GLOBAL SUPPLY CHAIN MAY 2022 ISSUE by GLOBAL SUPPLY CHAIN

May 2022 Issue 91

ENHANCING THE BUSINESS OF LOGISTICS

Savoye

Bringing Professional Savoir Faire to Customised Global Logistics Solutions

Qatar Airways Cargo Cutting-Edge Strategy

Maersk Air

Taking to the Skies

Alain Kaddoum,

Managing Director, Savoye Middle East, reviews the company’s inroads in the region

Mercedes Benz Trucks Safety First

THE WORLD'S NEW LOGISTICS CENTER THE NEW HOME OF TURKISH CARGO THAT FLIES TO THE MOST DESTINATIONS IN THE WORLD IS BECOMING THE NEW CENTER OF AIR CARGO LOGISTICS, CONNECTING CONTINENTS.

DRIVE THE NEW WAY

NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications.

NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio.

Automation to the fore in the World of Logistics

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

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

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

Automating tasks using technology to reduce human intervention is, almost always and in all industries, synonymous with improving the quality and control of processes, making them more efficient while saving time, standardising performance, and improving service levels. Automation and the use of technology is increasingly become the norm in the supply chain and logistics sectors regionally as also globally. As a case in point, sensing the growing demand for automation systems in the Middle East region, Savoye, the world leader in the design, manufacture and integration of intralogistics machines and automated-robotic systems, established a regional office in Dubai, UAE, in April 2021 with Alain Kaddoum, Managing Director, at the helm. Global Supply Chain recently engaged in an exclusive and extensive interview with Alain Kaddoum, the subject of our Cover Story. Qatar Airways Cargo has also been on a roll and freight revenues are increasingly accounting for sizable percentages of incomes for the air carrier. The last fiscal year has netted rich cargo revenue pickings for Qatar Airways—a case reiterated by Guillaume Halleux, Chief Cargo Officer, Qatar Cargo, in an exclusive interview. Encouraging reports of good and boom times ahead are also trickling in from major international logistics services providers as a sign of optimism in the air for the supply chain sector. These are indeed watershed moments as green shoots steadily arise bringing cheer and buoyancy to an industry that was negatively impacted at the height of and the duration of the pandemic. Continuing on this trail, we hope to bring more uplifting news stories and reports going forward as the world enters a rejuvenated and transformed new post-Covid 19 era. However, there is a caveat, a note of caution I need to infuse here in view of the seemingly unending crisis—political, global and economic wrought by Russia’s brazen invasion of the Ukraine. The fallout is serious and devastating and as would be expected this disaster, if not contained quickly, will have far-reaching consequences in the volatile though resilient world of logistics and supply chain. Hope there is an early resolution of this situation for the benefit of all stakeholders concerned. For now, Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com

MAY 2022 3

May 2022 Issue 91

ME— 22 InSAVOYE Expansion Mode

Exclusive interview with Alain Kaddoum, Managing Director.

06 Etihad Rail 30 32 Qatar Airways Cargo 38 Swisslog 42 Turkish Cargo Maersk Group 46 NEWS

Up to date news of the Global Suppy Chain industry

Announces Rail Freight Terminal at Dubai Industrial City. Exclusive interview with Guillaume Halleux, Chief Cargo Officer. Partners with e-grocery start-up in Kuwait. Award winning air carrier is flying high on the business front. The AP-Moller Maersk Group launches its airfreight division.

4 MAY 2022

48 Mercedes Benz Trucks 50 DHL OpEd Renowned trucks manufacturer reinforces safety.

Amadou Diallo, CEO, DHL Global Forwarding, Middle East, reflects on sustainability in shipping.

54 Bain & Co.

Cyrille Fabre, Partner, Bain & Company ME, on why many brands are late to the Sustainability Game.

56 Tom Craig 58 ADNOC

Our regular star contributor on what’s next for supply chains. A new partnership with India’s Reliance Group bodes well for the mega UAE oil producer.

Sitecore—Customer Data Platforms

Mohammed Alkhotani, Area Vice President, MENA, Sitecore, on Customer Data Platforms.

CHAPTER 3

LET’S STAND TOGETHER

LET'S STAND TOGETHER and offer a friend and confidant Every child needs a familiar source of comfort; someone they can confide in when the world outside seems daunting. Because WeQare, we want to give children a constant companion they can call their own. Moved by people qrcargo.com

Etihad Cargo appoints Road Feeder Service providers in the USA n Etihad Cargo has appointed Accelerated and Jet Airways of the US as its road feeder service (RFS) providers for customers in US territories. Etihad Cargo will utilise the combined expertise of the third-party trucking logistics providers to offer its partners seamless road connectivity, further enhancing the UAE national carrier’s operations in the United States and beyond. Etihad Cargo’s partnership with Accelerated and Jet Airways will expand the carrier’s capabilities in the USA and will enable Etihad Cargo’s customers to benefit from

News NEWS NEWS

n Acme Intralog recently announced it will offer vision-guided intelligent robots for the region’s warehousing and manufacturing sectors through a partnership with MechMind, an AI industrial robotics company with offices in Germany, Japan, China and soon in the US.

6 May 2022

various logistics solutions, including dedicated capacity and 24-hour personalised customer service. Through these strategic partnerships, Etihad Carago will utilise an expanded road transportation fleet, including standard trailers, roller beds, day cabs, step decks, flatbeds, straight trucks with lift-gate capabilities, cargo vans, refrigerated vehicles and other specialised equipment to offer its customers the broadest range of products and transportation options. “Accelerated is proud to be appointed as Regional Ground Handling Trucker for Etihad Cargo. Our teams have worked behind the scenes together for many

years and are now finally calibrating to begin this partnership,” emphasized Brook Miles Pearse, President, Accelerated. “I am confident that by working together as one team, we will be able to build the best path for our shared business aspirations. We wish to extend our sincere thanks to Etihad Cargo for trusting us with their business,” remarked Tammy Zwicki, COO, Jet Airways. “Therefore, partnering with leading RFS providers in the US was another step in Etihad Cargo’s evolving value proposition to expand operations in this key territory,” commented Thomas Schürmann, Etihad Cargo’s Head of Cargo Operations and Delivery.

Acme to offer 3D Intelligent Vision-Guided Robots These robots can be used for visionguided depalletizing, order picking, gluing, mixed palletizing, rebar marking, logistics parcel picking and assembling activities in manufacturing and logistic warehousing facilities. “Traditional industrial cameras cannot generate high-quality point cloud data. With our partnership with Mech-Mind, we will be able to provide vision-guided intelligent robot solutions featuring faster speed, higher precision, and a larger field of view to produce excellent 3D images of various objects,” remarked Navin Narayan, CEO, Acme Intralog. “This will be very useful for logistics and manufacturing sectors. For instance, in a large warehousing facility, many cases need to be depalletized and the process is complex, which requires high speed and stability. The traditional industrial robots cannot deal well with random pallet patterns and many cartons in various sizes and shapes,” he continued.

Furthermore, using AI algorithm, Acme’s vision-guided robot will be able to easily recognize dark or white objects, tapes, cable ties, labeled objects, and the direction of stripes on cartons; and thus, automatically complete depalletizing and palletizing in an efficient and prompt manner, a press communique stated. Acme’s customers can benefit from fast access to innovative vision-based solutions incorporating Mech-Eye industrial 3D cameras, Mech-Vision graphical machine vision software, Mech-DLK offline deep learning training tool, Mech-Viz intelligent robot programming environment and more. By integrating with industrial robots as well as collaborative robots from Hanwha, Acme can provide a wide range of palletization, depalletization, machine tending as well as sortation and bin picking solutions for both manufacturing and intralogistics industries.

Aramex and what3words partnership enhance last mile delivery n The Aramex and innovative geolocation technology, what3words; partnership is set to further improve last mile delivery process through improved and more accurate addressing system. As part of the Company’s plans to further enhance the efficiency of its last mile delivery, Aramex has integrated what3words into its retail application programming interface (API) platform. The integration enables regional e-commerce businesses to give their customers the option to have their packages accurately delivered to any what3words address across the region, according to a press statement. It’s simple for retailers to add a what3words address field to checkout pages, allowing it to be passed on to Aramex couriers. The integration supports regional SMEs who are looking to optimize customer experiences and ensure accurate and efficient deliveries. UK-based, what3words has divided the globe into a grid of 3m x 3m squares and has given each square a unique combination of three words, known as a ‘what3words. This means every front door,

mall entrance, delivery point, and even unmarked roads will have its own unique address thereby optimising the delivery process and providing a smoother customer experience. “Our longstanding partnership with what3words is a perfect example of our commitment to apply innovative technological solutions to boost efficiencies and enhance customer satisfaction, as well as support the further development and growth of e-commerce in the region,” remarked Alaa Saoudi, COO–Express, Aramex. “Using a what3words address makes it easy for people to say exactly where they want their packages, providing a seamless delivery experience for end customers and streamlining operations for couriers and retailers alike,” commented Chris Sheldrick, Co-Founder and CEO of what3words.

NEWS

Tristar to acquire majority stake in HG Storage International

n Tristar Transport, an integrated energy logistics group headquartered in the UAE, recently announced that it has signed a sale and purchase agreement with Madison Pacific Trust to acquire a 51 percent stake in HG Storage International (HGSI). Madison Pacific is selling such stake as holder of a security interest in such stake granted by HNA Innovation Finance Group (HNA) to secure payment under certain notes issued by HNA. HGSI is a joint venture between HNA and Glencore Group Funding Limited, a wholly owned subsidiary of Glencore, one of the world’s largest globally diversified natural resource companies. Through this deal, Tristar will acquire a majority holding in a well-diversified portfolio of oil storage,

distribution and retail assets owned by HGSI, comprising 8 operating assets across four key regions: Europe, the Americas, Middle East and Africa. The transaction, valued at US$ 215mn, will add more than 3mn cbm of fuel storage capacity to the Tristar portfolio and extend the company’s global presence to 29 countries across the globe. Following the transaction, Glencore will remain as a key strategic shareholder of HGSI and a joint venture partner to Tristar. Completion of the deal is expected in the second quarter of 2022 and subject to certain regulatory filings and approvals, and stakeholder consent. Tristar was advised by Acqua Capital and Freshfields Bruckhaus Deringer as legal advisors.

May 2022 7

NEWS

Emirates to launch NFTs and experiences in the Metaverse n Emirates will soon launch NFTs and exciting experiences in the metaverse for its customers and employees, according to a recent press communique. The airline, which has earned a reputation for its innovative products and customer-centric services, recently unveiled via a press communication its plans to build signature brand experiences in the metaverse, alongside both collectible and utility-based NFTs. Emirates also announced that its Emirates Pavilion at the Expo 2020 site

will be repurposed into a centre for innovation, bringing talent from all over the globe to bring to life the airline’s future-focused projects including those relating to the metaverse, NFTs and Web3. “Dubai and the UAE are blazing the way in the digital economy, having a clear vision supported by practical policies and regulatory frameworks in areas such as virtual assets, artificial intelligence, and data protection,” commented HH Sheikh Ahmed Bin Saeed Al Maktoum,

Chairman and Chief Executive, Emirates Airlines and Group. Emirates continues to engage with industry partners on its Web3 strategy, and recruit talent for its pipeline projects, the press statement continued. Last year, it became the first airline to launch its own VR App on the Oculus store, offering users accurate, life size and interactive cabin interior experiences onboard Emirates’ flagship A380 aircraft and Boeing 777-300ER gamechanger aircraft-ends.

Al-Futtaim Automotive launches new digital platform n Al-Futtaim Automotive has recently announced an all-new innovative digital platform that allows B2B dealers to purchase genuine spare parts, body parts, tyres and battery and lubricant products. The Trade Point portal provides a one-stop process that optimizes the ordering and purchase process while enabling ease, convenience and transparency as well as a single access point for all Al-Futtaim brands including Toyota, Lexus, Volvo, Honda, Dodge, RAM and Jeep. Al-Futtaim Trade Point will make it easier for dealers to transact with Al-Futtaim Automotive in a safe environment. With the platform integrated alongside all Al-Futtaim internal infrastructure systems, an order placed on Trade Point is picked up within seconds allowing deliveries directly to B2B partners up to four times a day.

8 May 2022

Additional features of the platform include simplified payment methods, individual business sales analysis insights and live delivery tracking as well as detailed product information and accompanying images to ensure easy distinguishing. In just two months, 13,500 orders have been fulfilled using Trade Point with 150,000 parts being purchased and sold while giving dealers access to over half a million unique part numbers, the company said in a press statement. “With Trade Point, we are at the forefront of the increased government and industry focus on digitalisation and will address the increase in market demand for accessible mobility. With this innovation we aim to create sustainable growth, providing heightened transparency and consistency,” remarked Paul Willis, President, AlFuttaim Automotive.

NEWS

Marian Cernoch appointed Managing Director, Middle East, Scania n Scania Middle East has welcomed Marian Cernoch as its new Managing Director for the Region. Cernoch has moved from his previous position as Head of Sales in the EMA Region and earlier worked as Sales Director in Central European Region. In his current role as Managing Director, he will be based in the Scania Middle East Head office in Dubai. “It’s my pleasure to join the Scania Middle East team and personally contribute to the Scania brand image and market presence development in the region. I am eager to bring forward Scania’s sustainable strategy approach by wider scope of bundled offerings including comprehensive financial and service products,” affirmed Cernoch. “Facing current very complex and disrupted global environment it’s not enough to be just well known as a quality vehicle manufacturer, it is essential to become a real solution provider, offering answers to any kind of transport and logistical tasks,” he added.

Cathay Pacific appoints new Regional General Manager n Cathay Pacific, the awardwinning Hong Kong based airline, has appointed Rakesh Raicar as the airline’s new Regional General Manager for South Asia, Middle East and Africa (SAMEA). Raicar who has over 30 years of experience working with Cathay Pacific, will take over from his predecessor, Mark Sutch. Based in Mumbai, Raicar will be responsible for the growth of the airline’s business and operations in the region. Raicar began his career with Cathay Pacific in 1992 and has held several roles through the course of his tenure including Regional Marketing & Sales Manager, South Asia and Sales and Country Manager, South

Africa and Indian Ocean. His most recent role was General Manager, South West Pacific, where he led, developed and executed commercial strategies for the entire region. “Cathay Pacific has always seen SAMEA as an important region in the network to grow our passenger and cargo business. As an airline with a vision to be one of the world’s greatest service brands, we continue to stay true to our brand ethos,”commented Raicar on his appointment. Rakesh holds a Bachelor’s Degree in Commerce from University of Mumbai and a PostGraduate Diploma in Marketing from the Jamnalal Bajaj Institute of Management Studies.

May 2022 9

SAFEEN Feeders signs a key agreement with Saif Powertec n AD Ports Group recently announced that its feeder service, SAFEEN Feeders, has signed a long-term trade facilitation and shipping agreement with Saif Powertec Limited, a listed firm in Bangladesh that is active in ports, logistics, civil engineering, and power sectors. Under the terms of the agreement, the two companies will work closely together to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years. As part of the collaboration, SAFEEN Feeders is expected to provide eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity to Saif Powertec. In addition to facilitating the movement of general cargo and dry bulk cargo between Fujairah Port in the UAE to port facilities in Chattogram and Mongla in Bangladesh, the new bulk shipping

offering will also oversee cargo operations to the Indian subcontinent, South-East Asia, and other global destinations. “Our newest collaboration with Saif Powertec not only introduces a new offering for customers that is a fast and low-cost service for their dry bulk shipping needs,” Captain Maktoum Al Houqani, CEO, Maritime Cluster, AD Ports Group. “In addition to boosting trade between the UAE and Bangladesh, the collaboration with Saif Powertec brings a new opportunity to deliver an enhanced cargo service to customers

NEWS

News NEWS

NEWS

News

Aviation sector teams up on service delivery at Abu Dhabi International Airport

n Senior officials from Abu Dhabi Airports, Abu Dhabi Customs, Federal Authority for Identity, Citizenship, Customs and Port Security, Etihad Airways, Abu Dhabi Police and Abu Dhabi Department of Health have signed a service charter which sets out a promise to ‘show the world that service excellence is in the DNA of Abu Dhabi’. The sector-wide service charter is being supported by a comprehensive multi-stakeholder programmed designed to deliver common service standards that reflect the Emirate’s distinct brand of hospitality and raise the airport experience to new heights. The first phase involves 50 senior leaders, 200 service coaches and 1,000 frontline staff and across key customer touchpoints including check-in, security, immigration and customs amongst others. The second phase will roll out to the broader airport community to ensure alignment at all levels. “This commitment solidifies a sector-wide service vision and standard for AUH that welcomes all customers to our airport, delivering a consistent philosophy of hospitality that builds longstanding relationships with every passenger, to make them feel welcome at home,” affirmed Shareef Hashim Al Hashmi,

10 May 2022

across the Indian subcontinent, SouthEast Asia,” commented Captain Ammar Mubarak Al Shaiba, CEO SAFEEN Feeders and Acting CEO, Ports Operating Company, AD Ports Group. “Boasting a capacity of 55,000 DWT, SAFEEN Feeders’ bulk carriers, which will be offered on a bareboat or time charter basis,” remarked Tardier MD Ruhul Amin, Managing Director of Saif Powertec. The scope of the agreement also covers future areas of collaboration to jointly develop and invest in the maritime infrastructure and projects of Bangladesh and the United Arab Emirates.

