Logistics Middle East - July 2010

An ITP Business Publication Licensed by Dubai Media City

CLIMATE CONTROL How a cooler warehouse can translate to increased productivity from workers

PLAYING WITH FIRE NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

CAPITAL GAINS

Hazem Al Nowais, COO of Waha Land

JULY 2010 ISSUE 70

Can the latest generation of fire protection systems safeguard warehouses?

Waha Land tackles the shortage of warehousing space in Abu Dhabi

GULF WAREHOUSING COMPANY І AL-FUTTAIM LOGISTICS І GAC І MOMENTUM LOGISTICS

CONTENTS

CONTENTS Issue 70 July 2010 For the latest news and stories go to

16 02 Editor’s Letter

14 ArabianSupplyChain.com

34 Company Profile

What does it take for a logistics company to be considered admirable in the Middle East?

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

How the growth of Qatar’s logistics industry has benefited Gulf Warehousing Company.

04 Readers Letters

16 Cover Story

38 Fleet Management Systems

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

A look at the Al Merkaz warehousing project launched by Waha Land to overcome Abu Dhabi’s limitations in storage capacity.

Can fleet management systems reduce the number of road fatalities in the Middle East?

07 News Update • Dubai Municipality inspects food storage • Panalpina opens new DLC warehouse • GAC contracted to handle helium in Qatar • Aramex introduces hybrid bikes in Lebanon • Saudi airline warehouse damaged by blaze • Tamkeen to train Bahrainis in supply chain • Agility signed for $17m Saudi Arabia contract • Hellman selected for Actavis supply chain • Aramex expands partnership with UNICEF • Shell awards Transworld Logistics contract

20

20 Temperature Control A detailed overview of the temperature controlled storage sector, with company profiles and a Middle East case study.

42 Top 10 Airfreight Hubs From Jordan to KSA, these are the Middle East’s most popular destinations for air cargo.

48 Ask the Expert Matthew Derrick from Momentum Logistics shares his thoughts on supply chain success.

30 Warehouse Fires With a string of warehouse fires in the Middle East this year, can the latest generation of protection systems actually protect storage centres from potential damage?

56 Face To Face Interview With an optimistic outlook for the rest of 2010, Rebecca Fox of CIPS talks membership.

30 42

www.arabiansupplychain.com | July 2010

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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 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 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

What makes a logistics company admirable?

S

o just what does it take for a logistics company to be an admirable one? What qualities would you deem most valuable? Let’s think about it for a minute. Profitability? Perhaps, but I can think of quite a few organisations that are highly profitable and not thought of in a positive light. A company that isn’t afraid to set trends or send ripples through the water? Sure, but inevitably change will upset some of those who prefer the status quo.

I believe an efficiently run operation is something everyone can applaud, whether you are an employee of an organisation, or a customer. This month we take a look at the Al-Futtaim Motors Parts Distribution Centre (PDC) in Dubai, where a climate controlled environment has effectively increased worker efficiency and morale, while decreasing on-the-job accidents.

This leads me to our next commendable quality: safety. How a company values its own. While Al-Futtaim places heavy emphasis on this, so too do insurance adjusters. We’ll examine fleet management systems (FMS), and how they can improve both the safety, as well as efficiency of your organisation. We’ll also take a look at fire

protection systems, and what can be done to neutralise and/or suppress the risks of warehousing fires.

After studying various case studies on mixed-use light industrial projects, Hazem Al Nowais would assuredly suggest flexibility as an admirable quality. His Al Markaz project was designed with this in mind, and will eventually offer up elastic solutions to the Abu Dhabi warehousing demand. In reviewing case studies, Al Nowais said he ‘worked backwards’ examining similar developments that failed, noting the lack of flexibility as the most common denominator.

As we’ve packed this month’s issue of Logistics Middle East full of useful information, make sure to check out the Top 10 Middle East Airfreight Hubs. There has been a shakeup at the top, as Abu Dhabi International Airport is placing greater emphasis on its cargo operations.

I hope you’ll enjoy this issue and we look forward to seeing you again next month.

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)

To subscribe please visit www.itp.com/subscriptions 2 JULY 2010 | www.arabiansupplychain.com

STUDIO Group Art Editor Daniel Prescott Designer Lucy McMurray PHOTOGRAPHY Director of Photography Sevag Davidian Senior Photographers Efraim Evidor, Jovana Obradovic Staff Photographers Isidora Bojovic, George Dipin, Murrindie Frew, Lyubov Galushko, Shruti Jagdesh, Mosh Lafuente, 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 Marketing Manager Annie Chinoy 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 Masar 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)

Published by and © 2010 ITP Business Publishing, a division of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Number 1402846.

READERS LETTERS

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 g gloryy 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

A role model in Middle East logistics?

Newcomer networking

Dear Editor, It was a pleasure to read the interview with Raaju Sundararaaj, CEO of TTL Shipping and Logistics last month. I personally feel that it was not only an interview, but a motivation speech as well. It teaches the importance of a positive attitude, positive approach, oac ach ch h self-confidence and of course urrse rsee a ‘canproud to say do’ o’’ attitude. attitude itude. I am very ver e y pr ayy that I worked with Raaju’s team m while w wh whi h he was w a sea fre wa ffreight ight ight ht manager, man m mana manager age and am really excited to watch his professional ion iona o growth. say that his true owth. wth. th. h. I can ca sa ue hard hard d work, w sincerity and genuine to honour iine attempts tt t urr customer tom to tomer m requirements mer r uirements i t were instrumental instrumenta i t mental menta ntal tal in i helping achieve aspirations. hieve eve ve h his go goals als ls and aspirati aspiration aspira sp ati Thameen Basha

Dear Editor, I have to be honest with you. Last month’s Supply Chain and Transport Awards was one of the best professional experiences I have come across. As a recent university graduate, I am only beginning my career in multi-modal logistics. However, having the opportunity to meet and talk with some of the most experienced and respected people within the business was an experience I will not soon forget. I would like to congratulate all of this year’s winners on their success and thank all of those involved for hosting such a prestigious event. I am looking forward to it again next year, where I hope to see some familiar faces.

John Maher

The importance of industry awards

Dear Editor, Congratulations to Supply Network Solutions (SNS) for such an outstanding job at this year’s SCATAs. This is a new achievement that we can add to SNS’s repertoire! I know that in the past year, we have all worked very hard to accomplish our goals, and this event only reinforced our confidence in each other, as well as SNS. If we maintain this level of energy into the coming months the future will indeed be bright. I look forward to next year’s event, where we will get together again and celebrate our 2010-2011 successes.

Alain Saad

Dear Editor, Congratulations to the winners at the Supply Chain and Transport Awards (SCATA) 2010 – every one of them is integral to the logistics revolution within the GCC region. Although the awards may run to form and expectations, nobody can detract the positive impact in the industry. The event has more than fulfilled its expectations, as my colleagues and I had a wonderful time. It’s worth mentioning that such celebrations always contribute to positive news across the board room too.

Professor Philbert Suresh

A successful team effort

INTERANY COMP VIEW: PROFI CONSO LE:LIDATE CONSO DLIDATE SHIPPD ING SHIPP SERVIC INGES SERVICES

COMPANY PROFI LE: CONSOLIDATE D SHIPPING SERVIC ES

Three cheers for Mr Kala Dear Editor, I would like to thank you for the article on Mr Kala from Consolidated Shipping Services (CSS) last month. It was an insightful look into a man that I have developed much respect for. I can attest to the fact that he works very hard at keeping CSS on top, while also treating each of his employees like family. The 15th anniversary celebrations in Dubai were an obvious testament to that. Therefore, I am confident that as long as Mr Kala remains at the top of CSS, the company will continue to prosper long into the future. I wish him and everyone else at Consolidated Shipping Services much success for years to come.

Prathap Karunakaran

W

Passionately PROFITABLE

Celebrating its 15th anniversary of opera Shipping Services tions this year, Cons (CSS) has emerged olidated unsc turmoil, explains its outspoken chairman athed from recent market and founder T.S. Kalad haran.

18 JUNE 2010 | www.arabian supplychain.com

ith humble beginn ings in a was the confidence in small South Indian our people, and the village, confide nce in our beliefs that T.S. Kaladharan now has brought us sits a conglomerate conside atop to where we are today.�

He remains adaman be a regional powerh red to t about ouse in success the logistics industr of CSS with his employ sharing the y. ees. Whether Lounging in his Jebel it’s the company’s bi-mon Ali office - plush with thly publication, white leather couche s and state-of-the-art Lighthouse, where employees receive monitors - Kaladh official recognition for their aran beams when work, or the sponso talking badmin about the success red ton and cricket of Consolidated Shippin tournaments, all Services (CSS). “We g have been well received. As have maintained a an employee steady welfare growth since our measure, the compan inception,� he begins y also serves with up a free daily a sense of pride. lunch to the entire workfor Launched in 1995, ce.

Immediate advanta with just a handfu ges aside, Kala l of believes that employees and a 1200 implementing such square foot office, incentives CSS will conseq has since grown into uently reduce mercha a company of more than in his wareho ndise loss 750 employees, spread over uses, as employees no longer 20 offices around bring lunch pails the world. to work. In As the chairman and founder, talking about CSS’s “We have economic Kaladharan began outlook his career , the executi experienced ve is very in Bahrain, going to work as an positive, and while very consistent 2009 was office assistant for DHL. After “not as bad as the growth within other guys�, more than ten years he says 2010 holds of even more India, Saudi with the courier firm, service promise. But given working the current Arabia, Bahrain in sectors such global economic as cargo state, is the and Abu Dhabi� distribution and air company really freight, he undergoing set his sights on Dubai, expansion? eager to utilise his contact s and expertise.

Kala thinks that now Known affectionately is the time to act, and one by his peers as ‘Kala’, such venture is a recent he’s since made partnership with quite a respected Peters & May, a special name in yacht for himself within ist transportation through the freight forward ing world. Given community. out the the current financi al climate, In choosing the he believes this is most suitable place one shipping sector launch CSS, Kala that was drawn to Dubai to is experiencing consistent growth for a a niche market . In such variety of reasons , actively becomi with high-en d clientele, the ng part markup of the late 90’s boom. s tend to be quite Kala says that he favorable. “We saw recognise what Dubai envisio the need to partner ned itself becoming with a and considered it to be great place to operate that has received global recogni firm his business. “It was tion in quite a simple decision boat transportation,� says Kala. “We both really,� he says. “Its share the same unmatc tax free, the governm hed professionalism ent that has made remains very suppor tive of commerce, us recognised leaders and specialised its location makes in our fields.� it a transit hub to several growing markets.�

The sentiments are shared by Gerald Admittedly, while Price, managing the Dubai market director of Peters has who signed become somewhat & May, the ‘stagnant’ in the past to the increas contract with CSS. “Due year, Kala says other ed volume of busines regional markets are undergoing healthy s being expansion. “We have experienced very Marketspeak consist India, Saudi Arabia, ent growth within Bahrain and Abu Dhabi,� he states. s "UNKER !DJUSTMENT &ACTO R "!& ! FUEL When talking to SURCHARGE EXPRESSED AS A Kala, his sense PERCENTAGE ADDED optimism is almost of OR SUBTRACTED FROM THE FREIG infectious. After HT AMOUNT

all, this is a man that REmECTING THE MOVEMENT IN has grown his compan THE MARKET of five employees y PLACE PRICE FOR BUNKERS to more than 750 in a little under 15 years, all s #URRENCY !DJUSTMENT &A the while attributing CTOR #!& ! his success to the people FEE APPLIED TO THE SHIPPING that were brough COSTS TO on board, more so t COMPENSATE FOR EXCHANGE than himself.

RATE mUCTUATIONS “I believe in my team s 'ENERAL 2ATE )NCREASE ' 2) 4HE AVERAGE Nobody in this world and management.

AMOUNT IN WHICH A CARRIER INCREASES ITS without a belief and has ever succeeded PRICES 4HE RATE IS USUALLY team effort. These TO COVER THE two attributes provide INCREASE OF TARIFFS OR LABO an ethos for success UR COSTS . It

www.arabiansupplychain.c om

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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 JULY 2010 | www.arabianbusiness.com/transportation

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, M AL AYSI A, I NDONESIA, US A , L E B A NO 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

7% of food storage fails hygiene standards in Dubai Inspection campaign notes non-compliance to hygienic requirements for food product warehousing

A

recent inspection campaign conducted by the Food Control Section of Dubai Municipality has revealed that 7% of the total foodstuff warehouses visited in the emirate were not complying with official hygienic requirements.

