Logistics Middle East - Sept 2010 by ITP Business Publishing

An ITP Business Publication Licensed by Dubai Media City

RACKING REPORT How is the racking sector coping with limitations in new warehouse launches?

WELCOME RELIEF NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

Andreas Mohr, chief executive officer, Jassim Transport and Stevedoring Company (JTC)

SEPTEMBER 2010 ISSUE 72

Middle East logistics firms stand united to support victims of Pakistan floods

KUWAIT CREDENTIALS Celebrating its 30th anniversary, Jassim Transport and Stevedoring Company (JTC) outlines its most ambitious expansion to date

ALBA LOGISTICS І ARAMEX І EHRHARDT + PARTNER І BARLOWORLD І FAMCO І AGILITY

CONTENTS

CONTENTS Issue 72 September 2010 For the latest news and stories go to

18 02 Editor’s Letter

16 ArabianSupplyChain.com

38 Humanitarian Logistics

With a series of cargo plane crashes in the region, is there a lapse in safety standards?

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

How the flooding disaster in Pakistan has helped to unite the global logistics industry.

04 Readers Letters

18 Cover Story

42 Preview: TOC Middle East

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

Celebrating its 30th anniversary of operations, what does Jassim Transport and Stevedoring Company (JTC) have planned for the future?

The global maritime-focused TOC conference makes its debut in the Middle East this month.

07 News Update • US government extends $25 million logistics contract with Agility for another six months • Emirates SkyCargo partners with SNTTA • GAC transports shipment of sharks to UAE • Logistics Company Limited supports Mapei • UAE to place logistics students from the UK • TNT opens kids learning centre in Dubai • FedEx to service Sharjah Chamber members • Aramex joins forces with marriage website • DP World becomes third largest ports firm

22 Special Report An overview of the warehouse racking market in the Middle East, with profiles of the region’s leading suppliers and a local case study with Q Home Décor at Dubai Investments Park.

33 Emerging Logistics Markets Transport Intelligence updates its annual ranking of countries from the developing world in terms of their logistics potential.

48 Ask the Expert Infor explains how the global recession has increased the need for a logistics risk strategy.

50 Facts and Figures Transportation statistics from a variety of regional and international sources.

56 Face To Face Interview Christian Gebler discusses his recent move from BITO to Ehrhardt + Partner Solutions.

www.arabiansupplychain.com | September 2010

EDITOR’S LETTER

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Managing Director Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham Commercial Director Fareed Dubery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 210 8597 email: robeel.haq@itp.com Contributors Nadia Khan, Brooke Sever, 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 STUDIO Group Art Editor Daniel Prescott Designer Wasim Akande

Reserving judgement on Middle East cargo crashes espite a constant effort to reduce the number of plane crashes around the world, it’s somewhat impossible to achieve a zero-accident rate, as the Middle East has unfortunately learned over the past couple of months. Shortly before publishing this issue of Logistics Middle East, we received the tragic news that a Boeing 747-400 operated by courier firm UPS had crashed near Emirates Road in Dubai, leading to the death of both crew members. Within minutes of the incident, news channels and online websites were bursting at the seams with real-time updates on what caused the accident. Of course, in reality, the exact details will not be known until the UAE’s General Civil Aviation Authority (GCAA) concludes its investigation, which involves a detailed look at the aircraft structure, systems, engines and flight controls. The B747’s cockpit voice recorder (CVR), which was recovered within six hours of the incident, will also provide further clues into events leading to the crash. A similar incident was reported only a month earlier in Saudi Arabia, when a Lufthansa Cargo plane had crashed at

King Khaled International Airport in Riyadh. Thankfully, on this occasion, the MD-11’s pilots were rushed to hospital and survived the ordeal. The first results of a joint investigation by officials from Saudi Arabia, Germany and the United States have indicated that a bad landing was responsible, with a fire being started after pilots struck the runway and destroyed the aircraft’s undercarriage. So what can be done to avoid such instances in the airfreight sector? There’s countless measures being taken around the world to place a limit on potential disasters, some more successful than others, and most within the industry would agree that constant progress is essential. However, given the nature of air transportation, especially with potential for human error, we have to accept that challenges are inevitable and aircraft manufacturers should not be immediately held accountable. Until both investigations are completed, which could take months, the verdict is still out. If you have any comments to make on this month’s issue of Logistics Middle East, send your emails to robeel.haq@itp.com

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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 & Distribution Director Kyle Smith Deputy Production Manager Matthew Grant Managing Picture Editor Patrick Littlejohn Image Editor Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 210 8000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Horizon Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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READERS LETTERS

Dangers with hazardous cargo

A healthy logistics market

Dear Editor, At the risk of sounding like a paranoid freight forwarder, I thought the Logistics Middle East feature on hazardous cargo last month was a much needed reminder to those in the industry. I agree that there aree most certainly providers out there the her erre that are not following the hee laws aw ws that have been have een put putt in place a e for fo f the safety ety tyy of everyone. Sadly, this puts all lll o off us illat risk. i k I wo is would ld lik like ike to t ssee ee tthese h minded companies eventually pushed ush s d she out ut of the th m marke market, but I don’tt know kn now w iif that will happen anytime tiime soon. s Peter Blackman terr Bla B Bl

Dear Editor, For a number of years now, trade reports have highlighted the opportunities for logistics providers in the Middle East healthcare sector. However, surprisingly, there have been a limited number of 3PLs with the capabilities to meet this demand. I seem to remember Danzas being amongst the first to open a healthcare warehouse in Dubai, while Pharma World Holdings also made a splash in 2009, although I have not heard anything about them in recent months. Let’s hope the opening of Hellmann Calipar Healthcare Logistics meets a positive response. It was very interesting to read Madhav Kurup’s plans for the company. Farook Ahmed

Perfect timing for WMS article! Dear Editor, I wanted to thank you for covering warehouse management systems (WMS) in this month’s issue. Right now, my company is searching the market for a solution that is better than our current in-house system. After operating the same WMS since 2001, we are looking to upgrade. For us, your article could not have come at a better time. I also appreciated the analysis by Margareta AbuRas from Integral, who confirmed that we are indeed making the right decision to invest in better technology. I also reminded my MD that if we don’t keep moving forward, we will be left behind. Sunil Shetty

Do we need stricter regulations? Dear Editor, Your news story on the discovery of corpses on the site of a Dubai warehouse fire months after their death was shocking. How could the investigating team allow this to happen? And what about the warehouse owner that allowed his workers to operate in such terrible conditions? He should be arrested and imprisoned for several years to set an example for others in the Middle East. Of course, we also need to address the regulations in place that allow such incidents to occur, with perhaps the introduction of regular surprise visits from inspectors. Farook Ahmed

Focusing on at the positives Dear Editor, I’m surprised at some of the negative sentiment that hat Al Maktoum International at Dubai World Central ral has attracted. In fact, the UAE should be applauded ed for investing in such a large-scale project, which will ill benefit so many different industries, from logistics cs and freight forwarding, to the likes of aviation, n, tourism, healthcare, and oil and gas. So what if thee development was delayed by the global recession?? Had it been another part of the world, the delayy would have been much more severe. And so whatt if the opening has been scaled back? It has always been a long-term project. I’m glad the coverage in your magazine has been positive and I hope others will start to follow this example. Abdullah Al Majid

Please address your letters to: Logistics stics Middle East, PO Box 500024, Dubai, UAE or email: logistics@itp.com g 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).

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NEWS UPDATE

US extends $25m contract with Agility for six months Small victory for Kuwait-based firm as US Defence Logistics Agency (DLA) grants contract extension

he US Defence Logistics Agency (DLA) has agreed to extend Agility’s prime vendor contract for a sixmonth period, in a deal worth around US$25 million. The extension, which commences this month, will allow the Kuwait-based supply chain specialist to continue with the procurement and delivery of food supplies to US troops in the Middle East. Agility, formerly Public Warehousing Company (PWC), was dropped from supplying food to 145,000 troops, civilians and contractors in Iraq, Kuwait and Jordan last year, after being accused of significantly overcharging the military. The move was a major blow for the logistics company, which held contracts worth $8.5 billion over a three-year period. Dubai-based rival Anham was later awarded a $2.2 billion contract by the DLA as a replacement vendor, although the decision was protested by a number of other bidders, including Kuwait and Gulf Link (KGL) Transport, which delayed the transition that eventually worked to Agility’s favour. “DLA has awarded a six-month extension starting September 2010 for the warehouse and distribution service contract, with a value of around $25 million,” Agility confirmed in a statement to the Dubai bourse. Amidst the back and forth wrangling, the latest extension will entail handling procurement, shipping, warehousing, and distribution of food and non-food products for all service branches of the US military. As the declared victor, the contract will leverage Agility’s established asset-base, including more than one million square feet of climate-controlled warehouse space and 6000 transportation assets involved in the delivery of food and supplies to US military facilities throughout Iraq. Vice Admiral Alan S. Thompson, director of DLA, made the determination in a memo to the Defence Supply Centre Philadelphia (DSCP), the branch of DLA responsible for the Prime Vendor II contract. “Continued performance by (Agility) through the end of its contract is critical to continuity of support,” he wrote. Meanwhile, Anham provided a tour of its facilities to DLA officials last month and stated “the transition is fully on-track”.

“The previous vendor providing these services has been scaling back its operations as Anham establishes its supply chain, all in accordance with the transition schedule,” the company stated on its website. “The subsistence prime vendor contract is a massive logistical undertaking, one that requires careful attention to detail to ensure a seamless transition.”

DLA OFFICIALS VISIT ANHAM’S LOGISTICS BASE

DLA officials were invited on a tour of Anham’s warehouse facilities in Kuwait last month, to discuss a seamless transition of supply chain operations from former vendor Agility. The delegations were provided with briefings about Anham’s operations, while observing processes, evaluating capabilities and asking tough questions. “We want to assure our customers that the services and support they’ve come to expect from DLA will continue without pause during the transition period,” stated General Scott Chambers, DLA troop support commander. “A major focus for DLA Troop Support during this transition is ensuring that the holiday meals our warfighters deserve and expect will be in the dining facilities during the holiday timeframe.” In its new role as prime vendor for troop support, Anham will manage all risk associated with purchasing, storing and delivering food and beverage items to US forces in the countries served in region. The contract has a base period of 18 months, which begins with the first order. If all six years worth of options are exercised, the value of this award will be $2.16 billion.

www.arabiansupplychain.com | SEPTEMBER 2010

NEWS UPDATE

NEWS IN BRIEF

Emirates enters SNTTA cargo alliance Sharjah-based logistics company is selected as the first GSSA for the airline in the United Arab Emirates Emirates SkyCargo has expanded its alliance with SNTTA Cargo, which has been signed as the operator’s first General Sales and Service Agent (GSSA) in the United Arab Emirates. Both companies have worked in partnership for a number of years, with SNTTA Cargo serving as the general sales agent (GSA) for Emirates SkyCargo since the airline was launched. Under the new agreement, which focuses on Sharjah, it will provide GSSA services from a dedicated office at Sharjah International Airport. “As our GSA in Sharjah for almost 25 years, SNTTA Cargo has been providing valuable support to our operations at Sharjah Airport,” commented Ram Menen, divisional senior vice president of Emirates SkyCargo. “We are delighted to appoint SNTTA Cargo as our first GSSA in the UAE, and this is in recognition of the AIRFREIGHT

FedEx has become the first express transportation company to utilise the Mirsal 2 B2G courier service with Dubai Customs. The solution is designed to reduce human errors, automate business processes and provide a faster channel for declaration submissions. “This initiative has real benefits for our customers, such as reducing the amount of paper documentation required and providing better visibility for shipments,” stated Hamdi Osman, FedEx senior vice president in the Middle East, Indian subcontinent and Africa. TNT Express has announced plans to increase the workforce of its Saudi Arabia subsidiary TNT SAB Express. The move is part of a strategy to bolster the company’s market share in the KSA logistics sector, with its main branch in Jeddah also being relocated to new executive offices. “Saudi imports have grown significantly over the past few years and have catapulted the Kingdom ahead of other leading Middle Eastern countries in the logistics field,” explained Martyn Wright, managing director of TNT SAB Express Saudi Arabia. KBR has secured a contract with TDIC (Tourist Development and Investment Company) to provide logistics consultancy services for the Sir Bani Yas island project in Abu Dhabi. The company will offer its expertise in the supply of materials, vehicles and marine transportation. “We looks forward to providing a high-quality service to the client, with accountability, integrity and discipline at the heart of our day-to-day operations,” said Colin Elliott, president of KBR Infrastructure and Minerals.

