Logistics Middle East - May 2010 by ITP Business Publishing

An ITP Business Publication Licensed by Dubai Media City

POWER PLAYER Celebrating Jafza’s 25th anniversary of operations with CEO Salma Hareb

WISE INVESTMENTS NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

MAY 2010 ISSUE 68

BAHRAIN BRILLIANCE

TOP

MIDDLE 10 WAREHO EAST USE HU WHIC BS H DEV HAVE TO ELOPMENTS PP ANNUA ED OUR L LI IN 2010 ST ?

Revealing the Kingdom’s grand masterplan to turn its logistics zone into the Middle East’s most awaited warehousing hub

GAC LOGISTICS

DNATA І

TTL SHIPPING & LOGISTICS

AGILITY

Hamad Fakhro, assistant director general of Bahrain Logistics Zone

A look at the multi-billion dollar logistics complex at Dubai Investments Park

SSI SCHAEFER

CONTENTS

CONTENTS Issue 68 May 2010 For the latest news and stories go to

24 02 Editor’s Letter

16 ArabianSupplyChain.com

32 Dubai Investments Park

A celebration of the Middle East’s growing portfolio of warehouse developments.

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

Why DIP’s final phase of development will be a flagship 500,000m2 logistics complex.

04 Readers Letters

18 Top 10 Warehousing Hubs

40 Ask The Expert

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

With massive investments in the Middle East’s warehousing portfolio, which of the region’s trade zone have been included in Logistics Middle East’s Top 10 list for 2010?

GAC’s Phil Showering explains the factors to consider in the selection of a warehouse hub.

07 News Update • United States Defence Logistics Agency (DLA) replaces Agility as regional partner • CEVA to expand Middle East warehousing • Diversey signs contract with RSA Logistics • Dnata opens new carbon neutral terminal • GAC delivers giant transformers in Kuwait • FedEx provides support to ‘flying hospital’ • Momentum Logistics expands UAE offices • Al Hassani goes live with Exactus system • EPS opens facility in Dubai Logistics City

42 Facts And Figures

24 Cover: Bahrain Logistics Zone

Transportation statistics from a variety of regional and international sources.

How Bahrain Logistics Zone (BLZ) has been marketed as the Middle East’s most promising development for storage and transportation.

46 Events Calendar

28 Profile: Jebel Ali Free Zone Celebrating the 25th anniversary of Jafza operations with Salma Hareb, chief executive officer of Economic Zones World (EZW).

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

48 Face To Face Interview A look at the success of TTL Shipping and Logistics in conflict zones around the world.

28 40

www.arabiansupplychain.com | May 2010

EDITOR’S LETTER

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Managing Director ITP Business Karam Awad Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Commercial Director Fareed Dubery EDITORIAL Senior Group Editor Robeel Haq Tel: +971 4 210 8597 email: robeel.haq@itp.com Contributors Nadia Khan, Ed Attwood, Sarah Cowell ADVERTISING Commercial Director Fareed Dubery Tel: +971 4 210 8381 email: fareed.dubery@itp.com Sales Manager Jayant Dey Tel: +971 4 210 8246 email: jayant.dey@itp.com STUDIO Group Art Editor Daniel Prescott Designer Lucy McMurray

Celebrating the Middle East’s warehouse hubs

s the Middle East continues to develop its portfolio of warehouse hubs, the options available for companies has never been greater. Of course, selecting the most appropriate base for your supply chain operations is probably one of the most important decisions a company can make, with little room for mistakes. This month’s issue of Logistics Middle East is therefore an essential resource for anyone that has committed to opening a warehouse facility, but has been overwhelmed with the sheer scale of developments in countries throughout the region. With Jebel Ali Free Zone celebrating its 25th anniversary of operations, the timing for this month’s theme is perfect. We are joined by Salma Hareb, chief executive officer of Jafza’s parent company Economic Zones World (EZW), who looks back at a flurry of activity in the past two-and-a-half decades, which have seen desert land near the port transformed into one of the world’s most successful logistics trade zones. Our cover story on Bahrain Logistics Zone, together with a profile of the supply

chain complex being developed at Dubai Investments Park, also highlights some of the projects to watch in the future. Both of these developments have created a great deal of buzz within the industry and promise to support the Middle East’s flourishing reputation as a world-class logistics hub. Finally, we roundup the theme with a top 10 list of developments in the region and an expert column from Phil Showering, general manager of logistics services at GAC Dubai, who highlights the factors that companies should consider when making a choice between the Middle East’s various trade zones. And which of these warehousings hubs have been short-listed for trophies at this year’s Supply Chain and Transport Awards (SCATA)? Our latest update on the event includes a complete list of finalists, which you will find on pages 36-38. If you have any comments to make on this month’s issue, please email Robeel Haq, senior group editor of Logistics Middle East magazine (robeel.haq@itp.com)

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

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READERS LETTERS

An ITP Business Publication Licensed by Dubai Media City

RECRUITMENT TRENDS Keeping track of the latest recruitment trends in the regional logistics sector

LEASING LOWDOWN NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALS

APRIL 2010 ISSUE 67

Toy story of the The economic growth the region Middle East has turned for into an exciting playground does tricks Toys”R”Us. But what up its the global retailer have increasingly sleeves to manage its complicated supply chain? for One could be forgiven chain manassuming that supply is fun and agement for toy retailers operations are games. After all, the the stringent largely unburdened by l requirements of a pharmaceutica or the cool chain, for example, cargo. transportation of hazardous chalHowever, the logistics toy retailers lenges facing today’s ﬁckle nature actually lie within the of the market itself. covbeing gadget The latest renn oone dren ldren ildren eted by millions of children and tttteenn aan otten ott ggotten gott rgotte rrgotten orgotten forgott forgot fo forg forgotten ly bbee fforgo ily sily day can easily rdifferletely ddiffe mppletely om com completely th a cco aced with laced placed eplaced replaced

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ent alternative the next. With the industry relying what toys heavily on anticipating and to what are going to sell best, issues, extent or volume, further life, speedy such as short product seasonal deproduct turnover and challenges mand, can also present for the supply process. of this The silver lining to all booming is, of course, the big along business that toys bring respect with them - and in this been has the Middle East region sources, thriving. According to in the the UAE is ranked eighth es inn countries top ten toy importing the world. oy toy sstt tto as ast East ddll E ddle iddle Mi Mid hee Middle tth the With ty hefty iimated at a hef sttimated estimated ellff ees sself ttself itsel its iitself et it ket rket arket mar market marke an with year, er S$ billion pper US$1.5 US$ US U growth impressive 11.8% annual to toyy es rate, setting up a successful

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invested mill The Midd in a stat ion expans has produ le East’s busin ion e-of-the of succe ced an overw ess community -art war programme, helming ss common stories over ehousin Al the years number g facilityBayader Inte growing tales of small , enterpriseswith into region rnat in Dub internationa al and ai’s Jebe ional local entrep l powerhous sometimes l Ali even es. It’s reneurial tion to spirit and perhaps the succe less busin ed that has determ inaresulted dreams essmen turnin in count into g their This is profitable realiti ambitious certai es. H ad, Hadd nly the chief the case with B Bayad Nidal executive er office bbuu ess International, busin who starte r of Al opera tions back huum le hum hu humb d his supplier in Tod T Today oda , his od of foods 1990 as a multti-milli company has tuff packaging. multi turned on maarrrk marke into a rke kketplace dollar player in the , with exxp expan xpand operations plans to signifi regional “I look “I in the comin cantly lo at lo the nati nation g years tiio ioonna nal al as the birth of Al Bayad . beginning Hadd ddddaad er ad expla e of an advenInterins. “It’s j neey journ ey and ture,” been an a markett n we’ve gaine m marke exciting Al Bayad kno ledge kn know d unriva er’s CEO off the busin lled and under Nidal Hadd bbuusiness stand customers. challe ad ahs meerrs. mers me rs. I would nges faced ing invested been built by millions buil atee itself uiilt ilt on on creati sayy our succe our in mate ships hipps ss has ps and ng excel competito anndd provi an rial hand customersfrom comp proovidin pro pr etitorrss ers with iding id dingg custo lent partne highes highe ling solut b provi by hest stt stand off dispo a innov an ssttanda sta stan omers andar i mers with rme mers ionss ndar ndard ding ding sposa ddards ards ard ar ards sable dss in ssolut so solu soluti oolutio ti tive catalo ble produ nnovaative ith the l ti in innov tions.” innnova in inn tth focused focu focus atalog ns ” ns.” ““poteential nnovat ov ovati ducts vative logue used a ativ cts cts, ggue tive tiv ts, edd on ntially ivv packi s,, which uue whichh whi o vibran ally p lyy bland Al Bayad vvibra vib ibbrant ib bland and ran ng ng aare ar annd groun and annt col rree hheav “Th “The Thee ffact The Th heeav heavi er has attem ndd borin olourrs, rounddbrea aavvily avil bboo ingg”. illyy il act th ac r dbbreakkingcolou atte that A tempt gg””. eekk finish mpted certai standd out ct that All Bayad pted ing functi sleek finishes eedd to tainly nly a bold ayade t differ ader’s es ddiffe entictiona strongly B er’s o lity. onalit b r’s p old entid moore more has given m mo move y. It’s y. ore ovee away nality r tradit on super produ on It I cts tr ven rm market mar ffrom fro the marketplaceional desig the comp the comp mpan designs th paany shel shelvves nyy anoth petii i pe es , which ns available “We don’tetition ,” hhee says ther edge dge over in the Haddad over with confid settle describes tions c nfiden ions ons and fo for dence en ence. a as ce.. wantt to r run-of-the f-th mill f-thewhen design m so tthink hinkk ou Founded Founded Fo o ssoluolu oluoutssidee ooutsid in 1973 with a iggning ing our th the oou po single hee bo box p portfo port ssto store x tor tto ore o rtfolio re in Ba folio olio B Bahrain, the Landmark lio off pprodu pro ccts. ts ts. Gro Gr G Group ro ro rou oup up u ph has e emerged

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ment centres for children and teens), Foodmark (Division franchising Mango Tree, The Meat Company, Carluccio’s, La Gaufrette, Bazerkan and Ushna) Gourmet Station (Specialty food offeringstore),Spaces (Grooming and relaxation centres) and Citymax Hotels (Comfortable budget hotels).

