Logistics Middle East - Nov 2009 by ITP Business Publishing

An ITP Business Publication

CHEMICAL REACTION The hidden potential of the petrochemical sector for 3PL service providers

SITL DUBAI REPORT NOVEMBER 2009 ISSUE 62

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

Highlights of the biggest logistics exhibition to hit the Middle East in 2009

B riaan M c Hale Br Hale,, chief chief exec executiv utivee offi of fi cer, cer, Wared Wared Log Logisti istics cs

STORALL

І ARAMEX І DAMCO І CEVA LOGISTICS І SPAN GROUP І FIRST BAHRAIN

“Give all my cargo undivided attenti n.”

...............................

Go ahead, challenge us. At Agility, we make it our business to pick up as promised, ship as scheduled, track every move and deliver on time, every time. So we’re not only providing reliable solutions to deliver your freight, we’re managing every move down to the last detail.

Agility is a leading logistics company with 37,000 employees taking care of our customers in more than 120 countries. Put your local ofﬁce to the test: middleeast@agilitylogistics.com. © 2009 Agility Logistics AG

CONTENTS

CONTENTS Issue 62 November 2009 For the latest news and stories go to

20 02 Editor’s Letter

18 ArabianSupplyChain.com

42 Top 10 Forklift Trucks

Following months of hype, we reflect on the success of this month’s SITL Dubai.

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

Profiles of the latest forklifts to enter the Middle East materials handling market.

04 Readers Letters

20 Cover Story

48 Ask The Expert

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

Uncovering the facts behind the multimillion dollar launch of Wared Logistics.

Storall’s Ghassan Abughazaleh explains the growing popularity of self storage solutions.

07 News Update

24 Middle East Airfreight Report

50 Facts And Figures

• Safety concerns raised in the United Arab Emirates after a series of warehouse fires • CEVA expands Dubai warehouse network • Aramex milestone at Dubai Logistics City • First Bahrain starts SME logistics venture • GAC brings Swiss Post to the Middle East • UASC signs logistics deal with Momentum • SPAN completes racking project in Qatar • CHEP expands regional service network • CILT breaks record with Dubai seminar

How the air cargo industry has continued to showcase its resilience in the Middle East.

Transportation statistics from a variety of regional and international sources.

30 Chemical Reaction

54 Events Calendar

With the growth of niche logistics, does the petrochemical sector hold much potential?

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

34 SITL Dubai Show Report

56 Face To Face Interview

Highlights and photo special for this month’s SITL Dubai 2009 exhibition and conference.

Rolf Habben-Jansen, global CEO of Damco, reflects on the merger with Maersk Logistics.

48 www.arabiansupplychain.com | NOVEMBER 2009

EDITOR’S LETTER

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 435 6284 email: robeel.haq@itp.com Contributors Nadia Khan, Ed Attwood, Abdelghani Henni ADVERTISING Commercial Director Fareed Dubery Tel: +971 4 435 6339 email: fareed.dubery@itp.com Sales Manager Jayant Dey Tel: +971 4 435 6106 email: jayant.dey@itp.com STUDIO Group Art Editor Daniel Prescott Art Editor Simon Cobon PHOTOGRAPHY

A reflection on the debut of SITL in Dubai

ollowing months of hype, the global exhibition SITL finally made its debut in the Middle East this month, with approximately 5000 people in attendance from across the industry. The impressive turnout is probably enough to keep the event’s organiser Reed Exhibitions happy, even though its earlier prediction of 250 exhibitors was later reduced to 200 exhibitors and, at final count, was squashed even further down to 80 exhibitors. However, in the name of quality over quantity, some of the logistics sector’s biggest names were still present, including the likes of DP World, Jebel Ali Free Zone, Agility, Al-Futtaim Logistics, Port of Sohar and TNT Express. A number of VIPs were also spotted doing the rounds at Dubai International Convention and Exhibition Centre for the event, with powerful guests including His Highness Sheikh Ahmed Bin Saeed Al Maktoum (chairman of Dubai Aviation City Corporation), His Excellency Sultan Ahmed Bin Sulayem (chairman of Dubai World), Salma Hareb (CEO of EZW) and Rashed Buqara’a (COO of Dubai Aviation City

Corporation). The four figureheads were invited to announce a committee that has been drafted to manage the proposed Dubai Logistics Corridor project – you can read about that, plus all the other highlights from SITL, in our show report this issue. Also making an appearance at the exhibition, all the way from Saudi Arabia, was the Middle East’s latest entrant to the 3PL sector, Wared Logistics. The company, which features on this month’s cover of Logistics Middle East, has grand ambitions to rapidly develop its presence throughout the region – and what’s more, it’s got the financial backing from its two owners - Construction Products Holding Company (CPC) and Zahid Holding Group - to turn those dreams into a reality. We were provided with exclusive access to the development plans by Brian McHale, chief executive officer of Wared Logistics, which are detailed later in the magazine. Enjoy the read! If you have any comments to make on this month’s issue, please email Robeel Haq, senior group editor (robeel.haq@itp.com)

To subscribe please visit www.itp.com/subscriptions 2 NOVEMBER 2009 | www.arabiansupplychain.com

Director of Photography Sevag Davidian Chief Photographer Nemanja Seslija Senior Photographers Alan Desiderio, Efraim Evidor, Khatuna Khutsishvili Staff Photographers Leila Cranswick, Lyubov Galushko, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, Khaled Termanini PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Louise Schreiber Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles General Manager - Regional Distribution Shaded Ali Shaded Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 435 6000 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Horizon Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

*BPA Worldwide Audited Average Qualified Circulation 6,044 (Jan - June 2009)

Providing the Ultimate Logistics Solutions in the Middle East and North Africa (MENA) Region

READERS LETTERS

The definition of logistics hub?

Anniversary congratulations

Dear Editor, I am writing in regards to a news story in the last issue of Logistics Middle East, which was entitled ‘$26 billion projects to turn UAE into logistics hub’. The article raised a number of important points, but I have to question Standard Chartered d Bank’s reasoning that a country cou ountr unt ntry can automatically develop an autom utomatically tically ic develo de ev l into a logistics hub with the development pm p pment meeen m off massive warehousing m i w ma ehousing h usiing projects. p pro proje j On the contrary, I believe that a look o ok att cargo provide arg argo rgo go volumes vo would p rovide ovid de a better indication on whether nw h th Dubai and the other have succeeded oth o ther tth he emirates her i t h d d in i their thei eir i endeavourr to become beccome global g logist logistics logistic og stic hubs. Rajesh Mukherjee

Dear Editor, The cover story on Globelink West Star Shipping in Logistics Middle East was interesting to read and I would like to personally congratulate Martin Aranha and the entire team at Globelink West Star Shipping on their achievements. The company has certainly come a long way since its launch 20 years ago and here’s to their continued success in the future. Santosh Kumar, Cargolux

Poor assessment from report Dear Editor, Following your article on the logistics potential of the United Arab Emirates, I believe the country is already a major logistics hub and has been one for many years now. Perhaps this representative from Standard Chartered Bank does not have much knowledge of the industry if he believes that two or three upcoming developments might now ‘turn the UAE into a logistics hub’. He might consider looking at the cargo volumes instead. Nigel Moore, Logistics Executive

Three cheers for Globelink Dear Editor, Globelink West Star Shipping is indeed a ‘silent leader’, as covered in the last issue of your magazine. Reaching its 20th anniversary is a major milestone for the company and it’s great to hear about their various developments in the Middle East. Congratulations to everyone involved! Ramesh Kumar S.

Seminar success for CILT Dear Editor, I was part of a student delegation from the Institute of Management Technology that attended the recent CILT seminar in Dubai and felt privileged to be part of this event. It was fascinating to hear the thoughts of CILT’s regional director Alex Borg and other leaders from the logistics sector. I look forward to the follow-up seminar. Avaneendra Mishra

Warehouse wonders from GAC Dear Editor, Here is some input for your article on the top 10 GAC warehouses around the world. I’ve dealt with this company on a number of occasions and have always been impressed with their customer service levels. Although their operations might not match the scale of a player such as Agility, I am confident that GAC Logistics will continue its growth around the world in the future and emerge as a market leader on a global level. It would be useful to have similar articles on other companies in the Middle East logistics industry, so readers can have a comparison on the warehouse networks of GAC’s competitors. Salil Moharam

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

4 NOVEMBER 2009 | www.arabiansupplychain.com

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NEWS UPDATE

Warehouse fires raise safety concerns in UAE Logistics sector under pressure to boost safety standards after recent blazes in Sharjah and Dubai

afety standards in the Middle East logistics industry must be improved to combat a growing number of warehouse fires in the region, according to research by Duval Messien. The company, which specialises in earthing systems, has warned that a recent spate of warehouse fires in cities such as Sharjah and Dubai could have a link with poor adherence to electrical fault prevention. In contrast, regions such as Europe and North America have lowered their incident rates by introducing stringent regulations for the storage and handling of cargo. “Temperatures in the Middle East can sometimes hit a sweltering 500C in summer months, so its not uncommon for earthing pits to dry up in less than three months,” said Sonjib Banerjee, technical director at Duval Messien. “This increases the risk of warehouse fires, with even a single spark being capable of quickly spreading and causing damage to cargo.” Over 60% of respondents to a recent survey by Duval Messien were unaware that conventional earthing systems could become redundant or ineffective over time. In addition, 80% were unsure when their earthing systems were last checked. “Authorities in Sharjah and Dubai have started to tighten their regulations for warehouse safety in recent years,” continued Banerjee. “This is expected to intensify the inspection process for companies, buildings and work sites to ensure compliance with safety rules, especially for the storage of flammable materials and explosives such as firecrackers, chemicals and gas cylinders.” Banerjee’s comments follow a string of devastating fires in the United Arab Emirates last month, including a major blaze in Sharjah that completely gutted three warehouses and five electric shops. The incident was reportedly caused by an electrical short circuit, while traders - many of whom were uninsured - have estimated that damage costs to their properties could amount to approximately US$7 million.

Only a couple of weeks later, a similar incident occurred at a warehouse belonging to Al Zahrah Carpet Factory in Sharjah Airport International Free Zone, leaving one worker hospitalised with minor injuries. “It was like the whole warehouse burst into flames in a minute,” said Talal al Midfa, administration manager at the free zone. “Thanks to a quick response from Sharjah Civil Defence, the fire was contained within an hour.” A variety of initiatives have been launched in the past year to address mounting concerns about warehouse fires. Earlier this year, Dubai Civil Defence revealed plans to install electronic devices in warehouses to provide an alarm system in case of fire outbreak. Soon afterwards, Sharjah Civil Defence tightened its regulations for warehouse operators in the emirate, which has already proved a success according to director general Waheed Al Serkal. “Almost all companies in Sharjah have now installed fire safety equipment in their warehouses,” he stated. “We have made it mandatory to all newcomers before getting their licence.”

WAREHOUSE FIRES IN THE UNITED ARAB EMIRATES • An investigation has been launched into a warehouse fire at Sharjah Airport International Free Zone on Tuesday 27th October 2009. The storage facility was operated by Al Zahra Furniture and damage amounted to millions of dollars. • A warehouse facility for wooden doors and windows in the Ras Al Khor area of Dubai was partially gutted after a blaze on Thursday 15th October 2009. The fire was under control within 10 minutes and Dubai Civil Defence has started an investigation. • Three warehouses and five electrical shops were completely gutted at a Sharjah industrial estate following a major fire on Monday 12th October 2009, which was reportedly caused by an electrical short circuit.

www.arabiansupplychain.com | NOVEMBER 2009

NEWS UPDATE

NEWS IN BRIEF

CEVA expands with Dubai warehouse Logistics powerhouse hosts a special ceremony to open its new storage centre in Jebel Ali Free Zone South

TCS Express is the latest courier company to introduce the Dubai Metro into its delivery channels in the Middle East. The logistics firm has appointed a dedicated team of couriers to deliver packages and other items using Dubai’s latest mode of transportation. “We hope to capitalise on the metro system by introducing a number of OTCs (on train couriers), who will ensure a faster delivery and support TCS’s effort to reduce its fuel emissions,” said Mazhar Ayub Khan, head of freight and logistics, TCS Express. Empost has revamped its global courier services, with a maximum discount of 50% being introduced for express deliveries to more than 200 destinations around the world. “Since we have started a major expansion of international services, Empost will reward our customers with a substantial rate reduction,” explained Sultan Al Midfa, CEO of Empost. “We are fully focused on emerging stronger after the recent slowdown that has affected every sector, every industry. We believe these new rates will help to boost our relationship with customers.” Thomsun Mercantile and Marine has opened its latest warehouse in Jebel Ali Free Zone, with a built-up area of 19,000m2 and open yard of 30,000m2. The facility has been designed for clients in the retail, electronics, automotive and fast moving consumer goods (FMCG) sectors. “Although the recession has impacted a number of players in the logistics sector, Thomsun Mercantile and Marine has chosen this challenging period to expand and strengthen its operations and position itself as a leading provider of supply chain services,” explained a spokesperson from the company.

