An ITP Business Publication
NEWS ROUNDUP 2009 Looking back at the most prominent logistics news stories in the Middle East
COMPANY PROFILES DECEMBER 2009 ISSUE 63
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Performance reviews with 80 leading institutes from the supply chain industry
ANNUAL REVIEW THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
EDITOR’S LETTER
Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 435 6284 email: robeel.haq@itp.com Contributors Nadia Khan, Ed Attwood, Sarah Blackman 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 PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographer Efraim Evidor Staff Photographers Leila Cranswick, Lyubov Galushko, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Louise Schreiber Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles 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
Are brighter times ahead for logistics?
L
ooking back on 2009 and it seems the Middle East logistics sector has faced its most challenging year to date. Following years of positive reports on the continued growth of companies across this industry, we’ve had the unfortunate task of reporting on company closures and job redundancies. However, every cloud has its silver lining, which has been especially true in this region compared to developed markets such as Europe and the United States. In fact, the vast majority of companies that are featured in our annual review this year have decided to take a deep breath in these challenging times and concentrate on understanding their business operations a little better. The strategy, in most cases, has worked wonders and reports about lower operating costs and higher profit margins have become a common theme in this issue of Logistics Middle East. Moving ahead, with 2009 finally drawing to a close, its time to start thinking about the future, with growth forecasts in the region being a lot more positive, especially when compared to this time in 2008. Of course, it’s important to keep your expectations as realistic as possible and the general consensus is that a recovery will commence in 2010, but the process will be slow and steady - a situation that most of the companies in this annual review issue have welcomed with open arms. We’re also starting the countdown for next year’s Supply Chain and Transport Awards (SCATA), which have proved a remarkable success in the previous three years and promise to return on a grander scale in 2010. Given the economic climate and the attitude that ‘change is around the corner’, these awards will offer a perfect opportunity to celebrate the logistics industry’s biggest achievements in the past year. Further information will be provided in the coming months and we welcome your suggestions for next year’s ceremony.
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
If you have any comments or suggestions to make on this month’s issue, please email Robeel Haq, senior group editor of Logistics Middle East (robeel.haq@itp.com)
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.
Annual News Review Air Cargo Express Logistics Third Party Logistics (3pl) Free Zones, Trade Centres & Industrial Parks Material Handling & Technology Solutions
*BPA Worldwide Audited Average Qualified Circulation 6,044 (Jan - June 2009)
Published by and © 2009 ITP Business Publishing, a division of the ITP Publishing Group Ltd. Registered in the B.V.I. under Company Number 1402846.
Training, Recruitment & Consultancy Trade Associations
03 11 15 19 33 41 47 55
To subscribe please visit www.itp.com/subscriptions www.arabiansupplychain.com
| DECEMBER 2009 1
LF U G
E LOGIST D I W D L R ICS WO
LLC
A PROFESSIONAL LOGISTICS SERVICE PROVIDER
State-of-the-Art Facilities include: Covered Area Rack Storage Covered Area Ground Storage Road Base Compacted Open Area Storage
Services offered include: Warehousing and Handling of all types of Cargo Complete Documentation Services Freight Forwading & Management In-house Land Transportation Services Value Added Services Project Cargo Management
“We guarantee Customer Satisfaction at an economical value” For further details contact: Director, P.O. Box 17834, Jebel Ali, Dubai, U.A.E. Tel: +971 - 04 881 5040/6797, Fax: +971 - 04 881 6552 E-mail: voram@gwbrg.com
ANNUAL REVIEW 2009: NEWS ROUNDUP
BUILDING BLOCKS An exclusive update on warehouse construction at Dubai Logistics City
AIMING HIGH JANUARY 2009 ISSUE 52
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Emirates Aviation College reveals its postgraduate programme in logistics
JANUARY 2009 JANUARY 08
KEYS TO THE KINGDOM Saudi Arabia returns as a hot investment for the global logistics industry
SCATA 2009 PREVIEW
Can the logistics industry play a role in boosting the military supply chain?
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
MARCH 2009 ISSUE 54
The latest details on this year’s Supply Chain and Transport Awards in Dubai
RISKY BUSINESS APRIL 2009 ISSUE 55
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Has the global recession increased the importance of purchasing insurance?
Gillian Lewis, regional logistics manager, Ace Hardware
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
An ITP Business Publication
Why the global slowdown will not impact FedEx’s Middle East masterplan
ON THE DEFENCE FEBRUARY 2009 ISSUE 53
Mohamed Iqbal, operations manager, Harley-Davidson UAE
EASY RIDER
JUST DESSERTS An exclusive scoop on Baskin Robbins’ regional supply chain operations
TOOLS OF THE TRADE
Is Harley-Davidson on the road to success with its Middle East supply chain operations?
Building a solid supply chain with Ace Hardware in the Middle East Manoj Loya, general manager, Galadari Ice Cream Company
ALSO IN THIS ISSUE: HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA
An ITP Business Publication
CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX
An ITP Business Publication
GENERATION NEXT
MOBILE MARKET
Making an impact with the latest entrants in the Middle East 3PL sector
SYSTEM OVERLOAD MAY 2009 ISSUE 56
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Has the global recession provided WMS suppliers with a golden opportunity?
EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN
An ITP Business Publication
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
An exclusive look into CEVA’s US$800 million Middle East investment
Piecing together the multi-million dollar investment behind Aqaba’s logistical transformation SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY
An ITP Business Publication
WAREHOUSE WORLD
How the Middle East has championed RFID within the regional postal sector
FULL STEAM AHEAD JUNE 2009 ISSUE 57
BUILDING THE BIGGER PICTURE
THE RIGHT FREQUENCY
Can the logistics industry benefit from developments in handheld computers?
Which industrial zones are leading the Middle East’s logistical growth?
OPPORTUNITY KNOCKS JULY 2009 ISSUE 58
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
The latest research points to growth prospects in the Middle East‘s 3PL sector
LOGISTICS LOWDOWN AUGUST 2009 ISSUE 59
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
RHS Logistics outlines its development strategy for the United Arab Emirates
IALS G MATER HANDLIN EAST MIDDLE SHOWE 2009 W INSID REVIE
CITY SLICKER A surprise breakthrough as RSA Logistics opens the first warehouse at Dubai Logistics City
AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN
An ITP Business Publication
Revealing the winners of this year’s Supply Chain and Transport Awards
Why cold storage is a hot market for Global Shipping & Logistics (GSL)
DUBAI INDUSTRIAL CITY І SPAN GROUP І INTERMEC І ARAMEX І SUPPLY CHAIN & LOGISTICS GROUP
MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY
An ITP Business Publication
An ITP Business Publication
MOUNTING PRESSURE
Profiling the logistics industry’s hottest new destination
Why ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
A profile of the biggest logistics exhibition to hit the Middle East in 2009
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
NEWS ROUNDUP 2009 Looking back at the most prominent logistics news stories in the Middle East
COMPANY PROFILES DECEMBER 2009 ISSUE 63
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Performance reviews with 80 leading institutes from the supply chain industry
ANNUAL REVIEW
SILENT
THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
in focus LEADER
Globelink West Star Shipping steps out of the shadows to celebrate its 20th anniversary as a logistics powerhouse
BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO
An ITP Business Publication
SITL DUBAI REPORT
PREVIEW: SITL DUBAI OCTOBER 2009 ISSUE 61
PARK LIFE
Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects
ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY
The hidden potential of the petrochemical sector for 3PL service providers
Can the industry measure its health with demand for warehouse construction?
AMBITIOUS PLANNING NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
upplychain.com www.arabians
CHEMICAL REACTION
BEING CONSTRUCTIVE
The benefits of adopting vehicle-mounted devices in your warehouse centre
SEPTEMBER 2009 ISSUE 60
AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL
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
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
UNIVERSITY CHALLENGE Keeping updated on the growing number of Middle Eastern logistics courses
ON THE DEFENCE FEBRUARY 2009 ISSUE 53
EXPRESS STRATEGY
Keeping updated on the growing number of Middle Eastern logistics courses
AIMING HIGH Emirates Aviation College reveals its postgraduate programme in logistics
An ITP Business Publication
UNIVERSITY CHALLENGE
An exclusive update on warehouse construction at Dubai Logistics City
An ITP Business Publication
An ITP Business Publication
An ITP Business Publication
BUILDING BLOCKS
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
ORY DIRECT ! OUT NOW
ANNUAL NEWS REVIEW
An ITP Business Publication
JANUARY 2009 ISSUE 52
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Can the logistics industry play a role in boosting the military supply chain?
FEBUARY 2009
Airfreight will be the fastest growing market for cargo transportation in the United Arab Emirates, according to a market report from Business Monitor International (BMI). The sector will experience an average growth rate of 8.2% per year between 2009-2013, compared to 5.1% in sea freight and 4.4% in road haulage. “The dynamic economy in the UAE is becoming more diverse d shows h id b t and evidence off robustness to withstand external shocks,” explained Michelle Byrne, head of freight and transport analysis at BMI. “Strong investment in transport infrastructure and the global ambitions of companies such as Emirates Airlines and DP World will also be positive growth factors for the country.”
OTHER LOGISTICS NEW STORIES IN JANUARY 2009
OTHER LOGISTICS NEWS STORIES IN FEBRUARY 2009
• First Bahrain announced plans to expand its warehousing space at Bahrain Investment Wharf to cope with massive demand from small and medium business enterprises (SMEs) in the Middle East region. • DHL Express boosted its transportation infrastructure in the Middle East with a US$3.7 million warehouse in Jordan, measuring 4000m2. • A number of figureheads from Dubai’s logistics sector took part in the second annual Dubai Hamburg Business Forum in Germany. • Airbus Middle East secured a two-year contract from Parker Aerospace to provide a range of storage and handling services in Dubai. • Logistica supported its multi-million dollar expansion strategy in the Middle East with the opening of new facilities in Oman and Qatar. • NMC Trading became the largest warehousing customer to date at Dubai Industrial City after signing a long-term agreement to lease 230,000 square feet of storage space. • Aramex announced a major expansion in the Sultanate of Oman with the opening of a flagship office in the Al Khuwair district of Muscat. • Hala Supply Chain Services (HSCS) was appointed as the official distributor for Psion Teklogix in the Kingdom of Saudi Arabia.
• A programme to lower supply chain costs in the Middle East was launched by the Global Coalition for Efficient Logistics (GCEL) at the Arab Economic, Social and Development Summit in Kuwait. • The final blueprints for Saudi Arabia’s ambitious seaport at King Abdullah Economic City (KAEC) were revealed by developer Emaar Economic City (EEC). • GeoPost Intercontinental announced the appointment of Emanuil Stoimenos as Middle East chief executive officer to overlook its forthcoming expansion in the region. • DHL Supply Chain introduced a training and development scholarship in the Middle East to commemorate its former contract director David Rouse, who passed away in 2008. • TNT Express launched a safety awareness programme to reduce the number of traffic-related accidents in the United Arab Emirates. • British Airways confirmed plans to resume its services to Saudi Arabia with the launch of weekly flights to Jeddah and Riyadh. • Arshiya Transport commenced road transport services from Dubai, with plans to operate a fleet of 1000 owned and leased vehicles.
Mohamed Iqbal, operations manager, Harley-Davidson UAE
The media spotlight was shining on Sharjah at the beginning of the year, with suggestions that logistics activities in the emirate would experience a record period of growth in the coming years. The assessment was supported by a series of infrastructure project launches, including the 500,000m2 Hamriyah Maritime Centre and 700,000m2 International Logistics City. “Sharjah holds tremendous appeal as a regional logistics hub,” commented Professor Philbert Suresh, founder of the GUST Logistics Forum. “The global recession has forced companies to look for efficient and affordable solutions, so I’m sure the Middle East will benefit from the development of another logistics hub.”
EASY RIDER
Is Harley-Davidson on the road to success with its Middle East supply chain operations?
ALSO IN THIS ISSUE HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA
JUST DESSERTS An exclusive scoop on Baskin Robbins’ regional supply chain operations
Manoj Loya, general manager, Galadari Ice Cream Company
CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX
www.arabiansupplychain.com | DECEMBER 2009
3
ANNUAL REVIEW 2009: NEWS ROUNDUP
An ITP Business Publication
SCATA 2009 PREVIEW NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
The latest details on this year’s Supply Chain and Transport Awards in Dubai
KEYS TO THE KINGDOM Saudi Arabia returns as a hot investment for the global logistics industry
MARCH 2009
RISKY BUSINESS APRIL 2009 ISSUE 55
Gillian Lewis, regional logistics manager, Ace Hardware
MARCH 2009 ISSUE 54
An ITP Business Publication
EXPRESS STRATEGY Why the global slowdown will not impact FedEx’s Middle East masterplan
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Has the global recession increased the importance of purchasing insurance?
APRIL 2009
The Dubai Department of Economic Development (DED) held the first in a series of logistics workshops to encourage a stronger relationship between the private and public sector. The event attracted a number of figureheads from the logistics industry, including Issa Baluch (Barloworld Logistics), Hamdi Osman (FedEx) and Alex Borg (CILT). “Logistics has always been a cornerstone of economic development in the Middle East,” said David Harris, DED’s director of international logistics services. “The better the communication between the private and public sectors, the more the industry can flourish and support the future growth of Dubai.”
The logistics industry was warned that a stream of redundancies from heavyweights such as Gulf Agency Company (GAC) and DP World could “prove costly” to future growth prospects in the Middle East. The announcement was made by John Halpin, former general manager of Hy-Tech Logistics, who stressed the importance of maintaining a balanced workforce. “Redundancies may produce short-term savings, but what will the long-term cost be? Companies that make knee-jerk decisions to reduce their headcounts need to consider how these skills and experience will be replaced,” he explained. “The focus should be holding onto experienced personnel within the Middle East region.”
OTHER LOGISTICS NEWS STORIES IN MARCH 2009
OTHER LOGISTICS NEW STORIES IN APRIL 2009
• Gulf Agency Company (GAC) expressed a “quiet confidence” that its global operations would experience a limited impact from the recession, with 13% income growth being predicted for 2009. • Al Hanoo awarded a US$109 million construction contract to develop the first phase of its Emirates Industrial Cities warehouse complex. • Patel Integrated Logistics Limited (PILL) commenced a search for Middle Eastern investors to develop its operations in South Asia. • Hala Supply Chain Services (HSCS) was ranked 15th in this year’s Saudi Arabia Start-Up List for excellence in business growth.
• RSA Logistics become the first company to commence operations at Dubai Logistics City (DLC), opening a 25,000m2 warehousing complex in close proximity to the forthcoming Al Maktoum International Airport. • Dubai-based Global Shipping & Logistics (GSL) was accredited in four categories by the International Standardisation Organisation (ISO). • TALKE Logistics honoured the project manager of its Qatar warehouse for ensuring the construction was finished without a single accident. • FedEx revamped its packaging material for express deliveries in Bahrain to support the country’s “Say No To Plastic” community programme.
TOOLS OF THE TRADE
Building a solid supply chain with Ace Hardware in the Middle East
EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN
An ITP Business Publication
SYSTEM OVERLOAD MAY 2009 ISSUE 56
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Has the global recession provided WMS suppliers with a golden opportunity?
Piecing together the multi-million dollar investment behind Aqaba’s logistical transformation
SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY
An ITP Business Publication
GENERATION NEXT Making an impact with the latest entrants in the Middle East 3PL sector
BUILDING THE BIGGER PICTURE
MOBILE MARKET Can the logistics industry benefit from developments in handheld computers?
MAY 2009
DP World, FedEx and Al Islami Foods were honoured for supply chain excellence at the Mohammed Bin Rashid Al Maktoum Business Awards. The annual event, which is organised by Dubai Chamber of Commerce and Industry (DCCI), was held at Dubai’s Madinat Jumeirah hotel to recognise the achievements of industry leaders from the logistics, manufacturing, construction and finance sectors. “These awards have acquired a massive importance due to their role in highlighting the leading business practices and excellent performance of certain firms,” commented Abdul Rahman Saif Al Ghurair, chairman of Dubai Chamber. “The winners have set a wonderful example for other companies to follow.”
CITY SLICKER A surprise breakthrough as RSA Logistics opens the first warehouse at Dubai Logistics City
AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN
FULL STEAM AHEAD JUNE 2009 ISSUE 57
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
An exclusive look into CEVA’s US$800 million Middle East investment
JUNE 2009
IALS MATER LING HANDLE EAST MIDD SHOW 2009 W INSIDE
The Supply Chain and Logistics Group (SCLG) commenced a major research initiative into the Middle East logistics industry, a senior official from the Dubai-based trade association told Logistics Middle East. A comprehensive range of information will be collated as part of the project, with key investors from the private and public sectors being provided with access to the first set of information by the end of 2009. “There is a limited amount of authenticated research into the Middle East logistics industry,” said Dr Kanak Madrecha, member of SCLG’s regional development committee. “We have launched this research project to expand the scope of available information.” REVIE
Revealing the winners of this year’s Supply Chain and Transport Awards
DUBAI INDUSTRIAL CITY І SPAN GROUP І INTERMEC І ARAMEX І SUPPLY CHAIN & LOGISTICS GROUP
OTHER LOGISTICS NEW STORIES IN MAY 2009
OTHER LOGISTICS NEWS STORIES IN JUNE 2009
• Singapore Airlines Cargo consolidated its Middle East operations with a dedicated office at Sharjah Airport International Freight Centre. • Agility started operations at a 40,000m2 warehousing centre in Riyadh, Saudi Arabia to support its continued expansion in the Middle East. • Etihad Crystal Cargo was confirmed as the latest member of IATA’s Cargo 2000 initiative to improve the global handling of shipments. • The Chartered Institute of Logistics and Transport (CILT) hailed its latest seminar in Dubai a success, attracting more than 150 people.
