Logistics News ME - July 2019

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Contents

Contents

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

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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

22 Start 10 | News

Features 22 | CARGO 26 | COVER story 30 | Opinion 32 | Talking Point 34 | Interview 36 | Report 38 | Digital 42 | Event Review

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Regional News

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Ed i to r ’ s L e t t e r

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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

The Agility Emerging Markets Logistics Index 2019, released in January, saw the UAE and Saudi Arabia both ranked in the top 20, while Bahrain climbed six places to rank 16th. Co-ordinated approaches where different official entities work together to offer tailored treatment for manufacturing, transport and logistics companies, have enhanced the GCC’s logistics appeal.

For the great Asian markets of India and China and their suppliers, these are significant logistics advantages. Companies in India and Pakistan, for example, transact with each other via the Gulf – a staggering 68% of trade between the neighbours are shipped through GCC nations. The Gulf firmly anchors China’s One Belt One Road global development project and is considered to be of strategic importance to this new unified marketplace.

Political treaties further support those developments take for example the US-Bahrain Free Trade Agree-

ment, all trade in industrial and consumer products flows both ways without tariffs, easing the export process on both sides. A company setting up in the Bahrain Logistics Zone would therefore be able to easily ship goods over the causeway from Riyadh to the port of New York and New Jersey with minimum delays.

In Bahrain’s case, it’s also cheaper: the archipelago is already the most cost-effective logistics hub in the region, according to KMPG, with the total cost of doing business between 49-75% lower than its GCC peers. Time costs will also improve. Already, established connections with the wider region means that goods exported to Bahrain can be reshipped to Kochi and Karachi within a week. Add the benefits of digitalisation, and suddenly logistics players gain a very hefty advantage from basing operations in the GCC – one that could endure for years to come.

Kasun Illankoon Editor, Logistics News Middle East

Senior Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 119 3077

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

Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Vince Celestial vince@bncpublishing.net

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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 Pharmaceuticals

Emirates SkyCargo Strengthens its Pharma Capabilities

Reinforcing its position as the global market leader for the air transport of temperature sensitive pharmaceuticals, Emirates SkyCargo has significantly boosted its worldwide pharma handling capabilities and infrastructure.

Emirates SkyCargo has commenced handling pharmaceutical cargo at a new purpose-built facility in Chicago. The facility, dedicated solely for pharmaceutical shipments. is spread over 1,000 sq. metres, with scope for additional expansion and provides comprehensive protection for pharma cargo through temperature controlled zones for acceptance and delivery, pharma cargo build up and break down, storage and direct 10 | Logistics News ME | July 2019

ramp access.

“Emirates SkyCargo is committed to the safe and secure transportation of temperature sensitive pharmaceutical shipments.

Having a dedicated facility for pharma at one of our busiest stations for pharma in our network is a big boost to our pharma handling credentials and capability,” said Nabil Sultan, Divisional Senior Vice President, Emirates SkyCargo.

“This was also a unique model wherein we worked closely with the ground handler and were involved in the planning for the facility from the very beginning.

Using our learnings from transporting pharma across six continents, we were able to collaborate to make the

new pharma facility fit for purpose,” he added.

The dedicated pharma facility in Chicago is part of Emirates SkyCargo’s broader strategy to enhance protection for temperature sensitive pharma shipments not just at its hub in Dubai but from origin to destination.

Following up on the success of the pharma corridors initiative which was announced in Jan 2018, Emirates SkyCargo has expanded its initial network of 12 pharma stations to 20.

As part of pharma corridors, Emirates SkyCargo works with ground handling partners and other local stakeholders at the stations that are important origin or destination points for pharma, in order to

ensure a high standard of handling operations for pharmaceuticals in line with Emirates SkyCargo’s stringent norms.

Commenting on pharma corridors, Henrik Ambak, Emirates Senior Vice President, Cargo Operations Worldwide, said: “Pharmaceutical cargo being transported by air are growing in their sophistication and complexity in terms of the strict regulations for handling and temperature control.

We introduced the pharma corridors initiative because we wanted to expand the required high standard of handling for pharma shipments further into our network and serve markets better from origin to destination.” www.cbnme.com

J u ly 2 019 Airports

Dubai South to highlight key role in global trade growth at transport logistic In line with its commitment to play a key role in further advancing Dubai’s leadership in global trade and e-commerce, Dubai South will bring to the spotlight the emirate’s advanced logistics connectivity and innovation among a global network of transport, logistics, mobility, IT and supply chain management companies when it participates at the Transport Logistic Exhibitions in Munich from June 4 to 7, 2019. It will showcase major projects under Dubai South’s Logistics District which provide various business solutions.

Dubai continues to lead globally in terms of attracting foreign direct investments (FDI) as it increased by 41% in 2018, valued at AED 38.5 billion considering its pioneering efforts in innovation and digital transformation. From 2015 to 2018, the emirate has attracted a total of USD 21.6 billion worth of FDI in advanced technology transfers. It also continues to

surpass leading economies such as the US, UK and South Korea in the Smart Service Index, having achieved sixth in the global rankings.

Dubai South’s multi model Logistics District provides seamless access to seaports, airports and major roads, reflecting its advanced connectivity and flexibility. It has created various solutions such as ready-to-occupy and built-to-suit options for various types of business operations such warehouses and distribution centers.

As well offering various office solutions through its facilities at The Business Park, a complex of 11 modern

buildings equipped with state-of-the art amenities just right at the entrance of Dubai South.

The Logistics District highlights the ease of doing business in Dubai as setting up companies take minimum processing time, supported by onsite licensing for setting businesses and a dedicated branch for visa and residencies arrangements under the General Directorate of Residency and Foreigners Affairs, apart from an e-portal which facilitates all forms of online services. Logistics District is also the home of EZDubai, the 920,000 square-metre purpose-

built e-commerce zone which seeks to boost the ecommerce sector in the region and serve as an integrator for e-commerce related businesses.

Commenting on the participation, Mohsen Ahmad, CEO, Dubai South’s Logistics District, said: “Participating at the Transport Logistic Exhibitions brings a lot of enthusiasm for Dubai South as we anticipate positive responses to our latest projects in the Logistics District .These initiatives are designed to offer a range of optimal solutions to market players keen to explore the Middle East and the Asian region markets, in line with Dubai’s continuing leadership as a regional and global trade hub considering its businessfriendly environment and policies. We continue to create innovative ways to provide smart facilities as well as business processes that enhance the ease of doing business in emirate and serve many regions.”

The number of new media licences and freelancer permits under RAKEZ Media Zone has jumped 177% to 360 companies and freelancers in May 2019

Bahrain has announced it will pilot new guidelines for the procurement of AI in the public sector. The announcement was made at the WEF Annual Meeting of the New Champions in China

Quick news

Kongsberg Maritime recently opened its new HQ at Dubai Maritime City, the latest organization to do so, further underscoring the confidence of the global maritime community

UPS Foundation Renews Partnership with Emirates Foundation to continue supporting road safety campaigns in the country. The agreement was signed at UPS regional HQ in Jebel Ali

Logistics News ME | July 2019 | 11

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Regional News

Transportation

Al-Futtaim Auto & Machinery Co. & Volvo Buses to supply of 373 city buses to RTA Dubai

Dubai’s Roads and Transport Authority (RTA) has signed a contract for purchasing 373 buses of Volvo SB3 along with a 10-year maintenance contract in support of Dubai’s mobility plan and to cope with the rising number of public bus riders.

The new buses are compliant with Euro 6 standards, and it will be the first time buses of such standard will be operated in the MENA region. The signing of the contract, which amounts to AED474 million took place on the sidelines of UITP Summit in the Swedish capital Stockholm.

HE Mattar Al Tayer, Director-General and Chairman of the Board of 14 | Logistics News ME | July 2019

Executive Directors, RTA, and Håkan Agnevall, President, Volvo Bus Corporation , signed the contract in the presence of representatives from both the entities “The procurement of these new buses is part of RTA’s strategy to improve Dubai’s public transport services in the Emirate and meet the sustained growth of public transport riders. It serves RTA’s efforts to raise the share of public transport ridership to 26% by 2030. We firmly believe that achieving this target hinges on providing high-quality public transport services at affordable fares, expanding the geographical coverage of public transport network, and boosting the

integration of mass transit modes,” said Al Tayer.

“The contract covers the procurement of 373 top-class high-safety Volvo buses fitted with Euro 6 environmentalfriendly engines and capable of supporting future technologies and innovations.

These buses fall under UN Class II Vehicle classification, which allows flexibility in operating buses on inter-city routes or long hauls. Buses are compliant with ITxPT system that enables interoperability between IT systems in public transport, thanks to the availability of bus information database saved in the UAE (UAE Cloud),” said Al Tayer.

“Buses have Onboard Driver Identity Electronic

Authentication System linked with the bus operation system.

Buses have comfortable and high-safety seats, safety belts in the family section adjustable to suit all ages, and a smooth design replicating Dubai’s modernity,” explained Al Tayer.

