GLOBAL SUPPLY CHAIN NOVEMBER 2020 by GLOBAL SUPPLY CHAIN

November 2020 Issue 74

ENHANCING THE BUSINESS OF LOGISTICS

GCC Free Zones on a roll Special Economic Zones under the scanner by potential investors

Jeddah Islamic Port Gateway to the Kingdom

Turkish Cargo Winning plaudits

Emirates SkyCargo

DWC becomes Pharma Hub

RAISING THE BAR WELCOME TO SMARTIST, OUR NEW HIGH-TECH FACILITY IN ISTANBUL - THE LOGISTICS CENTRE OF THE WORLD. WE'RE ALSO RAISING THE BAR FOR ENVIRONMENTAL RESPONSIBILITY AND CUSTOMER-FOCUS, MOVING TOWARDS OUR GOAL OF BECOMING THE WORLD'S LEADING AIR CARGO BRAND.

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     

Leveraging Free Zones 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

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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.

There is no doubt that Free Zones are considered a springboard and levers for boosting businesses, trade and commerce. The Free Zones industry in the GCC, notably the UAE and Saudi Arabia and the wider Middle East, has performed spectacularly over the past decades and the challenge remains to retain that momentum in the shadow of the pandemic. Since a major objective of creating free zones is to increase exports, most free zones around the world are either ring-fenced enclaves exempt from national import and export duties or formally operate outside the customs area of their host country. Governments often add other benefits to the package, such as tax, regulatory, administrative and financial incentives. Free Zones generally fall into one of four categories: free trade zones, export processing zones, special economic zones, or industrial zones. Free Trade Zones, typically located near seaports or airports, mainly offer exemptions from national import and export duties on goods that are re-exported. Export Processing Zones go a step further by focusing on exports with a significant value added, rather than only on re-exports. Special Economic Zones apply a multisectoral development approach and focus on both domestic and foreign markets. They offer an array of incentives including infrastructure, tax and custom exemptions, and simpler administrative procedures. Industrial Zones are targeted at specific economic activities, say media or manufacturing, with infrastructure adapted accordingly. On another note, one immediate fallout of the Covid-19 global pandemic is the emergence of a new strain of logistics—the Vaccine Logistics. On that count, it is heartening to note that Emirates SkyCargo is stepping up its readiness to handle the logistical complexities of distributing a potential Covid-19 vaccine globally by creating the world’s first dedicated airside cargo hub for the vaccine in Dubai. The air cargo carrier is taking a global leadership position by announcing that it will be re-opening its Emirates SkyCentral DWC cargo terminal in Dubai South to serve as a dedicated anchor hub for cold chain storage and distribution of the vaccine, the carrier revealed in a recent press communiqué. Also included in this edition, as always, is our regular news roundup; focus reports; industry articles and a series of well-curated thought leadership articles of interest for logistics and supply chain professionals.

Happy reading! Malcolm Dias

Editor malcolm@signaturemediame.com

NOVEMBER 2020 3

November 2020 Issue 74

20 Business of Free Zones 06 NEWS 28 Kurita-AquaChemie JV 30 Dubai Customs 32 Jeddah Islamic Port 34 GPCA 35 Tradeshift 38 UPS 39 SkyCargo Pharma Hub

Special Economic Zones are an integral part of the Middle East landscape.

Up to date news of the Global Suppy Chain industry Producing specialty products for the chemicals industry

Chronicling success

Winning laurels as the Kingdomâ&#x20AC;&#x2122;s Maritime Gateway GCC agri-nutrients a key component of global food security Global Supply Chain activity surges to pre-pandemic levels in Q3-2020-Report UPS reports growth across all segments in Q3-2020 Plans are on course to develop DWC into a pharma hub

4 NOVEMBER 2020

Craig: 42 Tom Supply Chain Vulnerability

Talking Supply Chain resilience and business continuity

46 Prioritizing ESG 47 Sustainability 48 Supply Chain Investment 50 Transportation 53 Etihad Rail 54 Vaccine distribution complexities 60 Cybersecurity Environmental, Social and Governance principles set to evolve post pandemic Technologies are key to combating environmental pillage

Investing in supply chain management is no longer just for big companies Tips on how outsourcing can help save the public transport sector Key developments on track

Eelco Dijkstra and Laurent Foetisch mull over the Covid-19 vaccine downstream solutions.

Signs that your security stack needs simplifying

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AP Moller-Maersk upgrades expectations for Q3 and 2020 full year guidance

A section of the CargoAi Team.

Søren Skou, CEO, AP Moller-Maersk. n AP Moller-Maersk is changing its full-year guidance for 2020 based on preliminary Q3 figures and the current outlook for Q4-2000, the company stated in a recent press communiqué. “AP Moller-Maersk is on track to deliver a strong Q3-2020 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services. The outlook for Q4-2020 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year,” cautioned Søren Skou, CEO, AP Moller-Maersk “The outlook for 2021 remains uncertain due to the ongoing pandemic. The positive impact from stimulus packages may be less strong in 2021, potential new lock downs will impact demand and the timing and effectiveness of a potential vaccine will impact 2021,” he continued. The company now reports unaudited revenue of US$ 9.9bn and an EBITDA before restructuring and integration costs of US$ 2.4bn for Q3-2020, driven by a continued recovery in demand and our initiatives to improve cost. Volumes in Ocean declined by around 3 percent in Q3-2020 compared to previous year, which is slightly better than the anticipated mid-single digit contraction. Trading conditions for the quarters ahead remain subject to a higher than normal uncertainty given the disruptions caused or potentially being caused by Covid-19. AP Moller-Maersk will publish its Q3-2020 interim result on 18 November 2020, the press statement concluded. 6 NOVEMBER 2020

CargoAi simplifies digitization of air cargo operations

n The founders of CargoAi have a strong background air cargo

industry, and that sets them apart from the many e-booking platforms that are emerging, the company announced recently in a press communiqué. Digital transformation is no longer disruptive: it’s already here. By combining their collective cargo experience with world-leading technology, the team of experts is facilitating the industry’s transformation. Now digitalization is simplified and CargoAi proves it, the statement continued. The idea developed by Matthieu Petot, CEO and Founder, CargoAi connects 100% of airlines and GSAs to freight forwarders by simplifying the entire process via an intuitive online platform. “We have taken our inspiration from the many modern applications that have been built recently and the SaaS model where training, support and the user journey is very intuitive,” commented Petot. CargoAi is the only platform that allows freight forwarders to connect with 100% of airlines from every country in the world, either via direct API connections or a unique and efficient quote issuing/ booking process. This innovation offers an enormous advantage: it is no longer necessary to make individual connections with each airline, the statement said further. The application is intuitive, modular, and offers fully tailor-made solutions to all airlines and freight forwarders (both large and small alike). Making connections is now possible, with or without a sophisticated IT system, and GSAs also benefit from bespoke solutions, according to the press note. “Through our experience in cargo, we saw that the buying and selling processes hadn’t moved forward. We brought together the best talents, we combined their skills to create an online platform considering the obstacles of digitalization in our sector,” added Petot.

Emirates Delivers completes one year of going operational n Emirates Delivers, the e-commerce delivery platform developed by Emirates SkyCargo has successfully completed its first year of operations delivering according to a company press release. A fast, reliable and cost-effective international e-commerce shipping solution, Emirates Delivers has been well received in the market, the press statement continued. Emirates Delivers is targeted both at individual customers as well as small businesses in the UAE who regularly shop online at international e-commerce websites for their personal or business needs. The service, currently available for UAE residents shopping from websites in the US, helps customers save on shipping and transportation charges by allowing them to consolidate purchases from multiple online retailers in the US into a single package and have it delivered to a home or office address in the UAE. Emirates Delivers offers free registration, a complimentary Emirates Delivers US shipping address that customers can use when shopping on US websites and 30 days free storage at the shipping address.

Emirates Delivers, Emirates SkyCargo’s e-commerce solution in the UAE.

JAFZA and Etihad Credit Insurance sign strategic deal n Jebel Ali Free Zone (JAFZA) has

entered into a strategic agreement with Etihad Export Credit Insurance Company (ECI), the UAE’s Federal export credit company, to support local businesses, advance exports, and drive the UAE economy during the current economic climate. The Memorandum of Understanding (MoU) was signed virtually by Mohammed Al Muallem, CEO & Managing Director, DP World, UAE Region and CEO, JAFZA, and Massimo Falcioni, CEO, ECI, and witnessed by senior officials. As per the MoU, ECI will provide export insurance services to companies licensed by JAFZA. It is a result of the shared objectives of JAFZA and ECI to solidify the UAE economy globally and strengthen the UAE’s position as the preferred global hub for exports. Through this collaboration, the two entities intend to assist and sustain members exploring export to foreign countries and sectors, also providing country risk reports in international trade activities. “Owing to the current economic climate due to the global

JAFZA and ECI officials after signing the agreement. pandemic, we believe that partnerships like these will reinforce business relations and help us safeguard the interests of businesses and investors,” commented Al Muallem. “ECI remains keen to boost diversification and ensure that the UAE economy thrives in a post-oil era, and our tailored solutions offer protection from risks and business continuity during such unprecedented times,” remarked Falcioni.

NOVEMBER 2020 7

Tradeling and Freightos.com enter exclusive partnership n Tradeling, the eMarketplace focused on business-to-business (B2B) transactions in the Middle East and North Africa (MENA) region, has brought another innovative and value-added service for the business community through simple, effective and cost-competitive freight booking and management, the company revealed in a press communique. Marking a regional first, Tradeling has launched Tradeling Smart Freight, augmenting B2B eCommerce with realtime freight procurement via Freightos. com, the world’s largest digital freight marketplace. With Tradeling Smart Freight, powered by Freightos.com’s Freight-as-a-Service, businesses can benefit from online, real-time access to compare, book and manage their air, ocean and land freight services whether they are active on the

Muhammad Chbib, CEO, Tradeling. Tradeling platform or not. “SMEs will stand to benefit from Tradeling’s partnership with Freightos. It means more small-to-mediumsized enterprises can access goods and

services in other parts of the world to better serve their customers,” remarked Dr. Mohammed Al Zarooni, Director General,Dubai Airport Freezone Authority. “Through our partnership with Freightos.com we have created an online freight booking ecosystem within our digital platform. This brings an innovative, business-critical digital transformation as logistics is at the heart of trading,” commented Muhammad Chbib, CEO, Tradeling. “By integrating our Freight-as-aService capabilities with Tradeling, we can bring our customer-centric shipment booking and management capabilities across our network of logistics providers in key markets to the business community in the MENA region,” noted Ruthie Amaru, CEO, Freightos.com

Tristar awarded by Arabia CSR Network for its Health and Safety Programme n Tristar Group was awarded

by the Arabia CSR Network for its ‘Safety at Sea’ initiatives at the recent Arabia CSR Awards 2020 held in Dubai. Tristar has been involved in raising safety awareness at sea in collaboration with other stakeholders in the industry. In November 2019, Tristar’s Shipping Division organized the ‘Safety at Sea Conference’ which addressed the topic of mental health amongst seafarers. The initiative is aligned with the UN Sustainable Development Goals No.3,/3.4 which states that ‘By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being’. Following the conference, Tristar organized a series of town hall-style workshops 8 NOVEMBER 2020

Tristar Shipping CEO Chris Peters (3rd R) receives the Award from Eng. Sheikh Salem Bin Sultan Bin Saqr Al-Qasimi (2nd R), Chairman, Department of Civil Aviation, Ras Al Khaimah. focused on psychological first aid (PFA) for Vessel Masters and Senior Officers in Mumbai, India. During the Covid-19 pandemic, the PFA workshops were conducted through video conferencing. Tristar also established a dedicated helpline that is handled by the Sailors’

Society in the UK. All crew members and their families have access to use the 24/7 helpline. It enables seafarers the opportunity to book a ship visit in advance and provide continuity of care by following seafarers as they move from port-to-port and ensuring that counsellors visit them.

“Whilst we are all encouraged to talk about mental health, it seems that it is still a taboo subject amongst seafarers and as a result they are missing out on vital support and treatment at what could sometimes be early stages of depression,” affirmed Eugene Mayne, Group CEO, Tristar.

Etihad Cargo launches PharmaLife n Etihad Cargo has reinforced its pharmaceutical logistics expertise with the launch of PharmaLife, a specialised pharma and healthcare product which replaces the carrier’s TempCheck product. As the first carrier in the Middle East to gain IATA’s Centre of Excellence for Independent Validators (CEIV) certification for pharmaceutical logistics, the PharmaLife launch highlights Etihad Cargo’s prioritisation of the pharma and healthcare sectors. The specialised product will serve the anticipated global demand for swift and secure shipment services ahead of a Covid-19 vaccine. “The pandemic prompted a reassessment of our top-level services to ensure we can address the specific requirements for shipping high volumes of in-demand product in very short timescales,” explained Andre Blech, Head of Operations & Service Delivery, Etihad Cargo. The PharmaLife offering is hallmarked by two tailormade, sector-specific shipment solutions: global lease Active and Hybrid containers with PharmaLife Active solutions for premium, sensitive products.

PharmaLife will enhance the already available industry-leading services and features offered by Etihad Cargo. As part of the role out, Etihad Cargo is currently reviewing the refurbishment of a dedicated pharmaceutical handling facility to accommodate increased capacity at its hub in Abu Dhabi, as well as further thermal covers, and enhanced capabilities at origin stations based on pharma trade lanes and specific requests.

DP World UAE Region tackles key industry challenges and opportunities in recent forum n DP World, UAE Region

was a part of the recent CEO Forum--Challenges and Future Opportunities for Ports and Shipping in the Gulf Cooperation Council. The event united industry experts who shared insights on the hurdles faced due to the current COVID crisis and elaborated on favourable opportunities in the region. The panel of speakers included Sheikh Yousef Al Abdullah Al Sabah Al Nasser Al Sabah, Director-General, Kuwait Ports Authority and President, Arab Sea Ports Federation, Kuwait; Shahab Al Jassmi, Commercial Director of Ports and Terminals - DP World, UAE Region; Lars Meurling, Vice President Marketing, Bromma, Sweden; Susan Hunter, CEO, APM Terminals Bahrain; Anupam Asthan, SVP, Sales and Marketing, Gulftainer, UAE and Mark Geilenkirchen, CEO, SOHAR Port and Freezone, Sultanate of Oman. Shahab Al Jassmi spoke about the roadblocks in business due

Shahab Al Jassmi, Commercial Director of Ports and Terminals - DP World, UAE Region. to the global crisis and also revealed key strategies DP World, UAE Region employs to overcome these challenges. He also shed light on the significance of embracing digital models of business to enhance

the supply chain. “It’s time for us to move away from old ways and adopt improved strategies to sustain in this new world,” observed Sheikh Al Sabah. “As a community, we must

endeavour to devise a flexible and open approach and be prepared for future challenges. We at APM Terminals are taking all the necessary precautions in order to sustain trade flow,” remarked Hunter. NOVEMBER 2020 9

Gulftainer makes new CEO appointment

Qatar Airways Cargo makes key appointment

Charles Menkhorst, CEO, Gulftainer.

n Gulftainer has announced the appointment of Charles Menkhorst as its new CEO. Former CEO Peter Richards will continue to serve on Gulftainer’s Board of Directors and lead the expansion of the company’s footprint in the United States as CEO, GT USA. In his new role as CEO of Gulftainer, Charles is tasked with oversight of the strategic growth of the company, which currently operates and manages ports and logistics businesses in its home base in the UAE, and internationally across Iraq, Lebanon, Saudi Arabia and the USA. “Charles Menkhorst brings a wealth of supply chain experience with him, which will prove invaluable in driving Gulftainer into its next chapter of growth. Charles will also lead Gulftainer’s digital transformation strategy and the development of sustainable infrastructure across our operations globally,” commented Badr Jafar, Chairman, Gulftainer and CEO, Crescent Enterprises. “We have a team of empowered professionals who are ready to write the next chapter of Gulftainer’s globalization and develop new services to deliver world-class maritime supply chain solutions to our clients,” remarked Menkhorst. With over 25 years of experience in the international maritime industry, Charles Menkhorst has served in several key roles for international conglomerates DHL Worldwide Express and APM Terminals. His previous role was Group CEO at Luxemburg-based ports infrastructure group Euroports. Gulftainer is a privately owned, independent port operator and a subsidiary of Crescent Enterprises. 10 NOVEMBER 2020

Kirsten de Bruijn, Senior Vice President, Cargo Sales and Network Planning.

n Qatar Airways Cargo has announced that Kirsten de Bruijn has

joined the Airline in the capacity of Senior Vice President, Cargo Sales and Network Planning. An Air Cargo veteran with 13 years of experience in management in the air cargo industry, she shares Qatar Airways belief that the pace of change brought about by recent global events demands value-centred leadership around revenue and margin management. “Qatar Airways is a world leader in this space and our ability to constantly adapt and adjust will continue to be part of the fundamental premise of our air cargo strategy,” remarked Guillaume Halleux, Chief Officer Cargo, Qatar Airways. “Part of my role is to build a sense of team spirit and collective purpose. I like to hire people that are better at what they do than I am, so I can create the best team possible,” commented Kristen on her appointment.

