October 2021 Issue 84
ENHANCING THE BUSINESS OF LOGISTICS
INTRODUCING
SupHub The Supply Chain Catalyst More on pages 2–3
GWC Qatar
Powering Logistics
LogiPoint Reflections Power of Communications
MyCrane
Debuts in Dubai
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What is SupHub?
How is SupHub a Catalyst?
SupHub is a multiplatform SupplyChain application which will help companies:
It’s mere presence in your team will facilitate and simplify critical business processes without inter facing with company systems.
SupHub will be a community of companies and professionals in the SupplyChain industry across all business functions; SupplyChain, Finance, Procurement, Sales, Marketing, etc.
Users can raise ‘RFQ’s or post ‘Sell’ offers via the app, to their desired audience of business categories and companies without cumbersome processes and formalities.
The User invitation process will ensure Users are authentic and relevant to the functionality of the app.
SupHub Key Functionalities of SupHub
Raise an RFQ to multiple suppliers at one go.
Post a ‘Sell’ offer to multiple customers at one go.
Access a large number of potential suppliers.
Access a large number of potential customers.
Go to ‘Workspace’ in the menu and follow the steps.
Go to ‘Workspace ’in the menu and follow the steps.
Precision targeting for your advertising
Instant PR resource for your company
Captured target audience
Communicate directly with the community.
Most competitive pricing in Social Media
Share ideas, opinions, thoughts etc.
Let’s get started
Mohammed Abdullah
Android QR Code
IOS QR Code Scan the QR code to download the APP.
You will be registered as a Guest User
Go to the SupHub Pyramid and learn about the User types.
Then go to ‘Contact us’ to request a ‘Master User’ invite
Warehousing: Watershed Moment
SIGNATURE MEDIA FZ LLE P. O. Box 49784, Dubai, UAE Tel: 04 3795678 Email: info@signaturemediame.com Exclusive Sales Agent Signature Media LLC P.O. Box 49784, Dubai, UAE Publisher: Jason Verhoven jason@signaturemediame.com Editor: Malcolm Dias malcolm@signaturemediame.com Art Director: Johnson Machado johnson@signaturemediame.com Production Manager: Roy Varghese roy@signaturemediame.com
Printed by United Printing Press (UPP) – Abu Dhabi Distributed by Tawseel Distribution & Logistics – Dubai
Contributor’s opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this magazine is accurate and timely, no liability is accepted by them for errors or omissions, however caused. Articles and information contained in this publication are the copyright of Signature Media FZ LLE & SIGNATURE MEDIA LLC and cannot be reproduced in any form without written permission.
The global Warehousing Industry is well and truly experiencing its turning point moment. The Covid-19 era has both turned the heat and put the spotlight on the warehousing sector, putting it on a war footing. In the present context, warehousing is now at the crossroads with technology and digitization expected to revolutionize the business. From raw material tracking, finished goods, secured storage, inventory management to distribution and customer service, the place and priority of warehousing in the supply chain of product and service-based firms is undeniably important and key to maintaining an efficient, agile and streamlined processes. To begin with, a warehouse is a commercialized building or real estate used for the appropriate storage of goods and handling of general cargo. A standard warehousing is often configured with technological tools for the facilitation of records and inventory of goods as well as making them available on-line through competent systems and professional practices. Warehouses vary in sizes, capacity and operational methods. For example some warehouses are built and designed to handle heavy-duty equipment and general cargoes. Some others are specially planned for the storage of food, drugs (vital supplies in pandemic times) and chemicals for instance. Warehouses private, public or bonded, may be owned, rented or leased A Warehouse Management System (WMS) is critical to running a warehouse and distribution middle due to the performance and accuracy it brings to a shipper’s supply chain. Warehouse control structures have evolved from an inventory management device to a should-have due to the data, functionality, efficiencies, and capability to plug in additional warehousing technology that allows an organization to massively improve its abilities. Taking a cue from this and in view of the upcoming FIFA World Cup Qatar 2022, Global Supply Chain exclusively interviewed M. Ranjeev Menon, Group CEO, Gulf Warehousing Company, the leading provider of logistics and supply chain solutions in the State of Qatar. Established as a Qatari shareholding company in 2004; the company offers the full spectrum of highquality solutions to a variety of multiple industry verticals. Furthermore we also engaged with Bijay Oram, Director, Supply Chain & Logistics Practice, Frost & Sullivan, for his insights on the role and significance of warehousing in the wider logistics and supply chain landscape. Elsewhere in this edition we have expanded coverage—features, reports, interviews and commentary on several other industry-related subjects. We also believe in constructive engagement; so please feel free to write or contact me at my email address below with your remarks, feedback and observations. Happy reading! Malcolm Dias Editor malcolm@signaturemediame.com OCTOBER 2021 5
AL GHURAIR AUTOMOBILES
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October 2021 Issue 84
NEWS
Up to date news of the Global Suppy Chain industry
LogiPoint Reflections
Saudi Arabian LSP’s Waleed Al Khayyat muses on his mission.
Swisslog-IKEA
IKEA Zagreb’s store implements Swisslog’s Micro Fulfillment concept.
GENAVCO-Materials Handling Solutions Exclusive interview with Varun Viswanath, Sales Manager & Team Lead, GENAVCO.
GWC-Qatar
Special interview with M. Ranjeev Menon, Group CEO, GWC, in the run-up to the FIFA World Cup 2022.
Warehousing Insights
Bijay Oram, Director, Supply Chain & Logistics Practice, Frost & Sullivan, shares his insights.
ACME
Acme empowers warehouses with ColourPicking automation technology.
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Gulftainer-GSSCO
GSCCO launches expansion plan worth US$ 50mn at Saudi Arabia’s Jubail Port.
CHEP-Carrefour
Carrefour deploys CHEP’s pallet pooling system across all of its warehouses.
DP World
A round-up of the latest developments at DP World.
Almajdouie de Rijke
The Saudi Arabian LSP commemorates its 15th Anniversary.
DHL
DHL Mobile MEA Innovation Centre set for launch in Dubai.
Etihad Rail
Etihad Rail completes major construction works
MyCrane
Digital Crane rental company debuts in Dubai.
Moved by people qrcargo.com
Chevron partners with Tristar (AML) in a manufacturing agreement in East Africa n Chevron Brands International (Chevron) and AFAL Manufacturing Limited (AML) of the Tristar Group have signed a long-term license agreement encompassing production, distribution, and marketing of CaltexTM lubricants in Kenya, Uganda, Tanzania, Rwanda, Burundi and Democratic Republic of the Congo (DRC). With the signing of this agreement, Chevron has strengthened its already growing presence in East Africa and entrusted its operations to AML as a licensee. Caltex branded lubricants have been available in East African countries since 2013 through a distributor agreement with Africa Fuels & Lubricants Ltd (AFAL), also of the Tristar Group. Chevron will provide its world leading technology, and AML will blend,
market, and distribute Caltex branded lubricants through its extensive network. The relationship seeks to leverage the synergy of Caltex’s strong brand strength and AML’s extensive market reach to successfully carve out a share in the competitive East Africa lubricants market. “Chevron has a history in East Africa spanning seven decades and we have collaborated with AFAL since 2013. This new agreement also includes lubricants blending options for future expansion,” remarked Douglas Rankine, GM Middle East & Africa-Fuels & Lubricants. “We are confident that local blending
is a move in the right direction for this business to remain competitive, and we will spare no effort to strengthen the position of the Caltex brand in East Africa,” asserted. Eugene Mayne, Tristar Group CEO. With this strategic relationship, Chevron and the Tristar Group are investing more towards meeting an ever-growing demand for Caltex branded lubricants, which cover the consumer, commercial and industrial sectors across the East African region.
Oryx Mix orders 10 new K440 Renault Truck Mixers n Renault Trucks has announced another fleet deal for the delivery of ten heavy-duty construction trucks to one of the UAE’s leading concrete suppliers, Oryx Mix, to handle concrete industry requirements across the Northern Emirates. The ten Renault Trucks are additional to the company’s existing fleet of 240 units. The K 440 P8x4 Rigid Chassis models, equipped with 12 CBM transit concrete mixers and supplied by Renault Trucks’ partner United Diesel, will help to optimise local operations as a result of their functionality and fuel efficiency, the company said in a press statement. Oryx Mix’s new models will ease operations and increase efficiency, and at the same time deliver the highest levels of safety for its drivers. Every detail of the K 440 model is designed to meet the needs of Oryx Mix’s operations, by optimising business activities and productivity and
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maximising profitability. “The trucks, which feature a comfortable cabin for the driver and holistic safety features, will be used for concrete mixing and further operations by Oryx Mix,” commented Mohamed Abdullah Al Faihan, Deputy, CEO, Oryx Mix. “We are proud to see a major national operator recognising the reliability, efficiency and safety of the Renault
Trucks, and our consistently high-quality service, by trusting us,” remarked Guillaume Zimmermann, Commercial Director, Renault Trucks Middle East. “This deal serves as testament to United Diesel’s continued commitment to ensuring the highest quality of aftersales services for our clients,” observed Mike Mokhles Makary, General Manager, United Diesel.
Fujairah Joins Advanced Trade and Logistics Platform
n Maqta Gateway, the digital arm of Abu Dhabi Ports, recently announced the inclusion of the Fujairah’s trade and logistics ecosystem within the Advanced Trade and Logistics Platform (ATLP). The announcement was officially made by HH Sheikh Mohammed Bin Hamad Bin Mohammed Al Sharqi, Crown Prince of Fujairah. As part of a long-term AED 1bn (US$273mn) investment programme, the expansion works have greatly improved the facility’s capacity and capabilities in handling different types of cargo and larger vessels, while also strengthening its role as a major trade hub connecting Gulf Cooperation Council (GCC) countries, India, the Red Sea, and East Africa. “Our new link with the Advanced Trade and Logistics Platform, which aims to
interconnect all trade and logistics across the country’s air, land, sea, industrial and free zones,” affirmed HE Sheikh Eng. Mohammed Bin Hamad Bin Saif Al Sharqi, Director, Fujairah’s eGovernment Department. Developed and operated by Maqta Gateway under the supervision of Abu Dhabi Department of Economic Development (ADDED), ATLP’s phased adoption over key milestones is expected to accelerate the development of trade in the emirate, standardise information exchange and messaging, increase security, and predictability through increased transparency. “The integration of Fujairah’s trade and logistics ecosystem into ATLP is a key step in the emirate’s economic development,” remarked AbdulAziz Al Balooshi, CEO, Fujairah Terminals.
Aramex Kuwait expands its facility in Agility Logistics Park
n Agility recently announced that the leading global provider of comprehensive logistics and transportation solutions, Aramex has selected the Agility Logistics Park (ALP) in Sulaibiya as the location for its new 16,000sqm e-fulfillment center in Kuwait. The opening of the new ARAMEX warehouse was attended by HE Dr. Matar Al-Neyadi, the UAE Ambassador in Kuwait; Eng. Nader Sakeen, CEO, ALP Kuwait and GCC, Fadi Kikoloff, General Manager, Aramex Kuwait along with senior executives from both companies. Aramex’s new facility will be housed in Agility’s recently completed multi-customer logistics warehouse, which was developed by ALP. The facility is the largest logistics warehouse in Kuwait, and was built to meet customer requirements. The warehouse complex provides Aramex Kuwait with the necessary infrastructure and services needed to meet its customers’ needs across the country and the GCC. The new state-of-the-art Aramex facility will help the Company expand and grow its e-commerce fulfillment business, which involves movement of different types of consumer goods and products. Using the latest equipment and technology, the logistics warehouse will operate the latest version of INFOR WMS 10.4, RFID tags and gateways, automated conveyor belts and sorting machines, all of which are geared towards faster and more efficient operations, the press statement continued. “The built-to-suit warehouse is tailored to customers’ requirements and is move-in ready, enabling fast deployment, flexibility and reduced capital commitments,” commented Engr. Sakeen. “The facility’s cutting-edge technology strengthens our position by ensuring higher capacity, faster sortation process and reduced transit times,” remarked Kikoloff.
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New appointments made at ALSTOM AMECA n Alstom has appointed new members to its Africa, Middle East, and Central Asia (AMECA) leadership team, as part of the Group’s efforts to strengthen its regional presence. Sacha Parneix has been appointed as Vice President of Sales & Marketing for the AMECA region. Sacha was most recently Chief Commercial Officer at GE Steam Power, in which he was accountable for all systems, equipment and services. He joins the Alstom team with over 30-years of extensive experience in hightech, innovative organizations across the electricity sector (ABB, Alstom Power, GE) as well as transportation industry. Dana Salloum has been appointed as Vice President, Communications, External Affairs, and CSR for the AMECA region.
Dana joins Alstom with over 18 years of experience in the field. Dana will lead a team of communications directors across the region in support of the company’s commitment to be the leader in sustainable and smart mobility globally. “The AMECA region has extraordinary potential. I am excited to welcome Sasha Parneix and Dana Salloum to my leadership team. We have a strong regional team ready to address growing mobility and self
sustaining transportation ecosystems”stated Andrew DeLeone, President, Alstom AMECA. Alstom operates in 77 countries and has offices in 28 locations across AMECA, a press communiqué concluded.