“We are very proud and grateful for the confidence the RTA once again places in Volvo. This tender was evaluated based on total cost of ownership comparison, including fuel and operational costs, and Volvo came out as the most competitive alternative. The order is a recognition of the value we deliver to the RTA”, said Håkan Agnevall, President of Volvo Bus Corporation. www.cbnme.com

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Gulf Stevedoring Contracting Company Enters New Agreement to Operate King Fahad Industrial Port

Gulf Stevedoring Contracting Company (GSCCO), part of the Gulftainer group of companies, has entered an agreement with Red Sea Marine Services Company Limited to manage and operate King Fahad Industrial Port in Yanbu (KFIP). This takes GSCCO’s portfolio of terminals in Saudi Arabia up to four, cementing the company’s position as the largest and most geographically diverse port operator in the country.

GSCCO will handle all types of cargo at KFIP, including containers, breakbulk cargo, vehicles and bulk cargo. To support operations at the port, the company will invest in significant amounts of new equipment to ensure it can deliver its award-winning levels of operational excellence and turn KFIP into another jewel in the crown of Saudi Arabia’s growing maritime presence.

The decision to award the operation of the port to GSCCO was taken by Saudi Ports Authority (Mawani) in recognition of the company’s long-standing reputation for operational excellence – both at the Northern Container Terminal in Jeddah, which has long enjoyed the reputation of being the most productive and customercentric terminal in the port, and at Jubail Commercial Port, which has consistently delivered the highest levels of productivity in the Arabian Gulf while achieving double-digit cargo volume growth year on year for the past five years.

GSCCO also celebrated another major milestone in 2018 when it passed the 30-million-TEU mark in container volume, corresponding to a 50 per cent increase in throughput in just five years across all its facilities.

Speaking on the new agreement, Richard James, Managing Director of GSCCO, said: “We are delighted at the well-earned trust that Mawani continues to place in GSCCO, and are truly excited at the potential to develop KFIP in Yanbu into another industry-leading port. In line with the strong commitment to the maritime and logistics industry expressed in the Saudi Vision 2030, we look forward to providing best-in-class services to the communities and markets around Yanbu and throughout the Northwest of the country.”

Logistics

Saudia Cargo launches new flights to Athens & Marrakesh

Saudi Airlines Cargo Company launched two new Cargo routes from-to Athens, Greece & Marrakesh, Morocco starting June 2019, aiming to meet the growing demand for cargo operations & stimulate trade movement to/from both destinations.

Athens is Saudia Cargo’s new destination to be operated year-round, with four weekly flights from Riyadh starting in June on-board the Billycapacity of Saudia A-320 aircraft.

Furthermore, Marrakesh destination is operated by Seasonal flights from the 2nd of June till October 25th with three weekly flights from Jeddah through the Billy-capacity on

board Saudia 787 aircraft.

Through these flights Saudia Cargo aims to increase its presence in the African & the European continents to fill the exceeding demand for Air Cargo & logistical services through freighter flights & the belly-capacity on-board Saudi Arabian Airlines.

Saudia Cargo, the national Saudi air freight carrier, offers 900 destinations in more than 175 countries, through a dedicated state-of-the-art freighter fleet in addition to the belly capacity on board Saudia passenger flights, a proud member of SkyTeam Cargo (www.skyteamcargo.com), the world’s leading cargo alliance established in 2000.

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Regional News

Warehousing

Lootah Real Estate Development launches first lease-to-own industrial warehouses

Lootah Real Estate Development announced the launch of Senaeyat, a company that provides lease-to-own industrial warehouses for businesses of different sizes.

Located in a major industrial growth hub in Dubai, Dubai Industrial Park, Senaeyat is the first to offer a lease-to-own model for clients, in which they can have full ownership of the pre-built industrial warehouses within 10 years.

Lootah has acquired three million square feet land for 49 years with Dubai Industrial Park to establish Senaeyat, an industrial warehouse development project in Dubai 16 | Logistics News ME | July 2019

Industrial Park.

Saleh Abdullah Lootah, CEO of Lootah Real Estate Development, said: “We are pleased to offer this sustainable business model to different industries to help them convert their operational costs to assets. This signifies our commitment, not only to residents whom we have developed world-class residential projects for, but to the business community as well.”

Senaeyat has acquired a total of three million square feet for the whole project in Dubai Industrial Park, which will be offered in two phases. The first one

includes one million square feet, and the second, two million square feet.

The 1st phase of the project has four different built-up areas – 20,000 sqft, 24,000 sqft, 30,000 sqft, 36,000 sqft – to cater to diverse market segments, especially focusing on the underserved market of small to medium-sized industries. 2nd phase will have the same size options, in addition to bigger builtup areas – 50,000 sqft and 60,000 sqft.

According to the Saleh Lootah, Senaeyat’s wide range of modern specifications is a response to the growing demand for such warehouses

in the market, as these European models aren’t widely available.

The warehouses will also be readyto-use upon handover.

“We understand the unique requirements of different businesses from multiple industries, and our portfolio of turnkey warehouses are designed to address them,” added Saleh Lootah.

Potential clients can also benefit from the warehouses’ proximity to major areas such as Maktoum Airport, Jebel Ali port, Expo 2020 site, and several major highways such as Sheikh Mohammed Bin Zayed Road and Emirates Road. www.cbnme.com

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Quote The challenge is clear: over the next 20 years, passenger traffic is forecasted to double, while airport capacity will grow at a much slower pace.

This requires a new approach to air travel.”

Barbara Dalibard, SITA CEO

Top 5 online

1

Al-Futtaim Auto & Machinery Co. & Volvo Buses have been selected supplier of 373

2

Al Nabooda Automobiles obtains exclusive rights to distribute HPCL lubricants in the

3

Gulf Stevedoring Contracting Company Enters New Agreement to Operate King

4

Dubai South to highlight key role of Dubai’s advanced connectivity in global

5

FedEx Delivery Manager Launches with SMS

Distribution

Al Nabooda Automobiles obtains exclusive rights to distribute HPCL lubricants in the UAE

UAE based Al Nabooda Automobiles has been appointed as its UAE distributor by Indian petroleum giant, Hindustan Petroleum Corporation Limited (HPCL) through its 100 per cent subsidiary in the UAE, HPCL Middle East.

The agreement was signed

by Khalifa Juma Al Nabooda, Chairman, Khalifa Juma Al Nabooda Group of Companies and Subhendu Mohanty, CEO, HPCL Middle East in the presence of Khalid Al Nabooda, Managing Director, Khalifa Juma Al Nabooda Group of Companies, Mr. K. Rajaram, CEO, Al Nabooda Automobiles, Mr Kanuru Srinivas, Chief General Manager-I&C, HPCL and Mr Thomas Faerber, General Manager, Al Nabooda Automobiles.

Speaking about the partnership, Mr. K. Rajaram, CEO, Al Nabooda Automobiles said, “We are proud to tie up with a giant like HPCL. Our growth strategy over the past few years has hinged on network expansion where we have developed facilities across the UAE in order to be able to cater to the needs of our customers. This included building the World’s largest Audi and Porsche showrooms

in Dubai, expanding our reach into the Emirates of Sharjah and Fujairah and building a state of the art bodyshop and paint facility in DIP. By partnering with HPCL, we are diversifying into a new but related business sector. As a major player in the premium automobile retail sector, Al Nabooda Automobiles enjoys high brand equity in UAE market. The lubricants sector is highly competitive with established players and there are four key strengths that we will capitalize on in order to make this venture into a success, namely our strong existing relationships, the world class infrastructure that we have built across UAE, our orientation towards customer satisfaction and most importantly our talented manpower resources.”

Hailing the partnership Mr. Subhendu Mohanty, CEO, HPCL Middle East FZCO, said “This is a perfect amalgamation of strengths, given the expertise of Al Nabooda Automobiles in building hugely successful world class brands in UAE and the market leading and customer centric products and services offered by a seasoned marketer as HPCL.” Logistics News ME | July 2019 | 17

Regional News

Technology

FedEx Delivery Manager Launches with SMS Functionality

FedEx Express has launched SMS functionality within the FedEx Delivery Manager application in the UAE, Bahrain, and Kuwait. The enhancement is part of an ongoing expansion of the service to 59 countries, covering 80 percent of global GDP. FedEx Delivery Manager provides recipients with the ability to customize their FedEx Express deliveries, with convenient options such as rescheduling the delivery time or location, an added benefit for small and mediumsized businesses.

The platform will support 18 | Logistics News ME | July 2019

the e-commerce market in the region. According to a report

by BMI research, e-commerce in the Middle East is expected to be worth US$48.6 billion in 2022, up from an estimated US$26.9 billion in 2018. “Expectations in last mile delivery and returns are only set to increase with the e-commerce landscape growing rapidly and more retailers and small businesses going online. Convenient delivery options within e-commerce will remain key to customer satisfaction and the overall online shopping experience. FedEx Delivery

Manager demonstrates our efforts to strengthen our lastmile delivery capabilities and provide more control and flexibility to our customers,� said Nathalie Amiel-Ferrault, vice president of Customer Experience and Marketing at FedEx Express Middle East, Indian Subcontinent and Africa.

Recipients expecting deliveries to their residence will receive a notification by SMS or email from FedEx when their package has shipped. The recipient can choose to change the delivery instructions in a few simple

steps via a secured website.

FedEx Delivery Manager is free of charge, easy to use, and secure.

Businesses will benefit from greater customer satisfaction, increased loyalty and cost savings through reduced instances of returns.