8 SEPTEMBER 2010 | www.arabiansupplychain.com

Senior officials from Emirates SkyCargo and SNTTA Cargo during the contract signing

outstanding role it has played in ensuring speedy and smooth movement of our cargo through Sharjah Airport. As Emirates SkyCargo gears up for higher growth, we see SNTTA Cargo playing a greater role in boosting our business.” SNTTA Cargo will offer support in the movement and transfer of consignments in and out of Sharjah Airport to a variety of destinations around

the world. “We feel privileged that Emirates SkyCargo has demonstrated its confidence in SNTTA Cargo by elevating our status from GSA to GSSA,” commented Vishal Dhamija, senior manager of SNTTA Cargo. “We are determined to go the extra mile in meeting the airline’s high standards by ensuring that our trained staff at Sharjah Airport exceed their expectations.”

Logistics Company Limited to support Mapei Mapei has signed a reseller agreement with Logistics Company Limited. The global manufacturer - which specialises in adhesives, sealants and chemical products for buildings - aims to leverage the market network and storage facilities of Logistics Company Limited to further consolidate its presence and strengthen its customer base in the UAE. “It has been our vision to strengthen our presence across key markets in the country and we believe that the market presence and experience of Logistics Company Limited will enhance our competitive advantage and complement our own growth initiatives,” said Laith Haboubi, business development director of Mapei. LOGISTICS

Logistics Company Limited has a showroom dedicated to specialist building materials in Sharjah Industrial Area, where it provides a storage capacity of approximately 5000 metric tonnes to meet Mapei’s logistics and handling requirements.

“We believe Mapei and Logistics Company Limited have identical corporate values, which make our partnership all the more symbiotic,” stated Rajesh Somabhai Patel, managing director of Logistics Company Limited.

Mapei’s Laith Haboubi with Rajesh Somabhat Patel from Logistics Company Limited

NEWS UDPATE

UAE to place British logistics students Logistics students who failed to secure a place at the University of Bolton UK due to heavy demand could be offered an alternative position at the institute’s sister campus in Ras Al Khaimah. Around 50 applicants from the UK or other European countries who have achieved three As at A-level, but missed a place at Bolton, will be offered an alternative spot on three-year degree programmes in the Gulf emirate, near Dubai. Tuition and accommodation costs will be the same as those charged in the UK, while the undergraduate logistics course is directly equivalent to the one taught in Bolton. In addition, undergraduates in the Middle East will sit the same papers, set by the same exam boards, which will be marked and externally verified in the same way.

NEWS IN BRIEF

EDUCATION

With heavy demand for UK university places, students could now be homed in RAK

“It is expected that a large number of students from the UK and Europe will be left without a place at their preferred universities in 2010. As a means to addressing this issue, the University of Bolton is offering places to those students on 14 programmes across disciplines at its Ras Al Khaimah campus, including logistics,” Dr Zubair Hanslot, academic director at the University of Bolton,

RAK Campus told Logistics Middle East. “The students will have the opportunity to get a quality British degree on a programme of their choice. Visa and accommodation costs will also be subsidised to a significant extent, thereby giving students the chance to gain solid international experience, whilst studying for the same British degree that they had opted for in the first place.”

Morgan International has hailed the successful completion of its Middle East logistics roadshow, which toured locations such as Abu Dhabi, Dubai, Beirut, Amman, Jeddah, Riyadh and Dammam. The campaign was designed as a platform for guests to discuss the latest trends in logistics and promote the company’s CSCP education programme. “The tour’s success is testament to the evergrowing importance of supply chain and logistics in the region and the need for industry-specific education,” responded Fadi Ganni, CEO of Morgan International.

www.arabiansupplychain.com | SEPTEMBER 2010

NEWS UPDATE

NEWS IN BRIEF

TNT opens Dubai kids learning centre Logistics company is the latest in a string of global brands to establish a presence at ‘edutainment’ centre TNT Express has opened a logistics establishment in Dubai Mall’s ‘edutainment’ centre KidZania to provide children with the opportunity to experience the collection and distribution of documents, parcels and freight. The logistics company is the latest global brand to invest in the project, with others including the likes of HSBC, McDonalds and Sony. “We are all very excited to see TNT take to the floor in KidZania. Everyone who has visited the establishment so far has been amazed by the pace of the environment and how much children seem to enjoy participating in the world of work,” said Mark Woodcock, sales and commercial director for TNT Express UAE. With over seventy real-life professions to choose from, EXPRESS LOGISTICS

Eros Group has presented an excellence award to the client management department of Dubai Customs. The company, which is a distributor of brands such as Samsung, Hitachi and BenQ in the Middle East, stated that Dubai Customs was selected after playing an influential role in its strong market performance, with 25% growth expected in sales this year. “We see many parallels in the way Dubai Customs treats it clients and the way we focus on our customer,” explained Deepak Babani, chief executive officer of Eros Group. Qatar Petrochemical Company (Qapco) has opened its latest warehousing complex, located in the Lebanese city of Tripoli. “The start of operations at this logistics centre will definitely help to meet the increasing demands of clients, as our exports of petrochemical products are reaching 20,000 MTA,” stated Dr Mohammed Yousef Al Mulla, general manager of Qapco. “We can now expect faster access to customers and hope our high-quality products and services will exceed their expectations.”

Kids can experience life as a delivery driver at TNT’s KidZania logistics establishment

children are able to learn a range of skills, such as delivering good service, time keeping and fundamental skills within the express delivery industry. “KidZania is dedicated to providing our young visitors with unparalleled learning experiences,” said Will Edwards, governor of KidZania Dubai.

FedEx to service Sharjah Chamber members The Sharjah Chamber of Commerce and Industry (SCCI) has signed a partnership agreement with FedEx to provide special courier services and products for its members. EXPRESS LOGISTICS

The logistics company will offer a range of services as part of the deal, with packages and documents collected from SCCI headquarters and delivered to any point within FedEx’s coverage area.

Dubai Trade continued its client evaluation programme last month by hosting a meeting with officials from Wilhelmsen Ships Service. The company, which is the e-services provider of Dubai World, initiated the programme to maintain direct communication with its portal users. “We aim to encourage the usage of online services and take feedback directly from users,” said Mahmood Albastaki, director of Dubai Trade. “As a leading maritime and logistics group, Wilhelmsen is one of the most frequent users of the services available on Dubai Trade’s portal.” Officials from FedEx and SCCI at the contract signing for their new logistics partnership

10 SEPTEMBER 2010 | www.arabiansupplychain.com

“We are very proud to partner with a logistics leader such as TNT Express in Dubai. Their participation will help to further enhance children’s understanding of the profession and create an opportunity to work in a courier service, delivering and collecting parcels around the entire mini city.”

In addition, FedEx will use automated devices in strategic locations to enhance efficiency and reduce paperwork, while stationing a representative at the SCCI’s headquarters. “This partnership is part of our membership management plan, an initiative to provide our members with world-class services that can support their efforts to increase and improve efficiencies, productivity and profit,” said Khaled Bin Butti Bin Obaid, assistant director general for membership and branch affairs at SCCI. “Our choice to partner with FedEx is the result of the chamber’s search for a company that could provide our members with key services that do not compromise on quality and strictly adheres to set terms and conditions,” he added.

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NEWS UPDATE

Aramex joins forces with Shaadi.com

NEWS IN BRIEF

3PL continues its support of e-commerce in Middle East with a new service offering for matrimonial website Aramex has signed an agreement with the matrimonial website Shaadi.com to establish a unique payment facility, which allows customers to have their payments collected by the logistics company from any location across the UAE. “As part of our ongoing efforts to cater to the diverse needs of customers and support the evolution of e-commerce in the region, Aramex is pleased to offer its unique payment collection facility to Shaadi.com,” said Hussein Hachem, Aramex chief executive officer for the Middle East and Africa. “Our collection services will extend to members across the UAE, including Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah and Umm al-Quwain.” 3PL

Aramex will collect the payment of Shaadi.com members from anywhere in the UAE

The partnership also involves UAE Exchange, allowing Shaadi.com customers to make subscription payments over the counter. “We are confident of the value addition that both

our new partners bring through their heritage and experience, and look forward to even more satisfied members across the region,” said Gourav Rakshit, business head of Shaadi.com.

GAC transports shipment of sharks to UAE GAC has successfully moved a shipment of silver tip sharks from Cairns in Australia to the United Arab Emirates. “Although it was the first time this particular species had undergone such a long-haul journey, this has been one of the smoothest shark transports 3PL

I have experienced, thanks to the seamless work by GAC,” said Paul Hamilton, curator of Dubai Mall’s Aquarium and Underwater Zoo, which is the new home for both sharks. GAC claimed it had prepared everything to avoid delays and minimise the time in transit, including arrangements to book

The sharks made their journey by plane and temperature-controlled reefer truck

an airport parking slot nearest to the specialised handling centre, fast-track clearances, permission to bypass truck road bans and police escorts to ensure priority passage. Once the plane landed, the team overlooked the offloading and transfer of the sharks to special cool dollies that ensured they were protected from seething Dubai summer temperatures. These were then loaded onto GAC’s temperaturecontrolled reefer truck for transport to the aquarium. “They arrived in such good condition and with minimum stress that they started feeding within 40 minutes after being introduced into their new environment,” Hamilton added. GAC has been handling live shipments for Dubai Aquarium and Underwater Zoo since 2007 and has developed a well-honed system that ensures sensitive shipments of live animals arrive safely at their destination.

Steel Buildings Company (SBC) has become the first business in Jordan to take delivery of a Combilift 4-way forklift. SBC, which is a manufacturer of structural steel buildings, claims the forklift has led to reductions in time, space and material handling costs. “We often deal with three or four tonne loads with lengths of 13 metres, which were problematic,” stated Vatche Karmandarian, SBC general manager. “When I saw the Combilift at a Dubai exhibition, I realised its multi-directional capability was exactly what our company needed.” Majaal has confirmed its role as logistics sponsor for next year’s Gulf Industry Fair. The event, which takes place at Bahrain International Convention & Exhibition Centre, is aimed at companies that serve the region’s growing industrial sector. “Gulf Industry Fair’s exhibitor and visitor profile matches our target audience, and is an excellent vehicle through which we can establish new contacts with SMEs from Bahrain and around the world,” said Amin Al Arrayed, managing director of Majaal. Dubai-based FVC has awarded a contract to Merzario for supply chain and logistics services in Amsterdam. As a leading 3PL in Europe, Merzario was selected for its ability to provide the same level of services as FVC’s distribution hub in Jebel Ali Free Zone. “Setting a supply chain hub into Europe has created added-value to our partners in North and West Africa in terms of faster deliveries, thanks to direct cargo flights to the region. This is the most cost effective solution all around,” stated K.S. Parag, managing director of FVC.

www.arabiansupplychain.com | SEPTEMBER 2010

NEWS UPDATE

NEWS IN BRIEF

Infor equips RSA Logistics with WMS Solution customised by Dubai-based SPAN Group to provide improvements in client’s supply chain operations Dubai-based RSA Logistics has selected the Infor warehouse management system (WMS) to bolster its supply chain operations in the Middle East, with advanced traceability for tasks such as receiving, putaway, replenishments, picking, packing, labelling and shipping. The company, which was the first logistics service provider to commence operations at Dubai Logistics City (DLC), worked with SPAN Group to implement the solution and customise a module to handle the bill of entry, bill of exit and process documentation, among others, between DLC and neighbouring Jebel Ali Free Zone. “The warehouse facility at DLC needed a top-line supply chain solution to efficiently manage our operations and support our drive towards providing value-added TECHNOLOGY

Supply Network Solutions (SNS) has confirmed plans to host its second annual logistics seminar in Lebanon on 4th November 2010. The event takes place at Beirut’s Habtoor Grand Hotel under the theme ‘Every Cent Counts: Perfect Your Warehouse’. “This seminar will provide a chance for attendees to participate in informal networking and discussions with fellow industry professionals and learn the best practices being applied to enhance supply chain performances,” explained Mario Ghosn, general manager of SNS. Dubai-based Economic Zones World (EZW) will open a building at Djibouti Free Zone with business centre, restaurant, store and prayer rooms, amongst other amenities. “This is the latest development at the free zone, which already hosts world-class facilities for offices, storage, distribution and light manufacturing,” commented Ali Dawood, senior vice president of EZW’s emerging business unit. “We aim to bring our customers the most sophisticated infrastructure as they facilitate their businesses in East Africa and beyond.” Bahrain’s General Organisation of Sea Ports (GOP) will host the first annual Bahrain Maritime Festival this month, in support of World Maritime Day. The event takes place on 20th-24th September with a host of activities for Bahraini seagoers. “We plan to hold this festival each year with a different theme to engage as broad an audience as possible,” explained Shaikh Daij bin Salman Al Khalifa, chairman of GOP. “The inaugural Bahrain Maritime Festival in September will target past, current and future generations of seafarers.”

