Global Supply Chain October 2019 Issue

October 2019 Issue 63

ENHANCING THE BUSINESS OF LOGISTICS

Industrial project cargo poised for big liftoff across mea

Heavy Freight

Almajdouie De Rijke – KSA

Foraying into OMAN

LogiSYM 2019

Delivering on the Digital Promise

Cargo Connect 2019

Countering turbulence

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



Heavy Laden Logistics SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 3795678/3978847 04 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 handbook is accurate and timely, no liability is accepted by them for errors or omissions, however caused.

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

In essence, Project Logistics is defined as the integrated planning, organisation, management, processing and control of the entire flow of materials and goods as well as the associated information flows. Loosely it refers to the movement of bulk, heavy, irregular, amorphous and unwieldy cargo that cannot be containerised or boxed.

Transporting cargo of this nature from its manufacturing or assembly site to its final project destination can pose formidable challenges to logisticians and freight moving companies. It certainly demands special skills, a high degree of professionalism, ingenuity, inventiveness and out-of-the-box thinking.

Technology is playing an increasingly pivotal role in the modern day logistics and supply chain arena. Digitalisation is the key and technology is being very cleverly harnessed to monitor and oversee movement of goods. Customised equipment and vehicles are also the norm and specialist companies are much in demand for these niche services.

For our cover feature, Global Supply Chain conducted an exclusive interview with Moustafa Elbanhawi, Head of Industrial Projects, DHL Global Forwarding, Middle East and Africa (MEA).

It was an interesting encounter as Elbanhawi narrated, inter alia, the intricacies of the business, the latest trends and the opportunities and challenges confronting the industry.

Elsewhere, we examine the recent ‘green and circular economy’ and sustainability initiatives undertaken by UAE’s Zeitoun Green Shipping and Saudi Arabian power company ACWA. We also put the recently concluded two-day LogiSYM 2019 Symposium under the scanner where attendees and delegates increasingly rooted for digitisation and automation. Additionally, the Cargo Connect 2019 Forum to be held alongside the Dubai Airshow in November, will be debating a variety of issues connected to and concerning the regional and international airfreight industry.

Saudi Arabia’s long established Almajdouie De Rijke (MdR) Logistics is the largest logistics services (LSP) provider in the Kingdom with a distinguished performance track record. Now the LSP has breached new frontiers and made forays into the Sultanate with a mega contract with Oman Oil Refineries and Petroleum Industries Company (ORPIC), located close to the Port of Sohar. We also credit MdR with thanks for providing us the front cover image.

I take this opportunity to welcome Ingo Kloepper, our debut contributor, with his insights on how to maintain and even enhance profit margins for companies in this very competitive and demanding logistics business.

Enjoy the read!

Malcolm Dias Editor malcolm@signaturemediame.com

OCTOBER 2019 3

October 2019 Issue 63 October 2019 Issue 63

ENHANCING THE BUSINESS OF LOGISTICS

40 Connect Cargo 2019 To be held in tandem with Dubai Airshow 2019, Cargo Connect will examine issues confronting the airfreight industry.

46 Emirates Cool Chain 06 NEWS 20 Zeitoun Green Shipping goes green Dubai’s Zeitoun Green Shipping is rooting for ‘green’ and made it stand clear at a recent forum in Fujairah, UAE.

21 ACWA advocates sustainability ACWA Power supports transition to a green economy.

22 DHL Global Forwarding DHL Industrial Projects, a unit of DHL Global Forwarding, foresees good growth potential in Middle East and Africa going forward.

Emirates SkyCargo has reported a successful summer for its cool chain.

28 BAHRI signs purchasing order BAHRI has signed a Vessel Purchasing Agreement with Saudi Arabia’s IMI and South Korea’s HHI.

30 World Road Congress 2019 Etihad Rail has become the Premier Sponsor of the World Road Congress 2019 to be held in the UAE Capital.

32 Almajdouie De Rijke (MdR) Logistics

48 Maintaining Profit Margins Our first time contributor Ingo Kloepper makes the case for maintaining profit margins in the logistics and supply chain business.

54 Abu Dhabi Ports Forum Abu Dhabi Ports hosted the 4th Annual Partners Forum to discuss regional maritime issues.

55 Abu Dhabi Ports H-1 2019 Performance

Saudi Arabia’s MdR has won its first overseas contract with Oman’s ORPIC.

Abu Dhabi Ports has reported a phenomenal surge in container volume in H2019-1.

27 Emirates SkyCargo

36 LogiSYM 2019

Emirates SkyCargo has teamed up with Dubai’s Seafood Souq for the supply of fresh salmon from Scotland.

The need to digitalise operations remains a prime priority for logistics and supply chain companies in the region.

56 Materials Handling 2019

4 OCTOBER 2019

Global Supply Chain reviews the just-concluded Materials Handling 2019.

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Etihad Cargo enlarges North America footprint n Etihad Cargo has announced its winter

schedule and network plan will come into effect shortly with new weekly freighter services marking an increased presence in the United States of America and other strategic global cargo markets.

Leading Etihad Cargo’s annual refresh is the enhancement of its freighter services between Abu Dhabi International Airport (AUH) and Columbus, Ohio. A weekly service, now via Europe to Ohio’s Rickenbacker International Airport (LCK), will be supported by an extensive road feeder network between LCK and other US destinations including Atlanta, Chicago, Dallas, Houston and Philadelphia.

Supporting Etihad Cargo’s operations across North America and reinforcing its commitment to the market, Christel Alaimo has assumed the role of Area Manager–North America with immediate effect. She joins Etihad Cargo from Flexport, where she held the role of Senior Manager.

Meanwhile, Etihad Cargo’s updated

freighter network will also introduce a weekly Boeing 777 Freighter service into Johannesburg’s Tambo International Airport (JNB) from October 5, which establishes the South African city as a seasonal African gateway ‘hub’ for trade flows of perishables and other goods to and from Europe and Asia.

Following the network refresh, Etihad Cargo anticipates upscaled demand for its

FreshForward service – a dedicated product for perishables movement, including vegetables and flowers from Africa and Asia, as well as increased connectivity for garment flows between Asia, Europe and the US. Etihad Cargo continues to cement its standing as a major international air cargo player, leveraging Abu Dhabi’s strategic position at the centre of the world’s busiest trade lanes.

Cebu Pacific consolidates digital transformation at SmartKargo n Cebu Pacific Air, the largest Philippine carrier has renewed its contract with technology solutions company QuantumID Technologies to ramp up the end-to-end platform SmartKargo for its shipment service CEB Cargo.

The partnership will continue the cloudbased real-time management of CEB’s air cargo business using the advanced SmartKargo operating system. SmartKargo is a platform that helps CEB Cargo manage the business.

SmartKargo’s innovative Software as a Service (SaaS) solution empowers customers with real-time shipment information from booking to arrival destination, and advanced tools such as mobile apps that streamline customer experience via kiosks at the warehouse.

The cloud-based solutions enable customers to track their cargo through providing real-time information about their shipment.

“The SmartKargo Cloud solution has 6 OCTOBER 2019

equipped CEB Cargo with the advanced digital tools to run our business. We are very pleased to continue the partnership and look forward to sustained growth that SmartKargo has enabled,”remarked Alex Reyes, Cebu Pacific Vice President, Commercial.

SmartKargo capabilities allow paperless Airway Bills (e-AWBs) and ease of booking for CEB Cargo agents and customers by allowing single-screen data entries. In

addition, the solution provides simplified pricing and rate-making capabilities; realtime capacity management; user-configurable business Intelligence and reporting; and integrated cargo revenue accounting.

The platform supports streamlined participation with partners doing E-commerce, facilitating B2B or B2C doorto-door operations via mobile applications as well as third party integration.

IATA renews Turkish Cargo’s CEIV Pharma Certificate

n Turkish Cargo has extended the validity period of its IATA CEIV (Center of Excellence for Independent Validators) Pharma Certificate until 2022, proving the carrier’s success in all processes throughout the air transportation of medicinal products.

The certifications, obtained initially in 2016, had to be renewed in order to extend its validity after the three year period. The renewals were planned with the Turkish Airlines Aviation Academy and completed successfully following the audits by the IATA, resulting in extension of the validity periods of these certificates for the carrier and the Ataturk Airport (ISL) station.

Turkish Cargo is committed to the integrity and confirming with all required criteria of all cold-chain products throughout the transportation process of the critical medicinal products such as medicines, vaccines, biotechnological products, diagnosis samples, sensitive

medical devices, organs, tissues, the carrier said in a press communiqué.

Implementing all handling procedures with dedicated teams working in harmony at its special cargo storage facility of 3,500sqm in all its accomplished special cargo operations, Turkish Cargo makes use of active temperaturecontrolled Envirotainer and CSafe containers, the electrical airconditioning container Opticooler, Thermal Dolly and disposable thermal sheets equipped with thermal isolation features, minimizing any and all risks in highly-critical medicinal products.

Making use of special products designed exclusively for consignments including medicines and medical products and introducing its superior shipment quality to the giant global pharmaceutical companies, Turkish Cargo provides air cargo service to 126 countries thanks to its extensive flight network.

Emirates SkyCargo completes five years of operations to Belgium and Norway

n Medicines from Belgium and fresh salmon from Norway are some of the commodities transported by Emirates SkyCargo Since the start of its services to Belgium and Norway in September 2014, the freight division of Emirates has flown over 235,000 tonnes of cargo to and from these countries, stimulating trade and helping local businesses reach global markets.

Belgium: Emirates SkyCargo has facilitated over 60,000 tonnes of exports from Belgium over the last five years. Soon after the launch of passenger flight services to Brussels, the air cargo carrier also started scheduled freighter operations to the city in 2015.

“Currently our customers in and around Brussels can access up to 20 tonnes of belly hold cargo capacity on Emirates’ twice daily passenger flights operated on our wide-body Boeing 777-300ER aircraft,” said Bob Vandamme, Cargo Manager Belgium.

Norway: Close to 62,000 tonnes of Norwegian salmon have made their way from Oslo to customers across the Middle East and Asia on Emirates SkyCargo.

“Our freighter aircraft have also helped transport other outsized items including aircraft engines, large ship propellers weighing more than 10 tonnes apiece, horses and relief cargo for humanitarian missions from Oslo,” commented Mona Kongsvik, Cargo Manager Norway, Emirates SkyCargo.

In total, Emirates SkyCargo has transported over 105,000 tonnes of cargo to and from Norway since the start of its operations in the country.

OCTOBER 2019 7

Aramex partners with AWS to enable the company’s digital transformation n Aramex has announced that it will migrate its entire technology infrastructure from the company’s on-premises data centers to Amazon Web Services (AWS), in order to increase agility, speed of innovation, and security.

In its first phase of cloud adoption, Aramex h as built a data lake, which is hosting a big data infrastructure that leverages machine learning (ML) and artificial intelligence (AI) capabilities to further enhance the customer experience by transforming the last mile delivery.

Taking advantage of Amazon SageMaker, a fully managed machine learning service for building, training, and deploying machine learning models, Aramex’s in-house data science team built a data analytics and machine-learning platform on AWS. Utilizing this platform, Aramex is improving delivery accuracy and solving for the lack of proper physical addresses in the region by developing intelligent address prediction models that convert descriptive

Mohammed Sleeq addresses into geo locations.

“We are focused on enhancing the customer experience and solving industry challenges primarily around address management, volatility in volumes and last mile capacity. We are now starting the full migration of our IT infrastructure to AWS and are excited to realize the full benefits of the cloud,” said Mohammed Sleeq, Chief Digital Officer, Aramex.

“Combining this with our own experience of using ML technology for the transport and logistics of packages with

Amazon.com, we look forward to helping Aramex leverage advanced and secure AWS technologies to further improve the customer service they deliver,” commented Andy Isherwood, Managing Director, Amazon Web Services EMEA. Aramex’s new, 60,000-square meter fulfillment center in Dubai features new technologies including a ‘Pick to Light’ system, which uses light-directed picking technology to improve accuracy and efficiency, and an automated conveyer belt system.

DP World UAE Region and JAFZA gain Indian investors interest n DP World, UAE Region and Jebel Ali Free Zone (JAFZA) attracted keen interest from Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs) at the 16th CII Global SME Business Summit, recently held in New Delhi.

As a part of the India–UAE Bridge initiative, the team engaged with Indian SME and MSME companies looking to expand their business outside India and presented a range of strategic solutions, including plug-and-play platforms, endto-end supply chain solutions, value-added services, and an investment platform.

Supporting the initiative is the first Indian Traders’ Incubation Centre for SMEs and MSMEs anywhere in the world which aims, to nurture them for the first 3 years through the extensive experience and expertise 8 OCTOBER 2019

of DP World, UAE Region and JAFZA. The Incubation Centre is a custom-made platform for talented Indian entrepreneurs seeking business collaboration with potential partners in the Middle East, Africa, South Asia and Central Asia.

“We strongly believe that the IndiaUAE Bridge is an initiative to support this vision, and DP World, UAE Region is keen to sustain and build on our excellent partnership,” remarked Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO, JAFZA. The Global SME Business Summit exchanged knowledge on assessing the export potential of products and services, identifying suitable markets, and developing strategies to penetrate new areas through trade associations.

The India-UAE Bridge initiative is

Abdulla Bin Damithan, Chief Commercial Officer, DP World, UAE Region speaking at the 16th CII Global SME Business Summit. helping build synergies between DP World, UAE Region and India’s business sectors.

The ports and logistics capabilities in both countries ensure integrated supply chain solutions to businesses through unique end-to-end solutions.

Swisslog accomplishes major warehousing project for Axiom n Swisslog announced that it had completed a major project for the Middle East’s leading telecom distributor for handsets and accessories, Axiom Telecom (Axiom), for the design and implementation of a new Dubai-based automated warehouse facility with AutoStore.

The Swisslog AutoStore solution deployed was designed to fulfill Axiom’s requirement of 25,000 deliveries and consists of nine robots and five picking stations, providing storage space for 12,500 bins as well as ten gravity shipping lanes for efficient order consolidation.

Swisslog automation solutions enable Axiom Telecom to reduce total cost ownership, fulfill a greater number of deliveries and adapt to seasonal peaks.

Known as the region’s largest retailer and distributor, Axiom has more than 5,000 points of sale and 2,000 employees across the United Arab Emirates and Saudi Arabia.

With a high volume of daily orders delivered across multiple channels and a demanding customer base, Axiom is expected to provide speed, accuracy, and a competitive service to ensure its future

in the face of increased competition and is utilising the power of logistics automation to be able to do so.

Swisslog has announced this project during its participation in Materials Handling Middle East (MHME), the region’s dedicated trade show for warehousing, intralogistics and supply

chain solutions held during the first week of September 2019. Reports indicate that industry turnover is expected to reach US$ 66.3bn by the end of 2020.

Swisslog automation solutions enable Axiom Telecom to reduce total cost ownership, fulfill a greater number of deliveries and adapt to seasonal peaks.

LogiPoint wins at Seatrade Maritime Supply Chain & Logistics Awards 2019 n LogiPoint, the largest logistics services provider of its kind in Saudi Arabia, has been awarded the annual Seatrade Maritime Supply Chain & Logistics Award 2019 for the Middle East, Indian subcontinent and Africa during a special ceremony recently held in Dubai to celebrate and reward distinguished regional shipping, port and maritime logistics operators.

LogiPoint won the award for its prolonged commitment to provide high quality and advanced integrated logistics solutions to its clients and for making considerable efforts to introduce international concepts towards logistics efficiency thereby contributing to Saudi Arabia’s Vision 2030 and the National Industrial Development and Logistics Program (NDLIP).