Blue Yonder enables NUPCO drive its goals to deliver affordable medical supplies n The National Company for the United Procurement of Medicines, Devices and Medical Supplies (NUPCO), a health care supply chain entity serving the Kingdom of Saudi Arabia, has now successfully implemented several digital supply chain solutions with Blue Yonder. Fully owned by Saudi Arabia’s Public Investment Fund (PIF), NUPCO is the leading provider of medical procurement, storage, and distribution services for medicines, devices, and medical supplies to 400 hospitals in the Kingdom. To achieve its goals related to Vision 2030, NUPCO is working with its hospitals and suppliers to advance toward supporting a new business model and new approach to healthcare, all through the power of integrated technology and connectivity, the company said in a press communiqué. The company was looking to move from manual to digital planning processes and to utilize a single Warehouse Management System (WMS) to unify the operations of all its warehouses. The company is therefore leveraging Blue
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Yonder’s Luminate Planning Portfolio and Warehouse Management System (WMS). With Blue Yonder, NUPCO will now be able to provide low-touch statistical forecasts for all hospitals and increase collaboration with these customers; offer long-term visibility into demand and inventory for planning purposes, increasing customer satisfaction and improve collaboration between internal stakeholders to determine optimal demand and supply plans for hospital customers, according to a press
communiqué. “Blue Yonder stood out as the one supply chain solutions provider who understood our needs and could provide these end-to-end capabilities on a single platform,” said Fahad M. AlButhi, Chief Operating Officer, NUPCO. “We are looking forward to continuing the relationship with NUPCO as they continue to seek out and implement additional solutions to meet their vision,” commented Johan Reventberg, EMEA President, Blue Yonder.
Maersk sets up its first Warehousing & Distribution facility in Jafza
n Maersk Kanoo UAE, an integrator of container logistics, recently signed an agreement with DP World’s leading trade and logistics hub, Jebel Ali Free Zone (Jafza) to set up its first Warehousing & Distribution (W&D) facility in the UAE. The agreement was signed by Christopher Cook, Managing Director, Maersk UAE and Abdulla Bin Damithan, CEO & Managing Director, DP World– UAE Region & Jafza, at the Maersk West & Central Asia regional headquarter in Dubai. The 10,000sqm facility will be located within Jafza in Dubai. With its new W&D facility, Maersk
is taking an important step towards building a truly integrated solution for its customers wherein the customers will get a single window access to multiple logistics requirements, not only for the goods flowing in and out of UAE, but also to other Middle Eastern countries who use Dubai as a gateway to global trade, according to a press communiqué. “In today’s times, adding flexibility to their supply chains has become more crucial than ever. To that end Maersk is taking a solid step in this direction with the announcement of our first W&D facility in the UAE,” noted Cook.
“This move is building on the legacy of DP World and Maersk, and we look forward to extending our support through their journey with us,”commented Bin Damithan. Maersk’s new W&D facility in Dubai will be an addition to the existing global footprint of over 250 warehouses that cover 1.5mn sqm. across 50 countries. The facility will offer a total storage capacity of 80,000cbm and cater to various types of goods across sectors such as petrochemical, retail & lifestyle, fast moving consumer goods (FMCG), technology and automotive amongst others, a press statement concluded.
Unique drone-based Transportation and Logistics Company launched in Abu Dhabi n In a joint venture partnership between Ethmar Holding, APEX Al Wataniya Logistics and Averro Technology, SkyGo has been established to become a unique transportation company specialised in using the latest drone technologies, launched from Abu Dhabi. This move comes in line with efforts aimed at innovating new solutions based on the latest technologies to overcome challenges facing the transportation and
delivery services sector, the company said in a press statement. SkyGo aims to disrupt logistics and the supply chain by providing faster, cost-effective, safer, and sustainable alternatives, and will start with a 40-station network supporting the healthcare sector in 2022, providing a more streamlined healthcare delivery service across the city, the statement continued.
“SkyGo is an Abu Dhabi-based disruptive technology company providing logistics and supply chain solutions by drones. In the next phase, our plan is to expand to other sectors locally and regionally, which will be announced soon, and provides the best air transport services using Unmanned Aerial Vehicles-UAVs,” affirmed Sultan Al Dhaheri, Executive Board Member, SkyGo.
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AD Ports Group and Aqaba Development Corporation sign maritime agreement n AD Ports Group recently signed an agreement with Jordan’s Aqaba Development Corporation that will see AD Ports Group take on the establishment of a state-of-the-art cruise terminal at Marsa Zayed in Aqaba. It will be the first facility to be developed by AD Ports Group in the Hashemite Kingdom of Jordan and its first cruise facility outside of the United Arab Emirates. The new terminal will serve as a gateway in the Port of Aqaba that will receive cruise ships passengers visiting the Red Sea, in addition to serving as a major attraction for the residents of Aqaba with a wide range of tourism, commercial, and entertainment services. The agreement was signed during a visit by a senior delegation from the Hashemite Kingdom of Jordan headed
by Eng. Nayef Ahmad Bakheet Altheeb, Chief Commissioner, Aqaba Special Economic Zone Authority to Abu Dhabi and is the first of a series of strategic partnerships with AD Ports Group. “The creation and operation of a new cruise terminal at Marsa Zayed will be a milestone for Jordan’s fast-growing cruise and tourism sector and is the first of many enhancement projects that we have
planned,” remarked Captain Mohamed Juma Al Shamisi, Group CEO, AD Ports Group. “Developing the cruise terminal in Aqaba will significantly support the growth of the tourism sector in the Kingdom, which will expand of the scope of onsite facilities and services,” stressed Hussein Alsafadi, CEO, Aqaba Development Corporation.
SAL and Gulf Air sign 7-year Cargo Logistics Partnership Agreement n SAL, Saudi Logistics Services Company, recently signed an agreement with Gulf Air, the Kingdom of Bahrain’s National Carrier, to provide ground handling solutions to their fleet at all KSA main airports. In a press communiqué, the Saudi company said that this long-term 7-year agreement is another step towards enhancing the expansion plans and strategic relations with diverse airlines with high cargo operational capacity. “This agreement represents years of mutual cooperation in both passenger and cargo flights with Gulf Air, and that the Bahraini leading airline will benefit from SAL’s wide range of logistics services and offerings,” affirmed Hesham Alhussayen, CEO, SAL. He further highlighted the pivotal role SAL plays in facilitating cargo movement at all main airports where the company utilizes its full logistic capacity to effectively serve airlines through its full-fledged modern facilities according to
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high international standards. Captain Waleed AlAlawi, Acting Chief Executive Officer, Gulf Air, welcomed the partnership and noted that such agreements will strengthen its presence and expansion into important markets in the Kingdom of Saudi Arabia. SAL is a specialized ground handling company and in 2020 only it handled a total of 900,000kg for Gulf Air in all main
airports in the Kingdom of Saudi Arabia. SAL provides premium ground handling services for multiple airlines at Saudi Arabia’s local airports and logistic support with cargo chain solutions. The company also connects all means of transportation with regional airports to make a significant contribution to ‘Saudi Vision 2030’ and transform the Kingdom into a global logistics hub.
Etihad Water and Electricity advances Digital Roadmap to enhance customer experiences n Etihad Water and Electricity (Etihad WE, formerly known as FEWA for Federal Electricity and Water Authority) recently announced it is embarking on the next phase of its digital transformation journey with global technology company SAP to optimize experiences for more than 1.3mn persons in the UAE. As part of its digital transformation roadmap, Etihad WE will move all its business process workflows to SAP cloud in the UAE. This will help Etihad WE to achieve better levels of customer experience, optimize asset management and additional business processes, whilst promoting environmentally sustainable development. Owned by the Emirates Investment Authority, Etihad WE, which provides electricity and desalinated water to the Northern Emirates, has already installed 30,000 smart metres, with the goal of installing 350,000metres in the near future. Customers will be gaining real-time information and proactive alerts on consumption levels. “Thanks to our digital transformation with SAP, we can use real-time data to enhance customer satisfaction, manage assets & network optimally, increase automation, enhance employee experience & productivity, achieve economic growth, and support environmental sustainability,” affirmed Mohammad Saleh Abdulwahed, Director-General, Etihad WE. As part of the transformation, Etihad WE will transition from the current SAP business suite to S/4HANA on SAP cloud, leveraging in-built artificial intelligence (AI) and machine learning (ML) capabilities. “Etihad WE’s digital transformation shows how an Intelligent Enterprise can reinvent electricity and water provision to enhance the lives of hundreds of thousands of customers,” said Zakaria Haltout, Managing Director, SAP UAE.
SPARK gives energy investors access to global markets in alliance with Hutchison Ports
n King Salman Energy Park (SPARK) and Hutchison Ports recently announced the signing of a shareholders’ agreement for the formation of a joint venture to manage and operate the dry port and bonded logistics zone in the SPARK energy industrial city. Designed to ensure ease of access to global markets, the threesquare-kilometre dry port will enable the future joint venture to capture the growing demand for logistics services for energy-related products in the Middle East and beyond while also serving the neighboring industrial cities. SPARK is a sustainable, global energy hub in Saudi Arabia’s Eastern Province. The mega project, which spans over 50sqm, is a manufacturing, service center and logistics hub for the energy sectors and is an integral part of the Saudi Vision 2030. SPARK will create significant employment, further diversify the economy, and attract additional foreign investment into the Kingdom. “Hutchison Ports is a world class ports and terminal operator and the logistic hubs will also serve the Kingdom’s Eastern region and its industrial cities. It will also help us fulfill our IKTVA promise to the Kingdom of Saudi Arabia and the world by giving local manufacturers the physical infrastructure they need,” affirmed Mohammed Y. AlQahtani, Chairman, SPARK. “As the world’s leading port group, we will leverage our logistics expertise to create value and competitiveness for the tenants of SPARK,” commented Eric Ip, Group Managing Director, Hutchison Ports. “The dry port and logistics zone will be the key to unlocking the potential of our strategic location in the Eastern Province of Saudi Arabia, a region which is known for its vast oil and gas resources. We are excited to work with Hutchison Ports to help connect our investors to the world, allowing them to operate efficiently and save on transport times and costs,” asserted Saif Al Qahtani, President and CEO, SPARK. SPARK’s first phase is divided into a number of clusters: logistics zone, industrial hub, business district, digital hub, and residential and commercial areas. The dedicated three-square-kilometre dry port and logistics zone will include warehouses and storage facilities, a bonded area and on-site customs clearance.
OCTOBER 2021 13
Savoye reports an increase in demand for sustainable supply chain products in H1-2021 n Savoye, a global provider of complete supply chain solutions, recently announced that a growing number of sustainability-conscious clients are contributing to the increase in the demand for its eco-friendly technology products and software in the first half of 2021, compared to the same corresponding period last year. Among the top performers within Savoye’s suite of solutions is ODATiO, a supply chain execution software that combines Warehouse Management System (WMS) and Transport Management System (TMS) to provide seamless and efficient supply chain management as well as its JIVARO packing machine that adjusts the carton to the contents leading to reduction in shipments, the company revealed in a press communiqué. “Sustainability is now taking the centre stage in the global supply chain industry. The increase in the demand for sustainable supply chain solutions during the first half of this year has shown that our eco-friendly approach is being appreciated by many,” asserted Frédéric Zielinski, Managing Director, Savoye Europe, Middle East, and Africa. Today, various companies and organizations are shifting to more sustainable supply chain technologies. According to studies, 65 to 95 per cent of a company’s total carbon dioxide emissions come from suppliers, while reports from last year confirm that 33 per cent of consumers are looking for sustainable products and practices among supply chain groups and companies, the press statement continued. Advanced warehouse and transport management solutions offered by Savoye are designed to optimize the supply and delivery of products while minimizing unnecessary resource expenditure.
Natural Gas to play pivotal role in powering the UAE’s future economic n Natural gas is set to play a pivotal role in powering economic growth in UAE over the next 50 years, according to HE Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO, Abu Dhabi National Oil Company (ADNOC). “The ‘Principles of the Fifty’ is a mandate for progress driven by 10 guiding principles aimed at making the UAE the most dynamic economy in the world. Gas will play a pivotal role in this blueprint for growth, as the essential fuel stock for our downstream hub in Ruwais and our industrial joint venture, TA’ZIZ,” Dr. Al Jaber said in a virtual address to the recently concluded GASTECH 2021 in Dubai.
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“In 1973, at the direction of Sheikh Zayed Bin Sultan Al Nahayan, the Founding Father of the UAE, ADNOC stopped burning the associated gas from all its operations, and instead captured it and shipped it. We turned an environmental liability into a commercial opportunity. From that moment, when it came to gas, we never looked back,” asserted Dr. Al Jaber. Dr. Al Jaber pointed out that the country was the first in the region to stop flaring and find economic uses for gas, the first to build a liquefied natural gas (LNG) plant, the first to produce ultrasour gas at an industrial scale, and the first to store carbon dioxide (CO2) and use it in enhanced oil recovery (EOR) to liberate more gas.
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Equine champions fly home on Emirates SkyCargo n An Emirates Boeing 777 freighter recently transported 40 horses from Tokyo’s Haneda Airport to Belgium’s Liege Airport. This was the last of the 16 flights that Emirates SkyCargo operated to transport champion horses between Liege and Tokyo, bringing to a successful close one of the largest horse charter movements in the history of air transport. “Emirates drew upon our extensive experience flying horses for sporting events across the world for the last two decades to operate the 16 flights between Liege and Tokyo,” stated Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Emirates SkyCargo transported 316 horses on eight flights from Liege to Tokyo and 323 horses on an equal number of flights for the return journey over a period of seven weeks from July to September 2021.
