Case Study
Sector Focus
Interview
Turning Smart Shelters into logistics hubs
Purchase guides for forklift and WMS procurement
SOHAR CEO Mark Geilenkirchen on his new role
Connecting trade professionals with industry intelligence
The View from the top Nadia Abdul Aziz, president of NAFL and partner and MD of UNASCO, reveals how she is using her unique position in the industry to promote the UAE’s business and logistics infrastructure on the international stage
August 2016
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Start 8 | News
Features
Contents
16 | Case Study Dubai’s new generation Smart Shelters 20 | Sector Focus Making the most out of equipment investments 24 | Cover Story
Nadia Abdul Aziz on bringing FIATA to Dubai and leading by example
28 | Analysis Post-Brexit trading conditions 30 | Sector Focus How to use software to manage your warehouse
16
34 | Country Focus
Oman under the spotlight
38 | Exclusive Interview Mark Geilenkirchen, SOHAR’s new CEO 42 | Viewpoint 46 | Supplier news 50 | Diary
24
38 34
44 Logistics News ME | August 2016 | 3
Editor’s Note The cost of engagement
I
t’s been a good month for the prominence of women in high power jobs, with Hillary Clinton being named the Democratic presidential candidate in the next US election; the election of Tokyo’s first female governor, Yuriko Koike; and the appointment of the UK’s second female PM, Theresa May. The media is awash with messages of broken ceilings and shattered glass, but changes are needed if a trickle-down effect is to be felt. The list of industries in which women seem to be suspiciously absent from corner offices ranges from science to hospitality and, while there is no shortage of networking groups to attempt to try and change perceptions, the issue remains: terms, conditions and pay are geared to be advantageous for a very narrow sector of the talent pool. In the UAE, the absence of women is coupled with that of Emirati nationals and combined, it is an expensive exclusion, capping the level and quality of talent entering the industry. Through education, awareness building and her own highlevel connections, one Emirati woman is working to turn the trend on its head. Nadia Abdul Aziz, pictured on this month’s cover, is a female Emirati national who has risen to such a position of influence she is arguably one of the region’s most important players. Constantly involved in no fewer than dozens of projects at a time, she is working to educate and inspire both women and UAE nationals to pursue a career in logistics. Her endeavour is notable not least because of the impact and importance of role models. In 2012, a report co-authored by MIT economist Esther Duflo concluded that role models – in
this case females – were found to be hugely influential in a young woman’s pursuit of certain career goals. Studying the prominence of female politicians in the West Bengal region of India, where quotas had existed since 1993, young women – and their parents – were found to have higher expectations and goals for themselves with the gender gap in teenage education all but eradicated as a result. In villages with only male leaders, parents were 45% less likely to want female children to graduate from school compared to male children. Teens were also divided by gender on the issue of educational goals, with girls 32% less likely to want to complete school. Leaders create leaders, but as of October 2015 women held only 4.4% of the CEO roles in Fortune 500 companies. The work of Abdul Aziz and her fellow female leaders is crucially important if the economic goals of the region are to be realised but the responsibility is not that of women alone – it is of the whole industry. Terms, conditions, pay, maternity and paternity leave, all require address if the goals are to be achieved. The logistics industry is projected to reach values of $27bn by 2016-end with CAGR of 5.7% from 2015 to 2020. Such figures cannot be achieved while huge swathes of potential talent remains unengaged.
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news
In the NEWS GCC logistics industry poised for growth in 2016 Projected industry growth
4%
UAE total projected growth for 2016
5.7% UAE CAGR
7%
Oman total projected growth for 2016
N
ational logistics industries around the GCC are poised for significant growth by year-end, followed by steady compound annual growth rates (CAGR). The UAE logistics sector is expected to grow by 4% in 2016, with CAGR of 5.7% between 2015 and 2020, according to Frost and Sullivan. The news comes after predictions in May of this year that stated the value of the industry would reach $27bn by 2016-end. According to a press release on the forecast, the UAE’s logistics industry will be supported by “ongoing economic diversification, growing domestic demand, development of multimodal transportation, and implementation of new technologies.” In Oman, a growth rate of 7% is expected by year end, followed by CAGR 8 | Logistics News ME | August 2016
6.9% of 6.9% between 2015 and 2020. The Sultanate outstripped all its GCC and Middle East rivals in a recent World Bank index, to become the highest performing country in the region (see page 34). Saudi Arabia, where the industry reached values of $17.9 billion last year, is also expected to see similar results. According to figures from Al Masah Capital the transportation and logistics industry in MENA was valued at $66 billion in 2013 (representing 2.7% of the GDP). Of this, the GCC transport and logistics industry was worth $40 billion. Mustapha Kawam, President and CEO, Globe Express Services, said: “It is a dynamic time for the UAE’s logistics sector - macro economy, new business models, and technology. The sector has played a vital role in the country’s sustained economic growth by
Oman CAGR
$40bn
value of GCC logistics and transport industries
contributing nearly 14% or around $29.8 billion of the UAE’s GDP in 2015. Over the next decade, the logistics industry will enter a new era. Disruptive forces, including technology and operational constraints, fundamentally change the rules of the game.” Kawam also added that according to a report issued recently by the Council of Supply Chain Management Professionals, “shippers are turning more to third-party logistics providers and their business is growing faster than the GDP, which is a good sign for us.”
news
Agthia group to expand Zayed Port facility
Abu Dhabi Ports and Agthia Group PJSC have signed a lease agreement aimed at expanding the Group’s existing Grand Mills Flour and Animal Feed facilities at Zayed Port. The new agreement was signed by Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports and Iqbal Hamzah, CEO of Agthia Group at Abu Dhabi Ports headquarters (pictured). The contract between the two parties incorporates a 25-year agreement for a 85,700m2 plot of land, which when fully developed by Agthia will include dedicated bulk grain silos, logistics warehousing and onsite bagging facilities. The expansion in capacity will allow the Agthia Group to increase its current capacity of 930,000 tonnes per annum to 1.5 million tonnes when fully developed. Hamzah said: “Our current production capacity utilisation rate at Grand Mills is at around 90% levels. When combined with our business growth projections, this necessitates an expansion in both our milling and storage capacity beyond 2017. In this regard, Agthia has already started undergoing the construction of an additional 50-thousand-ton capacity grain silos on Abu Dhabi Ports’ existing plot. This agreement will secure supplementary land essential for future expansion right adjacent to Agthia’s current facilities. Established as Flour Mills and Animal Feed Company in 1978 by the late HH Sheikh Zayed bin Sultan Al Nahyan, Grand Mills is one of the few heritage companies of the UAE. As a subsidiary of Agthia Group since 2004, Grand Mills manufactures and supplies its Grand Mills Flour and Agrivita Animal Feed products to UAE and beyond.
RSA Logistics breaks ground on Dubai South Cold Chain Facility
RSA Cold Chain (RCC), the newest venture of multi-award winning 3PL provider RSA Logistics, based in Dubai South, has broken ground on a new facility. The cold chain plant will house a total capacity of 21,000 pallets and the first phase of its operations will begin in March 2017, offering an initial capacity of 10,800 pallets, coupled with end-to-end 3PL services for packaged food, fresh fruit and vegetables, dairy products, and frozen food. The groundbreaking was attended by Ahmed Al Ansari, acting CEO of Dubai World Central Corporation, also known as “Dubai South”, and others (pictured). Abhishek Ajay Shah, co-founder and MD of RSA Logistics said: “We take pride in the launch of our latest project RCC, which increases the scope of niche services we can offer to our customers. We believe this is coming at a critical time in the context of global changes that will affect the demand and supply of food products, and in turn influence the requirement for quality services that meet these needs in a safe and sustainable manner. “The cold chain is an under-served sector in the UAE and the Middle East and we’re excited to be part of the journey that will see a change in this equation. We look forward to offering a highgrowth and scalable solution to quality-focused food companies.” Logistics News ME | August 2016 | 9
news
SCCI launches new business award
Sharjah Chamber of Commerce and Industry (SCCI) has added the Sharjah Top 10 Businesses Award to its annual shjSEEN Awards program. The ‘Sharjah Top 10 Business Award’ is an invite only, business excellence award, focused on helping private sector organisations from all sectors in Sharjah drive performance to enable business growth. The award draws on the Excellence Model of the European Foundation for Quality Management (EFQM), a comprehensive management framework used by more than 30,000 organisations across the world. H.E. Sara Al Madani, Sharjah Chamber of Commerce and Industry Board Member and member of the shjSEEN Board of Trustees said, “To help organisations implement the EFQM Excellence Model, we at shjSEEN are committed to provide training and assessment tools developed by experts and professional assessors for all levels of organisational maturity. We also gather information about corporate best practices and communicate this information through our network.” Categories cover: manufacturing, trade and repairing services, real estate and business services, tourism and hospitality, construction, financial services, transportation and logistics, education, healthcare and Digital services. 10 | Logistics News ME | August 2016
Aramex partners with what3words Aramex, has invested $2.94million as part of a $8.5million Series B funding round with what3words, the multi-award winning addressing platform. The investment comes to further enhance Aramex’s global e-commerce operations. Aramex will use the “what3words” address system in its e-commerce fulfilment operations across the Middle East, Africa, and Asia to further enhance its last-mile delivery solutions. To date, Aramex has already invested in a number of mobile-based start-ups to improve its lastmile delivery solutions, including Grab and Logisure in India, Shippify in South America and CashBasha in Jordan and Saudi Arabia. Previous investors, Intel Capital and British funds Force Over Mass and Mustard Seed also contributed to the deal. what3words is an address system based on a global grid of 57 trillion 3mx3m squares, where each square has a unique pre-assigned three word address. The solution helps anybody who needs to find or share a location, from navigation apps to governments, logistics firms, travel guides and NGOs. Hussein Hachem, CEO of Aramex, said: “By integrating 3 word addresses into our e-commerce operations across the MEA and Asia, we are now better able to reach more consumers worldwide, even those in difficult to access locations. The partnership is also perfectly aligned with our commitment to becoming a technology-based enterprise. We are always looking for new and innovative solutions to enhance our operations, and for new opportunities to invest in mobile-based start-ups with last-mile delivery capabilities.” Not finding the right delivery point, for example, is frustrating for consumers, and costs businesses a huge amount in failed deliveries and delays. The ‘last-mile deliveries” account on average for 28% of all delivery costs. According to the UN, 135 countries don’t have an adequate address system. This puts huge pressure on the logistics industry to find effective and efficient solutions to deliver parcels to consumers. Aramex has also launched a new smartphone app, soon to be available to all customers where the firm operates, following its UAE launch last month. The app allows customers to easily track and manage their shipments. The app will also be the cornerstone of Aramex’s “Rapid Scaling-Up” Model, which the business plans to unveil soon, and will support it in leveraging more partnerships with delivery businesses worldwide, extending its global reach and improving delivery transit times.
news
DAFZA chases Singapore investments Dubai Airport Freezone Authority (DAFZA) has concluded a seminar in Singapore, considered one of Asia’s top financial centers, to sustain key efforts to attract local investors to Dubai and build robust ties with the Southeast Asian country’s growing business community. Held in collaboration with the Singapore Business Federation, the seminar saw DAFZA promote its incentives and benefits, including 100% tax exemption and foreign ownership; zero currency restrictions;. This move is seen to significantly increase the number of Asia-Pacific companies currently operating in DAFZA. Singaporean firms, which are among the most active Asia-Pacific exporters to Dubai, are among the top countries in DAFZA’s Asia-Pacific companies and operate in the fields of electronics, jewelry and precious stones, food and beverages, pharmaceuticals, nutrition and medical products, and automobiles, are operating in DAFZA to date. Jamal Bin Marghoob, director of marketing and corporate communications at DAFZA, said: “DAFZA supports Dubai’s transformation into an investmentdriven economy according to the government’s initiative to diversify its economy away from oil dependence and establish diverse sources of income. The recently concluded seminar was another fundamental initiative to promote strong cooperation between the Freezone and Singapore’s flourishing business community.”
