to divulge details at this juncture.

GSC: What advice would you like to impart to young entrepreneurs and what legacy would you like to leave behind?

EM: Even as a young boy, I was always

a dreamer. I am defined by ambitions and aspirations. However, I am also the consummate realist. I am driven to succeed through tenacity, performance and hard work.

I always had the entrepreneurial streak in me and in the course of my early career with some of the finest corporate names, I developed the urge to make the foray in the rough and tumble of the business world.

I believe one should be in business for the long-haul and not short term gains. As a business owner, I am convinced that it is best to aim high and prepare for the long-term.

This is a process that plays out in the reality of the market place and in the real-time business world. There is no magic wand to success and tenacity, persistence and staying the course, are vital virtues for the successful entrepreneur.

GSC: From your position at the helm and looking into your crystal ball, what is your

Tristar named logistics service provider of the year

Tristar has been recognized by the petroleum and chemical industry as a logistics leader in the region when it was given the Logistics Service Provider of the Year award at the Oil & Gas Middle East & Refining & Petrochemicals Middle East (RPME) Awards held in Dubai.

GM for Road Transport and Warehousing Shivananda Baikady received the award. He attributed the company’s success to the trust given by its customers, mostly Oil Majors, on its safety culture and best in class services.

The recognition is also timely for the company founded by Group CEO Eugene Mayne in 1998. Tristar recently consolidated its presence in Jebel Ali Free Zone (JAFZA) with the acquisition of the Shell Chemicals terminal which will complement its existing Dangerous Goods (DG) facility in the South Zone which currently houses a wide range of packed chemicals and petroleum products.

vision for the future of the Tristar Group?

EM: I continue to pursue the vision of

building a trusted and dependable global brand. This is my vision for the Tristar Group. Towards accomplishing this goal, I embrace the qualities that define our corporate values—discipline, diversity, inclusiveness, involvement, performance and professionalism among other virtues.

My philosophy is that a business exists for a lofty purpose not just profit. The success of any business is the outcome of all of these characteristics acting in unison and I wish for all of my employees to embody these to the extent possible. I wish to bring out the best in my employees and fellow partners in the business.

Good qualities of head and heart. That is the legacy I would like to leave for the future.

MARCH 2019 31

COVER STORY: THE TRISTAR GROUP

Diversity in Tristar with more than 30 nationalities working in 20 countries. Photo shows head officebased seniors and staff from (left to right) Pakistan, Philippines, Mali, Italy, South Sudan, India and the UK

Workshop with external stakeholders for Tristar sustainability report Tristar recently conducted an External Stakeholder Consultation Workshop for its forthcoming annual sustainability report.

The workshop was attended by

customers, suppliers, government regulators, community partners and a representative of the United Nations Global Compact (UNGC).

The external stakeholders were

asked to complete a materiality assessment form that contains the 10 principles of the UNGC covering labour, human rights, environment, and anti-corruption. Eugene

Mayne also shared with them the company’s efforts in supporting the Dubai Police’s goal to reduce to zero the number of fatalities on Dubai’s roads by the year 2020.

Tristar External Stakeholders Consultation Workshop

32 MARCH 2019

COVER STORY: THE TRISTAR GROUP

Tristar acquires Shell Chemicals terminal in JAFZA

Tristar Group further consolidated its presence in Jebel Ali Free Zone (JAFZA) with the acquisition of the Shell Chemicals terminal in JAFZA in a deal that was signed on July 31, 2018 between Eugene Mayne and Jack Eggels, General Manager Chemical operations EU-AfricaMiddle East for Shell. Tristar officially took over the facilities on January 2, 2019. The Shell Chemicals terminal is situated on a 21,000sqm water facing lot and consists of nine above-the-ground storage tanks with a capacity of 5,505CBM, a jetty with three pipeline connections to the tanks, truck loading gantry and drumming facility.

Under the terms of the deal negotiated with Shell and JAFZA, Tristar will undertake a capacity expansion and terminal modernization program over the next five years which will

Eugene Mayne (R) and Jack Eggels of Shell Chemicals (both seated) with their teams

see the capacity expand to over 25,000CBM and designed to house a wide range of all types of Solvents and Industrial Chemicals.

Shell will continue to remain a customer under the terms of a services agreement signed

between the two companies.

“With this acquisition we now have access to a truly turnkey and fully integrated distribution service with our ability to now handle bulk imports and offer storage and distribution of both bulk

and packed chemical products.

This facility will complement our existing Dangerous Goods (DG) facility in JAFZA South Zone which currently houses a wide range of packed chemicals and petroleum products,” disclosed Mayne.

4,000 BBLs per hour.

“This is a strategic investment that will not only complement Tristar‘s fuel farm business but also positions Tristar for an entry into the lucrative shale oil Industry in the US,” affirmed Mayne.

In 2009, Tristar bought Shell Guam Agat Fuel Facility which is spread across 237 acres on the Pacific Island of Guam, making it one of the largest fuel storage terminals in the Pacific with a storage capacity of 4.2 million barrels.

Tristar acquires crude oil terminal in Louisiana Tristar Group also acquired a 300,000 barrel crude oil terminal that feeds into the deep water port of Louisiana in the Gulf of Mexico.

The Canal Crude Oil Terminal is within the Louisiana Offshore Oil Port (LOOP) which is a deep-water

port in the Gulf of Mexico off the coast of Louisiana.

The terminal acquired by Tristar, which is spread across 50 acres with 18 tanks, is capable of storing almost 350,000 BBLs. It has a loading capability of 3,000 to

Tristar Group’s fuel farm in Guam

MARCH 2019 33

COVER STORY: THE TRISTAR GROUP

Tristar clamps down on non-reusable plastic at its SOHAR Port operations The Tristar Group has decided to ban non-reusable plastic materials in its shipping operations at SOHAR Port and Freezone commencing 2019. This was announced at the recent Sohar

Safety Summit with the theme ‘Drive Change in Safety Culture’.

“Tristar is determined to supporting the World Environment Day theme of ‘Beat Plastic Pollution’ by refusing

items that cannot be reused,” remarked Henri de Gersigny, General Manager, Tristar Ship Management.

Plastic has been highlighted as one of the biggest environmental

threats facing the world by the UN. As much as 8.8mn metric tons of plastic trash is washed into oceans every year. If unchecked, it is estimated that plastic, by 2050, will outweigh fishes in the ocean.

Tristar employees pledge to desist the use of platics at Sohar Port

Tristar presented with India’s prestigious ‘Golden Peacock Global Award’ Eugene Mayne received the prestigious ‘Golden Peacock Global Award for Corporate Social Responsibility’ from the Institute of Directors (IoD), in Mumbai, India.

Prakash Mehta, State Cabinet Minister for Housing Department, Maharashtra handed the awarded to Eugene Mayne, in the presence of IoD officers.

Tristar’s CSR thrust is to give back to communities where it operates. In Africa, one major project is aligned with UN Sustainable Development Goals (SDG) Number 4 on ‘Quality Education’. The company has been supporting and funding the development of local schools and facilities in South Sudan and Kenya.

Over 2,000 students have benefited from the school building and classrooms Tristar donated in South Sudan since 2009, while two new sanitary facilities with the latest fixtures were recently built for the 2,000 students at the Kiserian Primary School in Kajiodo County in Kenya.

Eugene Mayne receives the ‘Golden Peacock Global Award’ in Mumbai, India

34 MARCH 2019

SSI SCHAEFER: AHEAD IN AUTOMATION

A logistics industry Maintaining primacy with pioneering and ingenious solutions for the

Global intralogistics market leader impresses with a comprehensive portfolio at LogiMAT 2019 36 MARCH 2019

s E-Commerce expands exponentially, businesses are encountering multiple challenges and are under increasing pressure to improve and streamline operations.

From its 400m² Pavilion at the recently concluded LogiMAT 2019, the international trade fair for intralogistics solutions and process management in Stuttgart, Germany, SSI Schaefer demonstrated its broad portfolio of services and solutions for diverse requirements and industries.

SSI SCHAEFER: AHEAD IN AUTOMATION

Service 4.0’s digitalisation is not only revolutionising mainstream production and logistics systems but also ancillary business process such as service and support. With its core expertise and long experience in these fundamental areas, SSI Schaefer is well positioned to offer a broad portfolio of services using sophisticated technologies.

