Logistics News ME - May 2016

N e w s A na l y s i s

In F o c u s

Sector focus

The industry impact of global security

The decline in bulker contracts

Regulating the chemical supply chain

Connecting trade professionals with industry intelligence

MAY 2016

Start 8 | News 15 | In Focus

The latest bulker trends

Contents

16 | News Analysis Aon names the territories that could face a rough future if global security isn’t tackled

Features 20 | Tech: BYOD The future of device management in the workplace 28 | Sector Focus: Chemicals A look at the lack of legislation around the transportation of dangerous goods 34 | Cover Story: The

34

40 | Face to Face

50

Innovators The next-gen businesses re-writing the rule book

Ruth Waugh explains why new build facilities make the grade

42 | Country Focus

All eyes on Saudi Arabia

18 26

48 Logistics News ME | May 2016 | 3

Editor’s Note The language of change

I

nnovation is about bringing something new to the table; changing an established pattern or product and revolutionising how things have traditionally been done.

Often, the word is mis-used to such an extent it has the same effectiveness as business buzzwords like “disruptive”, “value added” and “win-win”. Words that were meant to mean everything, but actually contribute very little.

When true innovation is captured, it can bring about a change for the better, open new business streams and breathe new life into old economies. Most of the changes we have seen of late are based on what is known as the sharing economy; from car shares to non-traditional travel accommodation, these are the ideas changing the world for millions of consumers. These are the ideas that gave rise to AirBnB and Uber on the one hand, and on the other, the likes of LoadME. It’s the idea of using technology to redesign how business is done in a way that will maximize returns.

In a way, it was to be expected that these innovations would transform supply chains. But in the context of the traditional logistics industry, the wide-reaching effects of these changes are still a surprise. These are businesses which sit on top existing business, provide services, combine resources, reduce wastage and provide new opportunities. These are the SMEs re-writing the rule book.

Managing Director Walid Zok Walid@bncpublishing.net

Group Editor Melanie Mingas Melanie@bncpublishing.net

Director Rabih Najm Rabih@bncpublishing.net

Sales Manager Vishvanath Shetty vish@bncpublishing.net

Director Wissam Younane Wissam@bncpublishing.net

Art Director Aaron Sutton Aaron@bncpublishing.net

Group Publishing Director Diarmuid O’Malley Dom@bncpublishing.net

Marketing Mark Anthony Monzon Mark@bncpublishing.net

LoadME’s CEO and co-founder, Sebastian Stefan, says the future of the transportation industry is hinged on the ability of companies to collaborate and provide not just one service or product, but link together in a way that breaks down the silos that traditionally segregated the eco-system, in order for each company to provide services to another. In this climate, business has a far stronger domino effect.

The impact on the logistics industry remains to be seen. Will margins compress? Will businesses be able to keep ahead of the evolution? It is no secret that everything must adapt to thrive and new ideas will be essential to keeping up the pace of that process.

This month our cover story looks at the top logistics industry innovators from across the GCC and a strong theme unites all those featured: while these are very much private sector players, they are fully supported by non- and semi-government entities.

Following the Year of Innovation in Dubai in 2015, it seems the notion of change isn’t just a flash in the pan but a way of working that is here to stay.

Melanie Mingas Group Editor

contributors Helen Gaskell Riad Mannan Brian Cartwright

SUBSCRIBE 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 Middle East contact P +971 4 4200 506 All rights reserved © 2014.

Opinions expressed are solely those of the contributors.

Logistics News Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News Middle East.

No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Images used in Logistics News Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

Printed by International Printing Press | www.ippuae.com

We deliver on Logistics The Rais Hassan Saadi (RHS) Group have been at the very front of the emergence of Dubai as a Shipping and Logistics hub since they started operations in 1910. Now over 100 years later, the company has evolved into the regional powerhouse it is today with diverse interests across the region.

RHS Logistics, the 3PL and supply chain systems integrator, operates from the Middle East, but with a truly global vision. Utilising the latest of technologies, and with a wealth of experience on diversified

product handling, in high quality, sophisticated environments, it has cemented its status as an innovative market leader within the Logistics industry.

With cutting edge facilities in Dubai World Central, Jebel Ali Free Zone, Dubai Airport free Zone adjacent to the Sea and Air ports, housing a total of 100,000 pallet locations, RHS have and will continue to

invest in first class infrastructure, ensuring they remain leaders in their field.

How can RHS Logistics help your Logistics business?

Call us on (971-4) 8810007, (971-4) 8082300 or visit rhslogistics.com

RHS Logistics represents the 3PL division of the RHS Group of companies operating out of Dubai, U.A.E.

RHS Logistics Established 1910

news

In The NEWS Arcapita acquires Al Quoz Logistics Park for $100m Investment firm Arcapita last month acquired a logistics park in Al Quoz, Dubai for a total transaction value of approximately $100 million.

The investment comprises nine freehold plots of land in the Al Quoz Industrial Area covering an area of approximately 630,000 square feet. The logistics park is strategically located next to Al Khail Road, one of Dubai’s main transport arteries.

“We continue to pursue investments in sectors where Arcapita’s management team has built significant expertise. We have managed over $8.1 billion in transactions across the global logistics market, including in the United States, Europe, Asia and the GCC,” said Atif A. Abdul Malik, Arcapita’s Chief Executive Officer.

The company recently exited a $360 million fund, ARC Real Estate Income Fund I, which was focused on investing in the UAE

and Saudi Arabia’s logistics and warehousing market.

By the third quarter of 2016, the site will consist of ten completed warehousing facilities that will be under a long-term master lease with a reputable UAE conglomerate.

The investment will capitalise on Dubai’s growing logistics market and will offer premium warehousing facilities to tenants in one of Dubai’s most established and sought after industrial areas.

Dubai’s growing retail sector is expected to generate significant demand for warehousing and logistics facilities as nine million square feet of gross leasing space enters the retail market over the next three years. Reflecting the demand for quality logistics facilities, average rental rates across industrial locations in Dubai have increased by approximately 20% over the past 20 months.

DAFZA outlines plans to adopt “national responsibility” model

Dubai Airport Freezone Authority (DAFZA) has developed a new model of corporate governance based primarily on spreading the concept of ‘corporate national responsibility’ (CNR), its enhancement on CSR providing institutions with ability to establish a leading commitment to strengthening the national identity based on international standards set forth by ISO 26000 related to social responsibility.

It includes foundations for promoting distinctive individual behaviours, ethics and corporate concepts which uphold the “national spirit”.

DAFZA is now preparing to offer this model to local, regional and global governmental and private institutions, with an aim to promote the adoption of national responsibility as an integral part of the corporate culture.

50% CEOs expect industry to be transformed by digital

RSA Logistics awarded CSR Label by Dubai Chamber

Half of all CEOs surveyed by Gartner, Inc have stated expectations that digital innovations will drastically transform their business and a growing number of CEOs are choosing to head up digital change in the business personally.

If they delegate primary responsibility, then the next most likely leader is the CIO. Further findings who that after growth (54%), the second and third business priorities are customers (31%) and workforce (27%).

RSA Logistics has been awarded the CSR Label for its sustainability and corporate social responsibility (CSR) activities by the Dubai Chamber of Commerce and Industry, presented by HE Hisham Al Shirawi, SVC of Dubai Chamber of Commerce and Industry, at a ceremony held at the head office of the chamber.

The company was recognized for for its commitment to its team members, clients, vendors, the wider community and the environment.

8 | Logistics News ME | May 2016

news

Dubai Customs attends 58th meeting of Arab Union of Land Transport

Abdullah A. AlMajdouie, chair of Arab Union of Land Transport and Mohammed Al Muaini

Dubai Customs has announced intentions to reinforce its support for land transport movements in the GCC and Arab countries through increased cooperation and coordination with the industry.

The announcement, made at the 58th annual meeting of Arab Union of Land Transport, which was held under the patronage of H.E. Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, UAE Minister of Infrastructure Development and Chairman of Federal Transport Authority – Land and Maritime, at Dubai Chamber.

Mohammed Al Muaini, director of Land Customs Centers Management at Dubai Customs said during his keynote address: “Dubai Customs attaches great important to being part of the Arab Union of Land Transport annual meetings, recognizing the importance of the road transport sector and its strong contribution to the economic, commercial and tourism development among the Arab countries. This participation also goes in line with the orientations of the Government of Dubai to provide ample support for all the activities and events that would contribute to improving government services.”

Muaini stressed that the United Arab Emirates adheres to signed international treaties and agreements aimed at promoting global best practices in the road transport business, particularly the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention), to which the UAE became a party in 2006. The TIR Convention establishes an international customs transit system with optimum facility to move goods across borders.

GulfNav unveils expansion plans to increase tonnage and grow service-based revenue

Gulf Navigation Holding PJSC has unveiled key expansion plans to increase assets and confirmed the appointment of Khamis Juma Buamim as a new board member, the MD and Group CEO by the Board of Directors during the event.

The move forms part of the company’s intensified strategy to become one of the main industry leaders in the regional maritime and shipping industries.

Chairperson Abdulla Saeed Abdulla Brook Al Hemeiri, and Khamis Juma Buamim along with other high-level executives, were present in the press conference to explain GulfNav’s strategy to grow its fleet of product and chemical tankers and reinforce its shipping services business.

In addition to acquisition of new tonnage, GulfNav will execute new projects and activities to contribute to turnover and profit growth over the next five years, including offshore support services, increasing shipping services and marine product sales and distribution through expansion of shipping services network within the Arabian Gulf and Gulf of Oman.

Buamim, who is tasked with restructuring the company and leading its expansion plans to achieve new levels of growth and development. The new MD and group CEO was previously the executive chairperson of Drydocks World and Maritime World from May 2010 until March 2015 and has successfully led the organization through its restructuring during a global financial crisis.

“With his wealth of experience and knowledge in businesses turnarounds, he will be instrumental in seeing through the company to restructure its balance sheet and resolve residual issues. Most importantly, his prominent role and stellar reputation within the maritime sector make him uniquely capable to open new doors for GulfNav and create opportunities and partnerships to realize its expansion plans. The Board of Directors has utmost confidence that Mr. Buamim will be able to steer GulfNav into a new course toward restoring its role as a key player in the maritime sector,” Al Hemeiri, said.

Logistics News ME | May 2016 | 9

news

Singapore ranked first by Fleet Value per Capita According to mapping, ship search and valuation provider, VesselsValue, Singapore owners control just under 2,000 deep-sea going vessels with a total value of $35.4bn. This equates to over $8,000 invested in shipping per person in Singapore, making Singapore the leading nation when it comes to vessel ownership in Dollar terms per head, with Norway, Denmark and Greece following.

The largest owner in Singapore is PIL, with a current fleet and orderbook of 138 vessels worth a total current value of $3,394m. The 80-vessel Eastern Pacific Shipping fleet is worth a similar amount at $3,128m. Both companies operate a diverse fleet ranging from bulkers to the largest size of containerships on order however, in terms of capacity, the overall Singapore fleet is evenly split between dry bulk carriers (47% of the total fleet by dwt) and tankers (44%).

Milaha posts declines across key performance metrics Qatar Navigation, Milaha Q.S.C., has posted a decrease in revenue of 1.9%, a decrease in operating profits of 7.2% and a net profit decline of 3.5% in its Q1 financial results.

Milaha Maritime and Logistics’ revenue declined by 2% and net profit by 22%, partially due to increased pressure on pricing, particularly in the container feeder business.

Elsewhere in the business Milaha Gas and Petrochem’s revenue grew by 63% and net profit by 23%, driven largely by the investment in two LNG carriers made in the second half of 2015 and stronger results from investments in associates and joint ventures. However, Milaha Offshore’s revenue declined by 10% and net profit by 47%, mainly due to a very challenging offshore business environment and a delay in vessel mobilization.

Milaha Trading’s revenue dropped by 22% and Mr. Abdulrahman Essa Alnet profit by 54%, driven by lower heavy equipMannai, Milaha’s President and CEO ment sales due to the slowdown in construction activities in Qatar and various related projects.

Milaha Capital’s revenue declined by 12% and net profit by 5%, mainly driven by lower dividend income.

“Although some of the segments in which we operate are facing some challenging times, we believe in the long term fundamentals of these segments and their ability to recover in the near future,” said H.E. Sheikh Ali bin Jassim Al Thani, chairperson of Milaha’s Board of Directors.

“With a strong balance sheet and a healthy financial position, we are confident that we will withstand the current headwinds and continue to invest in the future,” said Mr. Abdulrahman Essa Al-Mannai, Milaha’s President and CEO. In other news, a new build that will be the biggest lift boat to be owners by a Qatari company, the ‘Milaha Explorer,’ has been delivered to Qatar.

Al-Mannai said: “We are delighted to add the ‘Milaha Explorer’ to our fleet, which allows us to partner ever more closely with leading global energy companies to meet their diverse needs, now and in the future. We are optimistic about continued growth opportunities despite the current challenges in the oil and gas sector, and this new build lift boat will enable us to further strengthen our position in the region and beyond.”