US manufacturing hits 16 month high The ISM Manufacturing Index, a measure of US manufacturing output, has demonstrated a rise in activity for the second consecutive month in June 2016, putting manufacturing output at its highest level since February 2015, according to reports in the Wall Street Journal. US auto sales however, saw a decline, rising at the slowest recorded pace in 13 months, as GM and Toyota posted declines. Airfreight exports declined 4% in May 2016.
Container scrapping up The demolition of containerships almost tripled in the first five months of 2016 in comparison to the same period of 2015. According to the report by Marine Link, this illustrates the efforts carried out by shipowners to counter the fundamental imbalance between supply and demand under poor container shipping market conditions. A total of 150,863 TEUs of panamax ships have been demolished so far in 2016, this equals the number of the same type of ship scrapped from June 2014 up to and including December 2015, which could be down to excess supply. ML chief analyst Peter Sand says: “Throughout 2016 very poor market conditions stemming from excess supply has triggered higher demolition activity. Given the stubborn growth of global demand, increased scrapping is the way to diminish the gap between supply and demand in the containership market. BIMCO is therefore raising its forecast for containership demolition from 250,000 TEUs to 400,000 TEUs for the whole of 2016”.
HK Express bans shark fin cargo FedEx has become the latest cargo carrier to be pressured by Chinese activists to ban the transportation of shark fins, following a move by HK Express to ban the shipment of the fins. HK became the first Hong Kong airline to ban the controversial shipments in May of this year, with CEO Andrew Cowen branding the practice cruel. A protest was held outside the FedEx Kennedy Town service centre last month, by a group of activists – some dressed as sharks. 12 | Logistics News ME | August 2016
news
Enjazat Services Opens Service Desks at kizad Abu Dhabi Ports has entered into an agreement with Enjazat Services to set up dedicated service desks at Kizad. These desks at Kizad’s headquarters in Al Taweelah will support investors within Kizad and Khalifa Port, as well as the surrounding communities, with all government-related businesses transactions. The businesses operating within Kizad and Khalifa Port can now draw up suitable service terms with Enjazat to handle their government transactions in a fast and hassle-free manner. “Our efforts to enhance our customers’ experience include facilitating their government-related business transactions. Having an Enjazat centre at our premises will support our investors from the onset with regard to setting up their businesses, as well as supporting their operations and employees,” said Mana Mohammed Saeed Al Mulla, CEO of Kizad. Two counters are dedicated to Enjazat within Kizad’s Customer Service. The service desks will provide end-to-end service related to licensing, residency permits including labour visas, free zone employment visas, family visas, legal translation, legal consultancy, and additional third party specialised services for companies and investors.
Royal HaskoningDHV appointed to Jeddah logistics park Royal HaskoningDHV has been appointed by the Saudi Trade and Export Development Company, Tusdeer, to provide the master planning and consulting engineering services for a new state-of-the-art logistics park in Jeddah. Tusdeer has entered a PPP agreement to develop the 634,000 m 2 Tusdeer Khumra Logistics Park (TKLP) in the Al-Khumra district in south Jeddah. The TKLP development promises to provide employment opportunities and boost the local economy. Royal HaskoningDHV and Tusdeer’s partnership will thus play a key role in the Kingdom’s Vision to ensure more diverse and sustainable socio-economic growth for the future. The TKLP’s site plan includes a logistics hub, warehouses constructed to international standards equipped with the capacity for dry and cold storage, container storage, handling and accommodation for workers.
26,000 TEU containerships on the horizon The debut of a 26,000TEU containership could be on the cards, according to reports from Maritime Executive, despite such a ship being too big to sail down the new Suez Canal. To be viable, supersize ships may need to sail between major transshipment ports and interline with smaller vessels at both ports. For example, a trans-Pacific service or the option to sail via Cape Town. The report concluded: “A series of alliances and agreements amongst shipping operators could create market application for such large ships on the Indian, Pacific and Atlantic Oceans. Further independent market research will be required to determine the ship’s future applicability”.
NAFL appoints Shankar Subramoniam Shankar Subramoniam has joined the National Association of Freight & Logistics (NAFL) in the position of executive director. Subramoniam is experienced in establishing and maintaining regional and global logistics and supply chain function from inception, as well as driving operations for leading global and local companies. He has played a strategic role in achieving top-line as well as bottom-line objectives; prepared and managed annual operating plan and managed multi-million dollar budgets and operations. Shankar aims to bring innovation and talent connect into the NAFL portfolio, thereby spreading the experience of the organisation and linking it to the world. For an exclusive interview with NAFL president, Nadia Abdul Aziz on page 26
news
NAFL in bid to bring FIATA to Dubai
Delivered and Undelivered 2016 built vessels by ship type
Source: Vessels Value
NAFL president Nadia Abdul Aziz has met with HH Sheikh Ahmed Bin Saeed Al Maktoum, who also serves as Honorary Patron of the National Association of Freight Logistics, to discuss a bid to host the global FIATA Congress in Dubai in October 2020. If successful, it would be the first time the event has been held anywhere in the MEA or APAC regions. With the 2016 edition scheduled to take place from 3 – 8 October in Dublin, Ireland, Abdul Aziz is preparing to meet with the FIATA board to pitch Dubai’s capabilities, innovations and world class reputation. Suggesting to host the event at the same time as Expo2020 is hoped to add to the USPs Dubai can offer the global congress. Speaking to Logistics News ME, Abdul Aziz said: “We strongly believe that bringing the congress to Dubai during Expo2020 would bring the FIATA delegates a chance to secure even more investments, opportunities and deals during a 2020 edition of the event, as well as the other various things that will be exhibited and enjoyed during that time due to Expo2020.” For the full story turn to page 26 14 | Logistics News ME | August 2016
Tristar wins AED300m Dubai South contract
Tristar Engineering and Construction LLC, has been contracted to deliver completed infrastructure works of Phase 1 and 2 of the Residential District in Dubai South by Q4 2017. Awarded the project by master developer Dubai South, the AED300m project spans 2.2 square kilometers, with work including road works, potable water network, sewerage network, storm water drainage network, combined irrigation and firefighting network, district cooling network, electrical works, telecommunication works, road lighting, gas network and spare ducts. Present at the occasion were HE Khalifa Al Zaffin, EC of Dubai Aviation City Corporation and Ahmed Al Ansari, acting CEO, Dubai South. Naji Hasan Al Harthi, chairperson, Tristar Engineering and Construction and Sabah Khattar, executive manager, Tristar Engineering and Construction.
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Case Study
Shipping Smart
Dubai’s air conditioned bus stops are being transformed into service providing Smart Shelters offering commuters everything from bill payments to lunch on the go. But the shelters are also looking to transform shipping and last mile delivery services. Logistics News ME reports
I
t isn’t just technology that makes a city smart but citizen engagement, and a key method of fostering that engagement is through the renovation of urban infrastructure. In Dubai’s plans to become the first Smart City in the Middle East it has rolled out more than 500 initiatives, including integrated public services, and it isn’t just smart that the city is aiming for, but happy also. Under the plans to digitise and connect more and more of the physical emirate, as well as the services that make it tick, certain areas of business are set to benefit from a raft of new opportunities. Already eyeing a near four-fold increase in its value, the e-commerce industry is set to increase in value from $2.5bn currently by Dubai Chamber’s calculations, to $10bn by 2018. Aramex is already seeing gains with a 13% increase in revenue recorded in Q1 2016, compared to Q1 2015, and other couriers are following suit, driven not just by e-commerce but the heightened demand for goods and documents to be transported securely and quickly. However convenient these services are to the end user, efficiency behind the scenes can always be improved and so a tri-party PPP agreement between service providers and Dubai Road and Transport Authority (RTA) is about to provide that platform in the city’s air conditioned bus shelters. Enhanced to become a kerbside retail concept providing on-the-go convenience products and services to the estimated 80% of the Dubai population that is dependent on public transport, the new “Smart Shelters” are located in densely populated urban
16 | Logistics News ME | August 2016
centres such as Jumeirah, Satwa, Karama, Bur Dubai, Deira and others. The concept – created and exclusively operated by Al Shamil Foodstuff Trading, in partnership with the RTA and Right Angle Media – will see 100 shelters out of the total 656 locations in the city converted to Smart Shelters, based on their connectivity and proximity to densely populated urban centres. Smart Shelters will be open all day every day, with services including free WiFi, mobile charging, Nol and telecom recharge, bill payments and mini-market shopping, in addition to courier services. Al Shamil, which began its partnership with RTA by providing catering services on the Dubai – Abu Dhabi bus routes, proposed the idea and embarked on a two year feasibility and research study to ensure the idea would provide optimum benefits for the partners who operate in the shelters and the commuters who will use them. “With RTA we ran an extensive survey of commuters to understand the challenges that exist, the needs of the public and how the removal of half the seating in a shelter would affect their experience,” explains Rohit Dalmia, MD of Al Shamil Foodstuff Trading. “Courier services are a daily necessity for the shipment of documents and parcels. In addition people are ordering online much more now than before and consumers want two things: close delivery, preferably on their doorstep and to minimise what they pay in shipping costs,” he adds. Philippine shipping company LBC, which has
Case Study
Dubai’s new Smart Shelters
operated a drop and ship service at Smart Shelters for three months, is already in discussions about renewing its contract and expanding to double the number of outlets in three to six months. “You’re not forcing the customer to come to you, LBC has gone to where its target market lives and commutes and they have realised that there is a huge amount of cost saving. They have their own logistics services shuttling between the shelters to pick up the cargo instead of going door to door to every home. So they have had huge savings by making their logistics more efficient and the customers love it because they are close by and it both makes and saves money,” Dalmia continues. Scaling up the model Not every smart shelter will provide courier services and, the international shipping services provided by the LBC contract aside, there is room for only one courier in the plans. Dalmia explains: “It’s a first move opportunity and the first company to come in and take locations will have that reach. We want a good mix of products in each shelter and there is room for one large player.” There are options to brand the entire shelter, staff or automate through a locker system and it’s also possible for an e-commerce site to have its own locations across the city, cut out the courier, and do a direct drop to buyers. With operating costs estimated at AED100,000 per year per shelter, the flexibility exists to scale up operations until profit margins show the desired return. It’s a means by which to monetise public infrastructure in a way that also provides services for commuters and opportunity for businesses.
