Logistics Middle East - June 2010 by ITP Business Publishing

An ITP Business Publication Licensed by Dubai Media City

READY FOR LIFT OFF What to expect from the launch of cargo operations at Dubai World Central

IN THE FAST LANE JUNE 2010 ISSUE 69

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

Can the express logistics market return to former ggloryy in the coming year?

SCATA

SUCCESS Fathi H. Buhazza, president and CEO of Maximus Air Cargo

Winners revealed at the Middle East’s ultimate celebration of logistics excellence

CONSOLIDATED SHIPPING SERVICES І RSA LOGISTICS І SCLG І CHARTERHOUSE PARTNERSHIP

Land, Sea or Air, we carry your Cargo with Utmost Care

Two Decades of Safe Opera ons with Petroleum Development Oman Established for more than 25years, Middle East Shipping & Transport Company, a part of the Suhail Bahwan Group, is a Total Transporta on Systems Company oﬀering the full range of logis cs services. MEST is a leading project management company providing complete onshore and oﬀshore services to leading interna onal contractors for cargo of all sizes and volumes.

MEST has provided local logis cs & interna onal forwarding to all duty free projects in the Sohar Industrial Port area.

Clearing & Forwarding and

MEST has successfully completed the OMAN LNG(2Trains) and Qalhat LNG projects and various others in the ﬁelds of Oilﬁeld, Chemical & Pipelines up to 700 kms.

Project Cargo Management

With unrivalled exper se in As a major logis c support provider in documenta on, clearing and the Sultanate, MEST has moved several forwarding in Oman & UAE, Global million freight tons through the Omani Freight Forwarding and land transport ports for various projects in the last few opera ons throughout the GCC, MEST’s large and versa le ﬂeet years. includes specialized vehicles for heavy and over dimensional cargo.

Middle East Shipping & Transpor ng Co. LLC P.O. Box 169, Muscat - 100. Sultanate of Oman Tel.: +968 24790024 Fax.: +968 24786429 Email: mestgmst@omantel.net.om

Customs Documenta on Road Transport (Land-side Transport)

Heavy Li & ODC Cargo Movement Freight Forwarding (Air & Sea) Dedicated Safety Team Warehousing & Distribu on Excellent Track Record

CONTENTS

CONTENTS Issue 69 June 2010 For the latest news and stories go to

38 02 Editor’s Letter

16 ArabianSupplyChain.com

32 Country Profile: Oman

Summer cheer within the logistics industry as the Supply Chain and Transport Awards (SCATA) return to celebrate excellence.

Highlights of the month from the official website of Logistics Middle East magazine.

With deep-rooted traditions in trade, Oman emerges as a modern-day logistics leader.

18 Interview: CSS Group

38 Event Report: SCATA 2010

Readers of Logistics Middle East provide their views on the industry’s hottest topics.

Celebrating its15th anniversary of operations this year, CSS has emerged unscathed from recent turmoil within the logistics industry.

Detailed coverage from the recent Supply Chain and Transport Awards in Dubai.

07 News Update

22 Express Logistics

• Local free zones report strong Q1 growth • Emirates forms security alliance with DHL • GAC signs cargo deal with Jazeera Airways • Dubai Trade reveals partnership with CILT • Aramex hosts leaders conference in Dubai • Jafza inferno damages MFC warehouse • P&G signs Dubai logistics deal with CEVA • Abu Dhabi hosts first ‘Linde Challenge’ • SCLG summit attracts record attendance

Datamonitor provides an overview of the UAE express logistics sector, while some of the major players provide their input. Can the sector expect a return to ‘boom’ times?

04 Readers Letters

28 Update: Dubai World Central Dubai World Central reaches a milestone with the start of freight operations this month, explains Andrew Walsh, cargo vice president.

56 Ask The Expert Claire Blakeborough from Charterhouse Partnership provides recruitment advice.

62 Events Calendar A listing of seminars, conferences and trade shows for the Middle East logistics industry.

64 Face To Face Interview A year after starting operations, Kirit Mehta from RSA Logistics focuses on future growth.

28 64

www.arabiansupplychain.com | June 2010

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 Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Commercial Director Fareed Dubery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 210 8597 email: robeel.haq@itp.com Editor Casey McFann Tel: +971 4 210 8598 email: casey.mcfann@itp.com Contributors Nadia Khan, Ed Attwood, Sarah Cowell

Summer cheer within the logistics industry

s the peak of summer fast approaches, the economy, like the weather, continues to heat up. As first quarter results have now come in, most companies find themselves in far better shape than this time last year. In what could be taken as a direct indicator to the warming economic climate, one must look no further than the UAE’s free zones, which have experienced growth in tenancy as well as contract renewals. With an optimistic outlook on the remainder of 2010, the logistics community seems to be in agreement that the worst has come and gone. So as we wrap up the first half of this year, let’s take a look at what’s in store for this month’s jam-packed issue. Building upon the success of previous years, the 2010 SCATAs went off without a hitch. A premiere gala for the logistics community, the event allowed those within the industry to ‘loosen their ties’ and celebrate the respective successes of their companies. This month’s coverage features many of the winners, including Fathi Buhazza of Maximus Air Cargo, this year’s recipient of the Hall of Fame Award. I would like to congratulate all of the 2010 winners, including Mr. Buhazza, and wish them continued success for years to come.

One of the perks of being the editor of Logistics Middle East, is being afforded the opportunity to sit down with decision makers and key industry insiders to discuss their current dealings, as well as viewpoints of the market. This month, I had a chance to catch up with TS Kaladharan, chairman of Consolidated Shipping Services. Sitting in his state-of-the-art office, over cups of espresso, Kaladharan was eager to shed some insight into what can be expected in the year to come, as well as discuss changes he would like to see within the freight forwarding sector. You’ll be surprised at his proposals. Since we are always on the lookout for up-and-comers, we also have a country report on Oman, highlighting ten leading companies to look out for in the future. As the Sultanate’s enviable location remains logistically enviable, is it finally waking up to its full potential? We hope you’ll enjoy this month’s issue of Logistics Middle East, and look forward to seeing you again next month. Until then, try and stay out of the sun. If you have any comments to make on this month’s issue, please email Casey McFann, editor of Logistics Middle East magazine (casey.mcfann@itp.com)

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ADVERTISING Commercial Director Fareed Dubery Tel: +971 4 210 8381 email: fareed.dubery@itp.com Sales Manager Jayant Dey Tel: +971 4 210 8246 email: jayant.dey@itp.com STUDIO Group Art Editor Daniel Prescott Designer Lucy McMurray PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Deputy Production Manager Matthew Grant Managing Picture Editor Patrick Littlejohn Image Editor 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 4 210 8000 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.

Audited by: BPA Worldwide Average Qualified Circulation 6,379 (July - Dec 2009)

READERS LETTERS

An ITP Business Publication Licensed by Dubai Media City

POWER PLAYER Celebrating Jafza’s 25th anniversary of operations with CEO Salma Hareb

WISE INVESTMENTS A look at the multi-billion dollar logistics complex at Dubai Investments Park

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

MAY 2010 ISSUE 68

Turning dreams into reality

Concerns about warehouse design

Dear Editor, After reading your cover story on Bahrain in Logistics Middle East, I have to agree on the Kingdom’s potential as a warehousing hub. However, I would like to highlight a major hurdle that the government must overcome in n order to realise its ambitions. Ther There The erre are trucks lined across the th he Sa he SSaudiBahrain sides off ahrain h n Causeway Ca se seway (on on both bo b the border), which presents a logistical ogistic gist gisti gis s nightmare businesss i ht htmare for h f the he h lo loc llocal call b community and customs authority, nott yy,, no n to the trucking o forget forget r et th trucki crews that thaat struggle sst stru to get across. Th is situation This sit ituati ti must be resolved ed d to benefi s logistics sector. ben nefi n efit Bahrain’ B Stephen Gomes omes mes es

Dear Editor, I was interested to read your interview about warehouse leasing with Will Wright from Cluttons Middle East. In my opinion, most of the warehouses in this region are poorly designed. The builders rely way too much on steel fabricators or civil contractors for design input. One of the main contentions of selecting a warehouse for 3PL operations is the design, which relates directly to the running cost of the operations. It’s time for the builders to change their mentality and entice operators to lease their facilities. Sanjeeve S. Thavarajah

BAHRAIN BRILLIANCE

TOP 10

MID E EAST WAREHDL O

USE HU WHICH BS DEVE HAVE TO LOPMENTS PP ANNUAL ED OUR LIS IN 2010 T ?

Revealing the Kingdom’s grand masterplan to turn its logistics zone into the Middle East’s most awaited warehousing hub

GAC LOGISTICS

DNATA І

TTL SHIPPING & LOGISTICS

AGILITY

Hamad Fakhro, assistant director general of Bahrain Logistics Zone

The brilliance of Bahrain

SSI SCHAEFER

Dear Editor, There’s a lot of potential for Bahrain to establish itself as a major force in the global logistics industry. With a combination of worldclass infrastructure for warehousing and transportation, in addition to lower operating costs than most other countries in the Middle East, the Kingdom has the scope to compete with the likes of Dubai and Abu Dhabi. Your interview with Hamad Fakhro from the General Organisation of Sea Ports (GOP) was proof that the Bahrain government are thinking along the right lines. Ziad Al-Basha

Has the city come to life? Dear Editor, It seems that everything is finally coming together at Dubai Logistics City. The likes of RSA Logistics, Kuehne & Nagel and Calipar Integrated Services have commenced operations at their warehouse centres, while Ehrhardt + Partner Solutions (EPS) has also opened its training centre at the development. I know there have been a lot of delays in Dubai Logistics City, perhaps because of the global recession, but I still believe that this project has a lot of potential, especially with the opening of Al Maktoum International Airport. I hope to read about further progress in future issues of Logistics Middle East. Nasser Saidi

MIDDL TOP 10EMIDDL EAST E WAREH EAST OUSE WAREH HUBS OUSING HUBS

TOP 10 MIDDL MIDDL E EAST E EAST WAREH WAREH OUSIN OUSE G HUBS

The king of warehousing hubs Dear Editor, It’s encouraging to note the inclusion of Abu Dhabi Airport Logistics Park and Dubai Investments Park in your annual list of Middle East Warehouse Hubs. However, it seems that Jebel Ali Free Zone remains the jewel in the crown of logistics hubs within the region. Jebel Ali Free Zone Authority (Jafza) has invested an impressive amount to develop its infrastructure, but moreover, the authority has capitalised on the strategic importance of Jebel Ali’s location and continued to improve wherever possible on services, capacity and landscape to ensure Jebel Ali Free Zone remains the hub of choice for most large international traders. Barry Madlin

TOP 10 MID

ST WAREHOUSDELEHEA UBS

With billions of dolla rs being invested in the Middle East’ growing portfolio s of logistics trade zones, which of region’s developed the and under-developm ent projects have been included in the annual Logistics Middle East Top 10 Warehouse Hubs for 2010? ABU DHABI AIRPO

RT LOGISTICS PARK

Although the develop parks in the United ment of logistics Arab Emirates has traditionally focused on Dubai, a string multi-billion dollar of projects have recentl been launched in y other parts of the country. Leading the revolut ion has been Abu Dhabi Airports Compa ny (ADAC), a regional powerhouse in the aviation sector with management respons ibility for the airport in Abu Dhabi and s Al Ain. The centrep iece of ADAC’s US$6.8 billion development strateg is Abu Dhabi Airport y Business Park, which being constructed is on 12 square kilomet res 18 MAY 2010 | www.arabiansupplychain.c

of land and will include around 2 square kilometres of space for transportation comple a warehousing and x. The project has received a conside rable amount of interest from the logistic s sector, especia lly from freight forwarders, importers, exporte and MRO specialists rs – proving that demand for such develop ments outside of Dubai is also plentiful. The complex is being developed in two phases, with the first phase being schedu led for completion next year, while the compet ition of phase two will follow in 2015.

DUBAI LOGISTICS

CITY

Spread over 25 square kilometres, Dubai Logistics City (DLC) has been created to handle the warehousing and transportation require ments of the Middle East for the next 40 to 50 years. The multi-billion dollar project, which is located in close proximity to Jebel Ali Port and the forthco ming Al Maktoum International Airport , will allocate 12 million square feet of land to industrial and distribution companies, with each tenant either building their own facilities or renting shared premises. The commitments to build dedicated warehouses have already come from a diverse mixture of freight forward ers and logistics provide rs, with RSA Logistics, Kuehne & Nagel, Ehrhardt + Partner Solutio ns (EPS) and Calipar Integrated Service s being the first to commence operati ons. In addition, Eagle Industries, Integrated Nationa l Logistics, Aramex , and RSA Logistic s (phase two) are also coordinating the construction of their facilities.

RAK FREE TRADE

ZONE

Ras Al Khaimah Free Trade Zone (RAKFT has successfully market Z) ed community of regiona itself to a growing businesses over the l and international years, with over 7000 companies now based at the industr complex. Even the ial global recession has failed to make a dent figures, which increas in 2009’s revenue ed by 11% compar to the same period ed in 2008 – an achieve ment that has been credite d to a flexible busines model that easily s adapts to market changes. First established in 2000, RAKFT Z is

divided into an industrial park, business park, technology park and academ y zone, which are spread across the mounta inous northern emirate . The majority of logistics companies are based in which covers 6 million the industrial park, square metres and offers direct access to port available when Saqr Port; the first entering the gulf. addition, the openin In g of Emirates Highwa has become a major y selling point, almost halving commuting time between the free zone and Dubai.

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| MAY 2010 19

Please address your letters to: Logistics tics Middle East, PO Box 500024, Dubai, UAE or email: robeel.haq@itp.com q p (Please provide your full name and address, stating clearly if you do not wish them to appear in print. All letters will be edited for clarity of shortened to fit the allotted space).

4 JUNE 2010 | www.arabianbusiness.com/transportation

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NEWS UPDATE

Free zones report strong Q1 growth in the UAE

From Jebel Ali to Ras Al Khaimah, the logistics sector is playing an essential role in free zone success

or free zones within the UAE, the first quarter of 2010 showed great signs of progress. Across the board tenancy was up, with most having planned upgrades and expansions in the pipeline. According to a recent published report, logistics companies and re-exporters are the ones that continue to gobble up all the free zone space. “The growth of the logistics sector will have a significant effect on the demand for warehousing space,” said Joseph Garwood, associate director of DTZ Research. “Re-exporters as well as third party logistics suppliers (3PLs) are predominantly seeking warehouse space within free zones.” In Jafza, chief commercial officer Ibrahim Mohammed Al Janahi said the free zone witnessed a 63% increase in the number of new facilities leased, compared to the same period last year. “The figure includes new investors as well as existing firms engaged in expanding their businesses. This trend has continued from 2009 to 2010 and we hope it will maintain momentum in the months ahead. The most encouraging sign is that a good proportion of the companies have expanded their operations by leasing larger space, a sign of business thriving even in challenging times.” Dubai Airport Free Zone has also registered a robust growth of 55% in new investments during the first quarter of this year compared to same period in 2009. “This strong growth in investments is a natural result of the increase in the number of new companies registered in the first quarter,” commented Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Dubai Airport Free Zone. “In addition, existing companies at the free zone expanded by 38% in their premises space.” Sheikh Ahmed added that expansions were led by 16 European and American companies, which have recently stepped up their activities in the region, in search of new markets. “The free zone’s contribution to Dubai’s GDP was 2.2% last year, and is expected to grow with the increase in number of companies and additional investments by major international companies seeking a foothold in the Middle East, Central Asia and Africa,” stated Sheikh Ahmed.