Key financial highlights:

10 | Logistics News ME | May 2016

•

Operating revenues decreased by 1.9% to QAR 771 million for the three months ended March 31, 2016, down from QR 786 million for the same period in 2015

•

Operating profit decreased by 7.2% to QAR 259 million for the three months ended March 31, 2016, down from QR 279 million for the same period in 2015

•

Net profit decreased by 3.5% to QAR 352 million for the three months ended March 31, 2016, down from QR 365 million for the same period in 2015

•

Earnings per share decreased to QAR 3.10 for the three months ended March

news

Smart City Index pilot complete Smart Dubai has successfully completed its pilot phase for the initial Smart City Index with the ITU, a specialized United Nations agency.

Dubai is the first city worldwide to pilot the Smart City Index measuring citywide transformation across three main topic areas.

Following the pilot, Smart Dubai, the government body driving Dubai’s transition to Smart City, held official discussions to further revise the first global standard set of Smart City KPIs, measuring the transition across economy, environment, society and culture.

The discussions were held as part of the ITU-T Study Group 5 and the delegation from Dubai was led by Nasser Al

Marzouqi, from TRA, who is also UAE representative to the ITU and currently chairperson of ITU-T Study Group 20 and VC ITU-T Study Group 5; Noora Al Suwaidi, head of strategy and performance management at Smart Dubai

Office; and Dr. Okan Geray, strategic planning consultant.

Dr. Aisha bin Bishr, DG of Smart Dubai Office, said: “Through the Smart City Index, we are encouraging leaders across the globe to uplift their cities, with people’s quality of life at the centre.

Climate change and sustainability are real issues today and as city leaders, we recognise that we must take action now to preserve the cities of the future. That is why sustainability and quality of life are at the heart of the Smart City index. The Index will help cities around the world grow smart in a sustainable manner that will protect the environment and contribute to the best possible quality of life for everyone.”

Growth presents challenges. But with the right automation, there’s no limit to where your intralogistics operation can take you. Only companies who actively shape the transition from manual to automated intralogistics will remain competitive in the long run. Swisslog offers the widest spectrum of automation solutions, from conveyor systems to the latest ASRS goods-to-person technologies, from AGVs to advanced robotics.

No matter how you grow, grow smart with Swisslog. swisslog.com/GrowSmart-MiddleEast

Logistics News ME | May 2016 | 11

news

Aramex posts 12% profit Rockwell Automation growth in Q1 president and CEO named

Aramex net profits increased 12% in Q1, 2016 to AED 96.9 million, up from AED 86.6 million in Q1 2015. Revenues in the first quarter of 2016 increased to AED 1,048 million, up 13% compared to AED 930 million in Q1 2015.

According to the company, the results were driven by growth across all operating geographies. International Express recorded a strong performance in Q1, driven primarily by robust e-commerce growth across all markets.

The Domestic Express business saw an increase in revenues in key markets, particularly in the Asia-Pacific, where Aramex revenue growth for the quarter was positively impacted by the acquisition of Fastway Couriers.

Commenting on the results, Hussein Hachem, Aramex CEO said: “Despite global economic uncertainty, continuing oil price volatility and currency fluctuations, our performance in Q1 was very strong. Net profit growth could have been even stronger, up by 18%, had we not accounted for a one time acquisition cost of Fastway Couriers during the quarter.

Revenue growth, primarily in international and domestic express, was driven by the continued expansion of our crossborder e-commerce business across key growth markets and contributed significantly to our good performance this quarter. Though we finished Q1 strongly, we experienced slower growth at the end of the quarter. We are closely watching this trend so we can quickly adjust to any volatility, and we’re cautiously optimistic about continuing our growth momentum further into 2016.”

In the same quarter the company launched a new mobile app, which will be rolled out across the UAE and additional markets in Q2.

12 | Logistics News ME | May 2016

The board of directors for Rockwell Automation has elected Blake D. Moret, a 30-year veteran of the company, as president and CEO, effective July 1, 2016.

Moret, 53, is currently senior vice president of the Company’s Control Products & Solutions segment.

Keith D. Nosbusch, 65, who has been president and chief executive officer since 2004, will transition from those roles while continuing as chairman of the board.

Donald R. Parfet, Lead Director, said: “Blake has proven himself to be an exceptional leader, with demonstrated readiness to lead the company. We welcome him to his new role at the conclusion of a deliberate and planned succession process. We are delighted he will build on the Company’s many accomplishments under Keith’s direction and propel our vision of The Connected Enterprise to the next level.”

“The past 12 years have been transformational for Rockwell Automation,” Parfet continued. “We’ve become a global technology leader and the world’s largest company dedicated to industrial automation and information. Equally important, we are well positioned to accelerate our evolution with industryleading innovation that improves our customers’ global competitiveness.”

Moret is a graduate of Georgia Institute of Technology, where he earned a bachelor’s degree in mechanical engineering. He has served as chair of the board of the Manufacturing Institute of the National Association of Manufacturers. Additionally, he is a member of the Board of Directors for the Milwaukee-based Urban Ecology Center, the Board of Directors of the United Way of Greater Milwaukee, and the Advisory Board of the Woodruff School of Mechanical Engineering at Georgia Tech.

news

Supply chain excellence highlighted at GCPA Conference

Winners included: • DP World’s CT3 project, one of the world’s most advanced semiautomated terminals, representing innovation and technology.

• Maersk Line’s carbon pact signed with UAE plastics producer Borouge, for lower impact global delivery • Saudi Arabia’s Yanbu University

LOGISTIC SYSTEMS.

Turnkey overall solutions for the intralogistics System integration, storage and transport systems, automation, warehouse management software, retrofit, energy efficiency

Details and references under www.unitechnik.com

14 | Logistics News ME | May 2016

College won Best GCC Academic Institution for its BSc in Supply Chain Management and its Associate Degree in Materials Management Technology • A special student award was given to Bahraini student Amal Alsaffar for her research on the green supply chain for GPIC’s urea fertilizer distribution.

Unitechnik FZE Dubai Airport Freezone, UAE

DP World, Maersk Line and Yanbu University College all took first-place awards during the inaugural edition of the Gulf Petrochemicals and Chemicals Association (GPCA) Supply Chain Excellence Awards last month.

Winners were selected from 22 entries from across the entire GCC in four categories and honoured during GPCA’s Supply Chain Conference in Dubai.

“Being predominantly export-oriented with customers scattered over 170 countries, the region’s petrochemical industry has a very long and complex supply chain and thus, it represents over 30% of production costs, rendering ‘excellence’ in supply chain a key enabler for the global competitiveness of the industry,” said Dr. Abdulwahab Al-Sadoun, GPCA Secretary General.

Stand No. 5340

In f o c u s

Sink or swim

Two non-VLOC bulker contracts were placed in 2016 Q1, down from 78 over the same period last year.

Shipyards have little appetite for building bulkers while there is firm demand for more portable vessels.

Logistics News speaks to Craig Jallal, Vessel Value’s senior data editor about the industry impact

T

here were two nonVLOC bulker contracts . What placed in Q were these and what were they valued at?

The two contracts placed were for two 81,500 dwt Kamsarmax vessels placed

by U Ming Marine Transport of Taiwan, at the Japanese shipyard Oshima in mid-February 2016. No price was reported for the order at the time, but VesselsValue gave a market value of c. $22.5m for each vessel. These vessels have been ordered with unusually long delivery times of 2019 and 2020, respectively.

1 2016

Vessels Value has reported that new bulker contracts were down to two for the quarter, compared to during the same period last year. Why do you believe this is?

The driving force behind the trend is the dire state of the dry bulk market. The spot market and time charter rates are

78

too low to justify ordering a new dry bulk vessel unless there is a firm contract of employment with a firstclass charterer. Shipyards do not yet need to market dry bulk designs while there is a steady demand for tankers and other ship types.

Assuming no dramatic increase in Chinese steel production, these vessels will absorb a significant amount of the current Brazil-China iron ore trade.

This will squeeze out the independent Capesize vessels, which will have to seek alternative trades.

Can we expect things to have improved in Q ?

There are always circumstances at the micro-level as to why a shipowner will place an order. These range from a counter-cyclical play from a cash-rich owner looking to take advantage of low prices, to a genuine need to replace ageing tonnage. Therefore, there could be some orders, but the fundamental demand-side indicators do not yet justify such a move.

If the downwards trend in bulker contracts witnessed continues, what so far in could it mean for the bulker industry?

The longer term implication is that the bulker market will be driven toward consolidation. As is stands at the moment, ownership of bulkers is hugely fragmented. Unlike the liner sector, there is no single owner with a fleet of more than 100 ships, and only 16 owners with fleets of 51 to 100 bulkers. A quarter of the companies only own between one and five vessels. There exists significant potential in the bulker fleet for owners to consolidate as a way of surviving a long term trough in the market.

2

What does the trend mean for the Brazil China Iron trade?

The trend will not affect the Brazil Iron ore trade until the new round of Valemax vessels enter the market.

216

Logistics News ME | May 2016 | 15

n e w s A na l y s i s

Global business, local risk According to the Aon Terrorism and Political Violence Map 2016, political violence risks are greatest in Sub Saharan Africa where six countries have had their risk rating increased. In addition Aon claims there is a growing risk of coups in four key African states. Logistics News ME reports

D

espite the dominant threat posed by so-called Islamic State (IS), sudden and potentially violent political upheaval is just as severe a risk for international business according to the 2016 Aon Terrorism and Political Violence Map, produced in partnership with The Risk Advisory Group.

The map this year shows a rise in the number of countries with businesscritical perils due to coups, insurrection or war, with Sub-Saharan Africa experiencing the greatest increase in political violence risks.

The risk of coup d’état and insurrection has been attached to twelve more countries this year, including Angola, Saudi Arabia, Kazakhstan, Zimbabwe and Angola.

The majority of these additions stem from the risk of coups or other forms of power seizure, driven by uncertainties around succession in undemocratic or illiberal states. In Africa and other regions, a generation of aging autocratic leaders suggests that a tide of change is imminent.

Sub-Saharan Africa is the region where Aon found the largest concentration of countries with high to

severe risk. It also saw the most increases in political violence risk ratings this year, with six countries in the region having their risk rating raised – Angola, Burundi, Ghana, South Africa, Zambia and Zimbabwe. Kenya is the country that bucks the trend; its risk rating was reduced as a result of an improved security environment.

The threat from terrorism, specifically from IS looms large. While its activities took on more lethal and disruptive proportions in the West, the most active regions for terrorism in the past year in terms of volume of attacks were by far The Middle East (1,114 attacks), followed

by South Asia (799 attacks) and then North Africa (491 attacks) and SubSaharan Africa (331 attacks).

Henry Wilkinson, Head of Intelligence and Analysis at The Risk Advisory Group, which has collaborated with Aon to produce the Terrorism and Political Violence map since 2007, says: “This year’s Aon Terrorism and Political Violence Map shows a rise in political violence and terrorism risks for the first time since 2013.

The threat of terrorism is critical, but sudden political change at

the top as well as war can arguably be more catastrophic for business. These risks are less manageable and less foreseeable and have the potential for cascading political risk ramifications across a region.”

Wilkinson continues: “Businesses need to be flexible and robust in how they anticipate and manage risks in the fluid world that the map depicts.

Adaptiveness and resilience require effective risk management capabilities, which is why leading global businesses rely on Risk Advisory’s intelligence and analysis services to help them grow whilst protecting their people, their assets and their brands.”

Scott Bolton, director of crisis management at Aon Risk Solutions, adds: “The threats highlighted in our map should encourage global business leaders to adopt a more strategic approach to limit the impact of attacks on their people, operations and assets.

Risk managers need help addressing how to leverage risk mitigation, whether through property damage, business interruption or another form of coverage to create a comprehensive terrorism programme.”

Key findings from the 2016 Aon Terrorism Risk Map Countries with increased risk ratings for 2016: • Angola, Belgium, Bosnia and Herzegovina, Burundi, Guyana, Moldova, Morocco, Nepal, Ghana, South Africa, Sweden, Tunisia, Turkmenistan, Uzbekistan, Zambia, Zimbabwe and Mongolia

16 | Logistics News ME | May 2016

Clusters of severe risk countries: • Africa - Across the Sahel region from Libya to DRC (9 countries) • Middle East - Iraq, Syria and Lebanon (3 countries) • South Asia - Afghanistan and Pakistan (2 countries) • Middle East/Africa - Gulf of Aden region (2 countries)

Insurrection, Revolution, Rebellion, Mutiny, Coup, War (IRRMCWC) Perils added for: • Angola • Eq. Guinea • Guinea • Guiana • Kazakhstan • Liberia

n e w s A na l y s i s

About the 2016 Aon Terrorism Risk Map The map captures assessments of the probability and impact of events occurring along the spectrum of insurable terrorism political violence risk typologies. The country risk scores and identified perils are based upon analysis of proprietary empirical data from the preceding year, open source intelligence analysis on the intentions and capabilities of relevant actors, as well as more systemic prevailing trends affecting security and stability around the world.

