Opinion
Trucks
Awards
Evolution of the regional freight industry
Renault sees potential in the thriving market
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September 2018
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Ceos
The coveted roundup of prominent logistics leaders from around the region
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Contents
Contents
Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
September 2018
R e a d a l l t h e l a t e s t i ss u e s o n Iss u u
Start 08 | News
Top
14 | Op-ed
Frost & Sullivan’s insight on the evolution of the Middle East logistics industry
Features 18 | CEO Powerlist
The 2018 rundown of top logistics leaders in the Middle East
46 | Awards preview Everything you need to know about the Logistics & Transport Awards 2018
48 | Heavy Trucks
Renault is confident of the region’s thriving market
Ceos Find us on youtube Subscribe to our YouTube channel to see things like site visits, interviews and much more
52 | Supplier News 54 | Diary 6 | Logistics News ME | September 2018
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E d i to r ’ s L e t t e r
S e p t e m b e r 2018
A note from the editor
Pa r o m i ta d e y @paromitadey1 |
linkedin.com/in/paromita-dey
In sports and in business, there are three types of people. Those who make it happen, those who watch it happen, and those who wonder what happened. If there is one thing to take away from the September issue of Logistics News Middle East, it’s the wonderful achievements of the CEOs who feature in our Top 25 CEOs list. It’s safe to say that this issue is one of the most ambitious we have created in 2018. Abu Dhabi Ports topped the list this year; all kudos to its CEO Captain Mohamed Juma Al Shamisi. In June 2017, Abu Dhabi Ports signed a 35-year concession agreement with Port of Fujairah, establishing Fujairah Terminals, a new operational arm wholly-owned by ADP. Furthermore, in July 2017, ADP developed Delma Port, one of the biggest in the Al Dhafra region in the UAE, with a budget of over AED170mn and a total area of 280,725sqm, with 58,500sqm of pavement for easy transport. The second and third spots were bagged by Emirates SkyCargo and DHL Express respectively. Emirates SkyCargo reported a revenue of AED12.4bn for the financial year
2017-18. This was an increase of 17% over the previous financial year. Whereas DHL Express witnessed an impressive 17% jump in revenues in the MENA region for 2017, making it one of the best regions for DHL Express’ global business. The list also features reputed companies like UPS, FedEx, GAC, Agility, Hellmann, Sohar Port, and DP World to name a few. I congratulate all the top leaders of the companies for making it to the Top 25 CEO list for 2018; a big round of applause for all the achievements. Not to forget, the first Logistics and Transport Awards are just around the corner. I urge all the industry players, whether big or small, to nominate their work to stand a chance to win the coveted trophy. Hurry up before the deadline ends on September 13, 2018. Paromita Dey Editor
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All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP
Logistics News ME | September 2018 | 7
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 Acquisition
DP World acquires Danish port logistics provider Unifeeder DP World announced the signing of the acquisition of 100% of the Unifeeder Group (“Unifeeder”) for €660mn from Nordic Capital Fund VIII and certain minority shareholders. Based in Aarhus (Denmark), Unifeeder operates the largest and most densely connected common user container feeder and an important and growing short-sea network in Europe, serving both deep-sea container hubs and the intraEurope container freight market. The group reported revenue of €510mn in 2017 and EBIT margins in line with other asset-light logistics operators. The acquisition is subject to regulatory approvals and expected to be earnings accretive in the first full year after completion. It will be financed from existing balance sheet resources and is expected to close in Q4 2018. The acquisition of Unifeeder will further enhance DP World’s presence in the global supply chain and broaden product offering to their customers – the shipping lines and cargo owners – with a view to ultimately reduce inefficiencies and improve the competitiveness of global trade. Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, said: “We are delighted to add the Unifeeder brand under the DP World umbrella, which supports our strategy to grow in complementary sectors, strengthen our
product offering, and play a wider role in the global supply chain as a trade enabler. “The ever-growing deployment of ultra-large container vessels has made high-quality connectivity from hub terminals crucial for our customers and Unifeeder is a best-in-class logistics provider in this space with a strong reputation in Europe. Our aim is to leverage on the in-house expertise of Unifeeder and to accelerate growth in this scalable platform to deliver value for all stakeholders.
8 | Logistics News ME | September 2018
“Unifeeder operates on the same common-user principle as DP World and adds to the group’s strong value proposition to international shipping lines and end cargo owners in making the global supply chain more efficient and cost effective.” Jesper Kristensen, CEO, Unifeeder, said: “We are excited to join the DP World Group as we believe that Unifeeder will benefit from the group’s significant expertise in the wider supply chain and excellent relationships
with shipping lines and end cargo owners. Not only is there commonality with our business models, but we also share the vision of serving our customers through removing inefficiencies and delivering sustainable shareholder value. We have enjoyed great success over the last five years under Nordic Capital’s ownership, and we believe that the Unifeeder brand within the DP World Group has the opportunity to accelerate growth, expand further and take the business to the next level.” www.cbnme.com
S e p t e m b e r 2018
The data
Safety
MAN Truck & Bus Middle East participates in road safety seminar
MAN Truck & Bus Middle East took part in a ‘Road Safety for Commercial Driving’ seminar hosted by the Dubai Chamber Sustainability Network. This initiative is the latest step in a range of MAN activities that focus on improving road safety. Their drive to share knowledge stems from the company’s drive to support the UAE’s Vision 2021 and help improve road safety across the UAE. The session, hosted by HansJoachim Neumann, head of training at MAN, placed a special emphasis on the importance of combining behavioural and technological measures to tackle the issue of accidents
involving commercial vehicles. On behalf of MAN, he identified supporting the introduction of road transport governance regulations, education for transport operators/ enforcement officers, and enforcing mandatory vehicle specification standards for new commercial vehicle deliveries as areas which could have a huge impact on improving road safety standards in the UAE, but also in the region as a whole Neumann highlighted that intelligent safety and driver assistance systems as well as on correct load positioning can have a significant impact on
Dubai Metro
making the roads a safer place. Nonetheless, based on MAN’s research and experience as a full transport solution provider, it has been discovered that the impact of driver education and training is hugely and commonly underestimated, as attendees to the seminar learned. However, through MAN’s ProfiDrive program, it is guaranteed that the functions of the vehicle are fully and correctly utilised; driver behaviour and productivity is improved; safety increases; fuel consumption reduces; and engine idle time and usage of breaks are decreased. It became evident that education is an integral part of road safety. “We are pleased to be able to present to the members of the Dubai Chamber of Commerce,” said Franz von Redwitz, managing director, MAN Truck & Bus Middle East FZE. “It is crucial to regularly conduct trainings and seminars as vehicle technologies are constantly changing and developing and professional drivers need to be able to adapt in order to ensure safe roads for all.”
37.17% Dubai Metro’s share in the total public transport ridership in H1 2018
103.292mn
Total passenger count in H1 2018
100.558mn
Total passenger count in H1 2017 In first six months of 2018, ridership stood at:
66.862mn Green Line: 36.43mn Dubai Tram: 3.207mn Red Line:
The interchange stations between the Red and Green metro lines recorded the highest number of riders, with Burjuman Station leading the way, followed by Union Station. Data provided by Roads and Transport Authority (RTA) Dubai.
Quick news
Oman’s Port of Duqm, which also serves as the owner of vast tracts of land earmarked for industrial and logistics activities port, will open a further 100ha of new real estate for investment.
UPS announces collaboration with Thor Trucks to develop and test a fully-electric class 6 delivery truck in Los Angeles, with the truck expected to be ready for deployment later this year.
Cargo volumes at Dubai World Central (DWC) grew to 475,190T in H1 2018, a year-on-year increase of 7.1% compared to 443,835T recorded last year, according to Dubai Airports.
B&H Worldwide secured a three-year contract to manage Travel Service’s entire logistics engineering supply chain, and will exclusively manage all AOG traffic, time-critical spares and routine shipments. Logistics News ME | September 2018 | 9
Regional News
DHL enters Ethiopian logistics market Ethiopian Airlines and DHL have agreed to form a joint-venture company to create what they call the leading cargo logistics provider in Africa, the companies announced. Named DHL-Ethiopian Airlines Logistics Services, the company will base its operations in Ethiopia and do business throughout Africa, thereby improving Ethiopia’s logistics infrastructure and connections. Under the terms of the contract, Ethiopian Airlines takes a majority stake in the joint venture and has agreed to provide regulatory and operational support, while DHL establishes air, ocean, and road freight connections between Ethiopia’s main trade hubs and the rest of the world. The companies have appointed Pramod Bagalwadi, a DHL veteran with more than two decades of experience in management roles within the logistics industry, to lead the new organisation. He will also continue to lead DHL’s industrial projects team in sub-Saharan Africa. “With its GDP growth, Africa is stepping into the spotlight as a production hub,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa. “Recent moves to open up the economy will continue to boost Ethiopia’s position as the fastest-growing economy in Africa, and under Pramod’s leadership, the company will be able to provide a scalable and durable logistics infrastructure to safely handle the sensitive needs of its core industries.” The joint venture builds on an extended partnership between Ethiopian and DHL Global Forwarding, which since 2010, has supported the maintenance, repair, and overhaul (MRO) operations of Ethiopian Airlines’ commercial segment, providing logistics services for aircraft parts, engines, and mechanical modules to textile, utensils, food, and beverages via air and ocean freight between Europe and Asia.
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Emirates SkyCargo transports 25T vaccines between Milan, Brazil
Emirates SkyCargo transported over 25 tonnes of vaccines from Milan to BH airport, Bello Horizonte in Brazil, on its Boeing 777 freighter aircraft. This is the largest shipment of vaccines that the air cargo carrier has transported on a single flight and it is also the first time that BH Airport has received such a large shipment of vaccines. Given the extreme sensitivity of the vaccines to temperature fluctuations, the entire shipment, equivalent to about 1.8 million doses, had to be transported in specialised containers to maintain a constant temperature of 5°C. A total of 36 Envirotainer containers – 35 RAP e2 and 1 RKNe1 containers – were loaded on the freighter at Milan, one of the designated airports in Emirates SkyCargo’s pharma corridor programme, which aims to provide supplementary protection for pharma product integrity during air transport. On arrival at BH Airport, the vaccines were removed from the containers and transported to the temperature-controlled storage areas of the airport. “Emirates SkyCargo is a global leader in the air transport of temperature sensitive pharmaceuticals and our commitment to transport
lifesaving medications securely is backed by our infrastructure including modern aircraft as well as our GDP compliant processes and our trained staff,” said Hiran Perera, Emirates senior vice president, Cargo Planning and Freighters. “We planned every detail of this charter very carefully with our partners from mid-July to ensure that the vaccines would be delivered carefully to Belo Horizonte airport.” “Negotiations for the arrival of this shipment included the visit of technical professionals who checked the storage conditions of our chambers considered to be the latest generation,” said Peter Robbe, Belo Horizonte airport Cargo manager. “To take advantage of the potential of the cargo logistics area of the Airport, BH Airport has invested in a new configuration of the cargo terminal and has installed two new refrigerated chambers to triple cool chain storage capacity to 3,350cbm.” On an average, Emirates SkyCargo transports about 80,000 pharma shipments every year, varying in size from small clinical trial shipments to pharma charters on freighter aircraft, across its network of over 160 destinations. www.cbnme.com
S e p t e m b e r 2018
Quote
Equipment
JLG upgrades LRT scissor lift series
We’re now once again a growth company and we expect to reach a revenue of $40bn [in 2018].” Søren Skou, CEO, A.P. Møller - Mærsk A/S Fares Foundation acquires 50pc stake in Tawseel UAE-based Fares Foundation for General Trading, a specialist in logistics and distribution through land, air and sea, said it has acquired 50% shares of Sharjah-based food delivery service group Tawseel Delivery Services. As per the agreement, Fares will be increasing the number of its fleet of delivery vehicles, enabling Tawseel to provide faster services to customers and expand to new markets in the UAE and the region. On the deal, Tawseel Founder and CEO Mohamed Al Musharakh, said: “I would like to thank the Sharjah Entrepreneurship Centre (Sheraa), which played a vital role in the establishment and success of Tawseel as well as many other start-ups and SMEs in Sharjah. Sheraa’s role is fundamental to fostering entrepreneurship among young investors in Sharjah, and to providing them with the knowledge and expertise to run their businesses successfully. “Acquisitions are among of the most significant processes that enhance business development, with companies merging their experiences and expertise to deliver quality services and products to their clients. An acquisition is also a means to enhance the competitiveness and sustainability of companies under open market policies.” Al Musharakh said this acquisition was an acknowledgement of Tawseel’s commitment to excelling in delivery and logistics by attracting the expertise of the best in the field. “We are confident that the move will develop our role and share in markets across the UAE and the region. It is a qualitative move, which we hope to leverage to expand our access to global markets,” he noted.
