Logistics News ME - December 2019

talking point

feature

Aviation

DP World on Gender Diversity

Full Recap of the Dubai Airshow 2019

Khansaheb Investment New Training Facility

Connecting trade professionals with industry intelligence

December 2019

Choose Well

Logistics News ME explores how Etihad Cargo’s digital transformation is making them one of the leading players in the region

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Contents

Contents

D e c e m b e r 2019

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

December 2019

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

26 Start 08 | News

Features 18 | Aviation 20 | Cover 26 | Feature 34 | Opinion 36 | Talking Point 40 | Sustainability

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Regional News

Your window to expand.

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

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D e c e m b e r 2019

Ed i to r ’ s L e t t e r

D e c e m b e r 2 019

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

According to Sage’s Regional Director, Mansoor Sarwar, Regional Director, he believes that digital transformations require closer working relationships between Chief Financial Officers (CFOS) and Chief Information Officers (CIOS). He adds that as part of the digital transformations (DX) that are sweeping through industries on the back of the headwinds of the Fourth Industrial Revolution, chief financial officers must now seek enterprise technology solutions that can provide fast and easy access to real-time financial data, which they can use to make better-informed decisions. As well as ensuring compliance, these tools must give them better access to financial and operational data, with automated alerts and perhaps, capabilities such as scenario planning.

This is particularly true for the logistics industry with port connectivity and introduction of new technology and software being used

more and more for companies to differentiate themselves.

With some 86% of organisations in the region either currently engaged in a DX initiative or about to start one, according to the IDC Middle East CIO Survey 2019, there is an obvious place to start in seeking new technological solutions: a closer bond and working relationship between CFOs and CIOs. With the financial and end-user pressure leads back to the same conclusion – tight-knit collaboration between CFOs and CIOs. By combining the forces that both executive positions command, namely budget management, operational efficacy and technological development and deployment, companies will see a bigger impact to their bottom lines, and ultimately for the private sector organisations, happier customers.

Kasun Illankoon Editor, Logistics News Middle East

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

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

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Regional News

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

Crescent Enterprises and Bee’ah inaugurate Sustainable Transport Company ION ION, the UAE-based sustainable transport company, has been officially established during an inauguration ceremony attended by Badr Jafar, CEO of Crescent Enterprises, and Khaled Al Huraimel, Group CEO of Bee’ah.

The company, which was announced in 2018 as a joint venture between Bee’ah and Crescent Enterprises, has now set up operations in Abu Dhabi, Dubai and Sharjah.

ION is the first ever green mobility solutions provider of its kind in the region, committed to pioneering accessible and sustainable transport in MENA and beyond. A new entrant in a fast-paced and high-growth sector, the company aims to provide smart, effective, carbon-neutral, commercial and public transport solutions, deployed through platforms such as ride-hailing applications, and corporate and government fleets.

ION’s new operations are set to cater to the growing demand for sustainable transport options across the UAE, including providing next-generation mobility solutions within Masdar City, supported by a fleet of Chevrolet Bolt electric cars, with plans to add on-demand services.

Commenting on the expansion, Badr Jafar, CEO

of Crescent Enterprises, said: “Our partnership with Bee’ah to establish ION stems from our shared vision of environmental sustainability, and aims to support the development of a zero-emission transport system for the UAE and the wider MENA region.

We have seen significant shifts in energy policies in recent years in response to economic, social and

8 | Logistics News ME | December 2019

environmental challenges, and it is vital that the private sector plays its role in this sustainability drive.”

Khaled Al Huraimel, Group CEO of Bee’ah, said: “As a quality of life pioneer, Bee’ah has been committed to addressing gaps in all sectors, including transportation. Due to a rise in environmental consciousness, green mobility has become an area of great potential, and ION was initally

set up to meet the surge in demands. ION is an extension of a process we started internally, by using a fleet of advanced, eco-friendly vehicles.

This fleet of 1200 vehicles is also managed by a digitally enhanced system which uses features like automated route optimization and RFID tagged bins to reduce emissions, optimize fuel consumption and the use of resources like vehicles and people.” www.cbnme.com

D e c e m b e r 2019 Logistics

Agility Reports 8% Q3 Earnings Increase

Agility, a leading global logistics provider, today reported third-quarter earnings of 13 fils per share on net profit of KD 21.7 million, an increase of 8.4% (or 12.1% excluding IFRS16 impact) over the same period in 2018.

Q3 EBITDA grew 20.9% (or 2.8% excluding IFRS16 impact) to KD 47.4 million, and revenue increased 1.6% to KD 400.7 million.

Year to date, earnings were 38.2 fils per share and net profit was KD 63.6 million,

up 7.9% (or 11.3% excluding IFRS 16 impact). Year-todate EBITDA was KD 142.4 million, an increase of 24.9% (or 6.4% excluding IFRS 16 impact). Revenue for the first three quarters was KD 1,175.8 million, an increase of 2.2%.

“Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth.

Our Global Integrated Logistics (GIL) business,

on the other hand, was affected by challenging market conditions and trade-war headwinds that have affected the industry as a whole,” Tarek Sultan, Agility Vice Chairman and CEO, said. “Even so, GIL is moving forward aggressively with its digitization agenda to improve operational efficiency and drive a better customer experience.”

Sultan said: “We continue to invest in technologydriven change and seek

to be the digital leaders in our industry. Our Agility Ventures team is partnering with innovative start-ups that are re-shaping the supply chain in areas ranging from green technologies to e-commerce. We are also accelerating in-house development, acquisitions, and partnerships to grow our digital logistics platform, Shipa. We believe this is the key to differentiating Agility and positioning us for future growth.”

SeaLead Shipping announces digital transformation partnership with SAP SeaLead Shipping, the multi-national, privately-owned shipping company, which is specialized in Red Sea, Gulf, India Sub-Continent, and South East Asia connections, has announced a digital transformation partnership at SAP

Select in Berlin.

SeaLead will deploy SAP S/4HANA and SAP Transportation Management solutions for driving more efficient trade across 18 countries in the Middle East and Asia. On the implementation of these solutions,

SeaLead will be able to enhance its service levels to its clients to the highest level by having real-time visibility and control over its endto-end processes, which in turn supports the end-customers’ supply chain efficiency.

Logistics News ME | December 2019 | 9

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Regional News

Partnerships

Emirates Group Security signs MoA with National Security Institute

Emirates Group Security has signed an agreement with National Security Institute on aviation security training, education, information sharing and best practices.

Emirates Group Security (EGS) has had a long-standing relationship with National Security Institute (NSI) for providing training, and the new Memorandum of Agreement (MoA) is all set to broaden the scale and scope of the partnership between the two entities.

NSI is responsible for creating training standards for the security industry in the UAE at the federal level.

As a kick-starter, EGS will train security personnel

in Abu Dhabi to qualify for jobs in aviation security.

EGS’ Centre for Security Studies will provide industry feedback and benchmarks to continuously review and analyse training needs and help with course development.

Dr Ali Abdulla Ali Bindahaen Al Ghufli, Chairman NSI said: “This agreement represents a significant leap in aviation security training and education, given the reputation of Emirates Group Security’s team in this domain and its employment of highly qualified and experienced trainers.

“The NSI has worked hard to develop the private security industry through

12 | Logistics News ME | December 2019

training based on the latest curricula, programmes and international standards.

This will ensure private security guards are mentally, physically and psychologically qualified to enhance the security and safety of society, and stay up-to-date with the security developments and changes that occur.

NSI is honoured to sign this agreement, and is aiming for more collaboration in this domain. Security is a goal our wise leadership has always emphasised, and this has made the UAE one of the most secure and stable countries in the world.”

Dr Abdulla Al Hashimi, Divisional Senior Vice

President Emirates Group Security said: “The scale of our security operations must be understood in the context of Emirates being the world’s largest international airline.

Our MoA with NSI is a great step in ensuring we meet the needs of the airline, the UAE, and the international security industry for the long term. It embodies the collaborative and strategic relationships we have with state authorities, and it will broaden the platform of tertiary training in aviation security. Sharing best practice is an important aspect of producing comprehensive and practical approaches to combating threats.” www.cbnme.com

D e c e m b e r 2019

DLC made 130,000 customs transactions between January and September 2019

Director General of Dubai Customs Ahmed Mahboob Musabih made a field trip to the customs centers at the Dubai Logistics City (DLC), and Al Maktoum Cargo Center, which operate under the Jebel Ali Customs Center Management, and the passenger terminal at Al Maktoum International Airport.

Musabih met with the employees working at the three centers and received detailed information from them about the latest updates of the operations and initiatives taking place in the centers, and preparations ahead of the upcoming EXPO 2020.

Musabih highly appreciated the efforts taken by the employees to make the clients happier in fulfillment of the vision of the His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. He called on them to keep up the good work and to always help advance the customs services, which help provide for more investment and trade activity in the emirate.

Musabih pointed out that the Dubai Logistics City has helped attract major investments, especially in electronics and furniture as part of its vision to be the best-

of breed integrated logistics platform of excellence serving the world-class supply chain and logistics community while positioning Dubai as the global logistics hub of choice.

