Logistics News ME - December 2017

ADIPEC

V e h ic l e s

Trends

Highlights from the most influential oil and gas event

Ford Trucks expands reach in Kuwait

FarEye’s take on upcoming trends in the Middle East

Connecting trade professionals with industry intelligence

Top Ceos The region’s top logistics CEOs come together in one power-packed issue

December 2017

TRUCKS

Top

Start 8 | News 18 | Op-ed FarEye’s insight on the upcoming logistics trends in the region

Features 22 | CEO Powerlist The 2017 rundown of top logistics leaders from the Middle East 52 | ADIPEC 2017 Highlights from the region’s biggest oil and gas event

Ceos

56 | Vehicles Ford Trucks expands its base in Kuwait

58 | Viewpoint An analysis of how speed impacts supply chain

18

52

60 | Supplier News 62 | Diary

56

58 Logistics News ME | December 2017 | 3

www.cbnme.com

CEO Wissam Younane wissam@bncpublishing.net

Editor’s Note

I

n early 2017, South Korean integrated logistics and container transport company, Hanjin Shipping, was declared bankrupt. It was one of the world’s top 10 container carriers in terms of capacity. A significant blow to the global container shipping market, surely got everyone thinking about the rest of the year. The market saw some level of global carrier consolidation such as the 2M Alliance and Ocean Three Alliance, which provided the much-needed stabilisation to the market.

On another note, reports suggest that the global logistics market will grow steadily during the forecast period and post a compound annual growth rate of around 7% by 2021. Favourable government trade policies have resulted in an increased demand for logistics services to keep pace with the increased logistics needs of importers and exporters which provides opportunity for expansion to the existing vendors. The relaxed trade agreements aid in trade by reducing tariffs and simplifying customs procedures consequently reducing the transit times and efficiency of business operations. The trade agreements focus on reducing trade tariffs, removing complicated regulatory barriers, and increasing the investment environment of both parties in the agreement.

Coming back to the region, the Middle East and North Africa (MENA) has always remained a strategic hub for the international trade and commerce

community. Transportation and logistics investments have become the cornerstone for the sector’s future growth.

Keeping all this in mind, our final issue of 2017 brought together a powerful list of CEOs from across the region, acknowledging their contributions to the regional logistics and transportation industry.

Flip the pages and you will be in for some surprise entries!

As more and more logistics verticals like e-commerce, hospitality, and FMCG to name a few, gain prominence, technology will be play a key role that will meet the demands of the end-users.

Overall, the idea is to look in an upward trajectory and expect the best out of the coming year.

Director Rabih Najm rabih@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706

Sales Manager Lionel Matthews lionel@bncpublishing.net

Group Commercial Director Fred Dubery fred@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Editor Paromita Dey paromita@bncpublishing.net Reporter Mehak Srivastava mehak@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net

Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey

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On the web Keep up to date with all the latest news, features and much more on our website.

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                                                                  

         

Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017

Re g i on a l N e w s

Regional News An update from around the region

For News, features and more, Visit www.CBNme.com/logistics-news Follow us on twitter for breaking news: @logisticsnewsme Follow us on Facebook for up-to-the-minute breaking news

Partnership

DP World, Suez Canal Authority partner to build integrated zone

T

he Suez Canal Authority and DP World announced a partnership agreement to develop an integrated industrial and residential zone at Sokhna in Egypt.

The signing took place at a ceremony in Sharm el-Sheikh at the World Youth Forum, where Admiral Mohab Mamish, chairman of the Suez Canal Authority and chairman of the Suez Canal Economic Zone (SCZone), and Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, signed the agreement in the presence of Sherif Ismail, the Prime Minister of Egypt. This will establish a joint venture between SCZone (51%) and DP World (49%), with DP World managing the zone, projected to start in the first quarter of 2018.

In line with the Egyptian government’s plans to develop the Suez Canal Corridor and the new administrative capital, the development will aim to create a sustainable industrial zone to attract foreign investment. It will feature a range of investment incentives and encourage innovation using best international practices in the management of special economic zones (SEZs), free zones, ports, and logistic hubs based on DP World’s 8 | Logistics News ME | December 2017

global experience. The project will also promote the development of small and medium-sized enterprises (SMEs), create job opportunities, and provide training for young Egyptians adding value to the economy.

Bin Sulayem said the support of HE Abdel Fattah el-Sisi, President of Egypt, and the role of the Egyptian government in removing barriers to investment were key factors in the future success of the project. He underlined DP World’s commitment to support the government’s vision and the UAE’s wise leadership to encourage more investment in the country and to work on mutual development projects for the benefit of both nations which would further strengthen their relationship.

Bin Sulayem said: “This partnership demonstrates the commitment of DP World to support the growth of Egypt’s economy and reflects the trust we place in the determination of the government to make the project a success. The development of the zone will support the sustainable growth of the country and help it attract more business investment.

It will also help transform the Suez Canal

into a major trade and business hub in the region, given its strategic location and role as an artery for global trade.

“We look forward to working with the SCZone through this joint venture to develop the project using our international expertise and know-how of trade and logistics across six continents, to add value to the Egyptian economy and leave a legacy for future generations.”

Admiral Mamish said: “This signing builds on the historic relations between Egypt and the UAE and is aligned with the vision of President Sisi for the development of trade in the region.

The project includes a comprehensive economic zone in Sokhna, including an industrial free zone and a number of development projects that will boost the national economy and create jobs for Egyptian youth. Today’s signing concludes months of work of the joint committee that has been working closely with the leadership of both countries and consultants to make this happen. This is an important step in Egypt’s industrial and economic growth journey, while taking advantage of the strategic location of the Suez Canal.” www.cbnme.com

Agreement

Hutchison to operate, develop Saqr Port container terminal The government of Ras Al Khaimah (RAK) signed a 25-year concession agreement with Hutchison Ports, under which Hutchison will operate and develop the Saqr Port container terminal facilities.

A celebratory ceremony was held on November 6, in the presence of Sheikh Saud bin Saqr Al Qasimi, member of the Supreme Council and Ruler of Ras Al Khaimah.

In his address, Sheikh Saud said: “One of our objectives in Ras Al Khaimah is to create a business infrastructure that will attract investors and entrepreneurs from around the world. Hutchison Ports RAK and its plans for future development of the Saqr Port facilities are a key piece in our logistics strategy, which will encourage those with interest to make the commitment to Ras Al Khaimah. This partnership is one more indicator that Ras Al Khaimah is committed to offering the infrastructure, services, and skilled workforce that allows commerce and industry to thrive in the emirate.”

The terminal will be operated by Hutchison Ports RAK, and comprises of a four-berth, 350,000 twenty equivalent units (TEU) facility featuring an 800m long quay with a depth of 12m, in addition to a 20ha yard.

Eric Ip, managing director of Hutchison Ports, said: “We are excited to have the opportunity to invest and operate a container terminal facility that

is situated in a gateway location and is home to the world’s largest ceramics manufacturer. Ras Al Khaimah has a strong export base, with many fine shippers of ceramics, pharmaceuticals, glass, cement, crushed rock, and other products. These companies can now take advantage of a less congested and more sustainable multimodal shipping route to Jebel Ali and beyond. Meanwhile, by frequenting Hutchison Ports RAK, local hauliers will have a shorter delivery route that allows them to make more trips every day.”

The Hutchison Ports RAK terminal neighbours the RAK Maritime City Free Zone, and is well positioned with respect to the industrial areas and free zones at Al Hamra and Al Ghail.

Saqr Port is Ras Al Khaimah’s primary commercial port and is in the process of having its overall capacity significantly increased. In a two-phase project scheduled to be completed in April 2019, two deep water berths are being added capable of handling capesize vessels. The project will make Saqr Port one of the largest bulk handing ports in the world.

Bitesize news

Emirates unveiled a special tribute to the late HH Sheikh Zayed bin Sultan Al Nahyan, the founding father of the UAE, ahead of ‘Year of Zayed’ 2018, with its 100th A380 carrying one of his most memorable images.

Abu Dhabi Ports signed a memorandum of understanding (MOU) with Abu Dhabi Airports for the provision of airport check-in counters at Abu Dhabi Cruise Terminal, a first in the region.

Etihad Airways will shut down the Dallas-Fort Worth route in 2018, after American Airlines’ decided in July this year to end a codeshare agreement between the two carriers.

The RAK Ports Marine Training Institute delivered its first Oil Spill Response course, which was developed to the International Maritime Organisation (IMO) standard.

Logistics News ME | December 2017 | 9

Re g i o n a l N ew s

Event

Key industry trends to be discussed at Breakbulk Middle East 2018 The third annual Breakbulk Middle East 2018 was officially announced following a press conference, attended by officials from the government and private sector.

Breakbulk Middle East is the only exhibition and conference in the region specifically for the project cargo and breakbulk industry.

The conference will be held at the Abu Dhabi National Exhibition Centre, February 6-7, 2018.

Dr Abdullah Al Katheeri, director general of the Federal Transport Authority, was joined by senior representatives from Abu Dhabi Ports and Instar Projects to discuss how regional organisations can capitalise on the current industry landscape.

More than 100 exhibitors, representing the end-to- end value chain for the transport of oversize cargo, will be present at Breakbulk Middle East 2018. The event offers a full conference schedule where key industry members can share their knowledge and experience, including leaders from Fluor, Petrofac, Saudi Aramco, and Technip.

Commenting on the announcement, Dr Abdullah said: “We are delighted to see the region’s foremost experts in the sector come together for the third annual Breakbulk Middle East. The leading shippers, carriers, freight forwarders, transport specialists, and related service providers will discuss the current industry landscape and innovative ways we can strengthen the value chain.

We look forward to another successful event this year.”

Kim Larsons, VP commercial

From L-R: Sivakumar Hariharan (Instar Projects); Ben Blamire (Breakbulk Middle East); Dr Abdullah Al Katheeri (Federal Transport Authority); Kim Larsons (Abu Dhabi Ports)]

and business developmentAbu Dhabi Ports, remarked: “We have participated in the event in the previous two years as well, and for us it is important to continue to be part of such events that involve building business. We know that when we participate in these events, there’s so much to gain, both financially and even on the international front.”

Ben Blamire, commercial Director at Breakbulk Middle East said: “Following the success of the inaugural Breakbulk Middle East event, we are thrilled to announce that Breakbulk will be returning to the region for

10 | Logistics News ME | December 2017

the third time. This year’s conference and exhibition will see even more of the world’s largest EPCs, logisticians, and transport providers come together in Abu Dhabi.”

During the press conference, key sponsors provided their expert insight and analysis on the trends to be discussed at the Breakbulk Middle East conference.