The campaign was conducted to support the Food Control Department’s objective to ensure the health and safety of food consumed by the public. Inspections were carried out from the beginning of the summer months to test the quality of food traded in Dubai, before it reaches the end consumer.

Sultan Al Tahir, head of Dubai Municipality’s Product Control Section, said the campaign covered 257 warehouses in total, including storage centres for dry, chilled and frozen food items throughout the emirate. “The inspections, which resulted in fines being issued to 144 establishments, stressed our message that warehouses need to adhere to approved hygiene requirements by the municipality,” he explained.

Tahir also noted that despite the fines, most warehouses received a good assessment during the campaign. “We found 18 warehouses that received the medium-to-weak assessment marks and were not found to be complying with existing hygiene requirements,” he stressed. “They were instructed to comply with the requirements and modify their status.”

Common violations in those institutions were the accumulation of storage, often out-dated and expired, as well as a lack of proper ventilation systems. The team also checked that refrigeration and freezing equipment were working efficiently and continuously, while ensuring the availability of alternative equipments in case of breakdowns. “We tried to ensure that the refrigeration units were working at a temperature of 40c or less and the freezing units were kept at a temperature of -180c or less, and in the case of dry food the temperature was kept at 210c or less and that there is no indication to the melting of the frozen food,” he said. “We also made sure that the food retained its natural properties.”

In addition, emphasis was placed to identify areas for storage in the warehouses, as they were evaluated according to the size of work. A

database of stores was also being made available to the Food Control Section on a continuous basis, which will help in locating stores in the future. Tahir added that temperature control is the best way to reduce the risk of microbes and preventing it from destroying foods during storage. “You must store the food in temperatures that are suitable for them, whether they are refrigerated, frozen or dry food,” he concluded.

DR RAJIV ASERKAR, S.P. JAIN CENTRE OF MANAGEMENT “A very high degree of cleanliness and adherence to statutory standards is important for storage of goods. Food products need warehousing facilities that protect against physical, chemical, and microbial contamination. Posters related to food safety should prominently be displayed in strategic locations within the warehouse.”

ALEXANDER BORG, REGIONAL DIRECTOR, CILT “It could be argued that the only constant in logistics has been change. As companies have striven to control cost, improve performance and increase their market competitiveness, they have evolved their supply chain practices to help deliver their objectives. Clearly such changes have major implications for cost-effective food warehousing.”

WARREN JACOB, CEO OF TRANSWORLD LOGISTICS “The research conducted by Dubai Municipality should be applauded and will have immediate and direct benefits for the logistics industry. The findings have highlighted a number of interesting points for those conducting warehouse operations in the emirates. For those with lower standards, its time to raise quality levels.”

www.arabiansupplychain.com | JULY 2010

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NEWS UPDATE

NEWS IN BRIEF

Panalpina opens new DLC warehouse Global company is welcoming customers to 450,000 square feet multi-modal transit and logistics hub Panalpina has celebrated the start of operations at its 450,000 square feet multimodal transit and logistics hub in Dubai Logistics City.

The new facility consists of 30,000 square feet office space, a 120,000 square feet multipurpose logistics operating area and a 150,000 square feet lay down area.

The facility will be Tapa A certified and has 23 gates, including a mega door, 10 dock levelers, air cargo pallet roller beds and 45 feet ceiling height.

“This facility represents a milestone in our Middle East expansion strategy,” said Claus Schmidt, Panalpina managing director of the Arabian Belt area. “It will allow us to truly increase our service offerings WAREHOUSE

Gulf Polytex has confirmed plans to locate its regional manufacturing operations at the Majaal logistics complex in Bahrain. The company, which was formed through foreign direct investment, intends to manufacture a broad spectrum of sun shading systems and awnings at Majaal. “It’s a great honour to support the government’s Vision 2030 and facilitate foreign direct investment in Bahrain, which will surely lead to local job creation and increased prosperity for the nation,” explained Amin Al Arrayed, board member of Majaal.

GAC has been contracted by Air Products USA to handle helium deliveries from Qatar to the UAE. Ravindu Rodrigo, GAC Qatar’s commercial manager, believes the agreement will mark the start of a relationship with Air Products that could lead to opportunities for mutually beneficial business. “Air Products and GAC make a good match,” he said. “Both are truly global, put a premium on quality and invest in the best people to work for them. We hope that this contract will be just the start of a long and profitable relationship.”

Agility has launched a logistics hub in Shanghai as part of a joint venture with Abu Dhabi statelinked chemicals firm Borouge.

The 66,000m2 complex, thought to be one of the biggest of its kind in China, is poised to process up to 600,000 tonnes of polyolefins annually for export to the Asian market. “The petrochemicals industry has entered a period of change with production in the Middle East expected to more than double by 2015,” stated Philip Browitt, chairman of the Agility’s specialty chemicals arm.

8 JULY 2010 | www.arabiansupplychain.com

Panalpina is the latest logistics company to start operations at Dubai Logistics City

in supply chain management by providing a seamless integration of international air, ocean and trucking services with our logistics and order fulfilment services.”

At present, four companies have already started operations at Dubai Logistics City, including EPS, RSA Logistics, Kuehne & Nagel and Calipar Integrated Services.

Aramex introduces hybrid bikes in Lebanon A new range of bikes have been introduced to Aramex operations in Lebanon, incorporating the latest innovation in hybrid technology. The vehicles will be utilised by the logistics company’s couriers across all stations in the country.

The move is part of Aramex’s continued efforts to reduce carbon emissions, while incorporating various techniques and measures that lessen the impact of operations on the natural environment.

“At Aramex, environmental sustainability has always been at the core of our corporate ethos,” said Raji Hattar, Aramex chief sustainability officer.

“This is clearly reflected in our operational practices, which involve utilising the latest technology to boost our environmental efficiency.

Given that emissions represent a significant environmental impact, the hybrid bikes will TRANSPORT

enable us to not only lessen our carbon footprint, but also bring a more efficient fleet of bikes into function within our Lebanese operations,” he added.

Last year, chief executive officer Fadi Ghandour outlined plans for Aramex to become the first carbon-neutral logistics company in the world. Among

his targets were a 50% reduction in emissions per shipment and a 20% reduction in fuel use. The company also aimed to have 2% of its revenue from green services by that date. “Being in the transport industry, which is one of the biggest polluters on earth, it is not an issue we can ignore,” he said.

Aramex has purchased a fleet of hybrid motorbikes for its courier team in Lebanon

NEWS UDPATE

Saudia warehouse damaged by blaze A warehouse facility operated by Saudi Arabia Airlines was damaged by a large-scale fire in northern Jeddah last month.

The blaze was controlled by a team of 13 civil defence teams within four hours, despite the impact of windy conditions.

“The fire had started inside a warehouse to the north of King Abdulaziz International Airport in Jeddah, which was operated by Saudi Arabian Airlines,” explained Captain Abdullah Al-Amiri, Civil Defence spokesperson.

“The blaze began in the afternoon and quickly spread in the warehouse that measured 18,000m2,” he added.

The facility contained a range of spare parts for the national carrier. “Saudi Arabian Airlines will make every effort not to be affected by this accident,”

NEWS IN BRIEF

WAREHOUSE

A variety of spare parts were stored by Saudi Arabian Airlines at the Jeddah facility

responded Abdullah Al-Ajhar, assistant director general of public relations for Saudi Arabian Airlines. “The spare parts used for the aircraft under service and new aircraft have

not at all been affected by the fire because they were stored at a safe place.”

An investigation into the incident has since been launched by the airline.

Tamkeen has confirmed plans to train 200 Bahrainis in supply chain management, culminating in CIPS certification for trainees.

The US$1.9 million project, which will run over four years, is part of Tamkeen’s efforts to identify skills gaps and provide new career opportunities for Bahrainis. “With the recent opening of the Khalifa bin Salman Port and the Kingdom’s ambitious plans to develop its industrial and retail sectors, supply chain management will be present successful career opportunities,” said Amal Kooheji, senior manager of human capital development department at Tamkeen.

www.arabiansupplychain.com | JULY 2010

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NEWS UPDATE

NEWS IN BRIEF

Agility awarded $17m Saudi contract Logistics company secures five-year contract to provide on-site warehousing and operations management Agility has secured a five-year contract with Khafji Joint Operations (KJO) in Saudi Arabia, valued at a potential US$17 million.

Under the agreement, the logistics company will provide a range of on-site warehousing and operations management services, including the receiving and handling of material. It will also overlook the opening, inspecting, labelling, storing and transporting of materials to different units within the KJO operation. In addition, Agility has been handed responsibility for the housekeeping of yards and warehouses, documentation and inventory assistance, and administrative support services.

“Agility has successfully managed several contracts in the oil and gas sector over the 3PL

Shell Markets Middle East (SMME) has appointed Transworld Logistics to provide implants at its two terminals in Jebel Ali Free Zone and manage all imports and export activities. Transworld’s transportation division has also approved for SMME trailer operations within the UAE. “We are excited to have secured this very prestigious account and have created a unit within us as Team Shell, which will be the face of Transworld to the business units of Shell,” explained Warren Jacob, CEO of Transworld Logistics.

Aramex has expanded its Middle East logistics partnership with the United Nations Children’s Fund (UNICEF). The company will now offer a free-of-charge service for all outbound domestic and global consignments from UNICEF’s Abu Dhabi, Riyadh and Dubai offices.

“The extension of our collaboration with UNICEF supports the belief that Aramex can accomplish a lot more through closer and sustained engagement,” stated Hussein Hachem, Aramex chief executive officer for Middle East and Africa.

Officials from Agility and Khafji Joint Operations finalise their KSA logistics contract

past years. This new contract with Khafji Joint Operations has demonstrated their confidence in our capabilities and will help in strengthening our relationship with them”, stated Engineer Dakheel AIDakheel, director of business

Hellmann selected for Actavis supply chain Hellmann Healthcare Logistics (HHL) has been selected by global pharmaceutical firm Actavis to manage its supply chain operations in the United Arab Emirates.

Under the deal, all Actavis direct shipments going to the 3PL

Middle East from various factories around the world will now flow through HHL’s healthcare distribution centre in Dubai Logistics City.

The facility, which is dedicated to pharmaceutical and biotechnology products and medical devices, includes

Ehrhardt + Partner Solutions (EPS) has implemented its LFS400 warehouse management system at a 22,000m2 warehouse in Bahrain, operated by Emke Group, the operator of LuLu Hypermarkets.

“After a successful rollout in Dubai and Abu Dhabi, the EMKE Group has continued to set the pace for change in logistics with its Bahrain warehouse, which is connected to the central machine in Abu Dhabi, giving the company a total storage space of 200,000m2 with only one warehouse management system,” commented Hermann Ehrhardt, managing director of EPS. Hellmann Healthcare Logistics is attracting pharmaceutical customers in the UAE

10 JULY 2010 | www.arabiansupplychain.com

development department at Agility. “This contract will also allow Khafji Joint Operations to concentrate on its core competency of oil exploration without having to invest time or efforts into reliable storage or transportation issues.”

a combination of both 15-250c and 2-80c chambers.

“It is vital to go through a rigorous selection process, bearing in mind the quality led nature of the pharmaceutical industry. Hellmann stood out by showing its commitment to our sector through top quality systems and processes. The world-class pharma facility at Dubai Logistics City will not only benefit Actavis, but also set new standards for pharma 3PL in the Middle East in general,” commented Eddy Scholten, Actavis operations manager for the Middle East.

“We are pleased to be working with HHL in this region and confident that with its help, Actavis will be able to provide a more efficient and seamless cool chain for its distributors in the Middle East, most importantly, with a high degree of product quality and compliance,” he added.

NEWS UPDATE

GAC Jordan celebrates 25th anniversary of operations

G

ulf Agency Company (GAC) hosted a celebration in Jordan last month to mark its 25th anniversary of operations in the country. A number of officials from the logistics and shipping company were present at the Grand Hyatt Amman Hotel to mark the occasion, including Björn Engblom (chairman of GAC Group), Captain Lars Säfverström (GAC Group president), Rudain Kawar (CEO of GAC Jordan) and Ghassoub Kawar (managing director of GAC Jordan).

“Being part of the GAC Group provides GAC Jordan with access to a global network of connections with over 300 offices and more than 9000 staff worldwide,” guests were told by Engblom. “We are very proud of the accomplishments GAC Jordan has made over the last 25 years and its commitment to providing its customers with a recognised world standard of quality services.”

