DP WORLD
TURKISH AIRLINES
HONG KONG
Gains another laurel from JOC
Spreading its wings across the GCC
Holding on as the premier regional logistics hub
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
AUGUST 2015
KHALIFA PORT HARBOURING AMBITIOUS GROWTH PLANS
2 | Logistics News ME | August 2015
Contents Start 8 | News Scan: Roundup of regional and international news
14 | Himoinsa Power: How the Spanish powerhouse is electrifying Africa
18 | Abu Dhabi Ports: The project to date and growth plans on the horizon
features 26 | Comexposium
Middle East 2016: Transportation solutions to the fore
18 38 | Turkish Airlines:
28 | GWC Qatar:
Consolidating connections in the Middle East
Qatar’s top 3PL in high gear with healthy H2015 ,1 financial results
42 | Professional
Perspectives: PK Menon musings on accelerating a career in retail
30 | MiX Telematics: Making the case for addressing fleetrelated problems
36
32 | Materials
Handling 2015: Leading biennial exhibition poised for its best performance to date
34 | DP World:
Another laurel from the prestigious JOC
36 | Sharjah
International Airport: Upgrades to wireless communications infrastructure
38
44 | Hong Kong
Hub: Examining the rise and rise of this ‘fragrant harbour’ as a logistics hub
48 | Soft Talk: A tetea-tete with Poonam Datta, CCO, Globe Express Services
50: Last Page:
In First Person: Walid Khoury, MD, ALS Logistics Solutions ponders on the automation conundrum Logistics News ME | August 2015 | 3
Editor’s Note A LANDMARK IN MARITIME LOGISTICS It is a truism that the best and most efficient in the global supply chain and logistics business is defined, distinguished and exemplified by superlatives—monumental creations and infrastructure that facilitate and provide maximum capabilities, output and economies of scale for mass freight movement. Whether it is the fabled Antonov 225, the world’s largest cargo plane with a maximum takeoff weight of 640 tonnes or the Maersk Triple-E mega cargo container behemoths designed to carry over 18,000 TEUs or the leviathan 254-tonne Caterpillar 797 Dumptruck capable of carrying its equivalent weight in cargo, the mass and rapid carriage of products from source to distribution centres is what distinguishes the industry giants. Top-flight airports, giant ports, a vast grid of superb multi-carriage way highways and excellent transportation infrastructure is adequately prevalent in the GCC region and continual new developments on this front are taking place at a frenetic pace. Khalifa Port is a logistics ‘masterpiece’—an important marine logistics landmark and a tribute to the vision of the forethought and leadership of the Emirate. Together with its contiguous adjunct, the thriving Khalifa Industrial Zone Abu Dhabi (Kizad) in its precinct, the Khalifa Port-Kizad amalgamation has progressed on to become a superb, successful business project and a model for future port and port-proximity businesses in the region. Meanwhile, not to be outdone, the other GCC nations are also relentlessly pursuing new port projects and renovating or expanding existing port facilities. The new $665 million King Abdullah Port, now functional in King Abdullah Economic City on Saudi Arabia’s Red Sea coast off Jeddah is a case in point. The Kingdom is also expected to invest $100bn by 2020 in seaport infrastructure development alone. The Jeddah Islamic Port (JIP) is currently undergoing an expansion project, which will eventually increase capacity by 45%. The Red Sea Gateway Terminal (RSGT) was launched at JIP with the facility receiving its first vessel, with the RSGT project having a 1.8 million twenty-foot equivalent
unit (TEU) capacity. The $510m project has been developed on 400,000 square metres of reclaimed land and has a 740 metre main berth, plus a 390 metre feeder berth. DP World very recently announced that it will begin work on a new $1.6bn Container Terminal 4 at its Jebel Ali Port. Terminal 4 will add 3.1 million TEU capacity in phase one, bringing the port’s total capacity to 22.1 million TEU by 2018. Sharjah’s Khorfakkan Port located on the Gulf of Oman outside the Straits of Hormuz; the ports of Sohar and Salalah on Oman with a new one being developed in Duqm; the new $7.4bn port project (NPP) in Qatar’s Mesaieed Industrial City and the $ 1bn Mubarak Al Kabeer Port in Kuwait, among several others, are all expected to pack a punch when inaugurated and fully functional. Building a super mega port is both a capital and labour-intensive. Huge financial allocations are necessary. The complexities and logistics of constructing, expanding or upgrading ports is also logistically speaking mind-boggling. Ports also have to contend with issues related to security, infrastructure development, over capacity, storage, speedy clearances, rapid turnover of vessels, investments in machinery and equipment, labour-related issues, pilferage and streamlining of processes among many other vexatious issues. Will the colossal expenditures in developing ports eventually make for the proverbial ‘safe harbour’ in new investment? Time alone will tell. As we have done in the past, ports will remain under our radar and will report our port calls in the region as they continue to make waves.
Malcolm Dias Editor malcolm@bncpublishing.net
Editor Malcolm Dias Malcolm@bncpublishing.net
Group Publishing Director Diarmuid O’Malley Dom@bncpublishing.net
Art Director Aaron Sutton Aaron@bncpublishing.net
Managing Director Walid Zok Walid@bncpublishing.net
Group Sales Manager Jayant Dey Jayant@bncpublishing.net
CONTRIBUTORS
Director Rabih Najm Rabih@bncpublishing.net
Marketing Mark Anthony Monzon Mark@bncpublishing.net
Director Wissam Younane Wissam@bncpublishing.net
Group Editor Melanie Mingas Melanie@bncpublishing.net
Mark Millar, Joy Thattil, Prakash PK Menon
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NEWS
IN THE NEWS Ras Al Khaimah FTZ opens 100 new warehouses
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he Ras Al Khaimah Free Trade Zone (RAK FTZ) has opened 100 new warehouses in its Technology Park for clients involved in trading as well as light and medium industrial manufacturing. The development is evidence of the free zone’s ongoing commitment to provide a full range of world-class facilities to meet investors’ needs. RAK FTZ embarked on the $12.8 million project in response to the rising demand for facilities where activities such as shipping, storage and product redistribution can be managed. “The opening of the 100 new warehouses shows our initiative to offer modern infrastructure that is not only of 8 | Logistics News ME | August 2015
the highest quality, but is also tailored to the specific requirements of individual business owners,” stated Ramy Jallad, acting CEO, RAK FTZ. Supervised and managed by RAK FTZ engineers, the newly constructed warehouses were made from advanced, high-performance materials. They have reinforced concrete flooring designed mainly to accommodate the heavier machinery that is often used in industrial manufacturing. They also have more electrical power capacity than their predecessors. According to Eyad Ismail, RAK FTZ’s Engineering Manager, the warehouses are equipped with valuable features to accommodate a broad range of industrial
facility requirements. These include higher ceilings and bigger doors to enable loading and unloading of big trucks, the new warehouses come with removable precast hollow core walls. The companies also have the option to expand their floor space to as much as 8,600 sqm. Additionally, the new warehouses each have their own water supply tank and fire-safety mechanisms such as sprinklers, suppression systems and fire detectors. Each warehouse also comes with its own kitchen, bathroom and office. Further, the warehouse project includes new infrastructure such as roads, water and electrical connections, a central firefighting network, drainage and other features.
$12.8 m
NEWS
Investment by RAK FTZ in constructing 100 new warehouses in its Technology Park.
IFS Applications to DhabiJet obtains RA3 manage maintenance certification for cargo at Madinah Airport operations
IFS, the global enterprise applications company, recently announced that Tibah Airports Operation Company, a consortium led by TAV Airports and its local partners Al Rajhi and Saudi Oger which manages the Prince Mohammad International Airport (PMIA) in Madinah, has selected IFS Applications to support and manage all service and maintenance operations at PMIA. Eng. Sofiene Abdessalem, managing director at Tibah Airports, commented, “PMIA is one of the most important airports in Saudi Arabia, one of the two main entry points for pilgrims coming to the Kingdom. IFS Applications will give us complete visibility in real-time to better manage and optimise the asset lifecycle through continuous operational improvements, combining work flow and maintenance functions into an integrated, automated process.” “By implementing IFS Applications, Tibah Airports will gain better visibility of their operations, whilst increasing availability, productivity and profitability,” affirmed Ian Fleming, managing director, IFS Middle East, Africa and South Asia. Fleming further asserted that Tibah Airports will now be able to get a holistic perspective of the assets’ lifecycle, ensuring PMIA continues providing world class aviation facilities to its customers. The project is expected to be completed by end of January 2015.
Abu Dhabi Airports recently announced that its ground handling service provider DhabiJet has been awarded RA3 certification for cargo operations at Al Ain International Airport. The “EU Aviation Security Validated Regulated Agents” RA3 certification is a supply chain security initiative designed by the European Union. With the issuance of the RA3 certification, EU-member states recognise DhabiJet as a regulated agent, and confirm that it meets the security requirements for screening air cargo and mail entering the EU. This is a highly significant development, as it positions DhabiJet as a regional leader in the aviation services sector as well as reaffirming Abu Dhabi’s position as one of the world’s top aviation hubs. Commenting on the RA3 certification, Eng. Ahmad Al Haddabi, COO at Abu Dhabi Airports, observed: “We are extremely proud that DhabiJet has successfully passed through the stringent cargo security audit and receive the RA3 accreditation. This demonstrates our commitment towards delivering the highest level of aviation services by ensuring that we continue to apply best practices to operate in a safe and efficient manner.” According to International Air Transport Association (IATA), the Middle East will
lead global air cargo growth by 2018 with the UAE set to become the third-largest market worldwide. DhabiJet is aiming to tap into opportunities presented by the increase in logistics and cargo activity in the region. The company was established in 2011 as Fixed Based Operator (FBO) at Al Bateen Executive Airport, operated by Abu Dhabi Airports as the only general aviation airport in the Middle East. In just four years, it has developed into a full service airport ground handling service provider, offering a comprehensive range of services, including ramp services, passenger handling, cargo handling and security services. DhabiJet, Abu Dhabi Airports’ FBO facility at Al Bateen Executive Airport was ranked second best around the world in the prestigious European Business Air News magazine FBO Survey 2013. The Company’s recent achievements include efficient handling of Etihad’s state-ofthe-art Boeing 787 Dreamliner when it first arrived in the Emirate, successful management of visiting aircrafts during Formula 1 Grand Prix Abu Dhabi and unloading of technologically advanced body and wings of the incredible Solar Impulse early this year, before transporting it safely to one of Al Bateen’s spacious hangars for assembly. Logistics News ME | August 2015 | 9
NEWS
$12.8 bn
The worth of Dubai-China trade in Q1-2015 (Source: Dubai Customs)
Aswaaq, Unilever collaborate to enhance its sustainable business model Aswaaq has lately signed a Memorandum of Understanding (MoU) with Unilever, one of the world’s leading FMCG companies and manufacturers. The MoU will aim to reduce Aswaaq’s environmental footprint at both operational and consumer levels. The MoU was signed by Affan Al Khoori, deputy CEO of Aswaaq, and Emad Helwa, Unilever’s director for the UAE and Oman. Aswaaq’s Sustainability Agenda entails developing projects targeting a reduction in the consumption of water and energy, the production and disposal of waste throughout their various sites, in addition to a number of onsite initiatives across their seven shopping malls and nine supermarkets in Dubai. Commenting on this MoU, Affan Al Khoori, deputy CEO of Aswaaq, noted: “This MoU is part of our strategic plan to further develop our corporate social responsibility programs, in addition to collaborating with Unilever to promote sustainability.” He added that the Sustainability Agenda will target 10 | Logistics News ME | August 2015
changes in behaviour through employee engagement initiatives and consumer awareness campaigns that ensure long term energy and water savings. “We are proud to be working with influential partners in the retail industry who have the same mind-set as us. If we are to achieve transformational change we need more concerted effort and long-term partnerships within and between the public and private sectors,” averred Emad Helwa, Unilever’s country director for UAE and Oman. Helwa added that this MoU was a fundamental step towards building the right network of sustainability partners that will help Unilever achieve its long term vision of doubling the size of the business and halving its environmental impact. Aswaaq’s in-store ‘green’ activations will include a Student Smart Shopper Program, School Partnership programs, and campaigns to celebrate Earth Day and Global Handwashing Day, in addition to initiatives including collecting and recycling old batteries.
