Logistics News ME January 2019

Opinion

Interview

Supplier Focus

The role of data analytics in improving logistics

Mobility Edge Platform to reform our future mobility solutions

Premier Logistics growing ambition

Connecting trade professionals with industry intelligence

O n e St e p Further

LogiPoint shows why they are the global strategic convergence point for their customers

January 2019

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Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

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

Contents

Contents

J a n u a ry 2 019

Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

January 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 | Report 30 | Discussion 34 | Site Visit 36 | Q&A 38 | Op-Ed 42 | National Paints 44 | Industry Prediction

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50 | Supplier Focus 52 | Supplier News 54 | Diary Logistics News ME | January 2019 | 3

Regional News

Great starts, make great stories.

Complete business solutions.

Our business is trust.

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J a n u a ry 2 019

Ed i to r ’ s L e t t e r

J a n u a ry 2019

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 jo@bncpublishing.net +971 50 440 2706

Senior Sales Manager Vishvanath Shetty

As another year rolls around we are surrounded by the hype of what the New Year will bring us. The truth is every year we are in a transitional period to something major. To what exactly? Well, we have to wait and see as the year progresses. 2019 could be the year where we could be ‘One Step Further’ from doing something spectacular.

In the lieu of that, this edition’s main cover story is a company who is doing just that. LogiPoint, who play a key role in providing high quality integrated logistics solutions, shows why they are the global strategic convergence point for their customers. It has been pioneering logistics solutions in Saudi Arabia for over 20 years and has since established the first and the largest Bonded and Re-Export Zone which is spread over one million sqm.

One trend you will notice in this edition is the importance of investing in new IT infrastructure, digital platforms and new technologies to combat any shortcoming that the industry might face.

For example, 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. The sharp rise will only encourage more automation.

This is applicable in most fields of logistics as we learn from companies like Premier Logistics, Shipwaves, and Gulftainer about the benefits of investing properly in new technologies and their plans to grow in 2019 and beyond.

Kasun Illankoon Editor, Logistics News Middle East

vish@bncpublishing.net

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Manager Mark Anthony Monzon mark@bncpublishing.net

S U B S CRI B E subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Logistics News ME contact

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

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Opinions expressed are solely those of the contributors.

Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

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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

DP World & SMS Group joint venture to revolutionise global port logistics

An international joint-venture formed by global trade enabler DP World and industrial engineering specialists SMS group will revolutionize the way that containers are handled in ports. A new and intelligent storing system will be applied for the first time ever at Jebel Ali Terminal 4, in time for the Dubai Expo 2020 world fair.

The High Bay Storage system was originally developed by SMS group subsidiary AMOVA for round the clock handling of metal coils that weigh as much as 50 tons each in racks as high as 50 meters. AMOVA is the first company to transfer this proven technology to the port industry.

Instead of stacking containers directly on top of each other, which has been global standard

practice for decades, the system places each container in an individual rack compartment.

Containers are stored in an eleven-story rack, creating 200 percent more capacity than a conventional container terminal, or creating the same capacity in less than a third of the space.

Thanks to the rack’s design each container can be accessed without having to move another one, enabling 100 percent utilization in a terminal yard.

The system brings big gains in speed, energy efficiency, better safety and a major reduction in costs. Costs are further cut by the ability to shorten the time taken to load and unload mega-ships by as much as 30 percent.

Sultan Ahmed Bin Sulayem, DP World Group Chairman

10 | Logistics News ME | January 2019

and CEO, said: “DP World’s experience and expertise in moving cargo coupled with the technology of AMOVA will ensure the system is remarkably efficient and relevant for present and future operations. As a world first in our industry we are tremendously excited by its potential and groundbreaking features. Our engagement in new technologies is a major priority and we have become known for seeking ways that transform the way goods are moved across the world. Innovation is part of our DNA and at the heart of our success.”

Burkhard Dahmen, CEO of SMS Group, said: “Our subsidiary AMOVA has optimized this technology in industrial applications for the metals

industry over several decades.

The application for container terminals is a direct result of our “New Horizon” strategy, in which SMS transfers technology from the metallurgical sector to other industries.”

Dr. Mathias Dobner, CEO of the joint venture, said: “This new container handling technology allows cities to use their expensive and sensitive land and waterfront areas more effectively. Our system will significantly increase the productivity of handling ships on the quay. This means that quay walls can be shortened by a third. This disruptive innovation will greatly improve the financial performance of container ports, and well as their overall appearance.” www.cbnme.com

J a n u a ry 2 019 HVAC

Leminar Air Conditioning Industries signs agreement with Saudi-based Sharqawi

Leminar Air Conditioning Industries, the leader in quality HVAC ductwork manufacturing in the region, signed a manufacturing sub-license agreement with Sharqawi Air Distribution System Factory Company. The deal was formalised during the recently concluded Leminar Customer Conference 2018 at the InterContinental Hotel, Dubai Festival City, UAE. Sharqawi will fabricate and sell the Fenland Fire Duct system (FFC-UK) in the

Kingdom of Saudi Arabia on an exclusive basis, with technical support and raw material supplied from Leminar’s Dubai facility and FFC-UK, when required. The increasing awareness and demand for the FFC ducts from clients outside the UAE urged Leminar Air Conditioning Industries, which is currently an exclusive manufacturer in the Middle East, to seek out a new partner.

Pramodh Idicheria, COO, Leminar Air Conditioning Industries, LLC, said: “The

UAE’s manufacturing segment is becoming stronger over the years resulting in a greater outflow of licensing agreements from UAE businesses to other markets. The partnership with Sharqawi is a testament to our commitment to support the growth of the manufacturing industry within the UAE and wider GCC.” Dipak Bhadra, Executive Director, Leminar Air Conditioning Industries, added:” The FFC duct has been one of our most popular products

since the very beginning owing to its quality and performance.

The partnership with Sharqawi is a befitting one as their manufacturing meet highest expected quality standards, which combined with our expertise will make way for FFC ducts to be used on more and more major projects in the region.”

While Leminar Air Conditioning Industries’ 325,000 square feet manufacturing facility is the largest in the Middle East, Sharqawi has a large factory of its own and has supplied ducts to prestigious projects including Riyadh Metro BACS, Jeddah Gate, Al Rajhi HQ, Al Khorayef Centre, KAP to name a few.

The agreement was signed between Bhadra and Mohammad Salah, General Manager from Sharqawi, under the auspices of Kevin Gibson, Technical Director of Fenland Fire Contracts UK during the Leminar Customer Conference.

The conference was a first of its kind event for the HVAC industry organised and attended by over 300 customers and partners.

The second stage of Etihad Rail will extend 605 km from Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast, to be followed by future route additions.

Breakbulk Middle East 2019 aspires towards strengthening industry prospects through an interactive platform that will connect and network with shippers, carriers and heavy transport specialists.

Quick news

Saudia Cargo contributed to the 33rd National Festival for Heritage and Culture by transporting 60 tons of equipment for the inauguration.

COSCO SHIPPING Ports and Abu Dhabi Ports inaugurated CSP Abu Dhabi Terminal at Khalifa Port; positioning Abu Dhabi as the regional hub for COSCO’s global network of 36 ports.

Logistics News ME | January 2019 | 11

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Regional News

Sustainability

Kuehne + Nagel has opened its new warehouse extension in Dubai South

Kuehne + Nagel UAE has opened its new warehouse extension in the Logistics District. H.H. Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority (DCAA) and Chairman of Dubai Aviation City Corporation (DACC), led the inauguration of the new warehouse, which highlights the company’s milestones in the UAE, having established its presence in the country for 40 years.

The new warehouse is intended for highvalue industries that the company serves in the UAE and the region, furthering boosting Dubai’s global competitiveness through state-of-the-art

infrastructure and facilities in the logistics sector.

The new warehouse facility is spread over an area of 10,000 square meters, built with one main chamber as the general storage area and a mezzanine chamber. The new building is also equipped with the latest warehousing technology and has 10 docking stations and one drive in door with a ramp for aerospace materials and large engines.

Khalifa Al Zaffin, Executive Chairman of DACC and Dubai South, said: “We congratulate Kuehne + Nagel for this new milestone, which enables them to serve high-value industries.

This move further reflects the attractiveness of the

14 | Logistics News ME | January 2019

Logistics District as an ideal environment for regional expansion and a strategic location to connect to the global markets with its easy access to various ports of entry, including air, sea and land. We continue to build our strengths to facilitate and enable our strategic customers to fully engage in implementing their business strategies and achieve success.”

Dubai South, the fastest growing free zone in the region, continues to attract small and large companies owing to its strategic location, state-of-the-art infrastructure and innovative approaches that facilitate business setup. The Logistics

District is fast becoming the supply chain capital for international markets, given the convenience, proximity and easy access to seaports, airports and major roads.

Thorsten Pook, Managing Director of Kuehne + Nagel UAE and Oman, noted: “The extension of our warehouse campus in Dubai South Logistics District underlines our strong commitment to the UAE and the Middle East and provide outstanding logistics services to our customers.”

With the new warehouse, Kuehne + Nagel has now extended its capability to a total of 41,000 square meters storage capacity to meet the growing market demand in the coming years. www.cbnme.com

J a n u a ry 2 019

ACCI attracts global companies to participate in Future Build Exhibition-2019

As part of the preparations for the Future Build Exhibition that will be held next March in the Emirate of Ajman, the Ajman Chamber of Commerce and Industry (ACCI) and Hyperloop Transportation Technologies (HyperloopTT) held a joint meeting to explore the partnership’s mechanisms of the exhibition.

The (ACCI) is keen to attract local and international companies that are pioneering and specialized in executing large projects and providing products for smart and sustainable cities, said Mohammed Ali Al Janahi, Executive Director of Investment and Business Development Division and Head of the Organising Committee.

The Exhibition will highlight the cutting-edge and innovative technologies, smart and green building, systems of protection, communications and control and others. It will further provide a global platform to identify the pioneering companies and latest products and projects of the future cities, Al Janahi added.

Present at the joint meeting were Dr. Sabih Gatea Khisaf, Head of Engineering for the Middle East and North Africa at HyperloopTT, Bilal Sabouni, CEO of the American Business Council, Nabil Ghaith, CEO of Intelligent Marketing Solutions . The two sides discussed ways to enhance future cooperation and the mechanisms of participation of Hyperloop in the exhibition.

Al Janahi explained that the exhibition will mainly focus on the transport sector, in addition to the building systems and materials, intelligent systems, urban planning 2030, clean and renewable energy, waste recycling and 3D printing.

“The exhibition is an opportunity to highlight the latest means and products used in the construction of sustainable cities. It further serves as a global platform for exchanging experiences, enhancing cooperation and building partnerships in various fields for the government and sectors, as well as providing opportunities to seal deals between participating companies” Al Janahi said.

Cargo

ALS Logistic Solutions & Goldhofer have opened a joint Representative Office in Dubai

Based on the long-term relationship and in response to the recent increases in demand for internal airport logistics in the Middle East & Africa region, the world market leader Goldhofer Airport Technology opened a sales and service center in collaboration with ALS Logistic Solutions in Dubai.