12 JULY 2010 | www.arabiansupplychain.com

GAC Jordan was founded in 1985 as a partnership between GAC Group and local partner, Kawar Group. With two offices in the Kingdom, strategically located in Amman and Aqaba, GAC covers all cargo destinations within Jordan and neighbouring countries and was recently ranked the Kingdom’s leading shipping agency for RoRo ships and cruise ships, based on the total number of calls and volumes handled.

“Over the last 25 years, GAC Jordan has gained a reputable standing in the shipping market, especially in the RoRo market and cruise ships area,” said Rudain Kawar. “As the exclusive shipping agent in Jordan for Eukor Car Carriers, we are proud to be number one in the Jordanian market in the RoRo sector. It is thanks to the support of our customers, partners and staff members that we have sealed our position in the market as a leader in shipping and logistics services.”

NEWS UPDATE

www.arabiansupplychain.com | JULY 2010

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ONLINE HIGHLIGHTS

Still hungry for more news?

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MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM Agility Gulf Agency Company (GAC) Aramex Jebel Ali Free Zone DHL Express

Bahrain and Germany form logistics alliance Bahrain’s General Organisation of Sea Ports (GOP) has signed a logistics agreement with Germany to develop mutual co-operation and enhance bilateral relations between the two countries. The Memorandum of Understanding (MoU) was signed by GOP chairman Shaikh Daij bin Salman Al Khalifa and the deputy mayor of Nuremberg City, Dr Roland Fleck. As part of the agreement, both Germany and Bahrain will develop relations providing support for logistics companies to gain access to the Middle East and Germany markets, as well as Europe. In addition, both countries will support the development of cooperation between logistics organisations and associations with regard to infrastructure, technology and science.

“The agreement is a key milestone in bolstering exchange of business between Bahrain and Germany, leading us towards establishing stronger logistics engagements with the European market,” commented Al Khalifa. “It signifies a strategic step towards promoting the Kingdom’s logistics and maritime credentials and strengthening the delivery of international best practices in logistics management. With the world gradually emerging from recession, the agreement comes at an opportune time consolidating Bahrain’s position as an ideal regional base and gateway from which German and international businesses will be able to access the trillion dollar, priority target markets of the Gulf.”

MOST POPULAR HEADLINES

1 Photo Special: Supply Chain and Transport Awards 2010

2 Dubai Police arrest Sheikh Zayed Road ‘stunt’ drivers

3 Agility considers proposed sale of long-term bonds

4 Dubai Customs seizes 7 million illegal sex pills

FAMCO’s hosts first Linde 5 Challenge in Abu Dhabi

EDITOR’S CHOICES ONLINE INTERVIEW

PHOTO SPECIAL

Samer Hajjar, country manager at Aramex Aramex country manager Samer Hajjar was interviewed after the logistics firm took home a couple of trophies at the SCATAs 2010.

Supply Chain and Transport Awards 2010 Re-visit the biggest highlights from the recent Supply Chain and Transport Awards (SCATA) 2010 with our exclusive photo special.

SPOT POLL

Were the right winners selected for the Supply Chain and Transport Awards SCATA 2010?

71.3

Yes, the awards had a nice selection of % winners this year

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19.2

%

I agree with the majority of winners selected

9.5

%

Different companies should have been awarded

COVER STORY

SUPPLIED

DEMAND The large-scale warehouse project launched by Waha Land to overcome storage limitations in the Abu Dhabi market.

s the fi rst employee of the locally unrivaled, as the emirate is eager for Abu Dhabi-based Waha more available options in the mixed-use, Land, chief operating officer light industrial sector.

Hazem A. Al Nowais, says he “We wouldn’t touch a market without is proud to see how far the research, demand analysis, case studies. You company has progressed . Coming on board want to be sensible, look at everything with in October 2007, his early roles included an open mind. Al Markaz comes at the right building a team, establishing market time. And is in alignment with Abu Dhabi’s credibility, and digging deep strategic aspirations as into market research and envisaged in Plan Abu Dhabi analysis. “Waha Land started 2030,” adds Al Nowais.

“Market demand as an idea, and today is a “Strong trade and transport reality,” he says. “To see it come connections encourage Al for warehouses to life is amazing.”

Markaz’s end-users to expand stores and With the full support of the labour camps far their geographical focus Abu Dhabi government behind outstrips supply” and tap into the massive it, Waha Land’s first venture potential of the Gulf market. will be developing a prime six This includes industry, which square kilometre plot of land currently has an insufficient earmarked as a mixed-use development. The supply of multi-faceted and full- fledged real project, Al Markaz, is an ambitious attempt estate initiatives such as Al Markaz.” at providing much-needed warehousing The master plan outlines an integrated and light industrial space to the Abu Dhabi mixed-use development with premium market. Al Nowais says the proposed flexible workforce accommodation, light industrial multi-use design, as well as scope of the facilities, start-up units, and larger land project, is ground breaking for the emirate parcels zoned for warehousing and storage. and comes just at the right time.

Workforce accommodation is available to “The market demand for warehouses tenants of the development, or to external stores and labour camps far outstrips the companies needing accommodation for supply, ensuring great value in building staff. The project offers several unique major multi-faceted projects such as Al advantages to investors and end-users.

Markaz,” says Al Nowais “It will be ideal for start-ups, or small Providing a comprehensive work and or large enterprises. Our tenants will have living environment with modern the ability to upgrade to larger units over infrastructure that addresses the needs of time, without relocating, as the project the industrial sector, Al Markaz will be a will be adaptable to the needs of investors. first of its kind in Abu Dhabi. Strategically The flexibility afforded differentiates this located just 25km from the emirate, project from most,” says Al Nowais. the development will be adjacent to the Indeed, when he was researching case proposed union freight railway, allowing studies of similar projects, Al Nowais looked for direct access to the city and its ports, for mixed-use developments that failed, emirates and the rest of the GCC. Upon analysing why such ventures didn’t work out. completetion, the development will be Two common themes were prevalent: First,

A

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COVER STORY

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COVER STORY

AL MARKAZ STATISTICS Total Site Area – 6,000,000m² Warehouses & Storage – 1,580,000m² Light Industrial – 500,000m² Small Industrial – 180,000m² Residential – 28,000 resident capacity

plans were simply too rigid, not allowing for expansion (or contraction) of facilities without relocation. Second, projects lacked accessibility to established transport networks, often creating bottleneck effects.

“We worked backwards,” says Al Nowais.

“Our starting point was studying the failures of others. We let infrastructure govern our master plan. Once you conquer your biggest problem, everything else becomes easy.”

Designed in four phases, each taking 18-24 months to complete, ground has officially been broken on the initial Phase I. According to Al Nowais, the fact that work has commenced is proving to be a selling point at recent trade shows and exhibitions.

“Believe it or not, this is a major contributor to our success. The fact ground is broken and progress is being made. Our expectations have been completely exceeded. To give you an idea, in 2009’s CityScape Abu Dhabi exhibition, it took us five days to accomplish our goals. This year we accomplished them in three,” says a beaming Al Nowais.

From the sounds of it, this project is one of the few to not just survive the economic slowdown, but one that arguably benefits under such conditions. “In 2009, we were still on the drawing board,” says Al Nowais. “So in those terms we were lucky. In 2010 we commenced sales and construction, and market conditions have worked in our favour.

The lack of

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industrial projects is good for us. Demand is there.” Being that this is a first-of-its-kind project, surely there have been some holdups regarding zoning, approval and regulation, the proverbial red tape that all developers must work through? Al Nowais says it has not been a hindrance and thinks it actually works quite the opposite. “What might slow you down today, will save you time tomorrow,” he reasons.

Al Nowais says as a developer, he welcomes regulation and considers Abu Dhabi’s Urban Planning Council as a “breath of fresh air”’ to the local real estate market.

He says the council is easily accessible, and remains open to meeting with developers to discuss available options or solutions.

“I won’t hesitate to say that they’ve quite literally been a savior to the Abu Dhabi real estate market.”

As a public company operating largely in a private sector, Al Nowais says this has placed Waha Land firmly on the map, and has come to positively affect the bottom line.

“In this market, it’s a trust issue. A public company is more transparent in operations than a private company, and this has served

us well. Being listed we gain credibility and confidence,” he explains.

As for additional upcoming projects, Waha Land is looking into other government sanctioned projects, such as UAE national housing, schools and hospitals. However right now the focus remains on squarely on Al Markaz, as Al Nowais say he is not interested in becoming one of the many failed case studies he reviewed. “There is no chance that I will allow that to happen, the project has too much potential for that,” he argues.

Phase I of Al Markaz is scheduled to open by 2011

TEMPERATURE CONTROLLED STORAGE

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TEMPERATURE CONTROLLED STORAGE

With growing demand for temperature controlled storage in the Middle East, what opportunities does the sector present for warehousing and transportation companies? ts a well known fact that severe hot or cold weather can damage products contained within storage units.

The Middle East, marked by its high temperatures and humidity during most of the year, necessitates that products be stored in an environment that can guarantee quality and maintain product integrity.

As a result, demand for temperature controlled storage remains high as most modern warehouses are equipped with cooling devices. Additionally, as warehousing remains a critical component within the supply chain, it would be asinine to utilise temperature controlled transportation, as is now common, without opting for a temperature controlled storage element as well.

“The product group for which temperature controlled storage is an absolute necessity would be food and perishables. Apart from this, most consumer goods like cosmetics, creams, pharmaceutical and health care products, fashion goods and accessories, electronics, furniture, leather goods and even antiques are stored in temperature controlled environments to maintain the integrity of the product,” explains Umer Shams Arakkal, general manager of Xvise Innovative Logistics in the Middle East.

“It is not merely the decision of the product owners, but in the case of certain product categories, the regulatory authorities also lay down guidelines or legislation to ensure compliance to temperature limits. These regulations need to be strictly adhered to.”

The sensitive nature of products to external elements like high temperatures, humidity, rain, dust and pests make temperature controlled storage a highly desirable and necessary medium of storing products – a storage platform that would guarantee the quality and integrity of the product until end destination.

Sometimes, even limited public access and security are considered as factors when opting for temperature controlled storage. For instance, in the case of products that are fragile in nature, high on antique value or sometimes in the case of sensitive musical instruments.

“Currently the region offers a vast range of temperature controlled warehouses for customers. Th is was not the case in the 80s and 90s where choice was limited to a handful of providers,” continues Arakkal. “Today’s choice ranges from global players to strong regional and local players who have established benchmarks as specialist in temperature controlled warehousing. Hence customers can avail of a variety of providers based on their individual and customised needs.”

The cost of setup and operation of a temperature controlled warehouse is a significant amount higher than an ambient warehouse. However the return on investment is faster, states Arakkal, and due to high demand for temperature controlled warehousing, guaranteed as well.

I

In order to quicken the return on interest (ROI), companies can be innovative when it comes to the choice of technology, storage concepts, staff selection and other factors. “Once the temperature controlled warehouse is set up, all it requires is periodic maintenance and monitoring. Return on investment is faster compared to ambient warehousing,” states Arakkal.

So, what are the challenges of temperature controlled storage?

“Essentially the customer is in business with a service provider that has temperature controlled storage in order to maintain the integrity of the product. Having said this, it is the responsibility of the service provider to ensure that the contractual obligations and expectations of customers are met in terms of handling the product, storage and distribution of product to the market at the appropriate temperature requirements without any break in the system along the chain,” says Arakkal.

“There are plenty of gadgets available in the market to monitor this practice. Backup systems are vital to a temperature controlled environment in case of emergencies. Of equal importance, the staff handling the products need to be trained in order to ensure their own safety and provide a quality service to the client. Another area of concern is the cost of operation for the provider, as he should embrace specific technologies and processes that would ensure quality operations at minimal cost and breakdowns. Th is would touch upon the areas of racking, IT and business processes, staff training and so on.”

There are many international, regional and local companies offering temperature controlled warehousing in the Middle East. The distinction between these companies mainly depend on the scope and quality of services afforded to clients. Most international companies focus on the end-to-end supply chain that includes freight forwarding, transportation, ground handling, documentation, warehousing and deliveries to the marketplace.

Customer contracts with these providers are typically global in nature. On the other hand, regional operators and local operators may focus only on their core strengths without taking too many risks. “An interesting point to note here is that year-on-year, companies are improving their benchmarks and operating standards in order to meet customer expectations, provide better value for money for customers and to ensure compliance with local regulations and law enforcement bodies,” says Arakkal.

