REGIONAL NEWS

UAE’S INDUSTRIAL PROGRESS TO BRING ECONOMIC VALUE AS WELL AS SOCIAL AND ENVIRONMENTAL BENEFITS: DUCAB CHAIRMAN

The UAE’s latest policies supporting local industry are already creating significant value within the manufacturing ecosystem, according to Eng. Jamal Salem Al Dhaheri, Chairman of Ducab.

The company is one of the UAE-based companies championing Made in the Emirates industrial products on the global stage—now serving 45 markets worldwide.

Al Dhaheri’s comments follow the recent confirmation from Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, that the UAE will focus on growing its industrial sector and achieve more self-sufficiency in the next 10 years. Sheikh Mansour’s vision was presented during the World Government Summit and complements the Operation 300bn industrial strategy announced in 2021. “Today, the UAE’s industrial sector makes a vital contribution to the country’s economic growth and diversification. But as seen in the initiatives put forward by senior government leadership this week, we are a country that never stands still,” says Al Dhaheri.

“Recent industrial strategies continue to be supported through progressive policies on everything from local entrepreneurship to product certifications, materials sourcing, and local skills training.”

Cooperation between government entities and national industrial champions will remain a decisive factor in the accelerated development of the UAE’s industrial landscape, adds Al Dhaheri.

“Each day we must look at ways to emphasize product innovation, the application of advanced technology, and upholding the highest safety and quality standards. These must remain the hallmarks of Made in the Emirates industrial products and be upheld consistently across the industrial landscape.”

This approach will not just lead to economic benefits, but value creation in other areas too. “In addition to being a more economically diverse nation, UAE industrial leaders are putting forward innovative ideas that generate positive social and environmental impact in their fields. These investments include a transformation in the way that we use, recycle, and repurpose materials to reduce our climate impact and build a more sustainable tomorrow,” concludes Al Dhaheri.

“When you consider the scale of these industrial operations, the impact is quite considerable.”

UAE INDUSTRIAL MARKETS EXPERIENCE SURGE IN DEMAND: KNIGHT FRANK

Industrial rents in Dubai and Abu Dhabi continue to recover as demand for warehousing surges across the UAE, according to the Spring 2022 Dubai & Abu Dhabi Industrial Markets Review report by global real estate consultancy, Knight

Frank’s.

Average warehousing lease rates continue to recover rapidly across Dubai, with grade A rents in Al Quoz experiencing the sharpest increase both on a quarterly and annual basis.

Of the nine industrial submarkets Knight Frank tracks in

Dubai, all but two have experienced rental increases so far in 2022; only Grade B rents in JAFZA (Dhs16 psf) and National

Industries Park (Dhs25 psf) have held steady.

Faisal Durrani, Partner – Head of Middle East Research,

Knight Frank, explained: “The brisk reopening of Dubai’s economy has spurred business confidence. And it is this heightened confidence among businesses across the country that is underpinning the resurgence in warehousing demand.

“In addition, to the government’s response to COVID-19, the pandemic has also driven a seemingly permanent shift in consumer shopping habits, not just in the UAE, but globally, which is fuelling demand for warehousing and distribution facilities. Indeed during 2021, excluding confidential requirements, almost a quarter of all demand in Dubai was from 3PL and logistics operators, which totalled almost 1.6m sq ft of space.” Knight Frank also points to the change in ownership laws announced as part of a raft of economic stimulus measures since the pandemic began, which include a range of new visas, designed to attract, and retain talent, as being a significant contributor to increased business confidence, activity, and demand.

While the ability for international businesses to fully own and operate businesses in over 1,000 sectors outside the city’s well-established free zones without an Emirati partner has not directly translated into an exodus from free zones, it has begun to attract international manufacturers not previously present, says Knight Frank.

On the investment front, Knight Frank highlights that demand from investors for assets is high, although challenges around lease structures are holding the market back.

