Logisctics Middle East by ITP Business Publishing

An ITP Business Publication

MOBILE MARKET Can the logistics industry benefit from developments in handheld computers?

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

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CONTENTS

CONTENTS Issue 57 June 2009 For the latest news and stories go to

30 02 Editor’s Letter

18 ArabianSupplyChain.com

46 Ask The Expert

In the mood to celebrate at this year’s Supply Chain and Transport Awards.

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

04 Readers Letters

20 Proﬁle: CEVA Logistics

Facing pressure to increase their supply chain efficiencies, David Dronfield from FAMCO explains why companies should consider a simple restructuring process.

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

With a massive US$800 million investment to develop its Middle East operations, CEVA Logistics is the latest global powerhouse to cement its long-term presence in the region.

07 News Update • Trade association to conduct research into the Middle East logistics industry • Aramex finalises Vodafone Qatar deal • Agility develops Asia Pacific operations • Dubai Industrial City expands storage • Triburg orders Exactus WMS solution • Al Mutlaq signs ISIS distribution contract • Success at Materials Handling exhibition • SPAN contracted for Landmark project • Eros opens flagship Jebel Ali warehouse

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

25 Mobile Market

54 Product Reviews

Can your warehouse operations benefit from the latest developments in handheld devices?

Details on the latest material handling products released in the Middle East.

30 SCATA 2009 Coverage

56 Face To Face Interview

The Middle East logistics industry celebrates its achievements at the third annual Supply Chain and Transport Awards in Dubai, with winners such as GAC, SPAN Group and TNT.

Umer Shams Arakkal, general manager of Xvise Innovative Logistics, explains how local consultancy firms are helping companies to survive the global recession.

46 www.arabiansupplychain.com | JUNE 2009

EDITOR’S LETTER

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Jason Bowman EDITORIAL Senior Group Editor Stuart Matthews Senior Group Editor, Transport Robeel Haq Tel: +971 4 435 6284 email: robeel.haq@itp.com Online Editor Ed Attwood Tel: +971 4 435 6258 email: edward.attwood@itp.com Contributors Sarah Blackman, Nadia Khan ADVERTISING Commercial Director Richard Griffiths Tel: +971 4 435 6666 email: richard.griffiths@itp.com Sales Manager Nicholas Warner Tel: +971 4 435 6361 email: nicholas.warner@itp.com STUDIO Group Art Editor Daniel Prescott Art Editor Simon Cobon PHOTOGRAPHY

Celebrating our continued success he phenomenal growth of the Middle East logistics industry is a matter of pride for the entire region. Countries such as the United Arab Emirates, Saudi Arabia and Bahrain have invested millions of dollars to develop their transportation infrastructure, while local companies such as Aramex, Agility and GAC have evolved into global powerhouses. Even international players such as TNT, Kuehne + Nagel and FedEx have flagged the Middle East as a major growth market for the future. As a chance to acknowledge our industry achievers and celebrate their success, ITP Business, publisher of Logistics Middle East magazine, hosted its third annual Supply Chain and Transport Awards (SCATA) in Dubai this month. The event, which was held in the lush surroundings of Mina A’Salam hotel, was another monumental success and attracted around 200 of the industry’s leading figureheads, arriving from countries as such as the United Arab Emirates, Saudi Arabia,

Kuwait, Bahrain, Qatar and even further afield, from Europe and the United States. We include detailed coverage on the awards in this issue of Logistics Middle East , with quotes from the winners and a special photo special from the ceremony and gala dinner. It also seems an opportune time to thank everyone that contributed to the success of SCATA 2009, from the organising committee and judging panel to the sponsors and nominated companies. The countdown has now started for next year’s ceremony and we’re keen to canvass from you any comments or suggestions for the event, either positive or negative. After all, these awards are for the Middle East logistics industry and we feel it’s important to involve the entire sector at all levels. If you would like to provide some input, please don’t hesitate to contact me on the email address below. If you have any comments to make on this month’s issue, please email Robeel Haq, senior group editor (robeel.haq@itp.com)

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

Director of Photography Sevag Davidian Chief Photographer Nemanja Seslija Senior Photographers Alan Desiderio, Efraim Evidor, Khatuna Khutsishvili Staff Photographers Leila Cranswick, Thanos Lazopoulos, Jovana Obradovic, Ruel Pableo, Rajesh Raghav, Khaled Termanini PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Production Coordinator Louise Schreiber Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin Circulation Customer Service Tel: +971 4 286 8559 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Horizon Printing Press Controlled distribution by Blue Truck Subscribe online at www.itp.com /subscriptions The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

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READERS LETTERS

New versus old

The importance of halal logistics

Dear Editor, It’s a challenging time for the Middle East logistics industry, although it’s apparent that the situation will start to improve in the next year, which means that opportunities are ahead for newcomers in the 3PL sector. After reading your cover story on RSA Logistics, followed by the feature on companies such as Global Shipping & Logistics (GSL) and Maxx Logistics, I think some of the veteran players in the sector will be faced with serious competition in the coming years. This is, of course, great news for customers, so let the battle commence! David Olson

Dear Editor, Since 2006, I have been working on my PhD in the field of halal logistics, which is a really fascinating part of the supply chain industry, not to mention a critical component in agrifood logistics. As part of these studies, I am leading the development of a global Halal Logistics Standard under IHI Alliance Ltd, which was recently launched at the World Halal Forum. If your readers would like to receive more details on the transportation, storage and handling of halal products, my contact details can be found at www.lbbinternational.com Marco Tieman, LBB International

Keeping the focus on Saudi Arabia Dear Editor, Your article on the growth of Saudi Arabia’s logistics industry was very interesting. I think the Kingdom has become a magnet for global logistics, fuelled by its economic growth, strategic location and a string of infrastructure developments. Saudi Arabia also has the largest hinterland markets in the Middle East and North Africa region, which could be used to launch goods and services to over 250 million consumers within a three-hour flying radius from the country. Sattam Al-Bukhari, Inma Pallets

Long-term vision is essential

Missing pieces of the jigsaw

Dear Editor, The material handling supplement in the last issue of Logistics Middle East was excellent. In particular, I enjoyed the interview with Navin Narayan from Acme and agreed with his assessment that short-term visions are often responsible for meltdowns and over heating. I congratulate Mr Narayan for remaining focused on the long-term by taking his customers seriously and keeping abreast with trends within the industry. Syam Menon, Malta

Dear Editor, It was interesting to read the exhibitor profiles for this year’s Materials Handling Middle East exhibition. There was a slight element of surprise though, because despite having knowledge of the industry, I’ve never heard of companies such as Shun Gin Rubber Industries, Eisenmann and George Kramp. How come the likes of Intermec, Psion Teklogix and Yale were not exhibiting? Is it because of the market slowdown? Vivek Mendiratta

Championing the smaller players Dear Editor, Congratulations to RSA Logistics for becoming the first company to start operations at Dubai Logistics City (DLC). In the past, we have heard about the likes of Aramex, Kuehne + Nagel and Danzas building their warehouse facilities at DLC, buts it’s heartening to know that smaller, family-owned companies are still able to achieve ‘industry firsts’ ahead of global heavyweights in this region. I wish RSA Logistics the best of luck for the future. Ross Cantwell

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

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REGIONAL NEWS UPDATE NEWS

Trade group to research Middle East logistics sector Industry statistics to be provided by Supply Chain and Logistics Group (SCLG) he Supply Chain and Logistics Group (SCLG) has commenced a major research project into the Middle East logistics industry, a senior official from the Dubaibased trade association has confirmed. A comprehensive range of information will be collated as part of the large-scale initiative, 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, which is something that has recently been noted by the Dubai Chamber of Commerce and Industry (DCCI),” commented Dr Kanak Madrecha, member of SCLG’s regional development committee. “Since our trade association is operated under the DCCI banner, we have launched this initiative to further expand the scope of information that can be provided to interested parties in the future.” Studies have already been initiated by Dr Cedwyn Fernandes, MBA programme coordinator at Middlesex University in Dubai and member

INDUSTRY REACTION: ACME “It’s about time. I am quite sure we could all do with a non-governmental, independent and unbiased survey of the logistics and supply chain industry in the Middle East. Getting the true picture is quite difficult in this part of the world and I look forward to seeing a set of official figures.” Navin Narayan, Acme Group

of SCLG’s consultative committee. The statistics will be developed to provide customised reports to companies with a vested interest in the regional logistics industry. “We want to have an official set of figures for the United Arab Emirates and other markets in the Middle East,” continued Madrecha. “So, for example, if companies such as DP World, Emirates Group or Dubai Logistics City made a request for specific information on the logistics industry, we will reach a position where customised reports can be provided within a month. That level of visibility will also boost the confidence of international companies to invest in this region.” According to Madrecha, the initiative was conceived by SCLG following a continued string of requests from companies that struggled to locate industry-specific data from trusted sources. “We have been approached on a number of occasions over the years, which proves that demand for such information is really strong,” he concluded. “Because our trade association is independent and unbiased, we believe it’s part of our responsibility to assist with the gathering of industry statistics and ensure the data is readily available in the coming years.”

INDUSTRY REACTION: GUST “The logistics industry in the Middle East should deﬁnitely welcome this positive development and offer their support to ensure the research centre is successfully implemented. On a personal level, I would be happy to contribute if required and look forward to discussing this with the SCLG team in Dubai.” Professor Philbert Suresh, Gulf University of Science & Technology (GUST)

INDUSTRY REACTION: CILT “Business intelligence has become an important tool for any organisation. Having information and statistics available from a leading body such as SCLG is deﬁnitely a good resource which will help organisations to be more efﬁcient and effective. CILT welcomes the scheme and looks forward to making a contribution.” Alex Borg, Chartered Institute of Logistics and Transport (CILT)

www.arabiansupplychain.com | JUNE 2009

NEWS UPDATE

NEWS IN BRIEF

Aramex handed Vodafone Qatar deal New contract is the latest in a string of deals for Aramex in the Middle East telecommunications sector

DHL Supply Chain Middle East has reported a solid performance in the first quarter of 2009, with double-digit growth in revenues and earnings before interest and tax (EBIT). “The contract logistics sector has remained robust,” said David Christmas, CEO of DHL Supply Chain in the Middle East. “While it’s essential that we manage our short-term challenges in the current economic climate, in the long-term, we are focused on delivering integrated solutions that make our customers’ lives and their business easier.” Modern Freight Company (MFC) has supported its environmental initiative with the installation of solar panels in the company’s Jebel Ali Free Zone head office. A total of six panels were mounted in the central office, with the option of further installations at a later date. “We have piloted this technology in the staff canteen and prayer room to reduce our carbon footprint,” explained Ali Saleh, MFC analyst. “If the trial is successful, we will consider the use of solar panels for other parts of our business.”