CEO, Abu Dhabi Airports. The programmed is designed to create one integrated team of highly trained frontline staff who are easily identifiable and share a common set of embedded values and behaviors to proactively support and host customers on their journeys through AUH. The team will be supported by 200 service coaches who will provide on-going constructive, real-time feedback and an adaptive digital learning platform called ‘Baitna’, an Arabic term that means ‘our home’. Baitna provides an array of service tools, timely data and instructional information that supports intelligent and timely service.

Bentley expands 3D printingNEWS capability to NEWS produce thousands of automobile components

n Bentley Motors has shared details of the impact of a UK£ 3mn investment to double its Additive Manufacturing (AM) capacity at the company’s headquarters in Crewe, England, where all Bentley models are built. A state-of-the-art AM facility has been applied to a wide range of uses, producing more than 15,000 components in 2021 alone. This expansion will also enable Bentley to utilise advanced technology to create 3D printed vehicle components and even greater personalisation in customer cars. The AM systems convert 3D CAD models into physical components and is recognised as one of the fastest developing technologies in the world. Bentley’s innovative research and development team has already identified a wide variety of items to print, including on-the-job assisted tools for manufacturing colleagues, such as lightweight sanding blocks in Bentley’s iconic wood shop. AM has been employed to create physical components for several prototype Bentleys, including full-scale powertrain models and aerodynamic wind tunnel models. The advanced techniques have also been used to produce parts for the record-breaking Bentley models that were driven in the demanding Pikes Peak Challenge in America. “Bentley’s approach to additive manufacturing is industry-leading and the facility is quickly becoming a cornerstone of our ‘Dream Factory’ ambitions. One of the key benefits is that it is efficiency led, cutting down on the cost and complexity of a myriad of jobs,” commented Peter Bosch, Bentley’s Member of the Board for Manufacturing.

Dubai Customs’ Logistics City Centre clears US$ 435.6mn of goods in Q1-2022 n Dubai Customs’ Logistics City Centre continues to facilitate processes and operations of companies and traders, especially the shipments of the International Humanitarian City. These efforts had a great impact on the arrival of humanitarian aids and supplies in record time to the affected countries due to global crises, in addition to accelerating the completion of procedures for e-commerce companies, which witnessed a significant increase in demand during the past years. “Dubai Logistics City Customs Center completed 48,000 transactions and cleared goods with value of AED 1.6bn (US$ 435.6mn) in the first quarter of 2022,” remarked Sami Eisa, Senior Manager, Dubai Logistics City Customs Centre. “The centre supports international companies, including humanitarian missions, by accelerating procedures, and providing all necessary support, especially the shipments of the International Humanitarian City, which is the largest humanitarian logistics center in the world,” he continued. “We support the mission of Dubai Logistics City in attracting international firms and investments by introducing sophisticated and smart customs inspection services. This reflects the emirate’s competency and efficiency in providing the best logistics and customs services,” he concluded.

May 2022 11

NEWS NEWS DHL Express Inaugurates New Middle East-Istanbul Route De-centralization of cargo movement will help ease shipping congestion – Gulftainer COO n DHL Express MENA recently launched a direct flight from Bahrain to Istanbul, following the signing of a lease agreement with Texel Air whereby DHL has contracted the cargo operator’s Boeing 737-800BCF aircraft for this route. This move supports DHL’s Middle East network optimization strategy which aims to increase air efficiencies and enhance transit times. The new Bahrain-Istanbul-Bahrain flight will be operated six times weekly and will significantly reduce transit times by 24 hours for time definite shipments between Turkey and the Middle East, capitalizing on an overnight service and earlier arrivals into DHL’s new Istanbul facility. “We are continuously assessing market needs and creating routing solutions to maintain a wellconnected international network and better service high demand destinations; and the Istanbul flight is one in a series of new route additions we will be launching this year,” observed Richard Gale, Head of DHL Aviation Middle East and Africa. The contracted Boeing 737-800BCF has a maximum gross payload capability of 23,950KG and is the most fuel-efficient aircraft in its class, supporting DHL’s objectives of improving its environmental footprint in line with its zero-emissions strategy. “We strive to form partnerships with industry specialists and to enable them to meet their targets through the provision of resourceful cargo solutions complemented by uncompromised level of customer service,” commented George Chisholm, Texel Air Director.

12 May 2022

n Relentless port congestion and rising freight costs are impacting heavily on global supply chains, with major disruption encountered in sectors such as fast-moving consumer goods, pharmaceutical and agricultural exports. The focus on larger container vessels serving a dwindling number of mega ports has limited the choices of shippers and receivers and created a rush to ship through traditional major gateway ports, leading to backlogs and displaced containers. “There needs to be an effort to de-centralize cargo movement or at least reconsider the speed with which industry appears to be centralizing the distribution of goods,” Dave Casey, Group Chief Commercial Officer, Gulftainer, told industry leaders during a Cool Cargoes webcast discussing ‘Managing Congestion in a Relentlessly Disruptive Era’. Casey told a panel of industry leaders that whilst larger ports are buckling under the pressure of high levels of congestion, facilities that can handle smaller container ships and general-purpose ships, those such as Hueneme, San

Diego, Wilmington, Delaware and Canaveral Florida are generally congestion-free. However, one such area proving problematic is refrigeration containers, which are costing shippers billions of dollars. The global shortage of reefer containers has impacted perishable imports, which due to the seasonal nature of these refrigerated commodities, further exacerbate congestion, Casey explained. With many stakeholders involved in the sea cargo supply chain, it is difficult to ascertain where the responsibility for control sits. Traders, shipping lines, drivers, feeder vessels and government departments all have a part to play to help reduce an already struggling system, Casey continued. “Shippers need to maintain a degree of flexibility over origin sailings, and by tightly controlling and prioritizing cargo, efficiently handling customs clearance documentation and payment this will give importers the best opportunity to release and advance cargo through the networks,” Casey concluded.

DATA AND ROBOTICS PERFECTLY SYNCHRONIZED. Our SynQ software delivers data-driven intelligence that empowers your business by synchronizing the performance of your people, processes and machines. The result is a level of efficiency and performance you never thought possible.

swisslog.com

World Utilities Congress and Emirates Nuclear Energy Corporation sign a strategic agreement n The Emirates Nuclear Energy Corporation (ENEC) recently signed a strategic agreement with the World Utilities Congress. ENEC will play a central role in supporting the Nuclear Energy Leadership Forum, a key part of the overall Congress, which will address the future of low carbon power and water supplies. Taking place on 09 and 10 May, the Forum will focus on the role of nuclear energy in tackling the parallel challenges of energy security and sustainability, the deployment of safe and reliable nuclear energy for clean electricity generation, technological advancements in nuclear energy, the latest updates in research and development of nuclear science and more. The Forum will highlight how nuclear energy is a powerhouse for the sustainable development of the UAE and around the world, providing 24/7 baseload clean electricity today, and offering a bridge

to new clean technologies such as SMR development, synthetic fuels and clean hydrogen. The Forum will commence with a keynote address from Mohamed Al Hammadi, Managing Director and CEO, ENEC. The Forum will include panel discussions about delivering net zero with clean baseload technologies, formulating and implementing robust licensing and regulatory frameworks, and the successful

NEWS

News

PCFC obtains 7 ISO Certificates in the NEWS Integrated Management System n The Ports, Customs and Free Zone Corporation (PCFC) recently received 7 ISO certificates in the Integrated Management System after the completion of procedures and external audits by LRQA (Lloyd’s Register Management Systems), a leading global Certification Body. HE Sultan Ahmed Bin Sulayem, Chairman, PCFC, stressed that the corporation’s accreditation with 7 ISO certificates is a culmination of the efforts of work teams at the level of business units of the corporation towards implementing and standardizing quality standards to comply with best practices and international standards. Bin Sulayem explained that the Ports, Customs and Free Zone Corporation has passed the necessary audits to qualify for 7 ISO certificates, namely, the quality management system (ISO 9001) to meet the expectations of customers in accordance with the strategic directions of the corporation, the environmental management system; ISO 14001 to reduce pollution, and the health and safety management system; ISO 45001 through the prevention of diseases and injuries in work areas, and the complaints management system; ISO 10002 to enhance customer satisfaction, and the security management system; ISO 28000 by controlling security risks, and the information security management system and ISO 27001 by protecting the information of the corporation and all strategic partners. The Chairman of Ports, Customs and Free Zone Corporation received the ISO certificates during the launching ceremony

14 May 2022

delivery of the nuclear megaproject, the Barakah Nuclear Energy Plant. The Forum will kick off with a keynote address from Nasser Al Nasseri, CEO, Barakah One Company, ENEC’s subsidiary managing the commercial interests of the Barakah Plant. The Forum will also discuss the importance of attracting talent for the clean energy transition, and new avenues in nuclear supply chain management.

News NEWS

NEWS

of the new corporate identity of the corporation, from Luis Cunha, Director of Operations, South Africa, Middle East and Asia region, LRQA, in the presence of Ahmed Mahboob, CEO, PCFC and Director General, Dubai Customs, and other senior officials. Bin Sulayem stressed that the corporation is keen to implement the requirements for obtaining these certificates, as part of its efforts to continue to improve the level, quality and efficiency of services and the administrative and operational systems in place, noting that the corporation follows and applies international standards in the quality management system. “We at LRQA are delighted to be a partner of PCFC and we look forward to continuing to work closely with our UAE associates,” affirmed Cunha.

UPS partners with Jumia to expand its logistics services NEWS in Africa

NEWS

n Jumia and UPS recently announced a partnership giving UPS access to Jumia’s last mile logistics capabilities and infrastructure to grow its delivery services in Africa. Leveraging the Jumia infrastructure in Africa, UPS will offer its customers an extended range of delivery solutions, including door to door package delivery and collection, with a variety of payment options. This partnership will also allow UPS to leverage the extensive network of Jumia drop-off and pick-up stations to expand the UPS reach and coverage across more towns and cities in Africa. The collaboration will initially cover Kenya, Morocco, Nigeria, with plans for expansion to Ghana and Ivory Coast, and thereafter to the remaining African countries where Jumia operates. “We welcome the opportunity to partner up with UPS, a global logistics leader, to offer them last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa,” remarked Apoorva Kumar, Senior Vice President Logistics, Jumia. “UPS’s asset-light approach, like the Jumia partnership, offers a pathway for businesses to quickly and reliably connect to new customers around the world through our global network, potentially accelerating their revenue growth,” commented Gregory Goba Ble, Vice President of Engineering and Operations, Indian subcontinent, Middle East and Africa, UPS.

Shipa Freight and iContainers to merge n Agility recently announced that its digital freight forwarding arm, Dubaibased Shipa Freight, will merge with Barcelona-based iContainers, a pioneer in online freight platforms. Shipa Freight and iContainers will combine technology platforms and operations. The combined company, wholly owned by Agility, will be one of the top-five most-visited online freight forwarding platforms globally. The merger will create one of the most comprehensive suites of digital forwarding services available, including standard air and ocean freight shipments for business customers, ranging from small and medium-sized enterprises (SMEs) to multinational companies requiring spot shipments. Furthermore, it will also include household relocation services for individuals moving from one country

to another and agent services for local forwarding companies that are looking for international partners in key markets and ‘White label’ digital forwarding services that can be seamlessly integrated into B2B e-commerce platforms. The digital forwarding market has spiked with the rapid acceleration of e-commerce, and the desire of merchants, B2B sellers and entrepreneurs to have self-service tools that provide them with greater control and visibility of their supply chain. “We expect the digital freight forwarding market to grow by over 40% a year over the next few years. The Shipa Freight-iContainers merger will create a stronger company to serve these customers,” remarked Henadi Al-Saleh, Chairperson, Agility. “Both companies have deep expertise, and joining forces will strengthen the

technology platform, improve customer experience, and help expand the service offerings and geographic coverage for customers around the world,” commented Carlos Font, CEO of the combined Shipa Freight-iContainers entities.

May 2022 15

Bahri teams up with TKHS to provide logistics support for hotel developers inNEWS Saudi Arabia n Bahri recently announced that its Bahri Logistics business unit has entered into a new agreement with TKHS, the global leader in specialized logistics services tailor-made for the luxury hospitality industry, to deliver a unique and powerful service offering for Saudi Arabia’s booming hospitality sector. Under the terms of the exclusive agreement, Bahri Logistics will partner with TKHS to provide end-to-end pre-opening logistics support for hotel developers in the Kingdom. The scope will encompass a full range of services from quality inspections of materials and equipment through to international freight, import customs clearance, project warehousing, and delivery services for furnishings and other equipment. In addition, Bahri Logistics will provide ongoing logistics support for amenity distribution programs within the Saudi hospitality market. Together, the two companies will contribute to the Kingdom’s drive to develop the Saudi tourism industry in line with the Vision 2030 goals of boosting visitor numbers and increasing the sector’s contribution to national GDP to

15% by the end of the decade. “The new partnership reflects Bahri’s ongoing commitment to developing innovative services and solutions that contribute to both shaping the future of the Saudi logistics sector and strengthening the Kingdom’s economy,” Eng. Ahmed Ali Alsubaey, CEO, Bahri.

Careem partners with Swapp to introduce flexible car rental n Careem recently announced its partnership with Swapp, a car rental service based in the UAE, to bring convenient and flexible car rental options to Customers. Careem Customers in the UAE can now access Swapp’s car-rental service as a new tile on the Careem app and select and order their vehicle through a few simple taps for a seamless digital experience. Customers can manage their monthly recurring payments using any card linked to their Careem pay wallet. “Bringing Swapp onto the Careem app will enable our customers to win back even more time and money, and benefit from increased choice and flexibility when renting a vehicle,” remarked Adeeb Warsi, Managing Director of Platform, Careem. “We believe in making car rental even more accessible to everyone and being part of the Careem Super App is one step closer to doing that,” Danny Laczo, CoFounder, Swapp. Swapp is the latest partner to be added to the Careem app, which offers businesses the chance to tap into the Careem brand, network, and infrastructure to scale and reach new customers. Swapp offers an online car rental process, removing the need to visit a car rental company to complete administration. Instead, cars are delivered directly to the customer’s doorstep.

16 May 2022

NEWS

“With Bahri Logistics robust shipping and freight-forwarding resources and strong local presence in Saudi Arabia coupled with TKHS’s market-leading expertise in managing complex, mixeduse, fast track projects, we are extremely excited to join forces,” commented Samuel Wilson, CEO, TKHS Holdings.

dnata to expand cargo questions into Germany n dnata recently announced expansion of its European footprint through the planned acquisition of Germanybased Wisskirchen Handling Services (Wisskirchen). Subject to government approval, dnata’s entry into the German market will further develop its position as a leading global cargo services provider. Wisskirchen is the exclusive operator of the Cologne Bonn Cargo Centre, a 12,000sqm facility at Cologne / Bonn Airport (‘CGN’) providing a full range of cargo services via a team of some 180 highly trained employees. Wisskirchen handles more than 85,000 tonnes of cargo annually, including general cargo, perishables, pharmaceuticals, dangerous goods, electronics and fastmoving consumer goods. CGN is the third largest airport in Germany in terms of cargo operations with significant capacity for further growth. In 2021 cargo handled at CGN increased by 14% year over year, marking a new annual record for the airport. dnata has executed agreements with the owner of Wisskirchen, Oliver

NEWS

Hollweg, to acquire 100% of the shares in the company. “We are delighted to announce dnata’s first cargo investment in Germany. This is part of our continued broader investment in cargo infrastructure,” remarked Stewart Angus, dnata’s Regional CEO for Europe. “The commitment of dnata will

NEWS

help to further increase the efficiency in cargo handling in our Cargo Centre and is proof of the great location quality of Cologne / Bonn Airport as well as its central importance as the most important logistics hub in NRW,” commented Thilo Schmid, Chairman of the Executive Board, Cologne Bonn Airport.