• Dubai Industrial City confirmed plans to expand its open storage area by 3.5 million square feet to meet demand from customers. • Dubai’s bi-annual exhibition Materials Handling Middle East was declared a record-breaking success by Epoc Messe Frankfurt. • Eros Group opened its 13,000m2 warehouse in Jebel Ali Free Zone South to cope with growth in the consumer electronics market. • Al Mutlaq United Company signed an agreement to market the ISIS warehouse management system (WMS) in Saudi Arabia.
4 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: NEWS ROUNDUP
An ITP Business Publication
THE RIGHT FREQUENCY How the Middle East has championed RFID within the regional postal sector
OPPORTUNITY KNOCKS NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
JULY 2009 ISSUE 58
The latest research points to growth prospects in the Middle East‘s 3PL sector
JULY 2009
Dubai Customs hosted a meeting with express logistics companies to showcase the latest enhancements for its Mirsal2 e-clearance system. The session was attended by senior representatives from various courier firms, including TCS Express, UPS, Elite Couriers, Skynet Worldwide, DHL and TNT Express, in addition to Emirates SkyCargo and DNATA employees. “Dubai Customs is focused on building a strong relationship with partners such as the courier sector, which plays an important role in the economic development of the emirate,” stated Ahmed Mahboob Musabih, executive director of the customer management division at Dubai Customs. “This meeting was organised to highlight the latest clearance procedures on Mirsal2 and allow feedback on the customs clearance needs of courier companies. The response was very positive and we will host a number of similar meetings in the future.” Why cold storage is a hot market for Global Shipping & Logistics (GSL)
MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY
MOUNTING PRESSURE
WAREHOUSE WORLD Which industrial zones are leading the Middle East’s logistical growth?
LOGISTICS LOWDOWN NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
RHS Logistics outlines its development strategy for the United Arab Emirates
AUGUST 2009
ORY DIRECT W! OUT NO
J Jebel Ali Free Zone announced plans to align its procedures with Dubai Logistics City to improve the efficiency of supply chain operations in the United Arab Emirates. The partnership was finalised with the signing of a Memorandum of Understanding (MoU) between Economic Zones World (EZW) – parent company of Jebel Ali Free Zone Authority (Jafza) – and Dubai Aviation City Corporation, which is responsible for Dubai Logistics City and the forthcoming Al Maktoum International Airport. “This is a landmark step and will have a positive impact on Dubai’s status as one of the world’s leading commercial and trading hubs,” stated Salma Hareb, chief executive officer of EZW. om supplychain.c www.arabian
• Abu Dhabi Airports Company (ADAC) announced plans to develop a 650,000m2 logistics park at Al Ain International Airport in partnership with Helios SinoGulf Property Development. • UPS established a joint venture in Dubai to manage its express package, freight forwarding and logistics services in the Middle East, Turkey and certain parts of Central Asia. • Universities in the United Arab Emirates were encouraged to work with the Chartered Institute of Logistics and Transport (CILT) to expand the scope of local education courses in supply chain management. • Middle East logistics company Agility topped the list of Lufthansa Cargo’s leading global partners, receiving the airfreight operator’s ‘Planet Award of Excellence’ during a trade ceremony in Europe. • Globelink West Star Shipping marked its 20th year of operations with the opening of a warehouse facility at Jebel Ali Free Zone. • Bahrain promoted its multi-billion dollar logistics credentials at the European Supply Chain and Logistics Summit in Germany. • Oman’s Ministry of Manpower issued a special award to Gulf Agency Company (GAC) to honour its support of the Omanisation process.
An ITP Business Publication
An ITP Business Publication
AUGUST 2009 ISSUE 59
OTHER LOGISTICS NEWS STORIES IN JULY 2009
PARK LIFE
Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects
ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY
The benefits of adopting vehicle-mounted devices in your warehouse centre
AMBITIOUS PLANNING SEPTEMBER 2009 ISSUE 60
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Why ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi
SEPTEMBER 2009
Although the logistics industry will benefit from annual growth rates of 8% in Middle East road freight volumes, the situation will present a number of challenges for governments in the region, according to a trade report by Booz and Company. “The strength of this sector is critical to the economic development of the Middle East. However, with more trucks on the road, the region is facing new challenges,” commented Ahmed El Wetidi, senior associate of Booz and Company. “Overtired drivers, overloaded vehicles and roads that are unsuited to higher truck volumes are causing more accidents in the Middle East compared to the likes of Europe or the US.” Profiling the logistics industry’s hottest new destination
in focus
BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO
OTHER LOGISTICS NEW STORIES IN AUGUST 2009
OTHER LOGISTICS NEWS STORIES IN SEPTEMBER 2009
• Gulf Warehousing Company (GWC) revealed an investment of US$68.5 million to construct the first phase of its Logistics Village Qatar (LVQ) project, with 83,000m2 of storage space and 23,200m2 of accommodation. • Ajman Free Zone Authority secured US$14.7 million of financing from Ajman Bank for the third phase of its large-scale warehousing complex in Al Jarf Industrial Area. • Manara Developments Company revealed its concept masterplan for Bahrain Investment Gateway, the 600,000m2 warehousing complex that was previously known as the Al Hidd Development Project. • Dubai Customs hosted an awards ceremony at Dubai Cargo Village to honour 41 inspectors from its airfreight department for completing an in-depth training course on x-ray detectors. • Abu Dhabi Customs Authority purchased US$8.6 million worth of x-ray screening systems from America Science & Engineering (AS&E). • US-based Dependable Global Express opened its first Middle East facility in Jordan for corporate, government and military customers.
• Maximus Air Cargo was contracted to operate a regular series of flights for Etihad Crystal Cargo in countries throughout the Middle East, Indian subcontinent, East Africa and Europe. • The global recession claimed its latest victim, with IIR Middle East being forced to cancel its International Freight Week in Abu Dhabi, following a limited response from the market. • Hala Supply Chain Services (HSCS) was selected to design and build a 15,500m2 logistics complex with a warehouse, service centre and office space for a leading tyre manufacturer in Saudi Arabia. • The Professional Courier (TPC) launched its services in the Middle East with a regional headquarters in Dubai, with plans for additional facilities in Abu Dhabi, Sharjah and other emirates. • APL Logistics launched a range of consolidation, distribution and value-added services from Dubai Logistics City. • Integrated Freight & Logistics (IFL) expanded its office network in the United Arab Emirates with a facility in Abu Dhabi.
www.arabiansupplychain.com | DECEMBER 2009
5
ANNUAL REVIEW 2009: NEWS ROUNDUP
An ITP Business Publication
PREVIEW: SITL DUBAI OCTOBER 2009 ISSUE 61
An ITP Business Publication
BEING CONSTRUCTIVE Can the industry measure its health with demand for warehouse construction?
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
A profile of the biggest logistics exhibition to hit the Middle East in 2009
CHEMICAL REACTION The hidden potential of the petrochemical sector for 3PL service providers
OCTOBER 2009
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
NOVEMBER 2009
The global recession has not deterred the United Arab Emirates from developing its warehouse and transportation infrastructure in the long-term, with research from Standard Chartered Bank claiming the logistics industry could emerge as the country’s biggest asset outside of oil. Although hydrocarbons is likely to remain the predominant contributor to GDP in the short to medium term – it accounted for approximately 43% of exports in 2008 – developing other economic sectors is considered essential to the long-term growth plans of the UAE. “More than a ‘stop-off ’ point, the United Arab Emirates is becoming a logistics hub that serves a vast population,” said Philippe Dauba-Pantanacce, senior economist at Standard Chartered Bank. “Apart from oil, the country’s central location on the global map is a natural asset that can be banked upon with certainty in the future.”
Safety 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.”
OTHER LOGISTICS NEWS STORIES IN OCTOBER 2009
OTHER LOGISTICS NEW STORIES IN NOVEMBER 2009
• Jafza International announced a revised plan for its ambitious development in North America, with the groundbreaking of phase one being scheduled for the first quarter of next year. • Wared Logistics formed a partnership with Preferred Freezer Services (PSF) to develop a network of 12 refrigerated warehouses, with Saudi Arabia and Egypt being selected for the first facilities. • BDP Project Logistics supported its Middle East growth by opening a regional office in Abu Dhabi, with plans to market its services to the oil and gas, construction and government sectors. • Momentum Logistics expanded its operations with a container wash and repair centre at the Sharjah Inland Container Depot (SICD). • Ehrhardt + Partner Solutions (EPS) launched a research study into logistics and warehouse solutions for the pharmaceutical sector. • The Supply Chain and Logistics Group (SCLG) hosted a series of workshops with Patrick Daly from Dublin-based Alba Logistics.
• Aramex conducted a groundbreaking ceremony for its warehouse facility at Dubai Logistics City, which is scheduled for completion in the first quarter of 2011 and will include a built-up area of 43,000m2. • CEVA Logistics continued its Middle East expansion with the launch of a 12,000m2 facility named ‘The Pyramid’ in Jebel Ali Free Zone South, which will operate as the company’s regional headquarters. • First Bahrain 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 enterprise (SME) market. • GAC revealed an agreement to bring the core documentation services of European firm Swiss Post Solutions to the Middle East. • CHEP Middle East opened its first consolidation centres in Bahrain and Oman to capitalise on growing demand for regional pallet services. • The Chartered Institute of Logistics and Transport (CILT) stated that its local attendance record was broken with a recent seminar in Dubai.
SILENT LEADER
Globelink West Star Shipping steps out of the shadows to celebrate its 20th anniversary as a logistics powerhouse
AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL
An ITP Business Publication
NEWS ROUNDUP 2009 Looking back at the most prominent logistics news stories in the Middle East
COMPANY PROFILES DECEMBER 2009 ISSUE 63
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
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS
Performance reviews with 80 leading institutes from the supply chain industry
DECEMBER 2009
Dubai World Central (DWC), a multi-phase development project that includes Dubai Logistics City and the forthcoming Al Maktoum International Airport, is “almost complete” according to Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation. Despite a number of hurdles in the past year, including the resignation of Dubai Logistics City’s chief executive officer Abdullah Al Qurashi, the 140 square kilometre complex has remained on track to launch operations by the summer of 2010, with the control tower at Al Maktoum International Airport almost complete and the runway, associated taxiways and other components “ready to go”, stated Al Zaffin during Dubai Aviation City Corporation’s participation at Dubai Airshow 2009.
ANNUAL REVIEW THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
6 DECEMBER 2009 | www.arabiansupplychain.com
OTHER LOGISTICS NEWS STORIES IN DECEMBER 2009 • Abu Dhabi-based Invest AD purchased a minority stake in Ekol Lojistik (EKOL) for US$74.5 million, which will fund a regional expansion for the Turkish logistics company. • Senior customs officials from the Middle East visited the DHL Express distribution centre in Bahrain to receive a demonstration of the logistics company’s security and satellite systems. • Toll Group expanded its Middle East operations with the acquisition of Dubai-based company Logistics Distribution Systems (LDS), which operates from a regional warehouse facility in Jebel Ali Free Zone. • Logfret was contracted to provide logistics support to the Al Sufouh Transit System Tranway project, which will include 11 tramways, a 10km track and 13 stations during phase one. • Etihad Crystal Cargo’s new A330-200 freighter made its maiden flight over France, where the aircraft manufacturer Airbus is based. • Santis HSE Group was awarded a contract to provide forklift training sessions for Abu Dhabi Airports Company (ADAC) employees.
Supply Chain and Transport Awards (SCATA) 2009
T
he third annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this year, with over 200 figureheads from the Middle East logistics industry in attendance. Hosted at the Mina A’Salam hotel in Dubai, the prestigious ceremony was organised in association with Materials Handling Middle East exhibition and featured 17 categories in total, which covered the entire spectrum of supply chain and transportation activities. “Since its inception in 2007, the Supply Chain and Transport Awards have emerged as a leading event for the Middle East logistics industry. Given the market challenges that our industry is facing on a global level at the moment, this was the perfect opportunity to remember those companies and individuals that continue to achieve excellence on a daily basis,” says Issa Baluch, CEO of Swift Global Logistics, who served his third term on the judging panel this year, alongside Captain Mansoor Ghafoor (CEO of STALCO Group and president of National Association of Freight and Logistics), Dr Kanak Madrecha (senior manager of Dubai World and founding member of the Supply Chain and Logistics Group), Cedwyn Fernandes (MBA programme coordinator at Middlesex University Dubai) and Sebastian Thomas (head of supply chain in ZAFCO). The panel also welcomed the addition of industry icons Salma Hareb (chief executive officer of Economic Zones World) and Ali Al Jallaf (vice president of Dubai Airports cargo unit). 8 DECEMBER 2009 | www.arabiansupplychain.com
“Award ceremonies in general are important in defining the benchmark for excellence and separating the outstanding achiever from the rest of the group,” continues Baluch. “They also provide recognition to the best performers in the field, while inspiring others to emulate their success.” Gulf Agency Company (GAC) scored an impressive hattrick at this year’s event, collecting the trophies for 3PL Service Provider of the Year and Corporate Social Responsibility (CSR) of the Year, in addition to Outstanding Achievement of the Year. Other winners included TNT for Express Logistics Provider of the Year, Unilever for FMCG Supply Chain of the Year, and Ras Al Khaimah Free Trade Zone for Industrial Area of the Year. Also continuing their winning streaks, Dubai Cargo Gateway was declared Air Cargo Hub of the Year, while Dubai Drydocks World was named Shipyard of the Year – making them the only companies that have won their respective categories for three consecutive years. “The standard of nominations at this year’s Supply Chain and Transport Awards was very impressive, highlighting the opportunities that are constantly being presented to ambitious individuals and companies in the Middle East logistics industry,” comments Walid Akawi, chief executive officer of ITP Publishing Group, which organised the event. “We look forward to 2010, when the SCATA ceremony will return once again to reward the industry for excellence.”
ANNUAL REVIEW 2009: SCATA AWARDS
SCATA 2009: WINNERS LIST LOGISTICS CATEGORIES Express Logistics Provider of the Year - TNT Express 3PL Service Provider of the Year - Gulf Agency Company (GAC) FMCG Supply Chain of the Year - Unilever
AIR CARGO CATEGORIES Cargo Operator of the Year (Commercial Airline) - Emirates SkyCargo Cargo Operator of the Year (Cargo Airline/Charter) - Cargolux Air Cargo Hub of the Year - Dubai Cargo Village
SEA FREIGHT CATEGORIES Port Authority & Terminal Operator of the Year - Gulftainer Shipping Agent of the Year - Rais Hassan Saadi (RHS) Shipping Company of the Year - Maersk Line Shipyard of the Year - Drydocks World, Dubai
JUDGE’S AWARDS Material Handling Provider of the Year - SPAN Group Technology Provider of the Year - Ehrhardt + Partner Solutions (EPS) Training & Education Provider of the Year - SP Jain Centre of Management Industrial Area of the Year - Ras Al Khaimah Free Trade Zone Corporate Social Responsibility Award - Gulf Agency Company (GAC) Outstanding Achievement of the Year - Gulf Agency Company (GAC) Hall of Fame Award - His Excellency Sultan Ahmed Bin Sulayem (Dubai World)
www.arabiansupplychain.com | DECEMBER 2009
9
35 million picks per day 40.000 users worldwide No. 1 solution of modern warehouse management Really satisfied with a second best solution?
Choose quality of the highest standard!
The pole position in modern warehouse management systems belongs to award winning LFS 400. The unrivalled combination of cost cutting software, in depth consulting experience and training knowledge has satisfied customers from all industries worldwide so far. To learn more about how to improve your warehouse management and benefit from modern warehouse planning and consultancy, please visit www.ehrhardt-partner.ae Selected references:
Ehrhardt + Partner Solutions collects the prestigious SCATA award as best Technology Provider and wins the Vocollect Voice Innovation award.
Ask for our regional case studies.
The Power of Innovation
Warehouse Management System LFS 400 Warehouse Planning and Consulting Radio Frequency Solutions Pick-by-Voice Solutions RFID technology
EPS – Ehrhardt + Partner Solutions DWC-LLC Internationally leading in warehouse logistics
Warehouse Modernisation
P.O. Box 7480 · Dubai, UAE Tel.: (+971) 4-36 39 76 7 · Fax: (+971) 4-36 39 76 8 info@ehrhardt-partner.ae · www.ehrhardt-partner.ae
Seminars, Trainings, Workshops
Made in Germany – present in Dubai
Material Flow Solutions
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
AIR CARGO EMIRATES SKYCARGO highest of any airline with a similar fleet makeup. During the 2008-09 financial year, Emirates SkyCargo carried 1.4 million tonnes of cargo, which was an improvement of 9.8% over the previous year’s 1.3 million tonnes, helping revenue to reach US$2.1 billion.
In general, how strong in the airfreight market in the Middle East at the moment?
PRADEEP KUMAR, SENIOR VICE PRESIDENT OF CARGO REVENUE OPTIMISATION, EMIRATES How much importance has Emirates placed on its airfreight operations in 2009? Cargo revenue contributes 19% to the airline’s total transport revenue, which is one of the
The Middle Eastern economies have remained quite buoyant during the global recession, thanks to the sustained high oil prices of 2007/08. We have actually increased our frequencies to cope with demand this year.
What makes your airfreight operations different from regional competitors? We have a vast network of 101 destinations around the world, which we serve from Dubai. In fact, with the launch of our São Paulo service in October 2007, we became the first carrier in the world to directly serve six continents
from a single hub. In addition, customers can benefit from our short connections times, young aircraft fleet and 43,600m2 Cargo Mega Terminal in Dubai.
What types of shipments are normally transported by Emirates SkyCargo? Everything from perishables, which accounts for around 25% of our total cargo, to live animals, outsized project cargo, electronics, garments, telecoms equipment, machinery, auto spares, courier mail and valuables items.
What are your predictions for the Middle East airfreight market in the coming year? 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 this region and our volumes are holding up. If stability continues through the last two quarters of this financial year, we are on track to exceed last year’s figures.