Being well established and recognized on the local market, ALS Logistic Solutions expands partnership portfolio by strong strategic tie-up in aviation and logistics fields.

The new facility will be managed by Roger Saadé, a long-standing Area Sales Manager for the region, who says: “Our new representative office will enable us to provide customers with more intensive local support and also to recruit new business partners for Goldhofer.”

The sales team will be additionally strengthened by the appointment of Jouliana

Abou Manneh as Support Engineer. Management of Customer Service and the creation and organization of a dedicated Goldhofer parts store has been entrusted to an experienced industry insider Philipp Berger who has been working for Goldhofer worldwide for many years now as an expert for ground support equipment (GSE).

“ALS is one of the leading Automation Solution Provider in the world with headquarter in Dubai. Our vision is mutual market growth with the help of latest technology and world-class equipment.

Understanding the market need in prompt service supported by recently established logistics warehouse that allows attending GCC clients at the maximum speed.” – says Walid Khoury, Managing Director, ALS Logistic Solutions. “On behalf of ALS Team, we welcome Goldhofer members and look forward to fruitful cooperation”.

Logistics News ME | January 2019 | 15

Regional News

Etihad Cargo expands global network with launch of services to Barcelona Etihad launched its first scheduled flights linking Abu Dhabi and Barcelona on November 28. Combined with its daily Madrid service, launched in 2015, these operations now offer more than 23,000 tons per year of cargo capacity for the Spanish market. In addition, trucking services from gateways across Europe further compliment the network, offering customers greater reach and faster delivery times.

Abdulla Mohamed Shadid, Etihad Airways Managing Director Cargo and Logistics, said: “2018 has been a very successful year for Etihad Cargo, with positive progress achieved across our fleet and network optimization, our products development and enhancement, and our digital transformation.

“More recently, following our decision to deploy additional capacity to key markets such as China, India and Vietnam, as well as an aircraft dedicated for charters to meet fourth quarter demand, this Barcelona service marks a timely addition to the network. We are encouraged by the demand demonstrated by the market for this service and delighted to see the inaugural flight carrying 17.6 Tonnes of cargo.”

Etihad Cargo first started operating in Spain as on offline carrier, sending shipments to Paris and Amsterdam via truck to feed into the Etihad network. Since the inaugural passenger flight to Madrid on March 30 2015, Etihad Cargo has provided daily air cargo services to key destinations across the GCC, Africa, Indian subcontinent, Southeast Asia and Australia.

The new Barcelona service will add to this with an initial schedule of five times per week, before increasing to a daily service on March 31 2019.

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16 | Logistics News ME | January 2019

Swissport wins SalamAir ground handling business in Oman

SalamAir of Oman has signed a five-year contract with Swissport for hub handling at Muscat International Airport.

As of 1 January 2019, the Swiss Aviation Services company, global market leader of airport ground services and cargo handling, will provide the Omani carrier with a full range of services, from passenger services to ramp operations.

At the Omani capital, Swissport will handle the low-cost carrier’s flights to currently three domestic and eleven international destinations in nine countries. The carrier is currently operating four Airbus A320 aircraft from its hub in Muscat, with five additional aircraft scheduled for delivery in 2019. In addition to the hub services at Muscat International Airport, Swissport has already started to handle SalamAir’s daily flights at the private airport of Mukhaizna (UKH) in the Omani desert.

“We are delighted that SalamAir has chosen Swissport to serve its valued customers at Muscat International”, says Nils Knudsen, Chief Commercial Officer of Swissport International AG. “In 2017, when we started up in Muscat, Oman was a

greenfield site for us. We are proud of how quickly we established the Swissport operating standards, delivering the quality services our clients trust.”

Adding SalamAir to its growing portfolio of highprofile customers in Oman is another milestone for Swissport since starting up operations in the Middle East.

The agreement underlines the company’s position as a high-quality service provider and supports its own growth ambitions in the region.

“We are proud to provide hub handling services to this fast-growing airline in the sultanate of Oman”, states Mark Skinner, Swissport’s Senior Vice President Middle East & Africa.

“Swissport is committed to fulfil and surpass SalamAir’s high expectations regarding on-time performance and quality.”

Swissport entered the Omani market in April 2017 together with its joint venture partner Al Jarwani Group, which holds 30% of the shares. Swissport Oman rapidly grew its customer portfolio, which today includes flydubai, Air Arabia, Turkish Airlines, Pegasus, Air New Zealand and now SalamAir. www.cbnme.com

J a n u a ry 2 019

Quote We interviewed 800 small and medium-sized businesses around the world, we found that 78% wanted to see their logistics move online.

Shipa helps close that gap.”

Agility Chairwoman Henadi AlSaleh on Agility $100mn investment and launch of Shipa.com

Top 5 online

1

Shipwaves Online wins Logistics Startup of the Year at ‘Logistics & Transport Awards 2018’

2

Emirates takes home five awards in one week including “Best Airline in the World”

3

DP World closes acquisition of 100% shares of Unifeeder Group

4

COSCO SHIPPING Ports partners with Abu Dhabi Ports to create regional trading hub

5

Pharmax Pharmaceuticals opens AED 125mn production facility in Dubai Science Park

Cargo

Saudia Cargo transports FIA’s Formula-E to Riyadh

Saudia Cargo helped bring the Saudia Airlines sponsored FIA’s Formula-E championship to Riyadh.

Saudia, for the first time, is sponsoring the season opening race for the ABB FIA Formula E Championship that will be held, also for the first time, in the historic city of Ad Diriyah, located on the outskirts of Riyadh, from 1315 of December.

The cars, spares and the various equipment were carried from several European destinations into King Khalid Airport in Riyadh, a total of 58 cars aboard several aircraft with a combined load exceeding 220 tons!

These heavy loads were carried for the 2018 Saudia Ad Diriyah E-Prix. The Saudi Arabian Airlines sponsored event will take place in Ad Diriyah, a UNESCO world heritage site and the historical capital of the Kingdom, serving as the host for the E-Prix, one of the biggest annual global

sporting events.

Formula E, officially the ABB FIA Formula E Championship, is a class of auto racing that uses only electric-powered cars.

Inspired by innovation, this race utilizes eco-friendly electric energy, moreover, it offers the amazing excitement of track racing. The inaugural championship started in Beijing in September 2014, and it tours the most iconic cities around the world, such as New York, Paris, Hong Kong and now the series fifth season opening race is starting in Ad Diriyah.

Coming in line with the Kingdom’s Vision 2030, the three-day festival provides a wide variety of entertainment activities, from the Formula-E races to live musical live performances to the Allianz E-Village, an area full of innovative electric cars and gaming platforms, providing an excellent opportunity for fans and families to discover the world of Formula E. Logistics News ME | January 2019 | 17

Regional News

Expansion

GAC to set up operations at KIZAD

Leading integrated shipping, logistics and marine services provider GAC is opening a warehouse and open yard in the Middle East’s largest industrial zone and a subsidiary of Abu Dhabi Ports, Khalifa Industrial Zone Abu Dhabi (KIZAD).

The new GAC Abu Dhabi facility, expected to be fully operational by January next year, will serve a wide range of sectors including oil and gas, manufacturing, construction, FMCG, household effects, and specialist equipment.

GAC has been in Abu Dhabi since 1967, and today has facilities at Sila, Ruwais, Mussafah, Mina Zayed and Abu Dhabi International Airport.

“GAC has been actively serving ship owners and

operators at Khalifa Port for many years. Abu Dhabi is increasingly becoming a major global hub for logistics and shipping, and so it is only natural that a player of GAC’s scale and reputation would be looking to expand its presence in the Emirate,” says Samir Chaturvedi, KIZAD CEO. “By joining the thriving KIZAD community, GAC becomes the latest major enterprise to realise the impact that the strategic location and exceptional infrastructure and support offered by our zone can have on their business.

“A firm such as GAC needs excellent access to transport infrastructure, including connectivity by road, sea and air, as well as flexibility to accommodate its growing

18 | Logistics News ME | January 2019

warehouse needs, all of which they have found at KIZAD, and we are looking forward to helping them expand their business in Abu Dhabi even more.”

GAC Abu Dhabi’s Managing Director, Göran Eriksson, adds: “Khalifa Port is an essential gateway to Abu Dhabi. Setting up operations at KIZAD gives us the advantage of being close to the state-of-the-art port, enabling greater operational efficiency for both GAC and our customers.”

GAC joins other international logistics and shipping companies and part of this rapid development is KIZAD’s recently-launched KIZAD Logistics City, which has responded to the needs of distributors,

manufacturers, shippers and logistics companies in the region. The new hub is adjacent to Khalifa Port, one of the fastest growing ports in the world, close to major UAE airports, and seamlessly connected by uncongested highways to Abu Dhabi, Dubai and into Saudi Arabia.

KIZAD has further expanded its product offerings with the launch of new free zone warehouses and Light Industrial Units (LIUs).

The free zone warehouses will cater to trading and export companies, Third Party Logistics, freight forwarders and distributors while the pre-built and flexible LIUs will serve various light manufacturing businesses and workshops. www.cbnme.com

J a n u a ry 2 019

Pharmaceuticals

Pharmax Pharmaceuticals opens AED 125mn production facility in Dubai Science Park Dubai Science Park (DSP), a holistic science-focused business community dedicated to the development of the local healthcare sector, has welcomed the inauguration of its first pharmaceutical manufacturing plant, operated by Pharmax Pharmaceuticals (Pharmax), a pharmaceutical company that will produce a wide range of medications from the sciencefocused business community.

As the first advanced facility at the sciencefocused business community, the AED125 million plant with an annual production capacity of over 200 million tablet and capsule dosage forms is dedicated to the manufacturing and commercialisation of pharmaceuticals that target chronic conditions prevalent in the Middle East. The factory is equipped with the latest European technology, meeting stringent global regulatory standards.

Marwan Abdulaziz Janahi, Managing Director of Dubai Science Park and Chairing Member of the Pharmaceuticals and Medical Equipment Taskforce of the Dubai Industrial Strategy 2030, said: “Our region currently imports more than 80 per cent of pharmaceuticals from abroad.

At the same time, technological advancements, an increase in R&D capacities and talent availability, state-

of-the-art infrastructure, proximity to emerging markets, and a favourable policy framework present us with a unique opportunity to enhance our domestic manufacturing capabilities.”

Established in 2016, the Dubai Industrial Strategy 2030 has identified the pharmaceuticals and medical equipment sector as one of six strategically important sectors for Dubai’s economy.

Positive forecasts predict that an increase in industrial capabilities will add AED160 billion (US$43.5 billion) to Dubai’s GDP, with the industrial sector growing

by AED18 billion (US$4.9

billion).

Furthermore, the plan is expected to significantly enhance the UAE’s R&D capacities while adding 27,000 specialised jobs and AED15.8 billion (US$4.3 billion) to the country’s export sheet.

Speaking about the new manufacturing facility, Madhukar Tanna, Chief Executive Officer of Pharmax, said: “We are proud to be part of DSP’s vibrant business community, and are confident that now is the perfect time to launch Pharmax in the region.