Al Seer Marine commences construction of its first VLGC; delivery expected March 2023 n Al Seer Marine (ASM), a global player across multiple marine sectors and a subsidiary of International Holding Company (IHC), performed the steel cutting ceremony for its first Very Large Gas Carrier (VLGC), named Lucky Gas. Al Seer Marine formed a joint venture last year, named ABGC DMCC, with BGN International, one of the world’s leading energy, trading, storage and transportation companies, to build two new VLGC’s. It awarded the contract to Hyundai Heavy Industries in Korea. This follows a projected boost in the VLGC segment with growing liquified petroleum gas (LPG) trade relationships between multiple regions, including the Middle East and Asia, Western Africa and Europe, and the United States. This marks the first steel cutting for Lucky Gas, which is expected to be completed and delivered by March 2023. The second VLGC, named North Gas,

is expected to commence steel cutting in May 2022 and be completed and delivered by June 2023. Both ships are sized at 86,000cbm capacity and the propulsion machinery of each ship will be LPG fueled, making them environmentally friendly with less emissions. “The accelerating rise in demand for oil products and gas, in a tight energy market, has resulted in

exploring fleet expansion initiatives to strategically access broader opportunities within commercial shipping,” commented Guy Neivens, CEO, Al Seer Marine. The company aims to increase its fleet up to 20 ships and is analyzing expansion initiatives in product tankers, gas tankers, and dry bulk shipping sectors, with short-term plans of acquiring 10 to 15 ships in 2022.

May 2022 17

Pulse intends to deploy a spectrum of fast EV chargers across Abu Dhabi n Expanding upon the national sustainability drive, Pulse, a UAE-based smart-mobility solution provider, is deploying a spectrum of fast electric vehicle (EV) chargers across Abu Dhabi that will take 15 - 75 minutes to charge an average range of 400 km. In the past, EV users didn’t have access to a fast-charging network in Abu Dhabi. Residents of Abu Dhabi can find the Pulse EV charging stations at their community Mawaqif parking lots located near parks, cafes, restaurants and key places of interest. The inauguration was attended by Saeed Mohamed AL Suwaidi, MD, Abu Dhabi Distribution Company; Abdullah Al Marzouki, Director General, Integrated Transport Center, AUH; Abdulaziz Al Shamsi, Customer Service Executive Director, Abu Dhabi Distribution Company, and Ramiz Alaileh, Director of Sustainability and Energy Efficiency at the

NEWS

Department of Energy Abu Dhabi. Pulse aims to deploy 100 EV charging points in the run-up to the conference and has, to date, helped power more than 50,000 clean kilometers, amounting to a reduction of 12 tonnes of carbon emissions. “We strongly believe that electrification and smart mobility represent the future of transport. But to make this a reality, we

News

News NE

need to build a seamless and convenient experience for all users,” commented Mohammed Rashid Al Suwaidi, Partner and Board Member, Pulse. Pulse uses a portfolio of the latest EV charging hardware to deliver a smooth EV experience that can charge up to three vehicles simultaneously. The company has charging stations at strategic locations, a press release concluded.

ACWA ‘s Rabigh 3 IWP recognised as the ‘World’s largest Reverse Osmosis Desalination Plant’ NEWS NEWS n Under the patronage of HE Eng. Abdulrahman Abdulmohsen AlFadley, Saudi Arabia’s Minister of Environment, Water and Agriculture, ACWA Power celebrated Rabigh 3 IWP, the world’s largest desalination plant. Located in Saudi Arabia, the project was feted in a ceremony which included senior officials from the Ministry, government officials from the Rabigh governorate and executives from the Saudi Brothers Commercial Company and Saudi Water Partnerships Company. “Rabigh 3 meets the clean water needs of one million housing units in Makkah and Jeddah,” commented HE AlFadley. Developed with Saudi Brothers Commercial Company (SBCC), Rabigh 3 IWP project is the first desalination plant of its size in the private sector. The project has deployed a 100% Saudi workforce and will continue to create new employment opportunities for local talent. “This project would not have been possible without the government’s

18 May 2022

support, and the consolidation of partnerships between the public and private sectors. These are projects that have made the whole world watch developments within this country,” remarked Mohammad Abunayyan, Chairman, ACWA Power. “We believe Rabigh 3 IWP is the milestone of change in the desalination

sector, and all have followed this outstanding example of innovation,” observed Eng. Khaled Alqureshi, CEO, SWPC. “Rabigh 3 IWP is an outstanding example, and we are excited to see the future projects and achievements coming next,” said Shannon McCarthy, Secretary General, International Desalination Association.

The Zubair Corporation embarks on large-scale Digital Transformation with Rise with SAP

NEWS

ServeU Essentials expands digital facility management services with fully automated mobile application n The Zubair Corporation LLC (TZC), a large family-owned business in Oman with a diverse portfolio of subsidiaries, has partnered with global technology company SAP to power its group-wide digital transformation with the implementation of latest SAP innovations including SAP S/4HANA, SuccessFactor, the core offering of RISE with SAP and more, as a part of its new business strategy. TZC portfolio includes a significant number of subsidiaries across various industry sectors such as arts and heritage, automotive, oil exploration and production, education, energy and logistics, among other sectors. “We are confident that SAP innovations will enable TZC to become a more unified, automated and agile enterprise, delivering measurable business benefits and creating opportunities for further growth,”commented Al Zubair M. Al Zubair, Vice Chairman, The Zubair Corporation. “This new partnership serves as a true testament to SAP’s regional growth as we aim to support our customers in simplifying and optimizing their landscape, enabling them to achieve their future goals and growth opportunities,” affirmed Sergio Maccotta, Senior Vice President, Middle East South, SAP. By moving to SAP’s S/4HANA and RISE with SAP, TZC will benefit from solutions to simplify complex business processes, while the full suite of solutions from SAP SuccessFactors will enable comprehensive management of day-to-day employee requirements and talent growth. The overall digital transformation powered by SAP’s solutions will be spread across multiple phases, with the first phase focusing primarily on The Zubair Corporation’s headquarters and a select group of companies in its portfolio. “Creating centralized HR and communications functions within the organization, increasing their organizational resilience and being a part of their future growth are among the prospects that are most exciting to SAP in our work with The Zubair Corporation,” noted Waheed Al Hamaid, Country Manager, SAP Oman.

n ServeU Essentials, a B2C unit of ServeU, a UAE-based leading facilities management (FM) company owned by Union Properties, recently launched its fully automated mobile application as part of ongoing efforts to digitize customer experience and provide innovative solutions to clients across the region. The mobile application, a first of its kind in the FM industry, provides customers with direct access to a centralized booking system with its user-friendly and interactive interface. It works using features similar to e-commerce platforms where customers can purchase directly from the company’s e-store. ServeU Essentials’ new digital platform allows online booking, cashless transactions, and virtual subscriptions management. The app’s user-friendly design enables customers to access, book, and pay online, eliminating the need for human intervention. The app is integrated into the company’s Computer Aided Facility Management (CAFM) system, which provides FM managers and staff more opportunities to enhance the efficiency of services while delivering direct and fast solutions to customers. “ServeU has been investing and exploring technological innovations to provide our clients with the highest quality of FM services and deliver an outstanding customer experience. The app guarantees a hassle-free booking, payment, and account managing experience,” commented Gary Reader, General Manager, ServeU. “Our mobile application is designed to give our customers direct, easy, convenient, and effective access to our resources and services, which are sometimes the concern in tech app,” remarked Lucy Jones, Head of ServeU Essentials. ServeU Essentials has been expanding to serve the maintenance, cleaning, landscaping, and smart automation needs of homes, businesses, and retail outlets, a press communique concluded.

May 2022 19

NEWS

Veolia reinforces its presence in the Middle East

Al Sharqi Shipping awarded ‘Most Valuable Partner 2021’ Award by Maersk Line

n UAE’s Al Sharqi Shipping recently received an Award from Maersk Line for the ‘Most Valuable Partner for the Year 2021’. This exclusive ‘invite only’ event was held at the Citronella Ballroom in the Mandarin Oriental Jumeirah and was attended by officials from Maersk and a select group of freight forwarders and logistics services providers. The prestigious award was handed over by Christopher Cook, Maersk’s Line Managing Director of UAE, Oman & Qatar to the Al Sharqi’s top team represented by Asif Rafiq, Chief Operating Officer; Sadaf Rafiq Director of Revenue & Pricing and Wasif Rafiq, Director of Trade and Revenue. “We at Al Sharqi Shipping have shown resilience against the

20 May 2022

backdrop of Covid-19 disruption which caused huge demand and supply shocks all through 2020 until the present time,” asserted Asif Rafiq. The recovery has been bumpy, no doubt, but this has forced us to look internally to reorganize, refresh and re-energize to come out even stronger. This award is a testament to our ability to be flexible, to be innovative in our solutions and more importantly to be the voice of our customers,” affirmed Sadaf Rafiq. Award winning and longestablished Al Sharqi Shipping was set up in Dubai in 1989. It offers a full portfolio of freight and logistics services including licensed customs brokering; freight forwarding and inhouse transport services among many other service offerings.

n Active in the Middle East for more than forty years, Veolia, a leading integrated player of the environmental service sector, brings its activity on a new level through the merger with Suez businesses, finalised earlier this year. With the combination of the strengths and competencies of both companies, the new Veolia will bring innovation, investments and enhanced resources to scale up the existing ecological transformation solutions while inventing the remaining ones. In water and waste sectors, the addition of Suez’s activities and forces will enable Veolia to become the reference in hazardous waste treatment and to reinforce its position in the water management industry. This will give the company a greater leverage to tackle major environmental challenges in the region, especially in the United Arab Emirates, Oman, Qatar and Saudi Arabia. “The creation of a global champion of ecological transformation is a game changer for the environmental services sector. Veolia’s aim is to act as a unique enabler of the ecological transformation solutions and a reliable partner for public and private customers to respond to the environmental emergency,” commented Antoine Frérot, Chairman and CEO, Veolia. “Thousands of colleagues have joined Veolia to contribute to the inspiring ambition of becoming the world champion of ecological transformation,” remarked Azad Kibarian, Veolia Director for Italy, Africa and Middle East.

HOW CAN THE MOBILE RACKING SYSTEM MAXIMIZE YOUR WAREHOUSE SPACE? The Mobile Racking System is a high-density storage system, by tapping into the vertical volumetric space, it reduces the warehouse footprint by 45% yet increases the storage capacity by up to 85%. As a warehouse owner you will save on the total building cost of a new warehouse with a faster return of investment. P.O. Box 37600 Dubai Logistics City – Plot WB54 | Dubai South, Dubai United Arab Emirates | +971 4 804 8100 | ssi-schaefer.com

Benefits: MAXIMIZE STORAGE SPACE EASY ACCESS TO INVENTORIES LOW MAINTENANCE AND SERVICING REQUIRED OPERATIONAL IN TEMPERATURES DOWN TO -30°C

Cover Story: Savoye Middle East

Savoye makes extensive inroads in the Middle East

The Logistics Technology and Supply chain Software provider comes in as a designer, manufacturer, and integrator to offer global solutions to intralogistics challenges The leading supply chain technology provider seeks to leverage the region’s geographical location and advanced logistics network to grow its markets and to contribute to national efforts aimed at boosting industrial activities in line with the National Vision objectives of individual regional countries.

n April 2021, Savoye, the global logistics solution engineering company, announced that it had established its own office in the UAE as part of its ongoing expansion in the Middle East. Savoye has a huge portfolio of solutions deployed across over 40 countries that combine hardware and software according to customer needs such as manual, semi-mechanised, mechanised, highly automated or robotic installations. The company, which made a €191-million turnover in 2021, meaning a 26% growth compared to 2020, provides cutting-edge equipment and warehouse management system (WMS) solutions which harness the latest digital technologies. “We are very optimistic for the industry’s growth potential which will primarily depend on e-commerce activity. Logistics companies will invest and enhance in last-mile deliveries through technology to create more agile supply chains. We believe there is a vast potential in the UAE market to expand our specialized logistics services as demand for data-driven intra-logistics services continues to grow and the UAE pushes ahead to achieve the UAE Industrial Strategy 2030,” affirmed Alain Kaddoum, Managing Director, Savoye ME, on his appointment to this apex position at the commencement of

22 MAY 2022

“My top priorities is to help build a strong and self-dependent local team by hiring top talents and experts from the region. I will also keep working on empowering employees through training, upskilling, and creating a work environment that recognises and values their hard work.” regional operations. The UAE and the GCC have been resolute to enhance its logistics capabilities by embracing digital technologies to drive value for the supply chain. To that end, Savoye is keen to bring to the market its more than 35 years of experience in retail logistics and the control of automated systems amid rising e-commerce demand and growing customer expectations on speed and accuracy of delivery across the globe. A year on into its operations, Alain Kaddoum sat down with Global Supply Chain for an exclusive and wide-ranging interview to bring our readers to speed on developments, accomplishments and his strategy for the company going forward.

Global Supply Chain (GSC): In your own words, give us the one-minute spiel of the Savoye Group as a corporate entity and provider of Supply Chain solutions? Alain Kaddoum (AK): With our 35 years of global experience in the design and implementations of automated intralogistics solutions combined to software for the Supply chain, Savoye has established itself as a significant player in the regional supply chain sector, bringing a wide range of logistic solutions in just oneyear of setting up an office in the UAE. Our full range of automated and robotized technologies as well as software (WMS—Warehouse Management System; WCS—Warehouse Control System; TMS—Transport Management System; OMS—Order Management System) helps bring about better management and performance of supply chain systems. GSC: As the Managing Director for Savoye Middle East, what are your top priorities for the company for the short and possibly the long-term? AK: I strongly believe that the growth of any organisation depends on the quality of its workforce. So, one of my top priorities is to help build a strong and self-dependent local team by hiring top talents and experts from the region. I will also keep working on empowering

Cover Story: Savoye Middle East

Alain Kaddoum, Managing Director, Savoye ME

MAY 2022 23

Cover Story: Savoye Middle East

employees through training, upskilling, and creating a work environment that recognises and values their hard work. As part of the initial phase of our development plan in the Middle East, we will be reaching out to existing and potential customers for brand awareness. Savoye has an unprecedented value proposition to offer by combining a full spectrum of solutions ranging from Manual processes to Warehouse Automation and this should be widely communicated to the local market. The future of the logistics and supply chain sector is immense given the ongoing digital transformation in the Middle East, which is one of the regions with the highest growth potential. With the Middle East implementing technological tools across levels and sectors, leveraging the right technology is imperative. GSC: How have Savoye ME’s priorities / expectations been rearranged and what kind of new demands / pressures are being put on your business now in this pandemic-era? AK: From a global perspective, we think there is a need for the clients to restructure their logistics operations in order to keep pace with the increasing demands, particularly from the e-commerce sector. The supply chain and logistics industry

are no stranger to challenges, given how big and significant the role it plays in the global market. The disruptions caused by the pandemic have magnified some of the vulnerabilities of this industry and presented new challenges. The Covid-19 pandemic highlighted the urgency to embrace digital innovations and automation to sustain business operations, driving organizations to ramp up their investments in smart technologies. Besides the pandemic, the other factors that are currently contributing to the pressure on organizations are the growing eCommerce industry, changing trends, and the increasing demand for

“As part of its constant innovative approach, Savoye introduced a mobile robotics solution that is unique in the supply chain market which is based on autonomous and collaborative robots, combines its logistics expertise and its experience in logistics flows.” productivity across operations. On our part, we are prioritising further development in innovative and sustainable supply chain solutions to address the challenges and the complexities of logistics operations. As a logistics solution provider, we need to keep up with the challenges faced by our clients, hence, we continue to ensure the right balance of investments in organization, processes, and technology. The changing landscape entails organizations such as Savoye to focus on innovative solutions, meet customer demands, improve service, drive cost reductions, and lessen environmental hazards. GSC: Savoye ME is a leader in robotics and software …what do you count

24 MAY 2022

Cover Story: Savoye Middle East

among your strengths and USPs-unique selling propositions? AK: Savoye is a leading global player in the design, manufacture, and integration of automated and robotics systems in the logistics and supply chains industry. As part of its constant innovative approach, Savoye introduced a mobile robotics solution that is unique in the supply chain market. This solution, which is based on autonomous and collaborative robots, combines its logistics expertise and its experience in logistics flows. The product is now available in the market. For some years now, mobile robotics has been establishing itself in warehouses. Driven by the development of many solutions from innovative startups to more industrial applications, these

autonomous mobile robots (AMR) are intended to assist operators in their daily tasks. They facilitate and optimise storage and order picking operations in many industries, including eCommerce, and the retail industry. However, at Savoye, which is an expert in supply chain-specific software and technologies, the subject has already been addressed for a few years. The company was keen to structure a truly innovative approach to the subject, dedicated specifically to in-warehouse applications. For instance, Savoye recently partnered with HAI ROBOTICS, the world leader in Autonomous Case-handling Robotics (ACR) systems. The HAIPICK system features autonomous and intelligent functions. Robots pick and place boxes

or bins on storage shelves up to seven meters high and are able to carry up to eight loads to continuously feed goodsto-person picking stations. The solution is also flexible and works well even in extreme weather conditions. According to industry experts, most supply chain organisations will invest in artificial intelligence and digital software by 2024. Robotics solutions such as HAIPICK will help companies in the digital transformation across their supply chains, increasing productivity, automating processes, and improving their total operation. GSC: How important is automation for the logistics in the Middle East and what trends are you observing in the region?