Andrew Love, Head of Middle East Capital Markets and Occupier Services & Commercial Agency, Knight Frank, said: “The majority of industrial properties are leased on short terms (1-3 years), which doesn’t match the requirements of institutional investors. We are now seeing this trend change, and many local and international occupiers are happy to sign longer leases with no breaks. This is being achieved using incentives such as extended rent-free periods.

“If this trend continues, we can expect a compression of yields in the industrial and logistics sector, which could slip to c.8%, from about 8.75% currently”.

The picture in Abu Dhabi is more stable, with warehouse rents in the six main markets tracked by Knight Frank remaining unchanged so far this year.

Rates in Abu Dhabi Airport Free Zone (Dhs550 psm) are still the most expensive in the city and Q1 2022 marks the seventh consecutive quarter rents here have been stable.

ETIHAD CARGO APPOINTS ROAD FEEDER SERVICE PROVIDERS IN THE US

Etihad Cargo has appointed Accelerated, Inc. and Jet Airways of the US, Inc. as its road feeder service (RFS) providers for customers in US territories.

Etihad Cargo will utilise the combined expertise of the third-party trucking logistics providers to offer its partners seamless road connectivity, further enhancing the UAE national carrier’s operations in the United States and beyond.

Etihad Cargo’s partnership with Accelerated and Jet Airways will expand the carrier’s capabilities in the USA and will enable Etihad Cargo’s customers to benefit from various logistics solutions, including dedicated capacity and 24-hour personalised customer service, ensuring Etihad Cargo can continue to meet its service delivery promises in the US territories.

Additionally, Etihad Cargo will employ state-of-the-art technology developed to give customers complete transparency in relation to shipments, including GPS tracking and real-time shipment information.

Through these strategic partnerships, Etihad Cargo will utilise an expanded road transportation fleet, including standard trailers, roller beds, day cabs, step decks, flatbeds, straight trucks with lift-gate capabilities, cargo vans, refrigerated vehicles and other specialised equipment to offer its customers the broadest range of products and transportation options.

Etihad Cargo will deliver added value for its customers through the consistency in the service offered and competitive lead times for transit of both import and export freight. “Accelerated is proud to be appointed as Regional Ground Handling Trucker for Etihad Cargo. Our teams have worked behind the scenes together for many years and are now finally calibrating to begin this partnership,” said Brook Miles Pearse, President of Accelerated.

“The regional coverage offered by Accelerated will be an asset to the continued expansion of Etihad Cargo in the US. We look forward to working together as one team with Etihad Cargo and collaborating to develop new and exciting solutions for the benefit of our customers in 2022 and beyond.”

Tammy Zwicki, COO of Jet Airways, said, “Jet Airways is pleased to have been chosen as Etihad Cargo’s trucking logistics partner in the US. We look forward to working with Etihad Cargo’s US team and general sales agents to help strengthen and build the UAE-based carrier’s business in this market. I am confident that by working together as one team, we will be able to build the best path for our shared business aspirations. We wish to extend our sincere thanks to Etihad Cargo for trusting us with their business.”

Etihad Cargo’s Head of Cargo Operations and Delivery, Thomas Schürmann, said, “Ensuring Etihad Cargo remains the air cargo partner of choice for its customers all over the world through the delivery of world-class services remains a priority.

Therefore, partnering with leading RFS providers in the US was another step in Etihad Cargo’s evolving value proposition to expand operations in this key territory. These partnerships strengthen Etihad Cargo’s RFS network in the US by connecting offline points with the carrier’s main gateways, including international airports in Chicago, New York and Washington, and commitment to providing the fastest and most efficient way for Etihad Cargo’s customers to deliver their cargo to its destination.

ARAMEX TO USE WHAT3WORDS TO ENHANCE LAST MILE DELIVERY

Aramex has partnered with geolocation technology provider what3words to further improve last mile delivery process through advanced and more accurate addressing system.

As part of the company’s plans to further improve the efficiency of its last mile delivery, Aramex has integrated what3words into its retail application programming interface (API) platform.