About The Risk Advisory Group The Risk Advisory Group is a leading independent global risk consultancy that helps businesses grow whilst protecting their people, their assets and their brands. By providing facts, intelligence and analysis, The Risk Advisory Group helps its clients negotiate complex and uncertain environments to choose the right opportunities, in the right markets, with the right partners. For further information, please visit riskadvisory.net

• • • • • •

Maldives Moldova Saudi Arabia Uzbekistan Zambia Zimbabwe

Most active regions for terrorist attacks in 2015: • Middle East (1114 attacks) - Down from 2014 • South Asia (799 attacks) - Down from 2014 • North Africa (491 attacks) - Up from 2014 • Sub-Saharan Africa (331 attacks) -

• • • •

Down from 2014 Eurasia (298 attacks) - Up from 2014 Latin America (212 attacks) - Up from 2014 Asia Pacific (188 attacks) - Down from 2014 The West (35 attacks) - Down from 2014

Logistics News ME | May 2016 | 17

Technology

The logistics of BYOD BYOD is not novel in organisations anymore. But has the logistics sector, particularly in the Middle East, fully adopted the ideology? The issue with security prevails, say experts. Logistics News searches for the answers

A

courier person delivering a package and asking the customer to sign electronically on his abraded cell phone is something many have encountered. One might wonder if this person is using his own cell phone and this is what BYOD (Bring Your Own Device) or BYOT (Bring Your Own Technology) is all about – the policy of permitting employees to bring personally owned mobile devices to their workplace and access company information.

According to Atiq Juma Nasib, senior vice president, commercial services sector, of Dubai Chamber, the value of the supply chain and logistics sector in the UAE amounted to approximately $25bn at the end of 2015. Nasib had expressed his views at the 8th Global Logistics and Supply Chain summit, held on 14 October 2015, in Dubai.

Moreover, the outlook for the sector in Dubai during 2016 appears to continue to be steady, as per Core -UAE Assoc. of Savills. To sustain such a steady growth and to stay ahead of the game, the logistics sector should and will adopt BYOD, which has a huge potential to transform businesses. By capitalising on BYOD, there is a big advantage to logistics enterprises that can benefit from lower upfront investment costs as additional hardware is no longer required.

With a plethora of devices such as tablets, smartphones and laptops that are used by people in their daily lives, several companies such as IBM, Cisco Systems and Microsoft Corporation, permit employees to bring their own devices to work, as there is an observed high productivity and low cost benefit.

According to a 2016 survey of 800 security professionals worldwide, conducted by Crowd Research Partners (See box), 40% of organisations make 18 | Logistics News ME | May 2016

respondents are cautious when it comes to adopting the benefits of BYOD. The top reasons, according to the survey, for allowing BYOD in an organisation were improved employee mobility (61%), greater employee satisfaction (56%), increased employee productivity (55%) and reduced cost (47%), whereas the top obstacle to BYOD adoption was security; 39% of respondents cited security concerns.

But how well does BYOD serve the logistics sector?

“What we want to do is make sure everybody understands that security is essential, and it needs to be embedded in every solution, especially now, as we move from 15 billon devices to 50+ billion” BYOD available to all employees.

Thirteen percent have no plans to support BYOD, 3% tried it but abandoned it later and 9% don’t currently offer it. From these findings, it appears that at least one quarter of

Bring your own logistics Growing competition, intricate delivery procedures and tighter operating margins have led the supply chain and logistics organisations to pursue ways in which they can take expenditure out of their business without forgoing operational efficiencies. As a result, a growing number of organisations in the region already have, or are contemplating implementing BYOD policies to help advance the technologies being used today and grow their operations without incurring large scale initial hardware costs. In the Middle East and Africa region, the BYOD market is projected to grow to $38.03bn by 2019, according to a report

by MicroMarket Monitor.

However, it’s not all sunshine with BYOD, especially when it comes to the logistics sector. The question of reliability and dependability of devices out in the field lingers. Lost productivity from device failures is a huge business impact for supply chain and logistics organisations. Failure rates of 50% or higher are not uncommon for consumer-grade devices that are used for mobile or industrial business operations. The total cost of ownership for consumer-grade smartphones, tablets, notebooks and

Technology

handheld devices is roughly twice as high compared with ruggedised devices.

For mobile workers, profitability depends on productivity, which further depends on reliability. In an office environment, a worker’s smart phone, tablet or laptop crashing would entail the ready availability of alternatives.

However, for workers in the field, there are no such fall-backs. If their devices crash or malfunction, work grinds to a halt. Their customers are left waiting until a replacement device can be dispatched.

But the obvious elephant in the room is security.

Security check Palo Alto Networks partner, Aruba Networks, released a study in 2015 which highlighted that the adoption of BYOD policies by enterprises in the Middle East is accelerating, but not without ongoing security concerns.

One of the key issues faced by organisations that implement a BYOD policy within their workplace is around implementing security on consumergrade mobile computers. If security policies cannot be applied consistently across all devices, the logistics enterprise is at a risk of a data breach or compliance violations, especially if mobile workers process payment or have customer data on their mobile devices.

Saeed Agha, general manager of Palo Alto Networks Middle East, says: “The biggest challenge for a logistics solution provider, as for other organisations, is to offer and maintain the ability to provide safe access to critical business information for employees, regardless of where they are located and what device they are using to access the network. With a large number of personal devices and tools used over a

“The biggest challenge for a logistics solution provider, as for other organisations, is to offer and maintain the ability to provide safe access to critical business information for employees” very large demographic area, the critical need is to provide a consistent, controlled and secure network connection for everyone while not compromising on security.”

Agha says that ongoing security

concerns reflect a general lack of preparedness in managing employee mobile devices, which is holding back broader adoption. He adds that the UAE is among the top five “at risk” regions when it comes to mobile security.

However, such concerns can be addressed through a combination of people, processes and technology.

He notes that organisations need to be able to give users full advantage of their mobility platform of choice, without introducing additional risks to the business. “A key part of that challenge is enabling flexible mobile security options, depending on the device and use case; mobile security solutions should support different needs easily,” Agha says, adding that while there are multiple considerations to secure mobile traffic, it’s the network where the security teams must start. He states that by retaining control of the network, organisations can make devices secure for all users in all locations.

Rabih Dabboussi, managing director and general manager of Cisco UAE, suggests a varied approach. He says: “What we want to do is make sure everybody understands that security is essential, and it needs to be embedded in every solution, especially now, as we move from 15 billon devices to 50+ billion devices in such a rapid time.”

Dabboussi adds: “Because one is not always nearby to resolve a situation when a system is hacked, a managed approach is needed.

“I call it a cloud-based approach, and it’s really a better solution,” Dabboussi says, “and this needs to be applied on a per-device basis.”

Policy is the best policy While consumer-grade devices used under BYOD policies can incur support Logistics News ME | May 2016 | 19

Technology

costs and increase the total cost of ownership, they can help businesses reduce upfront hardware acquisition costs.

Experts suggests that when considering a consumer-grade device for a supply chain and logistics environment, businesses should factor the following: (1) proper bar code scanning support – for example, using a commercial imager with native bar code support and bridging technologies may be needed to support the consumer device, (2) electronic signature capture, (3) a handheld device that interacts with mobile printers – for example, native drivers, bar code and graphics support play a role in how quickly invoices, receipts, work orders and other documentation are printed, (4) appropriate device screen for different lighting conditions and, most importantly, (5) a longlasting battery life.

The aforementioned is not an exhaustive list; however, supply chain and logistics businesses looking to implement BYOD polices should also consider purchasing bridging technologies that assimilate common consumer devices into industrial environments to help mobile workers look up inventory, scan barcodes and securely process payments, increasing customer engagement and improving mobile point-of-sale. Tablet sleds also give workers access to transaction data via the Internet or mobile apps, providing an opportunity to upsell products and services to customers.

Agha’s recommendation to the logistics industry is to adopt an approach for BYOD that has a robust strategy in place. He adds: “Traditional firewall solutions classify traffic by port and protocol, which prevents an organisation from having visibility of application delivery. Visibility is important for an organisation with a large number of personal devices being used to access company and customer data via the cloud.”

All said and done, experts indicate that BYOD is here to stay; the sooner logistics organisations take cognisance of the fact, the better.

20 | Logistics News ME | May 2016

Considerations for selecting consumer-grade devices for SCL: · Adequate bar code scanning support, for example, using a commercial

imager with native bar code support and bridging technologies may be needed to support the consumer device

· Electronic signature capture · Handheld device that interacts with mobile printers, for example, native

drivers, bar code and graphics support play a role in how quickly invoices, receipts, work orders and other documentation are printed

· Appropriate device screen for different lighting conditions · Long-lasting battery life.

EXCELLENCE IN GLOBAL

INTEGRATED LIQUID LOGISTICS Aviation in Africa currently supports more than 6.9 million jobs and over $800 billion in GDP across African nations. Africa’s jet fuel shortfall is expected to triple from 1.8 million MT in 2013 to around 5.2 million MT by 2025.

It is our vision to be a major contributing partner of the Airlines and be part of the exciting growth period in African Aviation.

WE OFFER A RANGE OF AVIATION REFUELLING SOLUTIONS Trained Staff using IATA and JIG approved Trainers Aviation Storage design, build and operate Into Plane, Into Helo Operations Committed to highest Quality and Safety Standards Comprehensive Aviation Insurance as required by AFRAA and AACO More than 48 million litres of storage built across Africa Off Shore and Remote aircraft refuelling operations An integrated ERP system using Oracle

IN ADDITION TRISTAR CAN OFFER:

• Logistics • Warehousing • Bulk Purchase and Trading options for clean petroleum products • Ship Bunkering and Chartering Services • River transport • A range of Lubricants for vehicles, marine and aviation use • Turnkey solutions for humanitarian, military, oil, gas and mining operations

info@tristar-group.co | www.tristar-group.co

Q&A

The future of hi-tech supply chains

The advent of new technologies and distribution channels are forcing companies to rethink their strategies. Ahead of the Hi-Tech and Electronics Supply Chain Summit in Amsterdam this month, Logistics News ME catches up with some of the event speakers to hear about the latest trends What is the biggest challenge which you’re currently faced with in the hi-tech industry and supply chain?

Baus: Within our sector the challenge is to keep up with the exponential evolution of technology. Our products are always connected to audio and video sources from other brands. In parallel we have developed an eco-system within our product range which allows our products to also communicate with each other through software. Defining an effective product road map which can hold pace with this multitude of ever changing variables is an ongoing challenge. Translated to our supply chain this means shorter lifecycles and more SKU’s to manage. Developing the right global footprint of factories and DC’s aligned with efficient sales forecasting is a constant challenge.

Creating the right omni-channel experience for our customers makes this exercise more complex.

Hartung: The lack of ability of some of our business partners to provide data at a speed and accuracy so that it can be utilised to manage a digital supply chain.

Back: Managing a global supply chain that provides a responsive service to customers whilst coping with product, and import / export, compliance demands.

How are you executing a digital strategy within you supply chain?

Baus: Every supply chain needs to be effectively driven by demand. The multitude of customer touchpoints requires digitization of the supply chain.

Using reseller portals, e-commerce, 22 | Logistics News ME | May 2016

m-commerce, call centers, SAP within our retail stores and CRM platforms creates a massive flow of demand information which needs to be processed and translated into relevant forecasting and product planning.

Currently we’re integrating all of these platforms on a global level with SAP. Hartung: We are building a platform to accumulate and store SC data from throughout the ecosystem we operate in.

We are augmenting this with predictive and prescriptive analytics, findings (both issues and opportunities) and proactive alerts.

Back: By re-examining the data needs of internal processes, and by developing new ERP system functionality, with an emphasis on increased speed, reduced complexity, and increased visibility.

What does it mean to be “omnichannel” and what role does supply chain play in that?

Baus: The omnichannel possibilities within our sales environment are almost endless and the technology to fulfil these needs is available and mature. In this context supply chain can be the enabler or the hurdle to achieve our omni-channel strategy. Currently we’re developing a new fully integrated omnichannel strategy for which we’re building a new supply chain model.

Hartung: Omnichannel means having a flexible supply chain that can efficiently service clients at their desired service levels and needs. This covers from industrial clients to individual suppliers that want individualised products.

MODERN FREIGHT COMPANY

imate ee Est r F VE A For FC MO M – 0 0 Call 8 0 632 668 80

MOVING JUST GOT A WHOLE LOT EASIER! Household Removals, Office Removals and Vehicle Transportation Factory and Warehouse Relocation Pets Relocation Domestic and International Moves Own Estimators and Packers within UAE Own Truck Fleet Providing storage facilities within UAE

MFC INTERNATIONAL MOVERS P.O. Box: 17580, Jebel Ali Free Zone, Dubai, UAE. Mob.: +971 56 686 0735, +971 50 181 9068. Tel: +971 4 881 9600, Fax: +971 4 808 3130 Email: internationalmovers@mfc.ae I www.mfcmove.com

Q&A

How are you putting the customer first in your operations?

Baus: We’re developing a supply chain model which shortens leadtimes and allows the customer to use his/her preferred way of purchasing and payment.

Hartung: All of our systems and operations are designed to provide and exceed the customers’ requirements.