“This award is a testimony to and vindicates our ongoing efforts to make our operations streamlined and effective. At LogiPoint we provide the maximum ease of doing business via our up-to-date facilities, Bonded and Re-Export Zone at the Jeddah Islamic Port, advanced warehousing systems and customised value-added solutions,” affirmed Farooq Shaikh, CEO, LogiPoint.

LogiPoint, a subsidiary of Saudi Industrial Services Company (SISCO), a Saudi Joint Stock company listed on the Saudi Tadawul Exchange, is committed to expanding its current investment base by developing both green-field and brown-field integrated logistics facilities across Saudi Arabia and thereby attracting international investors into the Kingdom.

OCTOBER 2019 9

Grandweld successfully concludes KOC early deliveries n Grandweld Shipyards, the UAE-based shipbuilding, ship repair, and engineering solutions specialists, has successfully completed the construction and delivery of 10 boats for one of Kuwait Petroleum Corporation’s (KPC) subsidiaries, Kuwait Oil Company (KOC).

Following an agreement in May 2017, Grandweld constructed a grand total of 6 Pilot boats and 4 Crew transport boats for KOC. The completion of this contract marks a significant milestone for Grandweld, as the shipbuilding company was able to construct and deliver the majority of agreed upon deliverables ahead of time.

Upon the commencement of the construction phase in September 2018, Grandweld proceeded to deliver the first of 10 boats in December 2018, and the final boat in July. Grandweld also managed to deliver multiple customized vessels on their specified timelines with outstanding performance in terms of high speed, sea

keeping and passenger safety and comfort.

“Each of the delivered boats was designed to exceed the needs of KOC, and similarly built in accordance with Lloyd’s Register latest technology for classification standards to provide the highest operational efficiency and safety,” affirmed Jamal Abki, General Manager of Grandweld Shipyards.

“These boats will offer an added dimension to our operations as we continually pursue excellence in all that we do. We are extremely appreciative of Grandweld’s commitment to meeting the agreed upon deadlines,” remarked Sami Al-Sawagh, Marine Operations Manager, KOC Group.

Grundfos to explore energy efficiency in pumping systems for RAK Municipality n Ras Al Khaimah (RAK) Municipality has

Grundfos and RAK Municipality officials at the MoU signing ceremony.

10 OCTOBER 2019

selected Danish water and climate solutions Grundfos to provide an audit of HVAC, irrigation, water supply and disinfection pumping systems across 50 buildings and operational facilities, including large-scale sewage plants.

A Memorandum of Understanding (MoU) was signed today to begin the audit, which is expected to take up to seven weeks. Grundfos will also conduct systems’ certification and maintenance training for Ras Al Khaimah Government’s building managers and supervisors.

“The audit will help us explore further ways to reduce energy costs, by working with Grundfos’ expert team on pumping systems, which drive a significant part of our energy consumption”, said Munther Mohammed Bin Shekar, Director General, Ras Al Khaimah Municipality.

The audit will be overseen by the Municipality’s Energy Efficiency and

Renewables Administration (Reem) which is coordinating the implementation of the RAK Energy Efficiency and Renewable Energy Strategy 2040, established under the patronage of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah.

The strategy targets 30% energy savings, 20% water savings and 20% generation from renewable energy sources by 2040 and comprises a program to retrofit approximately 3,000 buildings over the two decades.

“We are both prominent leaders in our specific industries with a joint vision on sustainability and well-being of the planet,” commented Kostas Poulopoulos, Grundfos Area Managing Director, Gulf, Levant and Pakistan.

The MoU signing follows Grundfos’ recent launch of the free ‘Energy Check’ to organisations in the UAE to help root out inefficient equipment and promote water conservation.

Dubai Customs Director General inspects CDM and Control Room n Ahmed Mahboob Musabih, Director General of Dubai Customs, made a recent tour to the Customs Declaration Management (CDM) and the Control Room at Dubai Customs headquarters.

In the tour, Director of Dubai Customs was accompanied by Juma Al Ghaith, Executive Director of Clients Management Division; Shuaib Al Suwaidi, Director of Customs Intelligence Department; Eman Badr Al Suwaidy, Director of Customs Declarations Management; Khalil Saqer Bin Gharib, Director, Corporate Communication Department; Ahmed Al Khuroosi, Director of Tariff and Origin Department; Farida Fadel, Director of Valuation Department, alongside a number of heads of departments and customs centres.

“CDM employees work around the clock to process all declarations received through the risk engine and oversee customs clearance transactions on Mirsal electronic system. Around 98% of customs declarations are completed and finalized

The Dubai Customs Director General conducts an inspection tour. in less than two hours,” said Eman Badr Al Suwaidi.

Customs declarations grew by 11% to reach a total of 4.1 million declarations in the first half this year, compared to 3.7 million in the same period last year, Al Suwaidy added.

“There are multiple customs security

programmes in place that work harmoniously to cover all customs operations, including inspections and inquiries about containers, tracking suspicious shipments and vessels, receiving reports and complaints, and disseminating security alerts to different ports of entry and border exits,” he further explained.

Truebell launches new distribution centre in Dubai n UAE-headquartered Truebell, a leading GCC importer of fast-moving consumer goods (FMCG), has launched a new and improved delivery platform at its advanced distribution centre in Dubai Industrial Park (DIP).

The new delivery process, which has already been rolled out at over 400 stores across the country including all Zoom stores in the UAE, will generate an improved delivery accuracy of 99.97% as well as maximising efficiency and productivity at the GCC importer’s distribution centre.

“Earlier this year we have tested the enhanced delivery system at 189 Zoom stores and an additional 100 retail stores across the UAE,” noted Bhushant J. Gandhi, Divisional Manager, Retail & Food Service, Truebell.

“Our in-depth analysis into the process found, turnaround times at dock were reduced by around two thirds, we were able to make more deliveries during the same journey due to greater efficiency, there was no mismatch of items, 100% batch compliance, no damage to products during delivery, items were stored at the correct specified temperature on all deliveries and no products were returned,” he added.

The 25,000sqm purpose-built facility which commenced operations in October 2018, boasts cutting-edge technology in warehouse and fleet management systems including more than 20 specialised material-handling equipment units, 21 multi-purpose loading bays and has the capacity to receive over 7,000 containers annually. It also houses a test kitchen and bakery stocked with

equipment suitable for creating new products.

Comprising multi-temperature storage, the fulfillment centre can accommodate up to 21,000 storage locations, comprising of frozen, chilled and dry food as well as non-food retail items.

The centre also boasts a dedicated area for third-party logistics (3PL), with this service expected to be fully operational by the end of 2019.

OCTOBER 2019 11

Production ramp-up at EGA’s new Al Taweelah alumina refinery on track n Emirates Global Aluminium, the largest industrial company in the United Arab Emirates, recently announced a milestone at its new Al Taweelah alumina refinery in Abu Dhabi, with 600,000 tonnes of alumina produced since the company began operations at the new refinery in April.

Al Taweelah alumina refinery is expected to produce more than one million tonnes of alumina in total by the end of 2019. During August, average daily production of alumina was 88 per cent of Al Taweelah alumina refinery’s nameplate capacity.

Once fully-ramped up, production at Al Taweelah alumina refinery is expected to be some two million tonnes of alumina per year, enough to meet 40% of EGA’s alumina needs.

“Ramping up production at a new alumina refinery is a complex and challenging task, and we have a world-class team operating EGA’s alumina refinery, and they are making great progress on this journey,” said Abdulla Kalban, Managing

Director and Chief Executive Officer, EGA. Alumina refineries convert bauxite ore into alumina, the feedstock for aluminium smelters. EGA is importing bauxite ore to process at US$ 3.3bn Al Taweelah alumina refinery from the Republic of Guinea.

EGA’s aluminium is the largest madein-the UAE export after oil and gas. In 2018, EGA produced more than 2.6 million tonnes of cast metal. EGA is the only UAE producer and makes the UAE the fifth largest aluminium-producing nation in the world.

DMCA holds first annual meeting of partners to discuss navigational aids n In recognition of its partners’ support for maintaining smooth and safe maritime traffic in Dubai, the Dubai Maritime City Authority (DMCA) recently organized an annual meeting of partners to discuss navigational aids.

The meeting highlighted the importance of unifying efforts to ensure increased usage of navigational aids in accordance with the international agreements.

Amer Ali, Executive Director, DMCA, praised maritime entities concerns in Dubai for maintaining navigational aids in compliance with local laws and global conventions. He reiterated DMCA’s commitment to sustain smooth and efficient maritime traffic management in Dubai.

The Authority has already put in place maritime navigation lights and the Automatic Identification System (AIS) to provide accurate navigational assistance give approval for ships to sail, 12 OCTOBER 2019

dock, and move to and from new ports, which enhance navigational safety and operational efficiency in Dubai waters.

“Maritime traffic regulation in Dubai’s new projects is in line with DMCA’s efforts to implement the best practices for safe maritime navigation,” said Mohammed Khalifa Al Huraiz, Director of Waterway Control, DMCA. “We aim to ensure safe navigation by using the latest technological innovations and advanced information and communication systems to avoid collision of ships and assist them in obtaining the necessary information about the location, direction, speed, world time, and registration number from the International Maritime Organisation,” he added.

The navigational aids in Dubai include the basic and side buoys, safe water floats, and private and hazardous area buoys, among others.

Three60 Communities introduce Circ e-scooters to Abu Dhabi “We use purpose-built e-scooters tailored to the subsidiary of Eltizam Asset region and invest in the Management Group and necessary operational one of the leading regional infrastructure in order to providers of management provide the highest service services to premium residential and commercial communities, has announced its partnership with micro-mobility company Circ to provide e-scooters for residents of Reem Village, Marina Square and City of Lights in Abu Dhabi.

This unique partnership aims to support Abu Dhabi’s Environment Vision 2030, which prioritizes mitigating the impact of climate change and ensuring safe and Chris Roberts healthy living conditions standards and the most optimal through the provision of experience for users,” noted clean air and reduced noise Bader Al Kalooti, Co-Founder pollution. and COO, Circ MENA. “Circ’s electric scooters Three60 Communities offer residents an enjoyable, provides comprehensive OAM convenient and eco-friendly (Operations, Administration micro transport solution; they and Maintenance) and PM are also the fastest and most (Project Management) services affordable transport option to master communities, over short distances,” affirmed residential towers, Chris Roberts, CEO, Eltizam commercial towers, mixed Asset Management. use developments and villa “This agreement represents communities across the UAE the first stage in maximizing and the Sultanate of Oman. the full potential of the Circ is a leading microinitiative and we are delighted mobility company focused on to be working with Three60 delivering high-quality rides Communities as they will with custom-made light electric help us achieve our ambition scooters. Circ was created in to facilitate all micro mobility 2018 by a team with a shared requirements in the country,” vision of cleaner, safer, betterobserved Jaideep Dhanoa, Coconnected journeys.

Founder and CEO, Circ MENA.

n Three60 Communities, a

Retail logistics industry creating investment opportunities in Dubai n Dubai’s retail sector is undergoing a major transformation with the rise of e-commerce and evolving customer preferences shaping a new ‘retail logistics’ industry. A wave of innovative new real estate solutions in the logistics sector are creating alternative investment opportunities, reveals JLL’s new report, launched at Cityscape Global 2019.

As a global leader in both retail and logistics, Dubai is well placed to leverage the retail industry’s rapidly changing dynamics including rising e-commerce, new disruptive technologies and evolving consumer tastes.

To take full advantage of these trends, retailers are addressing the challenge of fulfilling increasing demand for online delivery while balancing an oversupply of traditional retail space.

The answer is neither brick-and-mortar nor e-commerce but a combination of both into ‘omni-channel retailing’ which allows retailers to optimize their real estate portfolios and boost their performance.

“Many retailers are finding themselves with Craig Plumb excess stock within stores but a shortage of quality warehousing. We estimate that at least 50% of recent demand for warehouse space across the UAE comes from the retail sector,” said Craig Plumb, Head of Research, JLL MENA. The boom of online retail is increasing demand for warehousing space and logistics solutions that meet today’s fast paced customer demands. Retailers are now investing across the full supply chain, not just traditional physical spaces.

“Technology will be a game changer in supporting omnichannel servicing in the emerging retail logistics sector. Private and public sector industry players will have to adopt and fast track a number of new innovations in the supply chain such as automated delivery, tech-enabled personalization, digitization of addresses and investing in pick up locations,”remarked Thierry Delvaux, CEO, JLL MEA. According to JLL, increased private sector participation will be a key driver for success of the retail logistics industry.

Greater flexibility allowing real estate players to build customized warehouse facilities is expected to attract global retail chains and optimize returns for traditional retailers entering the online delivery space.

OCTOBER 2019 13

UPS expands express services to the Middle East n UPS recently announced the

Blockchain campus to be established in District 2020 n Dubai’s District 2020 has announced its collaboration with Shanghai-based Atlas Capital Holding as the latest tenant to join its development project. The partnership was confirmed by Marjan Faraidooni, Chief Pavilions and Exhibitions Officer at Expo 2020 Dubai, during an address at Cityscape Global.

Atlas Capital is the latest global company to announce it will be laying foundations at District 2020, Dubai’s innovation and mixed-use ecosystem development, alongside Siemens and Accenture.

“We are delighted to collaborate with Atlas Capital and welcome them to our diverse and growing ecosystem of global tenants at District 2020. The announcement is another testament to our vision of creating a holistic, innovation-focused environment for companies of different sizes and across different industries and technologies to collaborate and maximise synergies, towards mutual gain,” remarked Faraidooni.

The investment and incubation company will build a blockchain campus of more than 15,000 sqm at District 2020, further supporting District 2020’s aims of becoming a leading ecosystem for blockchain and other future technologies.

The campus will help to attract a range of businesses looking to adopt the latest advanced blockchain technologies, providing them with a collaborative space, and access to globalstandard expertise.

“Committing to District 2020 is an exciting new chapter for Atlas Capital. Our vision is to support Dubai in its goal of developing into a long-term hub for innovation by creating a Blockchain Campus of the future,” commented Rain Huan, Co-Founder and Managing Partner, Atlas Capital.

14 OCTOBER 2019

addition of three new countries served by UPS Worldwide Express and broadened its reach across 76 cities in the Indian Subcontinent, Middle East, and Africa (ISMEA).

The service has now been expanded to Algeria, Reunion and Namibia. As part of UPS’s international suite of shipping services that guarantees timeand day-definite delivery for urgent shippers, UPS has also enhanced its services with the addition of UPS Worldwide Express Freight Midday export from Nigeria and Oman.

“UPS’s goal with these investments in our smart global logistics network is to make the global marketplace more accessible for our customers. This latest expansion will help businesses of all sizes in the Middle East, Africa and India to cross borders and international customers capture growth opportunities in this dynamic region,” said Rami Suleiman, president for UPS ISMEA. This sweeping expansion

of services comes as part of the company’s effort to continuously better connect businesses to its smart global logistics network, demonstrating its strategic focus on international highgrowth markets and as well its role as Official Logistics Partner of Expo 2020.

With the addition of 3 new markets, UPS Worldwide Express is now available in 157 countries. UPS also grew its express services footprint within key existing markets by adding new postal codes in 76 cities in Bahrain, Egypt, India, Mauritius, Morocco, Nigeria, Pakistan, Reunion, South Africa, Sri Lanka, and Tunisia.