MAY 2022 25

Cover Story: Savoye Middle East

AK: Logistics in the Middle East is currently growing at a standard pace and is expected to bring a promising future. Automation has become one of the most used technologies amongst industry stakeholders. It helps to speed up logistics operations to meet consumer demands, and thus saves a significant amount of cost and time. An emerging trend today is cloud-based logistics platforms, which can be tailored to business needs. We are developing applications that meet these requirements. There are countless processes in the supply chain - including procurement, distribution, customer service, reverse logistics - which can be automated. The major advantage of automated logistics is real-time access to loading and data analysis, which helps companies to make informed and better decisions. The hand-entry of data can result in mistakes that increase shipping costs. However, automation of this process can lead to minimal human intervention, resulting in reduction in losses incurred due to such errors.

26 MAY 2022

GSC: What opportunities and challenges confront Savoye ME going forward in the current landscape? AK: We see a lot of expansion opportunities in the region, especially with logistics and supply chain businesses adopting advanced technologies for more efficient operations. These advanced solutions are key to addressing pressing industry challenges such as the complicated global logistics system that leads to higher charges for product storage, transfer, and management. For instance, at Savoye, we help tackle the complexity of the logistics system through one of our ground-breaking solutions, the ODATiO software. This multipurpose solution includes warehouse and transport management systems designed to enhance communication and productivity. With the help of ODATiO, we enable companies to manage their storage space, ensure the accurate tracking of product arrival and departure, and even calculate the amount of fuel required to ship the goods. Likewise, our order management

systems, robotic assistance, and packing machines are also helping address the industry’s technology requirements. GSC: What are your expansion plans for the company for the foreseeable future in the region? AK: On a global platform, further to the successful entry of Savoye in the North American market 3 years ago, the next challenge for Savoye will be to penetrate the ASEAN region where we recently created a subsidiary. In addition, we have recently signed an agreement with INCUBE, which is one of the Middle East and North Africa’s premier supply chain mobility solutions provider, to expand internationally. Besides establishing itself in various countries like Europe, the USA, the Asian region, and more recently in Dubai to enter the Middle East market, this recently formed partnership is also part of the international development program of Savoye to boost the sales of its ODATiO software and ensure that it will be available to a broader customer

Cover Story: Savoye Middle East

base across the MENAT region. Savoye is looking forward to forging more such partnerships in the region to continue growing and expanding and providing the industry with world-class solutions. GSC: Who are among the top three performing countries in the region for Savoye ME? AK: Companies are rapidly adopting new technologies to cope up with the increasing need for efficient, faster, and smarter supply chains. If we look at the Gulf Cooperation Council (GCC), three main countries – the UAE, the Kingdom of Saudi Arabia (KSA), and Kuwait – are embracing digital transformation and investing in new technology and robotics faster than the rest of the region in different sectors, including logistics. With several government initiatives and different mega-projects, the UAE and KSA have been able to establish themselves as pioneers in digital transformation and innovation in the region. GSC: How significant is the region for Savoye ME? AK: In the Gulf region, like other parts of the world, companies are feeling the urgency to embrace digital innovations and automation to sustain the business operation, post Covid-19 pandemic. In addition, the adoption of AI-driven applications for warehouse management system (WMS) and transport management system (TMS) is growing steadily, with trends predicting accelerated implementation in the future. Such applications make use of data analytics software to optimize space within warehouses, routes for transportation, goods-to-person movement, and overall productivity. Savoye has established itself as a significant player in the regional supply chain sector, bringing a wide range of logistic solutions, in just one year of setting up an office in the UAE. We intend to utilise the UAE’s geographical location and highly developed logistics network in order to grow its business and contribute to the UAE’s Industrial Strategy 2030. GSC: How did Savoye ME perform

28 MAY 2022

Cover Story: Savoye Middle East

in the region in 2021 and how were your financial metrics impacted by the pandemic? AK: We are quite happy with our performance during last year. We had many opportunities to showcase our solutions and we partnered with companies to expand our growth. One of the highlights was participating in the Materials Handling Middle East show, where we presented our automated, robotic, and intralogistics solutions to the region. Our partnership with INCUBE in the region has been successful, and likewise, we continue to explore and bring innovative solutions to the MENA region. With a great team here in the UAE, we are sure to achieve milestones during this year. GSC: How is Savoye ME performing in the region this year 2022 and how do you hope to close this year? AK: Our performance during the current year is looking promising. After building up the local team, we intend to secure our first project in automation in the region. We are laying special emphasis on developing the automation market in the region by partnering with local organizations on joint development and innovation projects. We will also continue to share our expertise, as part of our marketing strategy, by participating in supply chain and logistics events, animating webinars and roundtables. GSC: Briefly summarize some of the more recent Savoye ME proprietary technologies that have potential and positive bearing on the logistics / warehousing sector in the region? AK: Traditionally, the separate use of WMS and TMS increases management costs and time. But a complete modular single application, such as ODATiO of Savoye, combining WMS and TMS, ensures proper and organised transfer of goods and materials through warehouses while simultaneously reducing costs for businesses. The ODATiO software is our leading and number one technology in the region currently as most businesses seek solutions that reduce costs and increase profits. With

“The ODATiO software is our leading and number one technology in the region currently as most businesses seek solutions that reduce costs and increase profits. With an end-to-end visibility platform, the entire supply chain process can be managed from manufacturing to delivery.” an end-to-end visibility platform, the entire supply chain process can be managed from manufacturing to delivery, while controlling the costs and risks of wholesale distribution, logistics, and retailing. GSC: Tell us about Savoye ME’s partnership with HAI ROBOTICS following the partnership agreement signed in September 2021? AK: Since the announcement of our partnership with HAI ROBOTICS, pioneer and leader in this type of mobile robot, we can note the increasingly growing interest and inquiries for the solution HAIPICK by Savoye and we are really excited and optimistic about it. For the first time in Europe, we presented the system in an Innovation Centre in Belgium, more recently it has been presented during a show in Paris and very soon in the UAE. The HAIPICK system uses autonomous order picking robots that pick and place boxes or bins on storage

shelves up to 5 to 7 meters high and able to carry up to 8 loads to continuously feed goods-to-person picking stations. This new solution now offered by SAVOYE combines HAI ROBOTICS’ mobile robots with our in-house technologies: goods-to-person X-PTS Pick Station, LED strip-based put-tolight shelves, INTELIS conveyors, WMS and WES control software. The advantage is that this solution can be supplied on a stand-alone basis or as part of a more overall system, combining or paralleling several order preparations processes. The partnership with HAI ROBOTICS allows us to provide solutions that are ever better suited to the current and future needs of our customers operating in rapidly evolving and even changing markets, by offering them robust technologies in the service of long-lasting systems. GSC: As the official at the helm, what is your vision for Savoye ME going forward? AK: We aim to reach the maximum number of potential clients in the logistics and supply chain sector so that we can provide innovative and sustainable solutions to them. As the business landscape becomes increasingly competitive, the need for timely and standard delivery has risen, which has led to a greater demand for automation systems and artificial intelligence tools. Logistics solution prov iders such as ours need to speed up and continually improvise solutions to meet the current and future requirements. We aim to establish a responsive sector through a high performance and functional system through our solutions.

MAY 2022 29

Etihad Rail

Etihad Rail announces rail freight terminal at Dubai Industrial City With a capacity of 5mn tonnes, the rail freight supports the industrial and logistics sector in Dubai

tihad Rail, the developer and operator of the UAE’s National Rail network, and Dubai Industrial City, one of the region’s largest manufacturing and logistics hubs and a part of TECOM Group, have announced an advanced freight terminal spread across 5.5mn sqft. The terminal, which comes as a result of the collaboration between Etihad Rail and Dubai Industrial City over the past years, will contribute to cementing the UAE’s position as an international trade hub and boost Dubai’s global competitiveness in manufacturing, logistics, transport, trade, and investment, a press communique indicated. This comes in line with the UAE’s Railways Programme, which aims to facilitate trade by connecting the country’s industrial and manufacturing centres and opening new trade routes.

Key officials present The announcement of the rail freight terminal was attended by Eng. Shadi Malak, CEO, Etihad Rail; Malek Al Malek, Director General, Dubai Development Authority and CEO, TECOM Group; Abdulla Belhoul, Chief Commercial Officer, TECOM Group; Saud Abu Alshawareb, Managing Director, Dubai Industrial City, and other officials and key representatives. The rail freight terminal will complement Dubai and the UAE’s advanced infrastructure and state-ofthe-art transport network, cementing the nation’s position as a gateway to the Middle East, North Africa and South Asia. The terminal at Dubai Industrial City will deliver a major boost to the

30 MAY 2022

UAE’s Industrial Strategy, also known as Operation 300bn. Increasing the industrial sector’s contribution to the economy by building advanced logistics infrastructure will strengthen the country’s position as the leading Arab nation on the World Economic Forum’s Global Competitiveness Report.

Strengthening supply chain and freight logistics “The terminal will contribute to strengthening the supply chain and freight logistics services, in line with the UAE’s efforts to develop the country’s transport and logistics sector. With a capacity of 5 million tonnes, the terminal will connect the industrial and manufacturing centres in the UAE, open new trade routes, and support the country’s sustainable development,”remarked Eng. Shadi Malak. “The addition of the station will support the growth of business partners, expand the emirate’s logistical capabilities, and attract more investments in the industrial sector, thus consolidating its position globally,”noted Belhoul. The new terminal builds on Dubai Industrial City’s proximity to Jebel Ali Port and Al Maktoum International Airport, which allows hundreds of companies to reach two-thirds of the world’s population in eight hours. It will provide a range of benefits to the 780 business partners in Dubai Industrial City and the surrounding areas, centred around improving efficiencies and reducing costs.

A global industrial and logistics hub

The development at Dubai Industrial City is part of Etihad Rail’s sustained efforts to generate maximum benefit for the National Railway project. Spread over 550mn sqft, Dubai Industrial City is a major business district for local and regional manufacturing and logistics and is strategically situated adjacent to Jebel Ali Port, Al Maktoum International Airport, and Dubai’s network of highspeed roads.

Facilitating economic and industrial growth The new terminal is located within the Etihad Rail’s network which runs from Seih Shuaib to Dubai and Sharjah and forms a critical part of Stage Two of the UAE National Railway. As construction is ongoing in this phase, Etihad Rail continues to pursue strategic partnerships with a range of key entities.

Sustainable and reliable The UAE National Railway will deliver wider national economic growth through an efficient, sustainable, safe, and cost-effective transportation network. Locomotives on the network are equipped with advanced emission reduction technology to cut carbon emissions by 70-80%. A single freight train can transport the same amount of goods as up to 300 trucks.

Perfecting waste Perfecting waste collection collection

RENAULT TRUCKS C: PERFECT SOLUTION FOR WASTE MANAGEMENT APPLICATION Renault Trucks C380 P6X4 E5 fitted with 25cbm garbage compactor in partnership with RENAULT has TRUCKS C: PERFECT FOR WASTE Gorica-Farid been designed to offer theSOLUTION complete application with all the necessary features to end user both from technical and commercial standpoint. MANAGEMENT APPLICATION This truck is also equipped with superior safery garbage features compactor such as advanced emergency Renault Trucks C380 P6X4 E5 fitted with 25cbm in partnership with brake system, lane departure warning system, and tire pressure monitoring Gorica-Farid has been designed to offer the complete application with all thesystem. necessary features to end user both from technical and commercial standpoint.

This truck is also equipped with superior safery features such as advanced emergency middle-east.renault-trucks.com brake system, lane departure warning system, and tire pressure monitoring system.

Exclusive Interview—Qatar Airways Cargo

Qatar Airways flying high with Cargo accounting for significant revenue source During the peak of the pandemic in fiscal year 2020-21, Cargo contributed QAR 18.5bn representing 64% of the Group’s revenue.

During the peak of the pandemic in the budget year 2020-21, Cargo contributed QAR 18.5bn (US$ 5.08bn) representing 64% of the Qatar Airways Group’s gross revenues. In 2021-22, Qatar Airways Cargo continues the sizeable contribution to the Group’s income as it is one of the few airlines operating in certain sectors to ensure that its customers and the global community receive the supplies they require.

uillaume Halleux, Chief Officer Cargo, Qatar Airways, waxes eloquent on the performance of the carrier in this exclusive and exhaustive interview with Global Supply Chain. Global Supply Chain (GSC): Briefly, give us an overview of Qatar Airways Cargo in terms of where it stands in terms of performance and scale of operations among the global airfreight carriers? Guillaume Halleux (GH): Before the pandemic, 20% of the airline’s revenue came in from Cargo. Our market share in 2019 was 6.80% and it has certainly grown during the pandemic. In 2019, we

32 MAY 2022

transported close to 1,470,000 tonnes which increased by 3.45% in 2020 and much higher by 14.02% in the year 2021. In March 2021, our market share was 9% with a 21.9% growth (YTD March 2021). Currently, we are ranked number one with a market share of 7.95% (as of February 2022 YTD). We are immensely proud of our customer base and the business relationships we have nurtured for years. Ease of doing business, proactive communication, transparency of information, accessibility and innovative solutions are all qualities that our customers expect and value in Qatar Airways Cargo.

GSC: How significant is the UAE and the GCC region for Qatar Airways Cargo? GH: UAE and GCC are an integral region for Qatar Airways Cargo; we have always been a major player in these markets assisting our customers in both import and export activities. While the UAE/ GCC market is considered as an import market rather than export driven, Qatar Airways had consistently maintained a significant presence in the GCC region. Prior to the blockade we served these markets with more than 25 passenger flights daily out of the United Arab Emirates, more than ten flights daily

Exclusive Interview—Qatar Airways Cargo

out of Saudi Arabia, 11 flights daily from Kuwait and seven flight daily into Bahrain. This was also complemented by our freighter operations; with eight weekly freighters into Bahrain, five weekly freighters into DWC (Dubai World Central) and three weekly freighters into Kuwait. Following the lifting of the blockade in January 2021, we resumed our operations from UAE and KSA, with our market presence positively received by our loyal customers from day one. Our main priority has always been to cater to the needs of the market, building a strong market presence in each country and ensuring our customers get the best possible service. The development of Free Trade Zones in the region will serve as key enablers that will help in the economic development and foster exports from the region. The region’s carriers are already investing in facilities, infrastructure, digitalisation, sustainability and fleet to fulfil the objectives of the national vision.

GSC: How is demand currently holding up? GH: The exports of perishables, personal effects as well as oil and gas shipments continued to be present in the market and given the notable shift from retail to online, we have seen a clear surge in e-commerce movements from the region. Demand is still expected to grow in the coming year with more oil and gas projects restarting while investments in cargo infrastructure in many countries within the GCC have begun. It is also important to note that Qatar Airways Cargo operates globally so we are still seeing a consistent pipeline of demand for air cargo across the globe. GSC: How did the pandemic impact your operations and bottom-line? GH: When Covid started, a significant percentage of our belly capacity was grounded. We went from 60 to 180 daily cargo flights. Our staff strength was impacted due to the pandemic. However,

as part of Qatar Airways Group, we received support from other subsidiaries and departments that extend their staff support to us, ensuring flights are turnaround, cargo space is filled, and the supply chain is complete. On top of this, we set up a China Customer Service department and staffed it with our Mandarin speaking cabin crew, where some of them have now chosen cargo as their new career path. We were firing on all cylinders because Qatar Airways does not view cargo as a side project but as a central pillar in the airline. Qatar Airways was the first airline in the world to effectively manage the crisis, and one of the first to turn to the ‘preighter’ solution. We introduced Covid-19 related safety measures – the team was agile in their approach to enhance the service levels while being flexible and innovative, ensuring an intact cool chain when transporting more than 600 million vaccines worldwide.