Back: Distribution channel customers by a focus on supply chain reliability and by providing information that supports the service they give to their customers.

End-User customers – by investing in the development of products that increase business efficiency and give a quick return on investment, and by the support we give to end-users through our distribution channel.

Are you using predictive data analytics in your operations?

If yes, what areas in your supply chain have you found the most beneficial from implementing this technology?

Baus: Our planning team uses APO to try to predict our sales forecast. Together with the sales team they finetune this first forecast into sales planning.

Hartung: Yes. Planning, inventory management. For the disruptive technology we foresee having the biggest impact on supply chain, look at IoT, M2M, 3D Printing, Driverless Vehicles, etc.

Baus: In our sector the IoT will influence product development and our supply chain. Our products are connected with each other and also with other devices. The data generated by the inter-connectivity will drive future product developments, sales volumes and by consequence how we’ll need to structure our global supply chain.

Hartung: 3D Printing: this will change the entire supply chain and manufacturing models that exist today.

IoT: as this will provide real time 24 | Logistics News ME | May 2016

operational data (SC and factory floor) and product use by customer. Analytics: as this will identify opportunities and drive actions in ways and speeds that humans are unable to do today.

Back: IoT, M2M, professional mobile devices, and the Cloud. By synchronising these disruptive technologies, organisations will increase their Enterprise Asset Intelligence, through the ability to sense, analyse, and take informed actions, leading to increased supply chain efficiency and effectiveness.

If you could fast forward five years how will your supply chain look? Eg. What new technology will you be using and what benefits will this bring?

Baus: Unfortunately it’s very difficult to predict the future and five years is a lifetime nowadays. It’s clear that

depending on our sales channel and product segment we’ll continue to tailor our supply chain towards the customer needs. In some cases this could result in direct shipments from plant to customer or use 3PL partners for certain specific supply chain activities.

Hartung: For some products there will be a more regionalised supply chain and manufacturing footprint.

Mass customisation will be a reality. Analytics will be more important in executing the supply chain.

Back: IoT and Enterprise Asset Intelligence technologies, allied to advanced inventory planning tools.

Supply chain visibility, that allows proactive monitoring and well-timed corrective actions, allied to high order fill rates and reduced inventory investment, will be significant sources of competitive advantage.

Sector focus

Regulating the Chemical Supply Chain Transporting chemicals is a dangerous business, requiring maximum control of the processes throughout, visibility at every step and a secure, reliable safe mode of transport, however there is a lack of legislation around the sector. Riad Mannan writes

26 | Logistics News ME | May 2016

Sector focus

A

cross the Middle East, the increased use of chemicals in the production of goods has spurred a growing demand for chemical logistics. This includes the storage, pick-up, road transportation and delivery of hazardous, non-hazardous, organic and inorganic chemicals from suppliers, through distributors to end manufacturers and sellers.

In a recent report, Technavio’s analysts forecast the global chemical logistics market to grow at a compound annual growth rate of 5.48% in the five years to 2019. This creates huge opportunities for specialist logistics service providers (LSPs) in this region as a lot of chemical movements will be through and in-between the Middle East countries.

Unlike the transportation of other materials, the movement of chemicals

has its own unique challenges. These would come under what is understood to be Dangerous Goods (DG) – materials capable of posing significant risk to people, health, property or the environment when transported.

It is not just the movement itself; it’s the method of movement, the carriers, the knowledge of the drivers and the security of the load. Additionally the transportation of chemicals requires maximum control of the processes throughout, visibility at every step and a secure, reliable safe mode of transport. Underpinning all of these operational activities are national and international regulations, standards and compliance challenges.

As a result, chemical manufacturers and users have turned to specialist third party logistic service providers to store, handle and transport raw materials, intermediates and finished chemical products, in a safe a reliable

manner. One of the key players in the market is RSA-TALKE, which is a 50:50 joint venture between Dubai based logistics company RSA Logistics and the German chemical logistics specialist ALFRED TALKE Logistic Services. In a recent interview with Logistics News Middle East, its chairperson, Richard Heath spoke about the key challenges of transporting chemicals around the region.

“The standards in the region are, to a large extent, lagging behind other international regions especially when it comes to quality of equipment and safety on the road. A key element of this is the lack of unified legislation for the transportation of dangerous goods, which can range from being limited to certain areas, to being entirely non-existent in others,” he says.

Another specialist chemical logistics Logistics News ME | May 2016 | 27

Sector focus provider, Agility Global Integrated Logistics, highlight two other challenging areas. Riccardo Tonelli, regional director of Chemical Logistics at Agility says: “Challenges that we face often include ensuring we meet international safety standards, and border delays due to outdated customs processes.

These are particularly challenging in emerging markets where policies and procedures are still being established and evolving in line with market growth and development. However these two areas are being critically looked at by authorities, producers and logistics services providers.”

Safety challenges and assessments Logistics companies have to work in an incredibly safe environment when freight forwarding, transporting, storing or handling chemicals. The safety risks are greater than when dealing with any other materials except those within the nuclear industry. Major risks include the risk of explosions, chemical reactions, fire and smoke, poisoning and accidental leaks into the environment. The major causes of these can be faulty tankers, material mishandling, driver error or a combination of them. The effects can be huge, not just on the immediate one, but costly ones too as penalties may apply to the transporting companies. Therefore it is no exaggeration to say that safety is the number one priority for companies involved in chemical logistics.

The Gulf Petrochemicals and Chemicals Association (GPCA) which represents the downstream hydrocarbon industry in the Arabian Gulf, have led a drive to improve the chemical logistics safety record. In 2014, they launched the Gulf SQAS (Sustainability and Quality Assessment System) initiative which is a system to evaluate the environmental, health, safety, security and quality performance of logistic service providers – particularly in relation to chemical logistics. The initiative has gathered a lot of attention amongst the regional industry, regulators, transporters and Certification Bodies alike.

As Heath explains: “The system offers chemical logistic service providers the opportunity to identify 28 | Logistics News ME | May 2016

“The standards in the region are, to a large extent, lagging behind other international regions especially when it comes to quality of equipment and safety on the road. A key element of this is the lack of unified legislation for the transportation of dangerous goods, which can range from being limited to certain areas, to being entirely non-existent in others” the gaps between their operations and best practices and create a continuous improvement plan that they can work on. It is supported by almost all major chemical manufacturers in the region and moving forward it will become a precondition to participate in tenders for these companies. We really encourage all specialist logistics service providers to do a Gulf SQAS assessment and make a mutual effort for the benefit of the industry.”

Transporting chemicals and dangerous goods by road is predicated on having safe handling equipment,

vehicles and well trained drivers.

Indeed, drivers in the chemical logistics industry do much more then operate trucks—they also carry a responsibility for safety, failure of which can lead to catastrophic incidents. In fact, all employees responsible for storing, handling and transporting chemicals at all points along the supply chain must undergo stringent training.

Tonelli comments: “Our operations are dependent on our staff and it is our responsibility that they are full trained and equipped with all the skills, knowledge and equipment. This starts first and foremost with the education of our staff who are responsible for driving our fleet of vehicles. In 2006 we established the Agility Driver Training Academy, since which time we have successfully reduced the accident rates and with them, the number of injuries, lost hours, vehicle and cargo damage and late delivery penalties.”

Modified, safe and clean vehicles Additionally, the vehicles themselves have to be road worthy for transporting chemicals. By the very nature of different chemicals, road tankers used for each journey have to be appropriate for the liquid being transported. For example corrosive liquids (such as sodium hypochlorite and sulphuric acid) make it difficult to use traditional road tankers due of their aggressive nature. Therefore many variants and modifications have to be made to vehicles depending on the chemical or hazardous liquid being transported.

Ensuring they are also cleaned appropriately and regularly tested is essential to the safe delivery too. The cleaning of tankers and dry bulk trucks, as well as of containers and intermediate bulk containers, is instrumental in assuring supply chain efficiency – because if vehicles are always cleaned promptly, they can be used more efficiently in precisely timed transport chains.

As Tonelli points out: “We regularly inspect vehicles for road safety. For example, monthly safety tests are conducted and they are inspected for operability before use and we ensure all vehicles pass NOx tests every six month.”

Sector focus

Safe storage and handling Safety runs throughout the whole logistics process when it comes to chemicals – not just the transport part. Hazardous chemicals must be stored and handled carefully according to specific and strict instructions, which vary for different substances and location of storage. Due to the challenges, it can be difficult in the Middle East region to ensure this happens, as Heath explains: “The largest part of our operations in the GCC are in fact around storage and handling of chemicals and we have seen in the past a distinct lack of suitable warehouses for chemicals, especially for dangerous goods.”

Tonelli nots: “Effective chemical goods storage is underpinned by strict adherence to safety standards, and in particular for dangerous goods, segregation of cargo according to their hazard class and strong response protocols for emergencies.”

Warehouses for chemical storage are not that readily available in the region, but things are getting better. In Dubai South, RSA-TALKE has built and now operates a state-of–the-art chemical warehouse for dangerous and nondangerous goods. “This facility was unique for the region and it raises the bar as far as standards here are concerned,” notes Heath.

Their next step is the opening of a specialised depot for ISO -tank containers, laden or empty, in JAFZA. The first phase of this facility will be opening very shortly and will include a cleaning station for ISO -tanks.

Talking about the future plans, Heath says: “In the next phases, we will add maintenance and repair, drumming of liquid chemicals and more dangerous goods warehouse capacity.”

Ensuring appropriate storage and handling within the warehouses is also critical.

“We have clearly defined standard operating procedures to minimize double handling and associated opportunity for incidents,” Tonelli says, adding: “Depending on the goods stored, it’s important to consider how flexible the warehouse configuration can be. For example, racking is a great maximiser of space but may not be the most convenient solution for products that can be safely block-stacked.”

30 | Logistics News ME | May 2016

When chemical transportation and storage goes wrong

“Challenges that we face often include ensuring we meet international safety standards, and border delays due to outdated customs processes.”

Customs clearance and compliance Fast and flexible customs clearance is essential in the chemical supply. When manufactures are working “just-in-time” operations, the delivery of raw and finished chemical products immediately before their use is key. Logistics companies have to have the right understanding of local policies and procedures to ensure they can transport the chemicals on time. Additionally, unlike other materials being transported around the region, the movement of chemicals requires extra paperwork to ensure compliance to counter security threats.

Tonelli explains: “Relationships are key when working with customs around the world. We have to stay up to date on daily changes to processes and procedures that can save considerable time during a project. Particular areas where this is especially key is in chemicals

In 2015, two huge explosions in a warehouse at Tianjin Port killed more than 100 people, resulting in a string of arrests including those of staff from the logistics firm which owned the warehouse, Tianjin Dongjiang Port Ruihai International Logistics.

It was discovered that hazardous and flammable chemicals, including calcium carbide, sodium cyanide, potassium nitrate, ammonium nitrate and sodium nitrate, had been stored there illegally.

Before the explosions, several firefighters were already at the scene trying to control a blaze. There have been suggestions that water sprayed on some of the chemicals could have caused the chemical reaction that led to the blasts.

The incident led to calls for many reforms, not only in the storage and transportation of hazardous goods, but in the laws surrounding their declaration and even in the planning of the city, which had three residential apartment blocks within a 1km radius of the warehouse.

transportation when shipping dangerous goods – here an intimate knowledge is required to ensure our teams have up to date knowledge to meet customs requirements.”

Heath concludes: “Depending on the requirements of our customers, different customs clearance options can be utilised to ensure the most efficient solution for the individual requirements of each business. The key element is to fully understand the different procedures, with their respective rules and regulations, to ensure highest compliance on our side and on the side of our customers.”

RETAIL LOGISTICS Key topics being addressed include: • Inventory optimization • Click & Collect • Predictive analytics for inventory management • Stores as Distribution centres • Omnichannel supply chain strategies • Home delivery • Procurement and global sourcing

HANDS ON WORKSHOPS

IT’S A NETWORKING EVENT

Get training from industry leaders on the hottest topics: Social Media | Internet of things | big data | ecommerce 101 | Digital payments | Omnichannel

Connect with the most senior representatives across the retail spectrum – including Middle East, Africa, Indian Subcontinent and Central Asia

O TO P X E N EE E LI FR N D N O TE R AT

NEW CONFERENCE SESSIONS FOR 2016 COVERING

TE IS

Dubai International Convention and Exhibition Centre, Dubai, UAE

EG R

31 May – 1 June 2016

30th May 2016 – Delivery and Fulfilment Summit

A dedicated one day summit, the Delivery and Fulfilment Summit is for etailers and retailers from the Middle East to come together to debate the systems and technologies needed to transform ecommerce delivery, returns and supply chains.

Whether you are an retail practitioner, supply chain manager or logistical company – the delivery and Fulfilment Summit is a must attend.

SOURCE NEW PRODUCTS AND SOLUTIONS With over 300 exhibitors attending to meet you – it’s the perfect platform to learn about new technologies for your company

BE PART OF THE LARGEST RETAIL SHOW IN THE MIDDLE EAST REGISTER TODAY www.terrapinn.com/retailme

Cover Story

Disenchanted with job opportunities and inspired by rags to riches stories, the entrepreneurial spirit in the logistics industry is alive and well.

