Logistics News ME - March 2020

Aviation

Talking point

Profile

How COVID19- has affected the aviation industry

Impact of Logistics REIT

A look into the advantages presented by DIP

Connecting trade professionals with industry intelligence

How LogiPoint is Strategically

Opening Doors for Global Leaders

by Providing Customised Solutions

March 2020

A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:

Contents

Contents

M a r c h 2 020

Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

March 2020

R e a d a l l t h e l at e s t i s s u e s o n I s s u u

18 Start 08 | News

Features 18 | Talking Point 20 | Cover 24 | Profile 26 | Feature 30 | Trucks 34 | Rail 36 | Event Review 38 | Aviation

Find us on youtube Subscribe to our YouTube channel to see things like site visits, interviews and much more

40 | Op -ED 42 | Supplier News 44 | Unsung Hero Logistics News ME | March 2020 | 3

Regional News

Your window to expand.

Introducing Business POS for cashless payments with better transaction rates. du.ae/business-pos

www.cbnme.com

M a r c h 2 020

Ed i to r ’ s L e t t e r

M a r c h 2 020

A note from the editor Kasun Illankoon

CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa jo@bncpublishing.net +971 50 440 2706

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Here’s a brief look into how the Saudi Arabian shipping, logistics activity relies heavily on road transport services. The Saudi Arabian freight and logistics market is estimated to be valued at USD 22.95 billion and is estimated to grow at a CAGR of 7.35% during the forecast period.

The market is heavily fragmented and in Saudi Arabia only a handful of large trucking companies providing services, such as Crescent Transportation, Almajdouie Transport, and Saudi Land Transport Company, which compete head-to-head with leading regional and global logistics providers in the Middle East.

The warehousing and distribution segment of the transportation and logistics sector is growing rapidly.

Several international logistics

companies, such as Agility, have been able to penetrate the growing market and win government contracts. Still, there remains significant and increasing demand for experienced providers of logistics, in support of both the transportation side of the sector and the distribution of retail products, throughout the country.

It is observed significant number of international players are present in the market. International companies are partnering with local players to form joint ventures. This provides an opportunity for local players to exploit the global network of international companies.

Kasun Illankoon Editor, Logistics News Middle East

Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Aaron Joshua aj@bncpublishing.net Photographer Ahmad Khader

S U B S C RI B E subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Logistics News ME contact

sales@bncpublishing.net

On the web Keep up to date with all the latest news, features and much more on our website.

w w w. c b n m e . c o m / l o g i s t i c s - n e w s 6 | Logistics News ME | March 2020

All rights reserved © 2015.

Opinions expressed are solely those of the contributors.

Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock.

Printed by UPP

www.cbnme.com

SHAPE THE FUTURE OF HEALTHCARE

REIMAGINE RETHINK REINVENT IN ASSOCIATION WITH

JOIN THE BE BOLD YOUTH LEADERSHIP PROGRAM, A PARTNERSHIP BETWEEN THE UAE MINISTRY OF HEALTH AND PREVENTION AND ENTREPRENEUR MIDDLE EAST, TO CONTRIBUTE TO THE EVOLUTION OF THE HEALTHCARE INDUSTRY.

APPLY NOW BEBOLDME.COM MARCH 2020 - JUNE 2020

Regional News

Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Finance

DP World to Delist from Nasdaq Dubai DP World’s parent company Port and Free Zone World has offered to acquire the 19.55 per cent of DP World’s shares traded on Nasdaq Dubai, returning the company to private ownership.

The move will enable DP World to focus on its medium-to-long-term strategy of transforming from a global port operator to an infrastructure-led end-toend logistics provider. Upon successful offer acceptance, DP World will be 100 per cent owned by Port and Free Zone World, which in turn is a wholly-owned subsidiary of Dubai World.

The Board of Directors of Port and Free Zone World and the Independent Directors of DP World have reached agreement on a cash offer for the shares, which the Independent Directors deem to be fair and reasonable. Each DP World share will be acquired at $16.75, representing a 29 per cent premium on the market closing price of $13.00 on Sunday.

DP World remains financially strong, with a healthy balance sheet and a consistent track record of delivering profitability.

In recent years, the company has made a series of acquisitions as part of its strategy to become the world’s leading end-to-end logistics provider, including Unifeeder, P&O Ferries, Continental Warehousing, 8 | Logistics News ME | March 2020

and Topaz Energy & Marine.

Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World, said, “The global ports and logistics industry has been undergoing a significant transition as a result of the consolidation of the customer base and the vertical integration of several competitors.

DP World must be able to continue responding effectively to this rapidly changing landscape

and to invest in the future.

Returning to private ownership will free DP World from the demands of the public market for short term returns which are incompatible with this industry, and enable the company to focus on implementing our mid-tolong-term strategy to build the world’s leading logistics provider, backed by our globe-spanning network of ports, economic zones,

industrial parks, feeders, and inland transportation.

Our focus will continue to be on integrating our acquisitions with our global network of interconnected ports, logistics businesses and economic zones. DP World’s world-spanning footprint puts us in a strong position to lead the disruption of the industry creating a better future for all cargo owners through smarter trade.” www.cbnme.com

M a r c h 2 020

Maritime

P&O Maritime Logistics Enhances their Offshore Vessels with Aruba Solutions

P&O Maritime Logistics, a leading provider of marine solutions with a focus on offshore energy and port services and logistics, has updated its wired and wireless infrastructure with technology from Aruba, a Hewlett Packard Enterprise company. In addition to campus edge switches and Aruba Central, a cloud-based management and monitoring solution, P&O Maritime Logistics has also deployed industry-leading Aruba Wi-Fi access points. This network

overhaul has resulted in simplified management of network policies and procedures across its offices and 400 offshore vessels.

In addition to realizing full project return on investment (ROI) in 12 months, the project has also enabled the P&O Maritime Logistics IT team to develop mobility apps that enhance crew productivity.

Headquartered in Dubai, P&O Maritime Logistics provides a wide portfolio of services to its customers, such

as offshore and port services and integrated logistics. The company operates a large fleet and has a presence on all seven continents.

With the company on a robust growth trajectory, Kris Vedat, Head of IT at P&O Maritime Logistics was aware that its network needed an overhaul. “As our operations expanded, we found it difficult to manage the disparate set of solutions from multiple vendors that comprised our network. Upgrade cycles, troubleshooting and support

were complex. It also meant that we were unable to apply any standard sets of policies and procedures,” he said.

After standardizing the network on Aruba, the benefits seen by the company were numerous.

What particularly impressed Vedat was Aruba Central. “A unified cloud-based management platform that could enable us to efficiently and effectively manage our wired and wireless environments was exactly what my team needed,” he said.

Logistics News ME | March 2020 | 9

Regional News

Equipment

RSGT welcomes the first batch of modern advanced terminal equipments Cargo

Emirates SkyCargo completes 30 years of facilitating trade between Riyadh and the world

Red Sea Gateway Terminal (RSGT) a world-class terminal spearheaded by the Saudi Industrial Services group SISCO, has announced the arrival of the first consignment of new advanced terminal equipment, which includes terminal trucks and trailers that will accelerate and speed up port and quay operations at the Northern Part of Jeddah Islamic Port (JIP), the biggest and busiest port in Saudi Arabia.

Jeddah Islamic Port is the primary port of call and trade conduit for trade and shipping in and out of the Kingdom via the Suez Canal.

The delivery of the new advanced machinery follows the recent signing in December 2019 of the 30-year concession mega contract valued at SAR 6.6 billion

by RSGT with the Saudi Port Authority (Mawani) to redevelop and modernize the Northern Part of Jeddah Islamic Port.

The new Terminal Trucks and Trailers, the newest of its kind in the Kingdom, come equipped with the latest and most demanding safety features, which will significantly contribute to increasing productivity and performance at JIP.

10 | Logistics News ME | March 2020

Emirates SkyCargo is marking the 30th anniversary of its operations to the capital of the Kingdom of Saudi Arabia. Since February 1990, the air cargo carrier has played an important role in facilitating exports and imports of cargo between Riyadh and the rest of the world through Dubai.

Emirates SkyCargo currently offers just over 1000 tonnes of combined export and import cargo capacity into Riyadh through its 27 weekly flights.