RSA Logistics receives certifications
RSA Logistics (RSA), a leading Dubai-based third party logistics (3PL) provider has recently announced that they have attained the EN ISO 9001:2008, EN ISO 14001-2004 and BS OHSAS 18001:2007 accreditation from Tuv Nord Cert. The accreditation confirms that RSA Logistics has put together a system to continuously monitor and improve quality, something which is essential when delivering services to third party logistics. The push for quality at RSA logistics has come from the top down; at RSA logistics its board of directors is keen for quality initiatives for all aspects of the organisation. For members and their customers, this measure will enhance their confidence in the high quality of RSA Logistics’ services and they will enjoy a more efficient and effective business operation. As quality is constantly measured, and procedures improved, clients will be benefited by an increasingly excellent service. Abhishek Ajay Shah, managing director at RSA Logistics, stated: “Achieving these certifications and accreditation implies our clients can ensure a continuity of quality as well as being reassured that we are serious about delivering a higher standard and quality of service by approaching all of our tasks in a systematic and process-driven manner Germany’s Tuv Nord Cert is a service-provider for comprehensive testing and certification on the basis of national and international specifications and standards for products, services and management systems. The certifications institution looks after over 28,000 customers worldwide from all sectors of trade and industry. The company stands out for its broad range of services with over 120 national and international accreditations, and voluntary testing standards in personnel, product and system certification
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NewsCRN ME 150603 | August 2015 | 11 Issued by HSBC Bank Middle East Limited, P. O. Box 66, Dubai, UAE. Regulated by the Jersey Financial Services Commission and Central Bank of the United Logistics Arab Emirates. © Copyright. HSBC Group 2015. ALL RIGHTS RESERVED.
NEWS
Dubai-China trade worth New satellite AED 47 billion in Q1 2015 facility for Munich Airport China is well positioned as Dubai’s top trading partner, with bilateral trade volume valued at $12.8 billion in the first quarter of 2015, director of Dubai Customs, Ahmed Mahboob Musabih, revealed recently following a business meeting with Consul General of the People’s Republic of China in Dubai, Li Lingbing. Musabih hailed the exceptional UAEChina commercial relations, noting that Dubai-China trade scored a record $47.7 billion in 2014. The Chinese Consul General Li Lingbing praised the role played by DC in pushing the reel of bilateral trade by putting in place top customs services and facilitations for Chinese traders and investors. She also stressed the importance of enhancing economic cooperation and coordination for stronger economic relations between China and the UAE. Ahmed Mahboob Musabih remarked: “Dubai takes on a vibrant role to keep the Chinese commodities flowing to the world. Dubai has become a major platform for networking the Chinese market with European and African markets.” Musabih further noted that “Dubai Customs’ strive to boost trade with China calls for closer economic ties and supports the flow of Chinese investments to Dubai; coupled with the growing number of Chinese companies that make Dubai their regional office for managing their business throughout Europe and Africa.” Meanwhile, in related developments, at the invitation of China Customs, Dubai Customs (DC) took part in the “Connectivity and Win-Win Development Forum for Heads of Customs Administrations along the Belt and Road”, held in Xi’an, China. The forum gathered high-profile Customs representatives from 64 12 | Logistics News ME | August 2015
countries and eight international and regional organizations. Participants exchanged their experiences and insights through three parallel sub-forums. The forum aimed to strengthen connectivity among international customs, and to promote trade facilitation and regional economic development of the countries along the “Belt and Road”. The ‘Belt and Road’ refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative proposed by China in 2013 for improved cooperation with countries and regions in a vast part of Asia, Europe and Africa. In his speech at the opening ceremony, Minister Yu Guangzhou of China Customs expressed China’s strive to create new partnerships with countries along the “Belt and Road”, particularly Arab countries. Some of the main highlights at the forum were Customs-to-Customs cooperation, Coordinated Border Management, and Authorized Economic Operator. Participants made recommendations to step up connectivity among international customs to enhance the risk-based approach on the supply chain and secure and facilitate trade along the Belt and Road. Dubai has assumed its position as a regional and international pivotal hub of trade, besides being a viable gateway for Asia’s commerce with the world. Dubai Customs is very keen on promoting economic ties between the UAE and Asian terrains, especially with countries located along the ancient Silk Road. Dubai trade with Asian countries mounted up to $224.25 billion in 2014, with China making its way to become Dubai’s top trade partner with a trade value of $47.7 billion during the past year.
Three years and two months after breaking ground for the satellite terminal, Munich Airport has now announced that the opening of the new facility will be April 2016. Like Terminal 2, the satellite will be operated jointly by FMG and Lufthansa, which will hold 60% and 40% ownership, respectively. The new facility will have 27 adjacent aircraft park positions, allowing passengers to board flights directly and with no bus transfer. It will increase Munich Airport’s passenger handling capacity by 11 million passengers per year. “The satellite will take Munich Airport to a new dimension, both in quantitative and qualitative terms,” says Dr. Michael Kerkloh, the President and CEO of FMG. For Thomas Klühr, the Lufthansa executive board member in charge of passenger operations, finance and the Munich hub, the new passenger terminal is a milestone in the ongoing development of the premium hub in Munich: “With the satellite we will offer our passengers the ideal infrastructure with unique ambience. Our guests in the satellite facility can expect the same. As an extension of Terminal 2, it is entirely geared to the needs of Lufthansa passengers,” he said.
Logistics News ME | August 2015 | 13
EMPOWER AFRICA
POWERING AFRICA— THE HIMOINSA WAY Himoinsa, the Spanish power generation company, has been in the lead in powering the continent of Africa, advising and consulting with individual governments attending the recent Africa Energy Forum.
F
or the third consecutive year Himoinsa, the Spanish multinational company specialising in the manufacture and marketing of energy generation systems, attended the 17th Africa Energy Forum (AEF) recently held in Dubai. Himoinsa, founded in 1982, has been present in Africa since the 90s. During the event, company representatives explained how to make profitable investments in power generation equipment and to convert temporary energy solutions into permanent solutions. While the power plants are initially conceived as a temporary power solution for a specific project, thanks to the ‘Plug and Play’ system, they can be disassembled as required by the customer and sent as individual units to a hospital, a small town or any other project that requires them.
14 | Logistics News ME | August 2015
As an active member of this congress, Himoinsa revealed the reasons African governments need to know about the advantages of opting to purchase equipment that allows them to supply power to various projects. Keith Webb, general manager of Himoinsa Middle East, explained during his speech the difference between a temporary and permanent power supply. “The main reason we advise governments to acquire their own power generation equipment is because today they can provide power for the construction of a hospital and tomorrow this equipment can be moved to provide energy to a school, library or any public project”, argue Webb, who added that while the cost of buying the equipment is greater than the cost of renting, in the medium term the investment will already have been amortised.
The fact that governments in Africa are changing from renting to owning this equipment allows them to have power generation plants that are designed to be adapted to different projects in succession. The DOSM for Himoinsa in Europe, Africa and Latin America, Guillermo Elum, insisted on the ‘Plug and Play’ model, offered by the company, which allowed the amount of energy supplied to increase or decrease modularly according to the needs of the project. “We have extensive experience in designing power plants. One example in Africa is the 25 MW power generation plant designed for the Angolan government in Cassaque, for which our Power Solution Engineering Department designed a Plug and Play project and our technicians have been training the technical staff of the
14 – 16 September, 2015 Dubai, United Arab Emirates
The 8th edition of the International Exhibition for Intralogistics, Warehousing, Supply Chain, Ports, Port Equipment – Products & Services www.materialshandlingME.com
Logistics News ME | August 2015 | 15
EMPOWER AFRICA
Angola Ministry of Energy and Water (MINEA) regarding proper maintenance. Therefore, we offer much more than power generation equipment. We provide training, consulting and solutions to easily disassemble and relocate equipment to other projects where required�, added Guillermo Elum. Therefore these are turnkey projects; from the personalised study of the need for the project to the technical design and installation of equipment. Ultimately it is a comprehensive implementation of the project through which Himonsa offers its know-how, passing on knowledge, and a comprehensive technology transfer. During this meeting in Dubai, the Himoinsa management team had the opportunity to talk with government officials from several African countries, presenting them with the possibility of designing hybrid power generation plants, diesel and solar, as well as plants with gas generator sets. Countries such as Tanzania, for example, where the presence of natural gas allows the government to use these resources and work with gas power generation plants, Himoinsa is able to offer a wide range of generator sets. Himoinsa’s presence on the African continent ensures speed and quality of service for the execution of all these projects. Through its subsidiary in Angola and with a score of distributors spread over various geographical areas of the continent, the company offers customer proximity, while working to optimise and contribute towards energy development in Africa.