The 16 flights were operated by three Emirates Boeing 777 freighters in a high density configuration (A6-EFG, A6EFH and A6-EFK) allowing for between 9 and 11 grooms to fly with and look after the equine guests on each flight. In all, 157 grooms flew on the charter flights between Liege and Tokyo. A total of 60 Emirates flight deck crew operated the 16 horse charter flights. The air cargo carrier also transported 336 horse stalls, more than 160 tonnes of special equipment and food and drink for the equine champions on its flights. Emirates is one of the world’s leaders in air transportation of horses for sporting events. The carrier has developed Emirates Equine, a specialised product for the calm and comfortable transportation of horses on its Boeing 777 freighter aircraft which complies with IATA Live Animal Regulations (LAR) and all other applicable guidelines.
Mai Dubai launches fastest bottled water production line in the region n Mai Dubai, the leading bottled water company fully owned by Dubai Electricity and Water Authority (DEWA), recently made a landmark milestone with the launch of the fastest bottled water production line in Asia, Oceania, and Africa (AOA) region. Saeed Mohammed Al Tayer, MD and CEO, DEWA, Mai Dubai’s gamechanging water line, which was completed in collaboration with Sidel, leading provider of equipment and services solutions for packaging, a press communiqué stated. The newly opened facility leverages Sidel’s state-of-the-art ‘Super Combi’ technology to produce a maximum output of 86,000 bottles per hour. Mai Dubai is going to capitalise on this toplevel performance to expand its bottled water business and cement its lead in the industry. “Our mutually supportive partnership comes with numerous advantages that
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will ultimately benefit all our stakeholders, who include the wider members of our society,” commented Al Tayer. “Innovation has allowed us to keep up with the changing preferences of our consumers and be one step ahead of the competition,” remarked Alexander van‘t Riet, CEO, Mai Dubai.
“The launch of the region’s fastest water bottling line at the Mai Dubai plant in Dubai is testament to the collaboration between two organizations coming together to enhance operational efficiencies and productivity,” commented Harbinder Kathuria, Vice President Sales, Middle East, Africa & India, Sidel.
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US$ 30mn Raysut Cement Duqm plant to be on stream by Q4-2021 n Raysut Cement Company (RCC), Oman’s largest cement manufacturer with global footprints recently said that its US$ 30mn Duqm grinding unit in Oman will be on stream in Q4-2021. “Duqm plant will add another 1 million tonnes to our capacity, helping us cater to Oman and other regional markets with increased supplies, where construction activity is poised to pick up in post-pandemic resurgence,” stressed Joey Ghose, Group CEO, RCC. The Duqm plant will raise RCC’s annual group output to 7.4mn tonnes, and help the company raise output to 10mn tonnes by 2022. Yousef Ahmed Alawi Alibrahim, Chief of Support Services and Business Development, RCC, said the Duqm grinding unit’s construction has been progressing despite the pandemic situation, thanks to the prudent safety and health protocols in place. The Duqm plant is also a milestone project for RCC to scale up its output to 22 million tonnes in the near future. As part of developing the Duqm plant, RCC had signed a land lease and Port of Terminal services agreement with Port of Duqm Company SAOC. The new grinding unit will also complement RCC’s expansion and new investments and acquisitions in Oman, Asia and East Africa. Last year, RCC had acquired Sohar Cement Company in Oman at US$ 60mn. It is also developing a new green field 1.2mn tonnes per annum cement plant near Tbilisi, Georgia, at an investment of US$ 200mn. A majority takeover of LafargeHolcim’s cement terminal in Maldives and an investment of US$ 40mn in a grinding unit in Berbera, Somaliland, are other RCC projects.
18 OCTOBER 2021
Etihad Airways signs landmark deal with Amadeus to introduce nextgeneration travel technology n Etihad Airways is set to embark on a major digital transformation following the signing of a landmark multi-year deal with Amadeus. As part of the deal, Etihad Airways will implement the full Amadeus Altéa PSS suite, including web booking, revenue management and merchandising, data management and passenger servicing solutions. These technology products will be customised for Etihad over the coming years and will improve the experience of guests, staff, travel agents, Etihad Guest members, and corporate customers, according to a press release. Etihad’s guests will see new web and mobile channels powered by Amadeus Digital Experience suite, offering the simplest user experience possible
to purchase flight tickets and manage bookings. To modernise retailing capabilities across sales channels, Etihad has also signed for Amadeus Altéa NDC (New Distribution Capability) and will work with Amadeus to distribute personalised travel offers to guests. “With Amadeus as a partner, Etihad’s guests will be able to enjoy the best user experience possible as they book and manage their flights, with the ability to customise their travel to an unprecedented level,” remarked Mohammed Al Bulooki, COO, Etihad. “As the travel industry rebuilds, we are excited that Etihad Airways will be utilising Amadeus’ technology to support the airline in delivering its leading travel proposition,” said Decius Valmorbida, President, Travel, Amadeus.
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Uzbekistan joins World Logistics Passport n In a boost to its global trade networks and partnerships, Uzbekistan has recently joined the World Logistics Passport (WLP) as a Gateway. The signing event took place in Tashkent and was attended by HE Abdulla Bin Touq Al Marri, UAE Minister of Economy; HE Sardor Umurzakov, Deputy Prime Minister and Minister of Investment and Foreign Trade, Republic of Uzbekistan and Mahmood Ahmed Al Bastaki, Chief Operating Officer, DT World and General Manager, WLP. The WLP is a global, private sector-led initiative designed to smooth the flow
of global trade, unlock market access and provide economic efficiencies to members. With its global presence, it is providing benefits to members such as priority handling and faster clearance, thereby helping to reduce supply chain costs and increase trade volumes, according to a press release. The Government of Uzbekistan will be on hand to facilitate and support traders in Uzbekistan to register as WLP members, the statement concluded. “Our programme helps countries grow their economies and create jobs by boosting trade and making their products
Veolia Water Technologies: Growth in mobile water services n Veolia Water Technologies, a subsidiary of the Veolia group and leading specialist in water treatment, has continued its investment in its mobile water services offering through the development and construction of a new regeneration and recycling service centre and mobile assets in Dammam, Eastern Province, Saudi Arabia. The unique facility will regenerate and recycle the resins used in the mobile water treatment process, a key sector of activity for Veolia, the company said in a press communiqué. The new Damman service center is another key expansion of the company’s mobile water services and demonstrates its commitment to invest to support its Impact 2023 strategy. The location will grant access to regional industrial manufacturing, supporting customer operations throughout the Kingdom as well as Qatar, Oman, Kuwait, Bahrain and Egypt, providing them with long-term value and support through local access to this flexible and innovative service. “This service center enables us to bring our unique innovative service to support our customers in the region with mobile water treatment technologies and expertise anytime and anywhere,” commented Mark Dyson, VP, Veolia’s Mobile Water Business. “Damman is the perfect base to do it from and this investment will ensure we maintain our market leadership,” remarked Thierry Froment, CEO, Veolia Water Technologies Middle East.
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more competitive and accessible through more efficient supply chains,” remarked Al Bastaki. “We look forward to the development of Uzbekistan as a WLP Gateway, opening up new opportunities for the country,” commented HE Laziz Kudratov, First Deputy Minister of Investments and Foreign Trade, Republic of Uzbekistan.
P&O Maritime Logistics and IO Materials Services bring revolutionary cargo system to Africa n P&O Maritime Logistics and Nigerian firm IO Materials Services (IOMS) jointly announced the launch of the new ‘FlexDELIVERY model to provide integrated last-mile delivery services to the offshore energy industry in Nigeria. FlexDELIVERY disrupts the traditional model of high shore base startup costs, rentals and vessel time-chartered contracts by focusing on the service that is required by the energy industry – cargo delivery, the company stated in a press communiqué. FlexDELIVERY has marked new grounds with a freight rate model targeted at the Offshore Energy Industry which traditionally worked on an asset and facility model. This service proves to reduce delivery times, enhance visibility and predictability which will re-invent procurement strategies, inventory management tactics and the energy supply chain as a whole. Harnessing BigData and AI technology, the new model provides predictability with a real time view on cargo movement and delivery dates all controlled through an
online booking platform. On average, FlexDELIVERY reduces costs by 20-30% per good transported, has 20-30% lower fuel consumption and 40 -50% less distance travelled compared to traditional timecharter supply contracts, the press statement continued. “With the continued expansion of our innovative service in partnership with IOMS, we’re bringing a step change to the offshore supply industry and aligning our service to be in sync with our customers’ needs, reduced delivery times, visibility and predictability,” explained Martin Helweg, CEO, P&O Maritime Logistics. “With ‘FlexDELIVERY offshore operators will gain back time to focus on core business activities. We are looking forward to presenting our FlexDELIVERY innovation to existing and future clients,” remarked Christian Arndt, VP Logistics, P&O Maritime Logistics. “FlexDELIVERY will further reduce supply chain costs in combination with IOMS’ Digital FlexBASE offering,” commented Matteo Volpi, CEO, IOMS.
Lulu Group inks its major green milestone project with SirajPower n Lulu Group recently announced today its collaboration with SirajPower on a significant solar initiative aimed at achieving major green milestones. SirajPower, UAE’s leading distributed solar energy provider will design, build, fully finance, operate, and maintain a 1 MWp solar carport installation and 4 Electric Vehicle (EV) charging stations for Lulu Group’s Dubai Silicon Central Hypermarket. The solar carport project covers 7,209sqm and will produce 1.7 GWh of clean energy annually, offsetting more than 1,205 metric tons of carbon dioxide emissions equivalent to nearly 20,000 tree seedlings grown for 10 years. Lulu Group’s brand-new Silicon Central boasts a GLA of 78,500 sqm of retail, F&B, cinemas, including a Lulu Hypermarket & department store spanning 16,800sqm, a press communiqué said.
“As a UAE-based company, we fully support the region’s vision to mitigate carbon emissions and create a more sustainable economy,” commented MA Salim, Director, Lulu Group International. “The Fast-Moving-Consumer-Goods
(FMCG) industry, as one of the largest market segments in the world, has been a catalyst for positive change through the accelerated emphasis on the importance of sustainability initiatives,” remarked Laurent Longuet, CEO, SirajPower.
OCTOBER 2021 21
SAP partnership boosts The Red Sea Development Company’s digitalization efforts n The Red Sea Development Company (TRSDC), which is driving the development of the giga-project The Red Sea Project (TRSP), announced today that it’s strategic alliance with global technology company SAP is helping streamline its digital innovations. The Red Sea Project is a regenerative tourism destination spanning 28,000 square kilometers and more than 90 unspoiled islands along Saudi Arabia’s west coast. The first phase of 16 hotels across five islands and two inland sites will begin opening in late 2022. “Thanks to our digital transformation with SAP, our procurement is more controlled, transparent, and efficient. We also have real-time insights and decisionmaking capabilities for our financials,
procurement, and employee experiences,” stated Ammar Alomani, IT Applications Associate Director, TRSDC. Several TRSDC departments underwent a digital transformation: Finance with the SAP S/4HANA realtime business suite, its Procurement with the SAP Ariba digital platform, and its Talent Management with the SAP SuccessFactors human experience management suite. TRSDC’s procurement process is now fully automated, from vendor registration through to management and full sourcing. Vendors can gain information on registered and international vendors, and invite vendors not registered for tenders. Procurement is integrated with the financial system, with contract milestones
completed through payment processes. “As the first giga-project to implement SAP solutions, The Red Sea Development Company shows how the Saudi government is leading digital transformation,” commented Ahmed AlFaifi, Senior Vice President and Managing Director, SAP Middle East North.
Airbus to deliver U.S.-completed commercial aircraft with Sustainable Aviation Fuel n Airbus will start delivering all aircraft from its U.S. Manufacturing Facility in Mobile, Alabama with Sustainable Aviation Fuel (SAF) on board later this year. The initiative is a further step toward fulfilling Airbus’ commitment to carbonneutral growth in the aviation sector, the manufacturer announced in a press communiqué. Airbus has reached an agreement with Signature Flight Support to supply SAF to its Mobile facility. No later than November 2021, all aircraft delivered to customers will be powered by a blend of SAF and conventional jet fuel. Signature Flight Support is working in partnership with World Energy to provide the US sourced SAF to Airbus. “Delivering our Mobile-produced aircraft with SAF is an important, iterative step toward solving the carbon challenge,” remarked Jeff Knittel,
22 OCTOBER 2021
Chairman and CEO, Airbus Americas. “SAF is a positive contributor to enhanced sustainability in aviation since it enables up to an 80% reduction of carbon dioxide across the fuel lifecycle. We are committed to making sustainable fuels an everyday reality with use on an increasingly larger scale, and this announcement is further evidence of
that,” he added. From its U.S. Manufacturing Facility in Mobile, Alabama, Airbus delivers both A220 and A320 Family aircraft to U.S.-based customers. Since 2016, the company has delivered more than 260 Airbus aircraft from Mobile; 54 of which have been turned over to airlines in 2021 alone, the press note concluded.
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REFLECTIONS--LOGIPOINT
“The objective is to consolidate the logistics hub and create a value platform.” In a candid and wide ranging conversation, Waleed AlKhayyat, Head of Marketing & Corporate Communications, LogiPoint, the longestablished Jeddah-headquartered Saudi Arabian logistics services provider, reflects on his professional role, the challenges wrought by the pandemic and how the company has the not only successfully navigated but grown through the turbulence and the vision for the future.
