An ITP Business Publication Licensed by International Media Production Zone
DEVELOPMENT ZONE An exclusive look into Ras Al Khaimah’s US$2 billion free trade zone expansion
ON THE RIGHT COURSE JANUARY 2010 ISSUE 64
Why Strathclyde University is bringing its supply chain programme to Abu Dhabi
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
POWER
PLAYERS REVEALING THE MOST INFLUENTIAL CEOs OF LOGISTICS COMPANIES IN THE MIDDLE EAST REGION
Fadi Ghandour, founder and chief executive offi cer of Aramex
TOLL GLOBAL FORWARDING І DNATA І ARAMEX І SNS І GLOBELINK WEST STAR SHIPPING
CONTENTS
CONTENTS Issue 64 January 2010 For the latest news and stories go to
14 02 Editor’s Letter
12 ArabianSupplyChain.com
26 Ask The Expert
Inviting readers to submit their opinions on the Logistics Middle East Power 25 List.
Highlights of the month from the official website of Logistics Middle East magazine.
05 News Update
14 Cover Story: Power 25
Sumesh Nair, general manager of Globelink West Star Shipping Middle East, describes the numerous benefits of sea-air transportation.
• Exhibition chaos for GCC logistics as SITL Dubai and CeMAT Middle East postponed • FlyDubai signs Danzas as logistics partner • CEVA awarded Embraer Middle East deal • Majaal receives Bahrain warehouse award • Dnata acquires airport operators in the UK • CILT to expand courses in the Middle East • Toll Group reveals Dubai 3PL acquisition • Abu Dhabi invests in Turkish logistics firm • Santis HSE awarded ADAC forklift contract • DHL hosts customs tour at Bahrain office • SNS hails the success of Lebanon seminar • Momentum Logistics joins global alliance • Maersk Oil opens Qatar logistics complex
A list of the region’s most influential executives of logistics companies, with entries from the likes of Fadi Ghandour (Aramex), Hamdi Osman (FedEx), Elias Monem (Agility), Bill Hill (GAC Logistics) and Richard Bell (RHS Logistics).
05
22 Development Zone Approaching its 10th anniversary this year, Ras Al Khaimah Free Trade Zone (RAKFTZ) is planning to develop its status as a Middle East logistics hub with a major US$2 billion expansion over the next five years, explains chief executive officer Oussama El Omari.
22
28 Facts And Figures Transportation statistics from a variety of regional and international sources.
31 Events Calendar A listing of seminars, conferences and trade shows for the Middle East logistics industry.
32 Face To Face Interview Professor Umit Bititci from the University of Strathclyde explains why the educational institute is bringing its masters programme in logistics and supply chain management to a regional campus in Abu Dhabi.
32 www.arabiansupplychain.com | JANUARY 2010
1
EDITOR’S LETTER
Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 435 6284 email: robeel.haq@itp.com Contributors Nadia Khan, Ed Attwood, Sarah Cowell ADVERTISING Commercial Director Fareed Dubery Tel: +971 4 435 6339 email: fareed.dubery@itp.com Sales Manager Jayant Dey Tel: +971 4 435 6106 email: jayant.dey@itp.com STUDIO Group Art Editor Daniel Prescott Art Editor Simon Cobon
Who holds the power in Middle East logistics?
T
o celebrate the start of 2010, we’ve published the inaugural Logistics Middle East Power 25 List, which ranks the most influential CEOs of logistics companies in the region. Taking pole position this year is Fadi Ghandour, the chief executive officer and founder of Aramex, who has transformed his company into one of the industry’s biggest success stories, with increasing profits being reported even during the global recession. Ghandour, who graces our cover this month, celebrated this achievement by providing Logistics Middle East with an exclusive insight into the various facets of his leadership style, including a guarantee to employees that zero redundancies would occur during the current economic crisis. A variety of figureheads have followed Ghandour in the power list, from highprofile individuals such as Elias Monem from Agility, to inspirational figures such as Hamdi Osman from FedEx, to the heads of relative newcomers to the industry, such as Brain McHale from Wared Logistics.
Congratulations to each of the 25 executives that were featured in the power list. Unfortunately, with such a limited number to work with, you may notice a few surprising omissions this year. In fact, our editorial team had to make some truly difficult decisions and we look forward to re-evaluating the rankings in 2011, based on activities in the forthcoming year. Of course, we know that controversy is often associated with such lists and I’m sure our readers will have their own pointsof-view on each position. This is natural and we would love to hear your opinions. A dedicated channel has been opened on our website, www.ArabianSupplyChain.com, where you are invited to agree or disagree with the list. Who do you think is the Middle East’s most influential CEO of a logistics company and why? The best comments will be published in the next issue of Logistics Middle East, so please get in touch. If you have any comments to make on this month’s issue, please email Robeel Haq, senior group editor of Logistics Middle East magazine (robeel.haq@itp.com)
To subscribe please visit www.itp.com/subscriptions 2 JANUARY 2010 | www.arabiansupplychain.com
PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographer Efraim Evidor Staff Photographers Leila Cranswick, Lyubov Galushko, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Louise Schreiber Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Horizon Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.
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Published by and © 2010 ITP Business Publishing, a division of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Number 1402846.
Take a look at the map of our campus.
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NEWS UPDATE
Exhibition chaos for GCC logistics sector Event organisers announce the postponement of SITL Dubai and CeMAT Middle East until 2011
T
he recent postponement of SITL Dubai and CeMAT Middle East has placed the viability of large-scale exhibitions for the Middle East logistics industry into jeopardy, according to regional experts. Both events were scheduled to take place in 2010. However, announcements from Reed Exhibitions, organiser of SITL Dubai, and Deutsche Messe, organiser of CeMAT Middle East, have revealed that the exhibitions are now being planned for 2011. The announcements are the latest in a line of cancellations for logistics trade shows in the Middle East, with the Council of Supply Chain Management Professionals (CSCMP) being amongst the first to terminate its plans for a Dubai conference, stating that companies had “discontinued their support of employee travel and participation in conferences as a result of the global downturn”. More recently, IIR Middle East cancelled its International Freight Week exhibition in Abu Dhabi last year, following a limited response from the market. “We have decided to organise the next edition of SITL Dubai in co-location with our annual Airport Show Exhibition & Conference in 2011, which will provide participants with enhanced business, networking and content opportunities,” explained Mohamad BaderEddin, show director of Reed Exhibitions Middle East, which hosted the debut SITL Dubai exhibition last year. The event attracted around 80 exhibitors, including Agility, DP World, Jebel Ali Free Zone and Al-Futtaim Logistics, although the final tally was lower than earlier predictions of 250 exhibitors. “SITL is viewed as the ultimate event for sea and land freight sectors, while partly including the airports and airliner sectors. Having the Airport Show attracting all the airlines and airports to the exhibitors, the combination of both shows will be advantageous as SITL will become the ideal event covering the entire transport industry,” added Bader-Eddin. CeMAT was due to make its debut in the Middle East this year, although prospective attendees will now have to wait until 2011, according to a spokesperson from organiser Deutsche Messe.
“In the eyes of Deutsche Messe, the United Arab Emirates, and particularly Dubai, continue to represent a key exhibition location in the medium and long term. After careful analysis, we have decided to postpone the debut of CeMAT Middle East until 2011,” revealed Dr Andreas Gruchow, member of Deutsche Messe’s managing board. “There are topic overlaps at the exhibition venue, which now make it impossible to stage our exhibitions within the original framework. We require the premium exhibition facility for our events in order to fulfil the needs of our customers and our preferred venue to hold this trade show would be The Dubai World Trade Centre.”
LOGISTICS EVENT CANCELLATIONS IN THE MIDDLE EAST • November 2008: The Council of Supply Chain Management Professionals (CSCMP) cancelled its Dubai conference, stating “the current climate requires companies to discontinue their support of employee travel and participation in conferences”. • August 2009: IIR Middle East axed its International Freight Week exhibition in Abu Dhabi for 2009, following a limited response from the market. The decision was “due to the downturn and unprecedented pressures on the transport and logistics industry” according to a statement from IIR Middle East. • December 2009: Reed Exhibitions confirmed SITL Dubai is returning in 2011, contrary to previous reports that the logistics exhibition was being planned for 2010. “Reed Exhibitions has decided to organise the next edition of SITL Dubai in co-location with our Airport Show Exhibition & Conference,” explained Mohamad Bader-Eddin from Reed Exhibitions Middle East. • December 2009: The Middle East debut of global logistics exhibition CeMAT was delayed until 2011, with organiser Deutsche Messe stating the decision was down to “topic overlaps at the exhibition venue”.
www.arabiansupplychain.com | JANUARY 2010
5
NEWS UPDATE
NEWS IN BRIEF
FlyDubai forms Danzas partnership Major transportation contract awarded by UAE low-cost airline for its ‘Above and Below Wing’ consumables
Majaal, the recently-launched warehousing venture from First Bahrain, has been crowned the ‘best industrial development’ at this year’s GRE Excellence in Real Estate Awards. The company was selected for its contribution to the growth of Bahrain’s real estate and warehousing sectors, whilst stimulating the Kingdom’s economy. “Majaal is about filling a demand gap for secure and cost effective storage solutions in Bahrain” said Amin Al Arrayed, general manager of First Bahrain. “We’re honoured to be recognised by our peers with this award.” Momentum Logistics has been confirmed as the latest member of Atlas International Network, a group of independent forwarding companies, non-vessel operating common carriers (NVOCCs) and related service providers. “We have always looked to develop our global network and provide the highest standard of service to customers,” stated Matthew Derrick, general manager of Momentum Logistics. “As a member of the Atlas network, we have access to a global network that operates in accordance to the highest international standards.” DHL has expanded its ocean freight operations with the launch of a direct LCL (Less than Container Load) service that connects Dubai to Nhava Sheva in India. The weekly service will be operated by DHL Lemuir Logistics, a joint venture between DHL Global Forwarding and Mumbai-based Lemuir Group. “The launch of this vital link from Dubai to Nhava Sheva continues to enhance our leading position in the industry as an LCL service provider,” said Christoph Remund, CEO of DHL Lemuir Logistics.