A rendering of a hybrid power generation plant
16 | Logistics News ME | August 2015
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TOMORROW’S PORT In an interview with Logistics News Middle East, Abu Dhabi Ports CEO Captain Mohamed Juma Al Shamisi shares an update of the world’s most anticipated industrial zone and port, which is expected to contribute up to 15% of Abu Dhabi’s non-oil GDP by 2030, and one of the world’s most futuristic and advanced logistics tracking systems, al Maqta Gateway
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COVER STORY
IN NUMBERS
I
n the domain of global mega-ports, Abu Dhabi’s advanced and sophisticated Khalifa Port occupies a place of pride. The outstanding port – part of the wider Khalifa Industrial Zone Abu Dhabi – was inaugurated at the auspicious hour of 12.00 noon on 12/12/12, in an impressive and elaborate ceremony attended by HH Sheikh Khalifa Bin Zayed Al Nahayan, President of the UAE and Ruler of Abu Dhabi. Over $6.2bn was invested in the mega port and its success is attributable to the low cost of utilities, excellent services and facilities and a vast, developing hinterland with easy access to and for thousands of clients and tenants. The cornerstone of the Abu Dhabi Economic Vision 2030, which diversifies from the reliance on a hydrocarbon economy, the wider Kizad development is expected to contribute up to 15% of Abu Dhabi’s non-oil
132,297
GDP by 2030. part of the investors and it In its first phase, is in this respect that Kizad Khalifa Port will is becoming a true success. handle 2.5 million Already part operational, containers and 12 H1 performance 2015 was TEUs, record for the most conmillion tons of cargo. strong with a surge in tainers handled in one month, With the right market investments of 15%, achieved by Khalifa Port in December 2014 conditions, the port’s translating to $232m. It adds future-proof design will even further gravitas to the list of allow it to expand over four investors, which includes Morgan more phases to handle 15 million containers Advanced Materials, Al Falah, Saif Al and 35 million tons of cargo by 2030, by Khaili Group and anchor tenant EMAL; which time it will also be situated in one of which among other achievements at Kizad, the world’s largest industrial zones. now operates the world’s longest conveyor It will stretch over an extraordinary belt, stretching 14km from the furthest dock 418sqkm, which is most easily to the factory where raw materials are comprehended as roughly two thirds the size handled. of Singapore. Kizad is also set to host Advanced As with many things in the UAE, the Manufacturing Solutions (AMS), a ambition is rarely an issue. Where subsidiary of the FourWinds Group of momentum is required, as always, is on the Companies, which will build a state-of-theLogistics News ME | August 2015 | 19
COVER STORY
art steel foundry producing automotive links, world-class infrastructure and parts with an operating capacity of dedicated investor support pose 300,000 metric tonnes per an attractive proposition to annum. investors. Nine standard Adding to the good news Musataha agreements even further, it was (SMAs) in the first announced in June that quarter of 2015, MICCO is to establish its totalling an investment own logistics hub within worth more than $232 Kizad, which will be fully million, increased the operational in 2017, number of Kizad projected contribution following investment of investors by 15% in just towards GDP by almost $9m. three months. 2030 Speaking to Logistics News “Operational advancements Middle East, Capt. Mohamed Juma translate into growth Al Shamisi, CEO, Abu Dhabi Ports, opportunities not only for Abu Dhabi Ports comments: “Our superb location, transport but also our customers. Today, Kizad hosts
IN NUMBERS
15%
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Emirates Chemicals Factory, the first factory to produce caustic soda and chlorine derivatives, and the manufacturing facility of Life Pharma, the first in the region to produce cancer treatment medications.” The pace has been replicated across all elements of the port and industrial zone since 2012, with cargo capacity tripled in Abu Dhabi in less than three years. Al Shamisi explains: “We have experienced considerable volume increases across different import and export trades. Increased import and export activity underpins Abu Dhabi Ports’ core objective, which is to support trade and development across the Emirate.” When he says considerable, he means it.
COVER STORY
“It will feed into wider global supply chain communication platforms and act as an accelerator for development and trade in the Emirate”
In 2014, Abu Dhabi Ports handled more cargo than ever before: more than 1 million TEUs. Khalifa Port broke a record for the emirate by handling containers reaching a total of 1,137,679 TEUs, a 26% year-on-year increase compared to 2013. Meanwhile, general and bulk cargo also saw significant growth; handling a record 12,821,584 freight tonnes, representing an increase of 37%. To date, 71 national and international investors have chosen Kizad as their production or logistics base. Ten investors are expected to complete construction and be fully operational by the end of this year. Once all 71 investors are fully operational, Khalifa Port’s throughput is expected to increase by 900,000 tonnes of general cargo Logistics News ME | August 2015 | 21
COVER STORY
and containers annually. Investors will be further supported by Kizad’s prebuilt warehousing solutions: Kizad Logistics Park (KLP). KLP Phase 1 is fully occupied with business operating out of all 41 units, resulting in strong demand for Phase II which will cover an additional 72,521 sqm. In addition, the KLP Free Zone warehousing, currently in design, will ensure that once all phases are complete KLP will be one of the leading logistics and warehousing centres in the region.
“We are committed to offering businesses access to local, regional and international markets, adding distinct value and leading the industry in terms of innovation and quality of service”
BUILT FOR TOMORROW With more than 2 million TEUs handled since commercial operations began in September 2012, Khalifa Port has continued to set records, including most containers ever handled in one month (December 2014, 132,297 TEUs), as it progresses.
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General and bulk cargo accounts for a considerable share of total traffic volume through Khalifa Port, Musaffah Port and Zayed Port, and increased by 35% in Q1 2015 compared to 2014. The number of TEUs also increased year-on-year from
224,080 in 2014 to 302,151 in 2015. As impressive as the numbers stand today, Kizad hasn’t been built to peak just yet. The port may have a keen eye on economic growth, Emiratization and sustainability but it’s equally fixated on future proofing its infrastructure, too. In Al Shamisi’s own words, the commitment to investment in the same is “significant”. The phased development model is perfectly suited to the vision. Industries are clustered and sectioned as to allow for growth, and infrastructure such as roads and docking bays in the deep water harbor extend far beyond current requirements. The Etihad Rail project will have full access to key elements of the development giving the zone another USP: the presence of a rail network will make Kizad the first port in the region with a container yard directly linked to rail and port facilities. Both Dubai World Central – the mega development where Al Maktoum
COVER STORY
International Airport is located – and Abu in future. Dhabi Midfield Terminal Complex are A statement issued by ADPC for the within a few dozen kilometres. launch, read: “It will feed into wider global Yard capacity is also being added to. In supply chain communication platforms and 2015, Zayed Port took delivery of two act as an accelerator for development new mobile harbour cranes and trade in the Emirate, a core which will be used to handle objective for ADPC and a the increasing volumes of central pillar of the Abu general cargo, faster and Dhabi Economic Vision more efficiently. The new 2030.” cranes were supplied by In Al Shamisi’s words, Liebherr and can lift 65 it’s designed for tonnes, thereby “optimum supply chain complementing Abu efficiency”. investments received Dhabi Ports’ existing Etihad Rail will also cranes which are capable participate in the Maqta in H1 2015 of lifting loads of up to 100 Gateway, so containers can tonnes. The new cranes, as well move from the container ports as other equipment, such as hoppers onto railways as efficiently as and forklifts, to increase yard and berth possible. With the development of the GCC capacity, are part of an ongoing upgrade to Railway Network, Etihad Rail’s use of the all of the general cargo handling equipment Maqta Gateway will significantly increase in across Abu Dhabi Ports. the coming years. “Khalifa Port features state-of-the-art “Maqta Gateway will help facilitate the equipment and world class infrastructure, next generation of trade in Abu Dhabi and putting the port in line with other major will dramatically transform the Emirate’s maritime hubs across the globe,” says Al way of doing business. It will make import Shamisi. and export activities more efficient, “Khalifa Port is intrinsically linked with transparent and thus more time and cost Kizad, providing excellent supply chain effective while guaranteeing optimum supply connections and efficiencies. As an chain efficiency”, Al Shamisi says. innovative multi-modal logistics He adds: “To meet growing client demand infrastructure and major transportation for our services, Abu Dhabi Ports has network that enables goods to be shipped by committed significant investments in our sea, road, air and in future, rail. Kizad infrastructure, operations and services, provides Khalifa Port the world-class hub for including our comprehensive and worldindustry, trade and logistics it needs to class marine services, across all our ports to compete on the global stage,” he adds. bring in infrastructure that can facilitate quicker and better services and be more LOGISTIC LEADER cost-effective and environmentally The advancements continue. The launch of sustainable.” the Maqta Gateway system at the end of To date, work is right on track. Project 2014 will offer a single point-of-contact and milestones are reached to schedule, local real-time information to the maritime talent is being fully utilised, the environment industry, significantly enhancing processing is protected, economic projections are on times and communication procedures to course and investors are vying for their stake benefit Abu Dhabi’s import and export trade in Abu Dhabi’s latest success. business. “As part of the opportunity that is Abu Named after Al Maqta Bridge – Abu Dhabi Economic Vision 2030, our objective Dhabi’s first bridge between island and is to provide products and services to mainland – the theme of crucial connection develop strong and long-term relationships is central to the entire system. with our valued customers and It’s described by developers Abu Dhabi stakeholders,” Al Shamisi reiterates, Ports Company (ADPC) as being capable of continuing to conclude: “We are committed ensuring smooth transport and logistics to offering businesses access to local, operations across all Abu Dhabi ports and regional and international markets, adding airports, as well as the Etihad Rail Network distinct value and leading the industry in
MINA ZAYED
IN NUMBERS
$232M
ADPC’s original home, Zayed Port has enjoyed a refurbishment since industrial operations were re-directed to Khalifa Port to be transformed into a major luxury cruise terminal. The first phase of the cruise terminal’s development was successfully completed in 2014 as a cost of AED 55 million, with Zayed Port able to accommodate two large cruise ships and one small vessel as well as a wide range of tourist friendly facilities. The upcoming development phases will provide capacity to handle 2,500 passengers and three large cruise ships at any one time, enabling this important industry for the Emirate, to maximise its growth potential. Logistics News ME | August 2015 | 23
production items (if needed) show up on the project plan Standard Plan: Obviously, the goal of implementing management by project is to allow detailed management and analyse parts of the business as de facto projects. But even with those projects, some parts should be allowed to be shared commonly across multiple projects. Standard plan capabilities allows for these. Re-use: Organisations often enter into contracts when the final specification is still incomplete. Project-based ERP allows the team to reduce risk and improve the probability of being right-firsttime by providing the ability to copy from a template of a similar project. Swap (borrow and pay-back): Project-based ERP allows the ability to change resource items from one project to another to maximise resource availability and at the same time reduce costs of holding items that are not required as originally planned due to changing priorities.