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ogiPoint, located in Saudi Arabia’s busiest commercial port on its Western Red Sea coast, is in the forefront of innovation and corporate ambition, harnessing its logistics services, resources and proficiencies in line with the grand Saudi Vision 2030 to catapult the company into the forefront of the industry in the Kingdom and indeed the region.
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REFLECTIONS--LOGIPOINT
LogiPoint is the outcome of a joint venture by Saudi Tadawul-listed Saudi Industrial Services Company (SISCO) and the Xenel Group, a large family owned trading conglomerate in the Kingdom. Q: Briefly describe your professional role at LogiPoint? Waleed AlKhayyat (WAK): LogiPoint is effectively a Logistics Real Estate Company working as an enabling logistics hub and value creation platform for our clients across a wide range of segments. We evolve with the markets we serve, we anticipate the needs of our customers and create innovative new solutions which make their supply chains resilient and elastic, and we do it all while adapting and adhering to the requirements of the regulatory bodies and other stakeholders. In a phrase, we go the extra mile and then a step further to ensure that our clients have the best solutions at their disposal.
My role is two-fold. The first is to translate our company’s vision, plans and solutions into a clear and concise message which is readily understood by all our stakeholders. This starts with our internal stakeholders, our employees and our teams, because first and foremost we need to get a buy-in on our vision and action plans from the very people who will help deliver that vision. It then extends to the external stakeholders– our clients, partners, vendors and even competition. Once that message is clearly chalked out, the second part of my portfolio is to define and set up communications channels and processes, whether digital or print, conventional or cutting edge, alive with that message. Q: How are you positioning LogiPoint to be a market leader in the Middle East? WAK: In essence, a market leading organization gets two aspects right: It builds market leading solutions to
succeed in the markets it serves, and it makes sure to announce that success to its current and future clients. To position LogiPoint as the market leader in the Middle East is to ensure that we communicate to our markets how the LogiPoint value resonates with the world’s leading organizations every day and how committed we are to our customers by being an enabler of their supply chain. On the one hand, it requires us to keep our clients informed on what new products and solutions we are rolling out or how our existing solutions are evolving with the market needs; and on the other, it means that we need to be seen and heard in the spaces where our prospective new clients are looking for solutions for their Middle East logistics. In a rapidly digitalizing world, this has meant a quick transition from traditional marketing activities to a hybrid model which leverages digital marketing and social media for direct to customer marketing as much as traditional tools.
OCTOBER 2021 25
REFLECTIONS--LOGIPOINT
We apply the latest technologies in marketing data analysis to ensure that we optimize our channels and communicate our message to the right customer at the right time. Q: As a marketer, what are some of the key lessons you have learned from the Covid-19 pandemic in 2020 and how have you been able to adapt yourself in 2021? WAK: I think the key lesson for all of us has been that market conditions can change overnight for number of reasons; and while we can have all kinds of contingency plans in place, there can always be a situation when we need to come up with a new plan on the go and execute it immediately. We have all learnt the value of adaptability, resilience and elasticity. For us marketers, events, conferences, meetings and road-shows suddenly became redundant overnight. We needed to devise, learn and practice new ways of engaging with our markets. We adapted by investing in up-skilling digital marketing
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knowledge and skills in our team. The digital space operates at warp speed when compared with traditional marketing space – an event can be planned, lined-up, and executed successfully in a much shorter period than a traditional event or a road-show. So, we needed to adapt and adapt lightning fast. In a world when we were all confined to lockdowns, the importance of effective networking in the real as well as the virtual world was also brought home to us. We learnt that the relationships we had been nurturing for months and years stood us in good stead when we needed our partners to go the extra mile for us, just as we went the extra mile for our partners. The decision to adapt quickly helped us connect with our clients. With lockdowns and working from home becoming the norm, our customers increased their browsing time during the pandemic which created an opportunity for us to plug into this audience and deepen our engagement with our market.
The fact that despite the lockdown and the slowing business activity, we have increased our revenue by 25%, expanded our teams across the board, and announced new projects like Warehouse Cluster 5 that bear testimony to how well we have adapted to the new norm. Q: Share some marketing tips that helped you become a leading marketing professional in your industry? WAK: My advice is—be authentic. Dare to be creative. Live outside the comfort zone. Learn something new every day. Listen intently. Adapt constantly. and most of all and importantly, care! Care for the company you market, care for the client and their business, care for your team, and always care for the message you deliver and how you deliver it. It really is that simple. Q: What are some of the challenges you face as a marketer in the logistics industry? WAK: It’s a fascinating industry – one which literally makes the world go round by keeping the wheels of
REFLECTIONS--LOGIPOINT
global economy turning. But it isn’t as glamorous as some of the other industries and so perhaps that can prove to be a challenge for marketers sometimes. We don’t work with nearly as interesting budgets as many of our clients do and that means we have to go ‘one step further’ in getting the most bang for our marketing buck. Another challenge can be the time it takes between rolling out a marketing campaign and seeing its impact reflected in real numbers. In both cases, it means that marketers, who live for the spotlight pretty much literally, have to create their own new excitement every day. That can be pretty exciting itself when done right. Q: What opportunities do you foresee in KSA and outside of KSA for LogiPoint? WAK: Saudi Vision 2030 envisages KSA as a leading global logistics hub enabling trade and value creation. As a pioneering logistics hub in the Kingdom, we like to look at ourselves as the pilot project transforming that vision to reality. Having proven our value to our clients through our Bonded and Re-Export Zone and our Logistics Parks in Jeddah, we are gearing to expand our footprint across the Kingdom with some exciting new projects in the pipeline. We know that we can leverage our experience as an internationally recognized logistics real estate company and a multi-award-winning logistics and supply chain hub in Jeddah to build
the logistics infrastructure of tomorrow across the Kingdom. We see great opportunity to attract foreign investment to the Kingdom’s logistics landscape through our initiatives. LogiPoint’s success at home creates opportunities abroad for collaborations, partnerships and joint ventures also – especially so as we grow into the Kingdom’s flagship logistics real estate company. Indeed, we are sailing into some exciting times ahead. Q: What are the key trends you see happening in 2021 in the logistics industry? WAK: The key trends in the logistics industry during this pandemic have been adaptability, resilience and elasticity in supply chains, and LogiPoint as an enabling logistics platform creating value for its clients will have a great role to play in catering to these trends. The pandemic has brought the role of the shipping and logistics industry into sharp focus. The container shipping industry is experiencing an unprecedented windfall, equipment shortages at export origins is creating all kinds of challenges for multiple industries from foodstuff to automotive to construction, changing consumption patterns have already forced many industries to adapt quickly and it looks like everyone will need to continue to adapt until we can put the Covid-19 genie back in the bottle. Meanwhile, resilient supply chains will
come out tops and such resilience will only come if there is elasticity built into those supply chains. It’s hard to see how this will all pan out in the short term or the long term, but what we do know is there isn’t going to be a dull moment in this industry for a long time. What else can a marketer ask for? Q: How is your corporate vision aligned with LogiPoint goals and objectives? WAK: The goal is always perfect alignment. You cannot create an effective communication strategy or a marketing campaign without first aligning perfectly with the goals and objectives of an organization. LogiPoint’s goal is to prove itself as an enabling logistics platform which creates value for its clients through eliminating waste and delivering efficient solutions consistently. That is our visions as marketing as well–lock, stock and barrel. Q: How important is teamwork at LogiPoint? WAK: It’s a cliché but it rings true every day. Teamwork is everything. Especially so, when we have had to adapt so quickly to so much and as we have made the transition from a largely conventional marketing team to one that thrives on the cutting edge of digital marketing. I am thrilled and grateful at the same time that we proved to be a team that could make this transition smoothly and seamlessly – and have loads of fun too while we were at it.
OCTOBER 2021 27
SWISSLOG
IKEA store implements Micro Fulfillment concept in new approach to customer experience Automated logistics powered by Swisslog
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s part of the furniture giant’s ‘Store of the Future’ programme, the pilot solution was completed at the IKEA store in Zagreb, Croatia. IKEA recently launched a new store concept with an automated small parts system by Swisslog. Representing the first in a series of future projects, IKEA stores around the world are set to harness the power of a micro fulfillment approach to customer experience. Swisslog, a key global player in robotic and data driven solutions for intralogistics, has implemented the new automated system, which is in the store between the Market Mall and the Cash & Carry warehouse area. The company is now set to support IKEA in rolling out the micro fulfillment concept in further locations around the world, the logistics services provider revealed in a press release.
Productivity increase from 20 to 170 order lines per hour “The micro fulfillment solution at IKEA gives customers a choice between Click & Collect and home delivery,” stated Jens Schmale, Head of Region EMEA, Swisslog. “The micro fulfillment approach has countless advantages, including improved speed and efficiency of fulfillment, reduced transportation costs, and shorter delivery times,” he added.
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IKEA selected the highly efficient robotized storage and order processing solution AutoStore, complete with 6,000 bins, 14 robots and 4 picking stations. Currently hosting 2,900 articles, the system takes care of the storage and picking of small items weighing no more than 30kg. Before adopting AutoStore, IKEA estimated an average of about 1km travelled by each operator to prepare an order, with a productivity rate of 20 order lines per hour. Today, with the new automated and data-driven solution, it is expected to increase productivity up to 170 order lines, allowing an important rationalization of the store’s resources with a significant return on investment.
Development of customer experience program “Swisslog is very proud to be partnered with IKEA. The whole team is excited to be supporting in the development of their customer experience program, especially with this pilot project,” Schmale continued. In the Croatia store, the Swisslog AutoStore system with Black Line robots is situated on a mezzanine. A Swisslog QuickMove light conveyor line transports the shipping units set up at the AutoStore picking doors, to an automatic machine for packing and closing the cartons ready to be taken to
Jens Schmale
the outbound area. The small items handled by AutoStore are integrated with the online orders of oversized items, before being manually picked from other warehouse areas. The entire solution is managed and optimized by Swisslog SynQ Software. Commissioned to Swisslog in July 2020, the system was implemented only nine months after IKEA placed the order and was operational by April 2021.
Micro Fulfillment expertise Swisslog has already proven itself as an ideal partner for micro-fulfilment centers at grocery and e-commerce chains around the globe. Part of an e-commerce fulfillment center as a , the pilot launches as companies continue to pursue their ambitions of becoming the leading omni-channel grocery retailers in their respective markets.
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STORAGE SYSTEMS
Storage Systems critical for improving efficiency and profitability Material Handling Solutions plays an essential role in supply chain management
The availability of effective and high-grade special material handling and storage equipment and systems that support logistics and supply chain work efficiency has upped the ante and marks a defining moment in operational capabilities and streamlining of systems.
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M
aterial handling from a logistics and supply chain perspective is broadly the movement, storage and control of materials and products throughout the manufacturing, warehousing and distribution processes. Godrej Storage Solutions (GSS) is a strategic business unit of Godrej & Boyce Manufacturing, part of the prominent Godrej Group, one of India’s largest engineering and consumer product groups. Godrej Storage Solutions is a pioneer, visionary and market leader for over six decades in the field of racking and shelving storage systems in India empowering over 10000 warehouses and distribution centres with its popular intra logistics solutions. Godrej Storage Solutions’ products &
service portfolio includes Pallet Racking Solutions & Shelving Solutions for warehouse excellence, Software Enabled Solutions for intelligent warehousing, Work Centre Solutions for enhancing shop floor productivity and value adding warehouse consulting.
Formidable partnership In the UAE, Godrej Storage Systems has partnered exclusively by GENAVCO, a renowned company founded in 1967 by industry titan Juma Al Majid, following the establishment of the highly diversified, multi-trading and long-established Juma Al Majid Group in 1950. The conglomerate is one of the leading companies in the UAE for supplying commercial vehicles, road
STORAGE SYSTEMS
Under the visionary leadership of HE Juma Al Majid, GENAVCO is catering to almost all business segments in UAE Market including Road Construction, Earth Moving, Power Generation, Oil & Gas, Construction, Marine, Crushing, Logistics and Supply chain, Hospitality, Medical and Pharma sectors.
Varun Viswanath
construction equipment, quarry and mining equipment, material handling equipment, lubricants and other industrial/construction equipment, representing the world’s leading brands from USA, Japan, Germany, UK and France. Varun Viswanath, Sales Manager & Team Lead, GENAVCO-Godrej Storage Systems responded in writing to a questionnaire by Global Supply Chain Magazine. Global Supply Chain (GSC): How vital is the Warehousing / Storage / Shelving Solutions sector in the regional logistics and supply chain industry? Varun Vishwanath (VV): As businesses grow and expand regionally, internationally and even globally, they
become more reliant on effectively organized supply chains which include sophisticated logistics. This element of supply chains is not something that only matters in large-business development. It is just as crucial in terms of improving efficiency and profitability with smaller and medium-sized business as well. Storage and Material Handling Solutions play an essential part in supply chain management. These are used to plan and coordinate the movement of products timely, safely and effectively. GSC: Briefly describe the origins and growth of GENAVCO’s partnership with Godrej Storage Solutions? VV: GENAVCO is a well established supplier in the market for Material Handling Equipment since its partnership with Crown in 1994. We have made our footprint and foray in virtually every sector in the country over the last 27 years. Storage Solutions division of GENAVCO commenced its operation back in 2013 and by beginning 2020 we joined hands with Godrej Storage Solutions which is a part of one of the largest and oldest Private sector companies in India.