Our company is fully aligned with the Dubai Industrial Strategy 2030 that, among other objectives, seeks to

reduce the country’s reliance on imports of pharmaceutical products.

The support the business has received from Dubai Science Park, the Ministry of Health and Prevention, and local health authorities has been vital in reaching today’s milestone – the official inauguration of the Pharmax factory.”

Construction of the facility began in September 2015 as a joint venture between Al Ittihad Drug Store, a distributor of medicines in the UAE, and two of the largest pharmaceutical manufacturing companies in Morocco – Cooper Pharma and Bottu Pharmaceuticals.

Logistics News ME | January 2019 | 19

Regional News

J a n u a ry 2019

Cargo

Close to 10,000 tonnes of Irish exports transported by Emirates SkyCargo in 2018

Emirates SkyCargo has released figures on its Irish operation, which showed that the award-winning freight division of the airline carried close to 10,000 tonnes of Irish exports, from Dublin, during 2018.

In addition to up to 720 passengers flying twice daily between Dublin and Dubai and beyond, Emirates offers up to 25 tonnes of cargo capacity on each of its Boeing-777 aircraft that operate the Dublin route.

35% of Emirates SkyCargo’s Irish export cargo for 2018 comprised food items such as crabs, oysters, razor shells and salmon, much of which is heading to the Far East and specifically, Hong Kong, Shanghai and Singapore.

Other produce making its way to the supermarkets of Dubai and onwards to Asia include yogurts, cheese, Irish beef, chocolates and baby milk formula.

Pharmaceuticals accounted for more than 2,000 tonnes of cargo carried by Emirates SkyCargo from Dublin in 2018. Primary end markets for products from leading pharmaceutical companies in Ireland include Australia, India and the Middle East.

Other Irish products being exported to markets such as

the UAE, China, Singapore, Australia and South Africa, and making up 35% of exports, include computer equipment, electronics and machinery.

Large Computer servers (supporting Cloud Technology) manufactured in Ireland are exported worldwide using Emirates’ wide-body aircraft services to Australia, New Zealand and the Middle East.

Michael Meagher, Emirates SkyCargo manager for Ireland said, “Since launching in Ireland in January 2012 Emirates has been supporting Irish companies of all sizes with their export programmes, carrying more than 50,000 tonnes of cargo out of Dublin during that time, making us the number one carrier for air cargo from Ireland to the Middle East, Australia and China.

“We are continuing to grow our operation in Ireland and are currently developing Dublin as a gate-way to North America for cargo traffic coming from Dubai and elsewhere on our network. This is a very exciting development for the Emirate SkyCargo team in Dublin, where every piece of cargo is treated with kid gloves to ensure it arrives at its destination in perfect condition.”

20 | Logistics News ME | January 2019

Ports

Port Rashid receives five cruise airliners on a single day

Port Rashid received five international cruise liners at the Dubai Cruise Terminal on a single day, marking a historic milestone during the 2018/2019 season. The cruise lines originating from UK, USA, Germany, Italy and Spain brought in over 25,000 tourists. The milestone event forms part of the ongoing efforts of the recently formed Dubai Cruise Committee to raise the profile of Dubai as a leading destination for winter sun cruising and reaffirming its position as the “Cruise Hub of the Region”.

The Cruise Terminal at Port Rashid witnessed a noticeably growing traffic in cruise tourists in the last years. The number of cruise tourists to Dubai has doubled since 2014 from 320,000 in 2013-2014 season to 625,000 in 2016-2017. The number of cruises to Dubai grew by 68% from 93 in 2013-2014 season to 156 cruises in 2016-2017.

Around 1.9m cruise tourists have made it to Dubai in 4 seasons since 2013-2014 to 2016-2017 season on 489 cruise liners.

Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, said: “The arrival of 25,000 cruise tourists in a single day underlines Dubai’s growing presence in world cruise tourism and is evidence of the success of Dubai Cruise Terminal’s role in making this possible, following the wise vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. Our state-of-the-art facilities, world class infrastructure,

and connectivity have laid the foundations for a robust sector that will see continued growth moving forward.

Between 2013 and 2017, our world class Hamdan bin Mohammed Cruise Terminal has seen a 68 per cent increase in cruise ship calls, and tourist numbers arriving at our Mina Rashid facility have doubled from 320,000 to 625,000 during the same period.”

On his part, Mohammed Al Manaei, CEO of P & O Marinas and Port Rashid said: “Receiving these luxury cruise liners on a single day indicates the great capability of Port Rashid and its readiness to deal with the growing demand in cruise tourism in Dubai. The Cruise Terminal at Port Rashid enjoys the best and most modern facilities and is well equipped to ensure highest levels of satisfaction and a pleasure journey and stay to all cruise tourists.”

The three cruise liners who marked their maiden call to Dubai included Marella Discovery, arriving after their rebranding from Thomson Cruises, the UK’s third largest cruise line; Aida Prima and Pullmantur Horizon marking the start for their homeporting calls.

Aida Prima with 16 calls in 2018/19 season is expected to bring over 60,000 cruise tourists to Dubai and Pullmantur Cruises marked its debut in the region with its cruise ship Horizon and is set to welcome over 45,000 cruise tourists via 14 calls to Dubai during the ongoing season. www.cbnme.com

Building the UAE’s highest road Jebel Jais is part of the Hajar Mountain Range in Ras Al Khaimah.

It is the highest peak in the UAE. And for centuries unreachable by most.

For 8 years, a fleet of Volvo FMX Trucks carried a total of more than 5.5 million cubic meters around the clock building a 36 km road that goes up more than 1910 meters. The rugged terrain, steep slopes and loose rock were not a challenge for Volvo FMX, which is built tough for such conditions. That is why more than 30 of our Volvo FMX trucks completed this ambitious road project without any major breakdown.

To watch the full video please visit www.volvotrucks.ae/jebeljais

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C o v e r S to ry

One Step Further LogiPoint shows why they are the global strategic convergence point for their customers

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T

he Kingdom of Saudi Arabia ‘Vision 2030’ has become a credo as well as a driving force not only in the country but in the immediate region as well. It is the most ambitious and the most elaborate plan yet in the Kingdom’s history to actively diversify the historically oil-dependent economy.

The wheels have been set in motion, and the dollar value of the projects which have been announced or inaugurated is already in hundreds of billions. Complimenting them are the regulatory reforms and market-driven approach underpinning these reforms, creating real momentum and a positive outlook for the future. As mega-projects begin to take shape in the sprawling Kingdom, the ability of the logistics sector to respond to the market effectively and efficiently, and to support these projects through constant innovation and improvisation has come into sharp focus. Indeed, with the benefit of hindsight, it appears that LogiPoint has been tailor-made for just such a scenario.

LogiPoint is a subsidiary of the Saudi Industrial Services Company – SISCO, a public company listed on Saudi stock exchange. LogiPoint have been pioneering innovative logistics solutions in the Kingdom for almost 20 years and have grown from being the developer and operator of the bonded and re-export zone at Jeddah Islamic Port to an enabler of the logistics industry in the Kingdom of Saudi Arabia through its Integrated Logistics Parks and services.

Rebranding Tusdeer Until 2017, LogiPoint were known and recognized in the market as Tusdeer Bonded and Re-Export Zone, the first and the largest zone of its kind in the Kingdom spread on one million square meters of reclaimed land. Tusdeer specialized in catering to the needs of importers and exporters whose cargo passed through one of the Jeddah Islamic Port terminals or needed to be stored in JIP until commercial or clearance formalities could be completed.

The rebranding as LogiPoint became necessary when the company set itself for expansion in order to serve and be an enabler to Vision 2030 by offering state of the art facilities at fully integrated Logistics Parks in different locations across the Kingdom and provided highly specialized operational support to its diverse base of local and international clients.

Cog in the wheel Farooq Shaikh is the newly appointed Chief Executive Officer of LogiPoint. He underlines the co-relation between the value LogiPoint brings to the Saudi economy and the value which Saudi Arabia brings to the global logis-

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tics industry. “The ability to provide high quality and advanced integrated logistics solutions in Jeddah Islamic Port has enabled Saudi Arabia to emerge as a strategic logistics hub on the all-important Red Sea Logistics Corridor, which connects four continents of the world,” he says.

“Our solutions have been designed and structured so that our clients achieve greater efficiencies in their supply chains through optimized operations and reduced inventory cost while still enabling them to respond to customer demand faster – this translates to a real bottom-line advantage for our valued clients.”

Mr. Shaikh was referring to the wide array of logistics solutions which LogiPoint

offers to an ever-expanding base of global and regional clients. Today, the LogiPoint Bonded and Re-Export Zone is a world-class, customer-centric, integrated logistics services area, where international and local clients are able to take advantage of auxiliary port services, lead-logistics, specialized handling and storage, labeling, co-packaging, and even turn-key supply chain integration from the port terminal to the distribution center. Jeddah port helps clients save 4-8 days in import or export transit time when compared with other ports in the region. This is an advantage which is reinforced through using the LogiPoint services.

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C o v e r S to ry

LogiPoint Advantage Farooq Shaikh stresses the advantage LogiPoint brings to clients, “They have the option to import the goods into the Kingdom after breezing through the customs, or to rework and re-export their goods to any part of the world from Jeddah without having to pay customs and duties. There is a dedicated customs office within the Bonded and Re-Export zone to cater to the needs of the clients and to ensure a smooth and speedy clearance process for the shipments.” The value of speedy and smooth clearance in an industry that came up with the term “Just in time” can hardly be over-emphasized.

Building on over 20 years of experience of working with regulatory authorities, clients, partners, and other stakeholders, LogiPoint has introduced a simplified export process which allows major exporters in the oil and gas sector to eliminate the need for an intermediary overseas hub for the storage and onward shipping of their cargoes. “We help them reduce their ocean freight costs by shipping their cargo directly to their target markets. The new process has reduced the export processing time from one week to one day – the faster availability of Saudi products in the international markets has led to an increase in demand for them. Direct destination booking also improves the accuracy of Customs export data, and gives us a better understanding of the markets where there are a need and demand for Saudi products”.

Integrated Logistics Solutions The need for an integrated logistics infrastructure in the Saudi landscape has long been acknowledged, and LogiPoint has played an extensive role in making such an infrastructure a reality in the Kingdom. Along with their group companies, Red Sea Gateway Terminal (RSGT) – a state of the terminal in JIP, and Support Services Company (ISNAD), LogiPoint have designed seamless integrated logistics solutions for their clients. “This is not only to help in cost reduction through faster, seamless operation; but also to help streamline communication and to provide more transparency across the entire process. Ultimately, this enhances customer experience, leads to increased customer satisfaction and builds confidence among all the stakeholders. They can plan their supply chain with greater accuracy and avoid unnecessary costs.”