Sethi

“We provide a value-driven product range for the entire family and quality is not of price for Landmark a question . Across our retail concepts, the company has strived to provide value at every price point,” he explains. “Our various offerings have evolved into the preferred choice for consumers and have become category killers.” While a number of chief executiveshavemade similar larrcclaims ms in the Middle dle e East East, Eas st, t, the the th he fact fac fa act a ct tha th tthat hat Landmark andmark ndmark dmark dma mark ark rk k Gro Grou Group Gro ou up ph hass achieved a ha

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A LOOK AT THE EXPERTS THAT MANAGE SOME OF THE REGION’S MOST CHALLENGING AND COMPLEX SUPPLY CHAIN OPERATIONS

with larr has emerged sed brands, a aterpilla Caterpil C m recogni ents being manumost world’s world’s the United s and compon products 50 facilities across 60 other product than in to more factured out in addition s through S States, s in 23 countrie location leading wor world’s the world. mining illar is the tion and “Cate “Caterp of construc gas engines manuf cturerdiesel and natural company manufa . The equip ent, al gas turbines equipm r through provide in lar and industri services s, Caterpil als a leading al Service i also is s lar Financi s, Progres s Cate Caterpil g Service facturin lar Logistic Re Rem Remanu s and Caterpil erson. “For mana Ra Servicestates a spokesp been building Rai Rail Ali will s,” we have in partnerSe Ser Service use in Jebel 80 years, and s wareho than cture, mo more lar is im Logistic infrastru Caterpil Al-Futta th world’s the dealers, ble change on various The flagship sh with ship and sustaina East Middle positive d driving ocean to t.” s operates ions. Therefo es. lar Logistic every continen tion destinat locatio he continu as Caterpil Distribu The choices,” In Dubai, Product . s such as the PDC’s as wel product PDC (or configuration imports machine China, a flagship finished machine hub locationexplains lar a distrifrom for Caterpil s,” to conPDC involves ed to Centre) facilitie Motor Graders to im behind the has been develop HEX and Belgium, in addition In an effort n and concept Hungary, that s through Japan and of buckets from are of product bution strategy cost reductio loads “Machines and the velocity therefore improvethe tainer increase chain and by road South Africa. ially, “Essent USA and d from the PDC d the supply dealers. time to of sustaine then exporte delivery s high levels and limited PDC provide availability, short service,

DUBAI INVESTMENTS PARK І AGILITY І KANOO FREIGHT І BITO І DUBAI CUSTOMS

WAREHOUSE LEASIN G

Real estate veteran Cluttons has launc hed an industrial and logist ics team to walk client s through the warehouse leasin g mineﬁeld in the Middle East.

he growing numbe r of of clients warehouse develop and present them ments in suitabl with the most Sharjah, Bahrain e options. While the Middle East and Oman. And such services have has proved traditio with 15 years of experience nally been scarce a mixed blessing in this part of the in the sector, his for those world, skills and experience have real estate heavyw planning been instrumental eight Cluttons storage facility. While to lease a regiona l conducted developing a solid in a feasibility study the variety of options foundation for the in 2008 year of has certain ly increas to determ first ine operations. whether the concep ed in recent years, has the complexity so much potenti t had “The team carries involved in researc al in the Middle out activities that hing results were East. The were the market and selectin previously manag so encouraging g the ‘best fit’ for ed by your supply chain our that a dedicated team operations. in-house, who perhap clients was Since a poor decisio setup in January s lacked sector n could make the last year to difference betwee provide a direct “The team carries employ specific knowledge. By n triumph and failure, link between ing individuals essential that compan its warehousing with out activities that landlords and ies ask themselves specialist skills in variety of questio this ns to ensure the selectio a prospective clients. were previously we have won a numbe market , process is success n r of high “Our industrial and ful in the long-te profile clients who manag logistics naged rm. For team ed by our example, what are are keen was established the specifications to benefit to clients from our service lients of the provide warehouse? Does in-house” a the location have comprehensive provision,” continu suitable service links for produc es Wright . to clients operati t transportation Cluttons is market ng ? How in this does the leasing ing a growth sector, buildin costs number of service g on our 30 the nearby developments? compare to other years of experie s as part of industrial and logistic nce in the Middle s team, including Of course, this East consultancy and North Africa, scenario is prevale and research, outside of the Middle nt the development while also suppor ting acquisi funding , tion and propert y of this region as East too, althoug searche developed regions a global agency h logistics hub,” and marketing, estate s, disposa l such as Europe explains Will Wright and was hired North America are management to establish the division , who and valuation. equipped with special agencies that scour ist with a Although some the market on behalf team of specialists working across would question Cluttons’ decisio regiona l offices the n to launch such a in Dubai, Abu venture in the Dhabi, midst of a global recessio 32 APRIL 2010 | www.arabiansupplychain.c n, especia lly om

with the corresp onding downtu rn Middle East logistic in s, Wright believe s it was actually the perfect his team in the region. time to establish After all, a numbe of existing develop r ments, such as Jebel Ali Free Zone and Dubai Investment Park, are still expand ing to meet customer deman while emerging d, venture Logistics City, Bahrain s such as Dubai Logisti cs Zone and Prince AbdulA ziz Bin Mousaed Econom City have continu ic ed to attract multi-m illion dollar investments. “The reaction from existing clients has been very encour aging and we have been awarded a signific ant amount of instruc tion from them, in additio n to new clients being added to our portfol io. Despite the wider economic climate , it has period and the timing been a very positive seems to have been ideal,” he argues. “The quality of the business parks and the specification of propert y is also improv ing in the region to meet the interna tionally recognised standa rds. Rising values over the last 10 years coupled by operato seeking to focus rs capital has led to the emerge on core business nce of a leasing and investment market . This provided us with an opportunity to further assist clients. We believe Cluttons is the first firm to offer this service line to the market .”

With 15 years of

XXX

experience, Will Wright

was hired to establish

the industrial and

logistics division

www.arabiansupplychain.c om

4 MAY 2010 | www.arabianbusiness.com/transportation

for Cluttons

| APRIL 2010 33

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NEWS UPDATE

Agility replaced as US Defence logistics partner Latest concerns for logistics company as multi-billion dollar contract is awarded to Dubai-based rival

he United States Defence Logistics Agency (DLA) has awarded a multi-billion dollar logistics contract to the Dubai-based company Anham for distribution and support services to American forces in the Middle East. The contract, which has a base period of 18 months, was previously handled by the region’s largest provider of logistics services, Agility. However, the company is facing a high-profi le court case with accusations of overcharging the US government on three major contracts for logistics services in Iraq, Kuwait and Jordan. “It is with great gratitude and a compelling sense of duty that our team welcomes the award to expand our support for those serving in the Middle East,” stated a press release from Anham. “We have a long track record of meeting and exceeding the contract requirements and expectations of our clients, the United States Government, and all stakeholders. Our capable team will continue to build upon its legacy of delivering the best services at the best value to American taxpayers and the United States government.” Agility has denied the allegations of fraud and has expressed its commitment to serve the US Defence Logistics Agency for a transition period, with its contract expiring in December 2010. It has also dismissed a report in the Al-Qabas newspaper that Tarek Sultan is expected to resign from his position as the chairman and managing director of Agility. “We would like to thank our shareholders, our customers, and our employees for their support and commitment throughout this difficult year,” commented Sultan. “Going into 2010, we will continue to leverage our global network and strong presence in dynamic emerging markets, our niche specialties, and our culture of personal service and going above and beyond. We see

the challenges facing the company as a call to action, to build an even stronger, more flexible, efficient, and competitive Agility.” The company posted its fi nancial results for 2009 last month, with an 11% increase in net profits compares to the previous year, while revenues slipped by seven percent during the same period. However, revenues in the last quarter picked up by one percent, which Agility said was evidence of a strong fi nish to the year. “It has been a tough year, for the global economy, for the logistics industry, and for Agility,” stated Sultan. “Yet we have performed well in these challenging times by focusing on reducing costs, including a reduction in our headcount, whilst driving organic growth through a number of important new contracts.”

TIME LINE OF RECENT EVENTS FOR AGILITY • 29th January 2010: Agility was expected in court to reach a settlement with the US government over alleged overcharging on US$8.5 billion worth of contracts. However, the session was postponed. • 30th March 2010: Agility asked the Kuwait Stock Exchange to suspend trading in its shares and delay the release of its full-year 2009 financial results until Tuesday 6th April 2010. • 8th April 2010: Agility dismissed a report in the Al-Qabas newspaper that its chairman Tarek Sultan was expected to resign from the firm. • 9th April 2010: A preliminary agreement is reached in Agility’s US court case, according to a report in Kuwait’s Al-Jarida newspaper. • 13th April 2010: Agility suffered another blow with claims that US authorities had slapped the logistics firm with a fresh indictment. • 18th April 2010: The US Defence Logistics Agency (DLA) awarded a multi-billion dollar contract to Anham for the shipping of food to troops in the Middle East, which was previously handled by Agility.

www.arabiansupplychain.com | MAY 2010

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CEVA to expand Middle East footprint Logistics company announces the construction of another Dubai warehouse and office in Jebel Ali Free Zone CEVA Logistics has revealed plans to build another state-ofthe-art office and warehouse facility in Jebel Ali Free Zone to support its operational growth in the Middle East. The forthcoming building, which will trigger an expansion of the company’s contract logistics capabilities, is the latest component in CEVA’s regional plan to have around 100,000m2 of warehousing space by the end of the year. “The new facility is a solid demonstration of our continued commitment to the United Arab Emirates. It will also deliver infrastructure that is tailored to meet the stringent quality and environmental standards expected,” stated Shamsudeen Ahmed, CEVA’s regional vice president in the Middle East. “This office and warehouse has been developed to host a range of business sectors, with key details included in the design that cater for key growth sectors such as retail, consumer, 3PL

Pods Bahrain has been signed as the latest anchor tenant for the Majaal warehousing development at Bahrain Investment Wharf. The company, which manufactures pre-fabricated bathroom and kitchen units, has leased 4000m2 of space at the development for its global headquarters. “I would like to welcome Pods Bahrain to Majaal’s integrated business community,” said Amin Al Arrayed, board member of Majaal. “This partnership endorses our unique offerings, which exceed market standards in secure, cost effective warehousing facilities for tenants.” DHL has expanded its customer base in Qatar with a new contract to provide the British Embassy in Doha with express courier services. “We are honoured to have been appointed as the exclusive express and logistics partner of the British Embassy in Doha, entrusted with the responsibility for meeting its requirements,” commented Daniel Kearvell, general manager of DHL Express Qatar. “This prestigious partnership has endorsed our market leadership and highly professional operation in Qatar.” Momentum Logistics introduced an Abu Dhabi office into its United Arab Emirates network last month, located in close proximity to the Police Training College. The facility is part of a region-wide expansion for the company, with additional offices being planned throughout the Middle East this year. “Since our launch in 2008, Momentum Logistics has been focused on expanding our services to become the global provider of choice for supply chain management services,” said Matthew Derrick, the company’s general manager.

8 MAY 2010 | www.arabiansupplychain.com

EZW’s Salma Hareb with Shamsudeen Ahmed and team members of CEVA Logistics

technology, healthcare, aviation, automotive, industrial, oil and energy,” he added. The purpose-built facility, scheduled for completion by the end of 2010, will incorporate the latest technology features and will be LEED (Leadership in Energy and Environmental Design) certified. “The marks another significant and concrete milestone in CEVA’s regional growth and expansion strategy,” explained

Gianfranco Sgro, president of CEVA in Southern Europe, the Middle East and Africa. “We have improved our network of local warehouses, taking our total space in Jafza zone to over 168,000m2 and our built-up area to 95,800m2. This new tailor-made warehouse facility will enable us to further optimise our logistics solutions and make CEVA a truly integrated supply chain player in the region,” he continued.

Diversey signs contract with RSA Logistics RSA Logistics has been awarded a three-year contract to provide supply chain services to Diversey in the Middle East. The family-owned company, which was the first tenant at Dubai Logistics City to commence operations, will handle Diversey’s warehousing and local distribution, including the transfer of goods from supplier to distribution centre, degregation and storage of products, and picking, packing and loading. In addition, it will manage the customer’s product distribution in the UAE. “With the way the markets were going, to secure a contract of this magnitude is definitely a step in the right direction. We are 3PL

pleased to have been entrusted with these services and we are confident about providing the best services to our ability,” stated Kirit Mehta, marketing director of RSA Logistics.

“With our expertise in logistics, supported by top-of-the-range WMS solutions and material handling equipment, we believe we are the right choice for this contract,” he added.