8 NOVEMBER 2009 | www.arabiansupplychain.com

(From left to right) Shamsudeen Ahmed and Gianfranco Sgro from CEVA Logistics with EZW’s Salma Hareb and Talal Al Hashemi

CEVA Logistics has continued its Middle East expansion with the launch of a 12,000m2 facility in Jebel Ali Free Zone, which has been designed and built by Gazeley. The facility has been named ‘Pyramid’ and will operate as WAREHOUSE

the headquarters for CEVA Logistics in the Middle East. “We are rapidly expanding our presence in Dubai and expect our facilities in Jebel Ali Free Zone to grow by a further 65,000m2 in the next 12 months, taking our total space in the area to approximately 110,000m2,”

explained Shamsudeen Ahmed, regional director of CEVA Logistics in the Middle East. The company’s Pyramid warehouse has 13 loading bays and will manage products for four key regional customers in the electronics, fashion and industrial sectors.

Aramex milestone for Dubai Logistics City project Aramex has broken ground on its muchawaited warehousing facility at Dubai Logistics City. The US$32.7 million storage complex, which encompasses a built-up area of over 43,000m2, is due for completion in the first quarter of 2011 and will include capacity for more than 40,000 pallet locations, as well as a specialised terminal for express air cargo, sea cargo and land freight shipments. Addition land is also available at the site to increase capacity at a later stage. “This facility is a significant milestone that demonstrates Aramex’s long-term strategy to strengthen our infrastructure in the Middle East and North Africa to capitalise on growing 3PL

demand for outsourced logistics services,” said Fadi Ghandour, founder and CEO of Aramex. “This timely launch will further enhance our ability to deliver cost-effective and reliable logistics solutions for our regional and global

clients, while providing them with greater capacity for their logistics needs,” he added. The ground breaking ceremony was conducted by His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai City of Aviation Corporation.

Sheikh Ahmed is joined by Fadi Ghandour and other officials for the ground breaking

NEWS UDPATE

First Bahrain starts logistics venture

NEWS IN BRIEF

Majaal unveiled as region’s first logistics company to focus on small and medium enterprises (SME) sector First Bahrain has announced the launch of its latest subsidiary, Majaal, which is being marketed as the first logistics company in the Middle East to focus on the small to medium enterprises (SME) market. WAERHOUSE

The venture was unveiled during a special ceremony at the Ritz Carlton Bahrain Hotel last month and will operate from a US$45 million logistics complex at Bahrain Investment Wharf, in close proximity to Shaikh Khalifa Port.

Amin Al Arrayed and Salah Al Wuhaib from First Bahrain at the Majaal launch event

“Majaal will offer secure and cost effective storage solutions, tailored specifically to meet the needs of the small to medium enterprises (SMEs),” said Amin Al Arrayed, general manager of First Bahrain. “This venture is also unique because it offers more than just storage solutions. It incorporates a number of value added features, such as fit-out support, racking installation and a business centre from where customers can receive logistics support and rental options for forklifts and other support vehicles,” he added. First Bahrain is planning to market its Majaal brand across the Middle East, with hopes of expanding the company through franchises in countries such as the United Arab Emirates, Saudi Arabia and Qatar.

Bahrain Logistics Zone (BLZ) has confirmed a growing amount of attention from food distribution companies in the Middle East, with local players Mohamed Ali Zainal Abdulla (Maza) and Chunilal Purushottam & Company being signed as the industrial area’s latest tenants. “The encouraging feedback that we have received from the market has highlighted the potential of Bahrain Logistics Zone as a food distribution hub for the Kingdom and other Middle Eastern countries,” said Hassan Al Majed, director general of General Organisation of Sea Ports (GOP), on behalf of Bahrain Logistics Zone.

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

INTERNATIONAL CERTIFICATE INTERNATIONAL CERTIFICATE IN IN LOGISTICS ANDAND TRANSPORT LOGISTICS TRANSPORT

ing professional body associated with logistics and transport. With

INTERNATIONAL DIPLOMA IN LOGISTICS AND TRANSPORT

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

INTERNATIONAL ADVANCED DIPLOMA IN LOGISTICS AND TRANSPORT

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

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

www.arabiansupplychain.com | NOVEMBER 2009

NEWS UPDATE

NEWS IN BRIEF

GAC reveals Swiss Post partnership Logistics company finalises agreement to bring global document management leader to the Middle East GAC has signed an agreement to bring the core documentation services of Swiss Post Solutions to the Middle East. The partnership, which will operate as GAC Office Solutions, has been designed to combine the commercial skills, customer knowledge and geographical reach of GAC with the document outsourcing capabilities of Swiss Post Solutions. These include mailroom services, document scanning and processing, data capture, archive management, third party supplier management and the recently announced Swiss Post Box and Inca Mail products. “This strategic tie-up with Swiss Post enables us to provide Gulf-based maritime and logistics clientele with valueadded office solutions that can trim cost, enhance productivity and improve information management,” stated Christer 3PL

DHL Express was assigned the challenge of transporting around 300 tonnes of equipment to Abu Dhabi last month for the Formula 1 Grand Prix, which required the use of five Boeing 747s and 35 sea freight containers. “We’re proud to be the official logistics partner of Formula 1 and understood the need for fast, precise and flexible logistics support for this groundbreaking race, which was watched by 5.4 billion people around the world,” said Garry Kemp, managing director of DHL Express in North Africa, Middle East and Turkey. Chapman Freeborn transported 30 portable housing units from Ras Al Khaimah to Kabul last month in support of local relief projects. The charter specialist’s Dubai office arranged five An-124 charters for the US Embassy, each containing six 40ft housing containers. “This project was a challenge and needed a lot of coordination between our Dubai office, our operations team and employees at Ras Al Khaimah airport to ensure a timely delivery,” explained Lloyd D’Souza, cargo specialist at Chapman Freeborn.

Group vice president Christer Sjödoff predicts a bright future for GAC Office Solutions

Sjödoff, group vice president for GAC Solutions. “GAC was attracted to Swiss Post Solutions by its reputation as a provider of international

UASC signs logistics deal with Momentum Momentum Logistics has secured a contract to provide United Arab Shipping Company (UASC) with a range of supply chain 3PL

solutions, including dedicated warehouse space and container maintenance services. The agreement is the latest in a string of contract wins for the

Hala Supply Chain Services has been confirmed as the Middle East distributor of KBR Wireless mobile technology solutions, which are designed for companies in the oil and gas industry. A promotional campaign has already commenced to support the partnership, with the KBR Wireless product range being showcased at this month’s Saudi Arabia Oil & Gas Exhibition and Conference (SAOGE). “This event is perfect for marketing our latest product offering to decision markers from oil and gas firms,” stated Hala Supply Chain Services managing director Husam Al Saleh. Matthew Derrick (Momentum Logistics, right) poses with Waleed Al Dawood (UASC)

10 NOVEMBER 2009 | www.arabiansupplychain.com

document solutions for a portfolio of blue chip companies, such as Zurich Financial Services, Siemens and Microsoft,” he added.

Sharjah-based logistics firm, which was launched by port operator Gulftainer in October 2008, with an investment of one billion dirhams to expand its global operations over the next seven years. “UASC is already a major and active user of our Khorfakkan Container Terminal where, I am pleased to say, we have regularly set records of performance and productivity on their ships,” said Matthew Derrick, general manager of Momentum Logistics. “We very much value that long-term relationship and look forward to exploiting this additional venue of collaboration, with a focus on our core values of transparency, accountability and efficiency.”

NEWS UPDATE

NEWS IN BRIEF

SPAN wraps up Qatar racking project Dubai-based material handling firm hails the successful completion of Al Bayader’s warehouse contract Al Bayader has implemented a pallet racking system from SPAN Group for its recentlylaunched warehouse in Qatar. The company, a regional player in the food packaging industry, has previously worked with SPAN Group for its logistics centres in Dubai, Abu Dhabi, Sharjah and Oman. “Our latest facility in Doha includes 6000m2 of warehouse space, in addition to 1200m2 of factory space and 1500m2 of office and showroom space,” said Nidal Haddad, CEO of Al Bayader. “It has added a new dimension to the business by transforming us into a manufacturing and distribution centre,” he added. Choosing the racking system involved a three-step process, according to Nadim Al Fakih, account manager at SPAN Group. The first was a consultation to review Al MATERIALS HANDLING

A strategic partnership has been signed between the Dubai-based logistics company Transworld and Suzue Corporation from Japan. As part of the agreement, Transworld will represent Suzue’s portfolio of freight forwarding and logistics services in the Middle East, while Suzue will represent Transworld in Asia. “We are proud to announce this partnership with an industry leader such as Suzue and look forward to building our relationship in the coming years,” said Warren Jacob, CEO of Transworld Logistics. Asscom Middle East has launched a storage and repair service for the aviation sector, which will be based at the Airbus logistics complex in Dubai Airport Free Zone. “We are thrilled to establish our base in Dubai, a location that will provide our company with a multitude of unequalled opportunities,” stated Peter Wiggers, managing director of Asscom. “This centre will offer customer support services to both airlines and OEMs in the Middle East, Africa and Southern Asia.” Eships (Emirates Ship Investment Company) has secured a lucrative three-year contract to transport approximately one million tonnes of alumina a year for Abu Dhabi based Emirates Aluminium (Emal). The specialist cargo will be shipped from Australia and unloaded at Jebel Ali Port in Dubai, with plans to shift the base to Abu Dhabi once Khalifa Port and Industrial Zone is operational. “This tender was very competitive, with over 15 shipping companies bidding from around the world,” commented Scott P. Jones, CEO of eShips. “It was an excellent opportunity for Eships to prove the quality of our shipping service to a major industrial customer.”

12 NOVEMBER 2009 | www.arabiansupplychain.com

Nadim Al Fakih from SPAN Group overlooked the racking contract from Al Bayader

Bayader’s requirements, the second was the creation of a CAD design to simulate an efficient racking system, and the third was on-site installation. “We designed the layout of the distribution centre and helped Al Bayader select the best racking for their operations,” explained

Al Fakih. “They wanted a system that was suitable for the storage of various stock keeping units (SKU) and the racking that we supplied is designed to improve stock rotation and provide storage flexibility, providing Al Bayader with new levels of logistics efficiency.”

CHEP expands Middle East service network

Demand for its pallet pooling service has prompted CHEP Middle East to launch new consolidation centres in Bahrain and Oman

CHEP Middle East has opened its first consolidation centres in Bahrain and Oman to capitalise on growing demand for pallet services within the GCC region. The company, which provides a global pallet pooling service, has rapidly developed its clientele MATERIALS HANDLING

in the Middle East, with customers including Proctor & Gamble, Pepsi International and Panda Hypermarkets. “Our unique service has been in high demand, with many clients understanding the benefits of integrating their in flow streams onto CHEP pallets to further reduce costs,” commented Kevin

Smyth, managing director of CHEP Middle East. “With the launch of these consolidation centres in Bahrain and Oman, in addition to our existing network in the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, we can better support clients and their suppliers,” he added.

NEWS UPDATE

Dulsco prepares for market recovery

NEWS IN BRIEF

Senior executive predicts an upswing in demand for manpower services from the regional logistics sector Following a recent lull in demand for manpower services in the Middle East logistics industry, Dulsco HR Solutions has claimed that “the worst is over” and the regional market is heading towards a recovery. The company, which has more than 2000 employees supporting the logistics sector, is now planning to boost its pool of skilled candidates for companies to hire on a monthly, weekly or daily basis. “We strongly believe that the worst is over, at least here in the UAE. We too felt the lull in the global shipping industry, but we are hopeful of a turnaround soon,” commented Surjeet Singh, general manager of logistics, Dulsco HR Solutions. “Besides being a developing economy, the United Arab OPERATIONS

Surjeet Singh from Dulsco HR Solutions is positive about demand for logistics talent

Emirates gets its edge from being the distribution hub for the Middle East and Africa region. Since we cater to the manpower requirements of several logistics companies, in

addition to the local network of shipping ports and airports, we have the internal flexibility to redeploy these personnel on other sites so that our utilisation rate remains high,” he added.

Salma Hareb, chief executive officer of Economic Zones World (EZW) received the ‘Businesswoman of the Year’ at last month’s Women in Leadership Forum for her role in transforming Jebel Ali Free Zone Authority (Jafza) – EZW’s flagship brand – into a global success story. “I would like to thank the Women in Leadership Forum for this award,” commented Hareb while collecting her trophy at the Burj Al Arab hotel. “Our goal has always been constant – to remain the Middle East’s most attractive investment base, while playing a fundamental role in the economic progress of Dubai and the entire nation.”