In addition, UPS customers can now take advantage of robust customs brokerage services in these newly expanded areas.

As one of the world’s largest customs brokers, UPS helps customers navigate changing regulations, maintain compliance and keep shipments moving smoothly through customs and across borders.

Mitsubishi L200 One-Ton Pickup Truck unveiled in Saudi Arabia n Alesayi Motor Company, the exclusive distributor for Mitsubishi vehicles in the Kingdom of Saudi Arabia, has just presented the new L200 one-ton pick-up truck, with its wide changes and distinct aesthetic touch.

The updated version of the sixthgeneration L200 was launched to mark the car manufacturer’s 40th anniversary for a vehicle in this category.

Bandar Bin Saeed Alesayi, CEO, Alesayi Motors Company, affirmed that Mitsubishi has introduced extensive changes to the new pick-up truck, including its new design, along with enhancing the safety specifications to strengthen its position in the market and give it broader competitiveness.

He explained that the changes made to the vehicle with its new look and unique nature included a radical change in the design of the vehicle’s front end, in terms of the headlights and the front and rear shock barriers; along with the attractive development of the taillights.

“As for the technical and technological aspect and the increase in the vehicle’s security and safety factors, the vehicle included upgrades, such as the upgrade to larger disc brakes and rear shock dampers

to add more quality and safety,” he added.

This version of the L200 pick-up is available in two editions; single-cab trucks and double-cab trucks.

The L200 is provided with a developed four-wheel drive system, as well as different modes of driving, including driving on the sand, gravel and rocks; which aim to regulate the power of the engine, the gearshift and the brakes to reduce wheel skidding.

Mitsubishi vehicles have been present in Saudi Arabia for more than five decades.

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OCTOBER 2019 15

Masteel goes operational in JAFZA n Global Chinese Steel Manufacturer to use DP World’s integrated hub to reach MENA Markets The leading Chinese steel manufacturer, Maanshan Iron and Steel Co. Ltd (Masteel), has formally established Masteel Middle East FZE in Jebel Ali Free Zone (Jafza).

Qian Haifan, General Manager of Maanshan Iron and Steel Co. Ltd (Masteel), and Ahmad Al Haddad, Chief Operating Officer, Parks and Zones, DP World, UAE Region, jointly inaugurated the facility.

Masteel Middle East FZE (Masteel ME) is a subsidiary wholly owned by Masteel, mainly engaged in the export of all kinds of steel products of Masteel in the Middle East and North Africa.

Recognising the dynamic characteristics of the Middle East market, and combining the advantages of its diverse high quality products, Masteel ME is expanding the export market mainly for hot rolled steel, section steel and cold rolled steel, and PPGI (pre-painted galvanised iron) and GI

(galvanised iron) products, as well as the shafts market.

“The inauguration of this new facility is a testament to Jafza’s value proposition as a leading driver of economic diversification,” commented Mohammed Al Muallem, CEO and Managing Director, DP World, UAE

Region and CEO, Jafza.

“In recent years by taking inspiration from the Belt and Road initiative and Globalisation of China, Masteel has focused on promoting the progress of its international operations,” remarked Qian Haifan, General Manager, Masteel.

Careem unveils new leadership team restructured to meet expansion goals to kick into high gear to realise our new Vision 2022 and the aspiration to become leadership lineup as the company the region’s everyday Super App,” noted implements its 2022 vision to become the Mudassir Sheikha, CEO, in an emailed region’s everyday Super App. statement to his colleagues.

Experienced Managing Directors will lead Careem is doubling down on customer, expanded geographies and drive growth captain and colleague experiences, product across new products and services in their delivery and profitability. Over the next two respective markets. quarters, the business will begin to provide The list includes Ibrahim Manna, a broader range of services to customers Managing Director, who will oversee such as financial services and expanding the Careem’s developing markets in Iraq, on-demand delivery use cases, the company Levant and Turkey and expanded operations revealed. in Saudi Arabia and Wael Abou El Ella, Careem’s new leadership structure is Managing Director, Egypt, will also lead set up to drive this growth through better Morocco with new market launches Bassel Al Nahlaoui knowledge sharing, efficient collaboration planned across the North Africa region. and faster decision making.

Bassel Al Nahlaoui, Managing Director Gulf, has his role Operating across 14 countries in the greater Middle East, Careem expanded to lead Pakistan and Co-founder Abdulla Elyas becomes currently offers ride-hailing, deliveries and payments to more Chairman of the Saudi Arabia operations. than 33 million customers and has tech hubs in Berlin, Dubai and “It is important for us to keep evolving our leadership structures Pakistan. to best align with opportunities and realities. This evolution had

n Careem has announced a new, senior

16 OCTOBER 2019

Three top new executive leadership appointments announced at Emirates members of the executive leadership team to drive improved performance executive leadership appointments across the business. for its operational, commercial and In his role as Chief Commercial international affairs functions.

Officer (CCO), Adnan Kazim is Adel Al Redha is appointed Chief responsible for worldwide Commercial Operating Officer, Adnan Kazim is Operations, E-commerce, the Emirates Chief Commercial Officer and Sheikh Skywards loyalty programme and Majid Al Mualla is Divisional Senior Emirates SkyCargo. Kazim will continue Vice President, International Affairs. to lead the airline’s Strategic Planning “These roles are strategically and Revenue Optimisation teams, important to growing our customer which are critical functions that support base and developing our commercial the airline’s commercial success. strategies, delivering the best In his new role, Sheikh Majid will experiences across customer drive the airline’s government, industry, touchpoints, and progressing our Adel Al Redha public policy, regulatory, environment business objectives,” affirmed HH and international affairs agenda. He will also lead teams Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief that represent Emirates in government negotiations and air Executive Emirates Airline and Group. services talks, as well as various aviation industry bodies of Al Redha will oversee operational efficiency and which Emirates is a member. effectiveness across the airline, and work closely with other

n Emirates has announced new

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Web: www.tranzone.ae OCTOBER 2019 17

Dubai-based startup launches AI-powered device to track school bus safety n Almas Robotics, a Dubai-based technology and engineering company, has launched its new ‘Safe Bus’ smart device which uses artificial intelligence technology to track passengers on school buses with the aim of improving safety standards in the UAE. The device is connected to multiple sensors installed on the bus door that monitor passenger movement and record the number of passengers entering and exiting the vehicle. The Safe Bus device is automatically activated as soon as the bus engine is switched on and provides a reading within one second.

Safe Bus was created by Almas Robotics Founder and CEO Eng. Fahim Almas, an Emirati mechatronics and aviation engineer. Almas is a member of the Hamdan Innovation Incubator, part of the Mohammed Bin Rashid Establishment for SME Development (Dubai SME), and Dubai Startup Hub, the

entrepreneurship arm of Dubai Chamber of Commerce and Industry.

Once a bus driver attempts to turn off the engine, the device will complete a check to determine if the number of exiting passengers matches the number of those who entered originally. If the number of passengers on board is higher than zero, the device will instantly sound an alarm and send an SMS notification to the driver and transportation company.

“It is solutions like these that will lead Dubai to achieve its ambitious vision of becoming one of the world’s smartest cities in the near future,” asserted Almas.

Earlier this year, Almas Robotics launched its M-First and M-Second Educational Robots, a unique series of multi-purpose 3D printed robotic arms designed to lift light objects and teach children about the basics of robotics.

SPS Automation ME 2019 inaugurated in Dubai n Eng. Dawood Abdulrahman Al Hajiri, Director General, Dubai Municipality, recently opened the second edition of SPS Automation Middle East 2019.

The two-day event, at the Dubai World Trade Centre (DWTC), was co-located with Materials Handling Middle East, and opened to professionals from the logistics, materials handling, automation and E-commerce sectors.

Al Hajiri was accompanied by Simon Mellor, CEO, Messe Frankfurt Middle East, on a tour of the exhibition premises, meeting with prominent exhibitors such as Bsoche Rexroth, Beckhoff Automation, Sick, and Pilz.

“As the region’s only showcase for innovative solutions for the automation industry, it has been encouraging to see the positive turn out from colleagues and like-minded professionals,” said Mellor.

“The industry is turning a corner as a flurry of new technologies is poised to shape how business is done,” he added.

Over the runtime of SPS Automation on 3 and 4 September, exhibitors and speakers discussed the region’s readiness for the 4th industrial revolution, and saw the 18 OCTOBER 2019

unveiling of automation, IoT and artificial intelligence (AI) technologies that could improve the region’s global relevance and competitiveness.

Hosted on the show floor, the SPS Automation Middle East Conference delivered 28 sessions delivered from more than 30 expert speakers. Delegates heard speakers from industry leaders Obeikan, GE Digital, Aranca and AECOM. SPS Automation Middle East was part of the SPS (Smart Production Solutions)

worldwide network of events. The brand’s flagship event takes place in Nuremburg, Germany from 26 – 28 November 2019.

Media were addressed at a round-table on the inaugural by representatives from Messago Messe Frankfurt, the organisers of SPS in Nuremburg, which in 2019 will feature 1,650 exhibitors from 45 countries spanning 136,000sqm, and is expected to attract more than 67,000 visitors from across the globe, including 500 from the Middle East region.

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Green Economy

Zaitun Green Shipping at The Gulf Intellgence Forum 2019

Zaitoun Green Shipping underscores the significance of shipbuilding efficiency Eng. Mohammed Zaitoun, CEO, Zaitoun Green Shipping

T

he Dubai-based Zaitoun Green Shipping recently participated at the 9th edition of the two day ‘Gulf Intelligence Energy Market Forum’ held end September 2019 in Fujairah,

UAE. The forum centred on the theme of ‘IMO2020- Megatrends and the Energy Transition’; where key industry players and decision makers shared their insights on the topic during informative sessions and roundtables.

“We are moving rapidly towards the IMO2020 and the shipping industry needs to keep up its pace to align itself with the new regulations and the future. There is a call for change that needs to be addressed in the industry; more ship owners and decision makers need to diversify their business models to stay ahead of the curve, maintain their sustainable growth and

20 OCTOBER 2019

At a recent forum in Fujairah, UAE, the company highlighted its efforts to improve the vessels’ efficiency to align with the new IMO 2020 compliance requirements and beyond preserve their continuity in the market,” remarked Eng.Mohammed Zaitoun, CEO, Zaitoun Green Shipping and President of the International Maritime Consortium.

Decreasing vessels footprint for a green future According to market research, LSFO (Low Sulphur Fuel Oil) is priced around 200-300 US dollars per barrel. This is an alarming indicator for ship owners, and calls for immediate actions. Keeping sustainable standards in the shipbuilding process is a key differentiator when it comes to achieving greater efficiency and maximizing performance on large merchant vessels.

“Ships are responsible for more than 18 percent of some air pollutants. Therefore, there is need to change the ships that are being built to be more sustainable and proactive towards environmental

compliance. According to a report from the European Union, international shipping contributes to 2.5% of global greenhouse gas emissions annually, and it is predicted to rise between 50% and 250% by 2050.”

Zaitoun confirmed.

Zaitoun Green Shipping has initiated innovative sustainable and green initiative through the International Maritime Consortium to ensure the efficiency of ships and create a new business model for the market. The company contributed to the construction of the world’s greenest and most efficient Ultra Large Container Vessels.

The efficient and qualified vessels went on to produce countless TEU (Twenty-foot Equivalent Unit) records and resulted in 60% lower CO2 output per TEU compared to larger container vessels existing in the market.

Sustainability

WORLD GREEN ECONOMY ORGANIZATION (WGEO) STRATEGIC DIRECTION (2018 - 2022) KEY OBJECTIVES:

STAKE HOLDERS:

Real Results

STATES

CITIES

Thought Leadership Capacity Building

INTERNATIONAL ORGANIZATIONS

PRIVATE SECTOR

FINANCIAL INSTITUTIONS

ACADEMIA & CIVIL SOCIETY

YOUTH

REGIONS:

SECTORS:

NM

Water

Europe

Asia

C IE

RO

TY

E N VI

Energy

E

SO

NT

ECONO MY

Infrastructure

Africa

TOOLS: World Green Economy Summit Global Green Economy Report Green Economy Digital Platform

PLATFORMS:

Sustainable Development Smary and Sustainable Cities Innovation Green Finance Green Institutions Intellectual Leadership Youth Leadership

ACWA Power promotes transition to a green economy WGEO’s Thematic Programs for 2018-2022

By focusing on offering an innovative mechanism to deliver on green economy global priorities

HE Saeed Mohammed Al Tayer

and commitments, WGEO provides a forum from which its wide range of stakeholders can work collaboratively in the following five thematic programs:

A

1. Green Economy Advocacy Support through Partnership and Outreach

transition to a greener future,” remarked CWA Power, a developer, investor, Within the domain of green economy advocacy, a number HE Saeed Mohammed Al Tayer, Chairman, co-owner and operator of a portfolio of systematic initiatives are to be advanced in supporting WGEO. of power generation, renewable Since in 2016, energy and desalinated the water expanding membership of its theestablishment organization across sevenWGEO been working with businesses production plants worldwide, WGEOhas partnership has Platforms.

These initiatives include and private organizations to identify and stepped up its mission to play a key role production of the annual World Green Economy Report, as progress key areas that would drive in strengthening efforts towards achieving activities for the green economy such sustainable development around the world as unlocking green capital, facilitating as it is one of the founding members of public-private partnerships, and promoting the World Green Economy Organization 8 international cooperation and knowledge (WGEO) Private Sector Platform. sharing of innovative and scalable projects.

ACWA Power highlighted its contribution “At ACWA Power, we deliver an towards the transition to a green economy equitable, sustainable, and prosperous through the development of innovative future through the provision of these power and water solutions aimed at valuable resources; enabling ambitious energizing and empowering communities sustainability plans to benefit communities across the globe. The company also aims and nations both regionally and to provide a safe, sustainable and reliable internationally to guarantee energy supply of water and power at low costs, as security and diversification,” well as support to other WGEO members commented Mohammad Abunayyan, through knowledge sharing.

Chairman, ACWA Power.

“ACWA Power contributes to our Also, as the current chairman of common goal for a sustainable future, WGEO’s Private Sector Platform, especially in the areas of energy, water, and Abunayyan noted that through the technology. Through government programs WGEO, private organizations and and initiatives aimed at developing fruitful companies seeking to take a lead public-private partnerships in the region, step in this new economic generation we have a key part to play in attracting and will have the advantage to help direct driving investment into the supply chains, the course of the future of businesses. infrastructure, and innovations required to

Mohammad Abunayyan

OCTOBER 2019 21

Cover Story

Big Liftoff for Project Logistics DHL Industrial Projects, a unit of DHL Global Forwarding manages complex logistics projects including deep sea chartering activity and heavy-lift cargo.

The Company’s Centre of Excellence (COE) in Dubai is the repository of special skills, talent and experience for overall project management and implementation across the Middle East and the continent of Africa.

P

roject cargo is the term used to broadly describe the national or international transportation of large, heavy, high-value or critical pieces of equipment for specific projects.

Movement of bulk industrial cargoes of this nature is rapidly gaining ground across emerging economies notably in the Middle East and the continent of Africa.

As demand for these services increases, so does competition and demands for speed, efficiency and streamlined transportation of heavy freight, machinery and bulk equipment.

The completion of big-investment projects bound by completion timetables and deadlines is dependent on many factors. One of the most crucial factors that successfully assist businesses and attain their construction and delivery objectives is proper logistics management.