JLG Industries has updated its LRT series of roughterrain scissor lifts. The upgrades are the result of customer feedback aimed at improving the operability, serviceability, and efficiency of the machines, according to the statement from the company. “Our customers are looking for high-capacity rough-terrain scissor lifts capable of carrying more employees, equipment, and tools on the platform around the work site,” said Rafael Nuñez, senior product manager, scissor and vertical lifts, JLG Industries. “The latest upgrades to our LRT series offer faster serviceability and added durability to help customers get the job done faster, safer, and at a lower cost.” The upgraded series offers refined platform control joystick operation for smoother and more precise machine repositioning. In addition, control system upgrades provide the system with feedback to improve drive control proportionality. Left and right steer functions
now receive renewed digital inputs to ensure a higher level of functionality and improved response for the operator. Levelling jack performance has been improved to deliver more accuracy and quicker levelling speeds. The levelling jack interface is enhanced by integrating a dedicated levelling function within the current lift/drive switch. The updated 530LRT model will utilise proportional lift valves for the upper and lower lift cylinders, providing a smooth, controlled proportional ascent and descent. The upgrades also include smoother lift-up and lift-down operation. The complete range is powered by Tier 4 Final diesel engines, which do not require the serviceable emissions technology found in larger engine systems. Engine noise and vibration levels are reduced by engine isolators and improved door bumper locations. Other changes include relocation and rerouting of the angle tilt sensor so it’s less prone to damage as the scissor arms move.
Logistics News ME | September 2018 | 11
Regional News
Software
Danube Home invests in Infor warehouse management system
Infor, a provider of industryspecific cloud applications, announced that Danube Home has invested in Infor SCE – a leading warehouse management system (WMS) – and its Infor OS (operating services platform) to accelerate its digital transformation as the company expands across the region. Infor’s implementation partner involved in the implementation is Vinculum, the warehouse management and logistics experts. Dubai-based Danube – one of the emirate’s largest manufacturing and retail companies – sells furniture products, garden furniture, decorative ranges, furnishings, homewares, chandeliers, electrical goods and accessories, ceramics, and entire home range via its Danube Home showrooms. In an effort to enhance its supply chain, Danube Home chose Infor SCE to increase efficiency, throughput, and service levels of its operations – reducing costs and providing greater visibility for both clients and staff. Sachin Khosla, head of logistics at Danube Home, remarked: “Ultimately, increased customer satisfaction is what we are looking to achieve. From a management perspective, we have also invested in a dedicated resource to oversee fulfillment in our Danube Home showrooms. With a strong track record and reputation in the Middle East and around the globe, Infor was the right fit for us. Its warehouse management system required no customisation and could easily be configured to our needs. “The year ahead will be a
busy one for Danube Home, with plans to increase our presence across India and the Arabian Gulf over the next 12 months, so it was especially important to select the most capable partner possible.” This is the first deal between the companies and will see Infor support Danube’s plan for rapid regional expansion. Expected to go live in the UAE in August, Infor’s technologies will be rolled out to India, Kuwait, Bahrain, and Oman. “This is a fantastic win for Infor – Danube is such a respected brand in the region.
12 | Logistics News ME | September 2018
We anticipate a productive partnership moving forward as we accompany the group on its digital transformation journey,” said Alaa Hewedi, VP of sales, Infor, Middle East. Infor will provide Infor SCE Warehouse Management together with its Infor OS (operating services platform) which includes advanced capabilities for business intelligence; document management; and process integration. In addition, Infor OS incorporates Infor’s advanced middleware platform, ION, and Infor Ming.le, a centralised space
for collaboration, business process improvement, and contextual analytics. Danube wanted to pool all essential company data together to integrate strategic planning into an optimised distribution network. Danube will use Infor SCE to analyse information from across its subsidiaries to improve the use of assets across its network – inventory, space, and labor. Plus, with Infor SCE, the company can create, communicate, execute, monitor, and manage strategic business plans. www.cbnme.com
S e p t e m b e r 2018
Etihad, China’s JOCIC sign major development agreement A strategic partnership and mutual promotion mechanism was established as Etihad Aviation Group (EAG) CEO Tony Douglas and Jiangsu Provincial Overseas Cooperation and Investment Company Limited (JOCIC) chairman Luo Hua inked a memorandum of understanding (MoU) during Chinese President Xi Jinping’s three-day state visit to the UAE. The parties plan to cooperate on a wide range of areas in order to better support the development of the China-UAE
Industrial Capacity Cooperation Demonstration Park (China-UAE Industrial Park) in Khalifa Port, Abu Dhabi, including air logistics, procurement, mutual promotion on respective premises and digital channels. The MoU signifies that EAG will provide the companies investing in the China-UAE Industrial Park with preferred air transportation and cargo rates on the routes and services between China and other cities on Etihad Airways entire network. JOCIC and the companies of the Chi-
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na-UAE Industrial Park also designate Etihad Airways as their preferred airline. Under the agreement, EAG and JOCIC, the management company of the China-UAE Industrial Park, will jointly explore marketing opportunities
through appropriate promotional channels in China and the UAE to promote the China-UAE Industrial Park, Abu Dhabi’s friendly investment environment for Chinese companies as well as Abu Dhabi’s unique geographic advantages and Etihad Airways’ convenient network, which supports China’s Belt and Road Initiative. In addition, EAG will enjoy special rates on the products produced and manufactured by Chinese companies at the ChinaUAE Industrial Park.
Airlines
American Airlines Cargo shuttles 158,000T in Q2 2018 Driven by nearly 158,000 tonnes of freight, up from 144,000 tonnes the same time last year, American Airlines Cargo achieved record-setting growth in Q2 2018, while also posting a record month in June. Several key trends contributed to the record month and quarter. According to the company statement, e-commerce related movements continue to support significant growth across the network, particularly out of Asia, Europe, and Brazil, while pharmaceuticals, fruit, and flowers were the largest growing commodities throughout the timeframe. “Our entire team is thrilled to have achieved such a strong second quarter and June for 2018,” said Lori Sinn, managing director, Revenue Management, American Airlines Cargo.
An American Airlines aircraft being loaded with cargo
“This is a fitting indicator of the commitment of our people to excellent and timely service, as well as the growing number of customers around the globe who trust American to deliver their cargo quickly and reliably. We look forward to breaking more records in the future.” The airline recorded its best June performance in more than 10 years.
Logistics News ME | September 2018 | 13
Op-Ed
Opinion
Gopal R, global vice president, Transportation & Logistics Practice, Frost & Sullivan, discusses changing times in logistics and supply chain business in the region
Transformation today The logistics industry in the Middle East is evolving rapidly with infrastructure development, changing consumer preferences, emergence of free trade zones and industrial parks, changing industrial landscape, and expansion of trade. The geographical location on the trans-continental trade route facilitated the region’s focus on the development of logistics hubs for both domestic and transit goods. Governments have undertaken policy measures to reduce their dependency on oil exports by having a diversified economy strengthened by tax reforms, favourable FDI norms, and suitable environment for private sector investment. On the trade front, international cooperation and trade agreements are facilitating the promotion of regional trade growth. Industry growth is driven by emerging opportunities across several end-user verticals such as retail, construction, e-commerce, healthcare, automotive, food and beverages. Future growth prospects of the logistics industry rely on three important factors, namely, extent of success of economic diversification efforts, effective implementation of national logistics plans, and flow of investment into digital transformation initiatives undertaken by both public and private sectors. In essence, development of logistics infrastructure with focus on improving global connectivity with multi modal logistics facilities, and encouragement of business process digitalisation for the development of innovative logistics offerings will play a key role in the transformation of logistics industry in the region. Economic diversification initiatives Middle Eastern countries are highly dependent on oil exports which make them vulnerable to crude oil price fluctuations. Recent slumps in oil prices forced countries to focus on economic diversification initiatives to reduce dependence on oil revenue. Economic diversification initiatives undertaken by various governments in the region include Saudi Arabia’s Vision 2030, UAE Vision 2030, Abu Dhabi Economic Vi-
14 | Logistics News ME | September 2018
Gopal R
sion 2030, New Kuwait 2035, Qatar National Vision 2030, and Jordan’s Vision 2025, which are in turn, supported by the individual government’s medium term plans such as Saudi Arabia’s National Transformation Plan 2020, UAE’s National Agenda 2021, Qatar’s anticipated National Development Strategy 20172022, and Kuwait Development Plan (KDP) 2015-20. These initiatives focus on diversifying into mining, manufacturing, and service sectors by streamlining policies for private investments. Saudi Arabia is expected to increase its investment in “economic cities” in addition to the development of economic and innovation zones. For instance, NEOM is an independent global hub for trade, innovation, and knowledge zone with an estimated investment of over $500bn and will focus on nine specialised investment sectors such as energy and water, mobility, biotech, food,
technological and digital sciences, advanced manufacturing, media, and entertainment. High dependence on oil exports revenue has affected government investment in economic diversification efforts in recent years. Reforms and liberalisation initiatives are expected to increase funding to some of the major infrastructure projects under development. In the UAE, Dubai Industrial Strategy 2030 focuses on development of industries such as aerospace, maritime, pharmaceuticals and medical equipment, aluminum and fabricated metals, fast moving consumable goods (FMCG), and machinery and equipment. This will transform the manufacturing base and increase the need for both import of components and export of finished goods from this region. Expo 2020 is expected to fuel the economy with $23.4bn, which would reinforce the
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S e p t e m b e r 2018
growth of suppliers, transportation and logistics, and construction companies. Expo 2020 aims to strengthen transportation and logistics infrastructure by placing thrust on manufacturing and exports growth. As a result of these initiatives, the industry landscape is expected to undergo transformation and play a key role in shaping the region’s logistics industry. National logistics priorities Recognising the importance of logistics cost in overall competitiveness, governments in the region have given higher importance to the development of logistics infrastructure, such as port modernisation, construction of modern warehouses, and improvement of road and rail infrastructure. Policies are streamlined to remove inefficiencies associated with customs clearance, to minimise delays in border clear-
ance and harmonise trade regulations. National development initiatives, such as UAE Vision 2021, Dubai 3D Printing Strategy, Dubai Autonomous Transportation Strategy, Dubai Smart City, and modernisation of ports are some of the key initiatives that are likely to strengthen logistics infrastructure. Logistics Strategy (SOLS 2040) of Sultanate of Oman is focused on improving the national transportation infrastructure by developing freight corridors in the region in a bid to support the movement of goods from Oman ports to the Gulf region. As part of Vision 2030, Saudi Arabia is keen on improving logistics, and to that end, it has developed a nine-point strategy to transform the sector. The transformation strategy includes the adoption of electronic systems to streamline the exports and imports process, development of integrated transport infrastructure, and improve-
ment and liberalisation of logistics and special economic zones. The infrastructure development plan encompasses the construction of Saudi Land Bridge Railway Project to link the East and West coasts by connecting Riyadh and Makkah, expansion of national broad-gauge rail network and the North and South rail corridors. New rail developments are expected to reduce the nation’s dependency on road as a primary mode of transportation within the region, and also help in minimising the time required to transport goods from one coast to another. In addition, construction of new multi modal logistics terminals is likely to fulfill the growing demand for sea-to-air and railto-road connectivity. Increased economic and trade cooperation with China is expected to lead to harmonisation of national development plans with the One Belt, One Road (OBOR) initiative. China is expected
Logistics News ME | September 2018 | 15
Op-Ed
S e p t e m b e r 2 018
to support the development of industrial parks and economic and trade cooperation zones. With these development initiatives, freight transportation sector is expected to undergo a transformation driven by investments in port modernisation, rail developments, and airport expansions. Role of digital technologies Digital transformation initiatives undertaken in the region include creation of programmes and platforms to encourage application of digital technologies in both government and private sectors. The UAE and Saudi Arabia are emerging as front runners in technology adoption. Digital transformation initiative under National Transformation Programme 2020 of Saudi Arabia emphasises creation of common platforms, investment in national digital assets, and launching digital initiatives in many key sectors aligning with the objectives of Vision 2030. National Digitisation Unit (NDU) in Saudi Arabia is expected to play an important role in economic transition. As part of digitalisation efforts, the UAE Government has created ‘UAE Strategy for Artificial Intelligence (AI)’ to accelerate innovation in service offerings in sectors such as transport, health, technology, energy, and education. Dubai Smart City, Smart Port Development, and Expo 2020 initiatives are expected to strengthen digital infrastructure and accelerate technology adoption in the region in the medium term. Logistics start-up ecosystem has benefitted from government initiatives, increased internet penetration, and mobile technologies. Digital platform based freight and transportation solutions are being offered by logistics start-ups across the region, in the areas of freight transportation, e-commerce logistics, and last mile delivery solutions. Advancements in digital technologies are expected to influence manned and unmanned connected autonomous transportation, connected physical transportation infrastructure driven by the application of smart sensors. In addition, automation, robotics, autonomous vehicles, and big data analytics are expected to either transform or disrupt logistics service offerings. Modern warehouses are becoming automated with more use of robotics, and companies are experimenting with use of autonomous vehicles and drones for efficient and faster last mile deliveries. Alternate fuel and electric vehicles, 3D printing, drone deliveries, and hyperloop technologies are being tested by various business sectors and government agencies. As part of streamlining the process, high priority is given for adoption of digital technologies in
16 | Logistics News ME | September 2018
government services, customs clearance, freight transportation, and e-commerce logistics. Thus, digital transformation in the logistics industry is expected to be driven by rapid increase in technology adoption across the region. Growth insights for strategies Middle East logistics industry is still a fragmented market with small and medium-sized service providers competing against regional and global logistics service providers. Number of logistics start-ups focusing on new IT based online solutions would increase competition in technology based service offerings such as platform based rate matching and freight forwarding services. Limited logistics infrastructure in suburban areas, plus harsh environment with extremely high temperatures is likely to have an adverse impact on the cost of service offerings. Cost of investment in digital technologies and lack of compatibility between modern solutions and legacy systems will pose a hurdle for technology adoption among small and medium service providers. These constraints should be taken into account while developing medium term growth strategies.