ETIHAD CRYSTAL CARGO INTERVIEW: DES VERTANNES, EXECUTIVE VICE PRESIDENT OF CARGO, ETIHAD AIRWAYS How has Etihad Crystal Cargo fared during the recent economic crisis? Despite the challenges of the global slowdown, Etihad has continued to expand its fleet and increase its connectivity around the world, which has supported the growth of our cargo operations. In addition, our product range has also been developed this year, with the launch of the Xpress2D service, which offers express to door delivery to Europe and North America.
Can you provide details on the volume of cargo that has been transported this year? Etihad Crystal Cargo experienced an increase in our air cargo volumes during the first six months of 2009, when we transported around 130,000 shipments, with a total volume of more than 100,000 tonnes.
How large is Etihad’s combined fleet of passenger and freighter aircraft? Currently, Etihad Airways operates 18 widebodied 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.
What destinations are served by Etihad Airways after your route expansion? The airline serves more than 40 destinations around the world at the moment and this number is constantly increasing. Additional cargo destinations and global charter flights are also served by a growing fleet of regional freighter aircraft. Currently, we provide a range of all-cargo-services to locations such as Chennai, Frankfurt, Khartoum, Kolkata, Milan, Mumbai, New Delhi and Zheng Zhou. www.arabiansupplychain.com | DECEMBER 2009
11
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
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, with a varied fleet of eight aircraft. It’s nickname as the ‘heavylifter 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
MIDEX AIRLINES
Marketed as the first cargo-exclusive airline in the United Arab Emirates, Midex Airlines commenced operations in 2008 and currently serves a total of seven destinations, including 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 bullish pace this year 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. “At this stage, it’s important for Midex to expand its presence at both regional and global levels,” he says. “This will be achieved by increasing the number of destinations we reach, developing our fleet and raising our investments in the sector.” Midex Airlines, which exhibited at the Dubai Air Show earlier this year, currently operates a fleet of six A300B4-203F (with a capacity of 45 tonnes) and one B747-200F (with a capacity of 100 tonnes). 12 DECEMBER 2009 | www.arabiansupplychain.com
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 guest speaker at this year’s Freighters’ World Conference in Barcelona, 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. “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,” adds Buhazza. “In just four years we have achieved so much and despite the global downturn, the future is looking bright,” he concludes.
OMAN AIR CARGO A long-standing veteran in the Middle East aviation industry, Oman Air has continued to invest in the development and expansion of its airfreight business, with one of the biggest highlights of the year being its IATA Operational Safety Audit (IOSA) renewal, which followed a five-day evaluation into cargo operations, ground handling, flight systems and aircraft maintenance. “Oman Air Cargo provides a world-class standard of cargo service and this year’s IOSA renewal has once again demonstrated our expertise in airfreight management,” explains Sherief Padiyath, general manager of Oman Air Cargo. Earlier this year, the local government raised its stake in Oman Aviation, the parent company of Oman Air, from 34% to 82%, investing approximately US$130 million in the company through a private placement. This will provide the foundation for ambitious expansion over the next four years, with a major restructuring and rebranding initiative, together with plans to double the size of its fleet and significantly increase its passenger and cargo routes. “Despite a global downturn in the cargo sector, Oman Air Cargo has enhanced its capacity utilisation and revenue with our fleet growth, while developing our global network with high-frequency services to 31 on-line and 41 off-line destinations around the world,” continues Padiyath. “We recently witnessed growth of 55% with our cargo uplifts in comparison to last year and this
figure is expected to further increase over the coming months, in line with our expansion plans and new route’s maturity.” To highlight the growth of its service portfolio, Oman Air Cargo also took part in the TransOman logistics exhibition this year, with a positive response being reported from existing and future clients. “There was plenty of interest from our participation in TransOman and we are exploring a range of business opportunities as a result,” concludes Padiyath. “It was perfect timing to support this very interesting period in our history.”
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
QATAR AIRWAYS CARGO
ROYAL JORDANIAN AIRLINES CARGO INTERVIEW: INGO ROESSLER, VICE PRESIDENT OF CARGO, ROYAL JORDANIAN AIRLINES How important is the airfreight side of business to Royal Jordanian Airlines? Cargo operations play an important role in improving the profitability of our passenger flights, while cargo charters help to leverage the freighter operations. Royal Jordanian Cargo’s handling facility is the main gateway for the majority of airfreight movements coming to Jordan and we will continue to invest in providing worldclass services, including e-freight.
Has the Middle East airfreight market performed strongly this year? As one of the fastest growing airlines in the world, Qatar Airways has invested a considerable amount of money to develop its cargo operations in the past year. The Doha-based 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 have also being ploughed into technology upgrades in 2009 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,” states Akbar Al Baker, chief executive officer of Qatar Airways.
The regional market has been relatively resilient in 2009. However, we have not witnessed the growth rates that were common in previous years. Iraq remains the exception, where efforts to re-build the country have triggered significant demand for both charters and scheduled services. Royal Jordanian has been the network leader to Iraq for many years, operating scheduled flights to Baghdad, Basra, Erbil and Suleymania, with more to follow.
considered a technology leader in the Levant area. Therefore we introduced a best-in-class cargo information system supplied by CHAMP Cargo Systems earlier this year. We are also working with IATA at the moment to join the e-freight initiative by early 2011. The technical infrastructure is available with forwarders and RJ, but some legislative issues are holding us back from becoming “early adopters” in 2010.
What types of shipments are normally transported by Royal Jordanian Cargo?
What are your predictions for the Middle East airfreight market in the next year?
Major exports from Jordan are vegetables and pharmaceuticals. Otherwise we move everything from automobiles to zebras.
The Middle East will remain a buoyant market for air cargo operations and achieve growth rates that are above world-average, which will benefit airlines such as Royal Jordanian. A strong recovery of the Iraq economy will further boost this growth, as will a greater level of liberalisation in the region as a whole.
What makes your airfreight operations different from regional competitors? Royal Jordanian has traditionally been
SAUDI AIRLINES CARGO COMPANY Saudi Arabian Airlines privatised its cargo operations earlier this year and, now an independent entity, the division has been renamed Saudi Airlines Cargo Company. With central facilities in Riyadh, Jeddah and Dammam, the company operates a fleet of Boeing MD-11 and 747 freighters to various destinations in Asia, Africa, Europe and the United States. It has also continued to use cargo capacity on the scheduled passenger flights of Saudi Arabian Airlines. “The strategy for Saudi Airlines Cargo Company in 2009 has included the expansion of our network in the Middle East and other markets around the world,” explains Fahad Hammad, chief executive officer of Saudi
Airlines Cargo Company. “In addition, we have continued to restructure and develop our information technology systems.” Over the past five years, Saudi Arabian Airlines has experienced an average growth of 5% in airfreight volumes, while its revenues exceeded US$560 million in 2008. Hammad believes the privatisation will allow this momentum to continue and lead to a series of new commercial alliances. “We are confident that Saudi Airlines Cargo Company will continue to increase its freight volumes, maintain its leading role in air cargo within the Middle East and overcome the challenges that have been presented by current global economic uncertainties,” he concludes. www.arabiansupplychain.com | DECEMBER 2009
13
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
EXPRESS
LOGISTICS
DHL EXPRESS
EMPOST
INTERVIEW: GARRY KEMP, DHL AREA DIRECTOR FOR THE MIDDLE EAST, NORTH AFRICA AND TURKEY How has DHL Express performed in the Middle East over the past year? Over the last 12 months, we have continued our focus on providing reliable, fast, efficient and secure solutions for customers in the Middle East and beyond. It’s been a challenging year though, as the economic difficulties arrived in the Middle East later than across Europe and the United States. Almost all businesses across the globe have been affected in some way by the economic crisis and many of those businesses are our loyal customers.
Have you adopted a particular approach to tackle the market downturn? We took the global economic crisis in our stride and focused our energies on logistical and operational process efficiency, as well as airline safety and standardisation. At the same time, we ensured employees were satisfied and able to perform at their best in 2009.
What factors have helped to improve your operational efficiency in the Middle East? The new infrastructure that was put into place in 2008, including our facilities in Jordan and Jebel Ali Free Zone, have made a positive impact on DHL’s service, both in the region and throughout the world. Due to the geographical location of Jordan, the new hub has improved our regional infrastructure and increased the transit speeds of goods travelling via road. The launch of Aerologic, a joint venture cargo airline of DHL Express and Lufthansa Cargo, in 2009 has also strengthened DHL’s aviation network. Our new B777F is now in operation connecting Bahrain to the European aviation network.
Have there been other focus areas for DHL during the global recession? Our focus on expediting and streamlining processes in 2009 was coupled with efforts to boost our safety standards in the region, which resulted in a number of milestones. For
example, DHL Aviation EEMEA earned IATA Operational Safety Audit (IOSA) certification, which uses internationally recognised quality audit principles to assess the safety of airlines. The entire team at DHL Aviation EEMEA, which is based in Bahrain, worked hard to achieve this certification and demonstrate our commitment to quality and safety.
With courier companies facing pressure to evaluate their service portfolio as a result of the global recession, Empost made a decision to revamp its global delivery services earlier this year, with a maximum discount of 50% being introduced for express transportation to more than 200 destinations around the world. “Since we recently started a major expansion of international services, Empost wanted to reward our customers with a substantial rate reduction,” explains Sultan Al Midfa, CEO of Empost. “This offer was part of a new strategy to expand our customer base through value additions and upgraded standards.” Under the revised service, customers can send items of non-commercial value, such as letters, books and brochures, for time-definite and customs cleared door to door delivery, with shipments being collected by courier staff without extra charges. “We are fully focused on emerging stronger after the recent slowdown that has affected every sector, every industry,” Al Midfa adds. “We believe these new rates will help to boost our relationship with customers.” To keep its customers updated on service upgrades, Empost also introduced a number of functions to its website in the summer, including shipment tracking, rate calculator, online booking and invoice printing. “We have adopted the latest technology for our website and will launch several more online offerings in the near future,” concludes Al Midfa.
Any other highlights from 2009? DHL Express received the ‘Best Company to Work For’ award in Saudi Arabia earlier this year in recognition of employment practices and high working standards for employees. Nour Suliman, general manager of DHL Express KSA, was presented the award by Prince Faisal bin Salman, chairman of Saudi Research and Marketing Group, during a special ceremony in Riyadh. www.arabiansupplychain.com | DECEMBER 2009
15
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
FEDEX
INTERVIEW: HAMDI OSMAN, SENIOR VICE PRESIDENT OF FEDEX IN THE MIDDLE EAST REGION How do you think the global recession has impacted Middle East logistics companies? The situation has led to tough times for companies in this sector, from small to medium sized businesses and even the big players. However, the reason some have faced problems or shut their operations is because somewhere or somehow they failed to pay attention or listen to their customers and this is something that FedEx has done very well over the years. We have been a good model for other companies because we are dedicated to the needs of customers.
FedEx was awarded by Sheikh Mohammed Bin Rashid Al Maktoum this year. Was that a major highlight in the past year? Yes definitely. We were honoured at the Sheikh Mohammed Bin Rashid Al Maktoum Business (MRM) Awards in the Corporate Social Responsibility (CSR) and Supply Chain Excellence categories. The entire team was very proud to be recognised for this contribution to the market, because FedEx always seeks to offer the best in flexible and innovative solutions.
the-art desktop tracking tool to provide customers with real-time visibility on the status of their shipments. Available in the United Arab Emirates, Bahrain and Kuwait, FedEx Desktop marked the latest advancement in our commitment to customer innovation, with functions such as a ‘drag and drop’ feature, which allows customers to drag details of their shipment onto their desktop, or the ability to give shipments ‘nicknames’ to help with tracking purposes. Users that don’t want to see the programme on their desktop can let the application run in the background and receive critical alerts via a pop-up.
FedEx also hosted its first Grand Prix Experience in Dubai this year. What was the purpose of this event?
Earlier this year, we pioneered a new, state-of-
This was held towards the end of the year and proved a great success. It provided our guests with the opportunity to test their driving skills in a range of automotive challenges, such as karting, high-speed taxi-ride driving and obstacle course tests. Teamwork, speed and a relentless commitment to be the best are core FedEx values that were also present at this inaugural event.
Have new services been introduced by TCS Express in the past year?
What are your future predictions for the Middle East courier market?
Yes. Dubai Metro has become a reality in 2009, thanks to the visionary leadership of the emirate. As a result, we have introduced this new transportation mode to our delivery network for packages and other items, with a dedicated team of On Train Couriers (OTCs) being appointed. This will ensure a faster delivery for customers and also reduce the fuel emissions of TCS Express.
The market has a huge amount of potential in the Middle East and other emerging markets. I believe it will continue to develop at full pace as soon as global trade gathers momentum.
Can you provide an example of a regional innovation that FedEx has introduced for Middle East customers in 2009?
TCS EXPRESS INTERVIEW: MAZHAR AYUB KHAN, HEAD OF INTERNATIONAL FREIGHT AND LOGISTICS AT TCS EXPRESS How do you think the Middle East logistics industry has fared in 2009? The global recession had a major impact on logistics operations in the Middle East, especially Dubai, and while the initial panic is starting to fade away, it will take years to bring the confidence back to this shattered market. In particular, the crisis has taken its toll on the bottom line of express mail and courier companies, and while some have made claims about marginalise growth, the results have been grim for several others in the industry.
What challenges have recently been faced by TCS Express in the Middle East? It’s been a year of struggle, although we benefited from an early reaction to market challenges, which helped to improve our bottom line by 5% from January to September 2009. In addition, we opened a new outlet in the Deira district of Dubai to facilitate our growing customer base. 16 DECEMBER 2009 | www.arabiansupplychain.com
Any other highlights from 2009? TCS further supported our Social Corporate Responsibility (CSR) initiatives this year by hosting students that are learning about trade and transport from international universities and business schools. Our sixth batch from France recently completed their research work and earned their certificates for placements. There are very few logistics companies in this region that have the capacity to offer vocational trainings for international students and luckily we are amongst the only ones in the Middle East to date.
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
TNT EXPRESS
TNT Express has reported a limited impact from the global recession in the Middle East, with country manager Bryan Moulds hailing its regional business performance as “better than expected”. The company, which was named Express Logistics Provider of the Year at the Supply Chain and Transport Awards (SCATA) 2009 in Dubai, has benefited from recent investments in the Middle East, including the expansion of its road network and launch of a dedicated US$11 million facility in Jebel Ali Free Zone. As a result, it has secured a number of lucrative contracts in the past year, including a twoyear agreement worth $1.6 million per annum to provide Volvo Middle East with express distribution services. Other significant wins have included Dubal and Hewlett-Packard. “Like everyone else in the world, we braced ourselves for a hit this year, but we are glad to say it never came,” states Moulds, who heads TNT’s operations in the United Arab Emirates. “Logistics, like any other service provider, is traditionally one of the first to be reviewed. But it seems that stable volumes, combined with a few great contract wins, have kept us on our growth trend in the region. In a way, the recent economic challenges have led us to create a stronger, wider and more robust operation.”
UPS Despite a slowdown in the courier sector, United Parcel Service (UPS) managed to boost its market share in the Middle East this year by launching a range of express delivery solutions. In particular, its domestic express service was introduced inside the UAE and 15 additional countries across Europe, Africa, the Middle East and Latin America, enabling shippers in these countries to consolidate their package delivery services with one carrier to eliminate multiple shipping processes while reducing their overall costs. “Every industry or market is unique and has its own challenges, which can hinder the smooth flow of work. In order to effectively address these issues in 2009, we concentrated on providing flexible delivery solutions that are in tune with the demands of our customers businesses,” explains John Tansey, general manager of UPS in the UAE. “With the domestic express service, customers are able to use the same technology platform for tracking, visibility and billing of domestic and international shipping.” In the midst of a challenging economic environment, UPS also continued to pioneer the concept of social corporate responsibility in the logistics industry, with donations being made to Al Noor School for Special Needs and 88 - Making a Difference,
a non-profit organisation that promotes sports and physical activity amongst children. In October, UPS also announced a multi-year, multi-million dollar initiative to improve the capabilities of relief organisations to respond to global emergencies. The effort, which will involve both UPS and The UPS Foundation, begins with a commitment of US$9 million over the next two years in the form of substantial financial grants, in-kind services and the deployment of logistics expertise. “As part of our continued commitment to sustainable business practices, we are also seeking ways we can contribute to a cleaner environment,” continues Tansey. “We are looking, for example, to implement existing solutions and best practices from our business units and operations in North America and Europe into our Middle East operations.” The highlight for UPS this year was the announcement that Dubai had been selected as the home-base for its latest joint venture, which has been launched to coordinate the growth of the company’s express package, freight forwarding and logistics services in the Middle East, Turkey and parts of Central Asia. Although specific terms of the agreement were not disclosed, UPS will assume a majority stake in the project and has acquired the small package operations of Unsped, its existing service agent in Turkey. “Demand for 3PL providers is increasing in the region and this trend is likely to continue next year, as companies seek efficient means of transport through trusted carriers,” concludes Tansey.
www.arabiansupplychain.com | DECEMBER 2009
17
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
THIRD PARTY
LOGISTICS AGILITY
Over the past 30 years, Agility has emerged as a leading global provider of integrated logistics solutions and 2009 marked another breakthrough year for the company, with more than 37,000 employees and over 550 offices now in place throughout the world. “This has been an interesting year in the context of the wider global financial crisis impacting on industries and markets throughout the world, including that of logistics,” states Elias Monem, Agility’s CEO in the Middle East and North Africa. “However, we have defied the downturn and posted an estimated 5% increase in operating profits for the first six months of 2009.” Agility has been very active with infrastructure developments in the Middle East this year, including the completion of a 60,000m2 facility in Jebel Ali and 40,000m2 warehouse in Riyadh. The company also signed an MOU with GWC in Qatar to further strengthen its local and regional division, which was more than justified considering its major contract to provide RasGas with supply chain solutions in the country. “We have a strong balance sheet, which will allow us to navigate through these challenging times,” adds Monem. “Over the next few months, we will be reviewing our plans and new external opportunities to determine if the timing is right to accelerate our efforts or take advantage of new market conditions.”
