Interview
Technology
Talking point
Shirish Deshpande, CEO of Gallega Global Logistics
Continental to present numerous innovations at IAA Frankfurt
LogiPoint on innovating to become a leading a player in the region
Connecting trade professionals with industry intelligence
August 2019
New Tech for Cargo Solutions
Logistics News ME finds out how Air Cargo Companies in the region are adapting to new technology to offer the right solutions for their customers
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C o nt e nts
Contents
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August 2019
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Start 10 | News
Features 22 | COVER 28 | DIGITAL 30 | AWARDS PREVIEW 32 | E-COMMERCE 34 | TALKING POINT 36 | TECHNOLOGY 38 | INTERVIEW 40 | SUSTAINABILITY
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Regional News
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A u g u s t 2019
Ed i to r ’ s L e tt 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
Senior Sales Manager Vishvanath Shetty
The Dubai Silk Road strategy is set to spike demand for warehousing and industrial space in the city as the prevalence of e-commerce and thirdparty logistics (3PL) providers in the city should drive demand through the second half of the year. Dubai has a long history of goods transit, but the Emirates has gone through a physical transformation as local economies become consumers rather than just being a point through which goods are transported. As such, the local market is already changing the demands of the supply chain and logistics processes. At the recent Warehouse Summit MENA, National Association of Freight & Logistics President, Nadia Abdul Aziz noted that the UAE market was currently the third strongest logistics market in the world and the regional leader.
Also it is suggested that warehouse/industrial space is cheaper for potential occupants, as rental values for Grade A properties fell between 4% - 6% on half-yearly comparison, with Grade B property rent drops between 8% - 10% To maintain its robust global position, the government’s visionary Dubai Silk Road strategy, will play a strong role in spiking demand for warehousing and industrial space in the city, especially among Chinese investors. The Dubai Silk Road strategy focuses on enhancing trade between free zones, the Emirates, and connecting logistics services including between DP World locations across the world. Kasun Illankoon Editor, Logistics News Middle East
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All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP
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Regional News
Regional News A n u p d a t e f r o m ar o u n d t h e r e g i o n Investment
Dubai Industrial City Continues to Attract Chinese Investments by Opening the Region’s First Fresh Rice Noodle Factory Dubai Industrial City, one of the largest industrial hubs in the region and a member of TECOM Group, has partnered with Baofeng Grain Mills LLC, part of the Chinese Baofeng Grain & Oil Group, to open the region’s first fresh rice noodle factory. China is one of the UAE’s top trade partners, along with India, USA, and Saudi Arabia. Dubai Industrial City is home to a growing number of Chinese manufacturing and industrial companies, including Lesso Middle East General Trading LLC, China State Construction Engineering Corporation Middle East (CSCME), and CSC Asphalt Manufacturing. The new manufacturing facility is set to commence operations shortly in a readyto-use light industrial unit and will have the capacity to produce 250,000 kg of fresh rice noodles daily. Baofeng Grain Mills LLC will serve the UAE and the wider GCC region, with plans to expand distribution of its ‘Made in UAE’ food products from Dubai Industrial City to Africa and Europe. According to a new analysis by Dubai Chamber of Commerce and Industry, the demand within the UAE’s food and beverage (F&B) sector is expected to gain momentum over the next three years. In
anticipation of this growth, Dubai Industrial City’s versatile offerings attract food manufacturers of various sizes, including those seeking to set up scalable and sustainable operations in readyto-use light industrial units that comply with international standards. Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City, said: “China is an important trade partner of the UAE, and Chinese investment in the country is on the rise. We are proud to welcome our new business partner Baofeng
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Grain Mills LLC, reinforcing our commitment to developing Dubai’s industrial sector, particularly the manufacturing of fast-moving consumer goods (FMCG) that includes food production and is among the target subsectors of the Dubai Industrial Strategy 2030.” Through its contribution to the development of an advanced, sustainable industrial sector in the emirate, Dubai Industrial City aims to promote local production and the ‘Made in UAE’ label. Manufacturers seeking to enter or expand in the region can benefit from
the hub’s smart infrastructure, integrated solutions, strategic location, and ease of doing business. Dubai Industrial City’s latest warehouse development comprises 11 million sq ft of ready-to-use light industrial units, ranging in area from 5,000 to 11,500 sq ft, that can be used for general or specialized cold storage as well as manufacturing. Located near Al Maktoum International Airport in Dubai South, Dubai Industrial City offers a wide range of integrated solutions, including warehouses and showrooms, industrial land, open yards, www.cbnme.com
A u g u st 2 019 Transportation
Continental Introduces New Radial Tyre Portfolio for Port Applicationst Continental launched its new radial port tyre portfolio at the 2019 TOC Europe in Rotterdam, which took place recently in The Netherlands. The new line-up has been developed to meet the exacting demands of vehicles utilised in terminal operations. With this newly expanded port portfolio specifically designed for load and carry applications, Continental has become a full solutions provider for port operations, offering a complete port product range that includes V.ply tyres, radial tyres and digital solutions. Day in and day out, containers are transported many kilometres from one location to another on the extensive grounds of international ports. For these demanding ‘load & carry’ applications, radial tyres are the perfect solution, particularly in the tough Middle Eastern climate. The tyres offer low heat generation and a flat tread contour, ensuring a high level
of endurance and mileage over long distances. With the launch of three new radial tyres for port applications – the ContiRT20, the ContainerMaster Radial and the StraddleMaster Radial – Continental begins a new chapter in its port history. The tyres are perfectly suited to various vehicle types utilised in load and carry applications, including heavy forklift trucks, empty container
handlers, reach stackers, straddle carriers and terminal tractors, amongst others. Continental’s V.ply tyres with Port Plus Compound, which are the perfect solution for typical pick and stack applications, were also on display at the trade fair. Although mobile crane type vehicles such as reach stackers, empty container handlers and rubber-tired gantry cranes (RTG) need
to drive short distances at low speed when loading and unloading containers, they still have a high load requirement and a high degree of turning on the spot. The V.ply construction offers good stability and wear; the strong sidewalls and the highly abrasive and crackresistant compound make them the perfect solution for the daily challenges faced in the region’s climate With the expansion of the port portfolio, Continental is able to offer the most suitable tyres for different required vehicle/application combinations. Whether a vehicle is designated to perform ‘pick & stack’ or ‘load & carry’ applications, or even both tasks, customers can rely on the extensive experience of Continental. Additionally, Continental also showcased its digital tyre pressure monitoring systems for individual vehicles and ContiConnect for fleets, which enhance safety and efficiency in terminal operations.