Over the last five years, the carrier has helped transport

more than 138,000 tonnes of cargo to and from Riyadh. Some of the major commodities that Emirates SkyCargo has helped transport include chilled meat, electronic equipment, pharma and other types of general cargo.

The air cargo carrier also operates flights to three other destinations in Saudi Arabia – Dammam, Jeddah and Medina – in addition to Riyadh.

Overall, Emirates SkyCargo has facilitated movement of more than 365,000 tonnes of cargo into and out of the Kingdom since January 2015.

Find us on youtube Subscribe to our YouTube channel to see things like site visits, interviews and much more

www.cbnme.com

M a r c h 2 020

SAL launches its newly expanded facility at Dammam airport

The Saudi Arabian Logistics (SAL) Co. has inaugurated its new 37,800sq meter air cargo facility at the Dammam-based King Fahad International Airport in the presence of Abdullah Al-Zamil, Chairman of the Board of Directors, Dammam Airports Company and numerous representatives of the airport’s governmental authorities.

The state-of-the-art facility offers advanced logistic services and boasts spacious facilities for dangerous goods, radioactive

substances and cargo intransit areas as well as designated areas for shipping live animals, heavy-weight shipments and a 24/7 customer service office.

SAL CEO Omar bin Talal Hariri said the new expansion serves to enhance the company’s logistic services at King Fahad International Airport while at the same time makes use of the services provided at the airport through the Cargo Village, the first of its kind all over the

Kingdom’s airports. With the new expansion, the level of logistic services will improve whereas the operating capacity will increase to handle 130,000 tons a year. The Dammam station is the second since the launch of SAL facility at the Cargo Village of King Khalid International Airport last January under the patronage of Riyadh Governor His Royal Highness Prince Faisal bin Bandar bin Abdulaziz. Meanwhile, a similar facility is being

constructed in Jeddah.

“At SAL, we recognize our tremendous responsibility as a major contributor to Vision 2030 objectives relating to the logistic services and the goals of the National Industrial Development and Logistics Program “NIDLP”. We aim to make advantage of the Kingdom’s strategic and vital location and transform it into a global important hub for cargo transportation and shipment,” Hariri explained.

Logistics News ME | March 2020 | 11

Regional News

M a r c h 2 020

Ports

Abu Dhabi Ports Inks Long-Term Agreement with MSC Cruises

Abu Dhabi Ports has announced a long-term agreement with MSC Cruises, giving the world’s largest privately-owned cruise line berthing rights at Abu Dhabi Cruise Terminal and Sir Bani Yas Cruise Beach.

The deal, signed by Director of Cruise Business at Abu Dhabi Ports, Noura Rashid

Al Dhaheri and MSC Cruise CEO, Gianni Onorato, at MSC’s headquarters in Geneva, Switzerland, reinforces Abu Dhabi’s position as a premier destination on the international cruise map.

Most importantly, the deal will bring 1.3 million visitors to the capital over the tenure of the agreement.

Finance

DAE announces Full Year 2019 Financial Results

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAE, commented: “The growth of DAE in the last few years has boosted the contribution of aviation to Dubai’s success.

DAE has executed its strategy effectively and is today a successful, large-scale lessor with more than 400 aircraft in its portfolio. We are pleased with the progress DAE has made with the support it has received from ICD.”

Highlights include: Total Revenue

Other highlights

Profit Before Tax

• Pre-Tax Profit Margin: 29.1% (2018: 29.8%) • Pre-Tax Return on Equity: 12.6% (2018: 12.8%) • Net Debt-to-Equity: 2.64x (Year-end 2018: 2.57x) • Unsecured Debt as a percentage of Total Debt: 62% (Year-end 2018: 46%) • Available Liquidity: US$2,404 million (Year-end 2018: US$1,558 million)

$14.213 bn

$413.6 mn 12 | Logistics News ME | March 2020

www.cbnme.com

HELPING YOU STAY AHEAD

INNOVATION IS YOUR ADVANTAGE You need superior, innovative products. A versatile fleet of aerial work platforms and telehandlers designed for tough rental demands. And you depend on comprehensive support to stay ahead.

Financing, training, parts and service that keep your machines on the job, producing value for you and your customer. From powerful, reliable equipment to unwavering support, you can rely on JLG. Learn more at www.jlg.com

JLG Industries | JAFZA View | PO Box 262728 | LB 19, 20th Floor, Office 05 | Jebel Ali | Dubai | measales@jlg.com

Regional News

Quote At Bridgestone, we continue to utilize tyre sensors to allow an autonomous car predict the type of surface being driven on, enable it to deal with punctures without input from the user, and capture data to determine the driving style vis-a-vis the tyre condition.”

Stefano Sanchini, Regional Managing Director, Bridgestone MEA

M a r c h 2 020

Awards

Tristar Signs $24 million LNG Shipping Service Contract with BP

Top 5 online

1

Emirates Group and GE Aviation have officially kicked off GE’s Leadership Development Programme

2

CMA CGM and Energy Observer join forces to make hydrogen one of the energy sources of tomorrow

3

Dubai Investments Park attracts investments in excess of AED 42bn over two decades

4

Tristar Signs $24 million LNG Shipping Service Contract with BP

5

Abu Dhabi Ports Doubling Visitor Capacity at Sir Bani Yas Cruise Beach with AED 100mn Expansion

14 | Logistics News ME | March 2020

Tristar Group, the global integrated energy logistics company, has signed a fouryear contract with BP to provide liquefied natural gas (LNG) shipping services for a value of $24 million.

The deal with BP, one of Tristar’s long-standing partners, follows the recent addition to the Dubai-based company’s shipping fleet of its first LNG tanker, the Tristar Ruby.

The four-year deal will cover a variety of LNG shipping services comprising trading and delivery capacity worldwide.

The Tristar Ruby, formerly the British Ruby joins Tristar’s 30-strong fleet of ocean-going tankers. The vessel was built by Hyundai Heavy Industries in 2008 and has a cargo carriage capacity of 155,000 cubic

metres. She will be technically managed by Wilhelmsen Ship Management and commercially operated by Tristar.

Eugene Mayne, Group CEO of Tristar, said: “We are pleased to be able to announce the value of our deal with BP, the first as we expand our presence into the LNG shipping market. This represents a strengthening of our relationship with BP, one of our core partners.”

Tristar offers end to end fuel logistics solutions to blue-chip clients including international and national oil companies and international NGOs. Its integrated energy logistics platform spans road and maritime transportation, specialized warehousing, fuel farms, commercial aviation refueling and remote fuel supply operations. www.cbnme.com

A Smart Move For New Possibilities New Quester’s flexibility makes it suitable across a variety of applications and segments such as general cargo, long haul and construction.

And now, ESCOTs’ added power and performance in New Quester means assignments can be carried out with increased fuel and driver efficiency.

Optimized specifications such as reduced tare weight allow you to carry more.

And with the introduction of smart new connected features such as telematics, you can stay on top of your tough daily schedule.

A smart move for your business

Ta l k i n g p o i n t

Zachary Cefaratti, CEO Dalma Capital Management

16 | Logistics News ME | March 2020

www.cbnme.com

M a r c h 2 020

Logistics REIT Interview with Zachary Cefaratti, CEO Dalma Capital Management on the Manrre fund depositing shares into Nasdaq’s CSD Overall performance Dalma Capital saw the best performance in its history in 2019 and expects to continue its exponential growth in 2020. Economic challenges in 2019 meant that we have faced headwinds that appear likely to continue into 2020 – our continued growth demonstrates the strength of our strategy and team, which are able to prevail even in the most challenging markets.

Dalma Capital has grown its regional and international businesses in lockstep, outperforming the markets and our peers by working with the best of the best and anticipating changing market dynamics. We see challenges and dislocations in financial markets as opportunities and have experienced success by capitalizing on shifting sands in the UAE and Saudi Arabia. The Mannre Logistics Fund generated returns of over 12% in its first year starting in mid-2018 and has continued outperformance through 2019 and into 2020.

Launch of the first Logistics REIT “Palmon Group, the sponsor of Manrre, have been investing in logistics and industrial warehouses in Jafza since the freezone was founded,” said His Excellency Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer of DP World, “I have witnessed

their growth from humble beginnings in 1985 to become arguably the most experienced and successful investors in the regions leading logistics hub.”