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www.arabiansupplychain.com | NOVEMBER 2009

NEWS UPDATE

NEWS IN BRIEF

Major plans for Dubai logistics show Exhibitors such as SSI Schaefer have already confirmed their participation for next materials handling event Materials Handling Middle East will return to Dubai on a larger-scale in May 2011, following the show’s success this year, according to organiser Messe Frankfurt. The bi-annual event, which attracted 175 exhibitors from 27 countries in May 2009, once had a monopoly in terms of logistics exhibitions in the Middle East. However, the launch of SITL Dubai and CeMAT Middle East has increased competition within the local market. “It’s really encouraging that this year’s Materials Handling Middle East received such an optimistic response from various sectors in the region,” stated Mahmut Gazi Bilikozen, senior show manager of Messe Frankfurt. “The majority of exhibitors have already confirmed their participation in the next exhibition and many want to increase their space requirements, ascertaining a much larger event in 2011.” EVENT

CeMAT Middle East has received a solid response from international logistics players that are looking to invest in the Middle East, according to organiser Deutsche Messe. The exhibition, which makes its debut in February 2010, will be hosted at Dubai International Convention and Exhibition Centre. “The response from global exhibitors, trade buyers and government agencies has been remarkable, which proves that the market conditions in this region are still very attractive,” stated Angela Schaschen, managing director of Deutsche Messe’s Dubai branch. SSI Schaefer is hosting its latest Automation Congress in the Middle East to provide an update on recent developments in dynamic storage and order-picking systems. The free event will take place at Le Meridian Beach Resort and Spa in Dubai on Wednesday 9th December 2009. “We will look into the benefits of automation in terms of optimising materials handling processes and increasing productivity in order fulfilment operations,” said Geoff Wheatley, director of SSI Schaefer in the Middle East and Africa. Ehrhardt + Partner Solutions (EPS) has hailed its appearance at last month’s GITEX Technology Week a success, with a number of potential customers showing interest in the European company’s warehouse technology solutions. “GITEX provided an opportunity to present our entire product range to companies in Dubai,” commented Ramon Thoms, regional manager of EPS in the Middle East. “The live demonstrations of our warehouse management system, pick-by-voice software and RFID solutions had a particularly strong response from visitors of the exhibition.”

14 NOVEMBER 2009 | www.arabiansupplychain.com

Exhibitors are already expressing nterest in Materials Handling Middle East 2011

SSI Schaefer was amongst the first companies to confirm their participation in Materials Handling Middle East 2011. “There is a proliferation of logistics events in Dubai, which dilutes the required impact,” said Geoff Wheatley, managing director of SSI Schaefer in

the Middle East and Africa. “Moreover, in such economic circumstances, it is extremely difficult to exhibit. Therefore, we are only planning to take part in Materials Handling Middle East in 2011, over other shows that are taking place in the region.”

Logistics experts confirmed for SNS forum A number of experts from the Middle East have been confirmed as keynote speakers for a forthcoming logistics seminar in Lebanon, organised by Supply Network Solutions (SNS). The event - which takes place under the theme ‘Is Your Supply Chain Ready For The Economic Recovery?’ – will include presentations from Walid Daniel (managing director of SPAN Group), Marouane Rihoum (logistics manager of Chalhoub Group) and Sjoerd Koopman (Gulf customer service and distribution manager of Nestlé). Andrew Kinder, director of supply chain solution marketing at INFOR, will also discuss ‘smart business moves’ in a recovering economy. TECHNOLOGY

“The conference has been organised for supply chain and logistics professionals in the Middle East to share strategies, tactics and ideas on equipping their supply chains for a forthcoming upturn in economic conditions,” explained Mario Ghosn, general manager of SNS. “This is a chance for attendees to participate in informal networking and discussions with fellow industry professionals, learn the best practices being applied to enhance supply chains performances and identify investment opportunities that can optimise their operations,” he added. For further information on the event, which is being held at the Bristol hotel in Beirut

on Wednesday 9th December, please email Micheline Daaboul (micheline.daaboul@sns-emea. com).

Mario Ghosn, general manager of SNS

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NEWS UPDATE

ident of CILT Khaja, UAE pres Mohammed Al

David Harris (D ubai Department of Economic Development) and Ni Woodhead (Emi gel rates Aviation College )

CILT breaks record with Dubai logistics seminar Alex Borg, CILT’s regional director

Guest list includes representatives from Agility, Emirates SkyCargo, DHL and Bahrain Polytechnic

recent seminar organised by the Chartered Institute of Logistics and Transport (CILT) has been hailed a success, with over 230 attendees from companies such as Emirates SkyCargo, Agility, DHL Express, Bahrain Polytechnic and Dubai Department of Economic Development (DED). The event, which took place at Emirates Aviation College, was the second networking session held by CILT’s United Arab Emirates branch this year and focused on the latest challenges that are affecting the logistics industry. Speakers included the association’s regional director Alex Borg and section president Mohammed Al Khaja, in addition to Ram Menen, Emirates SkyCargo divisional senior v i c e president, and Nigel Woodhead, programme manager of the Emirates Aviation College MBA in logistics and supply chain management. 16 NOVEMBER 2009 | www.arabiansupplychain.com

“CILT has recently benefited from a restructuring in the United Arab Emirates and with our events, we want to send out a message that we’re back in town, stronger than ever and ready to serve our members and the wider logistics community,” stated Borg. “We actually broke our attendance record with this latest seminar, which attracted more than 230 people from countries such as the United Arab Emirates, Oman, Qatar, Bahrain, Kuwait and Saudi Arabia. Some of our guests even travelled from Sudan and Nigeria,” he added. Following the positive response, CILT has already started to plan a follow-up event, which is scheduled to take place in April 2010. “We will evaluate the feedback from the recent seminar and organise the next event accordingly,” said Borg. “It’s important to sustain this momentum and interact with the industry on relevant topics.”

NEWS UPDATE

230+

delega tes atte nded th recent e CILT log istic semina r in Dub s ai

Robeel Haq (Logistics Middle East) and Ram Menen (Emirates SkyCargo)

from and Brent Ruru Gregory Olsen rkz Wo m fro er sp Vo Agility and Mike

Bhaskar Krishnan and Dirk van Door from DHL

Alexander Borg and Cyril Bleasdale from CILT

www.arabiansupplychain.com | NOVEMBER 2009

ONLINE HIGHLIGHTS

Still hungry for more news?

The online home of:

for regular updates on the Middle East logistics industry WEBSITE STATISTICS

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM Aramex

GAC Logistics CILT (Chartered Institute of Logistics and Transport) CEVA Logistics Dubai Logistics City

Aramex pilots deliveries with Dubai Metro Aramex has expanded its express delivery channels in the Middle East to include the recently-launched Dubai Metro system. The logistics company, which reported a 24% increase in net profits for the first nine months of 2009, believes the Dubai Metro will complement its existing fleet for express consignments, while boosting the efficiency of routes that are currently impacted by traffic congestion in the emirate. “At Aramex, we follow a very flexible operational strategy, enabling us to make optimal use of both internal and external resources to enhance the quality of our services,” said Hussain Hachem, Aramex chief executive officer for the Gulf. “Employing the transport capacity offered by the Dubai Metro also enables us to be more environment-friendly and reduce our carbon footprint by a small amount. We look forward to expanding this channel of express transport over the coming months.” As part of the Dubai Metro-based express channel, more than five Aramex courier representatives will transport express consignments in special trolley bags that comply with Dubai Metro rules for baggage transport, with each courier handling over 70 express shipments.

MOST POPULAR HEADLINES

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over latest assault claims

EDITOR’S CHOICES ONLINE INTERVIEW

SPECIAL REPORT

Standing Strong As Emirates Airline begins its 25th year of operations, chairman Sheikh Ahmed bin Saeed Al Maktoum tells ArabianSupplyChain.com about the challenges of the past year.

Sharjah Freighter Crash Time for the industry to reflect after a Sudanese cargo plane with six people on board crashes near Sharjah International Airport on its way to the city of Khartoum.

SPOT POLL

Will you be attending a logistics exhibition, seminar or conference in the next three months?

56%

Yes, these are educational and excellent for networking

18 NOVEMBER 2009 | www.arabiansupplychain.com

38%

Maybe, it would depend if I found an event suitable enough

No, I am not interested for now

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COVER STORY

G N I K A M Y R T N E AN

ts behind c a f e h t ng Uncoveri ar launch l l o d n o i l l -mi ief the multi s with ch c i t s i g o L of Wared cHale. M n a i r B r of fice executive

20 NOVEMBER 2009 | www.arabiansupplychain.com

COVER STORY

espite the odds, a number comes from an experienced hand. “The of successful companies concept of Wared Logistics was formed have been launched during after a detailed study into the global a global recession. From logistics market, with a particular focus technology giants such on the Middle East and Saudi Arabia, as Microsoft and Hewlett Packard to where companies need a high level television powerhouses such as CNN of expertise and professionalism to and MTV, each venture has succeeded facilitate their business,” McHale states by finding opportunity in a bleak market. with conviction. “Through this research, Even members of the logistics fraternity Zahid and CPC received a snapshot of the region’s potential as a global warehousing can be included in this recession-proof and transportation hub, which in turn elite, with FedEx and Deccan 360 showing highlighted the scope of a venture such how businesses have triumphed in the as Wared Logistics.” face of adversity. Despite its global ambitions, the fact Following this trend, Wared Logistics that Wared Logistics is based in Saudi was launched earlier this year as Saudi Arabia is actually considered Arabia’s latest entrant into a key strength by McHale, the global 3PL sector. With an “We need to who believes the Kingdom is initial capital of US$32 million, educate the emerging as one of the most the newcomer is a 50:50 joint market about promising logistics markets venture between Construction in the world. The company Products Holding Company the benefits has already developed a (CPC) and Zahid Holding off outsourced Group - both well-established supply chains” network of 12 distribution centres in cities such as Jeddah, and respected entities in the Dammam, Medina, Jubail and Kingdom. And whilst a section Qassim, with future plans for two 40,000m2 of the market could question the timing facilities in Riyadh and Jeddah. of this launch, the project’s wheels were “There’s a lot of talk about Saudi Arabia actually set in motion around four or five at the moment, its blossoming,” he admits. years ago, when the Middle East economy “Of course, there are challenges in the form was developing at breakneck speed. of red tape, but that’s actually an advantage Even so, Brian McHale, the recently for Wared Logistics, because our parent appointed CEO of Wared Logistics, is companies are Saudi businesses that have confident about his company’s future and operated in this country for decades and remains adamant that its development employ over 40,000 people in the Gulf. We strategy will continue as planned. Given his track record at the likes of Menlo Worldwide understand the rules and regulations and have access to tremendous shortcuts as a Logistics, Ryder Integrated Logistics and result. At the same time, we need to educate NFI Industries, it seems this judgement

United Transport Corporation (UTC) and Zahid Heanor have been acquired by Wared Logistics in the past year

Wared Logistics owns 12 warehouses in Saudi Arabia

the market about the benefits of outsourcing supply chain operations to a third party. There’s a low uptake in terms of outsourcing at the moment, although the situation has shown signs of change and I’m confident that will continue in the future too, which will be particularly beneficial to organic Saudi companies such as Wared.” Launched as a holding company, Wared Logistics includes four separate entities Wared Express, Wared International, Wared Transport and Wared Distribution - each with a different focus on the wider logistics industry. “We want to provide our solutions to a broad customer base in the Middle East and North Africa (MENA) region, including companies in the construction, industrial, retail and project sectors. Therefore, each of our divisions will cater to a different segment of the market,” continues McHale. “For example, Wared International is based in London and provides global trade management services, such as forwarding and customs brokerage, while Wared Express is based in Saudi Arabia and provides less-than-truckload (LTL) and express transport services.” The latter was actually established following the acquisition of United Transport Corporation (UTC), which was previously owned by Wared’s parent company CPC. In a similar fashion, the Wared Transport division was created through the acquisition of Zahid Heanor, a specialist heavy-lift transportation company that was operated by Zahid Holding Group, the second parent company. These acquisitions have provided Wared Logistics with a solid foundation to kickstart its operations, including around 1000 employees, a fleet of 500 heavy, medium www.arabiansupplychain.com | NOVEMBER 2009