14 AUGUST 2010 | www.arabiansupplychain.com

RSA Logistics believes the WMS will lead to greater traceability within its supply chain

services,” stated Abhishek A. Shah, operations executive, RSA Logistics. “After evaluating the various warehouse management solutions available in the market, we selected Infor’s WMS due to its advanced functionality, remarkable local support and demonstrated success in the Middle East region.” RSA Logistics opened its 25,000m2 warehouse facility at Dubai Logistics City last year.

“Infor’s WMS will enable our company to capitalise on valueadded services, such as packaging, repackaging, inspection, quality control, better analytics and improved billing for customers,” added Shah. “We can now organise the whole of our warehouse operations, including critical time-sensitive procedures such as managing inbound and outbound deliveries, and inventory control.”

DP World becomes third-biggest ports firm DP World has become the world’s thirdbiggest ports operator, after opening a series of new terminals and out-performing global rivals, according to Drewry Shipping Consultants’ annual report. The Dubai World subsidiary pipped APM Terminals to third place after handling 31.5m twenty foot equivalent units (TEUs) compared to the Haguebased firm, which handled 31.1m TEUs. DP World holds 6.7% of the global market share, sitting just behind Hutchison Port Holdings, which has 6.8%. Top spot was taken by Singapore’s PSA International, with a 9.5% of the market. Last month, DP World reported higher-than expected half-year results, with throughput rising by seven percent and net profit after tax MARITIME

from continuing operations up by 10% to $206m. “We are extremely pleased with the operational and financial performance of the business in the first half of the year. This is a reflection of returning container volumes and our continued focus on driving through efficiencies and managing costs right across our terminal portfolio,” stated Mohammed Sharaf, chief executive officer of DP World.

“As we move into the second half of the year, uncertainty remains over the sustainability of global trade volumes. However, we expect the second half to deliver stronger results than the first half of the year as our terminals benefit from seasonal trade flows and the contribution from new terminals, in addition to some ongoing improvement in non-container revenues,” continued Sharaf.

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BMI predicts growth in UAE cargo volumes Cargo volumes will continue to rise in the United Arab Emirates over the next five years, although growth rates will be placed in jeopardy by the threat of a ‘double-dip’ in the global economy, according to Business Monitor International. The assessment was published last month in the research company’s UAE Freight Transport Report Q4 2010, which predicted that maritime freight will outpace the growth of airfreight over the 2010-2014 period. “The country is experiencing a recovery in its overall trade, after the declines of 2008/2009. A number of road projects have been finished, and phase one of Dubai World Central-Al Maktoum International Airport became operational for cargo flights in June 2010. The ambitious Union Railway that will link all seven emirates with Saudi Arabia and Oman is also going ahead,” explained Michelle Byrne, head of shipping and freight transport at BMI’s London office. “However, there is still the possibility of a double-dip recession knocking the UAE’s growth in 2009 offtrack. But despite this risk, the positive trend in the economy and its freight transport sector for 2010 means that in BMI’s view airfreight will grow at 4-5% and maritime freight will grow between 11-18% over the 2010-14 period. This is expected to be less than occurred before the economic crisis, but will still be strong and positive growth,” she added.

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Abdulla Fouad Holding hosts KSA warehouse tour Students were invited to the Saudi Arabian company’s distribution centre in Damman to learn more about supply chain management.

The keys to success in warehouse design Sanjeeve Thavarajah from Al Madina Logistics provides his expertise on how to achieve successful warehouse design.

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Have warehousing companies entered a price war in the Middle East?

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No, storage space is still lucrative for such companies

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COVER STORY

Andreas Mohr, chief executive officer of Jassim Transport and Stevedoring Company

18 SEPTEMBER 2010 | www.arabiansupplychain.com

COVER STORY

KUWAIT CREDENTIALS Celebrating its 30th anniversary of operations, what does Jassim Transport and Stevedoring Company (JTC) have planned for its latest development strategy in the Middle East?

To support this growth, the company has launched a massive recruitment drive, with nearly 2150 employees already in place and another 400 in the process of recruitment. Large-scale investments have also been made to expand its fleet, which now includes over 1000 tractor heads, with trailers such as reefers, rankers, low beds, car carriers and Scheuerle modular trailers. A further 300 trucks and trailers are subcontracted. In addition to the trucking fleet, JTC also has more than 20 reach stackers for the ports division, and cranes ranging in capacity from 20 tonnes to 450 “Initially our success was due to massive demand for cross border transportation to Iraq, especially during “By the end of this tonnes in the equipment leasing division. As Kuwait has remained a central hub for the US the Iraq-Iran war. However, we have become a more year, operations Forces in the region, including the Horn of Africa, dynamic, diversified and responsive organisation would have today,” explains Andreas Mohr, chief executive officer Afghanistan and of course Iraq, Mohr estimates that started in Abu at least 60 per cent of trucking and warehousing assets of JTC, who is heading the company’s 30th anniversary Dhabi, Dubai and are in one way or the other involved in supporting celebrations. “In terms of our port business, JTC Ports Iraq, with Saudi the US Army. “Th is market segment was not affected is the primary operator at Shuwaikh Port and handles Arabia to follow” during the recession. On the contrary, operations in over one million freight tonnes of general cargo a some areas actually increased,” he says. year. Th rough our industrial leasing division, we offer “However, there are only a handful of large players in Kuwait everything from mobile tower lights and welding machines to power generating products and air compressors. And fi nally, with that offer modern equipment and warehousing capabilities on a contract logistics, JTC manages over one million square feet of significant scale. Other logistics companies are typically operating truck fleets with between 20 and 150 units, which are often multi-use space in close proximity to Shuwaikh Port.” With 20 years of experience in shipping and logistics, Mohr has managed directly by the owners; typically there will be a lack of received a series of promotions since becoming a member of the IT and documentation capabilities as this type of operator would JTC team in 2003, including a jump to general manager in 2005, look for subcontracts only. Of course, the international logistics chief operating officer in 2009 and, most recently, chief executive companies have their local franchises, but do not play a major role officer in May 2010. As a result, he’s witnessed the impact of the other than managing imports.” The situation has placed JTC in a strong position and Mohr company’s diversification programme, not only in terms of rapid growth during the boom years, but also profit-making during the confi rms that business has more than doubled over the past five years. Customers include the likes of KIA Motors, BMW, Nissan market downturn in 2009 and 2010. “We recognised that overall volumes would shrink in 2009, but and General Motors in the automotive sector, and Schlumberger, managed to grow the business by increasing our market share Halliburton, Equate Petrochemical and Kharafi National in the in Kuwait ports and moving over 100 cranes to Qatar, where the oil and gas sector. Industrial customers such as Hyundai and market remained strong throughout the year,” states Mohr. “We GS Engineering and Construction also contribute a significant have also been increasing our regional footprint and by the end of amount of business. However, the rapid pace of growth has created a unique set of this year, operations would have started in Abu Dhabi, Dubai and Iraq. Saudi Arabia will be added to this list by the fi rst quarter of challenges for the executive and his team, especially when it comes to continuously delivering a quality service. “We want to maintain 2011, through an acquisition or joint venture.” ince its launch as a Kuwait-based inland transportation company in 1979, Jassim Transport and Stevedoring Company (JTC) has emerged as one of the largest and most successful players in Middle East logistics. Similar to other veterans in the industry, diversification has played an essential role in the company’s transformation and the JTC brand is now active in several locations across the region, with a core focus on port operations, equipment leasing and contract logistics.

www.arabiansupplychain.com | SEPTEMBER 2010

COVER STORY

Senior executives from Jassim Transport and Stevedoring Company (JTC) during a management meeting at the logistics firm’s central headquarters in Kuwait last month

this growth, but it’s important that our “The implementation was an enormous service levels are constantly high, because challenge due to the large footprint and customers have big expectations from short project deadlines. However, due to JTC,” he comments. the committed effort from all participants, “At the end of the day, the key to achieved this major we successfully ac long-term growth is quality and milestone and will now be able to reliability of service. Both are even better business provide eve difficult to come by in this services and practices to region. There will always our clients.” client The n be lots of competition, but it comes to When empl umber o we will succeed through the company ensuring o y f e es at with continuous investment in maintains its position maintain in theanother 4JTC, 0 our staff, QHSE levels and as an industry leader, recruprocess of0 technology systems.” Mohr is confident in his itmen t “Looking ahead, To prove his point, strategy. Mohr describes the recent a regional we expect to become b with three principle implementation of Oracle’s E-Business logistics company w Suite Release 12.1 into JTC’s business activities - third party logistics, project practices, with modules covering areas cargo handling and bulk fuel storage and such as financials, purchasing, inventory, distribution. Depending on the geography, order management, enterprise asset we may only engage in one or more of these maintenance, HRMS and additional activities in a particular country upon custom developed operational modules. entry,” he explains. “I believe its important to enter into the The implementation was delivered by HCL Technologies over eight months. right strategic alliances or joint ventures, “The implementation involved the where we find a compatible culture and an training of all staff and enables us to equal appetite for growth. As a regional provide comprehensive coverage of all company you need to have access to global divisions and departments. Not only network to cover the entire supply chain – does this meet international standards of we do not see ourselves as freight forwarders, excellence, but it increases our flexibility but we add value to the significant ones and and response to market demands,” he says. vice-versa.”

2150

20 SEPTEMBER 2010 | www.arabiansupplychain.com

JTC: Company Timeline 1979 – Company founded with transport services offered in Kuwait 1980 – Portfolio expanded with the launch of Iraq transport services 1986 – Launch of general cargo stevedoring at Shuwaikh Port 1996 – Launch of general container stevedoring at Shuwaikh Port 1997 – Equipment leasing division was founded on back of a contract from Kuwait National Petroleum Company 2001 – Launch of stevedoring at Sulaibiya Customs Bonded Area 2002 – JTC acquired by Transport and Warehousing Group (TWG) 2005 – Construction of cold stores and ambient warehousing in Kuwait 2005 – US Army fuel distribution contract 2006 – JTC acquired by Boodai Corporation from TWG 2007 – Launch of JTC Qatar operations 2007 – Start of customs bonded warehouse operations 2009 – Global Investment House accquires 60% stake in JTC

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SPECIAL REPORT: WAREHOUSE RACKING