In an era of rapidly changing business environment driven by political, economic, social and technological factors, adoption of a medium term roadmap for growth has become critical across all business segments. As supply chain operations become increasingly complex due to globalisation and technology developments, companies are expected to depend on logistics service providers to fulfill customer needs. Capacity to service at the regional level is emerging as a key competitive parameter, and will help logistics companies to differentiate their service offerings. Technology is also expected to play a key role due to increasing level of demand for solutions with supply chain visibility, supported by service offerings like monitoring, tracking, and tracing of cargo. As the region is one of the major transhipment hubs, significant part of value added services is expected to be focussed on packing, labelling, assembling and IT based solutions as part of their service offerings. Constant evaluation and redesign of service offerings will become an essential part of strategy formulation to remain competitive and gain market share in the region.
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S p e c i a l F e at u r e
Top
Ceos 18 | Logistics News ME | September 2018
S e p t e m b e r 2018
The Middle East is seeing a significant rate of growth and investment in its logistics sector, given the economic initiatives and technology drive embraced by countries like the UAE and Saudi Arabia. Industries like automotive, machinery and equipment, foodstuffs and perishables continue to boost the requirement for experts who can handle the transportation and storage of the goods from point A to B, and the number of success stories in this field has grown over the past year. Logistics News Middle East returns once again with a comprehensive list of the top logistics leaders in the region, who have ensured that when it comes to supply chain woes, they have the one-stop solution.
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Logistics News ME | September 2018 | 19
S p e c i a l F e at u r e
Abu Dhabi Ports’ contribution to the UAE GDP grew to nearly 61% in 2017.
Captain Mohamed Juma Al Shamisi
CEO, Abu Dhabi Ports
Over the past year, Abu Dhabi Ports has invested in truly breakthrough projects with the aim of benefitting the wider trade and logistics community. These cover a vast array of achievements including digitalisation, development of port infrastructure to accommodate increased volumes, and attracting foreign direct investment into the UAE. In June 2017, Abu Dhabi ports signed a 35year concession agreement with Port of Fujairah, establishing Fujairah Terminals, a new operational arm wholly owned by Abu Dhabi Ports. Furthermore, in July 2017, Abu Dhabi Ports developed Delma Port, one of the biggest in the Al Dhafra Region in the UAE, with a budget of over AED170mn and a total area of 280,725sqm, with 58,500sqm of pavement for easy transport. Their work included a 300m berth for general break bulk cargo vessels, 104 boat parking berths, two landing ramps for pas-
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senger vessels up to 100m in length, and an ADNOC Marine Fuelling Facility. This was soon thereafter followed by a 50year agreement signed with the Jiangsu Provincial Overseas Cooperation and Investment Company Limited (JOCIC), bringing investments of AED1.1bn into Khalifa Port Free Trade Zone (KPFTZ). In the latter half of 2017, Abu Dhabi Ports saw a number of achievements, including turning Khalifa Port into the first ever port in the Gulf region to have Capesize vessel capacity through their partnership with Emirates Global Aluminium. Plus, the organisation launched their digital platform, Maqta Gateway Port Community System. Vital agreements were signed with Jalboot Marine, as well as Abu Dhabi Airports. November 2017 witnessed COSCO Shipping Ports Company Limited breaking ground in Khalifa Port, signalling the
start of construction of their new container terminal which will increase Abu Dhabi Ports’ capacity to 6 million TEUs. In addition, a new contract was signed with COSCO to develop the largest container freight station in the region. Captain Mohamed Juma Al Shamisi, CEO, remarks: “As CEO of Abu Dhabi Ports, I have had the privilege of seeing the progression of our company to a self-financed entity, that not only enjoys excellence in performance itself but also facilitates and enables trade in the UAE. We have transitioned from operating one port at Mina Zayed, to developing and operating one of the world’s leading ports as well as Kamsar, an international port. “Our strategy has been one of diversification and consistent attention to the demands of the market and changing industry, that have enabled us to be established as a partner of choice for stakeholders and investors.”
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S e p t e m b e r 2018
SkyCargo has partnered up with Alibaba’s logistics arm, Cainiao Smart Logistics Network, to jointly facilitate the delivery of cross-border parcels.
Nabil Sultan
Divisional senior vice president, Cargo, Emirates SkyCargo Emirates SkyCargo extended its leadership over the international air cargo logistics industry with a number of milestones in product development, service delivery, as well as industry partnerships. The cargo goliath reported a revenue of AED12.4bn for the financial year 2017-2018. This was an increase of 17% over the previous financial year. During the same time, Emirates SkyCargo transported 2.6 million tonnes of cargo — an increase of 2% over the last year. Freight Yield per Freight Tonne Kilometre grew by 14% during the financial year ending March 31, 2018. This was reflective of the positive market environment for the industry. Over the last financial year, the company launched Emirates Fresh, which is Emirates SkyCargo’s specialised transportation solution for transporting perishables such as fruits, vegetables, flowers, fish and meat. Emirates Fresh is supplemented by other world-first equipment such as
the Emirates Fresh Ventilated Cool Dolly. SkyCargo also signed the first of its kind partnership in the industry with Cargolux. Through block space and interline agreements, Emirates SkyCargo and Cargolux are able to use each other’s’ networks, permitting access to routes where they do not currently operate individually, and thus offering their customers a global reach. SkyCargo was also a part of a historical moment for the UAE, when they helped transport KhalifaSat to South Korea for testing prior to space launch. Given the extremely sensitive nature of the shipment, teams from Emirates SkyCargo and Mohammed Bin Rashid Space Centre (MBRSC) worked together from November 2017 for about four months to prepare and plan all the steps in the movement of the satellite from Dubai to Incheon airport. Plus, in November 2017, Emirates SkyCargo entered into an understanding with Dubai Com-
merCity to develop new solutions for the global e-commerce industry and to strengthen Dubai’s position as a global hub for e-commerce. Cargo destinations in 2017 were expanded to Luxembourg and Maastricht, with belly hold cargo capacity commenced for Zagreb and Newark. Nabil Sultan, divisional senior vice president, Cargo, says: “In Emirates SkyCargo, we encourage our team members to keep thinking about how business processes can be reinvented to deliver more value to the end customer. We just completed our first “Make Your Mark” competition for staff to submit innovative ideas around impact on environment, business process improvements, and service delivery to customer. “Our people are the primary reason behind our successful position in the industry. You have to support staff and create an environment that fosters a culture of innovation and belonging.”
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I trust in the experience and knowledge of my DHL team and give them the empowerment and means to perform their roles to the best of their ability.�
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S e p t e m b e r 2018
Nour Suliman
CEO, DHL Express Middle East and North Africa (MENA) DHL Express witnessed an impressive 17% jump in revenues in the MENA for the year ending 2017, making it one of the best regions for DHL Express’s business. According to the company, this was the result of the growth in its Time Definite International (TDI) shipments as well as the e-commerce drive which has been a star player for DHL Express across the region, marking a phenomenal 45% annual growth since they launched their On-Demand Delivery service (ODD). The company’s regional revenue for 2017 stood at AED2.975bn. In November last year, DHL Express MENA inaugurated their $18mn revamped DHL Hub in the Cargo Terminal at Dubai International Airport. This expansion nearly doubled building space as well as the company’s capacity to process over 120,000 shipments per day; that’s around 5,000 shipments per hour. The facility offers holistic air and landside distribution services, onsite import and export support. Refurbishment work on the DHL Kuwait premises has been completed as well, and plans to open up a new country office in Jordan as well as Abu Dhabi and Dammam are underway. DHL recently launched its global digital campaign ‘Where Everything Clicks’, which
gathers data using advanced market intelligence tools that can help web sellers access the global online marketplace, enhance their international e-commerce shipping capabilities, and advises them on how to target internet-savvy buyers like millennials. Nour Suliman, CEO, DHL Express MENA, comments: “Our focus moving forward is to strengthen our footing in the e-commerce segment and grow our market share with new products and services to leverage on the fastpaced trends for cross-border shipments, which is expected to grow exponentially.” He further adds: “Since taking over as CEO [in 2011], my main focus has been to steer DHL’s regional investment and expansion strategy with clear targets to strengthen the region’s connectivity to the global marketplace. We’ve committed over $235mn in expanding DHL’s facilities and growing reach, capacities, and logistical capabilities to enhance transit times and customer service. “I trust in the experience and knowledge of my DHL team and give them the empowerment and means to perform their roles to the best of their ability. I am a phone call away from everyone that works with me, I encourage staff participation and the exchange of ideas.”
DHL Express and Al Nabooda Automobiles recently introduced the allelectric Volkswagen e-Golf for delivery services, a first in the region.