COVER STORY

Wared Transport has been awarded contracts from Premco, Bahra Steel and United Arab Aluminium Company

services for general commodities and se temperature controlled products. te The company recently announced a partnership to construct and manage p refrigerated warehouses throughout the r MENA region with Preferred Freezer M Services (PFS). “PFS is a global provider of col cold storage warehouses and has the best designs and light trucks, and a customer base of desig and state-of-the-art systems in the market, which can be perfectly combined 85-95 companies from the construction, with Wared’s requisite support services, fast moving consumer goods (FMCG) and food distribution sectors. In addition, Wared such as temperature controlled storage, transport and importation,” says McHale. Transport was able to capitalise on Zahid Construction plans have already been Heanor’s existing base in Syria, which has completed for the initial facilities, with the been developed to create a service portfolio first warehouse being earmarked within the of container drayage, full truckload and Wared Logistics hub in Cairo, Egypt, while specialist heavy-lift transport. the second will be situated in close Despite its infancy, the acquisition proximity to Jeddah Islamic Port in Saudi strategy has already received a strong Arabia. A third is expected to follow in Abu response, with further contracts being Dhabi and there are long-term plans for nine awarded by Premco, United Arab additional centres throughout the MENA Aluminium Company and Bahra Steel region. Further acquisitions will also be Company in recent months. “These considered to encourage the company’s customer-wins have proved that this region future growth in the MENA region. “We needs a professional organisation that want to expand in Saudi Arabia, UAE and knows how to move heavy and oversized other Middle Eastern countries, followed loads,” states McHale. “That professional by North Africa. The expansion plan organisation is Wared Transport and to includes, in the short term, the opening of accommodate current and future customer branches in Abu Dhabi, Lebanon, Jordan requirements, we are supplementing our and Algeria. The mid-term goal is to Syria fleet with 20 new tractors and 30 expand across the Arab countries to the new trailers. Each tractor is equipped far west, to South Africa, and eastward to with the Telargo system for tracking and Asia,“ he concludes. “We’re driver communications, while looking at acquiring a small the trailers include low and extended flatbeds of 18, 24 “We’re looking transport company in the UAE and although we’re and 26 metres.” at acquiring a towards organic Another of the new divisions small transport leaning growth rather than to hit the ground running is ompany in company acquisitions, if the right Wared Distribution, which the UAE” opportunity came along, we provides contract warehousing will certainly pursue it.” and inventory management 22 NOVEMBER 2009 | www.arabiansupplychain.com

COMPANY PROFILE Company: Wared Logistics CEO: Brian McHale Parent Companies: Construction Products Holding Company (CPC) and Zahid Holding Group Subsidiaries: Wared Express, Wared International, Wared Transport and Wared Distribution Initial Capital: US$32 million Employees: 1000 people Fleet: 500 heavy, medium and light trucks (plans to expand with 20 new tractors and 30 new trailers) Acquisitions: United Transport Corporation (UTC) and Zahid Heanor Warehouse Network: 12 facilities in Saudi Arabia, in addition to warehouses in Syria, Egypt, Lebanon and the United Arab Emirates

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MIDDLE EAST AIRFREIGHT 2009

SECTOR REPORT:

MIDDLE EAST

AIRFREIGHT 2009 Showcasing the continued resilience of the airfreight sector in the Middle East.

24 NOVEMBER 2009 | www.arabiansupplychain.com

MIDDLE EAST AIRFREIGHT 2009

ucking an international slowdown in airfreight volumes, the t Middle East has remained remai a solid performer for the aviation industry in recent months month and provided a welcome solace in the w wake of a global recession. According to st statistics from the International Air Transpo Transport Association (IATA), a 6.3% increase was w registered in the region’s 2008 freight tonne tonn kilometres (FTK) – the industry’s standard measurement for established freight traffic. In comparison, compari markets such as Asia Pacifi Pac c, Europe and North America registered a staggered decline of 6.6%, 2.8% and 1.9% respectively. Several regional and global glo operators have contributed to this rresilient growth in the Middle East, including includin market-leader Emirates SkyCargo, which transported 1.4 million tonnes of cargo in 2008, marking to the an increase of 9.8% compared comp previous year. Its revenue also climbed by 14.8% to US$2.1 billion, a contribution of approximately 19% to the total revenue of Emirates airline. airlines also played an Dedicated cargo airline iinfl fluential ti l role l in i the th market’s growth, with Abu Dhabi-based Maximus Air Cargo registering a recent 134% increase in revenue, making a staggering $110.8 million in 2008. However, despite these impressive results, the global sector will continue to experience a series of challenges in the coming years, according to IATA, and the Middle East will need to join hands with its counterparts around the world to kickstart a recovery from the downturn. “We must look for opportunities that will build our future with a more efficient industry, focused on meeting customer needs,” comments

Giovanni Bisignani, IATA’s director general, believes recent infrastructure investments will benefit the Middle East

Giovanni Bisignani, CEO and director general of IATA. “Customers want a good price and a great product, delivered with speed and reliability via the supply chain. And in crisis, customers will only get more demanding. To meet their expectations and build a solid future for the industry, change is required.” Fortunately, embracing change has always been a favourite pastime of the Middle East and a number of ambitious developments are taking place to revolutionise the local airfreight sector. At the forefront of these plans is the Dubai World Central project, which is currently being constructed in the United Arab Emirates and includes the mammoth Al Maktoum International Airport – reported to be the biggest aviation hub in the world, with a capacity for 12 million

tonnes of cargo and 160 million passengers a year. The construction of 16 cargo terminals has already been completed and the airport is scheduled to commence its first phase of operations in June 2010. Countries such as Saudi Arabia, Oman, Bahrain and Kuwait have also invested billions of dollars for the development of their airport infrastructure, with the bulk of projects coming on line within the next five years. “The Middle East region is one of the most dynamic aviation markets in the entire world,” reasons Bisignani. “Gulf countries also have a significant advantage with their modern, efficient fleet and world-class airport infrastructure, which should continue to serve them well in the coming years,” he concludes.

DUBAI, AE

CHAMPION’S LEAGUE: HOW MUCH CARGO HAVE MIDDLE EAST AIRPORTS HANDLED DURING THE FIRST HALF OF 2009?

SHARJAH, AE

ABU DHABI, AE

BAHRAIN, BH

AMMAN, JO

BEIRUT, LB

MUSCAT, OM

FUJAIRAH, AE

KUWAIT, KW

AL AIN, AE

TONNES

www.arabiansupplychain.com | NOVEMBER 2009

MIDDLE EAST AIRFREIGHT 2009

T S A E E MIDDL HT

G I E R F AIR 009 2

f rofiles o p d n a ws he Intervie players from t leading onal market regi

PRADEEP KUMAR, SENIOR VICE PRESIDENT CARGO, REVENUE OPTIMISATION, EMIRATES How much importance does Emirates place on its airfreight operations? Cargo revenue contributed 19% to the airline’s total transport revenue, which is one of the highest of any airline with a similar fleet makeup. In the 200809 financial years, Emirates SkyCargo carried 1.4 million tonnes of cargo, an improvement of 9.8%, which helped revenue to reach US$2.1 billion.

How strong in the airfreight market in the Middle East at the moment? The Middle East economies have remained quite buoyant during the global recession, thanks to the sustained high oil prices of 2007/08. We have increased our regional frequencies this year to cope with demand.

What are your future predictions for the Middle East airfreight market? The worst seems to be over and 2010 results should be positive on 2009. There is currently sufficient demand in relation to the capacity deployed in the region. Emirates SkyCargo’s volumes are holding up and if stability continues through the last two quarters of this financial year, we are on track to exceed last year’s figure. 26 NOVEMBER 2009 | www.arabiansupplychain.com

PROFILE: SAU SAUDI ARABIAN CARGO AIRLINES CAR Saudi Arabian Ai Airlines privatised its cargo operations earlier earlie this year and, now an independent en entity, the division has been renamed Saudi Airlines Cargo Company. With three hub hubs in Riyadh, Jeddah and Dammam, the company operates a fleet of MD-11 and 747 freighters to various destinations iin Asia, Africa, Europe and the Unite United States. It will also continue to use capacity on the scheduled passenger flights of Saudi Arabian Airlines. “Our strategy iincludes expanding the network regionall regionally and globally, exploring new markets, along alo with restructuring and developing our IT systems,” comments Fahad Hammad, chief executive officer of Saudi Airlines Cargo Company. Over the past five years, Saudi Arabian Airlines has expe experienced 5% average growth in airfreight airfreig volumes and its revenues exceeded exceede US$560 million in 2008 H d believes the privatisation 2008. Hammad

could lead to a series of new commercial alliances with other players in the market. “We are confident that Saudi Airlines Cargo Company will continue to increase its freight volumes, maintain its leading role in air cargo with the Middle East and overcome the many challenges that have been presented by current global economic uncertainties,” he concludes.

PROFILE: MAXIMUS AIR CARGO Established in 2005, Maximus Air Cargo has emerged as one of the biggest success stories in the Middle East airfreight sector. As part of Abu Dhabi Aviation Group, the company has a specialist focus on outsized cargo and wet leasing aircraft, with a varied fleet of eight aircraft. It’s nickname as the ‘heavy-lifter of the airfreight world’ came after Maximus more than doubled its turnover during 2008 – reaching US$110.8 million compared to $47.3 million the year before. The airline is now on target to hit sales of $130 million in 2009, according to president and chief executive Fathi Hilal Buhazza. “We achieved exceptional growth during 2008 and the upward trend has been even steeper in 2009 as we secured additional short and medium term aircraft wetlease contracts,” he explains. “Our market share is growing consistently – from government and commercial customers – partly due to increased capacity, but mainly because of providing responsive, practical and cost effective solutions that combine a personal approach with innovative service.” As a guest speaker at the recent Freighters’ World Conference in Spain, Buhazza highlighted the company’s success and told delegates that the Middle East would be amongst the first regions to recover from the global slowdown due to its multitude of natural advantages.

“This region has clear benefits over others to reach European, Asian and African markets. Added to this, we also expect freight traffic to triple over the next twenty years. All these advantages, combined with a sound business model, mean that Maximus Air Cargo is confident and optimistic,” he concludes. “In just four years we have achieved so much, and despite the continued global downturn, the future looks bright.”

MIDDLE EAST AIRFREIGHT 2009

PROFILE: OMAN AIR CARGO Despite being a veteran in the aviation industry, Oman Air is experiencing a period of massive transformation, with a significant amount of investment being pumped into its cargo division, which is operated by Oman Aviation Services from the company’s headquarters in Seeb International Airport. “We aim to provide a high standard of service in terms of cargo, combining our expertise in airfreight management with state-of-the-art equipment and facilities, including an automated cargo handling system,” explains Sami Abu El-Fetouh, manager, Oman Air Cargo. “We can offer everything from 24-hour operations for the import and export of cargo, specialised storage facilities for dangerous and hazardous cargo, in addition to products requiring cold storage or freezer storage. We also offer high level security, including an x-raying process under the strict supervision of Royal Oman Police Airport Security.” At present, Oman Air offers a number of flights to regional destinations, covering the United Arab Emirates, Qatar, Lebanon, Jordan, Kuwait and Egypt. Outside of the Middle East, it has established the Indian

PROFILE: MIDEX AIRLINES

subcontinent as a major market, with regular flights to Mumbai, Chennai, Trivandrum, Madras, Hyderabad, Delhi and Cochin. “The subcontinent is very important for Oman Air, in terms of both passengers and airfreight. We’ve already established considerable operations in India and the country’s cargo market is really flourishing at the moment. As a result, we have introduced a number of subcontinent routes, such as Chittagong in Bangladesh and Jaipur in India.”

Marketed as the first cargo-exclusive airline in the United Arab Emirates, Midex started operations in 2008, with cargo destinations such as India, Bangladesh, Turkey, Lebanon and France. Even with a global recession, the company’s director general Jassim Al Bastaki says operations have continued to develop at a record pace and there are plans to further increase its aircraft fleet and cargo handling facilities at Al Ain International Airport, as well as introduce new locations into its global network. “Airfreight firms working in the UAE are still maintaining strong levels of growth, and the global airfreight sector will be among the first industries to recover once the world economy takes a turn for the better,” he says.

www.arabiansupplychain.com | NOVEMBER 2009

MIDDLE EAST AIRFREIGHT 2009

QATAR AIRWAYS CARGO As one of the fastest growing airlines in the world, Qatar Airways has invested a considerable amount of money to develop its cargo operations. The Dohabased airline is currently delivering to 87 destinations around the world using its Airbus A300-600 freighters, in addition to a fleet of 68 passenger aircraft. However, with major plans for expansion, it predicts an increase to 110 aircraft and 120 destinations in the next four years. Investments are also being ploughed into technology upgrades and Qatar Airways recently became a regional associate member of IATA’s Cargo 2000 programme. “Our goal is to increase the efficiency and quality of service provided to the airline’s customers with proven and agreed processes,” comments Akbar Al Baker, CEO of Qatar Airways.

INTERVIEW: INGO ROESSLER, VICE PRESIDENT CARGO, ROYAL JORDANIAN AIRLINES How important is the airfreight side of business to Royal Jordanian?