Kirit Mehta from RSA Logistics is confident about handling Diversey’s supply chain

NEWS UDPATE

Dnata opens carbon neutral terminal The Department of Economic Development (DED) has led a ground-breaking initiative to transform the Dnata FreightGate-5 cargo terminal into the Middle East’s first carbon neutral warehouse. Approximately US$165,000 was invested to upgrade the cargo facility, which measures around 12,000m2, with the upgrade efforts being managed by DHL’s Energy Performance and Management division. “The carbon reduction project at FreightGate-5 demonstrates the significant improvements in energy usage that can be achieved within the logistics industry,” stated His Excellency Sami Al Qamzi, director general of the DED. “Improving energy efficiency will secure Dubai’s position as the world’s logistics hub of

NEWS IN BRIEF

WAERHOUSE

Officials from Dubai DED, Dnata and DHL Neutral Services at the warehouse launch

choice. In addition to making an environment contribution, this project – if replicated across the logistics sector – will bring about large cost savings, which can eventually be passed on to the supply chain, thus boosting operational efficiency.” The upgrading of Dnata’s centre involved the installation

of energy monitoring equipment and solar powered lights, in addition to the operational training of staff. Depending on the level of activity in the coming year, the DED has predicted energy savings of between 26-40% with a return-on-investment of around two to four years.

Al Hassani Group has completed its implementation of the Aware warehouse management system in the Middle East. The software, which is produced by Exactus Systems, has been deployed in the client’s Al Quoz distribution centre and will also be implemented in a forthcoming warehouse at Dubai Investments Park. “Our philosophy is to develop long-term, high-value relationships with customers,” said Mohideen Shaikh, Exactus regional sales manager. “We are pleased that Al Hassani Group has reported productivity gains from our WMS and look forward to bringing more value to their future operations.”

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

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

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

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

www.arabiansupplychain.com | MAY 2010

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GAC delivers transformers in Kuwait Logistics company reports the successful completion of contract for Hyundai Engineering and Construction GAC was recently awarded a contract for the transportation of four mammoth transformers to the Jaber Al Ahmed “W” substation in Kuwait. The transformers, which had a weight of 210 tonnes each, were shipped from Japan on behalf of Hyundai Engineering and Construction Company. They were carefully unloaded from the vessel at Shuweikh port onto heavy-lift trailers and driven throughout the night the safest time to transport such over-sized cargo – to the Jaber Al Ahmed “W” substation. Police and other local ministry permission was required, as well as a special escort for the twenty kilometres journey. “A lot of pre-planning was required by our team to carry out such an operation,” explained Ronald Lichtenecker, managing director of GAC Kuwait. 3PL

Arte Compass, the fine arts division of Transworld Logistics, handled the recent shipment of more than 55 paintings for the ‘Jamm Art & Beyond’ auction in Kuwait. The delicate pieces, which required temperature-controlled storage and specialist handling, arrived from various countries in the US, Europe and Middle East. “This contract was completed to the full satisfaction of our client and we have already signed a few more projects for later this year,” said Warren Jacob, chief executive officer of Transworld Logistics. Geodis Wilson has continued to expand its Middle East operations with the recent opening of a new facility at Dubai Cargo Village. The office will focus on airfreight shipments, while Geodis Wilson’s existing facility will exclusively deal with warehousing operations. “With our pace of growth, we no longer had spare capacity in the old warehouse,” explained Sascha Geiken, Geodis Wilson’s UAE managing director. “As our business is increasing, particularly with the sea-air product, more warehouse space was essential.” Abu Dhabi University has hailed the success of its inaugural Global Logistics Forum and announced a follow-up event in February 2011. Around 200 people attended the first session, which took place in March, including representatives from Toll Global Forwarding, DP World and the Chartered Institute of Logistics and Transport (CILT). “Once again, we will bring global supply chain leaders to tackle the needs of the local logistics industry,” stated His Excellency Ali Saeed Bin Harmal Al Dhaheri, chairman of Abu Dhabi University.

GAC’s transport fleet needed ministry permission and special escorts for the delivery

“Despite the transformers’ massive weight and special requirements, our experienced sea freight and project team handled the job smoothly, thanks to our well-honed system. The

FedEx provides support to ‘flying hospital’ FedEx Express hosted a tour for government officials of the ORBIS Flying Eye Hospital aircraft in Dubai last month. The aircraft, maintained and supported on the ground by FedEx Express, has an onboard hospital that brings together eye care professionals and aviators to assist patients in developing countries around the world. LOGISTICS

It stopped in Dubai for around two weeks to undergo routine technical maintenance and an operational team shuffle before taking off on its next goodwill mission to the city of Dalian in Northern China. “FedEx is proud to be a global sponsor of ORBIS and the Delivering Sight Worldwide initiative to increase awareness about avoidable blindness,”

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jacking operations, for example, have to be carried out very slowly and with military precision. The excellent cooperation of our local transport partners also played an important role,” he added.

explained Hamdi Osman, senior vice president, FedEx Express Middle East, Indian Subcontinent and Africa “We are privileged to be able to provide ORBIS with critical aviation support and equally delighted with FedEx pilots, who volunteer their time to fly the Flying Eye Hospital to medical programme locations worldwide,” he added.

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NEWS UPDATE

CILT tackles supply chain finances in the Middle East

pproximately 150 delegates from across the Middle East attended a recent seminar on supply chain finances in Dubai, hosted by the Chartered Institute of Logistics and Transport (CILT). The trade event, which took place at Emirates Aviation College on 15th April 2010, included a host of speakers from companies such as Aramex, Arthur D. Little and Dubai First. “Through this forum, we wanted to give companies a real insight on the potential role that supply chain management plays in reducing their wider business model costs,” explained Alex Borg, regional director of CILT in the Middle East. 12 MAY 2010 | www.arabiansupplychain.com

“The event focused on reducing these costs and creating value without resorting to lowering a company’s supplier rates. Various global experts gave delegates their perspectives on a number of innovative concepts, which can be implemented to reduce overall supply chain expenses,” he added. Guests at the seminar attended from various companies, including Dubai Logistics City, Emirates SkyCargo, Al Tayer Logistics, Agility and Modern Freight Company. “We will evaluate the feedback from this seminar and organise a follow-up event in October 2010,” continued Borg. “It’s important to sustain this momentum and interact with the industry on relevant topics.”

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NEWS UPDATE

Paul Floyd (managing director of FAMCO) with Hermann Ehrhardt (managing director of Ehrhardt + Partner Solution)

Khalifa Al Zaffin (Dubai Aviation City Corporation) cuts the ribbon with Hermann Ehrhardt (EPS)

Ehrhardt + Partner opens Dubai Logistics City office

hrhardt + Partner Solution (EPS) welcomed around 100 guests for the opening ceremony of its regional headquarters at Dubai Logistics City (DLC) last month, with visitors arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates. The event included a keynote speech by Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation, who stressed the importance of companies such as EPS establishing their presence at Dubai Logistics City. “The opening of this EPS facility marks a strong endorsement of DLC and its business model in providing a dedicated world-class infrastructure for global logistics providers,” said Al Zaffin. “We believe Dubai Logistics City is an unparalleled platform within the Middle East and this has been validated by the growing presence of international logistics and support service providers in the local 14 MAY 2010 | www.arabiansupplychain.com

campus. In this regard, the opening of this technology centre marks another successful step in the rapid ongoing development of DLC as the region’s premier logistics destination.” The Middle East headquarters has been modelled along the same lines as Ehrhardt + Partner Solution’s own Institute for Applied Warehouse in Germany, allowing the company to share its logistics expertise and technological platforms with regional corporates, including logistics service providers. “Dubai Logistics City is where the most important logistics markets of the future will be centred,” stated Ramon Thoms, regional manager of EPS. “As a result, we thought it was essential to develop a centre to provide new warehouse solutions that will shape the future of the industry. With this opening, we are now able to implement complex warehouse projects and modernisations on-site in accordance with international quality standards.”

NEWS UPDATE Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation, provides the keynote speech

Dr. Rajiv Aserkar, professor at S.P. Jain Centre of Management

er of EPS regional manag Ramon Thoms,

ad Madhav Rao, he Group of IT at EMKE

Mohsen Al Awadhi, GM Land of Dubai Logistics City (right) is joined by other guests at the launch event

www.arabiansupplychain.com | MAY 2010

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 Agility FedEx Ehrhardt + Partner Solutions Aramex DHL Express

SSI Schaefer prepares for DLC office launch The construction of SSI Schaefer’s forthcoming Middle East headquarters will be completed at the end of 2010, the material handling specialist has confirmed in a progress report. The state-of-the-art facility, which is located in Dubai Logistics City, has been designed to contain the entire range of SSI Schaefer products and services, including its warehouse racking solutions and the latest generation of automation resources. “The development of the Middle East logistics industry has created a number of interesting opportunities for SSI Schaefer and allowed our company to significantly expand its operations in the region, where we have been present since 2002,” stated Geoff Wheatley, managing director of SSI Schaefer in the Middle East and Africa. “As a result, we have been able to increase our resources in terms of buildings and people to further develop our status in the local market. The US$3 million that has been invested in this facility is a symbol of SSI Schaefer’s deep commitment and confidence in the UAE and surrounding markets to weather the current financial storm and emerge both strong and better equipped.” A total of four companies have started operations at Dubai Logistics City over the past year, including Ehrhardt + Partner Solutions (EPS), RSA Logistics, Kuehne & Nagel and Calipar Integrated Services.

MOST POPULAR HEADLINES plane refused entry 1 Etihad into Chinese airspace settlement reported 2 $600m for Agility’s US fraud case airport closed 3 Bahrain following DHL engine blast releases CCTV images 4 Japan of FedEx cargo plane crash leaders compete 5 Logistics for ‘hall of fame’ award

EDITOR’S CHOICES PHOTO SPECIAL

VIDEO REPORT

Top 8 Shipping Ports in Saudi Arabia Which of the Kingdom’s leading seaports recorded the highest volume of cargo in 2009, according to Saudi Ports Authority (SPA)?

FedEx’s tragic Tokyo plane crash in 2009 The Japanese Transportation Safety Board has released footage of last year’s FedEx plane crash, which destroyed a Boeing aircraft.

SPOT POLL

Which GCC country will attract the most investment for logistics developments in 2010?

32.2% Saudi Arabia

16 May 2010 | www.arabiansupplychain.com

25.8% Bahrain

22.6% UAE

19.4% Qatar

Kuwait / Oman

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MIDDLE TOP 10 MIDDLE EAST WAREHOUSE EAST WAREHOUSING HUBS HUBS

TOP 10 MIDDLE EAST

WAREHOUSE HUBS With billions of dollars being invested in the Middle East’s growing portfolio of logistics trade zones, which of the region’s developed and under-development projects have been included in the annual Logistics Middle East Top 10 Warehouse Hubs for 2010?

ABU DHABI AIRPORT LOGISTICS PARK Although the development of logistics parks in the United Arab Emirates has traditionally focused on Dubai, a string of multi-billion dollar projects have recently been launched in other parts of the country. Leading the revolution has been Abu Dhabi Airports Company (ADAC), a regional powerhouse in the aviation sector with management responsibility for the airports in Abu Dhabi and Al Ain. The centrepiece of ADAC’s US$6.8 billion development strategy is Abu Dhabi Airport Business Park, which is being constructed on 12 square kilometres 18 MAY 2010 | www.arabiansupplychain.com

of land and will include around 2 square kilometres of space for a warehousing and transportation complex. The project has received a considerable amount of interest from the logistics sector, especially from freight forwarders, importers, exporters and MRO specialists – proving that demand for such developments outside of Dubai is also plentiful. The complex is being developed in two phases, with the first phase being scheduled for completion next year, while the competition of phase two will follow in 2015.