Customers can choose the right delivery option for their shipment at no added cost with up to date notifications every step of the way via SMS or email. It also allows FedEx Express to minimize delivery attempts to customers who may not be home to receive deliveries. www.cbnme.com

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Revenue

SITA celebrates 70th Anniversary with Record US$1.7bn Revenue More than 100 of the world’s airlines and airports gathered in Belgium this week as SITA, the air transport IT provider, celebrated its 70th anniversary. The organization, which has been at the heart of the airline industry since 1949, marked the occasion by announcing record revenues of US$1.7 billion in 2018. As SITA recorded a significant turning point in its business, it also showcased its commitment to continuous and collaborative innovation.

At the company’s Annual General Assembly, SITA’s CEO, Barbara Dalibard

outlined its path of growth noting how SITA has remained a vital part of the industry over the past 70 years by continually evolving.

Along with the highest ever revenues, 2018 also marked a turning point for the company as its applicationled business overtook its connectivity business.

Barbara Dalibard, SITA CEO, said: “We had a very successful 2018 with record revenues of US$1.7 billion and for the first time in our 70-year history, our application business now represents more than 50% of our revenues. This is an

important milestone because while connectivity remains a vital part of our business, application growth is a fundamental element of our long-term strategy.”

In 1949, 11 airlines joined together to establish the communications infrastructure which remains at the heart of this interconnected global industry. Today, nearly every passenger flight relies on SITA technology. In total, 95% of all international destinations and over 13,500 industry sites are connected by SITA’s network. Over the decades, SITA has delivered many innovations including; the first

common-use infrastructure at airports, the first airline e-commerce booking engine and the first e-visa system for border management.

Dalibard added: “It is wonderful that as SITA celebrates this anniversary we continue to transform to meet our customers’ needs.

From when SITA took its first steps to create the world’s largest data network in 1949 to today’s software-defined networks (SDN) and techsavvy passengers, we are transforming to deliver a more efficient industry and a better passenger experience with easy travel every step of the way.”

Logistics News ME | July 2019 | 19

Regional News

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Automotive

Prinx Chengshan participates at Automechanika Dubai 2019

Recently, Prinx Chengshan, participated at Automechanika Dubai 2019. Automechanika Dubai is the largest and most professional auto parts exhibition in the Middle East. It is one of the largest international auto parts series exhibitions and the second most popular Auto Parts Exhibition in the world. Every year, it attracts a large number of international exhibitors from auto parts manufacturers as well as purchasers and buyers from the Middle East.

In this exhibition, Prinx Chengshan, with its four brands “Prinx”, “Chengshan”, 20 | Logistics News ME | July 2019

“Austone” and “Fortune”, made impressive appearance with high comments. Prinx Chengshan has full line of semi-steel radial tires, allsteel radial tires and bias tire.

In the aspect of semi steel tire, Fortune FSR-101 is suitable for commercial light truck or pickup in all road condition. Its loading performance, high mileage, wear resistance and wet skid resistance are outstanding.

The pattern of Maspire M/T tire for cross-country is designed to cope with various harsh road conditions.

And for all steel tires, Prinx

Chengshan displayed two products of medium and long distance truck tires for the Middle East and African markets, Chengshan CST103 and Austone AT115. CST103 has excellent performance in high mileage, even wear, stoneejection; AT 115 performs well in high-speed driving with low rolling resistance and good durability.

Over the past decades, Prinx Chengshan adhered to the development of globalisation, aiming at bringing good travel experience to global users.

Prinx Chengshan has built

a global layout with two production bases in China and Thailand, three sales centers in China, Europe and North America. With dedication and global customer orientation, Prinx Chengshan brand image is successful spreading all over the world. With advanced concepts and excellent quality, the market share and brand influence of Prinx Chengshan products continue to enhance. Prinx Chengshan has more than 460 cooperative distributors worldwide, covering more than 130 countries and regions. www.cbnme.com

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TR6 Dubai Canal

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Purchase your ticket and relax in our new air-conditioned station at Dubai Festival City. Cruise between the mall and the Al Jaddaf Marine Station or easily connect to your journey onward as we are integrated with the Creek Metro Station.

Creek/Al Jaddaf

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Dubai Festival City

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Dubai Creek

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AL RASHIDIYA

Abra and Ferry timings: Routes

Timings

Frequency/Fares/Features

Air-conditioned Abra Al Jaddaf Marine Station to Dubai Festival City (BM2)

Saturday – Thursday 7:00 am - 12:00 midnight Friday 9:00 am - 12:00 midnight

10 minutes (Peak Hours) 20 minutes (Off-peak Hours) AED 2 per person, per trip in one direction

Ferry Round Trip – DFC

Every day 4:00 pm

Min. of 8 passengers

For detailed timings and information, visit the respective customer service office inside the station.

Children under 5 years travel for free only for commuter trips.

Ca r g o

Setting the Bar Kasun Illankoon spoke with Hiran Perera, Senior Vice President, Emirates Cargo Planning & Freighters, about the company’s recent participation at Air Cargo Europe and how they are coping with the new trends in air freight and cargo servicing

Air Cargo Europe is the biggest global event for the transport and logistics sector. It is also well attended by a good cross-section of decision makers from the global air cargo industry and this event is therefore a great forum for them to meet both the existing customer base as well as with new and potential customers.

Hiran Perera, Senior Vice President, Emirates Cargo Planning & Freighters, said “We are a customer-focused organisation and we work closely with our customers to understand their business, their requirements and their pain points so that we are able to develop a solution that meets their needs and adds value to their business. And events like Air Cargo Europe

22 | Logistics News ME | July 2019

give us additional opportunities to interact with our customers.”

New Enhancements “We announced a number of enhancements to our current capabilities for handling temperature sensitive pharmaceutical products. We have started handling pharmaceutical cargo at a new purpose-built facility in Chicago,” said Hiran.

The facility, dedicated solely for pharmaceutical shipments, is spread over 1,000 sq. metres, with scope for additional expansion and provides comprehensive protection for pharma cargo through temperature controlled zones for acceptance and delivery, pharma cargo

build up and break down, storage and direct ramp access. Proximity to ramp translates to quicker transit from aircraft to facility and vice versa which means quicker delivery of cargo to customers. We worked with ground handling company Maestro for the development of this facility and it has a capacity of 15,000 tonnes of pharma shipments every year.

The dedicated pharma facility in Chicago is part of the strategy to enhance protection for temperature sensitive pharma shipments not just at Dubai but from origin to destination.

Emirates SkyCargo pharma corridors initiative also expanded from 12 stations to 20 stations globally.

“At these destinations, which are all main

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origin or destination points for pharma, we have worked closely with our ground handling partners and other stakeholders to ensure uniformly high quality for handling pharmaceutical cargo.”

Main Focus As you may know, Emirates SkyCargo offers customers capacity on our fleet of close to 270 modern wide-body aircraft. These include both belly hold on passenger aircraft and main-deck capacity on freighter aircraft.

“Our main focus is to of course optimise our cargo capacity on both the freighters and passenger aircraft as well as the interaction between the two- that is where cargo arrives in

freighter aircraft and moves to a passenger aircraft or vice versa.”

“In terms of market scenario, given the current economic conditions and geo political environment, we expect that in the medium to long term we will observe a shift in manufacturing markets. We need to monitor these trends and ensure that we deploy in the right markets and follow the shift in production so that we keep our network optimised,” explained Hiran.

One good example of this as pointed out by Hiran is the Emirates Charter offering. Emirates SkyCargo executes a significant number of charters and this number has grown significantly. Just last year we executed 395 charters

across the six continents. There is a demand not only for full charters from point to point but also other unique solutions including part charter, re-routing to a destination that we may not serve on a scheduled basis.

“We currently have close to 40 destinations across the globe which we serve on a scheduled basis with our freighter aircraft. And as for our fleet we have 12 freighter aircraft- 11 Boeing 777 freighters and one Boeing 747 freighter aircraft. We have gradually reduced our capacity from 15 aircraft over the last few years.

Given market conditions, we felt that we did not require additional capacity and did not renew expiring leases on two of our Boeing 777 freighter aircraft. However, as and when need

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arises we are able to quickly access additional capacity through our partners in the market,” said Hiran.

Air Freight Hubs for E-Commerce With Emirates network spanning more than 155 destinations across six continents they are able to cater to transport e-commerce goods across markets effectively and efficiently.

E-commerce cannot be tackled with a ‘onesolution-fits-all’ approach. Different categories of e-commerce have varied requirements and there are many ways in which these can be fulfilled. The best approach is to provide tailored solutions to meet customer needs.

“Speed to market is one of our strengths and this is also vital to e-commerce deliveries.

We serve several key global hubs and hence ecommerce companies can use our network and services as a launching pad from an existing hub and move further afield,” explained Hiran.

Pharma Handling Capabilities By 2020, IATA predicts biopharma cold-chain logistics spending will increase by 8 to 9 percent, and that biopharma sales will increase by 4 to 5 percent. Hiran goes into detail on what steps have been taken by Emirates SkyCargo to address this.