A combination of inventory management, retail distribution and value-added services will be provided to support Vodafone in Qatar

Aramex has strengthened its foothold in the telecommunications sector after securing a warehouse and transportation contract with mobile operator Vodafone Qatar. The logistics company, which announced a similar deal with Wataniya Mobile earlier this year, will provide a combination 3PL

of inventory management, retail distribution, express transportation and value-added services for Vodafone Qatar, in addition to the storage of handsets, SIM cards and marketing material. “Vodafone Qatar is the latest addition to our portfolio of telecommunication operators and reinforces our ability to service

Agility signals growth in Asia Pacific region Agility has expanded its warehouse network in Singapore to prepare for future growth in the Asia Pacific region, according to the 3PL

company’s managing director Tarek Sultan. The country was described as a “central piece” in Agility’s growth plan by Sultan during a

First Bahrain has appointed Unisono as the brand consultant for its forthcoming warehouse project in Bahrain Investment Wharf (BIW), which involves the construction of 200 storage facilities in close proximity to the new Sheikh Khalifa Port. “With the support of Unisono, we will ensure that a well-planned brand strategy is developed at the centre of this important project,” stated Amin Al Arrayed, general manager of First Bahrain. “Our first warehouses are scheduled for delivery by the end of 2009, with the entire project due for completion in late 2010.” Singapore Economic Development Board’s Lim Siong Guan with Agility’s Tarek Sultan

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the needs of this important sector, both on a regional and international basis,” said Iyad Kamal, chief logistics officer at Aramex. “We are committed to further enhancing the value proposition for our clients in this segment and will continue to offer the best integrated solutions that create optimal value.”

recent visit to the eastern city of Changi, where the company has opened a five-storey bonded facility with 6500 pallet positions, bringing its total warehousing space in Singapore to 50,000m2. “Singapore has been established as the leading shipping centre and logistics hub for Asia, providing an ideal platform to manage our growing presence in the region,” he explained. “Our local investments have grown in recent years with the extension of Agility’s Asia Pacific head office and the acquisition of Synergy, a leading provider of logistics services to the oil and gas sector. In addition, we are implementing the latest systems and technology to support the growth of demand from regional customers.”

NEWS UPDATE

Extra storage at Dubai Industrial City

NEWS IN BRIEF

Strong demand from the logistics and construction sectors leads to a significant increase in open storage Dubai Industrial City has confirmed plans to expand its open storage area by 3.5 million square feet to meet demand from the logistics and construction sectors. STORAGE

The industrial complex has 2.8 million square feet of open storage yards, which are being utilised by a handful of tenants in the United Arab Emirates. However, the expansion will

Five companies have leased the initial phase of open storage at Dubai Industrial City

more than double the available space and should be operational within the next couple of months. “Since the first phase of open storage was quickly leased by major clients and demand has continued to escalate, we were encouraged to launch our second phase on a bigger scale,” said Rashed Al Ansari, vice president of Dubai Industrial City. A significant portion of tenants have reportedly leased the outdoor area for the storage of equipment and tools, providing an alternative to the traditional use of indoor warehousing. “Our facilities were designed as a cost-effective solution for such investors,” added Al Ansari. “This success is a clear indication of our ability to bridge the shortfall in storage facilities while satisfying the needs of Dubai’s business community.”

The General Organisation of Sea Ports (GOSP) will provide land to the first tenants at Bahrain Logistics Zone this month, according to chairman Sheikh Daij bin Salman Al Khalifa. The warehousing project, which will be fully-integrated with Khalifa bin Salman Port, has already received a favourable response from several international companies, including the likes of Danzas and CEVA Logistics. “We are dedicated to attracting world-class tenants and have received the interest of more than 20 companies, both local and international,” stated Al Khalifa.

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NEWS UPDATE

NEWS IN BRIEF

Triburg orders Exactus WMS solution Logistics company invests in technology upgrade to support its business growth in the Middle East region

Ehrhardt + Partner Solutions (EPS) has reported a successful response from a recent seminar on warehouse technology, which was attended by students from SP Jain Centre of Management in Dubai. The session included a live demonstration of pick-byvoice solutions and the LFS400 warehouse management system. “Our guests were educated on how small but practical changes to warehouse operations can make a significant improvement to efficiency levels,” explained Ramon Thoms, regional manager of EPS. The National Petrochemical Industrial Company (NATPET) has selected the Infor warehouse management system to boost its supply chain operations in Saudi Arabia. The solution was recently implemented by technology firm SNS at a storage facility in Yanbu, which is operated by Almajdouie De Rijke Logistics on behalf of NATPET. “This is the first time we have implemented the Infor WMS solution at a petrochemical facility, proving our solutions are adaptable to different environments,” said SNS general manager Mario Ghosn. Aramex has extended its longterm partnership with technology firm BEAT for the development and maintenance of software applications. “We are excited about our growing relationship with Aramex,” said Mohab Murrar, founder and CEO of BEAT. “Our support has continued to mature over the years and a testament to that fact is the signing of this new agreement. We are eager to start work on this critical programme and serve Aramex in ways that provide the innovation, performance and agility.”

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Business Systems Group (BSG) is implementing the system at Triburg’s Dubai facility

Triburg Supply Chain Management (TSCM) has purchased the Exactus warehouse management system to streamline its Middle East operations. The company, which provides a range of storage and transportation services from a central warehouse in Jebel Ali Free Zone, selected the technology solution TECHNOLOGY

to boost its performance levels and support the forthcoming launch of a second facility in the United Arab Emirates, scheduled for later this year. “During the selection process, we researched the market and looked at the various systems and vendors that operate in the Middle East,” explained M.B. Mallya, managing director of

TSCM. “It became clear that Exactus was the obvious choice, especially since its range of products were intuitive, user-friendly and most importantly, provided a single integrated platform for warehouse, freight, finance and transport management. It was also compliant with Jebel Ali Free Zone documentation.” The warehouse management system will be implemented by Business System Group (BSG), a regional partner of Exactus with a strong presence in the United Arab Emirates. “We are confident that TSCM will see immediate benefit through greater control and insight across their entire organisation,” said Raheel Khan, regional director at BSG. “Our company is focused on adding value to customer operations in the most efficient and affordable way possible. Therefore, we are very excited by our partnership with this 3PL leader.”

Al Mutlaq signed as ISIS distributor in KSA Al Mutlaq United Company has signed an agreement to market, implement and support the ISIS warehouse management system (WMS) in Saudi Arabia. The software solution, which is produced by the Australian technology specialist Microlistics, can be purchased in express and advanced formats, in addition to a separate version for third party logistics providers. “More of our multinational clients, such as Nestlé, Gulf Warehousing Company and The CEVA Group, are looking to install ISIS-based systems outside of Australasia and Asia,” said Mark Dawson, managing director of Microlistics. “We want to provide the best possible support to the Saudi Arabian market and believe this should be done with local enterTECHNOLOGY

prises such as Al Mutlaq United Company,” he added. Al Mutlaq United Company, which already counts the likes of Agility, Saudi Aramco and Toyota as clients, is planning to market the warehouse management system to the logistics, fast moving consumer goods (FMCG) and oil and gas industries in Saudi Arabia.

“We are in the business of providing total solutions for the supply chain world,” said Tarig Al Mutlaq, managing director for Al Mutlaq United Company. “The ISIS technology has proven that it can handle customer operations varying in size, magnitude and complexity, and a variety of industries with a quick return on investment.”

Saudi Arabia is presenting global WMS suppliers with opportunities for future growth

Control

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Manage

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NEWS UPDATE

Bin Saeed Sheikh Ahmed the show His Highness s ate ur ug ina Al Maktoum

The team from Business Systems Group (BSG)

Solid performance at Materials Handling Middle East Geof f Wheatley

from SSI Scha

Exhibitors include SSI Schaefer, Business Systems Group (BSG), FAMCO, Interroll and SPAN Group he success of this year’s Materials Handling Middle East exhibition has supported claims that the regional logistics industry is approaching a recovery from the global recession, according to organiser Epoc Messe Frankfurt. Companies such as SSI Schaefer, Business Systems Group (BSG), FAMCO, Interroll, CHEP Middle East and SPAN Group have reported a positive response from the trade show, which was held last month at Dubai International Exhibition and Convention Centre. “This year’s event has been a record-breaking success, with more than 200 exhibitors taking part from 20 countries around the world. This marks a tremendous increase of 42% in international exhibitors compared to the previous exhibition in 2007,” commented Elisabeth Brehl, managing director of Epoc Messe Frankfurt. “Our success in 2009 can be attributed to the Dubai Government’s investment in projects such as Dubai Industrial City and Dubai

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Logistics City, which have helped to fuel a massive increase in demand for material handling products and created an exciting market, especially for foreign exhibitors who are keen to tap into a local rebound from the economic slowdown,” she added. The three-day exhibition was inaugurated by His Highness Sheikh Ahmed Bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority and chairman of the Emirates Group, who later visited the booths of numerous exhibitors and discussed the local market for material handling products. “The transportation and logistics market in the United Arab Emirates is currently one of the most dynamic in the world,” explained Sheikh Ahmed. “Its future advancement will be fuelled by innovative solutions such as the Materials Handling Middle East exhibition, along with a number of large-scale developments that are marking the country’s leadership in this important sector.”

efer

NEWS UPDATE

42%

The team from Ehrhardt + Partner Solutions (EPS)

David Dronfield talks to visitors at the FAMCO stand

increas e in exh ibitors, compar ed to th e previo Materia us ls Hand Middle ling E a st e x hib in 2007 ition

m The LOC8 tea

CILT’s Alex Borg and Mary Jacob John

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Interroll’s Bülen t Caliskan and

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www.arabiansupplychain.com | JUNE 2009

NEWS UPDATE

NEWS IN BRIEF

SPAN contracted by Landmark Group Jebel Ali Free Zone warehouse to be equipped with a customised package of material handling solutions

Royal Jordanian has announced a partnership with MK Airlines to develop a portfolio of airfreight services in Jordan and the Levant area. The agreement was signed by both parties at the recent World Economic Forum, with a focus on complementing each other’s route networks, cargo handling equipment and mutual expertise. “We are looking forward to working with MK Airlines and will continue to look for further cooperation in this vital sector,” commented Samer Majali, CEO, Royal Jordanian. Kuehne + Nagel has vowed to continue its expansion in the Middle East, despite a global slowdown in the logistics industry. The company has invested millions of dollars to develop its regional presence and become a leader in the contract logistics market. “As one of the first players to reserve space at Dubai Logistics City, we believe the emirate has massive potential to become a dominant force in the global logistics arena,” said Thorsten Meincke, senior vice president of sales and marketing, Kuehne + Nagel. SSI Schaefer is holding its latest Automation Day in the Middle East this year, following a series of similar events around the world. The company, which specialises in material handling equipment, has organised the complimentary event in Dubai to highlight the latest developments in orderpicking systems and dynamic warehousing. “This is the second Automation Day that we have organised in this region and we look forward to hosting the event in December 2009,” stated Geoff Wheatley, managing director in the Middle East and Africa.