Arab-Brazilian Chamber of Commerce revealed sustained robust trade relations as Brazil’s total exports to the Arab countries jumped 15.1 per cent during the first half of 2019
FedEx Express announced that 3,200 members of the team across the MEA & South Asia region, have volunteered over 11,000 hours as part of its ‘FedEx Cares’ campaign
Quick news
DarkMatter Group announced the appointment of two global leaders to bolster the organisation’s journey in providing smart and safe digital solutions to its clients
DAE Reports 1H 2019 Highlights Delivers and Commits to US$1.1bn in aircraft assets and its 1H 2019 key strategic and operational highlights for its leasing division, DAE Capital
Logistics News ME | August 2019 | 11
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Regional News
Aviation
Strata Launches ‘Strata Plus’ to Expand Facility for Boeing 787 Dreamliner Assembly
Strata Manufacturing, the advanced composite aero structures manufacturing company wholly-owned by Mubadala Investment Company PJSC, is to expand its current manufacturing facilities to on board the assembly of the Boeing 787 Dreamliner vertical fins. The modifications to Strata’s existing facility at Nibras Al Ain Aerospace Park follow an agreement signed by the two aircraft manufacturers at Farnborough Airshow 2016. Under the agreement, Strata will replicate the capabilities of the Boeing Salt Lake City 787 vertical fin assembly line to sub-assemble vertical fins for the Dreamliner family of airplanes
from its Al Ain facility. “As a home-grown manufacturing company and an active player in the global aerospace industry, Strata’s continued evolution is built on our enduring commitment to provide competitive offering and high quality components for our international partners. Strata plus is an important milestone for the company to position it for the next phase of growth, as the technologybased expansion will be dedicated for the assembly of the B787 vertical fin assembly line.” said Ismail Ali Abdulla, CEO of Strata. “Our relationship with Boeing on the 787 project further solidifies Strata’s position as a direct supplier
14 | Logistics News ME | August 2019
of primary aero structure components to Boeing Commercial Airplanes programmes.” Assembly is scheduled to commence in 2020. The assembled part will be shipped to North Charleston, South Carolina, and installed on 787 fuselages. “The expansion of their facilities is a significant commitment and investment by U.A.E. and Strata to advance their aerospace manufacturing capabilities and support their longterm economic vision,” said Bernard Dunn, President, Boeing Middle East, North Africa and Turkey. “For eight years, Boeing and strata have worked closely to expand the global supply of aerospace
composites and meet Boeing requirements for quality and affordability.” As part of Strata’s preparations, the company is sending key UAE-based engineers leading the Al Ain manufacturing process to the USA for robust training programme at Boeing. The training, which will ensure efficiency in the vertical fin production line, will empower Strata engineers with a deep understanding of technical responsibilities in adherence with the strict requirements of the product. A key part of the training will centre on the entire production system, including electrical system testing, and hydraulic and avionics systems. www.cbnme.com
A u g u s t 2019
Most Popular Methods of Public Transport in UAE Revealed
The Dubai Metro remains a firm favourite for UAE residents, accumulating the majority of online searches for public transport this year, according to a report from SEMrush, an award winning online digital marketing suite. A three-year study into online English search volume trends for UAE public transport options found that ‘metro’, ‘bus’ and ‘taxi’ were the top three most searched terms between June 2016 and June 2019. With the metro claiming the lion’s share of UAE-based searches at 41.4 per cent, bus searches accounted for 27.6 per cent, with taxi third at 22.4 per cent. The remaining two modes of transport – tram and water taxi – rounded off the list with less than 10 per cent of searches between them (7.7 per cent and 1.1 per cent, respectively. Despite the large search volumes, total searches between 2016 and 2019 for metro declined by 13.1 per cent, followed by bus at 11.5 per cent, the two largest declines in this period. Water taxi searches also declined by four per cent, while searches for tram and taxi increased during the same period, representing growths of 19.1 per cent and 11.2 per cent respectively. The UAE has one of the most diverse ranges of public transportation in the GCC, withAbu Dhabi and Dubai both home to large fleets of taxis, buses and water taxis. Plans to introduce the first phase of a new four-line metro in Abu Dhabi and expand the existing popular metro service in Dubai, which carried 204 million riders in 2018, remain on-track.
Logistics
Bahrain and UK first in the world to pilot new AI procurement guidelines
Bahrain has announced it will pilot new guidelines for the procurement of Artificial Intelligence in the public sector, produced by the World Economic Forum (WEF) Centre for the Fourth Industrial Revolution. The announcement was made by WEF and the Bahrain Economic Development Board (EDB) – the public agency tasked with attracting investment to the Kingdom – at the WEF Annual Meeting of the New Champions in Dalian, China. AI has huge potential to streamline and transform service delivery for governments. However, due to lack of understanding and
concerns over complexity, public institutions are often wary of adopting AI and lack the knowledge needed to successfully implement the technology. This spurred the Centre to announce in 2017 that it would bring governments, businesses, start-ups and civil society together to co-design guidelines to empower governments to responsibly and sustainably deploy AI technology. It partnered with the UK government to help design the guidelines and assess them in real-world conditions. Bahrain will join the UK in piloting the framework and providing feedback.
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Regional News
Trucks
Barari Natural Resources Upgrades Fleet with New Renault Trucks Deal
Barari Natural Resources, the leading forest management company in the United Arab Emirates, has taken delivery of three new Renault Trucks K to add to its existing fleet. Barari Natural Resources plays a crucial role in conserving and managing forests and wildlife in the UAE, using state-of-the-art technology to support in promoting the historical, physiological and cultural value of the natural environment. Having purchased its first Renault Trucks – the K440 T6x4 – in 2017, Barari Natural Resources has now upgraded
to the latest models, one K460 T6x4 and two K440 P6x6 trucks. Among the reasons that these robust models were chosen was the fact that they boast a high ground clearance with an approach angle of 32 degrees, perfect for their work in forest management. The K Heavy Construction Range are equipped with the latest features and technology. Fitted with 13L engines, they offer a capacity of 120 tons and have automated transmission along with All Wheel Drive (AWD) capabilities that deliver full power to all the wheels, making them ideal for heavy duty use and strengthening
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the models’ abilities to tackle off-roading in the UAE’s tough terrains. Commenting on the new deal, Ghassan Fares, Head of Procurement at Barari Natural Resources, said: “We have been extremely impressed not only with the performance of our first K440 T6x4 truck, but also with the great aftersales service of Al Masaood and the company’s excellent long-term warranty. These factors made Renault Trucks the natural choice when we decided to expand our fleet of trucks.” The new trucks return low fuel consumption figures,
making them some of the most environmentally friendly options in the market, in keeping with Barari Natural Resources’ brand values. “We were also impressed with the new trucks’ fuel efficiency, which made them even more attractive as we are continually looking for ways to reduce our carbon footprint,” Fares added. Commercial Director of Renault Trucks Middle East, Guillaume Zimmermann, said: “We are proud to continue to support Barai Natural Resources and their admirable efforts to protect and enhance the environment.” www.cbnme.com
A u g u s t 2019
Quote Having had success with emerging markets such as China, Russia and Brazil, and a presence in India for 15 years, it’s exciting to triple our investment in India.”
Shipping
Dubai ranks fifth in ‘International Shipping Centre Development Index’
David Evans, Joint CEO of Collinson
Top 5 online
1
Mohamed Alabbar speaks at noon.com’s first seller event in Riyadh
2
Barari Natural Resources Upgrades Fleet with New Renault Trucks Deal
3
Emerson Completes Acquisition of Zedi’s Software and Automation Businesses
4
Uber and du join forces to reduce stress and increase productivity in urban mobility drive
5
Dubai Industrial City Continues to Attract Chinese Investments by Opening the Region’s First Fresh Rice Noodle Factory
The latest report by Baltic Exchange for trading and shipping and the Xinhua news agency of the China Economic Information Service based in London has ranked Dubai fifth in the International Shipping Centre Development Index (ISCDI) for the second consecutive year. The latest recognition adds immense value to the emirate’s pioneering track record on the global maritime map. Sultan Ahmed bin Sulayem, Chairman of Dubai Ports, Customs and Free Zone and Chairman, Dubai Maritime City Authority (DMCA) expressed his pride in Dubai’s position among the top five in the International Shipping Centre Development Index (ISCDI) for the second consecutive year. He pointed out that this latest recognition is the result of pioneering efforts led by the Dubai Maritime City Authority in cooperation with leading government and private sector entities, in order to enhance the competitiveness and attractiveness of the local
maritime sector and to make it one of the areas that contribute to economic diversification. Dubai’s ranking as the world’s fifth best maritime hub reflects its highly competitive capabilities, which include state-of-theart infrastructure, worldclass maritime and logistics capabilities, a competitive business environment, and investment and free zones that offer integrated services the best in the world. Bin Sulayem said: “Maintaining the fifth position among the leading international maritime centers motivates us to continue our efforts to further enhance Dubai’s competitiveness in the global maritime landscape. We are exploring ways to enhance the confidence of regional and international investors in the local maritime sector, especially shipping, ports, engineering, training and maritime support services, based on strong foundations of R & D, innovation and smart transformation.” Logistics News ME | August 2019 | 17
Regional News
Technology
UPS Forms Subsidiary and Applies for FAA Certification to Operate Drone Delivery Unit
UPS announced that it has applied to the U.S. Federal Aviation Administration (FAA) for Part 135 certification to operate commercial drone flights in the UPS® network under a subsidiary business called UPS Flight Forward, Inc. The new subsidiary is a recently incorporated business that could receive Part 135 certification as early as this year, putting UPS on track to have one of the
first fully-certified, revenuegenerating drone operations in the United States. “UPS is committed to using technology to transform the way we do business,” said Scott Price, UPS chief transformation and strategy officer. “UPS’s formation of a drone delivery company and application to begin regular operations under this level of certification is historic for UPS and for the drone and logistics industries.”