Meanwhile, Ras Al Khaimah has posted an increase of just over 13% in the first quarter, as 428 new companies registered with the free zone. Amid such growth, officials at RAK Free Trade Zone (FTZ) are planning to invest at least US$1 billion over the next five years in logistics and infrastructure improvements. Oussama El Omari, chief executive officer at RAK FTZ, noted that facilities within the emirate’s seaport and airport have also witnessed significant upgrades. In addition, he confirmed that the stated five-year investment plan will go towards improvements to the free zone’s power networks, warehouse facilities and office spaces, in addition to the incorporation of world-class IT solutions. So the question remains, where are Abu Dhabi’s logisticsfriendly free zones? “Unlike Dubai, Abu Dhabi does not yet contain any industrial free zones, although Abu Dhabi Airports Company (ADAC) is set to establish a business and logistics park next to the airport, which is planned to operate as a free zone. Additionally, Khalifa Port Industrial Zone (KPIZ) is planned to be part free zone,” said Garwood.

MARKET INTELLIGENCE “The United Arab Emirates is becoming an undisputed air and sea hub; this may be one of its best assets outside of oil. We estimate that US$26 billion of air and sea infrastructure projects are currently under development. More than just a stop off point, the UAE is becoming a logistics hub serving a vast population basin.” -Standard Chartered Bank, September 2009

PERFORMANCE INDICATOR The World Bank ranks the United Arab Emirates among the top 20 countries in the world in its Logistics Performance Index, which measures the ease of shipping goods into and out of a country – the highest for any Middle East country.

www.arabiansupplychain.com | JUNE 2010

NEWS UPDATE

NEWS IN BRIEF

Emirates security alliance with DHL Memorandum of Understanding signed to collaborate on air cargo security initiatives in the Middle East Emirates has signed a Memorandum of Understanding (MOU) with DHL to establish an airfreight security partnership in the Middle East. Under the alliance, Emirates Group Security and DHL Express will collaborate on air cargo security initiatives, promote joint training and education activities, and share information on security threats. “Whether you work for an airline, airport, civil aviation authority or related service provider, understanding the threats and risks to security and how to manage them is crucial,” stated Dr. Abdulla Al Hashimi, divisional senior vice president of Emirates Group Security. “The sharing of best practices and exploring synergy in training and education are important aspects of producing a comprehensive and practical approach to combating threats in the aviation industry.” AIRFREIGHT

Gulftainer expanded its logistics, transport and port operations in the Middle East last month with the acquisition of a controlling interest in UAE-based Avalon General Land Transport. The move is expected to enhance Gulftainer’s participation in major contracts throughout the GCC, including Bahrain, Oman and the UAE. “We have been talking to Avalon for some time,” confirmed Peter Richards, managing director of Gulftainer. “Both companies understood that this partnership would maximise the combined strengths of our organisations.” FedEx Trade Networks plans to capitalise on growing demand for ocean and air freight services in the Europe, Middle East and Africa (EMEA) region with the opening of its latest office in Dubai. “We will continue to enhance our presence and infrastructure in key markets throughout the world, because our customers prefer to conduct business with providers that have a physical presence wherever they trade,” explained Fred Schardt, president and chief executive officer of FedEx Trade Networks. Al-Futtaim Logistics has been contracted to handle the supply chain operations of Caterpillar in Dubai, including freight forwarding, road transportation and customs brokerage. “We are extremely proud to secure this contract with the world’s leading manufacturer of diesel and natural gas engines, construction and mining equipment, and industrial gas turbines,” commented Tom Nauwelaerts, head of Al-Futtaim Logistics. “With a strong network, we are confident about providing these services at the agreed times and within the defined budget.”

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Emirates chairman HH Sheikh Ahmed bin Saeed Al-Maktoum is presented the MoU

According to Garry Kemp, managing director of DHL Express in the Middle East, North Africa and Turkey, the agreement will enable both parties to work towards a more secure and stable environment for employees, customers and the logistics industry.

“DHL views this partnership as a significant step towards fostering deeper cooperation in the field of security,” he said. “Enhanced security standards in the United Arab Emirates will also build stronger consumer confidence in the air cargo sector,” he added.

GAC signs cargo deal with Jazeera Airways Jazeera Airways has selected GAC as its outsourced cargo agent, with responsibility for managing a dedicated team of sales and operations staff from the airline’s cargo division. The exclusive agreement was signed last month and marks the beginning of Jazeera Airways cargo operations in Bahrain. “We are extremely proud to be associated with Jazeera Airways, which is one of the fastest-growing airlines within the Gulf aviation industry,” commented Captain Peter Gronberg, managing director of GAC Bahrain. “I am certain that Jazeera’s outstanding reputation, coupled with GAC’s dedicated team of professionals, will result in a very successful and enduring partnership.” AIRFREIGHT

Jazeera Airways currently operates a fleet of eleven Airbus A320 aircrafts, which fly to 21 destinations, predominately in the Middle East. “To successfully kick-start our cargo operations, its important to have a strong local partner with in-depth experience,”

said Robert Hayek, director of sales and operations at Boodai Aviation, the sole worldwide outsourced cargo agent of Jazeera Airways. “GAC Bahrain is a natural choice due to their long-standing presence in the market, as well as proven sales and operational capabilities.”

Mohammed Adel Fakhro (GAC) signs the deal with Monzer Najia (Boodai Aviation)

NEWS UDPATE

Dubai Trade forms training partnership with CILT Dubai Trade has announced a recent partnership with the Chartered Institute of Logistics and Transport (CILT) to launch a training and certification programme for supply chain professionals in the region. The specialist course has been designed to provide advanced training in logistics, transport, e-services and allied areas, with students working towards a professional certificate that is accredited by CILT and Dubai Trade, the online service provider of Dubai World. “The programme reflects Dubai Trade’s commitment to serve and develop the trade community in Dubai,” stated Mahmood Al Bastaki, director of Dubai Trade. “We are pleased to have CILT-UAE as our strategic partner in this corporate social responsibility TRAINING

Dubai Trade’s Mahmood Al Bastaki (left) signs the deal with Alex Borg from CILT (right) and Dubai World’s Saeed Alqaizi (centre)

initiative. We consider this agreement as a beginning and look forward to future enhanced collaboration and continuous support from CILTUAE in order to present Dubai as the premier trade hub.” The initiative is expected to benefit thousands of supply

chain companies, such as importers, exporters, freight forwarders, clearing agents and haulers in the UAE, as well as across the MENA region. “This agreement is in line with our principal objective of promoting and encouraging the art and science of logistics

and transport,” commented Alexander Borg, regional director of CILT. “Our strategic partnership with Dubai Trade is specifically tailored to impart professional training and raise awareness among various different groups of the supply chain industry.”

INTERNATIONAL PROFESSIONAL QUALIFICATIONS IN LOGISTICS AND TRANSPORT The Chartered Institute of Logistics and Transport International is a uniquely established global professional body. CILT is the lead-

INTERNATIONAL CERTIFICATE INTERNATIONAL CERTIFICATE IN IN LOGISTICS AND TRANSPORT LOGISTICS AND TRANSPORT

ing professional body associated with logistics and transport. With

INTERNATIONAL DIPLOMA IN LOGISTICS AND TRANSPORT

over 33,000 members in over 30 countries worldwide, CILT holds unparalled professional international recognition. It is an organisation that offers signiﬁcant beneﬁts to all its members, as well as a complete suite of educational courses internationally. Estab-

INTERNATIONAL ADVANCED DIPLOMA IN LOGISTICS AND TRANSPORT

lished in 1919 and receiving its Royal Charter in 1926, the Institute has an exciting history behind it, but it is always adapting to stay consistent with current logistics and transport issues. The Institute’s Patron is Queen Elizabeth II. CILT (UAE) is the Regional Ofﬁce for the UAE & GCC Region and an Approved Centre of CILT International. We take pride in bringing the internationally recognized professional qualiﬁcations in Logistics and Transport and facilitate them at your doorsteps.

PO Box 28444, Emirates Aviation College, 1st Floor, Al Garhoud, Dubai, UAE Tel: +971 4 2187804 / 5 / 6 - Fax No:+971 4 2832906 E: info@ciltuae.org / alex@ciltuae.org W: www.ciltuae.org / www.cilt-international.com

www.arabiansupplychain.com | JUNE 2010

NEWS UPDATE

NEWS IN BRIEF

CEVA to handle P&G logistics in Dubai Company will handle customs clearance, warehousing and distribution for Procter & Gamble in the emirate CEVA Logistics has been signed to provide Procter & Gamble (P&G) with integrated supply chain services in Dubai. The logistics company will manage customs clearance activities for P&G’s fast moving consumer goods (FMCG), transporting the products from the port to CEVA’s warehouse and office facility in the south area of Jebel Ali Free Zone. The logistics operator will also take charge of warehousing activities and manage the outbound distribution of products in countries such as Kuwait, Saudi Arabia, Oman, Qatar, Bahrain, Yemen and the United Arab Emirates. “P&G and CEVA have similar DNA and we want to leverage this to achieve new heights in successful partnership,” stated 3PL

GAC has opened its latest branch at the cargo terminal of Kuwait International Airport, which has been launched to boost the company’s profile as a leading airfreight forwarder throughout the Middle East. “Being located at the airport has brought GAC closer to where the actual cargo arrives. As a result, clients will benefit from significant savings in time, as the entire process is expedited, from start to finish,” explained Ronald Lichtenecker, GAC Kuwait managing director. DHL has expanded its air network with an Aerologic route linking the UAE to Asia and Europe. Aerologic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, will operate a B777F flight between Leipzig and Hong Kong with a connection in Sharjah. “With enhanced linkages via the Middle East, we will deliver greater time savings and better connections to our customers, thereby supporting UAE business across Asia and Europe,” said John Pearson, CEO, DHL Express Asia Pacific, Eastern Europe, Middle East and Africa. Agility reinforced its credentials in motorsports after serving as the official logistics operations handler at the inaugural FIA GT World Championships in Abu Dhabi. In agreement with Abu Dhabi Motorsports Management Company (ADMM), the company was responsible for transporting the race cars and equipment to the Yas Marina Circuit. “Through our previous work, Agility proved it had the credentials to facilitate such a high profile event,” stated Elias Monem, Agility’s CEO in the Middle East and Africa region.

CEVA’s Gianfranco Sgro joins Al Rajwani from P&G to finalise the logistics contract

Al Rajwani, vice president and general manager of P&G in the Arabian Peninsula and Pakistan. “Our new logistics partner will support us in the management of our supply chain through smart and responsive solutions.” CEVA is currently expanding its presence in the Middle East through a network of local warehouses, in order to support

its regional development plans. “Our innovative solutions and talented team, combined with our strong network of warehouses and knowledge of Dubai market requirements, allow us to be an excellent partner for P&G,” commented Gianfranco Sgro, president of CEVA for Southern Europe, the Middle East and Africa.

Aramex hosts leaders conference in Dubai Aramex hosted its 28th Annual Leaders conference in Dubai recently, with participation from over 280 members of the logistics company’s workforce. A number of topics were discussed at the three-day conference, including Aramex’s growth strategy for 2010 and the lessons learned from the financial downturn in 2009. LOGISTICS

Conference participants also discussed the future of the logistics and transport industry, and the growing importance of a customer-focused approach driven by innovation. “This annual event is very important to Aramex and provides a platform for leaders across our global network to discuss strategic issues and brainstorm ideas for the

coming years,” stated Iyad Kamal, chief operating officer of Aramex. “It also presents an opportunity to hear from business leaders and entrepreneurs on different industry trends, such as e-commerce, which have a direct impact on the way we do business and, more importantly, what our customers around the world expect from Aramex.”

Aramex invited over 280 employees from around the world to gather in Dubai and discuss the company’s growth strategy for 2010

10 JUNE 2010 | www.arabiansupplychain.com

Clarion Shipping is a global Ocean and Air freight forwarder, a multimodal Transportation and Logistics Services provider head quartered in Dubai, UAE. Clarion strives to be a global organization in the world of logistics by providing value added integrated logistics solutions. Clarion caters to customers in need of a local logistics service partner with global reach providing professional, yet personalized services. We are a ONE-STOP-SHOP for all your logistics requirements.

P.O. Box 43030 Dubai, UAE Tel: +971 4 359 3030 Fax: +971 4 359 3040 Email: clarion@emirates.net.ae Website: http://www.clarionshipping.com

• Freight Forwarding • NVOCC • Land Transport • Air & Sea Freight • Projects Handling • Packing/Removals • Customs Clearance • Insurance Services • Exhibition Handling • Sea- Air Movements • Supply Chain Services • Break Bulk and Charter • Warehouse & Distribution • Import & Export Consolidation • Clarion Express Courier Services • Clarion Document Storage Services OFFICES IN: U AE, OMAN, SAUDI AR ABI A, KUWAIT , B A HRAIN, Q ATA R, INDIA, HO NG KO N G – CH I N A , T H AIL AND, MAL AYSI A, I NDO NESIA, US A , L E B ANO N, K E NYA, TA NZANIA , UGA N DA , RWANDA, BU R UNDI , DJI BOUTI, JUB A, D. R. C O NG O , NIG E RIA , CAM E RO O N, GHA N A .

NEWS UPDATE

NEWS IN BRIEF

Dubai fire damages MFC warehouse Modern Freight Company’s operations impacted by a large-scale blaze at Jebel Ali Free Zone last month

The first ever ‘Linde Challenge’ took place at the Al-Futtaim Auto & Machinery Company (FAMCO) facility in Abu Dhabi last month. A number of logistics companies sent their best operators to take part in the event and showcase their skills on a variety of material handling equipment. “The event proved an excellent opportunity to target existing and potential clients from different industries, including the logistics, oil and gas, and manufacturing sectors,” explained David Dronfield, UAE divisional manager of FAMCO’s storage and handling solutions division. Zayani Motors, exclusive dealer of Mitsubishi forklifts in Bahrain, has confirmed plans to introduce a new range of ‘environment-friendly’ hybrid models in the Kingdom. The forklifts are produced in Japan and were launched at the Bauma trade show in Switzerland last month. “With the virtues of dependability, affordability and efficiency, we believe this latest range of hybrid forklifts from Mitsubishi is ideal for Bahrain’s increasingly fastpaced and developing economy,” said Jimmy Chamata, marketing manager of Zayani Motors.