WAREHOUSE RACKING REPORT

22 SEPTEMBER 2010 | www.arabiansupplychain.com

SPECIAL REPORT: WAREHOUSE RACKING

With an influx oof warehousing space coming onto the market, putting the right racking solution into place pla should not be overlooked, according to Alba Logistics’ Patrick Daly. ollowing a global downturn the Middle East has a wide spectrum of in the w warehouse racking buyer types, both in terms of individuals sector over ove the past couple of engaged in purchasing activities and their years, it seems obvious that employer companies,” states Daly. “Where the Middle East market would one organisation may be highly focused have been impacted. The level of that impact, on return-on-investment, quality and however, is difficult to as assess, with continued compliance with international standards, limitations in official rreports or statistics others may be much more focused on across the region. Thankfully, ankf there have been bottom-line price. Vendors and their whispers that progress is underway to rectify resellers consequently must be very flexible this situation, but in the meantime, a certain and culturally aware in order to adapt their approach to sales amount of guesswork is essential e and customer service to to measure the sector’s he health in a match the requirements recovering market. “There is fierce

of their buyers.” “It’s very difficult to gauge competition at for simple warehouse the market size for wa the lower-end of andDemand flexible solutions, racking and shelving in the the he market, with such as selective pallet Middle East, because official some me reporting racking, has remained available,” figures are not ready av the e tell-tale signs common in the Middle managing agrees Patrick Daly, m East, as opposed to founder of director and found of a price war” the more rigid systems warehouse consultancy firm that are popular in Alba Logistics. “It would appear that the global downturn has resulted in other parts of the world. Daly believes this a scarcity of new warehouse projects in is down to the fact that selective pallet 2009 and 2010, which has been difficult racking is economical, relatively easy to and challenging for vendors and resellers modify and relocate, adaptable to different in the region. There is fierce competition types of material handling equipment, at the lower-end of the market, with some and, with the help of modular accessories, can be applied in a wide variety of roles reporting the tell-tale signs of a price war.” In particular, the rapid growth of the in warehousing. “Select pallet racking United Arab Emirates market has been is ubiquitous and continues to make up knocked by the recession, with Daly a significant proportion of the market. I estimating a maximum decrease of 30-40 believe it will continue to constitute a major per cent, which has prompted a number proportion of the market for the foreseeable of local players to focus their attention on future,” he says. However, Daly does contend that other other markets. “Traditionally the largest markets have been the countries in the GCC more specialised solutions are indeed area, particularly the UAE, Saudi Arabia making an appearance in the region. For and Qatar, where there is a significant large batch sizes, systems such as drive-in presence of both international companies racking and racking on mobile bases, as and large state-owned businesses,” he well as more sophisticated high-density explains. “These markets have experienced storage systems such as push-back racking, a sharp slowdown in response to the global gravity flow racking and satellite carts, recession with limited recovery in demand are beginning to find regular use. For so far. And while these GCC countries will storage and picking of smaller items with continue to represent a significant share multiple SKU types, conventional lightof the overall regional market and will no duty shelving systems suitable for manual doubt recover in time, the likes of Egypt picking continue to feature heavily, with and Turkey are coming through as strong sophisticated order picking solutions such as mini-load, pick-by-light, pick-to-light growth markets for the future.” To capitalise on the growth of emerging systems also making limited in-roads. When it comes to technology and markets in the region, providers of warehouse racking systems will need to streamlining operational assets, Daly is ensure their sales staff are accustomed confident that from an automation stand to cultural diversity in the buying habits point, the future is bright for the GCC. of each country. “As a developing region, And though the transition will not happen

overnight, market conditions are calling for greater efficiency in day-to-day operations. “I foresee only a gradual and slow recovery in the core GCC markets hardest hit by the recession. When they do recover, these markets will exhibit higher levels of sophistication in the specification and selection of storage and material handling systems and solutions. There will be a greater involvement of internal and external specialists in design, specification and selection processes to ensure optimum return on investment, higher levels of compliance with global standards and greater flexibility to adapt to unexpected shocks to the business,” he concludes. “Increasing economic development in certain home countries that provide cheap labour for GCC countries will lead to a growing shortage of qualified warehouse workers at operator, supervisor and manager levels, as people will more readily find attractive opportunities at home. Th is shortage may trigger a take-off in the uptake of more sophisticated, systemsdriven, automated and semi-automated solutions for the storage, retrieval, picking and sorting of goods in warehouse facilities. In those markets that are at an early stage of development, particularly those with relatively high growth levels, large populations and high levels of unemployment, the recovery will likely be much quicker, but the levels of sophistication, particularly outside the international companies operating in these countries, will continue to lag those of the more mature markets in the GCC.”

PATRICK DALY

Patrick Daly, managing director and founder of Alba Logistics, has over 20 years of experience in the manufacturing, distribution and logistics sectors. He is a member of Dubai-based trade association Supply Chain and Logistics Group (SCLG).

www.arabiansupplychain.com | SEPTEMBER 2010

COMPANY PROFILES: WAREHOUSE RACKING

shuttles, pallet flow systems, push back systems, mobile rack systems and highbay up to 45 metres high for automated systems.

REGIONAL RACKING PROVIDERS SSI SCHAEFER - GEOFF WHEATLEY, MANAGING DIRECTOR, MIDDLE EAST AND AFRICA What do Middle East customers demand from racking providers? Customers are looking for complete planning, design and installation solutions, which should also be cost effective for their business.

What type of racking is offered by SSI Schaefer? We provide all types of racking, including selective, drive-in, double-deep, verynarrow aisle (VNA), satellite racking with remote controlled radio

ACME GROUP - NAVIN NARAYAN, OWNER What do Middle East customers demand from racking providers? Customers are far more aware of the variety of storage solutions that are on offer. They are demanding for greater productivity and higher utilisation of warehousing space and are now willing to invest in developing their storage facilities. Businesses are hiring supply chain managers now and believe they can develop and maintain their competitive edge by investing in stateof-the-art logistics centres and currently look at their back-end warehouses as profit centres and not cost centres. This change in mindset has made us tweak our offerings in the market too.

What type of racking is currently offered by ACME Group? ACME offers the entire range of storage solutions to its customers in the region. This includes pallet racking, drive in 24 SEPTEMBER 2010 | www.arabiansupplychain.com

What factors should be taken into consideration when making a selection? This can only be assessed once the product/ quantity analysis has been completed to determine the correct system for the clients application. This includes a full evaluation of pallets size shapes and weights, throughput requirements, selectivity requirements and parameters of the warehouse, such as height, length and width.

How strong is demand for pallet racking in the Middle East at the moment? Schaefer Dubai operates throughout the Middle East and Africa, We believe markets are very similar and only differ in volumes and complexities throughout the world, with adjustment for the different pallet standards, as many countries and industries have their own particular pallet sizes.

Do you believe this market is underserved or oversupplied with providers? In the UAE, the market is oversupplied with non-compliant, non-standard products that are imported from across the world, especially Asia and China, where the known international safety standards as recognised in Europe, the US and Australia are not enforced. This

racking, shuttle systems, small parts storage systems, plastic pallets, reusable transport boxes, forklifts, warehouse equipments, supply chain automation solutions, warehouse protection systems, as well as vacuum handling systems. We are a one stop shop for anyone planning to set up a distribution or logistics centre.

What factors should be taken into consideration when making a selection? We have to take into account a wide variety of factors when choosing the right kind of system. This can range from the nature of business, type of throughput within the logistics facility, type of material handling equipment and the level of automation that the customer is comfortable with. One has to put all these pieces together before concluding on the right solution.

How strong is demand for pallet racking in the Middle East at the moment? The market seems to have bounced back and there is a resurging trend in pallet

sometimes attracts unsafe racking from â&#x20AC;&#x2DC;backstreetâ&#x20AC;&#x2122; manufacturers, where the product has not been tested and only claim to confirm to internationally recognised standards, without ever being tested and certified. In the local yellow pages, there are over 40 racking suppliers advertising their wares. However, there are two or three suppliers that do market internationally certified racking.

Can you name some of your customers in the Middle East region? We have worked with most blue chip companies in the region, such as Nestle, Unilever, Proctor and Gamble, Coca Cola, Masafi, Al Ghurair Group, Al Tayer Group, Al Shaya Group, Mercedes, BMW and Ford. Our customers also include the major logistics providers, such as Kuehne + Nagle, Agility, GAC, Panalpina, UTI, Ceva Logistics, RHS, CWT and many others. Our client base is basically a reflection of most of the major companies in the Middle East.

What racking advancements would you like to see in the coming years? I would like to see advancement in the combination of both handling and storage systems into one integrated system, usually with a software package including warehouse control system (WCS) and/or warehouse management systems (WMS). This is the future for the global racking industry.

racking projects. Customers are getting more aware of automation and more advanced order picking technologies.

Do you believe this market is underserved or oversupplied with providers? I definitely believe there is an acute case of oversupply and this has led to a lot of substandard fly-by-night operators supplying inferior products and solutions to unwitting customers.

COMPANY PROFILES: WAREHOUSE RACKING

SPAN GROUP - CAMILLE SAMAHA, GENERAL MANAGER What do Middle East customers demand from racking providers? Customers want safe and durable equipment and systems that are modular, adjustable and adaptable to their changing requirements. They expect advice and partnership from their providers to ensure they are getting the best price/performance ratio, especially in these days of economical downturn.

What type of racking is offered by SPAN Group? We supply storage solutions, material handling and IT solutions for logistics purposes to customers in the Middle East. SPAN provides a very wide range of storage systems, with bay heights from two to 20 metres and bay loads from one to 30 tonnes. Our racking systems are offered in several finishes and with various accessories to comply with the application at hand. Configurations include selective, double deep, drive-in, pushback, flow, mobile and radio shuttle racks . Shelving and mezzanine systems are also offered by the SPAN Group.

What factors should be taken into consideration when making a selection? First, the product attributes have to be defined (dimensions, shapes and weights), next the storage conditions considered (ambient or temperature controlled) and thereafter proximity issues considered (some products should not be stored next to each other). Most clients approach us with a basic understanding of what they need. However, by the time we probe and ask them some detailed questions about the nature of their business, their product mix, their customer ordering patterns, their procurement strategies and future expansion plans, the basic understanding of what they approached us with and what we propose become two different things. The factors that determines this racking mix versus another mix is the characteristics of the product and the pattern of goods in and out as well as the velocity needed to fulfill orders within the warehouse.

How strong is demand for pallet racking in the Middle East at the moment? The demand is currently flat compared to the 2007 and 2008. Mega-projects have

become scarce, while medium to small size projects are still showing consistency.

Do you believe this market is underserved or oversupplied with providers? The storage equipment market is very fragmented worldwide. In each and every territory there are numerous manufacturers and providers. During the boom of 2008, many new players came into the market, and they were mainly medium in size. These days, some of them must have moved out of the market but the balance is still overcrowding the market.

www.arabiansupplychain.com | SEPTEMBER 2010

COMPANY PROFILES: WAREHOUSE RACKING

BITO - MARIO AMMANN, GENERAL MANAGER What do Middle East customers demand from racking providers? Most customers see pallet racks as just a neccessary evil in their warehouse, and are not aware that a right view on the processes and a proper design could save a lot of money. So if you compare a very transparent product like an ordinary simple rack, it usually leads to reduction of the investment cost only for the racks. Worst case for the customer is that he will have a cheap, simple pallet rack but the investment and running cost of the whole system is too high due purely to warehouse design.

What type of racking is offered by your company? BITO provides all kinds of inhouse storage and picking systems. This starts from simple shelving, up to very sophisticated automated racking systems, the latest development in the field being the tuning of the existing racking systems of other suppliers with carton live. I think other systems like pallet live, mobile racking or even mixtures of these systems are not really implemented in the Middle East, since the benefits and the huge cost saving potential is simply not known by most of the market.

What factors should be taken into consideration when making a selection? I think first of all you should see where, why and which goods have to be stored within the material flow. Do you pick whole pallets or do you pick single items from the pallet? What is the frequency of the material flow? Has the customer provideed systems like First-InFirst-Out (FIFO)? It could be quite complicated if you have a deeper look and you need to have some experience in this.

FAMCO - DAVID DRONFIELD, GENERAL MANAGER What do Middle East customers demand from racking providers? Customers worldwide demand high levels of service from their providers. It is an industry with many providers of product, but few providing solutions. Inevitably the customer benefits from a well researched and planned solution, or loses from a cheaply purchased product. Modern thinkers recognise the opportunity of reaping benefits from a well designed warehouse operation with product correctly stored on pallets on modern storage systems.

What factors should be taken into consideration when making a selection?

Wherever a customer handles pallets, you will probably find demand for pallet racks or related systems, like pallet live or ASRS. The demand in the Middle East is quite high. But you could also find a similar demand in countries with a good economic growth, for example, India.

To determine the right system, we must ascertain the true customer requirements by commencing with the order profile. This determines the main function of the warehouse or distribution centre. From the order profiles we can determine what storage and handling systems are required to support the picking operations. In general, questions to be asked include a review of the inventory, the resources and the activities, as well as inventory in terms of product type, shape, size and weight. It should also look into activities in terms of order profiles, picking requirements, seasonal trends, and resources such as facilities, HR, existing storage and mhe. The agreed solution is inevitably a compromise between many factors, including criteria such as location, facilities and budgets.

Do you believe this market is underserved or oversupplied?

How strong is demand for pallet racking in the Middle East at the moment?