The demand for temperature controlled storage has been on the increase and yet there is still a shortage of ‘quality’ supply in the Middle East region, he argues. “Perhaps demand has indeed softened due to the current market conditions, however we need to assume this is a temporary situation and the market will rebound.

Cost of quality temperature controlled storage will most certainly rise, but price escalation will be at a slower pace and not compared to the scenarios of yester-years.”

It seems customers will have their choice due to increased competition and operators will have to differentiate themselves in order to attract and retain business. “The retail market is booming in the Middle East and most of the retail customers require temperature controlled warehousing in order to maintain the quality and integrity of the product. Hence even if price is a factor, the important aspect for the operators is to ensure quality service and professional retail expertise to clients,” ends Arakkal. www.arabiansupplychain.com | JULY 2010

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TEMPERATURE CONTROLLED STORAGE

AL MADINA LOGISTICS SANJEEVE THAVARAJAH , SENIOR MANAGER, SUPPLY CHAIN DIVISON What type of temperature-controlled storage is offered by your company?

We provide our customers with a combination of freezer chambers, chiller chambers, airconditioned, ambient and ambient storage.

What products need temperature control?

this requirement by having dock levellers and shelters that are inflatable and cover the rear of the container during off-loading and shipping of goods. Implementation of a SCADA (Supervisory Control and Data Acquisition) system to monitor and control the chiller and plant is a definite advantage in maintaining the temperature and humidity requirements, as well as offering our customers a comfort level in knowing that their items are handled and stored correctly.

How strong is demand for temperaturecontrolled storage in the Middle East?

GLOBAL SHIPPING & LOGISTICS (GSL) - KHALID AL SHIRAWAI, EXECUTIVE DIRECTOR What type of temperature-controlled storage is offered by your company?

Global Shipping & Logistics (GSL) is one of the few service providers to offer storage from -25ยบC to 25ยบC within a single location.

Additionally, we offer temperature-controlled and cold storage from the same location.

What products need temperature control?

Customers who are either manufacturers or distributors of international and local brands are our primary customers. We are focused on chocolates, snack foods, drinks, jams and preserves in the temperature controlled area. In the cold store, we are focused on ice creams, frozen meats, ready-to-cook food, poultry and seafood.

What are the challenges involved with temperature-controlled storage?

The biggest challenge is maintaining the right temperature at all times from off-loading the cargo till storage and shipping. As the UAE has extreme temperatures, there is a challenge in not allowing the outside temperature to have an effect on the goods during off-loading and shipping. At GSL, we have answered 22 JULY 2010 | www.arabiansupplychain.com

Temperature-controlled storage is a major requirement in the Middle East. The challenge is to find the right partner who will do it.

This is based specifically on the challenges mentioned above.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

There are enough companies offering temperature controlled storage from a capacity perspective. However, the quality and process systems with most of them are not up to international standards. There is definitely scope for improvement for many service providers in adopting international systems and infrastructure. The addition of stringent quality processes is also a necessary tool to ensure compliance.

What makes your company different to others that provide this service?

GSL has invested in best-in-class infrastructure and systems, while our processes are tailormade for the temperature controlled and frozen business. We differentiate ourselves from other service providers by offering services customised to both the specific client and item handling/storage requirements. Starting from the system integration to the storage and handling of the goods, GSL provides complete control and visibility to customers.

We are proud to say that we have never lost a customer due to service issues.

Typical examples include fast moving consumer goods (FMCG), as well as white and brown goods.

What are the challenges involved with temperature-controlled storage?

Within cold chain management, our challenge remains operating a low energy facility that is compliant with LEED.

How strong is demand for temperaturecontrolled storage in the Middle East?

Demand is very good and we record an alltime peak in the summer months.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

I think we have quite a broad range of logistics providers here operating on conventional methods of storage and handling system.

We need to see more taking the initiative to move on to technology-driven applications for storage and handling systems to be able to operate at a low cost, thus passing this savings on to our clients.

What makes your company different to others that provide this service?

For starters, our facility is designed based on LEED and BREAM guidelines. This is one of its kind in the Sultanate of Oman, as well as the region.

The benefit to having a low energy consuming facility is the ability to operate at the lowest possible costs, thus enabling us to price our rates competitively. Besides the low energy factor, we also comply strictly with cold chain management guidelines.

This assures the client that product quality is maintained and product deterioration is also minimised.

TEMPERATURE CONTROLLED STORAGE

controlled. Working in temperature- controlled environments is much more convenient for the involved staff and we have seen huge increases of productivity, especially during the warmer part of the year.

What products need temperature control?

Within our facilities, we are holding a large variety of products. Amongst others, we are holding consumer goods from the beauty sector, together with electronic hardware containing components that are sensitive to high-levels of humidity and changes in temperature. We also store hanging garments for clothing retailers within Al-Futtaim.

What are the challenges involved with temperature-controlled storage?

AL-FUTTAIM LOGISTICS - TOM NAUWELAERTS, HEAD OF LOGISTICS What type of temperature-controlled storage is offered by your company?

Al-Futtaim Logistics offers a self-contained cold storage facility in Jebel Ali Free Zone, with the capacity to run at temperatures of 22ºC throughout the year. In addition, our new parts distribution centre for Toyota is temperature

GAC - PHIL SHOWERING, GENERAL MANAGER OF LOGISTICS SERVICES, DUBAI What type of temperature-controlled storage is offered by your company?

Understanding the transportation, handling and storage challenges of perishables, maintaining their temperature integrity is a top priority at GAC. Our flagship distribution centre GAC Logistics Park at Jebel Ali Free Zone houses a dedicated cold chain facility which utilises sophisticated technology for cold chain maintenance and automation for product handling. GAC’s road transportation network, supported by its fleet of vehicles featuring temperature-controlled and dual compartments refrigeration, also ensures a seamless transportation for perishable items.

High energy costs remain an important consideration, and to keep these costs to a minimum it is important to ensure that the facility has very good insulation and protection against leakage. Of course, back-up systems are also critical in the case of a potential electrical supply failure. When appropriate, the use of VNA (very narrow aisle) or mobile racking systems will ensure optimum storage density, thus minimising storage and energy costs per pallet or unit.

What are the challenges involved with temperature-controlled storage?

Chilled and frozen food must be managed, stored and transported within specific temperature ranges to ensure that optimum product viability or freshness is preserved and that safe and high quality product is delivered to the customers. Climate plays a crucial role in the Middle East, placing unique demands on temperature-sensitive goods and calling for special training and equipment. Chilled food particularly, are more vulnerable to spoilage through temperature variations, resulting in a much shorter shelf life. For example it is very important to our FMCG customers that there products do not rise above 18ºC in general, as this is when the likes of commodities such as perfumes or cosmetics can start to deteriorate, and will subsequently shorten the effective life of the product.

What products need temperature control?

GAC houses a number of perishable commodities within our distribution centre network, which span a range of particular temperature sensitive bands from pharmaceuticals, where we have vaccines and healthcare products that must not be exposed to temperatures above 8°C, to traditional frozen operations that are maintained at -30°C to ensure the freshness of the product.

How strong is the demand for temperaturecontrolled storage in the Middle East?

Demand for temperature-controlled storage – especially quality ones – is strong, as the importance of seamless links along the supply chain is heightened in the Middle East, due to the harsh climate. This is driven by regional consumption of the commodities as well as re-distribution to nearby markets.

How strong is demand for temperaturecontrolled storage in the Middle East?

Clearly with the climate in this region, it is critical to many businesses. There are many product sectors that would not require temperature controlled facilities in many areas of the world, but that do require it in this region due to the severe fluctuations in temperature and humidity.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

Cool storage is reasonably abundant, however there are very few companies in the 3PL market offering storage for frozen goods, predominantly food, and therefore companies whose core business is in the frozen sector have a limited choice of service providers.

What makes your company different to others that provide this service?

What distinguishes us from the competition is that we can offer cool storage in different types of warehousing, from basic infrastructure to very high-end state of the art infrastructure, like our part distribution centre in Dubai Industrial Park. We have the resources to ensure the satisfaction of customers.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

Within Dubai, there are a sufficient supply of logistics companies, with all the global players present, who are particularly strong and well represented throughout the GCC region.

What makes your company different to others that provide this service?

With 20 years of experience, GAC is best known for the quality of the service we provide and the knowledge of the local market.

Our success can be attributed to our long-standing customer partnerships, which we’ve nurtured with great care. As we’re in it for the long term, we value our customers’ loyalty and provide tailor-made solutions to their requests.

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TEMPERATURE CONTROLLED STORAGE

STORALL - GHASSAN ABUGHAZALEH, GENERAL MANAGER What type of temperature-controlled storage is offered by your company?

Storall already has a climate-controlled self storage facility that is used by many of our corporate clients. Most recently, we converted part of our main 3PL warehouse into a climate controlled racked area managed by our WMS.

What products need temperature control?

Products can include high-end IT related electronics, dry foodstuff, tobacco products and miscellaneous FMCG.

What are the specific challenges involved with temperature controlled storage?

TRANSWORLD LOGISTICS - WARREN JACOB, CHIEF EXECUTIVE OFFICER What type of temperature-controlled storage is offered by your company?

We offer -16ºC storage facilities, where we store juice concentrates. We have two chambers for this, in addition to offering cool temperature storage from 20ºC - 23ºC degrees.

What products need temperature control?

We handle storage for a world leader in flavors and fragrances, which stores its juice concentrates with us in the freezer rooms. Additionally, the cool temperature rooms have a mix of cargo, ranging from bottled juices to high value electronics, all of which require temperature controlled storage.

What are the specific challenges involved with temperaturecontrolled storage?

Maintaining temperatures of 20ºC - 23ºC degrees is straight forward but, when you have to maintain -16ºC degrees it calls for a lot of expertise in handling cargo inside the freezer rooms, as the temperature at no point of time can fall below an acceptable level.

How strong is demand for temperature-controlled storage in the Middle East?

There is a good demand for frozen cargo as there are not too many third party warehouses who offer this. Also, cool temperatures always yield better margins and allow us to demonstrate a high level of service capabilities to our clients.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

We are certain that there is ample amount of space available in the region today. However, logistics is not about just brick and mortar but a lot of other elements that help to complete the supply chain.

What makes your company different to the others that provide this service?

At Transworld, we pride ourselves in being a customer friendly company while at the same time offering truly world class services.

Our information systems offer customers real time updates on stock fluctuations, allowing them to generate a wealth of MIS information, which can be used for better planning and order replenishment.

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Allocating the appropriate funding for setting it up and controlling the running costs at a level that enables a healthy ROI.

How strong is demand for temperature-controlled storage in the Middle East?

It was strong enough for us to naturally progress into this type of storage – hence our new climate-controlled racked area expansion.

Traditionally Saudi Arabia was the biggest market for this type of storage, purely because their population demanded the volumes in terms of foodstuffs alone. The problem in places like that was quality of the actual facility. A lot of cooling and by extension, energy was wasted due to semi-professional facilities built in the region. Kuwait is another strong contender primarily because some vendors based there had major supply contracts to western military agencies. Over the past 15 years, Dubai has attracted more and more regional business because of the general professionalism that was offered here, both in facility construction as well as experienced management. With the population in Dubai standing at 8.2 million which is up from 4.7 million a mere 10 years ago, the demand speaks for itself.

Do you believe there is a sufficient supply of logistics companies that service this region, as well as market?

In light of the present market conditions, there is currently ample supply of this type of storage.

During the boom years 20012005/6 there was an extraordinary volume of warehouses built – almost all with the option to upgrade them into climate controlled units.

Unfortunately many of them are now standing empty due to the economic downturn and therefore, yes, there is now an oversupply of space in the market. One major factor of change is that logistics companies have become more cautious in their expansion plans, in that they want customers already in hand before committing to more leased space.

TEMPERATURE CONTROLLED STORAGE

COOLER CLIMATE ithin the United Arab Emirates, it takes a lot to impress. Bigger, better, and bolder are terms that remain entrenched in the daily vernacular. Even still, AlFuttaim Motors’ Parts Distribution Centre (PDC) is a behemoth of a building. Perhaps even more impressive is the fact that it is entirely climate-controlled. Walking into the warehouse, one is taken back, not by the summer heat radiating out, but rather the sheer size and organisation of such a fluent operation. Systematically arranged shelves,

W

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pristine aisles, dozens of forklifts buzzing around with smiling uniformed employees scanning the inbound and outbound goods, it is apparent that this is one operation that not only means business, but maintains the capability to stay cool under pressure.

The facility is located in the heart of Dubai Investment Park, around 20km inland from Jebel Ali Port and will be opposite the Dubai World Central development.