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Sultan Ahmed Bin Sulayem
Group chairman and CEO, DP World
DP World reported total revenue of $4.7bn and total profit of $1.2bn in 2017, marking increases of 13.2% and 7.3% respectively from 2016. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 9.1% with an adjusted EBITDA margin of 52.4%, providing earnings per share of ¢145.6. Gross throughput rose 10.1%, with the company adding 3.6mn TEU of new gross capacity last year and consolidated capacity increasing by 7.3 mn. Developments last year included the acquisition of Embraport in Brazil’s Port of Santos, with the terminal being rebranded as DP World Santos, and partnering with the Indian government-sponsored National Investment and Infrastructure Fund to establish an investment platform, with equity up to $3bn, to obtain assets and develop projects in India’s ports, transportation and logistics industry. Notable regional results for 2017 included the company’s Asia-Pacific and Indian subcontinent region which recorded a 102.1% increase in consolidated throughput and its Australia and Americas region, where the profit share from equity-accounted investees rose by 332.1%. Sultan Ahmed Bin Sulayem, group chairman and CEO, remarks: “The recovery of global trade in 2017 outperformed previous expectations, despite continuing challenges to the global macroeconomic environment, including persistently low commodity prices and geopolitical tensions. Trade has benefitted from the weaker US dollar and stronger economic growth in the Eurozone, US, Japan, and emerging Asia along with robust growth in China. Our portfolio has not only benefitted from the improved trading environment but also market-share gains from the new shipping alliances and continues to deliver ahead-of-market growth.”
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Last month, DP World acquired 100% of the Unifeeder group for €660mn.
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S e p t e m b e r 2018
We have seen sustained double-digit growth in Sohar for over 12 years now, and we are 100% on track for continued expansion.”
Mark Geilenkirchen CEO, Sohar Port and Freezone Located in the Sultanate of Oman, Sohar Port and Freezone handled an average of over one million tonnes of cargo each week in 2017. Container traffic was up 36% from 2016 and dry bulk throughput increased by 25% yearon-year. The port also received 3,075 vessel calls in 2017, an increase of 17%. In 2017, Sohar established Oman`s first ever terminal dedicated to the handling of agricultural bulk, a 40ha food cluster, which will include a major flour mill, a sugar refinery, and a grain silo complex. Furthermore, following the Omani government’s strategy of economic development, a massive expansion programme was announced for the port and freezone. Called Sohar Port South, an additional 200ha of land is planned to be added to the port’s present capacity of 2,000ha. The government is also working on a plan to build a large modern au-
In July 2018, Sohar Port and Freezone signed a contract with Nakheel Environment & Industrial Solutions, to enhance the environmental monitoring of their operations. tomated container terminal at the port, which will have a capacity to handle five million twenty-foot equivalent units (TEUs) per annum. In April this year, a JV comprising Bel-
gium-based marine engineering firm Dredging International NV, and Abu Dhabi contractor, Earth Moving Worldwide, was awarded a $24mn for the development of Sohar Port South. CEO Mark Geilenkirchen explains: “We have seen sustained double-digit growth in Sohar for over 12 years now, and we are 100% on track for continued expansion. Our role is to ensure that world-class infrastructure is in place before our incoming tenants require it, so they do not experience delays when commencing production. In September 2017, Sohar Port and Singapore-based oil trader Trescorp signed a $600mn deal to develop a 45ha terminal for the handling, storage, and blending of crude oil, fuel oil, and diesel at the port. More so, Indian cotton yarn manufacturer, SV Pittie Group, initiated work on a $300mn cotton plant, to be operated as SV Pittie Sohar Textiles FZC-LLC. The plant will import 100,000 tonnes of cotton fibre annually through Sohar Port, and produce around 75,000 tons of finished yarn each year. In 2018, an agreement was signed with Sohar Flour Mills (SFM) for the lease of a 10ha plot within the port area for the construction and management of 12 grain storage silos, each boasting a storage capacity of 13,000 tonnes. This was followed by Marafi Sohar, a newly established subsidiary of Asyad, signing an agreement with Sohar to develop and operate a new aggregates terminal at Sohar Port.
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Agility is a part of the development team behind the planned establishment of a logistics hub in East Port Said in Egypt.
Tarek Sultan CEO and vice chairman, Agility Agility reported a global revenue of KWD1.407bn for the fiscal year 2017, a 9.5% growth as compared to 2016. The Middle East’s contribution to the total revenue is approximately 25%, including the Global Integrated Logistics (GIL) and Infrastructure companies. Net profit stood at KWD68.5mn, an increase of 16% from KWD59.1mn in 2016. Tarek Sultan, CEO and vice chairman, says: “When it comes to our core business, the last year has been marked by an expansion of our activities in the GCC and Africa, launching new services and striking strategic partnerships across the region.” Agility substantially expanded their truck
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fleets in Abu Dhabi, Kuwait and Bahrain, in addition to a $10mn investment to expand the regional logistics hub in Bahrain, increasing storage capacity by an additional 10,000sqm, growing the workforce by almost 25%. Agility also opened a state-of the-art training facility, known as the Center of Excellence, at the Rumaila Energy Park in Southern Iraq. “What I really want to call out is our focus on innovation underpinned by technology,” highlights Sultan. “We are using the power of technology to open new market segments, serve customers more effectively, run our business more efficiently, and drive innovation. We are serious about becoming the digital leader in our industry.”
Agility introduced their digital freight forwarding service, Shipa Freight, with the aim of offering a concise solution for freight bookings, tracking, and payment. Further, Agility has pushed to partner with supply chains that are reshaping the future of logistics. One such company is Homoola, a Saudi startup that facilitates ease of transactions between shippers and carriers. Plus, Agility is piloting new projects with partners. For example, Agility is collaborating with a Maersk-IBM solution aimed at providing more efficient and secure methods for conducting global trade by using blockchain technology to manage and track container shipments.
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S e p t e m b e r 2018
Bengt Ekstrand Group president, Gulf Agency Company (GAC) A pioneer of supply chain logistics in the Middle East, GAC saw healthy growth in its revenue and portfolio in 2017, with one of their key highlights being the opening of our newest purpose-built contract logistics facility, in Dubai South. GAC now boasts of a total capacity in Dubai of 170,000 pallet positions In 2017, GAC was appointed by an international oilfield services company to set up and run a supply base for its offshore drilling and testing programme in the Middle East. Furthermore, in late 2017, European bulk logistics provider RB Logistics and GAC Abu Dhabi signed a two-year contract to provide a complete logistics service package covering freight services, transportation, warehousing, and handling of talcum powder from Italy to Ruwais. Says Bengt Ekstrand, group president: “To reflect our philosophy of constant examination and adjustment of the way we work, the GAC brand underwent something of a face lift at the beginning of 2018. It introduced unexpected images, clean visuals, and a clear message about the range of shipping, logistics, and marine services we offer, as well as a series of adverts none of which feature a ship, port scene or warehouse. “We’re using visual metaphors to introduce a surprise, much as the sheer range of services we offer might surprise some who think of GAC ‘only’ as a ship agent or freight forwarder. We’re more than that – we’re pioneers, prepared to take a chance and try the untested.” In early 2018, GAC Abu Dhabi helped ensure smooth logistics operations for the Special Olympics Middle East and North Africa (MENA) 9th Regional Games, that took place in Abu Dhabi. Staff clocked up more than 3,000-man hours over three weeks to ensure the success of the event. The company will also be providing storage solutions for some of the cargo until the Special Olympics World Summer Games, hosted by Abu Dhabi, in 2019. GAC was also selected as the official logistics partner for the second time in a row at the Volvo Ocean Race— the only company in the history of the race. At every stopover as the
GAC Dubai recently received the ISO 13485:2016 Medical Devices Management System certification. competing yachts circumnavigated the globe, GAC was at hand with two on-the-ground teams travelling in convoys that leap-frog the route to ensure that everything was received, ready and set up when the teams arrived, working with GAC offices around the world. “The past year has been a time of intense assessment and reassessment of what
we do and how we do it in a bid to better serve business – both ours and our customers,” adds Ekstrand. “We know that simply being in business for more than 60 years and continuing to win awards is no cause to rest on our laurels. We are always seeking out better ways to work and stand out from our competition.”
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Moving forward, we will continue to raise the benchmark for quality while looking for new ways to exceed our customers’ expectations.”
Baheej Al Biqawi
CEO, Almajdouie Logistics Saudia Arabia-based Almajdouie Logistics renewed most of their ongoing contracts, in 2017, including their 21-year partnership with Coca-Cola for another five years, and their partnership with Hempel for another three years. Petrochemical continues to be a successful sector for the company, with major ongoing contracts with Yanpet, Natpet, Ibn Zahr, Saudi Kayan, Al Waha, Petrokemya, Maaden, Chemanol, and Petro Rabigh. Furthermore, joint venture, Almajdouie De Rijke Logistics (MdR), continues to manage logistics operations in Sadara and Yansab in KSA. Almajdouie was awarded a major transportation contract to deliver Borouge products to GCC countries, out of Abu Dhabi. Annually, they handle almost 45,000 tonnes, making between 150-200 trips monthly. The company also handled around 25,000 freight tonnes of building material for the Has-
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Almajdouie Logistics recently signed a strategic agreement with Egytrans.
syan clean coal power station, an ultra-supercritical power plant being developed in the UAE. Upon completion, the project is set to be the first coal-based power plant in the region. Last year, Almajdouie delivered wagons for the eagerly anticipated Haramain High Speed Rail Project. Cargo was transported from Jeddah Islamic Port to Rabigh Work Station-II,
covering a distance of approximately 110km, with a total volume of 18,168cbm. In Saudi Arabia alone, Almajdouie handled a total of 302,682cbm of material for projects like Fadhili gas plant, Yammam Cement and Power Plant, Sepco, Jazan Gas Project, and the Jazan refinery project. Baheej Al Biqawi, CEO, mentions: “One of our biggest recent milestones is our partnership with GEFCO, a global supply chain solutions provider and the European leader in finished vehicle logistics. We are now the company’s agent in Saudi Arabia, which opens up a number of exciting opportunities for us. Initially, we will handle 50,000 vehicles annually, but we expect this figure to double or triple in the coming years.” Biqawi further adds: “Moving forward, we will continue to raise the benchmark for quality while looking for new ways to exceed our customers’ expectations.”
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S e p t e m b e r 2018
The Middle East continues to be an exciting growth market for UPS, particularly due to our appointment as Official Logistics Partner to Expo 2020 Dubai.”
Rami Suleiman
President – Indian Subcontinent, Middle East and Africa (ISMEA), UPS In the region, UPS continues on a strong growth trajectory in line with its global performance, which saw an 8.2% increase in total revenue to $65.9bn on shipment growth and yield expansion. UPS’s international segment generated four consecutive quarters of doubledigit export growth in 2017. Regional president, Rami Suleiman, remarks: “We believe that our growth is directly linked to the investment we have made to maximise capacity and modernise our network for improved performance with a broad UPS portfolio. In ISMEA, we continued to expand our footprint with particular growth in the industrial manufacturing, high tech, healthcare, e-commerce and retail sectors.” UPS ordered 28 new Boeing 747-8 cargo jets and four new Boeing 767 aircraft to provide additional capacity, in response to accelerating demand for the company’s air service. All of the new aircraft will be added to the existing
In February 2018, UPS introduced a non-stop daily flight between its Louisville hub and Dubai.
fleet and no existing aircraft are being replaced. Key achievements for UPS in the past year included the launch of a daily non-stop flight from its Worldport global air hub in Louisville, KY., to Dubai, UAE, reducing time-in-transit between the United States and key destinations in the Middle East by a full business day. The flight, operated with one of UPS’s new 747-8F
freighters, is part of the build out of UPS’s smart global logistics network and took place as the company plans for its role as Official Logistics Partner for Expo 2020 Dubai. In April 2018, UPS exceeded its goal of educating new drivers on safe driving techniques by 44%, one year after its initial launch in the UAE. The initiative is part of the UPS Road Code safe driving program, set up in collaboration with Emirates Foundation. Suleiman adds: “The Middle East continues to be an exciting growth market for UPS, particularly due to our appointment as Official Logistics Partner to Expo 2020 Dubai. This partnership allows us to further establish Dubai and its neighboring countries as a transportation hub for global commerce connecting trade from all corners of the Middle East to China, Africa, Europe and the U.S. This will be a major focus for our business in the coming months and years.”