In the Middle East, you find suppliers from Europe but also from Asia. Sometimes the understanding of warehouse systems are not the same. BITO is one of the leading warehouse suppliers in Europe with itâ&#x20AC;&#x2122;s base in Germany - we have more than 60 years experience in designing and manufacturing. Our company follows quality and safety regulations from Germany, which can make it hard if you are competing with companies that donâ&#x20AC;&#x2122;t follow these standards.

Although the market has declined from its peak, the business has retained a remarkable resilience. However, gone is the mad rush of supplying hastily designed warehouses, replaced by more carefully planned and justified facilities that likewise have to fulfil financial business plans. The Middle East has yet to peak in its demand for modern storage systems and we envisage a steady growth in both the requirement and the take up of these systems.

How strong is demand for pallet racking in the Middle East at the moment?

26 SEPTEMBER 2010 | www.arabiansupplychain.com

Do you believe this market is underserved or oversupplied with providers? There is an adequate supply of storage systems and solutions providers, but a surplus of companies supplying products of questionable origins and design.

Can you name some of your Middle East customers? Working across the industry ranges, FAMCO has worked with both international brands such as Nestle, Unilever, GAC, and well know local household brand names including Landmark group, Al Ghurair, Emirates and DP World.

CASE STUDY: WAREHOUSE RACKING

STACKING

SUCCESS

Q Home Decor’s logistics manager Shailesh Hedge highlights the retailer’s success with a multi-tier racking system in its Dubai warehouse complex.

28 SEPTEMBER 2010 | www.arabiansupplychain.com

CASE STUDY: WAREHOUSE RACKING

ithin the space of a few years, schemes, flooring and everything else,” he Q Home Décor has emerged states with a proud smile. as the latest success story for Millions of dollars have been invested Middle East retail powerhouse in the company’s Dubai Investments Park Landmark Group, which warehouse, which has been designed to launched the company with much fanfare accommodate a certain level of fluctuation in 2006. Unlike its other furnishings outlet in stock dimensions, with different zones Home Centre, which focuses on affordable for each category of furniture. “A large products for the mass market, Q Home Décor section of warehouse space – around 45% - is has opened a string of outlets in Dubai, Abu dedicated to living room furniture. Most of Dhabi, Al Ain and Bahrain with luxury items this furniture is sold as whole units, offered for a more elite clientele. And with 110,000 in complete sets, so it’s quite voluminous square feet of retail space in operation, plus in size. There are other zones for bedroom more to come in the next year, it seems the furniture, dining room furniture, garden brand has succeeded even in the midst of a furniture, and children’s room furniture, global recession. amongst others,” explains Hedge. To support this growth, a large-scale To compliment the zone structure, Q Home storage complex was recently opened in Décor was determined to select the most the heart of Dubai Investments Park to suitable and efficient solution for warehouse optimise the supply chain of Q Home Décor. racking. The first stage in the process was On a typical day, the warehousing facility hiring the services of a specialist consultant will handle three to four packed 40-foot to look into warehouse design and outline containers that arrive from countries such as the space requirements. A drawing team was China, India, Malaysia and Thailand. design the racking, also invited to des For less experienced retailers, ailers, which involved a multitude of such volumes could result in stages before the end-result operational chaos, but for thee nalised. “There are was finalis Q Home Décor team, theree factors several important im The a is undeniable calm in the into consideration, to take int invesmount o warehouse environment. such as the th length of the D écorted by Qf money beams and Indeed, despite the hardan the weight in the Hom working ethos of warehousee that would be placed on s ystemrackinge operators, the workers can continues Hedge. an them,” con still be heard laughing with eventually decided “We event each other over the continuous multi-tier solution with that a multi-tie nuous buzz of forklifts. space would be adequate aisle sp “We specialise in classic,, contemporary perfect for the warehous warehouse, because this and eclectic furniture and home of storage me accessories,” could lead to the optimisation optimisa explains Shailesh Hedge, senior nior logistics and space and continuous airflow throughout supply chain manager of Q Home Décor Décor. the warehouse.” warehouse ” “It’s our objective to provide a comfortable After further thought, a ‘G+3’ structure and peaceful shopping environment, with was drafted for the multi-tier system, with individually decorated room settings. To the heaviest items being reserved for the achieve this, our company will search the ground level, and limits of 400 kilograms world for high-quality furnishings and pass per square metre on the top level and the benefits of our sourcing expertise to 1000 kilograms per square metre on the customers in terms of reasonable prices.” fi rst and second tiers. “Another benefit of With more than 15 years of experience in the system was its potential to bolster the the logistics industry, Hedge was recruited warehouse’s storage capabilities,” says from Future Group in India, where he Hedge. “Additional beams were provided overlooked the supply chain of several retail for support, which meant we could increase outlets. His transition to the Middle East was the number of pick spaces.” smooth, although the executive was quick With a growing community of warehouse to identify the subtle differences in local racking suppliers in the Middle East, Q purchasing habits. “Generally speaking, Home Décor allocated a generous amount customers in this region will design their of time to research the market and consider homes in accordance to the furniture the multitude of options available. “It’s purchased from our stores. So, we are such an important decision and involves a basically the first step in that process, after significant investment, so we had to ensure which decisions are made on the painting the right solution was purchased. The

$544 ,000

“We realise healthcare is a fast growing sector and needs to be supported by a proper supply chain”

www.arabiansupplychain.com | SEPTEMBER 2010

CASE STUDY: WAREHOUSE RACKING

Q Home Décor searched the Middle East market for a racking solution that would offer space optimisation and adequate aisle space for its Dubai Investment Park warehouse

Landmark Group has a very professional attitude and looks at the bigger picture. It’s about the long-term benefits, rather than the short-term,” he continues. “Even a five to six percent variation in racking space has the potential to create a dramatic loss on storage capability. So, all the diagrams were designed and presented to the racking providers, with decisions being made on the back of that. You have to consider where the loading docks and aisles are located, how the goods will be moved in the warehouse, and the proportion of racking area versus the common areas. The drawings must consider each of these before a racking provider can be selected.” The market’s leading players were invited to submit their quotations for the racking project, with the total costs expected to reach over US$500,000. “Finding the right partner was essential, so a lot of time was spent to look at the market, look at the vendors and invite their proposals. We needed a vendor that could provide the total solution, while proving their understanding of our requirements, down to the amount of screws that would be necessary,” states Hedge. “At the end of the day, we did our homework and told them exactly what was required. We shortlisted to three or four of the biggest vendors and waited for their bids in terms of 30 SEPTEMBER 2010 | www.arabiansupplychain.com

the costs involved and the amount of time it would take. Everything was considered, from the time frame, even to the type of allot used in bolts. Once the details were submitted, we were able to commence the negotiations, which lasted a few rounds. Finally, the decision went to the board.” With bated breath, Al-Futtaim Auto and Machinery Company (FAMCO), a member of one of the Gulf’s largest privately-owned business houses, was selected. While the solution came with a higher price tag in comparison to some of the others, it was deemed the most suitable fit to Q Home Décor’s requirements. “It was important that cost was not the determining factor in this decision, so we opted for a racking system that was a little more expensive. It was exactly what we wanted.” In a market where costs are often at the top of a company’s priority list, especially with the global recession leading some companies to look at second-hand racking, the decision to choose FAMCO was indicative of Landmark Group’s business ethos. “The warehouse was constructed with the intension for long-term use. So we need to use the best products that are available in the market. After all, we have employees in the warehouse on a constant basis, and we are adamant that our record of zero accidents is maintained. There was never a question of

using second-hand racking,” concludes Hedge. “Now that the racking has been implemented and introduced into our supply chain operations, we know the right decision was made. Moving forward, we look forward to the continued success of the Q Home Décor brand, and continued developments with our warehousing and transportation in the Middle East.”

Fact File: Q Home Décor

Company name – Q Home Décor Year of inception – 2006 Origin – United Arab Emirates Retail outlets – 5 stores Retail space – 110,000 sq feet Warehouse – Dubai Investments Park Racking system supplier – FAMCO Solution – Multi Tier ‘G +3’ Solution Racking investment – Around US$544,000

DC_Gulf Business_FPC.ai

3/21/10

6:55:22 PM

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.

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TOP 10 EMERGING LOGISTICS MARKETS

EMERGING LOGISTICS MARKETS As the uncertain economic climate continues to bog down established markets such as Europe and North America, the industry’s attention has turned to emerging markets as each contends for global recognition and their respective share of the pie. Transport Intelligence explains which logistics markets are ripe with potential in the fields of market attractiveness, compatibility and connectedness.

MALAYSIA

The global logistics industry has increased its focus on Malaysia over the past decade, with the country being recognised for its emergence as a multi-sector economy with high growth potential. It was also hailed for having ‘the best transport connectivity’ of all finalists in the Transport Intelligence index. Based on the three key indices used by the research company – market size and growth attractiveness, market compatibility, and connectedness – Malaysia’s aspirations to become a global transit hub are rapidly coming into fruition, with companies such as UPS and DB Schenker making large-scale investments there.

www.arabiansupplychain.com | SEPTEMBER 2010

TOP 10 EMERGING LOGISTICS MARKETS

SAUDI ARABIA

The international focus on Saudi Arabia’s logistics industry has increased in recent years, with the Kingdom offering a welcome solace for investors that have been crippled by the global recession. It’s little surprise, therefore, that instead of tightening their purse strings, companies such as TALKE Logistics and Kuehne + Nagel have continued to pump millions of dollars into the local market. Matching the private sector’s enthusiasm, even the government has joined the spending spree, funding the development of several warehousing and transportation hubs throughout the country, from the US$8 billion Prince Abdul Aziz bin Mousaed Economic City in the northern city of Hail to the $26.6 billion King Abdullah Economic City in the western coast of Rabigh.

EGYPT

While securing the eighth position in this year’s list of emerging logistics markets is a triumph for Egypt, the country has a lot of potential to climb the ranking in future years. It has plans to development 24 industrial and logistics zones by 2013, according to a report in the Arab media last month, with a total investment of 40 billion Egyptian pounds (US$7 billion). These zones would be in the new industrial cities that include the Tenth of Ramadan City, the Sixth of October City, the Sadat City and Borg El Arab City. And the country is even looking to environmental sustainability, with Nile Cargo recently announcing the delivery of two ‘green’ river barges.

UNITED ARAB EMIRATES

Over the past 20 years, the United Arab Emirates has become the logistics hub for the entire Middle East, so there is little surprise that it ranks higher than any other country from the region on this year’s list. Of the small economies, Transport Intelligence’s index shows that the UAE offers the greatest exploitable opportunities for logistics companies. Its economic growth, plus its established transport connections make this country a fertile market for logistics activities of all kinds. While projects in Dubai have received the bulk of media attention - including Dubai Logistics City and Jebel Ali Free Zone - neighbouring emirates such as Abu Dhabi and Sharjah are also investing heavily in their logistics infrastructure. 34 SEPTEMBER 2010 | www.arabiansupplychain.com

TOP 10 EMERGING LOGISTICS MARKETS

TURKEY

Although the recession has impacted growth within Turkey’s logistics industry, a number of trade reports have highlighted the country’s growth potential between now and 2014. This is due to a number of factors, including Turkey’s location as a ‘bridge’ between Europe and Asia, its programme of transport infrastructure improvements and attempts to harmonise with the EU’s transportation systems. Other factors are the country’s encouragement for large foreign players to form partnerships with local transport and logistics companies, as well as the expected medium-term strength in the country’s economic performance.

RUSSIA

A number of factors have helped to fuel the growth of Russia’s logistics industry in recent years, helping to place the country in Transport Intelligence’s top five emerging markets in 2010. Growing investment by the government and looming industrialisation led by the entry of foreign players have all played a part in this ranking. Contract logistics in particular is a growth sector.

www.arabiansupplychain.com | SEPTEMBER 2010

TOP 10 EMERGING LOGISTICS MARKETS

MEXICO

Last month, research company BMI predicted a recovery for Mexico’s freight transport sector in 2010. In particular, the country’s port sector is expected to provide one of the industry’s main growth stories this year, with the two major terminals Manzanillo and Veracruz both forecast to register double-digit increases in throughput. Mexico’s airfreight sector is also

on course for a sizeable rebound in 2010, after cargo volumes decreased by 28.9% last year in freight tonne-km terms. In 2010, BMI forecasts volumes to grow by 28.1% year-on-year to 233.1 million freight tonne-kilometres. Road and rail freight, meanwhile, are expected to experience a more marginal growth in keeping with relatively narrow contraction in volumes experienced in 2009.