Given the location, just outside the city, traffic remains relatively light with several major thoroughfares within minutes. As Al-Futtaim Motors brings in eight to ten

containers daily, mostly coming from Japan and Australia, the location allows for ease in transit to and from Jebel Ali Free Zone, and across the road, for what will eventually be the world’s largest airport, Al Maktoum International.

Today, Al-Futtaim Motors’s PDC is one of Toyota’s largest and remains a 24-hour non-stop operation. With over two dozen electric forklifts, and a dozen or so electric trolleys operating seamlessly throughout, one gets the sense that this enclosed city never sleeps. At a total build cost of US$45 million, the site consists of two

TEMPERATURE CONTROLLED STORAGE

Aside from its immediate necessity of temperature-controlled storage in Dubai, Al-Futtaim Motors says an increase in worker productivity and morale have proved invaluable. seperate warehouses, which provide purpose-built storage and distribution facilities with enclosed storage space of more than 45,000m2, nestled on a 135,000m2 plot of land. “Th is is the best warehouse in the world,” states a prideful supervisor.

Toyota itself was integral during the design phase of the warehouse, as the lean-based Toyota Production System (TPS) has been implemented with a great deal of success. When walking through the immense facility, the Toyota-inspired themes of safety, productivity, quality and efficiency resonate throughout.

BUILDING & EQUIPMENT STATISTICS Concrete used: Bags of cement: Steel reinforcement: Cabling: Piping: Sprinkler heads:

14,148m³ 7903 437km 591km 34km 6800

Operationally, employees are central to the streamlined processes and strive to be error-free and risk-free, day in and day out.

Toyota imposes rules by which its PDCs are required to follow, as the Japanese automaker likes to see its distribution centres alleviate all unnecessary risk. For instance, restrictions are placed on the shelving height, as each row is limited to four levels, though their remains enough room for six to seven levels. With a self-supporting roof structure, removing the need for pillars, space remains abundant from top to bottom. “If infrastructure isn’t there, then neither is the efficiency, or business for that matter,” explains Tom Nauwelaerts, head of logistics, Al-Futtaim Logistics. www.arabiansupplychain.com | JULY 2010

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TEMPERATURE CONTROLLED STORAGE

“Mentality has changed from 20 or 30 years ago. It used to be ‘why do we need that changing room for our employees’, or ‘why do we need a fully operational industrial kitchen and canteen?’ You know, it’s the 10m2 of space here, or 15m2 over there that companies were reluctant to provide to employees. We find that by offering such amenities, employee morale improves, and consequently boosts productivity. You’ll find that the most successful of companies don’t skimp on such in-house measures.”

And when it comes to a controlledtemperature environment, research shows there is a direct correlation to worker productivity, especially those working in harsher climates.

“You won’t often find upper-management walking through a 45°C warehouse in the middle of the day. It just doesn’t happen,”

BUILDING & EQUIPMENT STATISTICS The Al-Futtaim Motors PDC is positioned in relation to the key areas of UAE; 120km from Abu Dhabi in the south, 120km from Al Ain in the east and 120km from Ras Al Khaimah in the north

$6 m illion

says Nauwelaerts. He adds, dds, only about half of the available however, that when the he lighting is i utilised, thereby temperature is controlled d saving on power. During the This is the co distrib and comfortable, morale day, natural sunlight coming natu s syste ution cen t of the m, wh tre’s amongst warehouse through translucent roof rac ic than 31,00 h consists king employees improves, panels illuminate the entire il to cov 0 shelves of more and superiors tend to warehouse o warehous facility, and no - eno er ove u pitch r 7 footba gh make more frequent nt lights are needed. es in total ll appearances. Both providee a With a daily da focus on efficiency boost to productivity. and producti productivity, employees are Consider also the benefi responsible for sending out or receiving sen enefit of having stock enclosed in a controlled product lines. Conside Consider that a normal day environment. In Al-Futtaim lines going in, and 5000uttaim Motors’s will see 5000-8000 line old Jebel Ali Free Zone facility, Everything from axles acility, it was not 8000 lines going out. E uncommon to see parts such to is h as chassis h i t sparkk plugs l i scanned, organised and and tyres outside, seemingly exposed to immediately stored or shipped. Managers the extreme elements. No longer is this the receive daily line reports from employee case, as everything is now contained scanners, and can easily recognise who under one roof and protected from the is moving the most goods in the quickest unforgiving climate. amount of time. For those whose numbers Aren’t the energy bills enormous, as it are unsatisfactory, Toyota has set up a can’t be cheap to air condition such a ‘Dojo’ adjacent to the warehouse, where massive facility? According to Nauwelaerts, workers’ scanning/sorting techniques are while there is an added expense, it can examined and critiqued with the hope of be offset by technologies such as cold improving line operations. water pumps (that maintain a more “Resources such as this make our facility stable temperature), as well as improved so highly efficient, as our employees remain insulation techniques. Additionally, to the foundation to our success.” concludes keep costs in check, on the night shifts Nauwelaerts.

With two dozen electric forklifts and a dozen electric trolleys in continous operation, workers share a friendly camaraderie as to who can maintain the highest efficiency rating

28 JULY 2010 | www.arabiansupplychain.com

global track

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WAREHOUSE FIRE PREVENTION

Playing with

Can the most up-to-date fire protection systems really guard warehouse operators from the threat of fire?

T

o the untrained eye, the latest in fire protection technology is something straight out of a science fiction novel. Take the latest highly-sensitive, laser-based VESDA detector for example.

This aspirating smoke detection system can intelligently detect a warehouse fire at the very earliest stage, triggering four programmable alarms. Each alarm has a threshold set by the warehouse operator enabling a measured staged response to any threat – from a suspicious investigation to the highest-level involving the activation of sprinklers and emergency services. Unlike other many of its counterparts, this device is planted at ground level, and not the ceiling – very handy for a warehouse whose ceilings are so high that by the time smoke reaches there, the fire has spread out of control.

VESDA is just one example of the many new fire detection and protection technologies available to warehouse operators desperate to protect their wares from damage. With the increase in warehouse fires being a continued cause of consternation for the Middle East, could these technologically advanced systems provide the solution to the problem?

Craig Nixon, business development manager at Tyco Fire and Security UAE, believes so. As a leading fire protection and detection company in the region, and agent for VESDA, Tyco is 30 JULY 2010 | www.arabiansupplychain.com

well-versed in protecting large buildings such as warehouses from fire. “Each company has to look at the risks presented in its warehouse to select the most appropriate system,” advises Nixon. “There is not one fix-it-all system for everything.” As warehouses, particularly in the Middle East, grow larger in size and volume, many of the previously used fire detection systems are now rendered largely ineffective.

“Some of the new advances in detection technologies have been really targeted to bigger facilities with higher and larger open areas,” Nixon agrees. “As the height of these facilities increase, detection becomes more difficult and normal point type detection will struggle to detect.”

Of course, it inevitably helps if fire protection needs are considered right at the beginning of the warehouse design process. Sadly however, it is much more often an afterthought once the warehouse has been built and the mechanical and electrical work has been done. “It is always easier to put systems in during the construction phase rather than do the work retrospectively,” emphasises Nixon. “Warehouse operators need to look at weight loading, water demands and those aspects which will potentially affect the structure itself during the design stage. When looking at racking systems within the storage facility for example, you need to take your fire systems into consideration during the design process of the warehouse.”

It is not only active fire protection systems which should feature highly on the action list at the design stage. Passive fire protection solutions can help minimise the damage of a warehouse fire, particularly in places like industrial zones where many buildings are located in close vicinity of each other.

Passive fire protection means taking structural considerations to hand when designing a fire-proof warehouse. This can be the key to reducing the odds of a fire occurring and to minimise damage through containment.

“There is definitely not enough attention placed on the importance of passive fire protection,” argues Mark Lavender, sales and marketing director for Promat Fire Protection. “A lot of attention is focused on active systems like alarms and fire extinguishers but an integrated approach with both active and passive systems working together to protect an asset would be more successful.”

Global company Promat specialises in passive fire protection solutions for the structure of buildings like warehouses, including fire compartments and barriers, sprays and paints, firestopping, fire rated partitions and ceilings as well as the protection of structural steelwork. As warehouses usually contain large undivided areas, the use of such methods, particularly fire walls or barriers, is extremely effective in avoiding the spread of fire, heat and smoke.

WAREHOUSE FIRE PREVENTION

Furthermore, the real benefit of passive fire facility. “Some companies simply don’t want to protection lies in maintaining the structure spend money on fire protection and will do the of building in the event of fire and preventing minimum required.” he says.

Despite their concerns however, both collapse. “Maintaining compartmentation can stop the spreading of a fire from warehouse companies remain optimistic that the Middle to warehouse, as we have typically witnessed East is slowly cottoning on to the benefits of in heavy built-up locations like industrial fire protection systems in line with its global zones,” says Lavender, pointing to the case of neighbours. Recent figures indicate that the Dubai Industrial City which fell victim to one global market for active fire protection is of the biggest fires to hit the region two years currently worth around US$5 billion annually ago. Starting as an explosion in a fireworks and set to grow by around 5% in the next couple of years. But is the technology warehouse, the fire spiralled enough to convince the region’s out of control and engulfed “There is warehouse operators? more than 80 neighbouring definitely not As operator of several warehouses in its wake.

With scenarios like this, enough attention warehouses in the region, Bernard Dias, operations it is not surprising that fire placed on the manager for RHS Logistics, protection specialists like importance of believes that most forward Lavender and Nixon often feel passive fire looking companies do consider frustrated with companies in the protection” fire protection as an investment region who complain about the and not a cost. “The cost of not cost of fire protection systems.

“Afterall, how expensive is the total loss of your having the right type of investment in fire business?” Lavender points out. “The cost of protection systems could be disastrous for passive fire protection systems are minimal the business,” he admits. The company uses in the overall construction cost and are only a highly sophisticated laser system for both a minor expenses in comparison.“ Nixon also fire detection and prevention to protect its agrees that whilst some warehouse operators warehouses. Additionally, an in-rack sprinkler in the region clearly do take fire protection very system and an overall sprinkler system in the seriously, others can be reluctant to invest the shipping marshalling zone are on hand, should capital required to get the best system for their they be deemed necessary.

Whilst Dias believes that automatic fire suppression systems with standby fire protection stations are imperative, other fire safety measures can be equally important without relying on the latest technology for implementation. In many instances, for example, a fire can be discovered by a worker prior to the activation of a fire detection system, and this can be invaluable in providing early warning to the other building occupants and to the local and public emergency services. Having all staff trained on fire prevention procedures and use of basic fire fighting equipment is relatively cost-free and essential as part of a complete and balanced fire protection plan.

Guidelines from bodies such as the USheadquartered National Fire Protection Association (NFPA) also advocate a balanced approach to fire protection which does not solely rely upon technology. Kathleen Almand, executive director at the NFPA’s Fire Protection Research Foundation, places the involvement of emergency response services at the top of the list. “Engaging the local emergency response team early in the design process of the fire protection system will ensure that it is designed with their capabilities in mind,” she says. Regular training of teams in the operation of the fire protection systems during a fire event is also essential.

Recent figures indicate that the global market for active fire protection is currently worth around US$5 billion annually and set to grow by around 5% in the next couple of years

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WAREHOUSE FIRE PREVENTION

The Foundation conducts research in the major NFPA standards areas, including sprinkler protection, fire alarm and signalling, hazardous materials protection, electrical safety, and fire fighter health and safety. “The major premise is that as today’s warehouses are getting larger in volume and contain more plastic based contents, it is increasingly difficult for emergency responders to play their traditional role in final extinguishment of fire,” explains Almand. “Typical fire protection systems (both suppression and detection) used for warehouses in the past needs to be reconsidered as contents and sizes change.”

Indeed, the new fire protection technologies and approaches developed in the last ten years are clearly a better fit for today’s warehouse.

Many of the new systems are based on lessons learnt from real warehouse fire investigations and the shortcomings of earlier systems, meaning better performance and costsavings in the long-term for warehouses.

“Fire protection is a means to mitigate the risk associated with the loss of warehouse contents,” Almand advises “There is a unique design solution for each warehouse – a competent fire engineer can provide the optimum solution for every company.”

At Al-Futtaim Logistics, all warehouses are being equipped with fire protection systems such as fire hose reels, fire extinguishers, early suppression fast response (ESFR) sprinkler systems, fire detection and alarm systems.