“Emirates SkyCargo has invested extensively to develop our pharma handling capabilities at our hub in Dubai. We have over 8,000 square metres of dedicated pharma handling space across our two cargo terminals in Dubai including a purpose built facility at Dubai International Airport (DXB) which was inaugurated in 2016. Our pharma operations at our hub, including both our terminals and our linking trucking operations, have been certified as compliant to EU GDP standards. We were first certified by Bureau Veritas for compliance in 2016 and have just received recertification for GDP norms earlier this year.”

In addition to that the trucking service between Emirates SkyCentral DXB, terminal for handling cargo from passenger aircraft and Emirates SkyCentral DWC, terminal for handling cargo from freighter aircraft runs 24/7.

“We have a fleet of 49 trucks and there are also 12 dedicated reefer trucks making sure that the cool chain is not broken when the cargo is being transferred from our passenger to freighter aircraft or vice versa.”

“We have streamlined our processes to an extent where we are able to deliver a transit time of just 4.5 hours between the arrival of

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goods on freighter aircraft to their departure from passenger aircraft and the other way around. The trucks almost act as a seamless conveyer belt in transporting pharma cargo between the two airports,” said Hiran.

Emirates SkyCargo operates across six continents and we have a global focus and enforces them to adapt for ups and downs in trade and economic cycles. For the foreseeable future, they believe that key markets will retain their

position but we do see emergence of other centres of activity in Asia and also Africa.

“As and when there are shifts in production we are well positioned to serve our customers through our network. We will continue to watch demand and supply optimum capacity that the industry needs. As a commercial carrier, we will have to optimise capacity and deploy capacity in a manner that is rational and sustainable to business,” concluded Hiran.

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C ov e r S to ry

the FUTURE OF

E-COMMERCE We talked to industry experts on the emergence of artificial intelligence in E-Commerce and how technology are pushing companies be competitive as consumer demands increases.

E-Commerce Trends The MENA region will be the next big growth market for e-commerce. Studies by PayFort state that the Middle East e-commerce market will grow to US$69 billion by 2020, almost doubling in size in just a few years. Another study by Statista says the growth rate for ecommerce across the Middle East and Africa would be at a CAGR of 11% in the next four years (2018-2022).

Alain Kaddoum, General Manager, Swisslog Middle East said, “We believe the Middle East is reacting very positively to this trend.

The region already has a high spending potential, excellent Internet penetration rates and a youthful audience eager to purchase. In fact, a 2017 survey by PwC found that younger peo-

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ple were more likely to shop online in the region, with 36% of those between the ages of 18-24 shopping online at least once a month.

Another study by Hall & Partners found that there is a significant number of women in the UAE who prefer to shop online, with around a third of those surveyed buying something online, every week.”

Apart from the above observations, another positive reaction towards e-commerce is from the government itself. The GCC has favourable regulations for online commerce and does its best to make it easy for companies to operate.

An example is CommerCity, a $735 million project dedicated to ecommerce.

Another trend that is becoming apparent is that E-Commerce is fast becoming a primary

focus for retailers, and a compelling sector for investors and entrepreneurs to break into.

Shipa Delivery CEO, Borhene Ben Mena, explains what that means for the industry, “The pressure is on for Last-mile logistics, which must evolve quickly to keep up with ecommerce growth and, in fact, will even need to get ahead of it, because of the expectations that must be met—and for lasting success—exceeded. This can only be made possible by the continuous development of flexible and reliable logistics technology.

An increasing number of e-commerce companies have the capabilities to integrate with service providers, and that promotes a tendency, growing in prevalence, to outsource logistics operations as a way to maintain focus on

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their core business competencies.”

Thus, e-commerce has forced the logistics industry to change and adapt, which is why many logistics companies are extending their service offerings all the way to the door of the consumer.

“Indeed, consumers are in the driving seat.

They have a voice, and are free to decide precisely what levels of service to expect. That means companies like Shipa Delivery must reach new levels of responsiveness and agility to deliver on those expectations, even as they continue to evolve and test our capabilities and resources,” explained Borhene.

On the air freight front Hiran Perera, Senior Vice President, Emirates Cargo Planning & Freighters comments on why the new

trends in E-Commerce can’t have a ‘one-solution-fits-all’ approach.

“Different categories of e-commerce have varied requirements and there are many ways in which these can be fulfilled. The best approach is to provide tailored solutions to meet customer needs.

“Speed to market is one of our strengths and this is also vital to e-commerce deliveries.

We serve several key global hubs and hence ecommerce companies can use our network and services as a launching pad from an existing hub and move further afield,” explained Hiran.

Artificial Intelligence in E-Commerce Today, we see AI walking boldly across the

corridors of any company, any industry, and any business-type. And although artificial, the technology has added a personal touch to the way we shop and trade. AI in e-commerce is enhancing the entire buy-sell experience for both buyers and sellers. Global Director of Fetchr, Angad Singh, explains how AI can speed up the process of customers getting what they want: “AI and machine learning systems are critical towards optimizing the order lifecycle. As the E-commerce industry scales, the customers expect more in terms of quicker click to delivery, better pricing and delivery convenience be it within a certain time frame or pick up from their local convenience store.”

Alain Kaddoum further elaborates on this

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Angad Singh Global Director, Fetchr

Borhene Ben Mena, CEO, Shipa Delivery

by stating out a few examples: • Making ‘search’ easier for customers: AI software tags, organises and visually searches content by labelling features of the image or video. It finds matching products for shoppers, allows them to discover complementary products and much more.

• Identify leads: AI can identify high quality prospects, and this gives their sales team a competitive advantage to win new business.

• The use of Chatbots: Consumer needs are rapidly evolving to the point that retailers struggle to keep up. The use of artificial intelligence through the application of ‘chatbots’ comes in very handy here.

Chatbots can actively take on some of the important responsibilities that come with running an online business, particularly when it comes to executing tasks for operations and marketing, automate order processes, and provide customer service at cost-effective rates and more.

• AI in the warehouse: AI in the ware-

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house is also a big topic. Swisslog, for example, supports customers with various logistics automation and robotics solutions, which result in increased warehouse productivity. Similarly, modern warehouse automation and software systems use exploring AI concepts to respond to the demands of retail.

While there are only a few ways in which AI has molded e-commerce today, the scalability and impact of AI in e-commerce is only expected to increase. The increase will allow identification of exceptional prospects, building better customer relations, boosting sales, and bridging the gap between personalisation and privacy.

Borhene also commented, “Meanwhile, AI and chatbots will push the cost of customer service down, and potentially, will impact logistics cost-performance too, by raising customer availability and there-fore, reducing failed deliveries and the associated rework expenditure.

Consumers expect instant gratification, making same-day delivery more relevant than

ever. Automated routing and smart warehouses are examples of technology that can speed up fulfilment and delivery cycles.”

Sustainable Development According to Angad, sustainable mobility is a mandate all logistics players should have.

“To ensure that we are thinking long term and also being cost competitive fetchr has explored and piloted alternative sources of mobility like electric bikes, cars, etc. The RTA is also leading this mandate and is working with the logistics industry to build the infrastructure to support these initiatives. It is still early days but I see the sustainable mobility initiative only gathering steam in the coming 1-3 years,” said Angad.

Borhene on the importance of sustainability said, “It has driven the need for third-party providers like ourselves to aggregate demand from multiple parties, creating density in deliveries, which reduces time in transit and distance travelled. Aggregation also helps to eliminate the duplication of assets that exists when companies each have their own fleets. Reduc-

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Mr Hiran Perera, Senior Vice President, Emirates Cargo Planning & Freighters

Alain Kaddoum, General Manager, Swisslog Middle East

ing the number of kilometres that vehicles cover carrying nothing but air, is one of the main targets for companies like ours.”

“E-commerce enterprises tend to be very tuned in to environmental issues. We are discussing the introduction of electric cars with some of them. While they are aware that there is a high upfront price to pay, they are receptive to the idea because of their commitment to sustainability,” Borhene elaborated.

With volumes rising on account of e-commerce, automated logistics companies are now having to look for ways to make supply chain processes sustainable as well as environmentally friendly.

“Sustainability is anchored in the corporate culture of Swisslog and KUKA. As a futureoriented company, we strive for sustainability in every area – to the benefit of our people and the quality of our products and services. We also do this because we have a responsibility to society and the environment,” said Alain.

Technological Development Technology, of course, is vital for last-mile de-

livery operators and is already redefining the competitive landscape. As it advances, it will help cut cost per delivery, and that, in turn, will stimulate e-commerce growth and create more demand from customers.

“Agile and future-oriented software is the critical key for companies to adapt to market changes and keep their warehouse operations optimised at all times. Businesses require a software solution that enables companies to optimise not only warehouse performance, but also their entire value chain,” Alain said.

Many businesses seek an effective automated storage and retrieval system. Limited space, an awkward shape of a warehouse building, increasing inventory or turnover in unusual shapes or sizes can all make it difficult to find the right solution. Not only that, automated storage solutions need to be scalable while maximizing space and performance.

Staying flexible enough to respond to changing market requirements is also essential, as when new products launch, demand increases and regulations change.

Angad believes that technology like AI and

warehouse management system has helped Fetchr to be more flexible and be on top of their game when it comes to last mile delivery: “We have pioneered technology and flexibility in our operations which has disrupted the last mile logistics sector. We introduced our AI auto scheduling service which predicts addresses, our warehousing strategy has evolved to cater to quicker turnaround times so we have smaller ‘hubs’ closer to our customers throughout MENA. Our in-house warehouse management system and application have increased our warehouse order processing rates to cater to quicker turnarounds. As we scale, the order volumes do justify automating the warehouses which shall take us to the next level of automation like robotics and driverless delivery.”