Godrej being established in leading position in the market for over last two decades, it adds a lot of value to GENAVCO’s Storage and Material Handling Division and its Growth in coming years. GSC: Briefly, how would you characterize your partnership with Godrej Storage Solutions? VV: Genavco and Godrej Storage Solutions enjoy a long and enduring relationship. GENAVCO has exclusively partnered with Godrej Storage Solutions for the distribution and service of a wide and complete range of its products that includes Pallet Racking, Drive in Racking, Shuttle Racking, Mezzanine Systems, Pick-Towers, Shelving Solutions, Heavy Duty Multitier Storage Systems, Fully automated and semi automated storage systems. GSC: What are the opportunities and challenges for the partnership going forward? VV: The solid growth in ecommerce industry is one of the greatest opportunities for Storage & Material Handling Solutions Industry in the recent past. Furthermore Dubai Government’s visionary initiatives like Dubai CommerCity and New industrial zones
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STORAGE SYSTEMS
promoting local manufacturing is going to be a big leap going forward in the Storage and Material Handling Industry in coming years. Both the challenges and opportunities are many. The global Covid-19 pandemic and worldwide economic downturn impacted the UAE, as it did every country around the world. The pandemic created an unprecedented economic crisis including severe declines in tourism, aviation and trade and logistics sectors. Increase in steel price over the last 8-9 months is another major challenge that the industry is facing now. This leads to huge decline in number of upcoming projects and expansions. GSC: How have the fortunes of the Storage / Shelving Solutions sector been impacted by the growth of E-Commerce in the region? VV: The UAE retail e-commerce market reached a record $3.9 billion in 2020, a 53% year-over-year increase driven
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by the Covid-19-led digital shift, while e-commerce accounted for 8% share of the retail market during the same year. This has changed the fortunes of Storage Solutions/ Shelving Sector. With the strong experience of Godrej in serving E-Commerce giants Amazon, Flipcart, Myntra, Reliance and other big-time players in India, we are aiming higher position in the market in coming years. GSC: Briefly, what are the key GENAVCO-Godrej unique offerings for the warehousing / storage industry in the region? VV: More than a supplier, GENAVCO as a Partner to our customers, offering its service as a Warehouse Storage and Material handling solution provider through our world class range of Products from Godrej Storage Solutions, Crown Lift Trucks, Flexi Narrow Aisle Articulated Trucks and JLG Electric Range. We are very unique in the range
of products we are offering as one stop solutions to our customers. In the process, we provide right from consultancy to designing to 3D Real walkthrough models of the warehouses that conveys the real feel of the completed warehouse in the planning stage itself. GSC: How important is automation and technology for industry in the region? VV: As we all know UAE has a great interest in technologies due to its focus on being a leader in the area of smart city and smart government applications, its position as a center for international banking, commerce, logistics, and transportation. It is expected that automation will take a lead in UAE logistics industry in coming 3-4 years. We are fully prepared for this eventuality. GSC: What are GENAVCO’s strengths, capabilities and portfolio of service offerings in this area?
STORAGE SYSTEMS
2021 is a most exciting year for us as we are a part of various key projects being executed in the market that includes Vertical Farming Project for Dubai’s National Air Carrier-Emirates Group. VV: As a 54-year old established organization under the visionary leadership of HE Juma Al Majid, GENAVCO is catering to almost all business segments in UAE Market including Road Construction, Earth Moving, Power Generation, Oil & Gas, Construction, Marine, Crushing, Logistics and Supply chain, Hospitality, Medical and Pharma sectors. The team of highly experienced Engineers and solution experts is our key Strength that helps us to cover and strengthen our position in the market. .
GSC: How did GENAVCO’s Material Handling & Storage Solutions Division fare in 2020 and what is your outlook for 2021? VV: Material Handling & Storage Solutions division is one of the rapidly Growing product segment of GENAVCO. Although 2020 was a challenging year, with the Partnership of Godrej the division performed decently well. During challenging times GENAVCOGODREJ–CROWN marked the reference of installation of tallest VNA Operated Racking System ever installed in UAE.
We have also created our solid foot prints in the food packaging and manufacturing segments last year with Drive-in Racking and Multi-Tier Shelving solutions. 2021 is a most exciting year for us, being GENAVCO, as we are a part of various key projects being executed in the market that includes Vertical Farming Project for Dubai’s National Air CarrierEmirates Group, which is going to be first of its kind in the region. We have also marked another history by installing largest Drive-In Racking System in the Northern Emirates for a leading Appliance Brand. There are several other projects in the pipeline this year. With the enthusiastic team on board, we are fully confident that the Storage & Material Handling Solutions will set its record performance this year. GSC: What is your forecast for the short and long-term futures? VV: In the short term, GENAVCO is focusing on improving the market share and create solid references through quality products and service offerings. Going forward we will be adding more complementary products in the range to accomplish our long term vision of Market Leadership in Storage and material handling industry. GSC: How competitive is the industry? VV: Unlike other industries, Storage Solutions Industry has the highest number of competition in the market. There are currently over 15 known companies offering Racking solutions in the market. Increase in number of small scale players leading to price war in small- medium scale projects. We are also sometimes witnessing companies offering cheaper products with compromise in quality. With the superior grade of Steel Godrej is using for its construction, we can guarantee delivery of superior quality products to our customers. GSC: As a 54-year old long-established company, what is the vision for this Division going forward? VV: The vision is set to become one of the top performing divisions of GENAVCO, thereby taking the company to next levels.
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GULF WAREHOUSING COMPANY (GWC)
“GWC’s expertise and professional experience have been indispensable during the Covid-19 pandemic.” GWC provides a full portfolio of logistics and supply chain services; characterizes itself a one-stop-shop for start-ups, MSMEs and established businesses in Qatar. The FIFA World Cup Qatar 2022 is the lever as it heaves the country as a major international logistics and transportation hub and reinforcing Qatar’s vast growth potential while laying the groundwork for a sustainable and diverse economy. Gulf Warehousing Company is in the forefront of the collective corporate efforts to catapult the country as a premier logistics centre. GWC trucks forming the number 500 at Al Bayt World Cup stadium.
Ranjeev Menon, Group CEO, GWC
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GULF WAREHOUSING COMPANY (GWC)
T
he prestigious mega event, the upcoming FIFA World Cup Qatar 2022, marks a watershed occasion for Qatar to shine as the region’s top logistics and supply chain hub and a major transportation centre. Qatar’s top logistics services company, Gulf Warehousing Company’s (GWC) mandate is to offer a comprehensive, broad spectrum of services ranging from end-to-end logistics, supply chain and transportation services, from point of entry to point of use and highly coordinated reverse logistics, thus giving its corporate customers the advantage of cost efficient, top-grade services. In an exclusive email interview with Global Supply Chain, M. Ranjeev Menon, Group CEO, Gulf Warehousing Company, spoke expansively on a range of subjects
from the company’s vast service offerings, development of the ambitious Al Wukair Logistics Park, the company’s association with the Qatar World Cup and country’s leaders and vision for the future. Global Supply Chain (GSC): As one of the largest Logistics Services Providers (LSPs) in Region (in Qatar we are the one), GWC offers an eclectic range of services—give us the extent and scope of your services offerings and what role do free zones play in this? Ranjeev Menon (RM): GWC began its operations in 2004 and in a short span of time has grown exponentially to offer state-of-theart logistics services to all industry verticals. Thanks to our credentials, global network and experience in handling major sporting events, GWC was last year unveiled as
the first Regional Supporter and Official Logistics Provider for the FIFA World Cup Qatar 2022™. For instance, GWC has its own pharmaceutical facility, offering 25,000 square meters of infrastructure and equipped with temperature controlled, refrigerated , and frozen storage built to the latest specifications. Our expertise in this sector has never been more important than during the Covid-19 pandemic, with a strong focus on ensuring availability and distribution of vaccines. We have been a pioneer in the field of logistics locally and regionally with our over 3,800,000 sq m of logistics hub, 1,700 vehicles and 2,800 plus staff. Our success can be attributed to our drive to serve our client to the best of our ability, to not get deterred
OCTOBER 2021 35
GULF WAREHOUSING COMPANY (GWC)
by challenges and to constantly innovate. We believe free zones are crucial for facilitating supply chain, and we were the first company to work out of Ras Bufontas Free Zone which has one of the region’s most advanced digital and logistical ecosystems. This will provide our clients competitive edge while strengthening Qatar’s position as a hub for re-exports, transit, trade and value-added services. GSC: In 2019, GWC was awarded the US$ 410 million contract to develop the Al Wukair Logistics Park in South Central Doha amid stiff competition. Bring us to current on developments for this project? RM: The Al Wukair Logistics Park is one of the flagship developments of GWC, with a very strong focus on providing micro, small and medium scale Enterprises (MSMEs) with access to logistics and light industry infrastructure needed
36 OCTOBER 2021
for their growth and success. Its development is on track and the Logistics Park first phase will be complete by the end of 2021. This 1.5 million sq m site, which is strategically located between Hamad Port and Hamad International Airport, is an example of our belief in and support to the MSME sector, which will be the main driver of Qatar and the regional economies. It offers every type of warehousing, workshops, and showrooms available, as well as access to GWC’s full range of supply chain solutions. It is a one-stop-shop for start-ups, MSMEs and established businesses with GWC supporting all regulatory as well as infrastructure and supply
chain needs. The businesses get to operate in an international business park with scalability options and being close to ancillary industries. GSC: Tell us briefly about your FIFA 2022 association—what have been your accomplishments and what is your role in the run up to the upcoming FIFA World Cup Qatar 2022? RM: We are excited about our role in the FIFA World Cup Qatar 2022TM. As the Regional Supporter and Official Logistics Provider, we are aware of the immense responsibility placed on us and the mammoth task we have ahead. We have been working diligently to ensure the seamless delivery of this mega sporting event.
GWC was awarded the US$ 410 million contract to develop the Al Wukair Logistics Park (1.5 million sq m) in South Central Doha
GWC Al Wukair Logistics Park
GULF WAREHOUSING COMPANY (GWC)
The Al Wukair Logistics Park Regional Growth Powerhouse The Al Wukair Logistics Park is set up as part of GWC’s efforts to support MSMEs and enable them to thrive. This strategically positioned 1.5sqkm facility caters for a whole range of industries that require light industrial workshops, storage units and open yards; offering ideal platform for established companies and new market entrants. Al Wukair is one of several facilities attracting businesses to the country, along with Qatar’s commitment to offering a simple company formation process in which GWC is able to support. Al Wukair logistics park offers a one-stop-shop for leasing a warehouse or workshop, company formation formalities, including applications for necessary permits, and logistics operations. Start-ups who work with GWC will benefit from years of local, regional and international experience, along with a global, integrated network. GWC’s deep, hard-earned knowledge of the local market makes Al Wukair Logistics Park the ideal
destination for businesses to avail of and enjoy the best logistics infrastructure that will allow them to focus on their core businesses and reap the benefits of a flourishing economy. There is no doubt that businesses prefer locations such as Al Wukair Logistics Park that provide quick, efficient, high-quality and hassle-free access to different industries. One major benefit of Al Wukair is its strategic location. “Al Wukair Logistics Park will exhibit our expertise and capabilities to offer value solutions to our clients that will positively affect their bottom line while enabling them to focus on their core business,” affirmed Ranjeev Menon. “The strategic location of the park between the airport and seaport, allows businesses of all sizes to operate as efficiently as possible. Al Wukair plays a critical role in supporting start-ups, helping to develop adjacent industries and in the process boosting entrepreneurship – all key, strategic goals of the State of Qatar.”
OCTOBER 2021 37
GULF WAREHOUSING COMPANY (GWC)
Logistics will play a significant role during the tournament and we have been working very closely with FIFA, the Supreme Committee for Delivery & Legacy and the FIFA World Cup Qatar 2022 to implement and execute a broad spectrum of logistics services as we will be involved in every part of operations, from venue logistics, broadcasting and cold chain logistics, to shipping, customs clearance, transport and warehousing, down to logistics operations of merchandise, souvenirs, and food and beverages. GWC, with its 3,800,000 square meter of logistics infrastructure, a global freight-forwarding network and more than 1,700 specialist vehicles, will be involved extensively in the tournament operations, and will offer end-toend tracking and execution, from point of entry to point of use, and
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highly coordinated reverse logistics. The FIFA Arab Cup, which will be held from November 30, December 18, 2021 will be a litmus test in terms of operations and execution ahead of the FIFA World Cup Qatar 2022TM. GSC: What are the challenges confronting the logistics and supply chain industry at present and what is being done to overcome the same? RM: There is no denying that the logistics industry suffered a setback, just like any other sector due to Covid-19. It has been challenging as different parts of the world are moving at different pace and businesses are being required to adapt to new situations all the time. Logistics is also largely a consumer driven sector and Covid-19 brought about a shift in the consumers demand and
preferences and they resorted to online shopping, thus changing the dynamics of this sector. As a consequence of this we have seen an increase in freight charges, coupled with shortage in shipping containers which has adversely impacted the logistics industry. A case in point is the continuing shortage in semiconductors due to change in demand pattern. With Covid-19, we saw an increase in demand for semiconductors for appliances and manufacturers were not ready for this sudden change. And believe it or not, almost all industries depend on semiconductors today and this puts a strain and continues to do so on the global supply chain. However, here at GWC we believe that every challenge is an opportunity, and this pandemic has highlighted the importance of
Aerial view of Logistics Village Qatar
GULF WAREHOUSING COMPANY (GWC)
having an agile and lean supply chain. We have been cognizant of this and have opened more channels of communication with our clients and offered them alternate solutions. GSC: What is your vision for GWC going forward for the short and long term?RM: Here at GWC our ethos has been never to hesitate in taking up an opportunity but at the same time taking calculated risks while moving ahead. We believe in delivering what we promised and that has been key to our success. Our meteoric rise from a local company set up in 2004 to being the Regional Supporter and Official Logistics Provider FIFA World Cup Qatar 2022 is testament to our merit, and our ability to take on such a massive responsibility. We are confident about our capabilities
GWC, with its 3,800,000 square meter of logistics infrastructure, a global freight-forwarding network and more than 1,700 specialist vehicles, will be involved extensively in the tournament operations.
in delivering an exceptional World Cup to the world and be part of the future of Qatar. We aim to show what Qatar is capable of when it comes to setting up the stage for the world to see. We will carry on supporting MSMEs (Micro, Small and Medium Enterprises) as they are the backbone of any economy, especially in the Middle East and key for Qatar’s economic diversification. The Al Wukair Logistics Park is a clear example of our belief in this sector and what role it will play in Qatar’s economic growth. We will also continue to work towards developing our assets, our human resources which will open more doors for us regionally and internationally and help explore new markets. This coupled with focus on our quest for innovation, digital transformation and technology, will help us maintain our competitive edge and allow us to achieve new milestones and represent the vision and spirit of Qatar.