Firefighters were able to control the blaze within four hours and no injuries were reported by Modern Freight Company officials

An investigation has been launched into a recent blaze at Jebel Ali Free Zone, which caused damage to a warehouse centre operated by Modern Freight Company (MFC). The incident, which occurred on Sunday 9th May, took a team of firefighters around four hours to control, according to WAREHOUSE

witnesses at the scene, although no injuries were reported. “The investigation is being handled by police officials at the moment,” said Nick Trott, general manager of Modern Freight. “This will provide a clearer picture about what caused the fire.” Trott confirmed that insurers will be conducting a survey of

Saudi firm hails CHEP partnership success NFIC (National Food Industries Company) has confirmed plans to extend its partnership with CHEP Middle East, a leading provider of pallet and container pooling services. The Saudi Arabian company, which specialises in the MATERIAL HANDLING

processing and packaging of canned products, will introduce an increased number of CHEP pallets into its supply chain for products such as evaporated milk, sterilised cream, tomato paste and foul medames. “Our research has clearly shown that a high percentage

Ehrhardt + Partner Solutions (EPS) participated in this year’s GITEX Saudi Arabia exhibition to promote its complete range of technology products for the supply chain sector, including RFID and pick-by-voice solutions. “We received a solid response at the event,” stated Hermann Ehrhardt, founder and managing partner of EPS. “In particular, visitors were impressed with live demonstrations at the EPS stand, which allowed our team to showcase the latest innovations in logistics technology.” NFIC has announced a reduction in customer complaints since using CHEP pallets

12 JUNE 2010 | www.arabiansupplychain.com

the facility to assess the extent of damage. “To date, we have not incurred any fines or penalties. However until the investigation is completed, it’s difficult to say what will happen,” he added. The incident occurred within days of another warehouse fire in the Ras Al Khor Industrial Area, which destroyed five storage facilities.

of damage occurred to products between our manufacturing plant and customers,” explained Mohamed Khan, operations coordinator of NFIC. “The results from our initial changeover to CHEP over the last 2.5 years have shown that customer complaints about damaged stock as a result of bad pallets have gone to zero.” CHEP has a strong footprint throughout the GCC, with a presence in Dubai and Saudi Arabia, supported by agency arrangements in Kuwait, Oman, Bahrain and Qatar. “CHEP has enjoyed a good relationship with NFIC since the pallet pooling service was introduced in the Kingdom some five years ago,” stated Kevin Smyth, director of CHEP Middle East. “We look forward to a long and mutually beneficial relationship with them in the years to come.”

FAMCO, your Dexion authorised distributor, is a market leader in high end industrial storage solutions that improve supply chain efficiency and lower the per unit cost of distribution. Our solutions are typically centred around quality storage equipment, better material flow and end-to-end order fulfilment systems. Allow FAMCO to take care of your business today!

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NEWS UPDATE

ubai World chael Canon (D (Four Soft), Mi consultant) t en nd pe de Tim Sensenig ael Proffitt (in Central), Mich

Mohammed Sharaf, chief executive officer of DP World

Tom Nauwelaer Logistics with Dr ts from Al-Futtaim . Dermot Carey (MRM-Global) and Patrick Da ly (Alba Logistic s)

SCLG annual summit attracts record attendence

he Supply Chain and Logistics Group (SCLG) hosted its third Global Logistics and SCM Strategy Summit without a hitch last month. Held at the Jumeirah Beach Hotel, the intensive one-day conference was broken into a variety of industry segments, focusing on sectors such as retail, manufacturing, banking and insurance. With more than 200 industry leaders in attendance, covering 30 countries throughout the world, the culmination of the event was a gala dinner, in which an expansive international buffet was provided for participants. “We are delighted to have welcomed such a large supply chain fraternity from across the globe at our summit. We were able to formulate and discuss several strategies for countering the current market conditions and take measures to further grow the industry in 2010,” said Shashi Shekhar, founder and group president of SCLG. “Through these summits, SCLG helps to build strategies for companies and support the government in policy formation, with the objective of weathering these global challenges. We strongly believe that the supply chain industry will consolidate and grow further by the end of 2010,” he added. 14 JUNE 2010 | www.arabiansupplychain.com

Over 80 speakers and panellists took part in the event, with Mohammed Sharaf, CEO of DP World, providing a keynote speech on the importance of global integration and trade efficiency. “There are markets around the world down by 50% year-on-year, and they will take some time to come back,” he explained to delegates. Regarding what is in store for the rest of this year, experts advised a strategy in pre-emptive planning, while staying atop ever-changing market conditions. “The economic outlook in many countries improved this year as many government authorities announced stimulus packages around the world,” stated Dr. Kanak Madrecha, member of SCLG’s regional development committee. “The last two years have eroded commercial values in many organisations throughout the globe - some verticals suffered more and others less, but the shrinking global economy took its toll in all industry segments. Those who quickly responded in getting their supply chains aligned showed better results than others. This year has begun with a new hope for a better tomorrow,” he continued. Following the success of this year’s event, SCLG has scheduled its fourth Global Logistics and SCM Strategy Summit to take place in Dubai on 18th May 2011.

NEWS UPDATE Terry Lee (TCA Taiwan) with a guest at the SCLG event Dr. Dermot Carey (MRM-Global) with Shashi Shekhar, SCLG founder

CLG), ashi Shekhar (S (Globeapex), Sh rry Lee (TCA Taiwan) ara ap M h tis Dr. Sa ), and Te recha (DP World Dr. Kanak Mad

The SCLG team takes a break for a quick photo opportunity The SCLG event attracted over 80 plus speakers and panelists

Former Dubai Logistics City CEO Michael Proffitt leads a panel discussion

ittee agement comm The SCLG man

Abdul Aziz (Dubai Bank), Mohsen Al Awadhi (Dubai Logistics City), Captain Mansoor Ghafoor (NAFL), Dr. Satish Mapara (Globeapex), H.E. Hamad Buamim (DCCI) and Hassan Al Hashemi (DCCI) www.arabiansupplychain.com | JUNE 2010

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 Gulf Agency Company (GAC) Agility DHL Express Jebel Ali Free Zone Aramex

Fresh blow for Agility with Q1 finance report Agility has published its financial results for the first quarter of 2010, with a decline of 55.3% in operating profits compared to the final quarter of last year. The logistics company also posted US$232.3 million in revenues for the January-March period, marking a decrease of 14.4% in comparison to the previous quarter. The results are a fresh setback for Agility, which is currently in talks with the U.S. Department of Justice to resolve a November indictment accusing it of overcharging the U.S. Army over 41 months on $8.5 billion in contracts to provide food to soldiers in Iraq, Kuwait and Jordan. In a statement released by Agility, chairman Tarek Sultan discussed the ongoing proceedings, as well as his outlook for the remainder of the fiscal year. “Agility is likely to face declining profitability over the course of the next four quarters, as a result of major US government contracts winding down in Iraq, recovery from the global recession, and the financial impact of the legal dispute with the US government,” he said. “We are aware that 2010 is a pivotal year for Agility because of the US troop drawdown in Iraq and subsequent phasing-out of some of our large government contracts. This year is the final option year for US government contracts that have historically contributed 25%-35% of Agility’s annual revenue.”

MOST POPULAR HEADLINES damages Modern 1 Blaze Freight Company warehouse logistics contract 2 US disputed by Agility rivals cargo boat 3 Overloaded sinks in Dubai Creek Vertannes resigns 4 Des from Etihad Crystal Cargo resumes logistics 5 Anham work for US government

EDITOR’S CHOICES VIDEO REPORT

EXCLUSIVE INTERVIEW

Dubai drivers arrested for Sheikh Zayed Road stunts Two drivers have been arrested for performing reckless stunts on a Dubai highway, after a video of the incident was posted on YouTube.

Introducing DHL’s new UAE country manager Frank-Uwe Ungerer explains his development plans as the new country manager for DHL Express in the United Arab Emirates.

SPOT POLL

How do you rate the future of Agility as a leader in the global logistics industry?

75.0%

It will be hard to recover from the loss of US contracts

16 June 2010 | www.arabiansupplychain.com

15.6%

It still has potential but needs a change in direction

9.4%

It has a bright future and will continue to exceed expectations

INTERVIEW: COMPANY PROFILE: CONSOLIDATED CONSOLIDATED SHIPPING SHIPPING SERVICES SERVICES

Passionately PROFITABLE Celebrating its 15th anniversary of operations this year, Consolidated Shipping Services (CSS) has emerged unscathed from recent market turmoil, explains its outspoken chairman and founder T.S. Kaladharan. 18 JUNE 2010 | www.arabiansupplychain.com

COMPANY PROFILE: CONSOLIDATED SHIPPING SERVICES

ith humble beginnings in a was the confidence in our people, and the small South Indian village, confidence in our beliefs that has brought us T.S. Kaladharan now sits atop to where we are today.” a conglomerate considered to He remains adamant about sharing the be a regional powerhouse in success of CSS with his employees. Whether the logistics industry. it’s the company’s bi-monthly publication, Lounging in his Jebel Ali office - plush with Lighthouse, where employees receive official white leather couches and state-of-the-art recognition for their work, or the sponsored monitors - Kaladharan beams when talking badminton and cricket tournaments, all about the success of Consolidated Shipping have been well received. As an employee Services (CSS). “We have maintained a steady welfare measure, the company also serves growth since our inception,” he begins with up a free daily lunch to the entire workforce. a sense of pride. Immediate advantages aside, Kala Launched in 1995, with just a handful of believes that implementing such incentives employees and a 1200 square foot office, CSS will consequently reduce merchandise loss has since grown into a company of more than in his warehouses, as employees no longer 750 employees, spread over bring lunch pails to work. In 20 offices around the world. talking about CSS’s economic “We have As the chairman and founder, outlook, the executive is very experienced Kaladharan began his career positive, and while 2009 was in Bahrain, going to work as an “not as bad as the other guys”, very consistent office assistant for DHL. After he says 2010 holds even more growth within more than ten years of service promise. But given the current India, Saudi with the courier firm, working global economic state, is the Arabia, Bahrain in sectors such as cargo company really undergoing and Abu Dhabi” distribution and air freight, he expansion? set his sights on Dubai, eager to Kala thinks that now is the utilise his contacts and expertise. time to act, and one such venture is a recent Known affectionately by his peers as ‘Kala’, partnership with Peters & May, a specialist he’s since made quite a respected name in yacht transportation throughout the for himself within the freight forwarding world. Given the current financial climate, community. he believes this is one shipping sector that In choosing the most suitable place to is experiencing consistent growth. In such launch CSS, Kala was drawn to Dubai for a a niche market with high-end clientele, the variety of reasons, actively becoming part markups tend to be quite favorable. “We of the late 90’s boom. Kala says that he saw recognise the need to partner with a firm what Dubai envisioned itself becoming and that has received global recognition in considered it to be great place to operate boat transportation,” says Kala. “We both his business. “It was quite a simple decision share the same unmatched professionalism really,” he says. “Its tax free, the government that has made us recognised leaders in our remains very supportive of commerce, and specialised fields.” its location makes it a transit hub to several The sentiments are shared by Gerald growing markets.” Price, managing director of Peters & May, Admittedly, while the Dubai market has who signed the contract with CSS. “Due become somewhat ‘stagnant’ in the past to the increased volume of business being year, Kala says other regional markets are undergoing healthy expansion. “We have Marketspeak experienced very consistent growth within India, Saudi Arabia, Bahrain and Abu • Bunker Adjustment Factor (BAF): A fuel Dhabi,” he states. surcharge expressed as a percentage added When talking to Kala, his sense of or subtracted from the freight amount, optimism is almost infectious. After all, reflecting the movement in the market this is a man that has grown his company place price for bunkers. of five employees to more than 750 in a little • Currency Adjustment Factor (CAF): A under 15 years, all the while attributing his fee applied to the shipping costs to success to the people that were brought compensate for exchange rate fluctuations. on board, more so than himself. • General Rate Increase (GRI): The average “I believe in my team and management. amount in which a carrier increases its Nobody in this world has ever succeeded prices. The rate is usually to cover the without a belief and team effort. These two increase of tariffs or labour costs. attributes provide an ethos for success. It

www.arabiansupplychain.com | JUNE 2010

COMPANY PROFILE: CONSOLIDATED SHIPPING SERVICES

Consolidated Shipping Services operates a flagship warehousing facility (above) and hosted a celebration of its 15th anniversary with a ceremony in Dubai (below)

Having celebrated the company’s 15th carried out by our local Dubai office, we found it necessary to appoint an agent anniversary earlier this year, Kala is with an existing network of offices in evidently proud at how far CSS has come. the region, which will support the future In true celebratory fashion, he threw a growth that we are anticipating in the three-day long party for his employees and clients, inviting all to attend. “The Middle East,” he explains. Currently, Peters & May ships around celebrations were a tribute to everyone who 8000 vessels through more than 150 ports contributed to our success,” he explains. The event took place on 16th-18th April in over 60 countries. It is also the preferred shipper for many of the world’s leading and comprised several conferences and boat builders, including the likes of Correct open discussions, which offered agents Craft, Gulf Craft, Princess Yachts, Sunseeker the opportunity to speak about their association with CSS. and Viking Yacht Company. Breakout sessions were also Regarding the current included, where the agents market, are there any changes “Nobody in had a choice to interact with that Kala might suggest, this world has various departments in the that would possibly benefit ever succeeded company. After the conference, freight forwarders in the near without a belief a gala dinner was served, with term? “Absolutely,” he cheers, and team effort” a recognition ceremony for stating that the one major long-serving CSS staffers and change he would like to see live fusion music by renowned within the shipping market is more consistency to Bunker Adjustment musicians from India to entertain guests. Factor (BAF) and Currency Adjustment On the final day of celebrations, guests were Factor (CAF), or the surcharges associated treated to an Arabian themed dinner and with shipping goods. “It’s unbelievable to me. evening activities such as belly dancing, a People are used to it. These surcharges have falcon show and camel riding at the Bab Al become widely accepted. As a forwarder, Shams Desert Resort and Spa. “The celebration was a memorable I just want to see more consistency in the experience for everyone involved,” concludes pricing, whether high or low.” In the end, Kala says, it gets passed along Kala. “I believe it’s important to acknowledge to the consumer and simply creates our achievements in such ways and I look more headaches for shippers and freight forward to many more occasions like this in the future.” forwarders, which should be avoided. 20 JUNE 2010 | www.arabiansupplychain.com

Mirnah Technology Systems

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MARKET REPORT: EXPRESS LOGISTICS

he United Arab Emirates has emerged as one of the most developed countries in the Middle East and Africa, with a Gross Domestic Product (GDP) of US$245.2 billion in 2008. While the country has been impacted, likes others, by the global recession, its GDP is still expected to increase by almost 4.5% over the next few years. Th is solid economic growth, coupled up with sizeable investments in the country’s infrastructure, has

22 JUNE 2010 | www.arabiansupplychain.com

formed the basis of continued development within the UAE’s logistics and express market. “The UAE’s logistics market is one of the largest in the Middle East and Africa,” says Mudit Gupta, project manager for transportation practice at Datamonitor. “According to our Global Logistics and Express Analyser (GLEA) tool, the country’s logistics market was valued at approximately $18 billion in 2008, and is expected to grow to around $20 billion by 2013.”

MARKET REPORT: EXPRESS LOGISTICS

The logistics market has traditionally formed a substantial part of the UAE’s economic development, with high potential for further growth in the coming decade, mainly due to its favourable geographic location as a trans-shipment hub. “Th is enables the country to attract investments from thirdparty logistics service providers and the government, thus making the market cost-effective and more lucrative for business investments,” explains Gupta.