Major exports from Jordan are vegetables and pharmaceuticals. Otherwise we move everything from automobiles to zoo animals.

What makes your airfreight operations different from competitors in the region? RJ has traditionally been a technology leader in the Levant area. Therefore we introduced 28 NOVEMBER 2009 | www.arabiansupplychain.com

Etihad Crystal Cargo experienced an increase in our cargo volumes during the first six months of 2009, when we transported 130,000 shipments, with a volume of more than 100,000 tonnes.

Despite the challenges of the economic downturn, we have continued to expand our fleet and increase our connectivity around the world, which will support the growth of our cargo operations. Our product range has steadily expanded too, with the recent launch of Xpress2D, an express to door delivery service to Europe and North America.

In general, how strong in the airfreight market in the Middle East at the moment?

What types of shipments are normally transported by Royal Jordanian Cargo?

How has Etihad Crystal Cargo fared during the recent economic crisis?

What forecasts have been made for Etihad’s cargo operations in 2010?

Cargo is certainly an important factor to improve the profitability of our passenger flights, while cargo charters help us to leverage the freighter operation. RJ Cargo’s handling facility is the main gateway for the majority of airfreight movements coming to Jordan and we will keep investing in providing world-class services like e-freight.

The regional markets are relatively resilient. However, we do not see similar growth rates like in previous years. Iraq remains the exception, where the efforts to re-build the country have triggered significant demand for both charters and scheduled services. RJ has been the network leader to Iraq for many years, operating scheduled flights to Baghdad, Basra, Erbil and Suleymania. Other destinations are also under study.

INTERVIEW: DES VERTANNES, EXECUTIVE VICE PRESIDENT CARGO, ETIHAD AIRWAYS

How large is Etihad’s aircraft fleet?

a best-in-class cargo information system supplied by CHAMP Cargo Systems this year. We are also working closely with IATA to join the e-freight initiative in Jordan by early 2011. The technical infrastructure is available with forwarders and RJ, however, some legislative issues are holding us back to become “early adopters” in 2010.

What are your future predictions for the Middle East airfreight market? The Middle East will certainly remain a buoyant market and achieve growth rates that are above world-average. A strong recovery of the sizeable economy in Iraq will be a major boost to this, as well as further liberalisation in the region.

Currently Etihad Airways operates 18 wide-bodied aircraft, including a number of brand new Boeing 777-300ER, Airbus A330-200 and Airbus A340-500, all of which carry cargo in the bellyhold of the aircraft. In addition Etihad Crystal Cargo operates one MD11, which can transport a maximum of 88 tonnes, and two Airbus A300-600s with a payload of 42 tonnes.

Which routes are currently being covered by Etihad Crystal Cargo? Etihad Airways serves more than 40 destinations around the world. Additional cargo destinations and global charter flights are served by a growing fleet of regional freighter aircraft. Currently, allcargo-services are provided to Chennai, Frankfurt, Khartoum, Kolkata, Milan, Mumbai, New Delhi and Zheng Zhou.

PETROCHEMICAL LOGISTICS

CHEMICAL REACTION Exploring the hidden potential of petrochemical logistics in the Middle East region. ith growing saturation in the Middle East logistics industry, a number of service providers have experienced success by venturing into niche segments of the market. Whether its Kuehne + Nagel with hospitality logistics, Freights Systems with artwork logistics or GAC with event logistics - each player has reported a favourable response to their specialist solutions. Following this trend, the petrochemical sector has been

highlighted by Booz and Company as a future ‘cash cow’ for logistics companies in the region, especially with a recovery from the global recession in sight. According to the research firm - which published its ‘Not Too Late Finding Opportunities in Middle East Logistics’ report in June 2009 - a number of recent indicators have supported the growth forecast for petrochemical logistics, including a multibillion dollar spend on downstream developments in Saudi Arabia, Qatar and the United Arab Emirates. “The aspiration of oil-rich countries to develop their

US$50 MILLION

investment by Octal Petrochemicals to develop a liquid chemicals terminal in the port of Salalah

30 NOVEMBER 2009 | www.arabiansupplychain.com

PETROCHEMICAL LOGISTICS

downstream industries will drive a huge amount of investment into refinery capacity and petrochemical plants in the Middle East,” states Fadi Majdalani, partner at Booz and Company. “Additionally, the products must be transported to major consumption markets around the world, such as Asia, Europe and the United States, which means that logistics companies with global distribution networks and expertise in the handling of petrochemical products will be best-served for this attractive market.” It seems the global recession has fuelled a migration process towards outsourced supply chains for the petrochemical sector, with companies under pressure to increase their efficiencies while reducing their operating costs. Oman-based Octal Petrochemicals, which is investing US$50 million to develop a liquid chemicals terminal in the port of Salalah, is amongst

According to Freiji, the industry leaders that have “Petrochemical communication is essential championed the concept of in developing an efficient third party logistics (3PL). producers have partnership between the However, its logistics manager logistics concerns petrochemical and logistics George Freiji believes that the cause losses are because industries. This point has long-term benefits will only be ge if products are huge already been taken into realised when 3PL firms are not delivered” consideration by the Gulf better-integrated with their Petrochemical & Chemicals petrochemical clients. Association (GPCA), which “Petrochemical producers has established a supply chain committee are very concerned about their logistics with 13 members from both sides of the operations as the losses in terms of failed table, including Al Majdouie de Rijke product delivery are potentially huge,” he Logistics, SABIC, Vopak, Reliance Industries stresses. “We are competing with local and United Arab Shipping Company companies in the US or Europe and must (UASC). The group hosted its first annual provide a consistent service. To achieve this, forum in Bahrain last month, under the it’s important to have a strong relationship theme “Current Trends and Preparing with our logistics partners and integrate for Future Growth”, with issues such as the various business processes with them, transportation safety, logistics outsourcing covering everything from storage and and infrastructure restrictions being placed transportation to final delivery.” under the spotlight by over 200 delegates. “This committee has been established to fuel the improvement of supply chain operations for chemical and petrochemical companies in the GCC,” explains Dr Abdulaziz S. Al-Bati, chairman of GPCA supply chain committee. “Compiling, sharing and exchanging resources, knowledge, opinions and experience is on top of a development plan that the committee has prepared for 2010 onwards. We welcome membership

www.arabiansupplychain.com | NOVEMBER 2009

PETROCHEMICAL LOGISTICS

from different elements of the supply chain to serve members with a variety of data, technical assistance and resources in support of the regional petrochemical and chemical supply chain.” Another member of the GPCA supply chain committee is Damco (formerly Maersk Logistics), which emerged as one of the first players to concentrate on petrochemical logistics in the Middle East. The company hit a milestone earlier this year after concluding a research study with Abu Dhabi Basic Industries Corporation (ADBIC) to explore the feasibility of providing tenants at Abu Dhabi Polymers Park with supply chain services to reduce their inventory levels, lead-times, visibility and operating costs. “The logistics industry is currently suffering from an overall slowdown, which is prevalent in the Middle East and throughout the world. However, in the longterm, there is a great deal of potential in the petrochemical sector,” states Justyna Janik, project manager at Damco. “We understand that petrochemical producers have traditionally insourced their logistics in the Middle East, which means the operational processes tend to be customised to the requirements of plants and factories. As a result, the process of outsourcing requires tailored solutions and adequate change management. Damco is providing this through our consultancy capabilities, which includes concept studies, feasibilities studies and project management

The petrochemical sector has proved attractive for the likes of Damco, Momentum Logistics and Swift Freight

consultancy (PMC) to ensure the transition fulfils the operational requirements.” Of course, Damco is not alone with its plans to conquer the market for petrochemical logistics. In the past year alone, TALKE Logistics has commissioned a petrochemical logistics centre in Saudi Arabia, Swift Freight has launched 3PL services for petrochemical firms in partnership with Hexomatrixx, and Agility has secured a five-year contract to handle the regional land distribution operations for Equate Petrochemical Company. A relative newcomer to the list, Momentum Logistics is also planning a major push into the market over the coming years. “One of the key issues for petrochemical companies is the importance of observing and maintaining the highest

health and safety standards, as the majority of petrochemical products are flammable and represent big risks for personnel,” says Matthew Derrick, general manager of Momentum Logistics, whose parent company Gulftainer recently secured a contract to provide on-site logistics services at Borouge’s polyolefin plant in Abu Dhabi. “However, on the whole, petrochemical logistics is much the same as the logistics of companies in other industries, with a focus on supply chain management, storage and transportation of products and freight forwarding. The main aim, as always, is to provide the best possible service at the best possible price, and our logistics solutions can make a big difference in a company’s operational expenditure.”

CASE STUDY Polymers Park, which would offer services that are tailored to the requirements of tenants, such as polymer storage and handling, finished goods storage, distribution and freight forwarding.

Justyna Janik Janik, project manager at Damco, Damco explains why the company partnered with Abu Dhabi Basic Industries Corporation (ADBIC) to research opportunities in the petrochemical logistics sector. Can you provide details on the recent study conducted by Damco and ADBIC? The research explored the feasibility to opening a logistics centre at Abu Dhabi

32 NOVEMBER 2009 | www.arabiansupplychain.com

W What benefits are expected for tenants? TThe tenants would benefit from lower overall logistics costs, as well as lean and sophisticated supply chains, resulting in higher service levels. Our study showed this would translate into a competitive advantage, enabling the tenants to service international markets and compete with longer-established global players. What is the cost saving to customers? The end-cost to tenants will depend on the service, volume and scope, but a net saving of 12% is expected on total logistics spend, as compared to current market levels.

What are the main challenges that you faced whilst evaluating the study? The key challenge was forecasting the future volume and product mix of the polymer park. Early mover tenants established the basis for the study. However, there are still unconfirmed tenants for which volume and product forecasts were used. What specialist services or skills will the petrochemical sector demand? Apart from bulk handling requirements, not much. Petrochemical producers in this region have traditionally in-sourced logistics, which means the operational processes tend to be customised to the requirements of the plants and factories. The process of outsourcing will therefore requires tailored solutions and adequate change management.

ON COURSE FOR A BIG FUTURE. Port of Sohar is moving full speed ahead and is already the world’s largest port development. Positioned just outside the Strait of Hormuz and offering easy access to all the world’s shipping lanes, it offers three terminals operated by world leaders. A cargo and dry bulk terminal operated by C.Steinweg, a liquid bulk terminal operated by Oiltanking Odfjell, and Oman International Container Terminal (OICT) operated by Hutchison Port Holdings. With an infrastructure expanding at a rate of knots, Port of Sohar is now ﬁrmly on the map as the destination of

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SHOW REPORT: SITL DUBAI 2009

SITL DUBAI 2009

Following its success in other parts of the world, SITL made its much-awaited debut in the Middle East this month. So did the exhibition and conference meet expectations from the logistics industry?

rom its humble beginnings as a trade exhibition for the European logistics industry, SITL has emerged as a global phenomenon, with associated shows being held in Asia, Central America and most recently, the Middle East. Following its debut in Dubai earlier this month, SITL has been hailed a grand success by organiser Reed Exhibitions, with participation from around 5000 visitors and 80 exhibitors in total, including the likes of Al-Futtaim Logistics, DP World, Agility and Jebel Ali Free Zone Authority (Jafza). “With a history spanning over 25 years in Europe, SITL is recognised as a leading international show for the logistics sector,” comments Mohamad Bader-Eddin, show director of SITL Dubai. “Therefore, when the Dubai government expressed its interest in launching a global exhibition for transport and logistics in the emirate, we were selected from a list of several big companies to manage the project.” Under the patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, 34 NOVEMBER 2009 | www.arabiansupplychain.com

the exhibition was extended over 7700m2 at Dubai International Convention and Exhibition Centre, split into four sections: transport and logistics services, logistics infrastructure, logistics real estate, and logistics systems and technology. In addition, an extensive range of conferences and related events were included in the programme, including a global shippers forum, business and investment forum, and hosted buyer programme, which brought together numerous global decision markers from the transport and logistics sector. “With a growing number of logistics events taking place in the Middle East, it was essential to create a unique proposition for the industry,” continues Bader-Eddin. “A lot of effort went into the programme and I can confidently state that SITL was not your average show. We utilised our rich heritage from other parts of the world to produce a complete package for visitors, whether it was the exhibition or conference.” SITL Dubai targeted an audience that was broadly similar to events such as Materials

Handling Middle East, CeMAT Middle East and International Freight Week, which could have been a reason for concern, with the latter being cancelled by organiser IIR Middle East earlier this year following a limited response from the market. However, Bader-Eddin has always been confident that the timing was perfect for SITL to make its foray into the region and develop a long-term position in the local market. “Logistics has played an essential role in the Middle East’s economic growth and its importance has been growing on a steady basis throughout the region. Starting with the United Arab Emirates and more recently with countries such as Saudi Arabia, Bahrain and Jordan, it’s amazing to look at the developments that are taking place,” he states. “Could people really afford not to be part of this revolution? It’s the industry’s time right now, and everyone needs to prepare themselves for what’s coming next. Hopefully, visitors and exhibitors found that SITL Dubai was a perfect launch pad to showcase their ambitions.”