BRAZIL

Missing out on the top spot, Brazil has been named the second strongest emerging market in the world by Transport Intelligence. Tax incentives by the government, ongoing infrastructure development and a rising industrial demand are all helping to drive the growth in the country’s logistics industry. In particular, the market for contract logistics is forecast to grow by an average growth rate of eight percent over the next five years.

OMAN

INDIA

India claimed the top spot of the overall rankings, scoring particularly high in terms of market size and growth prospects. The country’s logistics industry is poised to become the next exciting growth sector, following the rapid expansion of the real estate and retail markets. Indeed, research company Datamonitor forecasts that the Indian logistics market will reach a value of US$125 billion by 2010, increasing from approximately $100 billion in 2007. The Indian logistics market is experiencing such impressive growth primarily due to the manufacturing, real estate and retail boom in the country. Approximately 50% per cent of Indian companies are outsourcing logistics services such as supply chain management and contract warehousing, up from a mere 10-15% at the start of the decade. All indicators point to this trend continuing and accelerating. At present, outsourced logistics account for only one third of the total logistics market in India, 36 SEPTEMBER 2010 | www.arabiansupplychain.com

INDONESIA

In third place, the government in Indonesia has embraced a number of regulation changes in recent years to support the growth of its logistics industry. For example, earlier this year the country announced plans to open its logistics potential to foreign investors by changing rules that prevent foreign ownership in the first half of 2010. Revisions to the ‘negative investment list’, which limits foreign ownership in education, telecommunications, courier services and logistics, creative industries, and healthcare, are now being finalised by government ministers and are expected to be completed within two months.

which is a significantly lower proportion than in developed markets. The potential for growth is therefore considerable, opening a new horizon of opportunities for the major global logistics

players to either enter the Indian market or step up their operations in the country. This potential has already been realised by a variety of investors from the Middle East.

HUMANITARIAN LOGISTICS

WELCOME RELIEF The continued support of logistics providers in relief efforts remains vital in what’s been described as the worst natural disaster in Pakistani history.

escribed as the worst natural disaster in Pakistan history, the country’s mountainous northwest region was ravaged by monsoon rains at the end of July, with countless homes being destroyed, thousands being killed, and an estimated 20 million people impacted. International organisations were fast in their response to the large-scale calamity, with the World Bank announcing a massive US$1 billion in interest-free funding to help Pakistan cope with the situation. In addition, there was mass unity within the global logistics industry, which offered its expertise in the transportation and warehousing of relief shipments to the South Asian country. In particular, 3PL specialists in the Middle East have been hailed for their immediate response, with Barloworld Logistics UAE amongst the first to launch a charity campaign, which involved the collection of donations from members of the public and company employees.

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“The logistics industry has traditionally played an important role in relief efforts for natural disasters around the world, so when the situation in Pakistan occurred, we wanted to contribute our assistance, especially since a number of our employees are from the country,” explains Frank Courtney, chief operating officer for Barloworld Logistics UAE. “We asked people to donate items for a container that was shipped to Pakistan, with the costs being borne by our company. As opposed to sending cash, there is a greater chance that clothes or supplies will actually reach the people that have been impacted.” On a personal level, the coverage of flood victims on the television and print media was a motivating factor for Courtney to push the campaign forward. “I was watching a news report, where a man was looking for his son and noticed a foot sticking out the water. He identified that as his son’s foot and since I have two children myself, I wondered how someone can deal with that,” he says.

“Your house has been washed away, you are walking through a river and discover your son’s body. How do you carry on? It was at that point that I realised we need to do something. If the contents of our container have the potential to help these people, then we’ve done a small part.” Such emotions have been echoed by companies across the Middle East logistics industry, from small players to largescale operators. “We sent a couple of full shipments last week. Both were twenty-foot containers packed full of clothes, blankets, tarps and tents. Given the circumstances, we see these actions as vitally important,” states Fazal Hussain, managing director of CPL Crown Logistics, who also arranged for a videographer to follow the journey of shipments, ensuring the items were delivered to people in genuine need. Aramex also launched its own campaign in partnership with Emirates National Oil Company (ENOC), it subsidiary Emirates Petroleum Products Company (EPPCO)

HUMANITARIAN LOGISTICS

and Volunteers in Dubai (VID). The logistics company was able to collect donations from ENOC and EPPCO stations in the UAE, which were delivered to those affected by the floods. The initiative was part of Aramex’s corporate social responsibility (CSR) programme, which has previously supported the victims of Pakistan’s 2005 earthquake and more recently, the ‘Delivery Hope to Gaza’ campaign in 2008 and 2009. “Aramex’s logistics network has helped people in disaster-afflicted areas around the world. We are committed to fulfilling our responsibility in such difficult times,” comments Hussein Hachem, the company’s chief executive officer in the Gulf region. “The phenomenal response to our Support Pakistan Campaign last month is a testimony to the empathy for those who have suffered irreparable loss and those who have been rendered homeless because of the natural disaster.” After a brief assessment mission, global market-leader DHL also deployed an initial team of four logistics experts from its Middle East Disaster Response Team (DRT) to Pakistan last month. The team was able to create a provisional warehouse and helped

with the logistical handling of relief goods at the military part of Islamabad airport. The free-of-charge efforts were provided in close cooperation with the UN, in particular with the Office for the Coordination of Humanitarian Affairs (OCHA) and the World Food Programme (WFP). Both, incoming goods of the WFP and bilateral contributions from governments were handled by the DHL Disaster Response Team on the ground. “The situation in Pakistan is very serious and we hope we can support the ongoing relief efforts with our disaster response teams professionally as usual,” states Frank Appel, CEO of parent company Deutsche Post DHL, who allocated a further 20 to 25 DHL employees from different business divisions to help unload pallet goods for further distribution. The assistance of DHL and other logistics providers has been seen as essential for organisations such as the WFP to achieve its targets. “We have been sending in relief supplies through both sea and air, including mobile warehouses” explains Samir Sajet, Dubai-based aviation safety officer for the World Food Programme. “A variety of items were needed, from food and water, to shelter

Relief is being transported through sea and air routes

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HUMANITARIAN LOGISTICS

Aramex hosts UAE campaign Aramex launched a “Support Pakistan” disaster relief campaign in the United Arab Emirates last month. The logistics company - in partnership with Emirates National Oil Company (ENOC), its subsidiary Emirates Petroleum Products Company (EPPCO) and Volunteers in Dubai (VID) - offered to collect donations and provide transportation and other logistics support to areas of Pakistan affected by the monsoon floods. ENOC/EPPCO partnered with Aramex to support the initiative by providing collection points at major service stations across the country from 26th August - 5th September 2010. New clothes, blankets, tinned and packed foods, kerosene stoves and lamps, torches and any type of corrugated sheet (plastic, fibre or steel) for temporary roofing were welcomed at Aramex collection points. “With approximately 20 million people affected by these floods, there is an urgent need to extend support to the people of Pakistan,” says Raji Hattar, Aramex chief sustainability officer. “In line with our commitment to support communities in such difficult times, Aramex will use its logistics expertise and network to facilitate the collection and transportation of aid to the people of Pakistan.”

and telecommunications equipment. Also, high-energy biscuits are very important and there have been a lot of requests for tarpaulins, mosquito nets, tents, blankets and hygiene kits. So we have been doing our best to get those goods in there.” Arguably one of the most proactive humanitarian air freighters remains Maximus Air Cargo, which has historically been one of the first to lend transport assets when called upon. And when considering that leasing a freighter can run upwards of $80,000, it’s no small gesture. “But we’re simply not doing enough,” says Fathi Buhazza, CEO of Maximus Air Cargo. “I want to challenge everyone in our industry to do more.” Buhazza says that Maximus continues to push regular fl ights out of Dubai and Jeddah, to Karachi and Islamabad, and as the founder of Care by Air, a non-profit initiative, Buhazza is spearheading efforts to utilise empty space on fl ights to transport humanitarian aid. “Now is the time for social responsibility. Take the initiative and come forward. It will be to the benefit of everyone,” he stresses. “The UAE is a place of goodness. From an organisational level, we need to be responsive when crisis strikes, implementing the same principles we do in business to humanitarian relief.”

Abu Dhabi-based Maximus Air Cargo pledged three free-of-charge cargo flights during the recent UAE Telethon for Pakistan

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Frank Courtney, COO of Barloworld Logistics UAE

To prove his point, Buhazza pledged three free-of-charge cargo flights during the recent UAE Telethon for Pakistan, which was conducted over three days by the Red Crescent under the directives of His Highness Shaikh Khalifa Bin Zayed Al Nahyan, president of UAE. The flights will carry approximately 150 tonnes of vital material, including tents, blankets and drinking supplies. “Maximus is pleased to make this offer – it is something we wanted to do very much and most importantly to do on behalf of the UAE,” he concludes.

PREVIEW: TOC MIDDLE EAST 2010

TOC Middle East 2010

EVENT PREVIEW Following its success in other parts of the world, the maritime-focused trade show TOC makes its debut in the Middle East next month. So what can the logistics industry expect from this forthcoming two-day conference?

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PREVIEW: TOC MIDDLE EAST 2010

OC Events Worldwide has experienced a considerable amount of success with its maritime-focused conferences around the world, with a series of trade shows being held in locations such Brazil, China and Belgium. From next month, the event organiser will expand its global portfolio with the launch of TOC Middle East, which is scheduled to take place on 20th and 21st September at Shangri La’s Barr Al Jissah Resort and Spa in Oman. The two-day conference has already received the stamp of approval from Port of Salalah and will reflect upon the significance of mass developments in the Middle East over the past decade, with a particular focus on the region’s increasing impact on international shipping activities. “As the Middle East continues to grow, it is becoming one of the biggest success stories of the maritime industry. The growth in the region has been phenomenal and terminals are looking to expand further to meet the growing demand for goods,” comments Paul Holloway, event director of TOC Events Worldwide. “We feel the time is right to bring TOC to the Middle East and offer terminal operators in the region a high-quality, editorially driven conference that has up-to-date market information and addresses the issues that matter most to ports in the region.” Port development throughout the Middle East is running at unprecedented levels as governments and investors look towards the future infrastructure needs of this rapidly-growing region. The huge increase in container throughput has already driven

more than US$38 billion in port investment and a further $40 billion is ready to be poured into port construction across the Arabian Peninsula and neighbouring countries. With a large percentage of the Middle East’s maritime developments taking place in Oman, Holloway believes the country will make a perfect venue for TOC Middle East. For example, the Port of Salalah is undergoing rapid expansion and recently announced plans to gradually expand its total quay length to 8 kilometres, while its capacity will grow to 15 million TEUs per annum. Further north, the Port of Sohar is also transforming itself into a major industrial and maritime centre, serving not only the Sultanate, but neighbouring countries such as the United Arab Emirates. “By attending the event, visitors will be able to connect with like-minded professionals, engage in highly educational conference sessions and discover new innovations on the exhibition floor. Our wealth of experience and ability to attract the most influential speakers from across the globe means that TOC Middle East will be the show for industry leaders in the area to attend this year,” continues Holloway. The conference sessions will aim to address the concerns of the market, plus give a focused insight into Middle East trade and the sustainability of new terminals, according to Neil Madden, conference editor of TOC Middle East. “Trade in the Middle East has grown in leaps and bounds, but has it been too much too soon? The explosive growth in throughput – from 15 million TEU to 24 million TEU in just four years – has driven a huge amount of port investment, but it is essential that local economies can continue to develop and justify

this huge development. A key question on the minds of all operators in the region is whether local economies continue to consume and generate sufficient cargo to justify all of this terminal space in the coming years,” he says. “We have devised a conference programme that will, amongst other things, discuss the dynamics of port development in the Middle East, offer a unique insight into the major investments in the region and help terminal operators with port master planning. We will also offer delegates an insight into the rebuilding of Iraq’s maritime infrastructure and whether the Middle East is placing too much focus on container capacity at the expense of bulk and break-bulk handling,” adds Madden. TOC Events Worldwide is offering 100 complimentary VIP delegate places to terminal operators and shippers for the Middle East event. More information is available at http://www.tocevents-me.com.