SSI Schaefer continues to reinforce its lead through product and process innovation in tandem with its supremacy in IT solutions. The quality

Intralogistics now transcends beyond stocking and retrieving products. Thanks to technology, it is becoming increasingly sophisticated both as a business enabler and a determiner of competitive advantage. SSI Schaefer, the global intralogistics pioneering company, continues to stir and steer the industry with flexible scalable, sustainable and seamlessly integrated solutions

and efficacy of on-site and after-sales service is also very high.

Rapid Reaction Service Maximum availability for all systems and rapid reaction when service is required is critical to successfully operating a complex logistics system.

SSI Schaefer prides in being there for its customers as a reliable partner, wherever and whenever it is needed and for every contingency.

MARCH 2019 37

SSI SCHAEFER: AHEAD IN AUTOMATION

Whether it’s rapid problem solving, optimum system protection or service life extension, SSI Schaefer offers the following service types as part of its Customer Services & Support range: Reactive Services, Preventive Services and Life Cycle Management.

Reactive Services provide support around the clock, up to seven days a week. Schäfer Global Call Management enables customers to access the entire range of SSI Schaefer services and to obtain rapid support when needed. Particular time and cost savings are possible with SSI Augmented Support, the first multi-functional, mobile, realtime video communication system that provides everything necessary for efficient maintenance and repair work.

An on-site technician activates the SSI Augmented Support, which then establishes a connection to the SSI Schaefer service center.

As a result, specialists can take a close look at reported faults in real time and directly help technicians on the customer’s site to solve the problem. The result: fast, efficient troubleshooting, minimum downtimes, and therefore improved work processes.

38 MARCH 2019

Comprehensive System Protection Preventive services are carried out by specially trained service technicians with the help of the SSI Schaefer Computerised Maintenance Management System (CMMS).

It facilitates digital planning and control of all necessary maintenance measures and visualises the activities that have been carried

out at the press of a button. The continuous exchange of data between all elements ensures the creation of a consistent database for analyses, evaluations, and sustainable maintenance management. This in turn means that the potentials for optimisation can be fully utilised and costs can be gradually reduced.

SSI SCHAEFER: AHEAD IN AUTOMATION

Extension of Service Life Life Cycle Management by SSI Schaefer offers customised solutions for maximum system performance, service life, and availability. With the SSI Schaefer Maintenance Philosophy (SMP), the intralogistics expert offers its customers “more than just a service�. SMP is an

enhanced methodology for SSI Resident Maintenance.

Based on the SSI Resident Maintenance team, engineering and maintenance best practice processes, and integrated service tools and systems, SMP encompasses operating processes related to reactive system maintenance and includes upstream analysis

and advisory processes for continuous system maintenance and preventive activities.

Modular solutions, devised in-house by SSI Schaefer to specific customer needs, have played a vital role in logistics, especially in warehouses. From individual stock items to individual solutions for medium-sized companies all the way up to fully automated systems, the intralogistics specialists develop inventive products and customised solutions that enable the efficient organisation of goods for storage and transport.

At LogiMAT 2019 through a showcase presentation, SSI Schaefer illustrated how manual components can be combined with AGVs (automated guided vehicles) to form semi-automated solutions. As an example, its WEASEL accepts EF (EuroFix) and MF (MultiFunctional) containers from livestorage shelving, and conveys these along an optical path to a designated transfer point, all without the use of complex sensors.

Optimum Product Protection during manual or automated handling To safeguard products during transport, storage and handling, SSI Schaefer offers

MARCH 2019 39

SSI SCHAEFER: AHEAD IN AUTOMATION

Interview:

Global Supply Chain conducted an exclusive, wide-ranging interview with Matthias Hoewer, the longserving General Manager, Middle East & Africa (MEA), SSI Schäfer, in the run up to LogiMAT 2019.

He brought us to current on the technologies that are revolutionising the industry and also provided the lowdown on current developments.

made-to-measure engineered packaging.

These solutions are custom-made through thermoforming, ensuring the ideal protection and precise positioning of the products to be transported.

Digital transformation is changing intralogistics processes. It is having a particularly large impact on the supply chain: The new, digitised supply chain is more interconnected, intelligent, scalable, and flexible.

The LOGIMAT can be integrated into existing processes at any time and will adapt flexibly to individual requirements. As a small parts storage and picking solution in one system, the Vertical Lift Module can be used in any industry and is a space-saving alternative in which ergonomics, safety, and cost-effectiveness are the focus.

The software solution is designed to optimise storage and picking processes.

Thanks to simple, flexible integration options, it also offers a scalable introduction to automation. For example, several lift modules can be operated in conjunction or further system components can be incorporated to create an efficient end-to-end solution.

Examples of these advanced technologies included the spotlighting of the standardised piece-picking solution that can be deployed for typical picking tasks encountered in many industries. Also showcased was the SSI Flexi shuttle, designed especially for freezer environments.

AGVs make their debut Furthermore, the automated guided vehicle for loads up to 100 kg, from the partnership with DS AUTOMOTION, made its maiden appearance.

The company also presented a variety of IT solutions and efficient solutions for warehouse processes involving small load carriers.

40 MARCH 2019

SSI Schaefer teamed up with fpt, headquartered in Amtzell, Germany, to offer smart robotics that enable end-toend supply chain automation and deliver exceptional dynamism, flexibility and reliability. At LogiMAT, the two partners highlighted a standardised piece-picking system that combines multiple conveyor technologies to support a variety of order types and patterns.

As a result, it can be employed for common picking tasks across many industries. A key role is played by the WAMAS Vision software module, which reliably and accurately identifies individual items for picking.

The SSI Flexi single-level shuttle has a wide range of smart functions. It can serve storage positions of diverse dimensions, and offers maximum modularity. At LogiMAT, SSI Schaefer was able to provide an exclusive look at the shuttle’s energy-efficient design, based on super capacitors.

This makes SSI Flexi ideal for the highly dynamic storage of small load carriers in freezer environments – ensuring businesses are well-equipped to meet future requirements in these scenarios.

AGVs are a technology with a bright future. SSI Schaefer entered into cooperation with and invested in DS AUTOMOTION, an AGV specialist based in Linz, Austria, in 2018, extending its product portfolio. SSI Schaefer demonstrated the compact ‘Sally’ AGV for loads up to around 100 kg in a dedicated area.“Sally’ flexibly fulfills many conveying tasks, and navigates autonomously by means of simultaneous localisation and mapping (SLAM).

Global Supply Chain (GSC): How significant was LogiMat2019 for SSI Schaefer?

Matthias Hoewer (MH): LogiMAT is an event of great importance for all stakeholders of the industry. It is a point of convergence for the who’s who of the industry. For global intralogistics market leader SSI Schaefer, the international LogiMAT trade show is among the industry’s first highlights of 2019.

We met our customers and potential customers, we talked about concrete challenges and we discussed the approach in a co-operative manner. The dialogue with our customers, major enterprises as well as medium-sized businesses, was very focused.

GSC: What is the corporate message from SSI Schaefer at LogiMat 2019?

MH: At SSI Schaefer, we always think long-term and beyond the obvious, with intelligent solutions and top technologies for today and an even more advanced future for tomorrow. A practical ttitude, reliability, spirit of innovation, forward-thinking, and our ambition to be a long-term partner for customers and employees embody and characterise our corporate DNA. By putting all of this into a simple, yet significant phrase, it would be ‘Think Tomorrow’. This was also our motto at this year’s trade fair LogiMAT 2019. Here, we presented our full repertoire of sophisticated and dependable products and IT solutions for both standard warehouses and logistics 4.0 concepts, as well as major enterprises and medium-sized businesses alike.

GSC: Comment on your capabilities in Automation, AGV and AI? MH: Automation is becoming increasingly prevalent in logistics. Nevertheless, a fully automated concept is not always the ideal solution. Frequent product changes or seasonal volume fluctuations are indicators for the use of semi-automated processes.

That is why SSI Schaefer offers solutions and flexible combinations.