Smart Shelter business models • Philippine shipping company LBC operates services from Dubai Smart Shelters whereby customers collect boxes to pack and then drop back at the shelter for shipping to the Philippines. The reduction in door to door requirements keeps costs down for LBC, which is then able to pass savings to the customer. • Last mile delivery is currently not offered by a courier/ logistics partner although Al Shamil is currently seeking partners. Under this model a courier company would take 15 – 20 shelters across Dubai with the flexibility to brand, staff or automate in order to provide drop and ship or a locker system delivery model • E-commerce brands such as souk.com and others could also viably brand and run a shelter to provide reduced cost delivery to shoppers and minimize multiple attempts at each door to door delivery, although this would not work for all types of products retailed.
Logistics News ME | August 2016 | 17
Like mall operators, Al Shamil wants a wide tenant mix
Dalmia explains: “We want to select one partner that is big and strategic enough and we want that partner to take a number of units across the city. You can cover every corner of Dubai with only 15 or 20 shelters. Just like malls are cautious about their tenant mix, we are also careful to make sure services here don’t overlap. We can’t have two competing services within a close proximity and while we don’t do exclusive contracts, we need to make sure new partners don’t impact on the business of current partners.” As such, it’s a model that would work alongside the locker system that can be seen in Dubai’s gas stations because, as Smart Shelters’ initial research found, only 20% of Dubai’s population drives a car; regardless of how much higher that may seem at certain times of the day. While it would be easy to think the idea can only work in a city that lacks a unified postal system, the popularity of the concept to date begs to differ. The idea has been well received in the market, with
discussions ongoing between Al Shamil and a number of service providers, not to mention governments with an eye on rolling out more of their own smart initiatives, including in Iceland, Saudi Arabia, Mauritius and Bangladesh. “I think what is happening is a lot of these projects are actually initiated by the respective governments. The Mauritian government for example issued a tender for the insulation of smart bus stops across the country and they approached us to provide a complete solution they will franchise from us and offer to the government. How the funding model will work from there is yet to be decided but people are now looking to us as the authority on infrastructure in public places. “We are looking at how we can replicate this model and we are also in touch with a leading transport association in Chicago. Everybody has different requirements – but the trend here is to monetise public infrastructure beyond the advertisement model,” Dalmia concludes.
It’s a first move opportunity and the first company to come in and take locations will have that reach. We want a good mix of products in each shelter and there is room for one large player
18 | Logistics News ME | August 2016
No job too big for MAN.
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Sector focus
Picking for purpose With budgets squeezed and competition ever tighter, many businesses are forced to asses their equipment needs, specifically when it comes to forklifts. Logistics News ME rounds up the leading advice to find out how firms can reduce their procurement risks When buying forklift machinery how can a client be sure they are selecting a fit for purpose model? Asif Sayed Khan: There are many aspects to consider when buying a forklift. Choosing the right machine can have a tremendous impact on everything from operating costs and productivity to employee morale and downtime, but the following are the key criteria’s while selecting the forklift: maximum weight of load to be handled; maximum lift height required; capacity and full height; type of application (i.e. indoor/outdoor); aisle width and operational hours. 20 | Logistics News ME | August 2016
Raphael George: There are many factors in this decision: type of battery, be it diesel or LPG; capacity needed, lift height needed, net capacity at maximum lift height, and so on. We meet our customers to collect information and note key measurements which could help them buy the correct machine to best suit their needs. For example we met a customer who wanted to buy a 2.5 ton diesel forklift to lift a paper roll, but on visiting the customer, collecting information and then confirming with both the forklift supplier and the attachment supplier, the actual minimum capacity forklift needed was 3.5
ton. Hence always consider professional help when buying MHE or attachments. Are certain models suited to specific business needs? ASK: Yes the model of forklift will vary according to business needs. For example in the food industry diesel forklifts cannot be used as per regulations. Similarly it is recommended to use IC Engine forklifts for external application. To summarise, the model will be selected according to work environment, throughput and nature of product to be handled. RG: Yes of course certain models have
Sector focus
specific operation and capability, but this is not well understood and customers need to use the correct machine for the correct application. We have seen reach trucks working like forklifts whereby they are being used to offload material from inside the container. This is not the intended use and this has several expensive repercussions and repair costs. How can a buyer manage their costs and minimise the risk of losing money on such an investment? ASK: Buyers should keep in mind that renting is generally preferable when using equipment for short periods of time or if the buyer wants to avoid risks associated with equipment breakdowns and maintenance. While looking for a long term investment, it is ideal to go for purchasing the equipment. Buyers can often lower total cost of ownership by paying more upfront for most durable equipment brands like Crown which will in turn pay back for the initial investment. RG: Opting for renting a machine to ensure that the customer understands the exact need and future requirement before actually purchasing the unit we feel is the key. Many a times we have seen customers who have purchased a reach truck where in the closed height is higher than the door height and hence restricts the reach truck operation to within the warehouse. Also we have seen forklifts with a battery capacity much lower than the requirement which results in the machine having less operating time. In another case a customer had purchased a diesel forklift with a lower capacity to handle paper rolls with a paper roll clamp not calculating the load centre and weight of clamp initially. Hence we suggest rent for a short or a longer period if you are unsure of your exact requirement. In terms of percentage of the original investment, how much can a forklift owner expect to re-sell their used equipment for? ASK: It could be up to 40 to 50% of the buying price. However this will be purely depending on various factors like brand, year of manufacturing, number of hours of usage, periodic maintenance and working
condition of the machine. RG: There are various factors that determine this: year, brand, capacity, options and physical appearance we feel are all key factors. Being a service company we can repair a lot of the machines and hence we take into account factors other than technical condition. Technically we can only check these units in our workshop and with the correct technicians, but most of the time we can offer the client a price on the very same day. What are the main innovations in forklift technology that are driving the market today? ASK: There are lot of innovations happening in the forklift industry. Last year, Crown launched its Quick Pick Remote. The new award winning lift technology means operators can now raise and lower the truck’s forks without having to use its control handle. Consequently operators have both hands free and no longer have to walk as far, bend as often or lift as much – all of which help improve productivity by reducing physical strain and operator fatigue. The auto positioning system in the Crown VNA was launched earlier this year and this navigation system allows the operator to complete a task operation with just one control handle movement. This ensures optimal productivity and correct slot locating regardless of operator experience or skill level. RG: Seeing a shift towards a price driven demand, forklift companies have to see into value added services or features from which the customer can actually benefit. For example, we install speed control devices, proximity sensors, warning lights, camera systems so the forklift itself is not only is safer but overall safety in the workplace is given a priority. What do clients demand from their forklift equipment and how is your firm meeting this demand? ASK: Nowadays the demand from most of the clients is for a low cost of ownership. We believe with the quality of Crown and excellent after sales support, we are doing full justice to our customers in terms of reduced total cost of ownership over the lifetime of their forklift equipment.
Top tips for forklift maintenance
Raphael George DSA, director, Buss Engineering and Heavy Equipment Repairing LLC 1. If it’s an electric MHE we stress on correct battery and charger maintenance and to follow correct battery charging procedures and checks. 2. If it’s diesel we stress on regular oil changes as due to heat and dust the actual lubricant properties in forklift engines diminishes faster and changing the oil regularly can keep your engine healthy, well lubricated and protected. 3. Regular tyre checks is also key as customer fail to see the importance in this. Worn out tyres can cause problems to engines, transmissions, motors, logic cards etc, either directly or indirectly. Regular checks and replacing the tyres in time is key.
RG: We see many clients demand safety products. This is our company’s initiative to try and incorporate them as standard on all types of MHE. For example if you want to maintain and fix the speed of all MHE in your workplace to make it safe and prevents accidents, now you can. If you want to prevent accidents caused by your forklift from reversing into Logistics News ME | August 2016 | 21
Sector Focus
Top tips for forklift maintenance
Asif Sayed Khan, GM Plant and equipment, Genavco LLC 1. Operators should do a daily check of the equipment before driving to check things such as faults on brakes, steering, controls, warning devices, mast and tyres. 2. Ensure the forklift is not overloaded at any time. 3. Always do the service with manufacturer at recommended intervals, through the supplier.
pedestrians, vehicles of goods, now you can. If you want pedestrians to be warned when a forklift is coming out of the aisle to prevent any mishap, now you can. The cost is minimum but you can set a safety standard now in your own organisation. When it comes to operator safety, do you offer training as an optional aftercare service? ASK: For all our customers, it is regular practice to conduct operator trainings at site at the time of commissioning. If the operator is new, we will give repeat trainings until that person gains confidence to operate the machine independently. A certificate will be issued once the operator successfully completes the training process. 22 | Logistics News ME | August 2016
1: Crown Reach Truck 2: Crown Stock Picker 3: Crown Forklifts
RG: We have tied up with professionals and can support our customers on this. Not only is an operator the only person who needs this knowledge everyone from top management to a normal labourer is key and we would like to empower every level to know about the MHE as it helps in workplace safety and also in the MHE’s actual lifespan. How often should operators be trained/ re-trained to maximise the safety of the workplace and equipment? ASK: It is recommended to conduct
training once in every year in order to maximise the safety of the workplace. We are following this for all our fleet customers through our fully equipped training centre. RG: If owners install safety devices, which is a one-time cost, then the operators need only the basic training. Today safety devices are installed on company’s assets which will always be with the company. Operators come and go hence we believe in making your work area safer by installing simple safety products to give the power back to the top management and owners.