Currently, we are ranked number one with a market share of 7.95% (as of February 2022 YTD). We are immensely proud of our customer base and the business relationships we have nurtured for years. Guillaume Halleux, Chief Officer Cargo, Qatar Cargo.

MAY 2022 33

Exclusive Interview—Qatar Airways Cargo

HIACargo Cargo Terminal Features HIA Terminal Features

Doha - tonnes per year

Cargo capacity: 1.4 million tonnes per year

2,353,000

Cargo capacity: 1.4 million tonnes per year Aircraft parking facilities: up to 11 code F Freighters

2,216,000

ULD capacity: main deck Aircraft parking1005 facilities: upunits to 11 code F Freighters

2,199,000

Cargo Complex area: 292,000m2

2,028,000

ULD capacity: 1005 main deck units 2 Cargo Terminal building: 55,000m

2 Cargo Complex area: 292,000m Airside Climate Control Centre: 2470m2

1,763,000

220 temperature-controlled positions for units

Cargo Terminal building: 55,000m 2 requiring refrigeration

2 CargoClimate Agent building: 5,000m Airside Control Centre: 2470m 2

220 temperature-controlled positions for units requiring refrigeration 2020

Cargo Agent building: 5,000m 2

2019 2018 2017 2016

A manpower sourcing programme was established – allowing us to maintain operations while keeping competencies and training at required levels, without compromising safety, security and occupational health and safety (OHS). Additionally, our ground handling partner QAS Cargo, in collaboration with our teams and relevant other carriers, ensured that cargo flows were controlled and managed to cater for available capacity–considering the tremendous dynamics across the network. This helped to prevent congestion. GSC: How many destinations worldwide does Qatar Airways Cargo operate freight only flights? What are your top 3 destinations for out-bound cargo? GH: We have an extensive network, with more than 150 belly-hold cargo destinations (passenger flights where cargo is carried in the belly of the planes) and over 60 freighter destinations where we operate freighters only. In addition, we also operate charters to destinations not included in our scheduled network. Our top three stations with the highest

34 MAY 2022

cargo uplift in the past three months are Hong Kong, Frankfurt and Amsterdam. GSC: How significant is belly-hold cargo on passenger flights for Qatar Airways Cargo? GH: Belly-hold cargo is an important part of our business model and we always welcome additional belly capacity as it is cost efficient, which is appreciable in an industry where yields are always under pressure. Belly capacity is planned daily, and the high frequency count is a key selling point for high yielding products like express or pharmaceuticals. At cargo we always receive a lot of support from the airline. In fact, Qatar Airways Group Chief Executive HE. Al Baker has always believed in cargo. Therefore, we have hardly any A380s, instead, we have opted for the cargo friendly Boeing 777 passenger flights. GSC: How did Qatar Airways Cargo perform in 2021 and what is your outlook for 2022? GH: We have seen recovery over the course of 2021, as aircraft movements, airport cargo operations, and passenger

numbers have all increased. At Hamad 5 Fact Sheet - March 2022 International Airport (HIA) in Qatar, there was a 41.37% rise in passengers served in 2021 compared to 2020. Airport cargo operations increased by 20.71% in 2021, with 2,589,283 tonnes of cargo handled at HIA in 2021. Aircraft movements also grew by 28.12%, with a total of 169,909 aircraft take-offs and landings at HIA. As Covid restrictions loosen, it would also allow many businesses across the supply chain to better forecast and manage due to a reduced level of uncertainty. Demand for air cargo will continue to grow in future and consumers will pay more to have goods delivered within a shorter timeframe. With buying trends continuing to be online, we will be seeing e-commerce soar in 2022 and beyond. This means that the demand will be higher, and we have the right fleet for this purpose. The supply chain will remain tight in 2022 given that Covid and its variants continue to be present. We expect volatility to remain in the short term as we are not fully out of the pandemic, however the capacity crunch will gradually ease off as more aircraft

Exclusive Interview—Qatar Airways Cargo

take to the skies. We can adjust to market dynamics, improve our business offerings and drive new customer engagements. GSC: Going forward, what opportunities and challenges do you foresee for Qatar Airways Cargo in the region? GH: Qatar Airways Cargo is perfectly and strategically positioned at the brandnew Hamad International Airport with its state-of-the-art facilities. Qatar is an ideal hub-and-spoke gateway, with many airlines preferring to route traffic through a central hub and optimise transport efficiency. Investments have been made by Qatar in significant infrastructure projects as the country aspires to become a world-recognised logistical centre with the development of free trade and logistics zones expanding. Our growth is proven by the FTKs, we are the only cargo carrier with growing market shares since 2010. Air cargo serves a specific function in the supply chain and if we continue to offer an affordable, efficient and reliable service, this will remain the case. In terms of challenges, we have navigated through huge challenges such as the blockade and then COVID. GSC: What are your short- and longterm expansion plans & vision for Qatar Airways Cargo? GH: Air cargo is pivotal in supporting

countries worldwide, and we have seen how important it was during the pandemic. To cater to our growth and future demand, we are investing in a brand new, state-of-the-art Cargo Terminal 2 with an additional capacity of 3.4 million tonnes. This cargo facility of the future will be safe, smart and green, relying heavily on technology and automation for its material handling. It will offer faster storage and retrieval and cargo processing, enabling us to offer shorter connections to meet the growing demand for transit cargo. This building will be built on LEED (Leadership in Energy and Environmental Design) rating framework, which is the most widely used green building rating system in the world. A greener supply chain will be the focus for us and there are several opportunities for us to contribute towards sustainability in multiple areas such as climate and energy, weight and waste management and water usage reduction. Safety is also high on our agenda and is incorporated in our short and long-term vision for the airline. Over the next five years, we will be replacing our entire fleet of more than 10,000 ULDs with Safran Cabin’s Fire-Resistant Containers. We have already received the first initial batch in September 2021. The new containers allow us to prevent safety issues related to the increasing risk

posed by lithium batteries shipments and related goods such as smartphones. GSC: How important is the Cold Chain for Qatar Airways Cargo? GH: The cold chain is paramount to maintaining product integrity and efficacy. QR Pharma is one of the strongest products for us. Our global market share for pharmaceuticals exceeds 11% (Financial year 2021-22) of the total airfreighted pharma market, reaching above 15% during the peak of the pandemic. This has more than doubled since we launched our product which really speaks about how far we have come and how much our customers trust us. GSC: What innovations did Qatar Airways Cargo implement in recent times for the Cold Chain sector? GH: Having received CEIV Pharma certification in late 2020, we introduced Envirotainer’s Innovative Releye® RLP container, offering customers high-level yet cost-effective, and sustainable cargo protection. In July 2021, we became a member of Pharma.Aero as well as the Cool Chain Association, to collaborate in defining the highest standards in the shipment of valuable pharma goods and ensuring sustainability in transportation by avoiding integrity deviations leading to medical or food wastage. Following the strong success of the

Freighter Fleet

Boeing 747-800 Freighters

Boeing 747-400 Freighters

Boeing 777 Freighters

Airbus A310 Freighter

Boeing 777-300ER Mini Freighter

Passenger Fleet Key belly-hold aircraft

Boeing 777s

Boeing 787 Dreamliners

Airbus A380s

Airbus A350s

Airbus A330s

Fact Sheet - March 2022

MAY 2022 35

Exclusive Interview—Qatar Airways Cargo

Releye® RLP, we now offer Envirotainer’s innovative Releye® RAP containers to our customers. These containers have low weight and offer the best value operating cost as well as the lowest CO2 footprint in the air cargo industry, in line with our sustainability agenda. We also signed an agreement with Validaide in 2021 to provide customers detailed station capabilities and lane risk assessments on key routes at the click of a button. GSC: What role did Qatar Airways Cargo perform in the transportation of vaccines during the pandemic? GH: While we considered ourselves a market leader even prior to the pandemic, the situations and challenges we faced over the past two years are invaluable for us. As borders around the world began to close at an unprecedented rate, we found ourselves in uncharted territory; our schedules and capacities were no longer something we could take for granted. We have carried more than 600 million doses of Covid-19 vaccines around the world. Qatar Airways Cargo, the freight division of Qatar Airways has signed a Through the Memorandum of Understanding (MoU) with UNICEF, we are supporting UNICEF’s Humanitarian Airfreight Initiative for a five-year

36 MAY 2022

We are building 2 new terminals to handle Live Animals and imports and exports from Doha to give room for the expansion of the current Cargo Terminal 1 with the construction of Cargo Terminal 2.

period. We are working with its freight forwarders to prioritise the transportation of vaccines, medicines, medical devices and critical supplies utilising our extensive global network and capacity. GSC: Tell us more about the agreement signed by Qatar Airways Cargo with SAL (Saudi Arabia) in October 2021? GH: Through our agreement with SAL Saudi Logistics Services, we offer fast and efficient handling for all types of cargo including cool chain cargo at Saudi Arabia’s main airports that we fly to, namely Riyadh, Jeddah, Dammam, and Medina. We share a common vision of customer centricity and service excellence with SAL.

GSC: Do you plan to open new destinations in the region or globally? GH: We plan to increase frequencies on existing routes and operate to new destinations. Recently, we have introduced two new charter partnerships: the first one with Cainiao to support e-commerce growth in South America with the launch of a weekly Boeing 777 freighter service linking Hong Kong and São Paulo: and the second one being daily Boeing 777 charter freighter from Zhengzhou to uplift hi-tech, garments, ecommerce and many other commodities for few of our key account partners. GSC: What new products / initiatives (if any) do you plan to launch for Qatar Airways Cargo this year? GH: Qatar Airways Cargo is continuously working on improving and innovating its products portfolio to adapt and be at the fore front of the industry. We are reinforcing our cool chain management procedures and adding TARMAC equipment to further protect the goods during transit. We are building 2 new terminals to handle Live Animals and imports and exports from Doha to give room for the expansion of the current Cargo

Exclusive Interview—Qatar Airways Cargo

With payload capacity identical to the 747-400 freighter and a 25% improvement in fuel efficiency, emissions and operating costs, the 777-8 freighter will enable us to operate more sustainably and profitably, allowing us to operate to even more destinations while increasing frequencies on existing routes, which will also boost our charter product tremendously. Apart from our own fleet of 28 freighters and more than 200 passenger or belly-hold planes, we have also leased five additional freighters from various providers based on customer requirements to cater to the growing demand. Terminal 1 with the construction of Cargo Terminal 2. We have also been working on our Quality Management System and obtained industry recognised certifications such IATA CEIV Pharma and Live and currently pursuing the IATA CEIV Fresh certification as well. There are a number of initiatives planned under digitalisation and sustainability, however, we will make announcements soon. GSC: Do you anticipate any mergers and acquisitions in the short -term future? GH: Mergers and acquisitions are also positively shaping the future of air cargo traffic and if we find suitable opportunities, we will consider and review. GSC: Are there plans to boost the Qatar Airways freighter count? GH: We anticipate a growing demand

Apart from our own fleet of 28 freighters and more than 200 passenger or belly-hold planes, we have also leased five additional freighters to cater to the growing demand. for air cargo that includes ecommerce, perishables and pharmaceutical products. In January 2022, when Boeing launched the Boeing 777-8 freighter, we announced our order for 50 such freighters. Featuring the advanced technology from the new 777X family and the proven performance of the market-leading 777 freighter, the 777-8 freighter will be the largest, longest-range and most capable twin-engine freighter in the industry.

GSC: Any additional and relevant comments / observations you would like to make? GH: As the State of Qatar moves towards FIFA 2022, it is an exciting time for us in Qatar Airways, as we work with FIFA on managing the environmental impact due to the event. As the Official Partner and Official Airline of the FIFA World Cup Qatar 2022™, we are pleased to be part of the first Carbon Neutral FIFA World Cup. There are more exciting things happening at Qatar Airways Cargo on all fronts including new chapters under our WeQare programme and we will make more announcements in time to come. While innovation comes in many forms, ours are centred around our customers and partners by going through the pain points they face and how to offer a seamless customer experience. This is what sets us apart.

MAY 2022 37

Warehouse Automation Systems

Raha: New tech-driven e-commerce platform set to redefine Kuwait’s grocery experience

E-Grocery Pick Up Store.

The homegrown e-grocery start-up features the country’s first fully automated fulfillment Centre developed by Swisslog

aha, the region’s newest e-grocery platform, has announced that it has officially launched in the Kuwait market, with its app now available on all Apple iPhones and Samsung Android devices. An innovative homegrown concept, Raha is the Middle East’s first pure-play, fully automated e-grocery platform offering a full range of groceries, fresh produce, and household essentials. It also features Kuwait’s first fully automated robotics-fulfillment centre, and one of the first centre of the kind globally with a chilled warehouse capability, a press statement indicated. Developed by global warehouse automation specialist, Swisslog, the centre serves as the core foundation of Raha’s technology-driven operational model and fully automated, datadriven intralogistics system featuring the AutoStore solution; an innovative automated material handling solution

36 MAY 2022

that uses robots on top of an aluminum grid system to store and locate goods, efficiently delivering them to pick stations for processing. Conceived as a digital operation first and foremost, Raha is making a huge investment in its technological infrastructure and completely selfserving operational model, including the robot-led fulfillment team and in-house preparation of all fresh items.

Smart platform Raha’s easy-to-navigate smart platform leverages users’ data and insights to provide a personalized customer journey unlike any other in the market, with made-to-order items, easy step-by-step customization, tailored recipes and an impressively wide range of varieties across all product segments. Raha’s investment in technology and innovation did not come as an added

David Dronfield, General Manager, Swisslog Middle East.

value extension of the business, but rather has been the driving notion at the heart of its conception and service model from the very beginning. “Every step of the customer journey from first log-in to final order delivery has been carefully designed to deliver maximum convenience. We wanted to translate and elevate the traditional grocery experience at its absolute best to a seamless digital experience,”affirmed Saleh Al-Tunaib. CoFounder and CEO, Raha.

Warehouse Automation Systems

online commerce space that users are increasingly migrating to currently, the press release stated. Additionally, Raha offers a nutritionally categorized assortment to fit all lifestyles and a unique feature in the form of Raha Recipes: a one click add-to-cart recipes component, with recipes produced inhouse using only items available in the app. “The micro-fulfilment centre designed for Raha is the first automated microfulfilment centre (MFC) implemented in Kuwait, with a system designed in such a way that order capacity per day can be effectively doubled through the ease of expansion our solution provides,” asserted David Dronfield, General Manager, Swisslog Middle East. Swisslog MFC Solution E-Grocery AutoStore 3D Rendering.

Raha’s heavy investment in the infrastructure of both its software and product technology built a selfserving operational model that is now Kuwait’s first robotic fulfillment centre. Concurrently, Raha successfully launched a fully automated, chilled fulfillment centre making it one of the first of its kind globally. This achievement introduces to the entire region the emerging trend of intralogistics, which is proving to shape the future of the eCommerce industry worldwide, the press note continued.

Quality benchmarks With a core commitment to hit quality and freshness benchmarks across every order, Raha employs a completely temperature-controlled and precise process. The full cycle of logistics from procurement to last-mile delivery, is systematic and precisely controlled. Dedicated areas for the in-house preparation of meats, poultry, fish, and deli items offer consumers unparalleled freshness when coupled with Raha’s unique indoor dispatch area. Their trained fleet carry out the lastmile delivery that is route-optimized and time-efficient to complete the full cycle, seamlessly inserting Raha’s redefined grocery experience into the

Flexibility and convenience Customers are offered unparalleled flexibility and convenience by building

a system that not only caters to both chilled and ambient products but that is designed to execute both express and scheduled delivery. Though Kuwait was under lock down, a tremendous work ethic and solid collaboration between Swisslog and Raha made possible the timely and successful implementation of the system, overcoming the pandemic barriers through our joint efforts. It may be noted that Raha was created and designed by a diverse team of driven young talents, who bring with them wide ranging expertise and experience in the fields of grocery retail, e-commerce, and tech development in the region. The company has completed its seed round of funding, with an impressive capital of US$ 6.7mn raised by Saudi and Kuwaiti backers, as well as an international VC (venture capitalist) the press communiqué concluded.