Majid Al Futtaim boosts Carrefour’s online capabilities n Majid Al Futtaim, has opened its largest regional Carrefour online fulfilment centre in Saudi Arabia. Located in Riyadh, the facility has been set up to ensure the quick and efficient preparation and delivery of products to online shoppers across the capital. The new fulfillment centre spanning 9,000sqm was recently inaugurated in the presence of officials from the Kingdom’s Ministry of Commerce and Investment. Over 500 employees fulfill customers’ needs with a range of over 12,000 essential grocery products, fresh fruits and vegetables, cleaning products, and more, delivered through 150 refrigerated trucks, the retailer revealed in a press communique. The centre was set up in response to the exponential growth in online shopping following the pandemic and will contribute to keeping pace with the increased demand. “The pandemic has brought about an unprecedented acceleration of digital adoption. This has enabled us to quickly enhance our online capabilities to cater to the new norm which is why we launched our largest fulfilment centre in Saudi Arabia to cater for the exponential demand for e-grocery,” commented Hani Weiss, CEO, Majid Al Futtaim Retail. The new centre in Riyadh is the tenth and largest fulfilment centre operated by Majid Al Futtaim, following the opening of other centres across the Kingdom in Riyadh, Jeddah Medina, Dammam, and Khobar.

MAF Retail and Saudi Arabian officials at the inauguration of the new Fulfillment Centre in Riyadh.

Pepsi bottling plant in Saudi Arabia goes live with Infor WMS n Infor recently announced that MenaBev, a multinational franchise organization of PepsiCo, has implemented Infor WMS warehouse management solution at its more than 300,000sqm bottling facility in Jeddah. Underpinning MenaBev’s end-to-end operation, from raw material receipt through to the production, storage and shipping of finished goods, Infor WMS will increase automation across the organization, optimizing business processes to boost capacity and support continued growth. The project was successfully managed by Infor alliance partner SNS, a leading provider of supply chain consultancy and software implementation. With eight production lines and thousands of transactions daily between different systems, MenaBev’s facility is the largest operation of its kind in the world. The automation at this MenaBev facility is state-of-the-art: LGVs (laser guided vehicles) manage raw materials and replenishment to

the lines while a High Bay AS/RS (automated storage and retrieval system) has a capacity for more than 36,000 pallets. MenaBev solicited the expertise of SNS consultants in WMS software to complement its offering for this green field project, drawing on the SNS team’s vast experience in managing such large, complex implementations to ensure the right solution to fulfill MenaBev’s specific needs. “Thanks to the new system, we have visibility over all our warehouse processes. We have worked very closely with the SNS team to ensure we implement the best solution for our extensive operation,” remarked Tamer Salem, MES and Automation Manager, MenaBev. Infor WMS will integrate with all of MenaBev’s key systems to facilitate end-to-end visibility, which is crucial in generating real-time insights, and enhancing decision-making to support future growth,” commented Wael Mabsout, Senior Manager, SNS.

NOVEMBER 2020 11

STREIT Group announces major expansion following global demand

Bee’ah commences operations in KSA with showcase event

The commmeorative ceremony of the expansion of STREIT Group, RAKEZ.

Bee’ah commences operations in Saudi Arabia.

n In a recent virtual ceremony, STREIT Group, the world’s leading privately-owned armoured vehicle manufacturer, announced the launch of Phase-3 of its ongoing expansion project. The company provides 360-degree security solutions with cutting edge technology. Graced by the presence of Sheikh Ahmed Bin Saqr Al Qasimi, Chairman, Ras Al Khaimah Economic Zone (RAKEZ), the 30-year-old group announced its endeavours to meet the ever-growing global capacity demand. In line with its vision to offer innovative 360 security solutions with cutting edge technology, Phase-3 will see the construction of six additional buildings, increasing the existing 86,000sqm by 65,000sqm. Phase-3 includes a 18,000sqm body fabrication facility; a 19,500sqm incomplete chassis parking; a 15,000sqm 12 NOVEMBER 2020

building to host R&D, a stateof-the-art showroom and a training academy; a 7,800sqm vehicle-based production facility and a 7,300sqm finished product storage area among other facilities. The project is expected to be completed by the close of Q1-2021. “We have seen an increase in demand for our products and services with a push towards developing high-tech products. Our expansion aims to meet this demand, and deliver on our promise to continue being the leading private armoured vehicle manufacturer’, affirmed Guerman Goutorov, Chairman, STREIT Group. STREIT Group armoured vehicles are deployed by armed forces globally and are known to have saved countless lives of people around the world especially in high-risk situations. All vehicles undergo internationally recognized ballistic and impact testing, with a 100% safety track record.

n Bee’ah, the Middle East’s award-winning sustainability

pioneer, has commenced operations in the Kingdom of Saudi Arabia after securing a contract to service AlMadinah Al Munawarrah, marking the milestone with a launch ceremony. The ceremony was attended by Eng. Fahad AlBuliheshi, Mayor, Madinah Regional Municipality, and a number of government officials and media representatives in the region who were welcomed by Bee’ah’s leadership team, including Fahad Shehail, Group Chief Operating Officer; Eng. Sultan Al Ghamdi, Projects General Manager, and Rafael Sanjurjo Lopez, CEO, Public Cleansing & Waste Collection – ndeef. Contracted by Madinah Regional Municipality, Bee’ah will provide solid waste collection and transport services along with disinfection and sanitisation of 40,685 waste bins. Bee’ah’s started operations this month, with the utilisation of over 3,000 workers and 488 pieces of heavy equipment and fleet of vehicles including waste collection units, street sweepers and disposal trucks. “Bee’ah has established itself as the Middle East’s leading waste management and environmental services company, and our reputation has led to Bee’ah’s rapid expansion across the UAE, Egypt and now in the Kingdom of Saudi Arabia,” remarked Salim Bin Mohammed Al Owais, Group Chairman, Bee’ah. “Bee’ah’s mandate has always been to raise a more sustainable quality of life for the communities that we serve, and this is backed by a commitment to excellence,” commented Khaled Al Huraimel, Group CEO, Bee’ah.

Emirates Group Security signs MoU with SIRA to expand cooperation n Emirates Group Security and the Security Industry Regulatory Agency (SIRA), a governmental agency regulating the Security Industry in the Emirate of Dubai recently signed a Memorandum of Understanding (MoU) to work closely on joint security training and education, information sharing and exchange of best practices across different aspects of security. The MoU was signed by Dr Abdulla Al Hashimi, Divisional Senior Vice President Emirates Group Security and Chief Executive Officer Transguard Group and Major General Khalifa Ibrahim Al Saleis, CEO, SIRA. The signing ceremony was attended by the senior management of SIRA, Emirates Group Security and the Centre of Aviation and Security Studies (CASS). “Investing in human capital training and education is essential to equip the workforce and advance our abilities to rise to the occasion to meet new challenges,” remarked Dr. Al Hashimi. “Working alongside Emirates Group Security allows SIRA to build its capabilities, professional accreditations and standards, as well as advance constructive dialogue, especially in the realm of security education and learning and development,” commented Major General Al Saleis. The cooperation will kick off with Emirates Group Security’s X-ray training program, which will be reviewed and extended to organizations in Dubai and then rolled out to other emirates.

n Accenture and Blue Yonder

are now helping clients across retail, consumer goods, and high-tech industries to outmaneuver uncertainty with intelligent supply chain transformations that capitalize on the benefits of a cloud-first approach, it was revealed in a recent press statement. By expanding its alliance with Blue Yonder, Accenture will expand and scale its Supply Chain & Operations practice with new capabilities and skills to meet that demand. Accenture research shows more than three-quarters (76%) of supply chain and operations c-suite executives agree that their company will accelerate its digital transformation, including its emphasis on using the cloud. “Companies are under incredible pressure to reimagine and transform their supply chains to be more responsive, efficient, sustainable and

Emirates Group Security signs MoU with (SIRA) to expand cooperation.

Accenture and Blue Yonder accelerate supply chain transformation in the cloud

Accenture and Blue Yonder have partnered to provide cloud-based supply chain solutions. resilient to enable purpose-led growth – and they’re prioritizing cloud at the core of their efforts,” said Kris Timmermans, Senior Managing Director and Accenture’s Global Supply Chain & Operations Lead. “Together with Accenture, we will drive greater client value

with proven methodologies that help companies achieve their visions for resilient supply chains by putting cloud at the centre,” said Mark Morgan, Executive Vice President – Worldwide Commercial Business, Blue Yonder. Accenture and Blue Yonder

will offer advanced supply chain expertise and solutions across the value chain from planning to logistics; providing end-to-end visibility, while also fast-tracking existing client journeys to a more cost-effective and agile cloud architecture. Building on its deep expertise in cloud services, the press note continued. Leveraging Accenture’s deep industry and technology experience and its global network of Innovation Hubs, the companies will also jointly develop innovative fit-for-purpose supply chain offerings that leverage Blue Yonder’s cloud-based Luminate platform, which runs on Microsoft Azure Cloud, the statement concluded. NOVEMBER 2020 13

dnata forays in the Indonesian aviation sector n Dnata has further expanded its footprint in the AsiaPacific region and entered the Indonesian aviation market by partnering with UNEX Rajawali Indonesia (UNEX). Based at Soekarno-Hatta International Airport (CGK), Jakarta, UNEX is a leading ground handling and cargo warehouse company. The strategic partnership will see dnata and UNEX enhance ground handling capacity in Indonesia by making joint investments in facilities, equipment and training. The collaboration will launch in Jakarta (CGK) with plans to expand it into other Indonesian airports over the next years. “We look forward to a long-standing, successful partnership with UNEX which we expect to bring significant benefits for airline customers,” remarked Dirk Goovaerts, Regional CEO, Asia Pacific, dnata. “We believe dnata’s global experience and network, combined with our local expertise, will reinforce Indonesia’s position as regional aviation hub, promote industry best practices,” commented Budiman Tedja, President Director, UNEX.

Dubai Customs’ online services now almost touch the 100% benchmark n Dubai Customs has raised the

percentage of online services to 99.3%, completing 7.2m transactions during H12020, growing 38.5% compared to 5.2mn transactions in the corresponding period last year. This has led to reducing time and effort on clients and reduced cost on businesses. With this in mind, Dubai Customs, following its digital transformation policy, announced the closure down of some customer service centers, while boosting services at its open centers to meet the needs of all clients. Clients can access Dubai Customs services through a number of channels made available by the government department including the website, smart applications, and self-service machines. “Our clients can access our services anytime from anywhere, and this has reduced footfall on traditional counters to less than 0.7% of the total, and led to more client happiness, and reduced operational cost,” remarked Mohammed Al Muaini, Legal Affairs Consultant, Dubai Customs.

14 NOVEMBER 2020

Almarai announces next phase of digital transformation n Almarai, the Middle East’s largest food & beverage manufacturer and distributor of dairy products, baked goods, poultry, juice, food, desserts, and infant formula, has announced the next phase of its digital transformation with the global technology company SAP to optimize operations and support food self-sufficiency in Saudi Arabia and the region. Almarai has extended its two decades’ partnership with SAP. The SAP S/4HANA real-time intelligent suite is spread across all lines of business to support future business growth and help create Almarai of tomorrow. “By advancing our digital transformation, SAP’s real-time technologies are intending to optimize our resources, reduce waste and drive a leaner operation. Our aim is to deliver high-quality and nutritious food and beverages to our consumers at the right time,” commented Majed Nofal, CEO, Almarai. As part of its roadmap, Almarai is working with digital business consultants McKinsey and SAP Services. Almarai is deploying SAP S/4HANA real-time business suite, which will run on a HANA Enterprise Cloud platform that is managed by SAP. “Almarai shows how Middle East food and beverage

Majed Nofal, CEO, Almarai manufacturers can leverage real-time technologies to drive innovation, enhance margins, and deliver products that meet consumers’ expectations,” remarked Mohammed Alkhotani, Managing Director, SAP Saudi Arabia.

Fifty new PEUGEOT 301 models added to Udrive fleet n Swaidan Trading, the exclusive distributor of PEUGEOT in

Dubai and the Northern Emirates, recently announced that it has provided Udrive, the Middle East’s first car sharing provider, with 50 of its PEUGEOT 301 compact sedans. The stylish PEUGEOT 301 is a practical, fuel-efficient sedan that features a host of options including a 7-inch touchscreen, rear camera and sensors, and cruise control. It guarantees an elegant and connected drive for all journeys, Swaidan Trading said in a press communiqué. “Our main focus is to ensure we meet the everchanging demands of our customers, and this move reaffirms our evolution as a brand to help enable safe, secure and comfortable means of mobility,” commented Greg Cottrell, General Manager, Automotive, Swaidan Trading. “This is another step we took towards providing our urban-dwelling, tech-savvy consumers with smart, affordable and diverse mobility options. Features like the Apple CarPlay and Android Auto set a high standard for in-vehicle technology,” remarked Hasib Khan, CEO, Udrive.

NOVEMBER 2020 15

New Sanad and Etihad Airways deal expands US$ 900mn partnership

Swisslog partners with H-E-B, a leading Texasbased retail chain

n As demand for online grocery services continues

Troy Lambeth, Sanad Group CEO.

n Sanad, a wholly owned subsidiary of Mubadala Investment Company, and Etihad Airways, have closed a new spare engine deal which further cements Abu Dhabi’s position as a selfsustaining international aviation sector hub. The announcement of the new deal came during the Global Aerospace Summit in Abu Dhabi, where industry leaders convened to discuss the impact of the pandemic on the aerospace, defence and space industries. The new deal, which expands the US$ 900mn-plus partnership between Sanad and Etihad Airways for additional spare engines and rotable components, includes a sale-andleaseback (SLB) agreement for an additional GEnx engine and a Rolls Royce Trent XWB engine, with a second XWB spare option. Sanad will also provide access to increased B787 rotable components and extended terms for existing GEnx spare engine agreements. “We remain fully committed to Etihad Airways, and this agreement expands and deepens our portfolio with more entryinto-service asset types including our ninth GEnx, and our first Rolls Royce XWB spare engine,” commented Troy Lambeth, Group CEO, Sanad. “Sanad continues to be a trusted and reliable partner for Etihad Airways and its continued support is well aligned with our long-term plans and fleet strategy,” remarked Adam Boukadida, CFO, Etihad Aviation Group. 16 NOVEMBER 2020

to accelerate, Swisslog, a leading provider of bestin-class warehouse automation and software has partnered with H-E-B in San Antonio, Texas, to support the company’s growing demand for online fulfillment. Swisslog is working with H-E-B to deploy a number of automated micro-fulfillment centers to support the chain’s curbside pick-up and delivery business. The automated micro-fulfillment centers will enhance H-E-B’s leadership in the industry by streamlining online fulfillment and moving it closer to the customer. It will allow the retail chain to efficiently meet the growing demand for curbside pick-up without negatively impacting customer experience in the store. With more than 2,000 installations around the globe, Swisslog has invaluable experience in multiple flexible, scalable and modular automation technologies. The company offers a range of automation solutions and software to fit grocers’ online fulfillment strategies, whether it’s a hub-and-spoke arrangement, a bolt-on store automation approach, micro-fulfillment centers or a fully automated grocery store, a press release detailed. H-E-B’s new micro-fulfillment centers feature AutoStore empowered by Swisslog’s SynQ software and pick stations. This goods-to-person solution is one of the most flexible automation solutions available for order fulfillment in E-Grocery where density, operator productivity and lead time are important factors. With more than 170 installations worldwide, Swisslog is the largest and most experienced integrator of the AutoStore system, the press note continued. H-E-B is a privately held retail chain based in San Antonio, with more than 400 stores throughout the state of Texas, as well as in northeast Mexico.