The team behind Manrre are the most experienced investors in an asset class that is booming globally due to e-commerce in a region experiencing the world’s fastest online sales growth (expected to double by 2022), all while asset prices are at cyclical lows and interest rates appear likely to remain at near-historical lows for the foreseeable future. It is difficult to imagine more favourable conditions for investment.

Manrre was established in 2018 to provide investors the first efficient, regulated platform to gain exposure to an asset class that the sponsors have been investing in for over 30 years.

Core objectives of a Logistics REIT Manrre’s core objective is to capitalize on the increasing demand for logistics real estate that will result from the ongoing e-commerce boom, while providing investors exposure to an asset class known for high cap-rates, stable/ growing valuations and long-term tenants. The fundamental dynamics of the asset class create optimal conditions for investors focused on high income and capital preservation.

Impact to the Logistics Industry Regional e-commerce is forecast to double by 2022 as Amazon.ae, Noon.com and other online platforms become increasingly popular.

E-commerce growth underpins increasing demand for logistics real estate, industrial warehouses and fulfillment centers.

In 2019, logistics firm Aramex launched a 60,000 square metre fulfilment centre in Dubai. Amazon-owned Souq.com opened a new 23,000-sqm-fulfillment centre in 2018, its third in the UAE. Furthermore, the GCC region is the fastest-growing market globally with an anticipated 2020 e-commerce spend totalling $10.8bn, marking a compound annual growth rate (CAGR) of 26.6 per cent from $5.4bn in 2017.

While this dynamic has already caused logistics to become the hottest real estate investment class globally, the trend is only beginning in the GCC and remains overlooked. With limited supply, increasing demand and attractive real estate prices at this stage in the market cycle, we see ideal conditions for investment.

E-commerce is also broadening the definition of what we traditionally refer to as logistics real estate, as localized retail and commercial real estate assets are converted to fulfillment centers and last-mile infrastructure – resulting in improved cap-rates for investors.

Plans to go beyond the UAE with this initiative Logistics real estate is one of the hottest asset classes globally, with large institutional investors such as Blackstone, Prologis and ADIA investing billions in global logistics infrastructure in response to the e-commerce boom. For now, the GCC remains off the radar of large institutional investors, despite being the fastest growing e-commerce market experiencing a ‘catching up’ effect with markets where the ecommerce penetration is much higher. We are looking at opportunities throughout the GCC region and will invest in the best opportunities that meet our strict criteria for high-income, stability and capital preservation.

Logistics News ME | March 2020 | 17

C o v e r S to ry

How LogiPoint is Strategically

Opening Doors for Global Leaders

by Providing Customised Solutions

18 | Logistics News ME | March 2020

www.cbnme.com

M a r c h 2 020

2019 has been a year of many milestones for LogiPoint. From introducing bonded crossborder delivery into GCC destinations to partnering with some of the world’s leading ecommerce giants to developing the sea-air and air-sea multi-modal solutions.

“We have gone from strength to strength in expanding and developing our product offering to the logistics and supply chain industry. The expectations in 2020 are to continue to build on our years of bringing innovative logistics solutions to the industry with special focus on developing and operating new economic zones across the Kingdom, so that we play our role in enabling the stakeholders of the industry,” said Mr. Farooq Shaikh, CEO of LogiPoint.

LogiPoint was developed as the new identity to reflect the ambitious growth strategy that

the company has adopted for the next decade, transforming from a pioneering bonded and reexport zone (BRZ) into a leading network of integrated logistics parks across Saudi Arabia.

LogiPoint provides a range of integrated logistics services such as fleet management services, steel cargo services, fleet management, freight services, and labor & equipment services.

In realizing its transformation to its new identity, LogiPoint is committed to expanding its current investment base by developing both green-field and brown-field integrated logistics facilities across Saudi Arabia, attracting international investors into the Kingdom, serving customers in all sectors through sea, air and land-based integrated logistics offerings, achieving internationally competitive service levels in Saudi Arabia, improving the reliability

and efficiency of the Kingdom’s trade and supply chain and ultimately enabling Saudi Arabia to become a key hub in the global logistics value chain.

Opportunity Over the past few years, there is a realization that opportunities exist in the KSA market for innovation, growth, and revenue, and the logistics industry has responded positively. Starting off with replicating the successful models from around the world, the participants have leveraged their experience in the local market to drive innovation and solution-development.

“At LogiPoint we have been at the forefront of this development with our constant focus on enabling the logistics industry and going the extra mile in designing solutions which

Logistics News ME | March 2020 | 19

C o v e r S to ry

translates to efficiencies, greater productivity and higher returns for our customers,� said Mr. Farooq.

LogiPoint Advantages LogiPoint is a leading company operating a network of integrated Logistics Parks in Jeddah. As such we provide two different sets of services. “At LogiPoint Bonded and Re-Export Zone, we provide our clients with duty-free storage for their goods through our standard and built to suit warehouses as well as container yards and open storage areas.

Complementary to that, we also provide a wide range of value-added services like labelling, packing, repackaging, and handling of goods before clearance and distribution, and we act as a liaison office between the clients and the regulatory bodies. Additionally, our clients will have the advantage of bonded corridors which we are setting up between the port and airports as well as across the GCC. At the Logistics parks and economic zones, our product offering is driven more by the needs of our clients than a one size fits all approach on our part, and so we build our solutions by listening to the needs, aspirations and plans of our customers, because that is what a true business partner must always do,� explained Mr. Farooq.

Today, the Bonded and Re-Export Zone, which is spread over 1 Million Sqm. in Jeddah Islamic Port, is a world-class, customercentric integrated logistics services area, where international and local clients are able to take advantage of services like port services, leadlogistics, specialized handling and storage, labeling, co-packaging, and also turn-key supply chain integration from the port terminal to the distribution center. In shipping terms, Jeddah port helps clients save 4-8 days in import or export transit time when compared with other ports in the region. This is an advantage which is reinforced through using the LogiPoint services in the Jeddah Islamic Port.

Furthermore, LogiPoint announce that phase 1 of Logistics Park Modon 1 project was completed.

Phase 1 comprises 350 truck parking spaces designed to bring Modon much needed respite from congestion and pollution through taking the parked and waiting trucks off the roads.

Modon tenants and service providers will have the option of leasing truck parking space, which complies with international security and safety standards, on daily/monthly/yearly

20 | Logistics News ME | March 2020

lease as per their requirement.

Modon hosts more than 400 factories in Jeddah Industrial Area. This thriving industrial base needs a state-of-the-art logistics infrastructure, which helps bring world-class efficiency to its operations. Logistics Park Modon 1 is making state-of-the-art infrastructure a reality in Modon.

Upon completion, this project is located in the heart of the Jeddah Industrial Area, will include a 20,000 Sqm of multi-temperature

warehouses, which will be the only one catering to all kinds of storage requirements of the industrial city 1. It will offer customized and tailor-made support services to the clients and boost supply chain efficiency across sectors through sharing best practices and leveraging expertise and experience. The Modon investors will benefit from improved ROI because of highly professional and cost-effective storage and distribution becoming available in their vicinity.

www.cbnme.com

M a r c h 2 020

Major Deals and Future Investments In 2019, LogiPoint signed deals with NAQEL express, Aramex, Aramco Chemicals Company, and many more.

Mr. Farooq explained about the value proposition that LogiPoint presents to companies, “Our value proposition to each of these clients has been uniquely tailored for their specific needs. Naqel Express and Aramex are part of our focus on the express and e-commerce segments, which are the two most important seg-

ments for us going forward, while our partnership with Aramco is built on our joint focus on facilitating exports out of the Kingdom. I think what makes LogiPoint appealing to these international organizations is our ability to understand their requirements and our will to be part of the long-term supply chain solution for them.”

In terms of investment, LogiPoint have a three-pronged strategy: “We are investing in people, systems and infrastructure. We have a

robust HRD which has a singular focus on finding, developing and retaining top talent, while our growth plans, which are driven by the very people, require us to constantly evaluate and invest in systems and projects which will not only keep us in tune with the needs of our clients but also help us to anticipate and address those needs in advance. Also, we are exploring to expand our foot-print nation-wide to provide customers with consistent and reliable service in all major markets in the Kingdom.”

