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Industry leaders discuss the ways warehouses are changing especially in an era where every inch matters. With more and more products flooding into the market how do warehouses deal with this effect in a more timely and efficient matter.
February 2019
Contents
Contents
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Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME
February 2019
R e a d a l l t h e l at e s t i s s u e s o n I s s u u
Start 10 | News
Features 22 | Cover 28 | Talking Point 30 | Viewpoint 34 | Blockchain 36 | Freezones 38 | Event Review 42 | Digital 44 | Event Preview 48 | Unsung Heroes
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Regional News
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Ed i to r ’ s L e t t e r
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A note from the editor Kasun Illankoon
CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Sales Director Joaquim D›Costa
Warehouse innovation is on the 2019 horizon and will make a significant mark in the warehousing logistics sector. By 2030, the omnichannel journey of a customer will move further, and the channels might be even more diverse than today. The global market for warehousing and logistics robotics reached nearly $2 billion in 2016 and is projected to exceed $22 billion by the end of 2021. It is without a doubt that those companies who invest in robotics and automation now will be better equipped to thrive in the coming years. Furthermore with the e-commerce market growing DHL’s country manager, Mr. Geoff Walsh, tells us during the last year the industry has witnessed positive growth across the region - retail e-commerce has grown tremendously and according to BMI Research, the e-commerce market in the region will be worth US$ 48.6
billion in 2022, up from an estimated $26.9bn in 2018. As a result of this our February cover story focuses on warehouses and we got a great opportunity to talk to some of the industry leaders from Agility, GAC, Swissport, Swisslog, and Landmark Group about their views on warehouse automation and more importantly the importance of utilising warehouse space efficiently. Also, we discuss with INVAO Chief Technology Officer about the rise of blockchain and how the Middle East is capitalising on it. Plus, we talked to Mr. Devin de Vries, CEO of WhereIsMyTransport, where he discusses how his company’s big data public transport platform has enabled multi-modal journey planning. Kasun Illankoon Editor, Logistics News Middle East
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Regional News
Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Ports
KIZAD launches Polymers Park to capitalise on polymers and plastics export market
KIZAD, one of the fastest growing industrial zones in the Middle East and part of Abu Dhabi Ports, today launched KIZAD Polymers Park, which will form an integral part of the polymers conversion ecosystem in the Emirate. The Park aims to be a major economic driver for the UAE, producing 300-400 kilo tonnes of plastic products a year, creating up to 7,000 new jobs, and contributing $2.5 billion to GDP by 2025. The potential export market for the Park is estimated at $500 million annually, and it will ensure Abu Dhabi is a hub for developing the latest innovations in sustainability and technology in the industry, including new and advanced and polymer technologies, such as composites and 3D printing.
KIZAD’s world-class infrastructure includes a diverse range of plot sizes, excellent utility networks and ready-tomove-in light industrial units and warehousing, while the close proximity of Khalifa Port offers incredible connectivity to markets around the world via major shipping lines. Meanwhile, foreign firms can take advantage of 100% foreign ownership via the free zone with the benefit of full repatriation of profits or benefit from the park’s flexibility and choose a mainland-based license instead. Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said: “Through this strategic collaboration framework with ADNOC, KIZAD is helping Abu Dhabi become a major global hub for polymers conversion, supporting
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industrial diversification across the UAE in support of Abu Dhabi Economic Vision 2030.” Samir Chaturvedi, KIZAD CEO, said: “Abu Dhabi is the ideal location for polymers converters looking to reach both regional and international markets. Tenants at KIZAD Polymers Park will benefit from access to raw materials from regional producers and connectivity to global polymers product demand through KIZAD’s major transport links, which include Abu Dhabi Ports’ flagship deepwater port, Khalifa Port and international airports. “The Park will source energy supplies from a variety of sources at some of the region’s lowest utility rates and support initiatives to commercialise the recycling of plastic waste. We look forward to collaborating
with ADNOC to create a hub where polymers convertors can produce their products faster, cost effectively, and sustainably,” added Samir Chaturvedi Abdulaziz Alhajri, Director, ADNOC Downstream Directorate, said: “ADNOC is proud to collaborate with Abu Dhabi Ports and KIZAD to further strengthen and develop the UAE’s conversion industry. Together, we will work to ensure alignment with the Ruwais Derivative & Conversion Parks and other industrial parks catering to different parts of the polymers value chain, offering investors a wide choice of options, while also building on synergies.” The global plastics and polymers market was worth $611.9 billion last year, according to international consultants. www.cbnme.com
F e b ru a ry 2 019 Cargo
Etihad Cargo awarded IATA’s CEIV certification for pharmaceuticals logistics
Etihad Cargo has become the Middle East’s first carrier to be awarded IATA’s Centre of Excellence for Independent Validators (CEIV) certification for pharmaceutical Logistics. The airline is one of only 16 carriers worldwide to hold CEIV Pharma certification, a regime which demonstrates an airline’s ability to manage high-value, temperaturesensitive shipments for the pharma and life sciences industries. The certifications cover both the airline operations of Etihad Cargo, as well as cargo handling and warehousing
at its hub in Abu Dhabi International Airport. Abdulla Mohamed Shadid, managing director cargo and logistics at Etihad Aviation Group, said: “Etihad Cargo is honoured to become the region’s first carrier to be awarded IATA’s CEIV designation for Pharma. “Since we launched our refreshed strategy in early 2018, a lot of focus has gone towards enhancing our premium product verticals and offering the highest quality and reliability standards to our customers. Today our TempCheck product receives
a major boost with this important certification.” Etihad’s cargo handling subsidiary Etihad Airport Services has also been awarded the CEIV Pharma certification. Said a spokesperson for the airline: “Etihad has undergone a major enhancement programme to its facilities, systems and processes to meet the stringent standards that CEIV Pharma demands, which combines IATA’s Temperature Control Regulations, GDP best practices, and other international benchmarks. “These enhancements include the planned use of
cool dollies at Abu Dhabi International Airport, thermal blankets both in Abu Dhabi and at key stations globally, and a tie up with additional active container suppliers to expand the options of temperaturecontrolled containers across its global network, among other initiatives. Etihad also commenced a major expansion and refurbishment program to its cargo terminal at Abu Dhabi in the fourth quarter of 2018 which aims to add additional temperature controlled space to its existing pharma zone by 2020.
Aramex to sell its 60% stake in joint venture with Australia Post for $20mn which will allow for them to independently make strategic decisions.
Strata Manufacturing is set to collaborate with UAEbased DGWorld Digi Robotics Technologies to implement a new robotics system.
Quick news
As the sole distributor of UD Trucks, Al Masaood CV&E Division displayed the Quester UD truck at the WFES exhibition.
DED-Ajman signs partnership agreement with Ajman Free Zone to integrate and promote joint cooperation.
Logistics News ME | February 2019 | 11
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Regional News
Sustainability
Hactl’s International Forklift and Pallet Building competition focuses on safety
Hactl’s renowned International Forklift and Pallet Building Competition has once again taken place at the company’s massive SuperTeminal 1 facility in Hong Kong. It was the twelfth year of the contest, which is a key element of Hactl’s ongoing Safety at Work programme. Nine teams took part in this year’s competition: Air Canada Cargo, Air France Cargo, IAG Cargo, Air China Cargo, Cargolux, Japan Airlines, KLM, Nippon Cargo Airlines and Qatar Airways. Contestants travelled from around the world. Competing teams were judged on their ability to manoeuvre a loaded forklift truck through a complicated, simulated warehouse course, delivering cargo to team members who then had to load as many items as
possible, in compliance with ICAO and IATA international standards relating to dangerous goods, heavy cargo and overall build integrity. All tasks were performed against the clock. The Forklift Competition was judged by Steve Hu (Occupational Safety and Health Council), and eight other expert judges. Winners were Air Canada Cargo, while second place went to Japan Airlines, third place to Nippon Cargo Airlines and fourth place to IAG Cargo. The Pallet Building contest was judged by Bob Rogers (ULD Care), and two industry experts. Winners were Air China Cargo, while second place went to Air France Cargo, third place to Qatar Airways and fourth place to KLM.
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In keeping with the customary fun spirit of the competition, an award was also given to the loudest cheering supporter teams ; winners were Japan Airlines with IAG Cargo and Nippon Cargo Airlines taking second and third places. The competition was followed by a stunning, awardwinning Chinese drumming performance, awards presentations and lunch for all participants. Says Hactl Chief Executive Wilson Kwong: “We were delighted to host this unique competition once again, and to welcome so many customers and friends to Hong Kong. We congratulate all the winners, and thank all those whose participation and support made the event possible.
“Mixing machinery and people in a timeconstrained environment like air cargo handling always introduces risk. Hactl’s annual competition puts a light-hearted, friendly and competitive face on a serious message: that safety in the air cargo workplace is paramount. Honing forklift driving skills is a key aspect of this, and was clearly evidenced by the excellent performance of the competitors this year. “In line with Hactl’s long-standing policy of industry leadership and best practice, we are committed to protecting our own workers, and hope that our competition will once again help to focus industry attention on this vitally important topic.” www.cbnme.com
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Agility opens regional logistics and distribution hub in Bahrain
Agility, a leading global logistics provider, opened a 28,000 square meter facility in Hidd to expand its warehousing, freight, transport and specialty capabilities and serve as a regional logistics and distribution hub. The new facility supports contract logistics with ambient, chilled and frozen storage, as well as solutions for high-value cargo. It will offer secure records management and storage and turnkey logistics for Bahrain-based manufacturers in the fast-moving consumer goods industry. Essa Al-Saleh, CEO of Agility Global Integrated Logistics, said: “Bahrain is one of our key operational markets in the Middle East, offering high-quality infrastructure and a diverse community of regional business players. With an expanding population in the GCC and an increase in demand for integrated logistics services, our investment in Bahrain will help us better serve customers in the region. The opening of our new facility is a testament to our commitment to this promising market.” The new facility, which has storage capacity of 17,000 pallet positions, represents a $10 million investment by Agility. It follows expansion of the company’s overland fleet in Bahrain to support its regional operations. A recent World Bank report estimates that Bahrain’s economy will grow by 2.6 percent in 2019, driven by higher oil production and mega projects. In 2017, the total value of foreign direct investment (FDI) reached $733 million, with the share of transport and logistics being 10 percent. Mr. Khalid Al Rumaihi, Chief Executive of the Bahrain Economic Development Board, said: “Bahrain offers the lowest setup and operating costs for a logistics business with cost savings of 30 to 40 percent compared to the rest of the GCC. This has encouraged several companies to utilize our ports and free zones in order to set up businesses and access the Gulf Cooperation Council, and the Arab world.”