The integration enables regional e-commerce businesses to give their customers the option to have their packages accurately delivered to any what3words address across the region.

It’s simple for retailers to add a what3words address field to checkout pages, allowing it to be passed on to Aramex couriers. The integration supports regional SMEs who are looking to optimize customer experiences and ensure accurate and efficient deliveries.

UK-based, what3words has divided the globe into a grid of 3m x 3m squares and has given each square a unique combination of three words, known as a “what3words address”.

For example you can find the main entrance to what3words’ Head Office at ///filled.count.soap in London. This means every front door, mall entrance, delivery point, and even unmarked roads will have its own unique address, helping to minimize address errors and enabling Aramex couriers to pick up and drop off packages with enhanced accuracy and efficiency, optimizing the delivery process and providing a smoother customer experience. Alaa Saoudi, Chief Operating Officer – Express at Aramex, said: “Aramex has been working closely with what3words since 2016 to optimize the crucial last mile of the delivery journey. In our efforts to help improve last mile delivery, we believe that by using what3words we will further enhance customer experience and enable a more frictionless delivery journey.

“Our longstanding partnership with what3words is a perfect example of our commitment to apply innovative technological solutions to boost efficiencies and enhance customer satisfaction, as well as support the further development and growth of eCommerce in the region.”

Chris Sheldrick, Co-founder and CEO of what3words, said: “Using a what3words address makes it easy for people to say exactly where they want their packages, whether that is a specific building entrance, front door or side door, providing a seamless delivery experience for end customers and streamlining operations for couriers and retailers alike.” what3words is revolutionising the way the world talks about location. It allows users, including Aramex couriers and customers, to find, share and navigate to precise locations, anywhere in the world and the technology is available in 50 languages, including Arabic. Aramex also continues to leverage on its digitally enabled solutions including Aramex Fleet and Aramex Spot.

SAFEEN FEEDERS INKS DEAL WITH SAIF POWERTEC FOR FUJAIRAH – BANGLADESH CARGO SERVICES

AD Ports Group announced that its feeder service, SAFEEN Feeders, signed a long-term trade facilitation and shipping agreement with Saif Powertec Limited, a listed firm in Bangladesh that is active in ports, logistics, civil engineering, and power sectors.

Under the terms of the agreement, the two companies will work closely together to facilitate trade and cargo services from Fujairah to Bangladesh over a period of 15 years.

As part of the collaboration, SAFEEN Feeders is expected to provide eight Supramax bulk carriers with 55,000 Deadweight Tonnage (DWT) capacity to Saif Powertec.

In addition to facilitating the movement of general cargo and dry bulk cargo between Fujairah Port in the UAE to port facilities in Chattogram and Mongla in Bangladesh, the new bulk shipping offering will also oversee cargo operations to the Indian subcontinent, South-East Asia, and other global destinations.

Captain Maktoum Al Houqani, Chief Executive Officer – Maritime Cluster, AD Ports Group, said: “Our newest collaboration with Saif Powertec not only introduces a new offering for customers that is a fast and low-cost service for their dry bulk shipping needs, but will also have a tremendous impact on maritime trade across our combined spheres of influence.

“Leveraging SAFEEN Feeders’ expertise as a leading maritime service provider, as well as the advanced capabilities of its modernised fleet, Saif is well-positioned to accelerate the trade of dry construction materials between the UAE and Bangladesh, along with other dry cargo goods to key markets across the region and beyond.”

Captain Ammar Mubarak Al Shaiba, CEO SAFEEN Feeders and Acting CEO of Ports Operating Company at AD Ports Group, said: “The announcement marks not only the official start of a new collaboration between AD Ports Group and one of Bangladesh’s leading logistics service providers, but also heralds a new era of maritime trade facilitation between our two proud nations and their respective ports.

“In addition to boosting trade between the UAE and Bangladesh, the collaboration with Saif Powertec brings a new opportunity to deliver an enhanced cargo service to customers across the Indian subcontinent, SouthEast Asia, as well as other high-profile global destinations.”