Refusing to compromise on health, safety

Warehouse operators have suffered from damage worth millions of dollars from recent fires in the Middle East

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and environmental standards, the company invests substantial amounts into ensuring that it’s warehouses are fire proof to the maximum extent possible. “We have reduced our risks by implementing the appropriate fire prevention and protection control measures and also the facilities covered by the insurance,” says Tom Nauwelaerts, head of logistics at Al-Futtaim Logistics. “The implications of a fire would be very serious for all involved parties, both financially and operationally.”

As well as ensuring the highest level of active and passive fire fighting equipment, the company prioritises periodical maintenance and checking, employee awareness and the applying of strict proactive fire safety measures.

“If the commercial goods stored in our warehouses become unavailable for sales, then we are causing a lot of consequential losses to our customers,” explains Nauwelaerts. “Getting those goods on the shelf again on short notice would be a very expensive supply operation for our customers, and nothing can make up for the poor resulting customer experience.”

Nauwelaerts believes that there have been lot of improvements with regards to the fire protection systems and regulations in the region over the previous years.

“The authorities like EHS Department in JAFZA (Dubai) and the municipalities are providing guidelines and recommendations to enhance the quality of fire protection and fire safety on a regular basis,” he says. “Other major efforts are also being done on fire prevention measures and making people aware of the potential risks that are around.”

As well as Dubai, other authorities have shown their willingness to clamp down on warehouse fire safety regulation.

Neighbouring emirate of Abu Dhabi, for example, is implementing an International Fire Code, based on the International Code Council standards in the United States, requiring all new buildings and extensions to have emergency exits, working alarms, smoke detectors, and sprinklers systems.

With local authorities attempting to drive forward the need for adequate fire protection in response to the recent number of warehouse fires, companies are clearly catching up to the idea. In reality however, as many companies find out to their own detriment, thinking you can get away with the most basic fire protection is a dangerously false economy. “Are they doing it just to meet minimum requirements or to get the best system for the facilities that they are protecting?” questions Tyco’s Nixon. “When you have warehouse facilities with hundreds of millions of dollars of goods in there, to spend a modest sum to protect that facility clearly makes good business sense.”

COMPANY PROFILE

Great

Expectations Capitalising on the growth of Qatar’s logistics industry, Gulf Warehousing Company (GWC) has emerged as one of the country’s biggest 3PLs, states CEO Ranjeev Menon.

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COMPANY PROFILE

triving to become not “I think 2009 will go down in the records as just a dominant logistics a year of great challenge and change,” states provider within Qatar, but Menon. “Ultimately, the global economic the dominant logistics crisis had a major impact on economic provider remains the goal for developments in virtually all business Gulf Warehousing Company (GWC). With sectors. It was however one of our best years, services that include contract logistics, as we achieved tremendous growth. Despite freight and transport management, tough market competitions, GWC enjoyed the support of current and international moving services, new customers to reinforce and records management our claim to be Qatar’s largest solutions, GWC continues to “Our goal is logistics solution provider. Our undergo domestic expansion. results reflect the strength of “We are still in the early to become our business model and our stages of the growth,” says the dominant ability to post gains even in Ranjeev Menon, chief executive logistics service officer of Gulf Warehousing provider in Qatar” the most challenging times.

While maintaining the focus Company. “Our goal is to be on expanding our client base, the dominant logistics provider we have strengthened our in Qatar. We continue to develop plans to stay ahead of competition offering by introducing new services like and remain the number one logistics Hazmat Logistics Solutions, and added greater service to our clients. We are proud provider for all business sectors.”

When asked what differentiates GWC to say that today, we are standing strong.”

Menon agrees the New Doha International from competitors, Menon is quick to credit the people, as well as policies, that have been Airport, set to handle a higher volume of air put into place. Of course, he says, the ability to cargo, will have a lasting impact on growth. deliver custom solutions to each customer’s problems, efficiently and effectively, doesn’t GWC Operations Timeline hurt either.

“Our employees and our systems make 2004 Gulf Warehousing incorporated as us who we are. Our employees are amongst a Qatari shareholding company in Doha the best in the industry and are constantly Stock Market trained to take GWC to the next level and 2004 Registered office begins operation they are assisted by our systems and in Al Khaleej Building, Doha, Qatar structured documented procedures,” adds 2005 First warehouse in Street 17, industrial Menon. “Additionally, a successful business area measuring 3100m² started operations will make each of its clients feel special by 2005 Construction of Street 15, industrial understanding and addressing their unique area warehouse takes place requirements and quickly solving problems.

2006 Street 15 warehouse and transport GWC’s focus on its customer, on delivering a commences operations in third quarter personalised experience, allows us to stand 2006 Awarded the contract to manage the apart from our competitors.”

Ashghal warehouse Launched in 2005, GWC commenced 2006 Acquired land in Messaid, Ras Laffan operations with a 3100m2 warehouse, and Logistic Village Qatar and has expanded much more since. At 2006 Construction of Ras Laffan warehouse the moment, GWC operates five different 2007 Awarded contract to manage the Qatar warehouses from its head office in Doha, Port warehouse Qatar, while continuing to grow into one 2007 Achieved the ISO 22000: 2005 certification of the leading logistics providers in the 2008 Completion of Ras Laffan warehouse, emirate. Menon hopes that the completion with operations commencing in the same year of Logistic Village Qatar (LVQ) at the end of 2008 Commence open yard operations in Messaid this year will provide GWC with a suitable 2009 Awarded contract to manage the Centre platform for such growth. The new facility Tender Committee Warehouse will have one million square metres of 2009 Achieved the OHSAS 18001: 2007 dedicated and multi-purpose warehousing certification space, car storage, PDI area, a container 2009 Opened a 4000m² warehouse for yard and repair depot. hazardous material But surely, considering market conditions 2009 Construction of Messaid warehouse in the past 18-24 months, GWC has made 2010 Construction starts on the large-scale some unexpected cutbacks and possibly Logistic Village Qatar development scrapped some plans for expansion, right?

S

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COMPANY PROFILE

Ranjeev Menon, CEO of Gulf Warehousing Company, states that promoting the 3PL concept to the Qatari market remains one of the major obstacles he is working to overcome

According to projections, air cargo will grow at 8.2% per annum on average, based on performance by national carrier Qatar Airways. Additionally, road haulage is projected to grow by 7.3%, just slightly ahead of the growth of the economy. “The logistics market for Qatar is strong and we foresee significant growth in the industry. The reason being that the country’s marine cargo volumes are set to increase significantly over the next few years,” says Menon “Consider that cargo volumes handled in Qatar’s Port of Doha, as well as the upcoming New Port of Doha, are projected to grow very strongly. The volumes handled over the next five years will increase an annual average rate above GDP (expected to be 8.3%) and close to foreign trade (expected to be 12.1%). By 2014 we expect the number

of containers handled at the Port of Doha to be up to 427,811 TEUs, while at the New Port they will have reached 106,953 TEUs,” continues Menon.

When considering the challenges faced, Menon acknowledges that promoting the 3PL model to the Qatari market is one of the major obstacles he is working to overcome.

“Third party logistics services are still in an initial development in Qatar. The introduction of these services has proved beneficial to the state’s business sector. The main challenges faced are relating this new concept to the customers,” says Menon.

“The concept of 3PL is still at a development stage and we have been promoting the use of these services to all business sectors.

We believe that it is more cost-efficient for business sectors to outsource their logistics

requirements. This development will take time, however, there is a huge potential for the concept of 3PL in Qatar. In line with this, we are working together with the customers to explain the benefits of using a third party logistics companies.”

In such a new market, a company such as GWC will have to build its brand from the inside out, as the customers that have never used 3PL services will indeed take time to come around. So what does Menon feel is the differentiating factor in GWC’s services, which will inevitably sway such an untapped client base? “There is an obsession with perfection within the company, ensuring that our timelines are continually met,” he concludes. “Great care of service is provided to customers at all times to guarantee that everyone is satisfied.”

GWC’s Qatari Facilities Located in the Doha Industrial area, GWC’s flagship warehouse site, ST15 Industrial Estate, consists of a purpose built 25,000m2 facility comprising 46,000 pallet locations.

The warehouse is now open and offers ambient high rise storage and frozen / temperature controlled storage to its 3PL customers. The company also has facilities at Ras Laffan Industrial Estate, HAZMAT Warehouse in Ras Laffan, Meddaid Open Yard and Logistics Village Street 54 New Industrial Estate.

Road haulage figures within Qatar are projected to grow by 7.3%, thereby outpacing expected economic growth

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FLEET MANAGEMENT

MONITORING

MOTORISTS

38 JULY 2010 | www.arabiansupplychain.com

Can fleet management systems help to reduce the number of road fatalities in the Middle East?

FLEET MANAGEMENT

river safety has become a major talking point for fleet “Education and awareness is essential in developing the regional managers in this region, especially with worrying market for FMS. Companies need to understand the difference increases in the number of road accidents within the between tracking systems and fleet management systems. The latter Middle East. According to governmental statistics, is capable of reporting on how the vehicles are actually be used,” approximately 1000 road deaths were reported in the says Ghazzawi, who claims FMSi can potentially save its customers United Arab Emirates last year, which has increased the pressure on between 15%-35% in operational costs. “This is a substantial amount transportation companies to increase their safety standards. for logistics companies, where competition is intense and margins Technology could play an important role in this turnaround, with are low.”

Fleet Management Systems (FMS) often claiming to reduce the These savings are fuelled by the ability of fleet management systems number of accidents on the road by issuing reports for customers to monitor the habits of drivers. For example, an employee who drives whenever one of their drivers has performed a dangerous or erratic erratically and brakes harshly can increase the maintenance costs manoeuvre. In addition, these systems also have the potential to for brakes and tyres. In addition, inconsistent acceleration not only reduce fuel and maintenance costs, lower insurance premiums and affects the fuel consumption, but reduces the lifespan of a vehicle extend the lifespan of a vehicle. However, despite these too. And drivers who consistently take longer breaks marketable benefits, it seems the response towards FMS than allowed by their employees are causing delivery has been relatively lukewarm in the Middle East.

“We will continually delays, which result in customer dissatisfaction.

“After starting operations in the United Arab modify the network However, passing the buck to customers because Emirates a few years ago, we noticed that companies of their limited product knowledge is overlooking design to ensure liked the concept of fleet management systems, but another important influencer in the success of fleet minimum lead times management systems. According to Ghazzawi, the lack were sluggish when it came to commitment,” explains and costs” Naim Hadi, general manager of Trakker Middle East, a of professionalism from certain quarters in the industry pioneer of FMS technology in South Africa, Pakistan, has also affected the market demand.

Europe, Australia and Brazil. “However, it takes time to “Some competitors in the Middle East are operating educate the market. In the United States and Europe, this technology on a temporary basis, which hurts the market. Vendors will arrive, has existed for over 30 years now and it’s had a presence in markets open for a couple of months and then close their operations. There such as South Africa for 25 years.” is little reliability,” she says. “The reason for their failure is the vague Another local supplier, Fleet Management Systems International nature of the services being offered. These companies are selling FMS (FMSi), has firsthand experience in this regional reluctance, after alongside security systems, which means they don’t have specialist establishing its Middle Eastern office over a decade ago in Abu knowledge in the technology. As a result, a customer’s perception is Dhabi. “In the past ten years, the popularity of fleet technology has clouded by misleading information.” been limited. It’s not been fully implemented by target markets, such Concerns about discrepancies in the choice of suppliers seem as government agencies and insurance companies,” states Rani commonplace in the fleet technology market. Mohammed Aljaibaji, Ghazzawi, general manager of FMSi. Middle East business development manager, Fleet Management Since the education process in FMS’s regional promotion is Solutions, believes customers should take action measures to ensure ongoing, the local suppliers are keeping optimistic that change their suppliers are legitimate. A bit of due dilligence, he says can go a is just around the corner, with the Middle East market having the long way to ensure you’ve made the right decision. potential to eventually match its counterparts around the world.

“In this region, once companies learn about this product and In more developed markets such as Europe and North America, for decide it’s a worthwhile investment, they should research the market example, companies that implement fleet technology can financially and pick a supplier that understands their needs,” he says. “Training benefit from provided discounts and incentives from their respective is essential too, because some customers have limited experience insurance companies, potentially offsetting any costs incurred. with such technology and the type of information and data that is

D

Fleet Management Systems (FMS) can positively impact maintenance costs, lower insurance premiums and extend the lifespan of a company’s fleet in the Middle East

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FLEET MANAGEMENT

being provided cannot be easily absorbed by their staff. This renders America,” adds Dass. “This could help the Middle East to reap a greater level of rewards, such as lower insurance quotes and other the system very expensive and complicated.”