Water
ZonesCorp and Berain Water unveil plans to build AED138mn water bottling plant
ZonesCorp, one of the largest developers of purpose-built economic zones in the UAE, announced a new agreement with Saudi Arabia’s Berain Water to build an AED138 million manufacturing facility, 36,000-square-metre water bottling plant in the food industry zone of Al Ain Industrial City. The food manufacturing sector in Abu Dhabi has witnessed remarkable growth over the past few years as a result of the booming domestic market and growing exports. Boasting strong logistics networks and a strategic location, the emirate has built state-of-the-art capabilities in producing competitive and valueadded products, emerging as one of the most important food manufacturing and processing hubs in the region. Speaking on the occasion, His Excellency Saeed Eisa Mohammed Al Khyeli, Director General of ZonesCorp, said: “The UAE
and Saudi Arabia enjoy strong historic relations, and our latest partnership with the Saudi company Berain Water testifies to the strength of those ties. We are pleased and proud that Berain Water has chosen ZonesCorp as its partner, and look forward to a long and successful relationship.” For his part, Eng Mahdi Nasser Al-Qahtani, CEO of Berain Water, said: “We are happy to announce the investment of AED138,000,000 in a water bottling facility in Al Ain Industrial City with the complete support of the Abu Dhabi government and ZonesCorp.” Set to commence operations in Q1 2020, the plant will produce around 70,000 200-600 ml bottles or 27,000 1.5-litre bottles per hour. The facility will also create 424 employment opportunities in manufacturing, marketing, distribution and sales.
Logistics News ME | February 2019 | 15
Regional News
Gulftainer Launches Sea Cargo Clearance Service: S.P.O.T
Gulftainer, the world’s largest privately owned independent port operator, based in the UAE, today unveiled the latest addition to its portfolio in the UAE – Sharjah Port of Trade (S.P.O.T) services, a new strategic sea cargo clearance offering. S.P.O.T offers the fastest transit times and lowest service costs to deliver cargo north of Al Barsha area, as well as end-to-end connectivity across the UAE. Its strategic location, just 10 minutes from the E311 highway and 15 minutes from the E611 highway, enables a reduction of delivery costs from port to door by as much as 80 per cent. Fred Castonguay, Group Chief Operating Officer at Gulftainer, said: “Today we are taking further steps in transforming our business on a structural level and simplifying how we go to market, allowing us to provide more need-based solutions and greater convenience to our customers. This new offering is set to establish new benchmarks in Gulftainer’s current operations portfolio. In addition to its highly accessible strategic location, customers now have the flexibility to complete inspections in their warehouse via a phone call and easily clear their cargo.” Several shipping lines have already expressed their interest to benefit from the strategic placement and value-added offerings of S.P.O.T and secure vessel calls at the Khorfakkan Cargo Terminal (KCT). S.P.O.T will serve as an inland extension of this seaport terminal.
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WFES 2019 unlocks full potential of innovative and disruptive technologies
The World Future Energy Summit (WFES), a key enabler of Abu Dhabi Sustainability Week (ADSW) 2019, will shape the sustainable development agenda by outlining key challenges and the promise of emerging, innovative and disruptive technologies as solutions to effect paradigm changes across industries, lives and the environment. Held under the patronage of His Highness Sheikh Mohammed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, ADSW 2019 will cover the subject of ‘Industry Convergence: Accelerating Sustainable Development’ to examine how industries are responding to the global economy’s digital transformation, which in turn is generating new opportunities to help solve global sustainability challenges. ADSW is hosted by Masdar in partnership with Department of Energy (DoE), Abu Dhabi, the event’s principal partner. As one of the main highlights of ADSW, and a platform for action based on the week’s policy priorities, the 2019 edition of WFES takes place from 14-17 January, under the theme, ‘Embracing
the Future, Welcoming Disruption’, emphasizing its sustainability catalyzing role. Eng. Abdullah Mohammed Al Khumairi, DoE’s Executive Director of Strategic Affairs, said: “Embracing advanced technologies is a cornerstone of the Department of Energy’s efforts to enhance efficiency within Abu Dhabi’s energy sector, and increase its contribution to the national economy.” In the context of targets outlined by the United Nations COP 21 Paris Agreement and the UN’s Sustainable Development Goals, WFES complements these global efforts by helping to shape the sustainability agenda and empowering a private sector, bottom-up approach to accelerate commercially driven solutions that tackle interconnected resource and climate challenges. A central aim of WFES is the encouragement of youth interest in sustainability issues. With the younger generation now accounting for roughly 1 in 4 people in the world today, WFES aims to nurture a new generation of ‘sustainabilists’ by encouraging them to drive innovation across the entire spectrum of energy, water, waste, renewables, green buildings and transportation. www.cbnme.com
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Quote As a result of increasing e-commerce, markets in Europe, the US and Asia are registering continuous economic growth and represent significant potential for crossborder express shipping” DHL Express CEO, John Pearson, on strong trends for the global express market.
Top 5 online
1
KIZAD launches Polymers Park to capitalise on polymers and plastics export market
2
Al Masaood CV&E division participates in WFES’s Eco-Waste Exhibition 2019
3
RTA Dubai win awards in global benchmarking and innovation
4
Strata to optimise manufacturing operations with advanced automated drilling system
5
Aramex to sell its 60% stake in joint venture with Australia Post for $20mn
Intersec
World Premier of TIGON specialty firefighting truck revealed at Intersec 2019
Spanning 60,000sqm Intersec 2019 covers the six show sections Fire & Rescue (431 exhibitors), Commercial Security (375 exhibitors), Safety & Health (142 exhibitors), Information Security (120 exhibitors), Homeland Security & Policing (90 exhibitors), and Physical and Perimeter Security (54 exhibitors). The dedicated showpiece event is often used as the annual platform for hundreds of exhibitors to launch their latest products and solutions for the global security, safety, and fire protection industries. Rosenbauer from Austria, one of the world’s leading manufacturers of systems for firefighting and disaster protection, was among these
this week, and unveiled TIGON, dubbed as a ‘radically designed, extraordinarily allterrain specialty firefighting vehicle for industrial use.’ “The special vehicle combines proven offroad expertise from Tatra and optimally designed drive components with outstanding extinguishing technology from Rosenbauer,” said Christian Mairzedt, Senior Vice President and Head of the Middle East and North Africa at Rosenbauer. “The Rosenbauer TIGON is one of the most allterrain, variable, and longlasting industrial vehicles worldwide. Its powerful performance makes it one of the most extraordinary fire fighting vehicles of our time.”
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Logistics News ME | February 2019 | 17
Regional News
Partnership
Equitativa signs agreement with affluent partners to launch “Belt & Road REIT” in Eurasia
Equitativa, the largest REIT manager in the GCC and manager of Emirates REIT, announced that it has entered into an agreement with Hong Kong-based Affluent Partners Holdings Limited to launch a new real estate investment trust (REIT) that will invest in property assets along the new Eurasia trade corridor of China’s Belt & Road Initiative. An official signing ceremony was held today at Equitativa’s offices in Index Tower in Dubai between top executives from both groups, to mark the launch of the initiative, fittingly named “Belt & Road REIT”. The Affluent Partners Holdings
Limited’s team flew to the UAE specially to celebrate this new collaboration. The agreement aims to create favorable investment opportunities for shareholders in these emerging markets, by setting up one or more REITs along the Eurasia countries. Affluent Partners is mainly engaged in operating strategic investments and financial services with a large network in China and across Asia. Affluent Partners Holding Limited will function as an advisor and will work closely with Equitativa which will be setting up the new REITs. Affluent Partners Holding
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Limited will be facilitating the implementation of the REITs, referring clients for investment and identifying assets to seed the REITs. Equitativa or its affiliates will be appointed as REIT manager and be responsible for establishing and managing the REITs. Sylvain Vieujot, Group Chairman of Equitativa, commented: “The establishment of the ‘Belt & Road’ REIT and the collaboration with Affluent Partners is very exciting for us and marks a new chapter for Equitativa in Asia and emerging markets. Working with Affluent Partners will
increase our fund raising capabilities in Asia and gives us the opportunity to identify more assets that can maximise the value for our shareholders.” Stephen Yuen, Chairman of Affluent Partners Holding Limited, said: “Affluent Partners is delighted to be working with such an experienced REIT Manager on the Belt and Road REIT initiative. We have observed the quality of the assets managed by Equitativa and have a very positive outlook for this new collaboration which will further entrench the excellent relationship between businesses in the UAE and Asia.” www.cbnme.com
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The data
transport
RTA Dubai win awards in global benchmarking 6,897,169 and innovation Dubai International Airport
Customers served in November
237,059 tonnes of airfreight was handled at DXB in November
Dubai’s Roads and Transport Authority (RTA) has scooped two reputed international awards amid high local, regional and global competitors. The first was the Global Benchmarking Award presented by the Global Benchmarking Network (GBN) in collaboration with the European Foundation for Quality Management (EFQM) and Asia Pacific Quality Organisation. The second was the International Innovation Award organised by Enterprise Asia and is considered one of the coveted Asian awards in this field. HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of RTA, was delighted with the winning of these two global awards presented by two highly reputed international organisations. The achievement echoes the efforts put by RTA in
innovation & benchmarking; two key drivers of development and corporate excellence. Al Tayer called for mustering more efforts to win more of these awards to enhance the image of RTA at the regional and global levels. Al Tayer made these remarks upon accepting the awards from Nasser Bu Shehab, CEO of Strategy & Corporate Governance, in the presence of Amair Saleem, Director of Knowledge & Innovation, and a host of concerned staffs of RTA. “For the Benchmarking Award, RTA has made a visual presentation spotlighting the benchmarking experience of Strategy & Corporate Governance Sector and how it had leveraged the corporate performance across RTA. The competition for the Award was very fierce with a cohort of leading local, regional and global entities,” commented Bu Shehab.