Cover story
The view from the top
Nadia Abdul Aziz, president of the National Association of Freight and Logistics and partner and MD of UNASCO, speaks to Logistics News ME about her campaigns to promote the strength of the UAE’s business infrastructure, its nationals and women in industry
A
s a female Emirati who stepped in at short notice to ensure the continued success of UNASCO, Nadia Abdul Aziz represents a part of the workforce that is almost nonexistent in the industry today. But rather that rest on her laurels and enjoy the success she has already achieved, she is using her unique position to further secure Dubai and the UAE’s place on the global stage – not to mention striving for future innovations across the industry – and promoting the prevalence of both Emirati nationals and women in logistics. In addition to being managing director and a partner at UNASCO – a firm established in 1982 under special decree from the late HH Sheikh Rashid bin Saeed Al Maktoum – Abdul Aziz is the first female president of NAFL, is a nominated board member of Dubai Land Transport Group (DLTG), and an elected committee member on the Al Noor Centre for Children with Special Needs support group committee (ANSCO). She is also president of WILAT-ME, Women in Logistics Middle East, where she works to empower women in the industry by engaging with stakeholders from across the education and employment chain. But her next achievement could see Dubai’s logistics industry taking centre stage during Expo2020; NAFL’s bid to
host the FIATA World Congress in October 2020 in Dubai. If successful, it would be the first time the prestigious global event has been held anywhere in the region, counting the Middle East, Africa and Asia. Presenting the bid in a few months’ time, Abdul Aziz, has already met with the highest offices in government, including HH Sheikh Ahmed Bin Saeed Al Maktoum, who is also Honorary Patron of NAFL, to talk about the support that will be needed from them, as well as semigovernment entities, and the value that Dubai could bring to such an event. With the 2016 edition scheduled to take place from 3 – 8 October in Dublin, Ireland, Abdul Aziz is preparing to meet with the FIATA board to pitch Dubai’s capabilities, innovations and world class reputation. Suggesting to host the event at the same time as Expo2020 will only add to the prominence Dubai can bring to such a congress. She says: “We strongly believe that bringing the congress to Dubai during Expo2020 would bring the FIATA delegates a chance to secure even more investments, opportunities and deals during a 2020 edition of the event, as well as the other various things that will be exhibited and enjoyed during that time due to Expo2020.” Logistics News ME | August 2016 | 25
Cover story Lending a voice It isn’t only Dubai and the UAE that benefits from Abdul Aziz’s support. As a female Emirati business leader her position may be somewhat unusual, but is one she uses to the benefit of others. In her work with NAFL and WILT-ME she has been firmly focused on the inclusion of UAE nationals in the logistics industry and has clear ambitions to increase the numbers of both Emirati and female leaders in the industry through continued collaboration with government, the private sector, education institutions and other stakeholders to present UAE nationals with growing job and training opportunities as part of being members of the NAFL. Included in its many functions, NAFL offers a wide array of industry related training programmes, including the globally certified FIATA Diploma. She says: “The freight and logistics industry is one of the fastest growing industries in the region at the moment, and yet we do not have enough UAE nationals establishing themselves in it. “This is mostly due to a greater need for awareness and understanding of the industry and the various career opportunities available to it. My work, in terms of increasing the number of UAE nationals, would be through creating awareness, and collaborating with the different authorities.” That awareness takes on many different forms, through road shows with local universities and the private sector, wherein she presents the educational and career potential available in the industry. She engages with various media agencies to shine a light on the industry, as well as the training and professional growth that NAFL is able to provide for seriously interested professionals. “This is especially important since our government has spent the most investment over the coming years in the logistics industry. Media agencies will help us widen our reach and awareness through social media platforms like Facebook, Twitter and LinkedIn, to name a few,” she continues. And it doesn’t stop there. Like many GCC countries – and various industries within the countries – quotas for the employment of nationals have brought about hugely encouraging results and in the case of the UAE’s logistics industry, it is something Abdul Aziz would like to see replicated. “I strongly believe that a government should impose nationalization and quotas, as well as provide freight forwarding 26 | Logistics News ME | August 2016
I joined [NAFL] to bring in innovation and advanced usage of technology to the industry, as well I wanted to change the way business was being handled, to steer it towards a more ethical and sustainable way of business practice.
the industry by prominent public figures. Only then are more people likely to join and establish their careers in it. The private sector should offer competitive packages to UAE nationals to induce them into the industry and maintain them within their companies,” she continues. Far from calling for change from a distance, through NAFL Abdul Aziz is working with the regulatory authorities on educating their staff on freight forwarding to enhance their understanding of the industry issues they may face and preparing them in how to respond to such issues appropriately. “It will help reduce and eliminate the customs problems with the forwarders,” she adds.
courses in universities to UAE nationals. Courses should not be limited to the private sector, the government should take it upon itself to increase and enforce the presence of freight and logistics courses in all educational institutions - from high school, training centres, colleges and universities as well as during career fairs,” she shares, believing in a clear correlation between awareness of what a career in logistics could entail and the take-up of positions within the industry. “There should be great coverage given to
Women in Logistics Emirati nationals aren’t the only underrepresented members of the workforce. Through Women In Logistics and Transportation (WILAT-ME), Abdul Aziz is also leading support for women in the industry. Part of the global CILT network – for which she is the regional chairperson – support includes awareness and training with the aim of fostering empowerment. The 260-member strong local branch helps support women in the industry by
Cover story
mainly providing networking sessions, training, gala dinners and awards of recognition. Using the multi-task capabilities of women, the organisation encourages its members to participate in seminars and workshops to give more information and a better understanding of the challenges they may face at work. “Right now it is a good time for women professionals to move into the industry as there is an accelerated growth in technologies and innovative practices,” she says. It’s a cause that appears even nobler when one learns about Abdul Aziz’s own career path. A marketing professional by experience, she entered the industry when one of the family business’s senior managers was discovered to be damaging the business. She took the role and never looked back, utilising knowledge in HR, marketing and PR to build the freight forwarding family business. Taking control of her own continued professional development she took courses and gained varied experience to educate herself towards successfully entering and remaining in the field. Paying it forward, specialist courses have been established at NAFL for starting up new freight and logistics businesses on the topics of how to change family businesses into professional international businesses,
e-logistics and e-freight, among others. She continues: “Educational institutions that train and educate their students in the industry will help create more demand and interest of professionals in the industry. Also, it will create opportunities for people looking for jobs – who are unable to find jobs in other sectors – where taking a few short courses to introduce themselves into freight and logistics will provide them with the strong building blocks for establishing themselves here. “Companies should encourage women through the recruitment processes to join the industry and companies should provide the right, comfortable environment for a professional woman to work in. They have to recruit, encourage, empower and offer relevant training to encourage the growth of women within the company. It is a male dominated industry but having the tools and training made available to women in logistics, empowers them within the industry to be more efficient in their work.” In becoming a role model for so many potential future industry leaders, Abdul Aziz has a strong message for those her work helps to support and in turn her words are echoed by the likes of Dubai Economic Department, which has recognised the freight and logistics industries to be top ranking in terms of growth for the next decade. “My message to everyone seriously interested is to get training and work experience. They should be confident and believe in themselves, as well as network with the relevant experts in this field. You don’t have to be an industry specialist to be a logistics professional. NAFL provides training and work experience to support and provide a foundation for professional growth in the industry. “Finally, learn from mistakes – that can only come from experience. Don’t give up; it is a very challenging industry but also a growing industry.” The next step With an in-tray no doubt piled high with new and existing projects, it is easy to forget that Abdul Aziz still has the family firm to run. Reporting sustainable growth in H1 and “favourable financial trends by the end of this year”, opportunity for UNASCO lies in the high volumes of cross trade going on at the moment; e-business, e-trade, and smart business rank high in her list of growing industry trends. Smart business is receiving a boost from all divisions of government and the
logistics industry is fast becoming a primary beneficiary of such progress; for example, cargo handling through e-portals is being implemented by Dubai Trade and Dubai Customs. In response, one of the many things she is pioneering with UNASCO is the addition of e-marketing and trading as part of the business’s enhancements, to complement its clients and help increase their sales and profits. At NAFL, there are plans for an Innovation Center, a Mentoring Young Professionals programme and work is underway on the new concept of ‘Freight and Logistics with Health, Wellness and Happiness’. That doesn’t mean the industry currently is without challenges, with the primary trials faced globally including the financial stability of companies. “In the tough times we face currently around the world, the primary challenges are to ensure that all costs are covered and businesses are increased without having to be downsized. Creating new opportunities in different markets, cutting down unnecessary costs, etc. would be a few ways to do this,” she shares. When asked what she would consider to be her greatest achievement to date, she answers: “That I managed to keep the family business running and develop it into a professional organisation of choice. “Over my career, I joined industry related associations and was the only female member on the board. Today, I have been recognised and elected as the first female president of NAFL. I joined [NAFL] to bring in innovation and advanced usage of technology to the industry, as well I wanted to change the way business was being handled, to steer it towards a more ethical and sustainable way of business practice.” In that, she has no doubt achieved the goals she set out with. But Abdul Aziz also has an acute awareness of the power of the global stage and making strides to secure Dubai and the UAE’s place on it, remains a top priority for her. With the FIATA bid pending, and no doubt many more ideas to still be initiated, there is little doubt of her ability to become one of the most powerful players in the industry. She concludes: “We will continue to highlight to the overseas companies the importance of becoming part of our story of growth in Dubai. The rulers and major decision makers are visionaries, thus making the UAE what it is today.” Logistics News ME | August 2016 | 27
A n a ly s i s
The world’s first DIY recession
After the UK votes to leave the European Union, Old Mutual chief executive, Richard Buxton, reflects on events of the last month and analyses the immediate market fall out
W
e had expected the result of the vote to be close, but our conviction was nevertheless that the status quo would
prevail. The biggest sadness of Britain’s vote to leave the EU is that it is reasonable to assume that the UK will quickly enter a period of economic recession, the key reason why we believed the outcome would be different from what has materialised. It is, in effect, likely to be the first ever “DIY recession”, as George Osborne prophetically called it. The oil price declined immediately by around 5% as the likely result of the vote became clear, suggesting expectations for a marked decline in global demand. Other early indicators included declines in the Australian, Hong Kong and Japanese equity markets, which were still in session as the results were being announced. Bond yields immediately declined (prices rose), as investors began to seek perceived safe havens. We believe that the prospects for domestically focused UK businesses are clearly the bleakest of all. FTSE multinationals will, on a relative basis, almost certainly perform better than their domestically oriented peers as the weaker pound will support overseas earnings when translated back into sterling. Nevertheless, investors should now brace themselves for an unpleasant period of relatively indiscriminate selling as funds aim to meet redemptions in conditions where liquidity may be more limited than usual.
28 | Logistics News ME | August 2016
inward investment is likely to remain at best muted, as both international and UK businesses consider their options for future capital expenditure and hiring. The result, in our view, also has potentially very serious implications for the future of the European Union itself; a break-up of the broader union has today become a distinctly greater possibility, and we would not be surprised to see amplified calls from, for example, the Netherlands, Sweden and Denmark to leave the EU. Meanwhile, the result of the vote in Scotland shows a very different picture from that of England, with voters north of the border choosing resoundingly to remain in the EU. As such, the likelihood of a break-up of the United Kingdom has increased significantly.