PROJECT-BASED ERP FOR IMPROVED PROJECT MANAGEMENT Most companies are involved with projects to some extent. Whether or not projects constitute the core of the company’s profitability, most managers agree that efficient project management plays an important role in their business, writes Ian Fleming
A
s a contractor, managing projects on a regular basis, integrating a project-based ERP into the company’s core business processes can help improve profitability and gain a competitive edge. WHAT IS PROJECT-BASED ERP? In selecting a project-based enterprise application for management by project, it is important to ensure that the solution is integrated for the management of the supply and demand for all resources, and for incurred cost to flow up to financials as well as up through the project, so the team can see how each project is progressing over time. Some enterprise application vendors claim to offer integrated project management, but it is often limited to accounting functions and not tied into the rest of the applications within the 24 | Logistics News ME | August 2015
project. It is important to look for the ability to connect your project functionality into other areas of the application, from the original contract through design into construction/ manufacture and all the way to after-sale service, maintenance or de-commissioning. HOW CAN PROJECT-BASED ERP HELP? Project-based ERP delivers the following benefits: Tracking costs: Project-based ERP not only manages front-end costs including engineering, the creation of documents but other time-driven costs that would typically be considered indirect or overhead costs Full Project Enterprise Planning: Project-based ERP ensures the functionality is connected into the application’s planning engine, so all
Many companies are organised in a departmental structure that (at times) can be rigid and territorial. Management by project requires human resources from various departments to be on loan for each project, creating a temporary organisation with its own profit and loss (P&L) account. It is also important for the technology to allow management to see whether certain resources in each department might be overloaded and to take those capacity issues seriously into consideration. Project-based ERP is truly opening a whole new world of software supporting the challenging markets of the 21st century. Technology can help to facilitate a project-based approach, but ultimately it is up to the management of each enterprise to take advantage of these capabilities and create a business culture that is agile enough to respond to today’s challenges. FIVE TRENDS SHAPING THE FUTURE OF ERP Businesses today are required to deal with technological advancements occurring at a pace never experienced before. What’s more, trends like the consumerisation of IT have lessened the CIO’s ability to regulate which technologies are used alongside the corporate network. As trends like Bring Your Own Device (BYOD) continue to make an impact, it’s important IT departments embrace new technologies for a number of reasons. Aside from missing out on any potential benefits, being too proscriptive regarding the technology employees can use risks the emergence of shadow IT; when IT solutions are built or adopted without explicit organisational approval. ERP in particular has a lot to gain from adopting an open approach to
COMPANY PERFORMANCE
new innovations. Here are the five technology trends that I believe have the potential to shape the future of ERP, if implemented correctly: THE INTERNET OF THINGS The Internet of Things (IoT) is a concept that provides objects, such as cars and electrical appliances, with the capacity to transfer data over a network without requiring human interaction. In the case of ERP, devices are available that can be attached to tools and even vehicles, feeding data back to applications hosted in the cloud. Information such as location, usage and performance can then be easily accessed, allowing organisations to identify issues like where unused assets are, or if maintenance is required. WEARABLE TECHNOLOGY This was one of the focal points at this year’s Consumer Electronics Show and Gartner has predicted that the wearable technology market will be worth $10 billion by 2016.While much of the attention generated by wearables has focused on consumer propositions like fitness trackers, there are also a host of applications in the workplace. Augmented Reality enabled glasses
like Google Glass will enable hands free operations which can be of great benefit for many blue collar workers. Even smart watches represent a step forward compared to PDAs and smartphones since they are more easily accessible and are less likely to be misplaced/ dropped etc. Devices designed to monitor external factors like UV exposure or heat can help improve management of employee health. BIG DATA ANALYTICS Organisations have become more dependent on IT and, as a result, they have accumulated a wealth of data that has been traditionally underutilised. As the IoT connects tools and employees to the internet, this data generation is set to grow exponentially. By employing analytical tools, organisations can begin to use this data to make accurate predictions that form the basis of a more intelligent approach to business strategy. THE AGE OF CONTEXT With businesses increasingly operating in a multichannel world, using technology that understands the situation you’re in, what
information you would like to see, and how you would like to see it, will begin to have a real impact on performance. PCs and mobile apps will increasingly integrate context aware functionality to anticipate user needs and improve the efficiency of day to day tasks. For example, a field service engineer will automatically receive all the asset data, job instructions, customer relationship history as soon as they arrive at the repair site. OPENING BUSINESS TO INNOVATION Over the next few years, technology like wearables, the IoT and big data analytics stand to reinvent business processes across many different industry sectors. Organisations need to keep an eye on technological advances, even those that may seem to be irrelevant. Recent developments have shown that solutions which first appeared to be designed for consumers are increasing finding profitable applications within businesses. By taking an innovative approach to the adoption of technology, businesses stand to save time and increase productivity; results that will be reflected in the bottom line of enterprises that choose to embrace new technologies.
VISIT US IN DUBAI MATERIALS HANDLING MIDDLE EAST 14 - 16 SEPTEMBER 2015
EXPLORE THE POWER OF AUTOMATION Do you need to optimize your warehouse to be ready for your future business expansion? Swisslog is a leading provider of best-in-class automated intralogistic solutions for a wide range of industries including F&B, retail, e-commerce, pharmaceuticals as well as third party warehouses and distribution centers. See future proofed intralogistics solutions on our booth at the Material Handlings exhibition live in action. Learn how the power of automation can boost your business. Intralogistics Automation Design. Develop. Deliver.
www.swisslog.com/materialshandling2015 Logistics News ME | August 2015 | 25
EXHIBITION
HAULAGE INNOVATIONS ON SHOW The inaugural Transport Solutions Middle East comes as forecasts by global analysts Frost & Sullivan indicate that commercial vehicle sales, including trucks and buses, in the GCC will grow 5.2% annually between 2015 and 2017, thereby bringing the total number of commercial vehicles on the region’s roads to 1.44 million.
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he Middle East’s growing prominence as a global hub of road haulage, urban transport and Commercial Vehicle (CV) assembly, has been underlined by a new exhibition in Dubai that will be the focal point of innovations propelling the industry forward. The launch of Transport Solutions Middle East comes as forecasts by global analysts Frost & Sullivan indicate that commercial vehicle sales, including trucks and buses, in the GCC alone will grow 5.2 % annually between 2015 and 2017, thereby bringing the total number of CVs on the region’s roads to 1.44 million. Rapid urbanisation and numerous government infrastructure projects are also placing the Middle East on the fast track to become one of world’s major manufacturing hubs, with Saudi Arabia and the UAE already home to heavy vehicle assembly lines for big names such as Mercedes, Volvo, MAN, Scania, Ashok Leyland, Volgren, and Praktiko. The influx of commercial vehicles on the region’s roads combined with its international stature as a key manufacturing hub present the ideal backdrop for the inaugural edition of Transport Solutions Middle East, which will place from 13-15 March 2016 at the Dubai International Convention and Exhibition Centre. The three-day event, organised by Comexposium Middle East, is the region’s only international exhibition covering the entire supply chain of the wider region’s road haulage and urban transport industries, showcasing the world’s leading manufacturers and service providers. “The collective eye of the world’s Heavy Goods Vehicle and transport solutions sectors is zooming in on the Middle East,” said Joaquim D’Costa, event director of transport solutions, Middle East. More than 133,000 commercial vehicles
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THE INDUSTRY IN NUMBERS 133,000 commercial vehicle sales projection, 2015 5.2% annual growth in CV sales, GCC 2015 – 2017 1.44m projected total number of CVs on the road will be sold in the GCC in 2015, while approximately 15% of all regional vehicle imports are trucks valued at $4bn. Transport Solutions Middle East is the annual trade and networking platform the industry has been calling out for, showcasing the world’s leading suppliers, from heavy vehicle, truck, trailer, and body equipment manufacturers to IT consultants, workshop equipment, tyre and accessories manufacturers. According to D’Costa, Transport Solu-
tions Middle East 2016 will attract regional government authorities and municipalities along with agents, distributors, transport providers, fleet operators, manufacturers, and leading decision makers from throughout the Middle East. The dedicated annual platform will also be stacked with value-added features keeping the industry ahead of the curve and in-tune with the latest global and regional developments in road haulage and urban transport.
Logistics News ME | August 2015 | 27
GWC GROWS WITH 30% INCREASE IN NET PROFITS IN H1, 2015 Qatar’s Gulf Warehousing Company (GWC) has delivered strong results in H1, 2015, the company recently revealed.
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ulf Warehousing Company (GWC), Qatar’s leading logistics provider, has delivered strong and steady growth in its net profits in the first half of 2015, marking a 30% increase in net profits; achieving $23.68 million as compared to $18.25 million by the end of June 2014. This robust growth was mirrored in the company’s revenue streams, with total revenues peaking at $109.54 million during the first half of 2015, a remarkable 21.3% increase from $90.34 million for same period in 2014. “The road to success is paved by strong values, and by fostering the drive and tenacity to innovate and deliver, we have become the logistics provider of choice in
28 | Logistics News ME | August 2015
“The road to success is paved by strong values, and by fostering the drive and tenacity to innovate and deliver, we have become the logistics provider of choice in the State of Qatar” the State of Qatar,” stated GWC chair Sheikh Abdulla Bin Fahad Bin Jassem Bin
Jabor Al Thani. “By providing the most comprehensive solutions and by constantly developing dynamic and flexible infrastructure, we are able to remain true to our purpose and ensure the best possible returns to our shareholders,” he added. The Logistics Village Qatar (LVQ) Phase 5 expansion has kicked off major key operations, with construction begun on the 28,500sqm and 17,000sqm distribution. Infrastructure development and utility service line development has also begun at the site. Leveling and compaction at the GWC Bu Sulba Logistics Park has also reached its final stages, with construction on the site set to begin by mid-August 2015. The over half a million sqm logistics site will boast the latest in warehouse and distribution
COMPANY PERFORMANCE
management systems, technology and facilities optimised for small and medium enterprises and start-ups in the State of Qatar. The Ras Laffan logistics hub expansions continues on schedule, with construction on the 15,000 sqm warehouse with specialized HAZMAT logistics specifications and capabilities is half way complete. The remaining work is expected to be completed in H2-2015, and to be made operational by Q1-2016. Additionally, the second half of 2015 saw the addition of courier services to the company’s service portfolio, as GWC signed an agreement to become the Authorised Service Contractor for UPS (ASC) in the State of Qatar. GWC began offering the range of UPS services after the inauguration of its new flagship outlet located on D-Ring Road, June 2015. Express shops were also opened in the Qatar Financial Center in West Bay, Street 15 of the Industrial Area, as well as in GWC facilities in Ras Laffan and Mesaieed.