With a vision to succeed as a global trade hub, Abu Dhabi was chosen as the ideal destination for the event for the third consecutive year, welcoming international visitors, businesses, and investors to the Middle East

to discuss the key challenges and opportunities found in the breakbulk and project logistics sectors in the region. Breakbulk Middle East 2018 will welcome 60 exhibitors, 80 speakers, and 3,000 delegates, main conference, special sessions in the exhibition hall, and educational courses. This year’s sponsors include Abu Dhabi Ports, King Abdullah Port, DP World, Agility, Bahri, Instar, Port of Salalah, Ceekay Shipping, Freightcare, Höegh Autoliners, NTC Logistics, Babaji Shivram, KDL Logistics, Sarjak Container Lines, and Fayamonville. www.cbnme.com

Re g i on a l N e w s

partnership

Dubai Police, MAN, RoadSafetyUAE call for safer UAE roads

Aimed at emphasising the role of heavy vehicles in ensuring safety on UAE roads, Dubai Police, in partnership with MAN Truck & Bus Middle East, and RoadSafetyUAE, hosted an event for fleet owners and other stakeholders of the public and private sectors, showcasing various road safety initiatives and solutions to reduce heavy commercial traffic incidents in the country.

The event explored ways to boost road safety, in line with the targets outlined in ‘UAE Vision 2021’, which aim to reduce road traffic fatalities from about 6 per 100,000 residents in 2016, to 3 per 100,000 by 2021.

Citing dangerous road habits of drivers and the need to constantly educate and train them, a representative from Dubai Police said: “Our various campaigns and initiatives in partnership with industry stakeholders in the past have resulted in a significant drop in the number of accidents involving heavy vehicles over the years. To ensure road safety for all, it is critical to engage with truck drivers, the owners, and fleet operators as well. Such workshops play an important role in achieving the targets, and I express our sincere gratitude to MAN Truck & Bus Middle East and RoadSafetyUAE for their strong commitment to making the country’s roads safer.”

The event highlighted the ongoing efforts by MAN to increase road safety, both by building safety into its trucks and fostering a culture of safe driving.

Franz von Redwitz, managing director, MAN Truck & Bus Middle East, said: “We are pleased to partner with Dubai Police to further enhance road safety awareness among various stakeholders of the commercial vehicles industry in the UAE. The importance of stricter enforcement of laws and continuous education and training is paramount, but it is also critical to equip commercial vehicles with new technologies to ensure complete and absolute safety on the roads in the country.”

Participants gained insights into how proper safety measures, best tyre and load practices, technology-driven solutions, and driver training support 12 | Logistics News ME | December 2017

programs can lead to a significant drop in road incidents.

Redwitz added: “Adopting best practices in vehicle safety not only helps in driving down the number of traffic incidents and enhancing road safety but also results in reducing fuel consumption and optimising loads, thereby maximising the economy of the fleet operating companies. As the leading provider of commercial vehicles and buses, we remain dedicated to introducing efficient and safety solutions for our loyal customers in this region.”

Thomas Edelmann, managing director of RoadSafetyUAE, stated: “MAN is setting a great example as a pro-active thought-leader in the commercial vehicle industry by committing resources to arrange such an impact-strong event, which educates the involved stakeholders and also provides a great networking platform to connect delegates and to foster new ideas of how to tackle road safety.”

Taking the event to a new level, the

senior representatives from MAN presented an interactive ‘Truck Safety Walk-Around’, which examined various factors leading to fatal accidents.

MAN representatives encouraged fleet owners to establish a framework in their companies for continuous education for drivers. They introduced the MAN ProfiDrive program, which improves driver knowledge and skills and promotes rational driving behavior to make every day driving safer and more economic. They also demonstrated a number of technological solutions developed by MAN, such as the Electronic Stability Program (ESP), Anti-Spin Regulator (ASR), Constant Damping Control (CDC), and MAN TeleMatics, an intelligent technology solution that provides drivers and fleet managers with essential data to optimise vehicle usage and plan services well in advance, and comprising a MAN Tachograph which automatically records the vehicle’s speed, distance travelled, and time spent on the road, helping keep tired drivers off the roads. www.cbnme.com

Oman Drydock, Singapore shipyard sign partnership deal The Port of Amsterdam, STC-Group Holding, and Iskes Towage and Salvage, have signed a memorandum of understanding (MoU) in Amsterdam with the Port of Fujairah (PoF), one of the largest oil storage and bunkering hubs in the world.

The agreement focuses on further strategic cooperation, according to a statement by the Amsterdam Port Authority, said a report by Wam news agency. The signing of the MoU was attended by Sheikh Saleh bin Mohammed bin Hamad Al Sharqi, chairman of the Port of Fujairah.

As part of Amsterdam Port Consultants (APC), a port advisory foundation consisting of partners with strong ties to Amsterdam, Port of Amsterdam, STC-Group, and Iskes executed an assessment of the current marine operations in the Port of Fujairah in 2015. Recommendations made have

subsequently been implemented while Iskes and STC-Group set up training programmes for PoF employees. With the conclusion of the implementation track, all parties expressed a desire to continue the fruitful cooperation, said the official statement.

The Port of Amsterdam is the largest gasoline hub in Northwestern Europe, while the Port of Fujairah is the secondlargest oil bunkering port in the world.

The oil products market is a field for direct mutual added value, but both

ports have ambitions beyond this specific cargo.

Capt Mousa Murad, general manager of the Port of Fujairah, said: “The Port of Fujairah has grown rapidly over the years. We are very proud of all that we have accomplished, but also recognise that the support of partners is instrumental in maintaining and expanding our position.”

Koen Overtoom, CEO of the Port of Amsterdam, added: “We are a true port of partnerships. We look for strong long-term relations with organisations like STC-Group, Iskes, and with other ports. With Port of Fujairah, we have found a partner that plays a large role in a supply chain that is both very important to the port of Amsterdam and one that is subject to rapid developments. We look forward to the continuation of this strategic partnership and the benefits it will bring to both sides.”

Revenue

Aramex sees AED81.6mn net profit for Q3 2017 Aramex posted a net profit of AED81.6mn for the third quarter of the year, up 13% from AED72.2mn in Q3 2016.

Revenues in the third quarter were also reported to have increased to AED1.144bn, up by 9% compared to last year’s AED1.05bn in Q3 2016. Excluding global currency fluctuations, especially the Egyptian pound, Q3 2017 revenues would have registered double-digit growth of 11%, according to the company statement.

Hussein Hachem, CEO of Aramex, said: “We are pleased to report strong results in Q3 with healthy growth rates in revenues and net profits. All our geographies and business segments performed very well in the last three months. We also continued to witness strong cross-border e-commerce growth across key markets, especially in Asia and Asia-Pacific.”

Aramex’s international and domestic express services continue to drive the company’s positive financial performance. In addition, freight services saw a rebound in Q3 2017 with expectations for this trend to continue for the rest of the year.

Hachem added: “Moving forward, we

will continue to focus on growing our e-commerce proposition and expand global operations through strategic partnerships with innovative logistics and technology companies. Our most

recent financial results and strong growth levels are a testament to this approach. We remain committed to keeping the momentum as we move forward for the remainder of 2017.”

Logistics News ME | December 2017 | 13

Re g i on a l N e w s

FedEx Express displays solutions at Dubai Airshow 2017 FedEx Express, a subsidiary of FedEx, and one of the world’s largest express transportation companies, demonstrated its industry expertise at the Dubai Airshow 2017. As the official courier sponsor of the event, FedEx showcased two of its leading product offerings—Aerospace Solutions and SenseAware.

Taarek Hinedi, vice president of FedEx Express Middle East Operations, said: “We’re here to connect with our customers, and to introduce our solutions such as the SenseAware, which our clients from the aviation sector can take advantage of. In addition, we also have the FedEx Aerospace Solutions.”

FedEx Aerospace Solutions is a comprehensive portfolio of customisable services targeted specifically for the aviation industry, encompassing a wide range of services—from shipping a critical part overnight to get a grounded plane flying again, to coordinating the arrival of shipments at overhaul facilities and more. SenseAware, on the other hand, is a multisensor device that provides the possibility to transform supply chains, inventory management, compliance programs, and shipment security.

Hinedi explained: “SenseAware is a device that can monitor everything with regards to a shipment: the movement, the location of the shipment at any given point of time, and so on. Customers can choose whether they want to receive shipment details on a minute-to-minute basis, or an hourly or six-hourly basis. They can also check the temperatures within the shipments, whether any boxes were opened during transport, shock levels, and even barometric pressure.

There’s a lot of technology in this magnificent little box, that our customers can use to their advantage.”

SenseAware devices are designed to suspend transmission of data during flight, although they continue to monitor and store data. Upon landing, SenseAware devices transmit all the data accumulated during flight (except location information). All of this may give customers the opportunity to intervene and control their

14 | Logistics News ME | December 2017

shipment before reaching its final destination. Customers also benefit from a documented audit trail for regulatory processes, as well as the global expertise of FedEx for quick customs clearance.

Hinedi added: “It just gives the shipper an ultimate control over their shipping patterns, and helps the customer make a decision regarding what they need to do along the way, with regards to aircrafts on ground, as well as other industries like eCommerce, healthcare, artifact shipments, and so forth.”

Present at the show also was the third generation Orbis Flying Eye

Hospital, the world’s only ophthalmic teaching hospital on board an MD-10 aircraft, featuring a state-of-the-art, fully accredited eye hospital with technology that can transmit live surgeries around the world in 2D and 3D. The aircraft was donated by FedEx, and was open to tours for all visitors.

Hinedi commented: “We’re very pleased to be able to support efforts such as Orbis, with whom we’ve been associated for over 35 years now. It is a fully fitted-out and efficient hospital, which can go into communities where people don’t normally get access to eye care, enabling them to save sight worldwide.”

www.cbnme.com

OUR AIM IS TO OPTIMISE YOUR PROFIT.

If you want to fulfil the daily requirements in the commercial vehicles sector, you not only need high-performance trucks, but also integrated solutions. From repair and maintenance management to breakdown service as well as extended warranty down to fleet management and driver training: that’s what we offer to you to optimise your fleet performance. www.man-middleeast.com

O p -Ed

New age tech Kushal Nahata, CEO and co-founder of FarEye, highlights tech-trends transforming the logistics industry in the Middle East

18 | Logistics News ME | December 2017

www.cbnme.com

T

he rise of innovative new machines and features such as drones, Artificial Intelligence, GPS tracking, and data-driven logistics, have had a promising effect on the logistics landscape. Supply chains across the Middle East have been revolutionised by new advancements, making logistics services faster, more accurate, and efficient.