Serco Middle East expands its Middle East Logistics and Base Support Services contract n Serco Middle East has announced a key contract expansion of the Middle East Logistics and Base Support Services (MELABS), for the Australian Defence Force (ADF), to operate crucial Rescue and Fire-fighting Services (RFFS) at the ADF logistics base in the United Arab Emirates. The new service line commences in December 2020 for an initial 13-month period in support of the ADF Joint Task Force and coalition partners located at the Al Minhad Air Base (AMAB). Serco will be responsible for the emergency response capability, including airfield rescue and fire-fighting services, structural rescue and fire-fighting; road accident and personnel rescue; and hazardous materials (HAZMAT) incident response. The new RFFS adds to Serco’s long term-partnership with Australian Defence Force and current presence at their Middle East logistics base, where Serco already provides 21 different service lines across base operations, hospitality and support services. “We have clearly demonstrated the enhanced operational effectiveness and cost efficiencies and flexibility that will be achieved by ADF in outsourcing these critical services to Serco,” commented Phil Malem, Chief Executive Officer, Serco Middle East. “The safety of ADF personnel and having a robust and reliable Rescue and Firefighting (RFFS) services is critical to the operations at our logistics base in the Middle East,” remarked Commander Corrine Court from the Australian Defence Force. Wallace Weatherill, Managing Director, Serco ME.

Solutions for a healthy world Tranzone operates a state-of-the-art 3PL warehouse in Jebel Ali Free Zone. We have partnerships with the leading pharmaceutical, medical device and animal health companies around the world.

Healthcare Logistic Services: Air Freight Sea Freight Land Transportation Value Added Services Warehousing & Distribution Return logistics Documentation Tranzone FZCO (Member of Banaja Holdings)

Jebel Ali Free Zone (South) Plot No: S20129 P.O Box : 262955, Dubai, United Arab Emirates, Tel : +971 4 811 0000

Web: www.tranzone.ae NOVEMBER 2020 17

Alstom appoints Mama Sougoufara as Managing Director, Middle East Cluster n Alstom recently announced the appointment of Mama Sougoufara as Managing Director for its Middle East Cluster. Mama was previously the Vice President for the System and Infrastructure for Africa, Middle East and Central Asia (AMECA) as well as the Managing Director of Alstom’s Near East Cluster. Mama Sougoufara joined Alstom in 2008 and held various management roles in Alstom Transport. In 2015, after three years in Alstom Thermal Power as Sector Quality Vice President, Mama returned to Alstom Transport in the AMECA region as the System and Infrastructure Engineering Director. “Mama has played a pivotal role in the execution and delivery of many significant mobility projects in the Middle East including Dubai Metro Route 2020, Riyadh Metro among many others,” commented Müslüm Yakisan, Senior Vice President, AMECA. “Alstom in the Middle East is well placed to accompany our customers in their transportation and mobility development,” remarked Mama Sougoufara, Managing Director, Alstom Middle East.

Air Freight at Riyadh Airport exceeds 60mn kilograms in Q3-2020 n Riyadh Airports Company

(RAC) has reported that the ‘Cargo Village’ at King Khalid International Airport (KKIA), located across an area of 275,000sqm, has significantly contributed to increasing the efficiency of air cargo traffic in Saudi Arabia, and developing the freight industry in general, since its establishment in January 2020. “The Cargo Village serves as a state-of-the-art logistical platform supporting the transformation of Riyadh city as the strategic go-to logistics hub for the region. RAC is working to support all air freight companies to ensure readiness and resilience to supply operations seamlessly in these 18 NOVEMBER 2020

times,” affirmed Mohammed Al Maghlouth, CEO, RAC. The RAC Report indicates that the total number of air cargo flights had reached 2,673 by the end of September 2020. Furthermore, the Cargo Village at Riyadh Airport stands as the largest in terms of air cargo transport in the Kingdom, with the number of destinations exceeding 50 globally. The report also revealed that the total weight of express air cargo shipments amounted to 521,103kg, the total weight of the number of shipments received weighed in at 300,087kg, and the total weight of express cargo reached 821,190kg by the end of September 2020.

The total weight of the shipped general cargo amounted to 13,905,913kg, while the total weight of the general cargo received reached 46,202,845kg. Thus, the weight of the general cargo totaled 60,108,758kg by the end of Q3-2020. RAC is committed to providing integrated solutions for one-site cargo to process all imports, exports, and distribution processes at a singular location. RAC’s innovative and highly efficient digital solutions present an array of exceptional features equipped to meet the highest standards and specifications in security and safety, the press statement concluded.

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GCC FREE ZONES

Surge in Free Zone businesses: Investors gravitating to Special Economic Enclaves Free Zones across the GCC are increasingly becoming magnets and star attractions for Investors, FDIs Businesses of all hues and sizes from micro enterprises, SMEs and mega conglomerates are increasingly beating a path to Free Zones across the GCC. These special zones are increasingly becoming popular propositions for attracting investments and professional skills.

he ease of doing business is one of the key indexes and determinants that will guide world economies in the immediate future. Free Trade Zones (FTZs) and Special Economic Zones (SEZs) have steadily emerged as critical hubs guiding investments, creating jobs, leading innovation and contributing to national economic development. Free Zones offer businesses simple setup procedures, 100% ownership, smart commerce and simplicity of doing business, affordable rates, favourable trading location, excellent infrastructure, create a investor-friendly environment and offer other concessions that are hard to beat. Increasing competition between FTZs implies they are offering sops and incentives to attract potential customers and new businesses.

The following report by Frost & Sullivan, the global growth consulting firm, puts the GCC Free Zones landscape into perspective and examines the industry ecosystem in the region

' >K'/^d/ ^ D Z< d Ks Zs/ t ��e� �ogis�i�s� in��s�r�� in� ��e� �� oo�er��ion� �o�n�i�� region� is� e�o��ing� r��i�� ri�en� �� in�re�sing� non�oi�� se��or� �on�ri��ion� �o� �� in�r�s�r��re� �e�e�o��en�� e� e�ergen�e� o�� ree� �r��e� �ones� �n�� in��s�ri�� r�s�� n�� in�re�se�� r��e� �oo�er��ion�� o�ern�en�s� in� ��e� region� ��e� �n�er��en� �o�i�� e�s�res� �o� re��e� ��eir� �e�en�en�� on� oi�� e��or�s� �� s�reng��ening�e�ono�i��i�ersi�i��ion�ini�i��i�es��re�or�s��i��ro�ing��e�in�es��en��i��e��n��in�re�sing�in�es��en��in��oo�� se��ri�� n�� en�o�r�ging� �ri��e� se��or� ��r�i�i��ion�� e� region’s� geogr��i�� o��ion� on� ��e� �r�ns��on�inen�� r��e� ��s� ��i�i��e��i�s��o��s�on��e��e�e�o��en��o��ogis�i�s��s��or��o��o�es�i��n��r�nsi��goo�s�� ringen��on��in�en��e�s�res��o��rres��e�s�re��o��oron��ir�s��e�res��e��in��s��r��e��ine�in�e�ono�i�� n�� r��e� ��i�i�ies�� o�e� o�� ese� �e�s�res� in��e� ��e� i��osi�ion� o�� r��e�� res�ri��ions�� or�er� ��os�res�� n��o��o�ns� ��i�� e�i��e��reig��i��n��o��o��goo�s�in��e��region��e�region�is��n�i�i��e��o�see��on�r��ion�in��e��irs��o� ��r�ers�o��s��e��r�e�s��n��o��o�ns��re�re��e��r��e��i�i�ies��re�e��e��e��o��i��in��e�se�on��o�� ring��e�re�o�n��se��ro��e��n�e�i��igi��r�ns�or��ion�ini�i��i�es��re��i�e��o��e��n�er��en�in��e�region��i��e� s��or�� o�� go�ern�en�� ini�i��i�es� ��i�� or� ��e� ��i��ion� o�� igi�� e��no�ogies� in� �o�� go�ern�en�� n�� ri��e� se��ors�� ni�e��r��ir��es��n��ing�o��o��i��r��i��re��i�e��o�e�erge��s��ron��r�nners�in��e��no�og��o��ion�in��e� �re�s� o�� s�o�s� ��e�r�n�e� �n�� or�� er�in�� o�er��ions�� e� �ogis�i�s� s��r�� e�os�s�e�� s� �ene�i�e�� ro�� go�ern�en�� ini�i��i�es��in�re�se��in�erne��ene�r��ion��n��o�i�e��e��no�ogies��o�ern��re�o�ses��re��e�o�ing��o��e��i��ore��se� o�� ro�o�i�s�� n�� o��nies� �re� e��eri�en�ing� �i�� e� �se� o�� ono�o�s� �e�i��es� �n�� rones� �or� e��i�ien�� n�� s�er� ��s��i�e� �e�i�eries�� n�e�en�s�in��igi��e��no�ogies��re�e��e��e��o�in��en�e��nne��n��n��nne��onne��e��ono�o�s��r�ns�or��ion��s� �e�� s� �onne��e�� si�� r�ns�or��ion� in�r�s�r��re� �ri�en� �� e� ��i��ion� o�� s��r�� sensors�� n� ��i�ion�� o��ion�� ro�o�i�s��ono�o�s��e�i��es��n��ig��n��i�s��re�e��e��e��o�ei��er��r�ns�or��or��isr��ogis�i�s�ser�i�e�o��erings�� 20 NOVEMBER 2020

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GCC FREE ZONES

ECONOMIC PROFILE AND KEY INDICATORS Stimulus measures focus on economic revival while Government development plans focus on improving logistics infrastructure with the support of private investment in road , sea port infrastructure developments Government stimulus packages exceeding $141.72 billion have been announced in the form of incentives for businesses, soft long-term loans, exemption or postponement of dues to stimulate growth. Infrastructure investment associated with economic diversification and digitalization in freight transportation and warehousing are some of the factors that are expected to support economic revival .

Logistics Industry : Selected Economic Indicators, GCC, 2019 Country

GDP and Exports Oil Dependency %

Main Exports

Trading Partners

Covid -19 Stimulus Measures

Bahrain

GDP 38.50 Exports 18.28

12-25

Fuel (51%), Ore and Metals (21%), Manufactured Goods (24%)

UAE, Saudi Arabia, Oman, US and Japan

$ 11.5 Billion

Kuwait

GDP 135.38 Exports 71.93

42-63

Fuel (63%) and Manufactured Goods (33%)

China, Korea, India, Japan and Singapore

$ 1.62 Billion

Oman

GDP 76.33 Exports 46.63

29-49

Fuels (62%) and Manufactured Goods (25%), Food (6%), Ore and Metals (7%),

UAE and Qatar China, India, Korea

$ 21.0 Billion

Saudi Arabia

GDP 792.96 Exports294.37

25-43

Fuel (69%) Manufactured Goods (27%)

China, Japan, India, Korea and USA

$32.4 Billion

Qatar

GDP 175.83 Exports 84.28

32-55

Fuel (84%) Manufactured Goods (13%)

Korea, Japan, India, China and Singapore

$ 15.3 Billion

UAE

GDP 424.66 Exports 316.89

22-36

Manufactured Goods (40%) Fuels (37%) and Food (6%), Ore and Metals (7%),

Japan, India, Iraq, China, Oman

$ 60.0 Billion

GCC

GDP 1640.24 Exports 832.38

26-45

Fuel, Manufactured Goods, Ore and Metals

Europe, Asia and Middle East

$ 141.72 Billion

Note : Oil dependency refers to contribution of oil under low and high oil prices

Source: IMF, Industry Resources, Frost & Sullivan Analysis

NOVEMBER 2020 21

GCC FREE ZONES

China is one of the UAE’s biggest trading partner, with UAE-China bilateral trade is expected to cross more than $70 billion by 2020. REGIONAL REGIONALTRADE TRADEINTEGRATION INTEGRATIONAND ANDTRANSHIPMENT TRANSHIPMENTHUB HUB Development Developmentof ofeconomic economiccorridors corridorsisisexpected expectedto toform formnew newtrade traderoutes routesand andprovide providealternate alternatemodes modesof oftransport, transport, leading leadingto tomultimodal multimodaltransportation transportation. . Logistics LogisticsIndustry Industry: :Connectivity Connectivityand andTrade TradeIntegration Integration, ,GCC, GCC,2019 2019 Strong StrongCooperation Cooperationwith with China Chinaexpected expectedto toincrease increase infrastructure infrastructureinvestment investment and andconnectivity connectivity

China ChinaGCC GCCtrade tradehas hascrossed crossedmore morethan than$178 $178billion billioninin2018. 2018.China Chinaisisone oneofofthe theUAE’s UAE’sbiggest biggesttrading tradingpartner, partner,with withUAEUAEChina Chinabilateral bilateraltrade tradeisisexpected expectedtotocross crossmore morethan than$70 $70billion billionby by2020. 2020.Port PortInfrastructure Infrastructuredevelopment developmentprojects projectsininUnited United Arab ArabEmirates’ Emirates’Khalifa KhalifaPort, Port,Oman’s Oman’sDuqm DuqmPort, Port,Saudi SaudiArabia’s Arabia’sJizan JizanPort Portand andMubarak Mubarakal-Kabeer al-KabeerPort Port ininKuwait Kuwait are are expected expectedtotoimprove improveconnectivity connectivitywith withBRI BRIinfrastructure infrastructureininthe theCentral CentralAsia Asiaand andChina China

• • Dubai DubaiSilk SilkRoad RoadStrategy: Strategy: Supported Supportedby byDP DPWorld Worldand andDubai Dubai Chamber ChamberofofCommerce, Commerce,the thestrategy strategyisispart partofof Dubai Dubai10X 10Xinitiative initiative with with focus focuson ontrade tradefacilitation facilitationand andinfrastructure infrastructuredevelopment. development.

KuwaitNorthern NorthernGulf GulfGateway: Gateway: Focus Focusisison onimproving improvingconnectivity connectivity • • Kuwait with with China’s China’sBelt Beltand andRoad RoadInfrastructure. Infrastructure.Mubarak Mubarakal-Kabeer al-Kabeersort sortisisaa new newunder underdevelopment developmentand andKuwait KuwaitSilk SilkCity Citywill willinclude includeaalogistics logistics hub hublinked linkedtotothe theport port

New NewMubarak Mubarakal-Kabeer al-KabeerPort Port

• • Sino Sino––Oman OmanCooperation: Cooperation: Duqm DuqmSpecial SpecialEconomic EconomicZone Zonewill willbe be one oneofofthe thekey keyinfrastructure infrastructureproject project totobe becovered covered ininaddition additiontoto development developmentofof energy energyand and industrial industrialparks parks • • Sino Sino––Saudi SaudiCooperation: Cooperation:Saudi SaudiArabia Arabiahas hassigned signed30 30economic economic cooperation cooperationagreements agreementsworth worth$28 $28billion. billion.Vision Vision2030 2030aims aimstotomake make Saudi SaudiArabia Arabiaaahub hubfor for facilitating facilitatingtrade tradeflows flowsbetween betweenAsia, Asia,Europe Europe and andAfrica Africaregion region Key: Key:Map Mapisisfor forillustrative illustrativepurpose purposeonly onlyand andnot nottotoscale. scale.

22 NOVEMBER 2020

Legend Legend

New NewEurasian EurasianLand LandBridge Bridge China-Central China-CentralAsiaAsia-West WestAsia-Economic Asia-EconomicCorridor Corridor Maritime Maritimeroute route

GCC FREE ZONES

AIR CARGO GROWTH TO STIMULATE GROWTH OF FREE ZONES Regional airports focus on capacity expansion and logistics infrastructure such as warehousing, e commerce and free trade zones Logistics Industry : Cargo Handled by Major Air Ports, GCC, 2019

Logistics Industry : Capacity Expansion and Modernization of Major Air Ports, GCC, 2019 Airport

Description

Dubai International Airport, Dubai, UAE

One of the largest port in the Middle East, serving as a gateway to enable trade across the region

Hamad International Airport, Doha, Qatar

Five-year Goal22 strategy of Qatar Airways Cargo is aiming to connect 220 destinations by 2022.