OCTOBER 2021 39
GCC WAREHOUSING LANDSCAPE
The swift surge in E-commerce bodes well for the GCC Warehousing sector GCC regional supply chain network is expected to benefit from supply chain diversification initiatives
The importance of Warehousing Management Services (WMS) and its applications in logistics and supply chain, both regionally and globally cannot be underplayed. A key, crucial service, it essential for organizing and ensuring the smooth and streamlined inflow and outflow of goods from single or multiple storage and distribution points and for effectively monitoring a structured system for receiving, accounting and placing stocks in a warehouse.
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arehousing will continue to play its seminal role in the logistics and warehousing ecosystem. Automation and digitization in the warehouse will only increase exponentially as companies seek to make their supply chains agile and efficient. Warehousing is essential in supply chain management as goods are transported from the maker to end recipient. That is clearly a given. The benefits of warehousing in logistics indicate that if a warehouse operation is ineffective, the entire supply chain may be immobilized, for example, a lack of goods, delays, or blockages. All logistical efforts performed within the scope of a warehouse should avoid the warehouse from becoming a bottleneck of the supply chain. The purpose of warehouses is to support manufacturing processes, which can be accomplished by maintaining sufficient resources, materials, and packaging for production, allowing for uninterrupted output. Permanent access to packages allows for the systematic receipt of finished goods and delivery to
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the intended recipient. It’s worth noting that warehouses support marketing processes by providing constant access to resources required for the completion of a promotional action or the production of promotional sets. Global Supply Chain conducted an exclusive interview with Bijay Oram, Director, Supply Chain & Logistics Practice, Frost & Sullivan, who shared his professional insights and observations on the state and criticality of the warehousing sector in the GCC. Global Supply Chain (GSC): Briefly, what are key takeaways / broad observations of the Covid-19 effects and fallout on the GCC’s warehousing operations? Bijay Oram (BO): The Covid-19 pandemic-related restrictions such as self-isolation and social distancing have caused significant workforce shortages, affecting warehouse operations. Companies have opted to use automation and digitalization to overcome disruption in warehouse operations. The rapid increase in E-commerce sales has opened up opportunities for state-of-the-art
fulfillment centres across the major urban centers. Being a major trade hub in the East-West trade lane, the GCC regional supply chain network is expected to benefit from supply chain diversification initiatives of advanced countries in Europe and Asia. GSC: In your opinion, how much of the professional work environment / ecosystem in the warehouse changed as a result of the pandemic onslaught? BO: The industry has witnessed a series of changes. Firstly, a shift from lean manufacturing/just-intime (JIT) management method in favor of inventory strategies with adequate buffer stocks to minimize the costs associated with disruptions. Governments and the private sector continue to increase their focus on logistic/warehouse infrastructure-logistics parks, free zones, cold storage capacity expansion, and e-commerce fulfillment facilities. The industry is witnessing an Increased level of digitalization including adoption of automatic storage and retrieval systems, Automated Guided Vehicle (AGVs), and conveyor belts at warehouses
GCC WAREHOUSING LANDSCAPE
have significantly reduced the dependence on the workforce. GSC: With the Pharma / Food / Cold Chain and critically required medical / PPE (personal protective equipment) supplies industry in the frontlines of the fight against the virus, how have the industry’s priorities been rearranged and what kind of new demands / pressures are being put on the business now? BO: Bottlenecks along the healthcare supply chain include safe transportation of vaccines, sourcing, and procurement from vaccine manufacturers, realtime temperature monitoring at warehousing, and cold storage facilities at consumption centres. The National Vaccination Programmes are largely successful, with number of new cases brought under control. GCC being a major logistics and distribution hub, the development of vaccine distribution infrastructure is given priority in some of the key ports. For example, the Hope Consortium has developed freezer facilities at Khalifa Industrial Zone Abu Dhabi (KIZAD), with a capacity to store vaccine doses for global distribution. Smart Logistics Hub, located in Bahrain, will focus on storing and distributing perishables, vaccines, and medicines to the GCC region. The smart hubs are backed by blockchain driven smart
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GCC WAREHOUSING LANDSCAPE
contracts for speedy movement of pharmaceuticals and food products across the customs ports. GSC: How can the Warehousing Industry in the region help to ensure food security and supplies in the region? BO: GCC as a whole depends on imports which account for about 85% of domestic consumption; Shortage of land suitable for agriculture and climate conditions are the main factors contributing to lower agriculture production in the GCC region. Saudi Arabia and UAE accounted for nearly 75% of the total regional food consumption, estimated at 33 million metric tons in 2020. Covid-19 related supply chain disruptions have affected the regional food supply chain due to restrictions on cross-border movement and lockdown measures. Countries have diversified their supply
Bijay Oram Bijay Oram has over 16 years of functional and consulting experience in Supply Chain and logistics in large and mid-sized companies. He has hands-on experience in working with business leaders and stakeholders in developing insights and actionable strategies for various strategic and operational challenges.
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base, increased collaboration to strengthen domestic food production and supplies to ensure the availability of food products. Food Security Network was established to allow movement of essential goods such as food and medical supplies at GCC customs centers with fewer restrictions. Storage and warehouse capacity expansion has become an important part of food value chain to minimize wastages. Cold storage capacities in ports and major cities are likely to be given priority in the short term to strengthen storage and distribution network. GSC: What are the new technologies / trends emerging in Warehousing and what role will WMS, automation and robotics for example play in this segment? BO: Key warehousing technologies adopted to improve productivity and efficiency in the region includes automated picking and packing, robotics, automated guided vehicles, augmented reality, wearables, and warehouse management systems (WMS). The next phase of digitalization will focus on blockchain-based long-term warehouse contracts, inventory optimization tools backed by predictive analytics, supply chain visibility solutions, while warehouse automation will
continue to play an important role in the medium term. Blockchain and IoT solutions would make the supply chain more transparent through peerto-peer networks by increasing real-time visibility and reducing shipment delays, human error, and transaction errors. GSC: What opportunities and challenges confront the warehousing segment in the region? BO: On of the challenges is the lack of skilled, qualified workforce. Workforce shortages in the warehouse segment result in lower productivity levels Furthermore, social distancing and workforce safety measures resulted in worker shortages during lockdown periods. Restrictions on port operations have resulted in a shortage of storage capacities in some of the key ports. Current low levels of technology adoption are also proving to be challenge but there is scope for increased us and therefore in turn an opportunity for technology service providers. High level of fragmented market structure is the main cause of the varying level of technology adoption in the warehouse segment. Large operators have invested in digital technologies, while adoption levels are low
GCC WAREHOUSING LANDSCAPE
among medium and small operators. These challenges provide enormous opportunities for supply chain technologies and solution providers. Increasing demand for same-day delivery in e-commerce is expected to drive demand for state-of-the-art warehouse facilities to accommodate the growing demand for personalized last-mile delivery services. GSC: How is the Warehousing Industry faring in the region and where (in the region) do you foresee expansion / growth? BO: The Warehousing segment comprises 20% of the regional logistics market and is one of the fastest-growing with an estimated growth of over 5 % driven by e-commerce, retail demand, pharmaceutical, and food sectors. Warehousing capacity expansion is given high priority by private companies to meet the increased
demand. The following segments are expected to witness high growth between 2021 and 2025. These include Free Trade Zones and Logistics Parks; Commerce Fulfillment and Distribution; Regional trade and transit hubs; Cold chain storage facilities and Bonded Warehouses and Inland Dry Ports. GSC: How important is the Warehousing sector for the Free Zones / Special Economic Zones sector in the region? BO: The region’s geographical location on the trans-continental trade has facilitated its focus on the development of logistics hubs for both domestic and transit goods. As part of economic diversification initiatives and national infrastructure plans, the development of free zones are given priority to increase trade. Storage and warehousing capacity in free zones are a critical part of movement of both inbound and outbound goods and is expected to play a key role in the growth of GCC warehousing growth. Other important drivers include logistics hubs and e-commerce fulfillment and distribution facilities. The Al Khomra Logistics Zone in Saudi Arabia’s Jeddah Port, launched by Saudi Ports Authority
will become one of the largest integrated logistics zone in the region. Dubai Commerce City is developed to support global and regional brands to expand their e-commerce trade in the GCC region. GSC: In summary, what insights you would like to share on the short and long term vision and objectives for the Warehousing Industry in the region? BO: As national policy priorities from different states are focused on improving logistics efficiency, logistics/warehouse infrastructure will be given priority. Economic cities, logistics parks, free trade zones, bonded warehouses, inland dry ports are some of the segments expected to see expansion. Being a major trade hub in the East-West trade lane, GCC regional supply chain network is expected to benefit from supply chain diversification initiatives of advanced countries in Europe and Asia. Digitalization of warehouse operations are expected to gain prominence as companies are expected to accelerate adoption of digital technologies such as warehouse automation, wearables for picking and sorting, supply chain visibility supported by tracking, and realtime cargo monitoring solutions.
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WAREHOUSING TECHNOLOGY
Acme empowers warehouses with pioneering Colour-Picking automation technology to improve efficiency
Company offers innovative, scalable solutions to its clients, enabling e-commerce competencies
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n its continuing efforts to enable e-commerce, wholesale and retail companies improve their warehouse efficiency, Acme Intralog, has introduced Colour-Picking technology in partnership with Kardex Remstar, the company announced in a recent press communiqué. Growing order demand and limited storage capacity combined with fluctuating demand leave e-commerce companies struggling to meet customer delivery times. Using Kardex Remstar’s Colour-Picking solution, Acme offers a scalable solution to its clients, enabling e-commerce facilities to flex labour to meet spikes in order demand. Colour-Picking ensures higher throughput and maximum labour efficiency in the warehouse with up to 70% space, doubled picking throughput and a ROI of less than 18 months. Based on the principles of Colour-Picking
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technology, Colour-Pick guides multiple operators through the picking process using coloured lights allowing you to add or reduce labour resources to meet current order demand, the press statement continued.
E-commerce surge “E-commerce in the region is growing at an unprecedented rate and sometimes companies find that demand surpasses capacity. We offer automated solutions like Colour-Picking technology, in partnership with international manufacturers, to help customers to scale their demands and avoid the need to build extensions, new facilities, or to outsource,” affirmed Navin Narayan, CEO, Acme Intralog. “When demand is high, ColourPicking allows multiple workers to pick from dynamic work zones using pick-to-
light technology for higher throughput. When demand is lower, the pick-to-light technology can be operated with only one worker. This allows organizations to easily scale their labour force to meet peaks in order picking demand,” he continued. Colour-Picking pick-to-light technology combines several orders into a batch that can be simultaneously processed. The unique colour-picking concept adds coloured lights into the batch picking process allowing multiple operators to pick from one work zone. The Colour-Picking process can achieve up to 300 order lines per hour per operator to achieve higher throughput. It is a team picking philosophy with high throughput and dynamic workflows. Using multiple workers in one zone, multiple batches of orders can be filled at one time to achieve higher throughput, the press note concluded.
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JUBAIL PORT EXPANSION
GSCCO launches expansion plan worth US$ 50mn in assets and equipment Enhancements to help increase Saudi Arabia’s Jubail Port’s GDP by US$ 100mn
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ulf Stevedoring Contracting Company (GSCCO), a Saudi Arabia-based subsidiary of global port operator Gulftainer, recently announced its expansion initiative that includes the installation of additional assets and equipment worth US$ 50mn that further enhanced the handling capacity of Jubail Commercial Port (JCP) on the Arabian Gulf coast. Initiatives such as: dredging to 14m datum, employing and training young Saudis in key positions and revamping the port’s IT system, has enhanced JCP’s export and import operations, and overall efficiency. These improvements are projected to contribute to Jubail’s GDP by more than US$ 100mn. The arrival of the new equipment, including three Super Post-Panamax quay cranes, five rubber tyre gantries, and 18 reefer gantries increased the handling capacity of the port by up to 1.8mn twenty-foot equivalent units (TEUs).