Logistics News ME | March 2020 | 21

C o v e r S to ry

New Logistics Landscape In many ways LogiPoint is the new logistics landscape – they look at themselves as a platform for the logistics industry to experiment with and practice innovative logistics solutions.

“Our various partnerships with the global and national e-commerce giants as well as our current focus on developing the multimodal solutions like sea-air and cross-border bonded trucking are all part of our clear strategy to lead the way for the new logistics landscape,” said Mr. Farooq.

GCC and KSA Market The GCC region is uniquely positioned with the Red Sea on the West and the Arabian Gulf on the East, and so while the Eastbound shipments spend ten days circling the Arabian Peninsula to reach the Arabian Gulf, the West-

22 | Logistics News ME | March 2020

M a r c h 2020

bound shipments spend a similar time going the other way round to cross the Suez.

“With the cross-border Gulf service, we have managed to reduce that transit time by 7-8 days with eastbound shipments being terminated at Jeddah port and trucked to the final destinations in the GCC under bond. Likewise, the exports from these regions also have a much faster route to avail using the crossborder Gulf service,” commented Mr. Farooq.

So not only does the cross-border Gulf service bring the GCC closer together by linking the supply chains together, but it brings the East and the West closer by reducing the transit times between the two halves of the world.

The KSA market is one of the more interesting markets in the world today, driven primarily by the Vision 2030 and the thrust of the Kingdom to emerge as one of the global

leaders in the business world. The vision has unified the private and the public sector in pursuit of a common goal like never before and chalked out a clear path for the various sectors of the economy to follow.

“In the context of the Kingdom, this is unprecedented in many ways, and I think the social and economic infrastructure which we will build over the next decade will serve the Kingdom for many decades to come. 2020 is the beginning of a glorious journey ahead,” said Mr. Farooq.

Mr. Farooq concluded by saying: “More than the goals, it is about the journey to achieve those goals. The process that is adopted and the values that we embrace will really define if the goals that we achieve are really worth striving for. Only with this approach, we can bring sustainable change in our mind-set.”

www.cbnme.com

EFFICIENCY IN A SMALL PACKAGE GENIE® GS™-1330m SCISSOR LIFT

2 Person Platform Occupancy

227 kg (500lb) max lift capacity

Lightweight

Only 885 kg (1,950 lb)

Efficient EfficientElectric Electric Drive DriveSystem System

Provides maximum runtime Provides maximum runtime per percharge charge

LEARN MORE AT GENIELIFT.COM/GS1330M ©

2020 Terex Corporation. Terex, Genie and Taking You Higher are registered trademarks of Terex Corporation or its subsidiaries.

Profile

Competitive Advantage Dubai Investments Park: a breeding ground offering a competitive advantage for logistics companies

By Kasun Illankoon

Dubai Investments Park (DIP), a wholly owned subsidiary of Dubai Investments, the unique, self-contained, mixed-use master community offering a mix of residential, commercial, and industrial zones, is positioned as among a lucrative location for investors who belong to the logistics industry due to its strategic location next to Expo 2020. With an integrated structure harmonising industrial, commercial, and residential communities, companies in DIP have a competitive advantage of connectivity and being in the heart of business.

The number of companies in DIP has increased since the beginning of this year by 300 companies, where the total number of companies now stand at 4200 companies compared to 3900 companies at the end of last year, an increase of about 7%, also highlighting the concentration of the companies within the industrial, logistical and commercial sectors. To date, DIP has leased more than 97 per cent of its space, which accounts to 17 million square meters of leasable area, attracting investments of over AED 42 billion. Today DIP is a booming community, with over 12,000 residential

24 | Logistics News ME | March 2020

units, more than 160,000 residents, 6 schools, 5 operational hotels as well as serviced apartments, 1 hospital and 4 clinics, 313 staff accommodation buildings, 20 million sq. ft of office space, more than 4,200 tenants, 645 warehouse, factories and industrial facilities, 25 office buildings, and 18 showrooms.

DIP hosts more than 35 logistics companies including, Agility Logistics LLC, Equitrans Logistics LLC, Global Shipping, Logistics LLC, Moving Systems LLC, Seven Seas Ship Chandlers LLC and White Line Shipping and Cargo LLC to name a few.

The logistics industry was noted to constitute 14% of Dubai’s GDP in 2015, highest amongst all Emirates as it still hikes to greater measures. Naturally located between the east and west, Dubai withholds its position as a logistics hub and avid trade route, with the logistics industry in the UAE providing security for long-term sustained success to the national economy. Research undertaken by the Ministry of Economy also highlights benefits such as integrated free zones, heavy infrastructure investments, and a rapid growth in e-commerce

as key reasons for a booming logistics industry in the Emirate, with the UAE’s logistics sector having hit a gross profit output of $60 billion by year’s end according to industry reports.

Hosting the largest business and residential communities in Middle East, DIP flaunts its contemporary infrastructure and city-within-acity concept. The park witnessed a substantial AED 4 billion investment for it to provide topnotch facilities, such as a 140 km internal road network, well-integrated water and electricity systems, world-class hospitals, education institutes, super markets, retail outlets, and other facilities for its occupants. The development of infrastructure facilities in the park is one of the major attractions for companies that prefer to work in the complex to take advantage of these facilities, which makes the park records strong turnout for industrial units and warehouses during the current year.

The logistics companies at DIP could leverage from the new road enhancement projects in the complex with two flyovers by RTA at the Sheikh Zayed bin Hamdan Al Nahyan Street, located between DIP 1 and 2, currently being

www.cbnme.com

M a r c h 2 020

top investment locations in the UAE and the larger Arab region, DIP is continually enhancing infrastructure, services and regulations and increasing ease of doing business, headed in the right direction and reaping fantastic results.

Over the last few years, DIP has witnessed a sharp increase in DIP’s sub-leasing reflecting the surging optimism in the regional business environment, coupled with the growing reputation of DIP as the preferred business destination. DIP has consistently developed its road network and upgraded its infrastructure and facilities, which continues to attract new tenants and the proximity to the Expo 2020 site has added to the strategic advantage of the development. DIP has constantly initiated efforts towards the enhancement of various infrastructure facilities and has invested in excess of AED 1.5 billion only towards development of infrastructure.

As part of DIP’s concerted efforts, an amount of approximately AED 125 million has been allocated towards improvement of public facilities, pedestrian track maintenance and upgradation of existing infrastructure, and air conditioned bus shelters over the next 1 year.

DIP will continue its efforts to act as a catalyst for sustained development and raise excellence across all sectors by implementing international best practices to create a plan that will help towards yielding a sustained growth across the UAE. operational. The additional projects also includes the enhancement of a two-lane service road in each direction on the Sheikh Zayed bin Hamdan Al Nahyan Street and Al Yalayes Street. There are currently a total of 11 entrances and exits to DIP from major highways, and the new entrances are part of RTA’s expansion of the Al Yalayes and Expo Road leading into DIP to facilitate the movement of vehicles to DIP’s industrial, commercial, and residential areas.

These enhancements to the road infrastructure has benefited DIP’s industrial zone, with improved road networks, connectivity to regional and international transport linkages, access to markets and speedy delivery of raw materials to manufacturing units, research and development laboratories, and finally for processing to assembly.

DIP has witnessed qualitative growth in investments over the last 20 years. The growing investment figures testify the trust among the investors and reiterate DIP’s commitment towards reinforcing positive perceptions of the development’s competitiveness. Today, as one of the

Logistics News ME | March 2020 | 25

F e at u r e

Breakbulk Effect

Breakbulk Middle East (BBME), the largest breakbulk and project cargo event in the GCC saw representation of over 74 countries, in addition to the participation of more than 2900 attendees consisting of nearly 96 exhibitors and in excess of 800 major corporations

Last year’s participation included 3400 attendees and 1700 companies. This reflected an 83% increase in attendance from the year prior.

Moreover, it marked the fourth consecutive year in which BBME grew from its previous edition.

Despite registration remaining open until the event commences, the upcoming fifth edition is already on pace to shatter these numbers.

