trucks
Talking point
Viewpoint
Ford Trucks plans for the Middle East
ASGC & their role in the transportation and logistics sector
Technological Advancements in Automotive Aftermarket Future
Connecting trade professionals with industry intelligence
We find out why King Abdullah Port is uniquely placed to offer a faster gateway from the East to West
April 2019
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Contents
Contents
A p r i l 2019
Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
April 2019
R e a d a l l t h e l at e s t i s s u e s o n I s s u u
Start 10 | News
Features 22 | Cover 26 | Site Visit 30 | Ports & Terminals 34 | Talking Point 36 | Financial Report 40 | Trucks 44 | Digital 48 | Viewpoint
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Regional News
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A p r i l 2019
Ed i to r ’ s L e t t e r
A p r i l 2019
A note from the editor Kasun Illankoon
CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D›Costa
Just a quick update on the latest trends in the eCommerce industry. According to a recent report released by Frost & Sullivan, the number of delivery drones in the global eCommerce industry alone is expected to increase to 2.2 million units by 2025 as there will be a surge in the demand for drone servicing, repair, and maintenance. Drone delivery trials are being conducted in at least 15 countries, including Australia, the US, the UK, Canada, Japan, and Switzerland by specialized companies such as Flirtey, Flytrex, and Zipline, as well as cross-industry companies such as Amazon, Alphabet, Alibaba, JD.com, Airbus, and UPS. The entry of majors from other industries is a huge boost to the market, as they are able to leverage their expertise in technology, eCommerce, aviation, and logistics to accelerate the commercialisation process. In this edition of Logistics News, we find out about the rise of
King Abdullah Port and why they are uniquely placed to offer a faster gateway from East to West. King Abdullah Port is one of the largest infrastructure megaprojects in the entire Middle East carried fully by the private sector and is evidence of the success of public-private partnerships in Saudi Arabia, which represent a key pillar of Vision 2030. Furthermore, we find out more about the benefits of using transportation software provided by Bentley Systems, and how this software can increase safety, service, and reliability. Plus, five years since Ford Trucks started operating in the Middle East we find out about what their plans are to expand in the Middle East. Kasun Illankoon Editor, Logistics News Middle East
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Regional News
Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Events
Abu Dhabi to host first-ever World Road Congress to be held in the Middle East Thousands of the world’s foremost experts in road infrastructure, transport and technology will descend on Abu Dhabi this October for the first ever World Road Congress to be held in the Middle East. Held under the patronage of His Highness Sheikh Mohamed bin Zayed Al Nahyan Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the Congress comes as the United Arab Emirates was recognized by the World Economic Forum as having the best roads in the world from 2015 to 2018. Organized by the World Road Association (PIARC) and the Abu Dhabi Department of Transport (DoT), the major event is expected to attract more than 5,000 delegates from 120 countries with at least 40 government ministers. The 26th World Road Congress will be a five-day event discussing the overarching theme of ‘Connecting Cultures, Enabling Economies’. The UAE has been recognized consistently since 2015 for having the best roads in the world. The World Road Congress 2019, held 6 -10 October at Abu Dhabi National Exhibition Centre, will offer a unique global platform for the UAE to demonstrate its commitment to innovating in the surface 10 | Logistics News ME | April 2019
transport, tunnels, bridges and infrastructure space. His Excellency Dr. Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman of the Federal Transport Authority – Land & Maritime, emphasized the UAE’s distinguished position and its potential for hosting international conferences, due to its advanced infrastructure, which represents a model of best international practice. His Excellency said: “This year, the 26th International Road Conference will be an opportunity to present and address programs and issues related to different modes of transport and advancements in the sector, such as smart innovations. “It will be an opportunity to
demonstrate the development and sustainability of the UAE infrastructure and to meet like-minded industry experts to share experiences and information on applying the latest global standards in planning. “I look forward to bringing together industry leaders in Abu Dhabi to examine what the next four years and beyond holds for the future of road and transport infrastructure.” The World Road Association (PIARC) has organized the World Road Congress since 1908. It aims to share worldwide techniques, innovations, political strategies, trends and developments as well as best practice in the fields of road, infrastructure and transport.
Claude Van Rooten, President of the World Road Association (PIARC), said: “Every country in the world has come to depend on roads to provide yearround access and mobility for their populations. As our populations evolve, today’s road network must meet new demands and expectations. “The World Road Congress is the global industry’s signature event, bringing together road administrations, equipment and service providers, consultants and road-related organizations, as well as Ministers from across the world to present their views on key themes such as artificial intelligence, land use planning and the future transport network.” www.cbnme.com
A p r i l 2019 Logistics
UAE ranks third in logistics index for fifth consecutive year
UAE ranks first in the region and third globally, after China and India, for a fifth consecutive year, according to the 2019 Agility Emerging Markets Logistics Index. In the Gulf, the UAE (No. 3), Saudi Arabia (6), Qatar (8), Oman (12), Bahrain (16) and Kuwait (18) rank highly. Among ASEAN countries, Indonesia (4), Malaysia (5), Vietnam (10) Thailand (11) and Philippines (20) are strong. “The strong performance of Gulf economies in the Index is the result of wise investment in logistics and
transport infrastructure, concerted efforts to diversify, steady progress in streamlining regulation, and strategic development of digital capabilities,” says Elias Monem, CEO of Middle East & Africa for Agility Global Integrated Logistics. “The healthy competition among Gulf economies has helped put the entire region out in front.” Agility’s annual survey of more than 500 supply chain industry professionals shows logistics executives are upbeat
about the 2019 emerging markets growth outlook, but fearful that trade tensions, currency and interest rate volatility, and Brexit could trigger a crisis. In the survey, 55.7% say a 2019 growth rate of 5% is “about right,” but a surprising percentage – 47.1% – say an emerging markets crisis is “likely” or “highly likely.” Emerging markets expanded by 4.7% in 2018, and the International Monetary Fund now forecasts 4.5% expansion for 2019. The Index ranks 50
countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam. China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE, Malaysia and Qatar have the best business fundamentals. Logistics News ME | April 2019 | 11
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Regional News
Initiatives
Dubai South and DACC step up initiatives to boost businesses
As part of its efforts to increase engagement with startups and small and medium enterprises (SMEs) amid rising trends on the ‘gig economy’ worldwide, Dubai South, Dubai’s integrated city and flagship urban project, continues to build new initiatives that support businesses in Dubai to maintain its global attraction as a magnet for foreign investors. The emirate is strategically positioned in key sectors surrounding innovation and digital technology such as e-commerce, AI, blockchain and fintech, following 26 per cent increase of foreign direct investments (FDI) during the first half of 2018, reaching AED 17.7 billion. Dubai South’s ongoing initiatives are further boosting the business activities of its partners which include startups, SMEs and multinational companies, and most recently, individual professionals in specialized professional sectors. Dubai Aviation City Corporation (DACC), which is the licensing and regulatory body for Dubai South free zones, have announced that freelancers can now avail the opportunity to work under a freelancer work permit, in line with global trends of a growing number of professionals are seeking for work options that have flexible working hours and work-fromhome agreements. This new development reflects Dubai South and DACC’s commitment to help position the emirate as the most innovative business hub attuned to the modern needs of both companies and the workforce in line with the directives of H.H. Sheikh 14 | Logistics News ME | April 2019
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Shoaib Al Rahimi, VicePresident of the Business Park, Dubai South, said: “Dubai South’s commitment to create a viable business environment for SMEs and multinationals alike continues to be reflected in various initiatives. Considering the ever-evolving business landscape, policies and strategies from 10 years ago had to undergo huge transformation to adapt to current trends and meet the needs of businesses. We are keen to be on top of leading efforts that meet the needs of today’s SMEs, startups as well as individual professionals seeking independence through a range of customized
solutions that will further hep them grow their business.” Business entities also enjoy a range of incentives such as rent reduction from 5 per cent up to 25 per cent for existing and new tenants in line with customer loyalty program, leading to 85 per cent tenants’ retention. It also allotted 10 per cent of its annual procurement and projects to Dubai-based SMEs, including more than 25 per cent reduction on annual rent. The latest initiative defines a freelancer as a sole practitioner who conducts his business in his birth name as opposed to a brand name. Freelancers, who manage their own schedule, will have the flexibility to choose the company they work with and the projects they accept. When applying for a work permit in Dubai South, they must
be a degree holder and they should submit a professional certificate or proof of relevant freelance experience. The guidelines also state that no lease is required to be granted the permit and benefiting from the Free Zone privileges while maintaining a sustainable business environment and 3 years visa. Khalid Abdulla Ahmed, Vice President – Licensing and Regulatory Affairs, Dubai Aviation City Corporation, noted: “we made the decision to issue this special permit to keep up with the dynamic changes that we have been seeing over the past years. This is in line with the UAE’s phenomenal rise as a leading business hub which is reflected by a clear long-term vision towards sustainable development by the country’s leaders.” www.cbnme.com
A p r i l 2019
DP World recognised for excellence in sustainable developments by UN
Global trade enabler DP World’s Global Education Programme (GEP) for 8 – 14-year-olds features as a case study in the latest UAE Sustainable Development Goals (SDG) report. This programme is being implemented across DP World’s international network of 40 countries and aims to engage 34,000 children by 2020. The programme enlists the company’s 45,000 strong workforce to deliver modules in local schools as part of their volunteering leave. It covers a wide range of topics to engage young people on the subject of ports, trade and logistics, a little-known and often overlooked, yet crucial element of the world economic system. Programme modules include guidance and delivery notes, lesson plans, student activities, and worksheets and have been rolled out in 14 languages. The lessons were initially piloted in the UAE, India, Pakistan, Senegal, the United Kingdom, Argentina, and the Philippines and subsequently launched across the rest of DP World’s network on six continents. A survey of participants shows that 97.3% of teachers believe the programme provides something the school couldn’t, while 96.6% of students believe that they learned something new. More than 580 volunteers in 18 countries have participated and delivered the modules to date, and 94% of employees say their job satisfaction has increased after taking part in the programme. DP World Group Chairman & CEO Sultan Ahmed Bin Sulayem said: “Sustainable development has been the cornerstone of the UAE’s policy-making. As part of this, we are committed to supporting the 2030 Agenda for Sustainable Development while enabling trade and economic development. Our Global Education Programme also reflects our commitment to support better educational standards internationally. The programme aims to boost the skills, aspirations and confidence of young people in the communities where we operate, raising awareness about our sector and related career opportunities. The programme also helps us develop a talent pipeline of future employees for our business.”