Automated guided vehicles (AGV) have become an integral part of intelligent solution portfolios for fully automated intralogistics

SSI SCHAEFER: AHEAD IN AUTOMATION

solution strategies will vary widely and will come down to specifics.

systems. The AGV fleet from SSI Schaefer features a diverse range of ground-breaking solutions for large and small load carriers, and makes it possible to create a logistics network comprising various warehouse and working areas in different industries.

SSI Schaefer offers intelligent, modular, flexible and transparent IT solutions for current and future intralogistics challenges. Our IT team, with a headcount in excess of 1,100, develops high-performance applications, and provides customers with in-depth advice on the intelligent combination of software with intralogistics equipment.

SSI Schaefer’s broad IT offering, including its own WAMAS and SAP products, delivers seamless support for all warehouse and material flow management processes.

Artificial Intelligence (AI) will bring many new opportunities in the future and will be an important driver for our industry as well.

GSC: What are the challenges and opportunities for the company going forward?

MH: Same-day delivery and shop-friendly delivery, e-commerce, omni-channeling, efficient production line provisioning – the increased requirements on modern intralogistics can only be tackled with efficient processes, an individually tailored degree of automation as well as specific industry know-how.

Intelligent, interconnected intralogistics with high-performance information technology play a key role in the future viability of companies.

Also, of critical importance is the industry-specific experience of the intralogistics partner. Drawing on this experience and expertise, our experts automate and optimise our customers‘ processes, supporting them with our software solutions.

While the challenges for internal material flows may be identical across sectors, the

GSC: How important are the Food & Beverage and Retail & Wholesale sectors for SSI Schaefer from a logistics automation perspective?

MH: Although many industry sectors face the same challenges with regard to their in-house material flow, their strategies and solutions are incredibly diverse. That is why SSI Schaefer has specialised in six market sectors, combining its extensive expertise: Food Retail, Food & Beverage, Retail & Wholesale, Healthcare & Cosmetics, Industry and Fashion.

The productivity demands on the food and drinks industry have grown significantly over recent years. An increasing diversity of products and continuous innovation in packagings make handling in conventional block warehouses uneconomical. This increases the need for efficient warehouse and picking solutions.

SSI Schaefer supports their customers with flexible and scalable solutions that significantly increase their efficiency and productivity, from the initial idea right through to delivery of the entire turn-key system. Our technologies cover all temperature ranges.

The traditional distinction between in-store and mail-order sales channels is increasingly disappearing. In many sectors, this has since morphed into an omni-channel model.

Customers can now buy at any time and from anywhere, whether by going to a shop as in the past or shopping online. They expect a fast and correct delivery of their goods, whether it’s to their home or a pick-up point.

SSI Schaefer deploys a comprehensive product and solution portfolio and a high level of IT expertise to produce customised and efficient solutions that meet the multiplicity of requirements in the Retail & Wholesale market sector.

Solutions that are tailored to the particular submarket sector, from furniture, electrical and electronic goods or office supplies through do-it-yourself, hardware and every kind of spare parts retailer to online retailers.

GSC: What specifically are your breakthroughs in automation for these specific industry segments? Provide one or two examples?

MH: In addition to classic storage-retrieval devices for pallets and containers, SSI Schaefer also offers the market’s most comprehensive range of shuttle systems. Whether these are single-level or multi-level shuttle systems, pallets, trays or cartons, our comprehensive range of systems has the perfect solution for every modern warehouse.

Wherever one needs optimised storage with rapid material transport-ensured access times, we offer customer-specific solutions.

Wherever standardised transport is necessary in a logistics environment, automated guided vehicles can be used to automate processes.

Utilising these systems significantly reduces operating costs while enhancing both efficiency and safety. SSI Schaefer’s fleet includes a diverse range of innovative solutions for large and small load carriers.

The vehicles can be flexibly integrated into every individual warehouse organisation: from simple transport applications to the goods-toperson principle to full automation in a single integrated system. Whereas the WEASEL is the perfect solution for transporting small articles, larger vehicles equipped with fork lifts or conveyor elements for pallets and roller containers increase the flexibility of transport, storage and picking.

GSC: How are these industry categories responding to technology changes in logistics and warehousing?

MH: For Food & Beverage in recent years the productivity demands on the beverage industry have risen significantly. Growing product diversity, such as mixed drinks, and constantly changing packaging, together with a trend toward singleuse containers often make handling using conventional block warehouses inefficient. This creates an increasing demand for efficient and flexible warehouse and picking solutions.

For Retail & Wholesale, the traditional differentiation between the sales channels retail business and mail-order business has often merged into one omni-channel model. End customers in particular benefit from the flexible, location-independent shopping experience.

The online business has also gained increasing importance in wholesale. Here, a fast and errorfree delivery to the desired location is essential.

GSC: How significant is the Middle East for SSI Schaefer?

MH: The worldwide success story of SSI Schaefer continues in the Middle Eastern region, where since we were first established, we now find ourselves located in a 3,000 sqm location which houses regional offices and distribution centre.

Regionally, SSI Schaefer MEA uses the same tools and resources that are used globally to design and plan the facilities for our clients.

One of our biggest advantage is that we maintain a single point of contact with our customers by providing a one-stop solution, the full range of services: from standard industrial racking and shelving to fully automated products, from planning and optimisation, to project implementation supported by our own installation and project management teams.

The Middle East and Africa region is thus a part of the worldwide SSI Schaefer mechanism: we take a holistic approach by offering solutions, not just products and by keeping in mind the key value that defines our brand globally: the commitment towards our clients.

MARCH 2019 41

Leaning on Lean International Supply Chain Management:

Achieving velocity beyond the four walls Making the case for and advocating lean thinking, eliminating wastage, streamlining systems and maximising product and process value

In its most elementary form, ‘Lean Logistics’ is the method to understand, recognise and abolish wasteful activities from the supply chain mechanism with a view to enhance product flow and speed. In the light of current challenges coupled with the headwinds of geo-politics and trade tussles, there appears to be an increasing trend by companies and services providers towards initiation and adoption of a ‘lean logistics’ strategy.

In his second and final installment, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain advocates and outlines the thinking digits for enabling ‘the lean’ in Lean Logistics.

T

ime compression creates opportunities to reduce inventory levels and logistics costs. However firms that do offshore sourcing are, by definition, adding time and, in turn, inventory.

The supply of supply chain management

42 MARCH 2019

begins upstream. The import cycle time also affects the utility, value and placement of inventory. These affect customer service, sales revenues, inventory-to-cash cycle time and profits. Inventory improvements come from the need for less safety stock and faster movement through the supply chain.

LEAN LOGISTICS

MARCH 2019 43

LEAN LOGISTICS

Lean Determination To be lean, companies should assess their present operation. They must know how effective their practices are. The import supply chain must be analysed. Firms should define what is expected and then how well the present operation functions.

With the issue of velocity, emphasis should include the offshore supply chain process.

This means making sure that the operation uses a method, both internal and external.

Firms can confuse transactions with process.

I would like to issue a note of caution here— do not force your inefficient practices on external suppliers and logistics firms. This can compound the inability to be lean.

VISUAL DESCRIPTION An excellent way to understand the international supply chain is to ‘see’ it.

The current supply chain can be described visually using ‘value stream mapping’.

The value stream comprises all the steps necessary to bring a product from its raw materials through production to delivery to the customer. With value stream mapping, all the steps in the supply chain process are identified and assessed as to whether they add value or create waste.

Mapping is a tool to visualise what goes on. This picture is a way to see the non-value, waste-creating actions for both the product and the information flows.

With value stream mapping, start with key product(s) that have high volume, critical importance, and/or high profit margins. The activities for each product is plotted, analysed.

Waste is identified and a new process for the future is defined and implemented.

A current state can look like – Some company people involved in global supply chain activities can push much of the waste they cause onto the outside parties.

They may not understand the complexity and operations of the international aspect, or they have forced the outside activities to adjust to their lack of process and their waste practices.

Demanding others to adapt to your waste activities is not collaboration, which is a twoway effort to reduce waste.

INDEPENDENT EYE Analyse the map. It helps to have someone independent here. Someone who is too close

44 MARCH 2019

to the activity may not be able, in identifying internal waste to“see the forest for the trees”.

Remember, supply chain management is a process, a cross-functional one.

With analyses, waste can be identified.

Removing waste improves velocity and gains its benefits.