To this end, DHL Industrial Projects, a unit of DHL Global Forwarding, has addressed the needs of large-scale industrial and infrastructural developments in more than 220 countries and territories worldwide, providing fully-integrated logistics services spanning transport, engineering, safety, and technology for heavy, oversized, and fragile industrial cargoes.

At the helm Global Supply Chain met exclusively with Moustafa Elbanhawi, Head of Industrial Projects, DHL Global Forwarding Middle East and Africa (MEA).“Project cargo, as opposed to regular or core cargo, is the non conventional, irregular, oversized freight that does not ordinarily fit into a container,” he states as he characterises the nature of the business.

“Also, the distinguishing feature of Project cargo is that it is sourced from 22 OCTOBER 2019

multiple sources all finally intended generally for one single destination,” he adds.

Project logistics covers several industry verticals and generally involves vast volumes and lots of large material movements.“At DHL Global Forwarding, our Industrial Project Logistics Division’s focus is on EPC, Energy, Engineering &

Manufacturing, Mining and the Renewables sectors. Project cargo constitutes both heavy, occasionally light and often hybrid, a mix of heavy and light engineering goods and equipment,” he continues.

“We offer value-added logistics services across the Middle East and Africa, notably the GCC and the developing oil and gasdriven economies of countries such as

cover story

In more than 220 countries and territories worldwide, providing fullyintegrated logistics services spanning transport, engineering, safety, and technology for heavy, oversized, and fragile industrial cargoes.

OCTOBER 2019 23

Cover Story

“Decades of technical expertise and technological capabilities ensure professional performance and the precise chartering and visibility of supply lines for even the most demanding industry-grade freight.�

24 OCTOBER 2019

cover story

Angola, Mozambique, Mauritania, Senegal and South Africa where the mining industry dominates,” Moustafa explains.

DHL Global Forwarding is clearly in growth mode in this geography.

Governments, fuelled by revenues from oil and gas activities, have announced new industrial investments in infrastructure and new energy projects thereby providing momentum to regional project logistics business.

Values

Moustafa Elbanhawi Vice President, Industrial Projects, DHL Global Forwarding, Middle East and Africa Based in Dubai, Egypt-born Moustafa Elbanhawi manages complex logistics projects. Moustafa is responsible for driving business strategy for the region, to further strengthen DHL’s position as the preferred supplier and forwarder for key International Oil Companies (IOCs), engineering, procurement and construction (EPC) companies as well as leading industry players in the oil and gas, manufacturing sectors.

He joined DHL Global Forwarding in 2011, as Project Director for one of the company’s key IOC / EPC customer’s joint project in Iraq, taking charge of all aspects of operations including multi-stations coordination in the international network.

In 2014, he was appointed Country Manager of Iraq, and in 2017, also assumed the lead role in Kuwait.

During his leadership, he successfully optimized Iraq’s domestic freight gateways as well as international connections, driving revenue growth with existing customers and winning over new contracts.

Moustafa graduated with a Bachelor of Science in Maritime Sciences and Military Studies from the Egyptian Naval College, and received his executive MBA with a major in Supply Chain management from Arab Academy for Science and Technology.

He speaks Arabic, English and French.

According to Elbanhawi, DHL Industrial Projects operates to guarantee the timely, trusted movement of highly complex cargoes for its customers. “Decades of technical expertise and technological capabilities ensure professional performance and the precise chartering and visibility of supply lines for even the most demanding industry-grade freight.

The Health, Safety and Environment (HSE) sector teams work closely with all industries to ensure total compliance and above-thebar safety,” he notes.

He foresees good growth potential for DHL Global Forwarding in the region.

“There is increased appetite in the region for fresh investments and we fully intend to seize opportunities as they come along.

As a global company we have capabilities,

resources and scale. We are fully equipped and empowered to take on the challenges of the future,” he assures.

Centre of Excellence Meanwhile, DHL Industrial Projects has made strategic investments to enhance customer experience in Middle East and Africa. The brainchild of Amadou Diallo, Chief Executive, DHL Global Forwarding, Middle East and Africa, the company has instituted a ‘Centre of Excellence’ (COE) in Dubai supported by competency centres in Egypt, Ethiopia, Kenya and Turkey to coordinate complex logistics projects across the region “Given the complex intricacies of these large-scale shipments, each with its own unique requirements, any small missteps in the Industrial Projects world could potentially have massive repercussions,” continues Elbanhawi.

“It is therefore paramount that every one of us across the region is singular in our pursuit to find the best solutions while upholding the highest operating standards. Focusing our team on these core competencies will place us in a good position to deliver best-in-class services to our customers,” he adds.

Intended to drive synergies in the region, the Dubai COE will oversee and coordinate

OCTOBER 2019 25

Cover Story

Range of Services: DHL Industrial Projects capabilities include: End-to-end logistics: Domestic and global multimodal shipments supported by specialized services for the consolidation, transportation and customs clearance of heavy and/or break-bulk industrial freight.

Specialist orchestration: Control tower solutions and guidance from DHL’s Competence Centres to handle complex, highly sensitive infrastructure and components.

Information Technology: DHL’s Material Management Systems (MMS elite) and our new upgraded (MMS 360) platform provide real-time reporting and tracking solutions for full shipment visibility, documentation, and accountability of high-value industrial cargoes.

Proprietary Services: Solutions to mitigate shipment risk and environmental impact across all routes tailored to industry and infrastructure needs. complex projects for the Gulf countries and the region as a whole. It will be supported by teams in Ethiopia and Kenya which will predominantly manage projects out of SubSaharan Africa.

Egypt’s team will specialise in air freight chartering and coordinate projects for North Africa, and the Turkey competency center will coordinate ocean freight requirements and administer projects across Iraq and Central Asia. The 40+ member team in Industrial Projects team manages the endto-end logistics process in the region.

Moustafa also sees an increasing role for new and advanced technologies in the company’s activities.“Technology is changing the way we behave and conduct our business. The future is all about 26 OCTOBER 2019

digitization,” he observes.

“DHL’s Material Management Systems (MMS elite) and our new upgraded (MMS 360) platform provide real-time reporting and tracking solutions for full shipment visibility, documentation, and accountability of high-value industrial cargoes for our customers,” he concludes.

DHL’s new mobile app embellishes customer experience App offers a number of key benefits that facilitate tracking and faster delivery The DHL Express Mobile app has been launched in eight African countries and a further 40 countries are expected to be live by the end of 2020.

The App offers a number of key benefits

that facilitate tracking and faster delivery. The growing demand for mobile services in Sub Saharan Africa drives further innovation.

DHL Express has announced the launch of an innovative mobile platform that will allow its customers in Sub Saharan Africa to track and coordinate the delivery of their shipments with greater ease and convenience.

The app is an exciting new addition to our service offering in Sub Saharan Africa and has been launched in South Africa, Kenya, Ghana, Nigeria, Ethiopia, Mauritius, Tanzania and Uganda, and will be rolled out in a further 40 countries across the region by the end of 2020,” said Hennie Heymans, CEO, DHL Express, Sub Saharan Africa.

Customers can access accurate shipping quotations, find their closest DHL Service Points for easy collections and deliveries and of course, track their shipments in real time.

With online transactions growing exponentially in Africa, Heymans says that there is a clear demand for integrated mobile solutions that allow customers to transact whenever and wherever they are.

“As the global leader in express logistics, DHL is constantly working towards providing cutting-edge solutions that help to connect Africa’s consumers and business owners with the global market”concluded Heymans.

Emirates Skycargo

From L to R Sayed Harris, Sean Dennis, Dennis Lister, and Dennis Konoplev, COO and Co-Founder, Seafood Souq.

Emirates SkyCargo

A

batch of salmon recently arrived in Dubai in the cargo hold of Emirates flight EK 28 from Glasgow.

The shipment of Scottish salmon, destined for restaurants and consumers in the UAE, was the first that was being transported for Seafood Souq, a Dubai based start-up working on transparent and efficient sourcing of seafood, by Emirates SkyCargo, The shipment marked the culmination of a round of discussions and the start of a fruitful partnership between the two companies.

Seafood Souq has created an online B2B marketplace application that helps seafood buyers procure products from all over the world. In addition to streamlining the traditional model of sourcing seafood, the application also allows for improved quality and provenance of the produce being transported.

in quest for transparent sourcing of seafood Seafood Souq have entered into a partnership with Emirates SkyCargo for transporting their seafood shipments rapidly from source markets to customers. Although the initial focus is on delivering fresh seafood from markets such as Norway, Cyprus, Chile, USA and Scotland to customers in the UAE and the Middle East, the start-up has plans to harness the potential of Emirates SkyCargo’s global network to reach a global clientele.

“The core aim of Seafood Souq is to provide access to fresh products in the quickest possible time by connecting customers to suppliers and allowing produce to be dispatched on the day that the order is received,”said Sean Dennis, CEO and Cofounder of Seafood Souq.

“Not only does Emirates SkyCargo have a good frequency of flights into all the key global origin and destination markets for seafood but they also have the cool chain

infrastructure and capabilities that allows seafood to retain its freshness during the journey,”he added.

“We are excited to be working with Seafood Souq and to be supporting an innovative Dubai-based start-up having the potential to transform the supply chain for the seafood industry,”remarked Dennis Lister, Emirates VP Cargo Commercial Development.

Emirates SkyCargo transported over 400,000 tonnes of perishables across the world in 2018 out of which more than 70,000 tonnes was seafood. Some of the major origin markets for seafood on Emirates SkyCargo in 2018 included Norway, India, Sri Lanka, Uganda and the UK. Emirates SkyCargo currently uses cargo hold capacity in Emirates’ fleet of more than 265 aircraft, including 12 freighters– and provides air cargo services to over 155 destinations across six continents.

OCTOBER 2019 27

Bahri

Abdullah Aldubaikhi, CEO, Bahri and Fathi Al-Saleem, CEO, IMI at the signing ceremony.

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ahri, a global leader in logistics and transportation, recently announced that it has signed a Vessel Purchase Agreement (VPA) with International Maritime Industries (IMI) and a subsequent sub-contract agreement with its long-term partner Hyundai Heavy Industries (HHI) to build of a 319,000 DWT Very Large Crude-oil Carrier (VLCC) with delivery expected in October 2021.

Other agreements signed will ensure all parties pursue a series of long-term business activities, whether jointly or severally on the basis of a multilateral relationship.

The VPA builds on a Memorandum of Understanding (MoU) signed between Bahri, IMI, and HHI in June this year. The MoU stipulated that Bahri will issue IMI its first VLCC order before the end of July 2019, with IMI engaging HHI as a sub-contractor to build the VLCC at its world-class facility in Ulsan, South Korea.

“Our partnership with IMI and HHI represents a major step forward in the pursuit of our long-term goals, which will eventually translate into key milestones in the country’s transformation into an important regional and global logistics and transportation hub,” commented Abdullah Aldubaikhi, CEO, Bahri.

“The collaboration is also aimed at furthering our contribution to the development of the Kingdom’s own

28 OCTOBER 2019

Bahri signs VLCC order to promote indigenous shipbuilding industry in Saudi Arabia The contracts signed with IMI and HHI will enable transfer of technology to develop domestic capabilities indigenous shipbuilding industry. We will benefit from the transfer of technology and knowledge to develop, increase, and promote local content and create suitable job opportunities for our citizens in line with the objectives of Saudi Vision 2030,” he added.

Pact with IMI “This project will also contribute to the long-term growth of this new industry in Saudi Arabia and will enable IMI to independently build VLCCs in Saudi Arabia to the highest international shipbuilding standards,”remarked Fathi K. Al-Saleem, CEO, IMI. “This project award further strengthens the business relationship between IMI and its shareholders, as well as contributing to the development of a localized maritime

industry supply chain infrastructure, technical expertise for Saudi nationals, and a track record in shipbuilding,” added Al-Saleem.

IMI, a joint venture between Saudi Aramco, Bahri, Lamprell, and HHI, is located at the King Salman Complex for International Maritime Industries and Services in Ras Al-Khair, Saudi Arabia.

When complete, the shipyard will be the largest, full-service maritime facility in MENA and will have the capacity to manufacture annually four new-build offshore rigs and over 43 new-build vessels including VLCCs, in addition to servicing more than 260 maritime products.

Major production operations are expected to commence toward the end of 2020 with the facility reaching its full production capacity by 2022.

World Road Congress

Etihad Rail is Premier Sponsor for World Road Congress Abu Dhabi 2019

The Abu Dhabi Department of Transport (DoT) recently announced that Etihad Rail is the Premier Sponsor of World Road Congress 2019.

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he 26th edition World Road Congress will take place at the Abu Dhabi National Exhibition Centre (ADNEC) between 6 and 10 October 2019.

This prestigious global event is held under the patronage of HH Sheikh Mohamed Bin Zayed Al Nahayan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and organised by the Department of Transport (DoT) Abu Dhabi and the World Road Association (PIARC).

Thousands of road transport professionals, a Congress record number of national pavilions, several exhibitors from international private and public organisations as well as transport ministers from around the world are expected to participate in the summit in the UAE capital.

During the Congress, Etihad Rail will be present at the UAE pavilion where it will showcase its role as a catalyst to boost trade and improve the economic growth and highlight their projects to provide a safe and reliable means of transportation for future generations.

Top role for Etihad Rail “Etihad Rail is supporting our ambition to bring leading companies and investors, industry experts and entrepreneurs to Abu 30 OCTOBER 2019

Economic Vision 2030 and UAE Vision 2021. This is an initiative which outlines a roadmap for Abu Dhabi with the aim to improve the region’s overall development and increase GDP from non-oil sectors to over 60% by 2030.

“As it connects strategic ports to manufacturing, production and population centers, Etihad Rail will play an important role in enhancing the transport sector in the country,”Al Mazrouie added.

Tenders awarded Khalifa Almazrouei, Undersecretary, Department of Transport, Abu Dhabi.

Dhabi for the Congress. Ultimately, this will consolidate the position of the UAE and Abu Dhabi as a leader in advanced mobility and transport infrastructure and help strengthen cooperation between the public and private sectors,” remarked Khalifa Mohammed Al Mazrouei, Undersecretary of the Department of Transport – Abu Dhabi.

The partnership with Etihad Rail will offer an insight into Abu Dhabi’s ambitious plans for urban mobility and integrated transport solutions to improve the quality of life, which aligns with the Abu Dhabi

Etihad Rail has announced the awarding of a number of contracts for the construction of the next phases of the national railway network from Ghuweifat on the Saudi border to Fujairah on the east coast. The project has taken an important step by awarding the civil and track works contracts for Stage Two of the UAE national rail network, which extends 605 kilometers.

The project aims to achieve sustainable development and economic growth by linking strategic ports and the major centres of industry and transport to urban and suburban communities.

The 26th World Road Congress comes to the United Arab Emirates having been recognised consistently by the World Economic Forum as having the best roads in the world from 2015 to 2018.

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Almajdouie de Rijke (MdR)-LPIC Partnership

Almajdouie De Rijke (MdR) wins first overseas contract Saudi Arabia’s Almajdouie De Rijke (MdR) has secured its first project contract outside of the Kingdom, providing all onsite logistics services for the upcoming mega Liwa Plastics Industry Complex near Sohar in the Sultanate of Oman.

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n a landmark recent development, MdR, the largest provider of logistics services in Saudi Arabia, will oversee all logisticsrelated value-added activities at the game-changing Liwa Plastics Industry Complex (LPIC).

The transformational project aims to reinforce Oman Oil Refineries and Petroleum Industries Company’s (Orpic) position as a key player in the international petrochemicals market with a much-indemand product mix and the planned development of the downstream plastic industry in the Sultanate of Oman.