The United Arab Emirates, which was initially a key transit hub for oil and petroleum products, is now emerging as a key transit point for all the trade that flows to countries in the Far East and Asia. “The country’s geographic location as a trans-shipment hub has helped in attracting huge investments in its infrastructure, which in turn has enhanced the country’s logistics attractiveness,” continues Gupta. “The creation of various free zone areas, such as Jebel Ali Free Zone and Dubai Airport Free Zone, and the development of transport infrastructure in collaboration with the logistics service providers has significantly improved the cost effectiveness of country’s logistics market. In the short to medium term, Datamonitor believes that the economic outlook for the UAE will continue to be positive, largely on account of the stimulus packages in 2010, coupled with an upward bias in the oil prices. However lower exports and decline in consumer confidence remain areas of concerns.” The overall logistics market has grown at more than 10% CAGR during 2004 to 2008. However, due to a recessionary environment in the past year, this fi gure is expected to decline in 2009, with a rebound from 2010 onwards. As per Datamonitor’s fi ndings, the UAE logistics market is dominated by freight, and more specifically the sea freight market, which makes up close to 50% of the overall value, followed by the warehousing sector, with a share of more than 30% of the overall value. “The dominance of the freight and warehousing sectors in the logistics market has signified the country’s growing importance as a trans-shipment point,” says Gupta. The express market, which has a marginal share of less than 2% of the total logistics market, grew at a CAGR of 14% during 2004 to 2008. However, with the economic recession affecting the express market the most, Datamonitor’s GLEA tool has suggested that the express segment is expected to grow at a single-digit CAGR during 2008 to 2013. As a result, it will reach about $360 million in 2013. A number of regional and international players are active in the market, from global heavyweights such as DHL, FedEx, TNT and UPS, to home-grown companies such as Aramex, Empost, MEX Logistics and Century Express Courier Service, each of which have capitalised on the market’s growth in recent years. Delving into the sub-sectors of the express sector, Datamonitor’s GLEA tool valued the all-important air express segment at $315 million in 2008. “Air express dominates the express market in the United Arab Emirates and has a share of almost 90%,” says Gupta. “However, continued growth in the air express market has been hampered primarily by the reduced trade flow, coupled with increased jet fuel prices, which in turn resulted in a steep hike in the prices of express offerings.” In terms of shipment size, Datamonitor believes that the ‘less than 70kg’ express shipment market will continue to be a dominant segment in the country, with the ability to corner more than two thirds of the express value. On the recipient front, the express business-to-business (B2B) market was worth around $270 million in 2008, and constitutes about 90% of the market. However future growth is expected to come from the business-to-consumer (B2C) express market, which is forecast to grow at a CAGR of 11% during 2008 to 2013, against a growth of 2% in the B2B segment. “The growth in the B2C express market is expected to be primarily driven by the increasing use of e-commerce and the strong growth of retail segment in the country,” concludes Gupta. www.arabiansupplychain.com | JUNE 2010

MARKET REPORT: EXPRESS LOGISTICS

DHL - GARRY KEMP, MANAGING DIRECTOR, DHL MIDDLE EAST What are consumers demanding from their express logistics provider? Express logistics customers expects timely deliveries with the shortest transit times to meet pressing deadlines. DHL consistently delivers on these core commitments, but what really stands out is our attention to customer satisfaction. Beyond speed and price, the differentiating factor is quality after-sales service, including track and trace capabilities, which provide full visibility and the confidence that the shipment is going to arrive on time. within the region and this means that the recovery would be much faster than in some other economies. Among transport modes, air transportation has clearly taken the biggest hit due to slowdown in global trade and lower volumes of international cargo.

Which countries will bounce back first?

ARAMEX - SAMER HAJJAR, COUNTRY MANAGER, UAE What are consumers demanding from their express logistics provider? Is the focus more on speed, price, or range of services? At Aramex, we always focus on striking the right balance between each of these components to ensure that our product offering is in line with evolving market needs. However, in light of global economic challenges over the past two years, there is clearly a need for certain niche products that provide cost benefits and a high level efficiency. This is exactly the idea with which we launched the ‘value express’ product last year, which offers customers the option to transport less urgent parcels at economical rates. This is all the more important in today’s times as we have seen an evident decrease in volumes from certain sectors, such as construction, media and banks.

As I said earlier, I would strongly back Dubai to make a quick recovery due to some inherent advantages, including extremely efficient and state-of-the-art physical infrastructure. The ready availability of large airports and sea ports, free zones with world-class regulation, capacity and frequency of airlines are all factors that will continue to strengthen its role as a hub for the entire Middle East, North Africa and South Asia region.

Will we see a reversion to the ‘boom’ times or has the industry irrevocably changed? The performance of the logistics and supply chain sector is and will continue to be directly linked to the overall health of the economy and the level of global trade. What we do know from the evidence of the past two years is that cost-efficiency is a concern across industries. Key players across the manufacturing, distribution and sales sectors are now looking for cost-effective ways to reach their end markets. While we have seen some recovery in certain sectors of late, whether this will lead to a full-blown “boom” is something one can only speculate on.

What are your five new rules in this market? Which countries and transport modes have been affected most by the recession? Within the Gulf, I would think that Dubai has had to face some key challenges as a result of global economic conditions. This has been mainly on account of a drop in population and the correction in real estate, which caused liquidity constraints. However, as a logistics hub, Dubai has unparalleled advantages 24 JUNE 2010 | www.arabiansupplychain.com

Five themes that rank high within Aramex’s strategy are aggressive market share expansion, especially in emerging markets, creating inbuilt product benefits through customisation and flexibility, technological and product innovation, customer service excellence and commitment to serve varied customer needs, and finally talent retention and training.

Which countries and sectors have been affected most by the recession? The global economic slowdown is far reaching and most industries have been affected in some way. The financial services and construction sectors were the first that we noticed to experience the impact of the recession. However, amidst these challenging times, some very positive signs have emerged. The life science and hi-tech sector has held its own, lifting performance in countries like Lebanon, Egypt and Jordan. Turkey has also proved very resilient, maintaining growth momentum buoyed by its garment industries.

Which countries will bounce back first? Qatar will be interesting to watch. Abu Dhabi is also growing quickly, with strong government backing, while I would also place Saudi Arabia on the watch list, as domestic consumption continues to drive strong demand for imports into the Kingdom.

What are your five new rules in this market? I would prefer to share one observation that I think rules over all. In a competitive environment such as this you can not afford to become complacent, because to continually win your customers, you have got to prove yourself day in and day out.

MARKET REPORT: EXPRESS LOGISTICS

Which countries, transport modes and sectors have been affected the most by the recession? The downturn was a global phenomenon that had a severe impact on practically all sectors of industry. The financial crisis resulted in a decline in consumer spending and business trading activity and, consequently, in less shipments being moved than previous years. And, as customers worldwide sought to effectively manage their own businesses during the recession, we also witnessed some of them shifting to our less expensive UPS shipping services.

Which countries will bounce back first?

UPS - JOHN TANSEY, UAE GENERAL MANAGER What are consumers demanding from their express logistics provider? Customers want a transportation company to provide them value and reliability. At the end of the day, customers expect to get the right products to the right destination at the right time in the right condition at the right price.

Economies across the world are showing signs of recovery and UPS has made a strong start to 2010. We are placed in an excellent position to help kick-start business activity and promote economic growth in all countries and across all industry sectors.

Will we see a reversion to the ‘boom’ times or has the industry irrevocably changed? It is difficult to make predictions for the future. Our hope is that the economy slowly returns to growth, sustaining an increase in trading activity both on a local and global level. If

this is the case, the United Arab Emirates – with its free zones, port developments and new infrastructure projects – certainly has everything in place to remain a leading global transportation hub.

Could you list the top five new rules in this market? Every company needs to develop its own set of rules by which to operate. To stay competitive and ensure ongoing success, UPS has firstly continued to provide the most reliable and most efficient service to customers globally in the transportation industry. Second, we provide the experience and solutions to help our customers get beyond this difficult period. Third, we take proactive steps to address market conditions, including heightened focus on increasing revenue, adjusting a flexible transportation network to match volume levels, and control costs through various measures. Fourth, continue to make the strategic investments that provide opportunities to grow the company and strengthen services to customers. And finally, continue to train and develop resilient employees who understand what true teamwork means and the accomplishments that can be achieved by working together as one.

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MARKET REPORT: EXPRESS LOGISTICS

TNT EXPRESS - MARK WOODCOCK, SALES AND COMMERCIAL DIRECTOR, UAE With stiff competition, what are consumers demanding from their express logistics provider in this region? While price has become more of a focus area for customers, the ability to offer alternative services, such as slower or consolidated services, that maintain high levels of reliability are still very much in demand today. Speed has certainly become less of an issue. Clients are looking to consolidate shipments, taking advantage of discounts for bulk rather than opt for the fastest option.

TCS EXPRESS - MAZHAR AYUB KHAN, VICE PRESIDENT OF GLOBAL BUSINESS With stiff competition, what are consumers demanding from their express logistics provider? The express logistics sector is very demanding and recent changes in the market have not made a phenomenal impact on consumer behavior. However, the importance of cost-effective services has increased to a certain extent and people are now interested in solutions rather than products. If you offer right solutions, you get paid for it.

Which countries and transport modes have been affected most by the recession? In terms of transport modes, airfreight experienced a regional downturn right from the start of the recession, almost two years ago, with clients leaving stock in the warehouses or factories of origin, preferring instead to cover their needs with stock from Regional Distribution Centres (RDCs). Interestingly, because some clients chose to switch from higher speed end-to-end airfreight movements to the more budget-efficient sea/air or sea/road distribution models, the industry has experienced additional pressure on mode change points.

Which countries are expected to bounce back first? Which countries and transport modes have been affected most by the recession? Countries that run on artificial economic structures, influenced by heavy debt, are really having serious issues. Due to massive defaults, banks are paying out of pocket, and liquidity is below normal with new investments projects being suspended. This has hit the transport and freight industry, as well as logistics providers. However, express freight has not been that affected.

Which are expected to bounce back first? I think of it like a chain reaction. Once manufacturing industries increase pace in terms of production, freight forwarders and logistics service providers that offer customised solutions to those given markets, will be the first to get back on their feet.

Will we see a reversion to the ‘boom’ times or has the industry irrevocably changed? At some point everything that goes up must come back down. The same holds true for a booming economy. Think about the natural law explaining the conversion of water into a gaseous state. Though the difference is minimal, water at 99ºC reacts very differently than water at 100ºC. So I wouldn’t say the market is not recoverable, because there will be a reversion. However, it will require the energy to heat to that additional degree, the boiling point, before change occurs.

Could you list the top five new rules in this market? First, be a GLOCAL service provider (think global act local). Second, develop niche markets. Third, focus on solutions rather than ready made products. Fourth, understand that less is more. Lastly, extend credit to those who are credible. It becomes mutually beneficial to both parties, as we have managed to create lasting partnerships with our most credible client base. 26 JUNE 2010 | www.arabiansupplychain.com

China has already recovered strongly whereas some of the EU countries, such as the United Kingdom, Spain or Greece have seen slower recovery, in line with their economic circumstances.

Will we see a reversion to the ‘boom’ times or has the industry irrevocably changed? Now that many of the industry’s customers have adapted to the new methods, models and importantly costs of logistics today, it would be hard for customers to see the immediate benefit of reverting to old habits. It would take a radical shift in customer needs to see any short to mid-term change in the new behaviour.

Could you list the top five new rules in this market? First, understand your clients by listening to their needs. Second, offer innovative services that meet those needs. Third, be prepared to take a longer term view on managed costs. Fourth, deliver on your promise to the customer, every time. Lastly, if you can’t deliver, be honest. If something does go wrong, let the client know and remedy it.

PROJECT UPDATE: DUBAI WORLD CENTRAL

FINAL COUNTDOWN

Dubai World Central reaches a milestone with the start of cargo operations this month. hen Dubai announces that it is building the world’s largest airport as the centrepiece of its forthcoming Dubai World Central (DWC) complex, everyone stands up and pays attention. However, even the most ambitious of projects are not invincible to delays caused by a global economic recession. Over a year later than expected, Al Maktoum International Airport is now back on track to fulfil its promise of becoming the largest passenger and freight hub on earth, with its first section, cargo operations, due to start from 27th June. The vision for the US$33 billion airport has always been hugely ambitious. Even without a global economic slowdown on the cards, the unprecedented super-hub project, Dubai World Central, in which the airport is based, was always going to be a monster to manage. The chairman of Dubai Aviation City Corporation, His Highness Sheikh Ahmed bin Saeed Al Maktoum himself promised an “unparalleled global commercial, trade and transportation hub with a unique integrated multi-modal logistics platform…. which will change all known air, land and sea transportation parameters”. As part of the team responsible for the development of the new airport in this revolutionary development, Andrew Walsh, vice president for cargo and logistics at Dubai World Central, defiantly asserts that the airport has in fact made remarkable progress considering the recent financial climate. “Construction of the airport was started in 2005/2006 and there was speculation of opening in 2008. But for such a large development that was always just unrealistic,” he argues. “Inevitably with a project of that size, it has had some issues with the construction which has led us to say that the middle of 2010 is the right date to open.” Walsh himself has only been involved in the project for 18 months, but has had the satisfaction of seeing the airport become a reality. “This is such an exciting opportunity for Dubai,” he enthuses. “I have personally been involved in making sure

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PROJECT UPDATE: DUBAI WORLD CENTRAL

the new airport is fit for purpose and that it suits our needs as the Dubai Airport’s own figures for this year also show a strong airport operator.” growth, with cargo handled in February totalling 171,707 tonnes, With the new addition of the cargo and logistics remit under his up an astonishing 26.7% from a year ago. “If you look back over belt, Walsh’s job has certainly not been an easy one. Meeting such the first two months of the year, we have seen a growth of cargo in huge expectations from the start, the airport has indeed done well DIA,” agrees Walsh. “Last year we finished the year 5.6% up when to reduce its delays and start operations. Considering the long- the rest of the world was in decline. There is definitively good growth term planning and future development of the project, this setback potential in the short, medium, and longer-term.” is unsurprisingly not one Walsh wishes to stagnate upon. Afterall, Certainly on the cargo front, Al Maktoum International promises once fully completed, the new airport will have five runways, four some very exciting facilities aimed at further driving up this passenger terminals with a potential capacity to accommodate a demand. Walsh himself is enthused by the current changes in the staggering 160 million arrivals a year and 18 cargo terminals with a way supply chains are delivered, including the increase in sea-air capacity of a whopping 600,000 tonnes. conversions. With the adjacency of Jebel Ali Port, loading freight Whilst the airport will start with a moderate, at least by its own arriving by sea onto planes at the new airport will be much faster, standards, cargo capacity of 250,000 tonnes a year, the more efficient and therefore more desirable to its facilities are geared up to handle much more. customers. “Cargo and logistics is a hot reinvigorated “The cargo terminal building has been designed for a subject in Dubai at the moment, and it is great to be “Cargo is a hot maximum of 600,000 tonnes per annum,” says Walsh. part of that,” he stresses. “We have an opportunity to subject in Dubai “We haven’t yet fitted the entire building out with all actually make Dubai an easier place to do business at the moment, the equipment we need to get up to this level, but that and to become a really competitive global hub.” and it is great to is part of our phasing process – to increase capacity as Of course, Dubai remains beautifully placed be part of that” demand increases.” geographically as a hub for the region – providing a Walsh is confident that the demand for cargo go-between for South East Europe, CIS, the Indian will continue to increase and that Al Maktoum sub-continent, Africa and the rest of the Middle East. International’s ability to offer a cargo capacity unparalleled in the Being based at the Dubai World Central super-hub with its benefit rest of the world will give it an advantage over other super-hubs. of years of forward planning, also gives the airport a distinct Dubai’s own impressive cargo traffic record supports this further. edge as a part of the integrated multi-modal supply chain. As A new report by the Airports Council International (ACI) places well as the excellent and renowned facilities at Jebel Ali port, the Dubai International Airport as fifth in the world for cargo traffic. airport’s other neighbour Dubai Logistics City (DLC) is a massive Even more impressively, Dubai saw an increase of 5.6% in cargo traffic one-stop shop for warehouses and logistics offices. With everything last year – making it one of only three airports to record a growth. in one neat location, it’s no wonder that the airport’s developer is Globally, airports in general saw cargo volumes decline by 8.2%. feeling confident about the future. These impressive statistics led the ACI report to positively conclude Unlike many other airports that are geared up specifically that the Middle East had had a “more stable overall performance for passenger flights, where cargo is almost an afterthought, Al curve” last year compared to other regions. Maktoum International has been developed with at least an equal