TOP 10 MIDDLE MIDDLE EAST EAST WAREHOUSING WAREHOUSE HUBS

DUBAI LOGISTICS CITY Spread over 25 square kilometres, Dubai Logistics City (DLC) has been created to handle the warehousing and transportation requirements of the Middle East for the next 40 to 50 years. The multi-billion dollar project, which is located in close proximity to Jebel Ali Port and the forthcoming Al Maktoum International Airport, will allocate 12 million square feet of land to industrial and distribution companies, with each tenant either building their own facilities or renting shared premises. The commitments to build dedicated warehouses have already come from a diverse mixture of freight forwarders and logistics providers, with RSA Logistics, Kuehne & Nagel, Ehrhardt + Partner Solutions (EPS) and Calipar Integrated Services being the first to commence operations. In addition, Eagle Industries, Integrated National Logistics, Aramex, and RSA Logistics (phase two) are also coordinating the construction of their facilities.

RAK FREE TRADE ZONE Ras Al Khaimah Free Trade Zone (RAKFTZ) has successfully marketed itself to a growing community of regional and international businesses over the years, with over 7000 companies now based at the industrial complex. Even the global recession has failed to make a dent in 2009â&#x20AC;&#x2122;s revenue figures, which increased by 11% compared to the same period in 2008 â&#x20AC;&#x201C; an achievement that has been credited to a flexible business model that easily adapts to market changes. First established in 2000, RAKFTZ is

divided into an industrial park, business park, technology park and academy zone, which are spread across the mountainous northern emirate. The majority of logistics companies are based in the industrial park, which covers 6 million square metres and offers direct access to Saqr Port; the first port available when entering the gulf. In addition, the opening of Emirates Highway has become a major selling point, almost halving commuting time between the free zone and Dubai.

www.arabiansupplychain.com | MAY 2010

MIDDLE TOP 10 MIDDLE EAST WAREHOUSE EAST WAREHOUSING HUBS HUBS

BAHRAIN LOGISTICS ZONE The management team at Bahrain Logistics Zone has adopted a full throttle approach for their marketing campaign in 2010, visiting all corners of the world to promote their “boutique” logistics zone, which is located on 100 hectares of land within a few minutes from Khalifa bin Salman Port. Its little surprise, therefore, that a number of industry heavyweights have already expressed their interest in the US$280

million project, with Danzas and CEVA amongst the fi rst 20 companies to start the construction of their warehouse facilities at the site. With this in mind, it seems clear that Bahrain Logistics Zone will bring massive benefits to the Kingdom’s economy. Aside from the US$600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs

DUBAI INDUSTRIAL CITY Dubai Industrial City has emerged as another successful warehouse hub in the Middle East, carving an enviable niche for itself in the logistics industry. Launched in 2004, the complex is being developed on 56 million square feet of land, with separate zones being constructed for six different industry sectors. These will be supported with infrastructure for industrial training and labour accommodation, in addition to 2.8 million square feet of open storage yards and 3 million square feet of warehouse space. The project has proved such a success that a second stage of open storage, which measures 3.5 million square feet, is fast approaching completion and will be marketed to major automotive, equipment and construction companies.

SALALAH FREE ZONE Salalah Free Zone has been designed to provide its tenants with access to the world’s fastest growing markets, including over 1.6 billion consumers in the Middle East, East Africa and the Indian Ocean Rim. During its first phase of development, a combination of warehousing, manufacturing and industrial facilities were opened on 200 hectares of 20 MAY 2010 | www.arabiansupplychain.com

land, in close proximity to Salalah Port. The scope for expansion is considerable and a further 400 hectares will be introduced in the project’s second phase, which is currently under construction and will provide benefits such as 100% foreign ownership, no minimum capital investment requirement, and no taxes on profits or dividends for 30 years.

TOP 10 MIDDLE EAST WAREHOUSING HUBS

JEBEL ALI FREE ZONE Celebrating its 25th anniversary in 2010, Jebel Ali Free Zone has benefited from a series of major investments in the past two and a half decades, helping to boost its status as a regional superhub for warehouse operations. Over 6400 companies from 120 countries have established a base in the free zone, including global heavyweights such as Black & Decker, Procter & Gamble, DaimlerChrysler and Xerox. In addition, the past year has witnessed a number of warehouse launches and openings from logistics companies such as AW Rostamani Logistics, Gulf Agency Company (GAC), CEVA Logistics, JBC Express Freight, and Centre Point Logistics (CPL), which are mainly centred on a multi-billion dollar expansion in Jebel Ali’s south zone. To continue its growth momentum, Jebel Ali Free Zone Authority (Jafza) has recently formed a partnership with Dubai Aviation City Corporation (DACC) to establish the ‘Dubai Logistics Corridor’, which is set to become the world’s largest multi-modal logistics platform that links sea, land and air to facilitate the transportation of goods in record time.

www.arabiansupplychain.com | MAY 2010

MIDDLE TOP 10 MIDDLE EAST WAREHOUSE EAST WAREHOUSING HUBS HUBS DUBAI INVESTMENTS PARK Dubai Investments Park has outlined plans to construct a 500,000m2 logistics complex to capitalise on the success of existing supply chain operations at the development, with the list of current tenants including the likes of Global Shipping & Logistics, Agility, Logfret Middle East and Heavy Load Freight Services. According to DIP’s management team, a number of factors have contributed to this positive response, including a strategic location between Dubai and Abu Dhabi, which is also in close proximity to

the forthcoming Al Maktoum International Airport. The new logistics complex, which was launched earlier this year, will be constructed as the eighth and final phase of Dubai Investment Park’s development at a cost of US$81.5 million. This includes the building of a road network, electricity and water network, sewerage system and district cooling facilities. Construction will start this month, with completion of this section, along with all previous phases of development, expected within three years.

AQABA SPECIAL ECONOMIC ZONE

BAHRAIN INVESTMENT WHARF Bahrain Investment Wharf (BIW) is currently being constructed on a plot of land measuring 1.7 million square metres at the Hidd industrial area, in close proximity to Bahrain International Airport and the new Khalifa Bin Salman port. The ambitious development will include a dedicated logistics park with 900,000m2 allocated for supply chain activities, including warehouse storage, packaging and distribution. One of the first companies to establish a base at the project was real estate developer First Bahrain, which opened the first phase of its inaugural $45 million logistics development, Majaal, at Bahrain Investment Wharf earlier this year. 22 MAY 2010 | www.arabiansupplychain.com

With a number of transportation projects being developed at Aqaba Special Economic Zone (ASEZ), it seems the future of Jordan’s logistics industry has been placed in safe hands. In particular, Aqaba Logistics Village is being developed on 500,000m2 of land next to Aqaba Container Terminal over the next ten years at a cost of US$60 million. The first phase involved the development of infrastructure and the construction of a container terminal, distribution centre

and service centre. The second phase will incorporate an additional three distribution centres, each covering 10,000m2, together with the village headquarters and a logistics institute, while three more 10,000m2 distribution centres will be constructed in phase three. Agility and The Kawar Group have agreed to complete the village on a build, operate and transfer (BOT) basis, with Aqaba Development Corporation taking over ownership after 25 years.

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

BAHRAIN BRILLIANCE How the General Organisation of Sea Ports has successfully marketed its Bahrain Logistics Zone as the Middle Eastâ&#x20AC;&#x2122;s most promising development for warehousing operations.

24 MAY 2010 | www.arabiansupplychain.com

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

lthough the importance of marketing has often been downplayed in the Middle East logistics industry, the General Organisation of Sea Ports (GOP) has provided a text book example of how a well-structured promotional campaign can transform an unknown entity into a lucrative and highly-regarded brand. Launched in 13th May 2008, Bahrain Logistics Zone has been marketed by the GOP as a “boutique” warehousing development in close proximity to the recently-opened Khalifa bin Salman Port. For a project that would essentially compete with much larger-scale developments in the Middle East, such as Dubai Logistics City in the UAE and Prince AbdulAziz Bin Mousaed Economic City in Saudi Arabia, the sheer scale of its promotional campaign was a testimony to GOP’s belief that something special was being created. It was not limited to potential investors in the Middle East either, but spread to all corners of the world, including India, China, Japan, Russia, Germany and the United Kingdom. Its little surprise, therefore, that various industry heavyweights have already expressed their interest in the US$280 million project, with Danzas and CEVA Logistics amongst the first 20 companies to start the construction of their ambient and temperature-controlled warehouses at the site, with operations scheduled to commence in 2011. Non-logistics companies have also jumped on the bandwagon, including the likes of Awal Gulf Manufacturing, Landmark Group and Marina Gulf Trading, just to name a few. “We launched the logistics zone a couple of years ago with a sophisticated marketing campaign that focused on advertising, road shows, seminars and other activities. The unprecedented response from local and international companies has strongly indicated that we’re heading in the right direction,” states Hamad Fakhro, assistant director general of Bahrain Logistics Zone. “In fact, only a few months after we started the process for tenancy applications, we found ourselves five times oversubscribed. As a result, we have decided to increase the zone by 150% from the current one square kilometre, which should help to bridge the gap between demand and supply for warehouse facilities.” Despite the expansion, Fakhro and his team have implemented a stringent application process to ensure Bahrain Logistics Zone hosts a diverse community of tenants. “We are dedicated to ensuring our tenants are the right fit for us,” he explains. “The right kinds of tenants are those who will bring the most value to Bahrain. This means on one level the creation of jobs and increase in foreign direct investment, and also their ability to transfer knowledge to the local market and their involvement in activities which further Bahrain’s economic and cultural goals. A number of applications from potential tenants are currently being evaluated and we expect to make a series of announcements about this in the coming months.” While business friendly incentives have played an important role in attracting these tenants to Bahrain Logistics Zone, the primary focus of its marketing campaign has been location, location, location. The multi-modal development is situated adjacent to Khalifa bin Salman Port, with Bahrain International Airport only 13km away and the Eastern Province of Saudi Arabia a little over 40km in distance, offering excellent links to the Kingdom, as well as Qatar and the North Gulf markets. With this in mind, it seems clear the project will bring massive benefits to the Kingdom’s economy. Aside from the $600 million that will be generated from foreign direct investment, the project is also expected to generate 2400 medium to high-wage jobs. Moreover, it is believed that many other companies will be drawn to the Kingdom as a result of the improved logistics infrastructure and the attractive

www.arabiansupplychain.com | MAY 2010

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

Hamad Fakhro, assistant director general of Bahrain Logistics Zone, recently signed a contract with Shamsudeen Ahmed, vice president of CEVA Logistics in the Middle East

business prospects for the future. The initial success of Khalifa bin Salman Port has supported these ambitious predictions. Although cargo volumes at the shipping hub were modest when operations commenced in April 2009 - the peak of the global recession - business has steadily increased over the months and the port handled a record amount of shipments in January this year, with double-digital growth compared to previous months. Even vessel movements and productivity have outperformed a number of regional counterparts in the Middle East. “The Arabian Gulf’s economy is undoubtedly growing at a significant rate. Businesses are expanding and so are their needs for logistics and freight forwarding activities. Thus, local organisations operating in the logistics sector are facing a significant demand for warehousing needs,” continues Fakhro. “Bahrain is no exception to this accelerated growth. With the support of its forward-thinking government and the private sector, we are certainly ready to face future challenges.” Of course, other warehousing developments in countries such as the United Arab Emirates, Saudi Arabia and Oman would appear a major challenge in terms of selling Bahrain as a world-class base for supply chain operations. However, for Bahrain Logistics Zone, a certain level of competition has also emerged closer to home, with Bahrain Investment Wharf and Bahrain Investment Gateway also being launched as warehousing complexes. Fakhro appears remarkably unfazed at the mention of these developments, believing that each project will compliment the other. “At face value, some people may believe that competition exists between Bahrain Logistics Zone, Bahrain Investment Wharf and Bahrain Investment Gateway. However, we are neighbours that compliment each other. The wharf has a labour camp, for example, which could be helpful for our tenants. In the same fashion, they also have an industrial park, which could benefit from the logistics services in our zone. At the end of the day, we have a 26 MAY 2010 | www.arabiansupplychain.com

common goal to highlight the huge potential of our country, especially with the location, low cost of operations and the availability of a strong local workforce. This is something we can achieve together in the coming years.”