New opening
Giti Tire opens first Middle East flagship store in Dubai
Singapore based Giti Tire has inaugurated its first flagship store in the Middle East. In partnership with Amin Auto Care, the event included a ceremonial signing of a Commitment to Service, as well as remarks from executive director of international sales and marketing, Chris Bloor, as well as others. “This flagship store opening event is symbolic of Giti opening new doors in Dubai accross the region”, explained Bloor. “The Middle East is
important to Giti Tire’s objectives, and providing top service and quality in the region will continue to be a major focus, across all tires types and segments. We are happy to partner with Amin Auto Care for this exciting event and beautiful location.” Based in Singapore and one of the world’s largest tire companies with $3.4 bn revenue in 2017, Giti Tire has had a strong presence in the Middle East for more than 25 years, selling different brands in the region.
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Logistics News ME | April 2019 | 15
Regional News
Expansion
Trustworthy.ae Group breaks ground on its first facility in KIZAD Dubai-based Trustworthy. ae Group announced the groundbreaking of its first Inland Container Depot (ICD) and a third-party logistics (3PL) facility in Khalifa Industrial Zone Abu Dhabi (KIZAD), one of the largest industrial zones in the Middle East and a subsidiary of Abu Dhabi Ports. Hayleys Advantis Limited, the transportation and logistics arm of multinational conglomerate Hayleys Group, will manage and operate the two facilities. Advantis brings forth over two decades of experience in ICD and 3PL management, with it operating multiple facilities across the South Asian region. Trustworthy.ae Group’s ICD and 3PL facility, located in close proximity to the Khalifa Port, will be geared up to serve the expected rise of container volumes to 8.5 million twenty-foot equivalent units (TEUs) from existing 1.5 million TEUs per annum over the next five years. “Today’s groundbreaking ceremony marks an important milestone on our project. Trustworthy. ae Group’s investment in building the ICD and 3PL facility in KIZAD demonstrates our continued commitment to the UAE,” said Mr. Abdul Lathif, Managing Director, Trustworthy.ae Group. “We are proud to collaborate with Hayleys Advantis Limited on this exceptional project who are leaders in managing and providing world-class depot and logistics facilities. We 16 | Logistics News ME | April 2019
are confident that Hayleys Advantis will set a new benchmark for quality and service in the Middle East region,” he added. Mr. Samir Chaturvedi, Chief Executive Officer at KIZAD, said: “We are pleased to celebrate the groundbreaking of Trustworthy. ae Group’s first Inland Container Depot and thirdparty logistics facility – two major developments that will support the trade of goods to and from Abu Dhabi across a wide spectrum of industries. The investment of Sri Lanka’s leading logistics firm at our industrial zone is testament to KIZAD’s established position as a global industrial
and trading hub. The vast scale of these new facilities, along with the expansion of Khalifa Port and surrounding transport infrastructure, will support the growth of container volumes across the region over the coming years.” Commenting on the collaboration, Mr. Ruwan Waidyaratne, Managing Director of Hayleys Advantis Limited, said: “We are indeed delighted to be partnering the Trustworthy.ae Group on this project and look forward to serving the Abu Dhabi clientele. This being our first project in the Middle Eastern region, we are intent on making a meaningful impact by utilizing the
experience and expertise we have developed over the years, by operating in multiple countries in the Asian region.” Trustworthy.ae Group will use state-of-the-art equipment in both the facilities that will help improve transit time and reduce costs for the trade. The ICD will deploy advance intralogistics practices and equipment from the global industry leaders to handle, transfer and stack empty containers. The depot will also adopt most advanced mobile technology to increase efficiency and mobility of the workforce in order to ensure the highest level of services. www.cbnme.com
A p r i l 2019
Quote DP World will position the Infor GT Nexus Commerce Network to help achieve its objective of a leading position in worldwide supply chain services” Jonathan Wood, Infor General Manager (IMEA), on DP World joining the Infor GT Nexus Commerce Network
Top 5 online
1
DP World joins the Infor GT Nexus Commerce Network
2
Saudia Cargo appoints new executive director for worldwide operations
3
Continental announces new leadership for its MEA operations
4
Al Madina Group inaugurates new headquarters at Dubai Industrial Park
5
Abu Dhabi to host first-ever World Road Congress to be held in the Middle East
Appointments
Continental announces new leadership for its MEA operations
Continental, the leading German tyre and automotive technology company, has announced the appointment of Karel Kucera to lead the company’s Middle East and Africa operations as the new Managing Director. A Continental veteran of almost 20 years, Kucera took on the new role on 1 March 2019 and will be based in the company’s regional office in Dubai, overseeing more than 19 markets across the region. The announcement comes at an exciting time for Continental in the region, with the recent opening of the company’s first ever office in Saudi Arabia to support the growing demand for Continental’s products and services in the Kingdom. In his new role, Kucera will also lead the recently unveiled expansion plans for Continental that include the first-of-its-kind warehouse in the region, located in Jebel Ali, Dubai. The facility will act as a hub, connecting plants in Europe, North America and South America with the brand’s distribution partners in the Middle East. Jon Ander Garcia, Continental Regional Manager Africa & Middle East, commented: “Karel has an exceptional track record with the company, with an
in-depth knowledge of the business. His experience is second to none.” He continued, “The region has proven to be a key market for Continental since the establishment of the brand’s regional representation office in 2009. There is a great deal of potential in the Middle East and many opportunities for Karel to capitalise on and add to his previous achievements.” Prior to his new Middle East role, Kucera served as the Regional Managing Director of ContiTrade Central & East, Northwest Europe, located in the company’s headquarters in the Czech Republic. During his time at Continental, Kucera has held several positions within the sales and marketing divisions, across both the Passenger & Light Truck Tyres (PLT) and Commercial Vehicles Tyres (CVT) Business Units. Kucera said: “It is such a privilege to be given this great opportunity to lead on one of the key global markets for Continental. We have a strong team and highlyqualified local partners in place with whom I look forward to working closely to further grow the Continental business in the region and promote what the company has to offer from premium tyres and mobility solutions.” Logistics News ME | April 2019 | 17
Regional News
Supply chain
Al Madina Group inaugurates new headquarters at Dubai Industrial Park
Dubai Industrial Park, one of the largest industrial hubs in the region and a member of TECOM Group, hosted a reception to mark the opening of the new corporate headquarters of the UAE-based Al Madina Group. The new 400,000 square feet complex, which also houses Al Madina Distribution Centre that services the whole of the UAE, and its industrial manufacturer of bakery and ready-to-eat products Oasis Cuisines, commenced operations following the ceremony. The 400,000 square-foot complex with an investment 18 | Logistics News ME | April 2019
of over AED200 million was purpose built on a 700,000 square-foot plot of land in Dubai Industrial Park, and is strategically situated close to Maktoum Airport, Jebel Ali Port, the Expo 2020 Dubai site, and key highways linking the seven Emirates as part of Al Madina Group’s extensive expansion into the regional and international market. Within the same complex, Al Madina Distribution Centre will supply all the Group’s FMCG products to over 100 branches of Al Madina Hypermarket in the UAE. Oasis Cuisines–one of
the largest industrial bakeries in the UAE–will distribute its fresh goods all over the UAE from its new location. The industrial bakery, which is engaged in the manufacturing of bakery, confectionery, sandwiches, hot meals and more than 250 ready to eat products, is best known for its brands BreadKing, Royal Breads and Fresh from Dubai. Speaking at the event, Saud Abu Al-Shawareb, Managing Director of Dubai Industrial Park said: “We are pleased to welcome Al Madina Group to Dubai Industrial Park. In line with our mandate to grow
the industrial sector in the country, we are committed to meeting the evolving needs of manufacturers and other complementary business operators through our advanced infrastructure; integrated solutions that cater to a business’s corporate, industrial and logistical needs; and the collaborative approach we take with our business partners. We look forward to enhance the success and growth of Al Madina Group even further.” On behalf of Al Madina Group, Abdulla Poyil said: “We are dedicated to bringing the best quality of products and services to the UAE community at affordable prices, and offering an enjoyable shopping experience to our customers in the fast-growing local market. Consolidating all our group’s operations in one central location will be key to enhance efficiency even further, and is an important step in our extensive international expansion plans.” Dubai Industrial Park, one of the largest industrial and manufacturing hubs in the region, provides intelligent infrastructure and integrated solutions for businesses. The destination hosts over 250 factories and more than 700 business partners in sector-specific zones, including major local and multinational organisations such as Unilever, Emirates Printing Press, Al Futtaim Logistics, Almarai Group, SIKA, and Patchi. www.cbnme.com
A p r i l 2019
New opening
Saudia Cargo appoints new executive director for worldwide operations
Saudi Airlines Cargo Company has appointed Per Hojlandto the position of Executive Director, Cargo Operations Worldwide. Per, a Danish national, took up his new position in Jeddah in March. He joins Saudia Cargo after having spent the past 25 years in various roles in the air cargo- and logistics industry, having worked for companies such as SAS and Spirit Air Cargo Handling, as well as logistic companies outside the aviation sector. In his new role, Per will be responsible for the management of all Saudia Cargo’s International operations including overseeing the standards and services world-wide. “Per has vast experience in the air cargo industry and within logistics and this will make him a great addition to