Construction of Al Maktoum International Airport was started in 2005/2006 and following a relatively short delay, cargo operations are scheduled to commence this month

www.arabiansupplychain.com | JUNE 2010

29 23

PROJECT UPDATE: DUBAI WORLD CENTRAL

to move across. We would like to reach 250,000 tonnes of cargo within the first year through a phasing of airline moves,” he says. Walsh remains similarly hesitant to give a date for the commencement of the passenger side of operations. “We haven’t set a date at this time,” he says noncommittally. “The passenger facility is at its final stages of construction and is substantially complete now. If you went out to the site, you’d see that we are fitting out the terminal, building the car park and forecourt area and doing finishing touches in effect.” The passenger terminal aims to have a capacity of seven million passengers, with the space to cater to 160 million annually in around 10 years time. Last year, Dubai International itself received over 40 million passengers and is now being expanded to receive 75 million by 2012. With the numbers of arrivals into the region expected to nearly double that in the next 15 years, it is clear that the existing airport will not be able to cope with this expected growth. So once cargo operations at Al Maktoum airport are successfully underway, passenger operations look set to follow. “What we didn’t want to do was to put too much pressure on the airport by opening both passenger and cargo at the same time,” Walsh states. For now, the future for the airport is looking very bright and Walsh expects this growth to continue. “What I see for DWC is that Al Maktoum International Airport has been located in close proximity to Jebel Ali Port cargo is going to incrementally grow over the next few years and importance being given to cargo operations. It is almost predictable we will keep adding capacity as the demand is there,” he predicts that the airport would launch with cargo as opposed to passenger confidently. “Tenants are taking up facilities in DLC and as that part of the community grows, there will be a demand for the airlines operations. to continue to operate out of the airport. We have a “The airport as a whole was developed on that phased master plan which increases its capacity over site as part of the vision to have a multi-modal hub the next 15 years.” predominantly built around the cargo and logistics “We would like With so many advantages and foresight behind the operations,” Walsh concurs. “A primary reason for the to reach around airport, it promises to go from strength to strength, airport to be there is that co-location with the port, 250,000 tonnes putting all delays and critics behind it. “We’ve been the development of the hub and the access to the road of cargo within the asked before how do we compare to our competitors in infrastructure at that point. It made sense for cargo first year” Sharjah and Abu Dhabi, and we actually respond that to start as that was one of the primary drivers for the our competitors are airports like Hong Kong and airport being there.” Singapore,” says Walsh. “Although we do obviously look The other key driver was to reduce the pressure on its existing sister airport, Dubai International. Almost a victim of at our regional competitors, we are in the global business here. We its own success in terms of both cargo and passenger throughput, want to take our rightful place in the world.” Dubai Airport has a limit in its capacity to handle the growth expected in the future. “We are certainly moving up in ranks as the largest cargo airport in the world and we know that in the foreseeable future there is going to be pressure on that in terms of our overall capacity,” admits Walsh. “It made sense to make cargo the first move at the new airport to help start relieving some of pressure on Dubai International.” With the new airport being viewed as a solution to Dubai’s potential future aviation constraint, it is envisaged that together both the airports will be able to handle the region’s growing cargo and passenger numbers. “We are predominantly looking at moving airlines from Dubai International rather than taking new airlines in at this point, as we recognise that there needs to be some relief of some of the pressure there, “ says Walsh. “This may even lead to a modification of the cargo facilities, with Dubai Airport cargo operations predominantly being around the belly-hold cargo within the passenger aircraft.” Unfortunately due to confidentiality, Walsh has to remain quiet about which airlines have already signed up to join the airport in the near future. There has been talk that the region’s flagship carrier, Emirates Airlines, will be delaying its relocation to the new airport by up to 10 years. Walsh however, remains optimistic. “Our first phase is to show the potential to the airlines and encourage those airlines Passenger terminals at the mega airport are expected to begin operations in 2012 30 JUNE 2010 | www.arabiansupplychain.com

OMAN COUNTRY REPORT

Sultanate

success With its deep-rooted traditions in early logistics, Oman is now renewing its quest to become a modern-day logistics leader, explains Warith Al Kharusi, chairman of Oman Logistics Association.

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OMAN COUNTRY REPORT

man has a strong heritage in logistics, with a seafaring tradition dating over 4000 years. The ancient town of Salalah itself houses the ruins of the fortified town of Sumharam, a port city that controlled the thriving maritime trade of frankincense back in 100BC-400AD. From the old silk routes to the camel trains used to transport wares, one could say that logistics has long been in the blood of the Omani people. The country’s economy has shown a steady growth over the past 40 years, with the government encouraging both private and foreign investments into the country. With regional trade and consumer demand for imports on the rise, logistics firms are Cargo volumes are steadily increasing in Oman, with billions of dollars being invested to develop port facilities increasingly being drawn to Oman as their regional base for operations. With the firm backing of the country’s All three of the region’s main ports, Sohar, By taking steps to streamline customs visionary ruler Sultan Qaboos Bin Saeed, Salalah and Sultan Qaboos, recorded growth procedures and improve road safety, Oman’s Oman’s government has been eager to invest in terms of cargo volume this year. The Port of agenda is definitely focused on attracting in its transport hubs and road infrastructure, Sohar is promising even bigger developments in international firms into its field. “Oman wants despite the recent global economic recession. the future, with more than US$12 billion being to be a global player with responsibility and The key driving factor behind this has been pumped in for its development in a joint venture is environmentally conscious as well,” agrees the government’s agenda for diversification – agreement between the government and the Al Kharusi “International players will feel moving away from sole reliance on its successful Port of Rotterdam through the Sohar Industrial confident with such solid standards.” The country recognises that the key to the oil and gas industry and looking at other ways Port Company (SIPC). to supplement the country’s GDP. The airports too have been undergoing a successful growth of its logistics industry “If anything, the government has used the major transformation, with the country’s main lies in what Al Kharusi has termed ‘strategic recession as a stimulus for growth,” comments hubs in Muscat and Salalah due to grow five-fold partnering’. “Oman encourages having Warith Al Kharusi, chairman of the country’s in the next five years. New regional airports are global strategic partners to give it a leapfrog recently formed logistics forum – OLA (Oman in the pipeline including in Haima, Sohar Ras opportunity,” he highlights. “If you have Logistics Association). “Oman views the growth Al Had and Duqm. One of the leading strategic partners who already have a lot of as part of the country’s diversification and hydrocarbon exploration and production knowledge and expertise together with a local there is no doubt that the logistics industry is company, Petroleum Development Oman partner that has the right infrastructure and going to play a huge part in this.” (PDO), has itself built three private airports to resources, the growth potential is explosive.” Indeed the country has become a living The past ten years have been testimony to support its oil and gas activities. A rail network this commitment, as the region has seen vast providing connectivity between Sohar and testimony to this philosophy, with many of its improvements in the size and Muscat with a hub in Barka is most successful ventures coming from a strong efficiency of its transport hubs also on offer, with plans for the strategic partnership base with a global player. “If anything, and road infrastructure. Even rapid extension of the network. For example, current logistics partnerships forty years ago, Al Kharusi the government All these facts considered, one include US-based BDP International’s points out, Oman only had can fully appreciate why global joint venture with Oman’s Mustafa Sultan has used the a handful of cars on a few players will be drawn to Oman’s Enterprise to offer international logistics and recession as supply chain solutions. Dubai’s own Aramex kilometres of road. “Today we growing logistics proficiency. a stimulus for are looking at thousands of Being able to offer lower costs also has a joint venture with Oman’s Zubair growth” kilometres of excellent roads, and higher resource availability Corporation to build an integrated logistics dual carriageways and supercompared to some of its Middle centre in the sultanate. The newly-forming OLA has an important highways,” he adds. Eastern neighbours, Oman has been working As well as road infrastructure, Oman has hard to sell its attractiveness to the outside role to play in the market’s growth. “For Oman been investing heavily into its ports and reaping world. Building on its free trade agreements, the to support its development and attractiveness the benefits. The Port of Salalah is recognised Sultanate is keen to boost up the development of to international players, the logistics profession as one of the fastest growing ports in the world, free zones to encourage more global businesses has to be grown,” says Al Kharusi, who is also offering a reduction in sailing time for ships into the region. “The free trade zones are now chairman of the forthcoming TransOman 2010 coming from Europe and traveling to the Far available where international companies can event. “Institutes such as Sultan Qaboos East. “In terms of a strategic geographical area work 100% independently,” explains Al Kharusi. University and Sohar University are taking a of Oman, it is well placed out in the sea, with a “The country views investment as a joint leading role in building the right curricula in coastline of 1800km. Plus you don’t have the affair, by encouraging investment and allowing logistics and skills training. We also want to restriction of the bottlenecks found in the Gulf good commercial governance in a mature way encourage young people to be attracted to the industry, and give them better guidance.” or the Red Sea,” emphasises Al Kharusi. to make global companies feel very secure.” www.arabiansupplychain.com | JUNE 2010

OMAN COUNTRY REPORT

OMATNICS S I G O L VIEW RE the yers in Key pla te’s fastSultana g supply in develop sector. chain

SOHAR INDUSTRIAL PORT COMPANY (SIPC) The Industrial Port of Sohar, a 50/50 joint venture between the government of Oman and the Port of Rotterdam, has been managed by SIPC since 2002. With investments in excess of US$14 billion, this deep sea port represents is one of the world’s largest port development projects. With the development of the multi-modal logistics hub, Freezone Sohar, in the pipeline, the company promises big things in the future for Oman’s logistics industry. SIPC has reported extraordinary growth at the port last year, with cargo throughput increasing by 39%. “Oman and more specifically Sohar as a logistical hub, has a unique geographical position for serving the GCC countries,” says Jan Meijer, CEO of SIPC. “Besides that, the excellent and always expanding and never congested land infrastructure, together with business friendly government agencies, makes doing logistic activities from Oman surprisingly easy and economical.”

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GULF AGENCY COMPANY (GAC) One of the longest standing international players in the country, GAC Oman has had a presence since 1971. With extensive coverage throughout the Middle East, GAC Oman is now one of the leading shipping and forwarding agents in the country. The company has a network of offices throughout Oman, and a warehouse located in Muscat. Priding itself on excellent employment practices, the company was presented with an award by the government last year

CEVA LOGISTICS A merger between TNT logistics and EGL (Eagle Global Logistics), CEVA Logistics provides both freight management and contract logistics services in the Sultanate. “Oman offers a very stable environment with increasing opportunities both in terms of new projects and forwarding activities,” says Colin McKinlay, Middle East director of freight management at CEVA Logistics. “This is a good fit with CEVA in line with our global reach, combined with our local knowledge and expertise developed over the past 28 years since we opened in Oman.” CEVA Logistics already has a strong presence in the Middle East, and in particular Dubai, where it is currently developing a new 63,000m2 warehouse and office facilities in Jebel Ali Free Zone. This provides regional hub capabilities to support its entire Middle East region activities, including Oman.

for its recruitment of local workers and commitment to government employment policies. “To be involved in the growing business opportunities, GAC is wellpositioned to capitalise due to our long establishment,” says Patrik Hallden, general manager of GAC Oman. “We have full coverage in all major cities and ports within the Sultanate, and more importantly, our teams of highly experienced professionals are ready to walk ‘that extra mile’ wherever our customer goes.”

OMAN COUNTRY REPORT

AL MADINA LOGISTICS (AMLS)

OMANI INTEGRATED LOGISTICS SERVICES (ILS)

Al Madina Logistic Services Company was one of the first ‘home grown’ 3PL operators to realise opportunities in the region. “As Oman continues its progressive and aggressive development plans to further increase and improve its current entry ports (both sea and air), there is no doubt the country is an ideal location for logistics operators to succeed both with mid-term and long-term plans,” says Mahmood Sakhi Albalushi at AMLS. “The current government is pro-business and well-respected, and the Sultanate of Oman has proven to be the most resilient economy during the meltdown allowing business operators to sail through it unscathed.” The company itself has recently doubled its transportation fleet size to go-live with the first and only privately-owned Inland Container Depot (ICD) situated in Oman. Al Madina Logistics also recently appointed a consulting engineering firm to work on a new stateof-the-art distribution centre with multiple temperature regime and automations, to be located next to its ICD.

A fast–growing company capitalising on Oman’s recent demand for professional logistics services, ILS is a supply chain management and logistics services provider, offering integrated supply chain solutions to customers such as Alhassan, DHL, Weatherford, Future Pipes, Salalah Power and Desalination Plant, amongst others. “Oman is witnessing greater growth in terms of logistics movement as markets continue to improve, offering immense growth opportunities,” says Mohammed Hassan Al-Theeb, CEO of Integrated Logistics Services. “In order to efficiently meet industry requirements, we try to innovate tailor made solutions to client specific requests.”

ARSHIYA LOGISTICS

ARAMEX-ZUBAIR CORPORATION Earlier this year, Aramex announced a joint venture agreement with the Zubair Corporation, a prominent regional business conglomerate, to offer integrated services such as warehousing and distribution, sea, air and ground transportation, freight forwarding and customs brokerage to businesses in the Sultanate. “In line with ongoing infrastructure development activities, we believe that we have the right expertise and product mix to serve the evolving needs of business in Oman,” says Iyad Kamal, chief operating

officer at Aramex. “The development of port cities such as Salalah and Sohar is attracting foreign investment through the provision of a state-of-the-art business infrastructure.” Kamal also points to the creation of hubs such as Freezone Sohar to provide direct, immediate access to a fully equipped warehousing and business-processing zone, with the highest regulatory and compliance standards. “These are all important positive factors that will lead to the further development of Oman as a regional and international logistics hub,” he adds.