In terms of international markets, there seems to be a real possibility that the result could contribute to tipping the US economy into recession. Policy response and mediumterm view Looking further ahead, it seems inevitable that the UK and European economies will face a period of two years of uncertainty, as the UK attempts to negotiate how to extricate itself from the European Union, while maintaining access to European markets. During this period of uncertainty,
Emotional reactions Within equity markets, as ever at times of market stress, emotional reactions will mean that price falls will overshoot; this is the very nature of stock markets. The gold price was one of a very small number of bright spots as the result became clear; it immediately broke convincingly through the $1,300/oz barrier, as investors looked for safe havens. It is hard not to feel disappointed at this result, which we know is likely to result in a difficult period for UK equity investors. As ever, we will do everything in our power to help our clients to navigate these market conditions; any investment decisions we take will be made with careful consideration.
Sector focus
As simple as A high-performing warehouse management system can influence the performance of both the workforce and the space they inhabit. Logistics News ME catches up with two vendors for their investment and ROI tips How widespread is the adoption of warehouse management systems (WMS)? Brian Mozhdehi: In EDI we have 350 customers in 12 countries, including at least 10 customers in the Middle East, which includes Dubai, Lebanon, Saudi Arabia and Pakistan to name some countries. For WMS, we have approximately 60 customers in the USA, Canada and Cameroon. Our WMS software has been on the market for four years and EDI for nine. We are hoping to achieve a similar trajectory of adoption for WMS in coming years. Sanjeeve ST: The current business scenario, demands good systems in place to meet growing customer demands. It is even more demanding when you operate within free zones to maintain free zone related documents and ledgers. Though the demand of such systems weren’t critical in the gulf region, the scenario is changing with global brands entering into the market. As market grows in the coming years, the adoption becomes inevitable to service customer demands. What kind of ROI can the implementation of WMS solutions achieve? BM: For WMS, our software is extremely powerful out of the box and provides configuration based functionality as opposed to customised in the field function. This allows end 30 | Logistics News ME | August 2016
users to drive customer requirements much more rapidly to meet ever changing logistics needs without incurring excessive costs and long timelines. For EDI, our solution has a similar concept insofar as it is driven by configuration, enabling the connection of, in addition to EDI, such functions as Web Services, XML, HTTP, Flat Files all in a dynamic, easily configured toolset. This again allows rapid low cost deployment of interfacing solutions. SS: The ROI is achieved in less than a year’s time in implementing good WMS solutions. The larger the operations, the faster the ROI. The ROI is achieved based on multiple factors. These can include: Streamlined processes and operations, would help in substantial reduction of operational expenses; accurate order fulfillment leads to ontime deliveries and better customer service; inventory shrinkage could be controlled to a good extent eliminating loss in inventory; efficiency in operations is huge saving on longer tenure. In the case of third party logistics accurate and flexible billing methodologies helps in revenue losses. At the same time system approvals and controls stops revenue leakages in all fronts. Finally, a good system is as good as the facility, and future business opportunities are tightly linked with the system in place.
Tips for implementing warehouse management systems
Sanjeeve ST
• The firm must have a good clarity about what WMS can and cannot achieve • The firms must have a clear understanding about the objectives and results that would be achieved in implementing such systems. • Choosing the right vendor with a proven history in implementing such systems is quite important for successful implementations and roll outs.
Sector focus
Tips for implementing warehouse management systems
The panel Sanjeeve ST
Flexigistics Established: 2016 Operating territories: GCC
Brian Mozhdehi president, Ramp Systems Established: 2006 Operating territories: 12 countries, including USA, Canada, Ireland, Cameroon, Mexico, Chile, Dubai, Lebanon, Saudi Arabia, Australia, New Zealand, Pakistan
How can a software solution be optimised so ROI can too be maximized? SS: The majority of the good solutions are optimised to handle the operations. It is down to the management to ensure all the operations are system driven thereby avoiding manual processes. Well trained users and a whole-system understanding is mandatory for faster ROI. Dynamic tuning of existing processes and reducing transactional time lines would also help in achieving faster ROI. What are the primary barriers to adoption you see in the industry currently? BM: I believe primary barriers are cost of change, both in terms of currency and investment to train on new systems. Existing systems investments are significant and it requires economic driving factors to enable change to more efficient systems. SS: Warehousing business comes from a conventional background, hence the investment is the primary barrier in its adoption. A good WMS system never 32 | Logistics News ME | August 2016
Brian Mozhdehi
comes cheap and justification on investment at times poses challenge at the adoption stage. In selling your solutions how do you overcome these barriers? BM: When we pitch our solution(s) we must show a short term and enduring ROI. Since our software has extensive, configurable capabilities and is built on a modern platform, it is faster and more efficient than our competition. With labour savings, reduced maintenance and consulting costs, the latter achieved by highly functional software, configuration vs code and modern tools, it is often possible to provide immediate cost benefit to our customers. SS: A good system is an inevitable factor when it comes business opportunities. Good systems play a prominent role in retaining existing customers, providing the right services and generating accurate reports. Future business demands integration with third party applications and EDI services when it comes to global brands and these such business acquisitions demand enterprise systems.
• Software should have functions that you need now and functions, either existing or planned, that you might need in the future. The logistics industry is rapidly changing and with globalization, the pace of the same shall continue to accelerate. The solutions are simply too expensive to not have both long term and short term durability to meet business needs. • Services: The third party/ outsourced logistics industry is service intensive by its nature. Customers demand immediate solutions. Providers need software solution providers that are always available and ready to help meet their customers’ needs. • Technology: Any selected vendor should have a commitment to stay current with recent technology and provide solutions that are not restricted by platform. These should include not only traditional platforms such as Windows and Unix/Linux but also private cloud/ high availability platforms, mobile devices, tablets in its current manifestation. As time goes on, the commitment needs to be present to keep pace such as to continue to be able to meet endcustomer needs
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Country focus
Winning streak Capitalising on its advantageous geography Oman’s logistics sector is out performing others in the GCC, and is predicted to experience CAGR of 6.9% between 2015 and 2020.
O
man’s logistics sector has been the centre of a string of ambitious announcements over recent months, from the launch of the Sultanate of Oman Logistics Strategy (SOLS) 2040 in March this year, to ongoing road, rail and port mega-projects totaling $50bn over the next 15 years. The transport and logistics sector accounted for around $8.81bn of Oman’s GDP in 2015 and figures published recently by Frost and Sullivan predict the sector’s growth will reach 7% by the end of
34 | Logistics News ME | August 2016
Q4 with a compound annual growth rate of 6.9% to 2020. With an industrial minerals mining boom also on the cards, that figure could grow even further in the coming years as demand for transport infrastructure increases in tandem. Despite being the second largest country by land area in the GCC, Oman is a silent player when it comes to economic performance among GCC countries. Capitalising on its advantageous geographic position, ports contribute massively to the economic growth of the
country with outbound port traffic increasing steadily in recent years. Oman has three deep water and two industrial ports. Sea transport accounts for more than 80% of freight movement in Oman and is likely to grow by 4.8% in 2016, driven by the increasing intraregion GCC trade and demand from Asia, Europe, and Africa. Sohar and Salalah Ports dominate the sea freight sector, with 80% of all freight moving through one of the mega-ports. The volume of goods loaded at Salalah Port more than
Country focus Salalah Port
Fast facts
7%
predicted growth of logistics sector in 2016
80%
of freight in Oman handled by Sohar and Salalah Ports
4.8%
predicted growth in sea freight in 2016
$50bn
worth of megaprojects planned over the next 15 years
11
places climbed in the World Bank Logistics Performance Index
80,000
job in logistics by 2020
680km
road to link Oman and Saudi Arabia
doubled from 2009 to 2013, rising from 2970dwt to 6780dwt, according to figures published by Oxford Business Group. When it comes to rail the entire GCC has seen its plans derailed and in May of this year, Oman’s Department of Transport announced that its projects would too be delayed. “The ministry of transport and communications has not cancelled the project but only delayed it as other Gulf countries have decided to stop work on the project,” Mohammed Al Shuaili, director of the Minister of Transport and Communications Office told Times of Oman in an interview at the time. According to Oman Rail, the estimated total length of the Oman National railway network is 2135km. It was to be divided into several segments linking Oman’s borders with the UAE to Muscat, as part of the GCC Railway Network and also to the southern parts of the country - Port of Al Duqm, the Port of Salalah and the Yemen border.
The decision to invest in development of the infrastructure like ports, roads and airport are the correct one to develop the logistics industry. The infrastructures are placed and now they have to deliver. The railway was planned to be double track, non-electrified and designed to serve mixed freight and passenger traffic at speeds of 120 km/hr and 220 km/hr respectively. Oman’s plan to link all its ports fronting the Indian Ocean to the GCC Rail network would have positioned the country as a true
gateway to the Gulf; goods could be offloaded much sooner than if they were shipped to ports inside the Gulf. How things will play out now the project has been thrown into turmoil remains to be seen, however Oman has just completed the preliminary design of its entire planned rail network, which aims to link the ports, economic, industrial and commercial areas and also areas with potential urban growth. Despite the construction of a new 680km road linking Oman to Saudi Arabia, inefficient and time-intensive road travel cannot compensate for the potential business lost to ports inside the Gulf, although for transport between Oman and Saudi Arabia benefits are expected. Oman’s rail network was always going to be challenging considering the size and geographic diversity of the country; in fact the $15bn, 2,444km project was one of the most challenging rail schemes in the region. To connect Oman’s major ports and cities, including Muscat, Sohar, Duqm and Salalah, Logistics News ME | August 2016 | 35
Country focus
Oman’s challenging terrain makes road and rail projects difficult to execute.