Helen Gaskell takes a look at the market leaders from around the Gulf

I

t seems that almost on a monthly basis a new e-commerce service providers, or appbased delivery services are coming to the market, with start-ups disrupting the trillion Dollar logistics market.

With numerous multi-national distributers, warehouses, brokers, packing companies and freighters competing for customers, logistics could be seen as one of the most difficult sectors to successfully penetrate, however with a demand for ease, available funding and government backing, the logistics start-up ecosystem is growing and changing the industry as it shifts from a focus on large, family-owned companies to more agile SMEs. Last year, the UAE Government declared 2015 the “Year of Innovation” and announced a new National Innovation Strategy with the aim of becoming one of the most innovative nations in the world within a seven year period.

“This innovation strategy is a national priority for our programme of development and progress.

It is a primary tool to achieve Vision 2021 and an engine for the growth of distinctive skills and capabilities across the nation. We have always called for creativity in every field: this strategy is a concrete step to implement that vision. These initiatives around innovation will enhance quality of life in the UAE and take our economy to new horizons,” said Sheikh Mohammed bin Rashid Al Maktoum at the time.

“We want our public and private sectors to explore new horizons to develop our economy.

Innovation is our only way to build a great history of the UAE… the future will be for those who

adopt innovation,” he continued.

There are also many accelerator companies and incubators emerging to nurture and fund the Start-ups including: the Khalifa Fund investing in national Emirati businesses; accelerators such as Turn8, Impact Hub Dubai and In5; the government-backed innovation centre that heavily subsidises the licensing and office rent costs for its residents; the government-owned tech fund Silicon Oasis Founders; the techfocused co-working space Astrolabs; the international accelerator Flat 6 Labs; the emergence of start-up capital funds like Envestors, Emerge Ventures, WOMENA and Venture Souq; crowdfunding websites; and countless start-up-related events like STEP, TIE Dubai and Start-up Weekend.

Omair Shahid, partner at Wizards Island, an e-commerce and supply chain market research and consulting firm, says: “Starting with the trend of World Luxury Expo in Saudi and going ahead from World Expo 2020 in Dubai up to the 2022 FIFA World Cup in Qatar, the GCC has taken centre stage for trade activities. ‘’This has resulted in customers from across borders and an extreme increase of consumption of all imaginable things by people from in and out of the region, thereby profiting the logistics sector.”

While this statement seems promising across the board, Abdulaziz Al Loughani, vice chair and executive director of the Kuwait National Fund for SMEs Development, states the challenges of starting a business in Kuwait in his blog, Start-upq8:

Logistics News ME | May 2016 | 33

Cover story

“This innovation strategy is a national priority for our programme of development and progress. It is a primary tool to achieve Vision 2021 and an engine for the growth of distinctive skills and capabilities across the nation. We have always called for creativity in every field: this strategy is a concrete step to implement that vision. These initiatives around innovation will enhance quality of life in the UAE and take our economy to new horizons,” Sheikh Mohammed bin Rashid Al Maktoum He writes: “It is very challenging to start a business in Kuwait as the licensing requirements and procedures are quite complicated, they take a lot of the entrepreneur’s time to start and maintain rather than focusing on the business 100%.’’

He also points out that Attracting and maintaining talent is hindered by the strong benefits that the government offers; Government business penetration is very challenging and is predominantly taken by large corporations and family offices, with access to private finance limited.

While there are a few in other sectors, Truelines, is the stand-out logistics Start-up in Kuwait.

As previously mentioned, Dubai has far more to offer in terms of incubators and accelerators to help and encourage people start their business. Turn8 is a Dubai based Start-up 34 | Logistics News ME | May 2016

accelerator supported by DP World, one of the largest marine terminal operators in the world.

The Government played a large role in inspiring DP World to launch Turn8, Yousif Al-Mutawa, CIO at DP World says: “There’s a big drive from the leadership to foster the entrepreneurship ecosystem in UAE.” TURN8’s seed accelerator program is designed to encourage innovative entrepreneurship worldwide, but starting with Dubai. It states on its website: “We look for people with ingenious ideas that can be refined and brought to market through a ‘seed accelerator’, a program that selects start-up teams with marketable ideas and supports them with funding, mentoring and training in exchange for a stake in any resulting business.”

Cover Story

Fetchr a shipping app designed to make ‘’shipping as delightful as shopping’’

Truelines Logistics providing a range of logistics services at “competitive special rates for your shipments from any part of the world” Company mission: “Truelines Logistics is one of the most trusted and reliable logistics, and general trading companies in the State of Kuwait, driven by leaders with bold vision and a strong entrepreneurial spirit. ‘’The operational experience and business acumen gained in the State of Kuwait during this period has provided the confidence and strength to establish the company operations beyond the boundaries of Kuwait. The expanding list of satisfied clients reflects our ability to execute challenging projects, against all odds. ‘’The entire work force has many years of hands on practical knowledge of business operations in the GCC Market in general and of the Kuwait Market in particular.’’

Company mission: To empower all deliveries with technology and overcome the ‘no address’ problem that is prevalent in the MENA region. CEO and founder, Idriss Al Rifai says: “Fetchr overcome this through our proprietary technology. With our app, we use the customer’s GPS coordinates as a delivery address. We remove the inconvenience associated with shipping.”

Ambition: To disrupt the logistics industry through the power of technology and becoming completely customercentric.

Reason for starting the company: “While heading the operations at Marka VIP, I faced several issues with customer complaints about delayed packages or sometimes packages not getting delivered at all, leading to high return rates. I built an in-house logistics department to expedite deliveries. While working on this, I realised the potential impact a customer-centric, technology backed delivery solution could have for ecommerce and all deliveries across the region. I therefore decided to leave Marka VIP and founded Fetchr in 2012 to tackle this problem,” says Rifai.

Performance/ Success to date: To date, Fetchr is the only firm in the Middle East to have raised $11M in Series A funding, backed by New Enterprise Associates, a top tier Silicon Valley VC firm and now operates in U.A.E, KSA, Bahrain, Egypt, with more to be named by 2016-end.

Logistics News ME | May 2016 | 35

Cover Story

LoadMe an online freight-exchange platform that enables transporters to find loads for trucks that would otherwise be travelling empty.

Company mission: Leveraging technology and information for matching trucks and loads across the Middle East to help transporters to increase their loaded miles and brokers, forwarders and load owners to ship their freight effectively.

Ambition: To fulfill this mission, LoadMe has established the following goals: to develop the first load board in the Middle East; build a mobile app to support the users interaction on the move; combine the power of internet with GPS tracking and smart phones apps to connect transporters with load owners in real time; grow the network fast and aggressive with loyal companies; get the a big market share to have a powerful position when competition will come; and expand its operations to all the countries from the Middle East. Once this is achieved the aim will be to establish partnerships with governmental institutions to promote the idea over their networks and reduce the backhauling empty of the trucks by 10% in GCC over the next 2 years.

The ultimate ambition is to have 30,000 companies registered and active on the network.

Reason for starting the company: The idea started in 2014, when Sebastian Stefan, a sales manager for a major transporter from UAE, was struggling to increase efficiency and reputation for his team but the communication problems in the market slowed him down. As a problem solver, Stefan looked for solutions in other markets and he was shocked to find out that everywhere else in the world they have the load board for road transportation but here in the Middle East is not available.

In a discussion with his friend and colleague from university, Sebastian Morar who is a skilled software developer, they decided to build the first online marketplace for freight exchange in the Middle East. Soon after that Claudia Pacurar joined to lead with branding and image.

Performance/ success to date: “We have now 4,400 companies registered and doing business on our platform.

An accumulated fleet of 8,000 trucks which makes us by far the largest transporter in the Middle East. Every day there are between 100 and 200 loads available on the platform and we had 40% growth/month for the last 12 months,” says Stefan.

He continues: “The Middle Eastern transportation industry has serious communication gaps between transporters, load owners and agents. Because of this 50% of the trucks are backhauling empty from their destination and in transportation sales, three out of four orders are refused, because the load does not match the truck. The information about daily loads and fleets is distributed over the phone, in a very inefficient way so we have a market that offers potential chaos for every shipment.”

36 | Logistics News ME | May 2016

Transcorp providing integrated logistics services for the cold chain and dry distribution.

Mission: To create a distinctive business model by setting the standards of excellence in markets served.

Ambition: according to Rodrigue Nacouzi, CEO and founder of Transcorp: “Distribution was considered secondary, my ambition is to present this product as a core phase within the cycle. Also, to expand this model to the Gulf Countries in the next three years.”

Reason for starting the company: Nacouzi explains: “Since I landed in this country I had a dream to launch a unique logistics setup and offer a different level of commitment than the market norms. People got fed up of the poor transportation services and of big organisations that favour transactional business over long term relationships, affecting their customer service level and commitment” Achievement: The company started with two employees and 1 truck in April2014; and is now more than 35 employees and 22 trucks covering the seven emirates and dispatching more than 1,000 packages per week.

Nacouzi adds: “Dubai cold chain distribution industry is underserved and lacks compliant transporter hence the need for professional provider rising. Distribution is an Art for us!”

Around the GCC Bahrain is another country with a burgeoning start-up community and according to a recent survey by Ernst & Young, 70% of young Bahrainis were interested in the idea of starting their own business, twice as many as anywhere else in the Gulf.

This is supported by the success of The Bahrain Award for Entrepreneurship (BAE) which was initiated last year under the patronage of HH Prince Salman bin Hamad Al Khalifa, Crown Prince and Chair of the Bahrain Economic Development Board (the EDB), and aims to recognise the country’s business leaders. This year, the BAE has received 255 nominations, an 8% increase to the previous year’s edition.

According to the World Bank’s 2016 Doing Business report, released in October 2015, Bahrain ranks second in the GCC region and 65th globally out of 189 economies for ease of doing business.

Also on hand in Bahrain is Tamkeen, part of Bahrain’s national reform initiatives and Bahrain’s Economic Vision, Tamkeen is tasked with supporting Bahrain’s private sector and positioning it as the key driver of economic development.

Amal Kooheji, COO at Tamkeen said: “One of the biggest issues facing entrepreneurs, particularly start-ups and small businesses, is the availability of funding.”

Cover Story In September 2008 Tamkeen launched the Enterprise Financing Scheme to help alleviate the risk associated with new ventures and SMEs. The scheme provides 50% of the interest of funding provided by a bank to a business, in addition to providing a 50% guarantee to the lending bank.

Similar to Kuwait though, while there are many Start-ups in other sectors, logistics is lacking, with a very small number of stand out start-ups.

Qatar is another country where a budding entrepreneur could perhaps fill a void and make a fortune, however in Qatar the trend seems to be doing away with logistics companies altogether and cutting out the middle man.

According to the Qatar News Agency, Qatar’s state postal service recently announced that it has launched a new service that will allow shoppers to buy items online and get them delivered directly to their homes or to a “smart locker.”

Announcing the new “Connected by Qatar Post” service, the organization also said it is planning doorstep drone delivery for some packages.

Also, Qatar based Start-up, Egrab delivers groceries but says it has “no inventories or logistics on the logistics side.”

Saudi Arabia has over 40 incubators but a start-up advisor in the Kingdom writes that the ecosystem of the Kingdom is one of the main challenges.

“The Saudi ecosystem is made up of smaller ecosystems that don’t have much in common apart from market dynamics and target demographics.

“Some incubators are doing a fantastic job at building a stronger national presence, such as Badir Incubator, which has bricks and mortar operations in five cities and has a consistent, sustainable model to assist start-ups. But the lion’s share of incubators enjoy the comfort of their own cities.

“Jeddah, Riyadh and the Eastern region ecosystems operate very differently from each other, making them isolated from one another in many areas. This increases the difficulty with which entrepreneurs can collaborate or access the national market.”

The start-up culture in the GCC is strong and support is spurring growth. How this will alter the logistics industry over the coming years remains to be seen; with so many demands from consumers and clients, for on-demand services and adaptable and flexible business models, the space exists for new players to come and revolutionise how things have traditionally been done.

In shipping and delivery specifically, the ability to redefine the client experience is driving demand for, and the success of, agile start-ups. The impact of the sharing economy on things like maritime and road delivery, is also alleviating many of the costs faced by business by brokering smaller, shared spaces, on ships and trucks, to ensure goods go from A to Z with ease and without breaking the bank.

However, the million Dollar question that remains unanswered is how the established and larger companies will compete in this changing landscape and if the strength of innovation in the SME sphere will spur innovation in the large enterprise segment. It wouldn’t be impossible to imagine a future where, after introducing a new way to do business, the smaller entities are acquired by the larger ones, who are hungry for their technology, future visions and, ultimately, success.

Extabs offering “a wide range of services where we are committed to make a difference in the logistics industry,” focusing on the grocery delivery market.

Mission: To be a company known for dependability, impeccable service, strong and uncompromising commitment to all customers.

According to its website Extabs envisions to offer logistics

service that offers something different from traditional

logistics market with time-based delivery and reasonable cost.