And more such trends that will revolutionise the logistics industry in the Middle East are well underway in day-to-day business.

Rise of autonomous logistics and introduction of drones 2018 will be the year where autonomous logistics truly takes off through the use of drones. With automation and mobility forming the support system to survive the competition, drones will drive logistics performance to the next level. Self-driven vehicles and drones have already made their way in the logistics industry, creating new levels of efficiency and performance. Companies in the Middle East are transforming their delivery process by testing and adopting these options and reducing delivery time and costs as much as by 50%. Most recently, Costa Coffee introduced drone delivery in the UAE to send fresh coffee across Dubai efficiently and successfully. Not only does this technology deliver packages to customers in a shorter period, but also reduces costs, optimising the entire delivery procedure.

The IoT accelerates connectivity and data-driven logistics Another trend that has been under the spotlight is the Internet of Things (IoT) and its potential to connect virtually anything to the Internet and propel data-driven logistics. IoT helps in anticipating the demand and studying the data-patterns. Companies can therefore use it to predict the demand, plan, and align the logistics operations well in advance. IoT brings people together with process, data, and things, creating meaningful experiences. Companies can adopt big-data algorithms, data-visualisation

About FarEye FarEye has designed the world’s first Logistics BPM Engine for the modern logistics, enabling companies to be agile and reducing their go-to-market time. FarEye helps organisations champion operational efficiency and customer experience by digitalising logistics— which not only helps real-time tracing but also adds a predictability layer to the processes making it more receptive.

FarEye enables execution of approximately one million transactions per day and has helped in increasing the first-time attempts by 25%, reducing the fuel expenses by 28% and increasing the customer visits by 66%. FarEye has been empowering the logistics wings of Blue Dart, DHL, Walmart , Landmark Group, Hero FinCorp, Amway, Hitachi, Bajaj Capital, Zalora and over 75 large organisations across 15 countries globally.

techniques, and smarter analytics to boost process efficiency and service quality by shortening the delivery times. For instance, the UAE healthcare system has already made extensive use of IoT. It is mandatory for employers, in Abu Dhabi and UAE, to provide health insurance. The government can track the necessary patient information stored on cloud using various IoT enabled technologies.

Growing demand of responsible logistics As customers become increasingly conscious of companies that work towards social and environmental challenges, the logistics in-

dustry is aiming to reduce its carbon footprint. One of our prestigious clients, DHL, launched the “sustainable logistics challenge” in 2016 to ensure sustainability blended with a business-oriented approach. The challenge invited inventors to come up with a concept design, creating sustainable logistics solutions for the future of logistics industry. In order to achieve efficiency and reduce carbon emissions, businesses will take the help of logistics companies for intelligent auto-routing and smarter operations.

Necessity of elastic and anticipatory logistics The rise of e-commerce and doorstep delivery services in the region has also uplifted the need for elasticity of logistics by anticipating the demand correctly. In order to handle the ever-changing demand and fluctuating order volumes, logistics companies are making their operations elastic. Collecting and analysing data from customer searches, feedback, and online reviews helps logistics companies to anticipate the demand of different products and plan the shipments accordingly. FarEye’s logistics management software enables companies to manage and optimise from first mile seller pick-ups to last mile delivery, essentially the entire supply chain. FarEye’s platform allows trouble free dispatching, by allowing companies to schedule jobs, optimise loads, and allocate human resources appropriately to ensure timely delivery.

Cutting-edge technologies are rapidly changing the logistics landscape across the region and clearly the industry is on its way towards digitisation. In order to stay relevant, logistics firms must adopt innovative technologies to improve their processes. At FarEye, we constantly review the trends and nature of our industry, so that we stay ahead of the curve and provide the best possible service to our customers. Listening closely to the market needs and utilising the advancements in technology allows us to create a platform that improves efficiency, enhance customer experience, and create revenue streams.

Coffee Copter In September 2017, Costa Coffee UAE delivered cold beverages via a drone, at its Kite Beach branch, in Jumeirah, Dubai. The trial was conducted following a survey where 82% of Costa’s UAE customers said they would use a service where a drone delivered food and beverages directly to them. Customers were given the opportunity to call and order one of Costa’s new ice-cold drinks. Skilled baristas then created them, and sent them straight to the beach by a specially engineered drone within 15 minutes of receiving the order.

Logistics News ME | December 2017 | 19

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The Middle East’s logistics industry continues to grow substantially, despite economic and political challenges in the region. Innovative business models involving freezones, transportation, and freight links, and a modern approach to investments has everyone competing to be the best. Technology, efficiency, and sustainability go hand in hand, as businesses ensure they are at the forefront of the game.

Logistics News Middle East brings to you a list of some of the top logistics leaders in the region, who have done well to guarantee their spot in the logistics hall of fame.

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Sultan Ahmed Bin Sulayem

CEO and group chairman – DP World

DP World emerges as the top contender for this year’s powerlist, given their impressive figures and portfolio for 2016.

DP World’s revenues increased by almost 5% year-on-year to $4.16bn in 2016. Net profit for the same period stood at $1.13bn, a 28% increase on the $883mn profit in 2015. Containerised revenue per twenty-foot equivalent unit (TEU) grew 4% and total revenue per TEU by 3% on a likefor-like basis.

The company secured a 25-year concession to develop and operate a new logistics centre in Kigali, Rwanda, in early 2016; opened the first smart logistics centre in Peru, where it operates a container terminal; and increased its stake in Pusan Newport Company (PNC) in South Korea, becoming the largest stakeholder as it continued its investment spree.

Jebel Ali Free Zone (Jafza), a subsidiary of DP World, reported growth in its non-oil foreign trade by 17% from 23.9 million to 27.9 million tonnes in 2016, worth $80.2bn.

Sulayem commented in the company statement: “Encouragingly, our volumes (in 2016) have continued to grow ahead of the market with gross volumes growing 3.2% versus Drewry full year market estimate of 1.3%. This is pleasing, given the significant challenges parts of our portfolio have faced, and once again demonstrates the resilient nature of our diversified portfolio.”

The company has also been actively involved in international ventures, with Sulayem calling at existing DP World operations in Africa, and further exploring trade links and solutions connecting Africa to the world, and the completion of the scheduled expansion of Prince Rupert’s Fairview Container Terminal in Canada.

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Encouragingly, our volumes (in 2016) have continued to grow ahead of the market…it demonstrates the resilient nature of our diversified portfolio.”

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Captain Mohamed Juma Al Shamisi CEO– Abu Dhabi Ports Abu Dhabi Ports is the master developer, operator, and manager of commercial and community ports within the emirate of Abu Dhabi, as well as Fujairah Terminals and Khalifa Industrial Zone Abu Dhabi (KIZAD).

In 2016, Abu Dhabi ports saw over 140% increase in net profits and about 90% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) compared to 2015, as well as major growth in port traffic across most sectors despite a global slowdown.

2016 also saw Abu Dhabi Ports sign a major container terminal concession agreement with COSCO SHIPPING Ports Limited, which will significantly expand trade between China, the UAE, and the wider region, greatly enhancing Abu Dhabi and the UAE’s role as a key logistics and trade hub linking East and West. Khalifa Port has reached a significant milestone this year, having handled five million TEU since its inception in December 2012, as one of the fastest-growing ports in the world.

New milestones for 2016 also included the launch of Abu Dhabi Marine Services’ (Safeen) four new tugboats. The company became the first regional host of the annual conference of the International Port Community Systems Association (IPCSA) that hosted over 100 executives and industry professionals in Abu Dhabi in December 2016.

Abu Dhabi Ports also won several accolades, including the Port Authority Award at the 2016 Seatrade Maritime Awards of the

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Middle East, Indian Subcontinent, and Africa.

Captain Shamisi remarks: “Since I joined Abu Dhabi Ports in 2008, I have been fortunate to see many exciting developments being made. During my tenure, I have been part of a team that has brought about remarkable milestones to the trade, transport, and logistics industry in the emirate of Abu Dhabi and ultimately in the UAE.” In 2017, Abu Dhabi Ports launched Delma Port; signed a 50-year agreement with the Chinese Jiangsu Provincial Overseas Cooperation and Investment Company (JOCIC) that will attract investments of AED1.1bn to the Khalifa Port Free Trade Zone; signed a 35-year concession to develop and manage the Port of Fujairah, establishing Fujairah Terminals; and launched Maqta Gateway, a digital platform which provides digital services to different entities including shipping agents, traders, freight forwarders, custom brokers among others to boost trade and efficiency.

Captain Shamisi adds: “Our successes with Chinese entities and Fujairah show that Abu Dhabi Ports is a force to be reckoned with when it comes to bringing trade and logistics in, promoting FDI to the country. It is my hope that we continue on this trajectory of success, and with the support of our government, stakeholders, customers, and talented team play a leading role in positioning the UAE as an international standard trade, manufacturing, and logistics hub.”

During my tenure, I have been part of a team that has brought about remarkable milestones to the trade, transport, and logistics industry in Abu Dhabi.”

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Nour Suliman CEO— DHL Express Middle East and North Africa DHL Express’ Middle East and North Africa (MENA) region revenue for 2016 stood at AED3bn, with a 12.7% increase in profit as compared to 2015.

Between 2015-2016, the Express division of the Deutsche Post DHL Group opened a new gateway in Riyadh, a new country office and gateway in Cairo, and a new office and service point in Alexandria, Egypt.

They also increased their flight frequency to various destinations—six flights a week each to Casablanca and Charles de Gaulle, 14 flights a week to Riyadh, two flights a day to Dubai, and three flights a week connecting Brussels and Bergamo to Bahrain.

Additional new flights were added to the global network, including Baghdad, Abu Dhabi, Beirut, and Tangiers five times a week each.

The company announced plans to launch a new Dubai hub extension, and new gateways in Tangier and Jeddah. Additionally, the flight to Tangier will be upgraded to an Airbus, while the ones to Algeria and Tunisia will also get an upgrade to an ATR72. A new flight to Jeddah is in the pipeline, maintaining frequency at seven times a week, and the flight to Cai-

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ro will be increased to two flights a week.

DHL Express was awarded the Aon Best Employer 2017 for the UAE award in the region for the third consecutive year, at the Best Employers Middle East Awards. The 2017 accolade was awarded to DHL Express in five other countries, including Iraq, Lebanon, Jordan, Bahrain, and Oman.