AL-FUTTAIM LOGISTICS Established in the 1980s, Al-Futtaim Logistics has become a regional provider of supply chain solutions with a truly global reach, offering a range of supply chain solutions that extend to freight management and customs brokerage, warehouse and inventory management, domestic and international transportation and value-added services. “We believe in continuous improvement and that’s the reason Al-Futtaim Logistics is now recognised as one of the leading logistics service providers in the region,” states Tom Nauwelaerts, head of Al-Futtaim Logistics. “More than 700 people are currently employed by the company and we operate warehouse facilities totalling 2 million square feet, together with a transport fleet of over 200 vehicles.” Growing so strongly has posed many challenges in 2009, according
to Nauwelaerts. “During the past year, where growth has been moderate, we have taken this opportunity to catch up and prepare for the next level of growth in the UAE,” he says. “We have re-organised our company structure and re-aligned our capacity and underlying infrastructure. A lot of effort has gone into finding new ways of minimising our costs and increasing the efficiency of our operations.” Nauwelaerts is a strong believer that the logistics business is all about having the right people. As a consequence, he has focused on making sure the company attracts and retains the best people in the market. “In particular, training and development is considered as essential to enhancing customer satisfaction and efficiency of our operations,” he says. “In addition, Al-Futtaim Logistics has been developing along three main axes, being the build of new warehousing, the expansion of our in-house transport fleet, and the establishment into new regions where the wider Al-Futtaim Group has grown in the past years.”
www.arabiansupplychain.com | DECEMBER 2009
19
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
AL MADINA LOGISTICS
AL MAJDOUIE SYED MUSTAFA, VICE PRESIDENT OF ALMAJDOUIE LOGISTICS What has the global recession impacted Al Majdouie Logistics in 2009? Logistics has been affected around the world by the economic downturn, including the Middle East. However, Almajdouie has qualified and experienced people that can identify market opportunities, regardless of wider challenges. Lots of companies are screaming about the recession, but others, including our company, take a pause to evaluate themselves and consider the situation as a chance to progress.
At a time when the global recession has raised alarm bells for the logistics industry in developed markets such as Europe and the United States, it seems the Middle East is still considered a viable region for market growth in the coming years. In particular, the Sultanate of Oman has been identified as a hidden gem for the regional freight sector, with a recent report by Business Monitor International (BMI) forecasting an average increase of 4.5% per annum between 2006 and 2010, which has already proved beneficial for homegrown players such as Al Madina Logistics Services (AMLS). The company has grand ambitions to establish a warehouse network throughout the Sultanate, which will measure 275,000m2 in total and host a complete range of supply chain solutions, including storage, transportation and consultancy services. “We’ve reached a fundamental stage in our development strategy. In addition to evolving the AMLS service portfolio to meet customer needs, we’re laying the foundation for short-term and long-term growth,” explains Mahmood Sakhi Al Balushi, chief executive officer of AMLS. Although the warehouse developments have been identified as the centre pieces of the company’s development strategy, they will be complemented by a major fleet expansion, technology overhaul and entry into other Middle East markets within the space of a year. “There are different aspects to our planned development, but everything is connected and will be conducted in a seamless manner,” adds Al Balushi. “For example, our coverage was extended to the entire GCC region in the fourth quarter of 2009, with our fleet being increased to over 300 vehicles. A major technology investment was also confirmed this year to bring each of these operations together.”
20 DECEMBER 2009 | www.arabiansupplychain.com
What factors have supported your recent growth as a logistics service provider? We have fuelled our expansion with a number of joint ventures, including a Riyadh-based project with Sinotrans and also Maxx Logistics in Dubai. That project has been particularly affected due to economic crisis, but its customer base has steadily grown and I believe it will experience a considerable amount of success next year.
What has been your focus for 2009? Traditionally, Saudi Arabia has been the
strongest market for our heavylift business and we have maintained a market share of between 67% to 93% for last nine years. However, we now believe that our market share should not exceed 60% in this country, so that the focus can shift to other parts of the region, with major contracts recently being secured in Abu Dhabi, Dubai and Bahrain.
How has the regional market changed since Al Majdouie started operations? When we started, local companies did not understand the concept of outsourcing their supply chains. We had to education the market. However, businesses are more educated now and understand the importance of logistics.
ARAMEX Aramex has crossed a number of milestones in 2009, including the launch of several new products and services, the introduction of new locations into its network, and a trail of recent partnerships and acquisitions. The results from this action-packed year have spoken volumes for the logistics company’s success, with a 24% increase in net income for the first nine months of 2009, compared to the same period in 2008. “These financial results have been a testament to our business model, our resilience and our continued ability to perform well in challenging economic conditions,” says Hussein Hachem, Gulf CEO of Aramex. “Although the financial performance has been going from strength to strength, the key drivers of our success continues to be the entrepreneurial spirit of employees and the flexibility of our multi product offering.” Recent product launches have included Value Express, an economical solution for express shipments within the Middle East, North Africa and South Asia. The company
also expanded its delivery channels for local express services in the United Arab Emirates with Dubai Metro being introduced into its transport network. Local operations were also boosted by the ground breaking of Aramex’s new warehouse in Dubai Logistics City, which is scheduled for completion in the first quarter of 2011. “This facility will further develop our capacities in the region and we are also looking at expansion opportunities in emerging markets, especially in Africa and Central Asia in the coming year.”
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
CEVA LOGISTICS
BARLOWORLD LOGISTICS South Africa’s Barloworld Logistics made a grand entrance into the Middle East logistics industry in 2008 by acquiring Swift Freight International, a leading regional freight forwarding company. Since the business deal, Warren Erfmann, CEO of Barloworld Logistics in the Middle East and Asia, has taken the reins to steer the company towards future growth. “This has been a very exciting and challenging year. Although there is still much to be done, it is encouraging to see the progress that has been made with Barloworld Logistics in the Middle East, with re-branding activities, restructuring and various operational enhancements to
streamline operations and enhance services according to the Barloworld Logistics standard.” Swift Freight recently marked its 20th anniversary and Erfmann is adamant that even under Barloworld Logistics management, their offices will continue to focus on areas that made the company one of the leading freight forwarders in the region. “A major reason Barloworld Logistics acquired Swift was its extensive African network. Swift went into Africa when the continent was experiencing turbulent times, with a strategy and a lot of passion. It has been a pioneer in Africa in many ways, being one of the first companies in the UAE to see the huge potential of the continent,” he states. “The fact that Swift always had a clear strategy for Africa, with Dubai being used as a hub to facilitate trade, has without doubt helped the company to be a market leader on this trade lane. Now, 20 years later, Swift continues to thrive in the African market, which is a culmination of many years of extremely hard work and gritty determination.”
CEVA Logistics has a network of 19 offices in the Middle East and North Africa (MENA), with plans to invest US$800 million for a major regional expansion. Part of this budget was allocated for the launch of its 12,000m2 regional headquarters in Jebel Ali Free Zone earlier this year. “Our customer base has significantly expanded in the Middle East over the past year and we’ve experienced strong demand for the oil and gas, industrial, automotive, fast moving consumer goods (FMCG) and technology sectors,” says Gianfranco Sgro, president of CEVA Logistics in South Europe, Middle East and Africa. “The publishing market is also emerging, especially for books and magazines in countries such as the UAE and Saudi Arabia.”
I N T E R R O L L C A R TO N F LOW W H E E L F LOW 31 May - 2 June 09 Stand MH 414
Pallet Flow LIFO
Pallet Flow FIFO
W W. I
TE R R O
LL.C O
N
M
W
INTERROLL CORPORATE ART 앫
• Easy to install: boltless beds • Strong track: variable wheel pitch allows reinforced wheel density only where necessary
• Excellent flowability: gives reduced slope • Safe: no sharp edges
Interroll Fördertechnik GmbH · Höferhof 16 · 42929 Wermelskirchen · Germany Tel. + 49 2193 2 31 27 · Fax +49 2193 2 31 22 · b.caliskan@interroll.com · www.interroll.com
Tubular modules
www.arabiansupplychain.com | DECEMBER 2009
21
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
DAMCO INTERVIEW WITH ROLF HABBENJANSEN, GLOBAL CEO OF DAMCO Can you provide a backdrop to this year’s merger of Maersk Logistics and Damco? Basically, the A.P. Moller-Maersk Group made a decision 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.
To what extend 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 Oman. 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, the entire spectrum of services will be operated under Damco.
How important is the Middle East to the global operations of Danzas? The Middle East is one of the most dynamic regions in the world and has been recognised as a leading hub for logistics operations by a number of different industries, including the life science, automotive and technology sectors. Danzas and its parent company Deutsche Post World Net are committed to providing our customers with the best possible service in this region to help support their growth aspirations. This is driving our investment in new infrastructure across the Middle East.
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-tonone. The only international player that comes close would be Agility. So yes, the Middle East is important, although our presence could be stronger and we definitely have high expectations for developing here in the future.
DB SCHENKER How has this investment been spent? In November last year, we opened a 80,000m2 warehouse in Dubai’s Jebel Ali Free Zone, which is the largest of its kind in the Middle East. The facility has been valued at approximately US$50.4 million and includes a built-up area of 54,000m2. It is fully airconditioned and has been equipped with world-class security infrastructure, which will be certified under the Technology Asset Protection Association (TAPA) guidelines.
Which industries are you targeting with this warehousing facility? Our primary market is the pharmaceutical industry, since we have experienced a growing amount of demand from this sector in the Middle East. The facility has cold chain functionality to better serve the unique requirements of the healthcare market. A number of value-added services will also be provided, such as labelling and kitting.
Any other highlights from this year? Danzas recently opened an office at the Dragon Mart retail complex in Dubai and had 50 of our Asia-based customers attend a special launch ceremony at the facility. We have also spent a lot of time in looking for the right employees and actively promote the Middle East as a place where we want to develop people’s careers. We are aggressively going through our global network to attract the right sort of talent to this region.
22 DECEMBER 2009 | www.arabiansupplychain.com
We have been affected, although there has been a level of recovery and our key objective is returning to growth in the coming months.
How important is this region for Damco?
DANZAS INTERVIEW: ERIC PILLING, COUNTRY MANAGER OF DANZAS
Has the recession impacted your growth?
DB Schenker continued its Middle Eastern expansion with the launch of Schenker Saudi Arabia this year, which will focus on warehousing and transportation services in the Kingdom. The company has previously been represented by a network of partners in Saudi Arabia, but opened a separate entity on 1st March 2009, with a central office in Riyadh and additional facilities in Dammam, Jeddah and Al Jubayl. “Schenker Saudi Arabia is fully integrated into DB Schenker’s worldwide network and offers a full range of logistics services, with a major focus on the project logistics business,” says Dr Detlef Trefzger, member of Schenker AG’s management board for contract logistics and supply chain management. “This is one of the most interesting growth markets for global network and logistics activities and there are plans to set up other national companies and cooperation agreements in order to further deepen and expand the business.”
350 purchase orders a week. 50 hours of staff time.
How about a solution with no loose ends?
A major U.S. apparel retailer needed an efficient way to manage international purchase orders. It had been using a cumbersome manual process that combined paper, scanner, fax, and email—one that ate up 10 hours of every business day. Using SeeChange®, the online, on-demand portal from APL Logistics, the company is now directly linked with overseas vendors. POs are entered electronically. Vendors receive them in a format most useful to them—paper, electronic or digitized. Automated alerts signal every change and every transaction is confirmed, so nothing gets lost along the way, including valuable time. By constantly finding a better way, we help global manufacturers and retailers speed their goods to market and reduce inventory costs. It’s our business to keep your business moving. Around the clock, around the world. www.apllogistics.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
GAC LOGISTICS Earlier this year, GAC expressed a “quiet confidence” that its global empire of shipping, marine and logistics services would experience a limited impact from the continued recession. Now, with 2009 drawing to an end, the Middle Eastern company maintains its stance and believes a market recovery is around the corner. “GAC has developed a diverse service portfolio, and built up strong customer base which put us in good stead,” states Bill Hill, group vice president, GAC Logistics. “It is important that we stick to our strategy and not compromise on service standards. We stay competitive by improving the operational efficiency. We also stay close to clients, understand their predicaments and offer cost-effective solutions to help them weather the storms of the economic slump.” Several clients had enhanced their partnership with the 3PL provider this year – testament to their confidence in GAC’s services. These include pharmaceutical distributor Zuellig Pharma, which renewed its decade old relationship with GAC, and paediatric nutrition company Mead Johnson, which appointed GAC to handle its Philippines/Thailand trade, in addition to its 3PL requirements in Thailand. GAC also maintained its leadership in special events logistics, handling concerts for the likes of Coldplay and Duran Duran, while it also launched GAC Sports Logistics, which lent its expertise to the MotoGP in Qatar and the International Boat Show in Bahrain. “These projects have all contributed to our success,” says Hill. “It shows that we take a long term approach to business, and continue to invest and expand to meet the requirements of customers.”
24 DECEMBER 2009 | www.arabiansupplychain.com
GEODIS WILSON SASCHA GEIKEN, UAE MANAGING DIRECTOR OF GEODIS WILSON Can you summarise Geodis Wilson’s position as a logistics service provider? Geodis Wilson is part of the Geodis Group, which has around 26,000 employees in total, spanning 12 countries around the world. We’re currently ranked as a top five player in the European logistics market.
How important is the Middle East as a market to your global operations? The region has emerged as a popular location for supply chain activities and we have selected Dubai as a strategic hub for both contingent markets and door-to-Africa shipments. More importantly, the emirate has also become one of the three major sea and air cargo hubs within our network. To reinforce this development, a number of UAE management appointments were announced this year, including my position as managing director for operations.
What are your primary objectives as managing director of the company? I am based at Geodis Wilson’s regional headquarters in Dubai with responsibility
for customer relations in the Middle East. In addition, I will overlook the long-term growth of our freight management and supply chain services, with a team of around 70 employees in Dubai and Abu Dhabi.
How do you plan to develop your regional operations in the coming years? The UAE, Kuwait and Saudi Arabia are important markets and we will continue to develop the best platform to support the needs of customers. We are looking into new offices in Abu Dhabi and Saudi Arabia, as well as strengthening our existing office in Kuwait.
GLOBAL SHIPPING & LOGISTICS (GSL) The current slowdown in the logistics sector is the first that Global Shipping & Logistics (GSL) has encountered since its launch in 2006. Until now, the sector has remained a lucrative playground for 3PL companies, with growing demand for warehousing and transportation services throughout the Middle East. However, these glory days have been painfully jeopardised by the global recession and while the market has not crashed, the majority of logistics companies have adopted a cautious approach towards development plans. In complete contrast, the recent expansion of GSL’s warehousing complex in Dubai Investment Park has proved that it’s business as usual for the relative newcomer, which has captured a sizeable share of the UAE’s market for temperature controlled and cold storage. “The expansion was necessary because our initial facilities were operating to full capacity and demand was continuing to increase,” says Khalid Al Shirawi, executive director of GSL. “In response, we decided to double our warehousing size in phase
two and the space has almost been booked already. The response is truly overwhelming and our thoughts are quickly turning to a third phase of development, which will commence next year and should be completed in 2011. We are also contemplating an expansion into neighbouring countries, because clients are asking for our business model to be brought into other markets in the region.”
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
GLOBELINK WEST STAR SHIPPING
A limited number of companies have experienced the Middle East logistics industry’s roller coaster of highs and lows in the past 20 years. However, launched in October 1989 - and celebrating its second decade of operations this year - Globelink West Star Shipping has emerged as a veteran trading house in the region, with plenty of experience in succeeding during the good times and the bad times. At the helm of this remarkable journey is Martin Aranha, who launched West Star Shipping in the late 80s with ambitions to create a leading specialist in shipping, LCL groupage and freight forwarding. Like many of its peers, the dream venture started with humble beginnings, mainly consisting of three employees working around the clock to increase its brand presence, develop a competitive advantage and receive acceptance from both customers and vendors. The goals might have seemed ambitious, but their relentless efforts paid off, with the company now employing over 540 people in the United Arab Emirates,
supported by a network of offices throughout the country and turnover of US$165 million in 2008. “I guess we are a perfect example of the Dubai dream,” laughs Aranha when questioned about this success story. “It’s been a steady process though and we have continuously grown over the years to reach our current position as market leader.” Globelink West Star Shipping has a central headquarter in Bur Dubai, with supporting offices and warehouse facilities in Jebel Ali Free Zone, Dubai Cargo Village, Dubai Airport Free Zone, Al Quoz Industrial Estate and Dubai Investment Park, in addition to Sharjah and Abu Dhabi. The most recent addition to this network is a flagship warehouse in Jebel Ali Free Zone South, which was inaugurated in June 2009, featuring 96,000 square feet of warehouse space and 12,000 square feet of fully-covered outdoor storage. “The opening of this facility was another milestone in our history,” explains Aranha. “It’s only been a couple of months, but the business from this facility has already exceeded our expectations and received a warm response from the market.” A further expansion of the company’s warehouse network is planned in the coming year, including a soon-to-be-opened facility in Kuwait, followed by the Kingdom of Saudi Arabia and Qatar. In addition, investments will continue to be ploughed into its home market in the United Arab Emirates. “Our office in Abu Dhabi has been growing by leaps and bounds, so we plan to launch a facility in the emirate. We have also booked for a shared forwarders warehouse (SFW) in the Dubai Logistics City project, which is very exciting for our development.”
HALA SUPPLY CHAIN SERVICES (HSCS)
Hala Supply Chain Services (HSCS) has been bursting with activity in 2009, with a regular series of announcements being reported throughout the year. Amongst the highlights was a partnership with technology companies Psion Teklogix and SNS, the launch of its Saudi Arabian Supply Chain Intelligence Report 2009, and a contract to design and project manage the construction of a 15,500m2 logistics complex for a tyre manufacturer in Jeddah. “Our marketplace is changing fast due to high levels of growth and the proactive efforts made to transform the economy,” explains Husam Al-Saleh, general manager of Hala Supply Chain Services. “We have uniquely positioned ourselves to help clients improve their supply chains and achieve sustainable competitive advantage. Our ability to grow is in proportion to our ability to create value for our clients in these challenging circumstances.”