Logistics News ME | August 2015 | 29
TELEMATICS
HOW’S MY DRIVING? Alan Hall, managing director of MiX Telematics for Middle East and Australasia, explains the consequences of ignoring fleet related issues
“
If you have comments on my driving, please call this number…” How many times have we read this line on the rear of trucks– and how many of us actually report bad driving when we witness it? Furthermore, when it is indeed reported, there is no guarantee that the incident will be followed up for corrective action. Without a fleet management solution in place, operators are simply not in a position to confirm which vehicle was involved in which incident, nor will they necessarily know which driver was involved. So, having a channel to ‘vent’ does not inevitably prevent incidents from happening again. When you consider the increasing rate of road fatalities and injuries, along with the fact that telematics offers proven safety solutions, stickers are just not going to cut it anymore. To be frank, fleet operators in the Gulf are still not very proactive in adopting fleet management solutions, despite their broad awareness that a properly implemented solution can be fully relied upon to reduce accidents and road-related injuries. Forward-thinking fleet operators should be adopting these solutions at the same pace that the technology itself is developing. Telematics solutions equip operators with the means to monitor and improve driver behaviour. This reduces accidents and saves lives, while simultaneously decreasing fuel consumption by up to 15%. By properly managing mobile assets as well as training drivers and monitoring their driving style, fleet owners automatically lower their risks and enhance compliance. The oil and gas industry in the Middle East gives high importance to telematics, but it is a pity that other industries are not following suit. Telematics solutions are a true enabler of value across a variety of industries. In other parts of the world, such solutions are delivered for customers in bus and coach, rental and leasing, emergency services, government and FMCG. The rapid uptake of telematics in countries like the United Kingdom and the United States should hopefully propel the Gulf to follow suit. We do see a definite trend – we would just like to see a speedier uptake of
30 | Logistics News ME | August 2015
those proven tools that are available. The significance and feasibility of telematics solutions as a catalyst to achieve the business objectives of fleet owners should be highlighted more in the Middle East markets. A telematics solution implemented effectively, as shown through our experience, pays for itself in less than 12 months after installation. This is achieved from a combination of factors like fuel savings, improved driver behaviour, re-
duced road accidents, and lower fleet operating and maintenance costs. This type of return would be attractive to any commercially minded fleet owner. When operators consider the safety and efficiency challenges they face on a daily basis, the next logical step should be for them to view fleet management solutions as a ‘need to have’ rather than a ‘nice to have’ enhancement to their business.
MATERIALS HANDLING MIDDLE EAST 2015 The UAE logistics market is expected to be worth $27 billion in 2015. Buoyed by investment in civil and commercial infrastructure and sustained economic and manufacturing growth, the figures are set to rise further. Ahead of Materials Handling Middle East 2015, Ahmed Pauwels, CEO of organisers Messe Frankfurt Middle East, shares his industry observations
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uoyed by strong investment in commercial and civil infrastructure projects, Materials Handling Middle East 2015 is approaching final countdown to September 14 when the doors open on the eighth edition of the sold out show. Multi-billion dollar investments in GCCwide commercial and civil infrastructure projects are having a positive impact on the materials handling sector, as the region’s dedicated logistics and warehousing trade show reaches full capacity ahead of its September opening in Dubai. According to industry reports, the Gulf region awarded $86bn worth of infrastructure projects in 2014, 78% increase over 2013, with the additional investments fuelling demand for providers of logistics,
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transportation, materials handling, and supply chain solutions. “The Middle East is becoming an increasingly significant market for the global materials handling industry. Sustained growth across key economic sectors is fuelling demand for high quality materials handling products and services across the Middle East,” says Ahmed Pauwels, CEO of organisers Messe Frankfurt Middle East. In addition, sustained growth across key economic sectors such as FMCG, retail, pharmaceuticals, oil and gas, automotive and logistics is fuelling demand for high quality materials handling products and services across the Middle East. The UAE logistics market alone is expected to be worth $27 billion in 2015, up 15% from 2013, thanks to strong import and
export figures as well as an uptick in local manufacturing, according to global analysts Frost and Sullivan. “This growth is reflected in the Gulf region’s retail sector; where according to a report by Alpen Capital, retail space across the GCC stood at 10 million sqm in 2013, while regional retail sales are set to grow 7.3% annually to reach $284.5bn by 2020,” Pauwels adds. A similar story can be observed in the automotive market in the Middle East and North Africa, where the number of cars on the region’s roads will reach 33.9 million, driving demand for auto parts, and creating big opportunities for materials handling providers. Pauwels adds: “Since its debut in 2001, Materials Handling Middle East has grown
SHOW PREVIEW
apace with the burgeoning materials handling and logistics industry in the region. From a small beginning with 40 exhibitors from 10 countries, the show has now grown to cover over 8,000 sqm gross of the Dubai International Convention and Exhibition Centre and is expected to feature 152 exhibitors and draw in nearly 3,500 key influencers, trade buyers and industry representatives over the show’s three days.” Headline names returning in 2015 include Japanese company Daifuku; Italian manufacturer of industrial floor cleaning machinery Fiorentini; Swisslog Middle East; and UAE-based SPAN Group (see box below for further exhibitor details). To register for the show, visit: http://tinyurl. com/p7n78m5
SNAPSHOT 2015’s TOP EXHIBITORS Aikah Establishment: A leading distributor of engineering products, is launching Italian brand OMG, which has a wide range of materials handling equipment ranging from warehouse applications to rough terrain applications. GENAVCO: Leading supplier of high-tech industrial and construction equipment, will also showcase some of the world’s leading brands in warehousing equipment, racking and shelving systems, including Crown, JLG, Weiro, and Flexi articulated trucks. Al Futtaim Motors’ Commercial Vehicles: Showcasing Hino Trucks and Toyota Material Handling equipment, including Toyota and Raymond Forklifts, and BT Warehouse Equipment. Logistics News ME | August 2015 | 33
JEBEL ALI PORT NAMED WORLD’S MOST PRODUCTIVE Ship moves per hour up 10% YoY, beating ports in the Far East to take top global ranking
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op US logistics publication Journal of Commerce (JOC) has named Jebel Ali Port as the world’s most productive, registering 131 moves per ship per hour, up 10% from the 119 moves recorded in 2013. The DP World facility was ranked based on JOC’s analysis of more than 125,000 port calls in 2014, beating six ports in China, one in Japan and one in South Korea, in the Global Top 10 for the year (see table opposite). Gulftainer’s Khor Fakkan Port in Sharjah took tenth place. HE Sultan Ahmed Bin Sulayem, chair person of DP World, commented: “DP World’s commitment to be the best in the world is in line with the vision for Dubai laid out by HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. “The productivity achievement is also a reflection of our unshakeable belief that investing in our people and technology is the best way to deliver service excellence to our customers and support Dubai and the UAE’s development,” he added. DP World, UAE Region, led by Jebel Ali Port, handled 15.2 million TEUs in 2014, while another strong quarter was recorded in Q1-2015
34 | Logistics News ME | August 2015
handling 3.9 million TEUs, representing growth of 7.7%, during the same period. Last month, Jebel Ali welcomed the first scheduled vessel at its new Container Terminal 3 as it gears up to serve customers at the stateof-the-art facility, which takes total capacity to 17 million TEU. Once fully operational next year, the world’s most modern container terminal will add a further 2 million TEU capacity which will be able to accommodate 10 mega vessels of 18,000 TEU simultaneously. With its semi-automated Terminal 3 nearing completion Jebel Ali will be able to handle more of the largest container vessels with the same efficiency that placed it at the top of the world. “It is very pleasing to see that this effort is making a difference and we are very proud of our UAE Region team for achieving these excellent results,” Bin Sulayem continued. “Customer service is at the heart of everything we do and we constantly invest to ensure we stay ahead of demand so our customers can maximise the efficiency of the supply chain and improve their competitiveness,” he concluded.
It is very pleasing to see that this effort is making a difference and we are very proud of our UAE region team for achieving these excellent results”
LOGISTICS HUB
AT A GLANCE JEBEL ALI PORT
THE TOP 10 TOP PORTS WORLDWIDE Port
Country
2014 berth productivity
2013 berth productivity
Jebel Ali
UAE
131
119
Tianjin
China
127
130
Qingdao
China
126
126
Yantian
China
119
106
Yokohama
Japan
112
108
Nansha
China
106
104
Busan
South Korea
103
105
Ningbo
China
103
120
Shanghai
China
101
104
Khor al Fakkan
UAE
100
119
15.2m TEUs in 2014 3.9m TEUs, Q1 2015
(Source: Journal of Commerce)
7.7% growth during the same period
GLOBAL PORTS: VESSELS LESS THAN 8,000 TEUs
17m TEU total capacity
Port
Country
2014 berth productivity
2013 berth productivity
Jebel Ali
UAE
112
103
Nansha
China
101
91
Salalah
Oman
94
88
Qingdao
China
93
107
Busan
South Korea
89
98
Yingkou
China
88
32
Tianjin
China
87
94
Mawan
China
86
88
Kwangyang
South Korea
85
82
Baltimore
US
85
70
2m TEU to be added to capacity in 2016 18,000 TEU can then be processed simultaneously, from 10 mea vessels 131 ship movements per hour in 2014 10% increase on 2013 recorded movements Logistics News ME | August 2015 | 35
DOWN THE WIRE A partnership between Sharjah International Airport and communications corporation Nedaa, will open a new era of advanced and sophisticated wireless communications for the UAE’s latest growing aviation hub
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AIRPORT UPGRADE
“We are confident that we will be able to meet the airport’s wireless communication needs thereby helping them improve the day-to-day operation of employees” Abdullah Al Falasi
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rofessional Communication Corporation Nedaa, a leading company in the field of wireless communication supply in Dubai and Northern Emirates, has recently signed a strategic new partnership agreement with Sharjah International Airport. Owned and controlled by the Dubai Government, Nedaa was established in June, 2008 and has made its mark in the telecommunications industry as the first corporation in the Middle East to implement the use of a Terrestrial Trunked Radio Network (TETRA). Under the terms of the agreement, Nedaa will provide the airport with a key line of advanced digital wireless communications solutions, which have been specifically customized to support the airport’s internal operations and further allow it to provide world-class performance and deliver solutions that meet business requirements and enhance employees’ day-to-day operations. The implementation of the new
partnership is also expected to strengthen the airport’s security levels—preserving the confidentiality of information and communications. Nedaa senior executives revealed that the company will supply, install, operate and guarantee a TETRA-based Airbus base transmission station. The company will also provide transmission network services and wireless communication devices, which also include 400 TETRA radios to be used by the airport’s essential communications personnel. Mohammed Al Zaghlawan, general manager, Sharjah Aviation Services, the leading provider of aviation ground services at Sharjah International Airport commented: “Our cooperation with Nedaa aims to get a more efficient level of used communications systems in managing passengers” operations, while taking advantage of Nedaa great potentials in the field of wireless communication.” Meanwhile, Mansoor Bu Osaiba, deputy
chief executive director, Nedaa, expressed the company’s confidence in working closely with the Sharjah International Airport. “We are confident that our agreement with Sharjah International Airport will have a positive effect on all of the airport facilities. We will fully support the digital wireless communication solutions in use at Sharjah International Airport in order to contribute to raising the level of quality management services and operation of various facilities in this important edifice,” he remarked. “We are confident that we will be able to meet the airport’s wireless communication needs thereby helping them improve the day-to-day operation of employees and enhance security capabilities,” concluded Abdullah Al Falasi, Director of Commercial Affairs, Nedaa. Nedaa has advanced communications services for voice call and data transmission and operates with the best managerial and operational practices in order to achieve the highest standards in global communications.