The complex will feature a 1000kTA Steam Cracker Unit, a high-density polyethylene (HDPE) plant, a linear lowdensity polyethylene (LLDPE) plant, and a polypropylene plant. MdR’s scope of work will include consultancy, commissioning, start-up, and commercial operation. It is expected that MdR will be charged with integrating the existing polypropylene logistics operation as well.

responsible for maintaining the packaging lines and providing all necessary equipment to handle products. Furthermore, MdR will provide its operations expertise to implement a logistics management system that integrates all transactions into a common platform.

Focus on Omanisation With Omanisation directives in mind, MdR is finalising plans for a recruitment campaign. Alongside internal transfers, the goal is to recruit highly skilled local candidates and expats. The company’s proven track record in training and development will play a key role during this process.

Omanisation figures are expected to be around 30 percent at the start of the project,

rising to above 70 percent at a later stage.

MdR was heavily involved during the giant Sadara Chemical Complex’s construction and provided a wide range of technical support. In the design stage, Sadara received recommendations from MdR experts and, during commissioning, MdR offered adjustments and improvements to make sure safety and productivity would go hand in hand.

Backed by European and Saudi expertise as well as the extensive experience gained during its partnership with Sadara, MdR is in a strong position to safely and effectively handle this new project.

MdR is a joint venture between the longestablished and proven Almajdouie Group of Saudi Arabia and De Rijke Group of the Netherlands. The company was formed in

MdR-LPIC partnership Securing the LPIC project contract is a milestone for MdR whose expertise and expertise will facilitate and propel the company’s growth in the GCC and beyond. Once commercial production commences, MdR expects to handle around a million metric tonnes of polyethylene and polypropylene products a year. Accordingly, stringent measures are being put in place to ensure the highest standards of quality, safety, and efficiency are maintained at all times.

MdR will be responsible for inbound logistics at the Liwa plant, planning and executing the discharge of product silos, including packaging, stuffing, storage, and gate operation. MdR will also be 32 OCTOBER 2019

Sr. SSHEQ Manager Amador Brinkman, MdR (left) receives the award from RoSPA Trustee Ian Holborn.

Omanisation figures are expected to be around 30 percent at the start of the project, rising to above 70 percent at a later stage.

2006 to offer bespoke logistics services to the petro-chemical industry in Saudi Arabia and the GCC.

Eastern Gateway Bonded Zone In a major breakthrough, the Eastern Gateway Bonded Zone (EGBZ), an advanced, multi-model, multi-user, temperature-controlled, bonded storage and customs clearance gateway in Dammam, is now up and running.

It was established as an investment vehicle to fund the development of a MultiModel Bonded and Re-Export Zone at Dammam’s King Fahd International Airport (KFIA). As the facility’s official handling agent, Almajdouie Logistics is playing a key role in its operation, helping to serve the needs of a growing number of resident and non-resident users.

Almajdouie Logistics is providing cargo handling equipment, manpower, IT solutions, and inventory management services that ensure day-to-day activities run smoothly.

Laden with benefits EGBZ offers a number of benefits to its users, including time savings, efficiency improvements, cost reductions, deferment of duty and VAT payments, expedited clearance times, extended customs clearance operating hours, and a safe and secure environment to store and clear cargo.

At present, the facility offers cargo handling and clearance services for any carrier through its general cargo area, with additional space available for companies seeking dedicated handling areas.

OCTOBER 2019 33

Almajdouie de Rijke (MdR)-LPIC Partnership

Although the chamber is currently being utilised for clearing cargo, its storage capabilities are proving incredibly beneficial for customers needing deferred duty or reexport solutions. The facility has dedicated chilled and frozen chambers for the safe handling and inspection of perishable and temperature-sensitive cargo to ensure food safety as well as quality assurance.

Reducing transit time In recent years, overland bonded / transit trucking traffic between the UAE and Saudi Arabia has grown exponentially. While it can take several days for road transit arriving at the Saudi border from Dubai to clear customs and be released into the country, this process has been shortened significantly at the EGBZ’s clearance facilities. From a transporter’s perspective, this means greater operational efficiency, quicker turnaround, improved asset utilisation, and reduced lead times.

There is currently a team of dedicated Almajdouie Logistics employees at the EGBZ, handling all inbound trucks and airfreight daily. As the facility’s other chambers open up, the volume is projected to rise to almost 200 trucks a day and 34 OCTOBER 2019

The volume is projected to rise to almost 200 trucks a day and the opening hours have been extended from 8 to 16 hours presently the number of employees will increase accordingly. To facilitate this growth, the EGBZ’s opening hours have been extended from 8 to 16 hours presently, and then eventually to 24 hours in the near future.

Having 24-hour customs clearance capabilities at the facility will be critical for Saudi Arabia, improving the competitiveness of the country’s business environment, and driving economic growth and diversification in line with the Kingdom’s Vision 2030.

Consortium founded and owned This will be the second Saudi Arabian Bonded Logistics project founded and owned by a prominent Consortium, the first being the Dammam Bonded & ReExport Zone, A Bonded and Free Trade Area launched in 2000 at Dammam’s King Abdulaziz Sea Port, now managed in conjunction with Hutchinson Ports

Holdings.

The EGBZ is a project financed and owned by the Eastern Gateway Logistical Services Company (EGLSC), an investment vehicle established by a consortium of prominent Saudi Arabian mercantile families, including the Albawardi Group, Al Muhaidib Group, the Globe Group, and the Abdullatif Alissa Group.

The inspiration to establish the Eastern Gateway Bonded & Re-Export Zone at KFIA is consistent with the Kingdom’s 2030 goal to offer the zone’s domestic, regional, and international users a range of enhanced freight processing and customs clearance services, along with a wide range of cargo routing options.

The EGBZ’s operational objective is to be Saudi Arabia’s most efficient and flexible Trade Gateway. With MdR’s resources and committed backing, it is surely heading in that direction!

SHOW DATES: 17-21 NOVEMBER 2019 CONFERENCE DATES: 18 NOVEMBER 2019 DWC, Airshow Site, Dubai, UAE

KEY SPEAKERS

Dr. Khalfan Al-Shueili, Chief Executive Officer, Oman Aviation Services

CO-LOCATED WITH:

Idriss Al Rifai, Founder and CEO, Fetchr

SUPPORTED BY:

Henk Mulder, Head, Digital Cargo, IATA

Abhiskeh Shah, Co-Founder and CEO, RSA National

HEADLINE SPONSOR:

www.cargoconnect.aero

THE FUTURE OF TRADE MOBILITY

FOUNDATION SPONSORS:

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POINT CAMERA TO REGISTER

LogiSYM 2019: Delivering the ‘Digital Journey’

Destination Digitisation: Racing on the highway to value-added logistics with technology adoption

36 OCTOBER 2019

Every professional logistician should be examining ways to optimise the efficacy and sustainability of his or her Supply Chain; but regrettably this is not the case laments Dr. Raymon Krishnan, an eminent logistician, in this interview. In this exclusive conversation, Dr. Krishnan sends out a clarion call to work and build robust management and supply chain fundamentals, develop good governance considerations and adopt responsible practices wherever possible.

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he just concluded two-day LogiSYM 2019, convened in Dubai, sent out a rallying call to the Logistics & Supply Chain Industry—digitalise or stagnate at your own peril!

Dr. Krishnan is currently the President of the Singapore-based Logistics & Supply Chain Management Society (LSCMS) the regional professional body for logistics practitioners and professions. He was recently in Dubai for LogiSYM 2019, where he addressed the delegates and attendees on the need for reforms in the system.

The following are excerpts from that exclusive interview.

Global Supply Chain (GSC): How significant is LogiSYM (2019) for the Middle East?

Dr. Raymon Krishnan (RK): LogiSYM Dubai is perhaps one of the most crucial supply chain symposiums for the Middle East. It helps elevate the capabilities of the industry and professionals working in Logistics and Supply Chain Management. LogiSYM is run in Asia and here in Dubai and acts as not only a bridge but also a conduit to exchange ideas, concepts and practice to introduce or emulate.

GSC: How high in the pecking order is the logistics and supply chain industry (SC&L) in the Middle East?

RK: The supply chain and logistics industry is ranked fairly highly in the Middle East and especially so in the UAE, Qatar and Oman. However, much more still needs to be done. There is a dearth of expertise locally and this will take time to develop and build up.

For those starting out in the industry must be willing to roll up their sleeves and start from the bottom. Logistics is one profession that requires strong hands-on experience, as opposed to simply learning theory in a University and then trying to implement it, or even worse manage it.

Additionally, aside from oil and gas, there is little hard-core manufacturing in the region and aside from Dubai and perhaps Abu Dhabi, the rest of the region are not strong on oceanfreight transshipment ports.

OCTOBER 2019 37

LogiSYM 2019: Delivering the ‘Digital Journey’

Industry 4.0 will allow logisticians in the Middle East to steepen our learning curve and in a few years be considered world class in terms of Supply Chain and Logistics expertise and capability.

Dr. Raymon Krishnan has over twenty five years experience in the Logistics industry as an end user and service provider. This includes senior management, government-linked and academic positions in a variety of international companies and institutions based in Asia, the US, Europe and Australia.

His experience covers the full logistics spectrum, from raw material procurement to physical distribution and eventually customer service and care, with a strong grounding in ‘Quality and Six Sigma’. His last commercial role was as Global Commercial Director of APL Logistics and prior to this as Director Asia Pacific Logistics & Trade Compliance for WR Grace Inc. He holds a Doctor of Business Administration (DBA) degree, focused on the concept of Combined Distribution Networks.

He also holds a degree in Logistics from the Royal Melbourne Institute of Technology and a Master of International Business from the University of Wollongong.

Dr. Krishnan is currently the President of the Logistics & Supply Chain Management Society and under his stewardship the Society has been nominated the ‘Best Logistics Education Provider in Asia’ in 2003 & 2004.

38 OCTOBER 2019

Delivering the ‘Digital Journey’

This means that much of the Gulf operates as a destination point for cargo with insignificant quantities of value-add or manufacturing operations. This adds to the complexity, as you have comparatively lower levels of expertise operating or managing supply chains in this part of the world when compared to Europe, the US and even East and South-East Asia.

Finally, logistics is a derived demand and there simply is not the population density in the GCC as there is in many parts of the world. To optimise any supply chain, volume and scale are key factors.

GSC: How is the SC&L industry faring in the region overall?

RK: It is always fascinating to see how anything develops in the region and the Logistics and Supply Chain industry is no exception. The sheer willingness to invest and develop something from scratch in this part of the world is second to none.

Coupled with prudence and resources, the only way is up.

GSC: What is the outlook for the industry in the region for 2019 going forward?

RK: Overall the outlook is positive. There is the global slowdown to contend with but we do not expect this to be a full on economic recession. The upside for growth given the exponential growth in

e-commerce will be a significant contributor and there is also the opportunity for some countries in the region to become a regional and global e-commerce hub.

Given the access the region has to technology and expertise there is also the opportunity to leap frog other parts of the world and capitalise on much of the benefits of Industry 4.0.

GSC: What are the opportunities and challenges for the generic industry globally?

RK: The opportunity is that we are starting from a very low base in terms of both volumes and expertise so for much of the region the only way is forward. The challenges are the lack of expertise, be it foreign or domestic.

There are many players in the market but to reiterate the point made earlier, this is a destination location and therefore the level of expertise is not readily available.

Globally, supply chain and logistics is a derived demand so in a sense we are not masters of our own destiny.

GSC: How are the trade / tariff wars between the United States and China and separately the looming Brexit crisis impacting the industry?

RK: Every logistician should always be looking at ways to optimise the efficiency and effectiveness of his or her Supply Chain. The sad fact of the matter is that we

seldom do this. We are too caught up in day-to-day operations and also do not want to risk modifying or augmenting something that currently works.

The risk is too high and the individual reward not attractive enough to make us want to do that. The US-China trade war and Brexit is however forcing us to do just that so in a way we should be “thankful” that it is forcing us and our managements to re-look what we do and find a better, more profitable alternative.

GSC: What implication are new and sophisticated technologies having on the industry?

RK: The opportunity to leapfrog and leverage the benefits of Industry 4.0 is the carrot for professionals and entrepreneurs. If executed correctly and with prudence it will allow logisticians in the Middle East to steepen our learning curve and in a few years be considered world class in terms of Supply Chain and Logistics expertise and capability.

GSC: What are you hoping to attain at LogiSYM 2019?

RK: We need to broadcast the need to deliver on the digital promise. Not just to espouse concepts and theories but to actually get the fundamentals right and implement them across our organisations and in the interrelated supply chains we manage or influence.

GSC: What is your message at this landmark event?

RK: Industry 4.0 offers huge opportunities for our industry and Dubai and the Middle East overall is in a great position to leverage and capitalise on this.

GSC: What is your vision for the industry for the short and / or long term futures?

RK: In the short term we want to drive home the message to work and build on robust management and supply chain principles. An old message but one that still needs to be driven home as very few companies actually have this in place.

Also, we need to pay more attention to ESG (Economic, Social and Governance) considerations and adopt responsible practices wherever possible.

In the mid-term, seeing the role of women and locals from this part of the world playing a more significant role in managing supply chains in this part of the world and in the longer term adopt the opportunities that present itself through digitalisation and industry 4.0.

OCTOBER 2019 39

Cargo Connect 2019

Connecting the World of Cargo The international air cargo industry, like many other industry sectors, is experiencing headwinds—a fall out of the slowing global economy, unresolved trade disputes and ongoing geo-political tension among others.

However, despite being given a run for the money, all out efforts are being made by this sector to counter turbulence and keep business afloat.

40 OCTOBER 2019

Cargo Connect 2019

C

argo Connect, co-located with the Dubai Airshow 2019 to be held from 17-21 November, is the confluence for the global cargo community, showcasing international developments in next generation freight, automation and digital cargo. It is the point of convergence for key officials in the industry to take stock and analyse the current situation.

At Cargo Connect 2019, officials will examine issues related to the future of trade mobility. Leading, top-tier professionals drawn from a cross section of the air cargo and logistics supply chain sectors will converge to discuss the latest trends and transportation solutions.

Among the subjects to be discussed are Cargo Transformational Strategies; the Digital Cargo Revolution; Technological Evolution in the Freight and Supply Chain; the impact and future of Automation, Drones and Artificial Intelligence (AI) and future trends.

Despite challenges and uncertainties, it is estimated that in 2020, cargo will create revenues of over US$ 116bilion, constituting in excess 13% of airline revenues.

Aircraft manufacturer Boeing predicts an increase from 3.7% to 4.7% CAGR (compound annual growth rate) in freight tonne kilometers (FTKs) over the next 20 years. Studies indicate e-commerce will continue to boost air cargo demand and the market is set to double to US$ 4.9trillion by 2021.

Cargo Connect has the support of leading airports, regulators and operators and will be attended by senior officials from Airlines, Airport Authorities, Cargo Carriers, Courier and Express Delivery Services and others related to the business.

Market Insights: Air Cargo Trends Recent global trade and political influences has generated some uncertainty in the global logistics and cargo sector however, research suggests this is a short-term issue. The WTO’s 2019 trade predictions see global trade on par with GDP at 2.6% returning to 3% in 2020 and growing faster than GDP. The OECD’s (Organisation for Economic Co-operation and Development) long-term Transport Outlook 2019 predicts global

freight demands will treble between 2015 and 2050 with the largest growth coming from the airfreight sector with a CAGR of 4.5%.