Performance to date: Founder Rahid Kader says that customers simply download the app from the App Store

or Google Play Store, choose their products and get them delivered at their doorsteps by a “grabber”.

“Our project works widely on a mobile platform. Customers

order on a mobile phone, the grabbers receive orders on

the mobile phone and get them delivered utilising the GPS. In order to start lean, we have no inventories or employees on the logistics side.

“Inventories are from the stores like Quality Hypermarket,

Lulu, Monoprix, etc, and the drivers are independent

limousine/taxi drivers who already have a car, a licence and

a mobile phone. We create more business for the stores and more job opportunities for the drivers and save a lot of time for our customers.”

Logistics News ME | May 2016 | 37

F a c e t o fa c e

Functional Flooring This month, Brian Cartwright, regional MD for Logistics Executive, speaks with Ruth Waugh, international business development director of Twintec construction quality of the floor is a very important factor.

F

or my latest interview I met with Ruth Waugh the international business development director for Twintec, which is a specialist design and build contractor and world market leader in ‘jointless’ steel fibre reinforced concrete industrial floors. Twintec has installed floors in many of the major warehouse facilities in the region and has projects ongoing right across the Middle East. Ruth has been with the company for over 17 years she has been a regular visitor to the region from Europe for a number of years and she finally relocated to the UAE in 2016.

So why am I keen to talk with Ruth about flooring? Well there are many general use warehouse facilities that have been built in the region, yet companies will often go for a new build instead. One of the reasons cited for this is because the majority of these ready made facilities are not fit for purpose when it comes to specialist warehousing and distribution requirements. The load bearing capacity, flatness tolerance and overall

38 | Logistics News ME | May 2016

Why is it that we see such an important focus on the quality of the flooring in Warehouses and DCs in the Middle East these days?

Developments in logistics technology and materials handling equipment has allowed logistics service providers and the end users to improve operational efficiencies. Racking systems are higher, aisles narrower and automated systems more popular providing the user with efficient stock retrieval and in turn faster delivery to the customer. These factors also place much greater demands on the concrete floor slab within a warehouse, including a requirement for exacting levels of flatness, and they are subject to more aggressive surface wear due to increased trafficking and higher loadings imposed on the slab.

There is also a real desire to futureproof a building, with logistics systems continuing to develop rapidly users demand flexibility to change their racking configuration or use of their facility as often as every five to 10 years.

How much of an impact can the floors of a facility have on a logistics operation?

A floor slab that is unfit for the purpose of the facility’s operational requirements has a direct impact on the efficiencies of everyday operations.

This could include inoperable VNA systems and reduced speed of travel for MHE leading to significant business inefficiencies.

Ongoing maintenance of the floor has to be considered with facilities often operating 24 hours a day, seven days a week and sectioning of areas of the warehouse for repair works cause costly business interruption and costs the building owner large sums year on year. As an example a 60,000m2 warehouse constructed to incorporate saw cut joints will contain 21km of unprotected joints that have potential to breakdown and require maintenance compared to a SFRC ‘jointless’ slab that will contain only 3km of protected armoured joints.

What is the biggest cause of problems encountered by warehouse operators in relation to the floor slab?

The biggest cause of problems in a concrete floor slab are always the joints be it the breakdown of concrete around saw-cut joints or inferior construction joints. The UK Concrete Society which produces guidelines used throughout the Middle East for design and construction of concrete floor slabs states: “the ideal floor would be perfectly flat and contain no joints”. Whilst the elimination of joints completely is not currently a viable proposition for new warehouse developments by specifying a ‘jointless’ slab the reduction in joints and the use

F a c e t o fa c e

Pour in progress

of armoured construction joints will have a significant impact on low term maintenance and operational costs.

Does the floor also impact the performance of MHE? To gain optimal performance of mechanical handling equipment it is crucial to minimise the contact pressure of the wheels on the floor slab/ construction joint. Contact pressure is exacerbated by transporting heavy goods and MHE with small diameter hard tyres. The elimination of sawcut joints and the developments in armoured construction joints including the Co-Sinus Slide Joint and the Signature Joint, ensures continuous support for passing wheels regardless of the direction of travel, size or form of the wheel. The permanent contact between wheel and concrete floor across the joint creates a smooth and noiseless load transfer.

What is the general view of ‘jointless’ floors in the Middle East? Do you speak to many companies that don’t see any value in this technology and, for example they just see it as additional unnecessary cost?

Cost has often become the driving factor sometimes at the expense of functionality but purely cost driven tendering and procurement is commonly reflected in performance and durability;

short term financial benefits can often become long term maintenance and operational losses. It has long been acknowledged that the concrete floor slab is one of the most important components of a modern warehouse facility and day to day operations and efficiencies dependent on it. It should be noted that a ‘jointless’ slab is not necessarily more expensive than a traditional slab and each project should be evaluated on an individual basis to enable the specialist flooring contractor to offer a personalised product based on operational requirements rather than a standard specification. End users need to invest in the best for their specific requirements What are your thoughts about opportunities for Twintec in Iran as the country opens up for business?

With the lifting of sanctions and President Hassan Rouhani’s vision for improving relations with the international community, global economic integration and greater social freedom, Iran is the biggest new market to re-enter the global economy in decades. It has strong potential as key player within the global construction market driven by oil and gas revenues and there is a growing interest from international developers, logistics companies and manufacturers, which in turn provides a potential huge opportunity for Twintec in the future.

Brian Cartwright

Brian Cartwright is the Managing Director, Middle East and Africa for Logistics Executive Group, he has partnered exclusively with Logistics News to run a series of interviews with senior executives to uncover the facts and provide real time insight on what’s happening in the SC & Logistics sector across the region.

As a respected thought leader with extensive networks and knowledge of the Supply Chain & Logistics sector, he’s the ideal person to get the inside word on behalf of Logistics News.

Logistics News ME | May 2016 | 39

Country Focus

Saudi’s Storage Solutions Riad Mannan investigates the increased demand for logistics and warehouse facilities in Saudi Arabia and the key macro elements contributing to the growth

I

n Saudi Arabia over the past few years there has been a significant growth in the logistics sector in general and warehouse occupancy in particular. The market maintains solid performance reflected in low vacancy

40 | Logistics News ME | May 2016

levels and steady growth in rentals.

However, the growth is softening relative to previous years due to the slowdown in economic activity and government spending as the result of subdued oil prices.

Nevertheless, Riyadh, Jeddah,

and Dammam are key warehouse and logistics clusters in Saudi Arabia given their large population base, high spending power, and availability of multiple modes of transportation (rail, ship, and truck). Jeddah and Dammam in particular have always been first pioneers

Country Focus

in offering large-sized Distribution Centre (DCs) as they are home to the two largest ports in the country.

There are three key macro elements driving the increased demand for logistics and warehouse facilities in the Kingdom of Saudi Arabia.

The first is that the country plays an important role on global movement of goods. By virtue of their location, the country offers a route for manufacturers and distributors alike, not just within the GGC, but to Asia in the east and Africa in the south.

Secondly, the ongoing diversification of the Kingdom’s trade away from an oil-based economy has been a boon to non-energy industries like infrastructure, construction, real estate and manufacturing.

This diversification was underlined recently by the Saudi Government setting an objective to increase industrial contribution to GDP from 10% to 20% by 2020.

Thirdly, but of no less importance,

“Substandard quality of warehousing developments available in the market for lease is affecting the business operations in terms of efficiency and type of services offered” is that with the largest economy in the Middle East and 20th globally, the Kingdom has a growing middle class population, with increased demands for finished products; vehicles, consumer goods, machines, electronic equipment being among the top imports.

All these elements bode well for the supply chain sector and by inference the logistics and warehouse marketplace. With the continuing expansion of roads, airports and

seaport infrastructure, Saudi Arabia is already a major player in regional logistics. Importers, exporters and end-user companies in the country now have an increased need for worldclass logistics in Saudi Arabia and, as a result, there have been a growing number of investments into the logistics and warehouse market – with millions of square feet being added every year.

Currently more than 60% of goods flowing into the Kingdom come into the country by road from container ports in other countries on the east coast of the Arabian Peninsula. This has resulted in the need for increased warehouse space – whether it’s the storage of raw materials, packing materials, spare parts, components, or finished goods.

Imad Damrah, Saudi Arabia MD for Colliers International, a global leader in commercial real estate services notes: “Import and export activities have been a major occupier Logistics News ME | May 2016 | 41

Country focus

“The number of manufacturing operating factories has been growing rapidly at c. 6% over the last 10 years which in turn has increased the need of storage and warehousing space for finished goods and products” of warehouse space to store and distribute products such as fast moving consumer goods, household items, equipment and machinery.”

Highlighting another factor driving the growth of the warehouse market, he adds: “The number of manufacturing operating factories has been growing rapidly at c. 6% over the last 10 years which in turn has increased the need of storage and warehousing space for finished goods and products.”

Apart from these sub-sectors, the logistics and warehousing for heavy cargo is another key area set for expansion in the Kingdom. Almajdouie Logistics Company (MLC) manages and operates a total area of 2 million square meters of terminal and storage facilities in Saudi Arabia (covered and open yard terminals).

They have become specialist in handling and transporting large or heavy cargo and provides services of freight forwarding, terminal and warehousing. Commenting on the healthy and sustained growth of the heavy logistics market in Saudi Arabia, Dudi Hermanto, its general manager for the Logistics Business Development, says: “We are strengthening our position in the region, especially with the strategic increase in projects. Not only have our scopes amplified across the Gulf, but we also have existing offices in Kuwait, Dubai, Abu Dhabi and Bahrain and expanding operations in Oman and Qatar.”

Challenges and demands As the logistics and warehousing market matures in Saudi Arabia, owners and operators have to differentiate themselves in order to compete with new entrants - for example, Urjuan Property Developers 42 | Logistics News ME | May 2016

Dudi Hermanto - Almajdouei Logistics

Imad Damrah Colliers

and Audi Capital are teaming up to set up the first real estate funded development of a modern logistics park on 300,000sqm of land in South of Riyadh.

For new entrants and existing operators alike challenges remain in having the right local transport infrastructure supporting warehouses and the quality of the warehouses themselves.

As Damrah notes: “Substandard quality of warehousing developments available in the market for lease, relative to other regional cities such as Dubai, is affecting the business operations in terms of efficiency and type of services offered. Also, poor infrastructure and unavailability of affordable industrial land parcels along major logistics corridors, forcing operators and occupiers to expand their operations away from the city.”

Although changing, a lot of Saudi

Arabia’s older warehouses are simply not high enough and many do not have a sufficient amount of loading bays. As a result, warehouses in Saudi Arabia fall short in their quality standards in terms of clear heights, automated racking, receiving and dispatching facilities, integration with other uses such as office space, insulation and value-add supporting services.

Future growth and the e-commerce factor Despite the challenges, there is optimism that the logistics market will grow even further. The burgeoning e-commerce market is reshaping warehouse operations as they have to modify their offerings in terms of automation and distribution capabilities. This trend is expected to further shift demand from traditional warehouses into modern Logistics and Distribution (L&D) facilities.

Damrah says: “The strong potential growth of the e-commerce sector in the future will likely create demand for urban warehouses that will shorten delivery routes and will be able to provide quick delivery services for on-line customers allowing retailer to make same day delivery.”

Additionally, new legislations such as the recent one introduced by the Saudi Food and Drug Authority has created new opportunities for warehouse operators to offer higher specification facilities to FMCG manufacturers and retailers.

The future of logistics and warehousing looks bright for the Kingdom. Apart from of e-commerce, the increase in infrastructure project spending and new logistics corridors will drive the evolution of the warehouse market in KSA. One of them is the development of logistics hubs like the KAEC including plans for the Warehouse Park within the Industrial Valley including 12 inter-connecting units, each with 910 sqm of flexible space for storage, office space or light manufacturing.

As Damrah concludes: “There will be vast growth potential for large-scale distribution and fulfilment centres that are well connected to logistics corridors, new transport infrastructure projects, and manufacturing hubs.”

www.menacoldchain.com

3rd ANNUAL MENA PHARMACEUTICAL COLD CHAIN FORUM ~ Maintaining product integrity through stakeholder intimacy~ 24 - 25 MAY 2016 | RAFFLES DUBAI | UNITED ARAB EMIRATES

INDUSTRY OVERVIEW:

INDUSTRY OVERVIEW:

What topics will the 3rd Annual Forum cover?

Industries and Sectors:

What regulators expect from the other stakeholders in the cold chain

Ministry

of

International Standards and where the region is today?