Abu Dhabi International, Abu Dhabi, UAE

Air Cargo Centre of Excellence being developed by Etihad Cargo, plan to become global air cargo hub, prime location for e-commerce fulfilment and logistics warehousing.

2.68

Dubai, UAE

1.45

Doha, Qatar

0.59

Abu Dhabi, UAE Riyadh,Saudi

0.38

Jeddah,Saudi

0.31

Kuwait

0.24

Muharraq,Bahrain

0.22

Muscat, Oman

0.21

Dammam, Saudi

0.16

Shajah, UAE

0.15 1.0

0.0

King Khalid International Airport, Riyadh, Saudi King Abdul-Aziz International Airport, Jeddah,Saudi Kuwait International Airport , Kuwait

Strategically located between Dubai and Abu Dhabi handling general cargo and break bulk activities

Bahrain International Airport, Muharraq, Bahrain

A new cargo area with a size of 25,000 sqm is expected to be completed. This facility will include warehouses, automated courier facility to support growth in e commerce.

Muscat International Airport, Oman

New air cargo facility at Muscat International Airport is expected to increase capacity

King Fahd International Airport, Dammam, Saudi

Cargo village include a logistics zone offering warehousing solutions to pharma and transport companies.

Sharjah International Airport, UAE

Sharjah Airport International Free Zone (SAIF Zone) is expected to support air cargo growth

04 05 06

2.0

3.0

Cargo Handled (Million Tons)

Main hub for Saudi Cargo – A new terminal project was launched in 2018 as part of Saudia Cargo's 2020 transformation strategy, is likely to be completed by 2022 Air cargo growth is estimated at 10 % between 2015 and 2018, nearly 80 % cargo is unloaded

GOVERNMENT FOCUS IS ON DEVELOPMENT OF LOGISTICS HUBS Focus will be on development of GDP compliant cold chain infrastructure to handle perishables and pharmaceuticals in key airports, economic cities and major consumption centres Logistics related infrastructure development is given high priority across GCC regions, as a result expansion of warehousing capacities are gaining traction to meet the growing demand from trade and e commerce logistics sectors. Investment and expansion of 3PL service providers in port cities and major consumption centres is expected to benefit from the incentives offered for logistics infrastructure development. Logistics Industry : Major Warehouse Clusters, GCC, 2019

Ports and Major Cities

Turaif

TEC Tabouk Dammam

Jeddah

Riyadh Rabigh Madinah

Muharraq, Bahrain Doha Dubai

Hail Yanbu

• Development of E Commerce Free Zones: As part of economic diversification initiatives and national logistics infrastructure development and promotion of free zones to increase trade. Dubai Commerce City is developed to support global and regional brands to expand their e commerce trade in the GCC region.

Economic Cities

Kuwait

NEOM

Abu Dhabi

Sharjah Port Sohar Muscat

At-Taif

Port Duqm

JEC Salalah

Key Developments

• Capacity Expansion by Logistics Service Providers: Major global and regional service providers are expanding their storage and warehousing capacities in major urban centres and port cities to meet the increasing demand from trade and cross border e commerce. Share of cross border e commerce is high relative to other region which is estimated at 40 % of e commerce value . • Al Khomra Logistics Zone (Jeddah, Port) : Launched by Saudi Ports Authority will become one of the largest integrated logistics zone in the region with focus manufacturing facilities supported by warehousing and storage facilities Modernisation and expansion are expected to increase capacity

NOVEMBER 2020 23

GCC FREE ZONES

ECONOMIC FREE ZONES AND MAJOR ECONOMIC CITIES

Economic diversification, industrial development, logistics and warehousing infrastructure are expected to benefit from increasing trade and investment from Free Zones across GCC Focus is shifting towards development of free zones to support growth of e commerce and exports from free zones. Food imports accounted 40 % of consumption and lack of cold chain logistics facilities are likely to increase investment and capacity expansion in warehousing and cold storage facilities.

Logistics Industry : Major Economic Free Zones by Country, GCC, 2019 Country

Region/Locations

KSA

• Riyadh's King Khalid International airport, the special economic zone will focus on integrated logistics, Integrated Logistics Bonded Zone, or ILBZ, Economic Cities and Special Zones Authority (ECSZA). Al Khomra Logistics Zone in Jeddah is expected to have 2 million square meters and will include logistics areas and platforms

UAE

• Economic and Free Zones spread across UAE leading to expansion of warehouse facilities in key locations to support trade, e commerce and multi modal transit goods. There are an estimated 45 free zones spread across UAE, most notable them among these are Dubai Logistics City, Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone(DAFZA), Sharjah Airport International Free Zone (SAIF Zone).

Oman

• Free zones around Port Salalah and Sohor area are likely to witness expansion of warehousing and cold storage facilities. Development of Salalah Logistic Wholesale City is expected at Salalah Free Zone with an investment of USD 20 million to cater to the needs of companies involved in wholesale trade in the region. Special Economic Zone Authority (SEZAD) of the Port of Duqm with total area of 1,600 hectares expected to have storage capacity of 6 million

Qatar

• Regions around Doha, Hamad Airport, Hamad International Airport and Industrial zones . Investment relating to 2022 FIFA World Cup is expected to be a major driver for the development of modern warehousing infrastructure. Ras Bufontas - Hamad and Umm Alhoul Free Zone are some of the major centres

Kuwait

• Kuwait Free Trade Zone near Shuwaikh port, development of port is likely to support warehouse growth opportunities facilities

Bahrain

• Bahrain Logistics Zone is located close to transportation hubs such as the Khalifa Bin Salman Port and Bahrain International Airport with 1 million air cargo capacity expansion. Hamad Causeway is another area with warehouse opportunities.

Input from Frost & Sullivan 24 NOVEMBER 2020

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FIATA LEARNING ACADEMY

GCC FREE ZONES

The following report by Frost & Sullivan, the global growth consulting firm, puts the GCC Free Zones landscape into perspective and examines the industry ecosystem in the region

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GCC FREE ZONES

FZs and SEZs impact on sea ports Role of FZs and SEZs in global supply chains: The global supply chain is the combination of infrastructure, means of transportation and information enabling the movement of goods between sourcing (supply) and consumer (demand) markets across the globe. Here, two main operating models are identified as follows:

Point-to-Point and Hub In point-to-point models, sourcing and consumer markets are linked without involving major breaks in their supply chains. Stocks tend to be located either at origin or at destination and delivery planning is usually driven by the spot demand in each consumer market (pull supply chain). Economies of scale are mainly built on having fewer but larger deliveries, increasing the risk of stockout or overstock at destination. In hub models, an intermediate logistics point (hub) is strategically located between Sourcing and Consumer markets. Stocks are supplied regularly in large deliveries to the hub (push supply chain model), where they

are stored, handled and / or processed until there they are distributed to the different consumer markets upon demand (pull supply chain). This model fosters economies of scale while reducing supply chain uncertainties of point-to-point models. In contrast, duplication in import fees (in hub and consumer market) as well as overseas tax and business regulation may increase costs for traders significantly, sometimes not compensating the hub effect savings. FZs and SEZs are real estate assets with a strong focus on logistics, which can provide customs, tax and business incentives that compensate the above regulationrelated costs found in hub models. This makes them highly attractive to act as hub between third countries (re-export), especially when coupled with strong connectivity and qualified labour.

FZs and SEZs impact on economic growth

The emergence of FZs and SEZs has made a considerable impact on employment, trade, tax incentives, international talent acquisition and real estate all across many different areas including the public sector, geopolitics, research & development,

social & environmental policy making and logistics sector.

Main conclusions FZs and SEZs are global trading platforms which can be implemented for different objectives. They have proved to be some of the most significant investments ever made on a national and international level: Firstly, they have disrupted the maritime market, changing the way sea ports operate. Secondly, they have contributed to the growth of numerous economies around the world by instantly accelerating many of their components. Thirdly, they have drastically improved the global supply chain network by making the hub model efficient. These are the main reasons that have pushed (and will keep on pushing) governments and private entities to invest heavily in FZs and SEZs. n (This report is based on input by GenĂs GarcĂa-AlzĂłrriz, a MSc. in Civil in Engineering and a Manager at ALG Transport & Infrastructure and Yassine Derkaoui who holds a MSc. in Management and is a Manager at ALG Transport & Infrastructure). NOVEMBER 2020 27

KURITA-AQUACHEMIE JV

Kurita Europe and AquaChemie DMCC set up a new regional JV

New entity set up by the two major stakeholders in the Jebel Ali Free Zone (JAFZA) offer specialty products and services to chemical and other process industries

apanese multinational, Kurita Water Industries, through its subsidiary Kurita Europe GmbH, an international leader in water and process specialty chemicals, and UAE-based AquaChemie DMCC, a leading regional process industry player, have signed a strategic agreement to set up a joint venture company, under the name of Kurita AquaChemie, it was announced via a press communiqué. The JV will leverage both companies’ complementary strengths for water and process treatment chemicals solutions for the refinery, petrochemicals, fertilizer, power and desalination, paper, and metal industries in the GCC region. Kurita AquaChemie will be the single face for customers in the wider GCC region and is all set to offer solutions to customers, who will now benefit from technologically innovative Japanese programmes fully backed by local production, resources, and prompt customer service.

Two production plants

Kurita AquaChemie will operate two new production plants in Dammam, Saudi Arabia, and in Jebel Ali, Dubai, UAE. These two production sites were commissioned in H1-2020 and are expected to have a 28 NOVEMBER 2020

production capacity of about 230,000MT per annum in the initial phase. An agreement to officially form the new joint venture was signed in Dubai by Lorenzo Carollo, CEO, Kurita Middle East, and by Subrato Saha and V. Anandkumar, Directors, AquaChemie DMCC, in the presence of top JAFZA officials. Michiya Kadota, President, Kurita Group; Shingo Yamaga, Senior General ManagerEMEA and Americas Operations, Kurita Group and Jordi Verdés, CEO, Kurita EMEA, were also present on the occasion.

Local availability

The overall specialty chemicals market in the GCC region is currently pegged at more than US$ 350mn. “This new joint venture company allows us to provide our innovation and technologies directly to our customers in the GCC, where there is a need for such solutions,” affirmed Yamaga. “With this joint venture, a reality is born that will speedily bring the global innovations that Kurita develops, locally, to the GCC region,” asserted Carollo. “AquaChemie has always strived to become a formidable player in the specialty chemicals space, with more than 25% yearon-year growth,” noted Saha.

“To achieve the sustainability targets of our customers, we rely not only on the technology we have but also on the knowledge of local markets’ specific needs. This is why the new joint venture is a perfect match for us,” concluded Verdes.

Kurita-AquaChemie synergy

Kurita Europe, founded in 1989 and a subsidiary of the namesake Japanese parent company is headquartered in Ludwigshafen, Germany, provides technologies for water, paper, and process treatment. With production facilities, it contributes to a reliable supply chain for customers. Own R&D centers, laboratories, and pilot test plants allow Kurita to develop continuously customized state-of-the-art technologies. AquaChemie was established in Dubai, UAE, in late 2008. Since then, it has expanded its operation all across the GCC region, with a strategic presence in Hong Kong. AquaChemie DMCC is its flagship company, managing the chemicals business. AquaChemie is into specialty chemicals manufacturing, sales, distribution, services, and bulk terminal operation. It has corporate offices, manufacturing facilities, bulk storage terminal, warehouses, a fleet of ISO tanks, and operation skids in GCC countries. n

DUBAI CUSTOMS

Dubai Customs completes 77,200 transactions in three ports over the past ten months Transactions were logged in at Al Hamriya Port, Deira Wharfage and Port Rashid

he Director General of Dubai Customs, Ahmed Mahboob Musabih, recently made a field tour of the customs centres at Al Hamriya Port, Deira Wharfage and Port Rashid. Accompanied by members of the senior management in Dubai Custom, Musabih met with the employees at the three centres and was briefed on the efforts taken to further advance customs services, and procedures followed to combat the spread of Covid-19, according to a press release. Since January until the end of October, the three centres completed 77,200 transactions- 37,800 by the Creek and Deira Wharfage Customs Centre, 23,800 transactions by Al Hamriya Port Customs centre, and 15,600 transactions by Port Rashid Customs Centre. In the first 10 months this year, 37,300 inspection operations took place in the three centres, led by Port Rashid Customs Centre with 15,600 inspection operations; followed by Creek and Deira Wharfage Customs Centre with 15,000 inspection operations, and Al Hamriya Port Customs Centre with 6,700 inspection operations. “The customs centres have helped toward sustainable development and fast economic recovery thanks to dedicated and skillful teams and advanced technologies,” observed Musabih on this occasion.

Dubai Customs’ online services now almost touch the 100% benchmark Dubai Customs has raised the percentage of online services to 99.3%, completing 7.2m transactions during H1-2020, growing 38.5% compared to 5.2mn transactions in the corresponding period last year. This has led to reducing time and effort on clients 30 NOVEMBER 2020

and reduced cost on businesses. With this in mind, Dubai Customs, following its digital transformation policy, announced the closure down of some customer service centers, while boosting services at its open centers to meet the needs of all clients. Clients can access Dubai Customs services through a number of channels made available by the government department including the website, smart applications, and self-service machines. “Our clients can access our services anytime from anywhere, and this has reduced footfall on traditional counters to less than 0.7% of the total, and led to more client happiness, and reduced operational cost,” remarked Mohammed Al Muaini, Legal Affairs Consultant, Dubai Customs.

Mohammed Al Muaini, Legal Affairs Consultant, Dubai Customs.

Dubai Customs discusses more trade cooperation with Switzerland Ahmed Mahboob Musabih, Director General, Dubai Customs recently held a videoconferencing meeting with a Swiss delegation headed by Frank Eggmann, Swiss Consul General to Dubai to discuss means of enhancing mutual economic cooperation and trade between Dubai and Switzerland. The two sides covered major matters including the stimulus packages launched by the Federal Government and Dubai Government to support the business activity and to mitigate the impact of the pandemic. They also talked about the measures taken by Dubai Customs to back

the global supply chain and the business and trade groups in Dubai. More than 30 representatives of Swiss companies were present in the meeting which was also attended by Dubai Customs executive directors and heads of departments. In his speech, Musabih highlighted the solid relationships between Switzerland and the UAE in all fields, including trade, especially after the signing of the free trade agreement between the GCC countries and the European Free Trade Association (EFTA). “Ertebaat is a transparent and solid platform that enables us foster our relationships with foreign business sectors and provide them with the best services and facilities,” said Musabih. Musabih expressed optimism about the future of the economic and trade sector in the UAE, with the UAE prepared to host major international events including Expo 2020. Dubai external trade with Switzerland grew 75% between 2010 and 2019 to make AED 60bn in 2019 compared to AED 34bn in 2010. In the first half of 2020, mutual trade between Switzerland and Dubai amounted to AED 24.3bn, with imports making AED 4.4bn, and exports and reexports making the remainder AED 20bn. Major commodities include diamonds, pharmaceuticals, watches, gold and jewellery.

Dubai Customs wins seven Ideas America Awards 2020 Dubai Customs bagged seven new Ideas America Awards that crowned their many successes in 2020. Ahmed Mahboob Musabih, Director General of Dubai Customs honoured the winners in a virtual honouring ceremony. The awards included four in innovation and three for distinctive executives and employees, including the first place (Gold Award) in Idea of the Year (Team Category) which went to Juma Al Ghaith, Executive Director, Customs Development Division.

Ahmed Mahboob Musabih, Director General, Dubai Customs.

Dubai Customs officials at the Deira Wharfage Centre.