Landmark Group has opened a storage complex with four separate warehouses to handle its supply chain operations in the region

The Landmark Group, one of the Middle East’s leading retailers, has contracted SPAN Group to design and install a comprehensive storage system for its warehousing complex in Dubai. The large-scale facility, which was recently opened in Jebel Ali Free Zone, consists of four separate warehouses with 48,000m2 of storage space for the entire portfolio of Landmark WAREHOUSE

components, such as material handling equipment from Jungheinrich and a racking system that accommodates a volume of 56,000 CBM. “However, the real highlight is a multi-tier steel structure mezzanine, which has been custom made to accommodate the different sizes of pallets,” added Al Sabra. “The system is perfect for utilising the 12 metres of vertical space that is available.”

Eros opens flagship warehouse in Jebel Ali Eros Group has expanded its regional warehouse operations to cope with growing demand for consumer electronics in the Middle East. The family-owned company, which represents a growing number of household brands such as Hitachi, Samsung and BenQ, opened its 13,000m2 warehouse in the south of Jebel Ali Free Zone last month. “Since our humble beginnings in 1967, Eros Group has grown and diversified to become a billion dirham company. One of the main reasons for this success WAREHOUSE

Products from Hitachi, Samsung and BenQ will be stocked at the Eros facility

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brands, including Babyshop, Shoe Mart and Home Centre. “Following a careful analysis of the Landmark Group’s product range, which includes fashion items, furniture and household goods, we submitted a costeffective solution that makes optimum use of storage space,” explained Sabri Al Sabra, sales manager at SPAN Group. The package offered by SPAN included a number of different

was a focus on developing an infrastructure that supports the retail sector and we are therefore proud to open our largest storage facility to date,” stated Deepak Babani, chief executive officer, Eros Group. “The main challenge with such a large facility, which is more than double the size of our first warehouse, is optimising the speed of operations and efficiency of inventory management. We have addressed these issues by incorporating a fully-fledged warehouse management system to automate all the transactions and operations,” he added.

NEWS UPDATE Michael Prof fi tt, former Dubai Logistic s City CEO

tatives with represen dership team str y lea du In LG & SC e ce th er m Members of amber of Com and Dubai Ch from DP World

200

delegate such as s from compan DP ies SkyCarg World, Emirate s o , Aram SPAN G roup atte ex and nded th second e S and Log upply Chain istics Gr summit oup

Record attendance for SCLG annual summit Event speakers predict a Middle East recovery from the global recession by the end of 2009 he Supply Chain and Logistics Group (SCLG) hosted its second annual summit at the Westin Hotel in Dubai last month, attracting over 200 delegates from companies such as DP World, Emirates SkyCargo, Aramex and SPAN Group. The event, which was endorsed by the Dubai Chamber of Commerce & Industry, addressed a number of pertinent topics for the logistics industry, including a prediction that the Middle East will commence its recovery from the global recession by the end of 2009. “The performance of the Middle East logistics industry is closely linked to the amount of trade that is happening in the region and around the world. Since the financial crisis has affected a large number of different industries, we’ve experienced a reduction in imports, exports, transhipments and local distribution,” explained Dr Kanak Madrecha, a member of SCLG’s regional development committee. “However, the situation is expected to normalise within the next six months to a year. In the meantime, we believe the the logistics

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industry needs to focus on increasing its efficiencies and reducing its operational costs, in addition to working with other industries to survive these challenging times.” The theme of this year’s event was ‘Strategies for Business Excellence’ and other guest speakers included the likes of Michael Proffitt (former chief executive officer of Dubai Logistics City), Atiq Juma Nasib (Dubai Chamber of Commerce & Industry) and Cedwyn Fernandes (University of Middlesex, Dubai). “The inaugural summit in 2008 was a great success and SCLG felt it was important to provide our members with another opportunity to network with each other and discuss topics such as surviving the global downturn,” continued Madrecha. “We attracted over 200 delegates this year, compared to 150 at the previous event, with people arriving from the United Arab Emirates, Saudi Arabia, Hong Kong, India, Amsterdam and the United Kingdom. A follow-up event is already being planned for 2010 and I’m confident the scale will be even bigger than before,” he added.

NEWS UPDATE

(Left to Right) Dubai Chamber Officials with Dr Kanak Madrecha (Dubai World), Dr Donald Tham (Canada) and Dr Dermot Carey (Ireland)

Dubai Customs Officials with Jassim Saif (Emirates Sky Cargo)

(Left to Right) Dr Ernst Schmied (Austria), Mike Lee (347 Logistics), Michael Proffitt, Dr Cedwyn Fernandes (Middlesex University) and Andreas Dur (Xvise)

www.arabiansupplychain.com | JUNE 2009

ONLINE HIGHLIGHTS

Still hungry for more news?

The online home of:

for regular updates on the Middle East logistics industry WEBSITE STATISTICS

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM Aramex Emirates SkyCargo Jebel Ali Free Zone Authority (Jafza) Agility Gulf Agency Company (GAC)

Fall in mergers for global logistics industry The global logistics industry has experienced a slowdown in mergers and acquisitions (M&A) during the first quarter of 2009, according to a trade report by PricewaterhouseCoopers (PwC). The publication, which is titled ‘Intersections: Mergers and Acquisitions’, has revealed that 18 deals were announced between January and March this year, each with a minimum disclosed value of US$50 million. In contrast, the figure was considerably higher during the previous year, with 43 deals being announced in the first quarter of 2008. “Although the overall number of deals has dramatically reduced in the first quarter, M&A activity in the transportation and logistics industry as a whole can still be considered robust, especially when compared to this sector’s activity over the past 20 years,” said Klaus-Dieter Ruske, PwC’s global transportation and logistics sector leader. “While this is a positive sign, we believe that financing and overall economic sentiment will continue to discourage a rebound in transport and logistics deals. As such, a significant increase in M&A activity is unlikely to occur until we see substantial recovery in global economies.”

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EDITOR’S CHOICES ONLINE INTERVIEW

MARKET FOCUS

Strong Association Dr Kanak Madrecha, committee member of the Supply Chain and Logistics Group (SCLG), reflects on the trade association’s recent Global Strategy Day in Dubai and provides details on a membership drive for the remainder of 2009.

Cargo Central To celebrate the Middle East’s transformation into a superhub for the global airfreight sector, ArabianSupplyChain provides a rundown of the leading facilities from countries such as Saudi Arabia, Qatar and the UAE.

SPOT POLL

Do companies have a lot of choices when selecting a warehouse management system in the Middle East?

24%

Yes, there are plenty of options available

18 JUNE 2009 | www.arabiansupplychain.com

28%

Maybe, although the market will benefit from a wider selection

48%

No, we’re lagging behind other parts of the world

COMPANY PROFILE

FULL STEAM AHEAD With a staggering US$800 million investment to develop its Middle East operations, CEVA Logistics is the latest global powerhouse to cement its long-term presence in the region. 20 JUNE 2009 | www.arabiansupplychain.com

COMPANY PROFILE

ne year seems like a relatively short period of time in the business world. However, as the global recession has cruelly proven, the switch from boom to bust can occur at the blink of an eye. Back in June 2008, for example, the Middle East was considered a land of endless opportunity for warehousing and transportation providers, with double-digit growth a regular occurrence throughout the region. Unfortunately, the financial crisis has threatened to jeopardise these glory days, and whilst the market has not actually crashed, most companies are erring on the side of caution with their development plans. There are, of course, exceptions to the rule and for the more courageous members of the logistics fraternity, it’s important to remember that the higher the risk, the higher the potential return. This philosophy seems particularly apt for CEVA Logistics, a global leader in the field that plans to revolutionise its Middle East operations over the next five years with a multi-million dollar investment. At present, the Netherlands-based company has a network of 19 offices in the Middle East and North Africa (MENA) territory, providing its customers with everything from freight forwarding and contract logistics to transportation and distribution management. The bulk of activity has traditionally centred on the United Arab Emirates, which hosts a total of nine offices and has been selected as the catalyst for CEVA’s regional expansion. “We’ve been present in the Middle East for two decades now and this region has been identified as a leading area of growth for our global operations,” states Gianfranco Sgro, president of CEVA Logistics in Southern Europe, Middle East and Africa. “To support this expansion, around US$800 million will be invested to develop our infrastructure, technology and people, with an initial focus on the United Arab Emirates. However, it’s important to be realistic about these goals, because competition is strong in the regional market and customer volumes have continued to decline with the global recession. We will need to concentrate on organic growth to offset this situation.” Benefiting from a generous budget, the company has revealed plans to significantly bolster its warehousing space in Dubai from 38,000m2 to approximately 163,000m2 by the end of the year. This includes a 65,000m2 facility that is scheduled to commence operations in October 2009 and will be located on a 123,000m2 plot of land in Jebel Ali Free Zone South. “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,” reveals Sgro. “The publishing market is also emerging in this part of the world, especially for books and magazines in countries such as the United Arab Emirates and Saudi Arabia.” CEVA has also placed a premium on employing a highly-skilled and dedicated workforce to support its growing operations in Dubai, with employee numbers expected to reach approximately 900 staff by the end of the year. “A significant amount of our regional budget has been allocated to human resources. In fact, we are investing a higher amount in people than in something like a trucking fleet at the moment, because our customers need a logistics partner with highly-skilled individuals to support them in these difficult times,” continues Sgro. The company’s recruitment drive has focused on both expatriates and local professionals, with a number of career development incentives being introduced to ensure the right

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COMPANY PROFILE

The CEVA Middle East team (from left to right) Wade Thompson, Gianfranco Sgro and Shamsudeen Ahmed

staff from this region has also been trained abroad for 12 months and recently came back to the Middle East after completing his tuition.” Looking at CEVA’s scorecard in the first quarter of 2009, it seems the recent investments have already started to pay dividends in the Middle East. In a short space of time, the company has secured contracts to handle the storage and transportation of fitness equipment for Technogym, sports gear for GO Sport, and trendy footwear for Iqdam International, the regional agent for Croc Shoes. “The general response from the local market has been overwhelming and companies are genuinely pleased that a global company such as CEVA is developing its regional presence on people are joining the team and such a large scale,” says Sgro. “Of course, progressing up the corporate ladder. with the global recession, its difficult to “We want our workforce to be fresh, forecast our financial performance this agile and flexible. There is no space year, although I know there has been for compromise,” explains Sgro. consistent growth on a month-to-month “It’s important to find the best basis in the first quarter of people for the job and retain 2009. The situation is fragile them in the long-term. At the “We are and we‘re still being costmoment, we are in talks with investing more conscious, although I believe a number of universities in in people than the recovery in the Middle the Middle East to establish East will be smooth and a partnership, where CEVA our trucking CEVA will be fully prepared employees can enrol onto ﬂeet at the for the inevitable upswing specialist courses and develop moment” in market conditions.” their skills base. A member of 22 JUNE 2009 | www.arabiansupplychain.com