The upstream supply chain is seen as one event, not as two separate events of sourcing and of logistics. The dichotomy can show on both the product map and the information map. This affects the handoff from supplier to logistics service providers.

Then, after identifying areas of waste, the future supply chain can be mapped.

More than 25% of purchase orders are not shipped as planned or are not delivered as planned. This significant statistic presents a real opportunity to reduce waste. Supplier performance and supplier lead times are important areas for potential waste reduction and process improvement.

Also, the distribution network may be outdated. It may have been built years before with different store or customer configurations, different products, and other topics. It may have been built when the focus was on storing inventory in warehouses, unlike now when inventory velocity is emphasised. Touching the product to store it often adds only time - a waste result, not value.

Continue mapping more products and more activity, including between company factories. Even better, redesign your supply chain around removing the waste of excess time and inventory. This is important. The demand for velocity will increase. Start thinking velocity squared, V2.

ADDITIONAL LEAN PRACTICES There is much to become lean to assess and change practices and operations. Some points for international include: • Use technology to manage supplier performance and to integrate the movement of information among and between all parties.

• Design a process that is lean and includes all parties and that differentiates among different commodities and products and among different customers.

• Collaborate with key suppliers and logistics providers.

• Link demand and demand planning with

replenishment and buying.

• Reduce the number of suppliers and logistics service providers to streamline the supply chain, without sacrificing results.

• Focus on supplier performance; control the supply chain at the international source.

The offshore supply chain begins with the purchase order; transportation is a derivative of the purchase order and of supplier performance.

• Understand transport differences and options such as ocean carriers offering different transit times, different sailing schedules, different destination ports and different canals to the East Coast (Panama Canal versus Suez Canal).

• Align your financial supply chain with your trade supply chain. These two chains involve different sets of players with differing objectives and practices.

CONCLUSION Identifying non-value-added activities is especially important for supply chain management. Any activity that adds unnecessary time and inventory and cost to the already complex activities can obstruct supply chain effectiveness. Value stream mapping is a tool for seeing and identifying waste, both internal and external. Seeing the current activities and the waste can form the basis of plans to improve the supply chain.

This procedure is especially critical for highvolume and high-margin products where the impact on the company bottom line is significant.

Collaboration and co-operation within the company organisation and between and among trading partners is important for truly removing waste across the entire supply chain. Accelerating cycle time, increasing inventory velocity and reducing costs for the high-volume and high-margin products can affect return on investment and drive the benefit of lean for everyone to see.

Lean logistics for international business offers significant potential to identify and reduce time, inventory and cost (see map above). And given the size of the international supply chain, both for importing and exporting, the approach merits the effort for bottom-line results. Value stream mapping provides an important tool for understanding the present supply chain and designing a new one.

Subscribe today March 2019 Issue 57

February 2019 Issue 56

January 2019 Issue 55

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

TRISTAR RIGHT STOCK, RISING RIGHT PLACE,

TSSC

The multi-faceted conglomerate is quite literally driving the cold chain fischer fixation Grasping markets

“A businessRIGHT existsTIME for a lofty purpose not just profit,”

Chalhoub reaches new levels of service with Slimstock’s revolutionary inventory optimisation solution.

Wilo

UD Trucks

Pumping up the ante

Port of Duqm

Rising maritime hub – Eugene Mayne, CEO Tristar Group

On the fast track

•GSC_Feb_2018_Cover.indd 1

2/13/19 7:39

SSI Schaefer

Intelligent Logistics Solutions and Technologies

Dubai South

ALS Logistic Solutions-Goldhofer

Finding true North

Potent partnership

•GSC_Jan_2018_Cover.indd 1

Sanofi Logistics & Distribution Centre

1/14/19 8:13

Emirates Steel

Strengthened Performance

New Lifeline

•GSC_March_2019_Cover.indd 1

3/7/19 6:18

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SANOFI GULF LOGISTICS AND DISTRIBUTION CENTRE

Dr. Amin Al Amiri delivers his address at the inaugural ceremony

Sanofi inaugurates new Logistics and Distribution Centre in Dubai South

Hub to facilitate delivery of over 22 million packs of medicines in six countries; increase storage capacity by 68%

Sanofi Gulf’s new 2,740 sqm Logistics and Distribution Centre in Dubai Logistics City is one of the largest of its kind for pharmaceutical logistics and a standout in the region

Dr. Amin Al Amiri, Jean-Paul Scheuer and Raja Rabia in conversation

46 MARCH 2019

SANOFI GULF LOGISTICS AND DISTRIBUTION CENTRE

Global Supply Chain spoke to Jean-Paul Scheuer, Country Chair and General Manager, Sanofi Gulf, on the sidelines of the inaugural ceremonies at the new Sanofi Logistics and Distribution Centre in Dubai Logistics City, Dubai South. The following are excerpts from that interview:

Jean-Paul Scheuer addressing the gathering at the inaugural ceremony

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lobal biopharmaceutical company Sanofi inaugurated its new regional logistics hub in Dubai South’s Dubai Logistics District in the presence of HE Dr. Amin Hussain Al Amiri, Assistant Undersecretary for Public Health Policy and Licensing at the UAE Ministry of Health and Prevention. Also present at the inaugural ceremony was HE Raja Rabia, the Consul General of France in Dubai.

One of the largest facilities of its kind in the Middle East pharmaceutical industry, the 2,740 sqm distribution centre will serve as the company’s new regional logistics headquarters and facilitate the delivery of over 22 million packs of medicines every year to treat the health conditions of patients in six countries, including the UAE, Kuwait, Oman, Bahrain, Jordan and Iraq.

“An efficient supply chain is fundamental to ensuring access to quality treatment for many. This is an important priority for the UAE, and we applaud Sanofi for its efforts and contribution towards the continued achievement of this goal in the country,” affirmed Dr Al Amiri.

The new logistics centre is located in Kuehne+Nagel’s facility and occupies a 4,000 pallets location for ambient temperature control storage locations

and a 450 pallets location for cold chain products storage.

Well-equipped facility The distribution centre is equipped with the latest warehousing and cold chain technologies that adhere to the strictest global quality standards required to preserve the integrity of medication before it reaches pharmacies, and eventually the patients. Speaking on the inauguration of the distribution centre, Jean-Paul Scheuer, Country Chair and General Manager, Sanofi Gulf, said that moving to the new facility has enabled the company to increase its storage capacity by 68%.

“Beyond expanding operationally, this investment, more importantly, translates into a faster ability to respond to patients’ needs, delivering innovative treatments and fostering better access to healthcare.

The realisation of this commitment, for which Sanofi stands very strongly, is possible because of the world-class healthcare infrastructure that the UAE offers,”he asserted.

Sanofi began its operations in the Gulf in the 1970s and established its very first affiliate in 1987 in the UAE. The company offers health and wellbeing solutions with a focus on diabetes and cardiovascular diseases, oncology, immunology, multiple sclerosis, rare diseases, and vaccines.

On the significance of the event: “This inauguration of this large facility is a milestone in our corporate journey in the UAE and the region. This marks an important accomplishment for Sanofi Gulf as it would streamline our logistics and distribution operations. It would enable us better monitor and bring efficiencies into the system. The facility will function under highly controlled temperature and storage conditions.

Our investment in this facility, one of the largest of its kind for pharmaceutical logistics in the region, is indicative of our long-term commitment here. We are also very gratified by the support and encouragement received by the Ministry of Health and the Government and Regulatory Authorities.”

On the partnership with Kuehne+Nagel: “Our partnership with Kuehne+Nagel is professional yet friendly and there is good synergy between us. We have cooperated in this project for several months and a lot of joint expertise, experience and efforts. In Kuehne+Nagel we have found the right logistics partner.”

On future expansion in the region: “We are a growing company and expansion is certainly on the cards as also new products introduction. Research and development is strongly etched in our DNA and we are constantly innovating and examining new possibilities.”

Vision for the future: “Our current employee numbers for the region exceed 500, drawn from over 35 nationalities.

My vision is to continue to grow in the region expanding into newer territories even as we continue to serve families and community.

We are committed to enabling individuals live longer and better and to this end we will stay focused on our mission. We offer healthcare solutions in health and well-being, diabetes and cardiovascular diseases, oncology, immunology, multiple sclerosis, rare diseases, and vaccines.