“As for the International Innovation Award, the RTA is considered the first entity to win this award first time out. The Award is granted to public and private organisations, which had made intensive investment in innovation in a way translating into excellent achievements and leadership in the business sector. RTA has won this Award for its project: RTA’s IDEA Management System is Our Innovation. The Project comprises three elements: Idea Clinic, Fast Track and the Explorer. Several entities from all over the globe competed for the Award. As such, obtaining it is a quantum addition to RTA’s knowledge & innovation record. It also contributes to achieving RTA’s 7th Strategic Goal (Advance RTA); which corresponds to the Dubai Government drive to empower Dubai to play a pioneering role at all levels.
The top three cities were London (275,141 customers), Mumbai (221,812) and New Delhi (183,680) who travelled to Dubai International Airport in November
5.8mn bags passed through the airport’s 175 km long baggage system.
45%
Wait times were reduced by 45% in November Provided by Dubai International Airport (DXB)
Logistics News ME | February 2019 | 19
Regional News
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Ports
King Abdullah Port increases level of support for Breakbulk Middle East 2019 For the second consecutive year, King Abdullah Port extends its support to Breakbulk Middle East 2019. For the first time, the upcoming fourth annual edition will be held under the patronage of H.E Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of Federal Transport Authority for Land and Maritime, a remarkable feat which aligns with the event’s aim to further solidify its stance as the leading GCC event for the project cargo and breakbulk industry. The two-day conference and exhibition taking place on the 11th and 12th of February at the Dubai World Trade Centre in Dubai, will tackle topics to aid project cargo specialists in seizing regional opportunities and constructing effective project plans. Furthermore, BBME 2019 will play a crucial role in enhancing maritime and all related industry sectors as global leaders and toplevel experts will gather to discuss existing issues and potential solutions. Rayan Qutub, CEO of King Abdullah Port, highlighted the strategic importance of the conference and exhibition, and added: “The maritime and shipping industries account for 90% of the entire global trade market, which makes Breakbulk Middle East crucial to our region’s continued development.” “The port has proved particularly successful in
attracting a larger portion of the breakbulk sector of the industry, which provides us with further opportunity to grow and solidifies our global maritime competitiveness. We are estimating a further 15% increase in future volume, particularly involving steel, timber and cement cargo, and our partnership with specialist port operators and steel handlers AMSteel has already seen us increase our one-day cargo record to an impressive 27,000 t.” Qutub continued: “The efficiency of King Abdullah Port has also helped create an extremely vibrant hub which has stimulated export rates in Saudi Arabia. This is already making a positive impact on our national economy and will continue to do so for many decades ahead.” Given that the outlook for the coming five years in terms of gross domestic product development and the growth of imports and exports is considerably better than it was during the 20122016 period, it’s the time to capitalize on this positive projection. The UAE seems to be aware of this matter as they have been a key player in driving offshore investment in the Middle East region, securing an approximate US$66 billion in regional maritime sector investments.
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Partnership
Lagardère Travel Retail selects GAC Dubai as contract logistics partner in the Middle East
Lagardère Travel Retail has appointed GAC Dubai’s Contract Logistics team to handle a range of goods sold at Duty Free retail stores at airports in Saudi Arabia and the future Abu Dhabi Midfield Terminal Complex (MTC). Under the multi-year agreement signed by the two companies commencing 1 March 2019, GAC Dubai will take care of the port haulage, receipt, storage, pick/pack, transportation, customs clearance and Federal Tax Authority documentation for goods including chocolates, fine foods, fashion, beverages, electronics, cigarettes and cigars, personal care, perfumery and make-up. The companies expects to manage approximately 17,000 SKUs (stock keeping units) across a variety of product types and will also handle the formalities required for the storage and handling of some categories of beverages on behalf of Lagardère Travel Retail. Part of GAC Dubai’s contract logistics facility at Dubai South will be dedicated exclusively to the
account, and a G + 5 interlock mezzanine deck with multiple aisles and shelves is being constructed for better product segregation and picking. Approximately 3.5 million picked units of goods are expected to be handled by GAC Dubai every year under the contract . Ronald Lichtenecker, GAC Dubai’s Managing Director, says: “This marks the beginning of a long-term relationship with a world leading duty-free operator, which is now expanding in the Middle East. It is an excellent fit with GAC Dubai’s longterm vision for its contract logistics business to move into specialised storage and handling operations.” Vadim Motlik, Lagardère Travel Retail’s UAE CEO, says: “We are delighted to be starting this new partnership with one of the strongest logistics operators in the Middle East. It will enable us to reinforce the fluidity and reliability of our regional supply chain, which is key to delivering excellent service to our customers.” www.cbnme.com
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Evolution of Warehouses Industry leaders discuss the ways warehouses are changing especially in an era where every inch matters. With more and more products flooding into the market how do warehouses deal with this effect in a more timely and efficient matter. The reliance of warehouse space cannot be understated but as more and more industries are trying to reduce the amount of space they utilize, can the same be said about the companies who provide warehouse services? What goes on behind the doors of this facility is a key element in order fulfillment. How employees move about the warehouse, how items are picked and packed, and how machines work side-by-side with their human counterparts are all part of the challenge of optimizing order fulfillment. And the challenge is even greater in 2019 as e-commerce continues to grow and the consumer demand trends faster and faster. Fulfillment is now a complex assembly process, similar to a car production line. In any given warehouse, there are now thousands of different items that can make up a single order. There are some basic but important principles involved in utilizing warehouse space effectively. The warehouse design is one part of the greater puzzle, but most new businesses are not in a position to build their warehouse from the ground up. This leaves them with making the best use possible of the warehouse that they have managed to lease or buy. Most companies would like to maximize the operation of the warehouse, either by streamlining the placement and picking of goods, reducing the time goods are stored in the warehouse, or automating as much as possible to minimize labor costs while improving accuracy. Companies can also reduce their costs and improve the efficiency of their warehouse by maximizing space utilization, ensuring that it is possible to store as many items as
possible in the most optimum space. The cost of setting up a warehouse — getting the equipment, investing in labor and engineering, construction and permits — is all quite costly. These costs can be avoided today with simple upgrades to existing spaces. For example, warehouses used to have zones for different products: Jewelry, clothing, etc. Now it’s basically been shifted to have a mix of products in one place, reducing movement. “Warehousing has undergone significant change over the years. Starting with manual processes written down on paper, the warehouse of today focusses on automated processes. Not only does this increase production
efficiency, but it also permits companies to focus their attention on other business operations and frees up time,” said Mr. Alain Kaddoum, General Manager of Swisslog. Warehouse Trends The demand, from e-commerce growth to lastmile logistics, combined with an abundance of institutional capital in the global market, are the forces behind the increase this year. “The warehousing sector has experienced a recent revival due to the UAE government’s investments in developing world-class infrastructure. These investments which include the expansion of Jebel Ali Free Zone and the
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development of Dubai Logistics city have attracted a huge number of key global players in the industry including ourselves to the region,” said Mr. Albert Asool, CEO of Agility. Furthermore, the logistics sector continues to be impacted by structural changes, such as online retailing, that have transformed global supply chains, which was pointed out by Mr. Hendrik Leyssens, Head of Global Operations Cargo, Swissport. “Swissport itself invests to make sure the infrastructure is right for our company and our operations. Additionally, due to a fragile economy and ever-changing market conditions, we need to make sure that warehouse space is flexible enough to accommodate different types of business and goods.” Embracing Technology For newly established retailers and fulfillment businesses, the change has been about embracing technology — for example, developing cloud-based warehouse management systems that integrate directly with online stores. There are all kinds of new technology entering the warehouse, from the software for management and order processing to ro-
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botic pickers and packers. There are lighter weight conveyers that are more flexible, and guided vehicles that travel the aisles and reduce labor costs. Mr. Kaddoum points out that industry solutions like AutoStore, CarryPick, PowerStore, and Vectura would help improve productivity. “An example is the retail and e-commerce company Xenos, which improved its pick performance by more than 50% and saved 3-4 hours shipment time per delivery per store after the automation of its distribution center,” points out Mr. Kaddoum. Traditional techniques of warehouse management are no longer as beneficial as they once used to be, and omnichannel orders mean that warehouses should be ready with the right product on-hand, ready to ship almost as soon as the order is placed. More and more businesses are starting to produce goods solely on demand and ship them directly to their destinations. “To boost efficiency along the entire supply chain means rethinking business models and switching to innovative, data-based technologies and solutions. That’s where at Swisslog, for example, we have come up with the
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QTainer pop-up warehouse concept – that will make its debut at LogiMAT 2019. It is based on the observation that Industry 4.0 will prompt manufacturers to transition to demand-based production and deliver directly to the destination. Furthermore, the growing volumes in e-commerce require new concepts for city logistics to meet the growing concentrations of population in large cities. Both trends have an enormous impact on logistics processes,” said Mr. Kaddoum. Mr. Leyssens tells us about how Swissport has moved towards more automation as well, “With regards to warehouse automation, we currently have several warehouses with automated processes in the network. Additionally, we are currently renovating our warehouse in Brussels and building a new one in Frankfurt, which will include a highly automated warehouse process. Besides warehouse automation, Swissport is digitising the office processes as well. “We’ve launched and implemented a selfservice kiosk for cargo in several locations that reduce waiting times for forwarders and truck drivers, and enhances our service offering, whilst digitizing part of the supply chain.” On the flipside though, Mr. Richard Potts, Distribution Center Manager, GAC Dubai, tells us though, in the absence of a very fast moving FMCG contract or a warehouse operation associated with a manufacturing process,
Hendrik Leyssens, Head of Global Operations Cargo, Swissport
Richard Potts, Distribution Center Manager, GAC Dubai
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Alain Kaddoum, General Manager, Swisslog Middle East
Albert Asool, CEO Agility Dubai
it is often difficult for a warehouse operator to justify investments in large-scale automation. “Unless the operator has a customer who is prepared to commit to a long term contract or the customer establishes their own facility for a 3PL to operate, it is difficult to make a compelling case for automation considering the relatively low pallet volumes and labor in the Middle East,” said Mr. Potts. “However, in terms of unit customisation, which we see a lot of in the region, it is possible to automate VAS processes with a relatively fast payback as a single pallet can run to thousands of pieces, each to be ink-jetted, labeled or packed. With an automated confectionary bagging machine, we were able to reduce our headcount in a particular area by 50%. We are also looking into automating another packing operation for a separate FMCG product.” “Nevertheless, deployment of smart technology has facilitated better management of individual productivity with fewer errors and quicker stock reconciliation while allowing us access to data which we use to identify and ad-
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dress bottlenecks,” added Mr. Potts Mr. Mihin Shah, Chief Supply Chain Officer, Landmark Group said that their new warehouse/distribution facility in Saudi Arabia is utilizing the latest robotic technology to improve their overall efficiency, “This new center features autonomous driverless vehicles, (AGVs – both in form of forklifts and VNA cranes) that move our products through the distribution center with minimal manual intervention, whilst also ensuring an ergonomically safe working environment for our team members. With the retail industry currently being led by technological transformations, warehouse automation and smarter
inventory choices are essential to long-term growth and meeting customer needs quickly.” E-commerce effect on warehouse space The retail landscape, as we know it, has been changed by the rise of e-commerce and e-commerce will only become more prevalent going forward. According to Statista, in 2017, retail e-commerce sales worldwide amounted to UAS 2.3 trillion, and e-retail revenues are projected to grow to USD 4.88 trillion in 2021. With more than 50% of the world’s population is settled in urban centers, online ordering allows customers to
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Landmark Group’s New Distribution Centre
avoid traffic jams and long wait times at the cash register, especially in urban areas. The Middle East e-commerce market is rapidly growing, primarily driven by the UAE and is expected to grow by 16.4 per cent over the next few years, according to a latest report by BMI Research. Furthermore in 2017, Dubai launched CommerCity, the first free zone dedicated to e-commerce in the MENA region which is strategically intended to promote Dubai’s position as a leading platform for international e-commerce. Floor space in warehouses is incredibly valuable since any space not properly utilized could have been used to store more
product. As such, the right equipment and workflows are incredibly important for productivity and warehouse capacity. Many warehouses function on multiple levels, requiring that materials or products be moved from one level to another safely and efficiently. There are many options that can accomplish this ranging from elevators to spiral conveyors to manual employee labor. “E-commerce in itself is changing the future of warehousing. Traditionally when a business sells a physical product an efficient warehouse is linked to the success of their operation. Before the internet age warehousing was the same across many industries.