Breakbulk events are held in four locations around the world and are the leading industry-

26 | Logistics News ME | March 2020

specific exhibition in each region. Due to strong gatekeeping systems with companies in the Middle East, Breakbulk Middle East is one of the only ways to make direct connections with logistics and procurement decision makers, assured by its deepening ties with local government.

To ensure key decision makers can share and implement a joint vision towards prosperity, this year’s event includes a governmental panel

titled ‘Regional Outlook and Growth Opportunities for the Breakbulk Industry.’ The session is timely with major carriers and freight forwarders reporting upswings in demand for specialist freight handling services in the Gulf States and the wider Middle Eastern region.

H.E Al Nuaimi commented, “A wide-range of large-scale projects and investments are taking place within the Middle East. This pertains to oil and gas projects, increased interest in re-

www.cbnme.com

M a r c h 2 020

newable energy and major infrastructure projects. In essence, cargo carrying contract opportunities are poised to keep rising throughout the region and this is highly beneficial for the UAE and entire GCC. Breakbulk Middle East provides an effective platform for industry leaders to align their objectives accordingly.”

The governmental panel is the first of its kind with topical issues like the Belt and Road initiative set to be among the subject matter discussed. Senior government officials from the region will address upcoming project opportunities to enhance the region’s capabilities and in turn, the collective breakbulk industry.

H.E Eng.Hessa Al Malek, Executive Director of the Federal Transport Authority for Land and Maritime UAE, will also be a member of the esteemed panel. Al Malek stated, “A number of factors will contribute in shaping the regional infrastructure for decades to come, and this means strategic planning and prioritization of tasks is crucial to maintain economic prosperity. With various projects in the pipeline, understanding the effect that this will have on the industry going forward is of the utmost importance. Breakbulk Middle East will aid in enabling dialogue that provides such clarity for the UAE, and extended Middle East.”

Commenting on the importance of this year’s event, H.R.H Princess Sarah Al Saud, Director of Maritime Business Development at the International Forum for Maritime Transport, Arab Academy for Science, Technology and Maritime Transport in Alexandria, stated, “After only one day, Breakbulk Middle East has once again proven its stature as the ideal networking platform for shippers, ports, carriers, forwarders and heavy transport specialists. The influence of this event is visibly apparent, as it has done a tremendous job of uniting and structuring communication lines between the top five industrial sectors spanning metal, energy, manufacturing, oil and gas, and shipping, which are all essential to the region’s economic prosperity. Additionally, we understand the event’s growing reputation and significance of its ability to promote interactive discussion among international leaders and key players within the global breakbulk and cargo industry.”

Echoing a similar voice Khamis Juma Buamim, the Chairman of Dubai Council for Marine and Maritime Industries, added, “The UAE’s determined strides for excellence have led to the UAE’s attainment of first-class shipping and proven logistic capability. Likewise, it’s undeniable that events such as Breakbulk

Middle East 2019 have greatly contributed to the success of our great Emirate. This year’s turnout has painted an accurate portrayal of the UAE’s pioneering efforts, which have successfully positioned Dubai as a competitive environment synonymous with stimulating trade, business and investment. Witnessing the attendance of over 2000 individuals and international rep-

resentation of over 55 countries only solidifies Breakbulk’s credibility as a platform that unites necessary industry powers and aids in raising awareness of Dubai’s global recognition as an elite international maritime hub.”

Khaled Shalha, Marketing Head at King Abdullah Port stated: “The Kingdom has embarked on a remarkable transformation journey

Logistics News ME | March 2020 | 27

F e at u r e

Khaled Shalha, Marketing Head at King Abdullah Port

Mohammed Jaber, COO, Agility

Ujwal Srivastava, ManagerSales, Fleetline Shipping 28 | Logistics News ME | March 2020

inspired by the goals of Vision 2030, the government’s ambitious roadmap to sustainable success, and we at King Abdullah Port are proud to support these efforts through our state-of-the-art maritime logistics capabilities. Since its official inauguration by the Crown Prince HRH Prince Mohammad bin Salman in February 2019, King Abdullah Port has established its position

as a leading local/regional logistics hub. Perhaps the most prominent example of our complimentary role for government agencies in the Kingdom is the MoU signed by Mawani and the Economic Cities and Special Zones Authority a few days ago, which confirmed that government agencies and the private sector in the Kingdom continue to work together to achieve

www.cbnme.com

M a r c h 2 020

strategic national objectives, including maintaining regional and global leadership for Saudi ports and promoting the Kingdom’s position as a key driver for global trade.”

Agility, COO, Mohammed Jaber said: “Breakbulk Middle East represents a unique event in the region, as it brings together the most influential parties in the management of logistics services and supply chains from around the world.

The event is a great opportunity for Agility to meet with partners and stakeholders, with the aim of finding potential cooperation opportunities, to enhance and develop the industry further and create new success stories in the region.

As one of the world’s leading logistics companies, we are proud of our deep understanding of the supply chain, technology and personal service, which allows us to connect our clients’ businesses with global markets and growth op-

portunities. Breakbulk Middle East is an opportunity for Agility to elevate our knowledge with the event’s dependably topical agenda, as well as expand our customer base with its ability to serve as a strong networking platform that unites a multitude of sectors.”

Ujwal Srivastava, Manager-Sales, Fleetline Shipping said: “The project cargo logistics service – the national or international transportation of large, heavy, high value, or complex pieces of equipment, has emerged as the boon for Middle East. With the benefit of cost, manpower and time, this service and the companies that provide them are in high demand across the Middle East. Considering the business opportunity, numerous logistic companies have come-up with the project to support customers and help them reducing the overall cost of logistics when handled by self. While numerous companies deliver ready-made solutions,

many of them lack the technical knowledge to offer competent business support. Standing apart from other logistic service providers, FLS supplements its offerings with a wide range of shipping and cargo related services assuring excellent end-to-end logistics solutions to its customers. Fleet Line offers and fulfils what exactly the customer needs, which is helping the company to scale-up its potential to serve customers better.”

Ben Blamire, Event Director of Breakbulk Middle East said, “It’s been very promising to see an increase in online registration thus far.

There are a lot of new international exhibitors from the UAE, wider Middle East and even towards Europe and the United States. With topics like IMO 2020 and the emerging market of Africa set to be discussed, this global interest and participation will be vital in forwarding the sector.”

Logistics News ME | March 2020 | 29

Trucks

30 | Logistics News ME | March 2020

www.cbnme.com

M a r c h 2 020

Everyone talks, one delivers Logistics News ME takes a look at the new Mercedes-Benz Actros truck and why the trucks new features are set to enhance safety for all road users, efficiency for operators, and comfort for drivers to unprecedented levels.

“Actros 5th generation with Active Drive Assist is the first partially automated assistance system on a series produced truck in the world.

Today marks the first time these vehicles hit the roads of the Middle East and Africa,” stated Kay-Wolf Ahlden, President & CEO of Daimler Commercial Vehicles MENA. Added Mr. Ahlden, “The new Active Drive Assist can brake, accelerate, and steer the truck independently.” Unlike systems that only work at certain speeds, Active Drive Assist, or ADA, offers partially-automated driving at all speeds for the first time in a seriesproduced truck. New elements include the

active latitudinal control and the combination of longitudinal and lateral control at all speeds through the fusion of radar and camera information. Active Drive Assist builds upon the tried-and-tested adaptive cruise control with stop-and-go function and the lane-keeping assistant from Mercedes-Benz.

While responsibility for monitoring the traffic situation remains with the driver, the system provides substantial support and significantly contributes to increased road safety. The Active Drive Assist system, which enables Level 2 automated driving, is currently only available in the EU markets.”

Logistics News ME | March 2020 | 31

Trucks

M a r c h 2 020

Reduced fuel consumption The fuel consumption of the new Actros has once again been reduced compared to previous models and it achieves savings on motorways and rural routes. Aerodynamic improvements have been achieved thanks to MirrorCam. First series production truck with MirrorCam replacing outside mirrors to increase safety and efficiency The main mirrors and wide-angle mirrors have been replaced on the new Actros by the MirrorCam. The MirrorCam represents a tremendous improvement in terms of aerodynamics, safety and vehicle handling. This system provides a significantly improved all-round view and consists of two cameras mounted to the exterior of the vehicle and two 15-inch displays on the A-pillars inside the cab.