Expansion will be the logical outcome of these sustained efforts.”

MARCH 2019 47

DHL

Globalisation D hits new record high DHL Global Connectedness Index:

Hennie Heymans, CEO, DHL ExpressSub Saharan Africa

The UAE among the world’s top globally connected countries International flows of trade, capital, information and people all intensified significantly for the first time since 2007. Mauritius was Africa’s most connected country while Mozambique was named as one of the countries where international flows most exceed expectations 48 MARCH 2019

HL recently released the fifth edition of the DHL Global Connectedness Index (GCI), a detailed analysis of globalisation, measured by international flows of trade, capital, information and people.

The new GCI report represents the first comprehensive assessment of developments in globalisation across 169 countries and territories since the Brexit referendum in the United Kingdom and the 2016 presidential election in the United States.

In spite of growing anti-globalisation tensions in many countries, connectedness reached an all-time high in 2017, as the flows of trade, capital, information and people across national borders all intensified significantly for the first time since 2007. Strong economic growth boosted international flows while key policy changes such as US tariff increases had not yet been implemented.

The 2018 index measures the current state of globalisation, as well as individual rankings for each country, based on the depth (intensity of international flows) and breadth (geographical distribution of flows) of countries’ international connections.

The world’s top five most globally connected countries in 2017 were the Netherlands, Singapore, Switzerland, Belgium and the UAE. Eight of the top 10

most connected countries are located in Europe, helping make it the world’s most connected region, in particular for trade and people flows.

North America, the leader in capital and information flows, ranked second among world regions, followed by the Middle East and North Africa in third place.

Africa Focus South Africa was named the highest ranking country on the African continent itself, with an overall ranking of 56th place.

“As the world continues to globalise, there are still many opportunities for intercontinental and intraregional trade, particularly for emerging economies in Sub Saharan Africa,” commented Hennie Heymans, CEO of DHL ExpressSub Saharan Africa.

“Globalisation is a key driver for growth and fiscal security, which is evident in countries that have embraced it. We are confident about continued further growth in the region with new trade agreements coming into effect, to support regional collaboration,” he continued.

“Surprisingly, even after globalisation’s recent gains, the world is still less connected than most people think it is,” observed GCI co-author Steven A. Altman, Senior Research Scholar at the NYU Stern School of Business and Executive Director of NYU

Stern’s Center for the Globalisation of Education and Management.

“This is important because, when people overestimate international flows, they tend to worry more about them. The facts in our report can help calm such fears and focus attention on real solutions to societal concerns about globalisation.”

At the global level, the GCI shows, for example, that just about 20% of economic output around the world is exported, roughly 7% of phone call minutes (including calls over the internet) are international, and only 3% of people live outside the countries where they were born. The report also debunks the belief that distance is becoming irrelevant. Most countries are much more connected to their neighbors than to distant nations.

Emerging economies remain less connected than advanced economies The GCI continues to reveal vast differences between levels of globalisation in advanced versus emerging economies.

Emerging economies trade almost as intensively as advanced economies, but advanced economies are more than three times as deeply integrated into international capital flows, five times for people flows, and almost nine times with respect to information flows.

Additionally, while leaders from large emerging markets have become major supporters of globalisation on the world stage, emerging economies’ progress catching up in terms of global connectedness has stalled.

Mozambique beats expectations Mozambique was named as one of the five countries where international flows exceed expectations the most. This is positive news for the region, because deeper global connectedness can help accelerate countries’ economic growth.

One cause for optimism regarding further growth potential for Sub Saharan Africa is the signing of the African Continental Free Trade Agreement (AfCFTA), signed by 49 countries in March 2018. According to a study by the UN Economic Commission for Africa, full implementation of the AfCFTA could double intra-African trade and boost the whole continent’s global connectedness.

Global Supply Chain recently spoke exclusively to Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa Global Supply Chain (GSC): How did DHL Global Forwarding fare in 2018 in the region and what are opportunities going forward in 2019?

Amadou Diallo (AD): On the whole, 2018 was a buoyant year despite the volatility and challenges in the global marketplace. We closed strong last year. 2019 has just commenced so we have some ground to cover here. It will be a ‘wait and see’ approach for now.

We foresee plenty of growth opportunities in the region and believe there is considerable potential for development. We are a trusted global brand name and have the necessary expertise and considerable experience. Specifically, our reputation and quality of service are our advantages.

Many entrepreneurs, enterprises and corporations in the region are looking for markets outside of their country of operation and therefore would like to avail of our services to facilitate trade and commerce.

So I am hopeful about the future.

GSC: What are the main challenges for DHL Global Forwarding in the region?

How are you dealing with them?

AD: The challenges mainly stem from civil unrest or political instability or are a fall-out of geopolitics. Competition is also a factor. Economic downturn and cyclical recession can also take its toll. However as a global corporation, we are wellequipped and have the leverage to overcome a downward spiral by virtue of our professionalism, commitment and resource.

GSC: What are your future expansion plans in the UAE? AD: We have robust plans to grow in the UAE and the GCC. For example we recently signed a five year agreement with Strata, the company manufacturing advanced composite aero structures for airplanes and a whollyowned subsidiary of Mubadala Investment Company to provide Fourth Party Logistics (4PL) services spanning its entire supply chain.

GSC: What industry sectors do you foresee growth in for the area?

AD: Oil and gas and project logistics are on the upswing. The Continent of Africa holds

rich promise particularly the traditional or emerging oil rich producing nations of Algeria, Nigeria, Angola, Mozambique, Gabon, Guinea Bissau and the growing economies of Rwanda and East Africa to name a few.

South Africa, the largest economy on the continent is also a stand out.

GSC: Why was Dubai selected for the Global Humanitarian Logistics Competence Centre?

AD: We owe it to the Government of Dubai for the confidence reposed in us. From our strategic and well connected location in Dubai as a logistics and distribution hub, we are within easy access and connectivity to some of the region’s hot spots such as South Sudan, Yemen, Syria Somalia and the Democratic Republic of the Congo (DRC) to name a few.

The transportation and logistics infrastructure here is also second to none.

The ease of our operations is therefore greatly enhanced as a result.

GSC: How much does the humanitarian logistics sector contribute to DHL Global Forwarding’s revenue?

AD: The logistics businesses both regionally and globally are intertwined and do not exist in silos. We live in a highly interconnected world and something that occurs in one part of the world can and will impact another part. The humanitarian logistics sector is not an isolated component but an integral part of our composite offering.

GSC: What is your vision for DHL Global Forwarding going forward?

AD: My vision is to grow the company and further consolidate our operations. To do that, we need to pull together and hold ourselves to the same high standards of performance and competence. I believe we are in the process of transformation for the better and to put it concisely, we want DHL to be an enabler of trade worldwide.

MARCH 2019 49

EMIRATES STEEL

Emirates Steel fortifies performance

in 2018 Engineer Saeed Ghumran Al Remeithi, CEO, Emirates Steel

Emirates Steel, the only integrated steel plant in the UAE, recently announced an exceptional set of financial results for 2018. At US$ 2.05bn, 2018 revenues surged 15% over 2017, top officials at the state-owned manufacturer of steel and associated products revealed at a recent press conference

E

mirates Steel achieved AED 7.5bn (US$ 2.05bn) in revenue in 2018, an increase of 15% as compared to AED 6.6bn (US$ 1.8bn) in 2017. In addition, Emirates Steel has delivered an outstanding 44% increase in earnings before interest, tax, depreciation and amortization (EBITDA). EBITDA in 2018 reached AED 1bn (US$ 273mn), as compared to AED 678mn (US$ 185mn) in 2017. In addition, Emirates Steel reduced its debt to equity ratio by 9%, from 56% in 2017 to 47% in 2018.

During the recent annual media briefing at Emirates Steel’s headquarters in Industrial City Abu Dhabi, Musaffah, Engineer Saeed Ghumran Al Remeithi, Chief Executive Officer, Emirates Steel expressed satisfaction at the company’s performance.

“Despite the challenges faced by the metals and steel industry globally last year, our results for 2018 were positive. I believe this is a testament to the success of our resilient business model and our sustainable growth strategy. With this year on year growth, we are continuing to enhance our position as a world class steel manufacturer adept at delivering the highest quality products, services and comprehensive solutions to our customers,” he commented.