Fact File: Bahrain Logistics Zone • Bahrain Logistics Zone (BLZ) is a multi-modal logistics hub focusing on re-export and value-added logistics activities. • The project is designed to be a premier logistics hub in the Middle East, capitalising on the Kingdom’s proximity to Saudi Arabia, Qatar, and the North Gulf markets. • Bahrain Logistics Zone is strategically located adjacent to Khalifa Bin Salman Port and will offer state-of-the-art warehouses and land for lease. • It is 13km from the Bahrain International Airport and only 40km from the Eastern Province in Saudi Arabia, and also hosts an office for onsite customs procedures. • Land and warehousing lease is available at the Bahrain Logistics Zone with various lease options. • Bahrain Logistics Zone has already gained the attention of international logistics players and has signed lease contracts with major names in the industry, including CEVA Logistics and Danzas. • Plans to increase the size of the BLZ site by 150% from the current one square kilometre are currently underway. • Bahrain is currently ranked second within the Middle East in the World Bank’s Logistics Performance Index • Bahrain Logistics Zone assists companies in various requirements related to setting up their business through coordination and facilitation with related government agencies. • Dedicated customer service officers are assigned to BLZ tenants to cater to their specific needs.

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SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

POWER PLAYER Celebrating the 25th anniversary of operations at Jebel Ali Free Zone with Salma Hareb, chief executive officer of Economic Zones World (EZW).

28 24 MAY 2010 | www.arabiansupplychain.com

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

elebrating its 25th anniversary of operations in 2010, Hareb says with a smile. “There are many free zones around the Jebel Ali Free Zone has established itself as a global world, and several of them have failed. Sometimes it becomes superhub for logistics operations and perhaps the difficult to pinpoint the exact reasons for Jafza’s success. However, most valued asset in the Middle East’s portfolio of our comprehensive business model has played a major part in warehousing hubs. Even during the peak of a global attracting companies. The more we develop the business model, the recession, the flagship development of Economic Zones World (EZW) better package it becomes for investors.” welcomed an impressive 484 new companies in 2009, bringing the The female chief executive joined the organisation in 1997 as a total number of tenants with operations at the free zone to 6402. planning officer, later promoted to chief planning officer. However, “It has been an eventful year for Jafza and the result of our it was Hareb’s promotion to CEO that grabbed headlines around the achievements is reflected with the number of new entrants into the Middle East, and indeed the world. Despite being the first female CEO community and the level of growth achieved by our existing clients,” of a free zone in the region, and possibly the globe, Hareb remains states Salma Hareb, chief executive officer of EZW. “We have a lot unfazed about working in a male-dominated industry. And she more expansion plans for the future too, which will drive us to the admits her pioneering management technique is probably different goal of becoming the number one free zone in the world.” compared to her male counterparts. “I have learnt there are different Looking at the start of this 25 year journey, Jafza was created sensitivities between a woman handling this job and a man handling around the Jebel Ali port in Dubai to help boost the port’s business. this job. I believe men are very much attached to their work, while And within a few years, the free zone had transformed 25 women are more attached to family and the home,” she acres of desert into a world-class business environment, states. “I’m competing with people who would die for “The free zone initially encompassing 70,000m2 of warehousing and their jobs and eventually it starts getting hard. But, once 850,000m2 of covered areas. “After creating the port increased business you acknowledge the situation, it is possible to find a during the late 1970s, it became apparent the operations at the port, but the balance between personal and professional life.” port also boosted needed an industrial area to boost business,” explains While touring the Jafza building and meeting Hareb. “As a result, the free zone was created in 1985. It various employees from the organisation, it becomes the free zone successfully increased business at the port, but the port apparent Hareb is highly regarded by her personnel. operations” also boosted the free zone operations. It’s definitely a And she admits to sharing a close bond with the senior win-win situation.” management team. “I have a great relationship with Through the years, Jafza has benefited from major investments my staff, I feel quite loved,” she says. “A big group of the senior in its infrastructure and the free zone’s growth has exceeded management are friends of mine because we have worked together all expectations. The organisation offers simple administration so long. This creates a positive environment which makes me feel procedures, zero duties on import and export goods within the zone, very comfortable indeed.” p The massive development witnessed by Jafza shows no signs of aand excellent support services. “It has developed in a fast way,” says Hareb. “Over the past ten years, Jafza has seen uninterrupted year- slowing down. In particular, its south zone is being expanded to H on-year growth in the number of companies as well as the number meet high levels of demand. The huge project aims to develop specific o of their employees. In 2001, a total number of 56,663 people were industry sectors through various clusters, with an estimated cost of o eemployed by the 1537 companies then operating from Jafza. The more than AED 2 billion (US$544 million). number has risen to 139,000 people in 2009.” Despite the continued growth, the economic downturn — which n Jafza is constantly revamping its business model to remain saw six percent declines in Jebel Ali port’s volumes during the first innovative. The logistics industry itself has changed considerably nine months of the year — has slowed down operations for free zone in over the past ten years and Jafza has successfully kept pace with companies. Not that Hareb is too downcast. “Nowadays I think we o aalterations in customer demands. “We are doing something right,” are a bit relieved that we can cope with the demand,” she admits.

Jafza continued its successful track record in 2009 and welcomed an impressive 484 new companies, bringing the total number of tenants at the free zone to nearly 6500

www.arabiansupplychain.com | MAY 2010

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SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

As part of the continued development of Jebel Ali Free Zone, the authorities have provided the green light for various new showrooms and warehouses for tenants in the south zone

“We were really breathless trying to cope with demand but now the our coupon on time, all the time and we expect to [continue to] pay it. Dubai World will also work it out under the restructuring. demand can be kept by normal supply.” Hareb has made a number of key changes at Jafza to better cope Don’t forget this company has contributed to building a city as well amid the downturn. The timeframes in which new companies must so that’s quite important and people should not forget about that.” Although she does believe that this has been forgotten, Hareb start building their own facilities onsite have been extended slightly, while others have managed to renegotiate contracts that were also says she can understand why Dubai came under such attack. signed at peak 2008-prices. “We tried to go easy on the customers. “You can understand with the celebrity that was focused on [it] all of the time. People want to pinpoint mistakes and We have rules [such as] you have to build within six “We were really try and find something [but] Dubai is very successful months so we gave them longer periods in which to build. That helped to keep the facility without putting money breathless trying to and what Dubai has done no one else can make in the into it. Some customers were offered use of the land as cope with demand, [same] short time.” Despite last year’s slowdown, Jafza’s continued temporary storage so rather than building their own but now the demand growth is likely to see it hit target this year. “In a facility, they used it to store their goods for a while until can be kept by downturn we are still growing… For example, we they are asked to build a facility,” explains Hareb. “We also normal supply” put a lot of effort in to attract American companies negotiated some contracts that were offered at the peak of unlike European and Far Eastern companies who the market. Not for existing clients but for new clients who come easily [and] this year we had more American were offered higher rates. [This was done] on a case by case basis… We are not a real estate company but we try to make it easier companies than we expected,” says Hareb. She adds her own theory to the continued growth. “There were for customers to come and establish.” In November last year, Dubai World, Jafza’s parent company, many investors in Dubai that just wanted to invest [but] because the announced it would ask its creditors to accept a delay in all real estate went through a downturn… they thought that this was a repayments until the end of May 2010. The news sent shock waves good area to invest while they wanted for the real estate to hit across the world; markets plummeted from London to New York and bottom,” she concludes. Dubai came under a huge amount of criticism in the international press. Through their association to Dubai World, both Jafza and 2009 HIGHLIGHTS FOR JEBEL ALI FREE ZONE DP World had their credit ratings downgraded by global agencies, Moody’s and Standard & Poor’s, despite statements that the two • Jafza attracted 484 new companies last year, taking the total number were exempt from the restructuring. of companies operating at the free zone to 6402 in 2009. Hareb says both DP World and EZW have enough cash to meet • In 2001, a total of 56,663 people were employed by the 1537 companies their finance and investment needs for the foreseeable future. “There then operating from Jafza. The number has continued to increase, is no concern whatsoever for the operations of DP World and EZW. reaching 139,000 people in 2009. The payments are being paid and the cash flows of the companies can • Jafza ISO accreditation for its quality management system was recently take them forward to a few years with the existing financial plan.” upgraded to ISO 9001:2008. She adds that two days after Dubai World’s announcement, • 91 LIU/warehouses units covering an area of 52,409m2 were leased out Jafza made a coupon payment on its $2.04bn Islamic bond (sukuk). in 2009, a 15% increase compared to 2008. According to Dow Jones analyst calculations the sukuk’s payment is • The LIU 15, which is the first of its kind facility in the free zone to offer estimated to be between $34-36.7 million. a 10-metre height allowance for maximum storage, has been completely Asked if she is concerned about the effect the lower credit ratings leased out, which Jebel Ali Free Zone Authority claims is because of the will have on business in the future, Hareb answers: “Our sukuk will facility’s user friendliness. not be affected because the terms are not built on ratings… We paid 30 MAY 2010 | www.arabiansupplychain.com

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SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

Dubai Investments Park (DIP) general manager Omar Al Mesmar explains why the project’s eighth and final phase of development will be a 500,000m2 logistics complex, valued at Dhs300million. n 1997, way before the Middle East’s construction boom really took off; the management team at Dubai Investments decided to lay foundations on 24 million square metres of desert and start building a mixed-use city from scratch, before convincing local, regional and international tenants to invest their money into the project. Although many described the concept as extravagant at the time, it seems the

32 MAY 2010 | www.arabiansupplychain.com

development of integrated ‘hubs’ has since become a common pursuit among ambitious developers and contractors over the past decade, leading to a variety of more recent projects, such as King Abdullah Economic City and Doha’s Lusail City. And despite some initial concerns, Dubai Investments Park (DIP) has attracted hundreds of occupants to its residential districts, huge industrial areas and bourgeoning commercial zones, providing that the concept was a long-term winner.