KUEHNE + NAGEL WERNER KLEYMANN, MIDDLE EAST MANAGER OF KUEHNE + NAGEL What range of services does your company provide to customers in the Middle East? We offer the full range of Kuehne + Nagel’s services, including contract logistics, seafreight, airfreight and overland transport, as well as services for the oil and gas industry and project forwarding. We are also well versed in niche products, such as hotel logistics, humanitarian relief and marine logistics.
How strong is demand for 3PL services? Demand has remained strong and from our
side, if there has been an upside to the global situation, it’s that the customers are now more interested in the overall savings that can be made as opposed to a few dollars on international transportation.
What are K+N’s local development plans? Recent developments include the purchasing of our JV partner’s stake in Saudi Arabia and a major new warehouse in Dubai Logistics City, which offers us with a platform to provide customers with distribution services across the region and drastically reduce lead times. Our future strategy will involve further investments across the Middle East region.
www.arabiansupplychain.com | DECEMBER 2009
25
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
MAJAAL
MODERN FREIGHT COMPANY (MFC) NICK TROTT, GENERAL MANAGER, MODERN FREIGHT COMPANY (MFC) When did Modern Freight Company (MFC) first establish its operations?
First Bahrain recently launched Majaal, its latest subsidiary that is being marketed as the first logistics company in the Middle East to focus on the small to medium enterprises (SME) market. The venture was unveiled during a special ceremony at the Ritz Carlton Bahrain Hotel in October 2009 and will operate from a US$45 million logistics complex at Bahrain Investment Wharf, in close proximity to Shaikh Khalifa Port. “Majaal will offer secure and cost effective storage solutions, tailored specifically to meet the needs of the small to medium enterprises (SMEs),” states 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.” 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.
Our operations commenced in Dubai over 30 years ago as a liner agent, but we have since transformed into one of UAE’s leading logistics companies, with a central headquarter and three warehouses in Jebel Ali Free Zone, together with offices in Dubai, Sharjah, Abu Dhabi and Doha.
How has the company performed during the global recession in 2009? Like all companies in the industry, MFC has been affected by the crisis. However, we have been able to weather the storm very successfully due to the diverse nature of our business activities. With the slowdown in cargo moving by sea and air, it has been the logistics division where MFC has fared better than many local Dubai companies. In fact, our container depot operation has seen an excellent growth during the year, not just from the local clients, but from clients abroad. However, 2009 has not all been about business growth. It has been a period to reflect on improving the way in which MFC conducts business.
What have been the highlights of the year in terms of regional operations? MFC has procured more warehousing capacity in Jebel Ali Free Zone to cater to the needs of our clients. In addition, we recently installed solar panels at our new canteen and prayer facility in Jebel Ali Free
MOHEBI LOGISTICS Despite an influx of international players in the Middle East logistics industry, the region has produced a growing number of ‘home grown’ success stories too. The likes of Aramex, Gulf Agency Company (GAC) and Agility have grown into industry heavyweights, competing with come of the biggest names around. Of course, it’s taken years for these logistics powerhouses to establish their brand names within the industry, posing a serious challenge for newcomers to match their impressive positions in the marketplace. However, it’s a challenge that Dubai’s powerful Mohebi family has taken with full confidence, following its Dhs1 billion (US$272 million) investment to launch a third party logistics company in 2007.
26 DECEMBER 2009 | www.arabiansupplychain.com
“We want Mohebi Logistics to become one of the region’s biggest supply chain companies and already have a solid track record with more than 70 multinational brands, including McDonald’s, Nestle, Kimberly Clark, Danone, Compass and many others,” explains Mohammed Mohebi, founder and CEO of Mohebi Logistics. “Moving forward, we have continued to promote the brand in 2009, including a largescale participation at the recent SITL Dubai logistics exhibition. This was particularly useful as a platform to support our development ambitions for outside the Gulf region, since the event attracted a range of multinational visitors and exhibitors. We received a number of promising leads as a result.”
Zone. This will not only reduce costs quite significantly, but will also help to reduce our carbon foot print. We did not stop there. Being a quality driven company, MFC is now moving towards the health, safety and environment accreditation of ISO 14001 and OHSAS 18000. We have already trained our 250 staff and commenced the full risk assessment, which should result in accreditation by 2010.
What are your predictions for the company in the coming year? It was almost impossible to predict the events of 2009 and 2010 may be equally as difficult. However, with us continuing to diversify our business activities and also concentrating on our highly successful core competences, we should continue to see our figures grow over the coming year.
?dj[hdWj_edWb JhWZ[ <W_h \eh CWj[h_Wbi >WdZb_d] ?djhWbe]_ij_Yi
/ # '' <[X (&'& r :kXW_ ?dj[hdWj_edWb 9edl[dj_ed ;n^_X_j_ed 9[djh[ mmm$Y[cWj#c[$Yec BZX]Vc^XVa =VcYa^c\ LVgZ]djh^c\ IZX]cdad\n VcY Ldg`h]de :fj^ebZci EVX`V\^c\ VcY DgYZg E^X`^c\ :fj^ebZci AdVY^c\ IZX]cdad\n :ci^gZ HnhiZbh [dg BViZg^Vah =VcYa^c\ IZX]cdad\n >cigVad\^hi^Xh Ä HnhiZbh VcY Hd[ilVgZ HZgk^XZh VcY DjihdjgX^c\
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
MOMENTUM LOGISTICS Since its launch in October 2008, Momentum Logistics has continued to establish itself as an emerging logistics service provider in the Middle East, offering a range of integrated services that encompass transportation, freight forwarding, warehousing, logistics cities and container repair services. “We have made a considerable amount of progress in developing our regional presence this year,” reports Matthew Derrick, general manager, Momentum Logistics. “Our freight division has established a global network of agents, assembled a team of experienced professionals and attracted over 50 new clients. At the same time, our transport division has completed the re-branding of equipment to display Momentum’s distinctive green livery and our fleet has increased to over 120 units.” The development of Momentum’s logistics cities has also continued in full swing, with the levelling of the seven million square foot site in Al Saja’a (International Logistics City) now complete and work underway on the perimeter road network. The construction of twelve new warehouses at Sharjah Inland Container Depot (SICD) is also complete, while work on a further twelve warehouses is underway and due for completion in the second quarter of 2010. “I am very pleased with the progress Momentum has
RSA LOGISTICS
made during these challenging times. There is no doubt that these key achievements are the result of the dedication and commitment of our valued team and the continued support of clients,” says Derrick. “We will continue to focus upon growth in the future. The freight division will open a new office in Abu Dhabi and Dubai before the end of 2009, and the transport division will also launch a new operation in Kurdistan before the end of this year,” he concludes.
RHS LOGISTICS Although an imminent recovery from the global downturn could be misconstrued as wishful thinking, a number of logistics players have started to look back at their pre-recession development plans for the Middle East in recent months. Of course, growth has always been on the horizon for RHS Logistics and despite a contraction in volumes during the financial crisis, its general manager Richard Bell has remained confident about securing business throughout the region. “Demand has continued to increase for providers of quality services this year,” he maintains. Operating from 50,000m2 of land in Jebel Ali Free Zone, the company has over 30,000m2 of warehouse space at its disposal, while the remaining area has been utilised for the open storage of containers, oil field supplies, machinery, large project cargo, and a variety of different vehicles. “We cut across all industry segments,” says Bell. “However there is a common theme amongst the companies using our services. Instead of focusing solely on the storage solution, each customer wants a 3PL that offers added value and ongoing support.”
By developing its core competencies in 2009, the company has ambitious growth plans for the future. “We’re looking to expand our infrastructure in the next year,” confirms Bell. “We have entered final negotiations to purchase a 30,000m2 facility in Jebel Ali Free Zone South and I also think Dubai Logistics City holds a lot of appeal.”
Dubai Logistics City has received a flattering response from the global logistics industry since its launch in 2005, with the likes of Kuehne + Nagel, Panalpina and Deutsche Post DHL coming to the fore as early-bird investors, each racing to complete their ambitious warehousing facilities as quickly as possible. However, it’s actually a relative unknown that raced past the finish line in pole position. A family-owned enterprise, RSA Logistics commemorated the launch of warehousing operations at Dubai Logistics City earlier this year and while the news might have raised a couple of eyebrows, the company’s marketing director Kirit Mehta states it wasn’t a conscious effort to achieve this milestone in DLC history. “RSA Logistics will always be remembered as the first company to start operations here, although we’ve never considered this a race or a competition with others,” he says. “At the end of the day, everyone will be operating from the same development and working together as a community.” Of course, it’s impossible to ignore the clash between RSA Logistics being launched and the global recession, which has dented the logistics industry’s confidence throughout the world, including the Middle East. Such an outcome was impossible to predict when the company initiated its plans, admits Mehta. “There is a slowdown in the Middle East, although we’re confident about a recovery in the long-term, especially when Al Maktoum International Airport is opened,” he says. “In the meantime, we have adjusted our short-term targets. For example, we initially expected to reach full storage capacity in six months, although this has been extended to one year now.”
www.arabiansupplychain.com | DECEMBER 2009
29
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
TOLL GLOBAL FORWARDING The logistics industry has experienced a period of change in the past year and the same is true for Toll Global Forwarding, which recently completed its rebranding in the Middle East, following the acquisition of BALtrans in 2008. “I think the change reflects a new chapter in our continued development,” comments Jeff Khoury, managing director of Toll Global Forwarding in the Middle East. “We certainly felt an impact from the recession, but also used this as an opportunity to clean house, get in shape and position ourselves for the eventual economic recovery.” Khoury adds that a bonus of the downturn has been the availability of good staff that have been shed by competitors. “Toll grabbed this opportunity to recruit and added to our headcount in the region,” he says.
TRANSWORLD
Following the inauguration of its US$12.25 million warehouse in Jebel Ali Free Zone last year, Transworld Group of Companies (TGC) continued to expand its operations in 2009 and appointed the former Freight Systems executive Warren Jacob as its chief executive officer. “Transworld has emerged as a leader in the Middle East logistics sector and my role will be to increase our engagement with customers and partners, while creating products and services of true value, which will be industry specific and thus carving out a niche for our business,” he explains. To support these goals, Transworld announced a strategic partnership with Japan’s Suzue Corporation in October 2009, which resulted in both parties representing each other’s freight forwarding and logistics services in their respective operating countries. “We are proud to partner with an industry leader such as Suzue, which operates 20 bonded warehouses, with 196,000m2 of storage capacity in Japan, in addition to a cold storage facility in Singapore,” states Jacob.
30 DECEMBER 2009 | www.arabiansupplychain.com
The company fuelled its regional growth in November 2009 with the acquisition of Dubaibased company Logistics Distribution Systems (LDS), which operates a central warehousing facility in Jebel Ali Free Zone. “To understand why Toll has apparently swum against the tide, you need to recognise its long-term game plan. Toll’s view is that this recession will end, as they always do – so its focus is less on today’s performance, and more on how it will emerge from this recession, and how well-prepared it will be to take advantage of the market’s resurgence,” concludes Khoury. “That informs decisions such as staffing levels and other resources, and inclines us to expand when others are contracting. Recessions create opportunities as well as threats, but you have to be able recognise and exploit them.”
WARED LOGISTICS Wared Logistics was launched earlier this year as Saudi Arabia’s latest entrant into the global 3PL sector. With an initial capital of US$32 million, the newcomer is a 50:50 joint venture between Construction Products Holding Company (CPC) and Zahid Holding Group - both well-established and respected entities in the Kingdom. And whilst a section of the market could question the timing of this launch, the project’s wheels were actually set in motion around four or five years ago, when the Middle East economy was developing at breakneck speed. Even so, Brian McHale, CEO of Wared Logistics, is confident about his company’s future and remains adamant that its development strategy will continue as planned. “The concept of Wared Logistics was formed after a detailed study into the global logistics market, with a particular focus on the Middle East and Saudi Arabia, where companies need a high level of expertise and professionalism to facilitate their business,” McHale states with conviction. “Through this research, Zahid and CPC received a snapshot of the region’s potential as a global logistics hub, which highlighted the scope for a venture such as Wared Logistics.” Despite its global ambitions, the fact that Wared Logistics is based in Saudi Arabia is actually considered a strength by McHale, who believes the Kingdom is emerging as one of the most promising logistics markets in the world. The company has already developed a network of 12 warehouses in cities such as Jeddah, Dammam, Medina,
Jubail and Qassim, with future plans for two 40,000m2 facilities in Riyadh and Jeddah. “There’s a lot of talk about Saudi Arabia at the moment, its blossoming,” he admits. “Of course, there are challenges in the form of red tape, but that’s actually an advantage for Wared Logistics, because our parent companies are Saudi businesses that have operated in this country for decades, so we understand the regulations and have access to tremendous shortcuts as a result. At the same time, we need to educate the market about the benefits of outsourcing supply chain operations to a third party. There’s a low uptake 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.”
Together we made it...
...and we shall make it
again
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
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
FREE ZONES ABU DHABI AIRPORTS COMPANY (ADAC)
Although the development of logistics parks in the United Arab Emirates has traditionally focused on Dubai, a string of multi-billion dollar projects have recently been launched in other parts of the country. Leading the revolution has been Abu Dhabi Airports Company (ADAC), a regional powerhouse in the aviation sector with management responsibility for the airports in Abu Dhabi and Al Ain. The centrepiece of ADAC’s US$6.8 billion development strategy is Abu Dhabi Airport Business Park, which is being constructed on 12 square kilometres of land and will include around 2 square kilometres of space for a warehousing and transportation complex. The project has received a considerable amount of
interest from the logistics sector, especially from freight forwarders, importers, exporters and MRO specialists – proving that demand for such developments outside of Dubai is plentiful. “Abu Dhabi Airport Logistics Park will offer a wide range of facilities, from light industrial units to commercial offices and plots of land for tailored developments,” explains His Excellency Khalifa Mohamed Al Mazrouei, chairman of ADAC. “The project is being developed in two phases, which means we can make improvements to the masterplan in line with investor requirements. Construction of phase one has commenced and should be completed in 2010. The development of phase two is scheduled for 2011 and will be completed in 2015.” The logistics park is a central component in a large-scale development plan for Abu Dhabi International Airport, which has been designed to increase the overall capacity to more than 20 million passengers per year. This includes the construction of a second runway and third terminal, which have been completed, together with a midfield terminal complex and air control tower (ATC), which will be operational in the next few years. Of course, with growing volumes of cargo being handled at the airport, its airfreight facilities will also receive an industrial makeover. “The amount of cargo being handled at Abu Dhabi International Airport has strengthened this year and we expect this trend to continue in the future, especially with plans to diversify Abu Dhabi’s economy in the coming years,” says Al
Mazrouei. “In response, a world-class airfreight facility will be opened by 2012, expanding our current handling capacity of 475,000 tonnes per annum to 1 million tonnes per annum. In the longer-term, this figure will eventually reach 3 million tonnes.” Although the market response for these developments have been described as “overwhelming”, this has actually presented an interim problem for Al Mazrouei and his team. “Demand for space has exceeded the facilities that we have planned,” he says. “ADAC has responded by announcing a second logistics park at Al Ain International Airport.” The additional project, which is being developed in partnership with Helios SinoGulf Development, will cover 650,000m2 and includes distribution centres, light industrial units, freight forwarding stations, office space and supporting facilities. The first phase is scheduled for completion towards the end of 2010 at a cost of $250 million. “Whilst the two projects are separate with different selling points, they complement each other and together provide the full suite of facilities for the aviation and aerospace industries,” says Al Mazrouei. “Within both of these logistics parks, international investors can run their operations in the best business environment, benefiting from the low cost operation at Al Ain to focus on manufacturing aircraft parts and the growing connectivity network offered by Abu Dhabi, which is the perfect solution for the distribution of goods.”
AJMAN FREE ZONE AUTHORITY (AFZA) Lacking the natural advantages of gas and petroleum, Ajman established a free zone in 1996 to support its economic growth. Strategically located at the entrance of the Arabian Gulf, the industrial centre has become the emirate’s sole regulatory agency and claims to house 20% of the UAE’s total manufacturing units, exporting to over 64 countries around the world. It’s proximity to Sharjah and Dubai provides easy accessibility
to two international airports and four seaports, with Ajman Port emerging as a leading maritime focal point, serving over 1000 vessels a year. In addition, Ajman Free Zone Authority (AFZA) secured financing with Ajman Bank this year to complete the third phase of its large-scale warehousing complex. Valued at US$14.7 million, the agreement is a type of Islamic finance known as Ijarah and will be utilised to support the free zone’s growth as a logistics hub. www.arabiansupplychain.com | DECEMBER 2009
33
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA)
With a number of transportation projects being developed at Aqaba Special Economic Zone (ASEZ), it seems the future of Jordan’s logistics industry has been placed in safe hands. In particular, the construction of Aqaba Logistics Village continued at full speed this year, with His Majesty King Abdullah inaugurating the project in November 2009. “Projects such as the logistics village, together with the likes of Aqaba Container Terminal and Aqaba Air Cargo Terminal, are designed to develop the status of ASEZ as a complete logistics hub, while contributing to the national economy of Jordan,” states Imad Fakhoury, chief executive officer of Aqaba Development Corporation (ADC). “We signed an agreement with Agility and The Kawar Group for the development, management and operation of Aqaba Logistics Village, which will receive approximately US$70 million in direct investment. In the future too, we hope to encourage a greater number of public-private partnerships for logistics projects in the zone.” Aqaba Logistics Village is being developed on 500,000m2 of land next to Aqaba Container Terminal over the next ten years. The first phase involved the development of infrastructure and the construction of a container terminal, distribution centre and service centre. The second phase will incorporate an additional three distribution centres, each covering 10,000m2, together with the village headquarters and a logistics institute, while three more 10,000m2 distribution centres will be constructed in phase three. According to the agreement with Agility and The Kawar Group, the both parties will complete the village on a build, operate and transfer (BOT) basis, with ADC taking over ownership after 25 years. 34 DECEMBER 2009 | www.arabiansupplychain.com
BAHRAIN INVESTMENT WHARF Bahrain’s logistics industry is expected to receive a positive boost with the opening of Bahrain Investment Wharf (BIW), which is currently being constructed on a plot of land measuring 1.7 million square metres in the Hidd industrial area. The ambitious development will include a dedicated logistics park, with around 900,000m2 allocated for supply chain activities, including warehouse storage, packaging and distribution. “Bahrain has always enjoyed an enviable reputation as a regional logistics hub. We are simply revamping and modernising that image,” explains Muhannad Al Durrah, CEO of BIW. The wharf is being strategically located in the northeast of Bahrain, within close proximity of the country’s airport, seaport and road network.
