Warehouses
Interview
Wheels of trade
Worker safety precedes all
Agility Iraq bolster’s local training
Fleet vans ply Dubai’s roads
Connecting trade professionals with industry intelligence
October 2017
Marasi’s floating homes wade their way into Dubai’s real estate world
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Start 8 | News 18 | Op-ed A focus on the booming 3PL market in Saudi Arabia
Features
22 | Cover Story: Floating Homes Marasi Business Bay is set to redefine Dubai’s marina landscape 26 | Warehouses Worker safety is integral to an efficient work environment
30 | Investments India-UAE business summit will act as a defining conduit between the two countries
22
32 | Commercial Vehicles Fleet vans find favour with suppliers and clients alike, thanks to their feasible nature 40 | Transport Marine transport has become integral to Dubai’s commute scene 48 | Viewpoint Planning in the supply chain project environment can greatly benefit the average retailer
32 26 40
50 | Report DHL Supply Chain investigates the growing trends in the supply chain markets globally
52 | Supplier News 54 | Diary Logistics News ME | October 2017 | 5
www.cbnme.com
CEO Wissam Younane wissam@bncpublishing.net
Editor’s Note
W
e are almost nearing the end of 2017 and are in the midst of one of the busiest quarters of the year. This month’s issue features a very interesting and unique feature on the water homes in the Marasi project, conceptualised by the real estate giant Dubai Properties (DP). The developer recently celebrated the voyage of the UAE’s first-ever water homes as it made its way along the city’s newest attraction - the Dubai Water Canal - to berth at Marasi Business Bay. Finland-based company, Admares, delivered the first batch of water homes, which will eventually be surrounded by a number of floating restaurants and a yacht club, all of which are in the process of being manufactured by the Finnish firm. Construction on the water homes began in October 2016 at its purposebuild facilities located in Finland, before they were transported to Dubai and finally towed to Marasi Business Bay. In a previous company statement, DP had said that the water homes are a considerable turnkey project for the developer as it looked to introduce a real estate offering that combined centuries of ship building heritage with cutting-edge design for waterfront living in the emirate. We sat down with the core people who were responsible for the transportation
and the docking of the homes in the marina and got a clear picture of the mammoth feat achieved (although we are yet to get a glimpse of the insides of the water homes). Dubai has always been a place where strange and innovative ideas come to life. With another addition to the emirate’s real estate landscape, this time in the form of floating homes, Dubai is definitely in the forefront for creating history and setting an example for the rest of the countries in the world.
Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706
Group Commercial Director Fred Dubery fred@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818
Editor Paromita Dey paromita@bncpublishing.net Reporter Mehak Srivastava mehak@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net
Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Dhananjay Sekhar Poojoori
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All rights reserved © 2015. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com
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Re g i on a l N e w s
Regional News An update from around the region
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Transportation
Flying taxis, a thing of the future no more
F
lying taxis are no longer to exist in just films or novella; the Roads and Transport Authority (RTA) is on a mission to make this vision a reality, recently announcing plans for the trial of the Autonomous Air taxi (AAT) by the end of 2017. RTA signed an agreement with the German company Volocopter, a specialist in the manufacturing of autonomous air vehicles, to build the flying taxis capable of carrying two persons. Mattar Al Tayer, director-general and chairman of the board of executive directors of RTA, said that the test run of the first autonomous air taxi capable of carrying two persons is in implementation, under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into the smartest city worldwide. He added: “The air taxi is characterised by its autopilot or autonomous flying, thus enabling the movement of people from one place to another without human intervention or a need for a flight license holder.” The move also echoes the Dubai Smart Autonomous Mobility Strategy that seeks to transform a quarter of the
10 | Logistics News ME | October 2017
total mobility journeys in Dubai into autonomous transport by 2030. But the appearance of the flying taxis in our daily lives are yet to take some time. RTA expects the trial run to continue for about five years, during which all operational aspects would be assessed, and security and safety issues verified. Al Tayer explained the procedures involved: “The RTA is working with the Dubai Civil Aviation Authority to develop the legislative and operational guidelines, and to define specifications and standards applicable to operators in the emirate, such that these legislations will be ready before the date set for the commercial and official operation of the autonomous air vehicles. It is noteworthy that the operational and legislative structures will be the first of their kind worldwide. It will coordinate and cooperate with its strategic partners in the emirate, in setting the routes of these aerial vehicles, take-off and landing points of these taxis, as well as the logistics needed.” RTA had previously carried out the first test run of an autonomous aerial vehicle, Ehang 184, capable of carrying a human, early this year. The vehicle was displayed at the World Government Summit in Dubai in February this year.