SHOW REPORT: SITL DUBAI 2009

EVENT HIGHLIGHT

SITL Exhibit or Profile

MODERN FREIGHT COMPANY (MFC) A veteran in the Middle East logistics industry, Modern Freight Company (MFC) exhibited at SITL Dubai to showcase its portfolio of warehousing and transportation services, with a focus on increasing its brand presence in the region. “We’ve noticed a lot of international logistics companies have taken part in SITL Dubai this year and it’s a pleasant feeling to be amongst

an elite group of homegrown exhibitors,” says aleh, Ali Mohammed Saleh, eting manager of MFC. analyst and marketing e for over 30 years and “We’ve been here understand the local market. Even when times are down for the industry, we are showcasing our resilience by exhibiting at these types of events.”

A senior delegation from the Port of Sohar took part in SITL Dubai to highlight the latest developments at Oman’s bustling shipping hub, which has continued to report an increase in shipping volumes, even despite the global recession. “We’ve established ourselves as a world-class centre for maritime activities, supported supp by a developing free zone, so its time to spread the e word,” explains Edwin Lamme Lammers, executive comme commercial manager, Port of Sohar. “We have a number n of advantag advantages over other free zones in the Middle East, such as a our location and the compet competitive terms that we can provide companies. The response has been be really iti ffrom visitors i it positive of SITL Dubai and we look forward to building relationships with the contacts that were made.”

SITL Exhibit or Profile

PORT OF SOHAR

BOAR BOARD RD NAMED FOR DUBAI LOGISTICS CORRIDOR LOGI Senio representatives from Economic Senior Zones World (EZW) and Dubai Aviation City C Corporation (DACC) appeared at SITL Dubai to announce a committee that would w overlook their proposed Duba Dubai Logistics Corridor initiative, with mem members including His Highness Sheikh Ahme Ahmed Bin Saeed Al Maktoum (chairman of DA DACC), His Excellency Sultan Ahmed Bin Sulayem S (chairman of EZW’s parent comp company Dubai World), Salma Hareb (CEO of EZW) and Rashed Buqara’a (COO of DACC). “Today we have covered an important milestone in developing the Dubai Logistics Corridor,” says Bin Sulayem. “With the proven capability of its members, the board will provide the right momentum for the whole process.”

EVENT HIGHLIGHT

GLOBAL SHIPPERS FORUM Reed Exhibitions hosted its first Global Shippers Forum as a central component in the SITL Dubai conference programme. Various topics were addressed, under the common theme of ‘Finding Local Options for Global Freight Solutions’, with speakers including Dick van den Broek Humphreij (European Shippers Council), Ram Menon (Emirates SkyCargo), Dirk Van Den Bosch (DP World) and Antony Bennan (Danzas).

www.arabiansupplychain.com | NOVEMBER 2009

SHOW REPORT: SITL DUBAI 2009

SITL Exhibit or Profile

EVENT HIGHLIGHT HOSTED BUYER PROGRAMME Reed Exhibitions supported its inaugural SITL Dubai event with a hosted buyer programme, which served as a platform for exhibitors to conduct their business transactions with potential buyers from around the world. To qualify for the programme, companies such as shippers and freight forwarders had to meet a range of criteria, including an existing record of business operations in the Middle East or concrete plans to invest in the region. Once registered, they received a generous string on benefits, such as flights to and from Dubai with five-star accommodation and a dedicated facility for scheduled appointments with pre-matched exhibitors. A visitor relations manager was also appointed to ensure the programme was conducted in a smooth and effective manner. “The hosted buyer programme provided an opportunity for direct interaction between buyers and exhibitors in the logistics industry” says Mohamad Bader-Eddin, show director of SITL Dubai.

LOGFRET Logfret was amongst a number of exhibitors to make announcements at SITL Dubai, with news that the company had been contracted to provide a range of logistics support to the Al Sufouh Transit System Tranway project, better known as Dubai Tram. The large-scale project, which is expected to commence operations in 2011, will include 11 tramways, a 10km track and 13 stations during its first phase. “We’re very proud

to make this major announcement at SITL Dubai,” explains Bahaa Hage, marketing and communication manager of Logfret. “We were awarded the contract by Besix, one of the main contractors of the project, for the transportation of the tramway viaduct segments from the pre-cast yard near Dubai Outlet Mall to the viaduct erection sites along the Dubai Marina, all adjacent to Sheikh Zayed Road.”

SITL or Exhibit Profile

WARED LOGISTICS Wared Logistics, a joint venture set up last year between Zahid Holding Group and Construction Products Holding Company (CPHC), appeared at SITL Dubai to promote its recent launch of supply chain and transportation operations in the Middle East and North Africa region. “Wared provides the ultimate logistical solutions to serve its customers in the Middle East and North Africa region,” states Brian McHale, CEO of Wared Logistics. “With our team flying from Saudi Arabia to Dubai especially for SITL Dubai, it was a great opportunity to meet with potential customers and others from the industry. We received a number of promising leads as a result.” 36 NOVEMBER 2009 | www.arabiansupplychain.com

AGILITY Despite a downturn in the global economy, Agility has continued to develop its presence around the world, including its home market in the Middle East. As a result, SITL Dubai 2009 was deemed a perfect opportunity to showcase its achievements and allowed senior representatives from the firm to network with colleagues from the logistics sector and discuss opportunities for the future. “This has been a turbulent year across global industries, and the transport and logistics sector has not

,” says Elias Monem, been immune,” CEO of Agility in the Middle East and fore, when an exhibition Africa. “Therefore, as prestigious as SITL hosts its inaugural exhibition in Dubai, we took the decision to showcase ourselves to the regional and international public. Furthermore, we wanted to show how the Agility team has differentiated our services and product offerings in this region, while positioning the company to best serve the logistics requirements of customers across the Middle East and Africa.”

SHOW REPORT: SITL DUBAI 2009

INTERVIEW WITH TOM NAUWELAERTS, AL-FUTTAIM LOGISTICS What is Al-Futtaim Logistics? The company was established in the 1980s and has become a regional provider of world-class supply chain solutions, such as warehousing, transportation, distribution, customs clearance and after-sales logistics. Although we’re based in Dubai, we have a truly global reach, which has been achieved through strategic alliances with partners across the world.

Which markets are specifically targeted by the company? Our logistics services are applied in a variety of sectors, such as automotive, retail, fast moving consumer goods (FMCG), electronics, construction, humanitarian aid and hospitality.

What prompted your decision to exhibit at SITL Dubai 2009? This was a great opportunity to promote our services and expand our market share in the transport and logistics industry. In addition to meeting with prospective clients and generating new leads, we also networked with others

from the industry and discussed topics that are prevalent in the Middle East.

What were the objectives of your participation in this event? Al-Futtaim Logistics wanted to highlight its services through a variety of posters, visuals and a continuous video presentation, while our company brochure was also available onsite for customers that were looking for further information on our service portfolio. In addition, two semi-enclosed and comfortable meeting rooms were available, where specialists from AlFuttaim Logistics met with visitors to discuss their requirements.

Why do you feel an event like SITL Dubai 2009 was important to the Middle East logistics industry? SITL not only provided a great opportunity to promote our services and meet new clients, but it also provided information about the latest trends in the logistics market, enabling companies to evaluate the industry and strengthen their market position.

DP WORLD

A prominent force in the Middle East logistics industry, DP World rs at was amongst the largest exhibitors SITL Dubai 2009. “As the leadingg port and l d terminal operator in the region, we were glad to support a forum such as SITL Dubai,” comments Zahir Asger, marketing executive at DP World’s commercial department. “This platform brought shippers together with supply chain managers, while offering an ideal opportunity to showcase our core and ancillary services. Additionally, we were keen to promote Jebel Ali as a hub and encourage shippers to take advantage of the project’s efficiencies and expanding infrastructure.”

DB SCHENKER

SITL or Exhibit w Intervie

SITL Exhib ito Profi r le

As a global player in the logistics industry, DB Schenker has developed a long-standing relationship with SITL from other parts of the world. As a result, thee company was amongst the first to confirm its participation in the Dubai show. “Since this was the first time that SITL took place in the Middle East and the fact that DB Schenker’s regional office was established in 2007, it made sense to showcase our capabilities in this important market,” explains Sandeep Sahae, general manager of sales and marketing at Schenker LLC. “We focused on our core capabilities in ocean freight and airfreight, both globally and in the Middle East. In addition, this event provided an opportunity to network with others in the industry and we enjoyed the process of meeting with present and future clients.”

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TOP 10 FORKLIFT TRUCKS Logistics Middle Eastt scours the material handling market to profile ten of the latest forklift trucks that have been launched for regional warehousing operations.

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TOP 10 FORKLIFT TRUCKS LINDE A marketing campaign has been launched for Linde’s H30D forklift truck, which focuses on a number of benefits for warehouse operators, on, low such as low fuel consumption, w maintenance costs and low emission levels. Boasting a capacity of three tones, the vehicle is equipped with a Deutz diesel engine, maxi twin drive pedal system, capacit mum load finger-tip load control y recently for Linde’s and Linde’s innovative -l hydrostatic transmission, H30D foaunched rklift making it suitable for th heavy duty applications with ments. minimum service requirements.

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Theere are seven models available in Mitsubishi’s FBC15-30N series of forklift Mit trucks, with load capacities starting at tru 1.5 tonnes and extending to 2.0 tonnes. the Mitsubishi Each Eac of the vehicles have been designed FBC15-30N series match the solid performance of a diesel to m of forklifts forklift, forklif while utilising the usual benefits of AC po power, including smooth, quiet and emission-free operations. What’s more, the emission-fr efficiency of the AC motors, combined with regenerative efficiency braking and energy-saving cushion tyres, means the FCB15-20N series can be operated for longer periods without the need for a recharge. Customers can also purchase a number of optional extras to support the forklift’s standard features, such as strobe lighting, seat-operated parking brakes and lateral battery slides. WEB: http://www.mitforklift.com TEL: +9712 5545900

YALE Yale has supported its product development programme with the launch of its VL electric forklift range, which the manufacturer claims is the most energy efficient, ergonomically advanced and productive series of counterbalance trucks in the 2200kg to 3500kg capacity market. With a compact design and super-cushion tyres, the new VL is designed to offer a performance normally associated with diesel and LPG forklifts, but without the indoor application restrictions that at are often associated with engine powered trucks. cks.

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CROWN Crown’s latest stockpicker, the TSP6000, 0, has been equipped with a triple-stage mast,, allowing operators to reach a greater height in the warehouse. In addition, the truck can be collapsed and made po shorter than standard options, which maximuunds is the is meant to improve operations and of Crowm lift capacity storage. Also included is a ‘move n’s control’ seat that is designed to forklift TSP6000 tru improve the comfort of users, while the series ck multi-task control handles can be used to blend functions such as travel, lift, pivot ivot and raise. The manufacturer, which is the he sixth largest forklift company in the world, claims laims the vehicle can travel 25% faster and liftt 40% faster than its competitors.

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COMBILIFT The latest counterbalance forklift from Irish manufacturer Combilift has been designed as a compact and multi-directional alternative tto existing models in the material handling market. The product, which was recently launched to comme commemorate the 10th anniversary of Combilift, features featur a maximum lift height of 7.5 metres and lift m u a load capacity of 2500kg. In addition, since the m xi a m e th is ft ili b Combi-CB is manufactured without a platform, Com m o C e height for th ailable companies can optimise their warehouse capacity comp av CB, which is by stacking their products from the floor up, st d an l se ie D in LP Gas, therefore enabling 100% use of lower storage areas. there ns

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LANDOLL A new generation of Bendi electric forklifts has been released by Landoll Corporation to meet the demands of tough warehouse conditions. The four new models have been revamped to increase productivity and improve energy efficiency to reduce operating costs and raise throughput. An AC drive system is now standard on these forklifts and drivers can enjoy superior control, integrated breaking ability and smoother driving. The B30AC, B40AC, B45AC and B45AC-HL models can hold from 1350 to 2000 kilograms. WEB: http://www.landoll.com 901600 TEL: +1 314 02901600

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Cat Lift Truck has equipped its latest series of diesel lift is represe trucks with a variety of new by Mohamed ar features, which are designed l-Bah Abdulrahman Auwait, to boost the material handling K , in Bahrain process for customers in the Qatar, UAE and Middle East. Available in six Oman m different capacities, ranging from cles 1.5 tonnes to 3.5 tonnes, the vehicles hat benefits include a rugged diesel engine that from swift acceleration, low noisee and reliable performance in warehouse facilities. Safety is also advanced by a seat switch to ensure the operator is correctly seated before allowing access to the truck’s hydraulic functions, preventing the risk of damage or accidents. WEB: http://www.cat-lift.com TEL: +971 6 5433555

TOYOTA The latest series of reach trucks from Toyota is equipped with a modern AC hydraulic system, which aims to boost productivity in the warehouse by handling a larger number of pallets per hour and responding faster to operator commands. In addition, the 8-Series has achieved a 17% increase in travel times compared to previous models, making it suitable for warehouses with a fast turnover of products. To ensure the motors stay within normal operating temperatures, the trucks also feature a thermal protection cooling system, which introduces cooler airr to the motor compartment, while ventilating warmer air through compartment openings. WEB: http://www.toyota8series.com TEL: +971 4 2066199

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JUNGHEINRICH Jungheinrich has launched its ETV Q20/25 range of multidirectional reach trucks, which are particularly useful for companies with narrow aisles that need to transport long loads to high-lift heights. The forklifts have been equipped with electric all-wheel steering, with the capability of transporting loads with a maximum length of 8 metres, while the steering can also be changed from 180° to 360° to provide a choice between minimum turning radius and fast travel direction change. Finally, the onboard computer combines a number of functions in one phase A operating display, including multiC w ith the E technology occupied function keys and a colour range fo T V Q20-25 display that provides the operator r tra with full control of travel modes lifting a velling, nd or performance parameters.