COMPANY PROFILE • CEVA Logistics was established in August 2007 following a merger between the former TNT Logistics and Eagle Global Logistics • On a global level, the company has 50,000 employees operating 1200 sites in over 100 countries worldwide • CEVA’s vision is to become the most admired company in the supply chain industry with revenues of US$13.5 billion by 2010 • The company has 19 ofﬁces across the Middle East and North Africa (MENA) region, which are centrally managed through its Dubai headquarters • A number of core markets have been identiﬁed in the Middle East, including the automotive, technology, industrial, retail, oil and gas, publishing, aerospace, and healthcare sectors • There are 368 CEVA employees in Dubai, which are expected to reach 900 by the end of the year • The company’s warehousing space in Dubai is also increasing this year, from 38,000m2 to 163,000m2 as part of a major regional expansion • Recent customers in the Middle East include Technogym, GO Sport and Croc Shoes

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WAREHOUSE TECHNOLOGY

M ILE MARKET

How can warehouse operations in the Middle East benefit from the latest developments in handheld computing?

ogistics managers are facing the arduous task of boosting their supply chain efficiencies while reducing the overall cost of operations. It’s a challenging scenario and, with limited budgets on hand, the timing is perfect to scour the technology market in search of cost-cutting solutions. After all, even the smallest of improvements can produce a significant dividend on your company’s bottom line. To support this movement, the latest developments in warehouse management systems, RFID technology, and automated storage handling have lured the Middle East logistics industry towards an electronic era,

leading to the gradual (and ongoing) demise of manual processes. In particular, the mobile computing sector has experienced a period of continued growth in the region, with estimates that annual demand from customers has increased by approximately 20% over the past five years. “The penetration of mobile computing in the Middle East logistics industry has been extremely high in recent years and this trend is expected to continue in the future,” explains Parminder Kaur Saini, industry analyst at research firm Frost & Sullivan. “Although the global recession has led to budget cuts around the world, the demand for mobile devices in regional warehouses is being driven by the need for organisations to have the best systems in place. Manual procedures are no longer desirable for companies that want to lead the field.” The increased focus on mobility in the supply chain has translated to a range of new products and applications, each designed to improve the productivity of companies. In theory, the implementation of such devices will provide a user with remote access to the likes of warehouse management systems and customer relationship management software, therefore boosting the quality, speed and accuracy of their daily operations. This also has a domino effect by improving a company’s customer service levels and, ultimately, their business profitability. “These devices are capable of increasing the visibility of supply chain operations and minimising a company’s losses due to theft, management inefficiencies and damages,” continues Saini. “This is true for companies that manage their supply chain inhouse or 3PL companies that operate a network of warehouses. However, the success factor is

dependent on selecting the right product and that is sometimes a challenge.” A number of factors should be considered when selecting a mobile computer, according to Saini, especially with the growing list of suppliers that are targeting the Middle East. The initial step is completing an evaluation into current procedures, including the strengths and weaknesses, allowing a company to highlight its most prominent areas for improvement. Once this is accomplished, it’s time to search for suitable products – taking into account everything from system integration, functionality and ergonomics to ruggedness, durability and the vendor’s regional presence. “This region has emerged as a lucrative market for mobile computing and a growing number of warehouses will soon be completed in developments such as Dubai Logistics City, Bahrain Logistics Zone and Prince Abdul Aziz Bin Mousaed Economic City, which will help to fuel demand even further. This explains the presence of global manufacturers such as Intermec, LXE, Motorola, Datalogic, Psion Teklogix and Honeywell Scanning & Mobility, each offering something unique for the customer,” says Saini. “When researching the market, it’s important to remember your budget at all times and clearly list your current requirement and goals, in addition to those that are expected in the future too. Suppliers are keen to win your business, especially in the current environment, so don’t be afraid to ask lots of questions, ask for references and test the products for yourself. Such extensive research is necessary to ensure a company has chosen the right product for their operations and can lead to a faster return on investment (ROI).” www.arabiansupplychain.com | JUNE 2009

WAREHOUSE TECHNOLOGY

DATALOGIC MOBILE

LXE

Fausto Mamprin, Middle East area manager

Rudy Rubeiz, business development manager

What range of handheld computers does Datalogic provide in the Middle East?

What range of handheld computers does LXE provide to companies in the Middle East region?

We’re focused on rugged mobile computers and produce a range of products for warehouse and courier operations, in addition to retail processes.

We manufacture a complete range of rugged mobile devices, in addition to a unique range of wearable computers and scanners.

What makes your product different to others in the market? What makes your products different? Datalogic Mobile computers are tested in harsh environments to minimise the cost-of-ownership. This means our customers can eliminate their downtime and save on hidden costs.

How strong is demand for handhelds in the Middle East? Demand is strong in this region and continues to increase, especially in utility and other outdoor applications.

Our products can be operated in the most demanding environments, such as cold stores, warehousing facilities and shipping ports. In addition, the same benefits are offered across our range of products. For example, mobile computers are equipped with LXE tough-talk, which is a multi-vendor solution that allows customers to purchase a voice picking solution in the future without having to invest in new hardware.

Is there a lot of competition in the local market?

How strong is demand for handhelds in the Middle East?

It’s very competitive in the Middle East, although Datalogic has an impressive track-record of growth that has been supported by a well-established network of partners in the region.

Companies want real-time visibility in their supply chain, which is pushing demand for mobile computers in this region.

Which companies are using your products in this region?

Is there a lot of competition in the local market?

Our products are purchased by a growing number of small and medium enterprises, in addition to big companies in the retail, logistics, healthcare and telecommunication industries.

Yes, the Middle East is definitely a competitive region, although we are confident that LXE’s range of mobile products can fulfil the unique requirements of the regional market.

MOTOROLA ENTERPRISE MOBILITY

HONEYWELL SCANNING & MOBILITY

Tarek Hassaniyeh, regional sales manager

Alaa Nawash, Middle East sales manager

What range of handheld computers does Motorola Enterprise Mobility provide in the Middle East?

What range of handheld computers does Honeywell provide in the Middle East?

We provide the widest range of Enterprise Digital Assistants (EDAs) in the industry, including rugged and non-rugged options that have functionalities such as digital cameras, two-way radio, GPS and barcode scanning.

We provide the entire range of Optimus and Dolphin handheld computers, from entry-level devices to industrial-grade mobile computers.

What makes your products different? What makes your products different? Motorola offers a ‘one stop’ solution that covers a wide range of activities in the supply chain. Our products also come with a comprehensive support service.

Our devices are rugged and can survive the harshest of conditions. At the same time, they are ergonomic and recognised for their highperformance and reliability.

How strong is demand for handhelds in the Middle East? How strong is demand for handhelds? Demand has increased in recent years, which has been fuelled by economic growth in the Middle East, with more and more companies expanding their operations.

Is there a lot of competition in the local market? Customers are looking for value in terms of increased efficiency, cost savings and customer satisfaction. Although a growing number of competitors are operating in this region, the market has continued to expand and Motorola products are being used in a wide range of industries, so the situation is healthy.

26 JUNE 2009 | www.arabiansupplychain.com

Despite the economic situation, we have noticed that demand is steady for mobile computers in the Middle East, especially from companies in the logistics, healthcare and government sectors.

What are your market predictions for the future? Honeywell has forecast a period of healthy growth in the Middle East. We are looking to develop our market share in a number of different verticals, such as logistics, government and retail. In addition, I believe it’s important to boost our presence in the region and bring our solutions closer to local customers and partners. This will also improve our ability to provide a greater deal of support on a local level.

WAREHOUSE TECHNOLOGY

INTERMEC Colin Summers, regional manager, Middle East, India and Africa (MEIA) What range of handheld computers are provided by Intermec for companies in the Middle East region? 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 meter 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.

a complete solution, which includes peripherals such as printers that are normally required along with the handheld terminal.

How strong is demand for handhelds in the Middle East? My estimate is that demand for handheld products across the Middle East has grown at an average rate of 20% per annum, while Intermecâ&#x20AC;&#x2122;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 weâ&#x20AC;&#x2122;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.

Is there a lot of competition in the local market? What makes your product different to others? 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

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 non-office 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 key to our success.

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WAREHOUSE TECHNOLOGY

ER’S GUIDE

What are the factors that should be considered when purchasing a handheld computer?

IMAGERS & SCANNERS

OUTER SHELL

A number of scanners are available with handheld devices and their suitability is dependent on the customer’s specific warehousing operations. For example, with a high racking system, the imager must be able to read at long distance. Also, an increasing number of companies are using 2D barcodes and RFID technology, which are not compatible with all devices.

The casing of a handheld device will normally influence the computer’s durability. There are two primary models on offer: the eggshell and the sandwich. The eggshell design is a one-piece structure and is best for devices that will operate in the most extreme outdoor and indoor conditions, such as warehouses, distribution centres and ports. The sandwich design is a multiplepiece structure, which is suitable for less extreme environments.

SIZE

DISPLAY

The latest generation of handheld computers are generally designed with a modern and compact design, especially when compared to their counterparts from the early 2000s, making them easier to hold and lighter to carry. Of course, there is still a lot of variation in size and weight, which is normally dependent on the number of features that have been included in the computer.

Handheld computers should have a colour screen that is clear and easy-to-read, even in the harsh conditions of Middle East warehouse facilities. Unfortunately, it’s normally a challenge to improve the screen’s durability without influencing its optical quality. For example, a growing number of companies have started to use a protective layer of plastic or glass on the screen, although the brightness and overall visibility will almost certainly be reduced.

KEYPAD

BATTERY

A common problem with mobile workers is that, over time, the keyboard of their handheld device will become a shameful victim to the constant grinding and scraping that occurs in warehouse facilities. As a result, the keypad’s contents will start to fade and the computer will be increasingly difficult to operate. A superior product will incorporate a number of measures to avoid this happening, such as protective coatings or the use of coloured plastics instead of painted markings.

Selecting a handheld computer with substandard batteries will have a serious impact on your supply chain operations. For example, imagine a warehouse facility where operators are forced to recharge their mobile devices in the middle of a shift, leading to expensive delays and a higher risk of human error. There are a number of factors that contribute to power consumption, from the speed of data processing to the usage of colour screens, so remember to have a discussion with vendors about your specific requirements.