6 JANUARY 2010 | www.arabiansupplychain.com
FlyDubai’s CEO Ghaith Al Ghaith signs the logistics contract with Enver Moretti, CEO of DHL Global Forwarding in the Middle East
Danzas has announced its selection as the logistics partner of FlyDubai, providing the lowcost airline with transportation services for its ‘Above and Below Wing’ consumables. “Partnering with FlyDubai is going to be extremely rewarding for us both,” commented Enver Moretti, CEO and president of DHL Global Forwarding in the Middle East and Africa. 3PL
“This contract is a ‘strengthen and support’ exercise, where we can take care of the non-core aspects of the FlyDubai business and help the airline maintain its growth,” he continued. Danzas, which has warehouse facilities in Dubai Cargo Village, Jebel Ali Free Zone, Dubai Investment Park, Dubai Airport Free Zone and Sharjah, will provide transportation by ocean, road and air under the contract,
in addition to warehousing and distribution services. “Danzas belongs to the world’s largest logistics company and has extensive experience of working in the Middle East,” explained Ghaith Al Ghaith, chief executive officer of FlyDubai. “We believe this makes them the ideal choice to handle our logistics requirements and deliver what we need, when we need it,” he added.
CEVA contracted by Embraer in Middle East CEVA Logistics has been awarded a threeyear contract to provide various supply chain services to aircraft manufacturer Embraer in the Middle East. Under the deal, CEVA will supply spare parts on behalf of Embraer to the expanding executive jet fleet market in the Middle East, as well as provide support to operators in North Africa and India. In addition, the logistics company will be responsible for customs clearance procedures, stock management, and express pick up services for aircraft on the ground. “Our excellent solutions will enable Embraer to satisfy its customers’ needs, providing an efficient and punctual delivery service,” stated Gianfranco Sgro, president of CEVA Logistics in 3PL
Gianfranco Sgro with CEVA colleagues Wade Thompson and Shamsudeen Ahmed
Southern Europe, Middle East and Africa. “Thanks to our understanding of the aerospace industry, we can create flexible services that are designed to satisfy the unique needs of this sector, including
a wide portfolio of smart and high-value solutions.” CEVA will dedicate 700m2 of storage space for Embraer in its Dubai distribution centre, located in Jebel Ali Free Zone, according to Sgro.
NEWS UDPATE
Dnata acquires UK airport operators
NEWS IN BRIEF
Recent purchases will mark Dubai-based company’s entry into London Heathrow and Manchester airports Dnata has announced plans to acquire two of the UK’s leading ground handling operations. The Dubai-based company will purchase Plane Handling Ltd, which provides cargo and ramp handling services at London Heathrow and cargo handling at Manchester Airport. OPERATIONS
In addition, Dnata will take over Aviance Ltd’s passenger and ramp handling operations at Terminal 3 and 4 at London Heathrow Airport. The acquisitions, which are valued at US$25 million, will be completed on 30th January 2010 and mark Dnata’s entry into the UK airport handling sector.
“These businesses offer a perfect fit with our operations in Dubai, Singapore, Switzerland, Australia and other parts of the world,” said Gary Chapman, president of Dnata. “We are committed to further developing both companies and ensuring that their customers enjoy the highest levels of service.”
The Chartered Institute of Logistics and Transport (CILT) has revealed that the Middle East launch of its International Certificate in Logistics and Transport will take place next month. “We have been asked by various companies and individuals in the region to support them with this qualification, which is designed for newcomers and first line supervisors working in the field of logistics, transport and supply chain management,” explained Alex Borg, regional director of CILT. “The classes will be scheduled twice a week, in the evenings, at Emirates Aviation College in Dubai.”
Dnata’s acquisition of Plane Handling Ltd and Aviance Ltd has been valued at US$25 million and will be completed later this month
www.arabiansupplychain.com | JANUARY 2010
7
NEWS UPDATE
NEWS IN BRIEF
Toll Group acquires Dubai 3PL firm Asian company expands its Middle East operations with purchase of Logistics Distribution Systems (LDS) Australia’s Toll Global Forwarding (TGF) has expanded its footprint in the Middle East with the acquisition of Dubai-based 3PL company Logistics Distribution Systems (LDS). According to a statement, the transaction will be funded from existing cash reserves, although specific details on the purchase price were not revealed. “The Middle East is considered a key strategic market for Toll Global Forwarding, especially with the United Arab Emirates,” explained Paul Little, managing director of Toll Group. “This acquisition of LDS will enhance our existing operations in the region and supports our growth strategy,” he added. 3PL
Abu Dhabi Airports Company (ADAC) has awarded Santis HSE Group with a long-term contract to provide its warehouse employees at Abu Dhabi International Airport with forklift training courses. “The hectic nature of airport warehouses is not always favourable to safe driving habits,” explained Malcolm Coates, CEO of Santis HSE Group. “The harnessing of good driving disciplines is therefore essential to the safety of logistics personnel and equipment. Our trainers will focus on safe working practices and careful inspection of trucks.” DHL Express hosted a recent tour of its Bahrain distribution centre for senior customs officials from the Middle East, where employees provided a live demonstration of the courier firm’s security and satellite systems. “As the first logistics company in the Middle East to receive full scores on the global TAPA ‘A’ certification, we were delighted to share industry best practices and enhance crossborder exchange with our customs colleagues from the region,” said Garry Kemp, managing director of DHL Express in the Middle East. Maersk Oil Qatar has partnered with Venture Gulf Group to open a new logistics complex in Qatar. The facility, which is located in Salwa Industrial Area, will serve as a central base for Maersk Oil’s onshore operations for the development of Al Shaheen, Qatar’s largest offshore oilfield. “This marks another successful and important milestone for the company in our ambitions to achieve operational excellence with our operations here in Qatar,” stated Morten Westin, logistics manager of Maersk Oil Qatar.
Logistics Distribution Systems (LDS) operates a warehouse in Jebel Ali Free Zone
LDS has a central warehouse facility in Jebel Ali Free Zone and currently generates annual sales of approximately US$45 million, with 60% of the revenue coming from air and sea freight forwarding and the balance
from customs clearance and other value-added services. “Into the future, LDS will also provide Toll Global Forwarding with a platform for strong growth in the broader Middle East region,” stated Little.
Abu Dhabi invests in Turkish logistics firm Turkey’s Ekol Lojistik (EKOL) has sold a minority stake in its business to Invest AD for a reported US$17.7 million. The deal was struck with the financial services company, which is owned by the Abu Dhabi government, to fund a forthcoming expansion strategy for EKOL. “Our investment is perfectly in line with Invest AD’s strategy of partnering with local market leaders and assisting them in their regional expansion,” stated 3PL
Samir Assaad, head of private equity at Invest AD. “We believe EKOL is unique in its sector, differentiated by its focus on innovative and customised solutions. It’s expanding quickly as trade grows in Europe and the Middle East.” Invest AD’s private equity fund, which aims to raise $400 million, is investing in a number of fast growing companies across the Middle East and North Africa, with a strong focus on Turkey, Saudi Arabia, Egypt and the UAE.
The fund is one of several being created by Invest AD to provide global investors with greater access to the Middle East and North Africa. “Turkey has all the positive traits for investment that are found in our region, such as a youthful and growing population, a deep pool of managerial expertise, an economy that is opening up and fast developing capital markets,” explained Nazem Fawwaz Al Kudsi, chief executive officer of Invest AD.
EKOL has a network of 16 warehouses in Turkey and a cross-dock facility in Germany, which are supported by a fleet of 1100 vehicles
8 JANUARY 2010 | www.arabiansupplychain.com
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NEWS UPDATE
Walid Daniel, managing director of SP AN Group
Alex Borg, regio
LT nal director, CI
Guests network during a break at the Bristol Hotel
Geof f Wheatley
from SSI Scha
SNS hails Lebanon logistics seminar a success
Event attracts over 100 delegates from companies such as Agility, Infor, Expeditors and SPAN Group
S
upply Network Solutions (SNS) hosted its inaugural logistics seminar in Lebanon last month, with over 100 attendees from companies such as Agility, Infor, Expeditors, Transmed and the Chartered Institute of Logistics and Transport (CILT). The trade event, which took place at the Bristol Hotel in Beirut, focused on preparing the supply chain for a market recovery, with speakers including Walid Daniel (managing director of SPAN Group), Marouane Rihoum (logistics manager of Chalhoub Group) and Sjoerd Koopman (customer service and distribution manager of Nestlé). “The conference was organised for logistics professionals in the Middle East to share strategies, tactics and ideas on equipping their supply chains for a forthcoming upturn in economic conditions, with 10 JANUARY 2010 | www.arabiansupplychain.com
guests coming from Lebanon, Saudi Arabia, Jordan and the United Arab Emirates,” explained Mario Ghosn, general manager of SNS. “This was a chance for attendees to participate in informal networking and discussions with fellow industry professionals, learn the best practices being applied to enhance supply chain performances and identify investment opportunities that can optimise their operations,” he added. Following the positive response, SNS has already started to plan a follow-up event, which is scheduled to take place in the second half of 2010. “The entire team has been encouraged by the feedback from our first seminar,” ended Ghosn. “Hopefully, we can build on that momentum for next time with an even greater number of speakers and participants.”
efer
NEWS UPDATE Mario Ghosn, general manager of SNS
A live demonstration of Infor’s technology products
100+
Delegates at the conference
fer
attende es from countrie such as s Lebano n, Saud Arabia i and the Arab Em United irates
The team from
SNS, Span Gr
oup and Infor
www.arabiansupplychain.com | JANUARY 2010
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ONLINE HIGHLIGHTS
Still hungry for more news?