The rise of e-commerce now has led to technological advancements as well as operational changes which means a lot of business will have to rework their business models in order to remain competitive,” said Mr. Albert Asool, CEO of Agility. “The “uberization” of warehousing – ondemand warehousing – is an emerging way of buying warehousing services and space on a pay-per-use basis. This method of warehousing gives customers more choice and flexibility over the location, cost, and supplier, either as a complete substitute for owning warehouses or as partial replacements when new warehousing locations become necessary.” The biggest disadvantage, as pointed out by Mr. Asool, that logistics companies would face when adopting on-demand warehousing is that they’re exposed to fluctuating market rates for space, which is often overpriced in locations near ports, airports, rail spurs, major roads, and urban centers. GAC recently opened up their own warehouse facility in Dubai South and Mr. Potts points out what they have done to ensure this facility allows for maximum productivity. “Firstly, the warehouse was designed around the racking solution and not vice versa. This allowed us to maximise the pallet footprint of the racking within the chamber, avoid dead space around the perimeter and prevent wastage through inefficient citing of steel columns in racking flues. Secondly, we invested in racking. Racking was designed with 3.6m beams to accommodate either four euro pallets per bay or three standards, rather than the normal two standard pallets per bay, giving us the most flexible solution. Finally, considering the high cost of land, we maximised the height of the building. By moving away from traditional ground plus six racking configuration to ground plus eight, we were able to increase the storage capacity by 28% while increasing the build cost by only 12%.” Regarding the size of the warehouse, what matters is how efficient it is, and not how big or small it is. “Reports indicate that when a company has between 80% and 85% of space utilisation, efficiency typically drops from a movement and storage perspective; pallet movement becomes very restricted. However, with the newest technologies available, even a smaller warehouse can run extremely efficiently,” said Mr. Kaddoum.
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Op i n i o n
Courier Express Geoff Walsh, UAE’s Country Manager for DHL Express gives us an overview of why DHL has positively contributed to the success of e-commerce companies During the last year, we have witnessed positive growth across the region - retail e-commerce has grown tremendously in 2018 and according to BMI Research, the e-commerce market in the region will be worth US$ 48.6 billion in 2022, up from an estimated $26.9bn in 2018. We are expecting this to continue throughout 2019 as cross border e-commerce presents strong growth opportunities that are waiting
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to be tapped. With the proliferation of online trade, a product in one corner of the world today is now easily accessible to customers at the opposite end in just a few clicks. This has allowed online merchants to access markets and customers from around the globe. As we are getting closer to EXPO 2020, the logistics and supply chain segment is expected to strengthen even further and cement the
UAE’s position as a global leader in logistics. DHL Express already has a strong foothold in the market and a growing network to support new online operators entering the market. In addition to B2C delivery, the B2B market for logistics services for industry sectors such as automotive, life sciences, retail, healthcare and banking is also growing – and represents a growing business segment for us.
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The Middle East e-commerce market is rapidly growing, primarily driven by the UAE and is expected to grow by 16.4 per cent over the next few years, according to a latest report by BMI Research. Nearly half of all consumers in the UAE – at 49%, prefer to shop cross-border, based on preferences such as availability, affordability, convenience and security, according to the recent survey conducted by PayPal. The growth of e-commerce is brightening the outlook for logistics companies, who play an important role in serving the sector with their fast-paced service regardless of the distance. For the rapidly growing e-commerce market, DHL has introduced a variety of innovative services which are being developed to meet needs that are beneficial to e-commerce businesses, end customers. In October 2017, Dubai has launched CommerCity, the first free zone dedicated to e-commerce in the MENA region which is strategically intended to promote Dubai’s position as a leading platform for international e-commerce. The 1-million square foot e-commerce free zone provides technology-enabled warehouses and facilities for manufacturers to store and ship their goods to global markets. It’s all an effort to promote e-commerce as a driver of economic growth – a sector that’s already expected to hit US$4.6 billion by 2022. This has created fresh opportunities for DHL Express as we play a crucial role in driving the e-commerce sector and we are working closely with government partners to support continuous growth. As global brands are investing in the UAE, DHL’s experience and capabilities will enable customers to grow their sales and increase their shipments from this region. A dedicated Free Zone with the right regulatory framework, cost effective warehousing capabilities and the right logistics partners is an operational dream for every global brand. For the growing e-commerce market, we have launched a variety of innovative services that are being developed to meet the needs of e-commerce start-ups, businesses, and customers. Our global strategy 2020 sets our strategic priorities for the coming years and underscores our goal to become the company that defines the logistics industry. DHL Express has been driving innovation through various initiatives across the globe and in the Middle East by leveraging the latest innovative technologies to deliver
more efficient customer benefits through an enhanced shipping experience and improved access to information. With regard to the GCC region, we expect the logistics industry to expand and grow, thanks to the various initiatives such as UAE Vision 2021 which aims for the country to rank among the world’s top 10 nations on the logistics performance index. The GCC e-commerce market is rapidly growing, primarily driven by the UAE and KSA. GCC e-commerce was worth $5.3 billion, contributing approximately 0.4 percent to the region’s GDP and is expected to quadruple to $20 billion by 2019 according to market research firm Frost & Sullivan. DHL has invested heavily across the region and adopted the latest technologies to support growth and ensure that we remain the undisputed market leader. In 2017, we have launched a US$18 million expansion to our logistics facility at Dubai International Airport (DXB), in addition, we have also invested in developing a new advanced facility center at Dubai World Central (DWC) to support the region’s growing market, and the total project commitment is US$5.02 million which is planned to open in Q2 of 2019. When the UAE officially launched the Authorised Economic Operator (AEO) program, we were the first logistics company to get Authorised Economic Operator (AEO) certification from Dubai Customs. Robust internet and mobile penetration across the region has played an active role
in enabling the growth of e-commerce. The e-commerce market in the region will be worth US$48.6 billion in 2022, up from an estimated $26.9bn in 2018. DHL aims to support local e-commerce startups by providing them with tailor-made solutions that will allow them to easily address potential global consumers, therefore improving their e-commerce proposition within the current market. Using advanced market intelligence tools, we can quickly identify shopping sites that receive traffic from international locations, identifying potential sales outside of the seller’s core market. DHL can compare website engagement metrics and suggest service enhancement via the addition of a cross-border express delivery option. DHL has developed an ecosystem to provide efficient and effective services to e-commerce companies by adopting the latest technologies such as artificial intelligence, blockchain, digitalization, Robotics Process Automation (RPA) etc. We have developed tailor-made solutions and bespoke services to support e-commerce companies that will allow them to easily address potential global consumers, therefore improving their e-commerce proposition within the current market. DHL’s expertise and reputation is built squarely on our ability to efficiently enable cross-border e-commerce – especially last mile delivery, adhering to international regulations, managing paperwork and leveraging local knowhow.
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Viewpoint
Demand for AI in Supply chain Ralf Seifert, Professor of Operations Management at IMD and Richard Markoff, Supply Chain Researcher and Consultant, discuss what are the hurdles to achieving a smarter supply chain Ralf Seifert, Professor of Operations Management at IMD
As Industry 4.0 and Supply Chain Digitalization continue to draw attention from companies and suppliers, it comes as no surprise that the field of demand planning is evolving as the next potential field for innovation. Tech giants like Amazon and Microsoft have announced Artificial Intelligence (AI) tools for improving demand planning, and several consulting companies are promoting their skills to bring AI to companies’ demand planning processes. In fact, a recent survey by the Institute of Business Forecasting (IBF) identified AI as the technology that will have the largest impact on demand planning in the next seven years. It’s not hard to see the fit between AI and demand planning. Demand planning involves lots of number crunching, data analytics and is repeated cycle after cycle. It is tempting to imagine that a self-learning AI application could do at least as good a job as a planner. Taking a closer look reveals that there are serious challenges to AI successfully penetrating the demand planning market. These challenges are not so much technical as they are managerial. However, even if AI does not become a significant contributor to demand planning accuracy, addressing these challenges can only improve a company’s demand planning performance. AI needs data The most striking challenge to applying AI to demand planning is in the availability and accuracy of data. Internally, companies already struggle to maintain accurate data, starting with the most basic element of all, the product code. Ever-accelerating launch programs and shrinking product lifecycles mean more product churn than ever. One corporate head
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of planning that we spoke to said: “Let’s show we can correctly link product codes in substitutions before thinking about AI.” In order to build a correct demand plan, one-off events have to be identified and accounted for, such as service issues and onetime promotions. For an AI application to learn from these events, they would need to be fully understood and coded, which is no small effort. There is also external data in the form of market intelligence that would need to be acquired and leveraged, such as competitor actions, customer behaviors, and trade disrup-
tions like price changes and sell-out data. Yet many companies today struggle with their digital culture and level of savviness. In speaking to large multinationals that have made serious investments in demand planning tools, almost all of them face the same struggle: their planners prefer to build demand plans in Excel and upload them into the expensive, integrated tools they must use to propagate their demand plans. The usual explanation for this resistance is that the tools don’t have enough of the internal and external contextual data to build pertinent statistical plans.