Active Brake Assist 5: the next generation of emergency braking assistance system Active Brake Assist 5 supports the driver in case of a potential rear-end collision or a collision with a person who is crossing in front of the vehicle, coming towards it or staying in the same lane – if required initiating maximum full braking to a standstill automatically. As of now Active Brake Assist 5 works with a combination of a radar and camera system. This enables the system to monitor the space in front of the vehicle even better and respond to people even more effectively.

All assistance systems in all Mercedes-Benz vehicles work within system limits at all times to their full capacity. The driver retains full responsibility with respect to the road and traffic conditions.

Connectivity The new Actros with its fully updated Multimedia Cockpit offers the driver a unique level of operational convenience and display comfort. Two interactive screens serve as the central source of information in the driver’s digital cockpit of the future. Assistance systems are visualised here, as well as all basic information which is relevant to the driver. Connectivity is now reality in the Actros: smartphones can be connected via Apple CarPlayTM or Android Auto. Apps help the driver to fulfil their transportation tasks. The Truck Data Centre connects the truck permanently to the cloud and forms the basis of all connectivity solutions. Real-time monitoring of the truck via FleetBoard brings added value for the business owner. The driver also enjoys greater ease of

32 | Logistics News ME | March 2020

operation thanks to the new remote-control key provided as standard.

The progressive interior and exterior design of the new Actros The development of the interior design of the new Actros has revolved systematically around the driver – working from the “inside out” as a principle. The result is a modern truck interior. The new “user experience” for the driver governed the entire design process. The strongest manifestation of this is in the new Multimedia Cockpit, which

takes the Actros to the digital age. Touch functionality, the widescreen format for the displays, as well as details of the surfaces, trim elements and the few remaining analogue switches, are all hallmarks of the modern, high-quality interior of the new flagship from Mercedes-Benz Trucks. On the exterior, the omission of conventional outside mirrors gives the proportions of the Actros an even more homogeneous appearance. The dynamic styling of the MirrorCam and the characteristic front headlamps creates a progressive look for the new Mercedes-Benz Actros.

www.cbnme.com

R e p o rt

Expansion Fleet

Etihad Rail awards contract for the supply of locomotives to Progress Rail Locomotive Inc

The Board of Directors of Etihad Rail, the developer and operator of the UAE’s national railway, has awarded a contract for the supply of locomotives for the UAE’s nationwide rail network to Progress Rail Locomotive Inc., a Caterpillar company, expanding the company’s fleet to 45 locomotives, which is equivalent to 6 times the current fleet consisting of 7 locomotives.

In the presence of His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Member of the Executive Council, Chair-

34 | Logistics News ME | March 2020

man of Abu Dhabi Crown Prince’s Court and Chairman of Etihad Rail, the contract was signed by Shadi Malak, CEO of Etihad Rail, and Ramzi Imad, Progress Rail’s Regional Director of International Sales for North Africa and Middle East.

Speaking on the occasion, H.H. Sheikh Theyab bin Mohamed said: “In the year of “2020: Towards the next 50”, we are moving forward in completing all the necessary components for this national project that contributes to the UAE’s progress and enhances the

country’s prestigious global position. The cutting-edge fleet of locomotives will raise the bar in the transportation system and logistics services in the country and increase the network’s annual capacity to more than 60 million tons, compared to the current annual capacity of approximately 7.2 million tons.”

H.H. added: “Our advanced locomotives fleet will serve the needs of the customers of this national strategic project, which will transform the transport industry in the country and the region.”

www.cbnme.com

M a r c h 2 020

Etihad Rail contracted Progress Rail, one of the world’s biggest manufacturers of dieselelectric locomotives, to design, manufacture, test, and ship 38 EMD locomotives especially designed to withstand the high temperatures and humidity of the gulf region. Additionally, the locomotives fleet will be equipped with a state-of-the-art air filtration system that filters sand from the air intake and pulse cleaning systems, ensuring effective and efficient operations while passing through desert areas.

The locomotives feature powerful motors and will be supported by advanced emission reduction technology, reducing carbon emissions by 70-80%. The locomotives are designed to haul a 100-wagon train, which can replace 5,600 on-road truck trips per day.

The agreement increases the fleet of Etihad Rail to 45 heavy 4,500 HP locomotives, which are among the most powerful locomotives in the region. Since Etihad Rail became operational in 2016, the company’s current fleet of 7

locomotives has contributed to decreasing the number of truck trips on the roads of Al Dhafrah by more than one million, with up to 28 million tons of granulated sulphur transported from sources at Shah and Habshan to the processing and export point at Ruwais.

The signing of the contract follows the awarding of all civil works contracts for Stage Two of the national railway network, the launch of construction works of Package A of Stage Two, and the award of a contract to build a series of freight facilities for the rail network, underlining the company’s consistent and strong performance to complete one of the biggest and most important infrastructural projects in the country.

Etihad Rail was established in June 2009 under Federal Law No. 2, with the mandate to manage the development, construction and operation of the UAE’s national freight and passenger railway network. The railway network will link the principal centres of population

and industry of the UAE, and will form a vital part of the planned railway network across the GCC. Etihad Rail has successfully completed Stage One of the network. Stage One is fully operational and was delivered on schedule and within budget. The route spans 264 km, transporting granulated sulphur from sources at Shah and Habshan to the export point at Ruwais. Stage Two links the United Arab Emirates and Saudi Arabia from Fujairah Port to Ghuweifat through Mussafah, Khalifa Port and Jebel Ali Port. Built to international standards, Etihad Rail’s state-of-the-art network will span approximately 1,200 km, acting as a catalyst for economic growth and sustained social development. Upon completion, the railway will redefine logistics and transport in the region, providing a modern, safe, efficient and sustainable mode of transport that will connect all regions of the UAE to its neighbouring GCC countries.

Logistics News ME | March 2020 | 35

Event review

Automechanika Riyadh 2020 The leading trade fair for the complete automotive aftermarket returned to Riyadh from 24 - 26 February 2020 at Al Faisaliah Hotel.

Kingdom’s vehicle sales grow 60 percent yearon-year new figures reveal on eve of 2nd Automechanika Riyadh trade fair Improved macro-economic conditions along with tens of thousands of driving licenses issued to women in the last year have had a positive knock-on effect on Saudi’s auto market and services industry, with sales of both passenger and commercial vehicles surpassing the half a million mark in 2019, new figures have revealed.

After a rough year in 2018, vehicle sales

36 | Logistics News ME | March 2020

grew 60 percent year-on-year to reach 500,000plus units in 2019 according to Aranca, a global research advisory firm, with the realisation of some of Saudi’s Vision 2030 initiatives playing a key role.

Chief among these was the decision to allow women to drive in June 2018, and after a slow transition period, new licenses came flooding in; as of June 2019, more than 120,000 women applied for driving licenses, opening up a swathe of new business opportunities, from driving schools and service centres for women,

to aftermarket products and services specifically aimed at an entirely new customer profile.

Vishal Sanghavi, Aranca’s Head of automotive practice, said competition among auto manufacturers has never been fiercer, as dealers pursue aggressive growth strategies to make up for lost revenue during 2016-18: “One of the successful strategies adopted by major players is to launch more entry-level models,” said Mr. Sanghavi.

“The share of entry level models in Saudi has increased from 20 percent in 2018 to 25

www.cbnme.com

M a r c h 2 020

percent in 2019, and models such as Chevrolet Spark and Nissan X-Trail recorded 100 percent y-o-y growth in their sales volume. Promotional offers, the launch of women-centric models, and enhancing customer experiences are some of the strategies used by car dealers to capitalise on increased demand.”

The auto aftermarket will also regain momentum as more drivers and cars ply the Kingdom’s roads, added Mr. Sanghavi.

He said Saudi’s auto spare parts and service market stood at about US$8.1 billion in 2019, and is expected to grow around six percent annually over the next four years to reach US$10.15 billion by 2023.

“There’s strong anticipated growth in PVs (passenger vehicles), with more than 6.85 million cars expected to be on Saudi’s roads in 2023, compared to just over five million in 2019,” he said. “The PV spare parts and service market contributed more than US$5 billion in 2019 and is expected

to eclipse US$6.9 billion by 2023.”