The online home of:
for regular updates on the Middle East logistics industry WEBSITE STATISTICS
MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM Aramex CILT (Chartered Institute of Logistics and Transport) DHL Express Gulf Agency Company (GAC)
3PL sector benefits from regulation shifts Although the global recession has created a market downturn for logistics service providers (LSPs), the situation has also produced a range of unique opportunities for the industry, according to a trade report from Frost & Sullivan. The research company’s ‘Global Logistics and Transport Industry Outlook 2009’ was published last month, with suggestions that attempts to stimulate trade with multilateral agreements and policies around the world have allowed LSPs to re-align their business processes for the future. “The current crisis has underscored the need to ease trade policies, reduce tariffs and expand multilateral trade agreements,” explained Prasanna Sriraman, research association at Frost & Sullivan. “In addition, we are seeing better sharing of global trade information, as well as the acceleration of pending business proposals to facilitate trade. This is opening up a wealth of opportunities for the global logistics industry.” While the situation bodes well for the supply chain sector, LSPs are still facing difficulties because their businesses are intertwined with particular industry sectors, stated the report. “As most sectors including automotive, retail and consumer electronics are affected by the recession, so are the LSPs that serve them,” added Sriraman. “As a result, LSPs must start to collaborate among themselves and with their suppliers to create the economies of scale that are needed to survive the ongoing crisis.”
CEVA Logistics MOST POPULAR HEADLINES
1 Dubai starts recruiting for Al Maktoum mega airport
2 Former Dubai Logistics City CEO lands recruitment role
3 Fadi Ghandour estimates
Aramex acquisitions in 2010
4 Midex Airlines announces
US$500 million investment
5 Sharjah furniture warehouse destroyed by large-scale fire
EDITOR’S CHOICES ONLINE INTERVIEW
PHOTO SPECIAL
Boeing’s Billions Jim McNerney, chief executive officer of Boeing, explains how the plane manufacturer has weathered the economic storm with a US$260 billion order book.
JBC Warehouse Launch JBC Express & Freight, a Dubaibased logistics company, hosted a special ceremony to celebrate the launch of its new warehouse in Jebel Ali Free Zone South.
SPOT POLL
What are your views on the recent spate of warehouse fires in the Middle East?
85%
Action is needed to improve safety standards and avoid these warehouse fires
12 JANUARY 2010 | www.arabiansupplychain.com
5%
Such incidents are equally common in other parts of the world
10%
Safety standards are high for Middle East warehouses and these fires are one-offs
LOGISTICS MIDDLE EAST POWER LIST 2010
A COMPREHENSIVE LIST OF THE 25 MOST POWERFUL CEOs OF LOGISTICS COMPANIES IN THE MIDDLE EAST. elcome to the first edition of Logistics Middle East’s Power 25 List – a detailed ranking of the region’s most influential executives from the warehousing and transportation sector. Whether its power, influence or success that has driven their ambitions, our sevenpage special report includes 25 of the Middle East’s most influential figures. Together, these decision makers are representative of an elite community that continues to play an important role in the success and growth of the regional logistics sector. So who is featured in this year’s list? Taking the top spot is Fadi Ghandour, the outspoken founder of Aramex, who provides an exclusive interview to Logistics Middle
W
14 JANUARY 2010 | www.arabiansupplychain.com
East over the next two pages. As you may expect, hot on his heels are a number of wellknown CEOs, each gunning to make their companies the top in the Middle East. You will also find some unexpected names – executives from relative newcomers to the industry, who have proved their mettle in a short period of time and have the potential to climb even higher in future years. And those that appear to prefer a back seat, but continue to hold significant influence in shaping the industry’s future. We should stress that the list is subjective and rankings have been based on events in the past year. We accept that readers will have their own views on almost every position, so our apologies in advance to anyone offended by their appearance (or non-appearance).
LOGISTICS MIDDLE EAST POWER LIST 2010
P
FADI GHANDOUR CEO AND FOUNDER OF ARAMEX
lenty of companies have seen revenue fall in 2009, but there can’t be many that have also seen net profit actually increase year on year. That, however, is exactly what has happened to Aramex, the regional logistics and supply chain giant, in its last three quarters. Over that period, the company has posted net profit of AED134.8 million, representing year-on-year growth of 24%. The secret of the company’s success this year, according to its founder and chief executive officer Fadi Ghandour, is simple. It didn’t fire people.
“At a time when a large percentage of our competitors were laying off people, our morale was very high – we were really very aggressive out in the market,” he states. Astonishingly, Aramex claims that it has not laid off a single person as a result of the economic downturn. In fact, the number of employees has actually gone up and the only people to leave the company are those who did not perform. “We actually guaranteed everybody’s jobs,” says Ghandour, stressing the word ‘guaranteed’ before adding quickly, “Guaranteed. Write that word! We went to our people and said: ‘No-one in this company is going to lose his job because of the current slowdown. You will lose your job
www.arabiansupplychain.com | JANUARY 2010
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LOGISTICS MIDDLE EAST POWER LIST 2010
because you’re not performing, not because of our overall expansion and development,” acquisitions, including the highly-publicised Ghandour explains. “Being next to a takeover in 2006 of Dublin-based Twowaythe slowdown’.” The result, he says, is a motivated, dedicated potential airport that might be delayed is Vanguard and the 2005 purchase of UKworkforce that has gone out and aggressively fine. The services already offered in the city based Priority Airfreight. During the interview, Ghandour confides renegotiated rates with real estate companies, are first class, whether the current airport or that Aramex expects to make further airlines and ocean shipping lines. This has Jebel Ali.” Like all successful companies, s, and acquisit acquisitions in the next six months. driven down costs and underpinned the With the downturn driving increase in net profits, even as revenues fell unlike many of the packagess it com company valuations down to in line with the rest of the industry. “Airlines delivers, Aramex didn’t arrivee m more realistic levels, the CEO and sea line operators were providing us with where it is overnight. Ghandour sa Aramex is actively looking says prices that were just unbelievable,” Ghandour founded the company in Jordan ARAMEX NET PROFIT a three geographies − Africa, at says, grinning. “When there was overcapacity, in the early eighties by offering FOR FIRST THREE local ground transportation Central Asia and South East C we took advantage of it.” QUARTERS OF to internationall Asia As − for potential takeovers It must have also helped, and justified services 2009 targets. targ the decision not to make layoffs, that key logistics fi rms that didn’t have a “You will hear us doing more businesses and geographies held up well presence in the region. Business took off and Aramexx became deals in the coming six months in these this year. “Our business in the Gulf did not go down… Saudi Arabia’s economy did not the first Arab company to list on the Nasdaq, three areas,” he says. An idea recently floated by some analysts really shrink. Dubai got hit in the real estate in 1997. It passed back into private ownership industry, but I’m not dependent on real estate. in 2002 when Rasmala Buyout Fund is that Aramex might be acquired, or seek Our express business, where our highest snapped up the company and it then to be acquired, by an international logistics margins are, had a couple of percentage relisted in 2005 when it floated on the Dubai player. It has broad regional reach and its Financial Market. brand is well-known and respected in the points growth over 2008,” the CEO explains. Over the years, it has grown from a Middle East. Asked whether that might Ghandour is speaking at the courier company that challenged happen, Ghandour quickly replies, “We are cou groundbreaking ceremony for government postal services into not available. Even if somebody wants to n go a new warehouse facility in a one-stop provider of supply [acquire us], they cannot afford us.” Dubai Logistics City. He has THE NUMBER OF chain solutions, including After so much growth, so many changes just taken Sheikh Ahmed bin c REDUNDANCIES AT warehousing and sea, air and and 28 years at the helm of the company, Saeed Al Maktoum, chairman w ARAMEX AS A RESULT freight transportation − what is Ghandour has no thoughts whatsoever of Emirates Group, on a tour of fr OF THE RECESSION known in the industry as a ‘3PL’. of pulling back. Talking to him, it is clear the site and briefed him on thee kn Aramex has achieved that he has thoroughly enjoyed the company’s development plans. A global reach through challenge of overcoming the Aramex is investing an estimated mated 2 an initiative known as the economic downturn. AED120 million to build the h 43,000m 4 i ii i “Why would I want to retire?” warehouse on a 140,000m2 plot of land. The Global Distribution Alliance he says, seemingly surprised site is due for completion in the first quarter (GDA). Led by Aramex, the to be asked the question. of 2011. And while the plans are ambitious, GDA brings together 40 “There is so much more for Ghandour they are a bold statement independent companies to do in this industry, about Aramex’s future intentions and reflect from around the world, giving each company in this company. The his belief in Dubai as a trans-shipment hub. industry as a whole is “85% of our business in Dubai is trans- in the network global so exciting. In crisis, shipment,” he says. “Whenever we do reach through access 12,000 offices, there is nothing better anything here, it’s based on Dubai being to than management. In the a hub. You can warehouse here and serve 33,000 vehicles and past twelve months, the clients in the Gulf; a big chunk of our business 66,000 employees. In recent years, Aramex enjoyment of working in out of Dubai goes to Saudi Arabia. This is a has cemented its global Aramex was supreme because in continuation of that process.” crisis, you find opportunity.” Such is the company’s confidence about the position with a number of future, it has reserved another patch of land at the site to allow future expansion. Also with the future in mind, the warehouse will be built to incorporate all the latest energy saving and water recycling technologies. Aramex is one of the most high-profile investors in Dubai Logistics City, the warehouse component of Dubai’s new airport development, and Ghandour downplays concerns over the project, again emphasising that his company’s investment there is an investment in Dubai itself. “We’re not viewing DLC as an independent entity; it’s part of
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LOGISTICS MIDDLE EAST POWER LIST 2010
ELIAS MONEM CEO OF AGILITY IN THE MIDDLE EAST & AFRICA Elias Monem is the chief executive officer of Agility in the Middle East and Africa, with responsibility for the company’s operations in 18 different countries. A graduate from the American University of Beirut, Monem has almost 19 years of experience in the logistics and freight forwarding industry and has been attributed for expanding the company’s presence in the region and managing a dedicated workforce of over 9000 people. Prior to joining Agility, Monem worked at Airlink International for almost 17 years, which he transformed into a leading freight forwarder and logistics provider in the UAE. During his tenure there, Monem established one of the largest 3PL facilities in Jebel Ali free Zone. In addition, with the transformation of Dubai as the Middle East’s hub for events and conferences, Monem focused on creating a leading logistics provider for regional exhibitions such as IDEX and Dubai Air Show.