“When the land was bought, it was just a large patch of desert, and out of nothing we have developed an area that is today one of the most sought-after industrial and commercial destinations in the UAE,” explains Omar Al Mesmar, general manager of DIP. Earlier this year, the company announced the launch of its final phase

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

DIP PROJECT ROUND-UP COMPLETE Phase 1: Greens Community residential villas, industrial centres and warehouses Phase 2: labour accommodation, industrial centres and warehouses Phase 3: labour accommodation, industrial centres and warehouses 75% COMPLETE Phase 4: industrial centres, warehouses, offices, showrooms, headquarters, schools, residential apartments, hotels and stuff accommodations

“The team carries out activities that were previously naged by our managed lients in-house” clients Companies such as Global Shipping and Logistics (GSL) already have warehouses at Dubai Investments Park

Omar Al Mesmar, general manager of Dubai Investments Park

50% COMPLETE Phase 5: labour accommodation, industrial centres and warehouses Phase 6: labour accommodation, industrial centres and warehouses Phase 7: labour accommodation, industrial centres and warehouses STILL TO COMMENCE Phase 8: warehouse facilities

of development, which is set to become a Investments Park have already been central hub for logistics services spread delivered, consisting of warehouses, across 500,000m2. Construction will labour accommodation, industrial units commence this month, with completion and residential areas. Phase four, which of this section, along with the entire includes warehouses, offices, showrooms, schools, residential apartments, hotels development, expected in 36 months. “The earth works have already been and staff accommodation, is currently 75% complete. completed and we are just The fi fth, sixth and seventh waiting to get approval from “Out of nothing we phases are now 50% complete Dubai Municipality, DEWA and have developed and consist of industrial the RTA before we can begin one of the UAE’s units. In fact, the industrial construction,” says Al Mesmar. most soughtzone forms a central feature “It will be constructed in two in DIP’s masterplan, with phases and each phase will after industrial facilities for manufacturing, take 18 months to complete. and commercial assembling and distribution The number of units that will destinations” usage. Dubai Investments be built depends on the demand has already leased more than we get from companies.” Of course, three years is a short 1.57 million square metres of this businesstime in the construction world, related area to tenants from sectors in and with the completion property development, heavy duty steel deadline fast approaching, fabrication, plastic and cold storage. “Infrastructure in phase seven will be are all areas of the vast mega-project running completed by the end of this month and on time? To answer we will begin constructing infrastructure this question, it’s for phase eight as soon as we get the important to take building permit,” he says. “One hundred a look at the and four kilometres of roads have now been wider picture. delivered in total.” Phase eight will also benefit from a water The fi rst t h r e e and electricity network once complete, in phases of addition to a sewage system and district D u b a i cooling facilities. www.arabiansupplychain.com | MAY 2010

SPECIAL REPORT: MIDDLE EAST WAREHOUSING HUBS

DIP’s final phase of development, which is being constructed at a cost of AED300 million, has been designed as a hub for logistics operations and will measure 500,000m2

The logistics park that is being developed a number of regulations in relation to air in this fi nal phase has been designed and dust emissions, trade and hazardous to capitalise on the success of various waste, noise control, import and storage of warehouse operations that are already dangerous goods and work safety. “Recycling bins are distributed around based at Dubai Investments Park. Leading companies such as Agility, Global Shipping DIP and tenants must reserve 10% of their and Logistics (GSL), Logfret Logistics plots for landscaping,” states Al Mesmar Middle East and Heavy Load Freight with a sense of purpose. Dubai Investments also claims that the Services have all reported success with their facilities at the industrial area and Al park is the fi rst private sector development Mesmar is confident that others will follow in the emirate to offer tenants water for irrigation and fi re-fighting. Such thinking suit in the near future. “Phase 8 will be a significant addition has obviously been successful in attracting to the investment landscape of Dubai, the attention of local and international businesses. To date, $17.69 especially since this phase billion has been invested into focuses on logistics services, “Phase 8 will be a DIP and while the huge project a sector that has witnessed significant addition unprecedented growth in the to Dubai’s investment was initially built on an empty patch of land surrounded by last decade,” he says. So, with such a large landscape, especially desert, Dubai Investments Park since it focuses on has slowly but surely come to amount of construction going logistics services” life - a situation that will only on, how can DIP sustain continue to blossom as mega itself? According to its transportation developments general manager, the park is an “eco-conscious” development and allows in the local vicinity, including the new Al only certain types of industries to operate Maktoum International Airport are set to within the premises. Tenants must observe commence operations. 34 MAY 2010 | www.arabiansupplychain.com

DIP PROJECT TIMELINE 1997 - Dubai Investments Park launched 1998 - Masterplan completed and phase 1 infrastructure started 2000 - Phase 1 construction completed 2001 - Construction on Green Community begins 2002 - Phase 1 completely leased out 2003 - Inauguration of phase 2 by Sheikh Hamdan Bin Rashid Al Maktoum 2004 - Phase 3 and 4 construction started 2005 - Phase 3 and 4 fully completed 2005 - Phase 5 started 2006 - 810 tenants 2006 - Launch of Ritaj, Palisades and Dubai Lagoon projects 2007 - 950 tenants and 20 hectares developed 2008 - 1000 tenants 2008 - 60% of project developed and open to subleasing 2009 - Phase 6 completed 2010 - 95% of phase 7 completed 2010 - Construction of phase 8 begins

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UPDATE: SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010 UPDATE: SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010

UPDATE:

SUPPLY CHAIN AND TRANSPORT AWARDS 2010 With a record number of nominations for this year’s Supply Chain and Transport Awards (SCATA), the finalists have finally been revealed for the the region’s ultimate celebration of logistics achievements.

eading players from the Middle East logistics industry are set to compete for trade honours at the fourth annual Supply Chain and Transport Awards (SCATA) in Dubai. The prestigious ceremony, which is organised by ITP Business, publisher of Logistics Middle East and ArabianSupplyChain.com, will be hosted on Wednesday 2nd June 2010. “Supported by continued investment in the Middle East’s transportation infrastructure, the region is producing some of the most impressive warehousing and transportation companies in the world,” commented Walid Akawi, CEO of ITP Business Publishing. “Against this exciting backdrop, the Supply Chain and Transport Awards make a welcome return in 2010 to recognise the individuals and companies that stand out from this exalted crowd. The nominees will once again include a combination of regional and international 36 MAY 2010 | www.arabiansupplychain.com

players that have gone above and beyond in terms of their industry contribution.” SCATA 2010 will include 16 categories in total, covering the logistics, sea freight and air cargo sectors in the Middle East. These include the Express Logistics Provider of the Year and 3PL Service Provider of the Year awards, which honour companies that have consistently delivered world-class services and facilities across the region over the past year. In addition, the FMCG Supply Chain of the Year category will be awarded to a company that has raised standards in the logistics industry with their regional supply chain operations. “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 is a perfect opportunity to remember those companies and individuals that continue to achieve excellence on a daily

basis,” commented Issa Baluch, founder of Swift Freight International , who returns to the judging panel for a fourth consecutive year. Also coming back to the awards in 2010 are Captain Mansoor Ghafoor (CEO of STALCO Group and president of National Association of Freight and Logistics), Salma Hareb (CEO of Economic Zones World), Ali Al Jallaf (vice president of Dubai Airports cargo unit), Dr Kanak Madrecha (senior manager of Dubai World and founding member of the Supply Chain and Logistics Group), Cedwyn Fernandes (MBA programme coordinator at Middlesex University Dubai) and Sebastian Thomas (head of supply chain at ZAFCO). The panel also welcomes the addition of Alex Borg, regional director of the Chartered Institute of Logistics and Transport (CILT). To receive further information, book your tickets, access details on the finalists or view photos from previous years, please log onto: www.arabiansupplychain.com/scata

UPDATE: SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010

SCATA JUDGE PROFILES CAPTAIN MANSOOR GHAFOOR

ALI AL JALLAF

A qualified Master Mariner, Captain Mansoor Ghafoor is CEO of STALCO Group, president of the National Association of Freight Logistics (NAFL), vice president of the International Federation of Freight Forwarders Association (FIATA) and chairman of RAME (Region Middle East and Africa) within FIATA.

As vice-president of Dubai Airports Cargo Unit, Ali Al Jallaf is responsible for the region’s largest airfreight hub, Dubai Cargo Village (DCV). In addition, he has been appointed as executive board member of both The International Air Cargo Association (TIACA) and the National Association of Freight and Logistics (NAFL).

SALMA HAREB Salma Hareb is CEO of Economic Zones World (EZW), a global developer of economic zones, technology, logistics and industrial parks under the Dubai World Group. As part of this role, she heads each of EZW’s companies, including Jebel Ali Free Zone Authority (Jafza), one of the world’s largest free zone entities. Salma recently topped Forbes Arabia’s list of the 50 most powerful Arab businesswomen, while MEED magazine also named her one of the region’s 12 most influential business women.

ALEX BORG

DR CEDWYN FERNANDES

Alex Borg is regional director of the Chartered Institute of Logistics and Transport (CILT) and has been instrumental in the trade association’s recent growth across the Middle East. He is also a member of the Chartered Institute of Purchasing and Supply (UK) and managing partner of SSM Group.

Dr Cedwyn Fernandes is the MBA programme coordinator at Middlesex University Dubai and worked in the airline industry for over a decade prior to joining academia, giving him a unique blend of academic and senior corporate expertise. He is also a committee member of the Supply Chain and Logistics Group (SCLG).

ISSA BALUCH

SEBASTIAN THOMAS As head of supply chain at ZAFCO, Sebastian Thomas is entrusted with managing the Dubaibased company’s supply chain at a strategic level. With 20 years of experience in the field, his achievements were highlighted when he won the Logistics Manager of the Year award at the inaugural SCATA ceremony in 2007.

Issa Baluch founded Swift Freight International in 1989, which now has a network of offices spanning the Middle East, Far East, India and Africa, employing over 500 people around the world. With a Master’s degree in Business from the University of Hull (UK), Issa Baluch served as president of the National Association of Freight and Logistics (NAFL) from 1993 to 2000, president of the Sea-Air Operator’s Association (UAE) from 1992 to 1994, and president of FIATA (International Federation of Freight Forwarders’ Associations) from 2003 to 2005. He is also the author of Transport Logistics: Past, Present and Predictions.

DR KANAK MADRECHA Industry veteran Dr Kanak Madrecha is currently the practice head of DP World’s Business Excellence Centre and also serves as a founder board member of the Supply Chain and Logistics Group (SCLG) and president of the Council of Supply Chain Management Professionals (CSCMP) - Dubai Round Table.

www.arabiansupplychain.com | MAY 2010

UPDATE: SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010

SCATA 2010 FINALISTS LOGISTICS AWARDS

AIR CARGO AWARDS

EXPRESS LOGISTICS PROVIDER OF THE YEAR • Aramex • DHL • FedEx • TNT Express • UPS 3PL SERVICE PROVIDER OF THE YEAR • Al-Futtaim Logistics • Aramex • CEVA Logistics • Danzas • Gulf Agency Company (GAC) FMCG SUPPLY CHAIN OF THE YEAR • Al Hassani Group • Arabian Trading Supplies • NAPCO Group • Saudi Industrial Projects Company (SIPCO) • Tamer Group LOGISTICS HUB OF THE YEAR • Aqaba Special Economic Zone • Dubai Industrial City • Jebel Ali Free Zone • Kuwait Free Trade Zone • Ras Al Khaimah Free Trade Zone

CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE) • Emirates SkyCargo • Etihad Crystal Cargo • Qatar Airways Cargo • Royal Jordanian Cargo • Saudi Arabian Airlines Cargo CARGO OPERATOR OF THE YEAR (CARGO AIRLINE / CHARTER) • Cargolux • Maximus Air Cargo • Midex Airlines • National Air Cargo • Rus Aviation AIR CARGO HUB OF THE YEAR • Abu Dhabi International Airport • Bahrain International Airport • Dubai International Airport • Kuwait International Airport • Sharjah International Airport

SHIPPING AWARDS SHIPPING COMPANY OF THE YEAR • APL • Maersk Line • MISC Berhad • National Shipping Company of Saudi Arabia • United Arab Shipping Company SHIPPING AGENT OF THE YEAR • Gulf Agency Company (GAC) • Inchscape Shipping Services (ISS) • Maersk Kanoo • Rais Hassan Saadi (RHS) • STALCO

SHIPPING PORT OF THE YEAR • Khalifa Bin Salman Port, Bahrain • Jebel Ali Port, Dubai • Khorfakkan Container Terminal, Sharjah • Port of Sohar, Oman • Fahad Industrial Port, Saudi Arabia

JUDGES AND INDUSTRY CHOICE AWARDS TECHNOLOGY SOLUTIONS PROVIDER OF THE YEAR • Datalogic • Ehrhardt + Partner Solutions (EPS) • Exactus • Log Cubes • Supply Chain Network (SNS) MATERIAL HANDLING PROVIDER OF THE YEAR • Al-Futtaim Auto & Machinery Company (FAMCO) • CHEP • Kanoo Machinery • SSI Schaefer • Span Group TRAINING AND EDUCATION PROVIDER OF THE YEAR • Dubai Trade • Emirates Aviation College