This is reinforced the recently launched (World Logistics Passport) which offers a set of unique operational and financial advantages for businesses and shipping companies by connecting government entities, including Dubai Customs and Dubai Trade, with logistics service providers like DP World and Dnata, and facilitating commercial transactions among con-

cerned bodies in Dubai. “The Customs centers at the Dubai Logistics City and Al Maktoum International Airport play an essential role in facilitating trade and travel. DLC made 129,496 customs transactions between January and September 2019. Al Maktoum Airport Customs Center served 510,180 passengers, and Al Maktoum Air Cargo Center dealt with 432 customs declarations in this period. With this momentum, we are confident we will provide best services to our passengers and clients coming to participate in EXPO 2020.�

Logistics News ME | December 2019 | 13

Regional News

D e c e m b e r 2019

Distribution

Landmark Group invests over AED 1bn in new fully-automated Mega Distribution Centre in Dubai

Landmark Group today announced the opening of its fully-automated Mega Distribution Centre (DC) at JAFZA, Dubai – the largest of its kind in the GCC. With distribution being the backbone of retail, the Group invested over AED 1 billion with a firm strategy to further strengthen its supply chain capabilities and build a facility that can serve as a logistics and distribution hub for the region.

The Mega DC will also play an integral role in enhancing Dubai’s position as a hub for global logistics and trade.

Chairwoman and CEO of Landmark Group, Renuka Jagtiani, said: “The opening of Mega DC marks a huge milestone for Landmark Group. As a home-grown brand present in this region for over 46 years, we remain committed to this market and are always looking ahead.

Through the years, we have seen Dubai emerge as a global and economic business hub, giving us the opportunity to innovate and invest in the most-advanced technology and processes for our business. Today, innovation

14 | Logistics News ME | December 2019

drives economic growth and development, greatly influencing modern industry.

We are very proud to have built this fully-automated facility, which will serve our customers even better by ensuring speed and agility of operations but will also project the future of supply chain for our region.”

The first-of-its-kind facility in the region was officially inaugurated by Sultan Ahmed bin Sulayem, Chairman of the Ports, Customs and Free Zone Corporation, and the Jebel Ali Free Zone Authority.

Speaking on the occasion, he said, “Landmark Group’s Mega DC is in line with the Smart Dubai 2021 strategy aimed at the digital transformation of the city of Dubai. Your adoption of technological tools like Artificial Intelligence, Big Data, IoT, robotics and automation to drive logistics solutions is in step with what we do at DP World.

Customers are looking for speed, transparency, efficiency and effectiveness. A new approach is necessary to meet their demands along the supply chain.” www.cbnme.com

                                                                  ’                            



Regional News

Quote In the last 10 years, Saudi Arabia has invested more than US$100 billion in its transport and logistics infrastructure, resulting in one of the fastest-growing logistics sectors globally.”

D e c e m b e r 2019

Shipping

LogiPoint and NAQEL Signs an agreement to establish the first Bonded Express Facility

H.E. Saleh bin Nasser Al-Jasser, Saudi Minister of Transport & Chairman of the Saudi Logistics Hub

Top 5 online

1

The Red Sea Development Company awards contract for destination transport links

2

GAL Awarded AED 3.5bn Maintenance Support Contract with UAE Joint Aviation Command

3

Khansaheb Investment Launches Independent Aviation Safety Training Facility in Dubai

4

Serco Middle East strengthens technology offering with appointment of Chief Digital Officer

5

FedEx Express Launches Direct Access to its Services in Oman

16 | Logistics News ME | December 2019

LogiPoint the Kingdom’s premier logistics parks developers and operators has signed an agreement with NAQEL Express; a subsidiary of Saudi Post Co and the largest last mile delivery provider in the country, to establish the first Bonded Express facility at LogiPoint – Bonded and Re-Export Zone at Jeddah Islamic Port and will be dedicated to e-commerce operations.

In line with Saudi Vision 2030 and the National Industrial Development and Logistics Program (NDLIP), this facility will be the first of its kind at a Saudi Port dedicated to the clearance and fulfillment of express and e-commerce shipments. Once completed the facility can handle inbound and outbound express shipments by sea, air and land transportation Farooq Shaikh, CEO LogiPoint, said, “The logistics

sector in the Kingdom is transforming rapidly, and LogiPoint is Kingdom’s torchbearer in achieving global competitive standards and in adapting a customer-focused approach. Signing of a longterm agreement with NAQEL Express to establish the very first bonded facility dedicated to e-commerce operations is testimony to the trust and confidence our customers pose in us for not only providing them with world-class logistics facilities, but also the ecosystem that facilitates their service offerings.”

“With this expansion, NAQEL Express will further strengthen its service offering to e-retailers, online platforms and exporting companies around the world aiming to penetrate their target markets in Saudi Arabia and rest of the Middle East”, says Mohammed Al Bayati, CEO NAQEL Express. www.cbnme.com

Av i at i o n

Aviation Safety Khansaheb Investment Launches Region’s First Independent Aviation Safety Training Facility in Dubai Khansaheb Investment announces the launch of Dynamic Advanced Training, the Middle East, North Africa and South Asia’s (MENASA’s) first independent aviation safety training centre located at Mohammed Bin Rashid Aerospace Hub in Dubai South, adjacent to Al Maktoum International Airport.

Dynamic Advanced Training is a stateof-the-art facility that offers comprehensive safety and emergency procedures (SEP) training, including both theoretical as well as realistic practical instruction. It caters for a wide range of corporate and commercial aircraft. Dynamic Advanced Training is General Civil Aviation Authority (GCAA) approved in compliance with the European

18 | Logistics News ME | December 2019

Aviation Safety Agency (EASA) and the Federal Aviation Authority (FAA).

Commenting on the launch, Tariq Hussain Khansaheb, Chairman at Khansaheb Investments said: “This launch is our commitment towards the growth of the UAE’s economy as we embrace the UAE’s vision of technology and innovation which aims to make the UAE among the best countries in the world.

We are grateful for Dubai South’s support from the outset all the way to the launch of Dynamic Advanced Training. We are confident that with our existing partners and management team, we will continue to contribute towards Dubai South’s success as an Aviation Hub in the region.”

Features This is a Safety and Emergency Procedures Training facility for aircrew, both flight deck, and cabin crew which covers a wide spectrum of aircraft types that don’t exist anywhere else at the same spot. For Boeing, it caters for B737 B777, B787. And for Airbus, it provides SEP training for A310, A318, A319, A320, A321, A330, A340, and A350.

Amer Khansaheb, Managing Director for Khansaheb Investment and Bilal Tahboub, Training Director and the Co-founder of Dynamic Advanced Training told CBNME: “Training at Dynamic will be based on 90%10% delivery to enable trainees to live, own and finally transfer the gained knowledge and

www.cbnme.com

D e c e m b e r 2019

Advanced Training further added: “Dynamic will provide next generation training solutions to meet the rapidly developing aviation industry. Dynamic was conceptualized as a onestop-shop partner for Operators and will be here to support this growth.”

Dynamic Advanced Training is an accredited training facility which compliments a wide offering of aviation related courses customized to serve ground handling personnel as well as non-aviation staff.

Right to left Mark Kammer, founder of Dynamic Advanced Training, Amer Khansaheb, Managing Director , Khansaheb Investment, Tariq Hussain Khansaheb, Chairman, Khansaheb Investment, Maher Sami Khansaheb, Director, Khansaheb Investment, Bilal Tahboub, Bilal Tahboub, Training Director and Co-founder of Dynamic Advanced Training

skills effectively at the worksite.”

Dynamic invested in creating unique Polar, Jungle and Water survival simulation coupled with various environmental effects that allow aircrew feel and live reality.

Dynamic hosts the only private and corporate bizjet full-motion simulators in the

world. All Dynamic full flight cabin simulators (FFCS) are equipped with 6 degrees of freedom movement as well as cockpit-cabin synchronized visuals that reflects reality and allows for effective Crew Resource Management (CRM) training.

Mark Kammer, Co-founder of Dynamic

Technology Bilal Tahboub, Training Director and the Cofounder of Dynamic Advanced Training added: “Training is delivered by highly knowledgeable professionals using advanced simulation technology that bring training as close as possible to reality. This includes a real fire-fighting simulator, survival training simulation, water survival wave pool with environmental effects, high altitude training simulator, and a selection of door simulators. Business jet and commercial aircraft full flight cabin simulators, incorporating the latest technology in full motion with synchronized cabin and cockpit visual graphics, reflecting realism training.”

The facility will have a range of technology that would be used to assist the trainees at the facilities such as the 6-degrees full motion simulators; advanced cockpit - cabin visuals, door simulators equipped with visuals and VR, high tech environmental survival simulation facilities that can reflect different day times and different weather conditions, wave pool equipped with sound and light as well as fog that can simulate thunder, lightning and survival rescue teams.

Dynamic is the only training facility that can provide a training environment where night ditching can be simulated and practised.

This technology will enable aircrew to gain the skills and confidence that are critical to manage complicated situations at times of crisis. Dynamic also offers training in general fire safety, first aid, occupational health and safety and environment.

As an independent training provider, Dynamic meets training requests by designing flexible schedules that meet the operational needs of clients. Dynamic also extends its services to educate the public about air travel and safety by availing specialised aviation orientation courses such as fear of flight, dealing with turbulence and other abnormal situations.