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Polymers expansion These enhancements have also enabled the port to handle the majority of the 1mn TEU export market in the province, and prepare the Port for the upcoming growth in the Polymers expansion and general cargo imports for the oil and gas sector. The recent initiative is in line with the National Ports and Logistic Development Program and the Saudi 2030 Vision’s third pillar covering container and general cargo ports, Ro-Ro operations, logistics, and bonded re-export zones. While this investment solves the medium term logistic issues, GSCCO is discussing further development of the JCP, supporting the expansion of Jubail and Ras Al Khair and the transformation of the Kingdom as a global hub connecting Asia, Europe, and Africa. Currently, the port has quay crane rates of more than 35 moves per hour (MPH)
for containers, making GSCCO one of the most productive terminal operators in the Gulf region.
Jubail Expansion GSCCO reported that some major mainline vessels have already committed to the support of the Jubail expansion following the recent developments as part of the expansion drive. With the enhanced draft of 14 m (15 m depending on the tide), the port also expects to handle vessels that have a 16,000 TEU capacity. “GSCCO is proud to continue to support the transformation that Jubail Commercial Port has undergone since we first started handling operations, and we look forward to expanding further to support major exporters and importers and the greater city of Jubail,” commented Jason French, Managing Director, GSSCO.
CIRCULAR ECONOMY / SUSTAINABILITY
Carrefour rolls out multiple circular economy initiatives Carrefour deploys CHEP’s pallet pooling system across all of its warehouses in the UAE Carrefour has partnered with GLS to replace cardboard storage with returnable plastic crates and is upgrading its fleet of delivery vehicles, adopting more eco-friendly trucks to meet higher emission standards. Transitioning into a circular economy is a major step towards Carrefour sustainability goals, including becoming net positive by 2040.
C
arrefour, owned and operated by Majid Al Futtaim in the UAE, has rolled out several sustainable initiatives through partnerships with CHEP, the Middle East’s market benchmark in supply chain solutions, and GLS International, an expert in returnable packaging solutions. This will help reinforce Carrefour’s circular economy approach, which will drastically reduce waste and increase efficiency across Carrefour’s logistics and supply chain operations. Carrefour has deployed CHEP’s pooling system in all of its warehouses, which replaces single-use pallets with reusable blue wooden ones to make it easier and more sustainable to move items between its suppliers and stores, a recent press communiqué stated. CHEP’s innovative solution ensures that supply chain packaging can be shared and reused whilst distributing Carrefour’s large range of products to more than 107 Stores across the UAE, including four DC warehouses.
Eliminating carbon emissions By replacing single-use pallets with wooden ones, CHEP will help Carrefour
to eliminate 62 tonnes of carbon emissions and 4.4 tonnes of waste. CHEP is consistently rated as one of the most environmentally friendly businesses in the world. Carrefour has also partnered with GLS to replace its current one-way cardboard packaging delivery with returnable plastic crates across its entire supply chain, reducing waste en route between Carrefour warehouses and stores. Carrefour advanced tracking systems have been designed for returnable packaging management. Not only will this allow for more sustainable connections with local suppliers, but it will keep items from being damaged during transit, therefore also reducing food waste, the press note continued. “Our circular economy model represents the future of our operations. Collaborating with leading solution companies such as CHEP and GLS is only a starting point in our sustainability journey. We are committed to contributing to Majid Al Futtaim’s goal of becoming Net Positive by 2040, and together, with our customers, we will save the planet,” affirmed Bernardo Perloiro, Chief
Operations Officer, Carrefour UAE, Majid Al Futtaim Retail.
Green delivery vehicles To offer significant supply chain benefits and enhance the flow of items from beginning to end, suppliers to consumers, Carrefour’s delivery vehicles are going green too. Its older, heavier trucks have been replaced with a modern fleet that can meet higher emission standards. The upgrade will ensure that the new trucks comply by the Euro Norms 4 and 5 standards to reduce carbon dioxide by twenty-five per cent and particles by fifty per cent. These will operate with a custom-made, extended body chassis that ensure as many items as possible can fit inside and reach their destinations as efficiently as possible. Carrefour has made nearly sixty-six per cent of its existing fleet sustainable with plans to replace the remaining vehicles as well by the end of the year. With this move, Carrefour has increased its efficiency in transporting more pallets per day and is reducing the number of trucks on the road by 20 per cent.
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DP WORLD
DP World to invest US$ 414mn in new fourth berth at London Gateway Logistics Hub Move to strengthen UK’s Supply Chain
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P World recently announced that it will begin work in October 2021 on a new fourth berth at its London Gateway logistics hub to increase supply chain resilience and create more capacity for the world’s largest vessels. The £300mn (US$ 414mn) sum which builds on the £2bn (US$ 2.76bn) investment DP World has made in Britain over the last decade and represents the next step by the leading global provider of smart logistics in delivering integrated supply chain solutions for customers. “As a central pillar of Thames Freeport, London Gateway’s new fourth berth will allow even more customers to benefit from world class ports and logistics, with unrivalled global connectivity, on the doorstep of Europe’s largest consumer market,” remarked Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. “Our new freeports will create national hubs of trade, innovation and commerce, and attract more investment to regenerate communities and level up the UK,” said Rishi Sunak, UK Chancellor of the Exchequer. In the first six months of 2021 London Gateway saw record throughput of 888,000 TEU, more than 23 per cent increase on the previous best performance for the first half of a year. The new fourth berth will raise capacity by a third and completion will coincide with the delivery of a new wave of 24,000 TEU vessels in 2023/2024, which will all be operated between Asia and Europe, a press communiqué concluded.
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DP World and FESCO to jointly study development Northern Sea Route Northern Route will increase resilience in global trade and reduce shipping time between East Asia and North-West Europe DP World has agreed to jointly study with FESCO, Russia’s largest intermodal transport operator, the technical and economic conditions for developing a new container berth in the far east of Russia, according to a press communiqué. The new berth will help to expand Vladivostok Commercial Seaport as a major transshipment hub connecting cargo from countries in East Asia to North-West Europe via the Northern Sea Route. It follows an earlier agreement between DP World and Rosatom to explore sustainable development of the route, which will increase the resilience of global trade. Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, signed the agreement at the Eastern Economic Forum in Vladivostok with Andrey Severilov, Chairman of the Board of Directors, FESCO. “The Northern Sea Route will increase the resilience of world trade. It has great potential to develop economic activity and prosperity in Russia’s far north. It must be done sustainably to protect the pristine waters of the Arctic,” affirmed Bin Sulayem.
DP WORLD
DP World, UAE Region adopts Zodiac Training to improve Supply Chain efficiencies The training programme covers 16 different areas using 18 internally integrated systems
“We are delighted to be working closely with a company such as DP World that is handling roughly 10 percent of the global container traffic,” asserted Severilov. The berth in Vladivostok is part of the infrastructure needed for full development of the northern route. Under the plan cargo will be brought to Vladivostok by feedering ships and rail from countries in East Asia and loaded onto Arctic-class container ships. Murmansk will be further developed as a trans-shipment hub in the west to connect cargo to ports in North- Western Europe. DP World’s feedering operations will serve both Vladivostok and Murmansk offering faster and cleaner cargo transport solutions to customers and improving supply chain resilience. The Northern Sea Route will allow DP World to continue to offer customers end-to-end logistics solutions. A record 33mn tonnes of cargo was carried along the route in 2020 and Russia has set a target of 80mn tonnes by 2024. The project cuts some 4,000 nautical miles from voyages between East Asia and North-Western Europe, cutting shipping time by around two weeks and reducing carbon dioxide emissions.
DP World, UAE Region has introduced the ZODIAC training programme, led by in-house Emirati calibres in The Ports and Terminals Training Centre (P&TTC). The programme accredited by City & Guilds is now a recognised benchmark for effective training programmes to improve supply chain utilisation globally. This announcement comes post the successful implementation of the ZODIAC automation system in Jebel Ali Port’s Container Terminal 3 (CT3), and exclusively training employees on effectively operating the automated system on 16 different areas using 18 internally integrated systems. The primary aim of the training program is to bridge the users’ knowledge gap and spread awareness of the capabilities provided by ZODIAC to businesses and companies, enabling them to better access the supply chain. The training will also target customers, agents, contractors, consultants and other stakeholders. “In DP World, UAE Region, we have always emphasised on automation and digital transformation. The cornerstone in building these capabilities is by qualifying our employees and users so they can benefit from our digital systems and adopt them in their operations and transactions,” affirmed Mohammad Belshalat, Director–Operations Support, DP World, UAE Region. The ZODIAC digital system also manages the rail and inland container depot (ICD), provides full fleet management and offers control to the container freight station. Additionally, it provides real-time container location tracking, clearance, and delivery with billing systems, all supported by the Internet of Things.
OCTOBER 2021 49
ALMAJDOUIE DE RIJKE LIMITED (MDR)—SAUDI ARABIA
Almajdouie De Rijke (MdR) Sadara team sets throughput records for solids and liquids handling operations LSP overcomes obstacles to achieve operational successes The new digital platform to simplify the process of crane rental procurement
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he Almajdouie De Rijke Limited (MdR) Sadara project team set new records for solids and liquids handling in May 2021, reaching a staggering 31 kilotons (KT). This surpasses the previous record of 30 KT, which was set in July 2020. Total liquids handling was 134 KT, topping the January 2020 record of 131 KT, while King Fahd Industrial Port (KFIP) shuttling volume hit the 100 KT mark for the first time.
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MdR Sadara Solids Operations Manager Fareed Mohammed congratulated all involved for achieving the new milestones safely and thanked them for their dedication. CMY Operations Manager Nadeem Khan also commended the team on the achievements noting the importance of keeping safety as a top priority. “Congratulations to the team for achieving yet another milestone while maintaining our high safety standards. With the Eid holidays
and several other operational challenges, May was a difficult month. However, we overcame all obstacles to achieve these impressive results,” remarked Bop Martens, Operations Manager, MdR Liquids. MdR Operations Manager Bart Darcis thanked the team for their exceptional efforts while overcoming various challenges, including Covid-19 vaccinations for truck drivers, a wooden pallet shortage, and working during the Eid holidays.
ALMAJDOUIE DE RIJKE LIMITED (MDR)—SAUDI ARABIA
Almajdouie De Rijke Limited (MdR) commemorates 15-year anniversary milestone
MdR celebrates 15 years of success and accomplishments Almajdouie De Rijke Limited (MdR) recently marked its landmark 15th anniversary with a celebration at the Almajdouie Group headquarters in Dammam. In attendance were senior officials from Almajdouie and representatives from the De Rijke Group, who attended the event virtually. Almajdouie Group Vice-Chairman and MdR Chairman of the Board, Abdullah Ali Ibrahim Almajdouie, and former De Rijke Group President, Leen De Rijke, delivered speeches reflecting the company’s history and its journey to success. “Fifteen years ago, Sabic referred us to an exceptional Dutch company looking to partner with a local logistics service provider. I remember meeting Leen for the first time, and there was instant chemistry between us. Over the years, we continued to build trust and confidence, resulting in success after success,” affirmed Almajdouie. “Trust, true partnership, and a winning spirit are the key ingredients to MdR’s success. Despite not having a brother of my own, I found one for life in Abdullah. Together, we have helped to create a company that is defined by accountability and respect for its clients,
employees, and stakeholders,” asserted de Rijke. VIPs in attendance De Rijke Group CEO and MdR Vice-Chairman of the Board, Kees De Rijke, and Almajdouie Logistics CEO of Joint Ventures, Baheej Al Biqawi, CEO, Almajdouie Logistics Joint Ventures, also delivered speeches highlighting MdR’s many achievements and future plans. Furthermore, MdR General Manager, Rudy Sadi, expressed his gratitude for having the opportunity to lead such an outstanding company for the past five years. MdR offers bespoke supply chain solutions to the petrochemical industry in the Middle East. The joint venture combines the extensive expertise of Almajdouie Group of Saudi Arabia and De Rijke Group of the Netherlands, providing customers with a comprehensive range of safe, reliable, and quality-driven services. Backed by a highly skilled workforce, advanced IT systems, and modern infrastructure, the award-winning company assures compliance with international standards. Strict EHSSQ policies and procedures are also in place to maintain the quality of MdR’s services.
OCTOBER 2021 51
AD PORTS GROUP
KLP 7 will feature 56 medium lightindustrial and warehousing units.
Abu Dhabi’s Construction and Building Materials Sector spreads across 12.8mn sqm and growing
A
D Ports Group recently announced that the number of licences issued in the construction and building material sector in its Industrial Cities & Free Zone Cluster has reached 281, occupying a land area of 12,765,938sqm, in August 2021. A key sector of the UAE’s economy, the total market size of the construction sector was valued at US$ 101.45bn in 2020. According to analysts, the UAE’s construction and building materials markets are very mature and are expected to reach a value of US$ 133.53bn by 2026, registering an annual growth of 4.69 percent throughout 2021-2026. “The Emirate of Abu Dhabi has been attracting more construction and building material businesses that aim to seize the opportunities in this growing sector and target local and regional markets,” remarked Abdullah Al Hameli, Head of the Industrial Cities and Free Zone Cluster, AD Ports Group. AD Ports Group has witnessed an increasing interest from industry leaders in its Industrial Cities & Free Zone Cluster that covers over 550sqkm, of industrial and commercial land and is home to over 1,500 local, regional, and international companies. “We are committed to ensuring the reliability of our infrastructure within our sustainable, and highly efficient ecosystem with the needs of the heavy industries, building material, and construction sectors in mind,” commented Mohamed Al Khadar Al Ahmed, Chief Executive Officer, ZonesCorp.