38 MAY 2010 | www.arabiansupplychain.com

• SP Jain Centre of Management • University of Bolton, Ras Al Khaimah • University of Wollongong, Dubai CORPORATE SOCIAL RESPONSIBILITY AWARD • Agility • Aramex • Economic Zones World (EZW) • Maximus Air Cargo • TNT Express OUTSTANDING ACHIEVEMENT OF THE YEAR AWARD • Abu Dhabi Airports Company (ADAC) • Aramex • CEVA Logistics • Gulf Agency Company (GAC) • Maximus Air Cargo

Hall o

f Fame A For the ward first tim e ever, th and Tra e Supply nspor t A categor Chain wards (S y for pu CATA) w blic voti ill open award w n g . T a he pres as intro tigious duced in respecte Hall of F d figure 2009 to ame h h e The fina onour a ad from lists are leading the Mid and people dle East valued c who ha logistic ontribu s contin s industr tion to th ued to m y. raising e in dustr y’s ake a str the ben growth ong and chmark over the for regio years, w nal and hile global e xcellenc • Fadi G e. h andour • Fathi (Arame Buhazz x) • Shaik a (Maxim h Daij b us Air C in Salm argo) an al Kh alifa (B Organis ahrain’s ation o Genera f Sea P • Ram l or ts) Menen (Emirate • Moha s Sk yCa mmed A rgo) l Muall em (DP World)

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ASK THE EXPERT

THE RIGHT APPROACH

QUESTION: What factors should be considered in the selection of a warehousing hub in the Middle East? THE PAST, PRESENT AND FUTURE OF GLOBAL WAREHOUSING HUBS

THE BEST APPROACH TO CHOOSING A WAREHOUSING HUB IN THE REGION

HELPFUL ADVICE FOR COMPANIES THAT ARE MAKING THEIR SELECTION

A growing number of countries around the world have embraced the concept of warehousing hubs and experienced the countless benefits of opening a successful logistics complex. These hubs are normally situated in close proximity to ‘consuming centres’ or large cities, where the turnover of stock is mainly handled on a Just-In-Time (JIT) basis. European countries such as the United Kingdom and Germany have been particularly successful in developing such hubs, while Singapore has also reached a high degree of sophistication in recent years. Looking ahead, I believe that China will continue to invest in warehousing centres and India is also being considered a strong emerging contender, although the country still requires huge investment and deregulation to compete on a global basis.

Companies must consider a number of different factors when selecting a warehouse hub to base their supply chain operations. GAC, for example, always looks for good port, road and air access for our critical ships spares. In addition, it helps to have a conducive environment that is facilitated by a business-friendly attitude from the free zones operator, similar to the approach of Jebel Ali Free Zone Authority in Dubai.

For companies that are choosing a hub, its essential to have critical mass going to and from the location, so that you can keep the stock common for as long as possible and then make it ready for the market at the last moment. One of the biggest benefits to this approach is a reduction in stockholding. Check the regulatory controls and meet the customs personnel in the country you wish to work in. Try to establish if they want the business and whether they have the intention to grow with your business. The will to do something is very important. Ask yourself, can you grow with your hub? You may wish to start small but identify if your partner has room to expand and get an option on it at the outset. Make sure you understand all the costs of doing business in your chosen hub; whilst there maybe be no taxation, they may have other extra costs. For example the labour employment model in the Middle East is far different from Europe and Asia. Double check you calculations as the investment in a hub will generally be a large and long-term solution without room for mistakes.

HOW GOVERNMENTS IN THE MIDDLE EAST ARE EMBRACING THE CONCEPT As several Middle Eastern countries have been investing in the development of their logistics infrastructure, the local range of warehousing hubs has become more and more diverse. Of course, Dubai still leads the pack in terms of comprehensive and highquality options for storage facilities, with Jebel Ali Free Zone establishing itself as the region’s ultimate superhub for supply chain operations. Dubai Airport Free Zone has also proved a success for the rapid movement of cargo, while the Kuwait Free Trade Zone (KFTZ) benefits from its strategic location in Shuwaikh Port, close to the international airport and the Iranian Border. There are also a number of upcoming hubs with a lot of potential in the region, such as Bahrain Logistic Zone, near the recently-opened Khalifa Bin Salman Port, and of course Dubai Logistics City, which is expected to significantly increase the regional capacity. 40 May 2010 | www.arabiansupplychain.com

THE CONTINUED GROWTH OF GAC’S REGIONAL WAREHOUSE NETWORK As a leading player in the logistics industry, GAC operates state-of-the-art facilities throughout the Middle East, including the United Arab Emirates, Bahrain, Qatar and Kuwait, enabling companies to reduce their capital investment and allowing a flexible response to market demands. Our flagship multi-user distribution centre in Jebel Ali Free Zone is the regional hub for our 3PL activities, offering end-to-end supply chain management services. The park houses a multi-user distribution centre, cold chain section, container freight station, value-added services function and office accommodation. This is complemented by a separate logistics facility at Dubai Airport Free Zone. As a 3PL provider, we focuses on meeting customers’ need for safe storage, fast order response and minimum inventory levels. The facilities are backed by our webenabled warehouse management system GACWare for complete stock management and supply chain visibility. Detailed tracking is utilised for more effective marshalling, and accessing of space, providing higher throughput and fewer bottlenecks. The multi-user centres have capacity to handle large volumes and multiple product lines using high bay, mobile, palletised, shelved and bulk storage solutions.

This month’s column was written by Phil Showering, general manager of logistics services at GAC Dubai

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AFRICA

INDUSTRY STATISTICS

FACTS & FIGURES Air Cargo Regional & International Statistics

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

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

440

200000

9 April

427 150000

420

100000

12 March

400

397 26 March

5 March

396

392

19 February

380

50000

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

16 Apr 10

9 Apr 10

4 Apr 10

26 Mar 10

19 Mar 10

12 Mar 10

5 Mar 10

26 Feb 10

19 Feb 10

12 Feb10

360

MONTHLY AIR CARGO REPORT: EUROPE REGION* AIRPORT/COUNTRY

JANUARY 2010/2009

Jan 10

Dec 09

Nov 09

Oct 09

Sept 09

Aug 09

July 09

June 09

May 09

April 09

0 Mar 09

INDEX 100 = 53.5 US cents per US gallon

Feb 09

380

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

MONTHLY AIR CARGO REPORT: AFRICA REGION*

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

JANUARY 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Amsterdam (Netherlands)

109,431

17.1

109,431

17.1

Accra (Ghana)

3746

-9.9

3746

-9.9

Brussels (Belgium)

33,419

-0.6

33,419

-0.6

Addis Ababa (Ethiopia)

3628

-26.1

3628

-26.1

8.6

Algiers (Algeria)

1376

-5.1

1376

-5.1

Antananarivo (Madagascar)

856

0.9

856

0.9

44,880

Cologne (Germany)

8.6

44,880

Frankfurt (Germany)

161,636

30.1

161,636

30.1

Istanbul (Turkey)

33,332

50.3

33,332

50.3

Leipzig (Germany)

44,242

26.5

44,242

26.5

London (Great Britain)

112,439

13.3

112,439

13.3

Luxembourg (Luxembourg)

49,652

7.7

49,652

7.7

Paris (France)

147,100

11.0

147,100

11.0

Vienna (Austria)

17,289

40.3

17,289

40.3

Warsaw (Poland)

4069

7.9

4069

7.9

23,566

13.7

23,566

13.7

Zurich (Switzerland)

27,619

1.0

27,619

1.0

Casablanca (Morocco)

4045

-10.0

4045

-10.0

Dar Es Salaam (Tanzania)

Cairo (Egypt)

1193

-16.6

1193

-16.6

Djibouti (DJ)

762

30.8

762

30.8

Harare (ZW)

1610

-4.2

1610

-4.2

23,397

30.0

23,397

30.0

1309

-20.5

1309

-20.5

Nairobi (Kenya)

19,300

-12.6

19,300

-12.6

Tunis (Tunisia)

1450

11.8

1450

11.8

Johannesburg (South Africa) Libreville (GA)

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

42 MAY 2010 | www.arabiansupplychain.com

INDUSTRY STATISTICS

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*

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

JANUARY 2010/2009

YEAR-TO-DATE 2010/2009

AIRPORT/COUNTRY

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

31,753

26.1

31,753

26.1

Ahmedabad (India)

Amman (Jordan)

6679

9.9

6679

9.9

Bahrain (Bahrain)

26,361

2.4

26,361

2.4

Beirut (Lebanon)

5369

4.3

5369

4.3

Calcutta (India)

171,453

31.5

171,453

31.5

2765

-1.0

2765

-1.0

Abu Dhabi (UAE)

Dubai (UAE) Fujairah (UAE)

JANUARY 2010/2009

YEAR-TO-DATE 2010/2009

Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

1919

14.9

1919

14.9

Bangalore (India)

14,969

20.7

14,969

20.7

Bangkok (Thailand)

98,515

44.8

98,515

44.8

8879

29.0

8879

29.0

Colombo (Sri Lanka)

12,725

25.9

12,725

25.9

Fukuoka (Japan)

18,805

8.2

18,805

8.2

304,262

43.0

304,262

43.0

Kuwait (Kuwait)

14, 575

5.1

14,575

5.1

Hong Kong (China)

Muscat (Oman)

7265

60.6

7265

60.6

Jakarta (Indonesia)

42,543

18.6

42,543

18.6

335

50.2

335

50.2

Kuala Lumpur (Malaysia)

51,849

28.3

51,849

28.3

50.3

Manila (Philippines)

32,418

65.4

32,418

65.4

Ras Al Khaimah (UAE) Sharjah (UAE)

36,288

50.3

36,288

Mumbai (India)

52,064

30.5

52,064

30.5

Osaka (Japan)

55,279

48.4

55,279

48.4

YEAR-TO-DATE 2010/2009

Seoul (Korea)

12,037

-9.3

12,037

-9.3

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

JANUARY 2010/2009 Cargo (tonnes)

% CHG

Cargo (tonnes)

% CHG

Shanghai (China)

244,651

82.1

244,651

82.1

183,028

38.1

183,028

38.1

Singapore (Singapore)

143,338

20.2

143,338

20.2

11,906

15.7

Taipei (Taiwan)

136,658

89.2

136,658

89.2

Tokyo (Japan)

159,538

44.7

159,538

44.7

11,906

15.7

Chicago (USA)

96,483

24.3

96,483

24.3

Los Angeles (USA)

128,247

24.9

128,247

24.9

Memphis (USA)

316,761

5.9

316,761

5.9

Mexico City (Mexico)

27,562

18.7

27,562

18.7

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

For up-to-date figures, visit:

www.arabiansupplychain.com | MAY 2010

INDUSTRY STATISTICS

FACTS & FIGURES Sea Freight Regional & International Statistics

FUJAIRAH BUNKER FUEL PRICE INDEX 500

12 Jan

480

12 Nov

464.5

12 Aug

447.5

12 Mar

BUNKER FUEL PRICE INDEX*

n/a

543

767

n/a

Fujairah (UAE)

486

497

697

n/a

Hamburg

478

498

731

690

Houston (USA)

465

478

n/a

690

Istanbul (Turkey)

515

535

n/a

755

New Orleans (USA)

468

478

n/a

690

Piraeus (Greece)

n/a

Port Klang (Malaysia)

489

499

720

n/a

Rio de Janeiro (Brazil)