In 2007, leading US logistics company BDP International, through its partner Arshiya Technologies International, joined with Oman’s Mustafa Sultan Enterprises to provide supply chain services to the region. As well as Oman, BDP has offices in Dubai, Qatar and other strategic partnerships throughout the region. “Oman is one of the core growth markets in the Gulf region,” says BDP president and CEO Richard Bolte. “By sharing our resources, notably logistics information technology tools, we bring a fresh, more customer focused presence to companies conducting trade into and out of Oman.”

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OMAN COUNTRY REPORT

PREMIER LOGISTICS GROUP (PLG) For over 30 years, one of Oman’s leading logistics players, PLG has been providing logistics and operational support to both local and global customers throughout Oman and the GCC region with its operating companies. These include Premier Logistics Muscat (PLM), Truckoman, Trucksaudi, Premier Baltrans Middle East, Haima Industrial Management Services and Majan Shipping and Transport. “Oman’s growth now requires a truly national logistics business such as Premier Logistics to have regional operational centres close to our customers,” says Lindsay Ogilvy, commercial director at Premier Logistics Group. “We also believe in being able to provide from within our own resources or by working with selected approved subcontractors for all of the logistics solutions that customers require.” Offering everything from end-to-end global logistics to the ‘design, build and lease’ of facilities, the group’s primary clients include companies in oil and gas, construction, engineering, military, retail as well as the royal offices. “The logistics business is working hard to ensure that customer services are developing and also, through the formation of proactive bodies, we are actively trying to develop the people who work within it,’’ Ogilvy adds.

KHIMJI RAMDAS SHIPPING & LOGISTICS DIVISION Part of the Khimji Ramdas Group, Oman’s long-established business conglomerate, the company’s active shipping and logistics division has been steadily growing, providing mainly sea freight and container transport services, as well as vessel operations, repairs and maintenance. Projects and Logistics Group chief executive officer, MC Jose, believes that Oman’s geographical position

BAHWAN DHL EXEL SUPPLY CHAIN A merger between hybrid technology solutions provider Bahwan Cybertek and DHL Exel Supply Chain, Bahwan DHL Exel Supply Chain provides complete supply chain logistics solutions, with a focus on the oil and gas sector. Amongst its customers, Bahwan DHL Exel Supply Chain provides fourth-party logistics (4PL) services to oil exploration and production leader Petroleum Development Oman (PDO). As well as cargo haulage and transportation services, the company provides logistics services for engineering, procurement and construction 36 JUNE 2010 | www.arabiansupplychain.com

has given the company a strong advantage, together with its quickly improving transport systems, such as the rail network and container ports. “The user-friendly regulations and the proactive approach of the government make the country even more attractive for logistics business,” he says. “Furthermore, Oman has a large number of qualified nationals, hence an uninterrupted service can be provided to the customers on a long-term basis.”

projects, such as pipeline installations and replacements. It also offers materials supply and service contracts, such as pipeline installations and down-hole services. “Oman’s economy is expanding rapidly, boosted by significant oil exploration, production and refining activities,” says Paul Spyropoulos, country managing director, Bahwan DHL Exel Supply Chain. “These industries call for the best logistics and transport solutions. Bahwan DHL Exel Supply Chain is capable of providing clients with both third and fourth party logistics solutions for the total supply chain.”

JUNE 2010 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

he fourth annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this month, with over 250 figureheads from the Middle East logistics industry in attendance. Hosted at the Grosvenor House hotel in Dubai, the prestigious ceremony was organised by ITP Publishing Group and featured 16 categories in total, which covered the entire spectrum of supply chain and transportation activities. “Since its inception in 2007, the Supply Chain and Transport Awards have emerged as a leading event for the Middle East logistics industry. Given the market challenges that our industry is facing on a global level at the moment, this was the perfect opportunity to remember those companies and individuals that continue “Award ceremonies in general are to achieve excellence on a daily basis,” important in defining the benchmark for states Issa Baluch, Founder of Swift Freight excellence and separating the outstanding International, who served his fourth term achiever from the rest of the group,” continues on the judging panel this year, alongside Baluch. “They also provide recognition to Salma Hareb (CEO of Economic Zones the best performers in the field, while World), Captain Mansoor Ghafoor (CEO of inspiring others to emulate their success.” STALCO Group and president of One of the night’s biggest National Association of Freight winners was Abu Dhabi-based “Award “Aw and Logistics), Ali Al Jallaf (vice Maximus Air Cargo, which took ceremonies are the award for Cargo Operator of president of Dubai Airports important in cargo unit), Dr Kanak Madrecha the Year (Cargo Airline / Charter), (senior manager of Dubai World while CEO Fathi Buhazza was defining the and founding member of the benchmark nchmark for selected for the SCATA Hall Supply Chain and Logistics of Fame with a staggering excellence” Group), Cedwyn Fernandes 43.5% of the votes. Aramex (MBA programme coordinator also had a successful year, at Middlesex University Dubai) and Sebastian scooping the Express Logistics Provider and Thomas (head of supply chain at ZAFCO). Outstanding Achievement of the Year trophies. The panel also welcomed the addition of Other winners included Al-Futtaim Alex Borg, regional director of Chartered Logistics for 3PL Service Provider of the Year, Saudi Arabia’s Tamer Group for FMCG Institute of Logistics and Transport (CILT). Supply Supp Chain of the Year, and Jebel Ali Free Zone for Industrial Area of the Year. Also continuing its winning streak, Dubai conti International Airport was declared Air Inter Cargo Hub of the Year – making it the Carg only company that has been selected as winner in its respective category for four win consecutive years. con “Th “ e standard of nominations at this year’s yea Supply Chain and Transport Awards was wa very impressive, highlighting the opportunities that are constantly being op presented to ambitious individuals and pr companies in the Middle East logistics co industry,” says Walid Akawi, CEO of ITP in Publishing Group. “We look forward to Pu 2011, when the SCATA ceremony will 2 return once again to reward the industry r for f excellence.”

2010 SCATA AWARD WINNERS EXPRESS LOGISTICS PROVIDER OF THE YEAR Aramex 3PL SERVICE PROVIDER OF THE YEAR Al-Futtaim Logistics FMCG SUPPLY CHAIN OF THE YEAR Tamer Group LOGISTICS HUB OF THE YEAR Jebel Ali Free Zone CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE) Emirates SkyCargo CARGO OPERATOR OF THE YEAR (CARGO AIRLINE / CHARTER) Maximus Air Cargo AIR CARGO HUB OF THE YEAR Dubai International Airport SHIPPING COMPANY OF THE YEAR APL Shipping SHIPPING AGENT OF THE YEAR Gulf Agency Company (GAC) SHIPPING PORT OF THE YEAR Jebel Ali Port, Dubai TECHNOLOGY SOLUTIONS PROVIDER OF THE YEAR Supply Network Solutions (SNS) MATERIAL HANDLING PROVIDER OF THE YEAR Al-Futtaim Auto & Machinery Company (FAMCO) TRAINING AND EDUCATION PROVIDER OF THE YEAR University of Wollongong, Dubai CSR OF THE YEAR AWARD Economic Zones World (EZW) OUTSTANDING ACHIEVEMENT OF THE YEAR AWARD Aramex HALL OF FAME AWARD Fathi Buhazza (Maximus Air Cargo)

www.arabiansupplychain.com | JUNE 2010

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

SCATA 2010 LOGISTICS CATEGORIES EXPRESS LOGISTICS PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: ARAMEX

Express Logistics Provider of the Year is et awarded to the service provider that has delivered a portfolio of market er leading solutions within the Middle East’s express logistics sector over the past 12 months. Companies were asked to provide evidence of exceptional performance in the field of express logistics, includingg network coverage, volumes transported and world-classes facilities.. This year’s finalists included the international heavyweights DHL, FedEx, TNT Express and UPS, while the winner was the Middle East’s very own Aramex, which was selected for revising its service portfolio to support customers through the global economic downturn, including the launch of its Value Express product last year.

Previous category winners: DHL Express (2007), DHL Express (2008) and TNT Express (2009)

“Being known in the Middle EEastt region gi iis something thi g th thatt A Aramex h has b been working to achieve for a long time. Now we are expanding into regions such as Europe and the United States, and anywhere that helps people to know about Aramex. This award will help us to achieve that type of global recognition.” George Abi Daoud, supply chain manager UAE, Aramex

3PL SERVICE PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: AL-FUTTAIM LOGISTICS

3PL Service Provider of the Year is awarded ed ly to the service provider that has delivered a pioneering range of supply L chain solutions in the Middle East over the past 12 months. 3PL companies were asked to provide evidence of exceptional performancee in the field of supply chain management, including storage facilities,, distribution services and value-added solutions. This year’s finalistss included Aramex, CEVA Logistics, Danzas and Gulf Agency Companyy (GAC). However, the winner was Al-Futtaim Logistics, which received the award for successfully re-structuring its operations in preparation for a market recovery this year, with its delivery KPIs increasing from lows of 89% in 2008 to average peaks of 98% in 2009.

Previous category winners: Agility (2007), Aramex (2008) and GAC Logistics (2009)

“This is recognition of the hard work k th thatt th the tteam h has provided id d in i reinventing i ti g our company over the past year. We’ve had to switch our long-term business model in line with new market realities. This trophy is a confirmation from the market base that we have made the right decisions in a very challenging environment.” Tom Nauwelaerts, head of logistics, Al-Futtaim Logistics

www.arabiansupplychain.com | JUNE 2009

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

FMCG SUPPLY CHAIN OF THE YEAR WINNER: TAMER GROUP

CATEGORY SPONSOR

Awarded to the Fast Moving Consumer Goods ds st (FMCG) company that has helped to raise standards in the Middle East et logistics industry with their supply chain operations. Examples of market n innovations, regional investments and responsible practices were taken into account by the judging panel. This year’s finalists included Al Hassani Group, Arabian Trading Supplies, NAPCO Group and Saudii Industrial Projects Company (SIPCO). After much deliberation, Saudii Arabia’s pharmaceutical expert Tamer Group was selected as thee winner for the successful opening of its world-class warehousing facility in the Alkhomra district of Jeddah, which measures 32,000 square metres and has been credited for creating a new benchmark for excellence in the Kingdom.

Previous category winners: Al-Futtaim Retail (2007), Nikai (2008) and Unilever (2009)

“This is a fantastic achievement for Tamer Group. The award has shown that our company has taken its supply chain operations very seriously and we have also set an example for other companies that operate their warehousing and transportation in Saudi Arabia. We would like to thank the SCATA judging panel for this honour.” Toufiq Chawdhury, national distribution manager, Tamer Group

LOGISTICS HUB OF THE YEAR WINNER: JEBEL ALI FREE ZONE

CATEGORY SPONSOR

Logistics Hub of the Year is awarded to the he he industrial area or free zone that provides world-class services to the s, Middle East logistics industry, with exceptional business incentives, er warehousing and distribution infrastructure, marketing and customer ai service. This year’s finalists were Aqaba Special Economic Zone, Dubai e Industrial City, Kuwait Free Trade Zone and Ras Al Khaimah Free Trade e Zone. After winning this category in 2007 and 2008, Jebel Ali Free Zone was selected once again in 2010, coinciding with the celebration of its 25th anniversary of operations. The judges were impressed with various investments at Jebel Ali Free Zone over the past year to improve infrastructure, in addition to a recent partnership with Dubai Logistics City, which will lead to numerous benefits for the industry.

Previous category winners: Jebel Ali Free Zone (2007), Jebel Ali Free Zone (2008) and Ras Al Khaimah Free Trade Zone (2009)

“We would like to thank the judging panel of the Supply Chain and Transport Awards for this honour, which has given Jebel Ali Free Zone the edge and will mean a lot for our future development too. As a leading hub for the Middle East, this award gives the entire team assurance that we’re still number one.” Tariq Saqer Bin-Ghalaita, vice president commercial, Economic Zones World

42 JUNE 2009 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

SCATA 2010 AIR CARGO CATEGORIES CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE) WINNER: EMIRATES SKYCARGO

CATEGORY SPONSOR

Awarded to the cargo division of a commercial al he airline that has delivered a consistent industry-leading service in the es Middle East and across the world over the past 12 months. Companies h were asked to provide evidence of exception performance, with g examples of cost or time savings for end customers, especially during the global economic downturn, in addition to responsible practicess and innovations. This year’s finalists were Etihad Crystal Cargo, Qatar Airways Cargo, Royal Jordanian Cargo and Saudi Arabian Airlines Cargo. However, the winner was Emirates SkyCargo, which carried 1.4 million tonnes of cargo in the 2008-2009 financial year, marking an improvement of 9.8% over the previous year.

Previous category winners: Emirates SkyCargo (2007), Etihad Crystal Cargo (2008) and Emirates SkyCargo (2009)

“The award is a true endorsementt ffrom th the customer t and d th the aviation i ti iindustry d t for f a job well done. We are experiencing growth but last year we were going through a turbulent time. Still, we were able to manage our product and service quality, so the SCATA trophy is testament to the great success of Emirates SkyCargo.” Pradeep Kumar, senior vice president of cargo - revenue optimisation, Emriates

NE) CARGO OPERATOR OF THE YEAR (CARGO/CHARTER AIRLINE) WINNER: MAXIMUS AIR CARGO

CATEGORY SPONSOR

Awarded to the independent cargo operator or st charter that has delivered a market-leading service in the Middle East re and throughout the world over the past 12 months. Companies were asked to provide evidence of exceptional performance, with exampless of challenging assignments, cost and time savings for customers,, responsible business practices and global innovations. This year’ss finalists were Cargolux, Midex Airlines, National Air Cargo and Russ 8 Aviation. Beating the competition and reclaiming its title from 2008 was Abu Dhabi’s very own Maximus Air Cargo, which celebrated record profit in the past year and remains the largest dedicated cargo aircraft operator in the United Arab Emirates.

Previous category winners: ACT Airlines (2007), Maximus Air Cargo (2008) and Cargolux (2009)

“While it’s not been an easy year for f th the aviation i ti iindustry, d t M Maximus i Ai Air C Cargo g has h continued its efforts to raise standards within the Middle East over the past 12 months. This award is really a tribute to our entire team, because without their hard word and dedication, our vision would never become a reality.” Fathi H. Buhazza, president and CEO of Maximus Air Cargo

44 JUNE 2010 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

AIR CARGO HUB OF THE YEAR CATEGORY SPONSOR

WINNER: DUBAI INTERNATIONAL AIRPORT (DXB)

Awarded to the airfreight facility that has consistently delivered worlddd class services across the Middle East over the past 12 months and s. contributed to the region’s status as a global hub for cargo operations. h Facilities were asked to provide evidence of exceptional performance, with examples of solid cargo volumes, despite the global market downturn,, e in addition to business incentives, technical innovations and new airline partnerships. This year’s finalists were Abu Dhabi International Airport, Bahrain International Airport, Kuwait International Airport and Sharjah International Airport. However, the winner for the fourth consecutive year was Dubai International Airport.