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steering

ASK THE EXPERT

SELF CONTROL QUESTION: What are the advantages of self storage for companies that operate in the Middle East region? THE EMERGENCE OF SELF STORAGE IN MIDDLE EASTERN COUNTRIES

FACTORS THAT HAVE CONTRIBUTED TO THIS REGIONAL REVOLUTION

GROWING COMPETITION FROM OTHER PLAYERS IN THE MARKET

Despite being well-established in regions such as North America and Europe, the concept of self storage is relatively new in the Middle East and a limited number of options are available to customers with an interest in this type of storage. However, its popularity is constantly increasing, especially in the United Arab Emirates, where Storall has emerged as a regional pioneer of self storage, allowing companies and individuals to lease climate-controlled units of different sizes for varying durations.

The local popularity of self storage has grown as more and more people move into the city or shift from apartment to villa (and vice versa). Dubai, for example, has a limited amount of storage space, whether we’re looking at office or domestic environments. This is where self storage becomes a helpful solution for customers that require extra storage space. Moreover, clients prefer to lease a self storage unit because of the flexibility in selecting both the size and duration of storage. The other alternative, which is less appealing, would be leasing a considerably larger warehouse for a minimum of one year, where the rate is lower than self storage, but the financial commitment is substantially larger due to minimum size and period restrictions.

The United Arab Emirates was the first country to introduce the concept of self storage in the Middle East, with varying levels of success. At the moment, there are approximately half a dozen companies in Dubai and neighbouring areas that can genuinely be referred to as “self storage” providers. Naturally, there is a sense of healthy competition between the self storage companies here, which is always a good thing. As a matter of fact, we speak with one another - and in several instances, we have passed clients onto each other when we either lacked available space and/or were unable to accommodate a client. The same goes for our third party logistics operation - we have continued to benefit from cooperating and keeping in close contact with other leading logistics companies, warehouse operators and freight forwarders in the region.

TYPICAL ITEMS FOR SELF STORAGE A diverse range of items are stored in self storage facilities, from clothes and luggage to books and furniture. If the facility is operated by a multi-storage organisation, clients can also be provided with industrial warehouse space, supported by a top-tier warehouse management system. In many cases, customers that book for self storage will also require warehouse storage space for their professional requirements.

CREATING AWARENESS OF SELF STORAGE TO POTENTIAL CLIENTS Like most businesses, creating awareness of the service presents the hardest challenge. In the logistics business, knowing where to advertise, with whom to form a strategic partnership, which kind of corporate client to target and how to improve services are all part of the process. To review, absorb and amend are keywords in this market. By following such guidelines, a company will inevitably start to grow and prosper.

USING STORALL AS A BAROMETER OF MARKET DEMAND IN THE REGION

This month’s column was written by Ghassan Abughazaleh, general manager of Storall

48 NOVEMBER 2009 | www.arabiansupplychain.com

Despite recent challenges in the logistics sector, Storall has managed to grow in size and market share, proving that demand for self storage does exist in the Middle East. In fact, we’ve recently expanded the capacity of our self storage facility by another one third. On several occasions, we’ve also had to sub-lease other storage facilities to meet our growing 3PL operation as well.

HINTS AND TIPS ON SELECTING A QUALITY SELF STORAGE PROVIDER Those seeking self storage should look for some basic principals when selecting their service provider. The facility should be located in a conveniently accessible location, dust-free and above all, climate controlled, because this will definitely make a difference during the summer. The facility should also have constant surveillance and controlled access, be clean and properly maintained, and offer various ancillary services, such as packing, crating, shrink-wrapping, strapping, and moving among others. The availability of ample passage-ways and wide entrance doors is another important element to look out for. All of these factors, along with the right product mix and friendly customer service, comprise the perfect recipe for a successful self storage provider.

Take your storage to the right direction SPAN-Group is the leading provider of total supply chain solutions for companies operating in the Middle East since 1989. Headquartered in Dubai, with regional offices in Beirut and Doha, the group strives to provide the best-of-breed solutions through its Facility Engineering & Design, Warehouse Storage Solutions, Supply Chain IT & Integration Systems and Industrial & Office Furnishing Solutions. Dubai, United Arab Emirates - Showroom #4, Al-Naboodah Complex, Nad Al Hamar Rd, Ramool, P.O. Box 55397, Dubai, U.A.E Tel: (+971) 4 289 5111 - Fax: (+971) 4 289 5110 - Email: inquiry@span-group.com - website: www.span-group.com

INDUSTRY STATISTICS

FACTS & FIGURES Air Cargo Regional & International Statistics

Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month, Logistics Middle East provides its readers with four 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

380

200,000

16 October

366

28 August

355 350

18 September

21 August

150,000

339

352

2 October

4 September

320

332

100,000

290 50,000

FUEL PRICE INDEX The fuel index is based on the average price of aviation fuel in five key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast).

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

JULY 2009/2008 Cargo (tonnes)

JULY 09

JUNE 09

MAY 09

APR 09

MAR 09

FEB 09

JAN 09

DEC 08

NOV 08

AUG 08

16 Oct 09

09 Oct 09

02 Oct 09

25 Sept 09

18 Sept 09

11 Sept 09

04 Sept 09

28 Aug 09

21 Aug 09

14 Aug 09

07 Aug 09

230

OCT 08

INDEX 100 = 53.5 US cents per US gallon

SEPT 08

260

CARGO STATISTICS This graph represents the cargo volumes handled at Dubai International Airport over a 12-month period. Cargo figures, as provided by Airports Council International (ACI), are measured as loaded and unloaded freight and mail.

MONTHLY AIR CARGO REPORT: AFRICA REGION*

YEAR-TO-DATE 2009/2008

% CHG

Cargo (tonnes)

% CHG

AIRPORT/COUNTRY

JULY 2009/2008 Cargo (tonnes)

% CHG

YEAR-TO-DATE 2009/2008 Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

110,560

-16.2

712,473

-25.3

Accra (Ghana)

3576

-20.9

27,521

-11.6

Brussels (Belgium)

28,707

-32.4

222,798

-43.7

Addis Ababa (Ethiopia)

2606

n/a

23,056

-46.7

Cologne (Germany)

48,003

-4.7

310,859

-9.2

Algiers (Algeria)

1651

-8.5

13,989

0.5

Frankfurt (Germany)

159,446

-10.4

1,008,732

-19.9

Antananarivo (Madagascar)

1132

-20.6

6572

-31.2

Istanbul (Turkey)

33,293

11.2

197,317

-6.0

Cairo (Egypt)

19,780

-5.8

167,275

1.0

Leipzig (Germany)

42,632

0.6

272,475

18.4

Casablanca (Morocco)

3949

-12.8

33,775

-5.2

Liege (Belgium)

39,302

-5.3

252,912

-20.7

Dar Es Salaam (Tanzania)

1727

-10.6

10,583

-23.6

London Heathrow (UK)

114,560

-12.2

731,851

-16.1

Durban (S. Africa)

n/a

1257

19.0

Luxembourg (Luxembourg)

48,420

-24.9

348,014

-25.4

Entebbe (Uganda)

4544

-9.8

31,025

-13.4

Paris (France)

153,000

-10.7

1,018,100

-15.8

Johannesburg (S. Africa)

25,550

-6.3

141,942

-24.4

Vienna (Austria)

15,355

-6.1

102,838

-11.5

Lagos (Nigeria)

n/a

Warsaw (Poland)

3959

-12.0

27,456

-15.4

Nairobi (Kenya)

19,654

-15.8

152,828

-13.3

30,102

12.0

161,003

-12.1

Tunis (Tunisia)

1777

-5.3

10,605

-13.2

Zurich (Switzerland)

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

50 NOVEMBER 2009 | www.arabiansupplychain.com

INDUSTRY STATISTICS

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

JULY 2009/2008

YEAR-TO-DATE 2009/2008

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION* AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

33,118

3.0

209,152

1.6

Ahmedabad (India)

Al Ain (UAE)

708

198.7

1799

84.7

Amman (Jordan)

6952

-11.3

46,594

Beirut (Lebanon)

6195

6.1

41,058

160,290

1.9

Abu Dhabi (UAE)

Dubai (UAE)

JULY 2009/2008

YEAR-TO-DATE 2009/2008

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

1936

-8.9

12,117

-16.5

Bangalore (India)

14,617

3.1

89,380

-11.7

-11.1

Bangkok (Thailand)

87,844

-14.7

549,534

-24.9

11.2

Chengdu (China)

29,634

2.3

194,780

-15.4

1,035,119

-0.4

Colombo (Sri Lanka)

12,500

-11.1

75,786

-20.6

Fujairah (UAE)

2724

n/a

20,037

-13.4

Fukuoka (Japan)

21,525

-10.2

134,655

-15.4

Kuwait (Kuwait)

17,465

11.6

107,972

3.1

Hong Kong (China)

293,847

-8.2

1,771,569

-17.9

Muscat (Oman)

5065

3.6

33,912

-0.6

Jakarta (Indonesia)

35,187

-18.8

243,663

-9.7

1040

49.6

2492

-41.6

Kuala Lumpur (Malaysia)

54,497

-0.3

323,659

-20.8

41,911

36.3

227,210

20.3

Manila (Philippines)

29,687

-3.6

169,682

-19.5

Mumbai (India)

49,889

3.3

316,140

-5.2 -38.8

Ras Al Khaimah (UAE) Sharjah (UAE)

Osaka (Japan)

51,034

-31.5

316,911

YEAR-TO-DATE 2009/2008

Seoul (Korea)

9904

55.9

84,232

23.7

Shanghai (China)

222,749

-3.6

1,272,492

-16.5

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

JULY 2009/2008 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Anchorage (USA)

166,796

-14.5

984,732

-30.7

Singapore (Singapore)

143,755

-12.9

911,003

-18.7

Buenos Aires (Argentina)

12,274

-22.4

79,932

-35.2

Taipei (Taiwan)

120,289

-5.9

676,977

-27.4

-26.2

Tokyo (Japan)

166,194

-8.9

969,657

-23.5

Chicago (USA)

100,696

-11.6

596,488

Los Angeles (USA)

127,445

-9.5

808,519

-18.3

Memphis (USA)

308,912

1.3

2,074,328

-3.7

Mexico City (Mexico)

26,215

-20.3

175,983

-22.8

*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:

www.arabiansupplychain.com | NOVEMBER 2009

INDUSTRY STATISTICS

FACTS & FIGURES Sea Freight Regional & International Statistics

Our sea freight data includes information on bunker fuel prices at major port facilities in the Middle East, North and South Europe, North and South America, and Asia. More specific cargo statistics are also provided from the Saudi Ports Authority, covering the major ports in the Kingdom.