our team. We look forward to him making a valuable contribution to our business and customer services,” said Teddy Zebitz, Chief Air Cargo Officer, Saudia Cargo. “I am proud to be joining Saudia Cargo with its strong vision for the future and I look forward to be a part of the Saudia Cargo team and contributing to its continued success,” said Per. Saudia Cargo has an extensive global network spanning four continents, 225 international destinations, and 26 domestic destinations, it operates a modern dedicated freighter fleet and offers an ample capacity on Saudia passenger fleet with a wide range of products, it renders a high level of service whilst continuing to deliver costeffective solutions
DP World recognised for excellence in sustainable developments by UN
Global trade enabler DP World’s Global Education Programme (GEP) for 8 – 14-year-olds features as a case study in the latest UAE Sustainable Development Goals (SDG) report. This programme is being implemented across DP World’s international network of 40 countries and aims to engage 34,000 children by 2020. The programme enlists the company’s 45,000 strong workforce to deliver modules in local schools as part of their volunteering leave. It covers a wide range of topics to engage young people on the subject of ports, trade and logistics, a little-known and often overlooked, yet crucial element of the world economic system. Programme modules include guidance and delivery notes, lesson plans, student activities, and worksheets and have been rolled out in 14 languages. The lessons were initially piloted in the UAE, India, Pakistan, Senegal, the United Kingdom, Argentina, and the Philippines and subsequently launched across the rest of DP World’s network on six continents. A survey of participants shows that 97.3% of teachers believe the programme provides something the school couldn’t, while 96.6% of students believe that they learned something new. More than 580 volunteers in 18 countries have participated and delivered the modules to date, and 94% of employees say their job satisfaction has increased after taking part in the programme. DP World Group Chairman & CEO Sultan Ahmed Bin Sulayem said: “Sustainable development has been the cornerstone of the UAE’s policy-making. As part of this, we are committed to supporting the 2030 Agenda for Sustainable Development while enabling trade and economic development. Our Global Education Programme also reflects our commitment to support better educational standards internationally. The programme aims to boost the skills, aspirations and confidence of young people in the communities where we operate, raising awareness about our sector and related career opportunities. The programme also helps us develop a talent pipeline of future employees for our business.”
Logistics News ME | April 2019 | 19
Regional News
A p r i l 2019
Technology
RTA Smart Traffic Systems expansion project has reached 23% completion rate
HE Mattar Al Tayer, DirectorGeneral and Chairman of the Board of Executive Directors of Dubai’s Roads and Transport Authority (RTA), announced that work completion on the expansion of RTA’s Smart Traffic Systems Project has reached 23%. The Project is undertaken under the implementation of the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to broaden the scope of smart traffic systems in support of ranking Dubai as the 20 | Logistics News ME | April 2019
smartest city worldwide. Hence, it entails using smart technologies to ease people mobility in Dubai. Al Tayer made such announcement following a recent tour to the site of the new Traffic Control Centre at Al Barsha, which is intended to expand the coverage of Dubai roads by smart systems network from the present 11% to 60%, and cut the time of detecting accidents and congestions build-up on roads and ensure quick response. It will also provide instant traffic information to the public about roads condition via
new Variable Messaging Signs and smart apps, and enhance the efficient management of traffic movement during major events, such as Expo 2020. Al Tayer was briefed about the progress of building the new control centre; which comprises four divisions: traffic control centre, two wings for support offices and the reception lounge connecting the four divisions. It also has an attached utility building for electricity and air-conditioning units. “This project is part of the deliverable of the Innovation Lab (RTA Route 2030)
endorsed by HH Sheikh Mohammed bin Rashid Al Maktoum. It entails upgrading and expanding the smart traffic systems in Dubai by providing an integrated infrastructure of smart traffic systems in the Emirate and constructing a new traffic management centre at Al Barsha. Upon completion, the project will ease the management of traffic bottlenecks and accidents, enhance the safety of road users, and ease personal mobility, thanks to the use of sophisticated technologies,” concluded Al Tayer. www.cbnme.com
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Bespoke Logistics Project of the Year 2017
Domestic Logistics Service Provider of the Year KSA 2017
GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017
C o v e r S to ry
We find out why King Abdullah Port is uniquely placed to offer a faster gateway from the East to West
22 | Logistics News ME | April 2019
A p r i l 2019
36%
Annual throughput 2018: 2,301,595 TEU, 36% increase
King Abdullah Port is not only an increasingly important trade route linking the Middle East with the Chinese, African and European markets, it also represents a powerful statement of intent designed to transform the entire economy of a country and the trade dynamics in the region. King Abdullah Port lies directly on the main Asia- Europe cargo route, and with the emergence of China and India as major world economies offer East-West cargo vessels the decisive competitive advantage of reduced transshipment times of as much as five to seven days over other regional port routes from Europe to Asia and vice versa. It occupies an impressive total area of 17.4 km² and has the added advantage of being in close proximity to King Abdullah Economic City’s (KAEC) Industrial Valley (IV), the main petrochemical hub on the red sea and the three major cities Jeddah, Makkah & Al Madina Al Munawara. Today the thriving Red Sea facility is a glowing testament to the ambitions of a nation and a significant global maritime desti-
Logistics News ME | April 2019 | 23
C o v e r S to ry
5m
Current infrastructural capacity: 5 million TEU
nation which is perfectly located to connect East with West. It is an emerging success story which supports Vision 2030 and is designed to complement the growing ambitions of upwardly mobile Saudi citizens. Public-Private Partnership King Abdullah Port is one of the largest infrastructure megaprojects in the entire Middle East carried fully by the private sector and is evidence of the success of public-private partnerships in Saudi Arabia, which represent a key pillar of Vision 2030. As the first fully privately owned, developed and operated port in the region, it is built on an entirely on greenfield site and boasts an impressive hi-tech infrastructure and superstructure, which is continuously being enhanced with the latest advanced technologies and operational systems. The practical benefits of being a uniquely fully privately owned port are that users get to utilize a customer-centric facility which is entirely solution oriented and dynamic in approach. The port has already established strong partnerships with shipping companies, banks, and global port operators, with total investment exceeding $3.46 billion. Eight of the largest
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shipping lines operate at the port to offer integrated services to importers and exporters, and its future development plan is based on a clear vision to become one of the world’s leading ports - already King Abdullah Port’s roll call of partners includes shipping company and sector giants Maersk, MSC, and CMA CGM. In October 2017, King Abdullah Port awarded a 25-year concession for its first cargo and breakbulk facility to AMSteel, a specialist in port operations. Although break bulk cargo handling activities at the port only began last year, King Abdullah Port has already set an impressive one-day record of 27,000 t for break bulk cargo and is growing in significance. In its few years of operations, King Abdullah Port has come to handle significant amounts of clinker, rebar, scrap and project cargo and is realizing its role as an economic booster while this year will witness the kick off for Al Marai facilities the leading dairy company at the Processing and Servicing Zone adjacent to the Bulk Terminals. Unique Selling Point King Abdullah Port’s unique selling points are numerous, the most notable being the
fact the port forms part of KAEC and the adjacent IV, which gives users direct access to extensive external transportation facilities which include an ultra-modern highway network and the new Haramain High-Speed Railway. King Abdullah Port also offers access to the forthcoming Saudi Landbridge Project which, once built, will provide a straight connection to Riyadh, Dammam and the rest of GCC countries. With state-of-the-art processing facilities, 30 of the world’s deepest 18-m water berths and a fully-integrated Port Community System, King Abdullah Port is already handling a rapidly increasing number of mega-sized cargo ships and is well on its way to meeting its goal of becoming one of the top ports worldwide. It is equipped with cranes that are among the most sophisticated in the world and has around-theclock clearance for incoming cargo. Vision The creation of King Abdullah Port started with the visionary realization that the Kingdom of Saudi Arabia required a world-class port capable of receiving the largest cargo ships on the planet to handle the growing
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portation networks and urban centers, the port already displays all the ideal characteristics of a global logistics hub and offers access to a market of more than 400 million consumers throughout the entire Middle East. The honored presence of HRH Prince Mohammad bin Salman, Crown Prince, Vice President of the Council of Ministers and Minister of Defense, at King Abdullah Port’s official inauguration in February this year represented a hugely significant moment in the facility’s short lifespan. The Crown Prince’s visit and generous patronage of the ceremony was a pivotal occasion and truly confirmed King Abdullah Port’s importance to Vision 2030 and the entire Saudi nation. No less than Capt. Gianluigi Aponte, Founder and Group Executive Chairman of the influential MSC, the world-renowned shipping industry leader, has praised the quality of the world-class services offered by King Abdullah Port to international shipping companies. At the port’s inauguration Capt. Aponte said: “The strategic location of King Abdullah Port will enable it to effectively contribute to the socioeconomic growth of the Kingdom and the Gulf region in general, which has the potential to become a key logistics hub for global trade.”