GDP contributors as of July 2016 Manufacturing and mining contribute for 6% Transport, storage and communication 6.8%
6.8 7 8
Public administration and defense 7%
6 5
Agriculture 1%
%
51
Oil and gas 51%
15.2
Wholesale and retail trade 8%
in addition to linking with the UAE’s Etihad Rail project and the wider GCC rail network, the Omani railway would pass through mountains and cross deserts. The project remains crucial if the Sultanate is to pursue its plans for a multimodal, integrated transport network and become a true regional gateway. Gopal R, global VP of the supply chain and logistics transformation practice at Frost and Sullivan says: “Oman’s logistics industry has the potential to be one of the key logistics centres in the region. The emphasis on domestic output is creating scope for substantial cargo volume growth to and from Oman and this can trigger enhanced connectivity and network, which would then lead to path of transforming the logistics industry to support trade for other countries as well.” Uniting the plans The Sultanate of Oman Logistics Strategy (SOLS) 2040 is headed by Oman’s Minister of Transport and Communications, Dr Ahmed bin Mohammed bin Salim alFutaisi, and unites the Sultanate’s ambitions through a public/private sector working group, comprising of a number of diverse stakeholders. Initiated by the Supreme Council of Planning (SCP) in 2013, the task force of ten Omani executives from the private sector, government and the academic world has been working together with 65 specialists from all relevant sectors, divided into different working groups to develop SOLS 2040. One of six objectives specified by the ministry is to achieve a high level of 36 | Logistics News ME | August 2016
Construction and electricity and water distribution for 5%
Other services 15.2%
regional and international competitiveness in the transport, logistics and communications sectors. It is under this strategy that Al Futaisi established the Oman Global Logistics Group. Announced last month, the government owned entity will invest in ports, free zones, railway, maritime and land transport companies, according to reports in The Times of Oman. The holding firm will be the government’s development arm and will play a key role in creating major growth opportunities to significantly raise the contribution of the logistics sector to the gross domestic product. Tenders issued under SOLS can be accessed via www.motc.gov.om and Etendering.tenderboard.gov.om “The aim is to synchronise investment and development objectives and therefore exploit the asset’s capabilities and potential in order to maximise the return on investment,” said a ministry release. FDI will play a key role in the strategy and with 70% corporate ownership available to foreign investors, Oman continues to attract a large amount of foreign investment. Investment and other paths to economic diversification are further supported by new tax laws, a Free Trade Agreement with the US, new privatisation laws and aims to create a more market friendly environment. Another key pillar in the attraction of new industry stakeholders is the country’s international recognition when it comes to its competitiveness as a business destination. Last month, the World Bank’s Logistics Performance Index ranked Oman 48th
globally, up 11 places on the previous Index. Similarly, in 2014, Oman had an LPI score of 3.0, which increased to 3.23 in 2016, reflecting major improvements in logistics quality, customs, logistics infrastructure and competence of the country. It was the best performance of any nation in the GCC, or even wider Middle East and it’s a pattern that has repeated for the last few years. Oman’s ranking in logistics quality and competence improved by 35 places to number 38 from 73 in 2014, while the country climbed 23 places in logistics infrastructure to number 34 from number 57 two years ago. The sultanate also saw major improvements in customs climbing from 74 in 2014 to 61 in the latest report, while for tracking and tracing it jumped to 57th place from 80th. Re-writing the landscape The evolution into a logistics-centric economy is well underway but far from
Country focus
The emphasis on domestic output is creating scope for substantial cargo volume growth to and from Oman and this can trigger enhanced connectivity and network, which would then lead to path of transforming the logistics industry to support trade for other countries as well
complete and a number of projects will require completion before Oman can consider its ambitions achieved. One of those projects is the integrated logistics hub in South Al Batinah Governorate; the first of its kind in the Sultanate. In March, the company’s acting CEO, Ahmed bin Said al Azkawi, said the South Al Batinah Logistics Area (SABLA) project – rebranded recently as ‘Khazaen’ – will spearhead the Sultanate’s ambitions to evolve into a logistics-centric economy. He was quoted as saying: “The project started out as a government initiative to support the development of Oman’s logistics infrastructure, to transform logistics into an economically viable sector, and attract investors in all aspects of logistics activities. “Our vision is to be the centre of the logistics industry in Oman and we intend to achieve this by creating a city meticulously designed with world class infrastructure that caters not only to the growth of logistics-linked activities but also
stimulates investment in indirect support elements, including industrial, commercial and residential.” Plans for the project were first announced some years ago. Covering an area of around 90 million square metres, the project will feature dedicated zones earmarked for multimodal connectivity, light industries, value adding activities, commercial services, warehousing and logistics, urban and residential developments, hotels and leisure areas. Preparation of the site is also underway for the establishment of Oman’s first ‘dry port’. The proposed inland port will serve as a mid-point for shipping containers and other freight plying between Muscat and Sohar Port. In Q1 Oman Logistics Company invited investors and developers to submit proposals or Expressions of Interest outlining their interest in either investing in the hub, or partnering with the company, in executing specific projects
Oman’s ports • • • • •
Salalah Qalhat Muscat Mina Qaboos Sohar
Outlook While the future is certainly bright, threats do exist in the form of inefficient logistics infrastructure, especially outside urban areas, and a shortage of skilled logistics labour as factors that could hold back the sector’s growth. Labur could prove particularly troublesome considering that a workforce of 80,000 will be required to fill the sector’s jobs by the end of this decade and the 24% unemployment rate in the country at present, mostly comprised of Omani nationals. Growth could be challenged by some major factors like surging competition mainly from the UAE and Saudi Arabia, according to predictions from Frost and Sullivan. Competition also exists in other countries with similar portfolio and investment scenarios for logistics service, the inefficient logistics infrastructure (especially, in sub-urban areas) limiting the potential cost and time efficiency of the logistics operations, and shortage of skilled labour relating to logistics services to support the growing requirements of the market. Andrew Long, CEO of HSBC Bank Oman told the Times of Oman in an interview: “The Sultanate’s measures to overcome the issues in the market are the right thing to do. The Omani government is making every effort to rethink how to spend, where to spend, when to spend money; they have cut back its budget, they are looking to funding sources. “We are still in economic difficulties, but still we are growing much faster than many countries. The government’s activities are the right thing which gave encouragement, but it doesn’t make easy to overcome the issues,” he continued, concluding: “The decision to invest in development of the infrastructure like ports, roads and airport are the correct one to develop the logistics industry. The infrastructures are placed and now they have to deliver.” Logistics News ME | August 2016 | 37
Country focus
Sohar Port’s new CEO Mark Geilenkirchen
So-har so good As investments in Oman’s flagship SOHAR Port top $25 billion, focus on developing a regional logistical hub is set to continue under new CEO Mark Geilenkirchen. Logistics News catches up with Mark and outgoing CEO Andre Toet
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ast month, SOHAR Port and Freezone CEO, Andre Toet, headed back to Europe after five years in the Sultanate to focus on the Chairmanship of essDOCS; a global enabler of paperless trade. His successor, Mark Geilenkirchen, picked up the baton and joined SOHAR as CEO from APM Terminals in Hong Kong, where he’s been working for two years as global client director, managing client portfolios at over 60 ports around the globe. 38 | Logistics News ME | August 2016
Mark, why did you take on a job in Oman? As a country, Oman is really focusing on developing itself as a global logistics hub and that fits well with my previous experience. I started as a business consultant in the Netherlands in the early 1990s, focusing on logistics and quality; I became a business school lecturer and helped to establish a specialised faculty for logistics; and later I worked internationally in the field, most recently in Hong Kong, where I
spent the last two years as global client director with APM Terminals managing client portfolios at over 60 ports around the globe. Today, SOHAR is one of the world’s fastest growing port and free zone developments and is really establishing itself as the region’s challenger brand; frankly, I am very keen to help write the next chapter of this amazing success story. SOHAR stands at the crossroads of Europe and Asia, both in terms of culture and business styles; since I have a great deal
Country focus
Mark Geilenkirchen, CEO, SOHAR Industrial Port Company
of experience from both regions, it seemed like the perfect assignment from my perspective. Mark, what’s your plan to get up to speed on the SOHAR business? For many weeks now, I’ve been working side-by-side with Andre and Jamal T. Aziz, our Freezone CEO, and the rest of the Port and Freezone management team. Before that, I spent time at Port of Rotterdam to fully understand their side of the business: their long-term global goals and how SOHAR integrates into the World Port Network. But above all, I’m just listening attentively to all our stakeholders: our staff, our tenants and terminal operators, our current and prospective investors and, of course, the Oman government — there’s a wealth of experience, knowledge and know-how embedded here in SOHAR.
Andre, what measures have been put in place to make the handover as smooth as possible? As you might imagine, this transition was planned a long time ago, and a great deal of preparation was done together behind the scenes to ensure that this handover was as seamless as possible. When it comes to sector experience Mark and I speak the same language, and we share the same international perspectives with a focus on Asia, so that’s made things much easier. We’re both firm believers in open communications at every level, from the board to the operational teams. Moreover, we’ve had the full support of our international, best-in-class terminal operators in the Port; the terminals have been with us since practically day one at SOHAR and we could not have achieved our success without them.
After receiving his Bachelor’s degree in Logistics from the Maritime Institute De Ruyters, in his native Vlissingen in the Netherlands, Mark set-up and managed HT Research from 1991-2001, an international business consultancy focusing on logistics and quality. In 2002, he returned to De Ruyters as a lecturer for nearly five years, where he established a specialised business faculty for logistics and established many working relationships with other leading universities across Europe and Asia. In 2006, Mark joined ABNAmro as Vice President and Regional Banking Director where he successfully led the company through the global financial crisis and one of the most turbulent periods in the bank’s history. During this time, Mark also acquired his Masters Degree in Retail Banking from the TiasNimbas School of Business in Tilburg. From 2010-2014, Mark was appointed CEO and Chief Commercial Officer of APM Terminals at the Port of Zeebrugge, in Belgium, where he was responsible for attracting Chinese investments and returning the loss-making port to profit. Mark joined SOHAR Port and Freezone as CEO in July 2016 from Hong Kong, where he had been working for two years as global client director with APM Terminals, managing client portfolios at over 60 ports around the globe. Mark is married, lives in Oman and has three children.
Mark, what experience do you bring to the role? I see myself as an entrepreneur, and I think that this is the right mind-set to manage a business that is now challenging the more established regional ports. These are uncertain economic times and that’s also something that I’m used to. I helped to navigate ABNAmro, the Dutch bank, through a very turbulent time in its history during the global financial crisis. Later, I helped to manage a financial Logistics News ME | August 2016 | 39
Country focus
turnaround at Port of Zeebrugge, a business that had been struggling, by attracting significant investments from China. And, of course, I have a lot of international experience in logistics, from consulting and teaching the theory of logistics at business school, to hands on global business experience, acquired in both Europe and Asia. Andre, how has the business developed since you started in 2011? The growth story of SOHAR, in terms of international investment and industrial diversification, has been phenomenal. When I started here five years ago, SOHAR was still seen as the Omani newcomer port, whereas today we’re establishing a significant regional hub that is very much on the map - and people all over the globe are sitting up and taking notice. We should not forget, we only had our first ship here in 2004 and now we have over 2,500 ships a year and a million tons of cargo a week, with investments in the Port and Freezone reaching $25 billion earlier this year. Mark, what’s the biggest challenge in succeeding Andre? To be frank, change management, like my role at ABNAmro or at Port of Zeebrugge, is often easier than inheriting a house that’s already firmly in order. The business here has seen continuous double-digit growth for ten years now and my role is to build on that. This means further development across our four major hubs — metals, logistics, petrochemicals and food — as well as supporting continued, dynamic growth in our container, liquid, dry-bulk and general cargo terminals. Mark, what is your focus for the next 12 months? It’s going to be all about continuity and building on our already successful longterm strategies. We’ll be looking to develop more synergies between our Port and Freezone businesses, and further developing the Freezone as a regional hub for innovation in the logistics sector. Then we’ll be talking with our neighbours in the hinterland, especially in Saudi Arabia, and across the water in Iran, to develop more business opportunities with them.