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When approved, this certification lays the foundation for drone flights beyond an operator’s visual line of sight, and for flights occurring day or night. Such flights are highly restricted in the United States and approved only by exception. “Innovation is at the heart of what we do at UPS,” added Rami Suleiman, UPS President for the Indian Subcontinent, Middle East and Africa (ISMEA). “We are
constantly exploring new ways in which to use cutting-edge technologies such as drones and autonomous vehicles, as well as alternative fuels, to move goods in a fast, safe and sustainable manner. We have first-hand experience of how drones can make critical medical deliveries in hard to reach places. It is inspiring to see how technology and supply chain expertise can be used to help people from all around the world.” www.cbnme.com
A u g u s t 2019
Revenue
Abu Dhabi DoT and the Integrated Transport Centre Launch Toll Gate System The Department of Transport – Abu Dhabi (DoT) and the Integrated Transport Centre (ITC) announced the launch of its forthcoming toll gate system in line with the Surface Transport Master Plan (STMP) for the Emirate of Abu Dhabi four toll gates on major bridges leading into the city of Abu Dhabi will be active from 15 October 2019, in a move set
to reduce traffic congestion and raise the efficiency of the transport sector. At a press conference held at DoT’s headquarters, with the attendance of DoT and ITC management and media representatives, Department of Transport officials emphasized that the launch of the toll gate system is one step in a number of strategic
projects which are aimed at achieving a fully integrated and sustainable uplift for the sector in line with the Abu Dhabi plan for the integration of surface transport network and services in Abu Dhabi. The toll gate system is being introduced in accordance with Law No. (17) of 2017 on Road Tolls in the Emirate of Abu Dhabi.
All road users should open a special toll account and through this account they will be able to manage their own vehicles and process payments due through a simple, userfriendly online system. All Abu Dhabi registered vehicles on the official system registration launch, 30 August 2019, will have automatically registered accounts at no charge. Logistics News ME | August 2019 | 19
Regional News
A u g u st 2 019
Automotive
Uber and du join forces
To highlight its vision for the future of urban mobility and to underscore its commitment to a sustainable future, Uber recently partnered with telecom service provider du, from Emirates Integrated Telecommunications Company (EITC), to demonstrate how consumers can reduce their stress and increase productivity by exploring alternative modes of transport.
As part of the initiative, the technology company challenged a number of du employees to swap their personal cars and instead use Uber for a month. Survey results offer an insightful peek into the benefits this change can bring to people’s daily routines. Unsurprisingly, over 66% of respondents said their regular daily commute to
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work was quite stressful – parking and traffic topping the list of woes. After ditching personal vehicles, stress levels plummeted to a more optimistic 11.8%. “The urban mobility initiative by Uber clearly showcases the benefits of moving away from car ownership. It is paramount that we seek alternative modes of transport as we move towards
Dubai’s Vision 2021. Uber was the perfect partner for this campaign because not only did this solution provide affordable transport that contributes to reducing our carbon footprint, it also enhances employee well-being with the reduced stress of finding a parking spot – it’s a win-win,” commented Amr Eldesouky, Executive Vice President – Consumer Services, du. www.cbnme.com
C o v e r S to ry
New Tech for Cargo Solutions
Logistics News ME finds out how Air Cargo Companies in the region are adapting to new technology to offer the right solutions for their customers The air cargo industry is at the nexus of supply and demand. Combined with its role in the services industry, the air cargo industry is heavily influ-
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enced by the latest technologies and market forces. As a result, making business plans one month, let alone one year, in advance is a tall order. We find
out how some of the major air cargo companies in the region have adapted to this new technology to handle the new demand in the market.
www.cbnme.com
A u g u st 2 019
Emirates SkyCargo
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 origin or destination points for pharma, we
Mr Hiran Perera, Senior Vice President, Emirates Cargo Planning & Freighters
have worked closely with our ground handling partners and other stakeholders to ensure uniformly high quality for handling pharmaceutical cargo.” 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 capabili-
ties 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 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.
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C o v e r S to ry
Etihad Cargo IATA’s CEIV Certification For Pharmaceuticals Logistics Etihad Cargo has set a notable benchmark in the region by becoming the Middle East’s first carrier to be awarded IATA’s Centre of Excellence for Independent Validators (CEIV) certification in Pharmaceutical Logistics. The airline is one of only 16 carriers to hold this important certification worldwide. The certifications cover both the airline operations of Etihad Cargo, as well as cargo handling and warehousing at its hub in Abu Dhabi International Airport, underlining Etihad’s excellence in maintaining product integrity and managing high-value, temperature-sensitive shipments for the pharmaceuticals and life sciences industries. Etihad’s cargo handling subsidiary Etihad Airport Services LLC has also been awarded the CEIV Pharma certification. Combined with Etihad’s global air cargo network spanning the Americas, Europe, Africa, Asia and Australasia, through its modern fleet of passenger aircraft as well as its dedicated fleet of Boeing 777 freighter aircraft, this dual certification reaffirms Etihad’s ability to offer customers a seamless end-to-end temperaturecontrolled solution and reinforces Abu Dhabi’s positioning as a key global logistics centre. Etihad has undergone a major enhancement program to its facilities, systems and processes to meet the stringent standards that CEIV Pharma demands, which combines IATA’s Temperature Control Regulations, GDP best practices, and other international benchmarks. To further reinforce its commitment to this segment, Etihad also commenced a major expansion and refurbishment program to its cargo terminal at Abu Dhabi International Airport in the fourth quarter of 2018, which aims to add additional temperature-controlled space to its existing pharma zone by 2020, in addition to a dedicated staging facility at its Midfield complex in time for the airline’s move to the new state-of-the-art terminal. Digital Transformation Hails New Era of Cargo Management and Customer Engagement Etihad Cargo celebrates its position as a market leader in the air cargo digitalisation and innovation space six months after migrating to a new technology platform, achieving a remarkable step change in the way it runs its opera-
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Etihad Cargo - Managing Director -Abdulla Shadid
tions and engages with its customers. Etihad has managed a major distribution channel shift and proudly accepted 14.4% of its total bookings online since the October 2018 “go-live” milestone. Additionally, March 2019 has recorded the most successful performance yet with 16.7% of monthly bookings coming through the online portal, surpassing all records for similar portal launches for any other cargo carrier within the same period. Etihad Cargo now has over 6,000 unique registered users making online bookings every month, and the numbers are continuing to trend upwards (18.2% of the bookings were made online during the last week of March). Building on this initial digital investment, round
the clock work within Etihad Cargo continues with the carrier successfully completing trials for another major distribution channel, using automated Freight Forwarder Messaging (FFR) to instantly allow bookings to be made and confirmed. These pilots were undertaken with DHL Express and DB Schenker and completed successfully in March 2019, and are in the process of being progressively rolled out across their global operations as well as to other key forwarder customers. Rory Fidler, Head of Technology and Innovation, Etihad Cargo, said: “Etihad has made great strides in implementing the first phase of its digital ambitions over the past 18 months. We placed investments in digital transformation and innovation at the core of our new strategy, underpinning a renewed customerdriven culture within the organization. The fruits of that investment and hard work are transforming the way we interact and do business with our customers, and are opening up a multitude of future opportunities.” In addition to the real-time insights afforded by the IBS iCargo platform, the ongoing implementation of market-leading Customer Relationship Management software Salesforce, and use of Enterprise Business Intelligence will provide unprecedented visibility and insight into customer and market trends and developments once fully implemented later this year, allowing the business to remain agile and relevant to customers around the world.
www.cbnme.com
A u g u st 2 019
DHL Express
medium and small sized businesses. DHL Express was the first express provider to set-up a presence in the UAE in1976, so we have an extensive history in Dubai. Over the last 47 years we have seen great growth becoming the market leaders in the UAE with more than 50 per cent market share of the time definite international express market. The UAE is major a hub between Europe, Asia and Africa so having a strong presence here is important from a global perspective, and we will continue to strengthen and grow our operations here in the future.
Geoff Walsh, UAE Country Manager
Technology helping productivity and efficiency Technology has played a game-changing role in driving efficiency and productivity for a number of sectors, including the cargo industry. As mentioned before, the availability of high-tech warehouses for logistics companies has led to an increase in the capacity of shipments managed every hour.
Implementation of digitalization and automation services such as automated conveyor system, dual-view x-ray screening of parcels, image-capture technology and an automatic bar-code parcel sorting system and many other facilities has also enabled faster and efficient delivery of large shipments. DHL Express is supporting the logistics market with cutting-edge solutions for large,
Market Growth We witnessed double digit growth in 2018 in the MENA region, and we are expecting strong numbers in 2019 as well, alongside growth in e-commerce. According to the latest research, the e-commerce market in the MENA region is estimated to reach $28.5 billion by 2022, creating significant opportunities for us to expand our operations. Increase in cross border e-commerce has created strong growth opportunities for DHL Express in the region. For the rapidly growing e-commerce market, we have introduced a variety of innovative services which are being developed to meet the needs of e-commerce businesses as well as the end customers.