In addition, Dynamic offers aviation entertainment options to satisfy the rapidly emerging edutainment market, including an aviation themed Hollywood style film studio supporting

Logistics News ME | December 2019 | 19

C o v e r S to ry

CHOOSE WELL

Logistics News ME explores how Etihad Cargo’s digital transformation is making them one of the leading players in the region

E

tihad Cargo has marked the first year of its ambitious digitalization program, which went live with iCargo in October 2018, by reiterating its commitment to enhancing customer experiences with a pipeline of further programs and initiatives.

Etihad Cargo implemented a full overhaul of its booking processes and platforms 12 months ago with the successful migration of its front-end systems to the market leading SPRINT - an IBS iCargo fully integrated technology platform that combined six legacy Etihad platforms into one. “iCargo marked a significant shift in the way Etihad Cargo operates; it was a momentous first step in our ongoing journey of improvement and adaptation to a new and exciting digitized world for air cargo,” said Abdulla Mohamed Shadid, Etihad Aviation Group’s

20 | Logistics News ME | December 2019

Managing Director Cargo and Logistics Services. “We have continued to work on a number of parallel and linear initiates to further enhance customer experiences, for example simplifying the booking journey, or reducing the average time to make a booking. With 14% of the total bookings on our portal coming outside office hours this year, it represents a significant amount of business that would have gone to our competition”.

Of the approximately half a million bookings processed in iCargo, Etihad Cargo’s online booking portal at, which also went live last October, accounted for 20% of total bookings. The monthly booking rate grew from zero in October 2018 to 33.7% in September 2019, an unprecedented in the industry over the timeframe.

The region with the highest online booking penetration rate for Etihad Cargo is Asia, with

India completing 96% of its September 2019 bookings through www.etihadcargo.com and Thailand close to the 90% mark. The Americas represents the second highest rate with the US recently crossing the 50% mark for online bookings. Etihad Cargo is working to boost the rates in Europe as several new initiatives come online in Q4.

To further its commitment to digitalization and offer multiple channels to its clients, Etihad Cargo’s automated Freight Forwarder Messaging (FFR) booking function went live in April 2019, allowing instant bookings and confirmations from its global operations as well as key forwarder customers. A total of 2,100 bookings were made through FFR during the past five months, with September marking the highest percentage of FFR bookings at 2.9%.

Etihad Cargo has also successfully launched

www.cbnme.com

D e c e m b e r 2019

By implementing data-driven technology and harnessing the ever-changing digital landscape, we have created a customerfriendly software that provides our team with market leading tools to better serve our customers when they need it most, Abdulla Mohamed Shadid, Etihad Aviation Group’s Managing Director Cargo and Logistics Services

its enterprise data lake, which feeds key internal and market data to its interactive data visualization tool Microsoft PowerBI. The key tool provides access to on-demand information for smart commercial sales steering, volumes and yields trend monitoring, customer booking behaviors, global accounts and loyalty targets, as well as station KPI performances, and is complementing the ongoing rollout of customer resource management tool, Salesforce, across all Etihad Cargo stations.

Finally, to reaffirm its commitment to IATA’s e-AWB initiative, which aims to encourage electronic airway bills as the default contract of carriage on enabled trade lanes, and an intermediate step towards a future eFreight solution, Etihad Cargo has engaged in detailed review and consultation with customers and handlers to establish e-AWB as

its default option on all enabled trades lanes.

In August, Etihad Cargo launched a dedicated to support SMEs in the process. This resulted in a significant increase in the carrier’s e-AWB penetration rate, which rose from a 16-18% average in 2018 to cross the 50% mark in September - a figure expected to increase further in the fourth quarter.

“These changes have enabled greater internal and external efficiency. During a tough air cargo market environment for the entire industry in 2019, our loyal customers and partners’ response to our digitalization efforts has been extremely positive. Our efforts have provided a small cushion to the wider effects of the market downturn; this is a clear demonstration of the market’s hunger for digitalization.

“Our digitalization roadmap is only in its infancy,” Shadid added. “The foundations have

been laid for a number of exciting projects in coming months, including our new, soonto-launch and state-of-the-art Cargo Control Centre, a brand-new website and mobile app, dynamic pricing, and APIs to support several new booking channels. It’s all part of our commitment to make Etihad Cargo a market leader in air cargo digitalization, something only a handful of carriers can boast today.”

Etihad Cargo’s complete product portfolio is also available across its digital platforms, including general cargo, TempCheck (pharmaceutical), SafeGuard (valuables), FreshForward (perishables), FlightValet (automotive) and FlyCulture (arts and music), amongst others. Now considered one of the world’s leading loyalty schemes with more than 5,300 active members from 74 different countries, PayloadRewards, Etihad Cargo’s cargo loyalty program, will also

Logistics News ME | December 2019 | 21

C o v e r S to ry

roll out further functionalities and rewards to its customers in coming months.

Furthermore, Etihad Cargo had partnered up with leading E-Booking platform Cargo.one to expand global distribution.

The deal was finalised during the Dubai Airshow, the agreement confirms Etihad Cargo as the latest international carrier to partner with cargo.one.

A key driver in its commitment to provide customers with a best-in-class booking experience, the cargo.one agreement empowers Etihad Cargo to offer an additional avenue for bookings on available cargo capacity to a wider pool of European customers.

Abdulla Mohamed Shadid said: “Etihad Cargo’s ambition to lead the industry into a new digital era has driven significant investment in our digitalisation programme across back of house and customer facing platforms in the last 12 months. This landmark partnership with cargo.one builds on the success we have achieved on our own online platform, etihadcargo.com, which represented 38 per cent of our bookings in October.”

“Our digital investment enabled us to rapidly build the required API connectivity to seamlessly link to the cargo.one platform.

Through cargo.one we will offer global capacity to users on new routings and to new destinations across our extensive worldwide network, and provide our own customers with additional booking choice.”

Serving more than 300 freight forwarding companies across Europe, cargo.one has been growing its customer base at a rate of more than twenty per cent month-on-month. In adding Etihad Cargo’s global network to the platform, cargo.one forwarders will have access from Europe to new markets across the Middle East, Indian Subcontinent, Asia, Africa, Australasia and US – including Sydney, Kuala Lumpur and Jakarta. Through the partnership cargo.one has heightened its attractiveness as the number one e-booking platform for freight forwarders, revealed Moritz Claussen, Managing Director of cargo.one. “cargo.one is the number one choice for airlines to foster digitalisation and to put their customers first. Our fast-growing user base not only makes it attractive for airlines to join as a means of reaching new customers, but also helps them to serve their customers’ needs in the best possible way. With Etihad Cargo on board we strengthen our market position as the leading distribution channel for cargo airlines

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and further grow our offering for freight forwarders,” said Claussen.

State of the art Control Centre Launching a year after Etihad Cargo embarked on a far-reaching digital transformation strategy, the CCC today becomes the “nerve centre” for real-time monitoring, tracking and active management of all shipments, flights, and UAE road feeder services in an effort to enhance Etihad Cargo’s “delivery as planned”

or DAP promise to its customers.

“As our latest digitalization initiative, the Cargo Control Centre shifts our modusoperandi from a historically reactive model, to a truly proactive service delivery machine that strives to maintain the service delivery promise and support customers’ needs every step of their shipment journey,” said Andre Blech, Head of Operations and Delivery at Etihad Cargo.

The centre’s core technology platform builds

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D e c e m b e r 2019

Abdulla Mohamed Shadid, Etihad Aviation Group’s Managing Director Cargo and Logistics Services

on Etihad Cargo’s booking and reservation system SPRINT by introducing key “always-on” tracking functionalities. These include shipment planning and performance monitoring across its five dedicated freighter aircraft as well as bellyhold shipments across more than 250 daily passenger flights. Etihad Cargo’s CCC team enjoy several large screen displays equipped with advanced software algorithms and processes which alert them of issues that may impact customer shipments, and provides

them with unique tools to resolve any such “irregularities” or service recovery matters, ultimately allowing Etihad Cargo to increase its Cargo IQ metrics, an IATA initiative to set an industry measure through which any airline is measured by its percentage of shipments that are delivered as planned.

Through the CCC, Etihad’s cargo flows, departures and arrivals across the network can today be monitored 24 hours a day, with a heavy focus on special products that are most sensitive

to schedule variations and disruptions. In addition to its air shipments, Etihad Cargo is now also able to monitor in real time all of its road feeder services across the UAE, and the new center is enabled with the requisite technology to expand this real-time road feeder service oversight to more than 100 lanes in Europe and the Americas over the coming months.

In a second phase, Etihad Cargo plans to add further functionality to the CCC to allow monitoring of its Quick Ramp Transfer shipments at its Abu Dhabi International Airport HUB, providing instant alerts on potentially problematic connections and allowing the customer service team to pro-actively take immediate corrective action. Separately, Advanced Cargo Information (ACI) monitoring, which sends automated alerts on custom conflicts to minimize the time spent checking individual shipment documentation, will be configured on 10 of Etihad Cargo’s busiest routes by the end of the year which will support timely clearance of shipments at destination.