Previous winners: Dubai International Airport (2007, 2008 and 2009)

“It’s an honour to receive this award ard on behalf of Dubai International Airport for the fourth year in a row. I believe we are now the only company that has won the same category at the Supply Chain and Transport Awards four times in a row, which is a matter of pride for everyone involved, thanks very much.” Abdullah Mohammed Bin Khediya, senior general manager, Dubai Cargo Village

SCATA 2010 SHIPPING CATEGORIES SHIPPING AGENT OF THE YEAR CATEGORY SPONSOR

WINNER: GULF AGENCY COMPANY

Awarded to the shipping agent that has delivered ed al a ground-breaking service across the Middle East and to international markets in the past 12 months. Agents were asked to provide evidencee of exception performance, with examples of cost or time savings forr end customers, service innovations and responsible working practices.. This year’s finalists were Inchscape Shipping Services (ISS), Maerskk Kanoo, Rais Hassan Saadi (RHS) and STALCO, while the winner wass Gulf Agency Company (GAC) for handling 14,000 port calls regionally in 2009 - the same number as the previous year, despite a series of challenges from the global economic recession.

Previous category winners: Gulf Agency Company (2007), Maersk Kanoo (2008), Rais Hassan Saadi (2009)

“With a number of market challenges nges in the Middle East shipping sector in the past year, it’s important to remain pro-active and ensure you are supporting customers through the downturn. This award has proved that Gulf Agency Company has achieved these goals and its therefore a very proud moment for the company.” Captain Gobind Kukreja, general manager of tanker shipping services, Gulf Agency Company (GAC)

www.arabiansupplychain.com | JUNE 2010

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

SHIPPING COMPANY OF THE YEAR WINNER: APL SHIPPING

CATEGORY SPONSOR

Awarded to the ship owner that has delivered ed re a standout performance in the sea freight sector. Applications were nd accepted from, but not limited to, container, Ro-Ro, dry bulk and t, LNG carriers. Examples of service enhancements in the Middle East, regional staff training, environmental responsibility and cargo securityy were taken into account by the judging panel. This year’s finalistss were Maersk Line, MISC Berhad, National Shipping Company off Saudi Arabia (NSCSA) and United Arab Shipping Company (UASC). However, winning this category for the first time was international market leader APL Shipping, which has celebrated a successful year with its extensive weekly feeder service in the Middle East, supported by a service network that covers a number of different countries around the world.

Previous category winners: Maersk Line (2007), National Shipping g Company of Saudi Arabia (2008) and Maersk Line (2009)

“We’re very, very humbled to receive the Shipping Company of the Year award at the SCATAs. It has been a long year and this is a testament to all the effort we’ve put in during these challenging times. It’s been a case of going back to basics and I think the APL team has worked very hard to achieve that.” Ajay Krishnan, United Arab Emirates managing director, APL Shipping

SHIPPING PORT OF THE YEAR WINNER: JEBEL ALI PORT

CATEGORY SPONSOR

Awarded to the shipping port or terminal that has as delivered a world-class service to regional and international customers in ce the past year. Authorities and operators were asked to provide evidence h of exceptional performance in the field of terminal management, with oexamples of innovative solutions and improved efficiencies in day-tog day operations, health and safety, and customer service. The judging d panel also took into account forward-looking investments that helped e to support the Middle East’s status as a world-class superhub for the maritime sector. This year’s finalists were Khalifa Bin Salman Portt (Bahrain), Khorfakkan Container Terminal (Sharjah), Port of Sohar (Oman) and Fahad Industrial Port (Saudi Arabia). The winner, and regional market leader, was Jebel Ali Port in Dubai, which is operated by DP World.

Previous category winners: DP World (2007), DP World (2008), Gulftainer er (2009) {this category was previously Port Operator of the Year}

“To receive the Shipping Port of the Year award is a very welcome honour. This has showcased our achievements, despite competition in the region, so we thank the Supply Chain and Transport Awards for allowing DP World to compete and benchmark its activities with others in the Middle East market.” Abdulla Bin Damithan, director of account management, container terminals, DP World UAE Region

46 JUNE 2010 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

SCATA 2010 JUDGE’S AWARD CATEGORIES TECHNOLOGY PROVIDER OF THE YEAR WINNER: SUPPLY NETWORK SOLUTIONS (SNS)

CATEGORY SPONSOR

As logistics operations become more technological, this award recognises es gthe company that has supplied the Middle East market with cutting), edge solutions, such was warehouse management systems (WMS), radio frequency identification (RFID), handheld scanners and fleett management solutions. This year’s finalists were Datalogic, Ehrhardtt + Partner Solutions (EPS), Exactus and Log Cubes. However, thee judging panel selected Supply Network Solutions (SNS) as the winner for helping customers throughout the region to achieve a decrease in operations costs of more than 15% and an increase in labour productivity of more than 20%.

Previous category winners: Psion Teklogix (2007), Business System Groups - BSG (2008) and Ehrhardt + Partner Solutions - EPS (2009)

“I am very proud to represent Supply l N Network t kS Solutions l ti att thi this prestigious tigi event. t We are very happy that our achievements have been recognised at these awards and although we started with a small team, the company has continued to grow its customer base each year, even through the recent market challenges.” Mohammed Obaidah, director of services, Supply Network Solutions (SNS)

MATERIAL HANDLING PROVIDER OF THE YEAR WINNER: AL-FUTTAIM AUTO & MACHINERY COMPANY (FAMCO)

CATEGORY SPONSOR

Recent innovations in material handling have created an exciting market et is for products such as pallets, forklift trucks and warehouse racking. This category is aimed at suppliers that are helping companies in the Middlee g East to increase their supply chain efficiency and reduce their operating costs with world-class products. This year’s finalists were CHEP, Kanooo e Machinery, SSI Schaefer and SPAN Group. However, reclaiming its title from the inaugural ceremony in 2007 was Dubai-based Al-Futtaim Auto & Machinery Company (FAMCO), which has continued to invest in its diversee product portfolio, despite a regional slowdown in the material handling market.

Previous category winners: Al-Futtaim Auto & Machinery Company FAMCO (2007), SSI Schaefer (2008), SPAN Group (2009)

“Receiving the Material Handling Provider of the Year award is excel excellent llentt news for the FAMCO team. During the bad h good d times and d the h b d times, our principles l have remained the same and FAMCO has strived for quality. We thank the judging panel of the Supply Chain and Transport Awards for this honour.” David Dronfield, UAE divisional manager, storage and handling solutions division, FAMCO

48 JUNE 2010 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

TRAINING AND EDUCATION PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: UNIVERSITY OF WOLLONGONG IN DUBAI (UOWD)

With increasing demand for qualified professionals in the Middle East st ng logistics sectors, this award recognises the achievements of a leading training provider or educational institute that offers a flagship course or e series of courses on supply chain management. This year’s finalists were Dubai Trade, Emirates Aviation College, SP Jain Centre of Managementt and University of Bolton in Ras Al Khaimah. However, celebrating itss e first win at the Supply Chain and Transport Awards (SCATA) was the University of Wollongong in Dubai, which launched its well-regarded Master of Science programme in 2009, with a steady increase in student intakes each semester. The course is a follow-up to the University of Wollongong’s successful logistics offering in Australia.

Previous category winners: Gulf Agency Company (GAC) Academy P (2007), Gulf University of Science and Technology - GUST (2008) and SP Jain Centre of Management (2009)

“Winning our first Supply Chain and Transport Award is very exciting. Logistics has remained a very important part of our curriculum and we are very proud of this achievement. In fact, one of our graduates is representing a big company at this ceremony, which further highlights what we are achieving in this industry.” Professor Rob Whelan, president of University of Wollongong

CORPORATE SOCIAL RESPONSIBILITY (CSR) AWARD CATEGORY SPONSOR

WINNER: ECONOMIC ZONES WORLD

Awarded to the organisation that has as rs, taken responsibility for the impact of their activities on customers, ng employees, shareholders, communities and the environment, covering as all aspects of their operations in the Middle East. This category has er grown in popularity over the years and received the highest number x, of nominations in 2010. This year’s finalists were Agility, Aramex, Maximus Air Cargo and TNT Express. However, with an impressivee nomination entry, the judges selected Economic Zones World (EZW), which successfully launched its industry-leading CSR strategy with five focus areas, covering the environment, corporate governance, excellence, community involvement, and sponsorship and donations. The results have showcased the levels that can be reached in CSR excellence within the Middle East.

Previous category winners: Arab Shipbuilding & Repair Yard - ASRY RY (2007), Jebel Ali Free Zone Authority (2008) and Gulf Agency Company (2009)

“This award is all about what it means for future generations. We have a very serious challenge in front of us – and that’s the environment we live in. What we’re doing is leading by example, sharing our experience and getting other people to go on the journey with us. This award will highlight the cause to others.” Pat McGillycuddy, chief operating officer, Economic Zones World

www.arabiansupplychain.com | JUNE 2010

SUPPLY CHAIN AND TRANSPORT AWARDS 2010

OUTSTANDING ACHIEVEMENT AWARDS WINNER: ARAMEX

CATEGORY SPONSOR

Awarded to the company that has experienced ed rt a breakthrough year within the Middle East’s supply chain and transport n industry. Companies were asked to provide evidence of exception et performance in all areas of business, from financial results and market innovation to regional investments and future planning. This year’ss finalists were Abu Dhabi Airports Company (ADAC), CEVA Logistics,, Gulf Agency Company (GAC) and Maximus Air Cargo. However, collecting its second trophy at the SCATAs 2010 was Aramex, which is undoubtedly a name to reckon with in the Middle East and throughout the world, often used as a case study for its successful operations.

Previous category winners: DP World (2007), Jebel Ali Free Zone Authority - Jafza (2008) and Gulf Agency Company - GAC (2009)

“Winning an outstanding achievement ievement award in this region is amazing amazing, to be honest with you. The competition here is really great and this sets us apart as a great provider in the region. The hard work of the team and everybody in Aramex throughout the region has really paid off – this is the pinnacle of that.” Fredrik Lindblad, regional logistics manger, Aramex

SCATA 2010 HALL OF FAME AWARD

W FATHI B INNER: OF M A X U H A Z Z A , C EO IMUS A For the IR C A R first tim Chain a GO e eve nd

CATEGORY SPONSOR

r, the S Transpo a categ upply rt Aw o of Fame ry for public vo ards (SCATA) o pened ti aw ng. The p the Mid ard honours a respecte restigious Hall dle Eas valued t logisti d figure co cs head fr om the ben ntribution to th industry that has ma chmark e secto de a r’s grow for regio Fadi Gh th, whil andour nal exce e raisin (CEO of ll Khalifa g Aramex ence. The fina (chairm ) li , sts were a S n h Ports), o a f ik B h a D hrain’s Ram M aij bin S G e alman Al Muall nen (Emirates eneral Organis ation of Al em (ma SkyCar Sea go), and n Region) . The w aging director of DP W Mohammed inner, w Fathi B it orld, UA h 43.5% uhazza, E of th CEO of Maximu e votes, with s Air Ca rgo. Previou s winn Bin Sula er: Sultan Ahm yem (D P World ed )

upply pp y Chain and Transport p t Awards Award ds that is decided “This is the only category at the Supply by the public, so thanks to everyone one that voted for me. Setting your y ambitions high and attempting to achieve them with true, honest values is sometimes difficult. However, this has shown me that at over time, people will recognise those efforts.” Fathi H. Buhazza, president and CEO of Maximus Air Cargo

50 JUNE 2010 | www.arabiansupplychain.com

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SCOUTING FOR TALENT QUESTION: How can logistics companies develop a solid relationship with their recruitment partners? THE ADVANTAGES OF PARTNERING WITH A RECRUITMENT FIRM

LOOKING AT MARKET CONDITIONS AND QUALITY OF CANDIDATES

THE KEY TO A SUCCESSFUL CLIENT-RECRUITER RELATIONSHIP

As demand increases for qualified logistics professionals in the Middle East, more and more companies have started to outsource their recruitment processes. From an efficiency point of view, it makes sense to utilise the services of an expert in the field, allowing you to focus on core operations.

There are candidates in the marketplace that are immediately available. Clients will often believe that candidates may accept a salary reduction to move or will be flexible to obtain a long-term position. This may have been the case last year, however in the current market experienced candidates are employed and are looking for new incentives to move. Incentives can range from higher salaries to promotions and training. Stronger candidates certainly need reason to leave a secure position. A good recruiter will always be honest in relation to what they can or cannot deliver. Whether it be meeting the expectations of the candidate or satisfying the demands of the client. The recruiter will always look to establish a long-term, rather than short-term relationship.

Communication is the key to ensure a relationship is long-term and remains positive. A consultant should always advise their client on current salaries in the marketplace, agree on the ideal candidate and decide whether this is feasible in order to manage the client’s expectations. A professional recruiter will do a market comparison and advise the client on the best approach to their recruitment needs, whether it be contingency, retained search or perhaps an advertising campaign. The key to a successful relationship is honesty, trust and commitment from both the recruiter and the client.

INITIAL RECRUITER CONTACT, FROM CANDIDATES TO CLIENTS Initially, the agency should arrange a meeting with the client to understand their business and cultural environment, as well as gain an understanding of the ethos of the business. A good recruiter will research the company beforehand and have a solid understanding of the client’s needs, while this initial meeting is important to see what calibre of candidates are required. A professional recruiter will always agree terms of business before engaging in an assignment, so the client has a clear understanding of payment terms, guarantee periods, charges and other factors. This meeting is also an important time to establish the expectations of the client in relation to requirements from the agency.

FACTORS TO KEEP IN MIND BEFORE YOU ENGAGE THEIR SERVICES A client should always ask a recruiter about his/her previous experience in their specialist industry and if the recruiter can provide references or examples of similar companies or roles they have completed in the Middle East. A professional consultant would never divulge the roles of their clients, although it should be possible to provide examples of specific job descriptions, methodology used and other information to ensure the client feels confident that the recruiter is able to provide the services required. 56 June 2010 | www.arabiansupplychain.com

This month’s column was written by Claire Blakeborough, associate director of logistics and supply chain, Charterhouse Partnership

IMPORTANT POINTS TO CONSIDER WHEN SELECTING A RECRUITER Clients should retain agencies that interview candidates face to face, present CVs and candidate profiles in agreed timeframes, as well as offer candidate options to the client. The idea of retaining a recruiter is to save time and money, therefore clients need to ensure recruiters interview candidates, provide references, conduct a bit of background research, brief candidates on role expectations, advise both client and candidate on salary and above all work for both the client and the candidate. Quite simply, is the recruiter getting the job done? With such a large number of recruiters within this saturated market in the Middle East, clients need to be selective as hiring the wrong recruiter can have long-term cost implications. We’ve all heard the horror stories regarding an experience with a shoddy recruiter. A client should always perform their due diligence, verifying that a recruiter is registered within the United Arab Emirates, and that they have references and the specific licences to offer recruitment services.

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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

450

30 April

9 April

200,000

430

427 23 April

410

418

14 May

150,000

406

26 March

396 370

100,000

330

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).