In conclusion, every day more people connect to the Internet and grow increasingly comfortable with digital transactions. Business will alter more in the next ten years than it has in the last 50.

The successful companies of the future will be those that take e-commerce seriously, dedicating sufficient resources to its development.

Logistics News ME | July 2019 | 29

Opinion

The Move to 5G Tabrez Surve, Regional Director – Gulf, Levant & Turkey, F5 Networks on how to kickstart your move to 5G services without abandoning 4G investments

These are exciting, yet challenging times for service providers and telcos as 5G comes ever closer to becoming a reality.

Wireless can finally become a leading connectivity option, with speed and latency similar to traditional hardline copper or fibre. 5G will also create massive opportunities around expanding IoT, enabling connected vehicles, building smart cities and more.

However, it will still take time and work to realise this promise. Service providers are taking a big step forward as they begin to roll out new 5G radios, but other parts of their infrastructure will remain 4G for some time. No one wants to abandon the substantial investments made in 4G, but no one wants to fall behind in the race to deliver 5G either.

The good news is that there is still a great deal that companies can do with existing infrastructure to position themselves to be ahead of the curve as 5G lights up. For example, we recently announced several additions to our NFV offering that enables the optimization and scale of existing 4G and new 5G networks. As service providers deploy 5G and focus on the edge, they can begin monetizing “5G-like” services—kickstarting their 5G portfolios as they roll out other elements in the years to come.

Start with People 5G is not only a major new chapter in connectivity, it’s also a cultural change for organizations, and a skillset change toward the ongoing practice of operating your company as a virtual environment.

A lot of the network services that used to be a router or a switch will now be applications. You need

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people that understand the dynamics among all of those software components to deliver your services.

With automation, workers can get some relief from tasks like looking after capacity reports or monitoring the network for scale limitations or looking for malicious traffic. Instead, they’re managing to outcomes. Previously, an engineer had to plan, purchase hardware, deploy hardware, run cables, and launch projects taking weeks or months to change services or make a new service available. In an automated environment, those problems can be solved within minutes or avoided entirely.

Success will be much more likely if leadership has a clear vision of what the transition looks like and workers feel empowered and understand that vision.

Automate, Automate, Automate Automation may be the single most important technology element of the transition to 5G. For a period, service providers will need to manage concurrent bandwidth and connection requirements, and unfortunately many 4G networks are simply not built on platforms that can handle the required scale. This is where automation comes in: with virtualised and cloud-based technologies, existing networks will scale as necessary while easing and optimizing the migration to 5G services.

One challenge in running a highly distributed environment is getting the analytics and the performance data out of the infrastructure.

By moving to a virtualised, automated environment across clouds and networks, service providers can gain common visibility into applications in order to understand the end-user

experience and application performance.

And once 5G cores are deployed in a native virtual environment, automation tools will help streamline things like capacity augmentation, failover, high availability and service restoration, while offering greater service predictability across networks and systems.

Deliver New Services Service providers don’t need to wait for 5G to begin rolling out new services. With a nimble organization and a network optimised through automation, service providers can leverage incremental 5G technology upgrades to deliver differentiated services. Because they are built on a virtualised infrastructure, up-front costs can be kept low and risk can be minimised.

Take IoT. The demand for new IoT services is growing, and while service providers can monetise the data connectivity, with the ability to manage high volume and latency requirements, they can also create and support new services built across these thousands of additional endpoints. Service providers can offer new levels of security, different SLAs, and managed services that improve this entire ecosystem.

As with every major industry transformation, the key to preparing for 5G will be to embrace the change. For service providers, this is a pivotal year—one that represents an opportunity to get ahead by implementing really cool technology to solve real problems and create new solutions that have never been possible.

With careful focus and investing in the right areas, companies can reap value now while positioning themselves for the new world of high speed, low latency wireless.

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Ta l k i n g p o i n t

Next Generation of 3D Printing

Jaspreet Sidhu, Business Manager- 3D Printing-Enterprise Solutions, Jumbo 3D Manufacturing, talks to us about why they are entering the next phase of innovation with its new 3D Application Development Centre

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Jumbo 3D Manufacturing Jumbo 3D Manufacturing LLC is a subsidiary under Jumbo Group, a leading diversified business in the UAE. The company was founded in line with the Dubai 3D Printing Strategy and aims to boost the demand for 3D manufacturing in the region. Currently, we are working in partnership with HP to bring state-of-the-art 3D printing Multi Jet Fusion technology to the UAE. This is a breakthrough product with a number of features that enable faster speed of production at a lower cost. A 3D Application Development Centre was also inaugurated in 2018 at our facility in the Jebel Ali Industrial Area.

Innovation and Technology As part of Jumbo 3D Manufacturing’s objective to drive awareness of 3D manufacturing technology, we have partnered with Mohammed Bin Rashid Establishment for SME Development (Dubai SME).

The partnership will allow Dubai SME to benefit from Jumbo’s 3D technology and solutions and provide small and medium business enterprises in the Emirate with ongoing training and mentorship. Dubai SME members will also have access to our 3D printing facility to manufacture parts and apply 3D printing technology across target industry segments, including architecture, healthcare, education, automotive and other sectors. We will also serve as an incubator for SMEs to kick start their 3D printing business in the UAE through Jumbo.

Jumbo 3D Manufacturing will provide training to create awareness about 3D printing, and is tying up with some of the leading educators in the field to deliver these sessions.

We have partnered with the Dubai Institute of Design and Innovation (DIDI) to roll out a course for additive manufacturing design in the country. We are also working towards providing advanced 3D printing infrastructure for DIDI’s fabrication and project delivery needs.

We have also successfully developed 3D printing solutions for healthcare, oil & gas, and local manufacturing companies. These solutions are helping them manufacture products locally at reduced costs and with a faster turnaround time.

Over the coming months, we are conducting seminars, training and certification courses to develop relevant talent in 3D manufacturing and technology in the UAE. The training courses are available for both students and engineering and trade professionals who are interested in learning about 3D technology. These courses will be delivered by subject matter experts selected from top notch global institutions

Jaspreet Sidhu, Business Manager- 3D Printing-Enterprise Solutions, Jumbo 3D Manufacturing

Practical and hands-on-training sessions are also available at the Jumbo 3D Manufacturing Facility in Jebel Ali Industrial Zone. As part of our consultancy services, we will also help people identify potential opportunities that can be fulfilled through 3D printing and assist them in setting up the required systems and processes.

Largest 3D Application Development Centre in the Middle East Jumbo 3D Application Development Centre is a state-of-the-art 3D manufacturing facility housing a variety of 3D machines and technologies including post processing and finishing units. Situated in Jebel Ali Industrial Zone spanning 5,000 sq. feet, the facility aims to grow to 60,000 sq. feet. The 3D centre will provide a proof of concept lab for early adopters as well as the opportunity for entrepreneurs and organisations to expand their capacity without investing in any infrastructure.

It will also house a variety of 3D technologies, including post-processing and finishing units. It will be available for start-ups or businesses to experiment with and will enable the creation of a community of young entrepreneurs who are interested in new manufacturing technology, but are discouraged because of a high initial investment.

Our 3D Application Development Centre will not only serve as a proof of concept for early adopters but will also act as an initiative to develop a community of collaborating professionals involved in 3D Manufacturing in the UAE. The objective is to pool the knowl-

edge, design capability, skills and resources to create an echo system for faster adoption of 3D Printing Technology in the country.

The facility will pave the way for easy adoption of 3D printing technology for various entrepreneurs in UAE who are interested in launching business ventures with this technology but are limited due to the lack of technical know-how, or business planning support during the start-up phase. The facility also houses equipment for post processing, finishing and painting of finished products. In the coming months, we will expand our range of 3D printers to include the latest technologies for metal and concrete, to further enhance our leadership in 3D printing-based manufacturing in the region.

Sustainability Business sustainability is very essential to us and to the long-term prosperity of the entire subsidiaries under Jumbo Group. We ensure that we maximise opportunities by looking at different strategies that benefit not just the company but also the economy. By taking advantage of growing opportunity in 3D manufacturing, we have shown that we value sustainable strategies that align with the UAE’s core business values.

Jumbo Group has always been on the look out to embrace and harness new technologies to drive economic growth in the UAE. Since the company was founded, Jumbo 3D Manufacturing has mirrored this vision through investments in emerging technology as well as partnering with the world’s leading technology providers across various business verticals.

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Interview

Staying Ahead Kasun Illankoon spoke to Paula Bellamy, Managing Director at Ocean Wide Logistics Dubai, about the company’s plans for 2019, the role technology plays, and why they play a key role in the supply chain management

Tell us briefly about Ocean Wide Logistics Dubai?

Ocean Wide Logistics Dubai is an International freight forwarder offering airfreight / sea freight / road freight / customs clearance and warehousing solutions with 100% focus on customer care. We are also an International platform meaning we have offices and agents

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in over 140 different countries so we can offer a complete door to door solution for the movement of commercial goods.