Beyond the Bonded Zone – Upcoming Projects It is plain to see that LogiPoint has had incredible success in building innovative and collaborative integrated logistics solutions for the

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Jeddah Islamic Port clients. They have now embarked on replicating that model beyond the bonded zone and are investing heavily in developing logistics parks and zones in the Kingdom. Two of these projects, ‘Logistics Parks – Modon 1’ and ‘Logistics Parks – South Jeddah’ have already taken shape and are in various stages of completion.

‘Logistics Parks - Modon 1’ is located in the heart of the Jeddah Industrial Area and is spread over 120,000 m2. The proximity to the Jeddah Islamic Port will lead to time and money savings in transport while bringing flexibility and agility to planning and operations for businesses. Additionally, the project offers ample open storage space for cargo, while also providing parking space for vehicles so parking in the industrial area’s congested streets can be avoided. “We will provide additional services aligned with international standards to both existing and new clients, and will look to help bring in new efficiencies in the collective supply chain of the Jeddah region,” said Farooq Shaikh. He explained that through this project heavy traffic flow will also be efficiently managed in and out of the Industrial City.

‘Logistics Parks - South Jeddah’ is located in Al-Khumra, the 2nd largest logistics hub in the Kingdom, and is spread across Jeddah. It is just 20 minutes’ drive from the port and lies close to two major highways.

It is also less than two kilometers from the

proposed Land-bridge station which will ultimately represent the western terminal for the trans-Saudi railway linking Jeddah and Dammam via Riyadh.

A Vision for a Prosperous Future LogiPoint aims to facilitate trade and commerce by creating opportunities, synergies, and collaborations in the field of logistics.

They remain committed to supporting initiatives which will help lubricate the engines of economic growth. This has been acknowledged by leading independent organizations like Seatrade Maritime and Transport & Logistics Middle East.

Mr. Shaikh is optimistic about the way forward for the organization: “Combining strategically located logistics zones and our logistics support services, we have positioned ourselves ideally to lead the drive for efficient logistics solutions in the industry. We do this through building capacities and enhancing capabilities and by offering transactional, tactical and strategic benefits to all our stakeholders. We are committed to expanding our current investment base by developing both green-field and brown-field integrated logistics facilities across Saudi Arabia while focusing on attracting international investors into the Kingdom. We have been at the forefront of bringing international concepts in logistics efficiency to KSA over the last two decades, and with the Kingdom’s drive towards achieving Vision 2030 objectives, we see a greater role for LogiPoint as enablers of trade and development through innovative logistics solutions.

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T e c h n o lo gy

Falcon Eye Drones Middle East Industry Predictions According to the UAE based leading drone operator, AI and drones will become inseparable in upcoming years with the number of drone users tripling within the next 12 months

Falcon Eye Drones released Middle East drone industry predictions featuring top trends that are likely to emerge in 2019 and its plans to further increase application of the artificial intelligence (AI) powered technologies within its operations. Based on the qualitative client surveys conducted throughout 2018 and its collective industry expertise, the UAE based drone expert identified several prominent themes that will be dominant in the upcoming year.

While the UAE government will continue leading drone technology developments in the region, with the Dubai flying taxi release scheduled for 2020, the private sector will become more open towards integrating drones into their operations. The demand for drone

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technologies will come 70% from public sector applications and 30% from across commercial domain. Falcon Eye Drones predict an overall increase in the drone flights regionally by at least 150% with the number of drone technology users tripling over the course of the next year.

Inspections and surveying will continue dominating the sector followed by aerial filming and photography. Construction sector will be integrating drones into all the stages of their projects to achieve a competitive edge and speed up the construction process. Emergency services, farming, logistics and cartography applications will be leading drone use cases in the Middle East.

While the commercial sector will be more inclined towards operating drones, it is unlikely for them to do this independently. Drone-asa-Service providers will be in even higher demand in 2019. Software manufacturers offering data evaluation solutions, drone-as-a-service operators and hardware vendors will see a much higher demand next year. “We are witnessing a significant rise in demand from across various industries and we believe it will continue growing exponentially in 2019. While public and private sectors both recognize unmatched benefits drones represent, expertise in operating this type of technology in this region is not very common. In addition to the talent shortage, drone regula-

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tions are still relatively tight not only regionally, but globally, and drone-as-a-service providers are in a unique position to fill this gap”, said Rabih Bou Rashid, Managing Director of Falcon Eye Drones.

Flying drones is no longer a unique value proposition amongst service providers, therefore, data processing and analysis will play ever increasing role in this sector. The company currently utilizes at least 17 types of software applications while operating 3 major types of drones that include DJI M210 multirotor for close up inspections, eBee X fixed wings drones for large area mapping and Elios protected design drones for confined spaces.

“Safely operating drones and collecting

data is just the tip of an iceberg. What really matters is what we can do with this data, how fast we can process it and what use we can make out of the information we collect. Artificial intelligence is becoming an integral part of today’s drone sector and to further evolve in this area, we need to continue investing in its development. In 2019 we will be advancing our AI capabilities in parallel with the reinforcement of the quality and sophistication of hardware and software of UAS in the Middle East”, added Rabih.

While Falcon Eye Drones consider 100% increase in investments in the development of AI-powered software applications in 2019, the company makes equality strong

emphasis on the importance of education and talent sustenance.

Last month, Falcon Eye Drones in collaboration with the Zayed University and ICBA, held Drones Synergy conference in Dubai, region’s first event that features Project Based Learning approach to allow participants to gain practical UAVs knowledge based on real field trials and data acquisition using the latest drones technology and processing techniques.

The company is committed to continuing investing its time and resources to further nurture regional talent and expand drone application capabilities thus promoting regional technological growth and development with 3 major educational programs in the pipeline for 2019.

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R e p o rt

GCC CARGO ONLINE SEARCHES FOR BOTH AIR AND LAND REMAIN DIVIDED GCC online searches indicate divided opinion and preference for land and sea cargo options, according to recent research from SEMrush GCC online searches indicate divided opinion and preference for land and sea cargo options, according to recent research from SEMrush, the award-winning digital marketing suite.

Trends during the last three years show sharp contrasts in local online search queries across the Kingdom of Saudi Arabia, United Arab Emirates and Kuwait for the type of cargo transport sought, along with the related products and destinations for these shipments.

At 94 percent, the majority of cargo searches in UAE related to air cargo, with sea and land cargo following at four and two percent, respectively. The top four most common countries in UAE cargo search queries were India, Saudi Arabia, the UK, and France.

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Saudi’s online searches for cargo put land services in the lead with 62 percent, followed by air at 25 percent and sea at 13 percent. Internet cargo searches within the Kingdom mostly highlighted the demand for domestic cargo services within major cities such as Riyadh, Jeddah, and Dammam. The most sought-after products referenced in cargo searches were car related, followed closely by those seeking the fastest and cheapest cargo services to Egypt, and from the USA and UAE. Meanwhile, the pattern in Kuwait revealed that air cargo remains the most sought-after at 50 percent of searches, with land cargo just behind at 40 percent, and sea cargo at 10 percent.

Cars also featured prominently in Kuwaiti cargo searches.

“Search data can tell GCC marketers a lot about the public’s needs and preferences. As evidenced by the cargo search patterns across the Gulf markets, individual needs differ greatly from the needs of corporations,” commented Adam Zeidan, Corporate Communications Manager for SEMrush in MENA region.

“The fact the UAE has positioned itself as the region’s cargo gateway is a strong pull factor, with the world-class airport infrastructure ensuring the country attracts the majority of air cargo searches. That is not the case in other GCC markets, where a large number of citizens and expatriates seek lower cost land cargo services to transport household possessions domestically or regionally. A key factor, especially when it comes to Saudi Arabia, is the size of the country. We often forget that geographically Saudi Arabia is nearly the size of Western Europe.”

Air cargo facilities have been expanding rapidly at international airports in both Abu Dhabi and Dubai, with approximately 3.6 million tons of air cargo handled by the UAE in 2017, according to Chamber of Commerce reports from both emirates.

In Saudi Arabia, where most online cargo searches relate to land freight services, experts estimate there are approximately 750,000 light and heavy commercial vehicles in operation, of which the vast majority are used to carry goods, not passengers.

“The GCC – and the UAE in particular serves as a central trading hub between Europe and the growth markets of Asia and Africa, so it’s unsurprising that searches are high in this region. With the continued expansion from

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Olga Andrienko, Head of Global Marketing at SEMrush

global aviation giants such as Emirates and Etihad, this trend is only going to continue,” said Olga Andrienko, Head of Global Marketing at SEMrush.

SEMrush data reveals that GCC-wide sea cargo related online searches over the last 12 months are even more detailed when split into English and Arabic.

“We can assume that English searches in GCC markets would stem primarily from foreign expats residing in the GCC, while Arabic sea cargo searches originate from a mix of local GCC citizens, local medium-sized business

owners, as well as Arab-speaking expats who live in the GCC,” said Andrienko.

With sea cargo now the second most costeffective means of freight transportation after land freight, the UAE’s English language online searches related to sea cargo revealed the following most mentioned destinations: India, the Philippines, Pakistan, Canada, Sri Lanka, and the UK. The UAE’s equivalent Arabic language Arabic sea cargo online searches showed the most popular markets were the USA, China, and Egypt.

In Kuwait, the online search pattern for sea

cargo was mainly in Arabic and related to shipments to Saudi Arabia, Lebanon, and Egypt.

This research was carried out by SEMrush, the award-winning digital marketing suite that enables users to be front-runners in their industries. Trusted by nearly 3,000,000 marketing professionals worldwide and 10,000+ partner agencies, SEMrush ensures customers are well equipped to increase their revenue and achieve online visibility for any business. SEMrush has emerged as the global leader in digital marketing software and a must-have a solution for virtually all competitive companies.

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F e at u r e

Fluctuating oil prices and the way to combat it Oil prices undoubtedly play a big role in every companies operation, even if you are not directly involved with it. We caught up with a few companies about how the oil prices are changing the way they do business and the steps taken to offset it.

Analysts have commented that recent decline in prices has been due to oversupply as the cuts agreed upon by member nations of Oil Producing and Exporting Countries will only take effect in January. Compared to October, global oil prices have fallen by almost 40%, though it turned around slightly in December. On av-

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erage, 2018 saw a $20 price rise per oil barrel from the previous year. This fluctuation of oil prices is nothing new but the dramatic increase and decrease of prices have sent company’s scrambling to come up with effective ways to handle these prices.

Take a look at 2014, when oil prices went

down to $50 per barrel which caused much alarm in oil-laden nations. OPEC’s November 2014 decision to maintain output despite already elevated global production and inventories triggered a slide in global crude oil prices of nearly 75% through early 2016.

Cheaper oil can be looked like a positive to

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many consumers but the reality is businesses are here to make a profit and that means making up for those losses. This could either lead to job losses or putting the financial burden of losing money on the buyers and suppliers by increasing the price of the products. For example, last mile delivery services have become crucial for companies to create a unique competitive advantage. People want their products faster and are willing to pay the extra expenses.

But how much could you really charge before it becomes too much? When it does, the cost would then trickle-down to intermediate players who as well would hike up their fees due to the high oil prices.