The positive outlook comes on the eve of Saudi’s leading trade fair for the auto aftermarket Automechanika Riyadh, which opens doors for its 2nd edition from 24-26 February 2020 at the Al Faisaliah Hotel.

The biennial three-day event will feature leading global suppliers from 12 countries, showcasing 1000’s of products across six aftermarket product groups of Parts & Components, Electronics & Systems, Accessories & Customizing, Repair & Maintenance, Tyres & Batteries, and Car Wash, Care & Reconditioning.

Mahmut Gazi Bilikozen, Show Director for Messe Frankfurt Middle East, which licences the Automechanika brand to Automechanika Riyadh’s Saudi-based organiser, ACE Group, said: “Saudi’s auto industry and subsequent aftermarket is entering 2020 with renewed enthusiasm, as professionals witness the full impact of the Kingdom’s economic diversification strategies in-line with the Saudi Vision 2030.

“Professionals spanning Saudi’s entire aftermarket, from wholesalers, distributors, and retailers, to service providers, garage or workshop owners, will need the knowledge, tools and products to capitalise on the upcoming opportunities. Fortunately, Automechanika Riyadh 2020 will present an ideal opportunity to find the right partners to give their businesses a powerful edge in this hotly competitive environment.”

Automechanika Riyadh has been dubbed as “the ultimate destination to meet global manufacturers and suppliers, explore key trends across the industry and source the latest solutions to meet the evolving needs of the Middle East’s largest market.”

The biennial trade fair serves as the dedicated automotive aftermarket and services industry trade fair for the country’s central and eastern regions and alternates between the Kingdom’s capital and the Red Sea port city of Jeddah – with the next event hosted in 2021.

Logistics News ME | March 2020 | 37

Av i at i o n

COVID-19 Cuts Demand and Revenues

The International Air Transport Association (IATA) announced that its initial assessment of the impact of the Novel Coronavirus 2019 outbreak (COVID-19) shows a potential 13% full-year loss of passenger demand for carriers in the Asia-Pacific region. Considering that growth for the region’s airlines was forecast to be 4.8%, the net impact will be an 8.2% fullyear contraction compared to 2019 demand levels. In this scenario, that would translate into a $27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region—the bulk of which would be borne by carriers registered in China, with $12.8 billion lost in the China domestic market alone.

In the same scenario, carriers outside

38 | Logistics News ME | March 2020

Asia-Pacific are forecast to bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China.

This would bring total global lost revenue to $29.3 billion (5% lower passenger revenues compared to what IATA forecast in December) and represent a 4.7% hit to global demand. In December, IATA forecast global RPK growth of 4.1%, so this loss would more than eliminate expected growth this year, resulting in a 0.6% global contraction in passenger demand for 2020.

These estimates are based on a scenario where COVID-19 has a similar V-shaped impact on demand as was experienced during SARS. That was characterized by a six-month

period with a sharp decline followed by an equally quick recovery. In 2003, SARS was responsible for the 5.1% fall in the RPKs carried

by Asia-Pacific airlines.

The estimated impact of the COVID-19 outbreak also assumes that the center of the public health emergency remains in China. If it spreads more widely to Asia-Pacific markets then impacts on airlines from other regions would be larger.

It is premature to estimate what this revenue loss will mean for global profitability. We don’t yet know exactly how the outbreak will develop and whether it will follow the same profile as SARS or not. Governments will use fiscal and monetary policy to try to offset the adverse

www.cbnme.com

M a r c h 2 020

Role of Governments Governments have an important role to play in this crisis: • Operations: Airlines have developed standards and best practices linked to the International Health Regulations (IHR) to manage effectively and efficiently in times of public health emergencies.

Airlines, therefore, depend on governments to also follow the IHR so we have an effective global approach to containing the outbreak. “We have learned a lot from previous outbreaks.

And that is reflected in the IHR. Governments need to follow it consistently,” said de Juniac.

• Leadership: It is also important for governments to take leadership in shoring up their economies.

The Singapore government, for example, is allocating SGD 112 million to provide financial relief to airlines struggling to economically maintain connectivity. “Airlines and governments are in this together.

We have a public health emergency, and we must try everything to keep it from becoming an economic crisis. Relief on airport costs will help maintain vital air connectivity. Other governments should take good note and act quickly,” said de Juniac.

economic impacts. Some relief may be seen in lower fuel prices for some airlines, depending on how fuel costs have been hedged.

“These are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority. Airlines are following the guidance of the World Health Organization (WHO) and other public health authorities to keep passengers safe, the world connected, and the virus contained. The sharp downturn in demand as a result of COVID-19 will have a financial impact on airlines—severe for those particularly exposed to the China market. We estimate that global traffic will be reduced by 4.7% by the virus, which could more than offset the growth we previously

forecast and cause the first overall decline in demand since the Global Financial Crisis of 2008-2009. And that scenario would translate into lost passenger revenues of $29.3 billion.

Airlines are making difficult decisions to cut capacity and in some cases routes. Lower fuel costs will help offset some of the lost revenue.

This will be a very tough year for airlines,” said Alexandre de Juniac, IATA’s Director General and CEO. Advice to Travelers The WHO has not called for restrictions on travel or trade. Indeed, air transport plays a major role—bringing medical staff and supplies to where they are needed.

WHO has published extensive advice to travelers on its website. Passengers should be reassured that cabin air is filtered, that aircraft are cleaned in line with global standards, that key airports have implemented temperature screening for travelers and that airline staff and crew are trained to deal with the rare case of a passenger presenting with symptoms of infection.

“If you are sick, don’t travel. If you have flu-like symptoms, wear a mask and see a doctor. And when you travel wash your hands frequently and don’t touch your face.

Observing these simple measures should keep flying safe for all,” said Dr. David Powell, IATA’s Medical Advisor.

Logistics News ME | March 2020 | 39

Trucks

M a r c h 2 020

Communication in Logistics Anan Shakhshir, Marketing Director of Posta Plus Groupon the importance of communications for logistics that will give you a better insight into understanding of customer needs How could the world look like 30 years before if communication and marketing were not there documenting and informing the audience on the updates in the most prominent fields?

The value of marketing communication consists of its powerfulness in connecting the audience with the world, the world of business, entertainment, logistics, etc.

The logistics industry is one of the most rising ones in the world in general and the GCC in particular, however, its essentiality and vitality for the audience are not always obvious and clear due to the specialized nature of this field.

At this exact point, the role of marketing communication appears as a decisive factor when it comes to introducing one of the most important sectors to the audience.

Where to start?

The first step towards building a solid marketing communication strategy for companies that work in the logistics field is asking the right questions: • What I want people to know about my company and my industry?

• Is the persona of my target audience is accurately created and built?

• What are my unique selling points?

• What are the promises that I give to the customers as a company?

• Do I tell the right story to the audience?

• Do I know my competitive advantage?

• Do I know my head to head, first-tier and second-tier competitors?

In the world of today; the target audience can’t be communicated our way but their way.

They choose and decide the way of communication they prefer.

Insightful understanding of the customers The moment the marketing communication team captures the way their audience prefers

40 | Logistics News ME | March 2020

to be communicated through is the one that means that their job starts.

The value that marketing and communication experts could offer nowadays amongst this fierce competition is insightful data.

The marketing team would be able to collect data from their customers to build their persona and accordingly their marketing strategy through the following ways: • Survey • In-depth interviews • Focus groups

Next steps You are already half the way through by getting this data and the analysis. The next steps consist of: • Creating a plan that is aligned with your findings • Creating a communication campaign and marketing approach that is aligned with the communication statement of the company and the persona of its audience • Creating a communication audit to make sure campaigns and activities are paying off

Once the data is collected reports and analysis will shape the form of the strategy needed for the company and the best suitable and convenient way of communication the customers prefer.

This insightful data will help save time and effort and create impactful campaigns that speak to the mind of the customers and meet their needs.