A recent survey from Supply Chain Quarterly revealed that Excel is by far the most common analytical tool used by supply chain planners, with advanced tools like supply chain control towers used by about 60% of companies. This matches our anecdotal observation that about half of companies use an advanced planning system (APS). The absence of data, resistance to using the existing suite of statistical tools, and level of digital savvy represent non-negligible challenges to the deployment of AI-enabled demand planning.
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Viewpoint
AI in Sales and Operations Planning (S&OP) Demand Planning is a critical activity in the Sales and Operations Planning (S&OP) process. The objective of S&OP is to obtain alignment from all actors in the company, ideally ensuring that Operations mobilizes its resources to supply what the business needs to meet its financial goals, while also ensuring that the financial goals account for the current operational constraints. A fundamental pillar to the S&P process is the notion of ‘one set of numbers’, which means that operations and finance are working off a shared understanding of the forward planned activity for the business. The primary drivers for this goal are that no market opportunities are missed, and operations is focused on the true business needs. By tying the financial plan to the operational plan, general managers are driven to implicate themselves, along with their commercial and marketing teams, in the demand planning process in order to have the most viable demand plan possible. This implication is critical, as it helps provide the demand planners with the valuable external market intelligence mentioned earlier. Just as importantly, from a managerial perspective, having one set of numbers means that any effort by general managers to manipulate the demand plan would also change the financial pan, which they loathe to do as it constitutes their commitment to executive leadership. Consider the connection of S&OP to the deployment of AI for demand planning. A successful AI-generated demand plan would also have to be linked to the ‘one set of numbers’ principle. Should it be otherwise the necessary external data and market intelligence would be difficult to obtain, as general managers would return to old reflexes of considering the demand plan outside their sphere of interest, and perhaps again adjust the numbers to their subjective tastes. But maintaining the tie between the AIgenerated demand plan and the financial plan would forcibly imply asking general managers to allow their financial projections to be generated by the AI application. This is a consequential management hurdle for supply chains to overcome. The introduction of AI-generated demand plans would bring with it what is termed the ‘explainability’ problem of AI. This term describes the reluctance managers have to us-
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Richard Markoff, Supply Chain Researcher and Consultant
ing AI applications that seem like a black box where the reasoning and logic used to obtain the results are difficult to explain, even if they are of high quality. The explainability problem is currently a tangible hurdle for successful AI deployments. Our research suggests very few companies today have truly achieved the ‘one set of numbers’ practice. The benefits of a more accurate AI-enabled demand plan that places a serious obstacle to implementing S&OP through the explainability problem does not seem like a necessarily winning trade off. In other words, are companies better off having (perhaps) a highly accurate AI-generated demand plan that does not reflect the true business activity, or a slightly less accurate non-AI generated one that matches the business ambitions? This doesn’t preclude the use of AI for demand planning, but it does suggest that it be considered only for companies that achieved very high S&OP maturity and integration be-
tween the operational and financial planning activities. AI as performance lever The challenges to applying AI to demand planning shouldn’t be seen as insurmountable hurdles. Rather, AI could be an accelerator for companies to confront these data and managerial issues head-on, creating a foundation for using AI not only in demand planning, but in deploying stock to different markets, production planning and scheduling. A sound, participatory S&OP process that assembles and leverages robust and accurate internal and external data to reach a consensus number for both operations and finance should be the target for all companies. If the IBF survey prediction is correct that the coming years will see deep contributions from AI in demand planning, these fundamentals of data management of managerial process will have made it possible.
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Saudi Arabia’s only trade show for the automotive aftermarket and service industry
26 – 28 February 2019
The one-stop platform to source, network and grow your business Automechanika Jeddah is a must-visit platform to meet over 100+ exhibitors and source market-leading solutions from over 20 countries. Explore market trends and exciting partnership opportunities and negotiate better deals for your business at the only event for the automotive aftermarket in Saudi Arabia.
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Opinion We caught up with Chief Technology Officer of INVAO, Mr. Ahmed Jacobs-Aly who sees promise for INVAO’s growth in the Middle Eastern market
Chief Technology Officer of INVAO, Mr. Ahmed Jacobs-Aly
I
t seems the blockchain and cryptocurrency revolution is in full swing. Over the course of a one-year period, Google search requests for the keyword “blockchain” have increased by 250%. So what’s all the hype about? What is blockchain and how will businesses benefit from it? One company that is taking blockchain on the road here in the Middle East is INVAO, a blockchain asset pool for investors founded by German entrepreneurs, leveraging automated, arbitrage trading and active portfolio management. “During our investor roadshow through the
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Middle East, we have had a very positive reaction to blockchain technology. Investors in the Middle East believe in the power of technological developments to drive change and improve business, economics, and society. The modern investor is always looking for the next big thing,” said Mr. Ahmed Jacobs-Aly, Chief Technology Officer of INVAO. “There are many similar technology hubs emerging in the Middle East. Dubai, in particular, is doing great work at embracing blockchain as a leading emerging technology. There’s a clear awareness of the way the technology is going to impact everything around
us and a desire to get out ahead of it to lead the charge. Dubai also has its status as an investment hub to its advantage, meaning it can lead the way not only in tech but in the new financial industry.” Before INVAO, traditional investors struggled to gain access to cryptocurrency as an asset class. Now, INVAO is opening up the world and allowing traditional investors to get involved in crypto in a straightforward way. “Through INVAO, investors can be a part of the blockchain revolution, which is not only going to transform the world of money but every business and industry imaginable,” told Mr. Ahmed.
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“Blockchain technology is furthering globalisation through improved data sharing and by bringing leading nations closer together.” One of the many advantages of blockchain is that they are consensus-driven. A large number of computers are connected to the network, and to reduce the ability for an attacker to maliciously add transactions on the network, those adding to the blockchain must compete to solve a mathematical proof. The results are shared with all other computers on the network. The computers, or nodes, connected to this network must agree on the solution, hence the term “consensus.” This also makes the work of appending data to the ledger decentralized. That is, no single entity can take control of the information on the blockchain. Therefore, we need not trust a single entity since we rely on agreement by many entities instead. In the Middle East, Mr. Ahmed is optimistic that the region is ready to invest in blockchain technology and some of the ventures already taken up by the region show that. “Both Saudi Arabia and the UAE have concrete aims to use ‘Distributed Ledger Technology’ to strengthen their economies by introducing national cryptocurrencies. The UAE has also been experimenting heavily with blockchain, having launched the Dubai Blockchain Strategy with an aim of becoming the first blockchain-powered city by 2020, as well as the Emirates Blockchain Strategy 2021. The Kuwait Finance House has joined RippleNet, a major blockchain-powered network has been designed for cross-border remittance payments. In Turkey, the Borsa Istanbul Stock Exchange has developed a blockchain-powered customer database.” Regulations to blockchain technology and cryptocurrency have been a hot topic but countries are already taking steps to ensure that
nothing malicious can occur. Cryptocurrencies, in particular, have had turbulent times in the market as its value rises and drops without much of a warning. “Many countries in the MENA region have regulations in place for the budding digital economy. For example, some nations require all currencies to be backed by tangible assets — which in the crypto world is called a ‘stablecoin’,” told Mr. Ahmed. As a result of such turbulence, there is an emergence in the use of automated and arbitrage investing to negate these effects. “Arbitrage trading was invented with turbulent markets in mind. It is the rapid purchase of an asset on a market where its price is low, and sale of the same asset on a different market where its price is higher, resulting in a profit. It exploits these price differences using AI technology. If markets were perfect, with no volatility, arbitrage trading wouldn’t exist. It applies perfectly to the cryptocurrency market, where prices change at an accelerated speed due to the nature of the underlying technology,” remarked Mr. Ahmed.
Businesses too in the region can flourish with the use of blockchain technology. When asked about how logistics firms can benefit from the use of this Mr. Ahmed was quite bullish about this. “Blockchain technology will benefit everyone by facilitating business opportunities and improving the infrastructure and operations of businesses. The logistics industry will also reap this reward. Compare it to the adoption of the internet - the technology seeped into every industry, making systems more efficient and profitable, and now we can’t imagine running a business without it.” “One concrete example of the blockchain’s potential to impact the logistics industry is through smart contracts, which store legal and official documents on the blockchain. A lot of the construction business involves subcontracted work, the uncertainty of which can lead to payment disputes. Imagine a platform that would allow both the company and the worker to maintain power and ownership over the contract, with full oversight of activity and fulfilment of obligations, fully traceable changes, no ability to tamper with the document and above all - no need to get lawyers involved, saving valuable expenses. The same principle can be applied to purchase orders, delivery notes, and invoices, which are all largely still paperbased and inefficient processes.” “The Middle East’s vision for the future unites many of its nations and will help it to become a global blockchain frontrunner. I firmly believe that the supportive regulation we are seeing in nations such as Dubai, Saudi Arabia, and Kuwait, will be the key to mainstream adoption and true innovation. In the years to come, we will begin to see the economic benefit of these measures, and nations that have fallen behind will struggle to catch up.”