Logistics News ME | August 2015 | 37
Turkish Airlines flies to 276 international destinations – the highest number of any global airline – and is rapidly expanding further. Malcolm Dias reports
IN NUMBERS
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10%
urkish Airlines, customers and is the national flag determined to become carrier of Turkey one of the main players and Europe’s Best in the air cargo traffic of Turkish Airlines’ annual Airline (Skytrax World between the West and the turnover generated Airline Award), was East by harnessing its geoby cargo founded as a national airline strategic location in Istanbul, company in May 1933. In 1936, situated at the centre and it transported its first international crossroads of the world’s cargo. Beginning with mail and important commerce routes. documents, the cargo transportation has With its passenger aircraft Turkish Airlines evolved over time to meet customer needs. In transports cargoes to more than 245 cities, 43 2000, as part of the Turkish Airlines of them are domestic. It also arranges restructuring, cargo activities were scheduled cargo flights with its dedicated consolidated into Turkish Cargo, which has cargo aircraft comprising 35-ton A310 and 65extended its services with its scheduled cargo tons A330-200F new-generation cargo aircraft. flights and trucking network to develop In addition, 154 interline connections and regional commerce and meet expanding truck services to more than 1000 locations customer demand. ensures the dispatch of cargo to destinations Turkish Cargo, a division of Turkish not covered directly by the airline. Airlines, (Turk Hava Yollari in Turkish) uses Adem Ceylan, VP marketing and sales, the flight network and fleet of its parent Middle East, Turkish Airlines, talks expansion company. As one of the fastest-growing air plans and long-term development visions. cargo companies in the cargo industry, internationally recognised and award-winning How significant is the cargo sector and cargo Turkish Airlines is striving hard to stay at the operations from a revenue standpoint for apex of the cargo and passenger league tables. Turkish Airlines? Turkish Airlines provides technological Cargo forms a very important part of our logistic solutions to individual and corporate business and we continue to expect high
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volume growth every year. Our hub, Istanbul, is strategically positioned between the East and West. We use this, along with our quality service, to our advantage and this has helped us to create an attractive product. From a revenue perspective, cargo forms around 10% of Turkish Airlines’ total yearly turnover, and our aim is to reach 15% of our yearly turnover in the near future. What percentage of revenues do cargo and freight contribute to Turkish Airlines in the region? In 2014, with a growing presence in the global cargo arena, Turkish Cargo carried 0.67 million tonnes of cargo including mail and freight, contributing nearly 10 % or $11bn to the airline›s total transport revenue. We can say the Middle East contributed a similar ratio to the revenues of cargo and freight for Turkish Airlines in this region. What is Turkish Airlines’ Cargo composition of inbound and outbound cargo? A nearly equal balance of inbound and outbound cargo gives Turkish Cargo the ability to optimise cargo revenues and capacity. However with the effect of the rapid ordering of wide-bodied planes by Gulf carriers and the
AVIATION
(L-R)— The Abu Dhabi office opening, attended by sales manager Emrah Karaca; Dusan Horniak, Ambassador of the Slovak Republıc in the UAE; HE Mustafa Levent Bilgen, Ambassador of Turkey in the UAE; Mohamed Salehi, general manager of Salem Travel; Mehmet Akalın, general manager of Turkish Airlines, Abu Dhabi; Bilal Arpacı, general manager of Varna Travels.
trade pattern in the region, the inbound traffic for Turkish Cargo for the Middle East is double the outgoing traffic. What is your assessment of the state of the air cargo industry specifically in the Middle East both with regard to demand, competition and possible oversupply? Every carrier wants a share of this import oriented market so competition is tough. It is even tougher for the export business but since we fly to more countries than any other airline we have the flexibility to adopt to the market changes. Another benefit is that when we consider demand compared to oversupply, we understand that Turkey has a population of 80 million, and being large consumers and producers, we have sizeable import and export advantages over other Gulf countries and subsequently Gulf carriers. How many destinations in the Middle East does Turkish Airlines fly to and which are the top three in terms of passenger and cargo take-off? Turkish Airlines flies to 31 destinations in the Middle East. The launch of freight services to Bahrain on 7 April 2015, commemorates the ninth dedicated freight service market in the Middle East. Turkish Cargo strengthened its
presence in the region with this offering. These allcargo flights supplement the already substantial cargo capacity currently available on the multiple passenger flights to these cities in the Middle East region. In terms of cargo take-off, we can say that the UAE, Saudi Arabia and Iran are in the top three. What are Turkish Airlines’ expansion plans for the region? Turkish Airlines currently flies to the highest number of international destinations of any global airline, flying to 276 destinations of which 228 are outside Turkey. We are still aiming to broaden our network within the region and expand to more destinations, particularly in Africa. In the Middle East, our goals focus primarily on increasing the frequency of flights to our current destinations, and building even stronger connectivity within the region. What potential do you see for Turkish Airlines overall growth in the region? Our links with the Middle East are among the strongest of any other international airlines, but there is still a massive potential for growth
“Our links with the Middle East are among the strongest of any other international airlines, but there is still a massive potential for growth and development within the region. Just within the last six months we experienced a visible growth in passenger traffic and freight volumes within the region, with an average annual growth in the region of 4%.” Logistics News ME | August 2015 | 39
AVIATION
A Turkish Airlines Boeing 777 300ER in flight
“Turkish Airlines flies to 31 destinations in the Middle East. The launch of freight services to Bahrain on April 7, 2015, commemorates the ninth dedicated freight service market in the Middle East.” build a stronger connection with the destination and we will strive to ensure that more people in the country choose Turkish Airlines as their preferred choice of airline.
Adem Ceylan, VP of marketing and sales, ME and Cyprus
IN NUMBERS
and development within the Turkish Airlines recently region. Just within the last opened a new office in Abu six months we Dhabi. Which operations experienced a visible will be handled from there? growth in passenger With a rise in demand traffic and freight within the UAE’s capital volumes within the to fly with Turkish the total value cargo region, with an average Airlines, we witnessed an contributed towards the annual growth of 4%. We approximate 4% increase in airline’s transport plan on accommodating this passenger traffic from Abu revenue growing demand to ensure that Dhabi in 2014. Our new office our services and flights are of a high in the city will be a way of us quality to meet and exceed our customer’s responding to that increasing demand and expectations, and we hope to increase our making sure that this growth and loyalty growth in the Middle East even more in the within the UAE increases even further. The near future. launch of the office symbolises our aim to
$11BN
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What are the opportunities and challenges for Turkish Airlines? We currently see a major opportunity for growth in Europe, Africa, and the USA. As part of our US expansion strategy, we have recently announced two new routes from Istanbul, yet to launch, to Miami and Atlanta. These destinations will be the eighth and the ninth destinations that Turkish Airlines flies to within the United States. One of the challenges that we might face in the region to meet the growing demand is to replace our existing narrow-body planes with more wide-body ones. We are always committed to developing our services to ensure maximum satisfaction so we hope the larger planes will make their way to as much of the region as possible, in a timely manner. Our efforts to further improve our customer service and maintain our competitive pricing will ensure that each passenger receives an ideal on-board and onground experience. What are your short and long term growth plans for Turkish Airlines? Turkish Airlines continues to grow at an exceptional rate, and we believe that our growth has always been because of our wide global network across 110 different countries worldwide. Our mission to find new routes to new destinations and increase the frequency of our flights to current destinations will always
AVIATION
TECH TRICKS
remain objectives for our growth, and our plans to expand within the European, African, and American regions support this endeavour. Turkish Airlines is also looking at increasing its aircraft fleet to 300 by the end of this year,
and over 400 aircraft by 2020. We have also recently signed a codeshare agreement with Philippines Airlines and if all goes well, we would like to look at more such partnerships to reach new markets.
LOGISTIC SYSTEMS.
Unitechnik FZE Dubai Airport Freezone, UAE
Sertan Yuce (GM, Turkish Airlines, Aqaba), Mazen Aldaisi (GM, Amman), Adem Ceylan (VP of marketing and sales - ME and Cyprus), Fatih Guver (call centre manager), Abdullah Omer Celik (GM, Dammam) at the launch of the Arabic call centre, at an event in Jordan.
Improvements have also been made on the IT side as well and being one of the most important development projects of Turkish Cargo, COMIS (Cargo Operations Management and Information Systems), the customised version of iCargo, is going to replace the TACTIC system which has been used for more than 20 years. Turkish Cargo officials have been working on this project for more than two years and the new system is expected to be operational on 1 October, 2015. Substantial changes will take place in Turkish Airlines’ business processes when the new project goes live.
Turnkey overall solutions for the intralogistics System integration, storage and transport systems, automation, warehouse management software, retrofit, energy efficiency
Details and references under www.unitechnik.com
Logistics News ME | August 2015 | 41
PROFESSIONAL PERSPECTIVES
Accelerate Your Career in Retail By Prakash ‘PK’ Menon There is only one way to achieve and deliver 100%... practice, practice and practice until you become the master of your trade! And remember, there is no substitute for hard work, writes Prakash ‘PK’ Menon
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PROFESSIONAL PERSPECTIVES
O
ver the last few years the retail industry has transitioned from being an emerging sector to a full-fledged industry offering promising career opportunities across the globe, attracting some of the best professionals from all verticals. Needless to say, it has become extremely competitive as well. If you not only want to survive, but also fast track your way to the top in this fiercely competitive and uncertain business environment, you have to meticulously plan every career move and be a consistent performer. In competitive and growing sectors like retail, you have to be 100% in everything you do or represent – there is no place for being second best. If you want to succeed in this cut throat competition you must always remember that you won’t grow if you play just to participate; you need to play to win. You must enter the trade with a mindset to succeed and be prepared to undergo a grueling – but rewarding – journey. There is no doubt that this industry requires hard work, but if you follow some of the golden rules of success, you can become a game changer in the retail industry. PRACTICE MASTERY There is only one way to achieve and deliver that 100% - practice and practice until you become the master of your trade. Be passionate about it! Always remember, there is no substitute for hard work. To build a successful career, apart from relentlessly pursuing your goal, you will also need to continuously educate yourself about all the latest developments in the industry. This, you can do by either reading up the latest research material and books by seasoned professionals, or by joining short-term courses. You must not let go of any opportunity to educate yourself or shy away from spending on your education. DELAYED GRATIFICATION To add to the previous point, do not treat your education as a cost, instead treat it like an investment – a long term investment. People often treat education as a cost and get disappointed when they do not see the benefits of this expense materialise immediately. Education is an investment and like all good investments the returns come over a period of time, all you need to do is have patience and practice diligent application of your knowledge. STOP PEOPLE-PLEASING You must remember that we no longer be-
Prakash ‘PK’ Menon Prakash ‘PK’ Menon is a supply chain expert, internationally acclaimed speaker, thought leader and mentor. He is the executive director of Thought Leaders Middle East and has authored three books: Driven, Fail Smart and Supply Chain is Sexy.