28 JUNE 2009 | www.arabiansupplychain.com

Conveniently packaged to help you deliver more than packages. It’s small, lightweight, rugged and will keep your business moving. It’s the new CN50 mobile computer from Intermec. The CN50 features ﬂexible high-speed 3G+ WWAN Radio and embedded GPS to facilitate crucial information transmission and effective routing. Plus, Enhanced Mobile Document Imaging (eMDI) provides streamlined in-ﬁeld document capture—without the additional cost and inconvenience of another device. All of this adds up to a tool that enables your business to improve efficiency, while offering new services to stay productive. For further information about the CN50 please visit www.intermec.com/cn50 or contact us at +971 4 3911940 or meainfo@intermec.com.

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

30 JUNE 2009 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

he third annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this month, 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 president of Dubai Airports cargo unit). opportunity to remember those companies “Award ceremonies in general are important and individuals that continue to achieve in defining the benchmark for excellence excellence on a daily basis,” says Issa and separating the outstanding achiever Baluch, CEO of Swift Global Logistics, from the rest of the group,” continues who served his third term on the judging Baluch. “They also provide recognition panel this year, alongside Captain Mansoor to the best performers in the field, while Ghafoor (CEO of STALCO Group and inspiring others to emulate their success.” president of National Association of Freight Gulf Agency Company (GAC) scored and Logistics), Dr Kanak Madrecha (senior an impressive hattrick at this year’s event, manager of Dubai World and founding collecting the trophies for 3PL Service member of the Supply Chain and Logistics Provider of the Year and Corporate Group), Cedwyn Fernandes (MBA Social Responsibility (CSR) of the Year, programme coordinator at in addition to Outstanding Middlesex University Dubai) Achievement of the Year. ““Award “Aw and Sebastian Thomas (logistics Other winners included TNT ceremonies are Express manager of Al-Futtaim Retail). for Express Logistics important in The panel also welcomed Provider of the Year, Unilever for deﬁning the the addition of industry icons FMCG Supply Chain of the Year, Salma Hareb (chief executive benchmark nchmark for and Ras Al Khaimah Free Trade officer of Economic Zones Zone for Industrial Area of the excellence” World) and Ali Al Jallaf (vice Year. Also continuing their winning streaks, Dubai Cargo Village 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 been selected as winners in 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,” says Walid Akawi, CEO 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.”

2009 AWARD WINNERS 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 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 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 TRAINING AND EDUCATION PROVIDER OF THE YEAR SP Jain Centre of Management MATERIAL HANDLING PROVIDER OF THE YEAR SPAN Group TECHNOLOGY PROVIDER OF THE YEAR Ehrhardt + Partner Solutions (EPS) 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 | JUNE 2009

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

SCATA 2009 LOGISTICS AWARDS LOGISTICS EXPRESS LOGISTICS PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: TNT EXPRESS

“It’s a great honour to receive the Supply Chain and Transport Award for Express Logistics Provider of the Year. There is a lot of competition in our sector and this award has truly recognised the hard work of TNT’s entire workforce in the Middle East. We have continued to invest in this important region and our customer feedback has been particularly strong this year, which is a real encouragement. The team could not be happier to now receive this prestigious accolade from the industry.” Bryan Moulds, UAE country manager, TNT Express

Previous winners: DHL Express (2007 and 2008)

LOGISTICS 3PL SERVICE PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: GULF AGENCY COMPANY (GAC)

“As supporters of the Supply Chain and Transport Awards, we are really proud to receive the trophy for 3PL Service Provider at this year’s ceremony. GAC employees have always displayed a great deal of passion and dedication when it comes to providing our customers with excellent service in the 3PL sector. On behalf of everyone at the company, I would like to thank the judges and organisers for acknowledging our continued achievements in the Middle East.” Phil Showering, general manager of logistics, Gulf Agency Company (GAC)

Previous winners: Agility (2007), Aramex (2008)

LOGISTICS FMCG SUPPLY CHAIN OF THE YEAR CATEGORY SPONSOR

WINNER: UNILEVER

“Unilever has experienced a period of change with our supply chain operations in the Middle East, with a particular focus on ensuring that the storage and transportation process is environmentally friendly. There is a certain degree of misunderstanding in the logistics industry about the cost of adopting such measures, although Unilever has proved that ‘green’ supply chains can actually save money and boost efficiency at the same time. We are confident this award will further highlight this message to other companies in the field.” Altug Kucukoglu, works director of Unilever

Previous winners: Al-Futtaim Retail (2007), Nikai (2008)

www.arabiansupplychain.com | JUNE 2009

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

SCATA 2009 SEA FREIGHT AWARDS SEA FREIGHT SHIPPING AGENT OF THE YEAR CATEGORY SPONSOR

WINNER: RAIS HASSAN SAADI (RHS)

“The Supply Chain and Transport Awards are considered a prestigious ceremony in the Middle East, so receiving this trophy in the Shipping Agent of the Year category is a great achievement for Rais Hassan Saadi. Our operations have grown in leaps and bounds over the years and despite the challenges that the industry is facing on a global level, we have continued to perform well and remain conﬁdent about the Middle East’s ability to weather the storm. Congratulations to ITP Business for hosting this successful event and thanks to the judging panel for selecting the RHS Group.” Steven Lai, business development manager of Rais Hassan Saadi (RHS) Group

Previous winners: GAC (2007), Maersk Kanoo (2008)

SEA FREIGHT SHIPPING COMPANY OF THE YEAR CATEGORY SPONSOR

WINNER: MAERSK LINE

“Although the global shipping industry is facing a number of challenges at the moment, the Middle East is expected to develop faster than any other market in the entire Maersk network. I believe this award for Shipping Company of the Year will therefore encourage the whole team to continue their pursuit of excellence and support the company’s regional growth plans. We actually won this category at the inaugural Supply Chain and Transport Awards in 2007, followed by the Shipping Agent of the Year award in 2008, so I guess we have achieved a successful hattrick in 2009.” Robert Uggla, managing director, Maersk Line UAE

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

SEA FREIGHT PORT AUTHORITY & TERMINAL OPERATOR OF THE YEAR WINNER: GULFTAINER “Gulftainer is pleasantly surprised to receive this award for Port Authority & Terminal Operator of the Year. In the past, there has been a strong focus on Dubai as a leading gateway for the maritime sector. However, thanks to this decision from the judging panel, it’s clear that people are acknowledging that other facilities in the United Arab Emirates have infrastructure that is faster, cost-effective and more productive for their operations. We will deﬁnitely celebrate this moment and would like to extend our thanks to everyone at the Supply Chain and Transport Awards.” Peter Richards, director and general manager, Gulftainer

Previous winners: DP World (2007 and 2008)

34 JUNE 2009 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

SEA FREIGHT SHIPYARD OF THE YEAR WINNER: DRYDOCKS WORLD – DUBAI “Drydocks World has developed a solid partnership with the Supply Chain and Transport Awards, after receiving the trophy for Shipyard of the Year in 2007 and 2008. It’s a great feeling to continue this momentum in 2009 and the team was conﬁdent that our achievements would be honoured once again by the judging panel. Hopefully, with hard work and determination, we will continue our winning streak at next year’s ceremony too. I would like to thank ITP Business for initiating this ceremony and bringing the industry together to celebrate its achievements.” L. Janarthanan, commercial manager of Drydocks World - Dubai

Previous winners: Drydocks World - Dubai (2007 and 2008)

For extra coverage of the Supply Chain and Transport Awards (SCATA) 2009, visit:

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SUPPLY CHAIN AND TRANSPORT AWARDS 2009

SCATA 2009 AIR CARGO AWARDS AIR CARGO CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE) WINNER: EMIRATES SKYCARGO “I’m proud that Emirates SkyCargo has received a growing number of international awards in the past year, which have honoured our various achievements on a global basis. However, being honoured at a Middle East-based ceremony such as the Supply Chain and Transport Awards is extra special and brings the focus back to our home market. This business is very much about partnership, whether it’s with freight forwarders or airports, or even the city and the region itself, so it’s great to have awards such as SCATA that bring the community together to celebrate its achievements.” Ram Menen, divisional senior vice president cargo, Emirates Airline

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

AIR CARGO CARGO OPERATOR OF THE YEAR (CARGO AIRLINE/CHARTER) WINNER: CARGOLUX “This is a proud moment for Cargolux in the Middle East, which has operated in this region for a number of decades and supported the local growth in airfreight volumes. Of course the past year has been a rollercoaster ride for the industry and we have crossed a number of hurdles along the way. I am optimistic the worst is over, so collecting this trophy for Cargo Operator of the Year is perfectly timed to motivate our team for the future. It’s important to thank the judging panel and everyone else that has been involved in making this ceremony a success.” Sherry Vaz-Arab, country manager of Cargolux

Previous winners: ACT Airlines (2007), Maximus Air Cargo (2008)

AIR CARGO AIR CARGO HUB OF THE YEAR CATEGORY SPONSOR

WINNER: DUBAI CARGO VILLAGE

“It’s an honour to receive this award on behalf of Dubai Cargo Village for the third year in a row. Our future is looking bright – we are the number one facility of our kind in the region and we intend to keep on growing and providing our clients with the kind of seamless cargo solutions they deserve. We are fortunate to win a lot of awards in different locations around the world, but it is a real pleasure to receive one in our home city and hub of Dubai. With the business proceeding at the current rate, we hope to win many more such awards in the future. Thank you for the support you have provided the industry.” Abdullah Mohammed Bin Khediya, senior general manager, Dubai Cargo Village

Previous winners: Dubai Cargo Village (2007 and 2008)

36 JUNE 2009 | www.arabiansupplychain.com

Oversized is a word that isnâ&#x20AC;&#x2122;t in our vocabulary. When we do it, we do it big. The specialist heavy lifters of the airfreight world, we do diggers to dumper trucks, helicopters to boats. At any time, anywhere and (almost) any size. Which is perhaps not surprising, with a name like Maximus. To find out more about flying above the ordinary, visit www.maximus.aero

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

SCATA 2009 JUDGES AWARDS JUDGES AWARDS TRAINING AND EDUCATION PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: SP JAIN CENTRE OF MANAGEMENT

“The market for education programmes in supply chain management was relatively limited when SP Jain Centre of Management first entered the Middle East. However, the logistics industry has since experienced a period of rapid growth, which has fuelled an increase in demand for our programmes. I think the market has started to understand the role that institutes such as SP Jain Centre of Management are playing in equipping the industry with qualified, knowledgeable and highlyefficient professionals. We’re delighted that our achievements have been recognised at the Supply Chain and Transport Awards and we look forward to participating once again in 2010.” Dr Rajiv Aserkar, S P Jain Centre of Management

Previous winners: GAC Academy (2007), Gulf University of Science and Technology - GUST (2008)

JUDGES AWARDS TECHNOLOGY PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: EHRHARDT + PARTNER SOLUTIONS (EPS)