Tell us what are your goals and objectives that you wish to achieve with Ocean Wide Logistics Dubai?

Our main goal continues to be creating a bet-

ter customer service for clients wishing to use a freight forwarder. This was the niche I found when I arrived in 2011 and continues to be what helps my company grow today. Clients want good feedback, to be listened to, for a forwarder to take accountability and to add value to their business flow by listening and designing logistics plans for their unique business needs.

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As companies move towards sustainability can you tell us how in your industry or company is moving towards sustainability?

The logistics industry has been aiming to be paperless for many years and to a point we are, however the UAE customs process is still designed around manual documentation which makes the paperless process slightly more difficult.

Tell us how important is technologies role in Ocean Wide Logistics Dubai?

Technology development is not something any of us can ignore, however it is only part of the toolkit you need to develop a business and certainly not the most important part of the kit.

Technology gives us online tracking, online quotations, immediate responses and seamless processes however behind this technology are people. At OL Dubai we never forget this, people need to input data so tracking / quotations and processes work, people build relationships with clients – technology cannot do this. Lastly when a problem happens its people that create the solutions to solve the problems, OL never forgets our business is people driven and our people are highly valued.

What is the crucial role OL plays in the supply chain management?

The most crucial part of OL’s role in supply chain management is relationship building, from the initial interaction and sharing of years of experience through to the daily interaction when your business needs to flow seamlessly. We recognise a client is very important when they are new, however a long term relationship is the ideal way for OL to support business growth and development with our clients to share our knowledge and new ideas with our clients for their business.

What was the biggest achievement in 2018 and what are the expectations of 2019?

Our biggest achievement in 2018 was regaining our contract into Iraq for the Oil & Gas Industry, this was due to our solid relationship with our clients and our good on the ground support staff in Iraq, it’s a very difficult area logistics wise but with structure and good prompt support we achieved another solid contract.

We were also very pleased to have finished 2018 ahead of our budget target which was a good achievement in such a difficult market,

clients were apprehensive back in 2018 and also very cost aware so we had to redesign our business to suit our client’s needs.

Tell us how important is it to form strong partnership with your business partners?

The key to any business is your partners, you need to have good relationships across your entire business network so you can rely on your partners to offer the same service as if you were doing it yourself. I treat my partners the same as my staff, with patience, support and reward.

What are the possible challenges you foresee and how does OL plan to overcome it?

The possible changes we can see is something that comes with the UAE as a whole – change.

The UAE is forever changing and each year differs from that of the year before therefore you have to learn to listen to the market and adapt accordingly, we have already done this many times changing our industry focus, concentrating on either warehousing / imports / exports / airfreight or sea freight, we need to listen to the client’s needs and adapt accordingly, a true freight forwarder can do this as we listen carefully and then react to the market.

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Boost for Logistics Entrepreneurs Investment in international connectivity and new digital technologies in the GCC are giving logistics entrepreneurs an added advantage

The GCC has emerged as a global logistics hub, thanks to its geostrategic location at the confluence of three continents, and a rapid embrace of state-of-the-art technologies, such as Bahrain’s pioneering adoption of 5G networking. Those qualities will stand it in good stead as the industry is buffeted by the technologies of the fourth industrial revolution. As crossplatform developments such as artificial intelligence, the Internet of Things and big data intersect with sectoral trends such as digital freight platforms and last-mile e-commerce, GCC nations’ robust infrastructure capabilities will allow companies in the sector to capitalize on new developments.

A range of indices demonstrate the region’s logistics readiness. Bahrain, for example, climbed 15 places to take the 22nd spot in the recently released 2018 DHL Global Connectedness Index, a measure tracking the flows of trade, capital, information and people across national borders.

Geographically, the Gulf has much to offer.

Its location at the crossroads between Asia, Af-

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rica and Europe has seen the region facilitate east-west trade down the centuries – from the days of the ancient Silk Road routes until today. Not only is the Arabian Peninsula well positioned on the world’s busiest maritime route, but the region boasts strong air links with markets in the six inhabited continents.

GCC nations have strengthened their logistics sectors with world-leading port facilities, warehousing and transportation capabilities as they seek to diversify away from hydrocarbon dependence. The Khalifa Bin Salman Port and its Bahrain Logistics Zone, where annual tonnage has increased 10.9% over the last decade, is already a principal provider of goods to Saudi Arabia and beyond. Bahrain International Airport has seen a complementary $1.1 billion expansion to four times its size, with new facilities slated to open later this year, including a $58.5 million cargo area.

Regionally, the GCC is already well linked, with a customs union and a common market; agreements with several Arab states extends that area of co-operation. New developments

will speed up logistics processes: the $250-billion GCC Railway, when completed in 2023, will integrate intra-regional trade to a significant extent and put the region on track to becoming the world’s sixth-largest single market before the decade is out.

Perhaps most important, the GCC already boasts a significant digital infrastructure that is still at the planning stage in other countries.

The regional company Aramex has already turned to artificial intelligence to optimise its routes.

Support at a national level is helping the change. When a 5G mobile network is launched in Bahrain, for the first time this summer, it will underpin the delivery of live information to connected systems that can track items from factory to consumer as never before. Coupled with a significant improvement in transit times and approvals – Bahrain Customs Affairs is modernising various eCustoms initiatives to improve procedures and increase pre-clearance capabilities – transporting goods becomes quicker than ever.

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AI LOGISTICS

Louay Dahmash, Territory Director, Middle East & Turkey, Autodesk, tells us about the importance of AI in Logistics and why embracing it should be the next step in this transformational era If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you have experienced what millions of Autodesk customers are doing with our software.

For more than 35 years, Autodesk software has helped designers, architects, engineers, visual artists, students and makers to create everything from buildings and bridges to cars and other physical products to movies and video games. Autodesk’s vision is to help people imagine, design and make a better world.

Creating a better world is our purpose because it is our opportunity to demonstrate responsibility and to contribute, to give back, in a way that is aligned with Autodesk’s business and our values. As a company, we encourage the empowerment of people and that is why we have unleashed creativity on an immense scale by putting cutting-edge technologies in the hands of millions of people to share their innovative ideas and turn them into reality.

AI assisting logistics companies Artificial intelligence (AI) is playing an increasingly central role in this transformational era of human history. Technological progress in the fields of big data, algorithmic development, cloud computing, processing power and connectivity have played a big role in making AI more accessible and cost-efficient. It is becoming an integral part of every industry including logistics.

Worldwide supply chains are currently undergoing a fundamental transformation as more AI is deployed to handle the movement of goods both domestically and globally. We believe the most revolutionary feature AI will be able to offer the logistics industry, will be AI-generated predictive analytics including consumer demand. If we look for example at retail companies and popular today “same day delivery”, the only way to provide this service on a constant

basis is through the use of AI and Machine Learning. Such companies need to predict consumer behavior and act on this knowledge - in other words, these companies need to predict purchases before they are even made.

There are many inevitable ways that AI is going to boost business in the region. The future of AI in manufacturing and construction is only now finding its niche as technology matures and costs drop. Streamlining business processes, reducing labour costs, producing safer work environments and predicting supply-chain outcomes much more efficiently are all ways the region’s business can be expected to thrive.

One relatable advantage would be the reduction of waste. For example, according to the 2016 Wohler’s Report, 70% of spare parts we make today are never used or needed in the first place, while 30% of global waste derives from the construction sector alone. Imagine reducing just a fraction of these inefficiencies through the use of AI powered technologies?

According to a recent report published by PwC on AI growth in the Middle East, AI could contribute US $320bn to the Middle East economy by 2030, which is equivalent to 11% of the region’s GDP and the largest gains are likely to be seen in the UAE, 13.6% GDP in 2030.

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D i g i ta l

Challenges of AI As every technology faces roadblocks while maturing, AI is still overcoming its fair share of challenges including availability of talent and change of mind set.

Since AI is an emerging field, naturally there is not a large pool of talent available. An international report released by Garner, has shown that the use of AI in all sectors of the global economy has steeply increased. However, there is significant lack of skilled staff to implement the further development of such technologies.

This is why at Autodesk we are trying to help bridge the gap between lack of skilled labour and implementation of these new technologies through initiatives such as AI Camp, an initiative of The UAE National AI Program.

The other looming issue is in regards to

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adaptability and change of mind set. Like with any new technology and change in general, it takes time to be implemented and accepted. One misconception people seem to have is about the future of the job market being comprised solely of robots and AI powered machines. Although some jobs are expected to be replaced by robots, the technology will free those people to perform higher-level of creative tasks that only human ingenuity can accomplish. With such strong initiatives and visions such as Dubai 3D Printing Strategy, the Dubai Plan 2021 and Abu Dhabi Economic Vision 2030, it won’t be long before the UAE is paving a new path in AI and people will have different conceptions about working with AI instead of competing with it.

UAE AI Camp Over the summer last year, during firstever UAE AI Summer Camp we met with an array of young students who were eager to learn about AI. This year we are excited to partner again with The Office of the UAE Minister of AI and further encourage students to push the boundaries of design and innovation.

During the spring sessions of this year’s AI Camp, UAE students learnt how latest technologies like AI and Machine Learning are being used to transform today’s world and deliver exceptional projects in the region and outside.