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Sohar Port
Andre, what do you think the future holds for SOHAR? As the GCC countries continue the rapid economic diversification, shifting their focus away from hydrocarbons, this will drive more non-oil, international investments into the region and SOHAR is ideally positioned to benefit from that. Also, as Iran reopens for international business there is phenomenal upside potential for Oman in general, and specifically for SOHAR. And Mark, how do you see the future? We are in exactly the right place at the right time: thanks to our prime location, as well as our excellent marine and landside connectivity, SOHAR is poised to become a very significant international logistical hub in the years to come.
Andre and Mark
Andre, what is your advice for Mark? My advice for Mark is very simple: stay calm, keep smiling and appreciate Omani culture, you will have a good time here.
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Vi e w p o i n t
Competing on the global stage Sam Achampong FCIPS, general manager of the Chartered Institute of Procurement and Supply for the MENA region examines the ability of the GCC to meet its economic ambitions to become a regional logistics hub
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merging global logistics hubs are characterised as places where cargo and people come together. Places that benefit from infrastructure investment, pro-trade policies, and direct connections to both manufacturing centres and growing populations. The GCC has all of these attributes in abundance and will undoubtedly exert its influence over the increasing globalisation of supply chains, further building on current achievements. On 27 November 2013 it was announced that Expo2020 would be held in Dubai, the first time the event will have been hosted in the MEASA (Middle East, Africa and South Asia) region. Since then there has been a particular focus on the region, and on the GCC area in particular. Whilst Expo2020 and the FIFA World Cup taking place in Qatar two years later, have demonstrated the regions’ ability and intent to host global events, it has also shed light on a formidable business hub that has been taking shape and gaining increasing influence and prominence. Dubai has allocated a total of AED31.7bn to build and develop its infrastructure and improve its logistics facilities in the run up to the Expo. The emirate already boasts a significant logistics infrastructure and is host to a number of economic free zones including Jebel Ali Freezone (JAFZA); the world’s largest. JAFZA is responsible for over 50% of Dubai’s total export with trade values exceeding $69bn. The Dubai International Airport – home to one of the world’s largest airlines, Emirates – 42 | Logistics News ME | August 2016
This demonstrates the significant impact that regional logistics is having in offsetting negative economic factors in the region is already the world’s busiest airport in terms of international traffic and the sixth largest cargo hub, handling 2.51 million tonnes of cargo in 2015. Abu Dhabi is busy constructing the world’s largest industrial zone, KIZAD (Khalifa Industrial Zone Abu Dhabi). With its strategic location and integral port, this
will undoubtedly make a significant contribution to the region’s manufacturing as well as logistics infrastructure. The UAE is not the only GCC country to boast impressive and significant credentials in logistics and related infrastructure. Qatar is investing billions of dollars in huge projects such as the recently completed Hamad International Airport as well as ports, railways and roads. Spending on transportation infrastructure will reach approximately $140bn in the lead-up to 2020. Saudi Arabia’s aspirations to expand its industrial sectors’ contribution to the economy from 10 to 20% by 2020 highlights further ambitions in the GCC to diversify regional economies from reliance on oil and natural gas and into the development of the region as a true global logistics hub with a strong manufacturing capability and world class infrastructure. The CIPS Risk Index, a tool which provides an informed perspective on risk in global supply chains, has recorded consecutive quarterly improvements in its recent regional risk scores for the MENA region. This is despite the instability caused by political unrest in the region as well as the continuing weak oil price. This demonstrates the significant impact that regional logistics is having in offsetting negative economic factors in the region as well as firmly establishing the GCC as a hub on a par with any other in the world, an ambition that is firmly embedded in the strategic plans for GCC countries leading up to 2020 and beyond.
BEYOND 2020:
Connecting Supply Chains, Creating the Future NOVEMBER 22 - 23, 2016 | SOFITEL DUBAI DOWNTOWN A premier event for Logistics & Supply Chain professionals, educators, Information Architects and Usability Practitioners. LogiSYM Dubai 2016 will bring together 300 international and local professionals from around the region.
REGISTER TODAY CONFERENCE HIGHLIGHTS: Meet these Speakers and 50+ more experts
MOHSEN AHMAD
ENG. MAHMOOD AL BASTAKI
ADIL AL ZAROONI
ABHISHEK SHAH
MICHAEL PROFFITT
ALAN WHITE
JOHN MANNERS-BELL
KUNAL GUPTA
MARK HEALD
SANJAY SETHI
SAIID SABER
BADER AL KALOOTI
CENTIN BAXTER
MARKUS KÖPSEL
KATHARINA ALBERT
MOHAMMED SHAHEEN
KEN LYON
KIM WINTER
JAMIE MAJID
DARRYL JUDD
Here are some of the Key Sessions Exploring Future Directions for Global Supply Chains
Emerging Markets - The New Hubs of Innovation
Last Mile: The New Frontier in the E-Commerce Supply Chain
Disruptive Technology. Supply Chain Execellence in the Digital Age
Changing Business Landscapes in Middle East Supply Chains: Is Globalisation Dead?
Logistics Challenges and Transformational Leadership in a Middle East Integrated World
The Logistics Property Play: Why Logistics Property Assets are in Hot Demand in the Middle East at Present and What Happens Next
Excellence to Reduce Wastage Within the Cold Chain and Transportation Networks
CONFERENCE SPONSORS AND PARTNERS:
R S A
L O G I S T I C S
Global Freight Forwarding 2016
The 2016 edition of Ti’s Global Freight Forwarding report contains market sizing and JOINTLY ORGANISED BY:
forecasting data, profiles of the 15 largest freight forwarders, as well as trade lane analysis and an examination of the technology supporting and disrupting the industry.
www.logisym.com/events/logisym-dubai-2016
44 | Logistics News ME | August 2016
Vi e w p o i n t
Passion + production = Performance By Prakash PK Menon
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hat makes a business, an art or an endeavor great? Hint: It is not money, resources or opportunities. The answer is passion and production. If you have the passion and zeal to do something, you can accomplish it with fewer resources and in a low budget. Passion is one of those intangible elements that drives people, gets them through tough times, and ultimately dictates success. You are likely to see the most astounding results when you work towards your passion. Your passion gets noticed in a world full of sleepwalkers. Everyone from prospective employees to prospective investors to prospective customers can be impressed and most are willing to bet on you. The passion can make the difference between making a living and making a killing. Who doesn’t know Bill Gates, the founder of Microsoft? But, do you know he was passionate about computers, even when he was in school? He would miss classes to design video games. Not only Bill Gates, every successful entrepreneur that you hear about today has achieved thier feat because they were passionate about it. Yes, that’s passion…when the entire world doesn’t matter, but the object of your focus does. No wonder, most wise people would advise you to ‘follow your passion’! However, this advice of ‘follow your passion’ often turns out to be a dud. Yes, really! Because passions alone aren’t worth a dime. How many ‘passionate writers’ you know who haven’t written their first book yet? ‘Passionate painters’ who have never painted their much touted masterpiece, and ‘passionate individuals’ who want
Art is not art till the time it is produced and displayed before those who are able to appreciate it. to change the world with their revolutionary idea, but even years later that idea is still an ‘idea’ in their head? The world is full of such people, and there is a reason the artist starving in the attic is a stereotype. Right from business to art, these guys make the majority. It isn’t that they lack passion. No, no they are full of passion and raring to go. But, somehow they never start. Their passion fizzles out just when they are required to act on it. So, passion alone doesn’t take you places. To succeed one needs another ingredient, the often missing “production”. “Create a prototype” is something that angel investors have gone hoarse crying about to the ‘visionary artistic founders’ who seek million dollar funding just for a PowerPoint presentation that they created of a fancy business idea they believe would fetch them billions. Laughable, right? But most people don’t even have a PowerPoint presentation, let alone a prototype. They have the alleged passion, but no concrete production. And thus, we never hear their success stories. No wonder, 90% of startups fail. It’s not because their founders didn’t have any
passion. No, sir, they had it, probably too much. However, they could not fuel that passion with the necessary performance. The cure is a little action. That’s where people like Richard Branson stand out. An impulsive, intuitive and calculating business person who can be argued as one of the most successful of his generation. The burning passion must be matched with concrete action to blast through the ranks of mediocre “wannabes” who would do it “someday” (and that someday, sadly, never arrives). Branson has been quoted as saying: “There is no greater thing you can do with your life and your work than follow your passions – in a way that serves the world and you.” But on the other hand the charismatic Brit has also been quoted as saying “Screw it. Let’s just do it…!” And that can be the most practical advice for these lost souls. Don’t just follow your passions, follow your effort too. Art is not art till the time it is produced and displayed before those who are able to appreciate it. There was once a man, almost a mad artist, who was finicky about using tiny and beautiful screws in his little fancy electronic machines, something that his customers would never see. But, that didn’t bother him. He had the passion, you see, to make things as perfect as humanly possible. He said something that should be the motto of all the visionary artistic entrepreneurs who want to move from passion to production: “Great artists ship.” And, yes the mad artist was none other than Steve Jobs himself. Logistics News ME | August 2016 | 45
Supplier news
SUPPLIER NEWS
First Saudi-built Renault Truck hits the road
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he new era of Renault Trucks in Saudi Arabia began last month with the first C & K range models rolling out of the newly built state-of-the-art assembly facility of Arabian Vehicles & Trucks Industry Co. Ltd. (AVI), based in King Abdullah Economic City, Saudi Arabia. A milestone for AVI and for the French truck manufacturer, the first Saudi-built Renault Trucks have been assembled through the collaboration of a number of Renault-trained technicians, engineers, quality and
46 | Logistics News ME | August 2016
logistics personnel from Bourg-enbresse, and a highly trained local AVI team . Lars-Erik Forsbergh, Renault Trucks ME president said: “Through the support of our local importer Zahid Tractor and AVI we hope to continue to service the demanding construction, infrastructure and transport sectors in the region and set new standards in the region’s trucking industry. “We are delighted to see the first of many Saudi-built Renault Trucks roll off our assembly line. Although the facility layout derives from our group’s
lean manufacturing production system, this milestone could not have been achieved without the efforts of our highly-trained Saudi workforce.” Arabian Vehicles & Trucks Industry Ltd (AVI), is a joint venture between Zahid Tractor & H eavy Machinery Co. Ltd and Volvo Trucks Corporation, which owns Renault Trucks. Implementing a new concept for an efficient and cost-effective truck assembly, the AVI facility is one of the first in the world to produce both Volvo and Renault trucks on the same assembly line.