Pharmacy Chains, Shipping, Transport and Logistics

Collaborative approaches between airlines and airport authorities

Distribution Houses, Airports and Customs, Airlines,

Pharmaceutical

Health,

Food

Manufacturers,

&

Drug

Healthcare

Authorities, Providers,

Companies, Third Party Logistics Companies (3PL’s),

Innovative technologies to minimize temperature excursions

Storage and Warehousing Companies, Supply Chain

Integrated solutions for Good Distribution and Storage Practices

Systems,

Solution Providers, Temperature Controlled Packaging Temperature

Monitoring

Systems,

GPS

Manufacturers, Data Loggers Silver Sponsors

Associate Sponsors

Exhibitors

MCI Middle East, United Arab Emirates, Tel: +971 4 311 6300, Fax: +971 4 311 630, E-mail: conferences@mci-group.com

Viewpoint

The Global Transportation Report

What to watch • Global economic growth and trends in trade flows impacting the sector’s revenues • The ability to benefit from low oil prices is dependent to a large extent on clients (companies or consumers)

Euler Hermes Economic Reserch Department gives a snap shot of the global transport industry and its risk rating

• Increasing environmental constraints calling the need for higher investments and thus weighing on firms’ margins

orld trade is the main driver for transportation of goods across oceans, roads, and more marginally for air transportation. World trade has now slowed to approximately +3% against +8/9% before the financial crisis of 2008-2009. At that period, companies massively invested in increasing capacities in order to cope with increasing demand.

But the new normal has incurred a dramatic fall in freight rates. The Baltic dry index, for example, fell by -50% over the last 12 months. This situation heavily weighs on firms’ margins and their ability to generate cash, and despite lower oil prices, puts risk on finances.

Apart from trade, another important driver is the increasing mobility of people, especially through air travel. This business is expanding at an annual rate of +6% thanks to higher demand for business travel and tourism. Transport companies around the world are taking advantage of this trend and with the slump in oil prices, net profits could double between 2014 and 2016. This should take place mainly in the United States, although European competition remains fierce.

• Development of service-related activities to improve profitability levels

W

Sector Risk Rating

Low

High

Country

Role

United States

#1 producer

Japan

#2 producer

Germany

#3 producer

Sector risk

Canada Q2, 2015 India Q3, 2015

-5%

Japan Q2, 2015

-10% -15% -20%

U.K 02

03

04

05

06

07

08

09

10

44 | Logistics News ME | May 2016

11

12

13

14

15

Q3, 2015

Subsectors Insights Road transportation: Numerous, small players with weak pricing power.

Maritime transportation: Overcapacities and low freight rate undermine activity.

5% 0%

• Substantial overcapacities due to crisis in maritime transportation

• Highly competitive market

20% 15%

• Completed and successful restructuring of US air transportation industry

• On-going restructurating in the European air transportation industry

World Trade Evolution Recent Sector Risk (Rolling 12-month average change in %) Changes 10%

• Steady increase in business and tourism travel leading to a structural rise in demand for air travel

Weaknesses

Key players

Sen siti ve

m diu Me

Strengths

Brazil Q3, 2015

Air transportation: The biggest beneficiary of the low oil price. Good fundamentals (except in Europe and South America) but strong competition from Gulf-based companies.

Viewpoint

Mergers and Acquisitions: The legal considerations Mergers and acquisitions, whether from the perspective of the Seller or the Buyer entail considerable preparation, research, adjustment, and due diligence. In most jurisdictions, including the UAE, in spite of the market’s relatively small size, only a minority of mergers and acquisitions successfully conclude without snags. BSA Ahmad Bin Hezeem and Associates’ managing partner, Jimmy Haoula, and associate Akram Rashid, highlight the legalities

W

hile the legal considerations are varied, there are many relevant practical considerations any corporate officer, director, executive, partner, shareholder, or manager needs to keep in mind before embarking on a transaction which can help to smooth the path of the sale or divestment.

Some apply to both parties, such as: • the explicit conviction to transact.

• the need for both parties, depending on the transitioning business structure and especially if either party has subsidiaries, to update their corporate structure and keep their corporate secretaries and directors duly informed so that their respective roles are streamlined and harmonized, so as to eliminate redundancy.

• the need to guarantee/ strictly define the scope and quality of Buyers’ and Sellers’ shareholders’ variable rights post-acquisition.

• the need to predict the impact on Buyers’ and Sellers’ interested third parties (creditors), along with other outstanding pertinent matters.

We can explore a few of the primary concerns that apply individually to Sellers and Buyers, regardless of any latent overlap.

46 | Logistics News ME | May 2016

1

Target/Seller: Ask for proof of funds: A serious Acquirer will be typically solvent, financially sound, and well capitalized. However, a cautious Seller must ascertain whether the Acquirer also possesses enough liquidity to finance the transaction. Any M&A negotiation involves constant middle-men/ business-intermediaries activity.

They are the ones to sustain communication channels vital to the transaction, such as procurement of qualifying prospects, conclusion of confidentiality agreements, business detail valuation via literature or prospectuses, further communication and information exchange, followed by a preliminary agreement and finalization of contractual elements etc. While the cost for the Acquirer there might prove minimal, the time and effort a Seller invests is not recoverable should the acquisition not go through. A Seller is best advised to evaluate the financial durability and security of the acquiring entity.

2

Do not disclose documents right away: A Seller should ascertain that Acquirers are not of the variety that exit negotiations pursuant to the transaction midway.

Uncertain Acquirers cost eager sellers time and morale. Conversely, any such disclosure should not affect the standing rights or entitlements of the Seller’s employees and clients.

3

Increase the seller entity’s value: Having cultivated awareness of key priorities that potential Acquirers value, reciprocal internal adjustment on the part of the Seller is crucial.

Streamlining of the Seller’s services and adjudicating as to which of the Seller’s own products are likely to dissuade potential Acquirers or derail potential acquisition is material.

4

Quitting while you’re ahead: Sellers should never discount the value of bowing out on a high note. A successful well-established business is more appealing to ‘monied’ Acquirers as opposed to a Seller on the verge of liquidation or in the throes of a downturn. Prudent practice militates in favour of proactive marketing, and the stronger the Seller entity’s business position/proposition appears, the more it can dictate the pace and terms of the market and the negotiations themselves.

1

Acquirer/Buyer: Organisation: This is the overarching concern of any Buyer, and a test for whether a prospective M&A transaction is pursuable. Buyers will characteristically inspect not only whether the Target entity is a good fit, but if it is organised. Issues such as registration, licenses, financial statements, assets/ property, equipment and inventory, employment files and benefits, management and administrative structure (including listing shareholders and assembly minutes), internal regulation, suppliers, clientele and Good Will, IP

Viewpoint

entitlements, books, etc are central indicators of a Target’s financial health and market viability. Depending on its size and structure, if the Target requires six months to compile corporate documentation and deliver on the promise of “clean business records”, and other pertinent information, then the Buyer could discern that the Target is not adequately organised. This can be fatal to the transaction.

Akram Rashid

2

Transparency: Buyers value that which they can confidently discern and assess. Buying entities will typically investigate to see if the Target has engaged in exhaustive process documentation and/or resolution of outstanding issues or pending legal liabilities.

Professional third-party advisory review is advisable in that it allows impartial assessments to govern the details pertaining to various target’s strengths and shortcomings, upon which negotiations are premised. The more informed the Buyer, and the more it can confirm the Target’s good-faith conduct, the less the likelihood it will withdraw the offer. Critically, this step preempts and anticipates all the potential points of contention resulting in attritionlitigation – an eventuality all parties have an interest in avoiding.

3

Prioritization: Buyers should isolate and delineate what they value in a Target acquisition.

Formal internal organization within the corporate structure of the Target entity, like substitutive training for new employees, tends to catch unwary Targets off-guard mid-negotiation, and further dampen Buyer interest. Buyers must rigorously isolate those unique qualities, virtues and features for which they went shopping to begin with, and not shy from expressly communicating them. Some Targets may appear only superficially appealing because of a singular market strength, only to be offset by myriad other unidentified deficiencies. Resisting that initial allure, while moving fast enough in a rapidly fluctuating market so as not to torpedo a lucrative opportunity takes as much operational savvy as it does intuition.

This leads us into the next point…

5

Compliance: Buyers should be cognisant of the condition and status of Target’s compliance records and status. Many an M&A process is frustrated after the Buyer accidentally discovers that the Target’s internal regulatory structure is not compliant with applicable regulatory/ legislative regimes, industry standards and practice both intra and crossjurisdictionally, should the transaction involve multi-national or cross-border functionaries. Buyers should vigilantly but amicably monitor any misrepresentation or misfeasance on a Target’s part in that respect.

6 Jimmy Haoula

4

Synergy: Buyers will seldom neglect the inconsistency of a Target’s business model and end product/ service with their own operational structure. To what extent will the Target’s business integrate with the Buyer’s system? Does the Target compliment or compete with the Buyer’s business? What is the end purpose of the M&A - is the Buyer simply buying out the competition, or is it looking to expand and diversify its own market share and portfolio through the acquisition? As a reliable method to determine the feasibility of the acquisition, Buyers would seek to affirm whether the Target already has in place a systematized training manual or work culture that adequately reflects the Buyer’s values and strategic goals. Buyers would have to examine Target’s integration potential on a case-by-case basis pursuant to a well understood operable and tenable minimal cut-off point the Buyer must be equipped to identify.

Conflict of Interest: This is intrinsic to a Buyer’s risk-assessment and germane primarily to M&As involving professional activities. The merging of Buyer’s and Target’s books may ignite concerns for the Buyer’s clients. It often happens that a Buyer acquires or merges its books with those of a Target whose activities contravene the latter’s laws or business conventions in their home jurisdictions, e.g., an American or European firm acquiring a company with ancillary or incidental business ties to sanctioned or blacklisted entities.

Alternatively, a Buyer may acquire a Target entity whose clientele compete with its own. Post-M&A adjustment that follows on the heels of such negative exposure is beset with hidden costs, and Buyers may often have to relinquish or drop those clients much to their reputational detriment.

7

Validity of Warranties: Buyers need to meticulously examine a Target entity’s warranties validity, representation and category. If they are invalid, defective or even nonexistent - more egregiously in the case of Target’s misrepresentations then protracted litigation is sure to ensue.

The above considerations are not exhaustive. Various other legal issues could arise before or during the process of the M&A. Notwithstanding the above, should any such concerns occur, parties contemplating a merger or acquisition are encouraged to seek legal advice so as to correctly predict and navigate themselves into a successful transaction for better placement in the market.

Logistics News ME | May 2016 | 47

Viewpoint

Supply Chain Director – The Next Game Changer

By Prakash ‘PK’ Menon Prakash PK Menon writes on the game changing role of the supply chain director

T

here is an old saying which goes like this: a chain is only as strong as its weakest link. Nothing can describe the importance of supply chain more aptly in a retail organization. If the supply chain crumbles, it can topple the foundation of the organization. A weak supply chain can cause losses of billion of dollars. It can drive away its customers to the competition. And, a retail organization cannot simply afford it. Every single penny counts. Every single customer matters.

The face of supply chain management has changed drastically in the recent decade. From disparate functions such as procurement, production and logistics, the supply chain has moved to a more complex system that calls for an integrated and holistic approach. The reasons for this shift can be attributed to a set of new market dynamics such as change in customer preferences, acceleration of technologies such as big data and cloud computing, fierce competition among e-commerce players, cross-border business expansion and the growing use of social media and digital marketing tools.

Now, while retailers are making every effort to build their competencies and adopt a sustainable supply chain model, they are struggling to source the right talent who can lead this strategic transformation. A global survey ‘Sustainable Supply Chains: Making Value The Priority’ conducted by PwC and APICS Foundation revealed that the biggest barrier to the success of a company’s sustainable supply chain practices

Prakash ‘PK’ Menon Prakash ‘PK’ Menon is a respected supply chain expert, internationally acclaimed speaker, thought leader and mentor. He is the executive director of Thought Leaders Middle East and has authored three books: Driven, Fail Smart and Supply Chain is Sexy. was a lack of leadership support. This fact clearly indicates that retail organizations need to create a role that can alter the direction of the retail game in their favour.

In my opinion, a supply chain director fits this role perfectly. He can become the game changer for his organization in the new millennium.

Supply chain directors can bring the focus, discipline and accountability in the entire supply chain management of the organization. They think beyond the obvious and their functional expertise. They formulate a strategy that interweaves supply chain with every business function to deliver the maximum business impact in terms of profits, revenues and customer satisfaction.

Most businesses are either already transcending the geographical boundaries, locally and / or globally. This calls for transformational capabilities, integrated planning and collaborative efforts across the organization. Supply chain directors not only strive to achieve operational excellence, but also work with the mindset of

a CEO. Apart from possessing technical skills and know-how, they display a fine sense of business and financial acumen.

They can speak as enthusiastically about the organization’s balance sheet and ROI as they can about their core areas of expertise - logistics, inventory, sourcing and production.

Technology challenge in supply chain is another area that Supply chain directors can handle deftly. According to a Accentures Global Megaoperation Study ‘Big Data in Analytics in Supply Chain: Hype or Here to Stay’, many organizations are realizing the importance of new age digital technologies such as Big Data and Predictive Analysis to build sophistication and efficiency into their supply chain. However, implementing these technologies is a huge concern owing to a number of factors, including lack of in-house human resource who can act like a data scientist.

Supply chain directors can come to rescue here as they are very tech-savvy and can leverage data to obtain real time information, predict trends and enable better decision making.

Supply chain directors have an experience across cross-functional and cross-organization challenges. They can pull all resources efficiently and effectively to implement an integrated value supply chain and provide end-to-end solutions.