DHL Express has created a number of initiatives to maintain a commitment to making DHL a great place to work, such as the appreciate program as well as the annual Employee Opinion Survey (EOS) which indicates how satisfied employees are within their roles, managers and with DPDHL. Nour Suliman, CEO of DHL Express MENA, comments: “Our focus has been on expanding and growing our network and reach, therefore further improving transit times to and from the Middle East to the world. That is, in addition, to focusing on organic growth of our people and developing local talents.”

Suliman, who joined DHL Express more than 30 years ago, was appointed as the CEO for Middle East and North Africa in 2011.

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Our focus has been on expanding and growing our network and reach, therefore further improving transit times to and from the Middle East to the world.�

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Nabil Sultan

Divisional senior vice president, Cargo – Emirates SkyCargo Emirates SkyCargo continues to play an integral role in Emirates Group’s expanding operations, contributing 13% of the airline’s total transport revenue in 2016-2017. Emirates’ cargo division reported a revenue of AED10.6bn, a decline of 5% over 2015, while tonnage carried slightly increased by 3% to reach 2.6 million tonnes.

Emirates’ SkyCargo’s total freighter fleet remained unchanged in 2016, with 15 aircraft: 13 Boeing 777Fs, and two Boeing 747-400Fs. In addition to belly-hold capacity to Emirates’ new passenger destinations, Emirates SkyCargo launched new freighter services to Phnom Penh (Cambodia), as well as new links between Dubai-Oslo and Delhi-Hong Kong.

During 2016-17, Emirates SkyCargo inaugurated Emirates SkyPharma, a 4,000sqm purpose-built facility dedicated to the timely and secure transport of temperature sensitive pharmaceutical shipments at Dubai International Airport; and launched White Cover Advanced, a protection solution designed for temperaturesensitive cargo.

Emirates SkyCargo was named “Air Cargo Carrier of the Year” at the 20th Global Freight Awards 2016 in London; “Overall Carrier of

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the year” at the Payload Asia Awards held in Hong Kong; “Best Air Cargo Carrier - Middle East” at the 2016 Asian Freight, Logistics and Supply Chain (AFLAS) Awards held in Shanghai; “Best Cargo Airline Middle East 2016” at the World Cargo Awards in London; and the “Diamond Award” at the Air Cargo Excellence Awards 2016 in Berlin.

Nabil Sultan, divisional senior vice president, Cargo – Emirates SkyCargo, has more than two decades of experience in commercial roles within Emirates. He was appointed to his current position in June 2013. He comments: “With Emirates’ network and reach across the globe, our entire airline is being designed to connect passengers in the easiest way, from point A to B. Transferring this same thinking to cargo operations and e-commerce, so as to bring the same efficiency in this segment, becomes part of the priority that we need to look at.”

In 2017, Emirates SkyCargo entered into a code-share partnership with Cargolux Airlines, the Luxembourg-based carrier, teamed up with British luxury car maker Jaguar, and became the logistics partner for Mohammed Bin Rashid Space Centre. (MBRSC).

With Emirates’ network and reach across the globe, our entire airline is being designed to connect passengers in the easiest way, from point A to B.”

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Tarek Sultan CEO and vice chairman—Agility

Looking ahead, we are investing in technology so that we can better serve our customers online, and drive productivity, efficiency, and operational excellence.”

The Agility Group (Global Integrated Logistics and Infrastructure) reported a net profit of KWD59.1mn for 2016, an increase of 10.6% over the same period in 2015. Revenue for the year stood at KWD1.2bn and EBITDA at KWD115.2mn.

Agility’s Global Integrated Logistics (GIL) saw revenues decrease by 7% to KWD928.4mn for 2016 over the same period in 2015. However, GIL’s net revenues grew by 1% on a constant currency basis.

Sultan comments in the annual report: “GIL continues to make progress. Profitability is increasing, with EBITDA margins improving from 2.7% in 2015 to 3.5% over the course of 2016. Volumes are growing; air freight tonnage grew by 9.8% and TEUs grew by 9.3%, with better margins in both air and ocean. Our contract logistics business, with more than 186ha of warehousing space across the globe, also grew by 7.4% this year.

“That said, ongoing pressure on rates, and a project logistics business that is impacted by low oil prices and subsequent delays in capital spending, have challenged the top line.”

For 2017, Agility saw the nine-month revenue pass KWD1bn, leading to a double-digit bounce in earnings and staying on track for their 2020 EBITDA target of $800mn. GIL grew its revenue 19.4% year-on-year to KWD273mn for the same period.

Sultan assumed leadership of Agility in 1997, spearheading the company’s expansion from a local Kuwaiti company into a business that has been described as a “global challenger” by the Boston Consulting Group and designated ‘a 3PL industry leader’ by Gartner.

Sultan adds: “Looking ahead, we are investing in technology so that we can better serve our customers online, and drive productivity, efficiency, and operational excellence.”

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We’re well located outside the Strait of Hormuz with an adjacent freezone, which is the biggest key to our success.”

Mark Geilenkirchen

CEO—SOHAR Port and Freezone SOHAR Port and Freezone has averaged double-digit growth every year for the past 12 years, making it one of the world’s fastest growing port and free zone developments Geilenkirchen says: “In 2016, for the first time, SOHAR exceeded an average of one million tonnes of cargo throughput each week, while total investments reach $25bn. Container throughput at the Hutchison operated terminal have grown threefold over the past five years and SOHAR launched its remote-controlled Terminal C, ready for 20,000 TEU vessels.”

Major projects underway at SOHAR include the automated gate system at the Hutchison terminal; the construction of SOHAR III,

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an integrated gas turbine power plant in the port, valued at over $1bn scheduled to commence operations by January 2019; Liwa Plastics Project; SOHAR Port South, a land reclamation project; SV Pitte Sohar Textiles, a $300mn cotton plant; the first phase of a major new $600mn oil storage facility to be built by the Singaporean-based Trescorp Group; and a new innovation zone, which will facilitate solutions to issues affecting shipping, logistics, and industrial hubs.

Geilenkirchen adds: “Sohar is one of the world’s fastest growing port and freezone developments and is really establishing itself as the region’s challenger brand. We’re

well located outside the Strait of Hormuz with an adjacent freezone, which is the biggest key to our success.”

Changbao recently completed construction on their first tubular steel plant outside China in SOHAR Freezone. In addition, SOHAR launched a Food Zone, with an initial investment of $170mn, which offers the region’s first dedicated agro-bulk terminal with integrated facilities for food manufacturing, packaging, and food logistics.

SOHAR Port was awarded 2016 Port of the Year at The Maritime Standards Awards, while the Freezone received two Financial Times fDi Freezone of the Year awards.

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As a transportation and logistics company, the safety of our employees and the community we live and work in are of the utmost importance to UPS.”

Jean-François Condamine

President, Indian Subcontinent, Middle East, and Africa (ISMEA) district—UPS UPS produced record earnings in 2016 and global revenue reached an all-time high of $61bn, an increase of 5% as compared to the same period in 2015, driven by an 8.4% jump in daily export shipments.

In the region, UPS continues its growth in ecommerce, healthcare, and technology, providing opportunities to deliver segment-specific customer solutions.

Condamine comments: “I can tell you that over the last two years, our international business has built a strong foundation, generating 30% incremental profit growth. And I can assure you that we consider ISMEA a vital growth area! The positive momentum in our

core international business model will continue going forward.”

UPS was selected as the official logistics partner of Expo 2020 Dubai, the first ever World Expo to take place in the Middle East, Africa, and South Asia (MEASA) region. It will showcase 180 countries and is expected to attract up to 25 million visitors from around the world, making it one of the world’s most complex logistics challenges.

UPS has also collaborated with Emirates Foundation to bring the UPS Road Code Program to the UAE. Condamine explains: “As a transportation and logistics company, the safety of our employees and the commu-

nity we live and work in are of the utmost importance to UPS. To this effect, and to promote road safety in the UAE, the UPS Foundation has announced an initial grant and in-kind commitment of more than $40,000 to the Emirates Foundation, through which volunteers will educate new drivers on safe driving techniques through its UPS Road Code safe driving program.”

UPS has added a new airside facility in Morocco and a dedicated flight to Casablanca, plus an integrated logistics facility in India.

With nearly three decades of experience in working with UPS, Condamine was appointed to his current position in 2013.

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Almajdouie aims to provide full support to national economy in many areas and supports the Saudi government on some key initiatives covered

by Vision 2030.”

Baheej Al Biqawi

CEO—Almajdouie Logistics Company Using its asset-based approach, Almajdouie Logistics operates one of the largest fleets in the Middle East reaching 7,000 units, and manages various facilities exceeding 18.5ha of terminals and warehousing capabilities, all piloted using centralised shared services based out of Dammam, Saudi Arabia, and supported by regional offices in the UAE, Bahrain, Kuwait, Oman, South Korea, and Japan.

In 2017, Almajdouie Logistics started the execution of its Accelerate 2020 program,

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which outlines its strategic direction for the next four years, and includes expansion of its solution offering to all GCC markets, and major infrastructure investment within its historical market, Saudi Arabia. The increase in warehousing capacity is currently under development, which will provide customers with an additional 130,000sqm, to cater to increasing demand from petrochemical and FMCG industries. Furthermore, it increased its petrochemical fleet capacity to handle

400,000 tonnes of fertiliser products transportation on monthly basis.

Almajdouie is currently working with the Royal Commission of Jubail to design and build a 320,000sqm logistics complex, a logistics hub to support the growing demands of the petrochemical industry with warehousing and logistical solutions. Biqawi says: “Almajdouie aims to provide full support to national economy in many areas and supports the Saudi government on some key initiatives covered by Vision 2030.”

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Bengt Ekstrand Group President— Gulf Agency Company (GAC)

GAC is a renowned supply chain logistics company in the Middle East, seeing significant financial growth despite economic difficulties across various sectors.

In April 2017, GAC Dubai’s contract logistics team conducted direct e-commerce logistics operations for the start-up online luxury couture retailer, The Modist. The logistics team has also continued to perform well for the food and beverage sector by earning ISO 22000:2005 accreditation after a stringent DNV audit.

GAC Abu Dhabi successfully completed the planning, construction, and relocation of the entire logistics base supporting the operations of global drilling provider, Paragon Offshore at Mina Zayed port.

We are tackling the volatility, uncertainty, complexity and ambiguity of the current business climate with our own version of VUCA— velocity, unorthodoxy, collaboration, and awareness.”

Ekstrand comments: “The movement of cargo from the old logistics base at Mussafah 60km away took meticulous planning and execution with more than 100 trailers used for the transfer of cargo alone. Over-sized cargo needed special lifting, police escorts, and night movement. Our in-house warehouse management system (WMS), GACWare, has been incorporated into the operations to ensure full supply chain transparency, accurate stock records, and control inventory.”