Ahmed Anbar Al Falasi, Senior Inspection Officer, won the first place in (Security) Idea of the Year (Covid-19 Category) for his innovative project: The Clear Inspection shield, which is a transparent barrier that features a range of protective equipment and devices designed to protect both inspectors and passengers from the risk of the Covid-19 virus. Eng. Adel Al Suwaidi, Director, Technical Support Department, won the second place (Silver Award) in Idea of the Year (Breakthrough Innovation Category) for his project: The Mega X-ray scanner, designed to scan oversized vehicles and containers that cannot normally be scanned by conventional devices. Shamsudeen Bakhit, Senior Maintenance Officer, won the second place in (Safety) Idea of the Year (Covid-19 Category) for his project: The Customs Safe Passage Booth. It is a gateway that uses various hands-free

and motion sensing devices to completely sanitize and disinfect employees and customers. Hussain Al Fardan, Senior Manager, Innovation Centre, won the second place (Silver Award) for (Executive Leadership of the Year). Maryam Al Shamsi, Senior Manager, Client Services Development, won the third place (Bronze Award) for (Communication Excellence of the Year). Nayla Darwish, won the third Place (Bronze Award) for (Best Program Administrator of the Year). “We raised the bar high as bigger commitments now are laid on our shoulders to meet the objectives of the UAE Centennial 2071 project, prepare ourselves for the EXPO 2020, and actively participate in the 4th industrial revolution,” commented Ahmed Mahboob Musabih, Director General, Dubai Customs. n NOVEMBER 2020 31

KSA: JEDDAH ISLAMIC PORT

Unique and innovative solutions take centre-stage at Jeddah Islamic Port LogiPoint presents an impressive report card with a good performance track record

ocated along one of the world’s main shipping routes, serving as a gateway to the Middle East’s largest economy, and acting as the cultural and commercial meeting point for three continents for centuries, the Jeddah Islamic Port, the largest and busiest in the Kingdom, has always played an integral part in the world of commerce and trade. Saudi Arabia is an economic powerhouse, the most populated and the largest GCC economy and among the biggest in the region Propelled by the grand Saudi Vision 2030 as envisaged and enunciated by HRH

32 NOVEMBER 2020

Mohammed Bin Salman Al Saud, The Crown Prince of the Kingdom of Saudi Arabia, the shipping and logistics sectors have taken the lead in the Kingdom’s plans, and the race is on to transform the Kingdom’s ports and airports into leading international logistics hubs with matching efficient transportation infrastructure to boost economic activity and leverage the Kingdom’s inherent strengths.

Energetic drive

There is a spirited drive to embrace change and a renewed focus at the highest levels in the Kingdom to carve out a name for

KSA: JEDDAH ISLAMIC PORT

innovation, business-friendliness and customer-centered solutions. These developments dovetail perfectly with the vision and the plans of the Kingdom’s first and the largest Bonded and Re-Export Zone, LogiPoint, a one million sqkm logistics zone located within the Jeddah Islamic Port which acts as a transformative platform for the Logistics industry. LogiPoint is committed to enabling logistics in the region and to going a step further in designing unique and innovative solutions for the logistics industry. They work extensively with their clients to not only understand the needs and requirements today, but also to identify opportunities for innovative new solutions by anticipating the needs of the future. Embracing change, even leading change is part of the LogiPoint’s DNA. Some of the key and strategic logistics solutions rolled out over the last couple of years are as follows:

Export Distribution Hub: Petrochemicals is the Kingdom’s single largest export, with hundreds of thousands of containers exported annually to destinations all across the world. LogiPoint worked tirelessly with the petrochemical majors Saudi ARAMCO and SABIC, and with other high-volume exporters to re-engineer the entire export process and to bring the clients closer to their markets by reducing the lead time between order and delivery. In this high-volume, high-stakes industry, this efficiency in logistics translates to vital competitive edge for KSA exporters in the international market. Cross-border Gulf: Shipments originating in Europe and the Americas, and passing through the Red Sea, typically have a transit time of 8-12 days ahead of them to reach the GCC ports in the Arabian Gulf. LogiPoint introduced the Cross-border Gulf service under which shipments can be discharged in Jeddah and moved to ports and final destinations in the GCC countries via bonded trucking. This helps reduce the transit times by 7-10 days and translates to greater efficiency, increased shelf life, as well as higher revenues and profitability for the clients. Sea/Air and Air/Sea multimodal combinations: LogiPoint has been working extensively with the industry stakeholders and the regulatory bodies to design and streamline multimodal movement of shipments seamlessly. Thanks to the initiatives taken by LogiPoint, it is now possible in KSA to import one leg of a shipment by sea, move it under bond to the desired airport, and load it out by air freight to its final destination. Similarly, air-freight imports can be moved to the LogiPoint bonded and reexport zone for consolidation before being shipped out by Sea. This is an important development in putting the KSA on the world logistics map as a strategically located multimodal logistics hub. Bonded Express Facility: The e-commerce industry relies extensively on efficient, errorfree and lightening high-speed logistics processes and systems for survival and success. LogiPoint introduced the Bonded Express Facility to cater to e-commerce

segment. This facility is dedicated to the clearance and fulfillment of express and e-commerce shipments and is the first of its kind at a Saudi Port. Through policies, processes and an infrastructure built with e-commerce needs in mind, the facility handles and facilitates inbound and outbound express shipments by sea, air and land, thus enabling the e-retailers and online platforms looking to penetrate and serve their target markets in Saudi Arabia and the rest of the Middle East. These initiatives have led to signing of groundbreaking contracts with global and regional e-commerce industry leaders. Value Added Services: Over the years, LogiPoint has been offering a wide array of Value-Added Services (VAS). These include short-term storage, packing, co-packing, labeling, bundling and distributing goods, duty deferment (important especially when VAT has become such an important part of costing for a supply chain), and clearance and delivery support. T There is also the Reefer Village, which boasts a Reefer Container Yard with 240 plug-in points, Reefer cross-stuffing stations, and an ever-expanding fleet of trucks and gensets. With an eye to the future, LogiPoint has invested into becoming operators of Logistics Parks and Zones in the Kingdom and beyond. Logistics Park, Modon in Jeddah Industrial City 1 and the Logistics Park, South Jeddah in Khomrah, are two examples of such investments, which will help create thousands of jobs directly and indirectly. There are exciting new projects in the pipeline, which will see LogiPoint expand its footprint across the Kingdom through strategically located new Logistics Parks and Economic Zones. In addition to strengthening the Logistics sector in Saudi Arabia, LogiPoint is working diligently to develop Jeddah and the Kingdom into the region’s foremost multimodal logistics hub serving the global trade. In terms of life cycle, LogiPoint is only at the beginning of their journey, and are very well-poised today to play an ever-greater role in nation building and development. n (This compilation is based on direct input received from LogiPoint, Jeddah Saudi Arabia-Editor) NOVEMBER 2020 33

FOOD SECURITY

GCC agri-nutrients feed 5% of world’s population, finds new GPCA report The region is an important, global centre for the production and export of agri-nutrients

he GCC agri-nutrients industry supports the food supply of 5% of the world’s population, or 350mn people across the globe, according to a new report published by the Gulf Petrochemicals and Chemicals Association (GPCA), it was revealed recently. This figure marks the rising importance of agri-nutrients in enhancing global food security in a rapidly changing world, where we will need to produce 70% to 100% more food by 2050 to feed our growing population. The findings were highlighted in a new report entitled ‘Role of Agri-Nutrients in Food Security’ released on the occasion of the recent World Food Day (October 16) organized by the UN. The report further reveals that over the last five decades, a portion of the global population supported by agri-nutrients manufactured by GCC producers has increased 33 times, from about 9mn in 1970 to 350mn currently. The GCC agri-nutrient industry supports about 12,100 direct jobs in the region, and almost three times as many indirect and induced jobs, which means that every person working in the sector supports enough food production to feed about 30,000 people worldwide, including people in the GCC.

from malnutrition. According to the Food and Agriculture Organization (FAO) of the United Nations, the number of people joining the ranks of those suffering from malnutrition post the pandemic may range from 14.4mn to 38.2mn, or even 80.3mn depending on the GDP contraction. The role of agri-nutrients during the pandemic has been essential in meeting the

Essential fertilizers

Employment generation

Additionally, every person employed by the regional industry supports 17.7 tons of three main crops production per year (rice, wheat and maize), underlying the significance of the Arabian Gulf region in supporting global food security. The Covid-19 pandemic has put food security and the nutrition of millions of people under threat, with many of the affected populations already suffering 34 NOVEMBER 2020

needs of billions of people across the globe and ensuring the uninterrupted supply of nutrition to the world’s population. In the midst of the coronavirus crisis, production of agricultural chemicals including fertilizers and crop protection chemicals declined by 5% between January and May 2020 globally. Furthermore, capacity utilization reduced from 81.5% in January to 75.1% in May 2020.

Dr. Abdulwahab Al-Sadoun, SG, GPCA.

Comparatively, in the GCC, fertilizer producers continued to produce essential fertilizers and supply their global customers without significant production and supply chain disruptions. “We must keep domestic supply chain functions operational to ensure the smooth export of fertilizers, all while taking the necessary precautions for the safety and wellbeing of our employees. International cooperation will be equally important for all countries and regions to have sufficient supply of all agricultural inputs and outputs,” commented Dr. Abdulwahab AlSadoun, Secretary General, GPCA. n

TURKISH CARGO

Turkish Cargo continues to consolidate its global operations The carrier enjoys a wide direct cargo flight network across the world

M Ilker Ayci, Chairman of the Board and the Executive Committee, Turkish Airlines.

aintaining its successful cargo freight operations across the world, Turkish Cargo increased the number of destinations of its direct cargo operations to 95 by adding London, Bucharest, Bangkok, Singapore, Beirut and Lahore to its direct cargo flight destinations. The global carrier has reinforced its position as a premier air cargo brand with the widest direct cargo flight network of the world, the carrier revealed in a press release. The carrier has also added Henri Coanda Airport (OTP), the busiest airport in Romania, and Allama Iqbal Airport (LHE) located in Lahore, the 36 NOVEMBER 2020

cultural centre of Pakistan, to its cargo flight network with the winter schedule, thus reaching 31 direct cargo flight destinations in European continent, 22 in Middle East and 16 in Far East, the press statement continued. Connecting the continents with each other, Turkish Cargo continues to carry out its global business operations with its fleet of 361 aircraft, 25 of which are freighters, for its 95 destinations. Turkish Cargo aims to become one of the top five global air cargo brands. Turkish Cargo continues to raise its service quality in a sustainable with its new brand strategy, ‘Raise the Bar’. n

Turkish Cargo voted as the best Air Cargo Brand of Europe Turkish Cargo has been chosen as the best cargo brand of Europe and received ‘Best Cargo Airline–Europe’ Award during the Air Cargo News Awards 2020 which was held for the 36th time this year. The event was organized on a digital platform for the first time due to the global pandemic. Award winners were chosen by the votes cast by supply chain experts and professionals with criteria such as quality, innovation, efficiency, speed, reliability and offerings of innovative products, services and operations. “With its smart technology developments and digitalization works, our brand will soar to many more achievements. I congratulate our flag carrier air cargo brand and all of our employees that contributed to its success,” remarked M. İlker Aycı, Chairman of the Board and the Executive Committee, Turkish Airlines. Turkish Cargo continued its air cargo operations without any interruptions during this global pandemic period and transported food, aid, medicine, masks and medical equipment to all over the world, the statement continued. Carrying on its works selflessly 24/7 to maintain global medicine supply chain, Turkish Cargo managed to carry one out of every 20 air cargo consignments in the world. Turkish Cargo reaches over 300 destinations, 95 of which is direct cargo destinations, and offers its services 24/7 to its customers over its global network, the press note concluded.

GLOBAL SUPPLY CHAIN

Global Supply Chain activity surges to pre-pandemic levels in Q3-2020 Cash crunch leaves suppliers vulnerable: Tradeshift Report

he number of purchase orders and invoices exchanged across global supply chains rose by 15% in Q32020 after falling by a similar margin in Q2-2020, the latest Index of Global Trade Health from San FranciscoCalifornia, headquartered Tradeshift, a leading player in supply chain payments and marketplaces, has revealed. The report, which is based on analysis of transaction data flowing between buyers and suppliers across Tradeshift’s network, suggests activity levels in major supply chain hubs in the West and China are beginning to stabilize after a tumultuous period. Transactions in the Eurozone grew by the greatest margin, up 26% in Q3 as supply chains in the region added further momentum to the recovery Tradeshift saw towards the end of Q2. Trade activity between buyers and suppliers in the US also exceeded the global average, growing by 17% in Q3. In the UK, where trade activity levels had dropped by 23% in Q2, the bounce-back in transaction volumes during Q3 was much weaker. After a relatively strong July, a significant drop off in activity during August and September meant that UK supply chain activity finished the quarter just 6.1% up on Q2.

Activity slows as pent-up demand recedes Other regions also showed signs of a similar slowdown, suggesting the release of pent-up demand after lockdown restrictions eased in the West may have fuelled the early burst of activity across supply chains in July. Transactions on the Tradeshift platform surged 24% in July. But month on month activity subsequently fell by 12% in August, before recovering slightly in September. In China, activity levels across the Tradeshift network looked on course to reach a level not seen since Q4 2019 in July. By

September however, total transactions across the region’s supply chains had fallen by more than 18%. “Global lockdown restrictions created a pressure cooker environment for supply chains,” commented Christian Lanng, CEO, Tradeshift. “When the restrictions began to ease, we saw orders start to surge in June. This momentum continued into July before tailing off rapidly as supply lines normalized. Order volumes on our platform are comfortably ahead of where they were in Q2, but supply chains will need to hit a higher gear again in Q4 before we can to point to a sustainable recovery. The next few months will be critical,” he added.

translate into cash. We should start to see some of the current liquidity pressure begin to ease in Q4. Whether or not every supplier will make it that far is another question. If ever there was a time to rip up the old playbook and start doing things differently, it is now,” he added. n

Liquidity crunch putting supplier livelihoods at risk A 20% rise in order volumes during Q3 should provide a welcome cash-flow boost to suppliers towards the end of the year. But according to Tradeshift, action may be needed before then to address the current liquidity crisis affecting suppliers. A record fall in order volumes during Q2 meant invoice settlements remained low throughout the quarter. With the average small business having just 27 days of cash in reserve, many will be coming dangerously close to running out of money. “Lack of digitization in global supply chains makes it very hard to unlock the liquidity that’s owed to suppliers,” remarked Lanng. “So, instead of getting paid quickly, suppliers have to wait months before orders

Christophe Bodin joins Tradeshift as Chief Revenue Officer Tradeshift recently announced that Christophe Bodin has joined the company as Chief Revenue Officer (CRO). Bodin will oversee all customerfacing segments across Tradeshift’s enterprise SaaS business. “Christophe is taking on a vital role at an important and exciting period for Tradeshift,” remarked Christian Lanng, CEO, Tradeshift.

NOVEMBER 2020 37

UPS EARNINGS

UPS reports growth across all segments in Q3-2020 Consolidated revenues increased 15.9% during this period over corresponding Q3-2019 segments

PS recently announced third-quarter 2020 consolidated revenue of US$ 21.2bn, a 15.9% increase over the corresponding third quarter of 2019, the company revealed in a press communiqué. Consolidated average daily volume increased 13.5% year over year. Net income was US$ 2.0bn for the quarter, 11.8% above the same period in 2019, or 10.7% on an adjusted basis. Operating profit was US$ 2.4bn, up 11.0% compared to last year’s third quarter, or 9.9% on an adjusted basis. “Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fueled by continued strong 38 NOVEMBER 2020

outbound demand from Asia and growth from small and medium-sized businesses,” noted Carol Tomé, CEO, UPS. In the US domestic segment, the average daily volume increased 13.8%, with growth across all products and continued elevated residential demand. The operating margin was 8.3%; adjusted operating margin was 8.6%. The reported revenues and operating profit for Q3-2020 for this segment was US$ 13,225mn and US$ 1098mn respectively. In the international segment, the average daily volume grew 12.1%, with doubledigit export volume growth globally and continued strong outbound demand from Asia. The operating margin was 23.6%; adjusted operating margin was 23.8%. The

reported revenues and operating profit for Q3-2020 for this sector was US$ 4,087mn and US$ 966mn respectively. In the supply chain and freight segment, the revenue increased 16.5%, driven by strong freight forwarding demand out of Asia. Operating margin was 7.6%; adjusted operating margin was 7.7%. The reported revenues and operating profit for Q3-2020 for this category was US$ 3,926mn and US$ 299mn respectively. “Our better, not bigger approach had a positive impact on our performance in the quarter, specifically through the revenuequality actions we’ve taken. Additionally, we recently launched new initiatives to further reduce our costs,” noted Brian Newman, CFO. n

VOLVO ELECTRIC TRUCKS

Volvo to launch electric trucks in Europe in 2021 Manufacturer will sell a complete range of battery-electric trucks in 2021

Next year, hauliers in Europe will be able to order all-electric versions of Volvo’s heavy-duty trucks. Roger Alm, President, Volvo Trucks.

olvo Trucks will offer a complete heavy-duty range with electric drivelines starting in Europe in 2021. Volvo Trucks’ massive drive towards electrification marks a major step forwards on the road to fossil-free transport. Volvo Trucks is now running tests of the electric heavy-duty Volvo FH, Volvo FM and Volvo FMX trucks, which will be used for regional transport and urban construction operations in Europe. These trucks will have a gross combination weight of up to 44 tonnes. Depending on the battery configuration the range could be up to 300 km. Sales will begin next year and volume production will start in 2022. This means that from 2021 onwards Volvo

Trucks will sell a complete range of batteryelectric trucks in Europe for distribution, refuse, regional transport and urban construction operations.