Tarafder MD Ruhul Amin, Managing Director of Saif Powertec, said: “We are pleased to announce the start of our close partnership with AD Ports Group’s SAFEEN Feeders, which has greatly enhanced our capabilities as Bangladesh’s sole terminal operator to facilitate the movement of dry cargo at the international level.

“Boasting a capacity of 55,000 DWT, SAFEEN Feeders’ bulk carriers, which will be offered on a bareboat or time charter basis, are expected to realise significant returns and deliver real benefits for our customers.”

Both companies will jointly own and operate bulk shipping services that will promote maritime trade between the MENA region and Asian Subcontinent. Other areas of potential collaboration involving Saif Powertec include the leasing of berths and potentially jetties to develop and improve the cargo operations, along with the adoption of warehouse storage solutions offered by AD Ports Group.

The scope of the agreement also covers future areas of collaboration to jointly develop and invest in the maritime infrastructure and projects of Bangladesh and the UAE.

Launched in 2020, SAFEEN Feeders was created to serve as AD Ports Group’s container feeder service provider with the goal of enhancing national and regional trade through the provision of vital connectivity across the Arabian Gulf and the Indian Subcontinent’s container distribution network.

DNATA EXPANDS LONDON HEATHROW OPERATIONS WITH NEW CARGO FACILITY

dnata inaugurated a new, state-of-the-art cargo centre at London Heathrow airport (LHR). Part of the company’s ‘dnata City East’ complex, the bespoke facility increases dnata’s capacity at LHR, ensuring continued smooth handling of a broad range of goods amid rapidly increasing demand for reliable and safe air cargo services in the UK.

The ground services provider’s expansion makes dnata City East comfortably the largest off-site cargo handling operation at the UK’s largest commercial aviation hub.

The new, 10,500 m² facility (Phase II) was designed to operate in conjunction with dnata City East’s existing 22,500 m² facility (Phase I) which opened in September 2019. dnata will handle all air freight of Virgin Atlantic Cargo and Delta Cargo at dnata City East. Exports will remain at dnata’s Phase I facility while the new Phase II facility will cater for all imports, offering the airlines significantly increased handling capacity.

Located immediately south of LHR, both dnata City East facilities were specifically designed to accommodate the operational requirements of dnata and the two airlines.

They incorporate the latest carbon reduction initiatives in design and operation, including the use of solar PV panels, air-source heat pumps and electric vehicle charging. dnata City East has already achieved a BREEAM ‘Excellent’ environmental rating for its design stage, with the same status also expected to be achieved for the construction process.

Including dnata City East, dnata now offers cargo services from eight facilities at LHR with a team of over 750 highly trained employees, all of which bringing high-end cargo handling infrastructure and services for over 30 international airlines at one of the world’s leading cargo destinations. In 2021 dnata handled more than 500,000 tonnes of cargo in London.

Alex Doisneau, Managing Director of dnata UK (Airport Operations), said: “We are excited to announce the completion of dnata City East, a truly world-class facility. Our newest cargo complex offers bespoke solutions, industry-leading technology and enhanced cargo capacity supporting our customers in achieving sustainable growth at the UK’s busiest airport.

“We thank Virgin Atlantic Cargo and Delta Cargo for their support, loyalty, and trust in our services. We continue to go the extra mile to consistently provide the highest level of service and safety across our operations, every day.”

In recent years dnata has significantly invested in advanced infrastructure, equipment, and latest technologies, cementing its position as a leading air cargo services provider in the UK.

In addition to its expansion at LHR with its fifth greenfield build, the company’s recent investment includes the opening of dnata City North, a new cargo complex at Manchester Airport (MAN). The on-airport facility includes 11,500 m² warehouse space and is capable of processing more than 150,000 tons of cargo a year.

Having added seven facilities, including six new builds, to its infrastructure over the past eight years, dnata now operates 13 cargo centres at six airports in the UK. The company can handle more than 800,000 tons of cargo annually across the country.