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

July 09

June 09

May 09

INDEX 100 = 53.5 US cents per US gallon

April 09

0 Mar 09

290

14 May 10

7 May 10

30 Apr 10

23 Apr 10

16 Apr 10

9 Apr 1010

04 Apr 10

26 Mar 10

19 Mar 10

12 Mar 10

250

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

FEBRUARY 2010/2009

CARGO STATISTICS This graph represents the cargo volumes handled at Dubai International Airport over twelve months. Cargo is measured as loaded and unloaded freight and mail in tonnes (Source: Airports Council International)

MONTHLY AIR CARGO REPORT: AFRICA REGION*

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

FEBRUARY 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

114,081

17.2

223,511

17.2

Accra (Ghana)

3194

-12.7

6940

-11.2

Brussels (Belgium)

33,556

-7.8

66,975

-4.4

Addis Ababa (Ethiopia)

2932

n/a

6560

-39.5

1201

-32.5

2577

-20.2

992

12.6

1848

6.9

Cologne (Germany)

45,046

11.2

89,926

9.9

Algiers (Algeria)

Frankfurt (Germany)

166,625

28.2

328,261

29.1

Antananarivo (Madagascar)

Istanbul (Turkey)

35,347

44.9

68,679

47.4

Leipzig (Germany)

46,111

32.1

90,353

29.3

London Heathrow (UK)

118,372

22.4

230,811

17.8

Luxembourg (Luxembourg)

52,011

6.0

101,663

6.8

Paris (France)

149,000

6.0

296,100

8.5

Vienna (Austria)

17,650

28.6

34,823

33.7

Warsaw (Poland)

4024

4.0

8093

25,439

19.2

49,005

Zurich (Switzerland)

26,887

19.1

54,506

9.2

Casablanca (Morocco)

3863

-15.9

7908

-13.0

Dar Es Salaam (Tanzania)

Cairo (Egypt)

1284

-11.6

2477

-14.1

Djibouti (Djibouti )

880

51.0

1641

40.9

Harare (Zimbabwe)

1634

9.7

3244

2.3

22,664

11.2

46,061

20.0

Libreville (Gabon)

1601

2.0

2910

-9.6

5.9

Saint-Denis (RĂŠunion)

2767

20.8

5462

21.1

16.5

Tunis (Tunisia)

1466

17.6

2917

14.7

Johannesburg (South Africa)

*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).

58 JUNE 2010 | www.arabiansupplychain.com

INDUSTRY STATISTICS

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION* AIRPORT/COUNTRY

FEBRUARY 2010/2009

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

31,767

18.1

63,520

21.9

Ahmedabad (India)

Amman (Jordan)

6605

13.4

13,284

11.6

Bahrain (Bahrain)

26,540

-7.4

52,901

-2.8

Beirut (Lebanon)

6077

14.2

11,446

9.3

Calcutta (India)

171,708

26.7

343,161

29.1

3618

22.8

6383

11.2

Abu Dhabi (UAE)

Dubai (UAE) Fujairah (UAE)

FEBRUARY 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

2261

50.7

4180

31.9

Bangalore (India)

15,370

31.8

30,339

26.1

Bangkok (Thailand)

97,504

47.9

196,019

46.3

9150

34.8

18,029

31.9

Colombo (Sri Lanka)

12,767

34.1

25,492

29.9

Fukuoka (Japan)

18,822

8.6

37,627

8.4

259,621

29.8

563,883

36.6 20.9

Kuwait (Kuwait)

14,875

9.8

29,513

7.3

Hong Kong (China)

Muscat (Oman)

7234

61.4

14,498

61.0

Jakarta (Indonesia)

41,037

23.4

83,580

289

57.9

624

53.7

Kuala Lumpur (Malaysia)

48,204

22.8

100,053

25.6

56.7

Manila (Philippines)

31,534

56.8

63,952

61.1

Ras Al Khaimah (UAE) Sharjah (UAE)

39,255

63.1

75,543

Mumbai (India)

50,086

25.2

102,150

27.9

Osaka (Japan)

51,404

31.2

106,683

39.5

YEAR-TO-DATE 2010/2009

Seoul (Korea)

12,365

-6.8

24,402

-8.1

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA AIRPORT/COUNTRY Anchorage (USA) Buenos Aires (Argentina)

FEBRUARY 2010/2009 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Shanghai (China)

209,605

50.9

454,256

66.2

156,845

27.1

339,873

32.8

Singapore (Singapore)

132,388

15.6

275,726

18.0

25.4

Taipei (Taiwan)

117,582

59.0

254,240

73.9

Tokyo (Japan)

159,507

40.5

319,045

42.5

13,236

35.5

25,141

Chicago (USA)

96,587

30.1

193,069

27.2

Los Angeles (USA)

128,794

25.4

257,041

25.2

Memphis (USA)

299,959

8.4

616,720

7.1

Mexico City (Mexico)

28,631

23.0

56,194

20.8

*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:

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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 Apr

12 Jan

486

480

12 Nov

464.5 12 Aug

BUNKER FUEL PRICE INDEX

447.5

564

775

n/a

Fujairah (UAE)

475

485

730

n/a

Houston (USA)

447

459

n/a

685

Istanbul (Turkey)

682

496

724

n/a

New Orleans (USA)

452

462

n/a

690

Piraeus (Greece)

458

478

681

n/a

Port Klang (Malaysia)

n/a

Rio de Janeiro (Brazil)

450

768

n/a

Rotterdam (Netherlands)

450

465

682

n/a

Singapore (Singapore)

466

473

n/a

St Petersburg

320

330

550

530

435

350

275

*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 May 2010. 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

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority CARGO TYPE Bulk cargo (solid)

12 million

Bulk cargo (liquid)* General cargo Containers (in tonnes)

9 million

Ro-Ro and vehicles Livestock TOTAL

6 million

TOTAL PORT THROUGHPUT

CONTAINERS (TEU)

3 million

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sep 09

Aug 09

Jul 09

Jun 09

May 09

Apr 09

12 May 10

n/a

12 Sept

12 Apr 10

Cape Town (South Africa)

425

12 Mar 10

720

12 Feb 10

731

12 Jan 10

515

12 Dec 09

504

12 Nov 09

Busan (South Korea)

12 Mar

459.5

12 Oct 09

MDO

12 Sept 09

MGO

12 Aug 09

IFO180

12 July 09

IFO380

12 Jun 09

PORT / COUNTRY

MARCH 2010 Discharged

Loaded

YEAR-TO-DATE Discharged

Loaded

1,886,408

509,958

4,782,711

1,519,144

445,740

3,814,600

1,124,742

12,501,155

558,640

63,985

1,661,162

122,616

2,284,738

1,760,718

6,374,425

5,033,781

128,996

12,892

392,526

39,289

12,740

n/a

27,722

n/a

5,317,262

6,162,153

14,363,288

19,215,985

11,479,415

33,579,273

2010

2009

March

Year-to-Date

March

Year-to-Date

Discharged

200,158

575,442

161,778

475,870

Loaded

188,889

575,482

163,419

531,387

TOTAL

389,047

1,150,924

325,197

1,007,257

Source: Saudi Ports Authority (SPA). The statistics cover all major Saudi Arabian ports (dead weight in tonnes). *Bulk cargo (liquid) excluding crude oil.

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01 1 02 2 03 04 05 EVENTS CALENDAR 06 07 0809 10 111 112 13 14 15 116 177 18 19 20 211 2 22232425 2627282930 TRADE EVENTS

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry

20th – 23rd June 2010 SUPPLY CHAIN MANAGEMENT AND LOGISTICS SAUDI ARABIA

IQPC has expanded its Middle East event portfolio with a supply chain and logistics seminar in Jeddah, Saudi Arabia. The event is expected to highlight a variety of cuttingedge strategies that have been successfully adopted in other parts of the world and hold great potential for the Kingdom’s highly specialised market. Speakers include Alex Borg (Chartered Institute of Logistics and Transport), Abdullah Khaldi (Saudi Aramco) and Yasir Jamal (Unilever Arabia). VENUE: Jeddah, Saudi Arabia EMAIL: enquiry@iqpc.ae WEBSITE: www.supplychainsaudiarabia.com

26th – 28th October 2010 SEATRADE MIDDLE EAST

10th – 12th October 2010 TRANSOMAN

24th October 2010 CILT NETWORKING EVENT

TransOman, the Sultanate’s leading event for shipping, transportation and logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are effecting the domestic market’s development. Both previous and new participants alike will find even more opportunities to discuss industry issues. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities expected to arise. VENUE: Oman International Exhibition Centre EMAIL: ebrahim@oite.com WEBSITE: www.trans-oman.com

Following the success of its previous seminar in April, the Chartered Institute of Logistics and Transportation (CILT) has confirmed plans to host a follow-up event at Emirates Aviation College in Dubai on 24th October 2010. The session is aimed at trade professionals from across the regional industry, in addition to students that have enrolled on a supply chain programme. A variety of topical issues will be tackled by speakers from the Middle East, in addition to countries such as the UK and Holland. VENUE: Emirates Aviation College, Dubai EMAIL: info@ciltuae.org WEBSITE: www.ciltuae.org

1000 2 23rd – 24th November 2010 m

Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of UAE and ruler of Dubai, the latest instalment of Sea Trade Middle East Maritime will take place at Dubai International Convention and Exhibition Centre in October. The exhibition and conference is expected to bring together the global ship-owning community with businesses that specialise in international ship equipment, in addition to product and service suppliers in the Middle East. VENUE: Dubai Convention & Exhibition Centre EMAIL: smayle@seatrade-global.com WEBSITE: www.seatrade-middleeast.com

TRANS MIDDLE EAST

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. Billed as the largest annual ports, shipping and logistics exhibition and conference in the Middle East, the event is expected to attract around 70 exhibitors from around the world, with a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA). Topics will include logistics, shipping and container ports, and ongoing market challenges. VENUE: Hilton Alexandria, Egypt EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com

5th – 7th June 2011 SITL DUBAI

June 2011 SUPPLY CHAIN AND TRANSPORT Hosted by Reed Exhibitions, the second AWARDS (SCATA) 2011 SITL Dubai exhibition will take place at Dubai International Convention and Exhibition Centre in June 2011, with a predicted 250 exhibitors from the supply chain and transportation sector. The event, which has been organised in co-location with the Airport Show exhibition and conference, is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West. VENUE: Dubai Convention & Exhibition Centre EMAIL: mohamad.ahmed@reedexpo.ae WEBSITE: www.sitldubai.com

62 JUNE 2010 | www.arabiansupplychain.com

Leading players from the Middle East logistics sector will compete in the UAE next June for the fifth annual Supply Chain and Transport Awards (SCATA). The prestigious ceremony will include 16 categories in total, covering the Middle East’s logistics, air cargo and sea freight sectors. These include the awards for Express Logistics Provider of the Year and 3PL Service Provider of the Year, in addition to FMCG Supply Chain of the Year. VENUE: Dubai, United Arab Emirates EMAIL: robeel.haq@itp.com WEBSITE: www.arabiansupplychain.com/scata

18th May 2011 GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT SUMMIT

The Supply Chain and Logistics Group (SCLG) has announced plans to host its fourth annual Global Logistics and Supply Chain Management Summit in May 2011. The Dubai-based trade association is hoping to break its record from this year’s summit, which attracted more than 200 delegates from various Middle Eastern countries, in addition to Singapore, India and the United Kingdom. A host of speakers will be confirmed over the coming months. VENUE: Dubai, United Arab Emirates EMAIL: admin@sclgme.org WEBSITE: www.sclgme.org

September 2011 MATERIALS HANDLING MIDDLE EAST

Established in 2001, Materials Handling Middle East is marketed as the leading trade exhibition and conference for the regional logistics industry. The fifth edition of the show gathered around 175 industry leaders from 27 countries, who showcased their products and services to around 7000 key purchasers from 82 countries around the world. Exhibitors included the likes of SSI Schafer, FAMCO, Ehrhardt + Partner, LOC8 and Business Systems Group (BSG). VENUE: Dubai Convention & Exhibition Centre EMAIL: info@uae.messefrankfurt.com WEBSITE: www.materials-handling-dubai.com

FACE TO FACE INTERVIEW

STANDING STRONG Although RSA Logistics celebrated the success of its first anniversary at Dubai Logistics City early this year, the company is focused on the future rather than the past, explains marketing director Kirit Mehta. It’s been over a year since RSA Logistics became the first company to commence operations at Dubai Logistics City. What circumstances led to that achievement? The management team at RSA Logistics was looking for new opportunities to meet the growing needs of the market. Being one of the first customers to be issued a licence in 2007, it was deemed a bold step. However, we were confident about proceeding and construction work was started in February 2008, taking around a year to complete. The first three containers arrived at our warehouse facility on 2nd April 2009. The logistics industry suffered a number of challenges in the Middle East last year. Did this situation impact your operations? Even though our operations began in the middle of a global downturn, RSA Logistics was able to finalise a three-year partnership with APL Logistics and another threeyear contract to provide Diversey with warehousing and distribution services. In addition, we inked a strategic relationship with UTi that focuses on contract logistics opportunities and started our dedicated freight forwarding and shipping division. Do you believe these developments have vindicated the decision to base your operations at Dubai Logistics City? Everyone at Dubai Logistics City has always been very supportive about our decision to establish a presence here. Of course, due to the recession, some of their commitments were delayed, which is understandable. However, there were some other issues, such as the customs and documentation process, which have since been sorted out. When you look back at our achievements in the first year, we are fairly content with progress. It would be difficult to ascertain whether a different location would have made a much bigger impact or not for our company. 64 June 2010 | www.arabiansupplychain.com

The partnership between RSA Logistics and APL Logistics was much-talked about in the industry. What does it cover? APL Logistics was our first customer at the Dubai Logistics City facility. The agreement came about through our common contacts that APL Logistics was looking for some warehousing space. We approached them and showed our facility and the whole project. With that the company was happy to take a dedicated space and grow its operations hand-in-hand with RSA. Are there plans to expand your presence at Dubai Logistics City or anywhere else? Yes, we are planning to fully develop the land on which our current facility sits on. A further 20,000m2 can be developed, which should be a viable option in the near future. Although no plans have been finalised, we aim to have dedicated warehouses or chambers for pharmaceuticals, dangerous goods and temperature controlled storage. Looking outside the United Arab Emirates, RSA Logistics has reached the early stages of extending our service portfolio to various markets, such as India and Singapore. Will there also be a conscious effort to increase brand awareness in the future? The RSA Logistics brand has steadily boosted its exposure to the customer’s eye. With our state-of-the-art facility and current clientele, we are already a strong brand within Dubai Logistics City. Close synergies with global brands such as UTi, APL Logistics and Diversey have increased our exposure to potential customers. This has further been enhanced by RSA buying its own fleet of vehicles for deliveries within the UAE. Future developments include a second warehouse in the freight forwarding zone at Dubai World Central. Right now, the warehouse is about 80% complete. We aim to have that facility up and running by August 2010.

What other developments have you seen at Dubai Logistics City in the past year? Since our operations commenced, we have seen large investments in infrastructure, such as road networks, accessibility and utilities. All these are vital to any start-up business, not only for operations but the impression it leaves on existing and potential customers. Moreover, with Al Maktoum International Airport commencing cargo flights from this month, there has been development at a rapid rate. This has not only attracted attention to the project, but RSA as well. Looking ahead, what are your overall predictions for the logistics industry’s growth in the Middle East? This region is still expected to become one of the world’s largest in terms of CAGR growth over the next five years, with 8.50% growth. The only difference between the last five years and the next is that the growth will no longer be in double digits, although it still remains higher than the rest of the world.

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