“This project will be particularly attractive to the logistics industry because of the excellent transportation links,” adds Al Durrah. “It is located approximately 2km away from Bahrain airport and 1km from Sheikh Khalifa Bin Salman port. In addition, the King Fahad Causeway and a planned causeway connection to Qatar are within close proximately.” BIW is hoping to attract the interest of the logistics industry by offering a range of business incentives, including complete customs duty exemption on capital goods, raw materials for manufacturing, re-export goods and imports required for development projects. Companies can also establish their operations without a local sponsor, which means full business ownership in most categories. “The benefits are very innovative, which should prove valuable for logistics providers and those handling supply chain management inhouse, as part of their overall operations,” adds Durrah.
BAHRAIN LOGISTICS ZONE The management team at Bahrain Logistics Zone has adopted a full throttle approach for their marketing campaign in 2009, visiting all corners of the world to promote their “boutique” logistics zone in Khalifa Bin Salman Port. Its little surprise, therefore, that a number of industry heavyweights have already expressed their interest in the US$280 million project, with Danzas and CEVA amongst the first 20 companies to start the construction of their warehouse facilities at the site. “The unprecedented demand from local and international companies has strongly indicated that Bahrain Logistics Zone is heading in the right direction,” states Hamad Fakhro, assistant director general of General Organisation of Seaports (GOP), which is overlooking the project. “In fact, only a few months after we started the process for tenancy applications, we found ourselves five times oversubscribed. As a result, we have decided to increase the zone by 150%, which should help to bridge the gap between demand and supply.” Despite the expansion, Fakhro and his team have a stringent application process to ensure Bahrain Logistics Zone hosts a diverse community of tenants. “We are dedicated to making sure our tenants are the right fit and
bring the most value to Bahrain,” he explains. “This means on one level the creation of jobs and increase in foreign investment, as well as their ability to transfer knowledge to the local market and their involvement in activities to further Bahrain’s economic goals.” With this in mind, it seems Bahrain Logistics Zone will bring massive benefits to the Kingdom’s economy. Aside from the US$600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs. “The Arabian Gulf’s economy is growing at a significant rate and Bahrain is no exception,” ends Fakhro. “With the support of its forwardthinking government and the private sector, we are ready to face future challenges.”
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
DUBAI CARGO GATEWAY
DUBAI AIRPORT FREE ZONE AUTHORITY A number of factors have contributed to the financial success of Dubai Airport Free Zone (DAFZ) in 2009, including its accessibility to a market of over 1.5 billion consumers and over 100 leading international airlines. In addition, the free zone’s ambitions to remain an innovator in the Middle East has resulted in a number of operational changes this year, including a rebranding exercise that was revealed at the SITL Dubai logistics exhibition earlier this year. “We have undergone several changes in 2009 to revamp our position and cater to the needs of a growing tenant list,” states Ibrahim Ahli, marketing director at DAFZ. “The re-branding has been supported by expanded office space,
with the latest telecommunications connectivity, in addition to the launch of a business centre and planned hotel.” One of the major factors the free zone prides itself in is its extensive business incentives for tenants, such as 100% tax exemption, 100% ownership rights and rapid cargo clearance, which has attracted companies such as DHL, Xvise and FedEx. “At present, the free zone houses 1500 companies and the calibre of clients here has helped to give DAFZ a solid reputation around the world,” continues Ahli. “We look forward to building on this success in 2010.”
During the early 1990s, when operations commenced at Dubai Cargo Gateway (formerly Dubai Cargo Village), the Middle East aviation industry was increasing its focus on airfreight operations, leading to a sudden growth in cargo volumes. Even with the global recession, the region has outperformed its counterparts across the world and Dubai Cargo Gateway has remained at the forefront of this continued evolution. With this in mind, the development of a ‘cargo mega terminal’ will help the facility’s handling capacity to reach a whopping 1.2 million tonnes. “We have experienced growth in 2009 and with this development, we will have the infrastructure to cope with future growth,” predicts Ali Al Jallaf, vice president of cargo, Dubai Airports.
www.acme-world.com
Make your warehouse work with your business
Maximise space utilisation and warehouse throughput with ACME Group. With over 3 decades of experience in delivering storage and material handling solutions to diverse industries, we are just a call away to design and implement a warehousing solution that meets your needs. So, whether it is racking or electrical stackers and forklifts, with ACME Group expect nothing less than the best.
Call us today on 800 ACME or email us at info@acme-world.com and start growing your business Tel (+971-4) 323 2628 Fax (+971-4) 323 2608
customised warehousing solutions that work
www.arabiansupplychain.com | DECEMBER 2009
35
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
DUBAI INDUSTRIAL CITY
The race to become the Middle East’s ultimate centre for warehousing activities has attracted several candidates over the years. With the likes of Jebel Ali Free Zone and Dubai Logistics City receiving plenty of attention from the media, other projects could easily be tagged as underdogs for the title. However, with a truly productive year in 2009, Dubai Industrial City has carved an enviable niche for itself in the logistics industry, which vice president Rashed Al Ansari believes will continue to strengthen in the coming years. “Dubai Industrial City has crossed a number of milestones this year, including the construction of 64 showrooms with storage facilities, which are now available for lease and feature two floors, spanning 5000 square feet each, in addition to 5000 square feet of storage space at the rear of the building,” he explains. “Also this year, we confirmed plans to extend our open storage area by 3.5 million square feet to meet growing demand from customers in the construction, equipment and transportation sectors. The complex previously had 2.8 million square feet of open storage yards, which were utilised by a handful of companies in the United Arab Emirates. The expansion more than doubled the available space and indicated our ability to satisfy the needs of Dubai’s business community, while bridging the shortfall in storage facilities,” he adds. Launched in 2004, Dubai Industrial City is being developed on 56 million square feet of land, with separate zones being constructed for six different industry sectors. These will be complemented with supporting infrastructure for industrial training and labour accommodation, in addition to a significant amount of warehousing and distribution space. “We are developing into a self-contained city-within-a-city,” ends Al Ansari. “With the construction of these facilities, we are sending a clear message of support to the industrial sector in Dubai as it grows as the second largest economic sector in the emirate.” 36 DECEMBER 2009 | www.arabiansupplychain.com
DUBAI LOGISTICS CITY It’s been a challenging year for Dubai Logistics City, with the resignation of chief executive officer Abdullah Al Qurashi leading to another round of negative publicity for the project. However, while the market has reacted with caution, a number of impressive highlights have also been reported in the past year, including a warehouse opening for RSA Logistics - the first tenant to commence operations at Dubai Logistics City - while Kuehne + Nagel and Panalpina also completed the construction of their large-scale facilities and Aramex hosted a ground breaking ceremony for its warehouse. Perhaps more importantly, Dubai Aviation City Corporation, which is responsible for Dubai Logistics City, signed an agreement to align procedures with Jebel Ali Free Zone in a beneficial move for supply chain operations throughout the region. The landmark agreement will be implemented in four stages over the coming years. Under the first stage, transportation procedures will be aligned for cargo that is shipped
between Dubai Logistics City and Jebel Ali Free Zone. The second stage will be focused on administrative operations, such as business registration and trade licensing, while the third and fourth areas will involve the development of a common operating platform and alignments in marketing and promotional activities. “We are proud to announce this alliance with Economic Zones World, the parent company of Jebel Ali Free Zone Authority,” says Rashed Buqara’a, COO of Dubai Aviation City Corporation. “With our focus on aviation and logistics combined with EZW’s complimentary strengths in land and sea based connectivity, we are creating a platform that will confirm Dubai’s position as the unparalleled centre of logistics in the region and as a globally significant player for generations to come.”
DUBAI MARITIME CITY
Earlier this year, Dubai Maritime City (DMC) completed the construction of more than 200 units within its industrial precinct, marking another breakthrough for the multi-million dollar project, which is being marketed as the world’s first purpose-built maritime centre. A total of 217 units have now been structurally completed in the industrial precinct, including 140 workshops, 60 warehouses, 12
showrooms and five yacht manufacturing facilities. The units have since been handed over to Drydocks World - Dubai, which is responsible for running and operating the industrial precinct and has been leasing the units to businesses in the logistics and transport industry. In addition to handing over the units, Dubai Maritime City also delivered a number of supporting components, such as the central administration building, ship lift control building and mobile boat hoist.
ITP advert_december.ai
11/15/2009
3:26:57 PM
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
EMIRATES INDUSTRIAL CITY The development of Emirates Industrial City has continued to progress at full speed, avoiding the usual construction delays that have plagued a number of industrial areas during the past year. It’s quite an achievement for the Sharjah project, which has been conceptualised by Al Hanoo Holdings and will eventually spread across 83 million square feet in the district of Al Sajaa. “The project has been divided into eight sections, two of which are reserved for warehousing operations, with a total of 400 storage facilities being constructed on 20 million square feet of land,” explains Sheik Abdullah bin Fahid Al Shakrah, chairman of Al Hanoo Holding. “The complex is located alongside Dubai Ring Road, in close proximity to Sharjah International Airport and the lack of traffic congestion will help Emirates Industrial City differentiate itself from similar projects in other parts of the Middle East.”
JEBEL ALI FREE ZONE AUTHORITY (JAFZA) INTERVIEW: IBRAHIM AL JANAHI, CHIEF COMMERCIAL OFFICER OF JEBEL ALI FREE ZONE AUTHORITY What factors have contributed to Jebel Ali Free Zone’s success in the past year? Innovation has been integral to the success of Jebel Ali Free Zone. We have continued to optimise our logistics offerings over the years, whether that means the construction of new structures to accommodate demand or the improvement of existing structures to better serve our clients. All companies, from local enterprises to global multi-nationals, need assurance that their growth can be efficiently facilitated and our operations, infrastructure and services can meet these expectations.
What have been the latest warehouse developments at the free zone? Jebel Ali Free Zone prepared for the completion of five mega-projects this year and two of them are related to warehouse operations. The first is situated in the South Zone and consists of 68 warehouse showrooms, which combine the facilities of a modern showroom and a functional warehouse. The second project is located in the North Zone, roughly 350 metres from the port, and consists of 43 warehouses and light industrial units, with a height allowance of 10 metres for maximum storage.
A growing number of industrial areas have been established in Dubai. Is there
38 DECEMBER 2009 | www.arabiansupplychain.com
sufficient demand for each of these? In terms of value for money, Jebel Ali Free Zone is easily amongst the most competitive in the world and offers a unique blend of services and benefits. In addition, we are located between the hugely successful Jebel Ali Port and the forthcoming Al Maktoum International Airport. These incentives are really difficult to beat and have differentiated us from others in the Middle East and beyond.
Has there been an impact on demand for warehousing space with the recession? We have found that certain sectors of the market have still been active in 2009 and since our latest developments are demand-driven initiatives, I am confident about their success in the coming years.
RAS AL KHAIMAH FREE TRADE ZONE (RAKFTZ) AUTHORITY
INTERVIEW: OUSSAMA EL OMARI, CEO OF RAS AL KHAIMAH FREE TRADE ZONE How many companies are currently based in RAK Free Trade Zone? At the moment, we have over 7000 companies registered from 106 different countries. From this total, 64% are trading companies with warehousing facilities, 26% are consulting and services companies, 3% are industrial and 7% are general trading companies.
Have your operations been impacted by the global recession? The slowdown has impacted everyone in some way. We have been fortunate that despite the ongoing economic crunch, the free zone has continued to attract and maximise the growth of business in 2009, which shows we have the right strategy in place to counter the slowdown. As for clients, we try to minimise the impact by being flexible and trying to find creative solutions so they can continue with their business.
Is the logistics sector an important market for the free zone? RAK Free Trade Zone has established itself as a popular destination for logistics activities and to continue this momentum, we are constantly developing our operations to boost the warehousing and distribution activities of our tenants. A variety of plot sizes are available, ranging from 2500m2 to 500,000m2, supported by the usual free zone benefits of 100% foreign ownership and tax exemption.
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
SIP_ITP Logistics_AW.indd 1
excellence. Which is why so many are making it their preferred port of call. To find out more visit www.portofsohar.com E6@>HI6C
9d]V
9jWV^ 6Wj 9]VW^
J6:
;j_V^gV] Hd]Vg BjhXVi
@VgVX]^
<JA
; D ; D B6
C
H6J9> 6G67>6 DB6C 6G67>6C H:6
10/20/09 2:25:35 PM
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
MATERIALS HANDLING
AND TECHNOLOGY SOLUTIONS
ACME GROUP cargo was fairly limited in the Middle East, so demand was mainly focused on slotted angle storage systems. The market has expanded over the years and new technologies are being incorporated into the supply chain. As a result, we now operate four divisions – material handling and storage systems, fluid sealing and marine equipment, industrial pneumatics and automation, and finally IT services.
How strong has the material handling sector been in the Middle East this year?
INTERVIEW: NAVIN NARAYAN, OWNER OF ACME GROUP How long has Acme been established in the Middle East logistics industry? We were launched as a general trading company in 1977, with a strong focus on storage solutions. At the time, the uptake for palletised
I think the next big money spinner in Dubai, as such, will be logistics. The emirate has developed a world-class transportation infrastructure to support the MENA region’s logistics needs. With the creation of Dubai World Central over the next few years, Dubai has the potential to truly become a world player in the business of moving people and freight. In addition, Qatar and Bahrain have big plans to supplement this. I am sure there is good scope for the material
handling sector to participate in the economic growth of this region.
What has ACME Group been impacted by the global recession in 2009? It would be naive to claim there has been no impact on the Middle East market due to the global recession. However, although this region has been affected, it was affected much later than the rest of the world and has already shown signs of recovery. There is a contraction and slowdown, which is evident. It is giving businesses the time to stop, rethink and realign their strategies. This would help players in this region to become lean and competitive.
What are for future development plans for your company in the Middle East region? We intend to become a complete integrator of various material handling solutions, while growing our existing market and branching out in new areas of the Middle East and Asia.
ATMS Bringing its global expertise to the Middle East logistics industry, ATMS has reinforced its position as a leading software provider in the region, securing a growing list of contracts over the past 12 months. In particular, the company has successfully marketed its Stock Track Plus (STP) warehouse management system to local customers, with recent contracts being awarded by Qatar Navigation and Gulf Worldwide. “ATMS has been uniquely positioned in the Middle East, because we are the only warehouse management system author of note with our own offices in the region. This has helped our clients considerably,” explains Steve Cross, managing director of ATMS. “We can listen to the specific needs of customers and quickly incorporate their requirements within our product development roadmap.” Despite the global slowdown, ATMS has reported one of its most successful years ever, which Cross attributes to a number of different factors. “We’ve been in this business for 25 years
now. Although our warehouse management system is only three years old, it is based on years of experience. Plus, we’re a privately owned company with low overheads, so we can provide powerful and flexible solutions, often at a third the cost of large State-side vendors.” Earlier this year, ATMS further developed its local invoicing and Jebel Ali Free Zone customs modules, while also developing Global Track, a hosted supply chain track and trace solution. A number of trade events were also hosted by the company in 2009 to directly promote its solutions to potential Middle East customers. This included a monthly series of workshops on warehouse management systems, which attracted a stream of existing customers, prospective clients and industry advisors. “The workshops are really successful and have been designed for people to gain a better insight into Stock Track Plus, with live demonstrations that cover warehouse optimisation, quality control, barcoding and
radio data terminals,” says Cross. “It’s also a platform to ask questions and have discussions with ATMS experts. Everything is free and there’s no obligation to purchase.”
www.arabiansupplychain.com | DECEMBER 2009
41
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
BUSINESS SYSTEMS GROUP (BSG)
Although business was relatively flat for Business Systems Group (BSG) in the first quarter of 2009, demand has resumed an increase from the second quarter onwards. As a result, the company which is the regional distribution and competency centre for Exactus supply chain technology solutions - has reported a large number of customer wins this year, including Al Madina Logistics, JET Airfreight, Triburg Logistics, Triolite, Hassani Group of Companies, Balmer Lawrie and Takwa Distribution. “Even in a recessionary business climate, there were companies that adopted new technologies to become more innovative and improve their business processes,” explains Raheel Khan, regional director of BSG. “Of course, there were situations where customers demanded flexible payment plans to facilitate their cash-flow situations and we had to accommodate those requests.” Although the Exactus suite of supply chain products is designed as flexible solutions, BSG has taken a measured and cautious approach to implementation in 2009. “There are some excellent products that have failed miserably in the Middle East market, simply because the company behind them did not have enough bandwidth to carry out the projects or because their implementation consultants lacked in-depth product familiarity,” explains Khan. “We make sure that our consultants are fully grounded in the product and updated by going through training programmes.” In line with BSG’s expansion plans, the company established an Offshore Development Centre (ODC) in India this year and also plans to establish sales and support offices in the lucrative Saudi Arabia, Oman and India markets next year to boost sales in the region. 42 DECEMBER 2009 | www.arabiansupplychain.com
CHEP MIDDLE EAST
CHEP has established itself as a premium brand in the material handling sector, with an asset base of more than 285 million pallets and containers, which are utilised by customers in 44 countries around the world. In particular, the company has flagged the Middle East as a strong emerging market in 2009 and established its service centres in
countries such as the United Arab Emirates, Saudi Arabia, Kuwait, Oman and Qatar. “Unfortunately, many companies in the GCC use pallets by default, rather than design. Little attention is paid to quality, hygiene or specification,” says Smyth. “The pallet is simply used to enable a forklift to handle a unit load and will be dumped or recycled again.” CHEP pallets are returned to a service centre after completing a supply chain cycle, where they are inspected and repaired to ensure that only high quality pallets, capable of meeting customer needs, are re-issued into the pool. In particular, fast moving consumer goods (FMCG) companies have been early adopters of the pallet pooling concept and CHEP has earned the custom of leading FMCG manufactures, retailers and logistics companies in the Middle East. “Procter & Gamble, National Food Industries, Saudi Glass Company and IATCO now participate in the CHEP pallet pooling system, together with another 400 companies,” continues Smyth. “We have enjoyed strong growth over the past year and pallet hire volumes are expected to double during 2010, as companies focus on reducing their supply chain costs during the current economic climate.”