“Find a mentor: No one ever succeeded without a teacher or a mentor. Finding a mentor should be one of the top priorities for everyone aspiring to climb the corporate ladder” long to the cave man days, where it was a need to live together and protect each other from the saber-toothed tiger! Despite the fact that the cave man era is long gone, most human beings still tend to behave like they belong to a tribe. Facebook is a good example of this. “You like me, and hence I will like you”. The corporate environment is no different. There is a structure which is hierarchical and easily comparable to a tribe - with a chief and a group of executives in the boardroom who seem to be too
busy trying to please each other just to protect themselves and save their jobs. This may seem like a good strategy, but this sort of herd mentality will not serve you for long. In the long term, people want a strong, knowledgeable leader who is an expert at their job and if required can take the risk of upsetting the status quo for the benefit of the organisation at large. Instead of getting involved in the petty corporate politics, concentrate on gaining mastery in your domain, to an extent that even the naysayers will be compelled to sit up and listen. Like they say, eagles don’t flock, turkeys do and it is dangerous when you have the turkeys judging the eagles. Play the territorial game. Consistency, Competency and Confidence These three Cs are the cornerstones of a successful career. If not impossible, it is definitely difficult to make a respectable name for yourself in your field even if one of these qualities is lacking. Consistency plays a huge part in your role as a leader. You need to be consistent in all that you do – performance, interaction, and behaviour. Consistency gives birth to trust: people will find it easier to trust and follow you if they have a trend – a positive one – to go by and know that they will not have to second guess what you say or do. People like leaders who are competent. They expect their leaders to always be on the top of their game and open enough to learn what they do not know from the younger generation. Today, you cannot demand respect just because you have crossed a certain age; you must be able to command it because you have both the knowledge and the ability to apply it. Both consistency and competency, give rise to confidence – the confidence to lead and deliver. Find a Mentor: No one ever succeeded without a teacher or a mentor. Finding a mentor should be one of the top priorities for everyone aspiring to climb the corporate ladder. Be very choosy about whom you pick as a mentor as they have a huge influence on how you will navigate the shark infested corporate world. The person chosen as a mentor should be knowledgeable, trustworthy and willing to guide you without any ulterior motives to help you reach your career goals. A successful career does not just happen, it needs to be worked on every single day and is the outcome of the application of knowledge and skills. To make it slightly easier to succeed in your career, aim to surround yourself with the best in the industry, for it is believed that you are the average of the five people that you hang around with the most. Logistics News ME | August 2015 | 43
HONG KONG REINFORCES INTEGRATED LOGISTICS HUB POSITION Hong Kong has taken full advantage of its geographical position, its long standing role as a global trading centre and its unparalleled international access to China to become one of the world’s leading integrated logistics hubs, affirms Mark Millar
G
lobal Supply Chain Ecosystems simply could not function if the various logistics networks that connect the system’s infrastructure and business partners were not fully integrated. From containerised deep sea traffic and ports to inland dry docks and trans-shipment zones, in the air, on the road or via the railways - every stage from component sourcing through to final consumer delivery depends on integrating the physical movement of goods and related information exchange. Hong Kong has taken full advantage of its geographical position, its long standing role as a global trading centre and its unparalleled international access to China to become one of the world’s leading integrated logistics hubs. With its strategic location and time-zone linking Asia and Europe, Hong Kong is a global centre for trade, finance, business and communications. It remains an important regional hub for international companies—more than 7,500 externally owned businesses are based there, and of these, nearly 1,400 operate as regional headquarters and some 2,400 as regional offices; it has also become the super-connector between China and the rest of the world.
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“The Hong Kong Shipping Register is the world’s fourth largest, with gross tonnage at 91 million and Hong Kong companies own or manage 9% of the world’s merchant fleet in deadweight tonnage” Mark Millar As an integrated logistics hub, Hong Kong enjoys an unassailable leadership position amongst its peers in Asia, uniquely fulfilling all the essential roles to efficiently and effectively serve global supply chain ecosystems. In container shipping, Hong Kong processed throughput volumes of 22.3 million TEUs during 2014, making it number four in the world. Its nine container terminals are privately owned and operated, with a total 24 berths. Served by 80 international shipping lines, providing 380
weekly sailings to more than 500 destinations worldwide, Hong Kong is well established as both a leading trans-shipment hub and the international gateway for southern China. Hong Kong’s maritime development also enjoys the staunch support of the Central Government. China’s 12th five-Year Plan expressly supports Hong Kong›s position as an international maritime centre. The Hong Kong Shipping Register is the world’s fourth-largest, with gross tonnage at 91 million and Hong Kong companies own or manage 9% of the world’s merchant fleet in deadweight tonnage. The city’s 700 shipping-related companies offer a flotilla of maritime services, including ship agency and management, broking and chartering, finance, marine insurance, and maritime legal and arbitration services. In the global air freight sector, which accounts for one third of the value of international trade in goods, Hong Kong International Airport (HKIA) is the world’s largest air cargo hub with 2014 throughput of 4.36 million tons, an increase of 6% over the previous year. Serving almost 100 airlines, HKIA manages 7,000 flights per week, connecting freight and passengers to over 180 destinations, including 40 cities in mainland China. To meet air traffic
LOGISTICS HUB
Serving Global Supply Chain Ecosystems?
Gateway into and out of mainland China
Asia Regional Distribution Centre
International Tran-Shipment Centre
Global Multi Modal Logistics Hub
Hong Kong Singapore Shanghai
MARK MILLAR MBA, FCILT, FCIM, FHKLA, GAICD, SCOR-P
Shenzhen demand in the long run, planning is underway for the construction of a third runway, which will more than double the cargo handling capacity to over nine million tons per annum by the 2020s. To better service the substantial volumes of international trans-shipments and enable seamless multi-modal connectivity, Hong Kong’s logistics service providers have adopted e-logistics solutions that provide integrated technology platforms to submit road cargo information electronically, speeding up customs clearance and facilitating efficient cross-border trucking. LOGISTICS LEADERSHIP FOPR A-PAC Being strategically located in-between Singapore in south-east Asia and Shanghai in north-east Asia, geographically blessed Hong Kong is uniquely positioned to be the Logistics Mega Hub serving the whole Asia-Pacific region. Leveraging Hong Kong’s extensive connectivity and privileged free-port status, provides companies with an ideal Regional Distribution Centre (RDC) platform from which to serve all the markets in Asia with efficient and competitive warehousing and distribution services, coupled with cost effective multi-modal transportation options. Over 600 international transport and transport-related companies have established regional office infrastructure in Hong Kong. TRADEPORT With its unique location adjacent to Hong Kong International Airport, Tradeport is a purpose-built 30,000 sqm logistics hub and regional distribution centre, providing modern warehousing and logistics services The only facility of its kind on Lantau Island, the Tradeport facility is literally two minutes from the world’s largest cargo airport, twenty minutes from the world’s fourth largest container port and just forty-five minutes from the border to mainland China. The Tradeport logistics hub provides solutions for a wide range of customers needing cost effective logistics solutions and multi-modal connectivity to serve the whole of
the Asia region. With both ambient and airconditioned processing and storage areas, and the latest international accreditations including AEO, C-TPAT and TAPA certifications, Tradeport is considered to be a world-class regional distribution centre facility. CEO Kenneth Bell said: “In today’s world, connectivity is of paramount importance to facilitate safe, secure and efficient movement of goods between buyers and sellers. Regional Distribution Centres are key hubs for the storage and processing aspects within the supply chain. Hong Kong’s logistics industry has long been a significant geographical cluster, underpinning its worldleading air cargo and sea port throughput as a logistics centre for not only the city itself, but its immediate hinterland in mainland China and beyond throughout the rest of Asia.” CONNECTIVITY THROUGH THE PEARL RIVER DELTA INTO MAINLAND CHINA The Tradeport integrated logistics hub is perfectly positioned at the eastern end of the new Hong Kong-Zhuhai-Macau Bridge, due to open in 2017. The 29.6 km bridge will further enhance connectivity with South China and enable more efficient cargo flows between Hong Kong and the western Pearl River Delta – in the heart of Guangdong province’s manufacturing base, which generates around one third of China’s total exports. The mega-bridge links up the three cities across three jurisdictions and when completed, will reduce travelling time between Zhuhai and the Hong Kong International Airport from the present four hours to just 45 minutes. CONCLUSION Hong Kong is uniquely positioned as the ‘The Super-Connector’ for the whole Asia-Pacific region. Its critical mass of cargo throughput and far-reaching air-and-ocean connectivity enable the network-effect that empowers Hong Kong’s enviable position as the pre-eminent Integrated Logistics Hub servicing Global Supply Chain Ecosystems.
Author of ‘Global Supply Chain Ecosystems’ commissioned by leading business book publisher Kogan Page of London, Mark Millar is an internationally known industry expert who leverages over 30 years of global business experience to deliver practical knowledge and educated insights that help companies navigate the complex landscapes in Asia and improve the efficiency of their supply chain ecosystems. Logistics News ME | August 2015 | 45
LOGISTICS HUB
30,000sqm Logistics hub
100
4.36
Airlines
7,000
Flights per week
22
4
Loading bays
million tons of air cargo in 2014
Cargo lifts
24,000
Pallet positions
180
Destinations connected HONG KONG TRAVEL PORT HONG KONG INTERNATIONAL AIRPORT
IN NUMBERS
7,500
IN NUMBERS
29.6KM Length of Hong Kong Zhuhai Macau Bridge; due to be completed in 2017
Number of externally owned businesses based in Hong Kong
1,400 Regional HQs in Hong Kong
2,400 Regional offices in Hong Kong
395,000 Projected expat population of Hong Kong by 2017
HONG KONG: THE ASIAN LOGISTICS HUB The numbers driving Asia-Pacific ‘Super Connectors’ HKIA, Travel Port and Port of Hong Kong
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LOGISTICS HUB
PORT OF HONG KONG
80
22.3M
Initial Shipping Lanes
TEUs 2014
380
Weekly sailings to 500 destinations
24
Number of berths in the container terminal
4TH
Globally for Container Shipping Logistics News ME | August 2015 | 47
SOF T TALK
WHICH WORDS DESCRIBE YOU BEST? The go-getter attitude, unwavering commitment towards my work and an individual with strong moral principles. I have always been a friendly leader who inspires and motivates others. WHAT ARE THE MUST-HAVE CHARACTERISTICS YOU LOOK FOR IN YOUR EMPLOYEES? Most important attributes would be honesty coupled with integrity as honesty is the best policy for everything you do whilst integrity creates character and defines who you are. In addition the candidate should be optimistic and adaptable. WHAT DRIVES / MOTIVATES YOU ON A DAY-TODAY BASIS? The feeling of satisfaction attained in the wake of seeing my team accomplish testing objectives, which they thought were unachievable, by giving them proper guidance and direction. Results and accomplishments are also very powerful motivators.