GAC Abu Dhabi has also joined forces with European bulk logistics provider, RB Logistics, providing complete logistics services covering freight, transportation, warehousing, and handling of talcum powder from Italy to Ruwais for a client of IMI FABI.

January 2018 will see the opening of GAC’s newest purpose-built contract logistics facility at Dubai South, which will have a capacity of 72,900 pallets, bringing their total capacity in Dubai to 200,000 pallets.

Ekstrand says: “In November 2016, we launched our Delta 21 strategy, to bring reforms at group management level as well as finance, HR, commercial, and IT. We are tackling the volatility, uncertainty, complexity, and ambiguity of the current business climate with our own version of VUCA— velocity, unorthodoxy, collaboration, and awareness. These reforms and adjustments are ongoing and I am confident that they will ensure that the GAC Group continues to be a resilient, innovative, and trusted partner for our customers worldwide.”

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Madhav Kurup CEO, Middle East, North Africa, and South Asia— Hellmann Worldwide Logistics

For 2018, we will continue to sustain our growth in the UAE, primarily driven by the leadership position in our key verticals.”

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Hellmann Worldwide Logistics recorded a global revenue of more than $3.5bn, with regional revenue accounting for $350mn, for 2016. Regional gross profits grew 15% as compared to the same period in 2015.

Recent projects covered by the company include healthcare expansion in the UAE and KSA, developing the fashion vertical business, launching a new chemical joint venture in the UAE with Indu Maritime, expanding warehouse activities in the UAE, and e-commerce product development.

Kurup was appointed as the regional CEO for Middle East in 2008, and is credited with turning around the organisation from a lossmaking entity to one of the largest and profitable organisations in the Middle East by creating leadership positions in automotive and healthcare verticals. He has also expanded the size of the organisation from 80 employees to more than 600 in GCC, exceeding 2,000 in the region. He was recently awarded as the Logistics Innovation Award at the fourth edition of the coveted Indian Innovators Awards held by Entrepreneur Middle East.

Kurup comments: “For 2018, we will continue to sustain our growth in the UAE, primarily driven by the leadership position in our key verticals automotive and healthcare, now additionally supported by our newly established vertical joint venture in chemical. In Saudi Arabia, we are currently growing at a rate of 40% and with the establishment of our unique healthcare vertical solution in the Kingdom, this will be our key engine for driving growth within the region.”

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David ross Regional president, Middle East, Indian Subcontinent and Africa—FedEx Express

In 1978, FedEx founder Frederick W Smith said that the information about the package is just as important as the package itself.”

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FedEx Corporation’s revenue exceeded $60bn for the first time in company history, for the 2017 fiscal year. TNT Express, acquired in May 2016, was integrated with FedEx Express operations in 64 countries, with more to come in the next fiscal year.

FedEx Express introduced Aerospace Solutions in the region, designed to resolve Aircraft on Ground (AoG) situations and manage air freight deliveries more efficiently.

In an interview with Logistics News ME early this year, Ross comments: “For more than two decades, our Dubai hub has handled oversized shipments for numerous customers, in compliance with the various aviation regulations. This has allowed the team to develop best practices to move large shipments.”

FedEx launched SenseAware, a multi-sensor device that monitors critical shipments, in near real-time, from the moment they’re packed and picked up, to the time they’re delivered and even beyond. Typically placed inside packages, pallets, trailers, and warehouses, the device collects data from items it’s travelling with and transmits the data via wireless communication to an online application for monitoring and analysis.

Ross says: “The FedEx history of innovation is built on a series of ‘firsts’. For instance, the company was the first to install computers in delivery vehicles, providing sophisticated automation for corporate mailing services, and developing capabilities and software. FedEx was also the first express courier provider to offer package status tracking for improved customer service via fedex.com, which was launched in 1994. In 1978, FedEx founder Frederick W Smith said that the information about the package is just as important as the package itself.”

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Abhishek Ajay Shah Group CEO— RSA Global

We’ve established ourselves in some markets, but now it’s time to go bigger.”

Recently rebranded as ‘RSA Global’, the Dubaibased third-party logistics provider has witnessed steady growth since its inception in 2007. RSA Global’s umbrella includes RSA Logistics, RSATALKE (joint venture with German chemical logistics specialist ALFRED TALKE), RSA Cold Chain, and RSA National, with a diverse portfolio of customers ranging from automotive, to power generation, petrochemicals and chemicals, and food and beverage companies.

Early 2017, RSA expanded its operations to Dubai Investments Park with a 2,500sqm warehouse facility. RSA also signed a solar lease agreement with SirajPower, to deliver a solar rooftop solution in Dubai, which was launched in November this year.

RSA’s latest cold-chain facility in Dubai South will eventually house 21,000 pallets, with phase one offering an initial capacity of 10,800 pallets, coupled with sophisticated, end-to-end 3PL services for packaged food, fresh fruit and vegetables, dairy products, and frozen food.

RSA was awarded Employer of the Year at the 2016 Middle East HR Excellence Awards, and the Gulf Customer Experience Award for delivering outstanding customer experience through innovation and business impact at the Gulf Customer, Digital and Employee Experience Awards 2017.

Shah comments: “The reason behind our rebranding under the ‘global’ tag was to ensure our team gets into that global mind-set. We’ve established ourselves in some markets, but now it’s time to go bigger. We don’t want to be seen as a very strong local company— we want to be able to offer strategic relationships to customers in multi-geographies, with the same RSA experience across different parts of the world.”

RSA operates 350,000sqm of logistics space in the UAE alone, with a team of 240 people. It also has operations in Kenya and India.

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The major assets that keep us growing and successful are our staff and we invest in their growth and wellbeing.�

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Walid Khoury

Managing director— ALS Logistic Solutions

ALS Logistic Solutions reported increase in turnover in 2016 as compared to 2015, with main projects including the Muscat and Salalah automated cargo terminals for Oman Air; automated storage and picking system upgrade for Dubai Duty Free; DHL’s new hub in Jeddah; automated car park system in Zabeel; and an automated car park system for Tadawi Hospital in Dubai.

ALS is currently working on two large automation projects in Saudi Arabia for pharmaceutical warehouses; a semi-automated cargo handling project in Dammam; cargo handling system for Frankfurt Airport; and an automated car park system in the UAE for a major car dealership.

Khoury comments: “From 2001 to 2007, I have been the company GM in the Middle East. In 2007, when I orchestrated the taking over of all the shares from the previous shareholders and shifted the HQ to Dubai, the company has grown every year in turnover and staff, even at the 2008-2009 slowdown phase— we were still acquiring business and hiring staff even at that point. The major assets that keep us growing and successful are our staff and we invest in their growth and wellbeing. We recently changed our image, invested in a lot of exhibitions and world presence, and invested in our subsidiaries to maintain a steady growth.”

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We have been focusing on building the platform for further sustainable growth.”

Tom Nauwelaerts

Managing director—Momentum Logistics Momentum Logistics, the logistics arm of global port operator Gulftainer, saw substantial growth in 2016. Gulftainer recorded a strong performance in 2016, registering a container volume of over six million TEUs across its global portfolio.

Their flagship Iraqi-facility, Umm Qasr Logistics Centre (UQLC), handled substantial volume growth as a partner for the oil and gas sector of South Iraq. In the UAE, growth was noted in the chemicals sector, with contracts secured with companies like Dow and Borouge.

Nauwelaerts says: “We have been focusing on building the platform for further sustainable growth. Many projects have been executed ranging from employee engagement and development, to IT infrastructure, quality process enhancements, as well as ensuring the proper infrastructure to achieve new growth.”

Momentum has implemented SAP and Cargowise as new IT systems, recertified their sites and companies through

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ISO, and embarked with an ISO certification program for their Iraq operations. A new company setup is underway in KSA, while a warehouse with a range of 10,000 pallet positions is being constructed in Sharjah. They are also aiming to expand operations in the USA. All Gulftainer logistics operations have been centralised under one organisational umbrella, including joint ventures.

Nauwelaerts comments: “We believe in the potential of this market and as such we are now expecting the delivery of our first batch of brand-new trucks to ensure the best possible service to our customers with a beneficial cost structure. This expansion program of the transport fleet will extend into the mid of next year as we take on these new assets.”

Nauwelaerts was appointed as the managing director of Momentum in mid-2016, with over 25 years of experience in the supply chain management industry.

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Richard Bell

Managing director— RHS Logistics

We are at the forefront in offering an exceptional service to customers who want to conduct retail operations in Dubai.”

Rais Hassan Saadi (RHS) Logistics was established in 1998 in Jebel Ali Free Zone (Jafza), with additional distribution centre infrastructure in Dubai Airport Free Zone (DAFZA) and Dubai South. During the 2016 financial year, the company made healthy profits and staff numbers increased by approximately 8%.

Around 100,000cbm of inbound and outbound inventory transactions are handled by the company every month, with over 300,000 individual products moved through the warehouses for industry leading clients from a broad range of

sectors. Value added services and co-packing account for over 2,000,000 units per month and localisation accounts for 500,000 units per month.

The company also plans to launch a dedicated pharmaceutical warehouse, and has increased capacity for the storage of raw and finished goods, catering to both manufacturing companies and retail operations.

Managing director Richard Bell says: “Thanks to our upcoming AEO (authorised economic operator) status that is currently underway in the final stages, and strong relationships with Dubai

Customs, we are at the forefront in offering an exceptional service to customers who want to conduct retail operations in Dubai. Our partners can be assured of the smooth flow of goods and seamless integration with the customs authority throughout the process.”

During Bell’s directorship, the company has seen significant growth and development. With distribution centre facilities in DAFZA, JAFZA and Dubai South, RHS Logistics added 17,000 new locations to its portfolio in 2016, bringing the total number of locations to 105,000.

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Erwin Wittemaier

President and regional manager, Middle East and Africa— Kuehne + Nagel

Ahmed Mohammed Al-Ghaith

With over 70,000 employees at more than 1,300 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies.

Keeping up with the increasing presence and requirements of the aerospace industry, Kuehne + Nagel is further optimising its customer support services in the aviation sector in the region. The Kuehne + Nagel Aerospace Hub in Dubai Logistics City (DLC), close to the Al Maktoum International Airport, will provide a full scope of aerospace services including inspection, warehousing of aircraft spare parts, and tooling as well as inbound and outbound logistics.

Wittemaier was appointed to his current position in mid-2016, leading a team of nearly 2,000 people in the region.

President—Bahri Logistics

As one of the largest providers of maritime services globally, Bahri structures its operations around six business units that include oil, chemicals, logistics, dry bulk, ship management, and data.