Fresh and frozen food:

Can your warehouse keep up with changing demands? There are many cold chain challenges to confront when working with temperature-controlled products. David Dronfield, General Manager, Swisslog Middle East examines several aspects of the related logistics and supply chain and proposed solutions.

nlike other industries, food and beverage can be quite extra-ordinary. High dynamism of the FMCG (fastmoving consumer goods), high labour costs, constantly changing requirements and relatively low entrance criteria leveraging a risk of new entries. Add to that the obligation to meet quality standards to ensure high levels of health and safety, it is safe to say food and beverage is a unique sector. The food industry is changing fast with new products, convenience meals, organic foods and exclusion diets. Regulators and consumers want to see full Farm to Fork traceability. The industry is currently

battling with an increasing shortage of staff and skilled workers, and even if we put that challenge aside, working in an environment of -28° Celsius discourages skilled workers from applying. Additionally, food and beverage sector has undergone a value chain shift, transitioning from a classic model (B2B selling to wholesalers or purchasing associations), to an end-consumer model, requiring multi-channel strategies. According to a report by Grand View Research, the global cold chain market size was estimated at US$ 210.49bn in 2020 and is expected to reach US$ 238.4bn in 2021.

MAY 2022 37

Warehouse Automation Systems

Swisslog RFC Solution E-Grocery 3D Rendering.

PowerStore control software is fully integrated in Swisslog’s SynQ suite of warehouse management software and designed to work seamlessly with customers’ WMS and host systems. Dynamic WDS To compete, organizations need a highly dynamic warehouse and distribution system (WDS) to cope with higher outputs and shorter change-over times. Agile and scalable, Swisslog automated warehouse solutions for ambient and frozen food provide the flexibility organizations need from production to the point of sale, ensuring freshness and quality, while reducing costs, human errors and order fulfillment time. An inherently harsh environment for workers, cold storage facilities present an ideal scenario for logistics automation, which can deliver:

PowerStore: High density shuttle system for pallet warehousing With the possibility to individually tailor for all shapes and sizes of warehouse buildings, the modularity of the PowerStore pallet shuttle system enables storage of up to 60%

38 MAY 2022

more pallets compared to manual systems. PowerStore pallet storage systems can be used in a wide range of environments, from -30°C in frozen food storage to 50°C, opening up new possibilities for automation in existing warehouses. PowerStore control software is fully integrated in Swisslog’s SynQ suite of warehouse management software and designed to work seamlessly with customers’ WMS and host systems.

CycloneCarrier: Dynamic shuttle storage and retrieval system for small loads CycloneCarrier is an automated shuttle system for storage of small loads. The shuttle system is designed for applications where high throughput and excellent availability are essential for returns handling, replenishment or buffer for order consolidation. Suitable for chilled storage environments, the shuttle offers double to quadruple deep storage of totes, trays and cartons and can be used as a feeding engine for goodsto-person pick stations, a buffer system for order consolidation, or an intelligently designed combination of both. Using Swisslog’s dynamic CycloneCarrier warehouse shuttle system, Alnatura expanded its store network with lowvolume personal care items from one central location, shortening transport routes while managing a larger SKU range.

The Vectura automated storage and retrieval stacker crane Vectura is a multi-talented and energy efficient high bay warehouse pallet stacker crane which can handle one, two or more loads in single, double, triple and multideep layouts, depending on the storage density and throughput requirements of your warehouse. Vectura brings together the best engineering and pallet stacking knowhow in the industry, capable of handling large and unusual loads from car bodies to boats and everything needed in a high bay warehouse. Saudi Arabian dairy giant Almarai in the Middle East on-boarded Swisslog as a partner to automate processes with an aim to increase the transit quantities, reduce costs, eliminate the laborious and unergonomic working operations while boosting the efficiency of logistics. The challenges of running a warehouse are magnified in the temperature-controlled environment, where standard distribution equipment cannot cope with conditions. Vectura can automate your manual storage, distribution and order picking processes, keeping employees out of the deep-freeze environment, while improving speed and accuracy. Are you willing to take the next step to be able to meet the retailer’s just-in-time order requirements and consumer’s everchanging purchasing habits?

Medium Duty Truck with Allison Automatic Transmission Benefits of having Automatic transmission. • The optional automatic transmission knows the best gear to engage in any situation and allows for quicker yet eﬃcient and optimal cruising speeds. That means more trips per day and a boost to overall productivity. • Direct coupling “lock up” function for enhanced fuel eﬃciency and performance.

Wide range of choices to keep every type of business on schedule. • 3 GVW ranges from 19 – 10.4 Tones. • Up to 21 diﬀerent basic conﬁgurations. • 8 & 5ltr engines with 180hp – 280hp. • Euro 5 emission levels.

GH8E Engine + Automatic Transmission + 11ton Rear Axle

Scan the QR & Contact us today

Going the Extra Mile

EUREKA! Awards

EUREKA! GCC 2021 attracts startups and business ideas from the GCC region Asia’s largest maiden business model competition hosted in March 2022

ureka!, founded by the Entrepreneurship Cell of India Institute of Technology (IIT) Bombay, is one of the world’s leading institutions powered by Gulf Islamic Investments. This five-month long competition offers aspiring entrepreneurs the opportunity to design solid business models, gain mentorship from renowned venture capitalists and angel investors as well as avail excellent networking opportunities and educational workshops. In the first edition of Eureka! GCC, they received more than 150 registrations and over 100 business plan ideas in October 2021. After completing the detailed questionnaires submitted by these teams, Eureka! GCC selected 32 semi-finalists. These 32 semi-finalists went through a holistic Entrepreneurship Programme. Over a period of seven weeks, the program included 20 workshops-covering all the topics an early-stage start-up would need to grow their business plan, conducted by renowned speakers from all over the world.

Mentorship One on one mentorship sessions, with industry leaders from the GCC, with at least two mentors assigned to each team.

40 MAY 2022

Q&A sessions and industry discussions with GII’s Chief Investments Officer, Amit Jain. Through this journey the 32 semi - finalists submitted their reports and business model canvases and along with the mentors’ feedback, the Top 10 finalists were then selected. The closed pitch took place at the Indian Pavilion at Expo 2020, where the 10 finalist startups presented their business models, to a panel of an acclaimed jury, each pitch was evaluated equally considering content value, competitive advantage, presentation strength, financial data and global market attractiveness.

Jury The judges panel list was represented by Dr. David Teece, Chairman and Principal Executive Officer, Berkeley Research Group; Dr. Arshi Ayub Mohamed Zaveri, CEO, Trust with Trade Senior Advisor Royal Family Offices, UAE; Yogesh Mehta, Founder and CEO, Petrochem Middle East and Saif Al Suwaidi, Analyst Global Special Situations, Abu Dhabi Investment Council This event was followed up by an Open Pitch and Gala Dinner, at Taj Exotica Resort and Spa, The Palm. It was attended by more than 250 distinguished guests and representatives including the

Consul General of India, Eureka! GCC finalists, CEOs, VCs and business leaders from the region.

Winners Prizes worth more than US$100,000 were given out and the winners of the Eureka! GCC were announced: The winners and prizes were as follows: Winner: $25,000 - My Gold Souq, Amy Vaya and Priyesh Vaya 1st Runner Up: $15,000 - Tracer, Khalid Roumieh and Wassim Jaber 2nd Runner Up: $10,000 - Veehive, Sathish Jeyakumar and Andrew Widera 3rd Runner Up: $5,000 - Farmin, Ali AlHammadi and Abdullah Al Shamrani “Entrepreneurship is a creative and constructive pursuit which produces positive impacts, and we are pleased to support the region’s budding entrepreneurs through such programmes,” remarked Mohammed AlHassan, Co-Founder and Co-CEO, GII. “The world is facing some of its biggest challenges ever, from climate change and environmental issues to human productivity and healthcare. Entrepreneurship, collaboration, and innovation hold the keys to solving these issues,” commented Pankaj Gupta, CoFounder and Co-CEO, GII.

Turkish Cargo

Turkish Cargo recognised with the AsiaPacific Bioprocessing Excellence Award

Carrier has crowned its processes for transportation of pharmaceuticals with an award.

t the 2022 Asia-Pacific Bioprocessing Excellence Awards’ Ceremony, held digitally in Singapore for the 9th time, the air cargo carrier was now announced as the winner of the ‘Remarkable Air Cargo Brand’ Award in the PharmaLogistics category. “We at Turkish Cargo, will continue to provide the pharmaceutical and biotechnology manufacturers in the AsiaPacific, with the best services,” assured Turhan Ozen, Chief Cargo Officer, Turkish Airlines ‘Asia-Pacific Bioprocessing Excellence Awards’ recognizes exceptional bioprocessing experts, organizations and technologies that facilitate biomanufacturing excellence at enhanced speed, reduced cost, and superior quality. Embracing the best bioprocessing and biomanufacturing leaders in the industry as well as the latest developments in technologies and the best practices in manufacturing, Asia-Pacific Bioprocessing Excellence Awards provides support to

today’s prominent leaders and trendsetters and inspires the innovators of tomorrow, a press statement indicated. Providing the best connections for transport to the production and trade centres in the world, Turkish Cargo continues to improve the rewarding opportunities, it offers as based on high

Turhan Ozen, Chief Cargo Officer, Turkish Airlines.

42 MAY 2022

quality service concept, for the purpose of meeting the requirements of its customers in the best possible manner. It also promotes regional trade by generating tailored and practical solutions aimed at the increasing demand for logistics, a press communique concluded.

Turkish Cargo

Turkish Cargo to release promotional film Film highlights services at its Istanbul Hub SMARTIST

urkish Cargo, the rising star of global air cargo transportation, has recently released a promotional film with comprehensive content related to the industry. Thanks to this production, edited in a simple and functional way by using digital editing techniques, all users in the logistics industry will be able to easily access a wide range of information about the privileged world of Turkish Cargo.

The movie features three main parts, depicting Turkish Cargo’s services including its wide flight network, expertise in special cargo shipments and the Mega Cargo Facility, SMARTIST, the carrier’s brand-new hub at Istanbul Airport. Each section was meticulously prepared and the film also focuses on the logistics sector and air cargo transportation processes. In this respect therefore it stands out as an important guide for the

industry. Inspired by the cargo boxes, the film displays information on the air cargo activities and infrastructure of Turkish Cargo around the world. Featuring two language options, Turkish and English, the movie aims to enhance user experience as a logistics guide and can be accessed through Turkish Cargo’s social media accounts and YouTube. The film will also be distributed digitally by the carrier’s sales teams to all Turkish Cargo business partners.

Turkish Cargo hosts grand Iftar in Dubai

r. S. Burak Omeroglu, the Dubai, UAEbased Vice President, Cargo Sales (Middle East and South Asia), recently hosted a grand Iftar reception at the Inter Continental Hotel in Dubai Festival City. Over 200 special invitees representing prominent multiple stakeholders attended the glittering high profile event. Speaking on the occasion Omeroglu highlighted the accomplishments of the carrier and the potential to grow across the region. The carrier’s performance has been consistently spectacular, and he looks forward to retaining its position among the top cargo carriers and performers in this region as the rest of the globe. He further affirmed that Turkish Cargo was growing from strength to strength and that the airline would continue to maintain its growth momentum in the post Covid-era. Also in attendance was HE Mustafa İlker Kılıç, the Turkish Consul General in Dubai, who lauded the successes and track record of Turkish Airlines Cargo to count itself among the leading cargo carriers in the region and globally. Senior Turkish Cargo officials in the UAE were also present on the occasion.

MAY 2022 43

AP Moller-Maersk Group

AP Moller-Maersk launches Maersk Air

Initiative taken following customers’ global air cargo needs

P Moller–Maersk (Maersk) recently announced Maersk Air Cargo as the company´s main air freight offering serving the logistics needs of its clients with integrated logistics. At the same time Maersk chose Denmark’s second largest airport, Billund, as its air freight hub for Maersk Air Cargo with daily flights creating several jobs in the region. To this end Maersk Air Cargo also announced their intent to enter into an agreement with the Flight Personnel Union (FPU) which is a part of the Danish Confederation and Trade Unions (FH).

Enabler of agility “Air freight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo. Therefore, it is key for Maersk to also increase our presence in the global air cargo industry by introducing Maersk Air Cargo to cater even better for the needs of our customers,” affirmed Aymeric Chandavoine, Global Head of Logistics and Services, AP Moller–Maersk. The new air freight company is the result of the existing in-house aircraft operator, Star Air, which has transferred activities into Maersk Air Cargo, the new carrier supporting existing and new customers and Maersk’s end to end logistics. The process of transferring activities

46 MAY 2022

has received excellent support from customers, suppliers, employees and the Danish Civil Aviation Authority, a press communique observed. “Maersk Air Cargo is an important step of the Maersk Air Freight strategy, as it will allow us to offer customers a truly unique combination of air freight integrated with other transport modes,” asserted Torben Bengtsson, Global Head of Air & LCL (Less than Container Load), AP Moller–Maersk

Increased demand “We see an increased and continued demand for air cargo both today and going forward as well as a growing demand for end-to-end logistics,”he continued. Maersk last operated from Billund in 2005. From the continent Maersk Air Cargo will progressively deploy and operate a controlled capacity of five aircraft – two new B777F and three leased

B767-300 cargo aircraft. Three new B767-300 freighters will also be added to the US-China operation, which will be initially handled by a third-party operator. The new aircraft are expected to be operational from second half 2022 and onwards up to 2024.

Billund Airport Billund Airport looks forward to welcoming Maersk Air Cargo, which will also support the growth of the West Danish business community. “Now Maersk Air Cargo enters the stage at Billund Airport and raises it a notch. We are incredibly proud that we are being chosen as Maersk’s European hub for air freight, and we look forward to developing the collaboration to even new heights,” noted Jan Hessellund, CEO, Billund Airport. Maersk Air Cargo is expected to be fully operational as of second half of 2022.

AP Moller-Maersk Group

Maersk to join SteelZero Initiative Joining SteelZero underscores Maersk’s commitment to demanding net zero steel

o contribute with a clear demand signal and catalyse the transition to sustainable green steel, AP Moller– Maersk (Maersk) has decided to join Climate Group SteelZero, a global initiative which brings together leading organisations to accelerate the transition to a net zero steel industry, in partnership with Responsible Steel, the steel industry’s first global, multistakeholder standard and certification initiative. “The steel industry is one of the largest emitters of carbon dioxide, contributing around 7% of global greenhouse gas emissions. Joining SteelZero underscores our commitment to demanding net zero steel and boosting a rapid scale-up. We will collaborate with our customers, suppliers and across the entire steel value chain,” explained Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, AP. Moller–Maersk. A significant number of the over 700 vessels operated by Maersk are projected to be recycled in the next decade with a large

proportion being the post-Panamax size ships (over 4000 TEU) with steel making up approx. 90% of these ships´ weight. “At Maersk we have both strong decarbonisation ambitions and ships’ coming to end-of-life, which offer a great opportunity to reduce our Scope 3 emissions by driving circularity in the steel industry,” commented Palle Laursen, Senior VP & Chief Technical Officer, AP Moller-Maersk. By joining SteelZero, Maersk collaborates with like-minded industry organisations committed to climate-aligned steel procurement and progress in developing a policy framework towards responsible production and sourcing of steel. “Maersk’s substantial purchasing power and influence is a serious addition to the SteelZero membership. Their voice, alongside eighteen other forwarding looking businesses, will enhance the demand signal for net zero steel, and help drive change at the scale and pace needed,” highlighted Helen Clarkson, CEO, Climate Group.

Maersk to deploy 300 electric trucks in partnership with Einride Trucks will be operated using Einride’s digital road freight operating system and charging solutions

P Moller-Maersk (Maersk) will add 300 electric trucks to its North America network – making it the largest heavyduty electric truck deployment to date. The trucks will be delivered between 20232025 for use by Maersk’s North American warehousing, distribution and transportation business called Performance Team, a Maersk Company. The trucks will be operated using Einride’s digital road freight operating system and charging solutions. They will operate as part of Performance Team’s Road freight network. “Maersk has a comprehensive decarbonisation plan in motion for our Ocean activities which represent 93% of all company-related emissions. This order marks the expansion of our ambitions to cover all services across transport modes,” commented Vincent Clerc, CEO, Ocean & Logistics, AP Moller-Maersk. Einride’s e-trucks are assembled to set specifications throughout the U.S. The partnership will initiate the first large-scale use of Einride’s digital road freight operating system. This technology centralises decision-making by providing data integration with full transparency across the electromobility spectrum. “Not only is the road freight industry responsible for close to 8% of all global CO2 emissions – a number that will continue to grow if cost-effective change is not made today – but you also have a world that is more aware than ever before about the urgent need to shift to electric,” remarked Robert Falck, CEO, Einride. Maersk’s long-term goal in North America is to move toward a fully electric trucking fleet to offer customers an environmentally friendly alternative for short-haul trucking.