“By implementing data-driven technology and harnessing the ever-changing digital landscape, we have created a customer-friendly software that provides our team with market leading tools to better serve our customers when they need it most,” said Rory Fidler,

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C o v e r S to ry

D e c e m b e r 2 019

Etihad Cargo’s Head of Technology and Innovation. “This is yet another step in the continuous evolution of Etihad Cargo to become a digitized air cargo carrier of choices”.

Greater Connectivity Etihad Cargo has announced its winter schedule and network plan which came into effect on September 29, 2019, with new weekly freighter services marking an increased presence in the United States of America and other strategic global cargo markets.

Leading Etihad Cargo’s annual refresh is the enhancement of its freighter services between Abu Dhabi International Airport (AUH) and Columbus, Ohio. A weekly service, now via Europe to Ohio’s Rickenbacker International Airport (LCK), will be supported by an extensive road feeder network between LCK and other US destinations including Atlanta, Chicago, Dallas, Houston and Philadelphia. The outbound flight will operate via Frankfurt (FRA) and return via Amsterdam Schipol (AMS). Etihad Cargo plans to introduce a second weekly flight to LCK, opening up an additional European gateway before the end of the year.

The LCK freighters provide the perfect main deck complement to existing bellyhold capacity on Etihad’s direct widebody services between Abu Dhabi and major US gateways including Chicago, Los Angeles, New York and Washington D.C. Supporting Etihad Cargo’s operations across North America and reinforcing its commitment to the market, Christel Alaimo has assumed the role of Area Manager – North America with immediate effect. Mrs Alaimo joins Etihad Cargo from Flexport, where she held the role of Senior Manager - Airfreight for the Americas. Previously, Alaimo has held similar senior roles for various reputable international carriers in the US. Abdulla Mohamed Shadid said: “As a strategic addition to our US team, Christel will significantly boost our Stateside operation as an invaluable in-market resource to drive growth across North America and spearhead plans to provide additional connectivity to our customers across the US.” “While the UAE is now clearly a nexus destination on the New Silk Road, it has emerged as a strategic global trade connector linking Europe and North America with Asia and Africa, and vice-versa. Our updated freighter schedule, driven by our extended coverage to and from North America, will have a lasting impact in connecting Abu Dhabi to the world,”

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explained Shadid. “The network refresh is another step in the continuous evolution of Etihad Cargo’s offering to strengthen our customer value proposition, reaffirm our standing as a preferred air cargo partner, while delivering

value to the Etihad Aviation Group.”

Etihad Cargo continues to cement its standing as a major international air cargo player, leveraging Abu Dhabi’s strategic position at the centre of the world’s busiest trade lanes.

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Air Cargo Review

Logistics News ME gives an extensive recap of the recently concluded Dubai Airshow 2019

GAL Awarded AED3.5 Billion Maintenance Support Contract with UAE Joint Aviation Command GAL (Global Aerospace Logistics), a leading regional provider of integrated aircraft sustainment solutions for military and civilian customers, today announced that it has been awarded a AED 3.5 billion contract to provide comprehensive maintenance support for the fleet of the UAE Joint Aviation Command (JAC).

The new contract reinforces GAL’s role as a strategic partner for the JAC, in delivering the full spectrum of maintenance support services.

GAL CEO Khalid Al Breiki said: “We are honoured by the continued faith that the UAE Armed Forces has shown GAL to deliver aviation maintenance support services for the JAC fleet. We will continue to bring innovative solutions to enhance turnaround times and maximise fleet availability – and explore further opportunities to deliver comprehensive life cycle support solutions that deliver value and operational efficiencies to the JAC.” GAL is a leading regional provider of integrated aircraft sustainment solutions for military and civilian entities. Working with the

26 | Logistics News ME | December 2019

world’s largest original equipment manufacturers (OEMs) and maintenance repair and overhaul (MRO) service providers, such as AAR, Airbus Helicopter, Bell, Pratt & Whitney, Boeing and Leonardo, the company helps its cli-

ents achieve exceptional fleet readiness.

GAL is part of the Platforms & Systems cluster within EDGE, an advanced technology company for defence and beyond, that was inaugurated in November 2019.

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D e c e m b e r 2019

Emirates firms up US$8.8 billion order for 30 Boeing 787s at 2019 Dubai Airshow

Emirates, the world’s largest international airline, today announced that it has signed a full purchase agreement for 30 Boeing 787-9 aircraft, worth US$ 8.8 billion at list prices, at the Dubai Airshow 2019. Under its agreement with Boeing, Emirates has exercised its right to substitute the B777x with B787s.

This deal includes Boeing 787 Dreamliners, with deliveries commencing in May 2023 and continuing for the next five years. For the B777X, Emirates will enter into discussions with Boeing over the next few weeks on the status of deliveries. This takes Emirates’ total order with Boeing to 126 aircraft.

HH Sheikh Ahmed bin Saeed Al Maktoum, Emirates Chairman and Chief Executive, signed the agreement with Stanley Deal, President and Chief Executive Officer for Boeing Commercial Airplanes. Including the

US$ 16 billion Airbus A350 order on Monday, this latest announcement takes the total value of Emirates’ firm aircraft commitments at the 2019 Dubai Airshow to US$ 24.8 billion.

HH Sheikh Ahmed said: “I am pleased to announce a firm order for 30 Boeing Dreamliners.

This is an important investment and addition to our future fleet and network requirements, providing us the agility, flexibility and spread of seat segments when it comes to overall capacity to serve a range of destinations as we develop and grow our global route network. This also reflects Emirates’ continued efforts to provide the best quality air transport services to our customers.

The 787s will complement our fleet mix by expanding our operational flexibility in terms of capacity, range and deployment to connect new city pairs and expand frequencies. We are also pleased to reaffirm our commitment to the

Boeing 777x programme and look forward to its entry into service.”

Sheikh Ahmed added: “Our Boeing fleet is key to our business model to serve international demand for travel to and through our Dubai hub, as we continue to contribute to the UAE’s strategy to become a global destination for business and tourism by providing high quality air connectivity.”

Stanley Deal said: “We are excited to finalise this important order from one of the world’s leading airlines. Our agreement solidifies Emirates’ plan to operate the 787 Dreamliner and the 777X, which make up the most efficient and most capable wide-body combination in the industry. It is an honour to build on our successful partnership with Emirates and continue to sustain many jobs at Boeing and our supplier partners.”

Logistics News ME | December 2019 | 27

F e at u r e

D e c e m b e r 2019

Sanad sets eyes on future with next-gen mro technology deployments

Sanad Aerotech (Sanad), has launched its first move towards disruptive Fourth Industrial Revolution (4IR) technology implementations.

This reaffirms Sanad’s customer-first ethos and longstanding commitment to the aircraft engine MRO sector.

To commence with its digitalisation roadmap, Sanad signed a memorandum of understanding with SAP, a market leader in enterprise application software, for an automated maintenance process tool. The move of tapping SAP’s expertise is part of Sanad’s digitalisation strategy aimed at further enhancing efficiencies across its industry-leading aircraft engine MRO process from its state-of-the-art Abu Dhabi facility.

This effectively adds to Sanad’s growing list of innovative technologies, which also includes TrackIT RFID technology to track and trace, monitor and manage engine parts and Blockchain Technology digital ledger.

Over the last two years, Sanad has deployed Honeywell’s AI enabled and custom-

28 | Logistics News ME | December 2019

ised ‘VoCollect’ digital voice data capture solution and Atlas Copco’s ‘Smart Connect’ digital electronic wrenches.

Sanad’s adoption of these technologies is expected to further slash Sanad’s aircraft engine MRO services turnaround times by 15%, reducing turnaround times by three days for minimum work scope level and up to 10 days for maximum work scope level.

“Time is money and this fact that has never been more relevant than in the era of the Fourth Industrial Revolution, when speed to market is a decisive competitive advantage,” said Sanad Aerotech CEO, Mansoor Janahi.

“These newly deployed assets are highly efficient, disruptive technologies that utilise the latest advancements in digital systems. This roll-out is in-line with Sanad’s evolution into a leading global MRO player that embraces breakthrough technologies to enhance operational efficiency and most importantly customer service.”

Sanad is the first regional MRO provider to

deploy TrackIT RFID technology on its shop floor. The system tracks parts and manages their flow throughout the entire MRO process, allowing real time assessment of part readiness, arrival and ease of forward planning.

“There is no longer any need for individuals to manually follow or track paperwork to know where parts are at any given stage of our process,” explained Janahi. “The technology enables easier traceability of literally thousands of parts, saving days on the engine MRO maintenance cycle.”

“The technology involves various algorithms including machine learning to teach the system to recognise the voice of different technicians performing the work,” explained Janahi. “Our initial implementation of the technology delivered hugely significant saving and elimination of data capturing errors. We are now in the process of implementing this technology in various stages of our MRO processes and across the full range of engines we maintain,” added Janahi.

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Alsalam showcases its capabilities at Dubai Airshow 2019

Alsalam Aerospace Industries presence attracted great interest from original equipment manufacturers who wish to develop their business in Saudi Arabia under Vision 2030.

The company’s participation in the Dubai International Airshow is aimed at highlighting the progress and development of the aviation industry in the Kingdom’s aviation sector.