Key Points • Air Freight accounts for 35% of global freight value but only 1% of volume • The centre of trade and manufacturing is moving eastward to the benefit of the Middle East as a trade hub • Cold chain logistics for perishables and medicines is growing at 7.8% and both Emirates and Etihad have launched products for fresh produce and pharmaceuticals • E-commerce is growing by 18% each year yet there is still room for more growth as online sales only represent 15.2% of all retail sales • Dubai South has opened a 900,000sqm logistics freezone facility for e-commerce • UPS saved 10 million gallons of fuel in a year by using AI • 3.7 terrorist attacks happen each week and the industry is looking to blockchain to secure the supply chain.

Cargo Connect is returning as part of the Dubai Airshow to tackle the issues facing

OCTOBER 2019 41

Cargo Connect 2019

air freight. In the medium term, Boeing’s predictions for the air cargo industry is that it will sustain a 4.2% growth rate to 2037 much of which will be underpinned by e-commerce.

Airbus has issued its own air freight forecasts. Like Boeing, it predicts a 4.2% CAGR from 2017 to 2027 and then suggests a slower global growth rate for the following decade at 3.1%. As a longterm prediction, the European OEM sees a 3.6% CAGR globally and 3.4% in the Middle East.

According to IATA, air freight accounts for 1% of the volume of freight moved internationally yet 35% of the value. Where container and sea freight are driven by bulk cargo, the air freight industry is heavily influenced by time critical freight such as e-commerce and perishable goods; which are growing at 20% and 8% respectively.

The centre of trade and manufacturing, like the aviation industry, is moving eastward towards the growing middle classes of Asia and India. Strategically, this leaves the Middle East in an advantageous location as a transit hub between Europe and Asia. According to the OECD, Asia now accounts for 50% of the Middle East’s trade, up from 40% in 1999.

42 OCTOBER 2019

The same report recommended significant investments into logistics infrastructure to capture the trade opportunity and growing e-commerce market. The UAE, in particular, has been forging bilateral trade agreements with Asian partners whilst investing in logistics infrastructure.

Most cargo commentators, researchers and industry players cite not just changes in the global trade arena as affecting the industry, yet greater impacts coming from environmental management and commercial and technological disruption.

The quest to reduce CO2 emissions and changing manner in which people purchase goods and have them delivered will have the greatest impact on the industry.

E-commerce and the ‘Uberisation’ of Transport Online retail purchases grew by 18% from 2017 to 2018 peaking at US$ 2.86trillion.

This represents only 15.2% of all retail purchases so the room for growth is obvious. In MENA online transactions grew by 44% with the greatest growth coming from the UAE and Saudi Arabia.

The key proposition behind online retailing is ease and speed for the

consumer. Amazon set the standard for delivery times which were relatively easily met in the US domestic market. Yet at an international level, it has driven investment into sophisticated inventory management, air freight and fulfillment centres.

In the UAE, third party logistics company, Aramex, grew by 4% to US$ 1.234billion. Its fastest growing division was Logistics and Supply Chain Solutions, growing by 23%. It is the division which supports its omnichannel retailing clients.

A strategic project from the UAE government and the region’s only e-commerce freezone, EZDubai is a 920,000 sqm facility which is expected to have cost AED 2.1billion (US$ 572million) once complete and will catapult Dubai as the region’s leading e-commerce hub. DHL Express has committed to acquiring increased space in the EZDubai development.

There has been plenty of commercial investment in this space in the Middle East. In 2017, Amazon purchased local e-commerce platform, Souq. Before rebranding to Amazon in the UAE the US e-retailer invested in a 26,000 sqm fulfillment centre in Dubai.

Noon.com is another regional

Cargo Connect 2019

EZDubai is a 920,000 sqm facility which is expected to have cost AED 2.1billion (US$ 572million) once complete and will catapult Dubai as the region’s leading e-commerce hub. e-commerce platform launched in 2016.

The company began in the UAE before expanding to Saudi Arabia and then Egypt in 2019, investing in a dedicated fulfillment centre for that market. At the same time, AWOK.com, another locally grown e-commerce platform, went to market to raise US$ 30million for a regional expansion first to Saudi Arabia then North Africa.

India is also presenting as a growing e-commerce market. In 2017, Indians transacted US$ 39billion online. By 2020, these transactions will grow to US$ 120billion making it the fastest growing e-commerce market in the world. In anticipation of this expansion, warehousing income in India grew by 45% in 2018.

At the same time, the Indian Government released a civil aviation roadmap to 2040 which forecasts air freight will expand fourfold to 17 million tonnes; mostly due to growth in e-commerce.

UPS is the leader in using AI technology to gain efficiency and the company saves 10 million gallons of fuel each year. They also utilised AI to scan social media for complaints about delivery delays to fix systemic problems.

Alibaba’s warehouse in China is completely operated by robots making it the largest automated warehouse in the

world. It is an ongoing trend and research conducted by consultancy, Tractica, foresees 938,000 robots valued at US$ 30.8 billion will be delivered in 2022 to the logistics industry.

In China, DHL has partnered with UAV manufacturer, EHang, to develop and deliver a last mile logistics solution with UAVs. In mid 2019, the partnership saw the first autonomous eVOTL (electric vertical take-off and landing) delivery of a fivekilogram package in the Guangzhou area.

The EHang Falcon is designed to integrate seamlessly with the automated picking and packing capabilities of DHL then tracked with highly accurate GPS. In the future, these UAVs will be enabled with facial recognition for additional security.

Market Insights: Air Cargo The next wave will likely be the ‘uberisation’ of logistics particularly of the last mile of transport driven predominantly by the arising changes in consumer expectations from e-commerce. In the UAE, Fetchr has developed a phone-to-phone application which utilises the GPS function to deliver goods directly to the individual with real time tracking capability. CEO and Founder, Idriss Al Rifai, recently stated 98% of all transactions on the platform emanated from an online retailer.

Technology triumph Technology and disruptive solutions are growing in importance as players are looking for more efficient, reliable and secure ways of transporting goods.

Fulfillment centres are no longer moving bulk items yet piece picking for individual delivery demanded by the consumer in quick turnaround. It could be a recipe for error and huge labour costs, yet AI, digitisation, UAVs and automation are combating these potential issues.

Refrigerated Air Caro: The Cold Chain One of the fastest growing sub-sectors of the air freight market is the Cold Chain. Industry reports show a 7.8% CAGR leading to a global market value of US$ 293.27 billion by 2023.

This sector covers the climate-controlled transportation of fresh produce and pharmaceutical products, both of which are enjoying growth from the emerging middle class in Asia.

In recent years, both Etihad and Emirates have launched cold chain logistics services. Emirates Pharma and Emirates Fresh both use an entirely climatecontrolled supply chain. In 2017-2018, Emirates Pharma saw a 38% increase in goods moved whilst Fresh reportedly flew 400,000 tonnes of perishables in its first year.

When Etihad launched FreshForward in 2018 and flew 90,000 tonnes in its first 12 months most of which was fruit and vegetable followed by meat, flowers and fish.

It is not just the airlines investing in Middle Eastern cold chain. Both RSA Logistics and Kuehne & Nagel have opened cold logistic centres in the UAE to manage the MENA region. Aside from the market opportunities presented by the greater region, having cold chain infrastructure in the market will work to reduce wastage as 1.3 billion tonnes of fresh food are lost each year to spoilage.

OCTOBER 2019 43

Cargo Connect 2019

The great benefit and challenge for blockchain technology is that it requires mass adoption to be fully effective.

The overall market for blockchain should reach US$ 7.82billion by 2022.

Platform for companies testing the blockchain waters. IBM, in conjunction with Maersk, has also launched the logistics specific platform, TradeLens, to which Saudi Arabian customs and Agility have subscribed.

It is an area of innovation and interest to the UAE Government seeking to be the epicentre of the Fourth Industrial Revolution: the technology revolution. In 2019, the Tristar Group was awarded the Technology Solutions Provider of the Year in Dubai off the back of its blockchain platform for managing its chemical logistics.

The great benefit and challenge for blockchain technology is that it requires mass adoption to be fully effective. Encouragingly, the overall market for blockchain should reach US$ 7.82billion by 2022.

New players

Meanwhile, UAE tech start-up, Fero, has launched the first AI-enabled voice agent which automates the logistics agent’s interaction with various parties on the transit chain. Compatriot company, Quiqup, has raised US$ 12million for an expansion of its AI-enabled last mile logistics services across the MENA region.

On the horizon, the next wave of technological advancement is the digital twin. By harnessing IoT and AI technology, companies can produce a digital replication of their supply, manufacturing and logistics chain to seek improvements, reduce bottlenecks and forecast demand peaks.

Security A 10-year report produced by BSI found there are 3.7 terrorist attacks on supply chains each week. These attacks are both cyber and physical and consensus amongst logistics professionals is traditional logistics systems are vulnerable to attack. The industry is looking to blockchain technology to improve security.

44 OCTOBER 2019

By adopting blockchain technology in the air cargo industry, the benefits according to DHL and Accenture range from traceability and security (particularly of sensitive items such as pharmaceuticals) through to efficiency and transparency.

Each movement of a good is placed in a blockchain never to be altered and along the route. Each party is given access to see and contribute relevant information without amending or breaching any other block in the data chain. Combined with IoT and automation, much of this input would not require human interaction reducing even further the risk of attack.

Blockchain is also useful in bio-security and pharma-security. Swiss company, SkyCell, have harnessed the blockchain and IoT technology to manufacture cold chain air freight containers which actively monitor and record the internal temperature.

The system has reduced temperature fluctuations from 7% to less than 0.1%.

In the UAE, the government partnered with IBM to launch the Dubai Blockchain

The global trade arena is changing towards Emerging Market Economies (EMEs) and Asia. The Middle East’s strategic transport location between these emerging trade and manufacturing hubs and the European and African markets has seen a range of bilateral trade agreements emerge.

Market Insights: Air Cargo Trends China is not the only country creating trade and logistics agreements in the Middle East.

Vietnam and the UAE have a bilateral trade agreement. As both a destination and a transiting point, Vietnamese exports to the UAE were valued at US$ 6.3billion in 2017. In the same year, Emirates SkyCargo increased refrigerated air services between the two nations by five times.

In early 2019, Indonesia followed suit as President Joko Widodo undertook several visits to the Middle East to promote trade relations in the wake of a dissolving TransPacific Partnership. The Philippines is also strengthening ties with the UAE as the two countries’ bilateral trade amounts to US$ 1.49billion most of which is agricultural and advanced manufacturing.

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Emirates SkyCargo; Progress Report

Emirates SkyCargo

reports a successful summer season for the cold chain The carrier moved over 177,000 tonnes of perishables and pharmaceuticals through Dubai during a four and half month period

E

mirates SkyCargo has securely transported a large volume of temperature sensitive pharmaceuticals and perishables through Dubai to other parts of its global network this summer.

In total, the air cargo carrier moved over 150,000 tonnes of perishables and 27,000 tonnes of pharmaceuticals through Dubai between the beginning of April and midAugust 2019.

Over the last three years, Emirates SkyCargo has managed to consolidate the position of its Dubai hub as an efficient and rapid transit point for cargo originating from and destined to a variety of cities across six continents.

Emirates SkyCargo has invested in developing modern and ‘fit for purpose’ infrastructure at its Emirates SkyCentral DXB and DWC cargo terminals for cargo from passenger and freighter aircraft respectively.

46 OCTOBER 2019

This includes extensive cool chain facilities and dedicated storage space for pharmaceutical cargo. With a combined capacity of over 2mn tonnes of cargo per annum, the terminals see movement of close to 5,000 shipments and over 6mn kilos of cargo per day including during the summer season.

Moving vital pharma cargo Since 2017, there has been an increase of 7% in the volume of pharma cargo transported during the summer months and an increase of 14% in the overall volume of pharmaceuticals transported throughout the year.

This summer season alone, over 190,000 kilos of pharma travelled every day through Dubai on Emirates SkyCargo. These include lifesaving vaccines, medication for cancer, diabetes and cardiovascular diseases that travel across the world through Dubai to

reach patients in time for their treatment.

The carrier’s operations in Dubai, including its state of the art dedicated pharma facility at DXB, its freighter terminal at DWC and the connecting bonded trucking corridor between the two airports are certified for EU GDP norms.

Emirates SkyCargo received its first GDP certification for its Dubai operations in 2016 and has successfully managed to get its recertification every year since.

Emirates SkyCargo has also enhanced the protection for pharmaceutical cargo from origin to destination by working with local ground handlers as part of its pharma corridors initiative.

Earlier this year, the air cargo carrier inaugurated a new ‘purpose built’ pharma facility at Chicago airport. Chicago is one of Emirates SkyCargo’s most important pharma stations globally for both exports and imports.

The food connection Every day, around 1,100 tonnes of food and other perishable products originating from different parts of the world move through Emirates SkyCargo’s terminals in Dubai. This summer, there was an increase of close to 6,000 tonnes in the total quantity of perishables passing through Dubai compared to 2017. Close to 35% of perishables arriving at Dubai are destined for the UAE with the rest travelling on to reach global consumers.

For example, the carrier uplifts specialty food produce from Italy including Parmigiano Reggiano and Bufalo Mozzarella cheese from Rome and Naples, Vignola cherries and kiwi fruit from Bologna and Modena, strawberries, fish and clam from the Venice area. In 2018, Emirates SkyCargo flew close to 3,000 tonnes of perishables just from Italy to the Middle East, Australia, New Zealand and other destinations in East Asia.

Emirates SkyCargo also helps local economies through the facilitation of exports of sea food. Since the start of its service to Santiago, Chile, Emirates SkyCargo carried over 4,000 tonnes of Chilean salmon equating about 20% of the total volume of salmon exports to Asian destinations.

One of the points of origin for perishables for Emirates SkyCargo is India.

Every month, around 4,000 tonnes of fruits,

vegetables and other perishables are moved from India on Emirates SkyCargo aircraft.

Produce exported include summer fruits such as mangoes and guavas and vegetables such as okra, drumsticks and chillies helping bring a taste of home to Indian expat communities in various markets. Since May 2019, Emirates SkyCargo has moved 18,000 tonnes of perishables from India alone.

Investment in facilities and processes For successful operations at the hub, Emirates SkyCargo has built processes compliant with stringent international norms such as the EU Good Distribution Practices (GDP) for transport of pharma cargo.

Since 2016, Emirates SkyCargo has also introduced specialised transportation solutions- Emirates Pharma and Emirates

With a combined capacity of over 2mn tonnes of cargo per annum, the terminals see movement of close to 5,000 shipments and over 6mn kilos of cargo per day Fresh which have met with considerable success with customers.

Innovative equipment such as the air cargo carrier’s fleet of over 40 Cool Dollies for pharmaceutical products and 17 Cool Dollies for other perishables at the hub make sure that cargo is not exposed to temperature changes when being loaded or unloaded from the aircraft or being transported to and from the terminal.

Use of Emirates SkyCargo White Covers on pharma and perishable shipments also provides a robust first level protection against thermal fluctuations.

With its combination of a modern widebodied aircraft fleet, wide network and multiple flight frequencies to major global destinations, Emirates SkyCargo ensures some of the fastest travel times for cargo across continents.

OCTOBER 2019 47

Expert Column: Maintaining Profitability – Ingo Kloepper

Combat

Profit Erosion in Five Steps

New start-ups offering emerging technologies and advanced digital solutions are giving legacy-driven companies a run for their money The emergence and proliferation of new digital logistics start-ups at a phenomenal pace is radically changing the supply chain industry landscape. By offering costeffective and expansive services, these lean, newly emerging companies are putting enormous pressure on profit margins for long-established conventional companies offering traditional logistics services, writes Ingo Kloepper —Editor.