EHRHARDT + PARTNER SOLUTIONS (EPS) Ehrhardt + Partner Solutions (EPS) has reported a steady increase in demand from Middle East customers over the years, with a growing number of companies purchasing its software solutions in 2009, including EMKE Group, operator of the LuLu Hypermarkets, which ‘went live’ with the LFS400 warehouse management system in October. In addition, the technology specialist has made a considerable amount of progress with the construction of its regional headquarters at Dubai Logistics City, which is scheduled to open in February 2010. “This centre will really support our growth in the Middle East and allow customers to analyse their existing processes in a live environment, while testing and getting to know our technology,” says Hermann Ehrhardt, managing director of EPS. To support its regional investments, EPS also hosted a number of educational workshops at the beginning of the year to raise standards in the Middle East, with participants being taught about global warehouse processes by trainers with vast industry knowledge. “Investments into most modern technologies are only as good as the educational status of the employees. Long term growth can only be
realised with skilled personnel,” continues Ehrhardt. “I am confident that the training offered by EPS, which ranged from basic logistic knowledge to advanced processes, will help to optimise existing processes and reduce operating costs for participating companies.” EPS continued its marketing campaign this year with appearances at GITEX Technology Week and Materials Handling Middle East, while it also collected the prestigious Technology Provider of the Year trophy at the Supply Chain and Transport Awards (SCATA) in Dubai.
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY TRADE ASSOCIATIONS SOLUTIONS
FAMCO DAVID DRONFIELD, DIVISIONAL MANAGER OF STORAGE AND HANDLING SOLUTIONS AT FAMCO How important has the logistics sector been to FAMCO this year and how have your material handling solutions fared? It’s a very important market and we offer a growing selection of material handling products, such as Dexion industrial storage and shelving systems, Linde forklift trucks and Stertil warehouse dock-levellers. Each of our core products have performed extremely well, gaining in market share, especially with the high value Volvo truck and construction equipment businesses.
Which factors do you think have essentially contributed to this success in 2009? The continued development and success of FAMCO has been based on our in-depth understanding of customer needs and the dedication of our skilled workforce. This basically means that we are well positioned to service the future development of the United Arab Emirates.
How have you advised Middle East customers to address challenges from the global recession this year? In order to survive this period of economic uncertainty, it’s essential for companies in the Middle East logistics industry to optimise their performance. While others are expanding their warehouse facilities or increasing their rental of storage space, it’s actually a wiser idea to look inwards and restructure your existing supply chain operations to maximise effectiveness.
Can businesses justify the spend on material handling solutions in the Middle East during this economic climate? It’s important to remember that storage systems are designed to be adjustable. By making a small investment in the re-planning and rearranging of systems, companies can benefit from long-term efficiency gains that will result in the more effective use of equipment and a better return on investment. For example, the upgrading of material handling equipment can result in faster order processing and resource optimisation. In addition, the implementation of a warehouse management system can help to
ensure the fastest completion of tasks. Of course, companies should never make changes without researching the market and questioning an expert in the field, whether it’s a consultant or an experienced material handling specialist such as FAMCO.
INTERMEC INTERVIEW: COLIN SUMMERS, INTERMEC REGIONAL MANAGER (MIDDLE EAST, INDIA AND AFRICA) What range of handheld computers are provided by Intermec in the Middle East? Intermec has provided a range of handheld computers in the Middle East for over 20 years, which are aimed at a very different market to products such as office computers or PDAs. Our typical user could be a warehouse packer, courier agent, postal delivery person, field service engineer, van sales driver or utility metre reader. What these people have in common is the need to use handheld computers for multiple business operations. Our products are rugged and manufactured to strict certifications, with a comprehensive testing process that covers everything from freezing temperatures to high humidity to drops onto concrete floors. This underlines the fundamental issue that mobile computers should be able to survive the rigours of supply chain operations in the Middle East.
How strong has demand been for your handhelds in the Middle East this year? My estimate is that demand for handheld products across the Middle East has grown at an average rate of 20% per annum, while
Intermec’s average growth has been 40% over the past five years. The handheld computer business has only recently moved from a niche market into the mainstream of the IT industry. There are a lot of developments happening and I believe we’ve reached an inflection point in terms of market and user acceptance. In other words, there is now sufficient experience, knowledge and confidence within organisations
to appreciate they cannot effectively operate their business without handhelds.
What makes your product different to others in the regional market? Intermec has been manufacturing handheld computers longer than any company and we have an impressive track record of innovation. For example, we were the first manufacturer to offer four radios in a single handheld computer namely Bluetooth, GPRS, WiFi and GPS. We also produced the first mobile computer with RFID read capabilities. In addition, we supply a complete solution, which includes peripherals such as printers that are normally required along with the handheld terminal.
Is there a lot of competition in the local market for warehouse technology? The bulk of competitors fail to understand the requirements of customers, so a large portion of our business comes from companies that have been sold equipment that is not suitable for harsh environments or the rigorous use of nonoffice workers. The key is showing a suitable return on investment, which takes years of experience. Intermec brings this consultative approach to customers, which has been a key to our success. www.arabiansupplychain.com | DECEMBER 2009
43
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
LOC8
Finding the time to reflect on the success of his Product Sourcing Guide a few years back has been a struggle for Stewart Arbuckle, managing director of Loc8. The company, which is based in Dubai, has experienced a relentless period of growth since its launch, with new product launches and double-digit growth being reported on a yearly basis. “Our latest catalogue was launched this year and featured even more innovative and practical products,” states Arbuckle. “This has contributed to a significant increase in enquiries and the overall response was very positive. In particular, our spill prevention range has been particularly popular, as companies are becoming increasingly sensitive to HSE regulations. The mezzanine product has also performed well and helped clients to maximise their available floor space.” Aside from the catalogue, Loc8 has continued to diversify in 2009, with a number of divisions being created to capitalise on strong customer demand. One of the teams, according to Arbuckle, has been established to provide design support to companies that are opening new warehouse facilities or revamping their existing ones. “We have adopted a solution-based approach, which is a refreshing change for clients, helping them to optimise their warehouse space and make wise investments.” Following its success at the Materials Handling Middle East exhibition in previous years, Loc8 returned to the trade show in 2009 with a solid number of enquiries from potential customers. “Our stand at Materials Handling Middle East proved to be worthwhile and we received a lot of attention from visitors, which proved our initial scepticism on attendance levels to be unfounded” states Arbuckle. “Looking ahead, 2010 will for sure not be an easy year, however, we are confident in the local economy and look forward to the challenges it brings.”
44 DECEMBER 2009 | www.arabiansupplychain.com
LOGCUBES
Although the recent launch of LogCubes, in addition to its trade partnership with Manhattan Associates, took place during a global recession, the company’s director Tarek Saoud has managed to find opportunities in a challenging market. “This year could be compared to a planting season for a farmer, as we began to introduce companies to the suite of Manhattan Supply Chain solutions,” he claims. “Many customers are using this time of negative economic growth to evaluate their positions and re-think their supply chain plans, while others have passed this stage and are already considering
products such as warehouse management systems, slotting optimisation solutions or distribution management systems.” According to Saoud, the companies that are taking advantage of the downturn to improve their supply chain efficiency will emerge as leaders once the market has recovered. “The economic slowdown has squeezed out some players, but the remaining ones are now reevaluating their logistics practices and the efficiency of their distribution centres,” he continues. “In order to remain competitive, companies have not only focused on cost cutting measures and the improvement of the bottom line, but are addressing the key issues of customer service response and availability of stock. In my opinion, the supply chain now constitutes the final frontier to success.” LogCubes has actually been in development for the last two years in response to the growing demand for supply chain technology in the Middle East, and more specifically, in the Gulf region. Since the company’s launch, it has focussed on existing Manhattan Associates clients, while generating awareness among potential new customers. “In total, there are already more than 10 customer sites in the region, a number we expect to double in the next 12 to 18 months,” concludes Saoud.
SICK
Despite only recently entering the Middle East market in its own right, SICK Automation International has found that its wealth of products has received a rapturous response in a region where its solutions generally lack a competitor. “We cover a wide range of products, from anti-collision systems on cranes and forklifts to fi xed mount barcode reading in automated warehouses,” says Julian SperringToy, regional director of SICK Automation. A specific product that was showcased at the Materials Handling Middle East show in Dubai this year was SICK’s volumetric weighing solution for couriers, which allows firms to establish both the weight and size of items. “Couriers have limited space on their vehicles,
so this helps them more effectively pack and select their routes, as well as realise those lost revenue opportunities,” adds Sperring-Toy. Although SICK has been operating in the Middle East market for around 15-20 years through partners an distributors, it was only in the past year that the operator has established an office in Dubai in its own right. It appears to a decision that has been vindicated. “Generally speaking, we have seen some downturns in some areas of our business, but in others, it’s absolutely flying,” Sperring-Toy observes. “A lot of the success has been achieved due to the willingness of local governments to invest in infrastructure and we expect that trend to continue in the future.”
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY TRADE ASSOCIATIONS SOLUTIONS
SNS INTERVIEW: MARIO GHOSN, GENERAL MANAGER OF SNS What presence does SNS have in the Middle East as a logistics technology provider? We have three offices in the region, located in Dubai, Beirut and Saudi Arabia, with a team of 30 operational and technical consultants who are experts in the supply chain field. Our mission is to become the trusted advisor and partner of clients by providing them with the highest quality services and holding ourselves accountable for their success in the market.
Which companies have you partnered with in the region to achieve this goal? We have two main partnership in the region with SPAN Group and Infor, which are leaders in their markets. In addition, there are partnerships with other providers of supply chain solutions to ensure that customers have a fully-integrated solution at their disposal.
How strong has the local market been for warehouse management systems in 2009? Through our partnerships with SPAN Group and Infor, we are currently the number one
provider of supply chain services in the Gulf and Middle East. Our strength resides in our understanding of the Middle East culture, our customer oriented approach, our local presence and our expertise in supply chain management.
Can you name some of your recent customers in the Middle East region? Over the years, we have worked with some of the top players in the regional supply chain market. Our customer portfolio includes Agility, Pepsi Kuwait, Nestle, P&G, Aramex, Danzas, Fuel Group, Transmed, Jawad Group and Al Yasra.
Sjoerd Koopman from NestlĂŠ and Andrew Kinder from Infor.
What are your future development plans? SNS believes in staying one step ahead of market demand. We constantly seek to increase our services portfolio and enhance our training curriculum. In addition, we are expanding into markets outside the Middle East, such as Latin America and Africa.
What has been the companyâ&#x20AC;&#x2122;s biggest highlight in the past year? We hosted a recent seminar for supply chain and logistics professionals in the Middle East, allowing them to participate in informal networking and discussions with industry professionals, while learning the best practices that are being applied to enhance supply chains performances. The event was held in Lebanon and featured a number of keynote speakers, including Walid Daniel from SPAN Group, Marouane Rihoum from Chalhoub Group,
www.arabiansupplychain.com | DECEMBER 2009
45
FAMCO, your Dexion authorised dealer, is a market leader in high end industrial storage solutions that improve supply chain efficiency and lower the per unit cost of distribution. Our solutions are typically centred around quality storage equipment, better material flow and end-to-end order fulfilment systems. Allow FAMCO to take care of your business today!
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
TRAINING
AND EDUCATION BAHRAIN POLYTECHNIC
Bahrain Polytechnic has supported the growth of logistics activities in the Kingdom with the introduction of three educational courses this year – a bachelor degree in international
logistics management, a diploma in logistics and transport, and a higher diploma in international logistics management, which have all been accredited by the Chartered
Institute of Logistics and Transport (CILT). “Bahrain Polytechnic was established as part of the Kingdom’s long-term plans for economic development. Specifically, the Polytechnic has been given the task of producing work-ready graduates of educational courses, ranging from industry short-programmes to degrees,” explains John Webb, transport, freight and logistics programme manager at Bahrain Polytechnic. “One of the sectors seen as critical to this vision is logistics and transport. Our programmes aim to deliver relevant courses and awards that support the development and sustainability of the industry. The target market is as diverse as the transport and logistics industry itself and the plan is to eventually develop a full range of programmes that can be delivered in workplaces, at night schools as well as full time at Bahrain Polytechnic.”
EMIRATES AVIATION COLLEGE INTERVIEW: NIGEL WOODHEAD, HEAD OF LOGISTICS STUDIES AT EMIRATES AVIATION COLLEGE When was the logistics course established at Emirates Aviation College? Our MBA in logistics and supply chain management was launched in October 2008 through a collaboration with Coventry University in the United Kingdom.
How many students are currently enrolled on the education programme? At the moment, over 40 students are undertaking their MBA in logistics and supply chain management with Emirates Aviation College. Students are represented from nine nations across the globe, bringing with them experience in a wide range of sectors, such as the airline industry, purchasing, banking, real estate and security. This broad range of nationalities, along with their diverse working backgrounds, provides a useful platform for everyone to discuss and share their previous experience and knowledge.
What progress has been made with this logistics course in the past year? The college was pleased to gain an additional accreditation in May 2009 from the Chartered Institute of Logistics and Transport (CILT), which is a global association for logistics and supply chain management professionals.
leading global logistics hub, with massive investment in regional transportation infrastructure and a shortage of suitably qualified personnel in the region. We therefore anticipate a growing demand for our courses.
Is Emirates Aviation College expanding the scope of its education programmes at all? Yes, following the success of our programmes in Dubai, the college ventured to Singapore and the UK, launching the MBA in Aviation Management in September this year. At the same time, in Dubai we have introduced MBAs in Aviation Safety and Security, as well as Information Technology Management. Both are relevant to logistics, with expenditure on aviation security doubling in a three year period and the wider application of sophisticated IT systems being a major trend in the industry.
How do you expect regional demand for this course to develop in the future? Dubai has continued to push forward as a www.arabiansupplychain.com | DECEMBER 2009
47
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
GULF UNIVERSITY OF SCIENCE AND TECHNOLOGY (GUST)
As a veteran in the Middle East education sector, the Gulf University for Science and Technology (GUST) has proved its mettle with a diverse range of courses. In particular, the GUST Logistics Forum (GLF) – its dedicated facility for the logistics sector – has produced a new generation of supply chain professionals this year, helping to combat the industry’s continued skills shortage. “GLF provides networking and industry information to students interested in the fields of logistics and supply chain management,” explains Professor Philbert Suresh, course instructor and founder of GLF. Highlighting its efforts to promote logistics in the Middle East, GLF is planning to launch a publication on the regional industry, which is scheduled for publishing in 2010. To research the book, Suresh launched an online survey on the university’s website, which has already received a positive response from the public. “The book will cover the evolution of transportation in countries such as Kuwait, Qatar, Saudi Arabia, Bahrain, UAE and Oman,” he explains. “We’re hoping this publication will inspire young minds and help to create a better understanding about Middle East logistics, not only in this region, but throughout the world.” 48 DECEMBER 2009 | www.arabiansupplychain.com
LOGISTICS EXECUTIVE Logistics Executive commenced its operations in the Middle East and Africa around five years ago, trading under its previous incarnation of Logistics Recruitment. Since then, the Australian company has successfully developed its presence in the local logistics industry, targeting service companies, such as freight forwarders and 3PLs, in addition to manufacturers and distributors. “The massive economic growth in GCC countries, fuelled by oil revenues and liberalisation, has been a boon for recruitment companies in the past few years. However, this didn’t make the recruitment process any easier, because more companies are chasing fewer candidates and organisations are struggling with both the talent shortage and employee retention issues,” says Nigel Moore, Logistics Executive’s managing director in the Middle East and Africa. “Following our rebranding in 2008, Logistics Executive has continued to grow as a business, not only in the scope and volume of work, but also in terms of geographical reach. We have a growing number of clients using our services to fill roles in all corners of the Middle East, Africa and surrounding areas.” Despite its success, Moore admits that the company is continually challenged in the Middle East, as rising costs make the region less attractive to international talent than in
previous years. In addition, a further series of hurdles has been created from the global recession in 2009. “We have spent quite some time during the year on new attraction strategies and working closely with clients to improve their hiring process. With talent being so critical to success in this dynamic market it’s essential that companies get their recruitment programmes working effectively,” he says. “As global economies compete heavily with the Middle East for available talent then the shortage of logistics professionals will be a growing challenge. Unsurprisingly, our clients have faced difficulties in attracting and retaining the right talent and there is more emphasis being placed on retention than ever before.”
MIDDLESEX UNIVERSITY DUBAI
The Dubai campus of Middlesex University London, which opened in January 2005, has more than 1300 students from over 70
nationalities and offers 25 undergraduate and postgraduate programmes in a variety of subjects. This year, the university has also drafted plans to establish a centre of excellence in supply chain management with a leading logistics company in the region. “Logistics is currently taught as part of BBA, BSc degree and the prestigious Middlesex MBA. Plans are under way to introduce a masters degree in logistics and short certificate courses will also be launched,” says Professor Cedwyn Fernandes, MBA campus programme coordinator and associate professor in economics and international business. The university’s strategy is to align itself with developments in the region and it anticipates a huge demand for trained professionals in this industry. “We have conducted research with employers and prospective students,” adds Fernandes. “Employers almost unanimously bemoan the lack of trained professionals in logistics and both prospective students working in the field and those wanting to join this industry have indicated the need for a top class degree in logistics.”