The role of marketing in the world of logistics is the value that it offers to the decision-makers from one side and the marketing teams on the other when it comes to communicating with the audience. The data that is professionally collected and implemented is the main pillar for successful marketing campaigns that speak to the audience’s needs.

www.cbnme.com

S u pp l i e r N e w s

Supplier News

CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s

Saudi Arabia and Germany to enhance transportation system and economic relations

His Excellency Saudi Minister of Transport, Eng. Saleh bin Nasser Al-Jasser, received at the Ministry’s headquarter office in Riyadh, an official economic delegation from German business leaders presented by Mr. Niko Warbanoff, Chairman of the Board of Managing Directors DB Engineering & Consulting GmbH, Mr. Hans-Christian Freiherr Von Reibnitz, Deputy Head of Mission since 2018, Mr. Johann Erich Wilms, President of Wilms Group and Chairman of German Near and Middle East Association and other Heads of German

Companies involved in the Transportation sector to see the most promising opportunities in various Kingdom’s transport sector.

The meeting was attended

by Dr. Rumaih Al-Rumaih, Chairman of the Public Transport Authority, Dr. Bashar Al-Malik, CEO of the Saudi Railways Company “SAR” and Mr. Yasser AL Misfer, Minister’s Advisor and Head of Marketing and Communications Department.

H.E Al-Jasser stressed the Ministry keenness to raise the level of the services provided in partnership

42 | Logistics News ME | March 2020

with the private sector in high advanced technical standards that contributes in adapting and implementing the global experiences of smart transportation systems on the kingdom roads, this comes in line with the stage of transformation that the kingdom’s transportation system is witnessing in investments management, participation and provision of opportunities for investors and specialized companies and International Banks in managing strong and attractive assets for investments in the transportation system.

H.E reviewed the promising opportunities in transportation system, which will have the greatest impact in increasing the volume of economic exchange between the two countries, and the vital role that the private sector can play in developing economic relationship between the Kingdom of Saudi Arabia and the Federal Republic of Germany, Moreover, discussed the advantages of the supported economic and investment opportunities announced by the Kingdom to foreign investors within the Strategic Kingdom’s Vision 2030. www.cbnme.com

M a r c h 2 020

Dubai, São Paulo reaffirm commitment to boosting trade ties Businesses in Dubai and São Paulo can by exploring untapped trade and investment potential in key sectors and areas of mutual interest such as agri-business, technology, innovation, transport and logistics, according to officials speaking earlier today at the Dubai-São Paulo Business Forum.

The forum, held at Dubai Chamber of Commerce and Industry’s premises, was joined by a high-level delegation from São Paulo led by H.E João Doria, Governor of São Paulo State, as well as public and private sector stakeholders from the UAE and Brazil. H.E. Doria and the visiting delegation were received

by H.E. Majid Saif Al Ghurair, Chairman of Dubai Chamber; Dubai Chamber board members, officials and directors.

Addressing delegates at the forum, H.E João Doria noted that the trade mission to the UAE is the largest of its kind to be led by São Paulo’s government as 50 business leaders and 6 Secretaries of State joined the delegation.

H.E. Doria highlighted São Paulo’s expanding trade ties with UAE, and revealed that 25 percent of Sao Paulo’s exports were bound for the UAE in

2019, while 30 percent of the Brazilian state’s imports came from the Gulf country. He added that the UAE has surpassed Italy to become one of Sao Paulo’s top trading partners.

In addition, Sao Paulo Governor invited UAE companies to participate in major agri-business exhibitions taking place in Brazil and called on Emirates

Airline to add an additional flight to Sao Paulo, which he says, would be key to further boosting bilateral ties.

Brazil is one of Dubai’s largest trading partners in Latin America with bilateral non-oil trade reaching $1.5 billion in 2018. There are more than 130 Brazilian companies registered with Dubai Chamber.

Automotive Aftermarket’s ME market to reach US$18.5 bn by 2023 The automotive aftermarket’s business prospects have been underlined by a valuation forecast of US$18.5 billion by 2023, and suppliers and manufacturers are now looking to Automechanika Dubai, the largest international trade show for the automotive aftermarket and service industry in the MEA region, to predict the areas for industry growth.

The three-day trade event hosted over 30,000 visitors and 1,900 exhibitors in 2019, and has established itself

as an international meeting point for global and regional players in the automotive industry. The 18th edition of the show will run from 7-9 June at Dubai World Trade Centre (DWTC).

The growth was highlighted by global research and analytics firm Aranca – the show’s knowledge partner, which also forecast that aftermarket sales will be supported by an increase in passenger and commercial vehicles in operation, a number set to reach 27 million by 2023.

Logistics News ME | March 2020 | 43

Unsung Heroes

March 2020

MAIS KAWAR

Mais Kawar, Marketing Manager – Dubai South, Logistics and Business Park, tells us about her role and how she is helping contribute to Dubai South’s success time and effort to build and increase brand awareness through various activities that enable us to reach out to a new audience. We also conduct initiatives that help us develop stronger relationship with our stakeholders on different levels and maintain loyalty of the existing partners.

Dubai South as Market Leaders The department is fully engaged in a wide range of marketing and branding activities using in line with the business goals set for Dubai South Logistics District. For example, as a hub for logistics and trade, we are wellequipped and positioned to provide the most ideal business solution and logistics facilities to our clients.

We tap a variety of marketing channels and publicity tools to engage our stakeholders and enhance their understanding of what Dubai South Logistics District can deliver as a logistics and e-commerce hub. We also focus on thought leadership and relationship-building with our clients and partners.

Attributes Executing marketing strategies that deliver the desired results has always been one of my key qualities as a marketing professional, given the experiences I had earned through the years delivering B2B & B2C marketing and communication strategies across multiple markets. I also consider commitment creativity, enthusiasm and passion for building fantastic brands to be essential to succeed in my role.

Goals and Objectives My main mission is to establish and maintain Dubai South Logistics District’s global regional and local reputation as key hub for trade, logistics and e-commerce. I believe this is es-

44 | Logistics News ME | March 2020

sential for the organization to drive business development, expand market share, and ultimately, increase profits.

As the marketing and communications manager, I have spent a good amount of

Importance of Teamwork I always believe in team work and it’s very essential for the success of any department or organization. As one person can’t work by his own, the collective hard work in sharing of knowledge and support of every member in the team is important. I have seen how collaboration and working together have helped us move in my department.

www.cbnme.com

BOREDOM FUN COMESIS PROHIBITED GUARANTEED ROOFTOP SWIMMING YOU DECIDE WHEN THEAND PARTY TABLE WINNING. STOPSTENNIS WITH 24HR FOOD & DRINK. NOW OPEN AT DUBAI DIGITAL PARK. RADISSONHOTELS.COM/RED

Save the date

CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

The key exhibitions, conferences, and seminars coming up this month

March

13-15

March

10-12

MENA Transport Congress and Exhibition Dubai, UAe MENA Transport Congress and Exhibition aims to promote public transport throughout the region, to provide opportunities for members to share their experiences and to reinforce the voice and involvement of MENA on the development of public transport on a worldwide level. Our world-class event reinforces all of these aims by bringing together the best minds from public transport to discuss the sector.

LogiMat Stuttgart, Germany LogiMAT is the leading international trade fair that provides a comprehensive market overview and competent knowledge-transfer. It will feature Intralogistics Solutions and Process Management, sets new standards as the biggest annual intralogistics exhibition in Europe.

46 | Logistics News ME | March 2020

March

17-19

March

22-23

Global Aerospace Summit Abu Dhabi, UAE Global Aerospace Summit feature four streams dedicated to the core component sectors of the audience. C-level panel discussions focused on the most important challenges facing aviation, defence, space and technology development. Speakers explored how new technologies will revolutionise the sector and how the aerospace, space and defence industries serve as catalysts for global security, international cooperation, and economic growth.

Saudi Maritime Congress Damman, Saudi Arabia Saudi Maritime Congress is the largest and most important event in the Kingdom of Saudi Arabia for international and regional maritime professionals to meet, network and uncover the business opportunities in the Kingdom.With an exhibition floor of key maritime suppliers, manufacturers and service providers and an industry leading conference programme, Saudi Maritime Congress offers unrivalled benefits for shipowners, operators, managers and many more. www.cbnme.com

Your window to expand.

Introducing Business POS for cashless payments with better transaction rates. du.ae/business-pos