B

uzzwords like ‘Digitisation’, ‘Artificial Intelligence’, IoT, ‘Big Data’, ‘Predictive Algorithms’, and ‘drone deliveries’ continue to dominate contemporary logistics conferences, regionally and globally.

In reality, most freight forwarders and logistics providers still operate on 30-yearold legacy systems. The crown jewel of their IT applications is MS Excel.

Simultaneously, we are witnessing the disruption of the logistics industry through new technology and new players. According to Forbes, a new digital logistics start-up is born every five minutes – this translates to 288 digital logistics start-ups every single day, or just over 100,000 annually.

The introduction of these start-ups increases competition and contributes to margin erosion.

Although customer expectations have increased, a number of logistics providers still operate on legacy systems.

These providers face increased coststo-serve because legacy systems require workarounds and manual intervention.

On the other hand, we witness rate volatility in both air and ocean freight.

Volatility is produced because markets no longer behave according to the principles of supply and demand. A decade ago, rate levels could be predicted a year ahead; however, this is now not reliably possible.

48 OCTOBER 2019

So, what can you do to combat margin erosion?

Part One: Market Positioning & Sales Strategy Your market positioning essentially determines your level of profitability and your level of specialisation required. There are four pillars represented in the chart above: industry sector, customer type, geography, and trade lane.

Among these pillars, you want to focus on those industry segments, customer

Compliance

types, geographies, and trade lanes that can provide you with higher profitability than others. For example, focusing on hi-tech industry rather than commodity traders, will likely return higher margins.

Should you then focus on multinational customers or on local SMEs? In which geographies should you execute your business?

Generally, your customer type and size both have an impact on your productivity and profitability. Furthermore, niche and emerging markets tend to be more

Trade Compliance

l FCPA l UK Bribery Act l Local Legislation

l Denied Party Lists l Sanctions l FMC

Governance Regulatory Requirements l Tax l Audit l Labour Law

Contract Management

l Limitation of Liability l Insurance Policies l Claims Management

Expert Column: Maintaining Profitability – Ingo Kloepper

l nua a M ses s e c Pro

Incr ea Cust sed Expe ome r cta tio ns

Incre as Cost ed st Serv o e

sed rea Inc etition mp Co

profitable than highly competitive and mature markets. Finally, you want to target trade lanes that generate higher margins than others, for example exports to US inland points versus imports ex-China.

Throughout these four pillars you also want to see a sustainable product mix.

Air freight and LCL tend to generate higher margins than FCL. Door-to-door deliveries, including customs clearance at both sides, are also usually more lucrative than focusing on port-to-port or airport-toairport movements.

Lastly, do you deliver any quantifiable value to your clients, or you focus on purely transactional clients, where all you do is offer a rate and a payment term. Obviously, your chances of success increase by quoting lower rate levels and longer payment terms.

Hat Vola e t i l ity

ted a d t Ou gacy Le ems t Sys

Margin Erosion

Part Two: Governance & Risk Prevention

But is this a sustainable business model?

First ask: can you quantify your value?

Do you reduce the cash-to-cash cycle and working capital intensity, take complexity and costs out of your client’s supply chain, reduce lost sales, and ensure optimal inventory levels?

If you can quantify real value, you should be in a good position to demand management fees per shipment, which are higher than margins generated with transactional clients.

Now that you have defined a sales strategy/ positioning for sustainable margins, you need to ensure you have no leaks in your bucket. Manage to prevent one-offs, such as fines and penalties, and protect yourself (and your profit margins).

Customer Contract Management You need to ensure that the majority of your business is executed against limited liability contracts and that your limited liability is covered through relevant insurance policies.

When it comes to claims management, you want to ensure that you limit commercial settlements. Instead, settle according to your limited liability terms (usually international conventions).

OCTOBER 2019 49

Expert Column: Maintaining Profitability – Ingo Kloepper

Regulatory Requirements You should avoid fines from late tax/ VAT reporting and comply with audit requirements as well as local labour laws. Ensure you fully understand and are compliant with the requirements of establishing or liquidating legal entities in other geographies.

Compliance Ensure you are compliant with local legislation, and when dealing with multinational clients, compliance with FCPA and UK Bribery Act is an absolute must. Non-compliance in this area cannot only lead to your organisation’s termination, but you might be prosecuted personally.

Trade Compliance Since logistics providers facilitate global trade, it is equally important to be compliant with EU and US Denied Party Lists’ sanctions, as well as FMC regulations, if you operate as a NVOCC.

Part Three: Organisational Design & Business Process Optimisation What does ‘optimising your organisation’ mean, and how can it help you combat margin erosion?

Review and simplify your organisational structure Do you employ managers who have fewer than four direct reports? I suggest you revaluate whether you really need these managers.

The aim is to create a flat organisational structure with empowerment of the frontline and with an increased span of control, the number of direct reports reporting to a manager.

There is no golden rule as to what number of direct reports is ideal.

The amount very much depends on the organisation and the role of the manager. It is, however, likely that there is an opportunity to take layers out of the organisation in order to improve agility, effectiveness, efficiency, and, ultimately, reduce costs.

Business process optimisation Actions:

l Review Organizational Structure l Increase SPOC l Review & Simplify Processes l Introduce Standardization l Delegate Authority l Focus on Data Quality

Benefits:

l Efficiency l Effectiveness l Agility l Reduced Costs l Reduced Risks l Improved Quality

50 OCTOBER 2019

When was the last time business processes were amended in your organisation?

Probably, it was quite a while ago.

When you optimise business processes, the aim is to simplify them and introduce standardisation whenever possible.

Most logistics providers have the ability to report tracking and tracing events digitally through their websites. Often you find that there is either no focus on data quality in the organisation or that the level of customisation for each client is too great.

For example, the system can report 10 standard events, but 15 are sold for customer A, 12 for customer B, and 21 for customer C. Both data quality and the absence of standardisation make system

usage obsolete and result in numerous individual tracking and tracing Excel worksheets, which are updated by the operations and customer service teams and then sent out to clients daily, weekly, monthly and other pre-determined periods.

In these cases, harmonisation between the commercial and product departments is required so that, ideally, mostly standardised event reporting is offered and executed through the system.

As you optimise and simplify business processes, you want to pay particular attention to repetitive, non-value adding tasks, such as pure data entry tasks, which do not really require intelligent human intervention.

Highlight these tasks for the next step.

Part Four: Centralisation of repetitive, non-value adding tasks With tech and AI more advanced than ever before, there’s never been a better time to centralise non-value adding tasks to prevent margin erosion.

As you optimise your business, you will have highlighted repetitive, non-value adding tasks in the process.

You now want to centralise these tasks for two reasons: Once you centralise these tasks, you will be able to realise immediate productivity gains.

Expert Column: Maintaining Profitability – Ingo Kloepper

“14% of the workforce in the Midde East/North Africa region is engaged, 64% are not engaged, and 22% are actively disengaged.”

Source: Gallup, State of the Global Workforce Report 2017

More importantly, you can now outsource/offshore these tasks to service centers in labour cost attractive countries, or, ideally, deploy RPA (robotic process automation).

These software robots literally work 365 days per year, 24/7, never fall sick, and do not (as yet) negotiate their salaries on an annual basis.

I have witnessed cases where one software bot assumed the work of 15 employees. This does not only have a positive impact on personnel expense, but also on data quality and timeliness.

Moreover, your employees can focus on value adding tasks.

Part Five: Create a culture that fosters highly engaged and motivated employees Find out how to create a culture that turns your employees into your most valuable (and profitable) asset.

In the logistics industry, personnel expense is usually the highest cost factor with personnel expense ratios anywhere around the 50% mark.

With that in mind, it is alarming to see that according to Gallup’s State of the Global Workforce Report approximately 86% of the workforce in the MENA region is either not engaged or actively disengaged (disruptive).

Focusing on creating a culture that fosters highly engaged and motivated employees is therefore imperative.

Introducing performance management tools will help you create a transparent environment in which employees are aware of both organisational goals as well as personal objectives. Not only do you want to reward performance, ideally you want to reward over-performance.

According to Gallup, top-performing organisations achieve the following, versus low-performing organisations: 17% higher productivity 20% higher sales 41% lower absenteeism 70% fewer employee safety accidents 40% less shrinkage (a polite word to describe theft)

Ingo Kloepper Ingo Kloepper is the Founder and CEO of www.toplogisticsmanagement. com, a Dubai-based logistics advisory specialising in improving the profitability of logistics businesses.

Kloepper is a logistics and supply chain professional with close to 25 years of experience. He held senior executive roles for multinational logistics providers both in Europe and the Middle East.

He successfully turned around various logistics businesses and established them as fast growing, highly profitable and award-winning organisations.

Kloepper is passionate about improving P&Ls and is committed to helping businesses become more profitable in times of ongoing margin pressure.

OCTOBER 2019 51

DP World at 2019 World Energy Congress

DP World is Logistics Partner at the 2019 World Energy Congress

Trade enabler showcased energy logistics expertise and sustainable mobility innovations

D

P World and its subsidiary P&O, participated in the 24th World Energy Congress (WEC) held in Abu Dhabi in the second week of September 2019 as the ‘Logistics Partner to the Energy Industry’.

Attending this event for the first time, DP World showcased its global experience, capabilities and operations in energy logistics and sustainable mobility. The WEC is the world’s most important global energy event and was held in the Middle East for the first time.

Under the theme ‘Making Energy Flow’, DP World and P&O demonstrated the connectivity of energy-related cargo movement around the world as they engaged the international energy community and shed light on the best practices, trends and future outlook of logistics across the energy sector supply chain.

Key focus areas included marine logistics through P&O and the promise of sustainable transportation through DP World Cargospeed systems, enabled by Virgin Hyperloop One technology.

“DP As a progressive end-to-end global logistics solutions provider with a footprint in more than 45 countries, we

52 OCTOBER 2019

are committed to enabling smarter trade to make a better future for everyone while creating synergies within the energy industry supply chain,” commented Sultan Ahmed Bin Sulayem, DP World Group’s Chairman and CEO. P&O, a DP World company, has a rich marine heritage which spans more than a century, operates a fleet of over 300 vessels globally. Here P&O showcased its premier range of maritime support services for governments, oil and gas companies, suppliers, and service companies operating across the globe.

Topaz acquisition DP World’s recent acquisition of Topaz Energy and Marine for $1.1 billion represents a critical strategic investment that demonstrates its commitment to leadership and excellence in energy logistics. The deal adds substantial scale and complements the operations of P&O’s marine services business, cementing its position as a leading operator in energy sector logistics.

Moreover, P&O, leveraged by the Topaz acquisition, will continue its tradition of innovation by rethinking offshore logistics for oilfields, such as the construction and

design of Module Carrying Vessels (MCVs) to transport modular units to Kazakhstan for installation at a megaproject in the Tengiz field, the sixth-largest oil field in the world.

Topaz has been a leading provider of critical marine logistics and solutions to the global energy industry for some time, operating a modern fleet of 118 vessels, predominantly in the Caspian, MENA, and West Africa regions.

DP World’s stand at WEC 2019 also had access to the groundbreaking futuristic DP World Cargospeed concept, developed through a strategic partnership with Virgin Hyperloop One. This concept has the potential to transform logistics for on-demand shipments through hyperloopenabled systems that offer ultra-fast, sustainable and efficient delivery of palletised cargo.

DP World Cargospeed aims to support the creation of thriving economic regions while delivering freight at the speed of flight but at a cost closer to that of standard trucking. As sustainability pioneers, DP World and Virgin Hyperloop One are developing a system which will be 100% electric and can be powered by renewable energy, creating a more sustainable solution for cargo transport.

Subscribe today September 2019 2019 Issue Issue 61 62 July/August

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BUSINESS OF OF LOGISTICS LOGISTICS ENHANCING THE BUSINESS

ENHANCING THE BUSINESS OF LOGISTICS ENHANCING THE BUSINESS OF LOGISTICS

ENHANCING THE BUSINESS OF LOGISTICS

KINGDOM

CALIBRATIONS THE LOGISTICS INDUSTRY ON A ROLL IN SAUDI ARABIA

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EMAC takes EXCLUSIVE business REPORT MATERIALS HANDLING INDUSTRY mainstream Movement, storage and control solutions to the fore

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Shoring up new investments

Bracing for EXPO 2020 Ready for Lift-Off

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Movement, storage and control solutions to the fore King Abdulaziz Port

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The Techno-Logistics Platform in High Gear Major Maritime Moves

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World Distribution Centre Riyadh Airport Logistics Centre

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Abu Dhabi Ports

Abu Dhabi Ports highlights emerging trends in trade and logistics sectors The Ports Operator recently hosted the Fourth Annual Partners’ Forum to tackle pressing issues and challenges confronting the ports, maritime, trade and logistics sectors.

T

he emerging trends and topics influencing the future of global seaborne trade, their impact on local and regional businesses, and the importance of innovation in shaping the trade and logistics sectors were discussed recently at the Fourth Abu Dhabi Ports’ Annual Partners’ Forum.

The annual gathering brings together a diverse range of stakeholders, partners and customers to discuss the biggest challenges and opportunities facing the trade and logistics sectors. This year’s edition of Abu Dhabi Ports’ Partners’ Forum saw the participation of major UAE government bodies and private sector companies.

In line with the UAE’s commitment to fostering collaboration between the public and private sectors, the 2019 forum was held under the theme of ‘Charting our Future Together’ and attracted a large number of representatives from government entities, international businesses, UAE companies and trade organisations.

The event was inaugurated by Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports, who stressed in his keynote address that collaboration has been one of the foundations of Abu Dhabi Ports’ success.

“The Partners’ Forum continues to grow as we welcome more and more customers and government stakeholders, reflecting the significance of providing industry leaders and business influencers with a platform to exchange knowledge and discuss the latest opportunities in the region,” he remarked.

The latest edition of the forum also featured lively panel discussions on the role

54 OCTOBER 2019

that innovation and smart port solutions can play in the trade and logistics sectors.

The research conducted by Abu Dhabi Ports showed that more than 70% of respondents believe that these sectors in the GCC are more prepared to incorporate automation and smart solutions compared to the global industry.

A section of the panellists included Dr. Adeeb Alafeefi, Director, National Programme for Small and Medium Enterprises (SMEs) at the UAE Ministry of Economy; Ahmed Al Musawa Al Hashemi, Director, Strategy & Marketing, Etihad Rail; Fahad Ghareeb Al Shamsi, Acting Executive Director, Administration Affairs, Abu Dhabi Customs and Ross Thompson, Chief Commercial and Strategy Officer, Abu Dhabi Ports.

Top three innovations It also confirmed that blockchain technology, the ‘Internet of Things’ (IoT) and artificial intelligence are the top three innovations shaping the trade and logistics sectors.

Panel discussions at the forum also focused on the impact of population growth, trade patterns, waste management, ocean pollution, and collaboration to promote business growth.

Panel discussions at the forum also focused on the impact of population growth, trade patterns, waste management, ocean pollution, and collaboration to promote business growth. The research revealed that population growth and efficient management continue to be regarded highly by the trade and logistics sectors.

Over the past few years, Abu Dhabi Ports has made significant strides in harnessing innovative digital solutions for trade and port communities. In 2018, it launched Silsal, a blockchain-based solution aimed at streamlining trade flows and supply chains.