Logistics News ME | August 2019 | 25
C o v e r S to ry
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Turkish Cargo
Maintains Its Steady Growth. According to WACD data, Turkish Cargo increased its tonnage rate by 7.1 percent and grew substantially across the industry which shrank by 5.1 percent in the global air cargo market. Maintaining its steady growth as proven by the data disclosed right after its relocation to the Mega Hub Istanbul Airport, the accomplished air cargo brand increased its market share to 4.0 percent from 3.9 percent across the industry which shrank by 4.0 percent in the global air cargo market, and maintained its position at the 7th rank in the air cargo market. Based on the regional data obtained by WACD in May, Turkish Cargo achieved the most remarkable growth across the Asian and American market. The flag-carrier cargo brand attained a growth rate of 34.4 percent across the American Continent, 19.3 percent across the Far East Region, and 12.2 percent across the Middle East/South Asia Region as based on the sold tonnage. The accomplished
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air cargo brand achieved good results at all regions it provides air cargo service. DoKaSch Temperature Solutions Turkish Cargo has signed a Master Rental Agreement with DoKaSch Temperature Solutions, the provider of climate-controlled solutions for air cargo based in Frankfurt, Germany. Its Opticooler is regarded as one of the safest containers for transporting temperaturesensitive products such as vaccines and other pharmaceuticals by air. “As one of the leading airlines of the world, we provide our cargo clients with the best quality services to transport high-value pharma products. So the Opticooler is one of the natural choices and the Master Rental Agreement confirms that we have all the necessary procedures in place.” Said Fatih CIGAL, the Turkish Cargo’s Senior Vice President, Marketing, remarked. Starting in February 2019, DoKaSch will supply its Opticooler for Turkish Cargo, the largest carrier in the world by number of pas-
senger destinations and a member of the Star Alliance network. “Turkish Airlines serves more destinations than any other airline. This means that our Opticoolers are now available to many more clients that need reliable temperature-controlled air freight,” said Andreas Seitz, Managing Director of DoKaSch Temperature Solutions. The Opticooler, electric air-conditioned container, can keep pharmaceuticals exactly within their temperature range, regardless of a tropical summer or arctic winter. The Opticooler has a very high fail-safety and is considered to be reliable product for pharmaceutical transportation. Just like in a normal warehouse, a constant temperature can be maintained if the Opticooler is occasionally connected to the power grid. With the move of Turkish Cargo to the Istanbul Airport in 2019, Turkish Cargo’s clients will benefit from spacious and state-of-the-art cargo facilities and will provide a safe hub for transportation of temperature-sensitive pharmaceuticals all over the world.
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D i g i ta l
Industry 4.0
Alain Kaddoum, General Manager of Swisslog Middle East, tells us how Industry 4.0 is shaping the future of sustainable business operations
Industry 4.0 is the intelligence behind the maximum efficiency of tomorrow’s world. But how does collecting data today help businesses stay sustainable while predicting what will happen tomorrow? The Middle East and Africa market for augmented and virtual reality is expected to grow to $6 billion by 2020, according to the International Data Corporation. As the digital trend continues to innovate, it will transform the future of sustainable business. Industry 4.0 has revolutionised the way a modern warehouse or distribution centre operates too, and it is only a matter of time before other sectors start to recognise the advantages. Energy efficient automation solutions While Industry 4.0 concepts and automation have offered endless sustainability benefits to operations around the globe, some are concerned with the increased energy demands required. Reports show that refrigerated warehousing is the most energy intensive. Energy is one of the largest expenses for the sector, second only to labour costs. Goods-to-person solutions can recuperate energy from the braking and lifting of carrier vehicles, and this, combined with sustainable energy sharing technologies, can see energy use reduced by up to 20%. Efficient shuttle and robotics systems have been engineered to reduce carrier weight and optimise weight/payload ratios for lessened energy requirements. Since these systems provide dense storage capacity, they are ideal for minimising refrigeration energy costs, when compared to manual small quantity picking in traditional refrigerated warehouses. The modularity of Swisslog’s PowerStore pallet shuttle system enables storage of up to 60% more pallets compared to manual systems. It can also be individually tailored for all shapes and sizes of warehouse buildings. Smart energy management Another interesting system at play in auto-
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mated distribution centres uses Industry 4.0 concepts in integrated energy management controls. Once power consumption values have been established for each automated system, subsystem and I/O, integrated energy management controls link the energy performance of these automated warehouse material handling systems – like Automatic Storage and Retrieval System (ASRS) cranes, conveying systems, lifts and shuttle systems – to these systems’ actual real-time energy needs. Basically, all these systems are connected via Ethernet or the Internet of Things. They communicate and share a power budget. Their controllers are looking ahead the next five seconds, and they can tell each other what amount of energy each system, subsystem and axis is pro-
ducing or using. The controllers can then improve sustainability by coordinating and optimising the distribution (sharing) of harvested power from one system, subsystem or axis to another. They also coordinate the delay and start functions of associated systems to again optimise the use of harvested energy, as well as minimise peaks in power draw caused by simultaneous machine starts. High-bay robotic pallet shuttles When compared to energy use of ASRS cranes, factoring in energy recuperation and energy sharing, high-bay robotic pallet shuttle systems consume 70% less energy – making them highly energy-efficient systems for highbay pallet storage and retrieval.
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Energy consumption rates are a top-level consideration in high-bay warehouses. ASRS cranes have been the longstanding workhorse for high-throughput automated pallet movement in these facilities, as well as the biggest users of power. Robotic pallet shuttle systems employ sustainable low-footprint pallet lifts, instead of aisles, and enable pallet locations to store 20 pallets deep. Consequently, these systems provide the industry’s most dense automated pallet storage, which delivers improved cold retention in highbay cold-storage facilities. They present an alternative option for high-bay distribution that greatly reduces energy requirements. An example of reduced energy consumption in the warehouse scenario is the Swisslog
Vectura crane which offers up to 20% lower energy consumption compared to traditional cranes, thanks to innovative mast design and lighter crane weight. The future of sustainable warehouse robotics These energy-efficient developments being integrated into material handling systems enable a truly optimised capability for maintaining high-throughput production coupled with smart energy management. Aside from the use of future-ready technologies, there are also techniques which can be implemented in existing automated facilities in the Middle East to increase sustainability and energy efficiency. For instance, reducing con-
veyor speeds during low-throughput periods results in significant energy savings. Another factor is weight reduction. Reducing the weight loads of solutions, while maintaining systems’ structural integrity and load-carrying ratings, can go a long way to contribute to minimising energy consumption. Some manufacturers have cut their automated guided vehicle weight by 30% without any reduction in load-carrying capability. There is no question that a combination of these factors coupled with Industry 4.0 energy-saving concepts will be a winner for any Middle East distribution operation aiming to reduce their energy consumption. As for other business sectors, we foresee a world of opportunities.
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Ev e nt p r e v i e w
A u g u st 2 019
Logistics & Transport Awards 2019 Nominations for the Logistics & Transport Award 2019 are now open. Logistics & Transport Awards will see limelight in 2019, aimed at recognising past triumphs and acknowledging the future strategies of logistics and supply chain companies from around the region. The awards will cater to individuals and companies from a variety of sectors— from transportation, cargo, and warehouses, to e-commerce, supply chain, and technology. Companies are welcome to nominate people, projects, and facilities across 17 categories; the entries will be judged by a carefully selected panel of industry experts The awards presentation will happen at a gala dinner in a five-star venue – both a celebration and an essential networking opportunity. Winners will receive a commemorative trophy, plus extensive print and online coverage of their success in Logistics News ME. Nominate yourselves now, to stand a chance to win at the most-promising industry awards event of 2019. The awards will take place on October 16, 2019 at the Fairmont the Palm Hotel. To find out more about the awards and how to nominate you can visit: http://www.cbnme.com/ logistics-transport-awards-2019/
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Award Categories • EXPRESS LOGISTICS PROVIDER OF THE YEAR • WAREHOUSE FACILITY/FIRM OF THE YEAR • FMCG LOGISTICS PROVIDER OF THE YEAR • MOST INNOVATIVE TECHNOLOGY FOR LOGISTICS • FREIGHT FORWARDING COMPANY OF THE YEAR • TRADE FACILITATOR/FREE ZONE OF THE YEAR • INNOVATION IN TRANSPORT • LOGISTICS STARTUP OF THE YEAR • COLD CHAIN SERVICE PROVIDER • PORT SAFETY INITIATIVES • ETHICAL SUPPLY CHAIN INITIATIVE • SUPPLY CHAIN MANAGER OF THE YEAR • WOMAN PROFESSIONAL IN TRANSPORT & LOGISTICS • LIFETIME ACHIEVEMENT IN THE LOGISTICS & TRANSPORT SECTOR • Integrated Logistics Company of the Year Award • Innovation in Logistics Award • Automotive Logistics Company of the Year Award • Terminal Handling Company of the Year Award
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Int e r v i e w
E-Commerce Impact
Kasun Illankoon spoke with Borhene Ben Mena, CEO, Shipa Delivery, about the impact made by the E-Commerce industry. Tell us how big an impact E-Commerce has had on your company. E-commerce enterprises are very important to Shipa Delivery. When they do well, we do well and vice versa, and naturally, all we want is the best for our customers. E-commerce allows merchants of all sizes to set up shop seamlessly and without many barriers. We’ve built our platform to mirror that effortless process for the set-up of their logistics operations. Cyclicality can be a challenge in e-commerce, so we have to be able to integrate into our clients’ businesses, help them to forecast demand, and scale our service resources accordingly. 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. Tell us how the GCC or Middle East market has reacted to recent e-commerce trends. The e-commerce industry is developing rapidly in the GCC. It is fast becoming a primary focus for retailers, and a compelling sector for investors and entrepreneurs to break into. 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.