ANNUAL REVIEW 2009: TRAINING TRADE AND ASSOCIATIONS EDUCATION
MORGAN INTERNATIONAL INTERVIEW: FADI GANNI, CEO OF MORGAN INTERNATIONAL How strong is demand for logistics training courses in the Middle East? Training courses have played an important role in supporting the growth of countless industries in the Middle East, from travel and tourism to manufacturing and retail. However, with a limited quota of specialist programmes for supply chain professionals, the region has expressed a requirement for suitable courses to help standardise its logistics sector, especially in terms of matching the best practices from Europe and North America.
How has Morgan International worked to capitalise on this gap in the local market? As a Middle East training company with a solid track record for delivering results since 1995, Morgan International offers a diverse range of professional training that leads to certification. We initially started with two locations (Lebanon and Jordan), but the company has since expanded to 26 locations over the past 14 years, covering the Middle East, as well as parts of Africa and the Indian subcontinent.
Although we initially focused on accounting, our courses have diversified into logistics and supply chain management, as well as human resources, treasury, internal audit and even soft skills. We actively help candidates succeed in professional certification exams by being highly efficient, maintaining standards and offering distinctive support and follow-up. To best achieve this, we partner with companies to provide their staff with tailor-made training solutions that suit their specific requirements.
What topics are covered in your courses? At present, there are four categories in the curriculum for our logistics training programmes, which are supply chain management fundamentals, building competitive operations planning and logistics, managing customer and supplier relations, and using information technology to enable supply chain management. Each of these categories has several subdivisions, which reflect the Association for Operations Management (APICS) Certified Supply Chain Professional (CSCP) body of knowledge and provides the participant with a broad view of international supply chain management.
What factors have supported the growth of logistics training in the Middle East? If you look at the local market today, there is growing demand for a unified body of knowledge. The amount of knowledge and benefits a professional certification gives is the same, regardless of whether itâ&#x20AC;&#x2122;s in the Middle East, North America or Europe. In addition, companies are looking for individuals who are more focused on the function they are hired to do, and the types of certifications that are provided by our company can achieve that.
Has demand been impacted by the global recession in 2009? The recession has placed a strain on the training budgets. At the same time, companies that value their workforce will invest in training and development to ensure that employees are up-to-date, have the technical skills to perform their job and it also acts as a useful retention programme.
Yaleâ&#x20AC;&#x2122;s warehouse equipment has everything in the right place ensuring everything else runs beautifully
The productivity of any application is affected by a multitude of factors: number of pallets moved, truck reliability, operator efficiency and ease of servicing to name but a few. It is only through monitoring, controlling and measuring performance that productivity can be truly increased and cost of operation optimised. Whatever the application, Yale has a warehouse model to meet your needs.
www.yale-me.com www.arabiansupplychain.com | DECEMBER 2009
49
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
SP JAIN CENTRE OF MANAGEMENT
Looking at the Middle East’s education sector in 2009, a range of logistics courses are being offered by colleges and universities across the region. However, six years ago when S.P. Jain Centre of Management opened its campus at Dubai Knowledge Village, the scene was vastly different. In fact, when the Indian business school announced its MBA in global logistics, it was truly ahead of the game. “The importance of supply chain management in determining the profitability of companies has never been greater, especially with the global recession in full effect,” states Dr Rajiv Aserkar, professor of logistics at SP Jain Center of Management in Dubai. “With our early specialisation in the subject, we are perfectly placed to train students in developing effective logistics strategies to gain competitive advantage.” A wide spectrum of topics is covered in the postgraduate course, including managerial skills, supply chain network designs, transportation management, and performance based logistics. In addition to the Middle East campus, which is now located at Dubai International Academic City, some of the modules are taught at the business school’s facility in another global logistics hub – Singapore. “We have experienced a number of highlights this year, including a partnership with the Dubai Department of Economic Development (DED) to undertake various applied learning projects in relation to logistics. These are underway and we hope to establish new opportunities for the UAE’s logistics sector,” continues Aserkar. “In addition, our crowning achievement was receiving the Supply Chain and Transportation Award (SCATA) 2009 for Training and Education Provider of the Year.” 50 DECEMBER 2009 | www.arabiansupplychain.com
THE TUTELAGE
Following years of success as a logistics training provider in the Middle East, it seemed the perfect opportunity for The Tutelage to expand its operations around the world in 2009. With a slow and steady approach, the Dubai-based company has entered a number of lucrative markets this year, including the United Kingdom, Switzerland, Turkey, Malaysia and Pakistan. The strategy has paid dividends too, according to managing director Muhammed Asghar, who claims the number
of students attending his courses has almost doubled in comparison to last year, reaching approximately 400 people around the world. “In the past, we have covered the entire spectrum of supply chain management for students in the Middle East. However, a lot of these topics have the same relevance in other parts of the world, so our global expansion has been seamless,” states Asghar. “In addition to these universal topic areas, we have also used a number of case studies from the Middle East to showcase how regional companies are achieving supply chain excellence. In many cases, we are leading the field over here and companies in Europe, North America or Asia could learn from this.” Despite its success abroad, The Tutelage has remained loyal to its Middle Eastern roots, with an increasing number of courses being offered in the region. In particular, the company has experienced growing demand within the telecommunications sector, securing contracts with industry giants such as Etisalat and Saudi Telecom. “Our consultants are industry leaders who posses over 20 years of experience in management and training,” states Asghar. “The business has performed very strongly this year and the feedback has been very positive. We provide evaluation forms after each course and this year we have averaged a customer satisfaction rate of 97.8%, which is very encouraging.”
UNIVERSITY OF BOLTON IN RAS AL KHAIMAH With a growing list of education institutes looking at specialist logistics courses, the University of Bolton in Ras Al Khaimah (RAK) was the latest to join the bandwagon last year with its postgraduate programme in supply chain management. The faculty is covering a range of different topics with a theoretical approach in order to enhance their relevance to logistics operations in the Middle East and beyond. In addition, the flexible nature of the MSc programme includes lectures being held on weekends to encourage a wider number of professionals to enrol without affecting their work schedules. “This postgraduate programme is designed to address the needs of both the manufacturing and service services, with a detailed curriculum in supply chain management,” explains Raj Nambiar, director of administration at the University of Bolton in Ras Al Khaimah (RAK). Further to the successful launch of its postgraduate programmes, the university is planning to launch short term and CPD courses
in logistics next year. “We have initialised a plan to link with corporate organisations in the UAE as well as the rest of the Middle East to help our students gain from guest lectures and receive professional assistance in tackling complex problems of today’s work places, in addition to helping students secure quality internships and placements,” he adds. The MSc programme has been accredited by the Chartered Institute of Logistics and Transport (CILT) and the Chartered Institute of Purchasing and Supply (CIPS).
“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
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
UNIVERSITY OF WOLLONGONG IN DUBAI The University of Wollongong in Dubai (UOWD) launched its postgraduate course in logistics last year to support Dubai’s growth as a global centre of excellence for the supply chain industry. Earlier in 2009, the first batch of students from the Master of Science (MSc) programme graduated, after learning about a range of different topics, such as warehouse information systems, inventory management and strategic supply chain design. “The logistics programme has been structured to develop the skill base of students and allow them to advance into positions of greater management responsibility. In addition, students get hands-on experience in working with various logistics design software to help them prepare for life in the industry,” explains Dr David van Over, UOWD’s Faculty Dean of Business and Management. “In terms of student admission, our autumn intake has reflected a recovery from the economic slowdown and promising future of this programme,” he adds. The university also established a partnership with Maersk Logistics this year to research a number of supply chain management topics. “This partnership represents a great honour
for UOWD, as there are a handful of business schools worldwide that enjoy such status,” continues Dr van Over. “As part of the initiative, a series of guest lectures have been arranged with Maersk Logistics experts this year to reinforce the student learning process. This experience has been appreciated by our students as it enriches their learning process.” In addition to this, UOWD’s faculty is working with Maersk on numerous research
topics, such as supply chain security and sourcing trends, humanitarian logistics, port container handling and green logistics. “We are looking to establish a research laboratory on Radio Frequency Identification Technology (RFID) at UOWD in the near future,” says Dr van Over. “This will add another milestone to the curriculum, while providing a support system for local logistics companies to improve their business processes.”
Africa and Asia was particularly impressive and a decision was made to launch a central office at Dubai Airport Free Zone to overlook these regions. That was back in 2006 and we now have a dedicated team of consultants with expertise in procurement, warehousing, distribution, transportation, and project management.
maintain service levels and honour any prior commitments. This is where a consultancy firm can provide their expertise and onsite management services.
X|VISE INNOVATIVE LOGISTICS INTERVIEW: UMER SHAMS ARAKKAL, REGIONAL HEAD OF X|VISE INNOVATIVE LOGISTICS How long has Xvise Innovative Logistics been active in the Middle East market? Following our successful launch in Austria around 10 years ago, the Xvise management team has searched for opportunities to expand its business into other parts of the world. The growth of logistics activities in the Middle East,
What are some of the common issues that customers need to address in this region? A number of companies are looking to boost their productivity and need the advice of experts to help with the restructuring and reorganisation of their operations. In some cases, a strategy has already been implemented and failed, so it’s a case of damage control. We also receive a lot of interest from companies that have allocated a budget for new technology solutions or material handling systems, but need assistance with the selection process.
What are your predictions for the future of logistics activities in the region? I think the United Arab Emirates has set a benchmark for the rest of the Middle East to emulate in terms of infrastructure, customs regulations, freight forwarding, warehousing and transportation. However, under the global recession, there will be a short-term drop in warehousing and transportation prices and when that’s combined with a fall in demand, I think the 3PL sector will be involved in a price war. In the long-term, the market will start to grow, although the pace will be slower and steadier than the previous 10 years.
How will Xvise prepare for this growth? How much of a concern has the global recession been for customers in 2009? The logistics industry has not experienced this level of recession in the past 50 years and companies are searching for ways to restructure their operations and keep their costs under control. At the same time, it’s still essential to 52 DECEMBER 2009 | www.arabiansupplychain.com
Dubai will remain our central base for the Middle East, although we’re also looking at market opportunities in Saudi Arabia, Kuwait, Jordan and other regional countries. In addition, we feel there is definitely scope for Xvise to introduce its specialisation in the Indian subcontinent, which holds a lot of appeal.
ANNUAL REVIEW 2009: TRADE ASSOCIATIONS
TRADE
A S S OC OCII AT I O N S CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT) How many members have been signed in the United Arab Emirates? We have approximately 150 members from across the shipping, transport and logistics industry, although this number continues to increase on a monthly basis. In particular, CILT is proud to have His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Group, as our patron in this country.
Are the other trade associations in this region considered competition?
ALEX BORG, REGIONAL DIRECTOR OF THE CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT)
On the contrary, we have already formed a successful partnership with Emirates Supply Chain Forum (ESCF) and plan to align our activities with associations such as the Supply Chain and Logistics Group (SCLG) and National Association of Freight Logistics (NAFL) in the future.
Can you provide a backdrop to CILT’s history as a global logistics trade association?
What have been the highlights of CILT’s regional operations in 2009?
We were established in 1919 for professionals in the supply chain and transport industry. There are currently 30,000 CILT members around the world, with our headquarters in the UK and branches in 30 different countries, including North America, Australia, Hong Kong, Pakistan and the United Arab Emirates.
Our logistics events at Emirates Aviation College were really successful this year and we even broken our attendance record with a seminar in October 2009, 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.
What are the core objectives of CILT? The primary focus is providing our members with relevant and valued services, which also lead to higher standards within the supply chain and transport industry. It’s important for people to adopt leading-edge thinking and best practice to push the industry forward, especially in these times of global uncertainty.
When did the trade association establish a presence in the United Arab Emirates? We launched a branch in Dubai around seven years ago to support a growing number of members that are based in this region. The response has been very encouraging and Emirates Group has since agreed to sponsor our activities and provide an office in Dubai.
Are you planning to develop CILT’s Middle East presence next year?
EMIRATES SUPPLY CHAIN FORUM (ESCF) Following a number of initiatives to increase its presence within the logistics industry, the membership numbers of Emirates Supply Chain Forum (ESCF) have increased to more than 200 people in the past year, with a focus on the United Arab Emirates and other countries in the Middle East and Indian subcontinent. “Our members originate from across the logistics and supply chain sector, with representatives from the Galadari Group, Daewoo, CWT-SML Logistics, Al Maha Resort, Spinneys and Samsung,” explains Kishore Sasi, chairman of ESCF and warehouse manager of Business Automation and Security Systems (BASS). “The board members all met through a logistics course in Dubai and were encouraged to continue interacting by opening a website forum. With the success of our online group, we decided to host a series of meetings and things have continued to develop as a result.” ESCF’s activities in 2009 have included a number of field trips and training sessions, covering everything from warehousing and transportation to material handling and supply chain technology. “The logistics industry is evolving at a rapid pace and looking back on the past year, our group has experienced a number of significant developments,” says Sasi. “In particular, we extended our partnership with the Chartered Institute of Logistics and Transport (CILT) and started an inhouse chapter to train members in effective communication and leadership.”
Yes, there are basically four stages in our development plan, starting with a membership drive to attract more logistics professionals from the United Arab Emirates and make them a part of the CILT family. Second, we want to boost our range of professional courses, which is something this market really needs. Third, we will arrange a larger number of programmes and networking groups. And finally, we want to expand into other countries in the region, such as Saudi Arabia, Kuwait and Bahrain. www.arabiansupplychain.com | DECEMBER 2009
55
ANNUAL REVIEW 2009: TRADE ASSOCIATIONS
JORDANIAN LOGISTICS ASSOCIATION (JLA)
When it comes to logistics trade associations in the Middle East, the Jordanian Logistics Association (JLA) is a relative newcomer, established in October 2007 to support the development of Jordan’s warehousing and distribution sector. With support from heavy hitters such as Jordan’s Ministry of Transport (MOT) and the International Federation of Freight Forwarding Associations (FIATA), its little surprise that JLA has attracted a growing list of corporate members, including the likes of Agility, DHL and TNT Express. “Logistics companies and freight forwarders are major components of Jordan’s transportation industry. However, until now, we have lacked an official association to represent these companies and encourage greater levels of industry growth,” explains JLA’s president Nabil Khatib. “As a result, we were established to protect the interests of members, raise industry standards, and take part in the implementation of regulations and laws in cooperation with the concerned authorities.” JLA hosted a number of events during its second year of operations, including its first general assembly meeting in March, which was attended by two thirds of members. “Most of the attendees were very positive about our recent achievements and JLA’s general balance sheet was approved accordingly,” adds Khatib. “However, we expected to double our membership numbers in 2009, but this was impacted by the economic crisis and we only achieved half of that number. There are signs of a recovery though and we look forward to a healthier increase in 2010.” 56 DECEMBER 2009 | www.arabiansupplychain.com
NATIONAL ASSOCIATION OF FREIGHT AND LOGISTICS (NAFL)
As the United Arab Emirates division of the International Federation of Freight Forwarders Associations (FIATA), it’s the responsibility of the National Association of Freight and Logistics (NAFL) to encourage the development of the country’s logistics industry. Although many organisations would consider this overwhelming remit a challenge, the association has succeeded in a number of importance milestones this year, including progress in making liability insurance a mandatory requirement for logistics companies operating
in the country. “The association was formed in 1992 with the objective of upholding standards in the logistics industry. We have worked really hard from the very beginning and we are now starting to see results, especially this year” explains Captain Mansoor Ghafoor, NAFL’s president for the past eight years. Vocational training has always remained a key objective for the NAFL, covering the entire spectrum of supply chain management. This was reinforced in 2007, when the association’s diploma in freight forwarding was officially validated by FIATA following a two-month accreditation process. Interest has continued to grow ever since, with more and more students being enrolled in 2009. “Training is essential for the industry and helps to protect the image of Dubai. After all, if logistics companies are performing unethically or below standard, this could potentially harm the industry’s reputation,” says Ghafoor. “NAFL received a further boost this year as we hosted the Train the Trainer (TOT) programme, where specialist trainers from other national associations came together to impart training skills. Our association is also in the process of signing a Memorandum of Association (MoU) with these bodies to procure skills and resources to develop training opportunities in our region.”
SUPPLY CHAIN AND LOGISTICS GROUP (SCLG) Keeping pace with the changing face of logistics in the Middle East is sometimes a challenge. However, with responsibility for looking after the interests of the sector, it’s a challenge that the region’s veteran trade association, the Supply Chain and Logistics Group (SCLG), has taken very seriously in 2009. Operating with the legal backing of the Dubai Chamber of Commerce and Industry, its been another year of growth for SCLG, with an increasing number of companies, individuals and students signing up for membership over the past twelve months. In fact, with a focus on boosting membership numbers in 2009, the association has welcomed a variety of prominent names, including the likes of Oracle, Dubai Investment Park, Ehrhardt + Partner Solutions (EPS), Kanoo Group, Morgan International, ProLogis and the University of Liverpool. Representatives from these companies were also present at SCLG’s second annual Global logistics and SCM Strategy Summit, which was held at the Westin Mina Seyahi Hotel in Dubai. More than 200 delegates took part in the fullday conference, with speakers and delegates travelling from various Middle Eastern
countries, in addition to Singapore, India and the United Kingdom. “Our second Global logistics and SCM Strategy Summit was a big success and focused on the latest strategies for managing global supply chains,” says Dr Kanak Madrecha, SCLG consultative committee member. “We had 18 speakers in total, in addition to 36 panellists, six moderators and six track leaders. In fact, the response was so strong that we have already announced a follow-up for 12th May 2010.” Another SCLG event in 2009 included an Iftar networking session for its recently-launched Young Professionals Initiative, which aims to connect the industry with people that are starting a career in logistics.