They are people who can bring the pieces of a disintegrated puzzle together and integrate them to create a complete and bigger picture.

Logistics News ME | May 2016 | 49

SUPPLIER NEWS Ala’a Al-Bawab, Regional Manager for Public Sector and Oil & Gas, Cisco UAE

Cisco and Intertec highlight digitisation Cisco and Intertec Systems hosted a joint event to highlight the importance of digitisation in the Internet of Things (IoT) era at the Waldorf Astoria, Ras Al Khaimah last month.

Technology experts and senior executives from both companies provided insights on Cisco’s Data Centre, Application and Collaboration solutions and held demonstrations to highlight the key features and benefits delivered by these solutions and the role they play in supporting RAK’s digital transformation initiatives. The event was attended by RAK-based government, semi-government and private sector customers representing multiple industries.

The event followed the recent signing of a Memorandum of Understanding between the emirate of Ras Al Khaimah and Cisco Systems, which establishes a working relationship in the areas of education, commerce, healthcare and electronic government. This undertaking is a reflection of the emirate’s commitment to continuously enhance its services 50 | Logistics News ME | May 2016

to all Ras Al Khaimah residents and to provide better services to both the government and private sectors in the emirate.

Speaking on the event, Ala’a Al-Bawab, regional manager for public sector and oil and gas, Cisco UAE, said: “Cisco has been working closely with the Ras Al Khaimah government around its key priorities and digitisation efforts to uncover opportunities for optimising service capabilities and to identify how faster, more precise, and more reliable information might generate new possibilities for service delivery to the public and private sectors.

As part of our efforts, we want to highlight the importance of digital transformation and demonstrate how the emirate of Ras Al Khaimah could enhance the quality of life for citizens through innovative technologies. This seminar was an opportunity to drive our message to key stakeholders on the immense potential for digitization to create a sustainable and positive impact in every area of society.”

Renault Trucks strengthens ME optimised transport solutions Renault Trucks Middle East has strengthened its range of financing solutions, aftersales support services and transport solutions for all customers throughout the region.

The optimised solutions offered by the French manufacturer will help increase productivity, truck efficiency and decrease the overall cost of truck ownership for fleet managers.

Following the launch of three new state-of-the-art models in November 2014, Renault ‎Trucks Middle East has streamlined its transport solutions offering in order to provide ‎regional customers with the bestin-class maintenance packages.

These solutions provide the latest in product technology and enhanced efficiency, which allows customers to increase uptime, improve service and maintenance, reducing the total cost of ownership.

Commenting on the introduction of these pioneering solutions, Ian Drury, transport solutions development manager at Renault Trucks Middle East, said: “‎We don’t only build robust and durable trucks, but ‘robustness’ also describes our relationship ‎with our customers. We strive to enhance their productivity and support their business ‎through everything we do when it comes to our trucks. This includes our designated aftersales support ‎service, our driver training programmes and our advanced innovative transport solutions.”

Supplier news Daimler Trucks is connecting its trucks with the internet

Daimler Trucks premiers Highway Pilot Connect system 120 years after the invention of the truck, on 21st March 2016, Daimler Trucks connected three vehicles via WiFi on the A52 autobahn near Düsseldorf, Germany, to create an autonomously driven platoon Based on the Daimler Trucks Highway Pilot system for autonomously driving heavy trucks, the three trucks linked up to form an aerodynamically optimised, fully automated platoon. Daimler Trucks calls this advanced system development Highway Pilot Connect.

The completely connected truck initiates a radical change in transport which will make traffic even more effective and efficient – not only for drivers, haulers and vehicle manufacturers, but also for society as a whole. The combination can reduce fuel consumption by up to seven percent and the road space requirement on motorways by almost half - while improving traffic safety at the same time.

Dr Wolfgang Bernhard, member of the Board of Management of Daimler AG with responsibility for Daimler Trucks and Buses, explained: “We are connecting the truck with the Internet – making it the main data node of the logistics network. It connects all those involved in goods: drivers, schedulers, fleet operators, workshops, manufacturers and insurance companies or authorities.

They receive information in real time which was previously unavailable: about the condition of the tractor unit and semitrailer, traffic and weather conditions, the parking availability at motorway service stations, rest areas and much more.”

Connected vehicles in a platoon require a distance of only 15 instead of 50 metres between them. This considerably smaller distance produces a significant reduction in aerodynamic drag – comparable to slipstream riding in cycling competitions. In this way a platoon of three trucks can achieve a fuel saving of around 7%, reducing CO2 emissions in the same measure.

Thanks to the shorter distance between vehicles, a platoon of three linked trucks has a length of only 80 metres. In contrast to this, three trucks which are not electronically docked require a total of 150 metres of road space. At the same time platooning makes road traffic much safer: while a human behind the wheel has a reaction time of 1.4 seconds, Highway Pilot Connect transmits braking signals to the vehicles behind in less than 0.1 seconds. This considerably reduced reaction time can make a major contribution towards reducing rear-end collisions.

Swisslog enhances pallet storage and retrieval offerings with acquisition of PAS Swisslog Warehouse and Distribution Solutions, has announced the acquisition of Power Automation Systems (PAS), the world-wide provider of pallet shuttle automated storage and retrieval systems (ASRS).

Headquartered in Lathrop, California, the PAS office will immediately serve as the Swisslog WDS Americas West Coast location. In addition, the acquisition is designed to further develop and expand Swisslog’s reach in North America, South America, Asia, and Australia toward end of production line ASRS applications for fast moving goods with a maximum degree of customer satisfaction.

Christian Baur, Swisslog CEO of Warehouse and Distribution Solutions (WDS), stated: “The acquisition of PAS allows Swisslog to expand our product portfolio and offerings with focus to the North American and APAC markets. As the leader in logistics automation, our goal was to offer our clients a new dimension of speed and storage density for pallet warehouses that handle a confined number of SKU’s with high volume, not only in the green field, but also for existing buildings.”

“The combination of Swisslog and PAS will deliver benefits to our customers greater than the sum of our parts,” said Markus Schmidt, SVP, Swisslog Warehouse and Distribution Solutions Americas.

He continued: “Furthermore, Swisslog offers its world class service with our customer support team consisting of 24/7 help desk, remote system monitoring, on-site support, spare parts and system retrofit expansions, and modernizations, which will be of great benefit to PAS’s existing customers.”

Swisslog and PAS have partnered in the past to provide top notch automation solutions for clients such as Coca-Cola and Sutter Home (Trinchero Family Estates).

Logistics News ME | May 2016 | 51

Supplier news

Wrightbus showcases Streetlight

Agility Grid presents complete transport solutions IUTP saw Agility Grid exhibit its transport solutions for the first time at the show in April 2016.

Costa Boukouvalas, CEO of Agility Grid said: “We are working with our technology partners to deliver cuttingedge transportation solutions that are reliable, scalable with maximum performance. Our development team has created a connected platform from which the passenger is able to work, socialize, be informed and entertained during their journey.”

The solutions are based on innovations in passenger information systems; passenger tracking and analytics systems; safety and security solutions.

Agility wins CSR Award at SCATA 2016 Agility was recognised for its CSR activities at the Supply Chain and Transport Awards (SCATA) ceremony.

Now in its tenth year, SCATA event brings together the region’s logistics, air cargo and sea freight communities and Agility was named winner in the CSR category based on work it has done to measure and reduce the environmental impact of its customers and operations.

The logistics provider has supported more than 1,370 community projects in 80 countries, reaching more than one million people in need. Agility also has helped its commercial and NGO humanitarian partners respond to more than 40 natural disasters and worked to help them prepare for future disasters. Agility employees continue to lead volunteer projects in their own communities.

52 | Logistics News ME | May 2016

Wrightbus International presented it GCC spec StreetLite at UITP Mena exhibition in Dubai last month.

The company has had a permanent presence in the Middle East region since 2013 when it opened an office at Masdar City, Abu Dhabi, with the office being headed up by Paul Brannigan.

Brannigan said: “Since opening our Middle East office, we’ve been actively promoting the Wrightbus brand, business ambitions and core product range throughout the region. This has included showing the New Routemaster in the Masdar City region as part of the GREAT campaign in October/November 2014.

“More recently the company has been successfully demonstrating a 9.7m 6-cylinder StreetLite in Kuwait – this vehicle is in fact the bus on display on our stand at UITP and it has covered 30,000 miles to date.

After the show this vehicle will continue its demonstration showcase throughout the region.”

StreetLite is available in ‘Wheel Forward’ layout and in ‘Door Forward’ layout, in a range of lengths from nine to 12 metres and is available with a choice of either Cummins or Daimler engines.

Speaking at the exhibition, Wrights Group chairperson and CEO, Mark Nodder, said: “Innovation is at the heart of everything we do at the Wrights Group, our GCC specification StreetLite on show today has been designed and engineered with a passion and determination to set new standards in its class.

“We are leaders in the field of minimising fuel consumption, through weight reduction by design, the use of advanced materials and efficient driveline technology and this is evident right across our product range.

We are also at the forefront of ultra-low carbon vehicle development and we are able to update visitors on our continuing work in this important field.”

Advertorial

Raise standards.

Demand more Does your business demand responsiveness? Does your company have exacting standards?

The Peugeot Partner is balanced and robust, and really enhances the image of professionals and their businesses.

Its fluid, dynamic lines, wrap-around front bumper and two-part air intake, are just some of the Partner’s innovative features. The B9 long body offers payloads and volumes for your various commercial needs.

Small businesses often travel big distances - so you need to be comfortable on the road. The Peugeot Partner has been designed with exactly this in mind. The Partner has numerous amounts of storage space to maximise your comfort on every journey.

With the Multi-Flex seat and its extra

third middle seat, the Partner can transport an additional passenger, giving you added mobility options.

The side Multiflex seat folds down completely, freeing up flat floor space and extending the load area. This gives the Partner capacity for loads up to 3m in length (3.25m in the long version) and up to 10cm in height. The side seat cushion can also fold right back for transporting high loads in the cab. The middle seat backrest folds down to reveal a writing tablet, while its raised cushion provides access to a securable storage space.

The capacities of the Partner, in the standard version, position it straightaway as a leader in its segment, with a payload of a whopping 850 kg and a useful volume

of 3.7m3. For the long (L2) version, the payload is 750 kg and the useful volume is 4.1m3.

Asymmetric hinged rear doors are standard across the range, and open to 180° making it simple to access the generous cargo area - even with a forklift. The standard version comes with a left hand side sliding door. With a useful width of 640 mm and a useful height of 1100 mm, the doors permit wide opening into the cargo space.

With a whole range of safety equipment, the strength to stand up to any test, and offering comfort and great driving pleasure, the Partner will meet all your business needs.

The Partner B9 starting from just AED50,000 is the right choice for your business.

Logistics News ME | May 2016 | 53

Diary

The month ahead

Logistics News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the industry

Offshore Arabia

17 – 18 May 2016 Dubai World Trade Centre

The Offshore Arabia Conference and Exhibition is a specialised event for the offshore, marine, oil spill and environment sectors within the region. Now in its eighth year, the exhibition, held under the patronage of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, is the largest of its kind in the Middle East and provides a platform for the oil and gas, ports and logistics, offshore technologies, environment and coastal protection, and marine and maritime verticals.

Trans4Qatar

May 24 – 26 Doha Exhibition and Conference Centre

Trans4 exhibition is a major marketplace for transport services, attracting leading professionals from Qatar, the Middle East and the world. Issues concerning the development of the Qatari transport system are discussed, and new information systems are developed for interaction between different modes of transport, aimed at successfully addressing logistics issues in the global market for transportation and logistics services. Being focused primarily on Rail, Cargo and Airline transportation services, the Trans4 exhibition demonstrates the full range of industry solutions.

3rd Mena Cold Chain Conference Raffles, Dubai 24 – 25 May, 2016

The market for temperature sensitive services is worth USD 8.36 billion and is projected to rise to $10.28bn by 2018. Almost 100% of

54 | Logistics News ME | May 2016

vaccines and 68% of biotech products need to be stored between 2 to 8 degrees. With the healthcare industry becoming increasing important to the global economy, the pharmaceutical and biotech industries face their set of challenges. Join the leading pharmaceutical companies and drug distributors at the only event for cold chain and temperature-sensitive pharmaceuticals in the MENA region.

The Retail Show

May 31 – 1 June Dubai World Trade Centre

Leveraging the unique geographical advantage that Dubai offers The Retail Show Middle East brings the World of retail to Dubai for inspiration, education and to shop for the very best of breed solutions available.

The Middle East is a great region to do business if you supply the retail industry. With billions of dollars being invested into groundbreaking retail concepts, malls and infrastructure to satisfy the ever demanding appetite of today’s and tomorrow’s domestic and international consumer.

The E-Commerce Show

May 31 – 1 June Dubai World Trade Centre

The E-commerce Show has proven that there is both an appetite and need for a large scale conference, series of workshops, seminars and exhibition covering all aspects of the E-commerce eco-system. As part of its mandate, The E-Commerce Show Middle East 2016 will help regional businesses build a more robust and efficient E-commerce offering, attract and convert web traffic and deliver an improved customer experience.