Although a certain amount of scepticism continues to surround savings. Technology costs are also coming down thanks to the global this technology, the boom in infrastructure development within the development of the telematics sector and the expansion of GSM Middle East means the systems cannot be ignored forever. Indeed, networks in the region.”

But its not just logistics companies that benefit from the systems, the intensification of growth and competition in the region has oil and gas companies have actively embraced the technology too. helped to increase the significance of FMS. FMSi is the official supplier to multi-national companies “As business growth scales up, the natural like Alkool, Shell, Figaro and Adnoc. Car rental requirement for operational control also increases and “Many fathers companies are also heavily reliant on the technology as hence fleet management systems have come into focus are installing the FMS helps to minimise the number of stolen cars. There now,” reports Ashish Dass, vice president of 3i-Infotech.

“Infrastructural growth expectations are facing systems in to their are many cases where people will hire a car, drive out various challenges like constraints in the availability child’s car once they the country, never to return again.

“FMS’s not only protect businesses from risks, but of inexpensive human resources, road congestion have passed their there are a large proportion of individuals in the Middle and the time-critical nature of customer service; all of driving test” East purchasing the products,” says Dass. “The rising these are pointing to the need for greater levels of fleet number of accidents on the roads has resulted in people management automation.”

Such issues are becoming commonplace, and together with the becoming more anxious about their children’s driving habits. Many market concerns expressed by supplier, the sector could benefit fathers are installing the systems into their child’s car once they have from stricter regulations to be enforced throughout the Middle passed their driving test to ensure that they are driving responsibly East. “The industry is going through a dynamic phase and in fact on the road and not putting themselves or others in danger. To many there have been attempts to formalise industry bodies, for example, this may seem extreme, however, safety and protection on the roads introducing fleet management associations in the region, as they is a growing concern in the Middle East and FMS can offer peace of exist in the more developed markets, such as Europe and North mind to both businesses and families.”

FLEET MANAGEMENT SYSTEMS: PRODUCT ANALYSIS C-TRACK SOLO SUPPLIER: TRAKKER MIDDLE EAST

DigiCore’s flagship product, designed as a complete solution provider for fleet management requirements and marketed as an essential part of every modern transportation fleet is being adopted by leading multinationals and local companies. C-track Solo is a full featured scaleable, remotely upgradeable product for haulers, logistics and supply chain management, mobile workforce management and emergency services application.

C-track Solo is based on a newly developed hardware platform which utilises the GPS technology to provide vehicle positioning within 10 metres average accuracy and uses Etisalat’s GPRS/SMS network to transmit real time information, 24 hours a day, all year round.

FLEET MANAGER 200 PLUS SUPPLIER: FMSI

The FM Performer is designed to help customers manage their staff and vehicles more effectively, ensuring optimum performance and fleet savings. By gathering objective data about how a company’s vehicles are driven and by whom, the customer can also improve driver safety and extend the life of their vehicles, whilst cutting maintenance costs.

THE ORION ADVANTAGE SUITE SUPPLIER: 3i-INFOTECH

The ORION Advantage is designed as a ready-to-deploy, singlewindow ERP solution package. The package comprises hardware, operating system, database and a micro-verticalized ERP application.

It is designed for small and medium businesses (SMBs) to save costs, time and resources from day one, in order to deliver maximum ROI. With ORION Advantage, customers can take advantage of3i-Infotech’s alliances with various technology leaders, by enjoying a range of special rates and service terms. ORION Advantage comes with pre-installed Oracle database, an HP dual processor Xeon server usage package, and a Windows 2003 server, among other things.

The boom in infrastructure development should increase the significance of FMS

40 JULY 2010 | www.arabiansupplychain.com

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TOP 10 MIDDLE EAST AIRFREIGHT HUBS

0 1 P O TMIDDLE EAST AIRFREIGHT HUBS 2010

DUBAI INTERNATIONAL AIRPORT

While the impact of the global recession has still been apparent in the Middle East airfreight sector, the region has started to experience a healthy upswing in cargo volumes over the past year. Based on the official 2009 statistics of Airports Council International (ACI), we present the latest edition of our Top 10 Airfreight Hubs in the Middle East.

42 JULY 2010 | www.arabiansupplychain.com

Supported by the emirate’s growing reputation as a Middle Eastern superhub for cargo operations, Dubai International Airport was able to weather the global downturn better than the majority of its counterparts around the world, handling close to 2 million tonnes of cargo in 2009. This marks an increase of 5.6% compared to the previous year’s figures. Hosting the passenger and cargo services for over 40 airlines, DXB airport is the main hub for airlines such as Emirates, FlyDubai, Palm Aviation, Royal Jet and Dubai Royal Air Wing.

TOP 10 MIDDLE EAST AIRFREIGHT HUBS

SHARJAH INTERNATIONAL AIRPORT Climbing to the second position and yet another entry for the United Arab Emirates, Sharjah International Airport has steadily continued to develop its share of the Middle East airfreight market over the years and 2009 was not an exception. Despite the challenges presented from a global recession, the airport handled 421,398 tonnes of cargo in total last year, marking a double-digit increase of 16.1% compared to the previous year.

ABU DHABI INTERNATIONAL AIRPORT Operated by Abu Dhabi Airports Company (ADAC), Abu Dhabi International Airport is the second largest airport in the United Arab Emirates and one of the fastest growing in the region. A hub for Etihad Airlines, the airport is served by over 30 international and regional airlines. A total of 382,523 tonnes of cargo was handled in 2009, according to Airports Council International (ACI), which marks a healthy increase of 7.4% over the previous year.

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TOP 10 MIDDLE EAST AIRFREIGHT HUBS

BAHRAIN INTERNATIONAL AIRPORT Operated by the department of Civil Aviation Affairs, Bahrain International Airport is the main gateway to the Kingdom of Bahrain.

Hosting passenger and cargo traffic from over 30 regional and international carriers, Bahrain International Airport is the main hub for airlines including Gulf Air and Bahrain Air. It is also a regional base for logistics heavyweight DHL. The facility, which was nudged out of the top three by Abu Dhabi International Airport, handled 342,724 tonnes of cargo in 2009, a decrease of 6.9% over the previous year.

KING ABDULAZIZ INTERNATIONAL AIRPORT King Abdulaziz International Airport is the gateway to Jeddah, Saudi Arabia and one of largest airports in the region. Hosting regional and international passenger and cargo services for over 30 airlines, the airport is the major hub for Saudi Arabian Airlines. Between January and October 2009, the airport handled 173,630 tonnes of cargo, which marks a decrease of 4.6% over the same period in 2008.

KING KHALID INTERNATIONAL AIRPORT Operated by Fraport Saudi Arabia Ltd, King Khalid International Airport is the international gateway to Riyadh and marks Saudi Arabia’s second entry in the top 10. Hosting passenger and cargo services for over 30 airlines, the airport is a major hub for Saudi Arabian Airlines, Nas Air and Sama. It handled 168,687 tonnes of cargo in total between January and October 2009, marking a doubledigital decrease of 11.2% compared to the same period in 2008.

44 JULY 2010 | www.arabiansupplychain.com

TOP 10 MIDDLE EAST WAREHOUSING HUBS

KUWAIT INTERNATIONAL AIRPORT Kuwait International Airport is located in Farwiniyah and is the main gateway to Kuwait City. Hosting regional and international passenger and cargo services for over 25 airlines, the airport is a hub for Kuwait Airways, Jazeera Airways, Wataniya Airways and LoadAir. A total of 197,984 cargo tonnes was handled at the airport in 2009, a solid increase of 9.9% compared to the previous year.

QUEEN ALIA INTERNATIONAL AIRPORT Queen Alia International Airport is Jordan’s largest airport. It is the home hub of Royal Jordanian Airlines, the oneworld aligned national flag carrier, as well as being a major destination for Jazeera Airways, Gulf Air and Jordan Aviation.

Cargo volumes were down in 2009 at the airport, with 82,183 tonnes being handled last year – a decrease of 5.8% compared to figures in 2008.

www.arabiansupplychain.com | JULY 2010

45

TOP 10 MIDDLE EAST AIRFREIGHT HUBS

BEIRUT-RAFIC HARIRI INTERNATIONAL AIRPORT Lebanon makes its first and only appearance in the top 10 at number nine. The country’s flagship Rafic Hariri International Airport in Beirut is Lebanon’s biggest airport facility, which saw a 5.8% increase in cargo throughput last year, reaching a total of 72,589 tonnes in total.

KING FAHD INTERNATIONAL AIRPORT King Fahd International Airport in Dammam has slipped down the list of top Middle Eastern airfreight hubs this year, with 55,627 tonnes of cargo being handled between January and October 2009. Although the figure is respectable, it also marks a considerable decrease of 32.1% compared to the same period in 2008.

46 JULY 2010 | www.arabiansupplychain.com

ASK THE EXPERT

GAINING MOMENTUM QUESTION: How can outsourcing provide a win-win situation for logistics firms and clients in the region?

FACTORS PUSHING COMPANIES TO OUTSOURCE THEIR SUPPLY CHAIN

THE CHALLENGE OF SELECTING A CAPABLE 3PL PARTNER

A FOCUS ON AGGRESSIVE GROWTH OVER THE COMING YEARS

Although the business environment has been challenging in recent times, such conditions create opportunities too. The extraordinary levels of growth in the region over the past few years has led to many companies developing their own logistics departments and purchasing their own equipment. Given the current environment, such companies are seeking opportunities to increase efficiencies, reduce costs and focus on their core business. Therefore outsourcing to a professional 3PL provides such clients the potential to achieve improved efficiencies, cost reductions and the opportunity to get back to the basics.

In some cases the shift from in-house logistics to the services of a 3PL provides an opportunity to raise capital through the sale of their assets directly associated with logistics. I believe the industry will, in the long-term, benefit as more organisations outsource services.

As in any business relationship, it’s important to assess what you want your 3PL provider to bring that will benefit your business and allow you to feel comfortable with your decision. The most crucial factor to satisfy is whether a 3PL has the capability to deliver your specific requirements.

Obviously requirements will differ from company to company, thus the criteria for assessment will differ. In addition to having the relevant capabilities, we believe that one of the key traits of a successful 3PL company is based on their ability to effectively communicate. At Momentum Logistics, the team recognises that whilst we are in the logistics industry, we are also in the communication business. In order to communicate effectively a 3PL needs to have robust processes backed up by an effective information technology system and most importantly the right people.

These factors should be considered when selecting a service provider.

To capture a larger share of this market, the focus of Momentum Logistics is growth, aggressive growth. Momentum’s strategy is built around the core business divisions of transportation, freight forwarding, logistics cities, container repair and contract logistics. These activities will be expanded and enhanced as evidenced in recent months through the tie up with Avalon, the opening of freight offices in Dubai, Abu Dhabi, Iraq, and the launch of a third container repair depot in Sharjah. This year will also see Momentum open offices in Saudi Arabia, Qatar and Kuwait. During the course of the next five years, our company will continue to aggressively develop its geographical footprint throughout the Middle East, Europe, US and Africa.

KEY OPPORTUNITIES IN THIS RESILIENT MIDDLE EAST MARKET As we have indicated, the opportunities for professional logistics companies and 3PLs are considerable, in a region which is still relatively buoyant economically and where the logistics industry is still rapidly developing. There are still many companies that can benefit from outsourcing the management of their supply chain and logistical requirements to a capable 3PL which can subsequently deliver cost benefits, improved service levels and improved efficiencies, all of which are currently more welcome than ever. Therefore, the fact remains the same - an efficient supply chain is to the benefit of everyone, from companies themselves to the end user consumer.

48 July 2010 | www.arabiansupplychain.com

This month’s column was written by Matthew Derrick, general manager of Momentum Logistics

BARRIERS THAT CLIENTS FACE IN TERMS OF SUPPLY CHAIN EFFIFIENCY One of the main factors in the UAE is restrictions on trucks using the roads, where they are only allowed to use certain roads at certain times or, in some cases, not at all.

This significantly reduces the utilisation of resources; drivers and equipment and thus drives up the cost of distribution. With regards to the GCC, border crossings can still be time-consuming and at times frustrating, although improvements are being made, there remains scope for more improvement. Unfortunately, the benefits an effective supply chain brings is not always fully appreciated. However, many companies have started to realise the full complexity of their supply chains and exactly what improvements an effective supply chain can deliver. The importance of properly managing these supply chains is becoming more evident as are the cost benefits that can be derived from an efficient supply chain.