50 MARCH 2019

Steel wires produced from one of Emirates Steel’s five Rolling Mills

EMIRATES STEEL

L to R-Mohammed Salem Al Afari, VP-HSM Sales; Stephen Pope, CFO; Engr. Saeed Ghumran Al Remeithi, CEO and Juma Nassar Al Mansouri, VP-Sales, Rebar and Wire Rods, addessing the press meet

“While we foresee challenges in 2019, including the slowdown of the regional construction sector, surge in iron ore prices, drop in sales prices, market volatility, market protectionism, we remain focused on increasing sales revenues and reducing direct and indirect costs to further improve our financial performance. We are aiming to achieve this through the further development of our product range and by driving efficiencies across the business, focus on customer retention, and customer satisfaction,”he added.

Production, Exports

Steel bars produced from Emirates Steel’s Heavy Steel Mill (HSM)

In 2018 Emirates Steel’s export sales to more than 40 countries accounted for 20% of total volumes, with the remaining 80% being consumed within the UAE where the company maintains a 60% share of the rebar market and 69% share of the section market. It is worth mentioning that the steel market dropped significantly in second half of 2018, nevertheless the company managed to maintain its sales.

Emirates Steel produced 3.1 million tons of finished products in 2018, in line with the volumes achieved in 2017. Emirates Steel’s presence is solid in the domestic market where it sold 2.514 million tons of finished

MARCH 2019 51

EMIRATES STEEL

Emirates Steel and Abu Dhabi Ports ink marine services agreement Emirates Steel has signed a strategic agreement with Abu Dhabi Marine Services (SAFEEN), a subsidiary of Abu Dhabi Ports, valued at AED 1bn (US$ 273mn).

The deal was recently signed by Eng. Saeed Ghumran Al Remeithi, CEO, Emirates Steel, and Captain Mohamed Juma Al Shamisi, CEO Abu Dhabi Ports, in the presence of Captain Adil Banihammad, Acting CEO–Marine Services, Abu Dhabi Marine Services–SAFEEN, and a number of senior officials and engineers from both parties.

The agreement, which will be implemented in January 2021 and will extend over the following ten years, is the result of Emirates Steel’s commitment to both providing high quality products, and optimizing its supply chain in accordance with international standards, a press communiqué indicated.

A pan shot of Emirates Steel’s Direct Reduction Plant (DRP) in Industrial City Abu Dhabi, Musaffah

products, with exports accounting for the remaining 631,000 tons.

Emirates Steel’s reinforcing bars production accounts for roughly 2.1 million tons of the company’s overall production. In addition, the company manufactured 500,000 tons of wire rod and 600,000 tons of heavy sections.

Contracts with Vale, Phoenix In November 2018, Emirates Steel signed a four-year (2018-2021), high value contract with Brazilian company Vale, the world’s largest producer of iron ore and iron ore pellets, to supply iron ore pellets for its steel production.

Emirates Steel has an iron ore pellet requirement of around 6 million tons per year, and the four-year contract and strategic partnership with Vale provides the company with a flexible source of iron ore at competitive, stable and long term prices.

As part of its efforts to implement best practices to achieve the highest levels of efficiency, reliability and production availability, in July 2018 Emirates Steel signed a 10-year contract with Phoenix Services for a Dust Agglomeration Project. The contract includes collecting Emirates Steel’s byproducts and converting them into pellet,

52 MARCH 2019

Range of services and then re-releasing those pellets back into the furnace in our SMP plants.

In addition, Emirates Steel has partnered with DuPont to enhance its Health and Safety performance. The company has launched Aman Safety Excellence Program to maintain its safety performance at or exceeding the highest international standards, further strengthening its safety culture.

Currently, Emirates Steel employs more than 2,200 personnel across all divisions and facilities, with approximately 500 of them constituting UAE nationals.

1998-established Emirates Steel is owned by SENAAT, the UAE’s largest industrial conglomerate utilises the latest rolling mill technology to produce rebar, wire rod and heavy sections.

Emirates Steel has grown from a simple re-roller of imported steel billets to a complex integrated manufacturing plant, using modern solutions to tackle traditional industrial problems to generate value for its various stakeholders. In 2012, the Company began producing at a capacity of 3.5 million MTPA, following two expansions and the investment of around AED 11bn (US$ 3 billion).

In the agreement, SAFEEN will provide short marine shipping services for three shipments of iron ore per month. Additionally, SAFEEN will be responsible for the purchase, rental, delivery, operation and maintenance of cargo ships, trailers and unloading equipment for Emirates Steel.

“We are delighted to have signed this agreement between Emirates Steel and Abu Dhabi Ports, which reflects our ongoing commitment to home-grown entities working together and their keenness to build strategic partnerships that contribute to supporting the economy of Abu Dhabi and the UAE in general,” asserted Eng. Jamal Salem Al Dhaheri, CEO, SENAAT. “Emirates Steel continues to seek to enhance its production capabilities in Abu Dhabi, and through this agreement we have ensured the best shipping services for our cargo in order to continue to improve our production capacity in Abu Dhabi,” affirmed Al Remeithi.

“This strategic agreement highlights Emirates Steel and Abu Dhabi Ports’ commitment to reinforcing Abu Dhabi’s position as a global industrial hub and contribute to building a sustainable, diversified economy,” commented Capt. Al Shamisi.

“The agreement with Emirates Steel is one of our biggest and most significant deals to date. SAFEEN will be expanding its portfolio of services by offering lighterage for the first time, complementing other maritime and quaysidesupport services,” explained Capt. Banihammad.

AGILITY LOGISTICS INDEX 2019

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he United Arab Emirates ranks first in the region and third globally, after China and India, for a fifth consecutive year, according to the just released 2019 Agility Emerging Markets Logistics Index.

In the Gulf, the UAE (No. 3), Saudi Arabia (6), Qatar (8), Oman (12), Bahrain (16) and Kuwait (18) rank highly. Among ASEAN countries, Indonesia (4), Malaysia (5), Vietnam (10) Thailand (11) and Philippines (20) are strong.

The Agility annual logistics survey, the 10th in the current series was compiled by Transport Intelligence (Ti), a leading analysis and research UK-based firm for the logistics industry, compiled the Index. The same was presented to the media by Bassel El Dabbagh, CEO, Agility Abu Dhabi.

UAE scores well

Three GCC nations rank among top 10 in the 2019 Agility Logistics Index The three remainder feature among the top 20 leading emerging markets

In Agility’s 10th annual 2019 ranking of 50 leading emerging markets, a broad gauge of competitiveness based on logistics strength and business fundamentals, the GCC countries outperform most others. Business-friendly conditions and core strengths position several Gulf countries near the top of the Index, behind giants China (1) and India (2), and alongside Southeast Asian nations. The UAE also ranks first in business fundamentals globally

“The UAE has performed a hattrick and maintained its apex spot for the past three years and the number one position in the region.

The UAE’s good performance is attributable to its high rankings for its legal and infrastructure setup.

The creation of business-friendly free zones permitting 100% foreign ownership and easy repatriation of profits and capital,”asserted El Dabbagh.

“Also the logistics and Bassel El Dabbagh transportation infrastructure in the country is matchless with continued investment in upgrades and new projects. concerted efforts to diversify, steady progress The spend on airports, ports and a soon to in streamlining regulation, and strategic come rail network is boosting the UAE’s case development of digital capabilities,”affirmed as a logistics hub for the region,”he added.

Elias Monem, CEO of Middle East & Africa for He however cautioned that current global Agility Global Integrated Logistics.“The healthy trade and market volatility, geopolitics and the competition among Gulf economies has helped looming shadow cast by the yet unresolved put the entire region out in front,”he continued. trade spat between China and the USA might Agility’s annual survey of more than 500 take a toll on the global logistics business. supply chain industry professionals shows Furthermore, he advised that the GCC countries logistics executives are upbeat about the 2019 to work towards greater openness and market emerging markets growth outlook, but fearful accessibility and easing border procedures to that trade tensions, currency and interest rate soar even higher on the rankings index. volatility, and Brexit could trigger a crisis.