needs of a young, fast-growing population increasing 2.5% annually. The port also had to combine the aspirations of the Kingdom to establish an economy that was non-dependent on oil with a truly inspirational project which was capable of transforming the Kingdom’s competitive approach to the everchanging and increasingly globalized world.
While the port’s effectiveness as an economic stimulant will become even clearer in the years to come, it was certainly an inspiring decision to locate King Abdullah Port on the coast of the Red Sea in the midst of the main East-West trade route. Strategically located on one of the world’s busiest maritime shipping lanes and with direct access to extensive trans-
Corporate Social Responsibility There was further good news for King Abdullah Port in February this year when the Chinese and Saudi governments signed a cooperation agreement to jointly develop maritime transport, maritime studies, and specialized training. The deal included the provision of scholarships for Saudi students, an exchange of ideas between the nations, and an agreement to transfer technology to maritime transport organizations in both countries. Although the package was aimed at longterm development, it further boosted the international reputation of the maritime sector in Saudi and represented an opportunity for King Abdullah Port to attract Chinese companies in order to benefit from the Bonded and Re-Export Zone and explore new markets in the region, including East Africa. In just under a decade of planning and six years of operations, King Abdullah Port has carved a growing reputation for excellence amongst the global maritime sector and established a reputation for world-class professional services and the fast and efficient turnaround of cargo. Having enjoyed a rapid expansion rate of expansion that is set to further increase as more facilities are added, the port’s future looks extremely bright and it looks all set to become one of the world’s leading ports in the years ahead.
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Site visit
We talked to Aditya Rajaram, Managing Director Radar Holdings, on why opening a hotel in Dubai South, the logistics and aviation district of Dubai, is the right move
Aloft Dubai South is the first hotel to open in Dubai South and delivers a tech-forward approach and a modern style that is different by design to the bourgeoning business and trade district. Dubai South prides itself on attracting the best in class companies from global conglomerates to start ups and the hotel is intended to be a catalyst in attracting companies to set up a base and execute their long term vision. “Aloft Hotels was conceptualized to revolutionize the select-service space. They are the next generation of hotel, using technology & design to enhance experiences and
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move at the pace of their guests. Aloft Hotels are for the forward thinking, design-savvy, tech enthusiasts that live both online and offline,” said Aditya Rajaram, Managing Director Radar Holdings. “Aloft Hotels are open in space and spirit, where a digital lifestyle is empowered with fast, free WiFi and novel experiences to share and bring people together. Where live music meets great design. Where high ceilings give ample room for lofty ideas. Aloft Hotels creates an affordable alternative for the next generation of business and leisure travelers and in the process, have reinvented the select service
sector,” added Aditya. As a growing neighborhood and community, awareness has been a key focus for the area. Showcasing the incredible infrastructure that has been created and the massive number of companies that already call Dubai South their home has been key to generating demand to the area. Being close to the border of Abu Dhabi, travel distance has also been part of the learning curve. However, given that E11, E311, E611 are three pain-free avenues to reach Dubai South along with the continuous development of the area due to Expo 2020, Dubai Parks and Resorts and Al Mak-
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toum Airport, the area continues to minimize the travel time concerns. With the opening of the expo metro station, increased public transit and handover of thousands of residential units, the area is ready to become a key community in the years to come. “The Expo will go a long way to secure Dubai’s and Dubai South’s position as a key trading hub and catalyst to new technologies, industries and legacies,” remarked Aditya “We built this hotel to deliver the highest quality level of product, service, and convenience at the right price point. Aloft Dubai South is committed to delivering everything
a business traveller needs, when they need it. Surrounding businesses and travellers to the area benefit from a competitive price point and convenience in terms of location to business, ease of doing business. The hotel boasts 145 loft-inspired leisurely guestrooms, including six Savvy corner-rooms, and savvy technology. All rooms feature the brand’s signature offerings, such as an ultra-comfortable plush bed, walk-in shower, custom amenities by Bliss Spa, fast & free Wi-Fi, and 49-inch LCD TVs, custom USB and universal sockets throughout the room and Google Chromecast that allows guests to stream their own content
during their stay,” said Aditya. The hotel boasts a range of dining and social spaces including Nook, an all-day casual dining outlet serving international cuisine, and the Aloft brand’s signature W XYZSM Bar and Re:mix Lounge. For those on the go, the property offers Re:fuelSM by Aloft, the brand’s signature 24/7 grab and go venue, provides light meals, mix-and-match munchies, healthy bites, beverages and more. The hotel will also offer the iconic global Live At Aloft Hotels programming that showcases live acoustic performances by up-and-coming artists. Other facilities at Aloft Dubai South include a 24 hour
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“We built this hotel to deliver the highest quality level of product, service, and convenience at the right price point” Aditya Rajaram, Managing Director Radar Holdings
Recharge fitness center, an outdoor Splash pool and four Tactic meeting rooms equipped with state-of-the-art A/V equipment and fast and free WiFi. Dubai South is primarily a logistics and aviation mega-development and a high-quality, unique hotel is the start to building a great community for one of the most dynamic and important areas in Dubai. “We built this hotel to deliver the highest quality level of product, service, and convenience at the right price point. Aloft Dubai South is committed to delivering everything a business traveller needs, when they need it. Surrounding businesses and travellers to the area benefit from a competitive price point and convenience in terms of location to business, ease of doing business,” said Aditya. Being a government entity, Dubai South has certain rules and regulations around development of a hotel close to an airport. However, Dubai South once they understood the value that a hotel could bring to this area they were supportive. “We could not have found a better partner in Dubai South. Once the management understood our vision in bringing in a world-class operator and brand, delivering value to their visitors and residents, they opened every possible avenue to support our development goals and help us achieve our targets. Furthermore, even after we opened they have been extremely supportive in growing our presence, making introductions to their key partners and helping us become a part of their community.”
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P o rt s
Port Automation Although ports have adopted automation more slowly than comparable sectors, notably mining and warehousing, the pace is now starting to accelerate. On top of automation we also see how ports are now utilising digital data to maximise their productivity and efficiency. We discuss with some of the port industry leaders about the crucial role automation and how adopting digital technology has been critical in enhancing their services
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Abu Dhabi Ports
Ross Thompson, Chief - Commercial and Strategy Officer at Abu Dhabi Ports, tells us how digitisation and advancement in automation is helping ports become more efficient
Market Expectations In this region, we still see a lot of growth, particularly in terms of industrialisation. For Abu Dhabi Ports, its subsidiary, Khalifa Industrial Zone Abu Dhabi (KIZAD), the integrated trade, logistics, and industrial hub, play an important role by attracting foreign direct investment, particularly from China. For example, 19 Chinese companies have signed lease agreements for land in the demonstration zone established within the Khalifa Port Free Trade Zone, part of KIZAD. This follows an agreement inked in August 2017 between Abu Dhabi Ports and the Chinese Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC). Indeed, ports play a central role in realising the Abu Dhabi Economic Vision 2030, with Abu Dhabi Ports contributing 3.6% of the emirate’s non-oil GDP in 2017. Situated in the heart of strong growth markets, including the Middle East, Africa and South Asia, the UAE offers access to approximately 4.5 billion consumers within four time zones. In fact, more than 100 capital cities can be reached in six hours or less by air. We have leveraged this strategic location along important trading routes to solidify Abu Dhabi’s position as a global trading hub. Our success was illustrated in December when COSCO SHIPPING Ports inaugurated CSP Abu Dhabi Terminal at Khalifa Port; positioning Abu Dhabi as the regional hub for its global network of 36 ports.
can save trucks anywhere from 12-40 minutes on turnaround time. The advent of the fourth industrial revolution promises to completely change how we work and live. Industries around the world, including ours, are at risk of being disrupted by technologies and trends such as the Internet of Things (IoT), robotics, blockchain, virtual reality, and artificial intelligence. Maritime transport is critical to the world’s economy as 90% of the world’s trade is carried by sea and it is by far the most cost-effective means of moving heavy goods around the globe. The challenge for our industry is to keep up with this rapid change of pace and to harness the benefits of these new technologies whilst mitigating the risks. A number of innovations also help set us apart. Firstly, Abu Dhabi Ports is the first UAE entity to test blockchain technology with an international maritime operator like MSC. We first unveiled our blockchain pilot project – called Silsal - in June 2018, and since then, it has been rolled out in phases and will be offered first to freight forwarders and their customers, and subsequently extended to the rest of the trade community as a complementary tool to the Maqta Port Community System.