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Madhav Kurup CEO — Middle East, North Africa and South Asia (MENASA), Hellmann Worldwide Logistics Hellmann Worldwide Logistics’ regional division recorded a revenue of $350mn in the 2017 fiscal year. According to the company, 20% of the growth was driven by Saudi Arabia and the UAE, plus key projects such as the further expansion of healthcare vertical with Hellmann Calipar Healthcare Logistics (HCHL) and the newly formed joint venture, Hellmann Indu Chemical (HIC), both in the UAE. 2017 saw the company’s third expansion of their healthcare facility, plus the launch of a new fashion joint venture, Hellmann MAS Supply Chain (HMSC) in Sri Lanka, as well the creation of an integrated e-commerce product for Middle East. HMSC will provide its services to MAS as well as Hellmann’s existing contract logistics customers. Services offered by HMSC, which include warehousing, value added services such as re-packing, labelling, ratio packing, and 4PL logistics services, will also be offered to other potential customers in Sri Lanka. Madhav Kurup was appointed as the regional CEO for Middle East in 2008, and is credited with turning around the organisation from a loss-making entity to one of the largest and profitable organisations in the Middle East, by creating leadership positions in automotive and healthcare verticals. Presently, Hellmann employs more than 2,000 employees within Middle East and South Asia. According to Kurup, a good leader is one who is humble, visionary, with great people skills, who has the ability to translate his vision into reality.
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S e p t e m b e r 2018
E-commerce is still a key driver of growth for our express business and we are working to ensure growth in terms of volume and expand geographically.”
Bashar Obeid
CEO, Aramex
Aramex’s 2017 full year global revenues reached AED4.721bn; up by 9% compared to AED4.343bn in 2016. Net profits in 2017 increased by 2%, to AED435.4mn, compared to AED426.6mn in 2016. The company’s strong results were mostly driven by the surge of cross-border e-commerce activities globally, which continue to fuel the growth of Aramex’s International Express business. According to CEO, Bashar Obeid, the focus in 2017 remained on transforming the business into a technology-driven enterprise; boosting investments in last-mile capacity solutions; redesigning operations and creating a more efficient and customer-centric business model; and simplifying complex operational processes. Bashar Obeid has been a part of the Aramex team since 1993 in various leadership po-
sitions. Appointed as the CEO in November 2017, he was initially the chief financial officer, and has led the team through projects including the public offering on the NASDAQ stock exchange and later on the Dubai Financial Market (DFM). “Since assuming the role of CEO, my focus has been on ensuring that the strategic transformation plan’s objectives are met,” says Obeid. “At the heart of this plan is investing in upgrading our technology infrastructure and capabilities. Through this transformation, we hope to improve efficiencies, and simplify processes across all our business lines. “E-commerce is still a key driver of growth for our express business and we are working to ensure growth in terms of volume and expand geographically. Another focus for me has been on enhancing our B2B and freightforwarding capabilities.”
Following a recently signed agreement, Aramex will now offer parcel services via Al Dawaa Pharmacies in Saudi Arabia.
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S e p t e m b e r 2018
A business leader, I believe, is ultimately responsible for building a great team.”
Abhishek Ajay Shah
Co-founder and group CEO, RSA Global 2017 was visibly a busy year for RSA Global. The company witnessed revenue growth of 23% in the fiscal year, with a number of key tie-ups and business expansion drives throughout the period. RSA Cold Chain was launched in April 2017, followed by the consolidation of RSA Logistics and its affiliated group of companies to form RSA Global. The structure brought the group’s segment specific, end-toend logistic solutions for the food and beverage, FMCG, power and energy, chemical and petrochemical, and finished vehicle industries under one roof. The transportation division was launched around the same time. RSA National, the company’s joint venture with National Air Cargo, was finalised in November 2017, with the aim to expand and strengthen RSA Global’s freight forwarding and multimodal capabilities. This was soon followed by a key sustainable initiative taken forth by RSA Global, which saw SirajPower, a comprehensive turnkey solutions provider related to tapping solar energy, install the first
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solar rooftop in Dubai South at RSA’s flagship facility. In 2018, RSA Global acquired a majority stake in India-based Meesan Logistics, to jointly support their expansion plans in the Indian market. Further development plans this year include the opening of a new chemical warehouse in RSA-TALKE’s integrated chemical logistics hub in JAFZA, opening of RSA National’s air cargo terminal, plus further growth in the Indian market. Co-founder and group CEO, Abhishek Ajay Shah, says: “A business leader, I believe, is ultimately responsible for building a great team. The biggest asset for an organisation is after all the people. And as former Navy Sealturned-author Jocko Willink says, “there’s no bad team, only bad leaders.” At RSA we encourage “extreme ownership” and that has been the only way we have been able to deploy our people resources to spread our proverbial wings and offer services to our customers from a much wider scope.”
The solar rooftop installed at the RSA Global HQ will provide an alternative source of electricity for the next 15 years and generate 90% of the required energy.
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Walid Khoury
Managing director, ALS Logistic Solutions In 2017, ALS Logistic Solutions saw a number of key projects added to its evergrowing portfolio. These included Dubai Duty Free warehouse phase III expansion; fully automated pharma warehouse for Al Dawaa in Riyadh; fully automated cargo terminals in Muscat and Salalah; a turnkey project for the cargo terminal in Dammam; automated high bay warehouse for BFS Bangkok, ULD handling system for WFS Frankfurt, and conveyor system for FedEx Dubai. Walid Khoury, managing director, says: “ALS’ business nature defines big scale of projects; we specialise in turnkey solutions in automation of material handling and air cargo systems. Our experience allows us to execute the works with holistic approach looking forward to potential customer growth and long-term perspectives.” Khoury highlights that ALS has already signed a few pivotal projects that will keep them busy well through 2019. He adds: “The past years have shown greater demand for warehouse automation and surely for car park systems automation. We are proud to have major business in the pipeline in Saudi Arabia, as well as in other parts of the region. The main growth in the UAE will see more automated car park systems as land is becoming very expensive and the housing sector is ever growing. “ALS was not built in one day, but I feel that ALS and I share the same soul; sharing high and low moments, celebrating victories, and analysing the defeats. Together with my colleagues and partners, we’ve ensured ALS’ yearly growth and I would like to keep this as our focus.”
Our experience allows us to execute the works with holistic approach looking forward to potential customer growth and long-term perspectives.” 34 | Logistics News ME | September 2018
The ALS-automated cargo terminals in Muscat and Salalah will support flag-carrier Oman Air’s expansion plans.
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S e p t e m b e r 2018
I am determined to make Saudia Cargo reach its full potential in the air freight and cargo handling sectors by becoming the preferred global freight carrier known for speed, reliability, and efficiency.”
Omar Hariri CEO, Saudia Cargo Right from the commencement of 2017, Saudia Cargo has achieved a number of key achievements through the year, carrying the success forward well into 2018. In January 2017, Saudia Cargo renewed the agreement of human organ transportation with the Saudi Center for Organ Transplantation. The company provided nearly 17 shipments to the organ transplant centre in 2016. Soon thereafter, the company was awarded the International Cargo Airline of the year in Africa at an event organised by STAT Trade Times in Johannesburg, South Africa. 2017 also saw the continued support of the Saudia Cargo Strategic Transformation Plan 2020 (which was introduced in mid2015), aligned to the Kingdom’s Vision 2030 aiming to create job opportunities for Saudis through Saudisation.
In February 2018, in line with the 2020 plan, Saudia Cargo signed an agreement to train and hire 280 Saudis in collaboration with the National Training Center for Facilities and Hospitality Management (NTCFHM), run by the Saudi Arabian Oil Company (Saudi Aramco), under the direct supervision of the Technical and Vocational Training Corporation (TVTC). In the same month, the company signed an agreement with the Saudi Credit Bureau (SIMAH) to provide up-to-date credit history reports in order to ensure that all its credit transactions are trustworthy. Elected in the second quarter of 2018, CEO Omar Hariri is no stranger to the field of transport and logistics, having worked with companies like DHL Express and Abdul Latif Jameel Transportation. “My vision is to fulfill and support the
Kingdom’s Vision 2030 to make Saudi Arabia the leading freight and logistics hub in the region,” remarks Hariri. “In line with that, I am determined to make Saudia Cargo reach its full potential in the air freight and cargo handling sectors by becoming the preferred global freight carrier known for speed, reliability, and efficiency— and most importantly, for quality, quality, quality.” In June 2018, Saudia Cargo signed agreements, totalling an investment of SAR1.4bn, with three major companies to construct a new cargo handling facility at King Abdulaziz International Airport (KAIA). Also launched alongside was FlyPharma and a temperaturecontrolled warehouse. Hariri was elected as a member of the Cargo Committee of the International Air Transport Association (IATA) in July 2018.
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S e p t e m b e r 2018
Abdulla Mohammad Alashram Acting group CEO, Emirates Post Group (EPG)
Emirates Post Group (EPG) is the region’s leading postal and non-postal services provider. As a federal entity, the group operates across the whole of the UAE, overseeing the management and operations of its subsidiaries, which include Emirates Post, Wall Street Exchange, and the Electronic Document Centre (EDC). Headquartered in Dubai, EPG is also the official licensing authority for all postal, courier, and logistics operations within the UAE. EPG has also been a member of the Universal Postal Union (UPU) since 1973. In 2017, the company witnessed a 10% growth in revenue and managed over 44 million shipments. The significant merging of Empost services under Emirates Post gave rise to the EPG brand, boosting overall operations.
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2017 reports by UPU placed Emirates Post eighth worldwide and first in the region for International Express Mail Services (EMS). EPG also received the ‘International Express Mail Services Performance Award’ (Bronze Certification) and the ‘International Express Mail Services Customer Service Award’ for 2017. The first half of 2018 witnessed MoU agreements with several freezone authorities, including Dubai Multi Commodities Centre, for the provision of dedicated Emirates Post Business Boxes, and a range of exclusive postal services within their communities. Major ongoing projects/investments within Emirates Post operations include a new parcel sorting machine, capable of handling up to 3,500 items per hour, a strategic infrastructure
review, and also a process re-mapping and optimisation initiative, aimed at further standardising and streamlining both postal and courier operations. Acting group CEO, Abdulla Mohammad Alashram, who has been a part of the EPG team for 17 years now, says: “My focus continues to be on enabling success through enriching customer experiences and investing in industry advancements to deliver integrated and convenient solutions. “Personally, I try to work in a transparent manner encouraging open dialogue amongst employees. Leading a team towards success includes collaboration both internally and with partners. It includes being receptive to innovation, out-of-the box solutions, and always finding opportunities in the face of change.”