“What a great feeling! We are humbled to receive this award and a little surprised too, because Technology Provider of the Year is traditionally considered a really competitive category at the Supply Chain and Transport Awards. I believe these awards are really important for the Middle East region, especially at a time when the logistics industry is suffering from the global recession. We have a relatively small team with large aspirations in Dubai, so receiving this honour has reinforced our achievements, not only for the industry but also the EPS head ofﬁce in Europe.” Ramon Thoms, regional manager, Ehrhardt + Partner Solutions (EPS)

Previous winners: Psion Teklogix (2007) , Business Systems Group - BSG (2008)

JUDGES AWARDS MATERIAL HANDLING PROVIDER OF THE YEAR CATEGORY SPONSOR

WINNER: SPAN GROUP

“This award is a symbol of our hard work, our presence in the market and our growth. We have worked hard in the last few years and provided a diverse portfolio of solutions to the largest companies in the Middle East, so we think we deserve it. Last year, we won a contract to become agents for Jungheinrich and we are now ranked sixth worldwide for after-sales service. I guess that was a very strong move. On the other side, we have just completed our section of Agility’s vast warehouse in Jebel Ali. So we moved from standard racking and shelving to automated and updated systems. It’s been a very strong year for us.” Ghassan Daniel, regional manager of warehouse solutions, SPAN Group

Previous winners: FAMCO (2007), SSI Schaefer (2008)

38 JUNE 2009 | www.arabiansupplychain.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

JUDGES AWARDS INDUSTRIAL AREA OF THE YEAR CATEGORY SPONSOR

WINNER: RAS AL KHAIMAH FREE TRADE ZONE

“It’s a pleasure to collect this award for Industrial Area of the Year. Ras Al Khaimah Free Trade Zone is amongst the fastest-growing free zones in the world and contributes an estimated Dhs10 billion in capital to Ras Al Khaimah’s economy. In addition, we have registered a 16% increase in revenues during the ﬁrst quarter of 2009, which reinforces our ability to maintain a competitive edge, despite the volatile business atmosphere at the moment. I would like to thank everyone at the Supply Chain and Transport Awards for recognising our achievements this year.” Ahmed Ali Suwaidi, deputy sales director of RAK Free Zone

Previous winners: Jebel Ali Free Zone (2007 and 2008)

For extra coverage of the Supply chain and Transport Awards (SCATA) 2009, visit:

www.arabiansupplychain.com | JUNE 2009

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

JUDGES AWARDS CORPORATE SOCIAL RESPONSIBILITY AWARD CATEGORY SPONSOR

WINNER: GULF AGENCY COMPANY (GAC)

“It’s really encouraging that the Supply Chain and Transport Awards include a category for Corporate Social Responsibility (CSR), because it really highlights the importance of this area for the Middle East logistics industry. To a certain degree, I actually believe this award is more important that the others, because it measures the nominee’s social conscience, rather than their business growth or ﬁnancial performance. GAC has continued to develop its CSR initiative over the past year, with a special committee now in place to ensure our operations are environmentally friendly. We also hope to encourage others in the industry to follow the same path.” Peter Bengtsson, managing partner of Gulf Agency Company (GAC)

Previous winners: ASRY - Arab Shipbuilding & Repair Yard (2007) and Aramex (2008)

JUDGES AWARDS OUTSTANDING ACHIEVEMENT OF THE YEAR CATEGORY SPONSOR

WINNER: GULF AGENCY COMPANY (GAC)

“It’s been a really successful night for Gulf Agency Company at this year’s Supply Chain and Transport Awards. We have already collected the trophies for 3PL Service Provider of the Year and Corporate Social Responsibility of the Year, so receiving the Outstanding Achievement Award is a perfect ending to the event. I believe we managed to achieve the highest number of nominations this year and collected the most awards, so on behalf of the entire team, I would like to thank the SCATA judging panel for highlighting our position as a market leader. There is pressure to match this performance at next year’s ceremony and we welcome that challenge.” Captain Gobind Kukreja, general manager of tanker shipping services, Gulf Agency Company (GAC)

Previous winners: DP World (2007) and Jebel Ali Free Zone Authority (2008)

JUDGES AWARDS HALL OF FAME AWARD CATEGORY SPONSOR

WINNER: HIS EXCELLENCY SULTAN AHMED BIN SULAYEM (DUBAI WORLD)

“Unfortunately, His Excellency Sultan Ahmed Bin Sulayem could not attend this year’s Supply Chain and Transport Awards, although I have been asked to collect this trophy on his behalf. It’s a great honour and His Excellency was particularly impressed with the diverse nature of the judging panel, which represents the entire spectrum of supply chain and transport activities in the Middle East. These awards are very prestigious and we would like to thank ITP Business and everyone that voted for His Excellency as the winner of the ﬁrst SCATA Hall of Fame award. We also send our congratulations to each of the other winners at tonight’s ceremony.” Farid Mohammed Ahmed, secretary general of Dubai World

40 JUNE 2009 | www.arabiansupplychain.com

Vision by Cargolux

Lasting partnerships in air cargo are only viable with an airline that invests heavily in the future needs of its customers. An airline that operates the newest, most economical aircraft, that values its staff as its most important asset and that runs the most powerful cargo management software available. An airline that has mapped its long-term development in the air freight market. With Cargolux you gain a partner that supports your forwarding needs today, tomorrow and for many years to come. An airline with a vision.

Cargolux. Cargo First. www.cargolux.com

Cargolux Airlines International S.A. P.O.Box 5977, OfďŹ ce No 3035 3rd Floor, Dubai Cargo Village Air Cargo Terminal Dubai Airport, Dubai U.A.E. Tel. +971 (4) 282 2071 Fax +971 (4) 2822 442 EMail: dxb@cargolux.com

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

www.arabiansupplychain.com | JUNE 2009

SUPPLY CHAIN AND TRANSPORT AWARDS 2009

44 JUNE 2009 | www.arabiansupplychain.com

ASK THE EXPERT

TAKING STOCK QUESTION: How can companies in the Middle East restructure their operations to maximise effectiveness? FIGHTING FOR SURVIVAL

A STEP-BY-STEP APPROACH

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. Take a look at how your assets are being utilised and research the true Return on Investment (ROI) for capital and human assets, whether it’s land, buildings and equipment, or shift timings.

The correct planning for warehousing facilities is based on core principles, which can also be used to benchmark your existing operations and evaluate a path for increased efficiencies. There are four factors that should be considered. The first is key objectives for the warehouse facility. This is generally the fulfilment of customer orders, with a focus on getting the right product to the right customer in the right place at the right time, at the agreed cost. Therefore, the primary objective of the warehouse operation should be fulfilling orders and secondly, ensuring sufficient stock to maintain this order fulfilment operation. The second factor to consider is inventory – in terms of what is required to ensure the picking operations are supported, and what reserve stock is sufficient to cover the stock criteria, such as order cycle times and re-supply. Remember, gaining efficiencies in manufacturing can be offset by forced inefficiencies in the supply chain.

GETTING THE BASICS RIGHT A number of common principles are traditionally utilised for the design and construction of warehouse facilities. During a boom period, a concerning number of projects will suffer from unrealistic deadlines, without a suitable amount of time for efficient completion. This is particularly apparent in the design stage, when distribution centres are hastily conceptualised from the “outside in” and fail to take into consideration the intricate details of operations. As such, the designs are not necessarily based on best practice. A simple example is the position of building columns, where the majority of column grids are not suitable for efficient storage design and will have a detrimental effect on efficiency. This could lead to a severe reduction in storage capacity and have a long-term impact on picking operations too. 46 JUNE 2009 | www.arabiansupplychain.com

THE FINAL CONSIDERATIONS The third factor is resources. What is needed to ensure the fulfilment of orders? Take a look at the capital resources that are available, such as land, building, material handling equipment, technology systems, and human resources. The fourth factor is customer specific criteria – each customer has criteria that often distinguishes it from the competition. This might be based on their unique Written by David Dronfield, business plan, divisional manager of storage and brand values, handling solutions, Al-Futtaim Auto customer & Machinery Company (FAMCO) base and

mode of operation. These should later be tabled, questioned and incorporated into the solution requirements. One outcome, for example, could be a shorter order cycle lead time, which must be maintained to ensure the competitive edge.

DESIGNING A NEW SOLUTION Having completed the analysis, the information can be collected and analysed to determine the best layout and operation of the warehouse. An efficient solution will consist of multiple storage and handling solutions, with the operations managed by an effective warehouse management system (WMS) that is supported by appropriate technologies such as radio frequency. Understand that the modern warehouse is a “dynamic” operation, where the goods flow into, through and out of the centre in a seamless chain of integrated operations. Do not think “static”. Always think of the best ways to move the goods and allow the efficient completion of orders.

REAPING THE REWARDS It’s important to remember that storage systems are designed to be adjustable. By making a small investment in the re-planning and re-arranging of systems, your company 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, 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.

• Sea and Air freight • Land Transport across Middle East • Customs Clearance Associated Value added Services • Consolidation of Cargo • Local Transportation within UAE for cargo Pick up and Delivery • Warehousing and Distribution Services • Commercial Packing and Removal

RSA LOGISTICS DWC llc , Plot No WA-2, DUBAI LOGISTICS CITY. • P.O. Box 14194, DUBAI, UAE TEL: +971 4 88 58 748/747/ 971 • FAX: +971 4 88 56 6218 • info@rsalogistics.net • www.rsalogistics.net

INDUSTRY STATISTICS

FACTS & FIGURES Air Cargo Regional & International Statistics

Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month, Logistics Middle East provides its readers with four pages of the latest information from a variety of trusted sources, including Emirates SkyCargo, Airports Council International (ACI) and Saudi Ports Authority.