A gradual transition to fossil-free alternatives Electric vehicles for demanding and heavy long-haul operations will follow in this decade. These will be battery-electric and fuel cell electric trucks with a longer range. Volvo Trucks aims to start selling electric trucks powered by hydrogen fuel cells in the second half of this decade. Volvo Trucks’ objective is for its entire product range to be fossil-free by 2040. “By rapidly increasing the number of heavy-duty electric trucks, we want to help our customers and transport buyers

to achieve their ambitious sustainability goals. We’re determined to continue driving our industry towards a sustainable future,” remarked Roger Alm, President Volvo Trucks. From Volvo Trucks’ perspective, the transition to more sustainable transport is largely about making the shift as smooth as possible for haulage operators, so that they can begin to adjust. The solutions offered must be fossil-free and allow hauliers to achieve the necessary levels of profitability and productivity. “Our chassis are designed to be independent of the driveline used. As regards product characteristics, such as the driver’s environment, reliability and safety, all our vehicles meet the same high standards. Drivers should feel familiar with their vehicles and be able to operate them safely and efficiently regardless of the fuel used,” continued Alm. “Our primary task is to ease the transition to electrified vehicles. We’re doing this by offering holistic solutions that include route planning, correctly specified vehicles, charging equipment, financing and services. The long-term security that we and our global network of dealers and service workshops provide our customers with will be more important than ever,” concluded Alm. n NOVEMBER 2020 39

VACCINE LOGISTICS

Emirates SkyCargo to set up the world’s largest air cargo pharma anchor hub GDP-compliant Centre in Dubai South to facilitate global distribution of vaccine

40 NOVEMBER 2020

mirates SkyCargo is stepping up its readiness to handle the logistical complexities of distributing a potential Covid-19 vaccine globally by creating the world’s first dedicated airside cargo hub for the vaccine in Dubai. The air cargo carrier is taking a global leadership position by announcing that it will be re-opening its Emirates SkyCentral DWC cargo terminal in Dubai South to serve as a dedicated anchor hub for cold chain storage and distribution of the vaccine, the carrier revealed in a recent press communiqué. The freight division of Emirates has also set up a dedicated rapid response team to coordinate requests from the various partners involved in the international vaccine distribution ecosystem and to streamline the carrier’s response to vaccine transportation requests. “Dubai is well positioned to serve as a gateway and distribution hub for Covid-19 vaccines to the rest of the world. We have the infrastructure and logistics connections,

and a geographic location that puts markets representing more than two-thirds of the world’s population within an 8-hour flying radius,” affirmed HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Group. “Over the years, through our continuous investment in capabilities and processes for the transport of temperature sensitive pharmaceuticals, Emirates SkyCargo has managed to position Dubai amongst major global pharmaceutical customers as the year-round preferred point of transit for their valuable cargo. Setting up a dedicated airside hub for Covid-19 vaccines is a keystone project harnessing our network, reach and competencies to positively impact the lives of people around the world,” asserted HH Sheikh Ahmed.

World’s first dedicated airside hub for Covid-19 vaccine Emirates SkyCargo’s vaccine hub in Dubai South will be the largest dedicated airside facility in the world for pandemic vaccines.

VACCINE LOGISTICS

The Dubai hub will allow the air cargo carrier to fly in vaccines from manufacturing sites globally, store and prepare shipments for regional and global distribution. Emirates SkyCentral DWC has over 4,000sqm of temperature controlled GDP certified dedicated pharma storage area allowing for large scale storage and distribution of the potential Covid-19 vaccines. Overall, it is estimated that the facility can hold around 10mn vials of vaccine at an optimum 2-8 degrees Celsius temperature range at any one point of time.

Purpose-built services at DWC

The advanced infrastructure at Emirates SkyCentral DWC is also complemented by one of the world’s largest fleet of cool dollies helping protect temperature sensitive cargo during transit between the aircraft and cargo terminal. Additionally, the availability of a large number of temperature controlled trucking docks and the proximity of the terminal to the aircraft parking gates will ensure rapid and efficient clearance of cargo for further distribution. In addition to cold storage, Emirates SkyCargo will also offer dedicated zones for value-added services such as re-icing and repackaging of vaccines for global distribution for its customers. The extensive size of the facility, which can potentially handle millions of vaccine doses, along with the creation of a dedicated team to handle and execute requests will allow Emirates SkyCargo to be able to effectively handle the large volume of time critical requests for cross-border vaccine movement that will follow the successful introduction of a vaccine. Through a combination of scheduled and charter flights, the cargo carrier will then be able to fly the vaccines to markets where they will be most needed.

Emirates’ pharma transportation capabilities

Emirates SkyCargo is harnessing decades of experience gained from transporting temperature controlled pharmaceutical products and vaccines for global manufacturers to develop innovative solutions that will meet the challenge of distributing a potential pandemic vaccine globally within a short timeframe. Since 2016, the air cargo carrier has invested substantially in its capabilities for the transportation of temperature

sensitive pharmaceuticals. This included the introduction of a specialized product – Emirates Pharma - and the development of dedicated GDP certified ‘fit for purpose’ infrastructure pharma logistics operations.

Dedicated services

These specialized and purpose-developed functions are available at Dubai as well as at major origin and destination points under its ‘Pharma Corridors’ programme that currently covers more than 30 cities. Emirates SkyCargo has moved more than a quarter million tonnes of pharmaceutical cargo in the last four years. With its fleet of modern and efficient all wide-body aircraft and a network that currently spans more than 130 destinations across six continents, combined with the strategic geographic location of its Dubai hub, Emirates SkyCargo will be able to rapidly move vaccine shipments from manufacturing sites to the vaccine hub and then onwards to the rest of the world on a combination of scheduled and passenger flights. n NOVEMBER 2020 41

THOUGHT LEADERSHIP: TOM CRAIG

Covid-19 Vaccine – A Supply Chain Operations Plan Reflections on the complexities and intricacies of making the vaccine available to the masses

vaccine for the Coronavirus (Covid-19) is getting much attention. There are several firms in different countries working on it. Now there are articles on a macro view of the number of planes needed to transport and the required temperatures for a vaccine. These and other articles are interesting with their high-level view. However, these are not actionable. What is needed is an end-to-end (E2E) global supply chain operation plan to distribute the vaccine across the world. This is complex in what must be done, the geographic scope, product requirements, and the time pressure to do it. With a world population of 7.8 billion and possibly two doses per person, this is a huge undertaking to move it around the globe. Upfront, the availability of potential transportation and storage resources seems insufficient. That adds to the challenge and need for a plan—to be ahead of the game and to minimize as many problems—and there will be problems—ahead of time.

Initial outline

Presented here is a plan, rough perhaps, with many unknowns at this time. It is a working document that can be updated as more details/information arises as to product requirements, production location or locations; country demand; transportation, storage, and logistics resources; and other specifics evolve. Please note, the names of any transportation, warehouse, or logistics firms will not be mentioned. This is about the plan. Names will arise with the design and implementation.

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This is a very important point. This project defines VUCA—volatility, uncertainty, complexity, and ambiguity. The standard approaches will not work. Change will be a dynamic constant to the point it could be considered organized chaos. Again, 7.8 billion people in 100+ countries, possibly 2 doses each, a potential vaccine that requires temperature protection at below freezing temperatures or face degradation. The VUCA project defines challenge. • Prepare a list of contacts at receiving countries that will coordinate both medical and supply chain. Collaboration is important for such an end-to-end undertaking. • Err on the side of caution with developing and implementing the plan. • Start with vaccine raw materials/ ingredients (active and inactive)—where sourced, production rates and quantities, how to ship, what is required for handling & storage, including space. Do not forget vials and / or ampoules, caps, labels, and packaging. • Understand production batch/lot sizes and production rate, including any as to language for labels. • Establish a plan that covers the entire timeline--from launch period through to expected production to satisfy worldwide needs. • Know the product distribution plan—ship how many to where and the sequencing/prioritization. That is a starting point. • Measure time from door-to-door for each origin-destination. This is critical for product temperature protection.

• Understand that transportation space and availability and cold chain storage space will influence shipment sizes. • Track vaccine draw-downs. This is important for shipment scheduling and to not have more product at a destination than there is temperature protection space. • Recognize destination and origindestination differences. This is not a onesize-fits-all approach. It must understand and adapt to the product and operating realities. This is important. • Assign countries to ship to if there are multiple production sites. • Collaborate and coordinate with destination supply chain people on transport and warehouse issues, space, local nuances, providers, and other issues. This should be ongoing. • Determine special needs as to cold chain and/or cool chain temperature for storage, transport, sanitary, chain of custody. Do this for each tier of transport and storage for vials unopened and opened. Chain of custody is important to manage the product requirements, operational events, and to prevent criminals from theft, and to restrict counterfeits. • Analyze space and service needs for air cargo and cold/cool chain storage. • Calculate for each destination as to shipments sizes, ready release dates, and the number of shipments. • Calculate storage needs at the origin, including production rate and build inventory timing and releases / drawdowns. • Calculate storage needs for each destination. • Focus on door-to-door speed. • Minimize the number of handlings,

THOUGHT LEADERSHIP: TOM CRAIG

The past several months have reinforced without a doubt the critical importance of a well-operated healthcare supply chain. It has also exposed many of the shortcomings and weak links in that vulnerable chain. While the procurement, transport and distribution of such items as personal protective equipment (PPE) demonstrated one of the greatest logistics challenges of our lifetime, the logistics associated with timely and efficient vaccine transportation and distribution of the vaccine poses far more severe complications. In this thought leadership contribution, Tom Craig, President LTD Management, Pennsylvania, USA, a leading authority and professional consultant on logistics and supply chain management and regular contributor to Global Supply Chain reviews the functional hardships and logistical constraints involved in the vaccine distribution processes â&#x20AC;&#x201D;Editor.

NOVEMBER 2020 43

THOUGHT LEADERSHIP: TOM CRAIG

• Understand Customs requirements at destination airports to speed movement and quick handling from planes landing and shipping to end destinations. • Quantify that hospitals, doctors, and other medical/pharmaceutical places that will dispense vaccine can handle for safe handling and storage. • Ensure needed supplies of syringes, swabs, band-aids, gloves, and other needed PPE at each dispensing destination location.

Plan options

7.8 billion people in 100+ countries, possibly 2 doses each, a potential vaccine that requires temperature protection at below freezing temperatures or face degradation. stops, and transfers of products to mitigate temperature and contamination problems. • Understand destinations—airports, adequacies for storage and moving vaccine safely. • Define what carriers, warehouses, and transport/logistics providers can do as to product requirements, shipment/storage over the total timeframe, and sanitary conditions. Do it for origin, destinations, and intermediate locations. • Secure contractual firm space and service commitments by origin-destination (not by an aggregate or macro basis) to meet what

44 NOVEMBER 2020

is required for product requirements and time to perform, including variation, for transport and warehousing. Lock it up. • Conclude transport and storage capabilities with production and distribution plans. • Set the technology to follow the movement of the vaccine—bar code, RFID, or other. • Maintain temperature integrity. Track end-to-end temperature. • Monitor chain of custody. • Achieve maximum E2E visibility, technologies, and technology integration.

The above would present the ideal, Plan A model. This said the best-laid plans, including expected shortages of air cargo and cold chain storage infrastructure and capabilities and stability, a Plan B, a C, and even D or more to have the needed scope and viability, are useful to be ready for the just-in-case and to cover all the needs, especially temperature related. Here the purpose is to identify, assess, and mitigate risks/problems. This would include: • Identify areas/points where there are inadequacies, including destination alternatives in the event of transport and/or storage shortcomings. • Analyze potential performance problem areas. • Review ways to improve performance door-to-door and mitigate delays. Big ways to lesser ways. For example, for customs clearance and freight payment. • Assess gaps between needs and space availabilities. • Evaluate technology gaps, such as for visibility. • Create alternative lanes for transportation routes and storage for coverage. • Develop cooling alternatives and how and where best to use them. The plan that is developed for the vaccine also has to be prepared for other events that can affect the operations. For example, what if there was a global demand surge for Covid mono-clonal antibody therapies that would compete for many of the same supply chain resources as the vaccine? There is much work to be done. Much is at stake here. Put a supply chain team in place early to design a programme and then to manage it. The size and complexity of the project clearly demand it. n

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ESG CONCERNS

Environmental, Social and Governance principles set to evolve post pandemic ESG considerations are set for a major makeover and overhaul in the light of the current situation writes William Tohmé, CFA, Senior Regional Head, CFA Institute, Middle East and North Africa (MENA), based in Abu Dhabi, UAE – Editor.

even months into the Coronavirus pandemic, there have been more than 16mn reported cases, including in excess of 660,000 deaths. The global economy is in severe contraction, shrinking by an expected 5.2% this year, while the Middle East and North Africa region is forecast to fall by 4.2%. As the world battles to get back to normal, or the new normal, how businesses impact the societies they serve, including worker health and safety, as well as broader issues such as income inequality and discrimination are coming into sharper focus. Given the extreme impact of Covid-19 on the world in such a brief period, many businesses appear to be viewing the crisis as a wake-up call to prioritise a more sustainable approach to operations.

Polls prediction

A recent JP Morgan poll asked investors from 50 global institutions how they expected Covid-19 to impact the future of ESG (Environmental, Social & Governance) investing. 71% of respondents responded it was ‘rather likely’, ‘likely’, or ‘very likely’ that a low probability/high impact event, such as the novel coronavirus, would increase awareness and action taken to combat high impact / high probability risks such as those related to climate change. Some industry players seem to agree. Oil giant BP says the pandemic is likely to accelerate the transition towards cleaner energies, a view reflected in the company’s historic write-down of its assets in June. In light of this, efforts by the United Arab Emirates to diversify its economy and move 46 NOVEMBER 2020

towards more sustainable energy, which we have previously discussed, appear prudent.

Moving beyond fossil fuels

However, the ‘E’ in ESG is moving beyond the low hanging fruit of avoiding fossil fuel towards greater levels of supervision in holding companies to account. For example, global asset manager, Robeco, plans to pilot satellite imagery to monitor palm plantations to verify companies’ commitment to zero deforestation.

The global economy is in severe contraction, shrinking by an expected 5.2% this year, while the MENA region is forecast to fall by 4.2%. While the existential threat of climate change has dominated the ESG agenda to date, the economic devastation wrought by the pandemic, which the World Bank forecasts could tip up to 60 million people into extreme poverty, means which aspect of ESG assumes importance is changing. Aligned to this are new social movements against discrimination that are becoming centrally important to corporate values. These issues have become material to companies’ credit risk too. In July, the bond rating agency, Moody’s explicitly linked a firm’s stability to ethnic diversity

William Tohmé, CFA, Senior Regional Head, CFA Institute, Middle East and North Africa.

measures for the first time. It described the programme at UK-based Lloyd’s Banking Group to promote more black employees to senior roles as ‘credit positive’ because the move will improve staff diversity at all levels and reduce Lloyd’s exposure to ‘social risk’. At the beginning of the pandemic, some quarters predicted that when times got tough priorities would refocus away from ESG and back on the bottom line. The opposite appears to be the case.