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Building the UAE’s highest road Jebel Jais is part of the Hajar Mountain Range in Ras Al Khaimah. It is the highest peak in the UAE. And for centuries unreachable by most. For 8 years, a fleet of Volvo FMX Trucks carried a total of more than 5.5 million cubic meters around the clock building a 36 km road that goes up more than 1910 meters. The rugged terrain, steep slopes and loose rock were not a challenge for Volvo FMX, which is built tough for such conditions. That is why more than 30 of our Volvo FMX trucks completed this ambitious road project without any major breakdown. To watch the full video please visit www.volvotrucks.ae/jebeljais
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S p e c i a l f e at u r e
Idriss Al Rifai Founder and CEO, Fetchr
Abdullah Al-Dubaikhi Group CEO, Bahri Bahri enjoyed a highly successful year in 2017, generating revenues in excess of SAR6bn. The company went through significant changes in the past year, including the appointment of CEO Abdullah AlDubaikhi, in the final quarter of the year. Key tieups during 2017 included joining forces with Bolloré Logistics, to form BahriBolloré Logistics, plus the formation of BahrBunge Dry Bulk Ltd, a result of a partnership with agribusiness and food company, Koninklijke Bunge B.V. International offices were introduced in Houston and Mumbai, and Alexandria was added as the company’s third direct port call in Egypt after Suez and Port Said. Furthermore, Bahri strengthened their fleet with the addition of 10 VLCCs and signed an agreement with Hyundai Mipo Dockyard, a member of Hyundai Heavy Industries Group, to build four new bulk carriers, scheduled to be delivered by 2020. Remarks Al-Dubaikhi: “These strong financial results demonstrate the success of our ongoing drive for transformation throughout the organisation. We have made significant investments towards strengthening our fleet and adopting new technologies and innovations in our operations. This includes taking delivery of five new VLCCs, which further strengthens our position as the world’s largest owner and operator of VLCCs.”
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Fetchr reported a 450% revenue growth in 2017, as compared to 2016, with business primarily driven by massive growth in Saudi Arabia, plus exponential growth in cross-border e-commerce. Fetchr enabled the China-Middle East corridor with the help of their international product. Fetchr is credited with launching the Hands-Free Shopping facility for shoppers at Mall of the Emirates (Dubai), which allows a customer to drop off bags at pickup points and schedule deliveries for later; Carrefouruae.com, which enables online grocery purchases via Carrefour; partnering with banks to help customers open bank accounts on the spot and backing the idea up with necessary security features such as ID proof verification; and helping the growth of domestic and international e-commerce companies. Founder and CEO, Idriss Al Rifai, says: “Our future plans include expansion into more countries in the MENA region; improving our services in our existing markets; and expanding cross-border e-commerce by onboarding companies from across various geographies. “According to me, a good leader should look at not just the revenue increase but the overall growth of the firm, including its employees.”
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S e p t e m b e r 2018
Sanjeeve ST General manager, Flexigistic Flexigistic recorded year-on-year growth of 5% in 2017, as compared to 2016. Net growth was approximately 3% based on several revenue streams, with the company attributing this growth to the project logistics product launched during Q3 2018. Project moves during 2017-2018 included a 560 tonne pressure vessel to the US, plus a few modules weighing 3,000-3,5000 tonnes to be shipped to destinations including Africa and Middle East. Sanjeeve ST, general manager, highlights: “In term of expansion projects, we are looking into expanding aggressively in Abu Dhabi KIZAD. The Flexigistic holding group has recently signed up for 866,000sqm of several type of plots in KIZAD. They consist of a waterfront plot with dedicated quay/apron for one of our fabrication unit, industrial plot, and free zone plot.” Flexigistic was the first company in the region to offer RFID instead of standard barcoding for their products.
Ali Khalifa Beyat CEO, Allied Transport Company (ATC) With more than four decades of experience under its belt, Allied Transport Company accomplished a 20-25% year-on-year growth in 2017, with a projected growth rate of 20% for 2018. ATC grew its operations across the region and partnered with global brand customers, especially in the e-commerce, aviation, FMCG, and pharma care sectors, offering a one-stop import and export solution ranging from trucking services to customs clearance. In 2017, the company was licensed to carry radioactive material approved by Federal Authority for Nuclear Regulation (FANR). ATC is DG approved to carry all types of dangerous goods, except explosives and ammunition, since 2016. Over the past 32 years, CEO Ali Khalifa Beyat has helped the company achieve exponential growth, making it a major contributor to the regional logistics industry. Beyat says: “At ATC, we value the efforts of our team and empower them to perform at their most productive and reward them for their outstanding achievements.”
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S p e c i a l f e at u r e
Gaurav Biswas Founder and CEO, Trukker Technologies 2017 was Trukker’s first full year of operations since starting business in the end of 2016. During the year, Trukker did AED5.4mn in total revenue across its three business arms— domestic cargo movements in the UAE, last mile delivery for e-commerce and high-volume products; and the home moving and relocation business. In 2018, Trukker’s annual business is predicted to quadruple to more than AED27mn, with an additional business line of cross-border cargo movements in the GCC. Gaurav Biswas, founder and CEO, remarks: “The main vision of Trukker is to ensure that technology benefits the primitive transport industry up to its lowest levels. When I came into this business, I found the industry to be extremely primitive, with people relying heavily on documentation and coordination over phone calls. The reliability of parties on each other is extremely low and I was surprised by how low the technology penetration in the industry was, even for the very basic kind of tasks. “This industry will greatly benefit if Trukker keeps that focus on upgrading the drivers and transporter who drive the trucks and free them up from other functions of business which currently burden them.” In 2017, Trukker executed large project-based movements with multiple last mile delivery companies for domestic distribution of products in the UAE. Trukker was also involved in doing projects with special cargo companies primarily from the oil and gas industry and the events industry, with major focus on cross-border business segment. At the moment, Trukker is focused on adding competitive advantage, offering premium customer-service and lowest market rates for cross-border movements to Saudi Arabia, Oman, Kuwait, and Bahrain. Before the end of 2018 Trukker will be opening up offices in Riyadh, Dammam, and Jeddah, along with opening up satellite offices in Kuwait, Oman, and Bahrain. The other major project that Trukker is working on is to add to the efficiency of truck cargo movements across the GCC by ensuring that fleets are connected to loads on both ends of a particular route. This establishes the long-understood problem of empty returns, commonly known as reverse load.
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The main vision of Trukker is to ensure that technology benefits the primitive transport industry up to its lowest levels.”
Trukker saw profit and revenue growth of nearly 2500% in 2017.
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S e p t e m b e r 2018
Alain Kaddoum General manager, Swisslog Middle East
KUKA Group member Swisslog ended the year 2017 with a global sales revenue of €763.7mn. The high global demand for robots and automation solutions resulted in further growth, particularly in sales revenues, and to a further increase in both orders received and order backlog. KUKA itself noted sales revenues of €3.5bn and finished the year with a net income of €88.2mn, slightly higher than the previous year. Swisslog is currently undertaking a comprehensive logistics automation project for Mai Dubai, and this €18mn (USD21mn) project includes implementing a high-bay warehouse for raw and packaging materials, as well as constructing a new high-bay warehouse for finished goods. They have also undertaken another big project to automate Almarai in Saudi Arabia, in order to efficiently manage the complex flows of goods at its largest factory in Al Kharj. The value of this order is approximately €43mn. General manager, Alain Kaddoum, remarks: “We have already undertaken a couple of projects in the GCC and have secured few new ones, the most recent one being a governmental organisation in the Kingdom of Saudi Arabia. We are in talks with other customers, and we are eager to use our expertise to support businesses here with their growth.” Kaddoum believes that more opportunities are also expected in the e-commerce sector. “This sector is booming, and with increased demand will come an increased need to automate warehouses and distribution centres in order to fulfill orders efficiently. We also expect to see a surge in data-driven warehouses and hope to support many businesses in the Middle East with our software solutions for the same. “As the company continues to book new orders in 2018, we concentrate a lot on providing our clients with the best service and support. We’ve been expanding our Middle East team in size year-on-year, it plays a critical role in supporting Swisslog’s continual growth strategy and in driving its leadership position in automated intralogistics solutions throughout the region.”
We concentrate a lot on providing our clients with the best service and support.”
Coca-Cola Amatil commissioned Swisslog and KUKA for its robotic picking solutions in May 2018.
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S p e c i a l F e at u r e
We have been reinventing and re-organising the commercial transport sector, increasing the benchmark of the service levels.”
Janardan Dalmia Co-founder and CEO, Trukkin Trukkin Middle East is a cloud-based B2B platform, which was launched in May 2017. The start-up was the brainchild of entrepreneurs from Saudi Arabia and the UAE and was co-founded by Ahmed Ibrahim Al Nafie and Janardan Dalmia. Trukkin has since completed over 6,000 commercial truck journeys and moved over 1 million tonnes of goods in its first year of operations, growing nearly 5000% since inception. Trukkin’s app works in a way that provides a direct link between the clients and fleet op-
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erators, for instance, which removes the need for a middleman or any sort of buffer between the two participants of the sale and ultimately speeds up the process entirely. For clients, the app unlocks new suppliers, services on demand, and lower transport overheads backed by transparency. For fleet owners and individual drivers, the platform offers a powerful new channel for business development. Janardan Dalmia, co-founder and CEO, remarks: “I have been working on this [company] from early 2016. We have been reinvent-
ing and re-organising the commercial transport sector, increasing the benchmark of the service levels.” In June 2018, Trukkin announced that it will be receiving an undisclosed amount of funding led by Saudi Arabia’s Batic Investment and Logistics Co for a pre-series round. “Support from marquee institutions like Batic is a testament to the fact that we are on the right track. The investment will allow us to further scale our operations and continue the growth of the company,” adds Dalmia.
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S e p t e m b e r 2018
Deepak Khushalani Managing director, Premier Logistics Corporation Established in 2016, Premier Logistics saw a revenue of AED20mn in 2017, a growth of nearly 40% as compared to 2016. The company attributes this to the addition of new verticals such as freight forwarding, and stepping into 3PL niches such as FMCG, chemical, and automotive logistics. In 2017-2018, Premier secured a multinational automotive client, gaining the responsibility of importing approximately 100 cars a month. This involved shipping, transportation, clearances, storage, maintenance, and distribution of these vehicles to the showrooms. Furthermore, the company exclusively handled and stored approximately 60x40’ FCL per day for a major FMCG client, primarily for their white goods division. Managing director, Deepak Khushalani, says: “We have grown from a five-member team to a 40-member team that provides endto-end logistics services, from freight, storage, transportation, distribution and value added services. We developed all 3PL divisions from scratch, with primary focus on digitisation of all our services.” Khushalani was also instrumental in developing the entire quality management system and achieving the ISO 9001:2015 certification in a short span of time. “As of 2018, Premier Logistics has formed strategic tie-ups with its partners to fulfill all our clients requirements,” adds Khushalani. “We now have a capacity of 41,000 racked pallet positions, 3,200 temperature-controlled racked pallet positions, 51,000sqm of open yard storage space, and 28,000sqm of covered bulk storage space.” The company’s goals further down the line include establishing an aviation logistics division to handle storage, distribution, and maintenance services for major aviation brands. They also plan to focus on delivering the best OOG end-to-end logistics service for a multinational company, besides combining the innovation and digitisation factor in their logistics services on a single cloud-based platform.
As of 2018, Premier Logistics has formed strategic tie-ups with its partners to fulfill all our clients requirements.”
Logistics News ME | September 2018 | 43
S p e c i a l F e at u r e
S e p t e m b e r 2018
Ghaith Al Ghaith CEO, Flydubai
Dr Wolfgang Hoppmann CEO, Schmidt Middle East Logistics
Introduced in 2012, low-budget carrier FlyDubai’s cargo division has rapidly developed an international network, covering the Middle East, GCC, Africa, Caucasus, Central Asia, Europe, and the Indian Subcontinent. In June 2017, FlyDubai signed a seven-year extension of its air management contract with Mercator, a software and product-enabled solutions provider. Later in the year, FlyDubai Cargo, dnata, Emirates Innovation Lab, and IBM successfully completed a Proof of Concept (PoC) using blockchain technology for airfreight transportation in Dubai. The organisation was lauded by HH Sheikh Ahmed bin Saeed Al Maktoum, chairman of flydubai, for the contribution and support it has given to the development of Dubai as a global hub for aviation. In recent news, FlyDubai Cargo announced that it would offer Italian freight forwarders direct daily flights to Dubai. Flights will be operated by the most modern aircraft, B737/800 max, with more than 18cbm available for general cargo, priority cargo, perishable cargo, valuable cargo, courier cargo, and mail.