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Sustainable Free Zone Logistics News ME talked to the Director of Masdar Free Zone, Mr. Mohammed Al Fardan about why their free zone is one of a kind Masdar City is Abu Dhabi’s flagship urban development, and one of the world’s most sustainable urban communities. Since breaking ground in 2008, it has evolved into a thriving destination where overseas visitors and UAE residents alike can live, work and spend their leisure time. The area covers around six square kilometers and about 300,000 square meters of completed
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buildings are fully leased and occupied, while additional schools, offices, hotels, shops, restaurants, and private homes are in the pipeline. Apartments in Masdar City’s first private residential building, the Leonardo Residences, are now being occupied, and the development’s first shopping mall will open its doors later this year. “A low-carbon development, Masdar City is a rapidly growing clean-tech cluster, business
free zone and residential neighborhood – with shops, restaurants, and public green spaces. It is a hub for innovation and sustainability and a strategic base from which businesses can explore investment opportunities within the UAE and beyond,” said Mr. Mohammed Al Fardan, Director of Masdar Free Zone in Masdar City. Within five years, it is expected that Masdar City will be home to 10,000 residents, with an-
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other 10,000 people working and studying here. As the Director of Masdar Free Zone, Mr. Al Fardan is responsible for spearheading the overall growth and direction of Masdar Free Zone’s initiative and strategic partnerships with the City, which includes the improvement and implementation of Masdar’s free zone systems. “Companies located in Masdar City are housed in sustainable buildings that reduce water and energy consumption, carbon emissions, and waste, helping to lower operating costs.” Masdar City is one of the UAE’s fastest growing free zones and the first clean-tech cluster in the Middle East integrated with a graduate-level research institute. Masdar City is home to around 600 local and international companies, from multinationals to start-ups, all of which benefit from a host of business services. Masdar City Free Zone experienced a 30 percent growth in the number of new tenant registrations received last year alone. Masdar City free zone benefits include 100% foreign ownership and exemption from import tariffs, as well as corporate and individual taxes. The ‘One-Stop-Shop’ service also streamlines the processing of everything from visas, ID applications, and medical cover, to support for customs clearance, car rental, and travel arrangements. Besides leasing ready-made offices, tenants also have the opportunity to develop their own projects through the Investment Zone, or more bespoke developments on a long-term lease. “Masdar City is home to Etihad Airways, Siemens, Lockheed Martin, Schneider Electric, Mitsubishi Heavy Industries, and the headquarters of the International Renewable Energy Agency (IRENA), among hundreds of businesses, includ-
“It offers the opportunity to be part of a city where businesses, students and residents come together to create a community” Mohammed Al Fardan ing large corporations and SMEs. Masdar is also synonymous with the Masdar Institute, now part of the Khalifa University of Science and Technology. This allows our tenants to collaborate with students and faculty on research and development projects, and to access the best graduate talent,” commented Mr. Al Fardan. The area offers numerous benefits but Mr. Al Fardan says that the opportunity for businesses to set themselves up in their free zone shows that they want to be a part of something bigger. “It offers the opportunity to be part of a city where businesses, students and residents come together to create a community and embark on a collective mission to empower business and pioneer sustainability.” Masdar City Free Zone is also emerging as a hub for light industries, with companies like Honeywell and Khazna Data Center basing their operations in Masdar City’s light industrial zone.
The Masdar free zone is unique due to its eco-friendly developments and is one of a kind in the UAE. All buildings developed within Masdar City are required to achieve a 3 Pearl rating according to Abu Dhabi’s Estidama framework which is developed by the department of urban planning and mobility, for urban sustainability. “Some of our landmark buildings are also accredited according to the Leadership in Energy and Environmental Design (LEED) building rating system. Examples include the Etihad Eco Residence, Abu Dhabi’s first purpose-built LEED Platinum-rated residential building, and the Siemens building, Abu Dhabi’s first LEED Platinum accredited building,” said Mr. Al Fardan Masdar Free Zone was recognized as the “2016 Best Free Zone for R&D Partnerships” and one of the “Best Middle East Free Zones for Start-Ups and Large Companies.” “Masdar City is proud to have received an array of UAE and international awards, including of course the UAE Pioneer Award last November from HH Sheikh Mohamed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The prestigious award honored the city for its commitment to low-carbon urban development and the use of renewable energy. Without question, Masdar City stands out thanks to its innovation ecosystem, which provides a full range of business support services, access to education, R&D, clean technology and human capital. This all sits within an attractive sustainable environment ideal for ambitious businesses looking to set up in Abu Dhabi and access the wider MENA region,” concluded Mr. Al Fardan
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Event review
World Future Energy Summit 2019
U
nder the theme ‘Embracing the Future, Welcoming Disruption’, World Future Energy Summit (WFES) achieved significant strides through driving imaginative solutions to the interconnected challenges of energy transformation, disruptive technological change, and sustainable development. The platform has reinforced the effort in promoting global sustainable development through innovation and investment in priority sectors such as energy, transportation, and water along with others. WFES 2019 convened more than 34,000 attendees in addition to 3,000 students from over 150 countries, including 15 heads of state, as well as more than 100 ministers and 3,000 C-level participants from some of the world’s
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largest companies operating in the sustainability and renewables sectors. In addition, the expo hosted over 800 exhibiting companies from 40 countries. Here are some highlights of what took place during WFES. Agreements and partnerships WFES facilitated deals valued at US$10.5 billion to be implemented across 20 countries during its four-day run. Leading the way in these big deals were Masdar (Abu Dhabi Future Energy Company) and France’s EDF who won a tender to build a US$500-million 400-megawatt wind farm in northern Saudi Arabia as part of the country’s efforts to increase its renewable energy capac-
ity to 60 gigawatts by 2030. Abu Dhabi Waste Management Center (Tadweer), the strategic partners of the sixth EcoWASTE exhibition, awarded new operating contracts, cumulatively valued at AED1.099 billion, to leading providers of solid waste collection and transportation and street sweeping and cleaning services in the third, fourth and fifth sectors of Abu Dhabi Mainland and Al Dhafra Region. Dr. Salem Al Kaabi, Acting General Manager of Tadweer, said: “We are proud of the success achieved by the sixth EcoWASTE exhibition. In organising this event in partnership with Masdar as part of Abu Dhabi Sustainability Week (ADSW), Tadweer aimed to present an ideal platform for showcasing the lat-
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est technologies, innovations and industry best practices through convening leading experts, decision makers, solution providers and business leaders from across the globe. The event also served as an unprecedented opportunity to contribute towards enhancing the waste collection, transportation, and recycling practices, which, in turn, will ensure a cleaner, safer and more sustainable environment.� Solar Energy Corporation of India (SECI), a company of the Indian Ministry of New and Renewable Energy and the only central public sector entity dedicated to solar energy in the country, unveiled its US$7 billion Cold Desert Regions Ultra-Mega Solar Power project. SECI invited global investors to participate in the multi-billion-dollar alter-
native energy investment opportunities created by the state-backed scheme. Sustainable Energy The event also featured the WFES Green Buildings Forum as leaders explored opportunities for business and innovators to advance sustainable solutions. Supported by the Emirates Green Building Council, the WFES Green Buildings Forum, for its part, is a platform for government authorities, developers, building owners, consultants, contractors and suppliers offering insights on integrating innovative and efficient energy management solutions with sustainable, technical solutions suitable for both new and existing buildings.
Vivek Chaturvedi, DSM’s Regional Business Director – IMEA
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Event review
Emirates Green Building Council (EmiratesGBC) was formed in 2006, with the goal of advancing green building principles for protecting the environment and ensuring sustainability in the United Arab Emirates. Since its inception in 2006, there have been significant changes in the attitudes and demands related to the sustainable built environment. The Council has been encouraged by the implementation of green building policies and regulations, by the adoption of consistent rating systems, and by the increase in the overall knowledge sharing and information available on built environments and communities. Key sessions explored targeting net-zero energy, retrofitting to net-zero, baseline performance data of UAE buildings, benchmarking building performance evaluations, smart financing for deep retrofit projects based on case studies, and improvements to indoor air quality. “This overall dialogue was also conducive in inviting the industry to sign the Net Zero Carbon Buildings Commitment, which encourages businesses and organisations across the world to take advanced climate action by setting ambitious targets to eliminate operational carbon emissions from their building portfolios by 2030, and to advocate for all buildings to be Net Zero in operation by 2050,” said Mr. Saeed Al Abbar, Chairman, EmiratesGBC In the context of targets outlined by the United Nations COP 21 Paris Agreement and the UN’s Sustainable Development Goals, the event helped to shape the sustainability agenda and empowering a private sector, bottom-up approach to accelerate commercially driven solutions that tackle interconnected resource and climate challenges. “One of the most important points which the region has to address is the use of right type of components and materials specific to this region. This region is very different from others which have seen growth till now in terms of harsher conditions. Also, standards must be built around a choice of materials in the entire value chain. As the choices we make today will decide how safe and livable a world we all leave for our future generations,” said Mr. Vivek Chaturvedi, DSM’s Regional Business Director – IMEA. “For DSM Solar, our focus is on developing PV technologies and materials to improve profitability across the value chain and bringing the cost of solar power down,” added Mr. Chaturvedi. Experts believe that the GCC region will push ahead with such projects despite their high costs, estimating that the six GCC countries could pump about $200 billion into 120 renewable energy projects in the next two decades. With so many projects in the pipeline,
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Gurmeet Kaur, Partner Pisent Masons
Saeed Al Abbar, Chairman, Emirates Green Building Council
there was a lot of discussion about how government policies would help shape the way people invest in an oil-laden region. Pisent Masons is an international law firm which specialises in the energy, infrastructure, financial services, real estate, and advanced manufacturing and technology sectors and they believe that the GCC region has taken the right steps to encourage sustainable energy companies to enter the market.
“The GCC and Middle East governments have set clear targets and introduced projects in the pipeline which is bringing confidence to international bidders when it comes to renewable energy. There is also very well structured tender process which is tried and tested and the regulations that have been introduced are encouraging more companies to invest in sustainable technology or tools,” said Mrs. Gurmeet Kaur, Partner at Pisent Masons.
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D i g i ta l
Transport Mobility
Kasun Illankoon spoke to Devin de Vries, CEO of WhereIsMyTransport, where he discusses how his company’s big data public transport platform has enabled multi-modal journey planning. Transport is one of the most important urban planning functions that ensures mobility within the urban area and access to various land uses. As emerging cities modernise and expand, there is an urgent demand for high-quality, integrated mobility services to support economic, social and environmental progress. This interactive relationship is the subject of sustainable urban mobility, a concept that addresses the sufficiency of transport systems according to the principles of sustainable development. “Poor mobility in emerging markets is a huge social issue that has been overlooked for years. By accurately mapping formal and in-
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formal transport networks in emerging markets, and making this data available through our intelligent platform (API), we empower governments and mobility service providers to improve the livelihood of hundreds of millions of excluded households in these markets,” said Mr. Devin de Vries, CEO of WhereIsMyTransport. WhereIsMyTransport, a company based in London and Cape Town, are addressing these problems and help not just the commuters but organisations who deal with transportation. “Governments, cities and transit authorities make billion-dollar investments in infrastruc-
ture and services based on sustainable urban mobility plans,” said Mr. de Vries WhereIsMyTransport is a big data platform for sustainable mobility in emerging markets, mapping formal and informal public transport networks, integrating the data into their open data platform (API). “We have the fastest, most accurate data collection service - including a suite of custom tools - for mapping informal public transport networks in emerging markets. Until this data is collected, the informal networks are ‘invisible’ to the city, to transport authorities, and to many citizens,” added Mr. de Vries.