Through these initiatives, we are focused on empowering the next generation to lead the technology revolution and help to propel UAE into the future.

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Ev e n t r e v i e w

Automechanika Dubai 2019 Automechanika Dubai 2019, the 17th edition of the Middle East and Africa’s (MEA) largest automotive aftermarket trade fair had over 1,880 exhibitors from 63 countries Automechanika Dubai 2019, the 17th edition of the Middle East and Africa’s (MEA) largest automotive aftermarket trade fair, was opened

by His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum.

With 1,880 exhibitors from 63 countries spanning 63,300sqm at the Dubai International Convention and Exhibition Centre, the annual three-day event features 23 country pavilions and 34 international trade associations, while more than half of the 32,000-plus trade visitors are expected to come from outside of the UAE. The biggest names in the global automotive aftermarket will look to make big inroads in a MEA spare parts market and auto services industry that’s estimated to grow by six per cent annually over the next six years.

“Automechanika Dubai over the years has transformed into a trade event of truly global scale, thanks to its continued track record of innovation, targeting and fine tuning its offerings in line with the particular market requirements,” said Mahmut Gazi Bilikozen, Automechanika Dubai’s Show Director.

“We’re confident that demand for the automotive service industry and aftermarket products will remain robust, with growth largely fuelled by demand from existing vehicle parc and the expected improvement of car sales moving forward.

“With that said, the aftermarket is changing, and with that change comes new opportunities. Our vision for Automechanika Dubai is to be at the forefront of these new opportunities, presenting a unique platform for all industry stakeholders to start discussions, plan ahead, and to ultimately lay the foundations for longterm sustainable success.”

Automechanika Dubai 2019 covers the six major product sections of Parts & Components

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and Electronics & Systems (1,181 exhibitors); Accessories & Customizing (246 exhibitors); Tyres & Batteries (226 exhibitors); Repair & Maintenance (155 exhibitors); and Car Wash, Care & Reconditioning (72 exhibitors).

It opens as the MEA’s auto aftermarket, valued at US$61 billion in 2018, and is estimated to continue its upward trajectory, valuing US$87.3 billion in 2024, according to analysts TechSci Research.

Organiser Messe Frankfurt Middle East also added new sub-sections that underline the show’s evolution, namely Agricultural Parts & Equipment; Body & Paint; Motorcycle Competence; and Oils & Lubricants.

Exhibitors are keen to use Automechanika Dubai’s impressive regional scope to reach

out to far-flung markets. Emerald Spare Parts, based in the UAE and distributors of auto parts, batteries and lubricants for Japanese and Korean cars, is looking to reach new markets.

Rajesh Daga, Assistant General Manager of Emerald Spare Parts said: “The majority our business comes from the Middle East and Africa, where we’ve been traditionally very strong. Demand in these markets have been growing at a fast clip, and we’ve also evolved keeping in mind the intricacies of working in these markets.

Robert Schwarz, COO, Al Masaood Group, said: “Following the success of the past two years, we are back at Automechanika to answer to the growing demand for aftersales automobile market in the country and the region.

Automechanika Dubai is the perfect platform to showcase the latest innovative technologies from our partners that will answer to the growing demand of automotive workshop equipment. Our decades of experience in the UAE’s automotive sales and after-sales market, has allowed us to meet the consistently increasing demand we have witnessed in this segment recently.”

Balkrishna Industries (BKT) is a manufacturer and exporter of Off Highway Tyres, and one of the headline returning exhibitors to Automechanika Dubai in 2019.

The Indian-headquartered BKT is one of the world’s fastest growing companies in the OHT segment, with a 5th manufacturing facility planned in Tennessee, USA. “This will be the first BKT manufacturing facility outside India, and will be helpful in increasing our presence in the American continent,” said Rajiv Poddar, Joint Managing Director of BKT. “BKT growth will be mainly coming from the All Steel OTR (Off-The-Road) radials as this the fastest growing segment for BKT. Owing to the sustained market demand, BKT will also grow in Construction and Industrial tire segments with its vast product range.

“At Automechanika Dubai 2019, BKT is launching its first “On & Off road” Tipper tire 12.00R24 in SR423 pattern. In addition, some important sizes in Multi-Purpose Truck segment are being showcased. BKT is also expanding its range in Solid tire segment where 4.00 – 8 ECO Rib pattern has been introduced for Ground Support Equipment and 7.00 – 12 Maglift ECO pattern as a high performance tire for Forklift and Material Handling,” added Poddar.

Elsewhere, Polish manufacturer Troton is a headline exhibitor in the new Body & Paint section, and is launching its Brayt line of polishing compounds and the Rangers bed liner.

“The weather in this region can be harsh on the car, what with the intense heat and dusty conditions,” said Karol Duda, Director of Business Development at Troton.

A key returning highlight to Automechanika Dubai 2019 this week is the Innovation Zone, a dedicated area at the centre of the show floor featuring presentations and product showcases from exhibitors such as Wabco and FSE that are steering the course for the regional and global automotive aftermarket.

Other features include the Truck Competence initiative, where 1,260 exhibitors are showcasing their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care.

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Ev e n t r e v i e w

DI TALKS SERIES Dubai Industrial City hosted their second DI Talks on the emerging tech that is shaping the future of UAE’s industrial sector

Organisations that adopt smart solutions in their manufacturing and logistics processes achieve measurable benefits and efficiency in their operations, concluded industry decision makers and logistics professionals at the second edition of DI Talks, a series of expert-led

discussions hosted by Dubai Industrial City, one of the largest industrial hubs in Dubai and a part of TECOM Group.

Held under the theme ‘Manufacturing and Logistics’, the gathering drew the participation of leading industry experts and decision makers

From Left to Right - Nirman Shetty, Stuart Fleming, Amr Ali, Satiya, Raman Kumar, Saud Abu Al-Shawareb

From Left to Right - Raman Kumar, Satiya, Nirman Shetty

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in the UAE who shared case studies that adopted and implemented emerging technologies for effective supply chain management. Through the initiative, Dubai Industrial City aims to provide a platform for professionals in the industry to connect and exchange knowledge and expertise on key trends. This is also in line with the objectives of the Dubai Industrial Strategy 2030, of which Dubai Industrial City has been a main partner in its development and implementation since its launch in 2016.

In his welcome speech, Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City, said: “As we continue to develop an advanced industrial sector in the UAE and proudly support the ‘Made in UAE’ culture, it is imperative that we focus on collaboration, innovation and sustainability. This knowledge sharing platform allows our community of over 730 business partners to learn from one another.”

He added: “As the dedicated manufacturing and logistics hub in Dubai, and as a partner in the Dubai Industrial Strategy 2030, our vision is aligned with that of the wise UAE leadership. We aim to elevate Dubai’s position as the leading innovative and sustainable logistics and manufacturing hub in the region.”

Exploring various aspects of manufacturing and logistics in the era of the Fourth Industrial Revolution, the agenda featured two sessions moderated by Kasun Illankoon, Editor of Logistics News ME. Panellists in the first discussion, titled ‘Market Insight: The Rapid Transformation and Growth of the Logistics Sector’ included Nirman Shetty, Chief Operating Officer of NMC Trading, and Raman Kumar, Managing Director of Al-Futtaim Logistics.

Nirman Shetty said: “Despite the prevailing market perception that customer needs have undergone radical change over the past years, I believe what has truly changed are the expectations of customers about the speed of response and implementation of their requirements against the background of the rapid development of technology that created efficiency in operations.”

He added: “We consider modern technology integral to shaping the features of the new

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era of logistics. In terms of our work, we have noticed the importance of digital transformation and the use of technology in facilitating coordination among production units in large enterprises in order to control processes and reduce levels of human error. It also helps to leverage data to better anticipate market demand across different regions.”

For his part, Raman Kumar said: “Over the last 20 years, the logistics sector has witnessed a great leap, especially in the face of global economic developments, such as China’s Belt and Road initiative, the incorporation of technology in all aspects of work and the rapid evolution of customer needs, which require comprehensive studies and analysis to develop products that meet them. With the arrival of e-commerce, the need for modern, sophisticated and flexible logistics services have emerged. In light of these changes, we believe that the sector offers opportunities to develop and adopt innovation.”

Kumar noted that the automation of operations and the introduction of other technologies into manufacturing and logistics are significantly enhancing productivity and efficiency.

However, he finds it necessary to first examine the needs of customers in each sector and provide them with logistics services tailored to the nature of their work and the needs of their target audiences.

He also pointed out that opportunities to develop the manufacturing and logistics fields are present at the local level, especially in view of the government’s support driving the contribution of the sectors to the non-oil GDP. The second panel discussion focused on ‘The Smart Industry: The Road to the Intelligent and Automated Factories and Warehouses of the Future’ was also moderated by Illankoon who was joined by Stuart Fleming, CEO of EnviroServe UAE, Amr Ali, Managing Partner of Al Shafar Steel Engineering (ASSENT), and Dubai Industrial City’s Managing Director Saud Abu Al-Shawareb.

The panellists agreed that adopting emerging technology not only justifies a bigger initial investment, but it is key for the survival of a business. In this context, Amr Ali stressed the impact of early technology adoption, especially manufacturing automation, on the long-term cost-efficiency and the ability to compete and thrive.