More recently, the company has partnered with Dell Technologies to explore ways to harness the most exciting technologies to make the future of maritime operations and services safer, more efficient, and more sustainable.

Adbu Dhabi Ports: H1-2019 Performance

82.4

% surge in Abu Dhabi Ports’

container volume in H1-2019

Total cargo handled across all Abu Dhabi Ports is up 10% during the first half of 2019 over corresponding 2018 period.

A

bu Dhabi Ports, has reported robust operational performance with significant volume growth in the first half of 2019. The company, which operates ports and terminals across the UAE, as well as Khalifa Industrial Zone Abu Dhabi (KIZAD), said its success was driven in part by concession agreements signed with leading maritime firms, such as Mediterranean Shipping Company (MSC) and COSCO Shipping Ports (CSP).

The agreements have seen an increase in the number of vessels taking advantage of

Khalifa Port’s strategic location and worldclass facilities, as well as significant further investment in advanced technologies and infrastructure.

Container volume at Khalifa Port rose from 620,974 TEU (Twenty-foot Equivalent Unit) in H1-2018 to 1,135,021 TEU in H12019, an increase of 82.4%. This growth was fuelled predominantly through the MSC concession agreement, which was signed last year.

Abu Dhabi Ports anticipates further growth thanks to completion of the CSP Abu Dhabi Container Terminal, which was built in partnership with COSCO Shipping Ports and which began trial operations in Q2-2019, ahead of the start of full commercial operations in Q4-2019.

Operational Results, H1, 2019

1.1million TEUs handled at Khalifa Port

9.7 million tonnes of general cargo across all ports

500

companies in KIZAD

Up by

82.4% Up by

10% Total investments

65

billion AED

321,277 cruise passengers

Up by

35%

ships 129 cruise

calling at Abu Dhabi Cruise Terminal, Fujairah Terminals and Sir Bani Yas Cruise Beach

Up by

38%

“Abu Dhabi Ports is playing a key role in ensuring that our nation is at the heart of trade, industry and logistics” Both agreements are part of Abu Dhabi Ports’ five-year strategy to boost the UAE’s trade and investment flows, and drive the diversification of the UAE economy. As a result, Abu Dhabi Ports will be expanding the capacity of Khalifa Port to 9.1mn by 2024.

The port is capable of handling the world’s largest vessels with two 21,000 TEU mega-vessels, the COSCO Shipping Solar and Pisces, having already called at CSP Abu Dhabi Terminal earlier this year.

Growth despite challenges “Despite a challenging international environment for the trade and logistics sectors in recent years, our industry continues to grow from strength to strength in the UAE. I am delighted that Abu Dhabi Ports is playing a key role in ensuring that our nation is at the heart of trade, industry and logistics in the Middle East,” commented Falah Mohammad Al Ahbabi, Chairman, Abu Dhabi Ports.

“With the commencement of commercial operations at CSP Abu Dhabi Container Terminal and the rejuvenation of Port of Fujairah on track through our joint venture with Fujairah Terminals, we expect our strong growth to continue,” noted Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

In addition to the increase in container volume, Abu Dhabi Ports also witnessed a significant increase in the total volume of cargo handled across its ports, which also include Fujairah Terminals, Zayed Port and Mussafah Port. Total cargo increased to just under 9.7 million tonnes in the first half of 2019, a rise of 10% compared to the same period in 2018.

Provision for Capesize vessels In June, the first fully-laden Capesize vessel to ever call at a GCC port arrived at Khalifa Port after Abu Dhabi Ports modified the approach channels to accommodate Capesize vessels. The channels have been deepened from 16.5m to 18.5m draft and widened from 250m to 280m.

OCTOBER 2019 55

MHME 2019: Review

Materials Handling Middle East 2019 reports

12% hike in visitor turnout Despite challenges and headwinds, reports for the material handling sector forecast double-digit uplift for region’s warehouse automation and e-tail segments

M

aterials Handling Middle East, the region’s dedicated warehousing, intralogistics and supply chain solutions show, witnessed a 12% visitor uplift on the 10th edition of the biennial event which closed at the Dubai World Trade Centre in early September 2019.

A little less than 4000 visitors from more than 50 countries turned out for the show which has evolved into a futuristic showcase of robotics and automation as the regional industry transforms to meet 4th industrial revolution demands.

Close to 100 exhibitors from over 30 nations were demonstrating the latest technological solutions to deliver increased operational and cost efficiency, production capacity growth, speedy customer responsiveness and heightened competitiveness with logistics and materials handling at its core.

These included Japan’s automation provider, Daifuku; Germany’s SSI Schafer; the regional branch of industrial solutions provider, ACME; Kuwaiti transportation logistics giant, Agility; IQ Robotics, the name behind Dubai’s first robotic fulfilment centre, and Swisslog Middle East, a subsidiary of German robot manufacturer KUKA. The show also featured a dedicated Chinese pavilion featuring around 20 of the country’s biggest industry names.

The Chinese presence came in the wake of recent UAE-China accords for US$ 3.4 billion worth of new Belt and Road Initiatives which are bringing the UAE’s

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MHME 2019: Review

logistics location and facilities advantages into sharp global focus.

Industry in transition “The show underlined the major transformation which is now underway throughout the Middle East’s entire materials handling eco-system,” explained Jasmeet Bakshi, Group Director of Other Services at Messe Frankfurt Middle East, organiser of

Materials Handling Middle East.

“We foresee the pace of change picking up given the robust forecasts for the region’s warehouse automation and e-tailing segments which were released on the side-lines of the show’s Supply Chain + Logistics Forum, SCALEX.” The Forum delved into the impact and opportunities arising from the increasing digitization of the industry and the

The Chinese presence came in the wake of recent UAE-China accords for US$ 3.4 billion worth of new Belt and Road Initiatives advanced technologies, including artificial intelligence, big data, blockchain and robotics that are disrupting the sector to improve business efficiencies.

Warehouse automation on the upswing Research and advisory firm LogisticsIQ used the platform to release its report on the regional warehouse automation sector.

It says the sector will attain compound annual growth of 17.5% to 2025 to reach a value of US$ 1.6bn – almost triple today’s US$ 600mn worth. The growth, it says will be driven by rising e-commerce demand.

Meanwhile, a whitepaper by global analysts Aranca, suggests that with ironedout roadblocks and increasing technology take up, the e-tail segment in the Middle East and North Africa could register a compound annual growth of around 25% to 2023 to reach US$ 34bn in value.

“These growth forecasts will have an expansionary impact on materials handling, logistics and warehousing in the region, which, according to analysts 6WResearch, will attain compound annual growth of 5.4% to 2025 reaching a value of US$69.2 billion,” added Bakshi.

And although two years ahead of its next showing exhibitors were eager to secure places at an event at the centre of a high potential region.“We have had quite a few meaningful conversations with perspective clients. This show has that advantage, more qualified customers are coming to us with inquiries and projects. We have spoken to potential customers who have the potential to turn into working projects within a year or two,” noted Navin Narayan, Managing Director, ACME. “It’s important for ACME to show its presence and to showcase new technologies that are in the market. People know what our capabilities are and that is one of the primary reasons why we have become platinum sponsors for the show.”

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MHME 2019: Review

Networking opportunities “We are here to find valuable leads and we have achieved this. It is important to show the market that our company is here and our participation at the exhibition is an important campaign to raise awareness of our presence in the region,” stated Andrey Kras, Account Manager, Daifuku.

The show also hosted the 3rd Materials Handling Middle East Forklift Challenge which saw 41 operators compete in a series of timed trails. Judged on criteria of safety, speed and efficiency, nine operators made it to the finals with Deepak Kataria of team CWT-SML Logistics taking the winner’s honours for the second time in a row.

“I’m very excited to be taking home the win again. As the returning champion from the last contest, I found there was some tough competition this year, but I was for up the challenge,” remarked Kataria.

Materials Handling Middle East, which has attracted several national, pavilions nearly 100 exhibiting companies from 20plus countries.

In conversation with Swisslog’s

Alain Kaddoum

Global Supply Chain engaged Alain Kaddoum, General Manager, Swisslog Middle East at the company pavilion at the Materials Handling ME 2019 venue.

Global Supply Chain (GSC): How significant is Materials Handling Middle East (2019) for Swisslog?

Alain Kaddoum (AK): Materials Handling Middle East (MHME) is the region’s dedicated trade show for warehousing, 58 OCTOBER 2019

intralogistics and supply solutions. It provides a platform to discover the latest tools and technologies in operations management and optimisation.

Being a global leader in robotic, datadriven and flexible automated solutions, we at Swisslog believe that MHME provides us an opportunity to understand the market better and offer the right solutions. It’s important to stay in touch with customers and align with their business needs, know more about their unique requirements in this part of the world.

Exhibitions like MHME give brands direct access to thousands of visitors and stakeholders, set up a platform for the quality networking and support with business generation.

GSC: Why did Swisslog participate in MHME 2019?

AK: As several businesses in the UAE and globally are benefitting immensely from logistics automation and, particularly in the Middle East, we saw an increasing demand for automated logistics solutions in industries ranging from e-commerce and retail, to F&B and pharma. At MHME, Swisslog introduced highly efficient robotised storage and order processing solutions for small parts and pallets that integrate into existing buildings.

Solutions introduced included CarryPick, a flexible and modular AGV-based storage and order picking system designed for multi-channel intralogistics that can fulfil up to 20 orders simultaneously. The system

MHME 2019: Review

adapts to changing customer demands, so businesses have the option of starting small and then expanding flexibly in line with growing volumes by adding more vehicles.

At the exhibition, Swisslog also gave some insights for Autostore, a highly efficient robotised storage and order processing solution for small parts that integrates easily into existing buildings.

AutoStore uses robots and bins to quickly process small parts orders and provides better use of available space than any other automated system available today. Each robot is extremely energy efficient, using just 0.1 kW of energy per hour – six robots use the same energy as a toaster.

Visitors at the expo also learned more about the diverse flexible and costeffective pallet technology solutions for businesses. Some of the brand’s solutions included the high bay warehouse based on Vectura pallet stacker cranes as well as the dynamic PowerStore pallet shuttle system.

Depending on the storage density and throughput requirements of a warehouse, it can handle one, two or more loads in single, double, triple and multi-deep layouts. In high buildings and where land space is limited, Vectura cranes operate at heights up to 50 metres. Vectura is also capable of handling large and unusual loads from car bodies to boats. Vectura brings together the best engineering and pallet stacking knowhow in the industry.

GSC: What were your expectations at MHME 2019 and were these met?

AK: As mentioned earlier, businesses in the UAE and around the world are reaping the benefit of logistics automation. Some examples – automation has more than doubled the current production capacity of Mai Dubai and the fast-growing retail and e-commerce company, Xenos, improved its pick performance by more than 50% and saved 3-4 hours shipment time per delivery per store. Not surprisingly, automation is central to several GCC countries’ future development plans and the region’s logistics market is set to grow at a rate of 7.3% CAGR to a value of $66.3 billion by 2020.

Our objectives, therefore, was to showcase the breadth of our solutions for customers in the Middle East. We design, develop and deliver the best-in-class automation solutions across industries, for businesses of all sizes. Every industry has different logistics and supply chain

The region’s logistics market is set to grow at a rate of 7.3% CAGR to a value of $66.3 billion by 2020

requirements, and through platforms such as Materials Handling, it is our endeavour to share our knowledge and support with automation solutions that can benefit businesses in the region.

GSC: Comment on how the industry is changing / evolving?

AK: With the advent of the Fourth Industrial Revolution, or Industry 4.0, the interactions between humans and machines and between machines and other machines have changed. We are seeing this having a huge impact on the warehouse. With decentralised, networked intelligence, advanced robotics and self-organising processes, the warehouse of the future will take a giant step forward in productivity, flexibility and efficiency.

In the supply chain, Industry 4.0 means SKUs, machines, people and warehouse and business systems are all connected in a way that enables equipment and processes to continuously reconfigure themselves

to optimise throughput, productivity and efficiency as conditions change.

The Middle East is gearing up to take advantage of digitisation in a big way, and we are seeing companies in the region making real investments for real results today. A report by PwC Middle East says that 41% of participants surveyed from the region say they have already reached an advanced level of digitisation and integration and over 62% expect to be at such a level in five years’ time. Compared to other countries around the world, that is an unusually high level of digitisation.

We are seeing an increasing demand for automated logistics solutions in the following industries -e-commerce and retail, F&B and pharma. For example, according to a report by Fitch Solutions, by 2020, the UAE e-commerce sector will be worth US$17.8 billion, or 45.6% of the total value of the Middle East market. Similarly, by 2020, the GCC F&B market size is OCTOBER 2019 59

MHME 2019: Review

In conservation with IQ Robotics’

Fadi Amoudi expected to expand at a CAGR of 9.2% to reach US$34 billion. We expect to see business growth arising from these sectors.

Technology is and will continue to be a truly disruptive force in how the modern supply chain is shaped, defined, and explored. From basic improvements like streamlining operations and increasing process efficiency to fully automating delivery trucks, technology is enabling much smarter and simpler supply chain management. In the future, companies will leverage new and innovative technologies to create a self-orchestrated supply chain and previously unimaginable efficiencies.

Automation is now a key driver for the full spectrum of industries, including e-commerce.

Fadi Amoudi, Founder and CEO, IQ Robotics, spoke exclusively to Global Supply Chain on the sideline of Material Handling ME / SPS 2019.

Global Supply Chain (GSC): How significant is Materials Handling Middle East (MHME)/ SPS Automation (SPS) for IQ Robotics?

Fadi Amoudi (FA): Materials Handling Middle East 2019 was exceptionally important as it was where IQ Robotics, 60 OCTOBER 2019

our technology arm and fully robotic business that’s spearheading the digital transformation of the logistics sector, was launched for the MENA region. We had the privilege of presenting our technology to thousands of visitors and investors from around the world, including HE Matar Al Tayer, Helal Saeed Almarri, Director General, Dubai Tourism and Commerce Marketing (DTCM).

GSC: Why did IQ Robotics participate in MHME 2019?

FA: IQ Robotics addresses a vital market requirement, especially as the region focuses on digital transformation. Our participation was based on our aim to showcase the technology we operate with and the revolutionary concept that is the first of its kind in the Middle East.

We also wanted to share our knowledge and expertise in robotics, warehouse automation, and supply chain management as well as in software (WMS/OMS/TMS), package protection, and dimensioning solutions.

GSC: What were your expectations at MHME 2019 and were these met?

FA: With our team of international and local experts that are directly involved in the customer journey, we sought to gain a deeper insight into the market and gain access to potential clients whom we can support. In that regard, our expectations were more than met, and we would certainly take part in future iterations of the exhibition.

GSC: A comment on how the logistics automation industry is changing/ evolving?

FA: As e-commerce volumes soar, many logistics and parcel companies look towards automation industry for the answer.

Regional entrepreneurs and business owners across a spectrum of industries are slowly transforming their businesses and integrating automation and robotics in their systems, presenting us with a robust opportunity to bridge the gap between the speculative and the actual. We offer and educate interested parties with solutions that will help transition their businesses to a new technological age.

GSC: Comment on the new product introductions and technologies unfurled at MHME 2019?

FA: All the technologies we showcased at MHME were modern and advanced, including robots, warehouse automation, G5 bridge conveyor belts, intelligent sorters, software solutions (WMS, OMS, TMS), package protection, slam navigation labellers, dimensioning solutions and many more.

We are not only offering advanced products but also the transfer of knowledge that is vital for the success of interested parties; we are here to support them with their journey of transformation.

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