HAMDI OSMAN SENIOR VICE PRESIDENT, FEDEX MIDDLE EAST As the senior vice president of FedEx in the Middle East, Africa and Indian subcontinent, the career growth of Hamdi Osman is well-known across the logistics sector. Starting his occupation in 1978, Osman was first hired as a truck cleaner for FedEx, but made such an impression on management that a string of promotions were soon to follow, including positions as a courier (1979), operations manager in New Jersey (1982), senior operations manager (1985) and managing director for the US Northeast District (1990). In September 1991, Hamdi moved to Dubai, taking on the role of managing director for the Middle East and Indian subcontinent, which was upgraded to vice president of operations for the Middle East, Indian subcontinent and Africa in 1997, and later to his current position. With such a multitude of positions, it’s little wonder that Osman’s knowledge of the industry is considered second to none.
BILL HILL GROUP VICE PRESIDENT OF GAC LOGISTICS Appointed as the group vice president for GAC Logistics in July 2002, Bill Hill is based in the company’s head office in Dubai, with responsibility for formulating corporate strategies and driving the international growth of its logistics business. Prior to his current position, the Salford College graduate was GAC Asia’s regional manager, based in Singapore. During his six-year appointment, GAC established an integrated network of 24 offices across Asia, providing end-to-end logistics and supply chain services for some of the world’s largest corporations, including Unilever, Philip Morris, Gillette, 3M and Sara Lee. During his tenure, Hill also led GAC’s successful acquisitions of Benair Freight UK (2005), Benair Freight Malaysia (2001), Z-Freight Philippines, and the Asian companies of Europeanfreight forwarder InterForward Limited (1999).
ENVER MORETTI CEO AND PRESIDENT, DHL GLOBAL FORWARDING IN THE EMA REGION DHL Global Forwarding has continued to develop its presence in the Middle East over the years, with a series of multi-million dollar investments in the region being overlooked by Enver Moretti, the company’s chief executive officer and president in the EMA region. Most recently, this includes a contract to lease storage space at the forthcoming Bahrain Logistics Zone complex, together with the opening of a US$50 million warehousing facility in Jebel Ali Free Zone, both of which are being operated by Danzas, DHL Global Forwarding’s brand in the Middle East. In addition, Moretti, who speaks Italian, English, Arabic and French, visited Dubai in November 2009 to announce the signing of a contract to provide low-cost airline FlyDubai with a range of logistics services.
GARRY KEMP MIDDLE EAST DIRECTOR, DHL EXPRESS DHL Express appointed Garry Kemp as area director for the Middle East, North Africa and Turkey (MENAT) in March last year, with responsibility for 15 different countries, including Saudi Arabia, Oman, Kuwait and the United Arab Emirates. Located at the company’s regional office in Bahrain, Kemp is a New Zealander with a thirty-year career at DHL Express, including positions in general management, operations, sales and commercial. Over the past year, he has overlooked the opening of new facilities in Jebel Ali Free Zone and Jordan, received the ‘best company to work for’ award in Saudi Arabia, and developed the relationship between DHL and Middle East customs authorities with a number of initiatives, including a recent tour of the company’s security operations in Bahrain and the sponsorship of a special achievement award for Dubai Customs.
JINENDRA SANCHETI MANAGING DIRECTOR OF TNT IN MEA REGION Based in Dubai, Jinendra Sancheti is the managing director of TNT in the Middle East and Africa (MEA), with responsibility for 41 countries across the two regions. With a degree in commerce from the University of Delhi, Sancheti started his career at Unilever and moved to TNT in 1990 with a position at the company’s Bahrain office. He was later promoted to regional finance director of both the MEA and Asia regions, followed by a stint as managing director for the Indian subcontinent, overlooking TNT’s express and logistics businesses. In his current role, Sancheti has emerged as one of the most powerful men in Middle East logistics, especially within the express sector, and regularly participates in a number of industry events and forums. He also serves on the board of advisors for the Supply Chain and Logistics Group (SCLG) in Dubai and takes an active role in the Express Industry Council. www.arabiansupplychain.com | JANUARY 2010
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LOGISTICS MIDDLE EAST POWER LIST 2010
HALUK ÜNDEGER UPS DISTRICT MANAGER IN THE MIDDLE EAST A relative newcomer to the regional logistics industry, Haluk Ündeger was appointed the district manager of United Parcel Services (UPS) in the Middle East, Central Asia and Turkey, following the company’s decision to purchase Ünsped, its service agent in Turkey, which was actually founded by Ündeger in 1981. Following this acquisition, the 50-year old was given responsibility for the express package, freight forwarding and logistics services of UPS in 21 different countries, including Saudi Arabia, Bahrain and the UAE. Since this time, the company has boosted its market share in the Middle East by launching a range of express delivery solutions. In particular, its domestic express service was established in countries throughout the region, enabling shippers to consolidate their package delivery services with one carrier to save on time and money.
SYED MUSTAFA VICE PRESIDENT OF LOGISTICS, ALMAJDOUIE GROUP With the logistics sector increasing its focus on the Saudi Arabian market, it makes sense that Syed Mustafa heads the list of entrants from the Kingdom in this year’s power list. As vice president of logistics at the Almajdouie Group, Mustafa has helped to pioneer the concept of outsourced logistics in Saudi Arabia, with major breakthroughs being achieved in recent years. As a result, the growth of Almajdouie’s various logistics operations has outperformed some of the biggest players in the industry, especially with ventures such as Almajdouie Logistics and Distribution (MLD), Almajdouie PSC Heavy Lift Company (MPSC) and Almajdouie Heavylift Transport and Engineering (MHL). As acceptance of outsourced supply chains increases in the Kingdom, Mustafa’s biggest challenge is maintaining Almajdouie’s lead in the wake of competition from newer entrants, such as Wared Logistics and Hala Supply Chain Services. 18 JANUARY 2010 | www.arabiansupplychain.com
SHAMSUDEEN AHMED CEVA LOGISTICS REGIONAL VICE PRESIDENT IN THE MIDDLE EAST An international powerhouse in the supply chain sector, CEVA Logistics has recently allocated a staggering US$800 million to develop its presence in the Middle East region. Playing an influential role in the decision making process for this generous budget is 50-year old Shamsudeen Ahmed, the company’s regional director in the Middle East. Prior to joining CEVA in September 2007, Ahmed had three decades of experience with other leading players from the industry, including the likes of Panalpina World Transport, Schenker AG and Exel Middle East. The Indian graduate, who studied a degree in marine management, is now responsible for a growing network of warehouse facilities throughout the region, including CEVA’s flagship Middle East headquarters, which was opened in the heart of Jebel Ali Free Zone South in October 2009.
WARREN ERFMANN CEO OF BARLOWORLD LOGISTICS IN THE MIDDLE EAST AND ASIA The power structure in Middle East logistics has been altered by a recent influx of mergers and acquisitions, which explains the inclusion of Warren Erfmann in this year’s list. Until a couple of years ago, the executive was a relatively unknown face in the region, but his profile was transformed in 2008, when South Africa’s Barloworld Logistics made its highly-publicised acquisition of Swift Freight, a leading Dubai-based freight forwarder. As CEO of Barloworld Logistics in the Middle East and Asia, it has been Erfmann’s responsibility to ensure that Swift Freight was seamlessly integrated into his operations to provide customers with additional value. Despite taking place in the midst of a global recession, the process was a success and Erfmann has since capitalised on a number of Swift Freight’s strengths, including its lead on cargo routes between the Middle East and Africa.
WERNER KLEYMANN MIDDLE EAST MANAGER OF KUEHNE + NAGEL As a major player in the global logistics industry, Kuehne + Nagel has highlighted the Middle East as a key market for its future development, attracted by the diversification of local economies and liberalisation of trade across the region. To capitalise on this situation, the company’s Middle East director, Werner Kleymann, has been instrumental in launching a long-term expansion strategy, which includes a large-scale warehouse in Dubai Logistics City to compliment Kuehne + Nagel’s existing facility in Jebel Ali. Werner’s vision is likely to pay rich dividends and he remains loyal to DLC, despite a series of project delays. The executive is also keen to capitalise on market growth in Saudi Arabia and finalised a deal for Kuehne + Nagel to become the first global logistics provider to operate a wholly-owned subsidiary in the Kingdom, which will undoubtedly cement the firm’s regional market share in coming years.
TOM NAUWELAERTS HEAD OF AL-FUTTAIM LOGISTICS The head of AlFuttaim Logistics since April 2008, Tom Nauwelaerts has introduced a number of changes to the Dubai-based 3PL company over the past couple of years. In particular, the European veteran has been hailed for his re-structuring of operations in the second half of 2009, with a focus on efficiency maximisation and cost minimisation to overcome challenges from the global recession. Nauwelaerts has a wealth of experience in the trade, including two years as chief executive officer of ALS Freight Management Group in the United Kingdom. Moving forward, he has revealed plans for a threephase expansion of Al-Futtaim Logistics, with the development of warehousing infrastructure in the United Arab Emirates, further investments into the company’s fleet of delivery vehicles, and a potential entry into other countries in the Middle East and throughout the world.
LOGISTICS MIDDLE EAST POWER LIST 2010
RICHARD BELL GENERAL MANAGER OF RHS LOGISTICS With around 18 years of experience in the supply chain sector, Richard Bell was appointed the general manager of RHS Logistics in September 1998, following previous roles at Taylor Barnard Distribution, Hays Distribution Services, NFT Distribution and Inchcape Marketing Services. Over the past decade, the 39-year old executive has developed RHS Logistics into a leading player in the United Arab Emirates logistics industry, with a world-class warehouse in Jebel Ali Free Zone and customers such as Hewlett Packard, Western Digital, Mothercare and Sergeant Major. Despite a market slowdown in the Middle East, Bell is proceeding with an ambitious development strategy for RHS Logistics in 2010, with a number of different options being considered, including an expansion of the existing warehouse in Jebel Ali Free Zone and the potential of constructing a new facility in Dubai Logistics City.