TOC GLOBAL EVENTS Event: TOC Middle East (20th-21st September 2010) at Muscat, Oman Event: TOC Americas (9th to 11th November 2010) at Rio de Janeiro, Brazil Event: TOC Asia (15th – 17th March 2011) at Tianjin, China Event: TOC Europe (7th to 9th June 2011) at Antwerp, Belgium

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PREVIEW: TOC MIDDLE EAST 2010

SPEAKERS LIST

EXHIBITORS AND SPONSORS

A number of leading companies have already signed up as exhibitors and sponsors of the first TOC Middle East Exhibition. The Port of Salalah, Moffatt & Nichol, ABB Crane Systems, Cavotec, Camco Technologies, Prysmian, Terex, Siemens, Konecranes, World Crane Services and Gulftainer are just a selection of the businesses that have chosen to showcase their services and solutions to the high-level visitors that will be present at the event. As with every TOC event around the globe, there will be a strong terminal operator presence in Oman. APM Terminals, DP World and PSA are all backing the show by agreeing to be key

partners, whilst the Port of Salalah is official sponsor of the first TOC Middle East. The exhibition floor will provide visitors with the opportunity to gather market information, develop strategic partnerships and allow exhibitors to secure constructive business deals. “The first ever TOC Middle East is set to be a hugely successful show and will be a must attend event for business leaders and terminal operators within the region. We look forward to welcoming industry professionals from across the Middle East to Oman in September,” states Paul Holloway, event director of TOC Events Worldwide.

CONFERENCE VENUE Shangri-La’s Barr Al Jissah Resort and Spa is described by TOC Events Worldwide as “the perfect venue for participants and accompanying guests”. Situated in Sultanate’s capital of Muscat, the resort includes the sparkling bay of Al Jissah, inviting beaches and the dramatic mountains and desert – an appealing escape once the conference is over.

The TOC Middle East conference will feature some of the region’s most influential speakers, including Warith Al Kharusi, chairman of the Oman Logistics & Supply Chain Association (pictured), Dr Khaled Bubshait, president of Saudi Ports Authority, Lars Oestergaard Nielsen, managing director UAE, Qatar and Oman at Maersk Line, Keith Nuttal, commercial manager of Gulftainer Group, and Iain Rawlinson, chief commercial officer at APM Terminals Bahrain. As more and more countries in the region open their doors to global trade, the panellists will deliver insights, opinions and information on the latest and ongoing developments and innovations in the industry. Attendees to the conference will benefit from informative presentations and discussions on key topics – covering everything from terminal operations and technology, planning, performance and automation through to looking at the workforce, sustainability and the environment.

NETWORKING OPPORTUNITIES According to organisers, conference delegates at TOC Middle East will have a unique opportunity to network with exhibitors, speakers, VIPs and visitors alike. Beginning on the eve of the show with preconference drinks, the networking opportunities continue throughout the show with lunch and coffee on the show floor on both Monday and Tuesday, along with a poolside evening reception – sponsored by Moffat & Nichol. The evening of the final day will feature the hugely-popular ‘Happy Hour’ where those attending can mingle for an extra our after the conference has closed to discuss ideas and opportunities.

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PREVIEW: TOC MIDDLE EAST 2010

CONFERENCE PROGRAMME PRE-CONFERENCE RECEPTION | Sunday 19th September 2010 19:00-20:00 Attendees can meet and network prior to the first day of TOC Middle East at an informal drinks reception to be held on Al Bandar Beach CONFERENCE DAY ONE | Monday 20th September 2010 08:00-17:00 Registration desk open 08:00-09:00 Refreshments served 09:00-09:30 Conference opening and welcome remarks with Kieran Ring, CEO of Global Institute of Logistics 09:30-11:00 SESSION 1: REGIONAL ECONOMIC DRIVERS - The economies of the Middle East are undergoing fundamental change, which means trade patterns, container flows and logistics services are all set to evolve into significantly different models from those of the past decade SPEAKERS & PANELLISTS: Warith Al Kharusi (Oman Logistics & Supply Chain Association), Lars Oestergaard Nielsen (Maersk Line), Iain Rawlinson (APM Terminals) 11:00-11:30 Refreshments served 11:30-13:00 SESSION 2: THE DYNAMICS OF MIDDLE EAST PORT DEVELOPMENT - Cargo terminal capacity is being added across the Arabian Peninsula in a variety of different forms, from small to large facilities. Can future cargo justify the massive scale of investment or do some of the new ports risk being left with few or no customers? SPEAKERS: Dr Khaled Bubshait (Saudi Ports Authority), Hassan Ali Al Majed (General Organisation of Sea Ports, Bahrain), Saud Tammah Al-Onaini (Gulf Stevedoring

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Contracting Company), Mark Simmons (Moffatt & Nichol) 13:00-14:30 Lunch served 14:30-16:00 SESSION 3: MARKET SPECIFICS & MAJOR INVESTMENTS - Speakers take a walk through the major port developments across the Middle East region. Which are the most significant? Which will change the game in terms of design, scale, automation and management practice? SPEAKERS: Klaus Holm Laursen (Aqaba Container Terminal), Keith Nuttall (Gulftainer Group), Alireza Cheshm Jahan (Tidewater Middle East) 16:00-16:30 Refreshments served 16:30-18:00 SESSION 4: THE GEO-ECONOMIC CONTEXT - The Middle East region is not alone in developing new port capacity to capture a share of passing East-West container transhipment. From Sri Lanka to the Horn of Africa, other regions pose serious competition, particularly in terms of serving the Indian subcontinent, the Southern Indian Ocean and Central and Southern Africa. SPEAKERS: Dr Parakrama Dissanayake (Aikten Spence Maritime), Karl Socikwa (Transnet Ports & Terminals), SN Srikanth (Hauers Associates) 18:00 END OF CONFERENCE DAY ONE, FOLLOWED BY NETWORKING RECEPTION CONFERENCE DAY TWO | Tuesday 21st September 2010 08:00-17:00 Registration desk open 08:00-09:00 Refreshments served 09:15-10:45 SESSION 5: PORT MASTER

PLANNING - Port master planning encompasses a range of activities – from creating port or shipyard layouts to examining the complex interaction of national and international economics, and the effects these have on the demand for facilities. Which skills and services are required to bring a port plan from feasibility to final handover? SPEAKERS: Ian Chadney (Moffatt & Nichol), Susanne Milberg (HPC Hamburg Port Consulting), Martin Mannion (Scott Wilson Strategic Consultancy) 10:45-11:15 Refreshments served 11:15-12:30 SESSION 6: ENVIRONMENTAL IMPACT MANAGEMENT - Investing in environmental impact management is a necessity for the modern port corporation SPEAKERS: Juergen Strommer (Cavotec Middle East), Shahrin Osman (DNV Dubai), Richard Marks (Royal Haskoning) 12:30-14:00 Lunch served 14:00-17:00 SESSION 7: TERMINAL AUTOMATION AND TECHNOLOGY - No longer purely the preserve of the high-end megaterminal, the costs of robotic container handling and process automation technology are falling in real terms, opening up new possibilities to a wider terminal demographic SPEAKERS: André Lingemann (HPC Hamburg Port Consulting), Michael Richter (Moffatt & Nichol), Howard Wren (Jade Software Corporation), Allen Thomas (APS Technology Group), Udo Niessen (Inform), Fredrik Johanson (ABB Crane Systems) 15:30-16:00 Refreshments served 17:00 END OF TOC MIDDLE EAST 2010

ASK THE EXPERT

RISKY BUSINESS QUESTION: Has the economic downturn increased the regional need for supply chain risk management? POST-RECESSION DANGERS FOR YOUR SUPPLY CHAIN OPERATIONS The worst of the recession appears to be behind us. However, many companies must still face their greatest danger – stabilisation of their supply chain. Accordingly, there is increasing demand for professional supply chain risk management that can be used for identifying the major risks facing your business and actively taking decisions to reduce your exposure. Generally speaking, its not ‘acts of god’, accidents or even terrorism that lead to the failure of supply chains. In fact, the long-term dangers are much more ordinary than that and are wrapped in the day-to-day processes all the way along the supply chain – from the sourcing of materials at the raw material suppliers through to the delivery of finished product to the end-customer.

THE IMPORTANCE OF INDENTIFYING TRUE RISKS TO YOUR SUPPLY CHAIN The real risks in a supply chain are often things ultimately in our sight and in our control, such as the complexity of the supply base, longer and leaner supply chains from global sourcing decisions, and expansion of the product range, as organisations seek to introduce new offerings for their customers. Combine this with external factors such as volatility of demand, currency fluctuations and long-term scarcity of commodity raw materials and you have a melting pot of potential risk on a global level.

freeing their business from expensive working capital. When demand quickly returns to a normal level, there can be a shortfall in supply – particularly if the downturn caused some suppliers to go out of business completely, resulting in a permanent reduction in supply capacity. An international study conducted last year by the Capgemini consultancy suggested that two out of three supply chain managers saw their work as being most greatly affected by the economic downturn.

LOOKING AT THE BIGGER PICTURE There are reasons why companies are devoting greater attention to supply chain risk management. The objective here is building risk management into the dayto-day processes of managing your supply chain. You can’t eliminate risk – but you can recognise it and take practical steps to mitigate against it, which will minimise your risk exposure. As an example, take the leading ‘risk fear’, which is supplier failure. In this regard, it is not just a question of examining those who directly supply

HOW THE RECESSION HAS PROVED THE FRAGILE NATURE OF LOGISTICS In rosy economic periods, when supply is plentiful, disruptions in the supply chain are readily overcome. But in periods of economic drought, supply chains can become more fragile and often in an unnoticeable way. As customers turn off the tap on demand, cautious suppliers also reduce their stock levels – focusing on the essentials of protecting cash and 48 SEPTEMBER 2010 | www.arabiansupplychain.com

This month’s column was written by Andrew Kinder, director of solution marketing at supply chain specialist Infor.

product to you. You need to look further back to those who supply product to your suppliers and even further to the base commodity materials at the furthest reaches of your supply chain. If there are only one or two places globally that your suppliers can source their primary raw materials and there is multiple global demand for those materials, then you have a source of risk. When you have identified your risk source, you can take appropriate steps – such as agreeing long-term capacity commitments with the raw material supplier to safeguard your supply. Another example is analysing your cost base for transportation, fuel and energy costs and their influence on your total product cost. Last year provided a sharp reminder about the impact of oil pricing and called into question the dependence on far eastern supply, with savings in manufacturing being eroded by upward swings in transportation costs.

A HIGH-PROFILE EXAMPLE OF RISK MANAGEMENT FOR SUPPLY CHAINS A well-documented example of an aggressive supply chain risk management strategy even made it into the headlines of the international press. In the build up to the launch of its iPod Nano, Apple secured longterm supply of the critical component, flash memory – effectively preventing its rivals from pursuing the launch of their own devices. Strategies such as these cannot, however, be managed without the corresponding IT support. Whilst risk management is a business process, it is underpinned by information and strong IT. Supply chain solutions such as those from Infor, for example, can be used for making projections as precisely as possible and generating both worst-case and best-case scenarios – the simulations helping to identify sources of risk and supply failure. Supply chain risks are often hiding in plain sight. But with the right tools, risks are more manageable than you think.

INDUSTRY STATISTICS

FACTS & FIGURES Air cargo regional & international statistics

Knowledge of cargo statistics is essential in 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 250000

450

06 August 18 June

410

413

25 June

399

401

200000

30 July

16 July

391

387

150000

370

100000

330

50000

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).