EMIRATES SKYCARGO FUEL PRICE INDEX

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

350

200,000

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

320

150,000

INDEX 100 = 53.5 US cents per US gallon

290

15 May

27 Mar

281

279

100,000

17 Apr

270

260

3 Apr

264

50,000

1 May

253

230

22 May 09

15 May 09

08 May 09

01 May 09

24 April 09

17 April 09

10 April 09

03 April 09

27 Mar 09

20 Mar 09

13 Mar 09

200

MONTHLY AIR CARGO REPORT: EUROPE REGION* FEBRUARY 2009/2008

FEB 09

JAN 09

DEC 08

NOV 08

OCT 08

SEPT 08

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

MONTHLY AIR CARGO REPORT: AFRICA REGION*

YEAR-TO-DATE 2009/2008

AIRPORT/COUNTRY

FEBRUARY 2009/2008

YEAR-TO-DATE 2009/2008

AIRPORT/COUNTRY Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

97,305

-26.8

190,774

-26.9

Brussels (Belgium)

33,966

-48.2

64,039

n/a

Cologne (Germany)

40,520

-13.6

81,834

Frankfurt (Germany)

129,962

-25.4

254,171

Istanbul (Turkey)

24,399

-12.3

46,387

-11.7

Cairo (Egypt)

Leipzig (Germany)

34,897

68.8

69,866

73.1

Casablanca (Morocco)

Liege (Belgium)

32,884

-28.4

66,598

-28.2

Dar Es Salaam (Tanzania)

London Heathrow (UK)

96,731

-17.6

196,004

-14.8

Durban (S. Africa)

136

Luxembourg (Luxembourg)

49,067

-18.9

95,150

-27.3

Entebbe (Uganda)

4379

Paris (France)

142,000

-13.0

276,000

-15.2

Johannesburg (S. Africa)

20,374

Vienna (Austria)

13,730

-15.2

26,052

-18.3

Lagos (Nigeria)

Warsaw (Poland)

3868

-13.8

7639

-14.9

Nairobi (Kenya)

21,337

-13.4

42,072

-12.6

Tunis (Tunisia)

Zurich (Switzerland)

AUG 08

JULY 08

JUNE 08

MAY 08

APR 08

MAR 08

Cargo (tonnes)

% CHG

Accra (Ghana)

3659

-10.3

7816

-7.6

Addis Ababa (Ethiopia)

4590

-26.7

7731

-36.0

-12.7

Algiers (Algeria)

1780

5.4

3230

4.0

-24.5

Antananarivo (Madagascar)

881

-31.7

1729

-26.2

22,568

-1.4

49,908

3.7

4596

-6.8

9091

-7.6

1453

-33.7

2882

-22.1

-17.1

820

174.2

-11.7

8747

-17.9

-26.7

38,377

-24.9

13,831

8.8

32,789

31.0

21,375

-18.6

43,460

-14.1

1246

-15.2

2544

-5.2

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

48 JUNE 2009 | www.arabiansupplychain.com

% CHG

INDUSTRY STATISTICS

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

FEBRUARY 2009/2008

YEAR-TO-DATE 2009/2008

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

Cargo (tonnes)

1500

-26.8

3170

-20.1

Bangalore (India)

11,658

-21.0

24,057

-16.8

Bangkok (Thailand)

65,930

-34.2

133,956

-33.4

Chengdu (China)

24,561

11.2

50,363

-9.7

9523

-29.0

19,628

-26.1

Fukuoka (Japan)

17,331

-20.8

34,711

-19.4

Hong Kong (China)

200,480

-19.5

413,204

-24.5

-8.1

Jakarta (Indonesia)

33,253

6.3

69,007

1.9

Cargo (tonnes)

% CHG

26,908

-2.1

52,095

0.0

Ahmedabad (India)

Al Ain (UAE)

621

59.2

724

64.2

Amman (Jordan)

5827

-24.3

11,903

-15.6

Beirut (Lebanon)

5322

6.0

10,471

5.4

135,495

0.3

265,871

-1.3

Colombo (Sri Lanka)

Fujairah (UAE)

2946

15.2

5741

10.1

Kuwait (Kuwait)

13,544

-4.8

27,410

-1.7

Muscat (Oman)

4480

-20.3

9004

Dubai (UAE)

Ras Al Khaimah (UAE) Sharjah (UAE)

183

n/a

406

n/a

Kuala Lumpur (Malaysia)

39,250

-29.1

79,655

-28.7

-3.4

47,002

-4.2

Manila (Philippines)

20,107

-30.0

39,510

-30.7

Mumbai (India)

40,013

-15.7

79,897

-12.8

Osaka (Japan)

39,190

-43.4

76,448

-44.7

Seoul (Korea)

13,263

-2.4

26,541

-2.9

Shanghai (China)

138,890

-17.1

273,262

-25.8

Singapore (Singapore)

114,490

-20.6

233,732

-22.4

Taipei (Taiwan)

73,953

-34.7

146,167

-41.6

Tokyo (Japan)

113,536

-33.5

223,828

-34.2

FEBRUARY 2009/2008

Anchorage (USA) Buenos Aires (Argentina)

% CHG

24,064

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

YEAR-TO-DATE 2009/2008

% CHG

Abu Dhabi (UAE)

FEBRUARY 2009/2008 Cargo (tonnes)

Cargo (tonnes)

YEAR-TO-DATE 2009/2008

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

123,435

-31.3

255,922

-31.2

9769

-37.2

20,056

-33.5

Chicago (USA)

73,827

-30.3

150,932

-29.2

Los Angeles (USA)

100,639

-24.3

203,341

-24.3

Memphis (USA)

276,706

-9.0

575,848

-7.3

Mexico City (Mexico)

23,279

-27.4

46,505

-28.4

The Chartered Institute of Logistics and Transport International is a uniquely established global professional body.

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

For up-to-date figures, visit:

The Chartered Institute of Logistics and Transport United Arab Emirates, is an Approved Centre of the CILT International to offer their full qualiﬁcations and endorsed programmes. We take pride in bringing the internationally recognized professional qualiﬁcations in Logistics and Transport and facilitate them at your doorsteps.

The Chartered Institute of Logistics and Transport International is the leading professional body associated with logistics and transport. With over 33,000 members in over 30 countries worldwide, CILT holds unparalled professional international recognition. It is an organisation that offers significant benefits to all its members, as well as a complete suite of educational courses internationally. Established in 1919 and receiving its Royal Charter in 1926, the Institute has an exciting history behind it, but it always adapting to stay consistent with current logistics and transport issues. The Institute’s Patron is HRH Queen Elizabeth II. Candidates who succesfully pass the qualifications, may be awarded post designatory letters for (MILT) and Chartered Member (CMILT). This is a badge of international recognition.

For more information contact us:Tel: +971 4 2187804 / 5 / 6 Mobile: +971 509724872 / +356 99429536 Fax: +971 4 2832906 Email: alex@ciltuae.org / ssm@keyworld.net www.ciltuae.org / www.cilt-international.com

P.O. Box 28444, Emirates Aviation College, 1st Floor, Al Garhoud, Dubai, UAE Tel: +971 4 21878404 / 5 / 6, Fax: +971 42832906 Mobile: +971 509724872 / +356 99429536 Email: info@ciltae.org / ssm@keyworld.net. www.ciltuae.org / www. cilt-international .com

www.arabiansupplychain.com | JUNE 2009

INDUSTRY STATISTICS

FACTS & FIGURES Sea Freight Regional & International Statistics

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

FUJAIRAH BUNKER FUEL PRICE INDEX 800

20 July

726.5 700

600

20 June

639

BUNKER FUEL PRICE INDEX: MIDDLE EAST REGION PORT / COUNTRY

IFO380

IFO180

MGO

MDO

n/a

362.5

378.5

547.5

n/a

Jeddah (Saudi Arabia)

390

770

n/a

Khor Fakkan (UAE)

n/a

Port Sultan Qaboos (Oman)

345

360

550

n/a

Dammam (Saudi Arabia) Fujairah (UAE)

500

20 May

400

362.5

300

20 Mar

200

366

513

n/a

Kaohsiung (Taiwan)

386

389

545

530

Shanghai (China)

n/a

Singapore (Singapore)

353

359

481

n/a

BUNKER FUEL PRICE INDEX: NORTH EUROPE REGION* PORT / COUNTRY

BUNKER FUEL PRICE INDEX: SOUTH EUROPE REGION*

IFO380

IFO180

MGO

MDO

Copenhagen (Denmark)

361

391

511

466

Algeciras (Spain)

Gothenburg (Sweden)

354

384

507

463

Hamburg (Germany)

337

352

495

445

336.5

358.5

484.5

446.5

n/a

Rotterdam (Netherlands) St Petersburg (Russia)

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

20 May 09

362

20 Apr 09

Hong Kong (China)

100

20 Mar 09

533

20 Feb 09

543

20 Jan 09

390

20 Dec 08

379

20 Nov 08

Busan (Korea)

20 Oct 08

MDO

20 Sep 08

MGO

22 Aug 08

IFO180

20 Jul 08

IFO380

217

20 Jun 08

PORT / COUNTRY

244

20 Nov

BUNKER FUEL PRICE INDEX: ASIA & OCEANIC REGION*

PORT / COUNTRY

IFO380

IFO180

MGO

MDO

344

360

510

n/a

Fos (France)

374.5

424.5

545.5

n/a

Gibraltar (Gibraltar)

343.5

358.5

509

n/a

Istanbul (Turkey)

352

363

507

n/a

Piraeus (Greece)

354

366

483

n/a

BUNKER FUEL PRICE INDEX: SOUTH AMERICA REGION*

IFO380

IFO180

MGO

MDO

Houston

345.5

357

n/a

453.5

PORT / COUNTRY

Los Angeles

375.5

390.5

506

494

Montevideo (Uruguay)

n/a

New Orleans

343

349

n/a

457

Panama Canal (Panama)

350

372

530

n/a

New York

351

363

n/a

529

Rio de Janeiro (Brazil)

n/a

Seattle

n/a

Santos (Brazil)

360

378.5

511.5

n/a

Buenos Aires (Argentina)

IFO380

IFO180

MGO

MDO

375

395

594

568

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

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INDUSTRY STATISTICS

COMMODITY DISCHARGED DETAILS: FEBRUARY 2009 3.5 million

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority FEBRUARY 2009

YEAR-TO-DATE

CARGO TYPE Discharged

Loaded

Discharged

Loaded

1,063,370

544,182

2,217,839

1,122,769

Bulk cargo (liquid)*

259,177

4,908,048

983,957

9,853,273

General cargo

373,899

57,628

781,802

100,692

1,631,117

1,328,419

3,342,404

2,726,908

Ro-Ro and vehicles

123,977

12,840

291,292

25,739

Livestock

16,045

n/a

33,221

n/a

3,467,585

6,851,117

7,650,515

13,829,381

3 million

Bulk cargo (solid)

2.5 million

Containers (in tonnes) 2 million

TOTAL 1.5 million

TOTAL PORT THROUGHPUT

10,318,702

1 million

21,479,896

2009

2008

CONTAINERS (TEU)

500,000

Total cargo discharged

Other cargo discharged

Consumer goods

Vehicles

Food and foodstuffs

Construction

February

Year-to-Date

February

Year-to-Date

Discharged

152,819

314,092

176,167

362,331

Loaded

169,964

367,968

176,240

370,469

TOTAL

322,783

682,060

352,407

732,800

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

For up-to-date figures, visit:

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01 1 02 2 03 04 05 EVENTS CALENDAR 06 07 0809 10 111 112 13 3 14 15 116 6 17 17 18 8 19 1 20 211 2 22232425 2627282930 EVENTS CALENDAR

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry 15th - 17th June 2009 RFID LIVE MIDDLE EAST

13th - 15th October 2009 TRANSOMAN

18th - 20th October 2009 INTERNATIONAL FREIGHT WEEK

The programme for this year’s RFID Live Middle East will focus on how the latest developments in RFID technology have helped companies to improve their operations in a number of different sectors, including the logistics, construction and oil and gas industries. A panel of regional and international experts will be available throughout the three-day event, including Vasihuddin Khan (Emirates SkyCargo), Rashid Bin Saifan (DP World) and Mike Meranda (Tagstone). VENUE: InterContinental Hotel, Dubai Festival City EMAIL: MiddleEastReg@rﬁdjournal.com WEBSITE: www.rﬁdjournalevents.com