Bahri Logistics operates six multipurpose vessels with 26,000 DWT each on a regular liner schedule, four of which connect the United States to Saudi Arabia and major ports in the Gulf, Indian Subcontinent, and the Mediterranean, and the other two connect Europe to Saudi Arabia and key ports in the Gulf and the Mediterranean.

In 2016, Bahri Logistics introduced a regular liner service to major European ports with a strong involvement in Total Logistics. This new addition generated incremental revenues of SAR70.6mn. Bahri has also taken steps to expand its presence in South America with the launch of new ports call at Vera Cruz, Mexico, which is expected to generate revenues in excess of SAR20mn per annum. Operationally, Bahri Logistics introduced SMART Operations, to improve efficiency and increase cost control, Bahri Logistics smart operations, process management and focused marketing efforts, and helped the company to increase its market share on the North America trade route from 29% in 2015 to 42% in 2016.

The company also secured MoU’s with international shipping lines for trans-shipment operations. The combined initiatives generated cost savings in excess of SAR8.3mn and network utilisation gains of 5% during 2016.

In Feb 2017, Bahri signed a contract with Saudi Rail Company (SAR) for the provision of transportation and shipping services from around the world as well as customs clearance support.

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Supported by

Ghaith Al Ghaith

CEO— flydubai

flydubai reported a profit of AED31.6mn for 2016, down 69% from net profit of AED100.7mn in 2015. Full-year revenue for 2016 was AED5bn, up 2.4% year-on-year. flydubai Cargo, launched at the beginning of 2012, has built a network that, due to interline agreements with other airlines, extends globally— allowing the transportation of a variety of goods from Dubai across the GCC, Middle East, Europe, Africa, Russia, CIS, Central Asia, and America. flydubai Cargo has continued to invest in a number of electronic cargo systems, which enables its customers, free of charge, to have access to a real-time online booking system, process their air waybills, and track their consignments. The airline only uses electronic air waybills (e-AWB), and in Dubai a fully automated warehouse storage facility and retrieval system enhances operations and transit times. As a signatory of the IATA Multilateral e-AWB agreement, flydubai Cargo has been recognised by IATA as the highest ranked airline for its e-AWB penetration worldwide.

Amit Gandhi

CEO—ATS World

ATS World, a Dubai-based logistics company, reported a revenue of $160mn for the year 2016. Profit growth stood at 11% as compared to the same period in 2015.

The company launched several new projects, some of which include the ATS-Raftaar Terminal in Mangalore (India); a new warehouse in Jebel Ali Freezone (Jafza); signing of MoU with Etihad Rail as their logistics partner; and upgrading of their fleet with Euro V Green Engines for reduction in CO2 emissions. There are also several projects in the pipeline, including an integral logistics park in Dahej, Gujarat (India).

CEO Amit Gandhi says: “We have also acquired a logistics company in Italy, a potential liquid storage terminal and a dedicated team for handling defense logistics, both for the US, as well as a border office for customs clearance at the Ghuweifat border.”

Gandhi joined ATS in 2012 as the CEO where he led the expansion and diversification of the business into the transportation, logistics, and petrochemical sectors.

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S p e ci al F e atur e

Raed Hiassat

General manager—Al Naboodah Cargo Centre As the official logistics provider and site handling agent for the Dubai World Trade Centre, Al Naboodah Cargo Centre (ANCC), the logistics business of Al Naboodah Group Enterprises (ANGE), has worked on some of the UAE’s most challenging and prominent exhibitions, such as GITEX Technology Week.

The company reported triple digit growth in profits in 2016 fiscal year, as compared to 2015, managing projects such as Gulfood, and recently Gulfood Manufacturing as well.

For GITEX alone, ANCC handled complex tasks such as the shipping, clearance and off-loading of an $85,000 exoskeleton from Spain to Dubai and onto the exhibitor’s booth; and transporting the Makr Shaker; a portable Bionic bar made in a 20 feet container weighing 12 tonnes, and placing it on the upper floor of an exhibitor stand.

ANCC also supported the Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX), working closely with the Ministry of

Interior and Abu Dhabi police. In addition to handling all the shipping requirements for the entire exhibition and all exhibitors, ANCC was the on-site handling agent for the event. This involved handling special permits and licenses for

sporting equipment, firearms and arts and crafts.

ANCC was the official freight company handling the complete international and domestic logistics support for the Abu Dhabi International Book Fair, in partnership with the Abu Dhabi Tourism & Culture Authority, and KITAB (a joint venture between the Abu Dhabi Authority for Culture & Heritage and the Frankfurt Book Fair).

General manager Raed Hiassat comments: “ANCC is looking to align with a global multinational freight forwarder, a move which will significantly enhance our presence and capabilities across the Middle East and further. In addition, ANCC is also focused on establishing the UAE’s first special chemical and hazard cargo/material warehouse, to address the specific requirements of handling hazardous materials in a safe and sustainable manner.”

Hiassat has been with ANCC since 2012, and has more than 20 years of industry experience in freight forwarding and logistics.

Mohammed Mohebi

CEO –Mohebi Logistics

With Zainal Mohebi Holdings celebrating more than eight and a half decades in business, Mohebi Logistics is a leading supply chain specialist for food industry manufacturers and FMCG companies in the Middle East. The company has evolved, over the years, going from 33,000 pallet positions in 2008 at their Jafza bonded facility, to a total of 250,000 with their non-bonded facility in Dubai South.

In 2016, Mohebi signed a long-term supply chain partnership with Middle Eastern Independent Purchasing Company Limited, a nonprofit regional organisation owned by Subway franchisees, making Mohebi in-charge of servicing over 430 Subway franchises across the Middle East and North Africa (MENA) region.

Mohebi also signed a partnership with L’Oréal, providing supply chain services for the beauty brand’s FMCG products, from origin management to last mile delivery. Nestlé completed their 3PL warehouse in the UAE in the first half of 2017, where Mohebi was selected as the primary logistics partner for what is now one of the most environmentally superior facilities in the region, with a warehouse containing 87,500 temperature-controlled pallet positions on a 50,000sqm site.

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Supported by

Alain Kaddoum

General manager— Swisslog

Khalid Al Shirawi

CEO— Global Shipping & Logistics

Falling under the umbrella of Oasis Investment Company, the holding company for Al Shirawi Group of companies, Global Shipping & Logistics (GSL) started its freight operations in 1975 as Global Shipping, becoming an integrated logistics provider in 2005. Today GSL has a workforce of over 600 employees, with 9.2ha of storage in Dubai Investment Park and a rapidly growing storage capacity in Dubai Industrial City. Al Shirawi has been a member of the board of directors for Oasis Investment Company since 1986, taking up the role of GSL’s CEO later. Al Shirawi has remained in this role, ensuring he continues to hone his expertise in logistics, manufacturing, engineering, and other vital industries whilst guiding the various companies that comprise the group.

In late 2016, Swisslog was commissioned by Mai Dubai, a Dubaibased bottled drinking water company, to automate its storage and distribution logistics at its new mega expansion project in Dubai in order to reach its 2020 goals. The $21mn automation project will see Swisslog Middle East deliver a new automated raw and packing material warehouse, extend its production capability, as well as build a high bay warehouse to store finished goods. Swisslog also offers healthcare automation solutions.

Kaddoum was appointed as the general manager in August 2017, and in charge of leading the sales and business teams, and developing strategies to support uptake of the company’s robot and data driven intralogistics automation solutions for forward-thinking customers in the UAE. Having worked for Swisslog for more than two years, and in the engineering industry for almost a decade, Kaddoum brings a wealth of experience and industry expertise to his role as general manager.

Logistics News ME | December 2017 | 49

S p e ci al F e atur e

Supported by

Abdulla Mohammed Alashram CEO— Emirates Post On World Post Day (October 9), the Universal Postal Union, a specialised agency of the United Nations, congratulated Emirates Post on its new rating as the best postal service in the Middle East. In the Integrated Index for Postal Development (2IPD), a global ranking system that is also categorised by regions, the UAE postal service scored the highest in the region.

Al Ashram said the achievement follows the enhancements of Emirates Post in automation, IT, quality control, and customer service.

Emirates Post has been extending its services to provide customers with a range of fast and convenient services, including a recent option that allows customers to recharge international SIM cards. The post offices also accept traffic fine payments and sells parking and nol cards, in a direct link with the Roads and Transport Authority (RTA). The postal service is also working with e-commerce businesses to solve last-mile delivery issues by using its UAE-wide network of post offices to provide common PO box addresses tied to a single location that can be used by anyone as a pick-up point.

Muflih Alkayid

Chairman— Takhzeen Logistics

Launched in 2008, Takhzeen Logistics is currently operating five warehousing facilities in Riyadh and Jeddah, with new turnkey projects signed to establish additional facilities in Dammam, Riyadh, and Jeddah.

In order to establish itself as a regional player, Saudi-based Takhzeen Logistics Company (TLC) took the first step outside the Kingdom and launched a facility in November 2017, located in Dubai Logistics City and covering an area of 6,000sqm. Services offered by TLC Dubai include but are not limited to warehousing, value-added services, customs clearance, cross docking/shipments consolidation, and transport by road within the region.

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E v e n t R ev i e w

Optimising growth

ADIPEC 2017 focused strongly on bringing modern advancements to the traditional oil and gas industry

Held under the patronage of HH Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE, and hosted by the Abu Dhabi National Oil Company (ADNOC), the annual edition of the Abu Dhabi International Petroleum Exhibition and Conference, took place from November 13-16, 2017, at the Abu Dhabi National Exhibition Centre (ADNEC).

The 20th edition of the event saw thousands of oil and gas professionals, industry leaders, and decision makers, with more than 2,200

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exhibiting companies, 27 country pavilions, and 100,000 trade professionals from more than 125 countries, convene under the theme ‘Forging Ties, Driving Growth’. The exhibition spanned 135,000sqm of floor space, including a dedicated quay-side exhibition area, Offshore and Marine, with tours of offshore vessels.

ADIPEC also included the oil and gas industry’s downstream sector for the first time, including refining and non-fuel processing such as petrochemicals, reflecting the increas-

ingly diversified operations of National Oil Companies (NOCs) and International Oil Companies (IOCs) as they move to generate revenue from multiple layers of the petroleum value chain.

The event saw major companies like the Abu Dhabi National Oil Company (ADNOC), Drydocks World, Honeywell, Rockwell Automation, Seatrax, Jotun, Saudi Aramco in attendance. Clients from oil and gas organisations in the Middle East directed their focus on

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optimising their asset performance and increasing profitability, and many exhibitors offered solutions utilising digitalisation and Internet of Things (IoT).