13 Aug 10

06 Aug 10

30 Jul 10

23 Jul 10

16 Jul 10

09 Jul 10

02 Jul 10

25 Jun 10

18 Jun 10

11 Jun 10

250

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

MAY 2010/2009 Cargo (tonnes)

% CHG

YEAR-TO-DATE 2010/2009 Cargo (tonnes)

% CHG

AIRPORT/COUNTRY

May 10

April 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

18,731

-7.6

24,665

-8.2

Algiers (Algeria)

1649

-32.3

7575

-26.9

Antananarivo (Madagascar)

1064

17.2

4772

5.5

25,145

1.5

132,637

9.3

Casablanca (Morocco)

4671

-6.2

21,703

-15.4

Dar Es Salaam (Tanzania)

1374

-4.4

6345

-14.4

Brussels (Belgium)

Addis Ababa (Ethiopia)

Cologne (Germany)

49,514

13.3

237,157

9.7 30.9

40,828

40.5

187,938

39.1

50,784

27.0

238,490

26.4

% CHG

16.6

Accra (Ghana)

5.9

Leipzig (Germany)

YEAR-TO-DATE 2010/2009 Cargo (tonnes)

104.5

20.3

185,920

Istanbul (Turkey)

% CHG

4712

603,129

15.6

912,290

MAY 2010/2009 Cargo (tonnes)

10,868

27.3

38,484

38.0

Oct 09

MONTHLY AIR CARGO REPORT: AFRICA REGION*

130,974

207,521

Sept 09

CARGO STATISTICS This graph represents the cargo volumes handled at Dubai International Airport over 12 months. Cargo is measured as loaded and unloaded freight and mail in tonnes (Source: Airports Council International)

Amsterdam (Netherlands)

Frankfurt (Germany)

Aug 09

INDEX 100 = 53.5 US cents per US gallon

July 09

June 09

290

Cairo (Egypt)

London Heathrow (UK)

142,568

35.2

618,749

21.7

Luxembourg (Luxembourg)

68,786

35.4

288,398

14.6

Paris (France)

189,000

31.3

832,770

16.0

Vienna (Austria)

22,718

39.9

98,859

35.6

Libreville (Gabon)

1693

0.9

7541

-9.7

Warsaw (Poland)

4769

24.1

22,139

13.4

Saint-Denis (Reunion)

2862

12.8

13,804

13.8

26,724

23.3

128,278

17.2

Tunis (Tunisia)

2252

17.7

9121

18.6

Zurich (Switzerland)

Djibouti (Djibouti)

554

n/a

2745

-35.2

Harare (Zimbabwe)

1883

10.0

8875

10.3

30,150

57.8

124,321

23.8

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 SEPTEMBER 2010 | www.arabiansupplychain.com

INDUSTRY STATISTICS

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

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

MAY 2010/2009

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Abu Dhabi (UAE)

39,221

19.4

174,729

21.6

Ahmedabad (India)

Amman (Jordan)

7483

-9.6

35,405

7.4

Bahrain (Bahrain)

27,749

-0.5

139,674

Beirut (Lebanon)

6832

8.5

31,338

195,221

31.7

918,329

Dubai (UAE)

MAY 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

2389

31.1

11,305

34.9

Bangalore (India)

18,356

46.8

84,403

37.0

-0.5

Bangkok (Thailand)

110,338

31.5

524,455

39.1

8.2

Calcutta (India)

10,699

36.4

48,025

31.7

27.1

Colombo (Sri Lanka)

14,273

23.4

68,288

28.6

Fujairah (UAE)

3142

1.2

14,745

2.2

Fukuoka (Japan)

19,402

3.3

101,141

7.9

Kuwait (Kuwait)

17,609

13.3

87,354

17.6

Hong Kong (China)

370,209

41.6

1,641,269

36.3

Muscat (Oman)

8742

77.8

39,586

67.7

Jakarta (Indonesia)

43,267

14.8

212,822

19.0

Ras Al Khaimah (UAE) Sharjah (UAE)

n/a

1007

-9.3

Kuala Lumpur (Malaysia)

60,379

28.6

280,558

28.8

27,370

23.2

172,175

15.7

Manila (Philippines)

35,386

32.4

170,855

51.4

Mumbai (India)

57,356

23.5

269,571

23.4

Osaka (Japan)

61,214

34.3

297,875

37.3

YEAR-TO-DATE 2010/2009

Seoul (Korea)

9775

-0.1

60,220

-5.9

Shanghai (China)

282,379

48.1

1,308,593

53.5

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA AIRPORT/COUNTRY

MAY 2010/2009 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Anchorage (USA)

471,542

135.1

1,260,911

88.7

Singapore (Singapore)

155,350

14.5

739,321

16.9

Buenos Aires (Argentina)

18,127

62.2

77,697

39.0

Taipei (Taiwan)

159,318

52.6

723,883

62.4

39.9

Tokyo (Japan)

186,746

30.7

893,202

38.0

Chicago (USA)

125,262

51.9

552,817

Los Angeles (USA)

152,531

26.8

704,643

26.0

Memphis (USA)

326,359

9.8

1,601,680

8.8

Mexico City (Mexico)

34,123

31.7

154,781

24.8

*Monthly cargo statistics for international airports, with data provided by global trade association Airports Council International (ACI). Cargo is defined as loaded and unloaded freight and mail (in tonnes).

For up-to-date figures, visit:

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www.arabiansupplychain.com | SEPTEMBER 2010

INDUSTRY STATISTICS

FACTS & FIGURES Sea freight regional & international statistics

FUJAIRAH BUNKER FUEL PRICE INDEX 500

12 Jan

482

Hamburg (Germany)

462

n/a

Houston (USA)

453

473

685

655

Istanbul (Turkey)

440

463

n/a

Piraeus (Greece) Rio de Janeiro (Brazil)

491

511

732

n/a

474.5

496

690

n/a

456

479.5

716

n/a

445.5

472

668

n/a

Shanghai (China)

n/a

Singapore (Singapore)

453

461

657

n/a

Rotterdam (Netherlands)

350

275 12 Aug 10

n/a

709

12 Jul 10

738

482

12 Jun 10

541

n/a

450

12 May 10

n/a

Fujairah (UAE)

12 Jul

12 Oct

444.5

425

12 Apr 10

700

12 Feb 10

710

12 Jan 10

480

459.5

12 Jan 10

470

12 Dec 09

MDO

12 Nov 09

MGO

12 Oct 09

IFO180

Cape Town (South Korea)

New Orleans (USA)

12 Mar

466

IFO380

12 Sept 09

Busan (South Korea)

475

12 Dec

BUNKER FUEL PRICE INDEX* PORT / COUNTRY

12 May

480

12 Mar 10

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.

*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 August 2010. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES 15 million

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority CARGO TYPE

Loaded

Discharged

Loaded

2,388,344

661,223

11,247,540

3,425,631

Bulk cargo (liquid)*

265,914

4,298,251

2,080,607

25,154,126

General cargo

675,057

50,645

3,896,944

292,477

2,613,785

1,888,030

14,749,918

10,927,399

159,659

19,014

834,552

89,226

6327

n/a

57,772

n/a

6,109,086

6,917,163

32,867,333

39,888,859

Containers (in tonnes)

9 million

Ro-Ro and vehicles Livestock TOTAL

6 million

TOTAL PORT THROUGHPUT

CONTAINERS (TEU)

3 million

Jun 10

May 10

Apr 10

Mar 10

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sep 09

Aug 09

Jul 09

YEAR-TO-DATE

Discharged

Bulk cargo (solid)

12 million

JUNE 2010

13,026,249

72,756,192

2010

2009

June

Year to date

June

Year to date

Discharged

235,906

1,306,577

191,445

1,059,270

Loaded

220,725

1,258,222

181,597

1,060,931

TOTAL

456,631

2,564,799

373,042

2,120,201

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

52 SEPTEMBER 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 affecting the domestic market’s development. Delegates will have the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities expected to arise. An awards ceremony will also take place to coincide with the event on Monday 11th October. 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 on Sunday 24th October 2010. The session is aimed at trade professionals from across the region, in addition to students that have enrolled on supply chain programmes. A host of topical issues will be tackled by speakers from the Middle East, in addition to countries such as Holland and the United Kingdom. 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-owner 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 event of its kind in the Middle East, this year’s installment, which has a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA), is expected to attract around 70 exhibitors from around the world. Topics will include logistics, shipping and container ports and ongoing market challenges. VENUE: Hilton Hotel, Alexandria, Egypt EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com

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. VENUE: Dubai, United Arab Emirates EMAIL: admin@sclgme.org WEBSITE: www.sclgme.org

54 SEPTEMBER 2010 | www.arabiansupplychain.com

HANDLING EXPO

30th November 2010 AVIATION BUSINESS AWARDS

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

Hundreds of figureheads from the Middle East aviation industry will gather at the Emirates Palace hotel in Abu Dhabi this year for the annual Aviation Business Awards. Inaugurated in 2007, the ceremony has established itself as the ultimate celebration of achievements within the region’s booming aerospace sector over the past 12 months. This year’s awards will include 15 categories in total, covering the airline, airport and cargo sectors, together with a variety of supporting niches. VENUE: Emirates Palace, Abu Dhabi EMAIL: robeel.haq@itp.com WEBSITE: www.arabiansupplychain.com

5th – 7th June 2011 SITL DUBAI

25th - 27th September 2011 MATERIALS HANDLING MIDDLE EAST

Hosted by Reed Exhibitions, the second 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 and Exhibition Centre EMAIL: mohamad.ahmed@reedexpo.ae WEBSITE: www.sitldubai.com

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, SPAN Group, Ehrhardt + Partner Solutions, Exactus and Loc8. VENUE: Dubai Convention and Exhibition Centre EMAIL: info@uae.messefrankfurt.com WEBSITE: www.materials-handling-dubai.com

FACE TO FACE INTERVIEW

BRAND NEW PARTNERSHIP

Recently appointed as the general manager of Ehrhardt + Partner Solutions (EPS) in Dubai, former BITO executive Christian Gebler has grand ambitions for the logistics technology company. You were appointed as the general manager of EPS in Dubai last month. What attracted you to the position? A number of factors made this position appealing for me. For starters, looking at the passion, commitment and effort of the Ehrhardt family into building this subsidiary has increased my confidence that the board and myself will work as an excellent team and achieve our goals for the future. Although the environment will be challenging and there is a lot of hard work ahead for the entire team, I know we can develop our brand to where it belongs, as a true market leader. In consideration of this challenging environment, what are your forecasts for the company’s performance in 2010? Following the opening of our regional headquarters in Dubai Logistics City, we have doubled the size of our team and introduced a lot of experience in sales, marketing and engineering. The next stage is bringing EPS closer to our clients, listening to their needs, and offering the

right solution. We need to exceed their expectations and that will involve a period of integration, skills coaching and training on the products to build up competence and performance. By the end of this year, the right person has to sit in the right seat and be efficient in supporting customers. As the general manager in Dubai, what strategies will you bring to the table so that EPS is able to achieve its goals? First of all, we need to look at our approach today. Are we able to pass the message of how our service and products differ to our competition? How much valuable time do we spend with our customers? I am determined to increase the number of customer visits per day, while reducing non-valuable time in the car and the office. As mentioned before, EPS leaders will spend a lot of time in coaching and developing the team members. We will work with research companies to get the right information on new warehouses in the region and do the needful marketing steps to create brand excellence. What impact has the global recession had on the company’s market position in the United Arab Emirates? We cannot deny that the UAE has been through a difficult time in the past couple of years and the market has been under more and more pressure. However, despite these challenges, I believe that Ehrhardt + Partner Solutions has been heading in the right direction. We have opened the biggest logistics centre in the region, where people can learn about our various software and technologies. In addition, they can discover the latest techniques to grow in the supply chain industry and that is something that will maintain our position in the market, because we are not only a company, but also an instrument of

56 SEPTEMBER 2010 | www.arabiansupplychain.com

knowledge to help bolster the market strategies of customers. That will help to keep us moving forward in the region. With so much competition in the market, what type of contracts have been awarded to EPS since the company launched its operations in the region? With our customers in the Middle East, we have a combination of big companies and small companies. For example, there are large-scale businesses, such as Hellmann Logistics and the EMKE Group, which operates the successful Lulu Group chain of supermarkets. At the same time, we have attracted the business of smaller companies in Oman, which are growing and becoming more organised with our warehouse planning and consulting. They have accepted that change is essential in order to growth as a business over here. EPS hails from the European market and the bulk of your career has been spent in Europe. What are the main differences between there and the Middle East? In Europe, almost every country knows Ehrhardt + Partner Solutions. In Germany, for example, we have more than 20 years experience and don’t need to worry too much about marketing, which is great. In Dubai, the challenge is bigger. First because logistics as a subject has to be explored further here. I often refer to the UAE as a beautiful diamond that must be carefully cut to shine and show its beauty. The country is still in the phase of being discovered - there is a lot of potential, but the work is much more challenging than anywhere else in the world. That is what makes us proud, because Ehrhardt + Partner Solutions has played its own role in the growth of the Middle East logistics industry and will continue to support all developments in the future too.

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