The company highlighted the most important achievements in the field of aviation industry and the most important work carried out in the field of manufacturing, training and maintenance.

On this occasion, Eng. Abdulaziz Al-Fozan, Interim President & CEO, said: “Our participation in this specialized exhibition in the field of aviation will reflect the progress and development achieved by the Kingdom in the field of aviation

30 | Logistics News ME | December 2019

industry in accordance with Vision 2030, especially with regard to military industries. He reviewed the latest developments in the course of its work and the integrated services it provides in the field of maintenance and development of military, commercial and private aircraft.

For his part, Mr. Abdulaziz Al-Oraifi, Vice President of Business Development, said: “The Company has reached an advanced stage in manufacturing, which confirms that the Kingdom is moving steadily towards achieving the goals of Vision 2030 in the field of military industry”.

The Vice President for Business Development confirmed that the company is working with the support of the wise leadership on the Kingdom’s strategy aimed at developing and enhancing the capabilities of the aviation industry through the

transfer of advanced purification in this area and the qualification of national competencies to do this business.

It is worth mentioning that Alsalam Aerospace Industries is one of the Saudi companies established under the umbrella of the Economic Offset Program in 1988 with the aim of building the Kingdom’s own capacity in the field of aviation industry, through the maintenance, modernization and modification of civil and military aircraft, assembling some aircraft and manufacturing some parts and spare parts, and providing support. It also aims to operate and maintain military and civil aircraft, in addition to training and qualifying national cadres to work in the fields of the company in order to localize the technology of the aircraft industry in the Kingdom.

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D e c e m b e r 2019

Air Arabia places US$14 billion order for 120 Airbus A320 family aircraft Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier (LCC), today set another milestone with one of the region’s largest single-aisle aircraft orders of 120 Airbus A320 Family aircraft. This was announced during Dubai Airshow 2019 following a signing ceremony attended by Air Arabia’s Chairman Sheikh Abdullah Bin Mohammed Al Thani and Guillaume Faury, Chief Executive Officer of Airbus.

The deal, whose total book value exceeds US$14 billion (list price), will more than triple Air Arabia’s current fleet strength as well as support the carrier’s global network expansion strategy. The new orders are for 73 A320neo, 27 A321neo and 20 A321XLR airplanes, all belonging to the A320 family but each bringing exceptional value for Air Arabia in meeting its growth goals. Delivery is scheduled to commence in 2024 and the Sharjah-based

airline has yet to specify the engines to be installed on its new fleet.

Adel Al Ali, Group Chief Executive Officer of Air Arabia, said: “Air Arabia’s fleet growth strategy has always been driven by commercial demand and we are glad to announce today one of the region’s largest single-aisle orders with Airbus to support our growth plans. This new milestone underpins not only our solid financial fundamentals but also the strength of our multi-hub growth strategy that we have adopted over the years while remaining focused on efficiency, performance and passenger experience.”

He added: “The addition of the A320neo, A321neo and A321XLR complements our existing fleet and allows us to expand our service to farther and newer destinations while remaining loyal to our low-cost business model.

We look forward to working with Airbus and

receiving the first delivery.”

Air Arabia’s current fleet consist of 54 Airbus A320 & A321neo-LR. While the A320neo builds on the A320 product line’s position as the world’s most advanced and fuel-efficient single-aisle aircraft family, the A321neo variant provides extended range for the A320neo family’s longest fuselage version.

Air Arabia is the first Middle Eastern airline to operate the A321neo-LR with three aircraft currently in service and another three scheduled to join the fleet in 2020.

The A321XLR further extends the singleaisle jetliner offer with service entry planned in 2023, making Air Arabia, again, one of the first owners of the aircraft. The A321XLR will offer more range of up to 8 hours and has outstanding environmental performance with lower fuel burn per seat, less carbon dioxide emissions and noise footprint.

Logistics News ME | December 2019 | 31

F e at u r e

New GX5 satellite to provide more inflight Wi-Fi capacity for Middle East airlines

Inmarsat, the world leader in global, mobile satellite communications has received formal confirmation from its launch partner, Arianespace, that the company’s GX5 satellite will be launched from the Guiana Space Center in Kourou, French Guiana on Friday 22 November 2019.

Global Xpress (GX), which powers the award-winning GX Aviation and Jet ConneX (JX) inflight broadband services, is the most successful service launch in the history of Inmarsat and GX5 is the most advanced satellite in the Global Xpress (GX) fleet. GX5 will be fully integrated into the existing GX network, delivering focused capacity that allows the airline and business aviation markets to meet rapidly growing demand for seamless inflight broadband in the Middle East. It represents a significant advance in the capabilities of the

32 | Logistics News ME | December 2019

network, offering more capacity than the entire existing GX satellite fleet combined into the region.

GX Aviation customers include leading airlines such as Lufthansa, Qatar Airways, Air New Zealand, AirAsia and Singapore Airlines.

In addition, Emirates has confirmed its intension to install GX Aviation on its Boeing 777X fleet, as part of its plans to develop and enhance state-of-the-art inflight entertainment and connectivity with Inmarsat partner Thales. In the business aviation market, JX has been activated on more than 600 business jets worldwide.

Neale Faulkner, Inmarsat Aviation Regional Vice President for the Middle East, Africa and South Asia, said: “GX Aviation and Jet ConneX have already established themselves as the gold standard for inflight broadband across the world, including the Middle East. The launch

of GX5 will cement this position in the longterm by adding even more capacity to meet fast-growing demand in the airline and business aviation markets. This highlights our firm commitment to ensure customers can rely on our world-leading inflight connectivity service not just today, but for decades to come.”

Connectivity services delivered over GX5 will be backwards compatible for all existing GX terminals, future-proofing the investment of Inmarsat’s aviation customers and ensuring that their requirements will continue to be met as demand for capacity continues to increase.

GX5 and the forthcoming seven additional GX satellites, planned for launch in the coming four years, further extend Inmarsat’s global leadership in true broadband services, which is supported by the company’s network of world leading technology, manufacturing and channel partners.

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D e c e m b e r 2019

AMMROC Unveils state-of-the-art MRO Facility at Dubai Airshow AMMROC, the leading provider of military Maintenance, Repair, and Overhaul (MRO) services in the region, today unveiled a model of its world-class Al Ain facility at the Dubai Airshow 2019. The special event took place at the EDGE pavilion in the presence of His Excellency Faisal Al Bannai, CEO and Managing Director of EDGE and Chairman of AMMROC, and Tim Cahill, Senior Vice President of Lockheed Martin International.

Set to commence operations early next year, this state-of-the-art facility will be among the largest centres dedicated to military MRO in the world.

The one-square-kilometre facility will be uniquely positioned on a plot of land that is directly connected airside to Al Ain Interna-

tional Airport, and offer innovative maintenance solutions, performance-based reliability, and full life cycle management – all from one central location. Built to cater to future expansion, the centre will initially feature four multipurpose hangars, over 30 back-shops and a climate-controlled paint facility.

With a 36,500m2 hangar space, the Al Ain complex features a dedicated Black Hawk ‘nose-to-tail’ depot with LRUs that include blades and transmissions, engines, and aircraft subsystems.

The facility is also equipped with a dynamic whirl stand to support the rotary aircraft blades and transmission repair shop that is powered with advanced technology, making it a first-inthe-region.

Speaking on the occasion, His Excellency

Faisal Al Bannai said: “We are invested in the aerospace and aviation industry, and the AMMROC MRO facility in Al Ain as one of the world’s largest military MRO capacity, is testament to this commitment. This new facility will serve existing and new customers, representing the incremental demand created by the regional market.”

Abdul Hakeem Al Muflahi, CEO of AMMROC, said: “AMMROC leverages engineering excellence and innovation to provide a competitive benchmark in the industry. This facility will ensure compliance with the highest aerospace standards through offering maximum flexibility and capacity. We are confident that the new centre will strengthen our positioning as a fully integrated, industry-leading MRO solutions provider.”

Logistics News ME | December 2019 | 33

Opinion

Women Empowerment Paula Bellamy, Managing Director of Oceanwide Logistics Dubai, on how women are empowered here in the UAE.

34 | Logistics News ME | December 2019

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D e c e m b e r 2019

O

ne question I regularly receive from clients or International colleagues is ‘How do you manage to run an International logistics business in the UAE as a woman’?

This has always intrigued me, as my honest opinion is that it’s easier to be a Woman in Logistics in the Middle East rather than the UK or Europe. Here are a few reasons why - There are queues for ‘women only’ here which applies within Customs departments / DO counters etc, Women are more likely to be given the last space in a lift when you’re rushing to a meeting, a Woman has a soothing voice for calming down situations and the best one is that women are the best multi taskers who will adapt to any role.

In the Middle East, woman are without doubt treated differently from men, however that does not have to be a disadvantage if you want to look at it a different way. For OL Dubai meetings sometimes our Clients will be surprised to see ‘ Paula’ walk in and not ‘Paul’ but once I talk with confidence and my Client understands that I am well experienced in my industry, I receive respect, and as long as I actually commit to do everything I offer in the meeting my Client always ends up happy. Being a woman I tend also to give a lot of warmth in my conversations, perhaps give away some ‘trade secrets’ as I talk too much, but I am always very confident in my abil-

ity to control the business as I know I have a team who work along the same shared values as myself and therefore it’s an easy sell as far as I am concerned.