Ports Automation Innovation is a core part of our growth strategy at Abu Dhabi Ports, and we are constantly assessing ways to harness technology to streamline our processes and operations. We’re proud to say that Khalifa Port is the first semi-automated port in the region, with a fully-automated security gate that is linked to an online clearance and ePass system. When container vehicles enter the port via the advanced Gate Management System (GMS), downtime is cut almost a fourth to 8 seconds from 30 seconds. This automation
Digitisation Maritime transport is critical to the world’s economy as 90% of the world’s trade is carried by sea and it is by far the most cost-effective means of moving heavy goods around the globe. The challenge for our industry is to keep up with this rapid change of pace and to harness the benefits of these new technologies whilst mitigating the risks. Silsal was originally conceived to address a gap in the market for exporters and importers, providing easy and public access to transaction status updates, reducing the need for paperwork, calls and physical visits, and speeding up information exchange overall. Silsal’s international pilot project will test the capabilities of the technology to exchange, identify and acknowledge cargo documents and certificates between Abu Dhabi Ports and the Port of Antwerp, marking a significant milestone in the project’s operational progress.
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Gulftainer – Sharjah Container Terminal Peter Richards, CEO of Gulftainer, tells us how digitisation and advancement in automation is helping ports and terminals become more efficient
Market Overview The UAE has clearly established itself as a transhipment hub of the world, especially in the Europe-Asia trade lane, leveraging not just its geographical advantage, but its ability to support the maritime industry with best-inclass infrastructure and technology. The sector accounts for 30 to 35 percent of total regional maritime sector investment and currently contributes to 7% of the UAE’s GDP. The country’s container port traffic, specifically, is on the rise and expected to grow to 28.4 million TEUs by 2021, according to DCCI. As a global trade hub, the country’s approach is strongly rooted in digital advancement, world-class infrastructure, and innovation. In line with this approach, at Gulftainer, we have continued to invest in our facilities with upgrades at our flagship gateway terminal, Sharjah Container Terminal (SCT), expanding the full container storage yard by over 17 per cent along with its ability to operate larger vessels. We continue to enhance our capabilities to meet the evolving needs and expectations of our customers and are committed to the con-
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mega vessels, ensuring that they are moored with greater stability than is possible with conventional line-based mooring. Consequently, this allows port operators to handle the larger number of containers more efficiently. At Gulftainer, we have consistently strived to synchronise with global shipping trends, as demonstrated by our digital transformation strategy. With advanced software and technology in place, Gulftainer has managed to maintain its competitive edge during the era of mega ships. This has enabled Gulftainer to offer more e-services, which minimises the delays of querying and processing information in the legacy manual format. We intend to adopt a hybrid of full automation and semi-automation at Gulftainer. For example, when it comes to quality, health and safety protocols, we are working towards full automation. However, where efficiencies are considered, and human intervention is key, we favour semi-automation. There are several aspects of the business that still require the human element. In our view, smart shipping is the optimum combination of human capital and technology.
stant development of infrastructure across our facilities in the UAE – SCT, Khorfakkan Container Terminal and Hamriya Port – to ensure fast and efficient service delivery to all terminal customers. We will also continue to invest in technology and digitization, which we believe holds immense potential for the industry and can help us to benchmark our operations against best global practices. Automation Automated mooring for stabilizing mega ships is another technology being explored. This advancement is especially critical in the era of
The Role of Digitisation Adopting digital technology has been critical in enhancing our service offering and cutting down on operational delays. At Gulftainer, we have consistently strived to be ahead of the curve of global shipping trends, as demonstrated by our digital transformation strategy. This includes our in-house initiatives such as our ‘Performance Excellence’ program, EmPower, and the ‘Terminal Partnering’ collaboration projects with our customers. With advanced software and technology in place, Gulftainer has remained ready to welcome mega vessels to our facilities, enabling us to offer more e-services, which minimizes the delays of processing information in the legacy manual format.
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Ta l k i n g p o i n t
Future of Transportation Karim El Shennawy, Head of Business Development, ASGC, gives us an insight into the role ASGC plays in the transportation and logistics sector
ASGC has grown progressively over the last three decades with a clear vision for the future. Today ASGC is a multidisciplinary construction conglomerate comprising a group of manufacturing facilities and specialized construction service providers. The group of companies are involved in various sectors across the UAE and abroad, working on major landmark projects over the past 30 years. The company owns the majority of its supply chain and utilizes mostly in-house resources, giving it a high degree of control over the project’s complete operations.
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Projects & Market Overview Today, ASGC gives strategic importance to the infrastructure domain. This includes projects in the transportation & logistics sector. For example, we are currently pursuing two major schemes with Dubai Aviation Engineering Projects and Etihad Rail. We are also in final stages to hand over re-development works at Dubai International Airport. Our subsidiaries are similarly working on several infra-logistics projects. For instance, ASSENT, ASGC’s steel engineering subsidiary, is working on Kuwait International Airport
and on Riyadh’s Metro Station in KSA. Emirates Beton (EB) is working on the roads and city accesses projects in Al Awir. Within this field, our goal is to deliver all our projects with an uncompromising commitment to our customers’ needs, while exceeding their expectations through the application of cutting-edge technologies, processes, and practices. We believe the sector will continue to grow in the UAE following the government’s announced plans to continue investing in infrastructure this year. There are clear eco-
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Sustainability Pavilion
Kuwait International Airport
nomic benefits that will arise from developing these projects. In the railway sector, developing airports, and cruise terminals, for example, extending these networks to neighbouring countries will bring enormous social and economic value. The expansion plans for Al Maktoum International and Sharjah International Airport are other examples of the future growth ambitions that are in place in the aviation sector.
Expo 2020 Dubai The development of Expo 2020 Dubai has created a range of exciting projects in a relatively new region of Dubai. That has allowed the UAE’s operating companies to win new opportunities, and in return, the latter has created additional benefits to the local economy. ASGC’s group of companies, for example, are all operating to support the infrastructure boom associated with Expo 2020 Dubai. To-
day ASGC is overseeing the construction building of the Sustainability Pavilion. ASU is working on the MEP package for Route 2020 and the Thematic District. HPBS is working to provide concrete solutions to the Thematic District, while JML provides facades for several buildings. Moreover, ASI is taking the lead in constructing and fitting out a number of country pavilions. Future of Transportation Innovation in the sector is progressing at a fast pace. Alongside the standard building projects, we expect to see an increase in the number of transformational initiatives in the sector. In specific, these will utilize autonomous technologies to offer more advanced services to end users. These technologies require different types of projects that will be developed for the first time in the region. ASGC commenced its own internal digital transformation cycle around two years ago. This included 42 internal projects planned to support our group’s companies to be ready for the adoption of emerging technologies. This is done through pioneering new techniques and controls to remain prepared for the expected changes in the nature of projects, and the methods used to deliver them.
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F i n a n c i a l R e p o rt
A p r i l 2019
DP World reveals revenue growth of 20% in 2018 Global trade enabler DP World announces strong financial results for the year ended 31 December 2018. On a reported basis, revenue grew 19.8% and adjusted EBITDA increased 13.7% with adjusted EBITDA margin of 49.7%, delivering profit attributable to owners of the Company, before separately disclosed items, of $1,270 million, up 5.1%, and EPS of 153.0 US cents. On a like-for-like basis, revenue grew 4.2%, adjusted EBITDA increased by 6.6% with adjusted EBITDA margin of 54.1%, and earnings attributable to owners of the Company increased 7.6%. The main revenue growth of 19.8% was driven by acquisition of Drydocks World, Dubai Maritime City (DMC), Cosmos Agencia Maritima, Continental Warehousing Corporation (CWC) and Santos consolidation. While capital expenditure of $908 million was invested across the portfolio during the year, below the Group’s guidance of approximately $1,400 million in 2018. The company expects capital expenditure in 2019 to be up to $1.4 billion with investment planned mainly into UAE, Posorja (Ecuador), Berbera (Somaliland), Dakar (Senegal) and Sokhna (Egypt). DP World continued to invest in solution providers and acquired the integrated multimodal logistics player Continental Warehousing Corporation (CWC) in India, Cosmos Agencia MarĂtima in Peru, and the Unifeeder Group in Denmark, which operates the largest container common user feeder and growing shortsea network in Europe. The have also announced the acquisition of the pan-European logistics business, P&O Ferries. P&O Ferries is a pan-European integrated logistics business consisting of a market leading roll-on roll-off (Ro-Ro) ferries operation and a European transportation and logistics solutions provider, P&O Ferrymasters. P&O Ferries operates a fleet of 21 vessels on the Short Sea, North Sea and Irish Sea sectors across 11 ports whilst P&O Ferrymasters provides supply chain solutions in 19 European locations.