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An increasing number of ecommerce 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 their core business competencies. Tell us about the recent technological developments that have allowed e-commerce to grow and gain efficiency? Technology, of course, is vital for last-mile delivery operators and is already redefining the competitive landscape. As it advances, it will help us decrease the cost per delivery, and that, in turn, will stimulate e-commerce growth and create more demand from customers. In terms of specifics though, autonomous vehicles will be one of the main drivers of cost reduction in last-mile logistics. 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 fulfillment and delivery cycles. For instance, our Warehousing on Wheels is already improving our daily operations. It’s impressive how much time technology can help us to save. However, it’s not only about speed and time savings. To succeed in e-commerce, enterprises must invest in technologies that improve accuracy and availability. They need agile distribution networks to keep up with
ever-changing consumer demand trends, and distributed order management solutions to ensure full visibility into inventory, and to support dynamic fulfillment.
ery success, which is a primary element of our strategy. A study paper recently revealed that successful first-time home deliveries by bikes generate substantially less CO2 per kilometer.
In terms of sustainability, how has E-Commerce helped to ensure that companies like yours become more sustainable and environmentally friendly? Well, in some respects, e-commerce has been responsible for the emergence of companies like Shipa Delivery. 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 traveled. Aggregation also helps to eliminate the duplication of assets that exists when companies each have their own fleets. Reducing the number of kilometers 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. We try to walk the walk when it comes to sustainability, for example, by using bikes whenever practical. Then there is the impact of first-time deliv-
What future challenges do you see in logistics-for-E-Commerce, and what are the plans to overcome them? As e-commerce continues to increase convenience for consumers, the rate of product returns and replacements will remain high, and perhaps get higher. Reverse logistics is always a tough challenge, and it increases the costs of fulfillment. Supply chains typically have a weak link somewhere, as it is a multi-stakeholder process. However, weak links are expensive in e-commerce logistics, so everyone along the chain must be able to collaborate, cooperate, integrate, and implement best-in-class technology. Cross border shipments continue to be a challenge in the face of changing regulations and recent global trading tensions. Enterprises will need to place inventory and resources closer and closer to customers in order to meet performance expectations. This requirement might drive the need for networks involving larger numbers of small “metro hubs.” It might be challenging for companies to achieve such networks without shouldering increased levels of logistics expenditure. At that point, the need for automation and autonomous delivery resources will possibly become acute, to prevent costs from spiraling upward.
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Ta l k i n g p o i nt
One Step Further
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Farooq Shaikh, CEO of LogiPoint, tells us about the company’s operation, enhancing and developing cross-border commerce, and innovating to become a leading a player in the region
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LogiPoint and its operations Previously known as TUSDEER, LogiPoint was developed as the new identity to reflect the ambitious growth strategy that the company has adopted for the next decade, transforming from a pioneering bonded and re-export zone (BRZ) into a leading network of integrated logistics parks across KSA, and contributing to the Kingdom’s ambitious Vision 2030 program. In realizing its transformation to the new identity, LogiPoint is committed to expanding its current investment base by developing both green-field and brown-field integrated logistics facilities across Saudi Arabia, attracting international investors into the Kingdom, serving customers in all sectors through sea, air and land-based integrated logistics offerings, achieving internationally competitive service levels in Saudi Arabia, improving the reliability and efficiency of the Kingdom’s trade and supply chain and ultimately enabling Saudi Arabia to become a key hub in the global logistics value chain. LogiPoint are enhancing and developing cross-border commerce Opening of Bonded Corridor between Batha (Saudi – UAE Border) and LogiPoint Bonded and Re-Export Zone has been a resounding success. This process has helped reduce the holdup at the border by offering an alternative option to truckers and importers to clear their cargo. We have also launched the first bonded reefer container village in Saudi Arabia at Jeddah Port.
This has helped importers and exporters minimize their costs on electricity and reduce their carbon footprint since LogiPoint is investing in sustainable energy sources. Enhancing the global supply chain management Introducing (Cross Border Gulf) which helps clients reduce lead-time and minimize uncertainties due to limited carrier choice for their shipments from Europe to the Upper Gulf. Given the high volumes involved, airfreight is not a cost-effective, and the journey is not long to warrant sea-air as an alternative. We were able to piece together a multimodal solution that helped make this landbridge an operational reality. The aim is to establish a bonded corridor between the Red Sea ports in the West and the Arabian Gulf in the East – transforming East-West trade corridors both ways. The transit time by sea from major European ports to Jeddah 12-16 days with a Trucking time from Jeddah to GCC – a mere 2-3 days, We managed to reduce the lead-time by almost 10 days and at the same time increasing carrier choice for clients since most carriers offer direct sailing from all major ports to Jeddah Islamic Port. Project Performance We are confident about the way forward combining strategically located logistics zones and our logistics support services, to lead the drive for efficient logistics solutions in the industry. We do this through building capacities and enhancing capabilities by offering transactional, tactical and
strategic benefits to all our customers. We are at the forefront of investing in technology and we remain open in trying out new technology and systems that could help in increasing our utilisation, throughput and automating our day-to-day activities to optimize our resources. LogiPoint and Innovation To cope up with the turbulent economic times and to reduce the burden on our customers, we have designed integrated logistics solutions with support of our group companies, Red Sea Gateway Terminal (RSGT) and Support Services Company (ISNAD), in Jeddah Islamic Port to help our customers in cutting down their operating costs and optimize their operations. This has not only to help in cost reduction but also help streamline communication and provide more transparency in the process, which increased the customer satisfaction level. Furthermore, to support our customers to improve their profitability, LogiPoint has started incentive programs to its customers in the form of operational cost reductions and volume-based incentives. LogiPoint aims to facilitate trade and commerce, to create opportunities, to support initiatives, and to bring synergies, all to lubricate the engines of economic growth. LogiPoint Bonded and Re-Export Zone offers flexible customized solutions to match the unique demands of every industry vertical. We do not acquire customers for our services, we strive to tailor our services to our current and future customers to meet their requirements.
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T e c h n o lo gy
The Future in Motion
In the run-up to the IAA in September 2019 in Frankfurt, technology company Continental will be presenting numerous innovations that reflect the three major trends of the industry summit, all under the tagline of “Mobility is the Heartbeat of Life.”
Continental glasses free 3D effect-Lightfield display allows 3D depth perception
In the past year alone, the company has invested more than €3 billion in research and development for the next generation of mobility. A significant proportion of this amount will go toward technologies for new in-vehicle functions.
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“With our investments in research and development, we are significantly shaping the greatest upheaval in the automotive industry since its birth and are doing so from a leading position,” continues Degenhart, adding, “Our alternative drive systems and Continental
technologies for automated and autonomous driving, as well as for the connected car, are the key ingredients for a healthy mobility ecosystem. Our aim is to develop new technologies that are both environmentally efficient and socially accepted. In this way, we intend to
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In the development phase: language assistants with natural speech in the car One result of Continental research is intuitively designed operating systems. Simple communication between the driver and the vehicle with the aid of an intelligent voiceactivated digital companion and three-dimensional displays increases the acceptance of new vehicle technologies. Continental is working on an adaptive voice-activated digital companion that reacts to natural speech and is precisely adapted to vehicle conditions. This makes operation easier and drivers do not have to take their eyes off the road. This increases attention to traffic, reduces the risk of accidents, and also lets the driver relax. Another trend-setting concept is connected windows in the car. These can be specifically darkened, for example to avoid glare caused by a low sun. Furthermore, they reduce the energy required for cooling the vehicle interior and simply enhance occupant privacy.