Transoman, the Sultanate’s leading trade event for transportation, shipping and logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are effecting the domestic market’s development. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities that are expected to arise in the local supply chain sector. VENUE: Oman International Exhibition Centre EMAIL: ebrahim@oite.com WEBSITE: www.oite.com

Airlink International is the latest company to confirm its participation in this year’s International Freight Week, which is scheduled to take part at Abu Dhabi’s National Exhibition Centre on 18th-20th October 2009. Over 800m2 of floor space has already been reserved for the event, according to organiser IIR Middle East, with Airlink International joining other confirmed exhibitors such as Etihad Crystal Cargo, Dubai Logistics City, Maximus Air Cargo and SSI Schaefer. VENUE: Abu Dhabi National Exhibition Centre EMAIL: sanjay.sehgal@iirme.com WEBSITE: www.internationalfreightweek.com

3rd - 5th November 2009 SITL DUBAI

25 exhib 0 ito e

7th – 8th December 2009 SCM LOGISTICS MIDDLE EAST

7th – 8th December 2009 KUWAIT LOGISTICS CONFERENCE

Organised by Reed xpect rs are e Exhibitions, the inaugural part i d to take nS SITL Dubai exhibition will Duba ITL i take place in November 2009 with a predicted 250 exhibitors from the supply chain and transportation sector. The show, which is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West, will include a global shippers forum, hosted buyer programme and RFID space. VENUE: Airport Expo, Dubai EMAIL: amanda.westerman@reedexpo.ae WEBSITE: www.sitldubai.com

Figureheads from the retail, distribution and manufacturing sectors are gathering at SCM Logistics Middle East this year to brainstorm the challenges of rising costs, inadequate logistics infrastructure and cross border hurdles, and how these can be overcome by implementing effective distribution, logistics and supply chain strategies. The event will include a number of keynote speakers, such as Vikas Bansal (Nikai), Swapan Choudhury (Landmark Group) and Sherif Riad (Kraft Foods). VENUE: Fairmont Hotel, Dubai EMAIL: stella.teo@terrapinn.com WEBSITE: www.terrapinn.com

Facing the global recession with a desire to sustain economic growth, Kuwait is exploring alternatives in the new parliament that will position the country on the path of progress and prosperity. To support this initiative, and highlight the importance of the supply chain sector, the first Kuwait Logistics Conference is taking place in December 2009 to explore the opportunities and challenges ahead. Topics will include reverse logistics, RFID technology and building strategic partnerships. VENUE: Hilton Hotel, Kuwait EMAIL: translogistique@gmail.com WEBSITE: www.gust.edu.kw/glf

9th December 2009 SSI SCHAEFER AUTOMATION DAY

19th - 21st January 2010 CEMAT MIDDLE EAST

24th – 27th January 2010 DEFENCE LOGISTICS

SSI Schaefer is holding its latest Automation Day in Dubai this year, following a series of similar events around the world. The company, which specialises in material handling equipment, has organised the free event to update Middle East customers and partners on the latest developments in orderpicking systems and dynamic warehousing. A venue will be confirmed shortly and companies are invited to register their interest by using the contact details below. VENUE: Dubai, United Arab Emirates EMAIL: info@ssi-schaefer.ae WEBSITE: www.ssi-schaefer.ae

Deutsche Messe, a global organiser of trade exhibitions, has launched a Middle Eastern version of its CeMAT event, which takes place at Dubai Airport Expo Centre in January 2010. Similar in format to other shows in the CeMAT franchise, which take place in Hannover, Shanghai, Istanbul and Bangalore, the exhibition will focus on the core sectors of warehousing technology, internal transport systems for logistics, and materials handling operations. VENUE: Dubai Airport Expo Centre EMAIL: ashok@messe-me.com WEBSITE: www.cemat-me.com

Following the success of the previous Defence Logistics seminar in January 2009, with speakers including Professor Philbert Suresh from the Gulf University of Science and Technology (GUST) and Tarek Al Mousa from Agility Defence and Government Services (DGS), the show will return in 2010 to provide delegates with firsthand examples on how a joint logistics process can support both national and international missions. VENUE: Abu Dhabi, United Arab Emirates EMAIL: enquiry@iqpc.ae WEBSITE: www.iqpc.com

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PRODUCTS

AL THIKA Material handling specialist Al Thika has launched RollerForks in the Middle East to capitalise on the growing number of companies that are loading their trailers and containers with slipsheets instead of pallets. Manufactured by Meijer Special Equipment, the product is designed to load a container in minutes without the need for expensive ‘push pull’ attachments on the forklift. In addition, RollerForks can be used as regular forks for standard operations in a warehousing facility. WEB: www.althika.ae TEL: +971 4 3471001

THARO SYSTEMS Tharo Systems has expanded its range of barcode printers with the H400 and H600 series, which are designed to provide a compact solution for the labelling of commercial products. The company has selected a durable, all-metal construction to help the printers operate in harsh environments, including the extreme heat and dust of Middle East storage facilities. Customers also benefit from a selection of standard features, such as a high-speed USB 2.0 interface for the transfer of data, a realtime clock to stamp the time and date on labels, and a free version of the Tharo Systems’ EASYLABEL software. WEB: www.tharo.com TEL: +1 330 2734408

JUNGHEINRICH Jungheinrich has expanded its range of products with the ERE225 pedestrian pallet truck. The model, which is equipped with 3-phase AC technology, has been designed for fast and efficient lorry loading, unloading and transportation over longer distances. In addition, the truck can achieve a speed of up to 12.5 kilometres per hour and can carry loads of 2500 kilograms. Customers also benefit from standard features such as electrical steering and curve control, where the tiller has to be locked by approximately 70° for a 90° corner, ensuring safe cornering and straight travel. WEB: www.jungheinrich.com TEL: +971 4 2895111

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PRODUCTS

DICKSON

TOYOTA

Dickson has enhanced its range of data loggers with the SP325 and SP425 models, which are designed to monitor the temperature and humidity of shipping containers and warehouses. A range of standard features are included with both models, including a high-speed USB connection for data transfers, a userreplaceable battery, and a digital screen that displays the latest information of temperature and humidity conditions. WEB: www.dicksondata.com TEL: +1 630 5433747

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

www.arabiansupplychain.com | JUNE 2009

FACE TO FACE INTERVIEW

EXPERT ADVICE Umer Shams Arakkal, general manager of Xvise Innovative Logistics, explains how consultancy firms are helping companies to survive the global recession. How long has Xvise Innovative Logistics been active in the Middle East region? 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, 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. Can you remember the company’s first assignment in the Middle East? We secured a contract to restructure the supply chain operations of a Dubai-based food distributor that supplied its products to retail outlets, hostels, institutions and camps in the United Arab Emirates and Oman. It previously took the customer over 10 days to deliver its products, however since we finished the assignment, the deliveries are completed within 24 hours. Have certain industries been particularly receptive to your services in this region? Logistics consultancy has appeal for a number of different industries, although demand is traditionally strong from the 3PL, electronics and fast moving consumer goods (FMCG) sectors. In addition, we’re often invited to speak at Middle East trade seminars and universities. 56 JUNE 2009 | www.arabiansupplychain.com

What are some of the common issues How much of a concern has the global that customers need to address? recession been for customers? A number of companies are looking to boost The logistics industry has not experienced their productivity and need the advice this level of recession in the past 50 years of experts to help with the restructuring and companies are searching for ways to and reorganisation of their operations. In restructure their operations and keep their some cases, a strategy has already been costs under control. At the same time, it’s implemented and failed, so it’s still essential to maintain a case of damage control. We service levels and honour any “Companies also receive a lot of interest from prior commitments. This is companies that have allocated where a consultancy firm can need the advice a budget for new technology provide their expertise and of experts to o help solutions or material handling onsite management. h restructuring with systems, but need assistance their operations” with the selection process. What are your predictions for the future of logistics activities in the region? How many consultancy firms in the region specialise in logistics? I think the United Arab Emirates has set Such companies are relatively limited, a benchmark for the rest of the Middle East although self-employed consultants are to emulate in terms of infrastructure, also available with logistics expertise and customs regulations, freight forwarding, contacts. At the same time, customers are warehousing and transportation. However, generally more confident about selecting under the global recession, there will be a proven company with a successful a short-term drop in warehousing and history. One factor that differentiates transportation prices and when that’s Xvise from the pack is the fact that combined with a fall in demand, I think we combine our local expertise the 3PL sector will be involved in a price with know-how and techniques war. In the long-term, the market will start from a European background. to grow, although the pace will be slower and more steady than the previous 10 years. In general, do companies in the Middle East show a reluctance to How has Xvise started to prepare for spend on consultancy services? this long-term growth in the region? The situation has improved because Dubai will remain our central base for the companies are starting to understand Middle East region, although we’re also the benefits of hiring a consultant. Of looking at market opportunities in Saudi course, there are still occasions Arabia, Kuwait, Jordan and other emerging when we have to educate Middle Eastern economies. In addition, the customer. It helps to the logistics market in India has reached provide examples, such an all-time high and we feel there is definitely as a client that saved scope for Xvise to introduce its specialisation one million dirhams in the subcontinent and provide the local on a racking system players with critical support. However, our after we discovered development plans have a strong focus on it wouldn’t improve growing at a steady pace and ensuring the their efficiency. quality of service continues to prosper.

Global Shipping & Logistics LLC is happy to announce the construction of its 2nd phase of warehouse operations in Dubai Investment Park (DIP) in addition to achieving 4 ISO standards. Since 2006 GSL has built up a portfolio of premium clients who have been using GSL’s superior warehouse infrastructure, systems and operational capabilities

Total Capacity of 55000 Pallets / 99000 CBM • FMCG • IT & TELECOM • FOOD & BEVERAGES • HIGH STREET RETAIL • CONSUMER ELECTRONICS • FURNITURE & FURNISHINGS

• State-of-the-art Warehousing Infrastructure • Fully Automated Material Handling Systems • Integrated Warehouse Management Systems (WMS) • Real Time Inventory visibility • Web Based Order Management • Cold Storage (-25ºC to 4ºC) • Temperature Controlled Storage (+18ºC to 25ºC) • 24 hours Security and Trained Personnel • Transportation Services (Refrigerated & Dry) • Fast & Efficient Custom Clearance & Documentations (C&F) • Direct to Store Distribution • Co-Packing and Value Added Services (VAS)

P.O. Box 2022, Dubai Investment Park, Dubai, United Arab Emirates Tel: +971-4-8851566, Fax: +971-4-8851577, E-mail: info@gsldubai.com

Website: www.gsldubai.com