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F i n a n c i a l R e p o rt
Renault Trucks continues sales growth
In 2018, Renault Trucks recorded its fourth consecutive year of sales growth. The manufacturer has announced a rise of 7.6% in MHDV, and 15% in LCV Significant growth in volume in Europe In a dynamic European market for vehicles over 6 tons (up 4.2%), deliveries of Renault Trucks vehicles are up 7.6%. This has led to a slight increase in the French manufacturer’s market share, up 0.1 points to 8.5%. In the over 16-ton segment, Renault Trucks’ market share in Europe is up 0.2 points, at
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8.9%. For vehicles between 6 and 16 tons, market share is down 0.3 points (6.2%). Registrations are down 3.8% due to the stoppage of the Renault Trucks D cab 2m model. On a like-for-like basis, however, penetration remains identical. Renault Trucks has strengthened its position as a leader in its home market, with a 28.1% market share.
International sales marked by an upturn in Africa Deliveries of Renault Trucks vehicles have fallen 8.8% internationally, with 4,457 trucks invoiced. This downturn can be explained by the introduction of import quotas in Algeria in 2018. The manufacturer is particularly active in Africa, where sales have grown by 25% in 2018. In
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Bruno Blin, President of Renault Trucks
French-speaking Africa, Renault Trucks holds 20% of the premium range market (+1 point). In 2018, the constructor also recorded good performance in Turkey (+2.1 points with 5.8% of MS) and in the Middle East (+1.1 point with 6.4% MS). A record 23% increase of for Renault Trucks used trucks In 2018, Renault Trucks recorded a record increase in sales of used trucks, with 8,500 invoiced vehicles, up 23%. Used trucks service offers are also performing well, notably due to the Selection structure warranty, with a penetration rate of 18%, up 6 points. Used vehicles represent a strategic sector for Renault Trucks. In 2017, the manufacturer opened a “Used Trucks Factory” at its Bourg-en-Bresse plant to recondition its used vehicles. In 2018, 400 used trucks were reconditioned there to meet customer requirements (compared to 230 in 2017). The aim is for vehicles from the Used Trucks Factory to eventually represent 10% of total sales of used vehicles. After the T X-Road, Renault Trucks launched another model from its Used Trucks Factory in 2018, the T P-Road, a tractor converted into a rigid truck.
A breakdown in invoicing per destination • Europe (excluding France): 26,830 units invoiced (+13.5%) • France: 23,581 units invoiced (+10.1%) • Rest of the world: 4,457 units invoiced (-8.8%)
After-sales: spare parts turnover up 5% Renault Trucks after-sales division has reported steady progress of 5% in its spare parts turnover and a healthy increase in the sales of its maintenance contracts. With 32,000 vehicles under contract, the penetration rate of maintenance contracts grew by 5 points in 2018 to reach 23.6% (29% if Clovis Location contracts are included). 60,000 vehicles now benefit from a Renault Trucks maintenance contract or extended warranty. It is of note that Renault Trucks offers transporters ideal protection for operating with complete peace of mind, since the constructor has extended its guarantee warranty on spare parts fitted by an approved Renault Trucks service centre to 2 years, without any mileage restrictions. Renault Trucks preparing for the future Fuel savings and reducing CO2 emissions have always been a core concern for Renault Trucks. The manufacturer is, therefore, investing fully in complying with the limits set by the EU as regards CO2 emissions. At the end of 2018, Renault Trucks announced the launch of the 2019 versions of the T, D and D Wide models, designed to reduce fuel consumption by up to 7% compared to previous versions.
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Trucks
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Going Further
We caught up with Mustafa Caner Sinanoglu, Managing Director, Ford Trucks MEA, about their truck operation in the Middle East and about their latest award winning the truck the F-Max Ford Trucks have been in the UAE market now for the last five years and it has seen steady growth since then. The growth is not just in the UAE but in the Middle East and GCC region as well. According to Mustafa Caner Sinanoglu, Managing Director – Ford Trucks ME they are estimated to have around three to five per cent market share and in some market they have around 10 per cent. “We have more than ten per cent market share in Iraq and Kuwait. But in the short and mid-term we would like to have more than ten per cent market share all over the Middle East,” said Mustafa. “When we started in UAE and KSA we wanted to complete our expansion all over the Middle East and at this stage we have the right distributors who are our partners like Al Tayer Motors in UAE, Alghanim Motors in Kuwait, Mohsin Haider Derwish in Oman and Al Jazirah Vehicles in Saudi Arabia for example,” added Mustafa. Mustafa pointed out that they are trying to increase their network of distribution to more in cities in the GCC by opening up in Jeddah, Fujairah, Sohar, and Salalah. In 2018, there was a strong focus by Ford Trucks in the waste management and construction segment and Mustafa believes that with the number of new projects coming up in the region Ford trucks will be high demand. As a result of these new projects, Ford Trucks is already benefiting from it. Mustafa mentioned the fact they are going to be delivering over 165 trucks only in Saudi Arabia to show that the market is now responding to Ford Trucks. “It is important to see how the market views Ford Trucks so we have to show our values to our customers so we can improve our products according to what the market demands in the GCC. As a result of that, we
are seeing good results in this market.” When asked about what makes Ford Trucks unique he had this to say: “Total cost of ownership is the most critical part of our trucks and every action we are taking is trying to be more competitive and to support our customer by saving their costs. We are offering one of the best truck features in terms of total cost of ownership such as low fuel consumption, long intervals, competitive spare parts prices, long-lasting robust trucks, and telematics. Our downtime service is very low and we are offering extended warranty options up
to 5 years without any kilometer limitation. Furthermore, Ford Trucks offers both preventative and comprehensive service contracts which are designed always tailor to their operation s requirements. ” Currently, Ford supplies Euro 5 trucks in the UAE and Euro 3 trucks in the rest of the GCC markets. Ford Trucks also offers optional fleet management systems (FMS) powered by Arvento in the region. This system is specifically designed for Ford Trucks series which enables live monitoring of the vehicles; fuel consumption, tracking; sud-
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Trucks
A p r i l 2019
den fuel drop alert; intelligent dashboard; optimization of fleet management; driver behavior evaluation; and detailed reports and alarms. One of the truck models that is doing well is The F-Max, which recently won the 2019 International Truck of the Year award at the IAA Commercial Vehicles expo in Hannover. F-Max launch for the region is planned for June 2019. The Ford Trucks F-Max provides comfortable seating for drivers, an ergonomic dashboard of the new F-MAX provides easy access to all control systems, and highly efficient Ecotorq 480 PS ensures reduced fuel consumption with compatible powertrain systems. It also includes MAXCRUISE technology which enables more efficient use of the vehicle and reduces fuel costs. The system identifies the route using topographic GPS data and provides optimum speed range with its smart software to minimize fuel consumption. We also asked Mustafa about their after sales support and he said that the distributors in the region are well prepared when it comes to that but in case of any emergency the Ford Trucks team is always ready to provide the necessary support. “All Our dealers in the region have strategies and processes in place to keep right spare part available to them. We have daily flights from our International spare parts center to provide the parts that are necessary for our distributors, Thanks to Ford Trucks operation systems, a necessary item can always be sent to dealer workshops within a maximum of 48 hours “remarked Mustafa. Ford Trucks is also focusing heavily on the safety aspects of their trucks and their drivers. Ford driving academy provides the avenue for drivers to train, learn the features of the truck and how to remain safe on the road. The trucks themselves have features that would help prevent accidents from happening. For example, the usage of the lane departure warning system which has become compulsory for trucks in Europe, have been installed in those trucks to prevent any issues that would occur on the road. Although this device is compulsory in Europe it is not the case in the GCC but Mustafa believes that the region is taking the right steps to ensure road safety.
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D i g i ta l
Rail Landscape Kasun Illankoon spoke to Steve Cockerell, Industry Marketing Director – Rail, Bentley Systems, about his thoughts on transportation software, on how companies can benefit from it, and how the software can increase safety, service, and reliability.
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A p r i l 2019
Tell us more about the transportation software landscape in the Middle East? The Middle East transportation industry has always shown a strong desire to adopt the latest technology as part of a shared vision to design and deliver world-class infrastructure. This, of course, includes rail but also its connections to roads, airports, and seaports across the region. Recently, we have witnessed a noticeable shift by governments toward a more integrated or connected approach, investing in digitally led strategies to meet the complex challenges they face in ensuring the safe and reliable delivery and operation of transportation infrastructure. It is not software leading this charge but data. It is the data owned and managed by an organisation that will be its most valuable asset on a daily basis. Whereas previously, the work of different stakeholders involved in delivering projects might have been able to focus on their own discipline and deliverables, government bodies are now looking for the organisations involved to adopt more structured engineering information requirements, collaborate digitally, and then hand over or back the in-
formation to the project owner for use in downstream activities like operations and maintenance. For many, this shift in direction and pace will require a fundamental change in the way they do business. While this places continued emphasis on Bentley Systems to innovate, for example with further BIM advancements and the introduction of “digital twins” for infrastructure project delivery and asset performance, it will undoubtedly require organisations to do more than simply digitize previously manual and paper-based workflows. How can companies benefit from using this software? Bentley’s mission is to provide innovative applications and services for the enterprises and professionals who design, build, and operate the world’s infrastructure, and in doing so, help sustain the global economy and environment, for improved quality of life. As a trusted partner to many organisations in the region, and in addition to helping accelerate our users’ digital advancement mentioned in my previous answer, Bentley is helping them benefit in a couple of areas. The first thing we are working to enable is the industrialization of project delivery.