TechSHow 2019 Continental 48 Volt HighPower Technology
Dr. Elmar Degenhart, Manager and Chairman, Continental Tires
protect not only the ecological climate, but the economic and social ones as well.” Impressive technology: first fully integrated electric axle drive goes into production Millions of vehicles are already on the move today with Continental technology. This year will still see major innovations relating to Continental’s automotive trend topics going into production for the first time. The technology company has been able to convince vehicle manufacturers in China and Europe of the performance of Continental’s electric axle drive. The module weighs less than 80 kilograms and includes an electric motor, transmission, power electronics, and motor control. Thanks to the integration, numerous cable connections and plugs can be dispensed with. The fully integrated axle drive thus reduces the weight of electric vehicles by around 20 kilograms. Further production successes with autonomous driving and 5G connectivity Another production launch this year is a milestone in the development toward autonomous
driving. The autonomous EZ10 shuttle bus from the French company EasyMile is the first to use a Continental radar system that has been specially developed for driverless vehicles and is ready for production. A total of seven radar sensors, each with a range of up to 200 meters, continuously monitor the vehicle environment. With this data, the system adapts its driving strategy, avoids obstructions and therefore prevents dangerous traffic situations on the route ahead at an early stage. Since such autonomous shuttle buses will be mainly used in an urban environment in future, this system protects pedestrians and cyclists in particular. Furthermore, development of Continental’s first worldwide 5G solution for a vehicle manufacturer is already underway. On this new platform, Continental’s connectivity experts are combining the features of fifthgeneration cellular communications with technologies for short-distance radio for direct data exchange between different vehicles and the infrastructure. The vehicles talk to each other faster than ever before, with fewer interruptions. They can warn one other, for example, of accidents behind a bend or traffic jams ahead.
Smart intersections in the smart city: everyone arrives safely In pilot cities in North America and Asia, Continental is currently exploring the possibilities presented by greater connectivity between all road users. In this project, ordinary traffic intersections have been transformed into highly intelligent test fields equipped with smart sensor technology. Traffic lights and streetlights equipped with sensors exchange data with vehicles in the vicinity to protect pedestrians and cyclists in particular. This technology can, for instance, warn a driver of concealed pedestrians or other more vulnerable road users when turning left. Traffic data from street lamps can ultimately reduce emissions: signal changes at traffic lights can be controlled in such a way as to optimize traffic flow and reduce stationary time at intersections. Performance, efficiency, driving enjoyment: tailored electric drives for every need In the run-up to the IAA, Continental is demonstrating its outstanding systems expertise in the field of electric drives by showcasing more exciting innovations. In addition to the fully integrated high-voltage axle drive for large-scale production, the company has developed a new technology for hybrid vehicles. The 48-volt high-power drive system with 30 kilowatts of output means it is now possible to drive even long distances purely with electric power for the first time.
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Int e r v i e w
CUSTOMISED TO SUCCEED
Kasun Illankoon spoke to Shirish Deshpande, CEO of Gallega Global Logistics, who explains how their logistics and supply chain expertise help businesses to reduce cost, improve agility and gain an edge in competitive market.
Tell us briefly about Gallega Global Logistics? Gallega Global Logistics is an integrated logistics partner that draws on years of experience in delivering seamless and cost-efficient supply chains solutions. We specialize in automotive and other logistics solutions with extensive infrastructure, expertise and global relationships. Gallega is part of a well-established business group, a conglomerate founded in 1994. We have been serving the Group’s operating companies with integrated logistics solutions and supply chain engineering for over a decade. During this time, our teams have forged a portfolio of results, experience, and insight into supply chain management that sets us apart in the market. Today, Gallega is proud to bring its expertise and resources to external partners. Our logistics and supply chain expertise help businesses reduce cost, improve agility and gain an edge in a competitive market. Our facilities in KIZAD (Abu Dhabi) and JAFZA (Dubai) free zones (including custom bonded storage) deliver excellent capabilities to manage complex 3PL services. We strive for Gallega Global Logistics to become a logistics provider unparalleled in its expertise, knowledge, and ability; and to become the region’s 3PL partner of choice that helps businesses unlock success. We work towards generating competitive advantage and business benefits for our clients through world-class logistics and supply chain management expertise. Tell us how Gallega performed in 2018 and what are the expectations for 2019? In 2018, Gallega focused on developing its capabilities in term of establishing its ware-
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housing & distribution facilities, ERP system, products, agent network and relationship with shipping lines and stakeholders. On this strong foundation, Gallega positioned itself as a 3PL company specialized in offering End to End to Logistics & warehousing services for clients from different emirates in UAE and also for the GCC countries.
Tell us about the automotive supply-chain services that you provide and how is this a game changer in your industry? Gallega’s key focus is on automotive clients, to manage their logistics activities in-house and offer them cost-efficient logistics solutions supported by technology to meet supply chain
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portant role for us to innovate and reinvent. We have a formidable team to lead the IT and digital transformation. Several digital innovations are already underway. All these initiatives shall enable us to collaborate well, serve our customers better and improve on our competition significantly. We reiterate this well through our IT vision Use world-class technology to delight customers through superior experiences; leverage technical innovations to increase our productivity and scale to new horizons as a company. We have invested in a Third-Party ERP system and technology with Integration capabilities with other systems for automating the Logistics Operations. This state-of-the-art system is the interface for an end to end transactions for all our working functions. Thus, providing smooth and efficient services to our customers.
challenges. It already has significant facilities in KIZAD (Abu Dhabi) and JAFZA (Dubai) free zones, and it recently completed construction of Automotive Logistics Park covering 325,000 sqm in KIZAD. The park will offer services on finished vehicle logistics, general warehousing, automobile workshop, customs clearance, and transportation. The project aims to provide a compelling value proposition for regional distributors, dealers, and global OEMs. It also positions KIZAD free zone as a strategic hub for the automotive industry in the region. Gallega Global Logistics opens automotive Abu Dhabi facility in KIZAD: Tell us more about this and how has KIZAD been a useful partner to Gallega? We have opened an automotive facility in KIZAD which sits on a sizeable plot of 3.25 million square feet, it is designed to be a one-stop shop vehicle logistics solutions to our clients by
the implementation of the best practices followed by Global Automotive OEMs. KIZAD is rapidly expanding as more and more companies see the value of having the presence here especially in the field of Logistics, manufacturing and trading enterprises. Gallega is working closely with KIZAD to seamlessly integrate their services with ours to make sure that the customers experience efficiency. Our partnership with KIZAD has helped to attract more businesses due to its strategic location. Tell us how automation or how new technology is helping your company and the logistics industry? ‘’Innovation and Excellence ‘’ is the crux of our operations, we, as a company, have constantly strived for improvement & Perfection. This has helped us bring out the best in us as we adapt to the changing business environment to meet the growing market needs and demands. Information Technology has played an im-
Tell us what are the potential challenges you will be facing and how do you plan to overcome it? Our company believes in constantly innovating and reinventing the way we operate. With the continued growth of the Industrial and Logistics sector and increasing competition both regionally and globally we will continue focusing on our existing businesses. We will also leverage our diversified network and products to further strengthen our leadership in the Logistics business. We plan to expand to other Geographical markets in Oman, KSA, and Australia & Africa. We will further scale-up our contract logistics business with a special focus on temperature-controlled Food warehousing and ecommerce. We will continue to maintain our leadership position in Automotive Logistics. Tell us why your partners or clients trust Gallega Global Logistics? • Our management team at Gallega Global Logistics has decades of demonstrable expertise in product knowledge, procurement, quality control, distribution, shipping, documentation, logistics, and other value-added services. • We implement global best practices to OEM standards within all their business operations – the processes are well stabilized with the highest values of integrity imbibed across the organization. • We deploy the best in class technology and systems which are critical engines to run the business operations. The division has agile systems that meet and exceed the technology requirements, both internal and client facing.
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S u sta i n a b i l i ty
Electric-Vehicle Batteries
Bosch’s cloud-based swarm intelligence helps electric-vehicle batteries maintain performance for longer
According to experts, the average service life of today’s lithium-ion batteries is 8-10 years or between 500 and 1,000 charge cycles. Battery makers usually guarantee mileage of between 100,000 and 160,000 kilometers. But rapid battery charging, high numbers of charge cycles, an overly sporty driving style, and extremely high or low ambient temperatures are all sources of stress for batteries, which makes them age faster. Bosch’s cloud-based services are designed to
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recognize – and counter – these stress triggers. All battery-relevant data – e.g. current ambient temperature and charging habits – is first transmitted in real time to the cloud, where machine-learning algorithms evaluate the data. With these services, Bosch is not only offering a window into the battery’s current status at all times, but enabling a reliable forecast of a battery’s remaining service life and performance to be made for the first time.