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The data collected includes route shapes and names, stop locations and names, boarding and alighting numbers, fares and variations, frequencies, and travel times. “If the city is missing data for the formal networks - which is often the case - we use a similar process to collect, validate and publish these data. In this way, we are able to build a detailed and complete picture of public transport services for the whole city.” “Late last year, we completed our biggest data collection project to date: collecting the world’s most complete dataset for integrated formal and informal public transport in the
Mexico City metropolitan area,” remarked Mr. de Vries A number of cities have demonstrated additional and unexpected benefits from tracking such information. They are using this data not only to take action on climate change but also to make their services more inclusive. They’re making public transportation more responsive to community members’ needs and seeking to increase access to low-carbon mobility options, such as public transit, bicycling and walking, for everyone. In order to do this, it is important to have an integrated mobility platform which integrates
and centralises data for an entire city’s public transport system. “The services built into the platform include multi-modal journey planning and a messenger service that makes it possible - for the first time, in many of these cities - for transport operators to communicate directly with the passengers using their services,” Mr. de Vries added about the platform. 92% of the world’s largest low- and middleincome cities do not have complete transit maps. According to the World Bank in these markets, up to 80% of the population uses informal public transport networks for which there is little to no information on operations. This makes sustainable urban mobility planning near impossible. However, WhereIsMyTransport’s unique selling point is the data they collect reduces such problems. “Our data and technology - which we may provide in partnership with intermediaries; engineering consultancies, NGOs, banks - shine a light on the invisible. The insights and analytics, that we extrapolate, enable governments and authorities to make smarter decisions for long-term investment and impact in mobility.” “We also work with the banks and development finance institutions (e.g. The World Bank), NGOs, philanthropic foundations, and large multinational organisations that priorities their investment in emerging cities for public benefit / social good. Cities with access to our data and technology are much better positioned to make smarter decisions, seeing a greater impact from these investments.” “When we started out, the tools and methodologies available in emerging cities were poorly suited to the public transport environment. So we designed our own and continue to improve them. This is the significant differentiator for our clients and partners, and a clear advantage for us in a competitive market,” added Mr. de Vries. In 2019, the company plans to broaden their focus in Africa and beyond in markets like Southeast Asia, Latin America, India, and the Middle East. When asked about their thoughts on the Middle East market Mr. de Vries had this to say: “The Middle East is increasingly progressive and ambitious where mobility services are concerned. The region is poised to leverage our data and technology to support intelligent transport systems in its major cities. We have ongoing conversations, at advanced stages, with a handful of cities and welcome interest and engagement from forward-thinking cities and governments across the region.”
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Event Preview
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Time to Connect Ben Blamire, Commercial Director of Breakbulk Middle East gives us a preview of what to expect during the fourth edition of Breakbulk Middle East
Breakbulk Middle East, an annual conference and exhibition that gathers key industry figures and experts from around the world to converge and share innovative ideas, is all set for its fourth edition to take place in Dubai from February 11th to 12th 2019, at the Dubai World Trade Center. The yearly platform provides an interactive platform to connect and network with shippers, carriers and heavy transport specialists; generating informed discussions on the opportunities and challenges facing the global and regional project cargo sector. How do you see the breakbulk/ project cargo sector in the Middle East performing in the coming year? I think there are better times ahead for breakbulk and project cargo shippers in the coming year. There is a positive outlook and we see a positive upturn in 2019. It
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will be safe to say that most companies are cautiously optimistic as the market dynamics are unpredictable, but the success of the sector heavily depends on the improvement in the global economy. In the Gulf region, in particular, breakbulk and project cargo industry plays a vital role in infrastructure development. As a sector, breakbulk represents a complex market encompassing commodities as varied as steel and forest products, to heavy-lift shipments for wind turbines and equipment for construction work. This variation exposes the sector to macroeconomic trends that have to be addressed by both market segment and geography. UAE and governments across the region are looking to build more diverse and integrated economies. Thus despite the downturn in the past few years, the overall signs point towards a stronger macroeconomic picture as we move closer
to 2020. It is also expected that competition from bulk carriers and container ships will also decline. What are some of the challenges specific for this sector and how does this event address them? Bulk and container operators continuously face overcapacity issues. Also, most bulkers and box ships cannot provide the logistical insight, technical know-how, specialist lifting, and transportation equipment, or the years of experience required to safely and consistently shift complex cargoes from A-to-B, this is leading to a real loss of quality in the sector. Safe and reliable movement of cargo is vital in this sector, not to mention critical. The upcoming Breakbulk ME 2019 conference and exhibition will address and hold discussions on the opportunities and challenges facing the global and regional project cargo sector. This is a specialized platform focusing entirely on
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Event Preview
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the breakbulk industry, thus the networking opportunities and sharing of perspectives by experts from all over the globe, is immense. Every year we strive hard to hold an event that showcases the industry’s best practices and brings forth effective solutions that enhance the UAE global maritime ranking. What benefit can local and international companies gain by attending the BBME 2019? This annual conference is the largest gathering of decision makers and key stakeholders in the industry. Companies can vastly benefit from the discussions and sessions to be held at the event, where new ideas will be discussed, challenges addressed and new initiatives will be launched to enhance the performance of this sector. This is the fourth edition of Breakbulk Event? How is it different? This is the first time the event will be held in Dubai, as the emirate already has a rich and varied maritime industry dating back about 7,000 years. The importance of trading by sea is fundamental to the economy of the Emirates and Dubai today, and it has been a fundamental part of the economy. There will be a special session in next year’s edition on the economic outlook in the Middle East delivered by top executives and experts who will share their unique perspective on the breakbulk content in the region. With respect to the recent Treaty of Resolve between UAE and Saudi Arabia, an emphasis is put on the diversification and reforms in the Kingdom to support the Vision 2030. There will also be talks on renewable energy sources in the Middle East and investing in the local workforce to ensure sustainability while filling the knowledge gap in the industry. The panel will further discuss planned and existing programs, bridging the skills and diversity gap and utilizing future project cargo workforce. In the agenda, there is a special mention of ‘driving optimization through technology’. What is the importance of implementing new technology in the industry? Technology is rapidly taking over all sectors, including the maritime industry. Its implementation is inevitable and despite certain challenges, it has the power to change business processes drastically. Ship-owners are aware of the changing face of ship emissions
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For most firms, use of technology will bring about a change in innovation systems and business models allowing new market entrants, new patterns for collaboration and emerging global competition. All of this will serve to put clients’ trust in the sector and will eventually add more value to the industry that will contribute to its growth. BBME 2019 will pay special emphasis on the role emerging technologies will play in the overall growth of this sector.
and smarter fleet management, so robotics, digital currencies, and deep learning analytics are rapidly being used. Technology has also changed operations making them more efficient, increasing onshore and offshore communication and permeated into ship design aiding countries to comply with IMO standards for safety and sustainability. I think digitalization is also going to be responsible for a lot more transparency and accuracy in the supply chain, which will in turn help to build more trust in this sector.
To what extent loyal sponsors play a part in promoting this event? Our sponsors have always played a huge role in making this event a success. We would specifically like to thank host port Abu Dhabi ports, King Abdullah ports, Bahri Logistics, Agility, Micco and Cosco Shipping for endorsing the upcoming edition. What is your opinion the benefits of this conference and expo? There are more and more companies attending every year. This is an excellent platform for producers, suppliers and decision makers to be in one place and offer critical insights into the issues that are important for the sectors’ growth and advancement.
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Unsung Heroes
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GENEVIEVE FERNANDES
We talked to Genevieve Fernandes, Director of Human Resources, about how UD Trucks employees have played an instrumental role in helping UD Trucks achieve their goals. UD Trucks is a leading Japanese commercial vehicle solutions provider, active in more than 60 countries on all continents. Since its inception in 1935, the company has been an innovation leader with a clear vision to provide the trucks and services the world needs today. The company is committed to going the extra mile for smart logistics with the most dependable solutions for demanding customers. In 2018 the company introduced its innovation roadmap “Fujin & Raijin. Vision 2030” under the theme Innovation for Smart Logistics. Mrs. Fernandes has been working for Volvo Group for close to 15 years in the Middle East, Dubai. HR Business Partner/Support to Volvo Trucks, Renault Trucks, UD Trucks, Volvo Construction Equipment, Volvo Buses, and Volvo Service Markets Logistics. Tell us why UD Trucks has continued to have success in the GCC region? Our Success is driven by the employees who are driven by Energy and Passion for the Brand, we have clear goals and the whole team has the same moto, “we cannot succeed if our customers don’t”. So anything we do is always Customer Centric. Tell us how UD Trucks success is related to the employees, at all levels? At UD Trucks any success is celebrated as a Team Success and not on an individual level. We celebrate every small or big success and we value each individual’s unique assets and contributions. All ideas are welcomed and no idea is a bad idea. Tell us the key role the top management plays in motivating the employees? Motivation driven by Management goes by a Simple Thumb Rule: Communicate, Share and Involve the employees at all levels of the business may it be information cascading or strategy. Empowerment to make your decisions and a strong sense of accountability and belonging.
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Tell us how you or the team, personally try to motivate the employees and ensure there is complete satisfaction in the workplace? By ensuring transparency, trust and open dialogue that results in engagement and satisfaction in the workplace. We also ensure that we
are competitive in the region by striving for Employer of Choice which results in mutual benefit both for the individual and the employer and as I previously mentioned, “Celebrating Successes” is a very important part of our team culture.
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Maritime
Maritime Arbitration Majid Obaid bin Bashir, Vice Chairman, and Secretary General at EMAC give us an insight into maritime arbitration and how they will play a key role in the region.