MARTIN ARANHA MANAGING DIRECTOR OF GLOBELINK WEST STAR SHIPPING
JEFF KHOURY MANAGING DIRECTOR OF TOLL GLOBAL FORWARDING IN THE MIDDLE EAST
A limited number of companies have experienced the Middle East logistics industry’s roller coaster of highs and lows in the past 20 years. However, launched in October 1989 – and celebrating its second decade of operations – Globelink West Star Shipping has emerged as a veteran trading house in the region, with plenty of experience in succeeding during the goods times and the bad times. At the helm of this remarkable journey is Martin Aranha, who has seen the company’s annual turnover increase to US$165 million, with a team of 40 employees and a growing network of warehouses in the United Arab Emirates, including Globelink’s latest facility in Jebel Ali Free Zone, opened last year. With such success, he’s also proved his mettle as a solid logistics CEO.
The growth of Toll Global Forwarding (TGF) in the Middle East has increased the influence of regional director Jeff Khoury, who is ranked a little outside of this year’s top 15. Most recently, TGF has benefited from its acquisition of Logistics Distribution Systems (LDS), a Dubai-based 3PL company with a central warehouse facility in Jebel Ali Free Zone. The move has provided an instant boost to TGF’s Middle East operations and follows a similar acquisition of BALtrans, which was re-branded as Toll Global Forwarding across the region last year. Rumours suggest that further acquisitions in the Middle East are a certain possibility in 2010. With such health levels of growth, Khoury has expanded his team over the past year, making particular use of individuals that were made redundant from other logistics companies due to the global recession.
BRIAN MCHALE CHIEF EXECUTIVE OFFICER OF WARED LOGISTICS
KLAUS TINDBORG CEO OF DAMCO IN THE MIDDLE EAST
Brian McHale was appointed the chief executive officer of Wared Logistics in 2009, with a brief to develop the company as Saudi Arabia’s latest and most promising entrant to the global 3PL sector. For McHale, who has previously worked for the likes of Menlo Worldwide Logistics, Ryder Integrated Logistics and NFI Industries, this would be amongst the biggest challenges in his career to date. However, with healthy growth prospects for Saudi Arabia’s logistics industry, supported by US$32 million in initial capital, the scope for Wared Logistics is undeniable and its success will provide a boost to McHale’s power list ranking in future years. Earlier indications of the company’s success in Saudi Arabia are already apparent, with a network of 12 distribution centres established in cities such as Dammam, Medina, Jubail and Qassim, while plans have also been outlined by McHale for 40,000m2 facilities in Riyadh and Jeddah.
The logistics sector has faced a period of inevitable change in the past year, with the A.P. Moller-Maersk Group being amongst the biggest players to evaluate their global operations and adapt to a changing business environment. As a result, the company’s freight forwarding and supply chain divisions – Damco and Maersk Logistics - were merged under the Damco brand throughout the world. For the Middle East, which has been managed by Klaus Dahl Tindborg in Dubai since 2005, the primary objective was ensuring a minimum impact for customers in the region. And thankfully for Tindborg, who has previously served as Damco’s global head of human resources, the merger process was deemed a major success, especially in the UAE, Saudi Arabia, Kuwait and Bahrain, helping to cementhisposition as a prominent force in Middle East logistics.
KHALID AL SHIRAWI EXECUTIVE DIRECTOR OF GLOBAL SHIPPING & LOGISTICS (GSL) Despite a recession, and the obvious impact on supply chains, it seems Global Shipping & Logistics (GSL) has continued to develop at full pace in the last year, under the watchful eye of executive director Khalid Al Shirawi. With over 20 years of experience in the distribution business, Al Shirawi has captured a sizeable share of the temperature-controlled and cold storage market in the UAE, with GSL customers including Baskin-Robbins, Federal Foods and Coldstone Creamery. As a result, the company recently doubled its warehousing space at Dubai Investment Park and completed the certification process in four different categories from the International Standardisation Organisation (ISO). Moving forward, Al Shirawi is now contemplating an entry for GSL into other Middle Eastern countries and will overlook a further expansion at Dubai Investment Park. www.arabiansupplychain.com | JANUARY 2010
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LOGISTICS MIDDLE EAST POWER LIST 2010
WARREN JACOB CEO OF TRANSWORLD A well-known face in the Middle East logistics industry, following his stint as regional director of Freight Systems, Warren Jacob was appointed the chief executive officer of Transworld last year, with responsibility for expanding the Dubai-based company’s presence in the local market. Shortly before his appointment, a US$12.25 million warehouse was opened by Transworld in Jebel Ali Free Zone and Jacob has revealed his intentions to support the facility by developing a portfolio of industry-specific products and services, while encouraging a greater level of interaction with existing customers. Progress has already been made following a strategic partnership with Japan-based Suzue Corporation in October 2009, which resulted in both of the parties representing each other’s freight forwarding and logistics services in their respective operating countries.
GHASSAN ABUGHAZALEH GENERAL MANAGER OF STORALL Since its inception in 2006, Storall has helped to pioneer the concept of self storage in the Middle East, operating from a central facility in the heart of Jebel Ali Industrial Estate. To date, the company has more than 200 self storage rooms, in addition to specialised areas for general and palletised storage. However, plans are being finalised by 45-year old general manager Ghassan Abughazaleh to develop the brand even further in 2010, with the potential of additional branches in key locations across the United Arab Emirates, together with a foray into cargo transportation and cold storage systems. A graduate of business administration from the American University in Cairo (AUC), Abughazaleh has 23 years of executive experience in developing various Middle Eastern firms, including Arab Investment and Development Company, Metico Dubai, Tiba Agricultural Company and Original Kreative Alternatives. 20 JANUARY 2010 | www.arabiansupplychain.com
MAHMOOD SAKHI AL BALUSHI CEO, AL MADINA LOGISTICS SERVICES
MATTHEW DERRICK GENERAL MANAGER, MOMENTUM LOGISTICS
At a time when the global recession has raised alarm bells for the logistics sector in developed markets such as the United States and Europe, it seems Oman has been identified as a hidden gem in the Middle East freight sector, with Business Monitor International (BMI) forecasting an average growth of 4.5% per annum between 2006 and 2010. Such reports are welcome news for 43-year old Mahmood Sakhi Al Balushi, CEO of Al Madina Logistics Services (AMLS) and graduate of St. Edward’s University in Texas, who has grand ambitions to establish a warehousing network throughout the Sultanate, which will measure 275,000m2 in total and host a complete range of supply chain solutions, including storage, transportation and consultancy services. Al Balushi’s multi-million dollar strategy will also be complemented by a fleet expansion, technology overhaul and entry into other Middle East markets over the coming year.
A graduate of business administration from Coventry University in the UK, Matthew Derrick was appointed the general manager of Momentum Logistics soon after the company was launched in October 2008. Selected for his wealth of experience in the supply chain sector, Derrick has previously worked at automobile giants BMW and Rover Group, together with a five-year stint at AlFuttaim Logistics. Under his management, Momentum Logistics has crossed a number of milestones, including the construction of 12 warehouses at Sharjah Inland Container Depot (SICD), while a further 12 warehouses are scheduled for completion in 2010. In addition, the company has levelled a 7 million square foot site in the Al Saja’a district of Sharjah in preparation for itsforthcoming International Logistics City complex.
AMIN AL ARRAYED GENERAL MANAGER OF FIRST BAHRAIN Majaal was launched with much fanfare by First Bahrain in October 2009, with a marketing campaign that claimed it was the first logistics company in the Middle East to focus on the small to medium enterprises (SME) market. The brainchild of First Bahrain’s general manager Amin Al Arrayed, the project will soon open its doors to a US$45 million warehousing complex at Bahrain Investment Wharf, with plans to franchise the brand to other Middle Eastern countries in the coming years. With more than 13 years of experience in the banking sector, Al Arrayed completed his MBA in Business Administration at DePaul University in Chicago and Bachelor’s Degree in Economics at the University of Redlands, California.
MOHAMMED MOHEBI FOUNDER AND CEO OF MOHEBI LOGISTICS With homegrown talent such as Gulf Agency Company (GAC), Aramex and Agility having such a strong foothold in the Middle East logistics industry, it would appear a challenge for newcomers to establish a leading presence in the market. However, it’s a challenge that Dubai’s powerful Mohebi family took with full confidence in 2007, following its Dhs1 billion (US$367 million) investment to launch a third party logistics company, headed by the fiercely ambitious Mohammed Mohebi. Despite being in his 30s, Mohebi had a solid track record prior to his assignment with Mohebi Logistics, having established the group’s travel and tourism arm – Mohebi Aviation – in 1995, which is today one of the top travel agencies in the Middle East. Since its launch, Mohebi Logistics has opened a 50,000m2 warehouse in Jebel Ali Free Zone South, which has attracted 70 multi-national customers, including Nestlé, McDonald’s and Danone.