Smart software functions in the cloud continually analyze the battery status and take appropriate action to prevent or slow down cell aging. These measures can reduce the wear and tear on the battery, the most expensive component of an electric vehicle, by as much as 20 percent. Real-time data gathered from the vehicle and its surroundings plays a key role here. The cloud services utilize this data to optimize every single recharging process and to provide drivers with
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tailored driving tips on how to conserve battery power via the dash display. A key feature of the smart software functions is their use of the swarm principle: the algorithms used for analysis evaluate data gathered from an entire fleet, not just from individual vehicles. Swarm intelligence is the key to identifying more of the stress factors for vehicle batteries, and to identifying them more quickly. The new insights gained into a battery’s current status enable Bosch to also actively protect it against aging. Fully-charged batteries for example age more quickly at particularly high or low ambient temperatures. Bosch’s cloud services thus ensure that batteries are not charged to 100 percent when conditions are too hot or too cold. By reducing the battery charge by only a few percentage points, the battery is protected against inadvertent wear and tear. Data in the cloud will also help improve battery maintenance and repair. As soon as a battery fault or defect is identified, for example, the driver or fleet operator can be notified. This increases the chances that a battery can be repaired before it becomes irrevocably damaged or stops working altogether. Finally, the cloud services also optimize the recharging process itself. The recharging process which is among the biggest obstacles to creating a mass market for electromobility – harbors the risk that the battery cells permanently lose some of their performance and capacity. Smart software in the cloud can calculate an individual charge curve for each recharging pro-
cess, regardless of whether it takes place at home or elsewhere. This means the battery is recharged to the optimum level, helping conserve the cells. Whereas existing apps with charge timers merely allow drivers to time the recharging process so that it is carried out when demand for electricity
is low, the Bosch solution goes much further, offering a specially developed recharging process as part of the company’s new battery services. They optimize both fast and slow charging and control electricity and voltage levels during the recharging process, thus prolonging battery life.
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S u sta i n a b i l i ty
Secure Recycling Kasun Illankoon spoke with Stuart Fleming, Co-Founder and Group CEO of EnviroServe, on the importance of creating a Recycling Hub in the UAE.
Tell us briefly about EnviroServe and its Recycling Hub. In 2004, my partner Brian Wilkie and I started EnviroServe with the vision of providing sustainable recycling. EnviroServe is a pioneer in electronic waste and refrigerant gas recycling in the Middle East and Africa. Today, we offer complete recycling solutions across various industries, with headquarters in Dubai and eight branch offices in Angola, Georgia, Kenya, Lebanon, Rwanda, Saudi Arabia, South Africa and Zimbabwe. In 2018, EnviroServe soft-opened The Recycling Hub, the UAE’s largest integrated electronic waste recycling facility featuring brand protection and IT asset disposition (ITAD) services. Backed by the Swiss Government Export
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Finance Agency, the AED120-million project represents one of the largest foreign direct investments in the field of environmental management in the region. The facility serves as the key centre of expertise for electronic waste management in the Middle East. Tell us what your initial expectations were when you started EnviroServe. Back in 2004, environmental awareness and sustainable practices were in their infancy, but we knew that with growing climate concerns, the sustainability movement would gain momentum. Over the years, and with the upcoming Expo 2020 and the UAE Strategy 2021, driving sustainability efforts across the board,
the landscape is rapidly changing. This was our expectation when we started EnviroServe, and we are now set to spearhead the field with the launch of The Recycling Hub. In 2019, how has EnviroServe performed compared to 2018, and what are your expectations for 2019? 2018 and 2019 are definitely years of learning and unprecedented change for EnviroServe, and we assumed this would be the case. Our aim for this year is to raise awareness on The Recycling Hub and to expand its scope of services to its business partners, both locally and internationally. With clear targets set and expectations outlined accurately, we are prepared
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to overcome any challenges that may come our way in order to achieve our objectives for 2019. The Recycling Hub: Tell us what the purpose of this is, and how this benefits the environment and companies that choose to recycle e-waste. The Recycling Hub has four significant purposes, all under the umbrella of protection – protection of the environment, data, brand and product. Our customers have stringent requirements in terms of certification and ensuring that a chain of custody is in place. The Hub meets their needs through providing secure services with a single entry and exit, and a CCTVmonitored environment. The Recycling Hub: Tell us how Dubai Industrial City has supported this project. With its integrated service offerings, Dubai Industrial City has proved to be the perfect partner for us. Since we first contacted the team to consider our facility, they have accommodated our unique industry-specific requirements and, most importantly, they have believed in our purpose and understood our vision. Has the UAE/GCC taken the right steps when it comes to recycling e-waste or pushing for more sustainable practices? The adoption of the Sustainable Development Goals (SDGs) reflects and reinforces the changing dynamics in the UAE. The government authorities are becoming increasingly aware of the opportunities that a burgeoning sustainable industry presents, and are keenly supporting its development. Our operations in the GCC region have reported that the understanding of the win-win proposition among countries and industries is on the rise, and we are ideally positioned to drive that change. How important is it for companies or industries to move towards sustainability? I believe the question should be: What do companies stand to lose by not embracing sustainability? The answer is: Everything! Loyalties across industries and markets are shifting to those players that adopt a more sustainable approach in the services or products they offer. We see the world is very concerned about the damage to our planet that is now being broad-
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S u sta i n a b i l i ty
cast, photographed and documented daily through all media. Change has commenced, and those who do not accept it will not survive. Millennials are particularly active in this regard, and have the ability to lead the change now and in the future. How does the infrastructure of Dubai Industrial City help in being recognised as the largest recycling plant in the world? Dubai Industrial City’s physical location, management and core team are all aligned to support the success of their tenants, clients and investors. For AED120 million, the largest FDI in Environment in UAE, we have found a true partner that offers us the flexibility, infrastructure and shared vision to achieve tangible results.
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What are your current and future projects in Dubai Industrial City? EnviroServe is driven by the needs and wants of its clients. We will not diversify too far from refrigerants, ITAD, specialised waste and ewaste (R.I.S.E.), and we plan to develop and grow here in Dubai Industrial City as the hub for the Middle East, Africa and Caucasus region. Within our core mandate of protection of the environment, data, brand and product, we will expand our service offering to our clients, allowing them to attain zero land and air emissions and pollution with a secure chain of custody that enhances their sustainable efforts.
ments of EnviroServe – R.I.S.E. • The Refrigerant Division secures the recovery and reclaim of Freon and associated gases.
What are the facilities of The Recycling Hub? The Hub now offers end-to-end recycling services with a focus on the four core ele-
• The Electronic and Electrical Recycling Division ensures sustainable processing of any e-waste that is end-of-life (EoL) or beyond economic repair (BER).
• The ITAD Division provides re-use, refurbishment and associated services for electrical and electronic products that can feasibly continue to be used. • The Specialised Recycling Division protects brands and companies through sustainable recycling of expired, damaged, excess or counterfeit products from the grey market.
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FURTHER. We Provides your business with unparalleled access to market, world-class infrastructure bonded and non-bonded solutions as well as dedicated investor support in a duty free and competitive operating environment. We cater to all market verticals including trade, logistics and manufacturing. We endeavor to create value through the integration of our logistics zones and support service.
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U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s
IVECO holds body builder Convention in Turkey to share new business opportunities MEA region The convention was attended by more than one hundred body builders. Around 70% of the participants specialize in the light and medium segments, manufacturing body types ranging from box body to more complex super structures such as road sweeping and waste disposal. The other 30% specialize in the heavy segment with applications such as mixers, tippers, trailers. In his opening speech, IVECO Turkey Marketing Director Tansu Giz stated: “We organized this event with the aim of offering body builders new opportunities abroad, since the Turkish market has contracted for two consecutive years in 2018 and 2019. Your presence here today is testament to your commitment to strengthening your collaboration with IVECO.” During the meeting he also spoke about the improvement in IVECO Turkey’s performance on the market: the company has reached the third position in the ranking for the 3.5 tonne segment, and has outperformed the market on a year-to-date basis. Fabio Pellegrinelli, MediumHeavy Line & CKD manager for Africa and Middle East (AME) markets, presented an outlook of the commercial vehicles industry in the AME region, and highlighted the capillarity of IVECO’s Sales & Service Network in these markets.