“The trickle-down effect when oil is low hits the private sector sooner than later and it is certainly not to be too optimistic (when oil is high) and pessimistic when (it is low). At Premier we are looking at the long term that is investing in employees and especially challenging the old norms of doing business,” said Deepak Khushalani, , founder and managing director of Premier Logistics.

The impact of higher oil prices on goods that are time sensitive or require refrigeration could be in excess flow on to the consumer. So in a nutshell, higher fuel costs cause product inflation, and affect every aspect of production transportation along the way.

Harris Kalandan, Managing Director of Shipwaves added that the end-to-end online logistics platform catering to the needs of importers and exporters globally knows how important that last mile delivery is: “The mid- to the final-mile section of the supply chain is as important as the long haul sections of routes and are often the most complex to coordinate for logistics companies.

Tightening up this area of the supply chain is crucial to staying on schedule.”

As such, the fluctuating oil prices have forced companies to become more innovative and increase their investments in IT infrastructure and technologies to compete better.

Good for business As you can see from the figures (see page 32) it shows that between 2011 to 2014 oil prices were at an all-time high. In this period businesses were booming with profits but the sudden shift in oil prices meant a dramatic shift in how companies operated.

It is obvious that when a commodity is selling at a cheaper price, the costs of its production need to reduce. This principle can be applied right across the production spectrum,

Deepak Khushalani, Founder & Managing Director of Premier Logistics

from exploration, through to development, production, and maintenance. Across the board, shareholders and executives are challenging their teams to come up with new and more efficient ways of finding and producing oil and gas, and of maintaining and enhancing the assets that support this.

However, it is also a common assumption that with higher oil prices, the cost of doing business will rise. Airlines and trucking companies, for instance, will have to pay more for fuel. That, in turn, means that the cost of producing and shipping goods across the country and around the world will increase.

That could have two potentially bad outcomes: as stated earlier, either company will pass along those expenses to consumers, leading to greater inflationary pressures; or companies will eat the added supply chain costs, which could cut into corporate profits.

On paper, that seems like a lose-lose.

But while this may be true when evaluating individual companies — as some businesses will certainly feel a crunch — rising oil prices aren’t always bad when considering the overall market, especially in the early stages of a price surge.

For instance, in the short run, rising oil prices are actually a boon for companies in the energy sector, and their gains can make up for some of the losses that other companies could

suffer later on. Energy companies within the S&P 500 index, in fact, are expected to see their corporate profits surge 42% in 2018, compared to a more modest 12% rise for a broad market, according to FactSet. “Carriers, both sea, and air, constantly move their pricing according to oil prices so it has always been challenging for our industry. The key is to ensure that our pricing goes up and down in line with the carriers to ensure our clients know we have their interests at heart, change is something that needs to happen and if it’s in line with the real pricing clients understand,” said Paula Bellamy, Managing Director of Oceanwide Logistics Dubai.

The Middle East is also exporting increasingly to the rest of the world, helping carriers improve their space utilisation and boosting their margins. Local industries will, therefore, be able to offer world materials at a more realistic logistics cost, ultimately delivering a more positive economic outlook.

Gulftainer Group CEO, Peter Richard echoes this sentiment and adds the company also believes that their investment in digital infrastructure can help offset these problems: “Our newly enhanced digital infrastructure ensures that operations can be adjusted and evaluated for efficiency. It provides real-time computing power to help operators keep up with a large

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F e at u r e

Average Annual OPEC Crude Oil Prices 20 1 8 *

71.2

2017

52.51

2016

40.68 49.49

2015

96.29

2014

105.87

2013 2012

109.45 107.46

2011 77.38

2010 60.86

2009

94.1

2008 69.04

2007 61

2006

amount of cargo entering and leaving ports on mega ships, while making sure that containers are unloaded and loaded without a hitch, in the shortest turnaround time.

New Technologies Become Viable Cheap oil is problematic for companies and industries looking to supplant oil. All in all, then, when oil prices are low it is very hard for cleaner energy technologies to compete effectively on price.

With higher oil prices, though, suddenly a lot of new ideas get a hearing. Increased fuel mileage for passenger cars seemed pointlessly

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expensive in the U.S. prior the 1970s energy crisis, and it likewise seems probable that hybrids today owe any acceptance outside of the environmental crowd to the high price of gasoline (the number one derivative of oil these days). Along similar lines, the path towards viable mass-market all-electric cars is predicated on persistently high oil prices.

It is not just passenger vehicles where high oil prices lead to innovation. Quite a lot of plastics and other synthetic materials are derived from oil and higher prices ripple through the economy. With high oil prices, then, comes increased interest and R&D into non-oil alter-

80

0

0

100

12

60

( US $ )

10

40

80

20

40

20

0

0

60

50.59

2005

120

native feedstocks for these materials.

Most need an oil price of $90 or greater to cover current government spending, with the IMF forecasting fiscal deficits in nearly all of the region’s oil-exporters by 2015 in the event of a major price drop. Even at $100 per barrel, public spending is expected to slow down in the region. These countries have grown dependent on their high oil rents, spending huge sums on unrealistic energy subsidies to domestic consumers and failing to invest in future generations.

Deepak Khushalani said, “Most logistics companies hail from a non-digital background,

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Harris Kalandan, Chairman and Managing Director, Shipwaves

Managing Director of Oceanwide Logistics Dubai, Paula Bellamy

Peter Richards, Group CEO of Gulftainer

and to evolve quickly against their competition, companies need to think of digital transformation in terms of digitalisation, processes, and people.�

Higher oil prices lead to a wave of capital that flows into major oil producing countries such as Saudi Arabia. Unable to use all the capital, Saudi Arabia sends the excess savings back into the global financial system. Banks then use that capital to lend. Interest rates also fall as the financial markets are more liquid.

The end result is lower interest rates, more financial liquidity, higher asset values, and ultimately greater consumer confidence. In short,

higher oil prices could boost economic growth.

The IMF said that the assumed connection between oil prices and GDP (falling oil prices will boost GDP as consumers have more money in their pockets) is not as solid as previously thought. Many analysts, including those at the IMF, once assumed that although oil-producing countries such as Saudi Arabia would be damaged from low oil prices, the benefits to consuming countries would more than offset those losses, delivering net benefits to the global economy.

High prices for oil fuel the same sort of process as in any other sector; suppliers look for

ways to provide more of the product and take advantage of those higher prices. For energy, then, that means opportunities for companies involved in exploration (seismic survey, for instance), drilling, production, and servicing. “Honest truth of what is happening and real-time information always works with clients so trust is built in a relationship, we have no control over the pricing changes but we do have good information resources so can feed this same information to our clients,� added Paula Bellamy.

Oil price fluctuations aside, managing increasingly complex customer relationships is a

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Site Visit

Planning Management on Site Logistics News ME visited the Meydan One mega-mall project site and talked to Azmi I. Abuhantash, Project Director, Turner International Middle East Ltd about the importance of having on-site facilities to ease the completion of their project.

The movement of materials and equipment from where they originate to where the workforce needs them is an important element of any construction site. This material and equipment need to arrive on time and undamaged.

A simple illustration of logistics for construction sites is moving precast concrete from the plant it is made into the site. Also, when delivered, a crane will be needed to hoist the precast panels into position. So, the material is the precast panels, equipment is a hoisting crane, and there is the crew that will use them.

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The concept of logistics was developed initially within the manufacturing industry, and now constitutes an important management tool to ensure an overall strategic perspective on the flow of materials in the production process.

Meydan One, which is currently under development as part of the Mohammed Bin Rashid Al Maktoum City in Dubai, has announced that the project is on track for its launch in early 2020 with 60 percent of structural work already completed.

In order to ensure the project gets completed on time, the site has its own onsite facilities such as on-site concrete batching plant and large storage facilities.

Mr. Azmi I. Abuhantash, Project Director, Turner International Middle East Ltd, explains: “The following are some key temporary arrangements made onsite to facilitate and ease the construction process. To establish an on-site concrete batching plant and ready-mix concrete production facility and provide large storage facilities, not only within the project

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Lionel Haggard

perimeter, but also in close proximity to the site, allowing contractors to have sufficient material in stock, such as precast structural concrete elements, reinforcement bars, formwork, and plant.”

This is particularly true when it comes to cement. Since any contact with director airborne moisture can cause the cement to set, it must be kept dry. In terms of organisation, it is advisable for a rotational system to be used, whereby the first batch of cement delivered is the first to be used thus cutting down time is important.

To keep a construction site productive good planning is key. The general contractor has to create a timeline for each stage of the project far in advance of the project start. The plan must include a total inventory of materials, equipment, and tools needed for each stage of the project. When you effectively manage materials from their source to your site you reap the benefits from it.

“The ready-mix concrete production facility has optimised efficiencies by reducing the time-cycle of concrete delivery to the site. The close proximity of the concrete batching plant not only saves on delivery time by avoiding delays due to traffic jams, but it also reduces transportation expenses. In addition, it helps bypass RTA time restrictions for the movement of heavy vehicles, thus ensuring the timely supply of concrete.

Due to the massive scale of the structures of the mall and mall parking, the structural works

have been divided into different zones that require timely supply of concrete, reinforcement bars, formworks etc. The above facilities have also benefited significantly from the timely supply of construction material to each zone, assisting in the reduction of handling times / construction works.”

“Additionally, it contributes to the reduction of the density of concrete trucks on the roads and the subsequent traffic jams on the Dubai

roads network, thereby benefitting the environment through carbon footprint reduction,” remarked Mr. Azmi.

Having a timeline of project stages planned in advance, with a full inventory of materials and tools required, is a key part of logistics management. “Arrangements such as concrete batching plants in close proximity of the project site clearly contributes to reducing the duration of transportation and delivery of concrete and other materials to the physical site.

This, in turn, translates to reduced construction cycle times and associated costs, allowing the contractors to meet timelines with more speed and efficiency.”

“This was made possible by the phased nature of the Meydan One Master Plan which has benefited the construction material storage and delivery cycles tremendously. But more importantly, it has allowed contractors to increase their efficiencies by planning and implementing project schedules and material deliveries and ensuring round-the-clock operations with minimum disruptions,” added Mr. Azmi Upon completion, Meydan One will host 580 retail stores including 30 anchor stores and 80 flagship luxury stores, 190 dining outlets and a 13,200-square meter hypermarket. These will be located across indoor and outdoor spaces oriented by an iconic retractable sky lit atrium space named the “Canyon” measuring 160 meters by 100 meters, featuring flexible areas for events and entertainment as well as unique al fresco dining experiences.

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Interview

Mobility Edge

Honeywell’s Mobility Edge platform offers an agile approach to unleash IT from the constraints around integration and inflexible technologies – without sacrificing the enterprise security, reliability, or mobile worker productivity tools your business demands. Logistics News ME caught up with Miroslav Kafedzhiev, vice president and general manager, META, Honeywell Safety and Productivity Solutions who gave us an overview of Honeywell’s Mobility Edge What does the Mobility Edge Platform™ signify? How can an organisation benefit from it?