MIDDLE EAST INFRASTRUCTURE DEVELOPMENT
DEVELOPMENT ZONE Approaching its 10th anniversary this year, Ras Al Khaimah Free Trade Zone (RAKFTZ) is planning to develop its status as a Middle East logistics hub with a major US$2 billion expansion over the next five years, explains chief executive officer Oussama El Omari.
ith billions of dollars being invested to develop the logistics infrastructure in Dubai, Abu Dhabi and Sharjah, it would appear a challenge for other emirates to compete for a lucrative share of the market. However, with an apparent fondness for defeating the odds, Ras Al Khaimah has successfully marketed its RAK Free Trade Zone (RAKFTZ) to a growing community of regional and international businesses over the years, with over
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7000 companies now based at the industrial complex. Even the global recession has failed to make a dent in revenue figures, which increased by 14.5% during the second quarter of 2009, compared to the same period in 2008 – an achievement that RAKFTZ’s chief executive officer Oussama El Omari credits to a flexible business model that easily adapts to market changes. “The slowdown has impacted everyone in some way. We have been fortunate that despite the ongoing economic crunch, our
MIDDLE EAST INFRASTRUCTURE DEVELOPMENT
free zone has continued to attract new busine business and maximise its long-term growt prospects, which shows that we growth y rrentl u c s have the right strategy in place to counter ie n l compa in Ras A the sl slowdown,� he explains. “As for clients, g n ti a r ope de we ha have tried to minimise the impact of Free Tra h a im a Kh AKFTZ) this glo global recession by remaining flexible Zone (R and tryin trying to find creative solutions so they can continu continue with their business.� First established in 2000, RA RAKFTZ is divided into an industrial park, business park, technology technolog park and academy zone for universities and colleges, which are spread across the mountainous northern emirate. A variety of plots are available for those interested in basing their supply chain operations in the free zone, ranging in size from 2500m2 to 500,000m2, with each tenant also benefiting from incentives such as 100% foreign ownership and tax exemption. “As we approach our 10th anniversary in May, the free zone has achieved a lot and truly established itself as a popular destination for logistics activities,� states El Omari with a humble sense of pride. “In particular, the industrial park has increased our logistical strength, as there are several choices available for companies there. However, it’s important to continue this momentum and we are working to increase the efficiencies of companies that conduct their storage and transportation activities in RAKFTZ.� Despite its focus on the future, it was actually RAKFTZ’s past achievements that were honoured at last year’s Supply Chain and Transport Awards (SCATA) in Dubai, where it received the trophy for Industrial Area of the Year. “It was a great honour to be recognised as the best in such a vast pool of resources. Receiving this award showed that our dedication and hard work are paying off. There is vast potential in this market, but there is also tight competition, so highlighting the benefits that make us different from the others is essential,� says El Omari. “For example, we don’t work ‘within the fence’. Instead of operating as a conventional free zone, the government wants RAKFTZ to distinguish itself as an investment agency. This is a new concept for a free zone and we attract customers by offering a very flexible solution.� RAKFTZ’s marketing stance has predominantly focused on the relative cost effectiveness it offers companies wanting to operate in the UAE. The cost of registering a business in the free zone starts from only US$5000, which is a sharp contrast to the rising cost of business in Dubai. Indeed, the price advantage has attracted a great deal of interest from offshore investors, which is something RAKFTZ is determined to develop further in the future. A recent international marketing campaign
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MARKETEAST MIDDLE FOCUS INFRASTRUCTURE DEVELOPMENT
A range of developments are taking place at Ras Al Khaimah Free Trade Zone, including the industrial park’s second phase, a dry dock initiative and an aviation park
us to get out of the crowds that already received a strong have taken place in Dubai.” response at industry events, “We are sold Trying to attract business especially from the United out, demand from Dubai, RAKFTZ made States, Germany, South Africa, is exceeding its presence felt in the emirate Lebanon, Syria and Pakistan. hat we have what last year. Targeting logistics, “By establishing ourselves as construction and IT exhibitions, a centre of efficient and high available” the free zone’s stand was a quality logistics services, we strong attraction to attendees can attract even more foreign at SITL Dubai, GITEX Technology Week and investment,” says El Omari. “We are the Big 5 show. It also used these events as already working with many companies, a platform to launch an exclusive start-up such as international freight forwarders, package of $5000 for companies wishing to make this happen.” to establish a base at RAKFTZ; this was At present, the vast majority of logistics inclusive of registration fees, commercial service providers are based in RAKFTZ’s industrial park. The largest of the four parks, license, visas, membership fee of the RAK Chamber of Commerce, Industry and it is situated 15km north of the city centre Agriculture and the office annual rent. and covers around 6 million square metres, As RAKFTZ continues its expansion offering direct access to Saqr Port; the plans, which have been valued at a first port available when entering the gulf. staggering US$2 billion the next five years, This gives tenants the option of building El Omari’s only concern is that demand will their own docking facilities for shipments continue to exceed the development. “We to be unloaded directly at their facility. In are sold out. Demand is exceeding what addition, the opening of a road from the we have available, so we just have to rush free zone to Dubai has become a major quickly and establish more infrastructure, selling point. The Emirates Highway has more warehouses, and more business almost halved commuting time as it now, friendly incentives,” he says. dependant on traffic, takes just 45 minutes “Our developments include the second drive to reach Dubai. phase of our industrial park, in addition The proximity to Dubai, the logistics hub to container port and dry dock initiatives. of the Middle East, has been perceived as a Another project that will cement our blessing not a curse by El Omari. As plans position in the logistics industry is a for Dubai Logistics City evolve, RAKFTZ forthcoming Aviation and MRO Park. The strongly believes business is on such a large Middle East is projected, post recession, to scale that everybody is set to capitalise. remain one of the fastest growing regions “We don’t have any competition, we in the world for both passenger revenue compliment each another. There is so much and cargo traffic. Therefore, a significant business out here that everybody has a big business opportunity exists to competitively stake, you can do so many things,” enthuses satisfy this market, especially since Ras El Omari. “We are expecting a lot of Al Khaimah has such a good airport.” companies to establish themselves with 24 JANUARY 2010 | www.arabiansupplychain.com
PROFILE: RAK FREE TRADE ZONE RAKFTZ business incentives: 100% tax exemption, 100% foreign ownership, residence visas, competitive labour, office and warehouse rates. RAKFTZ Industrial Park: Caters to heavy industries sector, distribution companies and logistics providers with a variety of warehouse facilities. RAKFTZ Business Park: Caters to the service sector and general trading with a world trade and business innovation centre and range of business centre services and offices. RAKFTZ Academy Zone: Caters to the education sector with seven universities from countries such as France, UK and India. RAKFTZ Technology Park: Caters to the light industries and automated manufacturing projects with a combination of warehouses and office space. Transportation links: Saqr port (the first port when entering the Gulf), RAK airport, dual carriage way links to Northern Emirates such as Khatt, Fujairah and Dhaid. Emirates Highway links to Dubai, Sharjah, Ajman, Umm Al Qawain and Ras Al Khaimah. Companies currently operating in RAKFTZ: Straight Line Cargo Services, Dux Logistics & Marine, Eagle Maritime, Sea Crest Marine. Forthcoming RAKFTZ developments: Container port and dry dock initiative, aviation and MRO (maintenance, repair and overhaul) park, navigator business campus.
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S PA N - G r o u p i s t h e l e a d i n g p r o v i d e r o f t o ta l s u p p l y c h a i n s o l u t i o n s f o r c o m pa n i e s o p e r a t i n g i n t h e Middle East since 1989. Headquartered in Dubai, with regional offices in Abu Dhabi, Beirut and D o h a , t h e g r o u p s t r i v e s t o p r o v i d e t h e b e s t - o f - b r e e d s o l u t i o n s t h r o u g h i ts F a c i l i t y E n g i n e e r i n g & D e s i g n , Wa r e h o u s e St o r a g e S o l u t i o n s , S u p p l y C h a i n I T & I n t e g r a t i o n S y s t e m s a n d I n d u s t r i a l & Office Furnishing Solutions. Dubai, United Arab Emirates - Showroom #4, Al-Naboodah Complex, Nad Al Hamar Rd, Ramool, P.O. Box 55397, Dubai, U.A.E Tel: (+971) 4 289 5111 - Fax: (+971) 4 289 5110 - Email: inquiry@span-group.com - website: www.span-group.com
ASK THE EXPERT
BEST OF BOTH WORLDS QUESTION: What are the benefits of sea-air transportation for companies in the Middle East? THE INCREASING POPULARITY OF SEA-AIR TRANSPORTATION
THE CORE STRENGTHS OF DUBAI AS A HUB FOR SEA-AIR TRANSPORT
PRIMARY FACTORS LEADING TO A BRIGHT FUTURE FOR SEA-AIR
The sea-air concept is basically a mixture of two different transportation modes – the cargo is initially transported by seafreight and later by airfreight, which offers a drastic saving in transit time compared to pure seafreight, as well as a maximum cost saving of 50% in comparison to pure airfreight. It’s the best of both worlds and Dubai has actually emerged as one of the world’s leading hubs for sea-air transportation.
As a hub for this type of transportation, Dubai has several advantages, especially as Jebel Ali is one of the most efficient seaports in the world. It is served by most of the major shipping lines, predominantly from the Far East, with very short transit times from Hong Kong, mainland China, Indian subcontinent and South East Asia. In addition, Dubai’s customs formalities are relatively simple, which means seamless transport connections to ensure cargo can be custom-cleared from the seaport and delivered to airlines within five or six hours.
The future remains overwhelmingly positive. Regional airlines such as Emirates and Etihad, which operate at the major Middle Eastern airports, are offering a high flight frequency and growing airfreight capacity. Also, looking at the developments currently underway in the region, this trend continues to remain positive. The new airport currently being constructed in Jebel Ali, as part of the forthcoming Dubai World Central development, is a truly integrated logistics platform that will further boost Dubai’s position in the sea-air marketplace. It will feature over 16 cargo terminals, some of which are exclusively dedicated to sea-air transportation, with an emphasis on single handling. This means the freight forwarder will be allowed to build their own pallets and deliver them directly to the airlines.
ADAPTING TO CHANGE FROM THE CURRENT GLOBAL RECESSION I believe that sea-air transportation plays a very important role for the Middle East logistics industry, which is highlighted by the fact that Dubai is currently amongst the top seven leading sea-air transport hubs in the world. In fact, the global recession has provided a further boost to this method of shipping cargo and as a result, the emirate’s seaair capacity has developed in leaps and bounds recently - it’s now considered the most viable and efficient transit point on the important North Pacific trade route.
This month’s column was written by Sumesh Nair, GM of Globelink West Star Shipping Middle East.
26 JANUARY 2010 | www.arabiansupplychain.com
ADDITIONAL SUPPORT FROM THE LOCAL AIRPORT INFRASTRUCTURE Dubai’s airport is also very efficient, which is another bonus. The service providing company, Dnata, has further augmented this form of transportation by dedicating seven docks to receiving sea-air cargo. In addition, the airport is well connected, offering a choice of more than 100 export destinations on a weekly basis. It’s quite right to credit Emirates Airlines in this respect, because it has played a vital role in the development of sea-air cargo, with its constantly growing fleet and plenitude of direct services to Europe, Africa and more recently to the United States.
OTHER PIONEERS IN THE REGION The airport in Sharjah has also played an increasingly vital role in augmenting the movement of sea-air cargo through the Middle East region. Many airlines offer direct scheduled freight capacities from Sharjah International Airport to Europe. Sharjah is also one of the leading sea-air hubs in Asia and has shown a growth rate of over 50% in the past couple of years.