Attitudinal changes

A recent survey from global professional services firm EY revealed that just 2% of investors said they conduct ‘little or no review’ of companies’ non-financial disclosures. That’s a dramatic change from 2013 when one out of every three investors claimed to be ignoring ESG data. As attention to ESG factors across industry gains traction, it is also maturing. Increasing numbers of investment houses are launching circular economy funds, investing in companies that consider the life cycle of materials to encourage greater recycling, with a focus on limiting plastic waste. Whatever way ESG goes post-pandemic, one thing seems certain–the issues at stake and its immediate repercussions are not going away. n

EMPOWERING SOCIAL DISTANCING IN OFFICES

Middle East organizations can leverage smart technology services for socially distanced offices PwC: 76% of Middle East CFOs implement workplace safety measures, especially with technology Contactless printing, remote servicing, de-centralized printer fleets, and large display projectors in meeting rooms can enable organizations to adhere to government guidelines, says Jason McMillan, Sales Director, Epson Middle East – Editor.

s Middle East organizations move toward a ‘New Normal’ with a mix of remote work and offices re-opening, smart technology services, especially in printing, can enable the socially distanced workplace. Among Chief Financial Officers in the Middle East, a recent PwC survey shows that 76% of them are implementing workplace safety measures, including 85% of respondents in the UAE. More than half (54%) of Middle East organizations are driving automation and new ways of working, the survey adds. Middle East offices that adopt these simple but effective office solutions, particularly when it comes to printing, can reduce touch-points, help make employees more efficient, reduce servicing, and optimize overall printing costs.

Contactless printing technology reduces touch-points In offices, often employees gathered around printers to wait for their documents to be printed out. Many organizations adopted contactless printing solutions to control paper and ink wastage, as printing is only completed when an employee swipes their card to release their print job. Now that same contactless printing technology can help to control the gathering of people at printers, and also reduce the number of touch-points as people swipe cards, not needing to touch the screen or buttons on the printer while also avoiding touching other people’s documents. Cloud-based solutions, can allow employees to remotely print documents

from their mobile devices instead of going to a printer to scan or copy documents.

Remote servicing and Heat-Free technology reduces repair visits One of the biggest concerns for bosses across the Middle East is having unexpected people visit their offices, potentially presenting health risks. In case printers need repairs, what used to be based on onsite visits can now largely be done remotely. Channel partners can use software such to reduce on-site repair visits, increase firstfix success, and costs in servicing printers and business downtime. Middle East organizations are starting to show strong interest in Epson’s Heat-Free technology, which can deliver productivity and print quality equal to that of laser printers, but without the preheating and fusing of toner to paper. This core technology allows inkjet printers to reduce users’TCO (Total Cost of Ownership) and environmental impact as they require infrequent servicing and generate less waste.

Larger offices de-centralize printing, scan and email documents With the Middle East home to many conglomerates and regional headquarters, these larger enterprises can similarly adopt safety measures such as de-centralizing printing fleets. Rather than having one large printer that everyone uses, companies are opting to place smaller printers around the office to reduce the gathering of people. Many offices can also scan and email documents as PDFs rather than handing them out – further reducing the number of

Jason McMillan, Sales Director, Epson Middle East.

touch-points and continuing to foster the socially-distanced office.

Projectors and document cameras make space for social distancing As Middle East workers return to offices, business leaders are leveraging projectors and document cameras to safely bring people back together and maintain social distancing while still able to see material being presented in meetings. Projectors offer a more flexible, inclusive, collaborative, and memorable solution than flat panel screens. For example, projectors leave no visible finger marks, and screen sizes can scale up to 350 inches. Employees working remotely can also annotate, share ideas, and add to group work. Document cameras can also share projected live views of 3D objects without people crowding or passing objects.

Investing in technology now leads to a safer, more innovative future Futurists are predicting different forms of the return to work, from socially distanced desks to social distanced circles on floors. Middle East organizations that adopt innovative printing technology now can enable the socially distanced office to meet government guidelines and to maintain business continuity. n NOVEMBER 2020 47

SUPPLY CHAIN MANAGEMENT INVESTMENT

Investing in supply chain management is no longer just for big companies Supply chain management is becoming more egalitarian – no more a function of company size Supply chain management is becoming increasingly eclectic, more expansive and inclusive asserts Saikat Kumar, CEO and Founder, Skycap Investments, in this contribution—Editor.

upply Chain Management, the process by which companies optimize the flow of goods and services from source to consumer, was earlier considered to be the game of the big company. Smaller companies used to manage inventories, distribution, and procurement on an ad-hoc basis. They used spreadsheets or other similar software that wasn’t integrated with the

Saikat Kumar, one of the prominent names in the Middle East investment banking and financial industry, is the Founder and CEO, Skycap Investment Management. Kumar has over 23 years of experience in banking and finance, which includes his stint as Partner and Senior Executive Officer, Al Masah Capital. He has played key roles in a number of internationally-recognized banks including ABN AMRO, ANZ Grindlays, Standard Chartered and ICICI.

48 NOVEMBER 2020

wider organization’s data, leading to limited visibility, increased risk, extra cost and impaired customer service. Digital and strategic Supply Chain transformations were seen to be the territory of massive companies with considerable IT and organizational resources to allocate. In other words, companies with supply chains have grown to be so complex that they need to be more carefully managed. If you were a growing smaller company, the mindset was to deal with deeper Supply Chain considerations after the company grew. Now, companies of every size are realizing that a flexible, nimble Supply Chain operation is a necessity. This is especially true for growing companies, who can sink their profitability as they expand without strong Supply Chain foundations in place–be it through product shortfalls, quality issues, controversies, or customer service snafus.

investment as they digitize their offerings. In the heavily fragmented freight forwarding market, providers are setting themselves apart by developing new platforms to help customers optimize operations.

Supply Chains for all

3PL takeoff

Smaller companies across industries– consumer goods, food production, pharmaceutical, services – have recognized that strong Procurement and Supply Chain Management is a crucial strategic asset. Spending on supply chain management software hit an estimated US$ 13bn in 2017. Market estimates indicate that total software revenues in the supply chain management market will rise to US$ 19bn by 2021. Third-party logistics (3PLs) providers are driving the growth in technology

3PLs are experiencing significant growth and small to mid-size customers are helping drive this expansion, which is projected to significantly grow. It is estimated that the global 3PL market will reach US$ 1.25tn by 2025. The move to cloud-based technology is also making supply chain platforms more accessible for smaller businesses. By 2021, cloud technology will make up 35 percent of all deployments. With supply chain technology now within reach for more businesses, the case

SUPPLY CHAIN MANAGEMENT INVESTMENT

for investing in tools that drive optimization is clear. A technology-driven supply chain helps improve end-to-end visibility and control over goods from purchase order to final destination, uncovering new ways to drive efficiencies and reduce costs. A Gartner study found that strategic supply chain outsourcing can save companies up to 20 percent of their costs over five years. While technology is the backbone of the modern supply chain, small and mid-size businesses can drive even more value through a supply chain partner who combines technology with strong logistics expertise and support.

Global supply chain post-Covid

The supply chain has evolved into a highly sophisticated tool that is vital to the nature of competition for many companies. However, their interconnectedness and

globalization makes them increasingly vulnerable by introducing a wide range of new and unfamiliar risks. Covid-19 has reminded many companies that they are not immune to high-risk threats. To counter that, new supply chain technologies are emerging that show promise in dramatically improving visibility and transparency across the entire value chain to enhance agility and resilience of operations without the traditional overheads. Advances in communication and information technology are making the evolution of the supply chain possible. Emerging and evolving technologies such as IoT, 5G, AI, 3D printing, and cloud computing are essential components in building the digital supply network of the future. The current volatile business landscape is creating an imperative for a new supply chain model.

Linear supply chain transformation

The traditional view of a linear supply chain and optimization restricted to your own business is transforming into digital supply networks (DSNs) where functional silos are broken down within your organization and you are connected to your full supply network to enable end-to-end visibility, collaboration, responsiveness, agility, and optimization. Increasingly, these digital supply networks are being built and designed to anticipate disruptions and reconfigure themselves appropriately to mitigate their respective impacts. Whether it is a black swan event such as Covid-19, a trade war, or a supplierâ&#x20AC;&#x2122;s bankruptcy, companies are forced to learn how to survive and thrive on the uncertain and unexpected. n NOVEMBER 2020 49

PUBLIC TRANSPORTATION

How outsourcing can help save the public transport sector Can outsourcing help salvage the public transport sector? In this OpEd, Peter Mohring, Managing Director-Transport, Serco Middle East, explains and makes the case why it has never been timelier for the transport sector to embrace outsourcing to help with post pandemic recovery and surgeâ&#x20AC;&#x201D;Editor.

he world as we know it has changed. Gone are the days when travel was as simple as jumping on a plane; now we are living in an entirely different world. Of course there is a fundamental need to operate differently, the old ways of doing things no longer apply and the rule book for the transport industry has changed beyond belief. Now, as economies slowly start to normalize and we are able to travel again, albeit in a social distanced way, how do businesses and governments need to adapt? How do we adjust workflows and utilize technology to ultimately deliver the greatest customer experience in an age where everything has changed? Clearly we need to re-imagine the transport sector. Aviation operators, airlines and airports need to make financial efficiencies across the board. At the same time they are still looking to maintain and of course exceed levels of customer service, and this is all whilst they are operating in a completely new environment where health has never been so much on the publicâ&#x20AC;&#x2122;s agenda. A new environment necessitates a new way of working, outsourcing has the potential to deliver critical value to support the sector more than ever during this time, offering specialized expertise, flexibility, cost efficiencies and technological solutions to aid collaborative decision making. Is the aviation industry ready for takeoff again? To understand the potential for outsourcing when it comes to transport, we must first examine the context. As one of the first industries affected, overnight the pandemic 50 NOVEMBER 2020

Peter Mohring, Managing DirectorTransport, Serco Middle East.

sent the aviation industry into crisis mode, with overall air traffic levels down by about 80 percent globally. This obviously came with a huge economic price tag for the industry and all its adjacent segments, such as tourism, hospitality and supply chains that depend on and support the sector. Unsurprisingly cost cutting measures have seen the halting of recruitment and training, reducing workforces, and the cancelling of contracts. However, despite this, what we have seen is the resilience and adaptability of the sector. It has forced us as well to re-imagine outsourcing, and it has stressed the need for

PUBLIC TRANSPORTATION

service providers to adapt to deliver even greater value than ever.

Transport revolutionized

Across the entire transport ecosystem clients are looking for three things: flexibility, scalability and innovative ways of reducing costs, whilst not degrading a service. That is why outsourcing is so crucial when it comes to the transport sector, because it enables the client to be efficient and do what they do best, which is running the business, whilst the service provider delivers what they do best â&#x20AC;&#x201C; delivering an outstanding customer centric service. It allows clients to keep the core team focused on the recovery strategy, and

weather fluctuations in the market, as the outsourcer carries all the risk on resources and service requirements. In an airport capacity for example, it gives the opportunity for the client to reduce OpEx costs and utilize a provider with a proven track record to improve customer service delivery.

Optimizing asset lifecycle management

One thing that can be leveraged through the outsourcerâ&#x20AC;&#x2122;s expertise is their ability to bring with them and put in place the latest policy, processes, procedures, technologies and people that drive energy efficiency, operational efficiency, cost optimization and

Serco Transport Serco is a leading provider of a full spectrum of transport systems in the Middle East and across the globe, ranging from air and sea to road and rail. In the Middle East, Serco is involved in the expertise, design, operation and maintenance of heavy rail, light rail, and trams; and provides airport operations, facilities management and air navigation services. Serco is also the largest nongovernment operator of civilian air traffic control in the world and offers a range of airside fire and rescue services.

NOVEMBER 2020 51

PUBLIC TRANSPORTATION

optimized CAPEX and OPEX costs generated by assets throughout their lifecycle. One way to enable this is through digital asset management, which focuses on leveraging data and technology to drive informed decision making in the asset management life cycle. It’s about understanding the economic and useful life of assets, when it comes to driving improved asset performance that reduces risk. By bringing in the latest techniques when it comes to automation, data analysis and AI, information can be analyzed to help clients with better insights to make better decisions and deliver greater value in a cost effective and sustainable way. Currently, when it comes to operations and maintenance services, we see airports and airlines still on their asset management maturity curve moving from time and usage-based PPM (Planned Preventive Maintenance) schedules (where maintenance is still deemed as an expense) through to CBM (condition based maintenance), RBM (risk based maintenance) towards Predictive and prescriptive methodologies for enabling 52 NOVEMBER 2020

maintenance where maintenance starts to materialize itself as an investment to the business.

industries, observations, takeaways and examples of best practices are being taken.

Can outsourcing positively impact passenger experience? Ultimately, now more than ever, the customer experience is key and outsourcing has great ability to deliver value through utilizing companies who specialize in experience When it comes to aviation, passengers are feeling very insecure about the whole experience, so the more that the travel industry can do to make them feel comfortable and safe, the quicker people are going to come back and get that confidence to travel again. Consistency is the watch-word here and this is especially important when it comes to customers getting the right information, experience and having the right expectations – even if they have to change. The outsourcer will bring with them an outsider’s view and therefore a fresh perspective. Whether it’s a passenger or a customer experience, specialists are looking at this across a number of different

Keeping people feeling safe and protected in a mall for example can be reapplied to other areas; whether it’s on the metro or at an airport. The combination of having that customer experience capability as well as the operational side and the ability to implement this experience will deliver a greater impact in the current world. Having an excellent customer approach has always been critical, but now more than ever it is vital to the future of the transport sector. Dealing with new rules and regulations may be subject to change, but one thing that can be controlled is how we negotiate and manage this. Leveraging best practice examples, implementing technology and having a consistency of excellent service is key to creating a sustainable transport model. We are living in a world where it is travel 2.0; and in fact working collaboratively with service providers will help re-imagine and drive forward the sector. n

Safety first

ETIHAD RAIL

tihad Rail, the developer and operator of the national railway network in the United Arab Emirates, was awarded the Gold Award for Best Practices for the year 2020 by the European Society for Quality Research, in recognition of its outstanding achievements in following best-practices and results in quality management strategies. “We are proud to receive this prestigious award, which confirms our commitment in following international best practices in building the UAE national railway network project, and as part of our efforts to support our nation in becoming one of the best countries in the world in quality of transportation,” affirmed Mohammed Al Marzouqi, Executive Director, Rail Affairs Sector, Etihad Rail, on this occasion. Etihad Rail has won this award out of 51 companies, public administrations and organizations from 39 countries, as it was chosen based on the results of surveys held by the association, opinion polls of strategic partners and market research. Lausanne, Switzerland-headquartered

Etihad Rail wins ESQR Award for Best Practices 2021.

European Society for Quality Research awards UAE Rail Operator Top Recognition European Society for Quality Research, monitors research, mechanisms and techniques for improving quality, and focuses on encouraging a culture of quality by awarding a set of appreciation awards in many fields, to contribute to introducing new initiatives, the latest innovations, disseminating knowledge and evaluating

distinguished practices around the world. It is noteworthy that Etihad Rail is working on developing the national railway network project, which is a strategic project across the county that will have a great impact in many aspects, including economic, social, environmental and tourism, a press communiqué concluded.

prepare qualified national cadres capable of leading the future of the national train and railway sector. It includes two years of theoretical training and one year of practical training, enabling the students join Etihad Rail DB in full time careers. “Our efforts to empower Emirati nationals are in line with the strategy of our parent company, Etihad Rail, which actively supports the Emiratisation policy in the

country and encourages Emirati youths to join this vital field,” asserted Saeed Salem Al Suwaidi, CEO, Etihad Rail DB. In line with its efforts to support the Emiratisation agenda in the country, Etihad Rail earlier this year announced the launch of an additional programme to train and employ more Emirati nationals with experience and high skill sets in various disciplines and engineering fields. n

Ten Emirati graduates obtain first Railways Diploma in the UAE Etihad Rail, the developer and operator of the national railway network in the United Arab Emirates, has announced the graduation of the first batch of Emirati nationals on the Railways Diploma Programme from the Abu Dhabi Vocational Education and Training Institute (ADVETI). They were subsequent employment by Etihad Rail DB, the company responsible for the operation and maintenance of Stage One of the national railway network. The ten students who joined the workforce are the first batch to finish the three-year Railways Diploma Programme in the United Arab Emirates, which was launched in 2017 under a partnership between Etihad Rail and ADVETI. This first batch will take over a number of technical positions, including the roles of train captain, traffic controller, locomotive and railway maintenance technician, and railway systems technician. The programme, which is the first of its kind in the country to provide the first Diploma in Railways in the UAE that aims to

NOVEMBER 2020 53

VACCINE LOGISTICS

Key transport challenges in Covid-19 Vaccine distribution Vaccine distribution into one country alone with 60 million people would require 100 B777 freighters to deliver. In this whitepaper, consultants and supply chain professionals Eelco Dijkstra of Europhia Consulting and Laurent Foetisch of Supply Chain Operations, Switzerland, weigh in on the enormity and complexity of the logistics operations involved in delivering and distributing any approved vaccine globally—Editor.

esearchers, companies and countries around the globe are working incessantly to create a safe and efficient Coronavirus (Covid-19) vaccine. Whilst this is being worked on, vaccine manufacturers are also working with governments, logistics companies, airlines and supply chain experts to figure out the solutions to the massive challenge is how to distribution these vaccines to people all over the world. In our series of articles on the Covid-19 vaccine supply chain challenges our latest article we explore the biggest challenges unfolding in the global distribution of vaccines and the dynamics playing out as vaccine launch dates move closer.