Economic diversification and transportation infrastructure development are two key drivers of economic and logistics industry growth in the MENA region. In recent years, the region has emerged as a major transhipment hub, with its strategic location advantage and improvement in air and sea port infrastructures.

Coupled with this, GCC e-commerce is on the cusp of becoming the world’s fastest growing market with the Middle East E-commerce market set to reach $69 billion by 2020. As consumers become more tech savvy and embrace e-commerce, they also become more demanding. Consumers are increasingly expecting faster delivery times for their orders and many are expecting ‘free’ shipping.

To respond to these market challenges and growing consumer demands, transport and logistic organizations are turning to new technologies to make their workers more connected, in turn ensuring a seamless experience for the customer. The Mobility Edge Platform™ is a new hardware and software solution used by distribution centers, transportation and logistics providers, and retailers to increase worker productivity and capture critical data. Other benefits include reducing certification overhead and lead times, extending product life cycles, and reducing IT support overheads.

What are the key components of the Edge platform?

The Mobility Edge Platform™ is made up of hardware architecture and a suite of software tools on which customers can build future mobility solutions. These include rugged handheld computers, voice-directed technology and vehicle-mounted computers.

When developing this solution, Honeywell partnered with Google and Qualcomm to fur-

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ther enhance the offering. The platform is designed for Google’s Android Enterprise operating system, which is increasingly becoming the standard for industrial mobile devices.

As well as supporting current and future versions of the OS (through Android R), Honeywell also provides consistency across next-gen devices. This makes it easier for customers to manage device refreshes and quickly deploy software applications without having an enterprise come to a halt in order to upgrade software or retrain the workforce.

Does the platform ensure complete cybersecurity too?

The platform provides customers with the ability to leverage Google and Qualcomm security patches for the longest time period currently offered in the industry – seven to eight years.

The security patches are able to reduce the risk of cyber threats.

Does Honeywell offer training and workshops to help users understand Mobility Edge?

At Honeywell, we are committed to providing our customers with the tools to maximize their investments. We achieve this by offering readily available and ongoing training. Specifically for the Mobility Edge Platform™, we have organized webinars and face-to-face trainings for our partners – we have also hosted tech days for end users and will continue to do so in the future.

What are the other Honeywell solutions linked to the Mobility Edge system?

Following the launch of the Mobility Edge, we have released three devices that sit on the platform. The first to be announced this year was the Dolphin™ CT60 handheld computer. The mobile device is designed for transportation, logistics and retail workers that require on-thego real-time connectivity to business-critical applications and fast data capture capabilities to ensure consistent and productive working.

The second device we launched this year is the Dolphin™ CN80. This is a hybrid device that incorporates both a traditional keypad and a large touchscreen interface to allow workers to quickly input data. The handheld computer is designed for demanding environments, including distribution centers, field mobility applications such as pickup-and-delivery and direct store delivery, and offers options for challenging working environments.

The third is the Dolphin™ CT40 mobile computer which is an attractive full-touch rugged device that empowers sales associates to speed-up and improve service at every touchpoint instore.

We are continuing to roll out devices that sit on the Mobility Edge Platform™ which support the region’s transport and logistics organizations so that their connected workforce is more efficient and in turn, reduces overheads.

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“At Honeywell, we are committed to providing our customers with the tools to maximize their investments.

We achieve this by offering readily available and ongoing training. �

Logistics News ME | January 2019 | 37

O p - Ed

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Opinion

Mr. Harris Kalandan, Chairman and Managing Director of Shipwaves and Mr. Abid Ali, Chief Financial Officer of Shipwaves talks about the predictive supply chain solution

D

ata analytics play a critical role in improving a logistics company’s inventory management. This specific realm of operations can be one of the more complex equations in terms of optimization because of the costs associated with inventory and the parameters at play.

Visit the news page on Google and type in “logistics analytics” and you will see a dozen articles from news outlets around the world that have been posted just within the last few hours.

You’ll see announcements of startups launching, offering a new iteration on data analytics services, retailers signing with SaaS companies, and prominent industry leaders announcing their own endeavors -- and that’s just within the world of logistics. Businesses across the regions and industries are digitising in the name of Big Data because of its perceived value.

Data isn’t valuable because it is rare or difficult to come by. In the digital age, it has become somewhat of a ubiquitous commodity.

There is such an abundance of it there is even a term for data about data (metadata.)

While many can harness data, few are able to analyze it, which is the key to accessing the value of data that is so often talked about.

That’s where “analytics” comes into play. In the following article, we will discuss what we mean when we say “data analytics” and the true implications in terms of different logistics sectors’ ROIs and bottom lines.

Data analytics When we talk about data analytics, we are usually referring to its applications in business-toconsumer (B2C) context. Organizations of all kinds can collect and analyze data associated with consumers, business processes, and markets, and then categorize and store it in order to derive insight into future purchasing trends and industry patterns.

Websites and social networking platforms like Google, Instagram, Facebook, and Twitter all collect their own data on user demographics like age and gender. With this data, the companies are able to make connections and predict trends -- a capitalist’s dream come true. Spe-

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Shipwaves’ dashboard displays all the historical data about a shipment

cific to the logistics industry, data prominently refers to a shipment, like booking number, the point of origin, live location, expected arrival, etc. These data are all available in Shipwaves platform for users to track at any time.

The value of data analytics in the industry cannot be over-dramatized. Why? Think of the application of data analytics as a crystal ball for consumer demand and industry trends. The more data in your possession, the better you can understand your target market and forecast trends. The end result being a more accurate crystal ball.

Improving facilities’ efficiency Data analytics play a critical role in improving a logistics company’s inventory management. This specific realm of operations can be one of the more complex equations in terms of optimization because of the costs associated with inventory and the parameters at play.

Here, maximizing profit means minimizing the amount of time that inventory is in your possession, but at the same time, utilizing your facilities to the highest degree possible.

For example, if you are a logistics company

with x square feet of warehouse capacity, your goal is to make sure that you are constantly using as close to “x” square feet of space any given day to ensure you’re getting the most “bang for your buck” for the “y” dollars that you sink to rent or own that space per month.

Idle space is wasted money.

On the other end of the seesaw, you need to be aiming to minimize the amount of time that inventory spends in your warehouse.

Why? Because the more time a specific shipment spends sitting, the more money you are spending on inventory costs per shipment. Say you were to set the supply chain back one extra week by telling your buyer that the shipment will arrive on Jan. 15 instead of Jan. 8. You no longer have to worry about sending the shipment late, but instead, you’ll have to pay for an extra week of storage costs for that inventory.

So again, you lose out. In the end, this move detracts from your ROI. Data analytics can be used to help you determine a much narrower window of time to allocate for depending on the products, vendors, and shipments, so you won’t have to allocate more warehouse time than necessary,

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reducing excess inventory costs and maximizing your bottom line.

Improving project management and risk management Project management is another realm that analytics are directly applicable. It is a discipline that is sometimes mistaken as easily handled on an amateur level, however, good project management is a science in itself, built on a foundation of data.

Similar to inventory management, time is often an indefinite factor in project management. While there is no real “crystal ball” with 100% accuracy in project management, the degree of accuracy that analytics can boost your business’ efficiency by a surprising degree.

Project management software, or even manual project management in Excel, utilize your company’s data by applying probability concepts that you may have learned about in your Statistics 101 class. For instance, based on historical, seasonal and product data, a project manager or project management software can determine with a percentage accuracy that an event will occur within a certain range of hours or days. The key is correctly utilizing your data.

Having this degree of certainty enables you to tighten the timeline of your projects and make decisions with more confidence at every level, pleasing stakeholders, reducing costs that crop up along the way due to poor planning, and maximizing ROI. Improving ground operations Shipwaves’ services cover the supply chain from end-to-end. The mid- to the final-mile section of the supply chain is as important as the long haul sections of routes and are often the most complex to coordinate for logistics companies. Tightening up this area of the supply chain is crucial to staying on schedule, and the best way to accomplish this is by utilizing a TMS, which is simply a software platform for managing transportation data, like Shipwaves.

A study from the ARC Advisory Group, which conducts an annual analysis of the use of global transportation management systems (TMS) market shows that ROI gained from implementing a transportation management systems (TMS) is the most prominent accelerant of the sector’s growth.

Trucking is a uniquely well-suited candidate for analytics because of the plethora of data provided by electronic logging devices (ELDs) -- the devices that capture information on whether the engine is running, if the vehicle is moving, the length of the engine operation and

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Shipwaves’ shipment tracking tool looks at a macro level of where your shipment is in transit, but can also be useful during the crucial final-mile stages of transit to know where your cargo is as it moves through distribution.

and employing TMS software, companies can employ analytics to forecast demand, maximize capacity, and ultimately reduce freight spend. Based on the survey results, respondents that use TMS save an extra 6 percent on associated costs. These freight savings can be attributed to lower cost mode selections, better routing, and better procurement negotiations.

Mr. Harris Kalandan, Chairman and Managing Director

Abid Ali, Chief Financial Officer

miles driven that have been federally mandated in the U.S. While some industry members have encountered obstacles in implementing ELDs, in the long run, it is a valuable new source of data and an opportunity to improve efficiency.

By utilizing the data collected from ELDs

What can Shipwaves do for you?

Shipwaves provides Supply Chain Visibility like the insight detailed above, giving shippers effortless visibility across every shipment and all major shipping lines. In Shipwaves’ dashboard, customers can see details like exceptions that have occurred in the journey (rollovers, delays in POL, trans-shipment, etc.) and alert subscribers in real time for any critical exceptions, so that your company’s logistics and procurement teams can take preemptive action before a supply chain disruption occurs.

We also provide carrier performance insights, so our customers can plan their shipments based on historical lead times and carrier performance, and compare their carriers at global, trade lane and port pair level. Many of Shipwaves’ customers have utilized this data to drive contract negotiations and future allocation decisions.

Data analytics is a complex topic, but it doesn’t have to be daunting. To learn more about how Shipwaves can improve your company’s operations and boost your ROI, contact the Shipwaves team.

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Ta l k i n g p o i n t

FRESH COAT OF PAINT Logistics News ME talked to Mr. Samer Sayegh, Managing Director of National Paints about the company’s supply of marine paints and protective coatings National Paints was established in 1969 and has since striven to provide products that help make people’s lives more vibrant and colorful.

Founded in Amman, Jordan; the company has continuously moved forward by capitalizing on all growth opportunities and improving operating efficiency in order to expand their presence on the world stage and strengthen their product portfolio. One of the major companies

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under the Sayegh Group, National Paints has garnered a reputation for producing and distributing high-quality paint products and raw materials.

For marine and protective coatings, National Paints has a long-standing relationship with Transocean coatings from the Netherlands that dates back to 1988.

“We supply our Transocean range of prod-

ucts including anti-fouling, anti-corrosive and other paint coatings for ships and yachts, offshore and onshore rigs and for industrial installations,” said Mr. Samer Sayegh, Managing Director, National Paints, The partnership has helped the company supply coatings and antifouling for ships and yachts as well as coatings for offshore installations and industrial structures and these

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products are widely recognized and used all around the globe. In 1959, a group of marine paint manufacturers from different countries joined together with the objective of pooling their research and developing resources to enable coatings to be manufactured to an identical formulation and quality all over the world.