Stuart Fleming pointed out that the feasibility of automation and the adoption of emerging technologies in the manufacturing and logistics processes can no longer be disputed.

The global trend today focuses on accelerating the production cycle using various technological means, and those who fail to catch up are judged by their organisation’s long-term loss.

From Left to Right - Stuart Fleming, Amr Ali, Saud Al Shawareb

In closing, he noted that in addition to significant environmental benefits, sustainable operations help enhance productivity and increase profits on the long-term.

Dubai Industrial City launched DI Talks during its participation in Gulfood 2019 as a platform for its business partners and industry leaders to share their knowledge and expertise and discuss the latest trends with the aim of enhancing the knowledge base with a specific focus on F&B manufacturing and food security.

Dubai Industrial City provides state-of-the-art infrastructure and facilities for manufacturers and traders as well as integrated services and solutions that support business expansion and development at the local and regional levels. With more than 730 business partners and over 270 factories, the community is home to prominent industry players, such as Unilever, Patchi, BASF, Al Shirawi Group, LuLu Group International, Barakat, Almarai Group, Al-Futtaim Logistics, EnviroServe UAE and NMC Trading.

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DP World Acquires Topaz Energy

DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Chartered Private Equity/Affirma Capital for an enterprise value of $1,079 million.

Topaz is a leading international critical logistics and solutions provider to the global energy industry. The company operates a modern, versatile fleet of 117 vessels, predominantly in the Caspian Sea, MENA, and West Africa regions. The group enjoys a particularly strong position in its core Caspian Sea market.

The Caspian Sea is the largest 46 | Logistics News ME | July 2019

inland body of water in the world, and one of the most strategic oil basins. Long-term contracts and high barriers to entry characterise the basin, which holds approximately 6 per cent of global oil reserves.

Topaz’s enduring focus on securing long term strategic contracts has allowed it to outperform the market, and the Company’s market-leading contract backlog of $1.6 billion as of 31 March 2019, far exceeds industry benchmarks, demonstrating the success of the Company’s strategic approach. For DP World, the transaction supports our objective of increasing the company’s presence in the

global logistics and marine services industry.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce the acquisition of Topaz, which further strengthens DP World’s position as a worldleading operator in maritime logistics services. In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships.

This latest acquisition complements the operations of our P&O Maritime Services (POMS) business, which

maintains over 300 vessels globally. Much like DP World, Topaz has evolved its business, offering customers a range of logistics solutions and helping the Company outperform the industry. We believe that this innovative approach, together with the increased scale, will allow the combined Topaz and P&O Maritime Services business to drive efficiencies and earnings growth. This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers. We look forward to welcoming the Topaz team into the DP World family.” www.cbnme.com

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Mohamed Alabbar speaks at noon.com’s first seller event in Riyadh

noon.com, the home-grown digital marketplace, held an event to celebrate its sellers in Riyadh, KSA, recently.

The e-commerce platform is helping transform the businesses of small and medium local companies, enabling sellers in Saudi to deliver across the Kingdom, giving them the tools they need to reach new online audiences. noon.com’s first seller event was an interactive session attended by Saudi businesses, including Saudi SME entrepreneurs, and featured a keynote and panel discussion led by Mohamed Alabbar, the founder of noon.

Addressing the audience, Mr. Alabbar said noon.com was created to offer a local platform for Saudi businesses to tap into the online marketplace, which is now the fastest-growing and has tremendous potential for growth.

“More Saudis are investing in their own businesses – and creating inspiring success stories. A founding objective of noon has been to catalyse the growth of National businesses by offering a platform that provides them easy access to the larger marketplace.

“Trading is in our blood.

Our forefathers were traders.

E-commerce will also be in our blood. noon.com is a gift to the people of the region, a way of reclaiming our rich trading history for now and tomorrow.”

The event provided an overview of what noon does for small and medium businesses and distributors, including mentoring and training in addition to offering a locally built platform to take their enterprises to the next level of growth.

Several Saudi sellers presented their journey on noon.com, showing how Saudi businesses can effortlessly join the noon.com ecosystem and thrive online. noon.com is a home brand and proud to stem from the Kingdom to serve customers.

The e-commerce platform was created with a simple vision – the serve, inspire and empower the region.

With a view to becoming the region’s digital flagbearer, noon.com is creating an ecosystem that will give Saudi sellers a place to learn, grow and achieve – a homegrown company they can be proud of.

MaK announces ecofriendly and fuel efficient maritime propulsion system

MaK Middle East LLC, established in Dubai in 2017 as the factory direct parts and service arm of parent Caterpillar Motoren has announced the next level of MaK branded eco-friendly and fuel efficient maritime propulsion system with its industry-leading LNG engines. Relying on Caterpillar’s many years of experience with gas as a fuel for land based power, MaK dual-fuel marine engines have successfully penetrated the maritime market, driving the industry’s adoption of gas technology.

Alan Naisby, Managing Director of MaK Middle East and MaK Asia said, “After much deliberation by shipping companies, LNG is now regarded as a bridge technology.

Caterpillar’s known history of research and development with dual-fuel technology has allowed us to transfer much of our know-how to marine engines. Together with the IMO’s mandate for reduction in global emission limit on the seas, these have been the key drivers in the success of our LNG-fueled MaK engines.”

While Caterpillar Marine’s product offering of green MaK solutions has effectively allowed the company to improve emissions and its clients’ fuel consumption, system design technology has also played a major role in this area. Its hybrid propulsion system, comprising of MTA 628 azimuth thrusters and full electrical integration, mode selection and automation, allows vessels to operate mechanically, electrically or as a combination of both. This has served as a solution to make zero-emissions operation possible in tug and offshore applications.

Naisby commented saying, “When it comes to clean, efficient, environmentally friendly operation, the cruise industry is leading the way. MaK Middle East and parent Caterpillar Motoren are proud to play a role in making more sustainable shipping a reality.”

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Unsung Heroes

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Uros Trojanovic

Uros Trojanovic General Manager Strategy & Planning, Eltizam Asset Management Group, about his role and how he is helping contribute to Eltizam’s success Goals and Objectives Over the next 12 to 18 months, we plan to achieve greater top-of-mind awareness for Eltizam brands in the UAE across our B2B target segments. We are also confident that we will be able to firmly establish the Eltizam brand portfolio in new territories within the MENA region.

Positioning Eltizam as the Market Leaders The Strategy and Planning function has a number of distinct divisions one of which is Marketing, which is why our marketing team is required to take the lead in planning and execution of all marketing-based activities. With six companies operating under the group, four B2B businesses and two B2C businesses, each group requires different marketing strategies which the Marketing department develops to serve different business needs and target audiences.

Over the past 12 months, the company has undertaken strategic reviews to establish five-year growth plans for each business line, which has allowed us to take a more holistic approach in marketing-looking at current and future business lines as well as geographic expansion. This development has also led to a significant increase in the investment going into marketing, growing our annual marketing budget by by 35 per cent Year-on-Year (YoY) in 2019.

Attributes As the General Manager of Strategy and Planning at Eltizam Asset Management Group, I implement the strategic planning process for the company; oversee technology, innovation, marketing and program management; and handle strategic projects such as business case development, business performances reviews and improvement initiatives.

Importance of Teamwork Teamwork is essential to achieving the over-

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all goals and vision of the organization, and the hard work, ideas, and efforts of each team member collectively bring change to the company. Eltizam would not be in the

position it is today without teamwork. Marketing involves interacting with lots of people and the need for effective teamwork is critical for any business.

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

International Conference on Smart & Green Technology for Shipping and Maritime Industries

July

11-12

July

14-17

Glasgow, UK International Conference on Smart & Green Technology for Shipping and Maritime Industries, with higher fuel costs and raising environmental concerns globally, there has been an increased incentive to move towards marine technology that is more eco-friendly in nature. The term Green Technology is applied to procedures, designs, and systems that help contribute to an eco-friendly fashion. Green Technology is nothing new and has existed for years but often disregarded for various reasons.

International Symposium on Logistics WĂźrzburg, Germany The International Symposium on Logistics is themed as Supply Chain Networks vs Platforms: Innovations, Challenges and Opportunities and it aims to provide a forum for discussion between leading academics, researchers and practitioners who specialize in the area of logistics and supply chain management and to promote excellence in this field.

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July

22

Warehouse Tech Middle East Dubai, U.A.E Warehouse Tech Middle East brings together the leading logistics, technology solution providers, warehousing leaders and startups all under one roof and for one day program to discuss and learn about advancements in warehouse technologies including, but not limited to Drones, Digital Warehousing, Industry 4.0 effect, Internet of Things, AI & Robotics, Automation, Cloud Computing in WMS and Data Analytics. WTME is one of a kind event that translates the vision of warehousing in the Middle East with Industry 4.0 into action. Join us & network with your peers and see the latest technologies & solutions that make warehousing smart & digital Public-private partnerships Airport Summit

July

22-23

San Diego, USA Public-private partnerships Airport Summit will focus on project management, planning, procurement, and networking for airport owners, operators, airlines, and other industry professionals. Our event is dedicated to P3 education, industry networking, and business development. It is designed to help the attendees to explore alternative delivery methods, plan and procure successful P3 initiatives, discover industry best practices in selecting and negotiating with partners, and steps to take to ensure project success. www.cbnme.com

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