DEVELOPING THE MIDDLE EAST’S MARKET SHARE IN THE FUTURE Looking at the future, I believe the Middle East definitely has the potential to compete with other parts of the world for a lucrative share of the sea-air market. A number of countries in this region have emerged as very strong contenders in the international logistics industry and their positions have continued to strengthen on a regular basis. For example, the transport infrastructure in the United Arab Emirates, Saudi Arabia and Bahrain are increasingly efficient and welldeveloped, matching world-class standards. This is a major bonus for companies in the logistics industry, especially when you take into account the corresponding advantages in speed and cost. It also directly impacts the movement of sea-air cargo out of the region, with a particular emphasis on emirates such as Dubai and Sharjah.
INDUSTRY STATISTICS
FACTS & FIGURES Air Cargo Regional & International Statistics
Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month, Logistics Middle East provides its readers with three pages of the latest information from a variety of trusted sources, including Emirates SkyCargo, Airports Council International (ACI) and Saudi Ports Authority. EMIRATES SKYCARGO FUEL PRICE INDEX
DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS
400
200,000
23 October
387 4 December
13 November
380
378
380
150,000
27 November
373
100,000
360
50,000
FUEL PRICE INDEX The fuel index is based on the average price of aviation fuel in five key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast). Sept 09
Aug 09
July 09
June 09
May 09
April 09
Mar 09
Oct 08
Feb 09
0
INDEX 100 = 53.5 US cents per US gallon
Jan 09
341
Dec 08
9 October
Nov 08
340
11 Dec 09
04 Dec 09
27 Nov 09
20 Nov 09
13 Nov 09
06 Nov 09
30 Oct 09
23 Oct 09
16 Oct 09
09 Oct 09
02 Oct 09
320
MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY
SEPTEMBER 2009/2008 Cargo (tonnes)
% CHG
MONTHLY AIR CARGO REPORT: AFRICA REGION*
YEAR-TO-DATE 2009/2008 Cargo (tonnes)
CARGO STATISTICS This graph represents the cargo volumes handled at Dubai International Airport over a 12-month period. Cargo figures, as provided by Airports Council International (ACI), are measured as loaded and unloaded freight and mail.
% CHG
AIRPORT/COUNTRY
SEPTEMBER 2009/2008
YEAR-TO-DATE 2009/2008
Cargo (tonnes)
% CHG
Cargo (tonnes)
% CHG
Amsterdam (Netherlands)
111,981
-14.4
935,235
-23.0
Accra (Ghana)
3727
-19.4
34,931
-9.9
Brussels (Belgium)
35,198
-22.3
332,420
-31.4
Addis Ababa (Ethiopia)
2026
n/a
28,426
n/a
Cologne (Germany)
49,724
-0.3
402,039
-7.7
Algiers (Algeria)
1267
-35.9
16,509
-5.1
Frankfurt (Germany)
164,463
-6.4
1,332,823
-17.0
Antananarivo (Madagascar)
850
-39.2
8474
-30.3
Istanbul (Turkey)
33,386
2.2
263,528
-3.3
Cairo (Egypt)
20,721
-2.9
210,267
0.5
Leipzig (Germany)
46,425
16.1
358,011
16.6
Casablanca (Morocco)
3808
-16.9
41,328
-6.7
Liege (Belgium)
39,333
8.0
326,222
-16.9
Dar Es Salaam (Tanzania)
1587
-15.9
14,034
-21.2
London Heathrow (UK)
115,670
-6.9
963,889
-14.2
Durban (S. Africa)
84
-43.6
1378
3.5
Luxembourg (Luxembourg)
51,570
-19.4
446,503
-25.0
Entebbe (Uganda)
4244
-12.5
39,521
-12.4
Paris (France)
151,350
-7.2
1,321,450
-14.1
Johannesburg (S. Africa)
19,637
-22.7
177,792
-25.8
Vienna (Austria)
17,401
-2.9
136,065
-9.5
Libreville (Gabon)
1329
-21.8
15,144
-9.7
Warsaw (Poland)
4635
0.2
35,976
-12.6
Nairobi (Kenya)
22,234
-20.3
196,570
-13.4
22,679
-11.0
205,389
-12.1
Tunis (Tunisia)
1310
-34.4
13,482
-15.1
Zurich (Switzerland)
*Monthly cargo statistics for international airports, with data provided by Airports Council International (ACI). Cargo is defined as loaded and unloaded freight and mail (in tonnes).
28 JANUARY 2010 | www.arabiansupplychain.com
INDUSTRY STATISTICS
MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION* AIRPORT/COUNTRY
SEPTEMBER 2009/2008
YEAR-TO-DATE 2009/2008
MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION* AIRPORT/COUNTRY
Cargo (tonnes)
% CHG
Cargo (tonnes)
% CHG
32,470
3.2
275,942
2.4
Ahmedabad (India)
446
-9.9
2246
33.6
Amman (Jordan)
6188
-16.9
60,675
Beirut (Lebanon)
5884
-11.2
53,090
168,335
2.7
Fujairah (UAE)
3398
Kuwait (Kuwait)
17,883
Muscat (Oman)
5650
Abu Dhabi (UAE) Al Ain (UAE)
Dubai (UAE)
Ras Al Khaimah (UAE) Sharjah (UAE)
YEAR-TO-DATE 2009/2008
% CHG
Cargo (tonnes)
% CHG
1907
-16.6
15,882
-15.9
Bangalore (India)
14,024
3.4
117,557
-8.5
-9.4
Bangkok (Thailand)
94,374
-5.4
736,642
-20.9
6.8
Chengdu (China)
40,812
34.2
269,205
-6.6
1,366,881
0.4
Colombo (Sri Lanka)
10,936
-11.6
98,395
-18.4
14.2
27,252
-6.5
Fukuoka (Japan)
23,612
5.3
178,965
-12.4
16.0
148,344
8.9
Hong Kong (China)
307,032
-4.2
2,376,563
-14.9
11.6
45,446
2.6
Jakarta (Indonesia)
30,199
-34.4
306,261
-15.5
497
n/a
3397
-48.4
Kuala Lumpur (Malaysia)
53,578
-2.0
432,353
-17.1
35,710
-3.9
303,386
13.7
Manila (Philippines)
33,283
10.8
245,100
-9.6
Mumbai (India)
48,014
0.2
413,916
-3.5 -35.7
Osaka (Japan)
57,418
-22.0
426,181
YEAR-TO-DATE 2009/2008
Seoul (Korea)
13,618
10.7
108,440
19.5
Shanghai (China)
248,265
7.7
1,746,103
-11.8
*
MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA AIRPORT/COUNTRY
SEPTEMBER 2009/2008 Cargo (tonnes)
SEPTEMBER 2009/2008 Cargo (tonnes)
% CHG
Cargo (tonnes)
% CHG
Anchorage (USA)
182,887
-6.1
1,341,645
-25.9
Singapore (Singapore)
142,934
-12.4
1,196,965
-17.4
Buenos Aires (Argentina)
14,498
-7.3
106,741
-30.3
Taipei (Taiwan)
129,403
6.4
927,029
-21.5
Chicago (USA)
105,173
-6.3
802,650
-22.4
Tokyo (Japan)
174,686
-2.1
1,303,333
-19.6
Los Angeles (USA)
132,138
2.1
1,068,158
-14.8
Memphis (USA)
318,100
7.1
2,693,582
-2.0
Mexico City (Mexico)
26,187
-11.7
229,159
-21.5
*Monthly cargo statistics for international airports, with data provided by global trade association Airports Council International (ACI). Cargo is defined as loaded and unloaded freight and mail (in tonnes).
For up-to-date figures, visit:
The Home of Business Ras Al Khaimah Free Trade Zone
RAK Free Trade Zone offers a range of unique business solutions for investors, including Offshore and Onshore set-up options and Promotion and Liaison Offices in the UAE, India, Turkey, Germany, USA and China. Free zone investors can avail themselves of key advantages and benefits, such as 100 per cent foreign ownership, a tax-free environment, transparent laws and 100 per cent capital and profit repatriation. RAK FTZ is one of the fastest-growing free trade zones in the region, with approximately 4,000 companies from 106 countries around the globe.
FOR MORE INFORMATION
Toll Free (UAE) 800-RAKFZ (72539)
Tel +971 7 2041111
Email inquiry@rakftz.com
Website www.rakftz.com
www.arabiansupplychain.com | JANUARY 2010
29
INDUSTRY STATISTICS
FACTS & FIGURES Sea Freight Regional & International Statistics Our sea freight data includes information on bunker fuel prices at major port facilities in the Middle East, North and South Europe, North and South America, and Asia. More specific cargo statistics are also provided from the Saudi Ports Authority, covering the major ports in the Kingdom.
FUJAIRAH BUNKER FUEL PRICE INDEX 500 12 Dec
466
12 Aug
447.5 *
492
503
640
649
Cape Town (South Africa)
n/a
515
642
n/a
Fujairah (UAE)
449
460
630
n/a
Houston (USA)
434
446
n/a
600
Istanbul (Turkey)
467
480
n/a
645
New Orleans (USA)
451
462
n/a
619
Piraeus (Greece)
447
461
593
n/a n/a
Port Klang (Malaysia)
460
463
630
Rio de Janeiro (Brazil)
453
471.5
646
n/a
426.5
444
592
560
451
461
594
n/a
Rotterdam (Netherlands) Singapore (Singapore)
*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 12th December 2009. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).
TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES 15 million
350
12 Mar
244
275
200
Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority CARGO TYPE
Loaded
Discharged
Loaded
629,630
16,503,144
5,827,770
Bulk cargo (liquid)*
397,432
4,936,244
4,383,611
48,546,557
General cargo
421,296
73,288
4,338,131
682,261
2,221,757
1,637,462
21,424,354
14,222,068
Ro-Ro and vehicles
132,960
13,471
1,252,517
162,171
Livestock
14,004
n/a
122,321
n/a
4,984,199
7,290,095
48,024,078
69,440,827
TOTAL
6 million
TOTAL PORT THROUGHPUT
CONTAINERS (TEU)
3 million
30 JANUARY 2010 | www.arabiansupplychain.com
Oct 09
Sept 09
Aug 09
July 09
June 09
May 09
April 09
Mar 09
Feb 09
Jan 09
0
YEAR-TO-DATE
1,796,750
Containers (in tonnes)
9 million
OCTOBER 2009 Discharged
Bulk cargo (solid)
12 million
12 Dec 09
Busan (South Korea)
12 Nov 09
705
12 Oct 09
673
12 Sept 09
484
12 Aug 09
464
444.5
407.5
12 July 09
Buenos Aires (Argentina)
12 Oct
12 Jun
425
12 Jun 09
MDO
12 May 09
MGO
12 Apr 09
IFO180
12 Mar 09
IFO380
12 Feb 09
BUNKER FUEL PRICE INDEX PORT / COUNTRY
12,274,294
117,464,905
2009
2008
October
Year-to-Date
October
Year-to-Date
Discharged
195,763
1,858,959
209,126
1,974,070
Loaded
195,092
1,801,979
187,909
1,878,105
TOTAL
390,855
3,660,938
397,035
3,852,175
Source: Saudi Ports Authority (SPA). The statistics cover all major Saudi Arabian ports (dead weight in tonnes). *Bulk cargo (liquid) excluding crude oil.
01 1 02 2 03 04 05 EVENTS CALENDAR 06 07 0809 10 11 12 13 14 15 16 17 18 19 20 21 2 23 2 23 24 2 25 2627282930 2 2627 EVENTS
A listing of trade shows, conferences and seminars relating to the Middle East logistics industry
24th – 27th January 2010 DEFENCE LOGISTICS MIDDLE EAST
8th – 9th February 2010 GLOBAL LOGISTICS FORUM
21st – 22nd February 2010 ACHIEVING LOGISTICS EXCELLENCE
The third annual Defence Logistics Middle East conference is being held in Abu Dhabi this month, with topical discussions on a range of military supply chain issues, from the continued transformation of inventory management to planning improvements for the delivery of emergency shipments. Guest speakers at the three-day seminar will include senior representatives from the likes of Agility Defence and Government Services, PRTM Management Consultants and the European Supply Chain Council. VENUE: Armed Forces Officers Club, Abu Dhabi EMAIL: enquiry@iqpc.ae WEBSITE: www.deflogme.com
The first Global Logistics Forum is part of a strategic partnership between Abu Dhabi University and the TU Berlin Chair of Logistics, representing the first step in developing a long-term, high quality programme of courses, conferences and knowledge transfer in the field of supply chain logistics. The forum aims to provide a unique forum for local and international policy makers, supply chain managers and logistics executives to understand the latest issues in the Middle East. VENUE: Fairmont Bab Al Bahr, Abu Dhabi EMAIL: james.graham@aimevents.net WEBSITE: www.globallogisticsforum.com
Kavaaq has invited decision makers from the Middle East logistics industry to attend its forthcoming seminar in Dubai, titled ‘Achieving Logistics and Supply Chain Excellence’, which has been organised as a platform to discuss the global recession’s continued impact on local operations. Guest speakers include Alex Borg from the Chartered Institute of Logistics and Transport (CILT), Arun Kumar from Global Shipping & Logistics (GSL) and Fredrik Lindblad from Aramex. VENUE: Metropolitan Palace Hotel, Dubai EMAIL: faizan@kavaq.com WEBSITE: www.kavaq.com
8th – 10th March 2010 WORLD OF PERISHABLES 2010
9th – 11th March 2010 COMMERCIAL VEHICLES MIDDLE EAST
12th – 14th March 2010 KUWAIT LOGISTICS CONFERENCE
The growing popularity of fresh goods in the Middle East, fuelled by a significant increase in the regional population, has created a number of logistical challenges. Covering the entire supply chain - from the farming process to storage and distribution to retail operations - the World of Perishables 2010 exhibition is being held at Dubai Airport Expo for trade professionals that specialise in activities such as importing, exporting, warehousing and transportation. VENUE: Airport Expo, Dubai EMAIL: sabina.grosskreuz@messe-essen.de WEBSITE: www.wop-dubai.com
With a growing amount of cargo being transported by road in the Middle East, the forthcoming Commercial Vehicles Middle East exhibition has been marketed as the region’s only specialist show for all types of commercial vehicles, parts and services. The three-day event, which is aimed at transport, fleet and logistics managers, will be complimented by a number of trade seminars, technical workshops and a largescale display area to view the latest models available in the local market. VENUE: Dubai Convention and Exhibition Centre MAIL: tommy@smg-online.com WEBSITE: www.commvehicles.com
Kuwait is exploring a number of options to sustain its future economic growth, particularly in the aftermath of a crippling global recession. To highlight the important role of the supply chain sector in achieving these goals, the first Kuwait Logistics Conference is taking place in March 2010, with topics such as reverse logistics, RFID technology and strategic partnerships being discussed by regional experts, including Professor Philbert Suresh from i_FUN (Intelligent Friends in University Network). VENUE: Hilton Hotel, Kuwait EMAIL: deabas@gmail.com WEBSITE: www.gust.edu.kw/glf
10th – 12th October 2010 TRANSOMAN N
23rd – 24th November 2010 TRANS MIDDLE EAST
TransOman, sO the Sultanate’s leading trade event fo for transportation, shipping and logistics companies, will provide a three-day fforum ffor local industry professionals to the latest issues that are effecting d discuss domestic market’s development. In tthe dom addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities that are expected to arise in the local sector. VENUE: Oman International Exhibition Centre EMAIL: ebrahim@oite.com WEBSITE: www.oite.com/transoman
The historical maritime city of Alexandria in Egypt has been selected as the host city for this year’s Trans Middle East exhibition and conference. The event is expected to attract around 70 exhibitors from around the world, while a supporting conference has a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA), who will discuss the latest trends in logistics, shipping and container ports. VENUE: Hilton Alexandria, Egypt EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com
12th May 2010 GLOBAL LOGISTICS & SCM SUMMIT
200+
deleg a fore tes are SCLG cast for ’s an summ nual it
The Supply Chain and Logistics Group (SCLG) ost has announced plans to host its third Global Logistics and Supply Chain Management Summit in Mayy 2010. The Dubai-based trade association is hoping to break its record from last year’s summit, which attracted more than 200 delegates from various Middle Eastern countries, in addition to Singapore, India and the UK. VENUE: Dubai, United Arab Emirates EMAIL: admin@sclgme.org WEBSITE: www.sclgme.org
www.arabiansupplychain.com | JANUARY 2010
31
FACE TO FACE INTERVIEW
ON THE RIGHT COURSE Professor Umit Bititci from the University of Strathclyde explains why the institute is bringing its masters programme in logistics to the Middle East. What prompted the University of Strathclyde to launch its postgraduate logistics course in the Middle East? To support the growth of this region as a major distribution hub, there is a strong requirement for knowledge and skills in supply chain and logistics management as a whole, in addition to specific skills in operations management for airports and seaports. This is recognised by the local authorities, who convinced our team that a practically focused programme such as ours would attract a suitable number of quality candidates from the industry. Why have you decided to base the programme in Abu Dhabi? A number of factors led to this decision, including the quality of facilities available, proximity to our existing MBA operations, accessibility to candidates and Abu Dhabi’s economy stability.
Will the course modules remain the same as your programme in Scotland? The structure of the programme will essentially remain the same, although the delivery of content will change to suit the needs of individual cohorts. We believe that each student is an individual and they have individual objectives and learning needs. As the programme is delivered in the style of an executive education programme, there is a lot of room for customised discussion in the class, as well as with individual students out of the class. We also believe that our approach to assignments allows students to customise the content of each module to suit their “Students in the specific needs and interests.
Middle East will truly benefit from direct ect engagement with th our Glasgow team”
With a growing number of logistics courses in the region, what makes the University of Strathclyde different? We are aware of the competition, but our programme is different in a number of ways. Firstly, the course has been fully accredited by the UAE authorities. Secondly, Strathclyde Business School is one of the world’s leading institutes with a reputation for practically focused programmes that are aimed at practicing managers. This means our students will add value to their employees from day one. We have many examples of student assignments that have achieved considerable benefits for their companies. One such assignment resulted in a saving of over US$1.5 million in 2006. Thirdly, our programme is fully accredited by the Chartered Institute for Purchasing and Supply (CIPS), which is the professional organisation for supply chain managers. 32 JANUARY 2010 | www.arabiansupplychain.com
Will you have a local team to teach the programme? We are using the existing team from Glasgow to deliver the programme, with support from local employees. The Glasgow team are experts in their field and involved with research programmes across the world. Our studies have implied that students in the Middle East will truly benefit from direct engagement with global experts.
What type of students is the university expecting to attract with this course? We are looking for professionals that work in the supply chain of their organisation, for example a management position in operations, planning, procurement or logistics. Having said that, we have also attracted students from engineering, marketing and finance functions, as they felt a solid understanding of how the entire supply chain operates would allow them to perform their jobs better. We are hoping to attract people from a variety of different industries too, including the commercial, industrial, public and military sectors.
Do you plan to develop your logistics courses in the future for the Middle East? Yes, this is definitely something on our future agenda. As the programme starts taking roots and we get talking to students and their companies, we will get valuable feedback which will influence how the course should shape from here. It is highly conceivable that the UAE programme will change and shape in a different direction to the programme in Scotland, depending on the specific feedback of students that are attracted to these programmes. In general, what are your views on recent developments in Middle East logistics? Until the recent global economic crisis, the Middle East was seen as offering more growth potential for logistics and transport than either North or South America. The phenomenal growth of global trade has provided the Middle East with opportunities to capitalise on its strategic geographic location and excellent accessibility by air, land and sea. We are aware that things have slowed down significantly in the past year, but we see this as a temporary problem possibly lasting until the end of 2010. With some European and the US economies now showing signs of recovery, we believe that the rate of trade between Asia and Europe will continue to grow, therefore increasing the need for quality supply chain executives in the region.