“We are the supplier of marine paints to many esteemed organizations in this field in the UAE such as Petroleum, Construction, Oil and Gas companies and Marine Services and Drilling companies for onshore and offshore oil operations,” remarked Mr. Sayegh The industry standards available for corrosion provide guidelines for anticorrosion design during a vessel’s planning and construction stages, as well as protocols to follow for maintaining corrosion protection systems during the life of the ship. There are a number of standards used. For example, maintenance standards for coatings cover areas such as surface preparation, coating application, coating inspection, and how to determine coating deterioration. The standards clarify what is required and make it possible for all parties involved with ship construction and maintenance to have a comparable understanding of the requirements.

Extensive research and development work have provided National Paints and Transocean Coatings with series of products which professionals acknowledge to be complete and of high quality. Manufacturing takes place using stringent formulations; whether a product is supplied in Europe, Asia, America, Africa or Australia, the quality is guaranteed identical.

It has now grown as the third largest manufacturer of marine paints in the world, made

“Our mission is to maintain distinct relations with our clients and work with them in a team spirit in order to ensure complete customer satisfaction ”

up of over thirty-member companies and over one hundred and fifty service points. With the member companies spread over almost all the continents, Transocean enjoys a wide reach and is able to supply the shipping companies wherever their vessels go.

Ranked number 31 in global sales; number 13 among the top 25 countries in Europe and number one in the Middle East and the Arab world in both sales and production – National Paints provide various decorative, protective, automotive, marine, powder and woodcare paints. Widely regarded as the region’s largest paint consortium, the company has an annual production capacity of over 450,000 tons with an estimated USD 250 million in annual sales.

They also export to 80 countries worldwide and are rapidly expanding their global presence.

The unprecedented development of the UAE since its formation in 1971 has resulted in a colossal surge in the construction industry.

As such, the country now boasts an infrastructure to rival that of any of the world’s developed countries and with so much construction and building activities taking place – there has been a massive demand for paint(s). National Paints has developed alongside the UAE and evolved into a major player in the global market. One of their most in-demand and popular products is their collection of marine paint.

Mr Sayegh concluded by saying, “Our mission is to maintain distinct relations with our clients and work with them in a team spirit in order to ensure complete customer satisfaction by providing them with high quality products using up-to-date scientific methods and techniques based on the latest research and development in the field.”

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I n d u s t ry p r e d i ct i o n

Predictions in Logistics Automation in Warehouses Four ways logistics automation will shape the warehouse of the future by Mr. Alain Kaddoum, General Manager, Swisslog Middle East Like many other industries, automation in the Middle East is going through a significant period of change, with a focus on increased efficiency. In order to be able to respond to these changes and remain competitive, embracing innovative technologies is now more important than ever before.

The pace of change has never been as fast as it is today, and those changes will ulti-

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mately influence the warehouse of the future. From demographic shifts to increasing urbanization, and from drones to 3D printing, social and technological changes will put pressure on supply chain and logistics managers to move goods closer to consumers and develop warehouses with the flexibility and speed to support local, faster delivery through multiple channels.

The goods that make their way through supply chains ultimately end up with consumers, and consumers not only drive demand but set expectations for delivery. 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

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$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.

Like many other industries, automation in the Middle East is going through a significant period of change, with a focus on increased efficiency. In order to be able to respond to these changes and remain competitive, embracing innovative technologies is now more important than ever before. Technologies like the Internet of Things, dynamic enterprise management, global supply chain visibility, and machine learning are already changing the way manufacturers produce goods and interact with customers. Several technologies have a role to play. Cloud deployment, advanced ERP solutions, data science, predictive analytics, machine learning, smart sensors, and online portals all play a part.

Alain Kaddoum, General Manager at Swisslog Middle East identifies some predictions in logistics automation that will shape the warehouse of the future.

Prediction 1: Warehouses will move closer to the customer Studies show that 20 to 25% of consumers would pay significantly more to receive items on the same day. Thus, the warehouse must move closer to customers it serves. 2019 will see a growth in urban distribution centers (urban DC) that stage products close to users within large cities to enable faster delivery and a more seamless omni-channel experience. The obvious challenge to this scenario will be the space limitations and relatively high real estate costs inherent in urban markets. This will dictate compact and efficient warehouses with limited inventories that are optimized using predictive analytics and supplemented with 3D printing.

Prediction 2: 3D printing will disrupt warehouses Similar to many warehouses today, the urban DC will need to hold some inventory. However, since space is limited and product ranges are likely to continue to expand, this inventory will be limited. Products not available in the limited inventory may be 3D printed. This reduces inventory requirements and allows the creation of individualized products. In principle, smaller items, and products that are sold regularly would be held in stock. Inventory size would be minimized through 3D printing and use of big data to predict behavior and distrib-

Logistics News ME | January 2019 | 45

I n d u s t ry p r e d i ct i o n

ute articles to the urban DC just before they are ordered. Because the urban DC will support multiple sellers in a shared service model, this creates the opportunity to consolidate articles from different sellers into one shipping carton to reduce shipping costs and enhance the customer experience.

Prediction 3: Pre-picked goods and parcels will be consolidated for last-mile services With the rise of e-commerce, consumer preferences have become the center of attention in the formerly business-oriented parcel delivery market. Large e-commerce players, as well as various start-ups, have identified last-mile services as a key differentiator amongst their competitors. In fact, the variety of delivery options and the perceived quality of the delivery service are the major criteria’s for online customers and hence directly impact e-commerce players’ success in the marketplace.

The global e-commerce revolution continues to fuel rising demand for parcel shipments around the world. Forrester Research predicts

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a 10% year-on-year growth for online retail in Europe and the US. The pace is picking up even faster in Asia; by the year 2020, the online retail market in China is projected to be equal to that of France, Germany, Japan, the UK, and the US combined. Therefore, to help businesses drive efficiency, cut costs and meet the last mile delivery challenge, new technologies are steadily being introduced. These range from drones and autonomous vehicles to robotics, automation, and smart technology. Innovations such as electric vans, parcel lockers, and smart door locks, have gone from pilot testing to being deployed at scale. Over the next few years, the deployment of these technologies will rise.

Prediction 4: Mobile Robotics will become the norm As e-commerce and on-demand economy continue to grow worldwide, a new generation of autonomous mobile robots will be introduced to help companies tackle major labor challenges posed by this rapid expansion and demand.

This new generation of mobile robotics will

be configured to support same-day delivery, or customer pickup through a combination of autonomous vehicles, robotic picking and loading, drones and mobile pickup points.

This type of technology will play a significant role in delivering the speed and efficiency required and automating the movement of products from large regional warehouses to the urban DC while enabling faster picking, loading, and delivery of these products.

Supply chain managers are already dealing with a myriad of technology and market changes as they implement modular, automated solutions to increase productivity and throughput in their warehouses. However, the changes occurring in society, with more disposable income and higher consumer expectations, may stretch existing distribution networks beyond their ability to adapt.

The solutions emerging today in terms of automated guided vehicles, automated picking and intelligent, modular software provide the speed and flexibility to support these core capabilities and will continue to evolve to meet the demands of the future.

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Shipping

Is Smart Shipping the Future of the industry?

Group CEO of Gulftainer, Mr. Peter Richards discusses the progress of using smart technology within the shipping industry Shipping is stepping into a new era where smart technology and advanced data analytics are starting to become the norm. Changes are taking place in such a short time pushing decision makers to act faster. The industry is going through a period of transition from the old traditional version of the shipping industry to a more digitally advanced one where the main drivers are the access and process of Big Data, automation, Internet of Things and limitless connectivity.

Even though this is the case shipping revolu-

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tions generally take their time, creeping up on unsuspecting ship owners who just want to get on with managing ships and moving cargo.

Mr. Peter Richard, Group CEO, Gulftainer, describes why the idea of moving towards smart shipping will take its time, “Smart shipping is a painstaking process that demands adequate time to come into being, mostly due to the range and diversity of the stakeholders involved. Whereas, the availability of technology and skills is also relatively low, with many innovations still undergoing testing. On the

other hand, the shift toward new technology requires collaboration, which again is a complex process. However, a joint effort to educate the stakeholders about the benefits of change is crucial to achieving the best results.�

The debate of whether any company should go fully automated or semi-automated carries on but Mr. Richard believe there needs to be a balance when it comes to making these decisions. “As we have seen across every industry, automation is a double-edged sword. On one

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hand, it reduces or replaces certain manual functions used in legacy processes. On the other hand, automation creates new roles which require new skills to be learned by the workforce. So, the argument that automation only replaces and causes job losses is not correct. Implementation of the smart ship must run hand in hand with the human dimension because new roles and competencies will be required for smart ships, alongside the upscaling of existing job roles,” explained Mr. Richard.

“We intend to adopt a hybrid of full automation and semi-automation at Gulftainer.

For example, when it comes to health & safety and quality protocols, we will work towards full automation. However, where efficiencies are considered and human intervention is key, we would favor semi-automation,” Mr. Richards added.

When asked about what changes Mr. Rich-

ard has seen in the shipping industry over the last few years, his answer is similar to what most industries are going through; mergers and acquisitions are on the rise: “This is the age of mega-ships. As we have seen in the past few years, the biggest impact of post-Panamax ships has perhaps been the string of alliances between shipping companies, rendering many fringe operators that were once behemoths to go out of business,” remarked Mr. Richard This is largely true, and with this restructuring of shipping lines comes the challenges for terminal operators, many of whom, even today, are not equipped to accommodate these larger vessels and more cargo, all while maintaining or improving operational performance.

“The knock-on effect of ultra large container vessels (UCL), which currently stand at the 18,000+ TEU levels and are only set to grow in

the next five to 10-year period, has prompted many terminals around the world to find the most effective way to process the substantial increase in cargo while managing the cost.”

Whilst container handling equipment has undergone several enhancements in response to this trend, the most widely accepted response is to adopt process automation or semiautomation across port/terminal operations.

“Ports are competing to adopt the new generation of technologies (artificial intelligence, the blockchain, IoT) to digitize and automate processes, in a bid to offer carriers pricing benefits and faster services. With the internet and associated hardware being commoditised, more and more players are moving towards ebased operations and are willing to make B2B connects for more integrated and central operating platforms,” added Mr. Richard.

Changes like this meant that Gulftainer had to make the necessary changes to compete in this ever-changing environment. “We have consistently strived to be ahead of the curve of global shipping trends, as demonstrated by our digital transformation strategy. With in-house initiatives such as our ‘Performance Excellence’ program, EmPower, and the ‘Terminal Partnering’ collaboration projects with our customers. With advanced software and technology in place, Gulftainer has remained ready to welcome these mega vessels to our facilities, enabling us to offer more e-services, which minimizes the delays of querying and processing information in the legacy manual format.”