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In early 2017, Schmidt Middle East Logistics, wholly owned by Schmidt Heilbronn, a world leader in dry bulk logistics, launched operations of its multi-user logistics hub based in Khalifa Port Free Trade Zone (Khalifa Port FTZ) within Khalifa Industrial Zone Abu Dhabi (KIZAD). The company leased about 22,000sqm of prime land at Khalifa Port FTZ in order to setup an economical and efficient solution to store, handle, and distribute different bulk materials like polyethylene, polypropylene, catalysts, and additives for the chemical and petrochemical industry. The AED20mn facility contains a warehouse providing about 2,000sqm of storage, a silo battery containing nine silos, a tilting platform, packaging line, repair shop and service station, as well as offices and social rooms. In addition, the facility offers truck transport and customs clearance services. Towards the end of 2017, the company inaugurated a 15,000sqm facility in Bahrain Logistics Zone. The $20mn project, in a joint venture with Nogaholding, the investment and business development arm of National Oil and Gas Authority (NOGA) in Bahrain, aims to create around 100 jobs in the logistics sector (directly and indirectly). Dr Wolfgang Hoppmann, CEO, mentions: “Bahrain was chosen because of its proximity to Saudi Arabia; we can cater to one of our largest GCC market from Bahrain. For Schmidt being a specialist logistics company, we have a lot of companies that we can work with regionally. One of the global customers that we serve is BASF in Europe and elsewhere. Being close to our customers is the key.”
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Awards preview
Date: Tuesday, 16 October, 2018 Venue: Habtoor Palace, LXR Hotels and Resorts, Al Habtoor City The first ever Logistics & Transport Awards will see limelight in 2018, aimed at recognising past triumphs and acknowledging the future strategies of logistics and supply chain companies from around the region. The awards will cater to individuals and companies from a variety of sectors— from transportation, cargo, and warehouses, to e-commerce, supply chain, and technology. Companies are welcome to nominate people, projects, and facilities across 14 categories; the entries will be judged by a carefully selected panel of industry experts. For further information, log on to www.cbnme.com/logistics-transport-awards/
Company Awards Express Logistics Provider of the Year This award category recognises the most efficient and respected Express Logistics Provider in the region. Judges will be looking at a consistent track record and strong client portfolio. Incorporation of recent trends such as e-commerce logistics, last mile delivery, and inclusion of technology will all be taken into consideration. Warehouse Facility/Firm of the Year The Warehouse Facility/Firm of the Year seeks to award a distinguished facility that meets several criteria on the list of what makes a warehouse ideal: • Proximity to the city’s central hub and transportation modes such as railways and ports • Safety and security • Parking space • Adequate storage space • Relevant material handling appliances and technology • Disaster and emergency management • Designed to meet the needs of the product it caters to i.e., perishables, chemicals, dry goods, etc. • Skilled workforce FMCG Logistics Provider of the Year Consumer goods suppliers in the F&B, retail, e-commerce and other products sectors have to constantly keep up with market demand and supply from distributors. This is where logistics providers step in to provide agile and optimum services, thus completing the supply chain cycle smoothly. 46 | Logistics News ME | September 2018
Most Innovative Technology for Logistics Technology has played a pivotal role in transforming the logistics landscape, and tech companies constantly strive to offer the next ‘big thing’ to increase productivity in the supply chain. The Most Innovative Technology for Logistics award recognises such companies and their unique product offerings for the market, in fields such as warehouse, express delivery, supply chain management, and more. Freight Forwarding Company of the Year This award is for companies displaying excellence in freight forwarding, in terms of service and efficiency in ocean, air, road or rail freight. Cold Chain Service Provider This award recognises companies that provide optimal temperature-controlled services, while balancing energy consumption, costs and efficiency. Port Safety Initiatives This award recognises a new safety initiative that a port or operator has introduced in the past year, and how it has benefitted not just the port and its personnel itself, but also those that trade via the port. Ethical Supply Chain Initiative This award recognises sustainable and ethical business initiawww.cbnme.com
tives to improve the quality of the supply chain, right from the sourcing stage to the final delivery of a product to the customer. Supply chain ethics broadly cover: • Safe working conditions • Eradication of child labour and malpractices in business (antibribery, anti-corruption) • Environmental awareness • Appropriate pay and working hours • Sustainable sourcing of raw materials • Following rules and regulations of the countries that the company operates in Ethical supply chain can be applied to a variety of sectors— from construction and technology, to F&B and pharmaceuticals, and as such this category is open to a broad range of companies. We also welcome submissions from solutions providers, e.g. 3PLs and consultancies, but only when in partnership with an end-user practitioner client. Trade Facilitator/Free Zone of the Year Free zones act a vital hub for trade coming in and out of the region. Free zones are a popular choice for companies looking to
set up business in a new location, with the UAE alone boasting more than 40 free zones. This award aims to recognise such free zones and to appreciate the extent of trade that they have driven in the region. Innovation in Transport Since the advent of autonomous transport, be it driverless trains or unmanned aerial vehicles (UAVs), the region has stood witness to rampant innovation in the field of transporting both passengers and goods. This award aims to recognise such a transport company, providing services that not only imbibe technology, but also sets the path for others to follow. Logistics Startup of the Year The rise of the digital era has paved the way for several new companies in the market. These companies rely on fresh ideas and technology to change the way business is done, and while they may not be the biggest companies in the sector, they are certainly challenging the ‘traditional’ notion of the industry. This award aims to recognise these new players that are trying to change the logistics and transportation landscape, one solution at a time.
Individual Awards Supply Chain Manager of the Year A supply chain manager oversees everyday operations of a business, ensuring logistical operations run smoothly, and that the correct ratio of demand and supply is maintained through the service offering. This award recognises the work of one such individual, who has maintained highest standards when it comes to the supply chain of any operation. Woman Professional in Logistics & Transport It isn’t a norm to find a female working in the transport and logistics industry, and as such it is still a rarity. This award aims to honour
and celebrate the most inspirational women working within the industry and raise awareness of the diverse opportunities available, encouraging greater numbers of women to work in the sector. Lifetime Achievement in the Logistics & Transport Sector This award recognises the effort of an individual that has demonstrated their commitment to the logistics and transport industry and has continuously contributed over a significant period of time. We take pride in commemorating the achievements of this individual.
Logistics News ME | September 2018 | 47
H e av y t ru c k s
Gaining momentum Renault Trucks International’s Olivier De Saint Meleuc on why now is the time to invest in the Middle East
S
itting down with LNME, Olivier De Saint Meleuc, SVP, Renault Trucks International, is a calm and assured presence. Even in the midst of a whirlwind few days of an event where the media mixes with Renault Trucks’ importers and customers from across the region, he spares time to elo-
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quently and diligently present a confident outlook for the company. Last year saw a touch under 50,000 trucks (49,930) delivered globally by the company. With most manufacturers admitting it was a challenging 12 months, the 4% increase in sales (including a 7% rise in the 6t category) can be
considered a success for Renault Trucks. Indeed, the company managed to improve its share by 0.6 points in the shrinking Europe market and the question is now whether it can take this momentum into an international business which has been traditionally been focused on the Middle East and Africa region.
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S e p t e m b e r 2018
Despite a fall of 4% in truck invoices (with 4,886 units) sold by Renault Trucks International last year, it remains the market leader for European manufacturers in the French-speaking countries. It is also proving that it can tackle sluggish markets beyond its historical strongholds in countries like Turkey where it notched a 40% increase in volumes. Looking even further afield it is quickly reacting to opportunities when they present themselves such as in Pakistan, where the company has scored a notable surge in demand despite stiff opposition from Asian truck-makers and China in particular. When asked why Renault Trucks is spotting openings in markets that its other Western competitors may have missed, De Saint Meleuc tells LNME that the truck-maker has benefitted from being able to work with importers that both understand their own market but are also able to translate why the French truck-maker’s vehicles make financial sense in the long-term. “What we have felt for many years is that it is important to have offices in each of the countries in which we operate and have people on the ground to understand what the customer really wants and the other key strategy is to work with our importers because they are running each country and know the culture,” he enthuses. “The dealer always knows the customer better than we do. The trust in our importers is the key for how we want to build our infrastructure worldwide.” The key theme that continues through almost every conversation in its dealer network to the end customer is explaining the true value of the total cost of ownership (TCO). Renault Trucks wants owners of its vehicles to look beyond the initial cost of buying the truck and the importers are key to proving the numbers can stack up over time, he adds. “The principle of a conversation on TCO is pretty much the same everywhere. In every country of the world where I have been selling, customers always overestimate the cost of the truck itself and the cost of the maintenance. Customers typically tend to overestimate these costs and underestimate the cost of the fuel. Or they believe that they cannot do anything about them,” remarks De Saint Meleuc. “Of course, the ratio and the importance of fuel will vary quite a lot from one country to another, as will the cost of the driver, but the overall conversation remains the same.” The past year has also seen a funnelling of much of Renault Trucks International’s business in the region through its recently opened Greater Middle East facility which oversees both its new and used sales efforts as well as its
“In every country of the world where I have been selling, customers always overestimate the cost of the truck itself and the cost of the maintenance.” finance team. The new office is part of an overall global strategy to prepare Renault Trucks International for growth and matches the targeted roll-out of its latest vehicles in its K, C, and T ranges and its re-emergence in some markets like Sudan and Ghana. The Greater Middle East operation is helmed by VP Gregoire Blaise. Joining de De Saint Meleuc to talk to LNME, he says, years taking on Chinese and regional competitors in Asia taught him that being as close as possible to the dealer and customer is critical. It is approach that is now being applied in the Middle East. “Going back to 2016, we decided that we needed to be closer to our customer,” says Blaise. “The main purpose must be to be able to listen as closely as possible.” “We consider that the actual market size is very low but when Europe drops, the Middle East will grow. This is why we are making the investment now; investing in a new headquarters, re-staffing in all different countries, investing in new importers,” adds De Saint Meleuc. “We invest now so we can take the fruit when the market is higher. The Middle East is high on our agenda at Renault Trucks.”
One of the biggest challenges facing all commercial vehicles manufacturers in the region is addressing fleet operator and trucks owner reluctance to adopt the very latest technology, even when it is in the best interest. Perhaps the best example of this is the use – or lack– of automatic transmissions. In the Optidriver system, Renault Trucks has arguably one of the best in the market, and has proven that it can deliver savings to fuel and overall costs of maintenance and repairs. Sharing a lot of the development with sister company Volvo Trucks, which has its own comparable IShift automatic transmission, De Saint Meleuc explains that Renault Trucks is continuing to invest in the system to optimise fuel consumption “It’s really more fine-tuning than dramatically changing the gearbox. We are happy with it and so are our customers,” he says confidently. “I am convinced that Optidriver is most probably the best gearbox that we have on the market. And for construction and, of course, for longhaul applications, it is a fantastic gearbox.” Optidriver has been well-received in Europe with almost all Renault-made trucks selling with the automatic gearbox installed. De Saint Me-
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H e av y t ru c k s
S e p t e m b e r 2018
A new standard in the UAE The introduction of new emission standards in the UAE this year, which ask for new trucks to be sold with an engine that passes a minimum of the Euro 4 standard, demonstrate that there is an appetite in that country to produce legislation for cleaner vehicles. Both Blaise and De Saint Meleuc reveal that in the run up to the change, the company has been passing on its knowledge and expertise to its importers based on its previous experience of similar changes in Europe. It also helped to anticipate a rush to buy the older specification models before the regulation kicked in. Blaise adds that Renault’s experience in Western markets made it better prepared for the UAE change than competitors: “We have had to do some training on it for our aftersales which is normal, but I believe it is much harder for manufacturers from India or China. We have been on this Euro 5 journey for a long time and it is not a big deal.” De Saint Meleuc concludes: “It is only the post-treatment that we do a change (in terms of design), so for us as a European manufacturer it doesn’t make that much difference. It is more a question for us to work with our importers to anticipate the pre- and post-buy volumes. From a service perspective it is something that we are managing well. However, this is an example of why it is important for us, as Renault Trucks, to have a direct connection with the final customer via our importers. Whether it is Saudi Arabia, Pakistan, anywhere, to keep feet on the street can have a direct impact on the customer as positively as possible.”