In the survey, 55.7% say a 2019 growth rate of 5% is“about right,”but a surprising Good overall GCC performance percentage – 47.1% – say an emerging “The strong performance of Gulf economies markets crisis is “likely”or“highly likely.” in the Index is the result of wise investment Emerging markets expanded by 4.7% in in logistics and transport infrastructure,

2018, and the International Monetary Fund now forecasts 4.5% expansion for 2019.

The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam.

China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE, Malaysia and Qatar have the best business fundamentals.

2019 Index and Survey Highlights China and India, atop the 2019 rankings based on their size and strength as international and

MARCH 2019 53

domestic logistics markets, lag smaller rivals in business fundamentals, a category that ranks countries based on regulatory environment, credit and debt dynamics, contract enforcement, anti-corruption safeguards, price stability and market access.

In that area, China ranks No. 7 and India is No. 10. India’s standard Goods and Services Tax (GST) has brought an element of uniformity and consistency to the national and inter and intra-state octroi and tax regimens.

Logistics industry executives see US-China trade volume shrinking by 10% as a result of tensions, which have led to them imposing tariffs on each other. Against a backdrop

of trade friction and data showing China’s economy slowing, survey respondents see India as the market with greatest potential over China, their second choice.

56% of those surveyed say a prolonged trade standoff between the US and China could benefit Southeast Asian countries, which offer manufacturing and sourcing alternatives to China.

Hope for Brazil Brazil, in the midst of a severe economic downturn and political upheaval, tumbles from No. 9 to 15 in the Index, ranking behind smaller Latin economies Mexico (7) and

Chile (13). Brazil’s business fundamentals – a priority for newly elected President Jair Bolsonaro – were 39th out of 50 Index countries. Despite the poor performance, executives surveyed see enormous promise: 44.5% said they were“optimistic”or “strongly optimistic”about Brazil.

China’s $4-$8 trillion Belt & Road Initiative (BRI) infrastructure drive is a bigger plus for China than for the countries in Asia, the Middle East, Africa and Europe where it is investing. 64% of executives surveyed see the BRI boosting growth and trade for China; only 41.4% believe it will help other emerging markets.

E-commerce is fueling logistics opportunities in emerging markets. 60% of industry executives expect more outsourcing of last-mile delivery by retailers; 47.4% expecting more E-fulfillment outsourcing.

Trade Bureaucracy Threat Trade bureaucracy is the biggest obstacle to small and medium-sized companies trying to do business across borders, survey respondents say. But when it comes to what size companies will grow fastest in emerging markets, SMEs are their top pick over multinationals and big regional or local companies.

Brexit could benefit emerging markets.

59% of executives surveyed expect emerging markets to seek trade concessions and new deals from the UK. 70% think emerging markets will be unaffected by Brexit.

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AGILITY LOGISTICS INDEX 2019

Iran’s near-term potential has evaporated as a result of re-imposed US sanctions. Nearly 75% of those surveyed say Iran is“less promising than before” or“not at all promising.” Iran ranks 49th out of 50 countries as an international logistics opportunity.

UAE strong on business fundamentals The UAE and Malaysia are tops for business fundamentals. Gulf countries Qatar, Oman and Saudi Arabia also score high. Among the 50 Index countries, it’s hardest to do business in Venezuela, Angola, Myanmar and Libya.

65% of those surveyed see Mexico increasing trade with the US and Canada under a yet-to-be-ratified trade agreement that is to replace NAFTA. Venezuela, which holds the world’s largest oil reserves, ranks last (No. 50) overall and 50th for business fundamentals and international logistics opportunities.

BRICS in decline The so-called BRICS economies (Brazil, Russia, India, China and South Africa) were once considered bellwethers and prime engines of emerging markets growth, but have diverged. China (1) and India (2) continue growing at more than 6% a year. Russia (14) is slowed by economic sanctions and low energy prices; Brazil (15) has lost markets and investment amid its worst downturn; and South Africa (24) has seen prospects suffer amid years of ruling party infighting and labor unrest.

Sub-Saharan Africa is a mixed picture.

South Africa (24) is an underperformer.

But in rankings of business fundamentals, Ghana and Kenya do relatively well at No. 19 and No. 21. Nigeria, which vies with South Africa to be the region’s largest economy, suffers from poor business conditions, an area where it ranks 44th.

Mobile banking on upswing Mobile banking–now available to nearly 43% of the population in Sub-Saharan Africa – is proving to be a catalyst for trade and is lowering barriers for small and medium-sized businesses by providing means for fast, secure

payments and financial transactions. Several countries would surge in the rankings if they could improve business conditions: Brazil, Philippines, Argentina, Bangladesh, Nigeria, and Bolivia. African economies with relatively strong logistics markets and potential–Uganda, Libya, Mozambique, Angola–are severely hamstrung by weak business fundamentals.

“This year’s Index highlights the range of challenges and opportunities many markets

face. The uncertainty which surrounds trading relationships, combined with implementation of new trade barriers, threatens to derail integration of emerging markets with the rest of the world. It is essential that obstructive trade policy does not stand in the way of commercial opportunities which help drive growth in emerging markets,” concluded John Manners-Bell, Chief Executive, Ti.

MARCH 2019 55

GCC ROAD INFRASTRUCTURE

Path to development:

GCC road infrastructure on fast track to growth UAE’s major road development projects estimated at AED 9.7 billion to meet 2021 targets

Nidal Abou Zaki, Managing Director, Orient Planet Group

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GCC ROAD INFRASTRUCTURE

Road infrastructure development is a top priority for GCC Governments with projects worth more than US$ 122 billion, a recent report reveals

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oad development projects continue to be among the largest infrastructure investments across the GCC region and remain a top priority for governments in line with their urban planning initiatives, according to the latest report released by Orient Planet Research, an Orient Planet Group Venture.

The report titled ‘Fast Tracking Development: Road Infrastructure in GCC’ highlights the massive investments on road, tunnels and bridges across the GCC amidst oil prices fluctuation in recent years.

The GCC countries are among the world’s most ambitious when it comes to developing mega infrastructures, driven by the vision to become a regional powerhouse that will attract investments and further diversify from oil, the Gulf’s major source of income.

Worldwide, the UAE and Saudi Arabia rank among the top 12 global markets for infrastructure investment, the report noted.

The expenditure on road infrastructure has been a major growth factor in the region and governments continue to find these investments as vital to social and economic growth. To address budget concerns, there is a growing consensus towards tapping financing through public-private partnerships (PPPs) as alternatives to ensure continuous delivery of transport-related projects.

Road projects top all infrastructure projects in number and value The report cited that total value of active infrastructure projects in the GCC has reached to US$ 1.14trillion with roads, highways and bridges among the highest number of projects. It further noted that there were a total of 1,069 road projects in the region, the highest number among all infrastructure projects, with a combined value of US$ 122.6bn.

Despite financial challenges that hit the global economy in 2008-2009, as well as the fluctuation of oil and gas revenues Gulf’s infrastructure development continues at a robust pace. Data shows that Saudi Arabia and the UAE lead in infrastructure spending in the region.

“One of the important findings of the report points to the level of priority given to road projects by GCC governments, even when low oil prices impacted the regional economy in 2014 and 2015.

Governments have maintained a positive

approach to infrastructure development, including exploring new ways of financing important initiatives such as public-private partnerships,”commented Nidal Abou Zaki, Managing Director, Orient Planet Group.

“Investment in road projects across the region remain buoyant which is indicative of the governments’ commitment to expand social and economic activities in many parts of the region through the construction as well as renovation of bridges, intersections, tunnels, and inter-country causeways,”he affirmed.

Highway to growth The report highlighted some of the major projects across the region such as Dubai’s allocation of AED 15bn (US$ 4.8bn) to complete key projects eyed to serve the upcoming Expo 2020, including the upgrade of roads, ramps and flyovers. In Saudi Arabia, over US$ 400mn is invested in nine major road projects including the King Hamad Causeway. In Kuwait, the government is set to implement the construction of the Seventh Ring Road Project, a 93-kilometre road network development.

Apart from individual projects within each GCC country, there are numerous planned and existing roads, bridges, and tunnels across the region. Some of these projects include the Saudi-Oman Highway, a 680-kilometre road which links Oman and Saudi Arabia which is paving the way • Saudi Arabia for a much shorter completes 55 road distance, and thereby projects valued at SAR shorter travel time 4.978bn and approves between the two 70 new projects countries.