Rockwell Automation showcased its Digital Oilfield and ConnectedProduction solutions, demonstrating how the automation, control, and safety systems can help producers improve nearly all aspects of oil and gas production, from maximising equipment performance and meeting production targets to lowering operating costs.

Thony Brito Cardier, regional sales manager vMonitor, Digital Oilfield Solutions at Rockwell Automation, explains: “There are two main arms that we’re presenting under our suite of ConnectedProduction solutions — one is the software side, and the other is on the hardware side. For the latter, we have developed intelligent assets using Internet of Things (IoT), such as the Well Manager. Normally, oil and gas companies built multi-well pads using different controls and locations throughout a single pad. The Rockwell Automation solution leverages just one controller for all well pad operations – including rod pumps and plunger lifts, electrical submersible pumps, progressing cavity pumps, natural flowing wells and more.

Shifting all operations to one controller from a single vendor reduces maintenance costs, helps with revision control, and streamlines training and support.”

Cardier adds: “We’re currently rolling out

introduction programs (for the solution), due in Q2 2018, planning workshops with different end users and integrators. The idea is for them to understand how the hardware and the applications gel together, and how much it can benefit them. We want to help the end-users rationalise their oil test facilities. We’ll also have more applications for optimisation, including potential solutions for oilfield optimisations.”

Honeywell presented its Connected Plant product, which will help manufacturers operate their plants more safely, more efficiently, and more reliably by leveraging the power of the Industrial Internet of Things (IIoT).

Edmond Mikhael, SPS general manager, Middle East, Turkey and Africa at Honeywell, explains: “We’re using Internet of Things to implement safety for all. Using our ConnectedPlant product, we note the movement of the workers, which is saved as data. This data is stored on the Cloud, and this data can be used by the organisation for analysis and further studies. There’s enormous potential in this data, to keep the plant safe, to drive productivity, and of course to keep people safe.”

Honeywell also displayed its oil and gas solutions such as the Experion Orion Console; Honeywell UOP’s Connected Plant Services (CPS); Industrial Cyber Security Risk Manager; safety solutions including the HS81-HS Industrial Fire and Gas Controller; Connected security solutions for improved situational awareness in-

cluding Adpro PRO PIR (passive infrared), and ControlEdge PLC; and ConneXt Loneworker.

ADIPEC also saw panel discussions and strategic meetings as part of its conference program, spread over four days. Topics included security, the offshore and marine sector, enabling smart growth across the value chain, the role of women in the energy industry, as well as how the petroleum industry can adapt to the changing roles of oil and natural gas in a low-carbon future. Achievements in the oil and gas industry were honoured with the presentation of the prestigious ADIPEC Awards, held on the opening day of the event.

Mikhael comments on the event: “The industry is forever challenging companies like us, in terms of receiving cost effective solutions, less down-time, especially when it comes to injuries, and they want something they can use on both their existing facilities and new ones. The Middle East is quite good at adopting new technologies, especially the UAE. We have good conversations and good progress around that.”

Cardier concludes: “ADIPEC has been really good for us. They’ve made some positive changes to exhibition arrangements, and we’ve had some really good engagement with clients and potential clients. We had some very high caliber professionals visit us, which strengthens the notion that ADIPEC is the ideal place to showcase your presence and your work.”

ADIPEC will return in 2018, running from November 12-15 at ADNEC.

Logistics News ME | December 2017 | 53

Event

Redefining mobility MAN Lion's Coach is set to redefine mobility, says MAN Truck & Bus Middle East In its pursuit of excellence and efforts to champion ‘innovation and technology’ to match its fleet offering with the latest market trends, MAN Truck & Bus says it is striving to continuously enhance not only the design element but also economic efficiency and safety features of its new line-up. The recently launched MAN Lion’s Coach (which it has revealed is al-

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ready available for pre-orders in the Middle East) is a best-in-class coach and longdistance bus, and the embodiment of the company’s endeavour to offer consumers a whole new experience.

The new addition to the MAN Truck & Bus Middle East’s impressive line-up of highly efficient, safe, economic, and innovative commercial vehicles, the MAN

Lion’s Coach is set to take over the coach market in the region with its distinct safety, comfort, and performance-driven features. The MAN Lion’s Coach is available in GCC Euro engine standards to suit a complete range of fleet requirements in the region.

Franz von Redwitz, managing director, MAN Truck & Bus Middle East, said:

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“We are a technology innovator and the new MAN Lion’s Coach demonstrates MAN Truck & Bus’ commitment to providing world-class transportation solutions. This is a new generation of coach that raises the bar when it comes to safety, economy, and design.”

Inspired by the lion, the MAN Lion’s Coach, with its modern yet timeless design, marks the beginning of the new MAN bus design language at the front, rear and sides, and sets a new benchmark in luxury, attractiveness, and efficiency.

The new coach’s LED main headlights and taillights reflect the leading German commercial vehicles manufacturer’s quest for technological and innovative enhancements in its fleets. The first-of-its-kind on coaches, the LED lights, make the Lion’s Coach more appealing to the eye and better in efficiency and durability. A particularly distinctive feature of the new headlight is the strip-form brand-specific daytime running light which also functions as a turn indicator.

Among the new safety features of the MAN Lion’s Coach includes its abil-

ity to absorb 50% more impact energy in the event of a crash. In addition, it has an array of assistance systems such as Emergency Brake Assist (EBA), Adaptive Cruise Control (ACC), and Lane Guard System (LGS) accident prevention technology.

Furthermore, the new coach offers enhanced comfort and safety while travelling, thanks to the new generation shock absorbers and optimised vehicle configuration. In addition to providing greater driving comfort and improved handling, the new features also contribute to further increase in fuel efficiency as well as a 20% improvement in aerodynamics.

Pedro Teixeira, head of bus sales, MAN Truck & Bus Middle East, said: “The new MAN Lion’s Coach doesn't just win people over with its modern yet timeless design; it’s also thanks to its economic efficiency. This is a vehicle that provides excellent total cost of ownership and will also place fleets at the centre of a transformation towards modern, cleaner, and safer transportation in the Middle East.”

Facts about the new MAN Lion’s Coach Inspired by the lion, the Lion’s coach marks the beginning of new MAN bus design language at the front, rear, and sides.

A higher level of economy with several assistance systems as well as a 20% improvement in aerodynamics.

Main headlights and rear lights now for the first time available as all LED. The new MAN Lion's Coach can absorb 50% more energy in the event of a crash.

Logistics News ME | December 2017 | 55

V e h i c l es

Quality, durability, efficiency

Ford Trucks recently announced its partnership with Alghanim Auto, to expand its commercial vehicles base in Kuwait

Ford Trucks, one of the largest international heavy truck manufacturers in the world, recently announced that it has appointed Alghanim Auto as the official dealer for Ford Trucks Heavy Commercial Vehicles in Kuwait. Alghanim Auto is part of the Alghanim Industries automotive group, which includes Ford Motor Company and Lincoln Motor Company.

This new partnership was announced and celebrated during a press event at the Dar Hamad Restaurant in Salmiya, Kuwait. The event

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was attended by Omar K Alghanim, CEO of Alghanim Industries; Ercan Emrah Duman, director of International Markets at Ford Trucks; HE Lawrence Silverman, the Ambassador of the United States to Kuwait; Ali Bozçalışkan, the First Counselor of the Republic of Turkey; as well as executives from Ford Trucks and Alghanim Auto and other prominent guests.

The new Ford Trucks facilities for sales, service, and parts will be open soon in Ahmadi. Furthermore, Alghanim Auto will offer

various transportation solutions, ranging from international extended warranty programs backed by the manufacturer, customised maintenance packages for up to five years, a mobile workshop service to provide repairs and maintenance to increase vehicle uptime, 24/7 roadside assistance, technician and driver training for customers, as well as fleet management systems with built-in connectivity as a standard on all truck models.

A Ford Trucks statement said: “Driven by

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the brand’s strategic pillars of quality, durability and efficiency, Ford Trucks combine more than half a century of design and production experience with expertise in market specific product development. This partnership allows Ford Trucks to present a wide range of vehicles in Kuwait distinguished with their power, efficiency, fuel economy, and technology, including tractors, construction trucks, and road trucks with a high capacity payload.�

During the event, the guests had the chance to be the first to discover the Ford Trucks line-up displayed for the first time in Kuwait: The Tractor, Construction, and Road series. The three series were presented in an interactive way showcasing their features and benefits.

Logistics News ME | December 2017 | 57

V i e wp o i n t

Speeding ahead Carlos Cordon, LEGO Professor of Strategy and Supply Chain Management at IMD, explains that for supply chain, faster is not always better

March 2013 was the coldest in decades for much of Europe and the eastern United States.

But in March the previous year, the United States had experienced heatwaves.

The capriciousness of the weather spelled trouble for many fashion retailers. Hennes & Mauritz (H&M), the Swedish apparel giant, reported lower like-for-like sales in the first quarter of 2013 and attributed the fall to the unusually cold weather. Exceptional weather again played

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a part in August 2016. That month, H&M’s sales rose less than forecasted and the company blamed high temperatures for keeping consumers out of shops in three key markets – Germany, the United States, and the United Kingdom.

In contrast, Inditex, the world’s biggest apparel company, saw sales rise, both in 2013 and in August 2016. The Spanish company has a two-week cycle from product design to delivery to its stores, while its competitors need months.

If the weather is cold, for example, in early spring, Inditex delays the introduction of spring and summer clothing: if the weather is warmer, it supplies spring clothing; to its stores. Inditex is credited with creating a new business model – fast-fashion – in which a fast supply chain is the critical element for success.

The impact of speed on risks – such as the risk of obsolescence or missed sales – and on business opportunities is tremendous and many

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There is a balance between speed, efficiency, and variability. It is not possible to have all three.”

Carlos Cordon, IMD business writers have praised its virtues. But higher speed also involves higher costs. The right question to pose is: what is the right speed?

The pharmaceutical industry is considered a low-speed industry with the typical manufacturer carrying seven months of inventory. The entire value chain, down to the patient, holds about nine–10 months of inventory – triple or quadruple the inventories of many consumer goods segments.

In some exceptional cases, however, very high speed is required. For example, in a flu pandemic, vast quantities of vaccine must be supplied very quickly. Many manufacturers maintain extra capacity in order to be able to meet this extraordinary – and highly profitable – demand. But this capacity is idle most of the time and represents a very high fixed cost.

Product variety and complexity influence supply chain efficiency and speed. Initiatives such as “lean” increase both speed and efficiency by

standardising products and removing variability.