At the event, AME Key Account, Direct Sales and Tenders Manager Andrea Scollo stated: “Today IVECO works with Turkish bodybuilders with a dedicated team and a dedicated tropicalized line-up in order to support them to exploit the opportunities offered by the African and Middle Eastern perimeter. This area is rapidly changing: we are facing the challenge of a competitive market where flexibility and affordability are not enough anymore; it is increasingly necessary to
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set up an assembly 2 plant locally in order to comply with local import regulations. We strongly believe in Turkish bodybuilders. By combining their qualitative products, their resonance in AME countries with IVECO’s network and assembly facilities, we are confident that we will jointly increase our penetration and market share, serving these markets with high-quaity tropicalized products for a large variety of applications, assembled locally where necessary.”
The meeting ended with a guided walk around of the complete range displayed in the auditorium: the Daily, Eurocargo, Stralis X-Way and Trakker. IVECO offers a complete range of light, medium and heavy vehicles, with the latest models being launched simultaneously on the Turkish and European markets. The offering is the result of IVECO’s focus on its core values of Sustainability, Total Cost of Ownership, Technology and Business Partnership with its customers. www.cbnme.com
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Continental opens flagship Middle East service centre in Dubai
Continental, the premium German tyre and automotive technology company, today opened its largest Middle East service centre in Dubai. The brand-new full-service facility, which has been launched in partnership with Royal Step Car Services, will provide customers in the UAE with a one-stop shop for all their car servicing needs. Continental’s new flagship facility has more than 10 service bays and offers a full range of premium tyre and car care services. These include, tyre repairs and fitting, wheel alignment, battery servicing, air conditioning servicing, oil changes, electrical work, brake services, car wash, car accessories and other general maintenance. There is also a dedicated customer waiting area and product display area. The new service centre, which is located on 4th Street in Al Quoz 1, was opened by executives from Continental, Royal Step Car Services and Emirates for Universal Tyres (EUT), the sole distributor for Continental in the UAE. Present at the official launch ceremony were Karel Kucera, Managing Director of Continental Middle East and Shaun Smith, General Manager
at EUT, who both handed over the certificate of authorised dealership to Hassan El Haj, Managing Director of Royal Step Car Services. Commenting on the opening, Karel Kucera, Managing Director of Continental Middle East, said: “This new flagship service centre allows Continental to make its premium range of tyres and other services even more accessible to customers in Dubai. It also demonstrates the commitment of both Continental and our UAE partner Royal Step Car Services to all of our customers, whether they be private individuals or companies, at a time when we are experiencing increased demand across the region.” Hassan El Haj, Managing Director of Royal Step Car Services, said: “The investment in this new facility ensures that we lead the market when it comes to offering customers the best in terms of both servicing and products. Everything has been done to make each visitor’s experience a special one, which we believe will appeal to customers in Dubai who are very much accustomed to receiving the best.”
FedEx Express appoints SAB Express as the global service provider for its international services in Saudi Arabia
FedEx Express and the world’s largest express transportation company appointed SAB Express (SAB) as the global service provider for its international services, connecting Saudi Arabia with more than 220 countries and territories. “SAB has been a long-term service provider to TNT business in Saudi Arabia, and following TNT’s acquisition by FedEx, SAB Express became the licensee of FedEx Express in this dynamic market,” said Sheikh Salah Al Bluewi, Chairman and CEO, SAB Express. “With SAB Express as FedEx licensee in Saudi Arabia, we are leveraging their comprehensive expertise in delivering an outstanding service across the country and building on our mutual strengths to connect customers to possibilities around the world.” said Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent and Africa. “Together, we will ensure that we continue to support the growth of the GCC’s largest logistics market with a connected road network, world-class shipping solutions, access and enhanced connectivity,” he continued. FedEx Express operates its extensive Middle East Road Network, connecting Saudi Arabia directly to the UAE, Bahrain, Kuwait, Oman and Jordan. According to the Global Insight Report, in 2018, these six countries accounted for US $1.5 trillion in gross domestic product. FedEx Middle East Road Network offers customers day and time definite services with the fastest transit times for road-based delivery. With a rapidly developing airport, maritime, railway and road infrastructure, Saudi Arabia’s logistics market is valued at US $18 billion and is expected to reach US $25 billion by 2020. Cargo growth and industry investment is set to continue growing too. A special economic zone is under development at the King Khalid International Airport in Riyadh, focusing on integrated logistics. Logistics News ME | August 2019 | 47
Unsung Heroes
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Anish Azeez
We talked to Anish Azeez, Business Development Manager, about his role and how he is helping to contribute to Shipwaves success Goals and Objectives Shipwaves started as a digital platform using cutting edge technologies like AI, Machine Learning and Blockchain with a moto Shipping Simplified which indeed is the revolution and future of the industry. Our goal is to make awareness among the customers regarding the benefits of digitisation which simplifies the entire process of shipping which saves time and money for the customers and create SHIPWAVES the reliable brand in the industry. Our target is to onboard all types of customers from MNCs to SMEs, which helps us to show a strong presence in the industry. We are also confident to expand our presence globally in various territories as one stop shop for all Supply Chain Solutions. Shipwaves as Market Leaders Business development team relies on research and marketing to understand and identify opportunities. We develop and pursue opportunities for growth using data about potential prospects and current clients. We also use information to search for tangential opportunities, such as which associations should the company join and what offers should be provided by the company. We then develop a strategy for following up with each opportunity, all the while looking for ways to improve current client relationships. My team always lookout for new ways to generate qualified leads or develop partnerships that will extend the reach of the company and bring in more qualified opportunities for the development of the company. Our team helps the management to develop and create the business strategies across various verticals of the business. Through the suggestions and feedbacks, collected from the market, provided by the BD team, the Technology team makes changes and develops new features in our platform to meet the industry standards. Key Attributes My major focus is to identify and develop new business opportunities for the company in the region which will enhance the idea of
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revolutionising the supply chain industry. Keep abreast of new developments in the industry by maintaining close & effective relationship with the existing and new customer and help the management to frame new strategies along with improvements in our digital platform as per the industry requirements and changes. I use every opportunity available to promote the profile, brand and goodwill of the company through various trade fairs, business development and brand awareness initiatives.
Importance of Teamwork Teamwork and coordination with various departments helps the BD team to provide with the best possible accurate suggestions to the management in order to frame strategies and plans for the business growth. Through teamwork problem-solving synergy can be gained from multiple mind working on a solution. Effective communication within the organisation which helps in knowledge sharing is achieved through effective teamwork.
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1 MILLION SQ FT OF WAREHOUSING SPACE
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CONTACT US INDU MARITIME & LOGISTICS JAFZA, United Arab Emirates Telephone: +9714 - 8860141 Fax: +9714-8860142 Email: info@indulogistics.com
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The key exhibitions, conferences, a n d s e m i n ar s c o m i n g u p t h i s m o n t h
GreenTech in Shipping USA
September
3-4
september
3-5
Miami, USA GreenTech in Shipping USA conference topics is environmental regulations and sustainable development, ports and green technologies, future fuels, engineering solutions for better efficiency, repair, retrofit, and ship modifications, ballast water treatment solutions and etc.
Materials Handling Middle East Dubai, UAE Materials Handling Middle East present the world’s leading providers for intralogistics solutions and a highly regarded Supply Chain and Logistics Forum making it a highly anticipated event. From forklifts and lifting equipment to commercial vehicles and automation, the show presented solutions for all your warehousing requirements. Materials Handling Middle East focuses on multiple dynamic sectors including Logistics & Supply chain, Retail, FMCG, Automotive, Oil & Gas and Pharmaceuticals, showcasing products and solutions that improve their productivity and efficiency.
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september
22-25
International Association of Transportation Regulators Conference Calgary, Canada The International Association of Transportation Regulators Conference will not only provide regulators with an abundance of information as it relates to their specific needs but will also have the ability to network and work in conjunction with regulators facing similar challenges, implementing best practices to improve the vehicle for hire industry. The topics include Accessibility, Safety & Licensing Standards, Regulatory & Legislative Matters, Litigation and Economics, Airport, Autonomous Mobility, Technology & Environment. Seatrade ShipTech Middle East
September
23-24
Dubai, UAE Seatrade ShipTech Middle East will be bringing together leading ship-owners, operators, charterers and ship technology providers, the event provides essential insight into how advances in ship technology are meeting the challenges of achieving operational efficiency and sustainability for ship operations. The event is designed to explore and identify the takeaway strategies for the Middle East and how the region can best apply technology to maximize energy efficiency, fuel economy, and safety in shipping. www.cbnme.com
Stay connected to your business around the world with our new roaming pack. Enjoy unlimited outgoing minutes and 5 GB data for 7 days for just AED 300. du.ae/vdroaming