I am however not a feminist, I truly believe that the best team in a sales pitch or back office operations is a mixture of women and men to have an all-round clear picture and debate, but this is not mirrored unfortunately in the Logistics Industry especially for senior positions which is a shame. Women I feel lack confidence to push themselves forward for the higher positions and prefer to accept more administrative or back office positions.

Only last month my own Office Manager Cherryline Feliciano won ‘Supply Chain Manager of the year’ with Logistics News ME magazine, this would not have happened without mentoring and constant pushing from my side as Cherryline could not see her own true worth without being told how good she was, this is a standard female trait. We do need others reassurance as females before we will ‘leap into the fire’ whereas males are more likely to put themselves forward even if they are not sure 100% they can do it, they are more likely to take a risk.

So how do we make some change? It has to come from within each office environment, and we are not talking about just large companies, in fact for large companies the

process can be harder than for SME’s. OL Dubai is an SME and we mentor each other, we do not choose positions by the male or female choice, we choose people’s personality and experience for the roles required, so it’s basically the best person for the job and no need to label male or female. I cannot be sure why the Logistics Industry side stepped women for quite some time, logistics procedures are methodical processes which requires a certain way of thinking, black & white, out of the box thinking and also you have to be able to multi task, we all know women do the multi-tasking aspect very well in their everyday life therefore they should be a definite candidate for running / managing a logistics office.

So whether you are employing sales / account / import or export operations or thinking to restructure your current team, make sure you have a balanced team with male / female for strong support. Understand males & females think differently which is good, each bring value in a different way which is needed in today’s supply chain for an overall well rounded view, don’t get complacent with your current team, and give each person a chance to shine. It’s your duty as CEO / General Manager to get the best from your team, so give them a chance to show you their voice can be a little louder if you’re listening.

Logistics News ME | December 2019 | 35

Ta l k i n g p o i n t

The bottom line According to DP World, gender diversity is not just a moral obligation, it’s a sustainable growth plan.

Since the first ball was teed up outside of the British Isles in 1829 at the Royal Calcutta Golf Club, golfers have trodden a global footprint.

As of early 2019 there were golf courses open in 209 of the world’s 249 countries, with 534 new courses in development.

The sport has become a multi-billion-dollar industry, but to continue on its growth trajectory it needs to appeal to new audiences and tap into a growing interest among women. Ac-

36 | Logistics News ME | December 2019

cording to a recent survey there are as many as 37 million prospective new female players around the world, keen to take up the game.

Syngenta, the firm who commissioned this survey, believe that tapping into this latent market could add as much as $35bn a year to the golf industry.

Having a diverse customer base is a strategic necessity for a global business, but the benefits of promoting diversity are also evident in a

company’s productivity and process. Increased company-wide innovation is one benefit, as employees from diverse backgrounds tend to approach problems from different perspectives.

A study by Boston Consulting Group found that companies with more diverse management teams had 19% higher revenues from new products and services over a three-year period.

Attracting the millennial workforce is another benefit. By 2025, 75% of the global work-

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D e c e m b e r 2019

[Shipping and logistics] is an industry with strong gender stereotypes DP World’s Group Chairman and CEO, Sultan Ahmed Bin Sulayem

force will be millennials, and this group has a stronger focus on diversity than older generations. According to a recent Deloitte survey, around half of millennials actively look for diversity and inclusion when sizing up potential employers.

Gender equality is perhaps the most publicised issue in the diversity debate. And there are plenty of statistics to show that companies with more women in the C-suite are more prof-

itable. According to the IMF, adding just one more woman in a firm’s senior management or corporate board – while keeping the size of the board unchanged – is associated with an 8-13% increase in profit.

IMF Managing Director Christine Lagarde has said that if women’s employment equalled men’s, economies would be more resilient and economic growth would be higher. (Lagarde has herself been a trailblazer for women in

business. She was the first woman to become a finance minister of a G8 economy as well as being the first woman to head the IMF, and she has now been nominated as the first female President of the European Central Bank.)

For DP World, diversity and inclusion are woven through the fabric of everything the company does, and these values go hand-inhand with the company’s desire to create a better future for all. Take DP World London Gateway, for example. This is the UK’s most sophisticated port and logistics park facility – but it isn’t just leading the way in terms of cutting edge technology. It’s also making a traditionally male-dominated sector more accessible to women. “The ports industry is changing as new technologies are introduced,” says DP World UK CEO Chris Lewis. “We were proud to employ and train the first female quay crane driver and now have the first ever female union representative in the ports industry.”

Women’s empowerment is one of DP World’s priority growth strategies. On International Women’s Day in March, 2018, the

Logistics News ME | December 2019 | 37

Ta l k i n g p o i n t

company launched #DPWorld4Women, a campaign aimed at boosting female participation in the shipping and logistics industry. The campaign incorporates practical initiatives such as ensuring the facilities and tools are suitable for both genders, with strategic goals for hiring competent women and ensuring they receive mentorship from women in leadership positions across the company. “[Shipping and logistics] is an industry with strong gender stereotypes,” acknowledges DP World’s Group Chairman and CEO, Sultan Ahmed Bin Sulayem. “However, we want to change these perceptions and be instrumental in unlocking women’s potential. We know if women have the ambition and the drive, they can achieve anything, and DP World will support them.”

But companies wanting to take DP World’s lead and bring more women into their workforce should realise this is not just a numbers game, according to Maha Al Qattan DP World SVP, People. “Quotas are out, and hiring competent women in key jobs where they can make a difference, is in,” she says, advising companies to engage senior leaders as champions for women, and giving women the opportunity to develop their own support networks.

DP World’s commitment to diversity and inclusion extends to its involvement in the world of golf. In the UAE, the Emirates Golf Federation, with backing from DP World, is trying to bring golf to more young people, and in particular girls, as there is currently a shortage of female Emirati golfers.

In the UK, Women and Girls’ Golf Week in May was an example of the ways in which the women’s game is being promoted, telling the stories of women and girls who are involved in many different ways in the sport, celebrating their successes and challenging perceptions associated with women and girls’ golf.

Disability is another important area when it comes to inclusivity – and it can also have an important impact on the bottom line. A new report by Accenture shows that companies that embrace best practices for employing and supporting more people with disabilities in their workforce outperform their peers. Accenture’s analysis also reveals that US GDP could get a boost of up to US$25 billion if more people with disabilities joined the labour force.

The economic benefits of disability inclusion go far beyond direct access to work. Supporting people with complex disabilities to undertake self-care or to help with household tasks, and enabling a child with disability to attend school all have broader benefits in opening up new opportunities and redistributing

38 | Logistics News ME | December 2019

D e c e m b e r 2019

care burdens, with knock-on economic as well as social impacts.

EDGA (formerly the European Disabled Golf Association) is a not-for-profit volunteer organisation that promotes golf for players with disability at every level. This year, the inaugural EDGA Dubai Finale, running alongside the season-ending DP World Tour Championship, will see players with disability tackle

the same course set up as the European Tour professionals.

“The essence of our business is smarter trade to help build a better future for everyone.

In golf, that means playing our part in opening up the sport to people of all ages, backgrounds, gender and ability,” says Daniel Van Otterdijk, Senior Vice-President, DP World Group Corporate Communications.

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PLASTIC RECYLING Kasun Illankoon spoke to Vanden Recycling CEO Damien van Leuven, on the importance of plastic recycling and what steps can be taken to increase the recycling rate in the GCC

40 | Logistics News ME | December 2019

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D e c e m b e r 2019

V

anden Recycling has established a new location in Dubai, servicing the Gulf Cooperation Council (GCC) region.

Currently, the recycling rate is less than 10% in the region. Established recycling ecosystems exceed 35% recycling rates. With research released last year finding that Saudi Arabia and UAE had gained a status of one of the world’s largest waste producers, the region is now pushing an agenda to reach improved diversion rates as soon as 2021. Vanden Recycling now handles over 50,000MT per year of plastic for recycling and covering more than 100 different grades of recycled plastics.

Vanden Recycling CEO, Damien van Leuven emphasized what steps could be taken to increase the recycling rate: “Reduce the amount of unrecyclable packaging, educate the public on the impact of good separation, implement container return schemes (bring back schemes) and build high quality infrastructure so the material can be used in the circular economy.

Everything requires a balance. Regulations should be put in place to reduce unrecyclable materials entering the market, incentivise companies who use recycled material in their products and invest heavily in education to the public and industry.”

Damien further added: “The best way to make recycling convenient is actually very simple. Design and produce products with recy-

cling in mind, collect and segregate materials at source (or implement bring back schemes) and recycle them to a high enough quality so they can be used in the circular economy. Recycling is often over complicated unnecessarily and therefore requires great technical innovation. If you focus on the quality of design and collection, materials can be used again and again.”

“The best way to make recycling convenient is actually very simple. Design and produce products with recycling in mind, collect and segregate materials at source (or implement bring back schemes) and recycle them to a high enough quality so they can be used in the circular economy. Recycling is often over complicated unnecessarily and therefore requires great technical innovation. If you focus on the quality of design and collection, materials can be used again and again,” said Damien.