leuc says that in some international markets it can take more time to convince drivers, “because they feel that they are better at anticipating on the roads and so on, but the reality is that although an extremely highly skilled driver can save a slight bit of diesel fuel, they have to be extremely good to be better than the gearbox. From a pragmatic perspective it doesn’t make sense.” He continues: “Probably the best benefit we see with the gearbox is the safety of the drivers. The more you focus on choosing your gear, the less you are focussed on what’s hap-
50 | Logistics News ME | September 2018
pening on the road. From a safety perspective it is a major step forward.” Blaise adds: “The new Optidriver demonstrates adaptation, evolution, and we have some new features. We have addressed minor issues that we faced at the beginning. We are not the car industry and we are not launching new trucks every couple of years but there’s a new engine in the range and we have extended the Optidriver system to allow you to have very slow movement of the trucks and still have control.” Beyond the technology of its vehicles, Renault Trucks believes that its aftermarket support is vital to customers to ensure that they are a success. Encouragement to use its genuine spare parts and tap into its maintenance programmes has been widely successful with the manufacturer notching a 2.6% increase in its parts business last year. The company is now taking the approach further by extending its warranty to two years and De Saint Meleuc suggests this global strategy is a demonstration of its confidence in the quality of its manufacturing. “We want to prove that one part is not equal to the other and buying genuine will make a difference,” he says. “Customers can trust that we are selling the right product for their vehicles. To launch this two-year warranty worldwide at the same time was a strong message to our customers that we believe in the quality of our parts. They are exceptional.” Looking towards the next generation of trucks, Renault Trucks is stepping up the production of its first fully electric vehicles at its factory in Normandy. Still only at the testing phase, their inevitable introduction could find a market in some countries in the region. August saw Dubai’s Roads and Transport Authority (RTA) announce that it has endorsed new testing standards for electric, hybrid and
self-driving vehicles as part of long term strategy leading up to 2040 to see wide adoption of the technology. Waste management company Bee’ah also formed a JV with Crescent Technologies, ION, this summer to create the region’s first sustainable commercial vehicles fleet. While these are a relatively small steps in a long-term journey towards EV adoption within truck fleets in the region, De Saint Meleuc says that Renault Trucks fully supports the progress being made, but the process could be accelerated if the right regulation is introduced. “Demand is not yet at levels seen in Europe where regulations are getting tighter on night deliveries and emissions,” he remarks. “Like all the major technical changes it has to be driven by political decisions such as the imposing of Euro 3, Euro 4, Euro 6 standards. We are seeing more and more cities in Europe with low emissions zones and that could potentially lead to bans on diesel vehicles in coming tenders. Beyond the need for political support, he adds that there are also technological and financial barriers to overcome. For one, the battery technology isn’t quite ready for commercial vehicles use particularly in the demanding, powerhungry, environment of the Middle East. Furthermore, there remains a question of whether companies will pay a premium for it up front, if there isn’t legal pressure for them to switch to electric vehicles. “Political decisions will help switching but there is still a very long way to go from a technical perspective,” he says. “However, we are preparing ourselves to be ready for this shift but, today, the complexity is that the business case for the customer is not there yet. It cannot become a large market until there is a business case, a payback, for the customer.”
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U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s
BMW extends transport contract with DHL Freight
BMW has renewed its contract with DHL Freight to handle overland transport services in 17 European countries. It has also added a digital supply chain management service in a number of key markets. DHL Freight moves inbound parts to BMW factories as well as provides spare parts deliveries for the carmaker’s aftermarket. Altogether DHL Freight is moving more than 90,000 full and less-than-truckload shipments per month. The renewed contract covers more than 97% of the existing inbound-tomanufacturing business but DHL will now be supplying an additional supply chain management service called Connected Supply Chain (CSC). The system digitally depicts the entire supply chain for BMW. According to DHL, it delivers realtime, end-to-end visibility and management control of all the logistics and transport services DHL provides for BMW.
“Aspects such as order and status data are visible via a central portal, and orders receive a single reference number from beginning to end,” said Stefan Brunner, global sector head, automotive at DHL Freight. “This creates a new dimension of transparency and gives us and the customer the ability to mitigate risks of delays or other potential disruptions of the supply chain.” DHL has also developed a mobile app for truck drivers that is directly linked to the CSC, which eases communication and helps to gain real-time status updates in both directions. “DHL Freight and BMW have had a trustful and reliable partnership for years,” said Brunner. “We have an extensive expertise in automotive logistics and [have] built up a deep understanding for the needs and expectations of our customers. The Connected Supply Chain solution brings our partnership on a new level.”
52 | Logistics News ME | September 2018
CEVA completes phase one of Rolls-Royce aero logistics project
CEVA Logistics has completed phase one of a major global inbound aero logistics project for Rolls-Royce. Starting in 2017 and running through the first half this year, CEVA has been responsible for designing, implementing, and managing the domestic, regional, and international shipment of aerospace parts for both the civil and defence divisions of Rolls-Royce. Over 1,200 shipments per week with an average weight of 300-500kgs and ranging from and small parcels to out-of-gauge are moved into multiple Rolls-Royce facilities across the UK, Germany, US, and Singapore. By establishing three global control towers at Ashbyde-la-Zouch, UK, Singapore, and Jacksonville FL, and by utilising its Matrix Supply Chain Management global platform, CEVA has been able to transform the way Rolls-Royce manages its inbound inventory.
In order to achieve this, CEVA has transitioned some 800+ individual Rolls-Royce suppliers onto its Matrix system to provide RollsRoyce with a single source for the data and visibility of its shipments. This new level of visibility has enabled Rolls-Royce to dramatically reduce the volume of expedited freight it requires and introduced a reduction in transit times which are measured against agreed service level requirements. “We are delighted with the success of this ongoing project,” stated Leigh Pomlett, executive director of CEVA Logistics. “Using our business intelligence tools has enabled Rolls-Royce to have a new level of part visibility and at the same time interrogate their cost base to precisely match their business requirements. This rich supply of data then enables us to support the future evolution and continuous improvement of their supply chain.” www.cbnme.com
S e p t e m b e r 2018
Air Arabia opts for SAP cloud-based human resources system
Al-Bahar delivers 17 MHE to new Kibsons warehouse in Dubai
Adel Al Ali, group CEO, Air Arabia, and Julien Bertin, managing director, SAP, during the signing ceremony.
Air Arabia announced that it has signed an agreement with SAP – a global market leader in enterprise application software for a new cloud-based human resources system. The new system “SAP SuccessFactors” will provide Air Arabia with advanced capabilities across all HR functions, using some of the latest technologies and cutting edge human capital management software solutions. Adel Al Ali, group chief executive officer, Air Arabia, said: “Since its launch, Air Arabia has always adopted smart and cutting-edge technologies that supports that carrier’s ever-growing operations with reliability and efficiency. The new agreement with SAP is in line with this strategy and we look forward to working together to make this project a success.” Julien Bertin, managing director, SAP said: “We have developed the SAP model
company for human resources service to support digital HR transformation. We are confident that Air Arabia’s human capital function will considerably benefit from a ready-to-run, preconfigured SAP SuccessFactors solution based on leading practices for end-to-end HR business processes. We are proud to have partnered with Air Arabia and we look forward to a successful collaboration.” Through this agreement, Air Arabia will acquire advanced capabilities across all its human capital functions via the use of the latest technologies provided by SAP SuccessFactors scope, which include core employee management functions, the payroll system, employee self-service, recruitment and onboarding, performance and goal management, learning management, manpower planning, and many additional features.
Al-Bahar announced the delivery of 17 units of material handling equipment along with exclusive support agreement to Kibsons International, enabling their expansion plans extensively. The mix fleet including both Cat Lift trucks and UniCarriers forklifts will enable Kibsons to carry out warehousing functionalities efficiently, at their new facility in Alweer – Dubai. The new warehouse was primarily for storage and distribution capacity, with a restricted aisle space of 2.5m and radio shuttle racking system. They were in hunt of a solution that operated in narrows space. They wanted reach trucks or counter balance forklifts. Mamoun Mutair, product manager – Building Construction & Paving, Al-Bahar, commented: “Having understood the unique need, we proposed narrow aisle reach trucks, with body chassis of reach truck and which was integrated with VNA mode of forklifts. This was ideal for use in narrow spaces. They also requested for additional switch for directional control and operators protection along with a comfortable space. Our equipment addressed these needs, with its proven ergonomics for operational efficiency.” Husainy Sharbat, operations head, Kibsons International LLC, said: “With Al-Bahar, both their products and they as a dealer were flexible. We required equipment that was a reach truck with features of an articulated lift truck to work in narrow working aisles. Al-Bahar team was receptive to our requirements. They understood our needs appropriately and offered us solutions that would work optimally, for our kind of warehouses.” Al-Bahar offered eight units of ALL 200 low lifter trucks, three units of each UHD 200 reach trucks and URS 150 freerange reach trucks. The fleet was completed with three units of Cat EP20 Lift Trucks. Elaborate competitor comparison was demonstrated using existing models. The UniCarriers equipment were faster, safer, cost- effective, and better than articulated competitor options that were being considered. No additional feeder equipment or P&D stations needed, as these trucks offer ‘Stack & Move’ maneuverability. Logistics News ME | September 2018 | 53
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The key exhibitions, conferences, and seminars coming up this month
September
4-6
September
11-12
Transport Compleet Gorinchem Gorinchem, Netherlands The Transport Compleet in Gorinchem is the optimal platform for entrepreneurs of trucks, trailers, and car body industry to establish new business contacts and to exchange with each other. This exhibition focuses on policy makers and representatives from the transport, freight, production, and export companies. The range of products on display include commercial vehicles, trailers and chassis parts, as well as batteries and track & trace software and corresponding accessories. Receiving a footfall of more than 10,000 people, the event has seen several promising deals and contracts signed both on site and post-event. Logistiikka Tampere, Finland The event in Finland showcases intralogistics, material handling, and warehousing services. Logistics chain management, 3rd party logistics, data exchange, mobile technologies, forklifts, accessories, and spare parts are some of the focus points at the event. Logistiikka will provide the visitors with the introduction in the field of provision of comprehensive and provides the latest information from the material handling and logistics inside the availability of skills. Taking place alongside will be the Safety, EuroSafety and Workplace Welfare event, as well as the Occupational Health Convention, which will present a wide variety of products and services for intralogistics professionals.
54 | Logistics News ME | September 2018
September
18-21
October
11-13
InnoTrans 2018 Berlin, Germany Organised by Messe Berlin, InnoTrans is the leading international trade fair for transport technology and takes place biennially in Berlin. Sub-divided into the five trade fair segments: railway technology, railway infrastructure, public transport, interiors, and tunnel construction; InnoTrans occupies all 41 halls available at Berlin Exhibition Grounds. The InnoTrans Convention, the event’s top-level supporting programme, complements the trade fair. A unique feature of InnoTrans is its outdoor and track display area, where everything from tank wagons to highspeed trains are displayed on 3,500m of track.
China (Shenzhen) International Logistics & Transportation Shenzen, China Jointly held by Shenzhen Municipal People’s Government, China (Shenzhen) International Logistics and Transportation Fair (CILF) is a leading logistics and transport expo in Asia. Since its debut in 2006, CILF has been successfully held for 12 successive years and earned a popular reputation. Key events to watch out for at the event include the 3rd Sea-Rail Transport and Cross-Border Transportation Summit Forum; the 5th Cross Border E-Commerce Supply Chain Service Development Summit; the 4th Forum of 21st Century Maritime Silk Road; CILF networking days and one-on-one meetings; and the 7th Shenzhen World Port Chain Strategy Forum. www.cbnme.com
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