MAY 2022 47

Mercedes-Benz trucks

Mercedes-Benz trucks showcases its safety standards Releases its safety standards A-Z Guide to safety Avoiding accidents or, at the very least, reducing the severity of their consequences is a top priority for Mercedes-Benz Trucks, and this is why the company is always researching and developing new and effective, safety, assistance systems, while regularly optimising the existing systems to ensure safety of its customers and other road users, a corporate press statement indicated. Since 1972, Commercial Vehicle Accident Research at Daimler Trucks has been investigating accidents involving Mercedes-Benz trucks, in order to derive optimisation measures for active and passive safety. In the development of safety and driver assistance systems Mercedes-Benz Trucks has been playing a pioneering role for some time. Numerous systems have been installed in the individual model series long before such systems became legally required. For example, as early as 1981 Mercedes-

48 MAY 2022

Benz became the first manufacturer to introduce the anti-lock braking system (ABS) for trucks. In 2006 Active Brake Assist (ABA) heralded a new era for safety systems: for the first time a truck could automatically brake for slowly moving obstacles in front, the press note continued.

Innovation in Assistance Systems In addition to the latest innovation in assistance systems such as Active Brake Assist 5, Active Drive Assist 2, and more, there are many more functions and initiatives which contribute to vehicle and road safety. “The transport industry keeps the world moving and it is our responsibility to support it by making our vehicles even safer still; so that customers of MercedesBenz Trucks will still be moving the world in another 125 years. Zero accidents are the declared goal of the concept of “integral safety” pursued by MercedesBenz Trucks,” stressed Olaf Petersen, General Manager, Daimler Commercial

Vehicles MENA. “This year we are delighted to announce the renewal of our partnership with RoadSafetyUAE, a CSR and Engagement platform aiming to raise awareness for traffic safety. With a similar vision as Daimler Truck’s, RoadSafetyUAE’s aim is to contribute to reducing road traffic fatalities, injuries, and accidents in the UAE. Together, we continue to work on improving road safety and awareness through various campaigns and efforts,” he continued. With this in mind, Mercedes-Benz Trucks has created an essential A-Z guide to its approach to safety: Attention Assist: Increases driving safety and helps to avoid accidents by warning the driver if fatigue or lack of attention are detected. Active Brake Assist 5: The fifth generation of the system assists the driver in under ideal conditions. And within the system’s capabilities, it can apply maximum full-stop braking when approaching stationary and moving objects by applying a partial or maximum full-stop braking for moving

Mercedes-Benz trucks

pedestrians*, thus mitigating and even preventing accidents entirely. Comfort Telephony: Enables the driver to talk via the phone without taking the hands off the steering wheel. Active Drive Assist: First semiautonomous driving system in a series produced truck. Supports the driver in lateral and longitudinal direction.’ Electronic Parking Brake: Engages automatically in case of emergency and is released if the driver forgets to release it. Fleetboard: Mercedes-Benz in-house telematics system. Able to read from all ECU’s all codes constantly. Support preventive maintenance and increases uptime. Genuine Parts: Provides best possible quality for the Mercedes-Benz Trucks. Hold Function and Hill Holder: Prevents the truck from rolling back when accelerating at an incline. Lane Keeping Assist: Warns the driver on time before drifting out of the lane. MirrorCam: Provides best possible view to the driver by adjusting the angle of the camera lens so that the end of the trailer is always visible. By removing the outside mirror, the view next to the A-pillar is much better when approaching conjunctions and roundabouts, thus improving safety. Predictive Powertrain Control: Supports the driver by using 3D maps to optimise the fuel consumption. The driver

can fully concentrate on the driving tasks and can be sure that the truck optimises fuel consumption itself. Quality: Every vehicle is developed, built and tested with daily use in mind. Endurance testing of more than 6mn km in the Middle East under extreme conditions was done on the Actros prior to the launch here. Sideguard Assist: Assistance system that controls the environment next to the truck. Warns the driver if there is a pedestrian or bicycle next to the truck when turning. Prevents dangerous accidents. Touch Control Buttons: Offers the driver the possibility to control all functions without taking the hands off the steering wheel. Underride Guard (Rear): Enhanced passive safety to protect other road users

since it is more difficult to drive under the vehicle rear end. Vehicle Pre-delivery inspection: During the PDI, the workshop ensures all systems of the vehicles are in perfect condition thereby guaranteeing the overall safety of the vehicle. Wireless Charging: Ensures that the battery of the mobile phone is always charged without a connecting cable which can prevent the driver or co-driver from tripping over. 125 Years: Mercedes-Benz Trucks celebrates 125 years of anniversary this year. The products and safety assistance systems are the result of 125 years of innovation and passion. Zero accident vision: Mercedes-Benz Truck’s vision is to reduce accidents to a minimum; this is called the so called Zero Accident vision.

MAY 2022 49

Sustainability in Shipping / Net Zero Emissions

The provisional DHL Innovation Centre in Dubai on its inaugural day.

Making Shipping Sustainable

Sustainability targets can only be achieved by decarbonising sea freight opines Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa, who in this insightful contribution makes the case for sustainable shipping.

he maritime industry currently accounts for 2% to 3% of global carbon dioxide emissions according to S&P Global Platts Analytics, but some projections predict shipping could account for 17% of total annual carbon dioxide emissions by 2050. A key component of global supply chains (ships carry more than 80% of global trade by volume), the international cargo and container shipping industry is making slow progress towards decarbonisation. Maritime shipping is one of the few sectors excluded from the Paris Agreement on climate change. It continues to run on fossil fuels, also known as marine bunker fuels. Pressure is intensifying on the industry to contribute to the international goal of net-zero carbon emissions by 2050.

50 MAY 2022

The International Maritime Organization is targeting a 50% cut in emissions from the global fleet by 2050 compared with 2008 levels. If business continues as usual, emissions will double by 2050 as the demand for freight shipping is expected to grow threefold over this period.

Net zero emissions Meanwhile, countries in the Middle East have started making net-zero emissions pledges, starting with the UAE’s 2050 target and followed by Saudi Arabia and Bahrain in 2060. These sustainability ambitions are well aligned with national initiatives across the GCC that are driving the renewables agenda; as seen in the prioritization of sustainability by the UAE Green Agenda 2015-2030 and Vision

Amadou Diallo, CEO, DHL Global Forwarding, Middle East and Africa.

Sustainability in Shipping / Net Zero Emissions

2021, Saudi Arabia’s Vision 2030 and Kuwait’s Vision 2035. In 2018, only 0.2% of the US$ 269mn in voluntary carbon offset investments went to transportation. The vast majority of these funds was invested in forestry, renewable energy, and other offsetting projects. These projects are certainly beneficial, but they do not reduce greenhouse gases emitted by the transport sector itself, nor co-pollutants like black carbon, ozone, and nitrogen oxides. What is more, offsetting outside the sector reduces the incentive to innovate and advance carbon neutral freight solutions. It is time for a paradigm shift – an innovative approach to drive higher investment into greener technologies and strategies in the logistics industry. Carbon ‘insetting’ offers a promising new pathway to freight decarbonization. While offsetting is super easy and comparably cheap, it is not accepted as a means to reduce carbon dioxide emission. Companies that have signed up to the science-based target, or are in the process, need sustainable fuel solutions to meet their targets.

Sustainable marine fuel The sustainable marine fuel in question is biofuel, something which comes in many forms, and whose environmental credentials differ depending on their source.

When selecting sustainable marine fuels, care should be taken to ensure that they are produced with sustainable feedstock and do not conflict with other sustainability requirements, such as food production. Waste-based biofuels must meet the requirements to be considered the cleanest biofuels currently available on the market according to strict sustainability standards. Already today, carbon dioxide neutralization for FCL and LCL shipments can be achieved by using maritime biofuels. Core of this approach initially developed by the Good Shipping Programme is that the heavy oil that would ordinarily be used is replaced with sustainable marine biofuel on board preselected container vessels. Of course, the renewable fuels are benchmarked against key criteria, to ensure that they are produced sustainably and do not compete with other needs, for example with food production for land use. Sustainable marine fuel is vital to decarbonise ocean freight trade lines. From January 1, 2021, DHL started neutralizing the carbon emissions of all less-than-container load (LCL) ocean freight shipments.

Ocean freight demand Aligned with the strong demand for ocean freight in the Middle East and Africa, DHL customers can choose

Katja Busch, Chief Commercial Officer DHL & Head of DHL Customer Solutions & Innovation.

sustainable biofuels to reduce their carbon footprint. Such was the success of the LCL initiative, DHL extended the service out to full-container load (FCL) shipments as well. At the end of the year, DHL’s customers receive a verified certificate showing exactly how much carbon dioxide was reduced on their behalf which they can then take to their own auditors to really deduct it from their carbon footprint.

Decarbonization of transport In the long-term, greater decarbonization of transport is key to driving positive change. Future-proofed logistics companies should think now about developing a stringent insetting strategy. When paving the way towards greener logistics, collaboration across the industry is needed. By jointly developing methods and guidelines for carbon insetting and reporting, we can create a framework which makes it possible to allocate funds to decarbonization projects in the logistics industry. This would give the industry the opportunity to unlock a vital resource and significant leverage to support the technological shift towards truly decarbonized logistics.

MAY 2022 51

Sustainability in Shipping / Net Zero Emissions

DHL White Paper reveals the leading role of logistics in the energy revolution

More decentralized and distributed renewable power generation boosts logistics demand Logistics industry as a key enabler in re-designing energy networks and the switch to renewable energy sources is vital on the road to net-zero emissions, reveals a recent DHL White Paper.

s the effects of climate change become increasingly visible, the energy sector is going through a transformational journey as governments and companies are stepping up their efforts to reduce carbon dioxide emissions. The recently published DHL white paper, ‘Logistics of the Energy Revolution’, sheds light on the transformation of the entire energy industry on the road to a net-zero future and how logistics has turned into its key enabler. “A net-zero system will entail a profound shift towards electrification. We are however faced with the circumstance that renewable energies produce less power per installation than fossil fuels. This means that installed wind power capacity will need to increase by a factor of four, and solar photovoltaic by a factor of seven, between 2020 and 2030,” remarked Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions and Innovation.

52 MAY 2022

“That is why it is important to address the growing role of electricity generated by renewable energy technologies and the resulting changes in requirements towards the logistics industry,” she added.

Net-zero transmissions The transition to net-zero will require an increase in the capacity of renewables but also an increase in the quantity of distributed generation capacity. Multiple factors, including the quality of local renewable resources, the availability of suitable sites, and the proximity of demand, will decide where renewables capacity will be deployed. Additionally, the electricity infrastructure of the area will have an influence on the distribution network. In its white paper, DHL identified five key areas that are essential for the energy transition: collaboration, work end-toend, focus on visibility and digitalization,

identifying transferrable skills from adjacent industries, and pursuing sustainable logistics solutions. This implies that supply chains have to be transformed on multiple levels. Digitalization, new logistics management processes, and new technologies will help monitor and adjust consumption behavior, for example, in optimizing route choices for road transport or switching to less carbonintensive transport modes.

Energy transition “The energy transition is happening now, with logistics as a critical enabler of this revolution. A new energy landscape will emerge as demand for energy is expected to rise, especially in areas with growing economies such as in the Middle East region commented Michael Wiedemann, President, DHL Energy Sector. “The challenges for logistics in this case are threefold. First, the need for transportation capacity will grow. Secondly, the installation and expansion of new infrastructure combined with the service lifecycle. Finally, we need to address the relatively high carbon impacts in the supply chain for renewable energy deployment,” he continued. Planning for the future and addressing the logistics challenges will be key to achieving the energy transition. All stakeholders must start to take responsibility and work closely together to drive the energy transition forward, which is crucial to solving emerging logistics challenges. As a leading logistics expert, DHL is dedicated to providing technology solutions that will contribute to a net-zero future, the contribution concluded.

Espousing Sustainability

reasons why many brands are late to the Sustainability Game

Many consumer goods companies have made solid gains to promote sustainability through such moves as reducing their carbon footprint and water usage. However, relatively few have made sustainability a big part of their brands, opine Cyrille Fabre, Partner, Bain & Company Middle East and Jenny Davis-Peccoud, Partner, Bain & Company Amsterdam.

o understand the obstacles keeping fast-moving consumer goods companies (fmcg) companies from developing sustainable brands, Bain & Company recently interviewed senior executives at 20 of the largest consumer goods companies. In those interviews, 100% of participants said they made sustainability a priority and are devoting more time to it. However, only 5% said they had successfully embedded sustainability in their brands. The multiple rewards of building sustainable brands are well documented. When we surveyed 8,000 consumers on their views, nearly 75% said they are willing to pay more for sustainable products. Sustainable incumbent brands are growing two times faster than non-

54 MAY 2022

sustainable brands, according to our research, with sustainable insurgent brands growing ten times faster. Incumbent brands can use sustainability to reignite their relevance. If the message is so clear, why are so many traditional brands late to the game? Executives cited three main barriers:

Consumers want it all

On the one hand, consumers want sustainable products. Yet consumers also demonstrate an unwillingness to compromise on taste, convenience, quality, or price for sustainability – and often perceive a trade-off. Consumer goods companies can overcome this obstacle by authentically

making sustainability one of the reasons consumers love their brand. That starts by establishing a sustainability ambition and asking a fundamental question: How strongly do we want to tie our brand purpose and proposition to sustainability? There is a science that can help brands address this choice. To understand what underpins a consumer’s perception of brand value, we identified 30 Elements of Value in four categories: functional, emotional, life-changing, and global impact. When making sustainability part of the value proposition, a common route is to start at the bottom of the Elements of Value pyramid with threshold-level sustainability elements. However, brands that achieve the most from sustainability

Espousing Sustainability

climb the pyramid to the top – delivering elements at all four levels.

Swords & Shields After determining how ambitiously to embed sustainability into their DNA, winning brands decide which specific sustainability topics they want to use to actively engage with consumers—which they want them to care about and love their brand for (call them ‘swords’) and which they want to be important to their broad stakeholders, where the brands want to set objectives and achieve a range of benefits (call them ‘shields’). Based on their ambition and chosen swords and shields, brands need to make well-thought-out changes within and beyond their product offerings. The moves within an offering include portfolio adaptations to deliver more sustainable products, such as renovations to bestselling SKUs, core extensions, adjacencies, and even new business models. Changes inside the offering should represent the bulk of the effort – as much as 90%. Any remaining energy may be devoted to additional community or philanthropic activities to reinforce the brand’s contributions to the global sustainability agenda.

Consumer-Engagement Strategy To bring sustainability messages authentically to consumers, the best brands develop a sensitive consumerengagement strategy. Our research found that brands must devote a higher share of voice to sustainability – in both the volume and percentage of their messages – if they want to change consumer perception. Markets test and learn to identify the best way of bringing sustainability messages to life for their target consumers, and how to balance this with core performance messages. Despite the need to thoughtfully communicate, many companies have so far failed to embed sustainability in a large share of their top brands’ communications, according to our

Cyrille Fabre, Partner, Bain & Company Middle East.

research. In fact, about 90% of incumbent brands do not embed sustainability frequently in their communications.

Pricing Finally, there is the issue of pricing. Some brands have overcome the tough situation in which consumers will not pay more for what they perceive as the same product and retailers will not readily accept price increases, even for sustainable goods. Some winning brands price below the elasticity barrier, but with modest increases as they make continuous improvements. Others have found that retailers and consumers are more willing to accept higher prices if, say, the proceeds go directly to farmers or help fund sustainability causes. Other brands have raised prices with major product changes, including sustainability, or with the introduction of new sustainable product lines. Of course, not all the value will result from increased prices; greater volume growth, market share gain, and repeat purchases, even at the same price, are all benefits sustainable brands can garner.

Where are the solutions?

The second hurdle involves the difficulty of finding the right solutions at the right cost. Half of the executives interviewed said solutions

are not available, and 75% said that added costs hurt the business case for sustainability. The reality is that companies can position themselves to overcome these issues. For example, to mitigate the cost impact from sustainability, the best companies explore three areas. First, they manage costs within the company. One company used better packaging— thinner containers and improved shapes that are more efficient to produce and easier to stack—to cut costs as much as 11% while substantially reducing materials requirements, including the use of plastic. Second, leaders manage costs throughout the industry, by defining higher industrywide minimum standards or forming associations to support activities such as bottle collection and recycling. And third, they manage costs with innovative approaches along the value chain through such moves as pooling volumes.