In a fast-food restaurant, variety is strictly limited.

A luxury restaurant, on the other hand, combines high variety and speed, but at the cost of efficiency, because the proportion of staff to customers is far higher than in fast-food restaurants.

There is a balance between speed, efficiency, and variability. It is not possible to have all three.

Optimal combination Efficiency is easily measured by looking at costs. But the effect of speed and variety on company profit is not so easy to quantify.

Business leaders, nevertheless, seek an optimal combination of speed and variety to maximise profits, while reducing risks and increasing opportunities.

But there is a danger that as companies reach – what they believe – is an optimal speed, they institutionalise it and develop a business model that anchors it. For example, forecasts are done

weekly, management committee decisions are taken once a month, product development involves a certain number of steps, and so on.

But when the external environment changes abruptly, organisations may find their speed for balancing costs with risks and opportunities is no longer optimal.

Also, while many companies would like to increase speed to counter the volatile business environment of recent years, they are being thwarted by rising controls and compliance rules. Compliance rules are becoming so obstructive that they are increasing the very risks they are supposed to avoid.

There is an optimal speed for any supply chain, process, company, and industry, and it may not be the fastest. It is, therefore, imperative that organisations manage speed proactively. They should measure it and determine the optimum level for a given environment rather than react to events or demands.

Logistics News ME | December 2017 | 59

Sup p lie r N e ws RB Logistics signs two-year contract with GAC Abu Dhabi

European bulk logistics provider RB Logistics (RB) appointed GAC Abu Dhabi for the second time to provide a complete logistics service package.

The two-year contract covers freight services, transportation, warehousing, and handling of talcum powder from Italy to Ruwais for a client of IMI FABI, a global talc manufacturer. GAC will arrange for collection of talc from IMI FABI’s mine in Italy and send it by sea to Abu Dhabi, where it will handle the customs clearance before transporting to GAC’s Mina Zayed warehouse. There the talc will be loaded into RB’s 40-foot silo containers using a specialised RB Transloading machine for the road trip to the production plant in Ruwais. After unloading,

empty containers will return to the warehouse. The GAC team will carry out at least 12 load out operations a month.

According to the company statement, the GAC staff have been trained in the operation and maintenance of the RB machine, and the GACWare Warehouse Management System has been incorporated into the supply chain to ensure transparency, accurate stock records and inventory control.

Ben Reijers, chief executive officer, RB Logistics, said: “By combining our and GAC’s expertise and experience, we are able to offer a unique and niche solution to IMI FABI and their customer. Both companies share the same strong values, and we are very proud to be able to work in partnership on this project.”

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B&H Worldwide to manage Flybe’s aerospace logistics

B&H Worldwide, named as the world’s best-in-class aerospace logistics supplier by Global Institute of Logistics, has extended its relationship to manage Flybe’s time critical and heavyweight inbound and outbound aerospace logistics.

B&H will provide a range of time critical solutions to Europe’s largest regional airline to manage its complex supply chain and ensure the carrier’s aircraft stay in the air. The program will be managed through B&H 24/7 365 Control Tower based at its London Heathrow facility and will use its unique, cloud-based, in-house designed IT system OnTrack to manage the process.

With the Flybe network now extending to nearly 77 airports, improved transit times and greater visibility of aerospace shipments, combined with cost reduction and fast delivery, are essential components for delivering ongoing aerospace logistics solutions.

Stuart Allen, CEO of B&H Worldwide, stated: “AOG and time-critical logistics need specialist teams to manage and deliver the parts and the award-winning B&H teams have the skills and experience to deliver just that. We are delighted by Flybe’s decision to extend the relationship with this contract and will be putting in place plans to ensure they benefit from a continuous improvement program for their aerospace logistics, which not only meets, but exceeds their expectations.”

In addition, B&H will be implementing its freight optimisation solutions for Flybe alongside continuous financial reporting and analysis, and IT efficiencies led by its IT arm B&H InTech. They will also support Flybe with customs compliance services.

Keith Earnden, Flybe’s director for engineering and maintenance, said: “B&H has demonstrated a clear understanding of the imperatives under which Flybe requires to operate and has played a critical role in efficiently providing the essential components for delivering the effective ongoing aerospace logistics solutions we need. We are pleased to have found such a professional, reliable service provider and look forward to working with their teams through our extended relationship.” www.cbnme.com

fetchr, Oman National Post Company set up JV

fetchr, a mail delivery and logistics services company based in Dubai, has joined hands with the Oman National Post Company to set up a new company aimed at modernising traditional postal delivery.

A first-of-its kind joint venture firm, Ersal will enjoy direct access to the GCC countries through the fetchr network. With this deal, Oman National Post Company will become the first public post entity in the Middle East to revolutionise its last mile delivery postal service by enabling delivery access via mobile (in contrast to the traditional requirement of a physical address), said an official statement.

The launch event of Ersal took place under the patronage of Dr Ahmed bin Mohammed Al Futaisi, Minister of Transport and Communications.

Abdulmalik Al Balushi, CEO, Oman National Post

Company, said: “We are thrilled to be collaborating with fetchr, and be the pioneers in this region and offer our citizens and residents the latest and best in technology and delivery service.”

Idriss Al Rifai, CEO, fetchr, said: “It’s all about having the logistics company being able to find the customers, we’re changing that paradigm, making sure it’s the job of the logistics company to find you and eliminate the need to stay home for six hours waiting for a delivery.” fetchr is a deliverybusiness and consumer technology app dedicated to change shipping by eliminating the need for a traditional address and by using its patented mobile technology solutions. It has a major presence in Jordan, Egypt, UAE, Saudi Arabia, and Bahrain, and will soon launch operations in Kuwait and Pakistan.

Emirates purchases 40 Boeing Dreamliners worth AED55.4bn at Dubai Airshow 2017 Emirates, one of the world’s largest international airlines, announced a AED55.4bn commitment for 40 Boeing 78710 Dreamliners.

In the presence of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, HH Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates airline and Group signed the agreement with Boeing Commercial Airplanes president and CEO, Kevin McAllister, on the opening day of the 2017 Dubai Airshow.

Sheikh Ahmed said: “Emirates’ orders today will be delivered from 2022, taking the airline well into the 2030s.

Some of these will be replacements so that we maintain a young and efficient fleet, and others will power our future network growth. We see the 787 as a great complement to our 777 and A380 fleet, providing us with more flexibility to serve a range of destinations as we develop our global route network.”

He added: “It has always been Emirates’ strategy to invest in the most advanced and efficient aircraft, and today’s orders reflect that. Today’s announcement also speaks about our confidence in the future of aviation in the UAE and the region.”

McAllister said: “We are excited that Emirates has selected the Boeing 787-10 Dreamliner to power its fleet expansion and future growth. This is an airplane that will set a new benchmark for operating economics in the commercial aviation industry when it enters service next year. Emirates’ endorsement of the 787 Dreamliner extends our long-standing partnership and will sustain many jobs in the United States.”

Emirates’ agreement includes conversion rights to switch the aircraft to 787-9s, offering the airline additional flexibility for its future fleet and global network.

Emirates’ Dreamliners will be delivered in a mix of two and three-cabin class configurations, potentially seating between 240 and 330 passengers. These aircraft will be delivered in phases from 2022 onwards. Emirates is now evaluating engine options for its order.

Emirates is instrumental for American aerospace manufacturing jobs. Applying the US Department of Commerce jobs multiplier (every $1bn in US aerospace exports supports 5,200 American jobs), this new order will create and support over 78,000 additional jobs in US aerospace manufacturing – not only with Boeing, but also with the thousands of other suppliers in the value chain across the US, many of which are medium and small-sized businesses.

The order comes on top of Emirates’ historic purchase of 150 Boeing 777X aircraft equipped with GE9X engines at the 2013 Dubai Air Show, to be delivered from 2020 onwards.

Emirates’ partnership with Boeing spans decades. Emirates is by far the largest Boeing 777 operator on the planet with 165 777s in service today. With this announcement, Emirates will have committed to future delivery of 204 Boeing wide-body aircraft.

Logistics News ME | December 2017 | 61

Save t he dat e

The Month Ahead

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

December

5-7

February

6-7

International Plants Expo Middle East 5-7 December 2017 Dubai, United Arab Emirates Held in association with World of Perishables Dubai, the International Plants Expo Middle East (IPM) is the foremost annual horticultural event in the Gulf region. IPM Dubai is an ideal platform, bringing together professionals from industries pertaining to plants, garden and landscaping, logistics, technology, plant maintenance, floristry, and garden features. Exhibitors and visitors include local and international ones alike, with nearly 3,900 trade visitors received in 2016. The three-day expo is entirely focused on horticulture, fruit and vegetables, with further concentration on the latest market technologies, trends, product safety, engineering equipment, as well as logistics and services for temperature sensitive goods.

Breakbulk Middle East 6-7 February 2018 Abu Dhabi, United Arab Emirates Held under the patronage of the Federal Transport Authority- Land and Maritime, Breakbulk is the only exhibition and conference in the region specifically for the project cargo and breakbulk industry.

More than 60 exhibitors, representing the end-to-end value chain for the transport of oversize cargo, will be in attendance.

The event offers a full conference schedule where key industry members share their knowledge and their experience, such as leaders from Fluor, Petrofac, Saudi Aramco, and Technip. Attendees will have the opportunity to visit exhibits detailing new and proposed projects in the GCC, as well as network with all participants.

62 | Logistics News ME | December 2017

December

12-14

March

20-22

India Cold Chain Show 12-14 December 2017 Mumbai, India Organised by Reed Manch Exhibitions, the India Cold Chain Show is a three-day exhibition being held at Bombay Exhibition Centre in Mumbai. The event will cover areas like cold chain, cold logistics, temperature controlling, refrigeration, storage, distribution, and cold supply chain sectors, as well as the sustainable development of cold chain industry and strengthening the Indian cold chain sector with solar power.

The event focus will be on bringing larger audience for each category, which would ensure even wider audience at the event with special focus to fruit and vegetable growers, besides the variety of industry professional from all over the country.

Logichem 20-22 March 2018 Amsterdam LogiChem is a conference dedicated to supply chain and logistics professionals specifically within the chemical industry.

With a split focus between strategic supply chain topics – identifying metrics, building resiliency, increasing visibility, forecasting, integrated business planning – and the nuanced transportation and distribution challenges – managing capacity, balancing modal strategies, risk management with 3PLs – there is something for everyone, no matter how niche your job title or company. What’s better is this year, LogiChem 2017 will focus on embracing digitisation to drive supply chain optimisation across your entire network. www.cbnme.com