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Abu Dhabi’s Group’s Industrial Cities & Free Zone Cluster comprises KIZAD, the largest integrated trade, logistics, and industrial hub in the region, and ZonesCorp, one of the largest operators of purposebuilt economic zones in the UAE, the press note concluded.
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DHL
DHL Mobile MEA Innovation Centre set for launch in Dubai First-of-its-kind modular building has been shipped from Germany to UAE
D
HL has announced plans to expand its global innovation centre footprint to the region with the launch of the Mobile Middle East and Africa Innovation Centre in October 2021. The MEA Innovation Centre is DHL’s fourth Centre globally, complementing the series of innovation centres in Chicago, USA; Cologne, Germany; and Singapore; and the first completely mobile one. The first stop will be in Dubai to coincide with the Expo 2020 Dubai in the UAE. “We are excited to bring the DHL Mobile MEA Innovation Centre looks forward to unveiling an inspiring journey into the future of logistics and showcasing a realm of possibilities and the many benefits of digital transformation for people and the planet. The Innovation Centre will act as a platform supporting research and collaborative innovation between DHL customers, start-ups, academia,
54 OCTOBER 2021
industry partners, and innovation experts,” affirmed Ken Allen, CEO, DHL eCommerce Solutions.
Innovation hub True to its identity as an innovation hub, the Mobile MEA Innovation Centre will be the first-of-its-kind modular building constructed off-site and transported to Dubai. The 450sqm temporary structure, is designed to be built, dismantled and then transported to the next location, making it ideal for a number of markets. The modular building, constructed in Germany, has been shipped to Dubai and will be assembled by October 2021, a true testimony of ‘Innovation That Moves’. The Centre will include exhibition and trend lab space, offices and meeting facilities.
The DHL Mobile Middle East & Africa Innovation Centre will be a stateof-the-art facility where customers, partners, academia, and thought leaders can experience the next generation of logistics in an interactive showroom environment. It is anticipated that the Mobile MEA Innovation Centre will spearhead the future of logistics and drive customercentric innovation across the Middle East region and beyond, focusing on key logistics innovation trends for the region such as Internet of Things, Artificial Intelligence and Data Analytics.
DHL
Ken Allen
Planned tours The DHL Mobile MEA Innovation Centre is planned to tour various countries in the Middle East & Africa through 2027. The facility is expected to stay in Dubai until mid-2022, then move to Qatar, the next location. Current technological advances in logistics are strategically aligned to the national ambitions and strategic visions of many of the countries in the region and their plans for digital expansion. The new Mobile MEA Innovation Centre will provide an inspiring and interactive visitor experience to explore the future of logistics. It showcases cutting edge innovation and solutions, projects and industry capabilities, extending the existing Innovation Centre ecosystem and helps customers drive digitalization. Working on latest trends and technologies, DHL is actively shaping the future of logistics and supply chain solutions, a press communiqué concluded.
DHL delivers 1 billion Covid-19 vaccine doses Vaccines shipped to more than 160 countries since December 2020 Since the global vaccine campaign began in December 2020, DHL has safely delivered more than 1 billion Covid-19 vaccine doses to more than 160 countries, playing a key role in the global vaccination roll-out, the company said in a press statement. ‘“In line with our purpose of ‘Connecting people, Improving Lives’, we will continue tapping into our cold chain infrastructure, resilient global network, and deep pharmaceutical logistics knowledge and experience of our people”, remarked Katja Busch, Chief Commercial Officer, DHL. “Our advantage is that we already had a sophisticated network in place with the necessary healthcare expertise. This allowed us to react swiftly”, explained Claudia Roa, President of Life Sciences & Healthcare, DHL Customer Solutions & Innovation. “We ship the vaccines in special active thermal containers equipped with state-
of-the-art GPS temperature trackers to ensure consistent temperatures and provide full transparency throughout the entire journey,” she continued. Multiple routes DHL Global Forwarding and DHL Express have been tasked with transporting vaccines on multiple routes from Europe and other origins to countries across Asia Pacific, South America, and Europe. DHL Supply Chain is responsible for the proper storage and local distribution of the vaccines in several German states, the press communiqué continued. “Making a meaningful difference is what drives us, and we are proud of our contribution to the enormous task of delivering the pandemic vaccines and related critical medical supplies to the right place at the right time, worldwide,” asserted Thomas Ellmann, Vice President of Life Sciences & Healthcare, DHL Customer Solutions & Innovation.
OCTOBER 2021 55
ETIHAD RAIL
Chaired by HE Sheikh Theyab Bin Mohamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court and Chairman of Etihad Rail, the company’s Board of Directors held a virtual meeting to review the latest progress of the construction works for the packages of Stage Two of the UAE National Railway Network, as well as other major achievements made in the third quarter of 2021.
n o i t c u r t s n o c s o e t w e l T p e om A of Stag c l i k a r R o d w t e a Etih of Packag ailway Ne as been works UAE NationanluaRl transport capacity h e ’s an k h r t o w f t ents e o m n e e e h r t g of la cia 0% r 4 e d m n m u o o c Ar ough r h t d e v reser
A
t a recent Etihad Rail Board of Directors meet it was announced that construction works for Package A of Stage Two, which extends over 139 km, and its connection through Al Ghuwaifat on the border of Saudi Arabia with Stage One, which extends for 264 km from Habshan to Al Ruwais were completed. This significant step brings the company closer to completing the UAE National Railway Network on schedule.
56 OCTOBER 2021
Sheikh Thayeb expressed his appreciation to the company and its team for their dedication, efforts and commitment to be able to achieve this important milestone in record time, completing it two months ahead of schedule.
Forging ahead HE noted that at a time when many sectors were subject to a slowdown due to the challenges presented by the Covid-19 pandemic, Etihad Rail has continued to forge ahead and complete the project according
to its clearly defined goals and comprehensive work plan. Throughout, Etihad Rail has ensured the continuity of business while implementing the required precautionary health and safety measures for all employees. HE also expressed his appreciation for the ongoing support provided by the relevant government entities and authorities to ensure this goal was achieved. At the board meeting, it was announced that Etihad Rail will continue its efforts to realise the wise leadership’s vision of developing this vital strategic project, which is one of the largest infrastructure projects in the UAE. Etihad Rail will connect vital areas in the seven Emirates via a track extending over 1200 km to enhance the UAE’s social and
ETIHAD RAIL
economic development. Throughout 2021, Etihad Rail was successful in reserving 40% of the network’s annual transport capacity, which by the completion of Stage Two will amount to 60 million tons of goods per year.
Commercial Agreements This was achieved through the commercial agreements Etihad Rail has signed including those with Stevin Rock, one of the biggest quarrying companies in the world, Western Bainoona Group, and Al Ghurair Iron & Steel (AGIS). The company will continue to establish further commercial partnerships and strategic agreements so that various companies benefit from the unparalleled services, economic and logistical advantages of the UAE National Railway Network. During the meeting, the Board reviewed the company’s financial performance for the third quarter of 2021, and approved the capital budget for 2021. The charter of the Audit Committee was also approved, which includes a
number of policies and procedures related to governance, such as transparency, integrity, and institutional work. In addition, the agenda of the General Assembly of Etihad Rail DB, the operating partner for Stage One was reviewed.
More milestones Etihad Rail will continue to strengthen its efforts to achieve further milestones in construction works and operations in line with the wise leadership’s vision,
as well as the UAE’s Golden Jubilee celebrations as the country looks towards the future, a press statement concluded. Etihad Rail was established in June 2009 under Federal Law No. 2, with the mandate to manage the development, construction and operation of the UAE’s national freight and passenger railway network. The railway network will link the principal centres of population and industry of the UAE, and will form a vital part of the planned railway network across the GCC.
OCTOBER 2021 57
MYCRANE
Recently launched MYCRANE set for immediate expansion as new franchisees are appointed Material Handling Solutions plays an essential role in supply chain management The new digital platform to simplify the process of crane rental procurement
M
YCRANE, a global business-to-business (B2B) platform (accessed at https://my-crane.com/), allows users to submit details of their lifting requirements in order to receive immediate and personalised quotes from a range of registered crane providers. Besides the lifting services search, MYCRANE offers versatility with a number of other tools for the crane industry, including a Marketplace and support services such as engineering and legal consultancy. The site has been developed by entrepreneur and industry professional Andrei Geikalo, a former commercial director in the heavy lift and project cargo sector.
Turning point “MYCRANE was born out of the desire to change the existing outdated and inconvenient methods of procuring crane services, and to make life easier for those who require lifting services,” affirmed Geikalo, Associate Founder, MYCRANE. “At present, crane rental is a manual, old-fashioned process that takes far too much time. In launching the service, we have combined the latest digital technology with our long industry experience. I have personally been involved in countless heavy cargo and lifting projects, so I know only too well how useful our service will prove to be,” continued Geikalo. “With MYCRANE, there are
58 OCTOBER 2021
no more phone calls or unclear quotations to decipher - just easyto-understand quotes delivered direct to your inbox. And when you need to change your quote, simply amend your online request at the MYCRANE website and our equipment providers will be back in touch,” he explained.
Meticulously developed MYCRANE, which took over two years to develop, removes the need for users to contact multiple equipment providers. Instead, users are requested to complete an online request form which has been carefully designed to ensure they receive directly comparable quotations.
The platform is suitable for cranes between 6 and 750 tonnes capacity. Crawler, mobile and tower cranes can all be requested on the site. In addition, the team is intensively working on adding new crane types, such as fast assemble tower cranes, gantry cranes, mini cranes and others. The MYCRANE service, which is headquartered in Dubai, UAE, operates on a franchise model, and enquiries are welcomed from industry professionals who may be interested in operating the MYCRANE service in their home country. MYCRANE is already operational in Russia and will soon be launched in key international markets including the United
MYCRANE
States, Canada, the United Arab Emirates, Saudi Arabia, Turkey, Germany, the Netherlands, South Korea, Thailand, Vietnam and Singapore.
Wide services range As well as a lifting services search, there are plans to introduce an online marketplace to advertise used equipment, rigging equipment, spare parts and auxiliaries and career vacancies, while a news portal will allow users to stay up to date with the latest industry developments. “In time, additional features will be offered, including engineering and design services and legal support. We believe MYCRANE will set a new standard for the lifting business making crane rental easier, quicker and more transparent,” concluded Geikalo.
Global Supply Chain (GSC): Why did MYCRANE choose to make a foray in Dubai / UAE at this juncture? Andrei Geikalo (AG): The UAE is among the biggest worldwide markets for construction, and one only has to look out of the window to see the huge amount of projects going on in Dubai. There are cranes everywhere! As well as registering our head office in Dubai, we recognize that the UAE is an
extremely active and important market which requires a dedicated team to service it and handle local operations.
Andrei Geikalo, Associate Founder, MYCRANE, responded to an exclusive questionnaire by Global Supply Chain. He spoke on a range of subjects from the timing of the launch, the business potential and expansion among others.
OCTOBER 2021 59
MYCRANE
GSC: What prospects do you foresee presently? AG: The myriad of construction and infrastructure projects taking place in the UAE and elsewhere mean there is great potential for the MYCRANE service. Why waste time making phone calls, or chasing multiple service providers when you can easily and quickly make your request online? GSC: What are your expansion plans for the region both short and long term? AG: Our short terms plans are to secure business partners in the other key markets in the region, chief among them Saudi Arabia and Qatar (following our recent launches in the United Arab Emirates and Oman). Once we have done so, we will look to appoint partners in all countries in the region, in order that we are fully operational in the Middle East. Long term, we intend to grow our platform to the extent that MYCRANE is considered the home for anything to do with cranes. This is reflected in our slogan, ‘Uniting the Lifting Community’. We will do this by expanding our portfolio of services, introducing an online Marketplace and launching an international cranes conference and exhibition (to take two examples). GSC: What is the MYCRANE revenue model? AG: When a customer accepts a crane rental via the MYCRANE site, a three-party agreement is made between the customer, crane provider and MYCRANE’s local franchisee. The client pays the charges for crane rental to MYCRANE’s franchise company, who subsequently pays the crane provider (after deducting a fee). GSC: Briefly walk us through the crane / hiring / rental process and the oversight you exercise over the transaction to protect the interests of services provider / hirer? AG: The crane rental process
60 OCTOBER 2021
begins when a customer registers on our website, for free, and posts details of their project. All information is recorded using our carefully-designed form, which has been developed by a management team with many years of experience in the industry. Registered crane companies then respond to the proposal, and the customer is notified as soon as a quote is generated. Note that we are not a listing service – prices do not appear next to each other on the screen, rather quotes are prepared on an individual basis and sent to the client for review. Our due diligence starts as soon as we receive a registration on our website - we have extensive procedures in place to check the assets of our equipment providers exist, and are available as described. Only once our cheques are completed will an equipment provider be permitted to list their
assets on MYCRANE. GSC: Assess the business potential for MYCRANE. AG: Yes, besides the world’s first digital tool for the search and selection of cranes – which is what we are most famous for – MYCRANE actually offers a number of other valuable services. These include legal consultancy, selection of the cranes, method statement, engineering, design and an online Marketplace for the sale and purchase of new, used cranes, spare parts and auxiliaries, and rigging equipment. The platform will also launch a career vacancies tool, where employers can efficiently attract employees from the crane industry. We would particularly like to emphasise our in-house engineering and technical support, which is offered on a truly independent basis and that’s something that’s highly valued by our clients.
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