Damien told us why it was important for them to set up an office in Dubai: “Although UAE has a low recycling rate now, they have ambitious plans to reach much higher levels and we see ourselves helping to achieve that. Right now we are looking for partners to work with locally to secure quality material supply and build infrastructure to make them leaders in the circular economy. There is an opportunity for food and beverage companies to join together and become leaders in recycling the waste their products produce to a high quality within the UAE. Everyone’s

mindset must change to seeing Supply, rather than seeing waste!”

“The possibility to manufacture commodities and products from the waste materials collected from households is perhaps the biggest opportunity to have an impact on recycling and for the UAE to become a world leader in the sector.

Over the past 2 years we have developed an internal education and content creation team who travel the world to “pull the curtain back” on recycling and show what happens to materials and what they can be made into. Working with customers and local governments, we develop tailored education content for internal systems and external marketing. One of the best ways to kick start interest in recycling the right way is to leverage your sustainability efforts to create a positive impact for your brand.

We see a great opportunity to bring this service to the market in the UAE to help build the culture of recycling.”

Damien on how companies can benefit by using Vanden Recycling: “We help transform their waste into a valuable commodity. If being a sustainable company is important to them or is likely to be a key driver for their customers in the future, then they must take action or risk being left behind. The benefit in this case is not only keeping the business you have, but we want to help you use recycling and sustainability to become a platform for growth in the future.”

Logistics News ME | December 2019 | 41

S u s ta i n a b i l i t y

Sustainable Practices

Dubai Industrial City Leads Discussion on Sustainability in Industrial Sector

D

ubai Industrial City, one of the largest industrial hubs in Dubai and the region, and a member of TECOM Group, hosted the third edition of DI Talks, a series of expert-led discussions within the context of advanced and sustainable manufacturing and other industrial sectors.

Hosted at The Recycling Hub by Enviroserve in Dubai Industrial City, under the theme ‘Sustainability’, the series highlighted ways to achieve green manufacturing through adopting more sustainable practices and technologies.

The gathering convened experts, decision makers, professionals and educators in the UAE. Speakers included Stuart Fleming, CEO and Founding Partner of Enviroserve, James Stewart, General Manager of ALEC Energy,

42 | Logistics News ME | December 2019

Thomas Bosse, Head of Programmes at Dubai Carbon Centre of Excellence (Dubai Carbon), Rory McCarthy, Chief Commercial Officer at Yellow Door Energy, Ridah Sabouni, Managing Director of Energetics, Amit Kotecha, Head of Commercial at Dubai Carbon, and Professor Bassam Abdel-Karim Abu-Hijleh, Dean of the Faculty of Engineering and IT at The British University in Dubai.

Speaking on the occasion, Saud Abu Alshawareb, Managing Director of Dubai Industrial City, said: “As a key driver in achieving the objectives of Dubai Industrial Strategy 2030, we are pleased to host the DI Talks platform to boost knowledge in the industrial sector and bring together experts and professionals from across industries, allowing for collaboration and

innovation. We are extremely pleased with the growing participation and engagement of all stakeholders, from the public, private and academic sectors, for each edition of this initiative.”

Following the welcome address by Alshawareb, Stuart Fleming in his keynote speech, said: “With significant environmental challenges ahead, we are in crucial need of a roadmap that includes radical, efficient and effective solutions. Global sustainability is one of the many new concepts that have emerged, which require great leaps to realise.”

He added: “At Dubai Industrial City, our factory is working to change the industry stereotypes, especially with regard to environmentally-friendly practices. We also see the opportunity to elevate this sector in collaboration

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D e c e m b e r 2019

with the younger generation. We aim to build upon the younger generation’s awareness of environmental issues and support the wide range of initiatives and actions they are launching.”

James Stewart said: “The problem we face when looking at implementing environmentally-friendly practices is the prevailing idea about their high costs. The reality is that there are many ways to achieve long-term results at an affordable cost. Manufacturers can work with environmentally friendly solution providers to develop a plan that suits both their budget and the size of their business.”

For his part, Thomas Bosse said: “Through our work, we are putting in place an equation to ensure benefits at three levels: social, economic, and environmental. Government agendas and strategies play a key role in supporting a better future in terms of reducing carbon emissions in various processes. Therefore, it is crucial to raise community awareness about the importance of preserving the environment and our resources as it’s a responsibility of all community members.”

During the panel discussion titled, ‘Adopting more advanced and sustainable manufacturing and production technologies and practices in the UAE’, speakers Rory McCarthy, Ridah Sabouni, Amit Kotecha and AbdelKarim Abu-Hijleh discussed a number of sustainable approaches and methods that organisations must implement in their strategic plan

and agreed on specific recommendations.

Takeaways from the session included highlighting the importance of raising community awareness and spreading the word on the need to control the consumption of water, energy and other natural resources. The session also encouraged greater collaboration and emphasized the need for significant investments to strengthen the education system and implement vocational training for workers in various sectors.

The participants also reaffirmed the tremendous prospects for achieving sustainability through active public-private partnerships with a supportive legislative system and investments in modern technology to provide a much-needed push towards environmentally friendly industrial processes. They noted that doing so would further encourage communities to act towards a future that holds positive implications for the environment, return on investments for businesses, and better health for individuals.

Dubai Industrial City launched DI Talks in early 2019 as a platform for its business partners and industry leaders to share their knowledge and expertise and discuss the latest trends. The first edition in January focused on food manufacturing and its role in food security, while the second in June spotlighted future trends in logistics and manufacturing. The initiative supports the role of Dubai Industrial City as a partner and main contributor to the Dubai Industrial Strategy 2030.

Facts and figures • October 2019 - Dubai Electricity and Water Authority (DEWA) has connected 1,354 photovoltaic (PV) installations on residential, commercial and industrial buildings with a total capacity of 125 MW as part of its Shams Dubai initiative.

• July 2019 - 19% reduction in net carbon emissions in the emirate of Dubai, according to the Supreme Council of Energy in Dubai • Between 2009 and 2018 – Savings of 7.4 billion gallons of water, equivalent to AED1.2 billion in Dubai • Between 2009 and 2018 – Savings of 2 terawatt-hours of electricity • Between 2009 and 2018 Reduced 1 million tonnes of carbon emissions • By 2050: 75% of Dubai’s energy needs are to be met from clean sources, according to the Dubai Clean Energy Strategy 2050

Saud Abu Al-Shawareb, Managing Director of Dubai Industrial City

Logistics News ME | December 2019 | 43

E-Commerce

Why logistics start-ups need smart, connected ports Start-up activity has been booming across the Gulf, as local and foreign entrepreneurs capitalise on a highly connected base of young consumers with high disposable incomes to launch products and services that meet the region’s unique needs. Opportunities are only going to increase across the Gulf and particularly in Saudi Arabia as the Kingdom opens its doors to new business.

Against a gross domestic product of $780 billion, and a per capita income of $88,270, Saudi consumers have a high disposable income.

Smartphone penetration rates of close to 70 per cent and new e-commerce regulations will help power a logistics boom into 2020, when the industry is expected to be worth $25 billion, up from $18 billion in 2019.

Already, the average basket size for online purchases within the Kingdom stands at around $150, in line with markets such as the US and UK, and higher than $100 in China, Bain & Company says.

Amidst this surging demand, ports around

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the edge of this explosive and lucrative market are poised to benefit. As a principal import gateway to Saudi Arabia, Bahrain’s Khalifa Bin Salman Port (KBSP) is set to expand its already significant benefits for companies operating within its free zone. The port offers a range of value-added services to entrepreneurs in the manufacturing and logistics sector.

In addition to its excellent capacity (it is one of the few ports to have spare capacity of close to 50%), efficient operations and market-leading turnaround times, operators using the port can expect a mere 30-minute journey to the King Fahd Causeway with Saudi

Arabia and a short 10 minute-drive from the seaport to airport. Not only does Bahrain offer 100% foreign ownership for entrepreneurs, but with the lowest setup and operating costs in the GCC, companies save 30-50% compared to neighbouring countries.

Already, the Bahrain logistics zone services third-party logistics and freight forwarding services, general and specialised storage and distribution activities in the re-export business, and value-added logistics services such as component assembly, packing and packaging, labelling, testing and repair, mixing, weighing and filling, and other light manufacturing activities.

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D e c e m b e r 2019

Smart ports as trade enablers The recent launch of 5G networks on the island – Bahrain became the first country in the region to roll out commercial operations of the new bandwidth capability – puts KBSP firmly in the lead in the race to be the first smart port in the region and is set to accelerate its offering for start-ups. The new technology will enable container transfer efficiency with automated, intelligent solutions, doing away with a dependence on human resources operating container cranes under harsh working environments.

Using 5G-based solutions, one operator will be able to handle multiple gantry cranes while working in a comfortable central control room, 5G leader Huawei said in a white paper on the subject. In the near future, the technology can

be leveraged for multiple applications, such as autonomous driving of automated guided vehicles and Intelligent Guided Vehicle video management in port.

But ports will not rely on 5G alone. Other technologies that will improve efficiencies include solutions such as automated weighbridges to ensure uninterrupted truck flows with streamlined operations, as well as port information and management systems — and improved port capacity, broadly seen as the most pressing issue of the moment.