The above vaccines are the leading contenders in the world for manufacturing the Covid-19 vaccine for global use. Some of these vaccines such as Pfizer’s BNT162b1 and Moderna’s mRNA-1273 will bring new transportation and warehousing challenges related to minus degrees Celsius storage and transportation requirements. According to recent reports, Pfizer stated that its vaccine will need storage and transport temperature of its vaccine to be as low as minus 80°C. Moderna’s vaccine will need a storage and transport temperature of minus 20°C. The industry was earlier getting ready to transport these vaccines at temperatures ranging from 2 to 8°C. Temperature needs

Anticipated release date

Temperature requirements

Manufacturing partners

Name of Vaccine

Manufacturer

Country

Sputnik V

Gamaleya Research Institute

Russia

Q4-2020

2-8° C

Parana Technology Institute - Brazil, Dr Reddy’s - India

BNT162b1

BioNTech, Fosun, Pfizer

Germany, China, USA

Q4-2020

-80° C

None

New Crown

Sinopharm

China

Nov 2020

2-8° C

None

NVX-CoV2373

Novavax

USA

Dec 2020

2-8° C

None

mRNA-1273

Moderna, NIAID

USA

Q1 2021

-20° C

Lonza and ROVI–Europe, Catalent – Indiana, USA

AZD-12222

Uni Oxford, Astra Zeneca

Early 2021

2-8° C

Emergent BioSolutions - US, Serum Institute – Pune, India

CoronaVac

Sinovac

China

Early 2021

2-8° C

None

Ad5-nCoV

CanSino Biologics

China

Early 2021

2-8° C

None

54 NOVEMBER 2020

VACCINE LOGISTICS

such as minus 20° C and minus 80°C will further add to complexities since the logistics industry has never seen such kind of a challenge before!

Transport Capacity

The biggest challenge will be connecting manufacturer production sites to distribution markets. We are now witnessing the development of vaccine ‘consortiums’ with multiple global manufacturing sites. In some cases, manufacturers are developing multiple production locations to ramp up production close to key distribution markets. Here are a few examples to cite. A number of manufacturers will ramp up with both a production site in the US and in Europe. Astra Zeneca will work with

a production partner in Oswaldo Cruz Foundation (Fiocruz) in Brazil and with The Serum Institute in Pune, India. The Russians are looking to partner with Dr Reddy’s Laboratories for production in India. For large distribution markets such as the US, Europe, Russia, India, China and Brazil, most vaccines will probably be distributed from ‘local’ production sites using road transport. The capacity requirements of temperature-controlled trucks will be substantial. On the other hand, there will be many other countries across all continents that will require air freight solutions to get access to vaccines. Each will face their own set of challenges including capacity constraints.

Airfreight Capacity In a recent announcement, IATA, the International Airline Federation, said that transportation of Covid-19 Vaccine would require more than 8,000 747 Jumbo freighters. This may be an underestimated number. This requirement, in the months ahead, will present a major challenge in the global airfreight capacity of all the aviation companies combined. For example, to illustrate the massive scale of capacity required, the current population of the United Kingdom is around 62 million. Around 100 B777 freighters will be needed to transport a vaccine (double doses per capita) to immunise the UK’s entire population from a faraway manufacturer. That’s just to serve the needs of one country! NOVEMBER 2020 55

VACCINE LOGISTICS

Global Airfreight pricing related to Covid-19 Capacity Constraints Demand for airfreight Price/kg Freight capacity Constraints

Source: Europhia Consulting 2020

Supply of airfreight

the next challenge would be to get these Imagine now the distribution needs vaccines safely transported to a safe cold around the world using the limited air Categorization of countries chain storage facility in some of these freight capacity available globally. The graph emerging below illustrates the massive price of impact in terms population (incountries. billions) capacity airfreight constraints might have in the months ahead. CATEGORY C the first wave Transiting the goods in emerging We saw this also during countries through airports and into trucks during Covid-19 in March through to June will likely pose a major challenge. in which airfreight capacity went down Moreover, if frozen storage is required, as airlines retired passenger jets yet PPE there are limited airports worldwide that capacity requirements went through the have sufficient deep-freeze warehouse roof. The same scenario could happen capacity available. For example, there are here also and will likely drive up the costs only four airports in the entire African of airfreight as well as create capacity continent that have this option. constraints. Airport facilities Most airports that do have such facilities are not set up to handle large quantities of temperature-controlled product. Another huge risk is product security. Not only distribution but also the arrival Since these vaccines will be highly valuable of vaccines at many destination airports, commodities, the risk of theft or loss is especially in emerging countries will be a substantial at many airports and in final potential cause of concern. mile distribution. Typically, ground handlings at airports Therefore, it will make sense for of pharmaceutical products are high CATEGORY B CATEGORY A governments to start planning and to risk points. Lack of professional cargo conduct risk assessments and final mile handling and temperature-controlled planning critical once product arrives in storage facilities,Countries especially in the emerging Category their countries. countries, is a clear risk States, which needs be Russia, Category A United China,to India, Brazil, EU27 For instance, fast track Category somehow. B Mid-size countries such as Indonesia, Japan, LATAM ex Brazil, processing time through arrivalNigeria, airports, mitigated Saudi Arabia, Iran, Turkey, Egyptgiving and others. temporary air traffic rights and Now, many airports do not have Category C toSmaller countries with a pop upthe to training 50 million of per staffcountry. to be able to safely such facilities store large volumes and quickly handle containers carrying of pharmaceutical products at 2-8°C. Category A arecooled the countries that areas likely to manufacture vaccines locally, whereas the vaccine. All these practical measures Using actively containers such Category B and Category C are countries that are likely to get the vaccines shipped from can really help to ensure product quality, Envirotainers, Skycells and C-Safes could othermitigate parts ofsome the world. integrity and security. help of the risks however

1.8

2.4

Final Mile Distribution and Product Security

56 NOVEMBER 2020

3.9

If there are no 2-8° C or even lower cold chain facilities at destination airports, there will be a need for Envirotainers or other regulated shipping containers to provide additional 2-8° C cold chain protection to make sure that the product is not stuck for a longer period of time at the airport or in transfer to final destinations. Active packaging containers are probably best applied on outbound shipments at origin to ensure product doesn’t need to be handled more than needed at destination in non-temperature controlled environments.

Temperature-regulated trucks

Once the vaccine goes out from the destination airport, it would need temperature-controlled trucks to transport the vaccines to cold chain storage units and finally to hospitals, pharmacies or doctors.

VACCINE LOGISTICS

These cold chain trucks would need to be temperature controlled and would need constant monitoring. This could be another challenge in developing nations. Moreover, in many countries such reefer trucks are potentially not available in sufficient numbers. Similarly, storage and warehousing of these vaccines will require adequate space too. Whilst a lot of countries and logistics companies have already started to build additional temperaturecontrolled storage facilities, there is still a long way to go. Several logistics companies such as UPS and DHL have started investing heavily in new temperature-controlled capacity. UPS recently added 600 freezers that are capable of handling temperatures as low as minus 80 degrees Celsius near UPS air hubs in Louisville, Kentucky, and in the

Netherlands.

Freezer capacity

Each of these freezers has the capacity to hold 48,000 vials of vaccine. However, electricity and consistent temperature control would be a concern in developing nations and regions prone to limited electricity reliability. It is extremely crucial to monitor the vaccines right from the place of origin to the place of distribution and make sure that the quality and integrity of vaccines is well maintained. According to some media reports there are a lot of organized crime networks and international terrorist organizations that have started supplying counterfeit PPE products to countries with short supply. Similar malicious activities can take place

once a successful vaccine is ready for use and therefore, proper security monitoring and clear visibility would be required to maintain product integrity and safety. The below chart clearly illustrates that most countries around the world fall into Category B and C when it comes to population size. The countries that come under categories B and C would require more attention in terms of air freight capacity and security because there is a high probability of vaccines being shipped by airfreight from other parts of the world rather than being able to rely on local production. Whereas, on the contrary, countries in category A would need to concentrate more on road transport distribution planning since all these countries are currently manufacturing vaccines locally. NOVEMBER 2020 57

VACCINE LOGISTICS

Global Airfreight pricing related to Covid-19 Capacity Constraints

Regional Distribution Hubs

Demand for airfreight Price/kg Freight capacity Constraints

Supply of airfreight

Source: Europhia Consulting 2020

Categorization of countries in terms of population (in billions) CATEGORY C

1.8 2.4 CATEGORY B Category Category A Category B Category C

Conclusion

3.9 CATEGORY A

Countries United States, China, India, Russia, Brazil, EU27 Mid-size countries such as Indonesia, Japan, LATAM ex Brazil, Nigeria, Saudi Arabia, Iran, Turkey, Egypt and others. Smaller countries with a pop up to 50 million per country.

Category A are the countries that are likely to manufacture vaccines locally, whereas Category B and Category C are countries that are likely to get the vaccines shipped from other parts of the world. 58 NOVEMBER 2020

The main vaccine manufacturers have already started to produce at risk. Typically these manufacturers have limited storage capacities at their factories and need to move produced vaccines to external warehouse locations. One solution to overcoming capacity concerns at both origin and destination is to develop cross-dock hubs and replenishment models to ‘drip feed’ vaccine supply into countries rather than in huge batches. This might take some of the pressure off airport processing, transport and storage capacity concerns. Drip feeding vaccines into markets by using a regional distribution hub for temporary storage of produced vaccines might help to mitigate some of the destination country distribution risks as well. For example, Emirates SkyCargo has just launched a dedicated airside hub at Dubai World Central (DWC) in Dubai as its regional hub for temporary storage of incoming vaccines for onwards distribution to countries.

It is crucial for manufacturers of vaccines and/or governments to realize that they need a strong supply chain team to work together and design and manage their GDP (good distribution practices)-compliant end-to-end requirements with the various logistics service providers and airlines providing solutions. Many of these parties are traditionally considered as ‘competitors’ however, given this very sensitive situation to be successful it is vital for companies to step over these ‘traditional commercial considerations’ to work together to bundle expertise and capacity across the end-to-end supply chain. We see two key scenarios in how best to organize and manage the supply chain requirements effectively and quickly. In scenario A, the vaccine manufacturer needs to create an effective supply chain organization with professional supply chain expertise to help manage all the end-to-end supply chain challenges. This will help save time to design and execute the required distribution solutions and to manage the logistics partners in the supply chain. Critical elements

VACCINE LOGISTICS

Container providers and airlines should start working together to build an effective strategy on what is referred to as the ‘biggest logistics challenge since World War II’

Scenario A: Vaccine manufacturer himself manages vendors and end-to-end supply chain solution.

Vaccine Manufacturer SC Organisation

3PL Warehousing

Airline

Transportation Company

Scenario B: Vaccine manufacturer outsources end-to-end supply chain solution to a 4PL.

to integrate into such an organization include forecasting and planning related to managing available capacities and bottlenecks, managing the logistics providers, contracts and so on. In scenario B, a lead logistics company, typically a 4PL manages on behalf of the vaccine manufacturer the end-toend supply chain requirements, logistics partners and provide visibility is one fast and effective way to navigate all the supply chain requirements through one logistics partner. Using a 4PL will help bundle logistics expertise, management, contracts, compliance to regional and local regulations, product visibility and reporting through one partner. Although a vaccine will probably be available in the first quarter of 2021 the production at risk and distribution of these vaccines has already started and will be an unprecedented global supply chain event. A large amount of vaccines will be required to be shipped and delivered to different parts of the world within a very short time period and hence multiple warehouse partners, final mile transportations partners in different countries, container providers and airlines should start working together to build an effective strategy on what is referred to as the ‘biggest logistics challenge since World War II’. n

Vaccine Manufacturer SC Organisation

4PL

3PL Warehousing

Airline

Eelco Dijkstra of Europhia Consulting has worked in supply chain and consultancy for over 25 years and in recent years has focused his expertise on the global pharmaceutical sector. Laurent Foetisch of Supply Chain Operations has extensive experience as a supply chain executive responsible for managing a global bio- pharmaceutical company in Switzerland for more than 20 years-Editor) Transportation Company NOVEMBER 2020 59

ENFORCING CYBERSECURITY

Seven signs that your security stack needs simplifying Nader Baghdadi, General Manager, META, Secureworks, reflects on warning signs and red lines that may compromise cybersecurity and firewalls. Here he examines seven indicators —Editor.

ecurity teams in the Middle East and around the world often struggle with complexity, and for many this feels like the norm and an everyday challenge. However, this makes it difficult to know when complexity has gone too far. With numerous, overlapping cybersecurity tools extra layers are often added to the stack, making it difficult to manage and monitor. Most security organizations are aware that this complexity may be causing problems, but struggle to assess how and where. The challenge is that there is no objective measure of complexity, but there are several warning signs that will indicate the cybersecurity stack is becoming too complex. These are:

1 You’re reactive, not proactive Complexity leads to reactivity. If you are constantly wrong-footed by events and incidents, it’s a significant sign you should look to simplify your stack. A key indicator of this is the volume of alerts that your team struggles to process. In this situation, analysts often can’t identify real threats until long after they happen. Things are frequently made worse for analysts by an overabundance of platform management and administration tasks, as well as the need to learn an often-dizzying array of tools.

can’t identify where 2 You all the budget is going

If you’re struggling to track where all your budget is spent, that can be a bad sign. In this circumstance, CISOs (Chief Information Security Officers) need to find where the extra budget is assigned. If a CISO is struggling to identify the spend, and the organization is spending much more than previous companies the CISO has worked for, it’s likely there is a 60 NOVEMBER 2020

complexity issue. As the industry has released new tools to tackle new threats, older tools are forgotten or ignored. It pays to take regular inventory of your environment. Remember that you should be able to justify return on investment (RoI) for every tool in your stack.

tools are 3 Multiple doing the same thing

Running multiple tools in parallel that do the same thing is another common sign of complexity. Some security teams have four or five programs running vulnerability scans at the same time, for no good reason. One should be enough. In these situations, the programs can generate a lot of noise that negatively impact KPIs for the security team and leave the CISO thinking they are receiving bad information from the team.

Nader Baghdadi

attacks of the last five years. While no solution is immune from attack, it’s wise to think about your environment and identify areas where you might be duplicating security controls.

spending a lot 6 You’re of time documenting tools

Every CISO should have confidence in their analysts, and the tools available to them should enable – not hinder – their success. If your security staff is struggling to master the tools in your stack, this is a strong signal that there may be too many. The team’s time is divided between learning five tools that do similar things, rather than mastering one or two. The goal should be to arm your analysts with a couple of tools they can truly master.

It’s good practice to document tools so that common operations are repeatable and the security team can learn from their experiences. But there are warning signs to look out for during the documentation process. For example, if the team feels like they are documenting every operation for a tool, that’s a sign something is wrong. It could be that the tool itself is not the right one for you. Or, it could mean something is wrong with the tool configuration. If the team spends a lot of time documenting across all the tools in your stack, it’s probably too complex and the tools may not be user-friendly enough.

protecting things 5 You’re that are already protected

forgotten about 7 You’ve some legacy tools

struggles to 4 Staff master the tools

People worry about the implications of moving to the cloud for security. Is it wise to hand over sensitive data to a third party? The answer is often ‘yes.’ A good indication of this is that cloud providers have been largely unaffected by the major ransomware

It pays to guard against overlooking legacy systems that are still switched on. If a legacy system is still creating alerts, these can be missed. Worse, if a legacy tool catches an incident, but nobody is reporting on the tool, that incident could go unnoticed. n

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GLOBAL SUPPLY CHAIN NOVEMBER 2020

Articles inside

Cybersecurity

Sustainability

Etihad Rail

Supply Chain Investment

Tom Craig: Supply Chain Vulnerability

Prioritizing ESG

Transportation