Through our “open” and integrated applications, we ensure that standards and best practices are adhered to on one project and propagated across many. These standards and best practices automate the processes and methods owners and their supply chains need to deliver capital projects. Moreover, Bentley applications increase repeatability, scalability, quality, and predictability, so that organisations can replicate their best projects’ successes. Secondly, we provide a framework and digital platform to improve “information mobility” among stakeholders and across the phases of an asset’s lifecycle. From planning to performance, the organisations and professionals working for these stakeholders need timely access to information they can trust to make the right decisions. Bentley’s open Connected Data Environment (CDE) enables users to leverage the engineering data or the “digital DNA” of a project to make better, more informed decisions. In terms of a project life cycle, how does Bentley Systems ensure that these projects are done productively and efficiently? Given that rail is a very complex industry there are an enormous number of engineer-
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D i g i ta l
A p r i l 2019
tioned. For example, templates for tunnel segments based on horizontal and vertical track geometry created in OpenRail ConceptStation and/or OpenRail Designer. Lastly, it’s also worth mentioning our recent acquisition of a company called LEGION that specialises in pedestrian simulation, and already supports more than half the world’s 40 largest transit agencies in this important area. The software offers modeling capabilities for people’s interactions with each other and physical obstacles, plus activities, including circulation and evacuations, within public spaces like railway stations.
ing challenges owners and their supply chains face during rail project delivery and our OpenRail solution is ideally positioned to help overcome these in many ways. The first thing I would say here is that OpenRail includes applications that span the whole asset lifecycle, from planning through design, engineering, and digital construction, to operations and maintenance of rail and transit infrastructure. OpenRail’s CDE is a set of cloud-provisioned services that enable firms to better manage and access consistent, trusted, and accurate information. Through this, our CDE ensures that the “BIM potential” created by multidiscipline digital engineering models can be fully realised during project delivery. The CDE enables owner-operators and their supply chains to share the benefits of seamless collaboration, which in turn helps improve decision making and deliver better business outcomes.
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OpenRail’s holistic approach also allows for the adoption of a systems engineering approach. Leveraging data within the CDE, our ComplyPro software simplifies the delivery of compliance and assurance on rail projects, reducing the cost and time typically associated with poor design visibility and/or build non-compliance. The key differentiator here is that ComplyPro allows engineering and delivery teams to manage assurance of the design and delivery process collaboratively over time, reducing the need for costly parallel processes and increasing the integrity, efficiency, and quality of assets constructed. I’d also like to highlight the imminent launch of OpenBuildings Station Designer. It helps organisations design, analyse, construct, and manage buildings of all types and scale. OpenBuildings Station Designer takes advantage of collaborative digital workflows with many of the other applications I’ve men-
Tell us how Bentley systems software, like OpenRail, is able to increase the safety, service, and reliability of a project? When you’re talking about service and reliability in rail it is really about operations and maintenance. Here the focus shifts from on time and on budget provision of the required assets to safe and efficient running of a railway, and it’s where Bentley’s OpenRail AssetWise applications move to the fore. With linear assets like track or overhead line information stored and used for analysis can be seen in registration against a schematic of the network that might include condition data from a track recording vehicle, groundpenetrating radar scans or walked inspections, plus work history. With OpenRail Operational Analytics, asset managers can review the information, analyse trending data, and identify problem areas before making informed decisions to resolve them. For non-linear assets, Operational Analytics offers the potential to use near real-time data from sensors on the asset, to warn when thresholds for either condition or performance are reaching potentially critical states. As we move further toward a big data world the use of analytics and the Internet of Things will become commonplace in our everyday work for a simple example right now might be a switch in the track. When arriving at work in the morning an asset manager might use a dashboard within OpenRail Operational Analytics to look at readings from sensors across his/her network. For example, they might discover the amperage on a switch is higher than it should normally be. Using the information stored in the CDE they can then drill into the data, look at maintenance records and/ or work history to see what corrective measures have been implemented at failure modes or suggested solutions.
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Technological Advancements in Automotive Aftermarket Future Big data and artificial intelligence to play a big role in Middle East’s automotive aftermarket future, experts say
An ongoing transformation in the Middle East automotive industry will have a sizeable impact on the regional aftermarket, with big data and analytics playing a pivotal role in how industry players optimise their value chain. Vishal Sanghavi, Project Manager for Automotive and Transportation at research and advisory firm Aranca, said megatrends such as shared mobility, electrification, connectivity and autonomous vehicles, will lead to a big shift in the redistribution of profits across the value chain, with the emergence of new technologies opening up fresh opportunities. “The global automotive industry is undergoing massive transformation and Mid-
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dle East is no exception to this change,” said Mr. Sanghavi. “Big data and analytics will enable aftermarket players to optimise the value chain end-to-end based on predictive maintenance while new technology providers will become an integral part of the automotive value chain.” Mr. Sanghavi said increasing demand for shared mobility will contribute to higher vehicle utilisation which will positively drive aftermarket revenues from spare parts and repairs, while connected cars in particular will allow repair and maintenance providers unique insights into customer needs. “Growth in connectivity delivers the possibility of closer, more immediate relation-
ships of aftermarket players with customers,” he said. “However, these players will have to develop competencies required to tackle increasing technological complexity of nextgeneration vehicles.” He advised manufacturers to focus on developing more connected car solutions, adding that connectivity is expected to be the fastest growing mobility trend in the region: “Advanced telematics solutions, vehicle-to-vehicle connectivity technologies and infotainment solutions are some of the most sought after innovations in the Middle East,” he said. “Connected car penetration, which stood at approximately 17 percent of vehicles on
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A p r i l 2019
Christophe Vloebergh, CASE Implementation Manager for Mercedes-Benz Cars Middle East
Jorge Bialade, General Manager of YallaMotor.com
Vishal Sanghavi, Project Manager for Automotive and Transportation at research and advisory firm Aranca
Middle East roads in 2018, is expected to witness a compound annual growth rate of 22 percent until 2023. About 6.7 million vehicles on the roads are anticipated to be equipped with some level of connectivity features by the end of 2023. New vehicle launches, especially within high-end segments are expected to incorporate built-in connectivity features.” Also speaking was Christophe Vloebergh, CASE Implementation Manager for Mercedes-Benz Cars Middle East; and Jorge Bialade, General Manager of YallaMotor.com, the Middle East’s largest automotive portal for the sale of new and used cars, car prices, car reviews and auto businesses. Mr. Bialade said aftermarket businesses can leverage online tools to better engage with customers, and agrees that big data and artificial intelligence will be critical: “It’s clear that digitalisation and e-commerce will reduce the current frictions and bring more transparency to the purchase phase.” “Additionally, big data and artificial intelligence will be an essential part for any business to better understand the customer needs. For example, everyone can eventually sell a battery, but those who are able to know precisely when that battery needs to be replaced will be at the forefront.” Mr. Vloebergh meanwhile, addressed the audience on Daimler AG’s Vision on the Future of Mobility and the manufacturer’s CASE (Connected, Autonomous, Shared and Electric) vehicle portfolio. “There’re so many changes we can expect to see in the auto industry, but if I have to choose one, I would say the expected switch from ‘solely exclusive car-ownership’ – as we all know it today – towards a more ‘shared mobility use’ in an autonomous way of course, will be the biggest change,” he added. “In the automotive sector, the upcoming 5-10 years will be more disruptive than the last 100 years, and this will also reflect in the aftermarket. On a worldwide scale and by 2025, we expect to sell +/-1 out of 5 cars as electric-driven. In some regions, such as the Middle East, we expect it to be around 10 percent. And every single new CASE mobility model will offer new aftermarket opportunities.”