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National rules of arbitration have undergone an unrelenting process of reform. A common feature of these new regulations is the recognition of party autonomy as the real cornerstone of arbitration: the assessment of the capacity of the parties to govern the whole arbitration. Besides that, these reforms have also brought about the recognition of greater powers vested on the arbitrator and of the undeniable new role played by him in arbitration. This last recognition does not contradict the flexible attitude maintained as to the wide power granted to the parties in arbitration, in practice, it runs in parallel with it. Due to the growing maritime activity in the region, the enthusiasm of the stakeholders and the belief in the efficiency of arbitration, the Government of Dubai has initiated the establishment of the Emirates Maritime Arbitration Center (EMAC). “Gone are the days when the region’s maritime, offshore oil and gas, and logistics stakeholders were limited to support from like associations or institutions that are based further away in the various time zones,” said Mr. Majid Obaid bin Bashir, Vice Chairman, and Secretary General at EMAC. A need arises for a legal mechanism through which parties can resolve their disputes quickly, fairly, efficiently, with flexibility and freedom that the court cannot provide. The reason for this is because of the continuous development of trade and services, the resulting complexity of transactions, and the subsequent need for speed and efficiency. EMAC have set themselves out to provide the highest standard in arbitration and mediation, services, which in turn provides an alternative to litigation and court procedures, by helping parties keep their disputes private, confidential, and controlled, with an element of flexibility in the process. “EMAC has a very clear vision for its strategy. The initial two years were predominantly about establishing brand awareness both regionally and internationally, but above all adding value to the industry.” Most importantly, EMAC aims to fill a gap in the international maritime arbitration market between London and the Far East by establishing a regional maritime Center in the UAE. “Whilst EMAC’s services are reactive, i.e. based on support for parties in dispute, it is not targeted at a sole specific region, however, the Centre does close a geographical gap, offering first class maritime arbitration and mediation services in the Middle East.”
Taking into consideration the diversity that the UAE offers, it ensures that investors and international concerns have access to legal systems that work for them. “While it is important to be seen and heard internationally, EMAC’s focus will be on the region for 2019, strengthening its position as a Center for excellence for alternative dispute resolution (ADR) services,” added Mr. Bashir. EMAC services range from option to resolve maritime-related disputes through effective alternative dispute resolution methods to depth maritime specialisation know-how, with the capability to handle complex matters through an equipped secretariat, a panel of arbitrators and mediators. Maritime dispute resolution can be said to be historically the oldest form of institutional arbitration. It gives individuals the freedom to choose arbitrates which they trust based on their experience in dispute resolution. The rules and
procedures used to resolve disputes are seen to be more flexible and realistic than those used in other general institutional arbitration. Given the commercial, economic, and global nature of these maritime contracts, maritime arbitration has been of great importance in resolving disputes between parties. Perhaps the most important characteristic of maritime arbitration from within the jurisdiction of each state is the prior consent that is required by the parties to abide any arbitral award that is issued in a dispute between them and the ease of the arbitration procedure that would occur. When asked about the key role that government regulations play getting these disputes resolved Mr. Bashir told us, “The introduction of the stand-alone arbitration law (Federal Law No. 6/2018) considers that the UAE is not just a Center for domestic arbitration, it is a regional arbitration hub for commercial disputes. Even parties with no connection to the UAE, seek to conduct their disputes here.” The authorities within the UAE had recognized the necessity to upgrade the previous provisions in the law pertaining to arbitration, by adopting UNCITRAL arbitration rules that enhance the arbitral process as well as clarify the enforcement of arbitration agreements and awards in this new arbitration law. “This is without a doubt, a fantastic move towards confirming the UAE as a friendly, reliable seat for arbitration.” “The EMAC team is ready and keen to support the industry. With a membership base of 230 individuals including, 48 arbitrators, 23 mediators, and 24 experts, it is clear that EMAC has built up credibility and trust within the industry,” concluded Mr. Bashir.
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S u pp l i e r N e w s
Supplier News
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U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s
UD Trucks announces sales growth across the MEENA region in 2018 UD Trucks has announced that it registered a nine percent increase in sales across the Middle East, East and North Africa (MEENA) region in 2018, despite challenging economic circumstances. In the Middle East region alone, the Japanese truck manufacturer either increased its market share or recorded stable sales in five out of seven markets. The UAE market has been very tough over the past twelve months; however, UD Trucks once again performed well and saw its market share increase. Bahrain remain very strong markets for UD Trucks as the brand enjoys a significant market share, which it continued to strengthen further in 2018. Saudi Arabia has experienced another tough year, with the total market continuing to drop. However, UD Trucks managed to keep a good level of sales while improving its market share in some key segments such as waste management and construction. Saudi Arabia remains a key focus for the brand, which has put in place aggressive plans to further grow and support its customers in the Kingdom. Both Lebanon and Jordan were reactivated in 2018 as the brand transitioned from the legacy trucks to the introduction of new models in both the heavy and medium duty sectors. UD Trucks has
high ambitions in these two markets as it leverages on the strong brand reputation built over recent years. 2018 saw the Middle East launch of two new Quester models designed for the heavy construction industry – the Quester 6x4R-40 Tons and 8x4R- 46 T with hub reduction, which puts the brand as the unique Japanese manufacturer offering a complete heavy-duty range as UD Trucks is benefitting from being part of the Volvo Group and having access to its technologies. Supporting its customers, UD Trucks’ regional offices in Dubai
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includes a parts distribution center, which delivers over 12,000 different spare parts to UD Trucks partners across the MEENA region. Thanks to its strategic location in the UAE, UD Trucks importers enjoy short lead times, as well as lower transport and inventory costs to better serve customers in the region. UD Trucks’ objective is to maximise customer satisfaction by providing the required tools to succeed, not only when it comes to the products, but also in terms of providing the highest standards of customer service, reducing vehicle downtime
and minimizing long-term running costs. Mourad Hedna, President of UD Trucks MEENA, said; “This region is very strategic for UD Trucks and we are reinforcing our team and creating a customer-centric organization to serve the best interests of our customers and partners. Given our modern full product range, our strong partners in the region, and our commitment and dedication to serve our customers, added to our long Japanese heritage, we have all the tools to succeed and we can only see a bright future for UD Trucks and its customers in the region.” www.cbnme.com
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Investment opportunities to be presented at Saudi Maritime Congress
Saudi Arabia’s maritime and logistics sector is set to provide a host of fresh investment opportunities that will enable the Kingdom’s integration into the regional and global economies as a hub connecting three continents – Asia, Europe and Africa, and positioning the country as a global logistics hub. The 2nd Saudi Maritime Congress held on March 11th and 12th at the Four Seasons Hotel Riyadh at Kingdom Center, Riyadh, Saudi Arabia, will bring together leading figures from the shipping industry to discuss the effect the ambitious Vision 2030 programme will have on the Saudi economy and how shipping and logistics sectors will contribute to this project. Held under the patronage of Saudi Ports Authority (Mawani) and in partnership with Bahri, Saudi Maritime Congress will bring together leaders from the Kingdom’s shipping, ports, ship construction and offshore marine companies, as well as their international partners, to learn, network and explore new opportunities.
Abdullah Aldubaikhi, CEO of Bahri, said: “Bahri is proud to be working in partnership with the 2nd Saudi Maritime Congress – a strategic meeting point of the region’s leading logistics and shipping industry decision-makers and experts. We would like to emphasize the importance of this event to us, which has established itself as one of the most important highlights of the maritime industry calendar. The Congress offers a valuable platform to discuss the latest developments and trends in the shipping industry and highlights Saudi Arabia’s milestones in its evolution as a leading maritime hub in the world.” Chris Hayman, Chairman of Seatrade, said: “The Saudi Maritime Congress will showcase promising business opportunities to attendees, particularly in the shipping and logistics sector. The Kingdom of Saudi Arabia is a fantastic place for business investment and, having diversified itself into many non-oil businesses, the country offers a great environment for new businesses to evolve.”
DP World increases stake in DP World Australia
DP World announces that it has acquired an additional stake in DP World Australia (Holding) Pty Ltd (DP World Australia) from Gateway Infrastructure Investments (Gateway) and other financial investors valuing DP World Australia at an enterprise value of approximately A$ 1.4 billion (USD 997 mn). The acquisition is subject to regulatory approval and is expected to close in 1Q2019. Following the closure of the transaction, DP World Australia will become a consolidated entity within the DP World Group and is expected to be earnings neutral in the first full year of ownership. Corsair Infrastructure Partners (CIP), the manager of the Gateway Fund, will continue to manage a significant investment in DP World Australia. DP World Australia (DPWA) is a leading container port operator that manages 4 terminals at each of Australia’s major ports (Sydney, Melbourne, Brisbane and
Fremantle) with a capacity of approximately 4mn TEU’s. In 2017, DPWA handled 3.4mn TEU’s and generated over USD400mn of revenues. In addition to core terminal and stevedoring operations, DPWA has a strategy to grow the business ‘beyond-thegate’ through its vertically integrated logistics solutions via DPW Logistics Australia and JVs (1-Stop and AWH). Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce this transaction that brings DP World Australia back into our consolidated portfolio, which presents a more optimal structure to drive this business forward, while continuing our relationship with CIP as a valued partner. We remain optimistic on the growth prospects in Australia and believe there is an exciting opportunity to enhance shareholder value by further developing the container terminals operations and expanding beyond the ports into logistics services.”
Logistics News ME | February 2019 | 53
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The key exhibitions, conferences, and seminars coming up this month
February
10-12
February
19-21
AirCargo Las Vegas, USA AirCargo brings together all actors in the air cargo supply chain in one location to discuss trends, challenges, opportunities and the future of the air cargo industry. Exhibitors will have the opportunity to speak and network with senior managers and decision makers across companies who are involved in air cargo. LogiMAT Stuttgart, Germany LogiMAT is the leading international trade fair that provides a comprehensive market overview and competent knowledge-transfer. It will feature Intralogistics Solutions and Process Management, sets new standards as the biggest annual intralogistics exhibition in Europe.
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February
11-13
February
27-28
Saudi Transtec Dammam, Saudi Arabia This event showcases product from Sea Ports, Railway Security equipment, Transport of goods, tunnel, bridge, motorway, Product storage & warehousing, Dry products storage & warehousing, Railway, Shipping & Aviation Products industry. World Trade & Transport Conference New Orleans, USA The World Trade & Transport Conference focuses on promoting the commerce and cargo shipping throughout the Mississippi River system. It convenes companies that are involved in the production, handling, sales and distribution for several million tons of commodities including aggregates, cement, coal, coke, fertilizers, grain, industrial minerals, raw materials, and steel. www.cbnme.com
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