LEADING LADY 10 years ago, Poonam Datta was the youngest female to become the managing director for the Gulf Region of the Maersk Group. Today, as CCO of Globe Express Services, she says it’s time for the industry to lead by example and calls on her female peers to assist in mentoring and recruiting a new generation of female executives
WHAT DO YOU LIKE MOST ABOUT YOUR JOB? I am drawn to this industry and the people associated to it as it offers a unique and exciting business arena. It gives you a feel for the world, how it is changing, and how much those borders are really starting to disappear. It provides a global perspective and opportunities for growth. WHAT INTERESTS YOU OUTSIDE OF THE BUSINESS SPHERE? Pursuing projects that involve community development and social work. WHAT ARE YOUR HOBBIES / LEISURE TIME ACTIVITIES? I like reading, listening to music and enjoy being physically active, so sports is a way to de-stress. I additionally set aside a few minutes for yoga as it helps me accomplish the harmony between mind, body and soul. IF YOU WERE NOT IN THE SUPPLY CHAIN AND LOGISTICS ARENA, WHAT WOULD YOU HAVE ASPIRED TO BE? My personal characteristics and leadership style would have led me to be a life coach or motivational speaker. It gives me immense satisfaction to help people realise their inner strength and to empower them to achieve their goals and objectives. PROFESSIONALLY, YOU ARE PLANTED IN THE BUSINESS WHERE WOMEN ARE LARGELY UNDERREPRESENTED. WHAT’S YOUR TAKE ON THE
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INDUSTRY’S GENDER RATIOS? When I had started working, I was constantly reminded of how unusual it was to see a female in the logistics industry. The ratio has definitely improved since then but there is still strong room for enhancement as it is largely malecentric at the leadership level. We are optimistic about seeing a change at the leadership level too in the near future. WITH SO FEW FEMALE ROLE MODELS IN THE INDUSTRY, WHAT MOTIVATED YOU TO PURSUE THIS PARTICULAR CAREER PATH? The challenge enticed and motivated me. Being aware that it is a largely male dominated field, I wanted to reach the top and make a mark. This propelled me towards my goal. I realised it by being the youngest female to become the MD for the Gulf Region of the Maersk Group more than a decade ago. BRIEFLY, WHAT CAN THE INDUSTRY DO TO ATTRACT MORE EMPLOYEES FROM THE FAIRER SEX? The industry must simply continue to be openminded and offer key roles to competent and deserving candidates. By this effort alone, I am sure we will see greater balance in gender ratios across crucial roles within the industry. HOW CAN WOMEN BE BETTER EMPOWERED AND ENTHUSED TO FOLLOW YOUR FOOTSTEPS? Women in leadership roles within organisations in this sector must lead by example. Role models should exhibit the wide range of contributions women have offered and can offer. With utmost pride I can say that I have mentored women who were keen to join this industry and now they have all become successful leaders holding top positions in their respective companies. FROM YOUR PROFESSIONAL PERSPECTIVE, WHAT FUTURE DO YOU FORESEE FOR WOMEN IN THIS BUSINESS? Sky is the limit! If women put their mind to something, and are passionate about it, they can achieve it. There will always be barriers, but focus, hard work and ambition will let us realise our goals. I AM CONFIDENT THAT WE WILL SEE WOMEN MAKING THEIR MARK IN THE INDUSTRY AND RAISING ITS BENCHMARKS OF EXCELLENCE. Given your long association with the industry, do you see greater interest in this profession from women? Absolutely. The industry has seen a change. In addition, there have been great role models who are inspiring and motivating them.
SOF T TALK
The Globe Express Services Warehouse
DESCRIBE YOUR BUSINESS PHILOSOPHY IN TWO SENTENCES? I am passionate towards striving for excellence in whatever I do and silently accomplishing goals letting success make the noise. Life is a progression of minutes. To succeed is to experience each minute to the best of one’s capacity, which would make life a masterpiece in itself. WHAT ADVICE WOULD YOU GIVE YOUNG PEOPLE AND SPECIFICALLY WOMEN AND UAE NATIONALS WANTING TO MAKE A CAREER IN LOGISTICS? Logistics is the future. It is an integral component of the economy and trade. Therefore holding a position within this sector will allow you to assist, enhance and improve the national and global economic well-being. IF THERE ARE TWO CAUSES YOU WOULD ESPOUSE, WHAT MIGHT THESE BE? Giving back to the community as it brings moderation in our entire life, helping orphanages and the lesser privileged. I also play an active role being a board member in our community in Dubai and India to work on
various projects towards environmental prosperity and support workers in our neighbourhood for education of their children. WHAT WOULD YOU REGARD INDISPENSABLE? Character and courage are the two qualities that are absolutely indispensable. Character is the essential foundation on which one will build success and accomplishments. Courage enables us to act in an authentic manner without letting fear and uncertainty cause any hindrance. WHAT DO YOU REGARD AS THE KEY TO YOUR SUCCESS? Without any doubt, passion. It drives me, fuels my commitment, enhances my focus and concentration. Passion is what led me to reach new standards and excel beyond all others. Self-discipline is likewise essential, on the grounds that before you can lead others you should first lead yourself to victory. HOW DO YOU ATTAIN A WORK-LIFE EQUILIBRIUM GIVEN YOUR COMMITMENTS BOTH PROFESSIONALLY AND TO YOUR HOUSEHOLD? My parents set a wonderful example for me ever
since childhood. They have been a constant source of inspiration and motivation playing a crucial role in my success and achievements. They have always been an integral part of my life, and I always ensure to have family time so that I am able to continuously learn from their wisdom and imbibe the values. HOW DO YOU RELAX AFTER THE WORKING DAY? My favourite way to de-stress is spending quality time with my mother. It is the most relaxing time of the day for me. WHAT DO YOU LIKE MOST ABOUT WORKING IN THE UAE? I greatly appreciate and commend the vision of the wise leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, who has effectively strengthened Dubai’s position on the world map. Dubai is maximising its strategic position and is the best gateway between the east and west. I have seen the country emerge as a strong economic contender in the world arena over the last two decades and I believe that it will continue to reach many milestones.
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LAST WORD
THE AUTOMATION CONUNDRUM “To automate or not to automate?” Walid Khoury, managing director, ALS Logistic Solutions makes his case
B
ill Gates was once quoted as saying: “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” I absolutely agree with this statement. Given the rapid development of the logistics sector in the Middle East, every serious player in the logistics market in the region has at least once toyed with the idea of automation in the workplace. While taking strategically important decisions, the warehouse management team should weigh the pros and cons of every choice. A variety of generic case studies, evaluations and testimonials are easily and widely available on the internet and managers can make assessments and appraisals based on similarities and differences in relation to their specific needs. However, I highly recommend any business manager or decision maker to consult a proper, qualified and reputed consulting firm prior to embarking on the automation process. With open borders and global economic developments, business methods and strategies are always changing and companies are looking for innovative solutions to stay upto-date and competitive in the marketplace. Warehouse automation with its sophisticated technologies such as Automated Storage and Retrieval Systems (ASRS), a variety of conveyor systems, transfer vehicles and modern IT-solutions are some of the attributes of the successfully operating distribution and production centres. Automation in logistic centres brings benefits to operational processes including space savings, lower building costs, improved productivity, more efficient material flow, less manpower, safer operations, reductions in inventory, increased reliability, reduced running costs, better return of investment (ROI) and lower lifecycle cost and other attributes. Talking of advantages, I need to stress that automation implementation is a high-invest-
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WALID KHOURY Walid Khoury joined ALS in 2001 as a regional manager for the Middle East and after six years of successful performance, he took over the entire company management as managing director. He has over 15 years of experience in the aviation industry, including project management and equipment fabrication, airport systems and design consultancy for automation projects. Khoury has been involved in air cargo terminal projects worldwide and has in the past managed several large International air cargo terminal projects with ALS. Khoury is also the company’s senior WHS (Warehouse Systems) Consultant. ment process and generally the financial aspects are the main concern. This is where an experienced and reputed consultant can examine the situation professionally and rigorously and offer proper advice. By working closely and consulting with
our clients, we look carefully into their space capacity, which is largely ignored or wrongly assessed. Sometimes it is mistakenly assumed that their storage facility has enough capacity, when although all too often that is not the case. One of the main considerations of ALS advice is ‘Reverse Logistics” which includes optimisation of aftermarket activities, such as customer service, quality inspection and storage warehousing, which can produce a new revenue stream to clients, improve customer satisfaction and help the environment. ALS Logistic Solutions has been active in the market for many years with installations in several major airports in the Middle East. Our clients are government institutions, airlines, logistics groups and distribution centres, architects and real estate companies, consultants and hotel chains among many others. With our slew of professional automation solutions offerings, the ALS brand name is represented and present in markets everywhere where there is a need for automation and logistics solutions. Automation requires a holistic approach, which is why the decision should be found based not only on individual requirements but with the wider logistics perspective in mind. Our practice shows that preliminary evaluation and research build a basis for successful development, planning and design of automated solutions logistics and distribution centers and 3P logistics groups. Based on our local experience, we understand it is a common practice for clients to divide the implementation of their automation process into two phases believing that such strategy first of all allows the proper distribution of their budget. Secondly, the operation team will get used to new technology and will be more familiar and have better participation in the next extension phase. I always advise to look at the material flow and estimate the final outcome prior to making this decision. To sum up, automation is not an easy and yet not such a complicated process. It is a joint operation and requires hard work and cooperation of all participants and stakeholders involved. The ALS rule is simple: each project is like a puzzle – it consists of different pieces, but only sustained commitment will lead to successful results. To automate or not to automate? That is the major ultimate question. Having over 25 years’ experience we can definitely assert that automation has lots of benefits and increases efficiency; however, it is only recommended in the right place and with the right processes.
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