About 90 per cent of global trade relies on maritime transportation, according to industry statistics. Smart ports are seen as a gamechanger for the maritime trade and the wider logistics business, boosting trade expansion through operational efficiencies such as au-

tomated transaction processing, faster cargo turnaround times, improved staff safety and a reduced carbon footprint. These attributes will stand Gulf nations in good stead as they revive their ancient role as major transit points at the centre of global trade on the new 65-nation Silk Road.

Goods manufactured in Bahrain and around the Gulf will further benefit from the opening of a new $1.1 billion terminal at Bahrain International Airport in March. Projected to have the fastest connecting times in the region, the new airport will complement sustainable long-haul trade for logistics operators. Together with KBSP, it will lead to faster and more efficient operations, and in turn to reduced transit times, happier customers and greater business volumes.

Logistics News ME | December 2019 | 45

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Saudi Arabia, UAE to Expand Cross-Border Logistics Cooperation

The Saudi Logistics Hub, a government initiative mandated to support the growth of the country’s logistics sector, held its first global roadshow in the UAE in collaboration with the National Association of Freight and Logistics (NAFL).

Numerous business leaders from the logistics sector attended the event, held on November 3 at the Dubai International Financial Centre (DIFC), and learned about investment opportunities resulting from Saudi Arabia’s latest initiatives.

In 2018, the UAE was Saudi

Arabia’s sixth-largest export market and its third-largest import market.

Non-oil exchange between the two countries reached US$29.2 billion in 2018, a surge of 35 percent over 2017, reflecting the strength of the strategic partnership and the unity of visions between the two countries. While the UAE has consolidated its status as a logistical hub for the Middle East, Saudi Arabia is one of the largest consumers and producers in the GCC region, accounting for close to half of its economy.

Aimed at strengthening Saudi Arabia’s ties with key

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global logistics markets, the roadshow educated investors and other sector leaders about the Saudi Logistics Hub and its efforts to transform the country’s logistics sector, as well as the ongoing ease-of-doingbusiness reforms and investment initiatives.

In line with Saudi Vision 2030, the Saudi Logistics Hub seeks to seize opportunities, set targets and outline strategies that generate improvements across infrastructure, processes and procedures while modernizing the governance of the logistics industry in light of greater

private sector participation.

His Excellency Eng. Saleh bin Nasser Al-Jasser, Minister of Transport and Chairman of the Saudi Logistics Hub, said: “The transport and logistics sector in Saudi Arabia is experiencing unprecedented growth, radically transforming its regulatory structure to create a favorable trade environment and drive economic development.

The Saudi Logistics Hub has fronted the country’s transformation into a leading logistics hub with multiple pro-investment reforms that encourage trade and transshipment movements.” www.cbnme.com

D e c e m b e r 2019

Kerry Logistics Launches Regional Operations In Bahrain

The Bahrain Economic Development Board (EDB) – the investment promotion agency for the Kingdom of Bahrain – has announced that one of Asia’s largest third-party logistics provider, Kerry Logistics Network, has launched operations in the Kingdom.

The Hong Kongheadquartered company, which manages 60 million square feet of logistics facilities over 53 countries and territories, investment in Bahrain is part of their regional footprint expansion plans to enhance access to key markets such as the Saudi market – the Gulf’s largest market.

As well as access to Saudi Arabia and the opportunity to scale across the wider $1.5 trillion GCC markets, Kerry Logistics cited the EDB as part of their decisionmaking process in launching operations in Bahrain.

Mr. Raymond Cheng, Director – Middle East & Africa at Kerry Logistics said: “Bahrain’s access to the region

is unrivalled, as is the support we received from the EDB. There is enormous potential to grow and scale our services across Saudi Arabia, the GCC and beyond. The Kingdom has acted as a commercial bridge between the East and the West for thousands of years. In today’s increasingly digital and hyper-connected world, it is the ideal regional logistics hub.”

Hussain Rajab, CoChief Investment Officer – Manufacturing, Transport and Logistics at EDB said: “Attracting a company of the size of Kerry Logistics required seamless collaboration and work between the Economic Development board Bahrain, the Ministry of Industry, Commerce & Tourism and the Ministry of Transportation and Telecommunication to support the company in every stage during the setup process. The rapid access to key decision-makers enjoyed by businesses, large or small, when looking to set up in Bahrain is unparalleled.”

ENOC Group launches ENOC Link

ENOC Group has launched ENOC Link, an innovative digital venture that enables refuelling services to businesses and fleet owners across the UAE. ENOC Link is created as part of ‘Next’, the Group’s digital accelerator programme announced earlier this year.

ENOC Link introduces a revolutionary business model that provides a convenient, reliable, and safe petrol and diesel delivery. ENOC Link fulfils the changing fuel service needs of businesses in the region. The service ensures easy access to quality fuels as and when required by businesses and in accordance with the highest safety standards.

ENOC Link’s operations are available to serve fuelling requirements of business and commercial fleets across the UAE. Logistics News ME | December 2019 | 47

Unsung Heroes

December 2019

Hweesan Teng

Hweesan Teng, Senior Corporate Communications Manager, GAC Group, tells us about her role and how she is helping to contribute to GAC’s success Goals and Objectives These are challenging times dominated by uncertainty and complexity. Amidst constant change, GAC Group remains a robust, consistent and professional service provider of global shipping, logistics and marine services. One with our customers’ interest at heart.

We demonstrate these in our integrated communications programme which aims to create a strong preference as our customers’ preferred partner to help grow their business. That’s why our brand promise is: Delivering your strategy.

As the brand custodian, my team develops a unified GAC identity that speaks in one voice and accurately reflects our ethics, values and promise of quality in everything we do to increase GAC’s desirability and equity.

Positioning GAC as one of the Market Leaders In a highly competitive marketplace, we have to differentiate ourselves and our brand to be heard, seen and felt amidst the noise in a saturated media environment. Today’s audiences have evolved and are more sophisticated, preferring a more nuanced approach beyond direct messaging.

Instead of showing ships or warehouses, a series of unexpected, even incongruous images plays a starring role in our current #GACdares branding campaign. These days the GAC brand image contains flying frogs, perfect soufflés, diamonds, wolves and more.

The playful use of quirky visuals to deliver our message makes GAC and our services stand out from the crowd. The unorthodox approach speaks of GAC’s willingness to go beyond the expected to serve our customers and how we embrace the disruptive changes in the markets we serve.

Attributes Corporate Communications for an organisation as diverse as GAC demands a certain amount of mental gymnastics.

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I have had to develop my own skillset to lead a global team, champion new ideas, nurture innovation, take calculated risks, creatively develop and manage complex long-term projects, and work across cultures. I have also had to hone my diplomatic and people skills to effectively negotiate with managers, external parties and key influencers.

Teamwork Quite simply, I couldn’t do my job without a team armed with great creativity, expertise, team spirit and the open-mindedness it takes to venture where we (and others) have not gone before. We have an impressive collection of multidisciplinary skills in our Corporate Communications department, and just as importantly, we have the support of Group Management.

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Jumeirah Beach Park

TR6 Dubai Canal

‫ﺣﺪﻳﻘﺔ اﻟﺼﻔﺎ‬ Safa Park

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‫ﺟﻮدﻟﻔﻴﻦ‬ Godolphin

‫ﻗﻨﺎة دﺑﻲ‬

‫ﺣﺪﻳﻘﺔ‬ ‫اﻟﺼﻔﺎ‬ Al Safa Park

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Creek/Al Jaddaf

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AL RASHIDIYA

Abra and Ferry timings: Routes

Timings

Frequency/Fares/Features

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

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

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

Ferry Round Trip – DFC

Every day 4:00 pm

Min. of 8 passengers

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

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

Save the date

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

December

3-6

December

4-6

Marintec China Shanghai, China This is Asia’s leading event in the global Maritime sector with new industry trends, new technologies and products, and business opportunities. The event provides the attendees with an opportunity to obtain latest market information in the maritime industry and meet with industry leaders and business partners face-to-face.

Digital Supply Chain Innovation and Humanless Warehouse Forum Singapore Digital Supply Chain Innovation and Humanless Warehouse Forum brings together senior supply chain logistics industry leaders, influential technologists, and directors from all over the region, for a high profile gathering of refreshing, new thought leadership and collaborative discussion the game changing impact of digital transformation and disruptive innovation in supply chain and logistics management.

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December

8-10

December

9-10

Future Supply Chain Management & Logistics Leaders Dubai, UAE Future Supply Chain Management & Logistics Leaders, Digital Transformation and AI powering the future of SCM and Logistics in an era of omnichannel and service delivery excellence.

Embracing the digital revolution for high impact, high value and high sustenance in the circular economy. Deep-dive into specific challenges in interactive, facilitated small group discussions. Take a seat next to thinkers, movers, and shapers and make valuable connections for future synergies.

World Aviation Safety Summit Dubai, UAE The World Aviation Safety Summit bringing together safety professionals and senior leadership from airlines, airports and aviation authorities, the World Aviation Safety Summit is the definitive meeting place in the Middle East for all those for whom safety is a critical function. The great opportunities for growth in aviation also mean significantly increased threats as budget and time are increasingly constrained. www.cbnme.com

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