Supplier news
Honeywell launches Rockwell announces RSA-TALKE and Best Future Dow sign supply smart integrator Machine prize chain contract
Honeywell has announced a new release of its leading building management system, Enterprise Buildings Integrator (EBI) to support the Middle East’s smart building and smart cities ambitions. EBI R500 leverages the connectivity of today’s buildings to help make them more strategic assets that are green, safe and productive. The new features help facility managers better streamline management and decision-making, promoting improved business efficiencies and providing greater control over operations. EBI R500 improves the region’s facility managers’ ability to turn building data into actionable insights to deliver real outcomes in real time. Honeywell EBI facilitates the integration of systems relating to security, comfort, life safety and energy control, among other functions. It gives users a single point of access and consistent view of information and resources through a seamless “Integration of Things” that enhances a user’s ability to monitor, manage and protect a facility, campus or multi-site operation. In addition, EBI communicates with industry-leading open protocols like BACNet®, OPC®and LonWorks®. More than 25,000 EBI systems have been deployed in more than 160 countries over the last decade.
New features include: • Increased data point capacity • Enhanced IT Compliance • Cloud and Mobile Connectivity
Rockwell Automation has revealed details of the jury and prize for its new global ‘Best Future Machine Award’. Machines and solutions that enter the award – set up to recognise and reward engineering innovation and machine design at interpack 2017 – will come under the scrutiny of representatives from four leading international end users and three major trade associations. Nominations for the ‘Best Future Machine Award’ need to be submitted by 31st October 2016. The finalists will be shortlisted by the end of December 2016 after which the panel will judge the winners in each of the categories before deciding on an overall winner. The winner will be announced on the 4th May 2017 at the public award ceremony at the Rockwell Automation booth at interpack 2017. The prize will be free flights and hotel accommodation to the Automation Fair event, 15-16 November 2017 at the George R. Brown Convention Center in Houston, Texas, USA. While at Automation Fair, Rockwell Automation will give the winner opportunities to meet senior management teams and key industry personnel from the USA.
The representing end users will be: • Johnson & Johnson • Procter & Gamble • Kimberly Clark • Nestlé • UCIMA (Italian Packaging Machinery Manufacturers’ Association) • GEPPIA – The French food industry equipment manufacturers association • PMMI – The Association for Packaging and Processing Technologies
An affiliate of The Dow Chemical Company and RSA-TALKE have signed contracts for the storage of chemical products that will be manufactured by Dow from various production sites globally. With this joint venture for chemical logistics RSA-TALKE will receive and store Dow products in its specialised chemical warehouses at the Aerotropolis, Dubai South. The complex has been designed to store chemicals and petrochemicals to the highest international standards. The company – a joint venture of Dubai-based RSA Logistics and the German TALKE Group – caters to the demand of customers from the chemical and petrochemical industries in the Gulf region. “The signing of this significant agreement with Dow has again confirmed the interest of our customers in our strategy of providing a full service portfolio for chemical logistics in Dubai,” explains Richard Heath, director Middle East and USA at TALKE and director at RSA-TALKE. “We have worked hard in the past couple of years to create top quality facilities based on the highest international standards and the journey continues with the very recent opening of our integrated chemicals hub in Jebel Ali free zone,” says Abhishek Ajay Shah, MD at RSA Logistics and director at RSA-TALKE.
Supplier news
Momentum Logistics names new MD 3PL provider Momentum Logistics has appointed Tom Nauwelaerts as its new managing director. With over 25 years of experience in supply chain management across various markets including the UAE, the UK and Belgium, Nauwelaerts will be responsible for steering the expansion of Momentum Logistics in the 3PL industry. In line with Momentum’s strategy to diversify its business offering, the company aims to develop a distinct identity as one of the premier logistics services providers in existing and new high-potential markets. Commenting on the appointment, Flemming Dalgaard, CEO of Gulftainer, said: “Momentum Logistics has come a long way since its launch in 2008. We have identified various growth paths for the division, which has great potential to cater to the growing supply chain hubs within the Middle East and beyond. As a seasoned logistics professional, Tom Nauwelaerts will bring much-needed focus to enhancing Momentum’s activities, which have so far been limited to complementing our port management services. We are confident that with his wide-ranging experience and connections in the industry, he will succeed in taking the company to the next level.” Momentum is a wholly owned subsidiary of Gulftainer, the world’s largest privately owned independent port operator, based in the UAE. Discussing his new role, Nauwelaerts said: “This is an exciting time to be heading a logistics function in the Middle East. As the region opens up its industries and diversifies away from fuel, we anticipate a growing need for interconnectedness, convenience and streamlining of business operations. With the help of the employees at a people-driven enterprise such as Momentum, we strive to provide a tangible solution that meets all these needs. As managing director, I look forward to taking our services to new benchmarks of excellence and finding innovative ways to tackle any challenges we may face.” Prior to joining Momentum Logistics, Nauwelaerts worked for YBA Kanoo as the head of their logistics division. With over eight years of experience in the Middle East, he had also held the position of managing director at Al-Futtaim Logistics. Previously, he had served as group CEO of WWL-ALS Freight Management Group in the UK and as General Manager Logistics for Ahlers Logistics and Maritime Services, headquartered in Belgium. During these tenures, he oversaw specialized logistics services, such as project cargo, chartering, and retail and automotive logistics solutions for fast-growth markets in the CIS, Asia and Africa.
Agility enters JV with South African firm Super Group Agility has announced that it has formed a joint venture in South Africa with Super Group, a Johannesburg-based supply chain management and transportation specialist, after acquiring a minority stake in Super Group’s freight forwarding unit. SG Agility Proprietary Ltd. will be led by Henk Theron, formerly CEO of Micor, Super Group’s freight forwarding business. Super Group, listed on the Johannesburg Securities Exchange, is a leader in South Africa’s supply chain and contract logistics market. Super Group’s Micor unit has been a global strategic partner for Agility since 2005. The new venture, SG Agility, will offer local and multinational customers a range of logistics and supply chain solutions, including air freight, ocean freight, road freight, customs clearance, warehousing, and distribution. SG Agility will have more than 150 employees. Its head office is Johannesburg; branch offices are located in Port Elizabeth, Durban and Cape Town. Elias Monem, Agility’s CEO of the MEA region, said: “South Africa is vital to our strategic growth and expansion in Africa. It has well-developed financial, legal, communications and transport sectors, along with an open trade policy and a comparatively strong domestic market. The joint venture with Super Group is a sign of our commitment to both South Africa and the continent.”
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Di a r y
The month ahead
Logistics News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the industry
TruckX Expo
2 August Johannesburg, South Africa
TruckX Expo is a 1 day event being held on 2 nd August 2016 at the Sandton Convention Centre in Johannesburg, South Africa. This event showcases product from Building Construction, Business Services, Logistics and Transportation industries
Transport & Logistics Philippines
18 – 19 August SMX Convention Centre Philippines
Transport & Logistics Philippines is a 2 day event being held from 18 th August to the 19 th August 2016 at the SMX Convention Center in Pasay, Philippines. This event showcases products like Delivery Vehicles, Trucks, Transport System, Materials Handling and Logistics & Supply Chain Equipment, Technology and Service etc. in the Logistics & Transportation industry
International Fair of Packaging, Packing Techniques and Logistics
20 – 2 August Gornja Radgona, Slovenia
International Fair of Packaging, Packing Techniques and Logistics is a six day event being held from 20 th August to the 25 th August 2016 at the Pomurski Sejem in Gornja Radgona, Slovenia. This event showcases products like will offer different types of packaging materials and technology for its manufacture, packaging and labeling, storage equipment, logistics and management of packaging waste etc. in the Logistics & Transportation, Packaging Materials industries.
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International Conference on Food Chemistry and Hydrocolloids
11 – 12 August Toronto, Canada
This Conference will bring together practitioners, industrialists,researchers and educators from around the world who are engaged in the fields of indigenous food products, food safety, functional foods, bioactive ingredients, nutritional factors, traditional and alternative medicine, dietary management . The Conference will highlight significant developments in research and innovations in agricultural, food, nutritional, pharmaceutical and medical technologies, with an emphasis on health and wellness. The Conference will feature a series of presentations and discussions in plenary, concurrent and poster sessions, informal gatherings, and exhibitions.
Tilog Logistics 2016
21 – 23 September, 2016 Bangkok
Each ASEAN+6 country’s logistics has its own strengths and advantages. Combining the power of logistics innovations and know-how from them all together in one place will create an immensely powerful platform for all participants to benefit from. TILOG-LOGISTIX 2016 will be that platform of the industry where the logistics community will come together to share the latest services and solutions, case studies on the post -AEC effects, best practices, and more. New business partnerships will be forges, and opportunities will be capitalized on. Come reveal the next chapter of logistics excellence together at TILOG-LOGISTIX 2016.
Innovation in design Power in motion The 1843T Tractor, hitting the road with full power.
Powered by a groundbreaking 430PS Ecotorq engine that yields impressive torque values, the Ford Trucks 1843T Tractor is made for any road and any load. Stop by your authorised dealer today to experience its sheer power. www.fordtrucks.com.tr
Ford Trucks Sharing the load
Bahrain –– Manama / venugopal.nair@almoayyed.com.bh Bahrain––Almoayyed AlmoayyedMotors Motors Manama / venugopal.nair@almoayyed.com.bh Iraq––Al AlKasid KasidCommercial Commercial Agencies Ltd - Erbil, Baghdad / ahmed.ali@al-kasid.ae Iraq Agencies Ltd Erbil & Baghdad / ahmed.ali@al-kasid.ae Jordan––The TheCommercial Commercial Industrial Company - Amman / w.albajjali@cic.com.jo Jordan && Industrial Company - Amman / w.albajjali@cic.com.jo Oman––Mohsin MohsinHaider Haider Darwish LLC - Muscat / bhaskar@mhd.co.om Oman Darwish LLC / Muscat -bhaskar@mhd.co.om Qatar––Almana AlmanaMotors Motors Company W.L.L – Doha / oghobrial.aa@almanagroup.com Qatar Company W.L.L – Doha / oghobrial.aa@almanagroup.com Saudi Arabia – Al Jazirah Vehicles Agencies Co Ltd – Riyadh, Dammam, Jeddah / smomea@aljazirahford.com Saudi Arabia – Al Jazirah Vehicles Agencies Co Ltd – Riyadh, Dammam, Jeddah / smomea@aljazirahford.com United Arab Emirates – Al Tayer Motors – Dubai / razmy@altayer-motors.com United Arab Emirates – Al Tayer Motors – Dubai / razmy@altayer-motors.com United Arab Emirates – Premier Motors – Abu Dhabi / homohamed@altayer-motors.com United Arab Emirates – Premier Motors – Abu Dhabi / homohamed@altayer-motors.com