488.5

507

823

n/a

Rotterdam (Netherlands)

473.5

491

723

n/a

Singapore (Singapore)

484.5

496

708

n/a

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 12th April 2010. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

TOTAL THROUGHOUT FOR SAUDI PORTS IN TONNES 15 million

350 0

275

200

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority CARGO TYPE Bulk cargo (solid)

12 million

Bulk cargo (liquid)* General cargo Containers (in tonnes)

9 million

Ro-Ro and vehicles Livestock TOTAL

6 million

TOTAL PORT THROUGHPUT

CONTAINERS (TEU)

3 million

Feb 10

Jan 10

Dec 09

Nov 09

Oct 09

Sep 09

Aug 09

Jul 09

Jun 09

May 09

Apr 09

Mar 09

12 Mar 10

Cape Town (South Africa)

435

12 Feb 10

722

12 Jan 10

732

12 Dec 09

517

12 Nov 09

507

12 Oct 09

Busan (South Korea)

12 Sept

407.5

12 Sept 09

MDO

12 Aug 09

MGO

12 July 09

IFO180

12 Jun 09

IFO380

12 Jun

12 May 09

PORT / COUNTRY

459.5

425 5

12 Apr 10

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

FEBRUARY 2010 Discharged

YEAR-TO-DATE

Loaded

Discharged

Loaded

1,455,977

512,271

2,769,256

1,163,365

310,887

4,324,006

682,636

8,679,572

490,890

34,697

1,088,892

115,553

1,869,434

1,540,888

4,164,991

3,068,476

109,939

11,037

263,530

26,397

14,334

n/a

24,982

n/a

4,251,461

6,422,899

8,994,287

13,053,363

10,674,360

22,047,650

2010

2009

February

Year-to-Date

February

Year-to-Date

Discharged

173,742

375,283

152,819

314,092

Loaded

171,672

386,592

169,964

367,968

TOTAL

345,414

761,875

322,783

682,060

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

44 MAY 2010 | www.arabiansupplychain.com

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 TRADE EVENTS

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry

12th May 2010 GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT SUMMIT

2nd June 2010 SUPPLY CHAIN AND TRANSPORT AWARDS (SCATA) 2010

20th – 23rd June 2010 SUPPLY CHAIN MANAGEMENT AND LOGISTICS SAUDI ARABIA

The Supply Chain and Logistics Group (SCLG) has confirmed over 200 speakers and panellists for its third annual Global Logistics and Supply Chain Management Summit in Dubai this month. The event, which takes place at the Madinat Jumeirah hotel on Wednesday 12th May, will focus on eight tracks in total, including transportation and logistics, research and education, technology and best practices, finances and liabilities, and retail supply chain management. VENUE: Madinat Jumeirah Hotel, Dubai EMAIL: admin@sclgme.org WEBSITE: www.sclgme.org

A record number of nominations have been received for the fourth annual Supply Chain and Transport Awards (SCATA), which take place at the Grosvenor House hotel in Dubai on Wednesday 2nd June. This year’s event will have 16 categories in total, such as 3PL service provider of the year, express logistics company of the year and FMCG supply chain of the year. Finalists include Aramex, Maximus Air Cargo, TNT Express and Gulf Agency Company (GAC). VENUE: Grosvenor House Hotel, Dubai EMAIL: robeel.haq@itp.com WEBSITE: www.arabiansupplychain.com/scata

IQPC has expanded its Middle East event portfolio with a supply chain and logistics seminar in Jeddah, Saudi Arabia. The event is expected to highlight a variety of cuttingedge strategies that have been successfully adopted in other parts of the world and hold great potential for the Kingdom’s highly specialised market. Speakers include Alex Borg (Chartered Institute of Logistics and Transport), Abdullah Khaldi (Saudi Aramco) and Yasir Jamal (Unilever Arabia). VENUE: Jeddah, Saudi Arabia EMAIL: enquiry@iqpc.ae WEBSITE: www.supplychainsaudiarabia.com

10th – 12th October 2010 0 TRANSOMAN

1000 m

2 24th 4 O October 2010 The a exhib mount of CILT I N NETWORKING EVENT ition space at Tra TransOman, the Sultanate’s Following Follow Fo o llow the success of its previous nsO last y man leading event for shipping,, seminar in April, the Chartered Institute semina e ear transportation and logistics of Logist Logistics and Transportation (CILT) has cs L companies, will provide a threeconfi hreefirmed rm plans to host a follow-up event day forum for local industry professionals at Em Emirates Aviation College in Dubai on E to discuss the latest issues that are effecting 24th 2010. The session is aimed at h October O the domestic market’s development. In trade professionals from across the regional addition, delegates will be provided with industry, in addition to students that have the opportunity to network with their enrolled on a supply chain programme. A colleagues, exchange valuable information variety of topical issues will be tackled by and predict the newest opportunities that speakers from the Middle East, in addition are expected to arise in the local sector. to countries such as the UK and Holland. VENUE: Oman International Exhibition Centre VENUE: Emirates Aviation College, Dubai EMAIL: ebrahim@oite.com EMAIL: info@ciltuae.org WEBSITE: www.trans-oman.com WEBSITE: www.ciltuae.org

26th – 28th October 2010 SEATRADE MIDDLE EAST MARITIME

23rd – 24th November 2010 TRANS MIDDLE EAST

5th – 7th June 2011 SITL DUBAI

September 2011 MATERIALS HANDLING MIDDLE EAST

The historical maritime city of Alexandria in Egypt has been selected as the host city for this year’s Trans Middle East exhibition and conference. The event is expected to attract around 70 exhibitors from around the world, while a supporting conference has a target audience of 500 senior executives from Europe, the Middle East and Africa (EMEA), who will discuss the latest trends in logistics, shipping and container ports, including challenges from the market downturn. VENUE: Hilton Alexandria, Egypt EMAIL: wani@transportevents.com WEBSITE: www.transportevents.com

Hosted by Reed Exhibitions, the second SITL Dubai exhibition will take place at Dubai International Convention and Exhibition Centre in June 2011, with a predicted 250 exhibitors from the supply chain and transportation sector. The event, which has been organised in co-location with the Airport Show exhibition and conference, is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West. VENUE: Dubai Convention & Exhibition Centre EMAIL: mohamad.ahmed@reedexpo.ae WEBSITE: www.sitldubai.com

Established in 2001, Materials Handling Middle East is marketed as the leading trade exhibition and conference for the regional logistics industry. The fifth edition of the show gathered around 175 industry leaders from 27 countries, who showcased their products and services to 6,805 key purchasers from 82 countries around the world. Exhibitors included the likes of SSI Schafer, FAMCO, Ehrhardt + Partner Solutions (EPS), LOC8 and Business Systems Group (BSG). VENUE: Dubai Convention & Exhibition Centre EMAIL: info@uae.messefrankfurt.com WEBSITE: www.materials-handling-dubai.com

46 MAY 2010 | www.arabiansupplychain.com

Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of UAE and ruler of Dubai, the latest instalment of Sea Trade Middle East Maritime will take place at Dubai International Convention and Exhibition Centre in October. The exhibition and conference is expected to bring together the global ship-owning community with businesses that specialise in international ship equipment, in addition to product and service suppliers in the Middle East. VENUE: Dubai Convention & Exhibition Centre EMAIL: smayle@seatrade-global.com WEBSITE: www.seatrade-middleeast.com

FACE TO FACE INTERVIEW

VOLATILE MARKETS With a considerable amount of success in conflict zones such as Afghanistan, Iraq and Sudan, the future is looking bright for Dubai-based TTL Shipping and Logistics, explains CEO Raaju Sundararaaj. What are the objectives of TTL Shipping and Logistics as a Middle East company? We were established in April 2007 with a vision to become the logistics partner of choice for our customers by adding value to their businesses. At that point in time, TTL Shipping and Logistics was actually focused on serving the needs of customers in conflict zones, such as Sudan, Iraq and Afghanistan. I would like to think that our dedication and success induced these customers to support our growth in other sectors too. Within a short period of time, TTL Shipping and Logistics has established a global network with the help of trusted overseas partners to offer a total logistics solutions in every part of the world. How many offices are operated by TTL Shipping and Logistics at present? Our core business of servicing the Afghan sector is handled by our Pakistan office and we are planning to open a Kabul office by July 2010 to consolidate our position in the Afghanistan market. Within Dubai, there is a corporate office and dedicated seafreight department in Karama, together with a branch office that handles airfreight at Dubai Airport Free Zone. We are also in the process of establishing a presence in Abu Dhabi later this month. How were your logistics operations impacted by the global recession? Itâ&#x20AC;&#x2122;s true that our growth rate was the best in 2007 and 2008, which helped TTL Shipping and Logistics to evolve as a reliable service provider, especially in the Afghanistan and African markets. Like any other service provider, our team has seen through the slump in 2009 and weâ&#x20AC;&#x2122;re still smiling. Our clients have remained supportive at all times and we actually increased our staff strength to meet growing demand within the market. 48 May 2010 | www.arabiansupplychain.com

What strategy have you implemented to grow your business in a market slump? We utilised this unexpected opportunity to build unique and mutually beneficial relationships. Although the profit-rates have come down, the situation has created equilibrium in the market, because the prices we now receive from suppliers has allowed the company to secure larger accounts. To elaborate, the shipping lines are more forthcoming to offer good rates to whoever has access to the load, whereas before the recession it was only the big players that had highly preferential rates, making it difficult for smaller companies to even get a shot at the large accounts. Have you experienced other advantages as a smaller player in the local market? As a small player, we can afford to be more responsive and provide a personal touch. It is inevitable that we have to live or compete with companies of different sizes, while everyone will have their own USPs as well as disadvantages. There are numerous opportunities in the market, which is either ignored or out-of-reach for large players, we continuously seek those opportunities and use them as fodder to our growth. How would you explain the success of TTL Shipping and Logistics in terms of providing services to the Afghan market? With the experience that we have gained over the years in this volatile area, TTL has established a solid reputation as a reliable service provider by major suppliers from the UAE, as well as overseas. As a result, a considerable amount of business has come our way from word-of-mouth. Also, we have earned a great deal of credibility for the manner in which we deal with our suppliers, which range from shipping lines to airlines and charter operators. For this reason, we enjoy their continuous support.

Will the Afghanistan market remain your main focus for growth in the future? Afghanistan is clearly leading our export business, although we have substantial volumes to the African sector, plus imports from the Far East, UK and NWC Ports. We are one of the preferred service providers for customers that deal with products such as food supply, power supply, glass and ceramic manufacturers. In July 2009, we also set up a household goods division to take care of the growing requirements of local and international relocations, so we have a growing list of satisfied clients from this part of our operations as well. In your opinion, what does the next year hold for TTL Shipping and Logistics? We are working on substantial volumes out of the Middle East and improving our coverage in Afghanistan with a dedicated office there. As previously mentioned, there are plans to establish an Abu Dhabi office too, which will cater to the oil and gas industry. Finally, we have exclusive 3PL arrangements with various customers in Jebel Ali Free Zone, which supports the plan to expand our infrastructure by 2011.

For all local enquiries, please contact: UAE Mirnah Technology Systems Dubai PO Box 181529, Dubai, UAE Tel: +9714 268 7557 Fax: +9714 268 227 E-Mail: m.hassan@mirnah.com

Saudi Arabia Mirnah Technology Systems PO Box 62812, Riyadh 11595 Saudi Arabia Tel: +9661 4621545/+9661 4628022 Fax: +9661 4623812 Email: m.maqdoom@mirnah.com

P r o v i d i n g su p e r i o r q u a li t y se r v i c e s t o o u r c u st o m e r s

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