FUJAIRAH BUNKER FUEL PRICE INDEX

600

500

20 Aug

494

716

n/a

Port Sultan Qaboos (Oman)

434

483

642

n/a

BUNKER FUEL PRICE INDEX: ASIA & OCEANIC REGION* PORT / COUNTRY

IFO380

IFO180

MGO

MDO

Busan (Korea)

468

478.5

640

630

Hong Kong (China)

439

447

634

n/a

Kaohsiung (Taiwan)

488

491

670

655

Shanghai (China) Singapore (Singapore)

n/a

453.5

458.5

621

n/a

BUNKER FUEL PRICE INDEX: NORTH EUROPE REGION* PORT / COUNTRY Copenhagen (Denmark)

410

300

20 Mar 200

244

20 Nov

217

100 20 Oct 09

489

Khor Fakkan (UAE)

20 Jul

20 Sep 09

Jeddah (Saudi Arabia)

400

20 Aug 09

n/a

20 July 09

633

20 June 09

463

20 May 09

455

20 Apr 09

n/a

Fujairah (UAE)

455

MDO

20 Mar 09

n/a

20 Feb 09

MGO

n/a

20 Jan 09

IFO180

n/a

20 Dec 08

PORT / COUNTRY

20 Nov 08

IFO380

Dammam (Saudi Arabia)

20 Oct

451

BUNKER FUEL PRICE INDEX: MIDDLE EAST REGION*

BUNKER FUEL PRICE INDEX: SOUTH EUROPE REGION*

IFO380

IFO180

MGO

MDO

IFO380

IFO180

MGO

MDO

462

457

677

623

Algeciras (Spain)

PORT / COUNTRY

490

510

700

680 n/a

Gothenburg (Sweden)

462

457

677

623

Fos (France)

n/a

Hamburg (Germany)

445

460

657

605

Gibraltar (Gibraltar)

n/a

Rotterdam (Netherlands)

443

462

610

645

Istanbul (Turkey)

474

487

641

n/a

St Petersburg (Russia)

n/a

Piraeus (Greece)

463

480

645

n/a

BUNKER FUEL PRICE INDEX: NORTH AMERICA REGION* PORT / COUNTRY Houston

BUNKER FUEL PRICE INDEX: SOUTH AMERICA REGION*

IFO380

IFO180

MGO

MDO

434

447

n/a

614

Buenos Aires (Argentina)

PORT / COUNTRY

IFO380

IFO180

MGO

MDO

435

455

670

645

Los Angeles

443.5

460

680

669

Montevideo (Uruguay)

n/a

New Orleans

438

457

n/a

631

Panama Canal (Panama)

448

467

672

n/a

New York

432

459

n/a

671

Rio de Janeiro (Brazil)

463

481.5

695

n/a

Seattle

n/a

Santos (Brazil)

454

472.5

679.5

n/a

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 20th October 2009. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

52 NOVEMBER 2009 | www.arabiansupplychain.com

INDUSTRY STATISTICS

COMMODITY DISCHARGED DETAILS: AUGUST 2009 6 million

5 million

4 million

3 million

2 million

1 million

Total cargo discharged

Other cargo discharged

Consumer goods

Vehicles

Food and foodstuffs

Construction

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

AUGUST 2009

YEAR-TO-DATE

Discharged

Loaded

Discharged

Loaded

2,186,443

565,941

12,661,795

4,657,035

Bulk cargo (liquid)*

354,543

4,587,358

3,503,653

38,852,075

General cargo

593,414

86,301

3,509,990

557,640

2,308,781

1,399,945

16,910,337

11,209,616

136,128

18,436

1,006,409

134,762

6121

n/a

97,253

n/a

5,585,431

6,657,981

37,689,437

55,411,128

Bulk cargo (solid)

Containers (in tonnes) Ro-Ro and vehicles Livestock TOTAL TOTAL PORT THROUGHPUT

12,243,411

93,100,565

2009 CONTAINERS (TEU)

2008

August

Year-to-Date

August

Year-to-Date

Discharged

201,857

1,472,347

206,083

1,571,111

Loaded

178,253

1,438,183

198,668

1,512,147

TOTAL

380,110

2,910,530

404,751

3,083,258

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

For up-to-date figures, visit:

www.arabiansupplychain.com | NOVEMBER 2009

01 1 02 2 03 04 05 EVENTS CALENDAR 06 07 0809 10 111 112 13 3 14 15 16 17 17 18 8 19 1 20 211 2 22232425 2627282930 EVENTS CALENDAR

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry 14th - 17th November 2009 CERTIFIED SUPPLY CHAIN MANAGER

16th November 2009 AVIATION BUSINESS AWARDS

24th – 25th November 2009 TRANS MIDDLE EAST

The International Supply Chain Education Alliance (ISCEA) will host its latest Certified Supply Chain Management (CSCM) summit at Sheraton Dubai Creek Hotel and Towers this month. With a workshop, exam and networking session included as part of the event, Tom Nauwelaerts from Al-Futtaim Logistics has been drafted for the keynote speech, while Alexander Andarakis, chief executive officer of Al Islami Foods, will also make a presentation on the success of his company’s supply chain operations. VENUE: Sheraton Dubai Creek Hotel & Towers EMAIL: mkanchwala@iscea.com WEBSITE: www.iscea.net

The third annual Aviation Business Awards, which takes place at the Park Hyatt Hotel in Dubai, will feature 16 categories in total to honour the year’s biggest achievers from the Middle East’s aviation industry. Both companies and individuals will be rewarded at the ceremony, with trophies for Air Cargo Manager of the Year, Airline CEO of the Year, Air Charter CEO of the Year and Airport CEO of the Year, amongst others. In addition, the event will provide an opportunity to network with key players from the industry. VENUE: Park Hyatt Hotel, Dubai EMAIL: annie.chinoy@itp.com WEBSITE: www.arabiansupplychain.com

Bahrain has been selected as the host country for this year’s Trans Middle East, which is expected to attract more than 100 exhibitors from around the world. In addition, a supporting conference has also been confirmed, with 35 world-class speakers taking part to discuss the latest trends in logistics, shipping and container ports, including a look at the growing list of warehousing projects in the Kingdom, such as Bahrain Logistics Zone. VENUE: Gulf International Convention and Exhibition Centre, Kingdom of Bahrain EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com

7th – 8th December 2009 9 SCM LOGISTICS MIDDLE EAST

40+

deleg SCM ates at L Midd ogistics le Eas t

9th De December 2009 WAREHOUSE AUTOMATION DAY W WARE

24th – 27th January 2010 DEFENCE LOGISTICS MIDDLE EAST

Figureheads from the retail, distribution and manufacturing sectors will gather at SCM Logistics Middle East this year to discuss how challenges such as rising business costs and inadequate infrastructure can be overcome with effective distribution, logistics and supply chain strategies. Keynote speakers include Vikas Bansal (Nikai), Swapan Choudhury (Landmark) and Sherif Riad (Kraft Foods). VENUE: Fairmont Hotel, Dubai EMAIL: stella.teo@terrapinn.com WEBSITE: www.terrapinn.com

SSSI SI Sch Schaefer has confirmed plans to host h its latest automation congress in the h United Unit Arab Emirates next month, following a number of supporting events followi o around u the world. The company, which provides a range of material handling and provide v warehouse technology solutions, has booked h Le Méridien Beach Resort in Dubai for the free seminar, which has been designed to update its customers and partners in the Middle East on the latest developments in dynamic storage and order-picking systems. VENUE: Le Meridien Beach Resort, Dubai EMAIL: info@ssi-schaefer.ae WEBSITE: www.ssi-schaefer.ae

Following the success of last year’s Defence Logistics Middle East summit, with speakers including Professor Philbert Suresh from the Gulf University of Science and Technology (GUST) and Tarek Al Mousa from Agility Defence and Government Services (DGS), the event makes a return in 2010 to provide further examples on how national and international missions can be supported by a joint logistics process. The summit is aimed at freight forwarders, supply chain consultants and heads of military logistics. VENUE: Armed Forces Officers Club, Abu Dhabi EMAIL: enquiry@iqpc.ae WEBSITE: www.iqpc.com

31st January–2nd February 2010 MIDDLE EAST PORTS

9th-11th February 2010 CEMAT MIDDLE EAST

12th – 14th March 2010 KUWAIT LOGISTICS CONFERENCE

Regional leaders from the shipping industry will gather at Al Murooj Hotel in Dubai next year for the fourth consecutive Middle East Ports conference. Guest speakers such as Jamal Majid Bin Thaniah from DP World, Charles Menkhorst from APM Terminals and Gene Seroka from APL will address the latest opportunities and challenges for business growth, while updates will also be provided on the growing portfolio of Middle Eastern maritime developments. VENUE: Al Murooj Hotel, Dubai EMAIL: events@meed.com WEBSITE: www.meed.com

Deutsche Messe has launched a Middle East version of its CeMAT exhibition, which takes place at Dubai International Convention and Exhibition Centre in February 2010. Similar in format to other events in the CeMAT franchise, which take place in Hannover, Shanghai, Istanbul and Bangalore, the exhibition will focus on the core sectors of intelligent goods handling, warehousing technology, internal transport systems for logistics and materials handling technology. VENUE: Dubai Convention and Exhibition Centre EMAIL: ashok@messe-me.com WEBSITE: www.cemat-me.com

Kuwait is exploring a number of options to sustain its future economic growth, particularly in the aftermath of a global recession. To highlight the importance of the supply chain sector in achieving these goals, the first Kuwait Logistics Conference is taking place in March 2010 to highlight the opportunities and challenges ahead. Various topics will be covered at the event, including reverse logistics, RFID technology and building strategic partnerships. VENUE: Hilton Hotel, Kuwait EMAIL: translogistique@gmail.com WEBSITE: www.gust.edu.kw/glf

54 NOVEMBER 2009 | www.arabiansupplychain.com

FACE TO FACE INTERVIEW

SMOOTH INTEGRATION Rolf Habben-Jansen, global CEO of Damco, explains why the company was merged with Maersk Logistics and how this will impact its operations in the Middle East. Can you provide a backdrop to the merger between Maersk Logistics and Damco? Basically, the A.P. Moller-Maersk Group made a decision earlier this year to combine its Maersk Logistics brand, which focuses on supply chain management activities, and its Damco brand, which deals with freight forwarding. As a result, both of these entities were merged on a global basis and commenced operations under the single Damco brand from 7th September 2009. What objectives have been outlined by the A.P. Moller-Maersk Group for Damco? We want our dedication and passion for customer service delivery to continue at full pace. In addition, we will develop the strengths that are already embedded in our company, such as putting our clients and their businesses first. To achieve these objectives, our teams across the world will be spending a greater amount of time on engaging with customers, asking them questions and making sure we’re offering the best range of solutions possible. To what extent have Maersk Logistics and Damco operated in Middle Eastern countries before the merger took place? We have a regional office in Dubai, which is supported by a network of other offices in countries throughout the Middle East, such as Bahrain, Saudi Arabia, Qatar and Kuwait. Together, these facilities have provided a range of services to customers in the region, from basic freight forwarding to advanced supply chain management, which have been offered as both Maersk Logistics and Damco. Following the merger of these two entities, the entire spectrum of those services will be operated under Damco, although it’s basically the same organisation with the same group of employees. The only difference is that customers will find the work processes have been simplified. 56 NOVEMBER 2009 | www.arabiansupplychain.com

How important is the Middle East region for Damco on a global basis? We have traditionally placed a great deal of emphasis on emerging markets and that includes the Middle East. In fact, I would state that from a global perspective, our share of the emerging markets is probably second-to-none. The only international player that comes close would be Agility. So yes, the Middle East is important in that sense, although our presence in this region could be stronger and we definitely have high expectations for developing Damco over here in the coming years, especially in countries such as Saudi Arabia and the United Arab Emirates, as well as Egypt. Has the company developed a strong network of facilities in this region? Generally speaking, Damco is pretty much everywhere, although our main strongholds are definitely the United Arab Emirates, with a greater focus on Dubai and Abu Dhabi, as well as Saudi Arabia and Egypt. Apart from that, we have a modest network of facilities in countries such as Bahrain, Kuwait, Jordan and Qatar. How will Damco expand its operations in the Middle East? We have identified a number of different sectors that hold a lot of potential for Damco in this region. For example, we have established a strong reputation in the local petrochemical industry, which is something we will further develop in the future. Its a focus area for the company. In terms of products, there is huge scope for sea-air solutions, especially in Dubai, as well as inbound logistics for retailers that source their products from Asia.

In your opinion, has Damco managed to differentiate itself from other players in the global and Middle East markets? That’s a very interesting question and there are a couple of factors that should be taken into consideration. Firstly, Damco is a global company, with a presence in over 93 countries across the Middle East, Africa, Asia, Europe, North America and Latin America. However, despite this fact, we are very responsive to customer demands and this will support our growth, as it supported the growth of Maersk Logistics and Damco as separate brands in the past. In 2008, the combined businesses had a net turnover of US$2.8 billion, shipped more than half a million TEUs in ocean freight, over 60,000 tonnes in airfreight, and handled over 50 million CBMs for our supply chain management customers. Has the recession impacted your growth? We have been affected, especially in the last quarter of 2008 and first quarter of 2009, with volumes coming down. There has been a level of recovery in both the second and third quarters, which seems to indicate that things are getting better. Our key objective is now returning to growth, hopefully in the next quarter or two.