Uncooperative operating models

Our executive interviews underscored a final major hurdle to embedding sustainability into brands: existing operating models hold them back. Managers cling to a financial value mindset, or sustainability feels like the private domain of a separate team. Moreover, time horizons and incentives are not in line with sustainability targets. The best brands take a cross-functional approach, embedding sustainability within divisions and business units while linking incentives to sustainability targets. These companies treat sustainability as if it were any other business process. Perhaps most important, top leadership inspires a culture that fosters sustainability in brands. It all may sound daunting, but when consumer products executives work to overcome sustainability’s three biggest hurdles, they typically watch the benefits multiply. Their brands outpace competitors in growth, older brands gain new relevance in consumers’ eyes, and their passion reignites employee engagement. Helping the planet helps these companies thrive.

MAY 2022 55

Thought Leadership Contribution

What is next for Supply Chains? — Realigning Supply Chains The awareness that supply chains are strategic and critical has firms asking themselves how they can build resilience or risk mitigation. There are different approaches to doing this writes Tom Craig President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain—Editor.

epending on where you are in the world, you have experienced China-US trade issues, the global pandemic, and Russia’s attacking Ukraine. Manufacturers, retailers, and wholesalers/distributors are dealing with high ocean rates, delivery delays, and sourcing changes that have impacted inventory/product availability, procurement, and more. Also, behind much of the freight rates and operations issues is high demand that created volumes exceeding the capacity of logistics providers to handle it. Recognition has arisen that we are in a time of continuous supply chain disruption. Add in climate change, geopolitical concerns, and other issues that can affect business continuity. One is to reduce the products they carry, SKU rationalization. Another is to carry more inventory, even overstock. Given all the items a firm may carry, this may challenge warehouse capacity, throughput, and inventory turns, sometimes called inventory rich and cash poor. Another way is moving closer to end markets where customers are. This means discussions about potential procurement, sourcing, manufacturing, and supply chain changes and shifts. This has become the reshore question Companies are asking themselves about what they make and/or buy and where it should be done. The challenges that companies have experienced go against traditional risk aversion with change. Some talk in terms of deglobalization

56 MAY 2022

as a way of building resilience. It is labeled as reshore, onshore, nearshore, and same shore. It raises the question whether decades of low-cost products will be undone by two years of supply chain disruptions? Also, will a firm’s changes will be an allor-nothing? Or is there a hybrid path? No matter, what we are talking about is not shifts. No matter the terminology, it is realigning supply chains. This includes sourcing, production, procurement, and end-to-end supply chain management. The above sets the stage for what comes next—what to do and how to do it. There are two parts to a realignment project:

Step 1. Call it Phase 0. This is what you are thinking as to reshoring. Do you want to move it onshore, nearshore, or stay same shore? There are points to consider which can vary by industry, market sector, or type of business—manufacturing, retail, wholesaler/distributor. These can include: How critical are your products? This showed early in the pandemic with PPE, personal protective equipment. Much of these items were made in Asia which had shutdowns. That had serious implications. How valuable are your products? There are costs to making changes. Generating a return on investment, or ROI, reflects the value of what you want to shift. In turn, this dynamic has a different standing with low-value items. A classic battle. Somewhere in all this

will be the labor vs capital issue. The labor reflects wages, training, education, supply of employees, and related topics. Where do you put your money? Capital ties to manufacturing and to building resilience through technology as compared to engaging people. The length of your end-to-end supply chain. The shorter it is, the easier it may be to adjust to events. Length is also a factor in the nonlinear, complex supply chain.

Step 1.5: There may be less complicated options. These involve your suppliers. Diversify: This can be defined as a type of reshore. Look at your suppliers and transport/logistics providers, especially the ones that are very important. Can you reduce your use and dependence on them? That can mean you pay higher prices by reducing your volume commitments. But it will also spread your risk and improve resilience. Relationships: A takeaway from the last two years is to create supplier relationships that go beyond price and traditional buyer-seller connections. This can be easier said than done. But continuous supply chain disruptions have shown the need for it.

Step 2: This is your analysis or assessment. It presents an opportunity to see and understand your end-to-end supply chain—its size and complexity. You are looking at a range of options— no changes, moving production or

Thought Leadership Contribution

that supply chains are linear. Think of it as railroad tracks or the modern Flat Earth Society. Something that is an urban myth; it has never existed. However, there is more.

Drill deeper It does not stop there. Your suppliers have suppliers. And so on. There is a network of suppliers with interconnectivity. What you have are tiers and layers of suppliers. The granularity of your inbound supply chain. If you are a baseball fan, think of it as seeing a triple play. All the parts and the movements. Understanding this will prevent you from missing parts at locations that you are moving from. That can undermine the project. Defining and seeing the supply depth is something that blockchain and supply chain visibility can miss. You cannot with your realignment. Map your complete supplier network. This enables you to see the size and complexity of your nonlinear supply chain. It also presents a view of what you must understand and assess.

Crunch the Numbers This is where everything leads. What does supply chain realignment mean to your product costs and margins? Landed cost is the best cost to use. This is your buy price from suppliers, shipping, customs, port, insurance, and related costs. An even better number is the landed cost delivered. You should have the data to do the analyses. Picture for illustration purpose only

sourcing away from certain countries, moving it closer to home, or transferring it to the home country. This also means looking across your product spectrum. It requires a strong analysis of what is required to make sound decisions. Your work should include: Recognize upstream: The recurring challenges with the past two+ years have been primarily upstream or the inbound supply chain. That is where suppliers are and where the supply of supply chains begins. To add to the problem, the upstream is often organizationally bifurcated as to procurement and

transportation/logistics. For too many, supply chain management is viewed and defined as and by its transportation/logistics elements and not by upstream/ downstream or other relevant designations. The two parts are also managed in separate groups in a company. And the performance of both is often measured by costs. Say suppliers, suppliers, suppliers: Detail what you buy from suppliers. What do you see? What do you not see? Supply chains have been limited by Straight Line Thinking Syndrome, aka,

Conclusion. What does the future hold for your supply chain, procurement, and supply chain management? Will it be framed around reshore, onshore, nearshore, or same shore? Will it be about globalization, regionalization, or global regionalization? If you are considering supply chain realignment, you have two choices. Just do it. Call it a knee-jerk reaction. Or do a thorough analysis. Choose the latter to gain an understanding of your supply chain, minimize risks, and improve any implementation.

MAY 2022 57

ADNOC

TA’ZIZ and Reliance sign shareholder Agreement for Ruwais Chemicals Project ADNOC and Reliance sign new strategic agreement on Upstream collaboration and decarbonization of operations

asdar and Reliance will discuss collaboration in new energies as UAE and India seek to grow their leadership positions in renewable energy and green hydrogen To this end Abu Dhabi Chemicals Derivatives Company RSC (TA’ZIZ) and Reliance Industries Limited (RIL), recently signed a formal Shareholder Agreement for the TA’ZIZ EDC & PVC project, it was announced via a press communique. Reliance is India’s largest diversified conglomerate and a strategic partner with Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabibased investment and holding company, in TA’ZIZ EDC & PVC, a world-scale chemicals development at the TA’ZIZ Industrial Chemicals Zone in Ruwais. The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor-Alkali,

Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over US$ 2bn (AED 7.34bn). These chemicals will be produced in the UAE for the first time, unlocking new revenue streams and opportunities for local manufacturers to ‘Make it in the Emirates’.

Official visit The formal shareholder agreement was signed by senior executives during a visit of Mukesh Ambani, Chairman and Managing Director, Reliance, to ADNOC headquarters. During the visit, Ambani met with HE Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and discussed opportunities for partnership and growth in Upstream, new energies

HE Dr. Sultan Al Jaber and Mukesh Ambani at ADNOC HQ in Abu Dhabi.

58 MAY 2022

ADNOC

and decarbonization across the hydrocarbon value chain, the press statement continued. HE Dr. Al Jaber and Ambani exchanged a signed framework agreement between ADNOC and Reliance to explore collaboration in the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonization of operations, including in carbon dioxide (CO2) sequestration. “We are building on this partnership and the progress at TA’ZIZ to unlock more opportunities to drive the UAE’s industrial and manufacturing growth, while advancing cooperation on decarbonization, new energies and upstream production,”commented HE Dr. Al Jaber. The TA’ZIZ EDC & PVC project is making solid progress towards the detailed design phase in advance of the Final Investment Decision (FID) which is expected to be taken later this year.

Joint Venture “This joint venture is a testimony to the strong and growing ties between India and the UAE and will be a benchmark for more such projects built on strengths of the two nations,” remarked Ambani. Ambani also met with Mohamed Jameel Al Ramahi, CEO, Masdar, to explore potential opportunities for collaboration in renewable energy and green hydrogen, both of which are key priorities for the UAE and India. During his visit in Abu Dhabi, Ambani was also briefed on strong progress made at the TA’ZIZ Industrial Chemicals Zone. The development of TA’ZIZ continues at pace, supporting the UAE’s national strategy to empower its industrial sector, driving growth and diversification of the country’s economy for many years to come. Chemicals is a priority sector for the UAE’s industrial growth strategy, championed by the Ministry of Industry and Advanced Technology. The chemicals set to be produced by the TA’ZIZ EDC and PVC joint venture with Reliance have a wide range of industrial applications, enabling local supply chains and meeting growing demand in key export markets, the press note concluded.

ADNOC L&S expands its shipping fleet with the acquisition of two new-build LNG vessels Region’s largest shipping and integrated logistics company continues to deliver on its growth strategy

DNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (ADNOC) and the region’s largest shipping and integrated logistics company, recently announced the signing of a Ship Building Contract for the construction of two 175,000cbm LNG vessels that will join its fleet in 2025. The purchase, part of the company’s broader growth and expansion strategy, further reinforces its position as the UAE’s leading shipping and maritime operator. The new LNG vessels will be crucial enablers of ADNOC’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its liquefied natural gas (LNG) production capacity. They will be built at the Jiangnan Shipyard in China. In 2020, ADNOC L&S started a strategic growth program to expand and diversify its shipping fleet and offer a broader service to its customers, while supporting and enabling the growth of ADNOC’s upstream production capacity and the expansion of its downstream and petrochemical operations. ADNOC L&S has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG, and LNG to global markets through its owned and chartered vessels.

Key enabler “The expansion and modernization of our LNG fleet will be a key enabler

of ADNOC L&S’ growth strategy. This acquisition helps future-proof our fleet with more sustainable, modern vessels capable of serving our customers for the next 25 years and deepens our partnership with Jiangnan Shipyard,” explained Captain Abdulkareem Al Masabi, CEO of ADNOC L&S. “We are committed to delivering these vessels on time, with good quality and ensuring the highest possible customer satisfaction,” commented Lin Ou, Chairman, Jiangnan Shipyard. The new-build LNG vessels, each with a capacity of 175,000m3, are significantly larger than the current ADNOC L&S fleet of LNG vessels which have a capacity of 137,000m3 each. Each of the new build vessels will carry enough LNG to power 45,000 homes for a year.

Acquisition The acquisition of larger, more energy efficient vessels will allow ADNOC L&S to meet growing customer demand while improving the environmental footprint of its fleet. Large Gas Carriers for AW Shipping, ANDOC L&S’ Joint Venture company with China’s Wanhua Chemical Group. Over the past 24 months, ADNOC L&S acquired 16 deep sea vessels, including eight Very Large Crude Carriers in 2021, adding 16mn barrels of capacity, six product tankers, which expanded the product tanker fleet capacity to over 1mn MT in addition to five Very Large Gas Carriers for AW Shipping.

MAY 2022 59

Last Word: Customer Data Platform

business benefits of a customer data platform

Mohammed Alkhotani, Area Vice President, Middle East and North Africa, Sitecore, identifies seven ways that a customer data platform helps a business create standout customer experiences and drives personalization at scale.

ccording to Sitecore, a dedicated CDP (Customer Data Platform) captures and cleanses data. It unifies data to create a single customer view. However, the CDP’s talents do not end there. From building loyalty and trust to increasing revenue, the business benefits of a CDP are many and varied.

Eliminating data silos

This is where the customer data platform really flexes its might. By breaking down data silos, the CDP transforms otherwise haphazard, fragmented collections of names, email addresses, and purchase history into valuable, actionable data that updates dynamically in real time. Duplicate profiles that impact relevancy and analytics are removed, allowing the customer data platform to create a 360-degree customer view and carry out accurate data analysis, segmentation, and decisioning to deliver the types of personalized experiences that turn customers into brand advocates.

Unlocking AI-powered personalization

Leveraging historical and realtime data, AI-powered customer data platforms provide marketers with all the insights they need to decide the who, what, where, when, and how of personalized customer engagement. AI-powered personalization is a valuable marketing tool for several reasons. While brands can use AI to identify opportunities to upsell products

60 MAY 2022

and services to relevant customers, they can also predict and identify customers who are unlikely to convert.

Ensuring data protection and privacy

With the ongoing threat of data breaches and GDPR and CCPA enforcement, building and maintaining user trust has never been more important for brands. CDPs enable brands to comply with existing and emerging data protection and privacy legislation by centralizing data–pulling together data sources, creating complete and up-todate customer profiles. Not only does this centralized approach keep the business and its customers safe from potential threats, but it also means brands can quickly and easily carry out a data audit if, and when requested to do so.

Building omnichannel customer experiences

Exceptional CX calls for a thorough understanding of both the online and offline behavior of the customers. A customer data platform gives brands a deep understanding of their customers by ingesting data from online and offline sources and unifying it to create a single view of each customer. Using machine learning and AI, the CDP will segment customers based on criteria such as their demographics, geographic location, and behavior and then activates relevant campaigns via various channels including mobile, email, web, and social media.

Mohammed Alkhotani, Area Vice President, MENA, Sitecore.

Increasing operational efficiency

Seamless integrations with existing tech stacks mean CDPs reduce setup costs substantially and save hours of engineering work and reliance on IT resources. By democratizing customer data, the CDP allows marketers to focus on creating next-level campaigns and experiences, while IT teams can concentrate on tracking, building, and optimizing new data science models.

Improving customer lifetime value

Customer lifetime value (CLV) represents the total worth of a customer over their entire relationship with a brand. Considering that it costs significantly more to acquire new customers than to retain existing ones, it makes good business sense for brands to look after the customers that they have already converted by delivering engaging experiences that encourage loyalty.

Driving revenue

From improving customer acquisition to delivering personalized omnichannel experiences that drive retention, a customer data platform is one of the martech stack’s most powerful revenue generators. %, lift revenues by 5% to 15 %, and increase the efficiency of marketing spend by 10% to 30%.

SUPPLY CHAIN SOLUTIONS

Design

THE NEW GENERATION OF AUTONOMOUS CASE-HANDLING ROBOTS

High-performance, flexible and intelligent, HAIPICK BY SAVOYE robots fit perfectly into complete goods-to-person systems controlled by SAVOYE’s WES, and combining: order picking stations, ‘put-to-light’ led shelving and conveyors. PRODUCTIVITY INCREASE Increase your operators’ productivity by 3-4 times

HIGH AVAILABILITY No single point of failure Products are fully accessible even in case of temporary shutdown

QUICK INSTALLATION On-site deployment in less than 5 weeks

VERY SCALABLE Compatible with different tote sizes Easy addition of robots, shelves and workstations as needed

ÉVOLUTIVITÉ

VERY FLEXIBLE Storage adaptation to all warehouse geometries

Burlington Tower 11th Floor, Office no.1111 &1108 Business Bay Dubai - United Arab Emirates P.O.Box 51188

More info:

marketing-me@savoye.com

www.savoye.com

Cold chain solutions made simple Keeping a seamless cold chain is what makes your business stand out. With specialized individual cold chain solutions for healthcare and pharmaceutical products, Hellmann is proud to offer you temperature and humidity-controlled transportation and storage.

Lets Do Business! Gordon Barnard Chief Commercial Ofﬁcer (MESA) Middle East & South Asia Gordon.Barnard@hellmann.com

Get Connected

GLOBAL SUPPLY CHAIN MAY 2022 ISSUE

Articles inside

ADNOC

Sitecore—Customer Data Platforms

Tom Craig

Swisslog

Maersk Group

Etihad Rail

DHL OpEd

SAVOYE ME— In Expansion Mode

Qatar Airways Cargo Exclusive interview with Guillaume Halleux, Chief Cargo Officer.

Bain & Co

Mercedes Benz Trucks Renowned trucks manufacturer reinforces safety.