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 210,000

450

30April

430 175,000

14 May

406

23 April

410

418

4 June

140,000

385 370

105,000

21 May

373 70,000 330

35,000

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).

11 Jun 10

4 Jun 10

28 May 10

21 May 10

14 May 10

07 May 10

30 Apr 10

23 Apr 10

16 Apr 10

09 Apr 10

250

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

MARCH 2010/2009

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

July 09

June 09

INDEX 100 = 53.5 US cents per US gallon

May 09

0 April 09

290

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

MARCH 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

136,318

26.5

359,829

20.5

Accra (Ghana)

3963

-10.3

10,903

-10.9

Brussels (Belgium)

46,861

20.7

113,836

4.6

Addis Ababa (Ethiopia)

3591

-39.9

10,151

-39.7

1857

-17.8

4434

-19.2

968

-3.8

2816

3.0

Cologne (Germany)

54,646

17.6

144,572

12.7

Algiers (Algeria)

Frankfurt (Germany)

207,044

35.5

535,305

31.5

Antananarivo (Madagascar)

Istanbul (Turkey)

41,641

36.9

110,320

43.3

Leipzig (Germany)

53,414

36.3

143,767

31.8

London Heathrow (UK)

139,669

28.6

370,480

21.6

Luxembourg (Luxembourg)

62,978

12.0

164,641

8.8

Paris (France)

183,100

15.1

485,750

12.4

Vienna (Austria)

21,526

36.0

56,348

34.6

Warsaw (Poland)

5014

9.6

13,106

28,871

21.1

77,876

Zurich (Switzerland)

28,271

17.4

82,777

11.9

Casablanca (Morocco)

4670

-21.9

12,578

-16.5

Dar Es Salaam (Tanzania)

Cairo (Egypt)

1257

-11.3

3734

-13.1

Djibouti (Djibouti)

136

n/a

1777

-15.3

Harare (Zimbabwe)

1961

22.6

5205

9.1

24,973

2.1

71,034

13.0

Libreville (Gabon)

1607

-7.7

4517

-8.9

7.3

Saint-Denis (RĂŠunion)

2965

12.9

8427

18.0

18.2

Tunis (Tunisia)

2057

33.6

4974

21.8

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).

50 JULY 2010 | www.arabiansupplychain.com

INDUSTRY STATISTICS

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

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

MARCH 2010/2009

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

37,837

23.8

101,357

22.6

Ahmedabad (India)

Amman (Jordan)

7566

15.1

20,850

12.8

Bangalore (India)

Bahrain (Bahrain)

31,398

5.9

84,299

0.3

Bangkok (Thailand)

Beirut (Lebanon)

6946

10.1

18,392

9.6

Calcutta (India)

201,589

26.5

544,750

28.1

2627

(16.6)

9,010

1.4

Abu Dhabi (UAE)

Dubai (UAE) Fujairah (UAE)

MARCH 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

2384

32.8

6564

32.2

6918

-47.7

37,257

-0.0

113,035

37.8

309,054

43.1

10,169

31.7

28,198

31.8

Colombo (Sri Lanka)

15,364

33.2

40,856

31.1

Fukuoka (Japan)

22,928

10.5

60,555

9.2

350,262

29.4

914,145

33.7

Kuwait (Kuwait)

18,149

16.5

47,662

10.6

Hong Kong (China)

Muscat (Oman)

8155

69.6

22,653

64.0

Jakarta (Indonesia)

44,422

18.6

128,002

20.1

281

68.3

905

57.9

Kuala Lumpur (Malaysia)

62,249

33.5

162,302

28.5

34.3

Manila (Philippines)

36,562

56.6

100,514

59.4

Ras Al Khaimah (UAE)

36,249

Sharjah (UAE)

3.5

111,792

Mumbai (India)

58,962

24.0

161,112

26.4

*

Osaka (Japan)

65,064

32.2

171,747

36.7

YEAR-TO-DATE 2010/2009

Seoul (Korea)

14,115

-8.9

38,517

-8.4

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

MARCH 2010/2009 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Shanghai (China)

285,684

48.8

739,940

59.0

191,389

55.5

531,262

40.2

Singapore (Singapore)

159,361

18.4

435,087

18.1

Taipei (Taiwan)

158,015

64.8

412,255

70.3

Tokyo (Japan)

196,828

41.0

515,873

41.9

Buenos Aires (Argentina)

17,953

32.5

43,095

28.2

Chicago (USA)

118,848

46.0

311,917

33.8

Los Angeles (USA)

147,926

25.2

404,967

25.2

Memphis (USA)

335,082

12.0

951,802

8.8

Mexico City (Mexico)

33,616

25.9

89,810

22.7

*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:

W E T E ST F O R YO U I N T E R R O L L P R OV E N S O LU T I O N S F O R SA F E , R E L I A B L E A N D E A S Y DY N A M I C S T O R A G E

• 6 different life time machines on 800 sqm area Interroll’s international test centre in La Roche-sur-Yon, France

• Deep freeze room (- 28 °C) • Toughest conditions tests • Pallet tests with original customers‘ pallets • Pallet Roller Flow test lane for any length • Finite Element Analysis (FEA) • Fully dedicated R& D EN ISO 9001

Certificate N°. 71 100 I 190

Interroll Fördertechnik GmbH · Höferhof 16 · 42929 Wermelskirchen · Germany · Tel.+49 2193 2 31 27 · Fax + 49 2193 2 31 22 b.caliskan@interroll.com · www.interroll.com

www.arabiansupplychain.com | JULY 2010

51

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

544

753

n/a

Fujairah (UAE)

442

454

724

n/a

Hamburg (Germanry)

430

450

663

630

Houston (USA)

416

434

n/a

n/a

Istanbul (Turkey)

459

479

710

n/a

New Orleans (USA)

428

444

n/a

655 n/a

Piraeus (Greece)

441

462

669

Rio de Janeiro (Brazil)

449

467.5

704

n/a

Rotterdam (Netherlands)

422

439

656

n/a

Shanghai (China)

480

489

715

n/a

Singapore (Singapore)

435

441

441

n/a

*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 June 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

435

350

275

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

Apr 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sep 09

Aug 09

Jul 09

Jun 09

May 09

0

12 Jun 10

n/a

12 Sept

12 May 10

Cape Town (South Korea)

425

12 Apr 10

701

12 Mar 10

710

12 Feb 10

476

12 Jan 10

466

12 Dec 09

Busan (South Korea)

12 Mar

459.5

12 Nov 09

MDO

12 Oct 09

MGO

12 Sept 09

IFO180

12 Aug 09

IFO380

12 July 09

PORT / COUNTRY

APRIL 2010 Discharged

YEAR-TO-DATE

Loaded

Discharged

Loaded

2,165,662

508,969

6,749,980

2,318,184

381,882

3,843,725

1,508,121

16,337,706

629,519

66,087

2,214,118

289,424

2,466,801

1,779,548

8,899,856

6,443,013

140,763

14,239

533,289

53,528

8.909

n/a

46,631

n/a

5,793,536

6,212,568

19,951,995

25,441,855

12,006,104

45,393,850

2010

2009

April

Year-to-Date

March

Year-to-Date

Discharged

214,005

786,684

191,329

667,199

Loaded

189,030

761,818

167,453

699,210

TOTAL

403,035

1,548,502

358,782

1,366,409

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

52 JULY 2010 | www.arabiansupplychain.com

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

10th – 12th October 2010 TRANSOMAN

24th October 2010 CILT NETWORKING EVENT

26th – 28th October 2010 SEATRADE MIDDLE EAST

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

Held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of UAE and ruler of Dubai, Sea Trade Middle East Maritime 2010 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

23rd – 24th November 2010 TRANS MIDDLE EAST

1000 2 25th – 28th November 2010 m

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

HANDLING EXPO

Marketed as the largest annual material handling event in the Middle East, Handling Expo makes a return to Cairo International Convention Centre in November, bringing together buyers, sellers and end-users from across the region to interact and collaborate.

Attendees at the four-day exhibition will find the newest technologies and applications to make their operations leaner and more productive. Last year’s exhibitors included the likes of Landoll, Crown, Yale, Nissan Forklift, Interroll and Hyster.

VENUE: Cairo International Convention Centre EMAIL: info@ifg.eg.com WEBSITE: www.handlingexpo.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

54 JULY 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

25th - 27th 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 attracted 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

PASSING THE TEST

The Chartered Institute of Procurement and Supply (CIPS) has ambitious plans to boost its presence in countries such as the UAE, Saudi Arabia and Qatar, explains general manager Rebecca Fox. What are the primary advantages of CIPS membership in the Middle East?

Membership will enhance your status as a purchasing and supply practitioner and give you the backing of a well-informed professional body. In fact, our research shows that CIPS members enjoy higher salaries than their non-member colleagues in similar roles. In addition, our structured ladder of qualifications means you can quickly build on your existing experience and qualifications to achieve a CIPS qualification in purchasing and supply management.

What markets or partnerships is CIPS looking to ascertain in the coming year?

I would say Abu Dhabi, Dubai, Qatar, Kuwait, Saudi Arabia and Bahrain. They are attracted to the certification as well as the level of transparency associated with a respected international standard. We’ve recently worked with DP World, DU, Emirates Airline, ADNOP and ENEC. The benefit of partnering with such organisations is that by signing on, they are saying ‘Yes, we recognise the stringent criterion and wish to be compliant to the highest of international standards’.

The partnership with CIPS and the UN was highly publicised. What does it cover?

Developing the capacity of national governments to better manage the procurement process and raise standards in supply chain management saves money and ensures the quality and timeliness of goods and services procured. It is also a precondition for the transparent and accountable use of public funds. In order to enhance its contribution to these goals, UNOPS is working with the Chartered Institute of Purchasing and Supply to support national capacity development in these fields. This will be done by providing consulting, procurement training, project management and CIPS certification.

56 July 2010 | www.arabiansupplychain.com

The reputation of CIPS for offering comprehensive education programmes is world-renowned. So what is next?

From entry level into the profession, you might have very little educational background and you can progress through our qualifications all the way to degree level.

From level two to level six. At the moment we’re only offering levels three and four, which goes into advanced diploma level. You can study online, you can study face to face at Dubai University, you can go to evening classes or weekends. We want to maintain as much flexibility as possible for our students.

Your consultative response process allows your members to express their views at the highest levels of government. How so?

We lobby governments and business on our client’s behalf, so that they understand the contribution that our partners and colleagues make to corporate, national and international prosperity. We also offer study programmes that are recognised around the world and promote a code of ethics that has become the international benchmark for purchasing and supply practice.

This all falls within our consultative response process and helps to provide greater value for our members.

Can you tell me more about the royal charter that CIPS was awarded in 1992?

Royal charter means that in theory we report to the queen. The queen will award a public charter if she believes you are acting in the public interest. As such, CIPS is a not-forprofit organisation with a charitable status.

Obviously we’re not operating for a loss either, however we do re-invest all profit into things like conferencing, marketing materials, developing qualifications, trying to work with study centres, and generally promoting the profession as a whole.

Regarding the seven membership types, is there a minimum or maximum number of applicants you will take on?

Well, there are seven categories of CIPS membership, and currently there are no quotas or limits placed on applicants. If you are joining to study for a qualification, you will initially be registered as a student member. Once you have successfully completed a level of study then your membership will be upgraded and the appropriate membership certificate will be awarded. Following student membership, comes certificate membership, diploma membership, associate membership, full membership and finally the fellow (FCIPS).

What are your expectations in terms of developing CIPS in the Middle East?

Although I am by no means a fortune teller, I think 2010 will finish on an upswing in comparison to 2009. By the end of the year I would like to increase our membership in the Middle East region, as well as see a member company be the first one to receive our gold certification status. I am confident we will witness both events take place by the end of 2010.

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

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Clearing & Forwarding and free projects in the Sohar Industrial Port area.

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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.

sizes and volumes.

the Sultanate, MEST has moved several million freight tons through the Omani ports for various projects in the last few years.

Road Transport (Land-side Transport) Project Cargo Management

Freight Forwarding (Air & Sea) Dedicated Safety Team

forwarding in Oman & UAE, Global Freight Forwarding and land transport

includes specialized vehicles for heavy and over dimensional cargo.

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Core Services: s Freight Management and Customs Brokerage s Automotive Logistics s Warehouse and Inventory Management s Domestic and International Transportation s Project Cargo and Heavy Lift s International Moving

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