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Dubai Customs inks “Virtual Stock Guarantee” MoU with Dubai Free Zones Council Following the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai of facilitating business procedures, Dubai Customs signed a memorandum of understanding with the Dubai Free Zones Council to help with the implementation of the “Virtual Stock Guarantee” initiative. The new facility was developed by Dubai Customs to support re-export activity from free zones to external markets within Dubai Customs’ efforts to help Dubai maintain a leading position and turn into a world economic capital. This initiative is the first of its kind in the world. The signing ceremony was attended by HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Free Zones Council, Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation and was signed by Dr Mohammed Al Zarooni, Secretary General of Dubai Free Zones Council, and Ahmed Mahboob Musabih, Director of Dubai Customs. More than 18,000 companies based in 24 free zones and 37 customs warehouses can benefit from the Virtual Stock Guarantee facility, in addition to customs warehouse companies willing to use it to re-export their 50 | Logistics News ME | April 2019
goods solely through Dubai’s air and sea ports, and the UAE land exits. According to the agreement, AED 455 billion will be released as company and warehouse securities: AED 327m in bank guarantees and AED 128 m in cash guarantees. HH Sheikh Ahmed Bin Saeed Al Maktoum said: “After developing a comprehensive geo-economic map of Dubai, this agreement follows hard on the heels of the foundation of the Dubai Free Zone Council as a fulfilment of the 2nd article of the 50-Year Charter which was launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. It’s the fruit of cooperation between
the Free Zones Council and Dubai Customs to leverage the virtual stock operation, which is the first of its kind in the world. This agreement also supports the 3rd article of the 50 Year Charter of creating the first virtual commercial zone in the region which will provide various facilities to investors, and help attract foreign direct investment, support the economy of Dubai, and enhance its position on the global map”. His Highness pointed out that the Free Zones Council keeps developing and adopting the latest future trends that meet and even go beyond the investors’ expectations. “This leverages our national economy and creates a very inviting and
attractive environment that employs the most advanced technologies to help entrepreneurs and businesses of different sizes get the best of our free zones, His Highness added”. Dr Mohammed Al Zarooni, Secretary General of Dubai Free Zones Council pointed out the Virtual Stock Guarantee provides more cash flexibility to different companies and licensed customs warehouses within the free zones. Now they can retrieve their securities and bank guarantees and use them to enhance their business and develop their operations, in parallel with enhancing the trade cycle at various. This will have its positive effect on the economy,” he said. www.cbnme.com
A p r i l 2019
Rental giant Byrne enters mobile access with big Genie order As part of a huge investment driving its expansion into the mobile access sector, rental giant Byrne Equipment Rental (Byrne) recently placed an order for 166 Genie mobile elevating work platforms (MEWPS). Comprising a broad mix of the brand’s latest scissor lifts and telescopic and articulating boom lifts, Byrne Equipment Rental received delivery of an initial 34 units this January – including its first Genie Xtra Capacity (XC) booms lifts. Completing this delivery will be an additional 132 machines, scheduled for handover by the end of March 2019. Since its founding 27 years ago, Byrne Equipment Rental has steadily grown to become one of GCC (Gulf Cooperation Countries) region’s largest and most diverse rental and leasing providers, supporting customers in a wide range of sectors including construction, infrastructure, oil and gas, power generators, manufacturing and events, to name but a few. Having already made itself a big name, notably for the provision of portable buildings and compressors, the company took the decision to invest further in mobile access equipment a year ago. Having chosen Genie to support the success of its expansion, today Byrne is poised to make a major impact the Middle East access rental market. “In recent years, demand for access equipment has grown dramatically
throughout the Middle East. This is where we see access as yet another rental and lease solution that complements our established business model, and more importantly, it underscores our supply capability in the equipment rental field as a true ‘one-stop-shop’,” says Steve Caygill, Regional General Manager, Byrne Equipment Rental. He continues: “As the market matures here in the GCC, we have seen a sizeable shift in demand for operational efficiency from our clients. With this comes the requirement for them to operate faster and more cost effectively, hence the need for suppliers that we can trust both in terms of best-in-class products, the scale and calibre of the supply chain, and local after-sales support coverage that dovetails into our culture of always adding benefit to our client’s expectations. In
every aspect, Genie ticks all the right boxes as a major global equipment brand. In addition to the production capacity of factories in the United States, Europe and China capable of ensuring the on-time delivery of a consistently high quality product, with the presence of a responsive local sales team and strong authorised service provider network, Genie provides Byrne the peace of mind in ramping up on this major investment initiative.” Johan Gericke, Genie Territory Sales Manager, Terex AWP Middle East, adds: “Byrne demonstrated great discernment every step of the way leading to its final purchase decision. Our team here is particularly proud to have been chosen by Byrne Equipment Rental, and we look forward to supporting them in every way possible to help ensure the success of their mobile access venture in the long-term.”
U.S. Chiller Services Awarded 3 District Cooling Plants at ADNOC
U.S Chiller services (USCS) is pleased to announce that they have been awarded the comprehensive operation and maintenance of 3 district cooling plants for the Abu Dhabi National Oil Company (ADNOC). USCS will be responsible for complete operation, maintenance, services and energy optimization of the three chilled water plants for five years beginning March 1, 2019. The three plants have a total installed capacity of 26,000 tons of electric driven centrifugal chillers. Re-commissioning/ retro-commissioning services started immediately upon award of the plants to ensure chiller and ancillary equipment reliability and optimum efficiency as well as set benchmarks for future ECM’s. Logistics News ME | April 2019 | 51
Unsung Heroes
April 2019
KHALED SHALHA
We talked to Khaled Shalha, Head of Marketing at King Abdullah Port, about his role and how he is helping contribute to King Abdullah Port’s success Goals and Objectives Since joining King Abdullah Port 6 years ago the main objective was how to carry out this amazing story to the world. It is a story full of strategic planning, insights, and courage. Establishing this unique business model of King Abdullah Port as one of the fastest growing ports in the world and in line with the most ambitious program of socioeconomic development set out in Vision 2030 doesn’t come but with teamwork and synergy. Representing a fully privately-owned port that is paving its way steadily to be one of the major global logistics hubs allows us to develop an entirely customer-centric, solutions-oriented approach to our business and marketing strategies. King Abdullah Port as Market Leaders First of all, I am proud to be part of a great group of dedicated professionals at King Abdullah Port where we share a clear strategy and defined goals that are structured around our customers’ needs and business results. Our role has been vital on both ends of the business spectrum, the customers and the business partners who are at our top priorities in harmonious sync to create common space between them as much as possible. This helped us to expand our customer’s base and to attract other business investors who are in respect of such a culture. Teamwork I and the team complement the King Abdullah Port values, we do live by these values and all of our professional and personal attributes have been utilized towards this. The professional behavior alongside with the knowledge we possess is the main factor, as myself I do have more than 18 years of experience in a wide range of industries that have helped me accumulate diversified knowledge that is topped with eagerness to achieve goals that I am fully confident my team will go the extra mile for it. I have always seen the marketing department as the soul of the business with all due
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respect to other departments, thus I have always strived to spread positivity among the team members and the strategic partners in order to encourage a culture of solid teamwork that is based on transparency and respect. This
is reflected through the joint activities that we do execute whether they are business related or not. Without this main pillar “Teamwork” you wouldn’t have seen King Abdullah Port achieving all of this within a five years’ time.
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Under the Patronage
H.E. Eng. Basim Bin Yacob Alhamer
Minister of Housing - Bahrain, Chairman of Bahrain Tender Board
Supported by
23 - 25 April 2019 Downtown Rotana, Kingdom of Bahrain
Key Event Highlights: Supply Chain Management
Digitization in Procurement
VAT Compliance
Talent Management Procurement Transformation
Legal Aspects of Procurement
Innovative Technologies and Solutions
• Inaugural keynote address by H.E. Eng. Bassim Bin Yacob Al Hamer, Bahrain’s Minister of Housing and Chairman of the Bahrain Tender Board. • An exclusive keynote address by Mohamed A. Bahzad, Secretary General of Bahrain Tender Board • Insights from over 20 highprofile speakers • 2 exclusive hands-on workshops on VAT and its implications in procurement, and re-evaluating your procurement process • An exhibition showcasing latest innovative products and solutions that can address your procurement challenges
19
CPD HOURS
Featuring the launch of:
Procurement Middle East Industry Recognition Awards
Provided by the Chartered Institute of Procurement and Supply (CIPS)
For more details visit: www.procurement-me.com/awards
Platinum Sponsor
Discount Code: LNME19 For delegate registrations and corporate table bookings, please contact: Naveed Ahmed conference@uae.messefrankfurt.com +971 56 6686038
Networking Exhibitors
Supporting Association
Improving Advantages
Media Partners
To register call +971 4 38 94 588
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The key exhibitions, conferences, and seminars coming up this month
April
9-11
April
16-17
Logi Pharma Europe Montreux, Switzerland LogiPharma Europe is a platform where the top minds in pharma supply chain, logistics, distribution, planning, IT, quality and sourcing meet and shape the future of their industry. With inspirational keynotes and small interactive working groups, benchmark your digitalization, end-to-end visibility, and customer-first strategies. ShipTek 2019 Dubai, U.A.E Previous editions of Shiptek has been extraordinarily successful and already established as one of the leading events on the Marine/Offshore/ Oil & Gas sector. Aimed at key decision makers and high level policy takers within the Marine/ Offshore/Oil & Gas sector, the event takes place at a time when there is growing optimism about the future of many sectors of the regional shipping business.
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April
23-25
April - May
29 - 1
Procurement Middle East Conference Bahrain After two successful editions, the 3rd Procurement Middle East Conference will be held in the Kingdom of Bahrain on 23 – 25 April 2019. The event is officially supported by the Bahrain Tender Board and is held under the patronage of H.E. Eng. Basim Bin Yacob Alhamer, Minister of Housing – Bahrain and Chairman of the Bahrain Tender Board. Airport Show Dubai, U.A.E The 19th edition of Airport Show will continue to offer our airport development teams and colleagues around the region an invaluable opportunity to view the latest global technologies, meet aviation experts from around the world and share ideas, best practices and create new opportunities for our industry to collaborate. www.cbnme.com
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