Gulftainer’s newly enhanced digital infrastructure ensures that operations can be adjusted and evaluated for efficiency. It provides realtime computing power to help operators keep up with a large amount of cargo entering and leaving ports on mega ships, while making sure that containers are unloaded and loaded without a hitch, in the shortest turnaround time.

This is where upskilling becomes crucial, calling for training programs that factor in more cognitive elements within the non-automated roles, thereby reducing the focus on physical labor. Data and analytics, for example, should empower mariners to perform better in their roles.

Mr. Richard’s concluded, “Notably, less than five per cent of container volume has been reportedly managed by fully automated terminals in the past two years, demonstrating the slow pace at which this trend is catching on. The key takeaway here is that as everything gets connected and integrated, collaboration, engagement and education and even the buyin of involved people and teams become a defacto success factor.”

Logistics News ME | January 2019 | 49

Supplier Focus

GROWING AMBITION Kasun Illankoon spoke to the founder and managing director, Mr. Deepak Khushalani, about Premier Logistics growing ambition.

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Ever since their inception in 2016, Premier Logistics has achieved a year on year growth of 20% and likewise for 2018. From a team of just three, the company has now grown to thirty.

Premier Logistics is a third party logistics (3PL) company that provides supply chain solutions which deliver a great return on investments for any organization.

The parent company of Premier Logistics, Maneesh Textiles began operations nearly 45 years ago, a firm that was dealing in textiles wholesale as well as the retail trade. Managing the stock was an eye opener for the company’s founders since managing the volume at such a massive scale meant using 3rd party providers for shipping, clearance, and delivery. This was an opportunity that could be done in-house and expand as a service for other companies.

“Starting small and scaling up has taken well over 3 years, but at the forefront has been the vision of the founders and shareholders to provide good service and the heart of its principles has been energetic staff and a will to get things done. What drives any organization has been motivated employees and Premier has always kept this in mind. Acquisitions of smaller providers will be on the radar if it will add value to the service offering,” said Mr. Deepak Khushalani, Founder & Managing Director of Premier Logistics.

For Premier Logistics, 2018 has been a year of consolidation and establishing a solid foundation for 2019.

“This year was about establishing and growing internally, specifically bringing on board a set of an experienced team of professionals that can drive the next 2-3 years of growth and lead the expansion. Focused mainly on employees, giving them the responsibility to drive their departments and in tandem establishing and connecting with current and new clients.”

Premier Logistics offers a full range of logistics and supply chain solutions with an international multimodal network of warehousing and transportation. With innovative industry solutions, our integrated services include all aspects of warehouse management (Infor SCE 10), logistics planning, control, and execution as an extension of your supply chain ecosystem.

The last 12 months was to establish various verticals within the organization. Premier Logistics has successfully established a successful Finished Vehicles Logistics (FVL) division in collaboration with a leading Vehicle Distributor in the Middle East. Moreover, and have also developed an in-house value added services (VAS) department currently catering to over 70 brands within the Middle East, providing

services such as Co-packing, Shrink wrapping, Labelling, Barcoding, Repackaging and much more.

“Due to the rapid expansion of our business, we have also managed to secure additional storage facilities (Open Yard and Bulk Storage) for Project Logistics with services such as Lashing and Crating for bulk items,” added Mr. Khushalani “Our goals for 2019 include expanding our Warehousing Capacity through International Joint Ventures and build & operate a new stateof-the-art facility within Dubai.”

One of the advantages of working with a 3PL provider is the ability to easily position your supply chain in markets where you don’t have an established presence. Having access to distribution centers and warehouses in various regions allows companies to grow in new areas by being able to ship goods efficiently to anywhere in the world.

Being able to locate and keep track of products and inventory in a new market without having to spend money on warehousing, equipment, and additional labor can save companies money while giving them the opportunity to strategically position themselves to better serve their customers.

“In this regard, we aim to increase our current business by offering our clients improved end-to-end visibility of their goods through our Logistics Management Portal.

Our other plans for 2019 include the estab-

lishment of a Chemical Logistics and an Aviation Logistics Division.”

An important aspect of Premier Logistics success is the initial investment towards IT and digitalisation within their organization. From selecting the leading WMS (Infor SCE 10) to creating an in-house Logistics Management Portal (LMP), where a client can directly track, view, modify, request inbound/outbound, reserve dock space for their inventory stored within our warehouse.

As such Mr. Khushalani expressed the importance of continued investment in the company’s IT infrastructure in order to face further obstacles ahead of them, “To be visible and to continuously grow it’s about the development of IT infrastructure, investment in niche areas of e-commerce final mile delivery, managing stock, cold chain & chemical related industries.

Managing customer expectations and maintaining margins is certainly a challenge.”

“There is a trend of more digitization within the industry, which is positive because that is one of the focus areas of Premier and a more professionalized level of service. Service level’s which tapered off recently have become a talking point for big clients that are looking to service larger parts of the region and that means experienced staff to handle complex tasks. The ability to be available and a more dynamic approach to work is a need of the hour. And that is certainly what we are focused on,” remarked Mr. Khushalani.

Logistics News ME | January 2019 | 51

Supplier News

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

CEVA Logistics plans to begin new road service between China and Europe

After more than six months preparation, CEVA Logistics Greater China has sent the first ever TIR (Transports Internationaux Routiers) truck from Khorgos, China via Kazakhstan to Europe. The trial run was on 13 November, 2018 and was successfully operated as a joint initiative between CEVA Logistics, the IRU (International Road Transportation Union) and CEVA’s partners Alblas and Jet-rail. The truck arrived in Poland on 24 November, with no disruption or Customs issues after 11 days on the road.

The new road service will deliver a cost saving of about 50% compared to air options.

With a lead time door-to-door of between 10 to 15 days, it will

be 30-50% faster than rail.

Customs sealed in Khorgos, the first TIR truck from China to Europe started its 7,000 kilometers journey via Kazakhstan, Russia and Belarus to Poland in the afternoon of 13 November “This is a day to remember. Together with our partners, we have trialed TIR all the way to Europe today the very first time,” said Kelvin Tang, Director Road & Rail” at CEVA Logistics Greater China.

Undoubtedly contributing to the success of the Belt & Road Initiative in the near future, the international customs transit system TIR became active for the People’s Republic of China in May 2018.

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“Since then we started to investigate the possibility and feasibility of road transportation from China to Europe in order to find an alternative to the escalating air freight market,” says Torben Bengtsson, Executive Vice President of CEVA Logistics Greater China. “Thanks to the implementation of the TIR system this year, and the great support of IRU, the Research Institute of Highway Ministry of Transport (RIOH), and the Xinjiang government, we were able to make this trial run happen together with our partners Jet-rail International Transportation in Shanghai and Alblas International Logistics in the Netherlands.”

Umberto de Pretto,

IRU Secretary General, congratulated CEVA Logistics and its partners on the success of the trial: “This first TIR journey by road from China to Europe is a win-win-win model for business, trade and governments and will be a game changer for cross border transportation in China. It will boost trade between China and Europe, which will help China and the countries along the Belt & Road route to reap the economic and development rewards of international road transport. It is also a wakeup call to European hauliers who can seize the opportunity to benefit from round trip operations.” www.cbnme.com

Octo b e r 2 018

Strata Manufacturing partners with DHL Global Forwarding to bolster aerospace supply chain

DHL Global Forwarding, the leading international provider of air, sea and road freight services, has been selected by Strata Manufacturing, the advanced composite aero structures manufacturing company wholly-owned by Mubadala Investment Company PJSC, to provide Fourth Party Logistics (4PL) services spanning its entire supply chain.

The five-year agreement aims to minimize Strata Manufacturing’s shipment times along its global supply chains, with DHL Global Forwarding taking responsibility for all warehousing, freight and customs clearance of aero-structures produced at Strata Manufacturing’s facility in the Nibras Al Ain Aerospace Park — the multi-faceted development that supports the establishment of a sustainable aerospace industry in the Emirates with a vision to become

a global benchmark in the aerospace industry.

The partnership will see DHL Global Forwarding set up a 2,500-square-meter warehouse in Abu Dhabi for storage and consolidation of all Strata shipments, equipped with high-volume racking, as well as fully-managed kitting, packing and dispatch process to support the company’s growing capacity requirements.

“We’re excited to partner with Strata Manufacturing to support its growth strategies. With the aviation industry expecting positive growth, Strata’s growth horizons for its wing components and tail assemblies continue to look optimistic,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa.

“Strata has established itself as a strong global player in the aero-structures manufacturing sector and we re-

quire world-class logistics capabilities to ensure our technology and manufacturing best practices reach our international customers at speed and without compromise,” said Ismail Ali Abdulla, CEO, Strata Manufacturing. “DHL’s global freight network and warehousing infrastructure, coupled with its expertise in handling the sensitivities of aerospace products, will support our goals for further international growth.”

The fully-managed supply chain will support both time-critical “aircraft on ground” needs — where planes require immediate support with replacement components — as well as consolidated outbound shipments to Strata’s overseas customers; Airbus and Boeing, which are two of the largest aircraft manufacturers in the world.

Under the agreement, DHL

Global Forwarding will also provide end-to-end control tower services spanning the movement of shipments, from manufacturing facilities in Al Ain to storage in the new Abu Dhabi warehouse and DHL’s European warehouses, which serve as global hubs for overseas distribution. At each stage, DHL’s customs clearance personnel will work with Strata Manufacturing to ensure the seamless flow of goods both into and out of the country.

DHL Global Forwarding will also automate a significant part of the 4PL process, including deployments of integrated management platforms for warehousing, ordering and transport; as well as employing lean methodologies to reduce manufacturing, packing and transit times.

Logistics News ME | January 2019 | 53

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

January

7-8

January

16-17

Texas Transportation Forum Austin, Texas, USA The mission of the Texas Transportation Forum is to annually bring together transportation leaders and advocates, industry innovators, local, state and national policy makers to discuss the “State of Transportation” and how to take “beyond the box” ideas and turn them into reality.

Biomass Trade Summit Europe Rotterdam, Netherlands The two day event will give you an insight into the industry`s latest regulations - The Renewable Energy Directive (RED II) & Sustainable Biomass Program (SBP) certification schemes impacting on biomass sustainability & operations, biomass transportation & logistics in the environmental context, the future of biomass sourcing , as well as long-term economy & investment strategy paths.

54 | Logistics News ME | January 2019

International Conference on Transportation Infrastructure Projects Conception to Execution

January

7-10

January

23-25

Roorkee, India The International Conference on Transportation Infrastructure Projects Conception to Execution aims at bringing together the industry and academia involved in the transportation sector. The conference focuses to understand how transportation infrastructure projects have been conceptualized, designed and executed so as to bring the desired development in an area.

Digital Supply Chain Transformation Berlin, Germany By attending this Marcus Evans event you will be able to learn from practical implementations of digital technologies into existing supply chain frameworks and processes, and cut through the hype of all things digital in order to pragmatically analyse what a digital strategy can do for your organisation. We will look into how to unlock blockchain, whether it does bring extra value or not, and explore the uses of machine learning and advanced analytics. Join a thoughtful discussion with industry experts who have already implemented digital initiatives. www.cbnme.com

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