• UAE’s major road Another crossdevelopment projects country project is the estimated at AED 9.7bn Mafraq-Ghuwaifat to meet 2021 targets International Highway • Kuwait to invest US$ (UAE-Saudi), a US$ 13.2bn for 24 major 5.3bn project that road infrastructure links Abu Dhabi to projects the Saudi border.

• Bahrain eyes Meanwhile, King completion of 11 new Fahd Causeway is a roads by 2022 strategic artery that is • Oman’s 270-km Al undergoing expansion Batinah Expressway to accommodate connects 23 growing economic interchanges, 17 flyover bridges, 12 ground activities between passes, and 25 bridges Bahrain and Saudi over wadis and valleys Arabia.

MARCH 2019 59

DUBAI TRADE ESEA 2019 AWARDS

2019 ESEA Awards usher a new era of Smart Services for UAE Logistics Growing popularity of Dubai Trade services highlighted by new categories E-Services Excellence Award (ESEA), is the first award platform of its kind in the region to recognise organisations for adopting smart services in trade, shipping and logistics judged on their adoption rates of online and smart transactions

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ubai Trade, the premier trade facilitation arm of DP World, recently honoured the winners of its 11th Edition E-Services Excellence Award (ESEA), recognising companies for adopting smart services in trade, shipping and logistics, with an expanded roll of honour in three new categories.

The event was held under the patronage of HH Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai.

Abdulla Bin Damithan, Chief Commercial Officer, DP World, UAE Region, delivered a keynote speech and Hussain Alblooshi, Acting Chief Operating Officer, Dubai Trade, delivered the welcoming remarks in the presence of representatives of the business, trade and logistics sectors, government officials and the financial community.

Award Winners: The winners are nominated based on the number of mobile and online transactions conducted on the Dubai Trade Portal in 2018.

There were six categories for the Dubai Trade E-Services at the event: The Smart Services Award for M-Token Service was won by Bin Abed General Land Transport Smart Services Award for Free Zone Services was won by Danzas AEI Emirates Smart Services Award for Clearance Services - Customs Broker went to Freightworks (Dubai Express) Smart Services Award for Clearance Services – Trader was awarded to Landmark Group Smart Services Award Payment Services went to NAFFCO Shipping and Forwarding A new category, The Electronic Services Award to Shipping Agent for General Cargo Services was won by The Kanoo Group.

Dubai Exports, the export promotion agency of the Department of Economic Development (DED) in Dubai, presented

58 MARCH 2019

four special awards to Dubai based exporters (manufacturers) and re-exporters. The awards went to Jindal Saw Gulf for New Exporter of the Year; Joseph Advertisers for Innovative Exporter of the Year; Praramb Agri Trading as Emerging Re-Exporter of the Year; and ETG Agro Industries as Champion ReExporter of the Year (new).

“It is encouraging to see the growing adoption of electronic transactions by the UAE’s trading community and these awards also help us understand emerging customer demands and trends. This underscores Dubai Trade’s pivotal role in supporting the smart transformation of Dubai’s trade and logistics sector, which is a key part of our economy,” asserted Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region.

Transparency “Dubai Trade uses a transparent system for judging the E-Services Excellence Award.

Each of the winners represents the future of the logistics industry and the benefits of new technology adoption, boosting efficiency and

DUBAI TRADE ESEA 2019 AWARDS

Mohammed Al Muallem, Managing Director and CEO, DP World UAE Region

Hussain Alblooshi, Acting Chief Operating Officer, Dubai Trade

helping improve national trade flows. Dubai Trade seeks to fulfil its role as an enabler that provides innovators the platforms they

need to realise their potential,”commented Hussain Alblooshi, Acting Chief Operating Officer, Dubai Trade.

Dubai Exports is once again delighted to have collaborated with DP World and Dubai Trade, through their flagship ESEA Awards, to recognize businesses that unceasingly evolve and innovate in line with the goals of the UAE’s leadership.

This year’s Export Awards were presented to four categories of manufacturers and traders based on their experience of doing business through Dubai: New and Innovative Industrial Exporters, and Emerging & Champion Re-Exporters, with the latter two including the Dubai’s thriving re-export business. ”Through our export facilitation services and recognition, we reaffirm our commitment to motivate businesses in the UAE and look forward to continue doing so over the coming years,”affirmed Eng. Saaed Alawadi, CEO, Dubai Exports.

Dubai Trade integrates businesses in trade and logistics including DP World, UAE Region Ports, Jafza and Dubai Customs, the first government department to have embraced IT automation.

MARCH 2019 59

DRONES

Drones are paramount for building safer and smarter cities What makes a successful smart city?

The idea of a smart city entails a synergy of various technologies that are deployed to transform cities or particular areas into more connected and safer environments to live and work. Rabiah Bou Rashid, Managing Director, Falcon Eye Drones explains

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mart Dubai is the most successful smart city concept in the Middle East region to date and it continues to evolve every day. Public safety is being constantly enhanced and Dubai is actively introducing new technologies, solutions, and campaigns to enhance emergency response that guarantees the highest success rates in the world.

Last year the Dubai Police launched Android Emergency Location Service (ELS) that provides accurate location information to first responders during an emergency. According to the Brigadier Kamil Butti Al Suwaidi, Director of Operations Department, Dubai Police, 95% of emergency calls come from mobile phones inside the country. The location is transmitted when an Android smartphone user contacts the emergency number.

The same year, Dubai Corporation for Ambulance Services has launched ESEFNI (‘Help Me’from Arabic) application that is designed to reduce the response time to emergencies. The first of its kind across the Arab world, the app is involving community members who are qualified to help patients and identify their locations to become first emergency responders.

Flying Rescuer

Rabih Bou Rashid, Managing Director, Falcon Eye Drones Falcon Eye Drones

The world’s first rescue drone called Flying Rescuer entered UAE airspace in 2018 allowing Dubai beach-goers feel safer. The Drone developed by the Dubai Municipality can transport up to four life buoys at a time and can also be used to drop off a rescue raft that automatically inflates when it hits the water.

While Dubai government is taking various steps to improve its emergency services that play an instrumental role is the betterment of the smart city environment, further introduction of the unmanned aerial vehicles (UAV), or drones which is widely known the term to the public, is paramount.

Drones leading the way According to the 2018 Centre for Digital Government (CDG) survey conducted by DJI amongst 220 public sector leaders, 92% of respondents say drone technology will have a significant impact on state and local government in the USA. Public safety functions are also the top motivations cited by CDG survey respondents.

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A separate CDG analysis of requests for proposals (RFPs) involving drones found more than half (52%) come from public safety agencies, including law enforcement, corrections and fire departments.

There are several ways drones can help save lives and sooner these options are explored by the federal governments as well as private entities that operate within hazardous environments, faster smart cities like Dubai will reach their full maturity.

Search and rescue missions will probably top up the list of drones’ emergency service applications today. From lost wandering hikers to kayakers who have drifted due to the rough winter sea breeze, drones can be deployed to speed up the process where helicopters and night vision goggles fail to do the job.

Where people can’t help any further the thermal heat scans taken by the drones can deliver effective rescue operation performance.

Drones helping with firefighting Drones can significantly improve fire extinguishing process as they already have a better ability than the naked eye to detect wildfires and high-rise flames, similar to ones we often experience in Dubai during windy winter weather periods. Drones are also an instrumental asset when it comes to extinguishing fires, and in increasingly improved ways.

While drones are great tools for scene monitoring, rapid 360 degrees assessment of burning structures and the ability to see through smoke with thermal imaging cameras, their active participation in the fire extinguishing process is what makes an enormous difference. By engaging drone technology during an active fire extinguishing efforts, many lives can be saved, not just those of the fire victims but firefighters as well.

Emergency deliveries Last but not least, ambulance drones can respond and deliver emergency equipment faster than any ground modes of transportation.

In 2017 Dubai Ambulance piloted its first world’s fastest cargo drone that will be delivering an automated heart defibrillator to a heart-attack victim in Dubai parks, beaches or public areas at speeds of up to 155 kph.

The delivery of defibrillators is just the first phase of the project and in the nearest future drones could carry other medical equipment to sites of road accidents and multiple injury events.

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