Gulf Navigation secures AED19mn profits in H1 2017 Dubai-based Gulf Navigation Holding has reported a net profit of AED19mn during the first half of 2017, compared to AED14mn achieved during the same period in 2016, a reported increase of 33%. In a statement issued by the company, it was revealed that the company’s current assets in 2017 now exceed current liabilities (excluding borrowing) by AED115.44mn. The numbers were AED90mn at the end of 2016. This improvement is considered a significant achievement that will enhance the financial position of the company. Khamis Juma Buamim, board member, managing director, and group CEO of the Gulf Navigation Holding Group, said: “Since we started a new phase to improve our performance and expand our business scope, our strategy focused on three main pillars: expansion, growth and permanence.” He added: “We have also succeeded in achieving many goals, starting from addressing the outstanding legal, financial, and administrative issues, to launching our new brand that reflects the strategy of the company to enhance our position in the market. This will contribute in increasing our profits by 300% in 2021, as well as increasing our fleet size to include additional 20 ships by the second half of 2020.” As a step to secure funds to cover Gulf Navigation expansion strategy, the company plans to issue Islamic Sukuk, with a total value of $250mn. www.cbnme.com
Pharmaceuticals
Neopharma eyes pharmaceutical markets in MENA, Asia Pharmaceutical company Neopharma announced plans to expand its healthcare facilities in the Middle East and North Africa (MENA) region and parts of Asia, in a bid to bring value-added drugs to a rapidly growing population. Dr B R Shetty, chairman and managing director, Neopharma, said: “Being one of the largest pharmaceutical markets in the region, MENA’s lure can be attributed to its increasing population, drastically changing healthcare infrastructure, and the government’s willingness to radically improve the healthcare systems in the country.” According to reports, MENA is forecasted to witness an increase in pharmaceutical expenditure to $33.4bn by the end of 2017, up by nearly a billion dollars from the previous year. Dr Shetty added: “Our aim for the region is to help bridge the gap between the patented and the generic by providing products of high quality which aren’t a burden on the insurance companies.” Saudi Arabia’s pharmaceutical market accounts for over 60% of the GCC, and is forecasted to grow at a rate of 9% up until 2026, according to separate reports. Dr Shetty continued: “The first phase of expansion would involve proliferation in the other Middle Eastern countries, where our company is aggressively pushing for licences and trademarks. Our focus on value-added drugs and not just
generics is one of our key differentiators, and we aim to add further value to the local health care industry. “Furthermore, we have already invested over AED100mn in setting up a state-ofthe-art research and development facility.” Additionally, about AED265mn has been spent in the acquisition of patents and licenses, excluding an additional AED515mn for clinical studies. A dedicated Japanese facility will be manufacturing primarily nutraceuticals, one of which has been found effective for
Type II diabetic and pre-diabetic patients, called NatuALA. NatuALA reduces the blood glucose levels through an insulin-independent method and keeps fasting glucose levels under critical levels. The UAE has been reported to have over one million people suffering from diabetes, out of which 450,000 are undiagnosed. The supplement is under clinical studies being conducted across US, Japan, UK, and Bahrain; it could very well be a boon for diabetes patients across the region.
Bitesize news
Careem has teamed up with China-based DiDi Chuxing. The latter’s investment strategy is to strengthen its market position and further enhance its transportation offerings across the region.
Latvian airline airBaltic, in cooperation with Etihad Airways, will launch four weekly flights between the Latvian capital Riga and Abu Dhabi, beginning on October 29, 2017.
Dubai Metro officially crossed the one billion rider mark. Between September 9, 2009, and end of August 2017, the metro has ferried 1.028 billion riders—about 689 million riders on the Red Line, and 339 million riders on the Green Line.
Total announced their agreement to sell its remaining 15% stake in Gina Krog oilfield at Norway, to Kuwait Foreign Petroleum Exploration Company (Kufpec) in a deal worth nearly $317mn. Logistics News ME | October 2017 | 11
Re g i o n a l N ew s
Shipping
Fujairah Terminals welcomes its first container vessel The newly established Fujairah Terminals, under the management of Abu Dhabi Ports, welcomed its first container feeder vessel, the Dubai Alliance. This is the first ship to arrive at the terminal, which is wholly owned by Abu Dhabi Ports, the master developer, operator, and manager of commercial and community ports within the emirate of Abu Dhabi, Fujairah Port, and Khalifa Industrial Zone Abu Dhabi (KIZAD). Fujairah Terminals signed a concession agreement with Abu Dhabi Ports in June 2017, which granted the latter exclusive rights to develop port infrastructure and undertake operations for containers, general cargo, roll-on/roll-off ships (RoRo), and cruise ships. In August, Fujairah Terminals was established and took over the management of the terminals from Fujairah Port Authority. Further terms of the agreement include enhancing the ports ability to cater to larger vessels through the deepening of berths, and building almost 300,000sqm yard of storage space, as well as a 1km quay. Abu Dhabi Ports will also invest in new and advanced technological equipment to increase operational efficiencies and services. On the occasion, Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, commented: “We are marking the beginning of a new era for both Abu Dhabi Ports and the Port of Fujairah under the new management of Fujairah Terminals. The investment in port infrastructure will go a long way to strengthening
development and operation of ports and terminals across the UAE and its contribution to the growth of a diversified, knowledge-based economy, highlighting Fujairah’s strategic role in the UAE’s maritime and trade growth, bringing about a marked increase in vessel calls such as the Dubai Alliance and many more to come.” According to the news report by Wam, Dubai Alliance is a vessel under Star Feeders, a specialist short-sea common carrier container feeder service that operates a feeder network between UAE ports. The ship called at Fujairah Terminals
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to deliver a container for local industries and to receive containers for onward shipments. Upa Jayalth, general manager for operations at Star Feeder, and Nirmil Perara, general manager for sales and marketing at Star Feeders, met with Naser AlBusaeedi, general manager at Fujairah Terminals, to express their support and commitment to working with the newly established Fujairah Terminals. AlBusaeedi said: “Through the planned infrastructure investment and sharing of best practices by Abu Dhabi Ports, we are confident we are
embarking on a new journey that will bring about a positive outlook for the port and the emirate of Fujairah as a whole. Using our experience and best practices gained from managing and running major ports like Zayed and Khalifa Ports, we intend to bring these valuable learnings to Fujairah Terminals, and use existing commercial and business synergies to increase our value offering to our customers and simultaneously boost efficient trade.” Fujairah Terminals is expected to play a complementary role in maritime shipping activities at Khalifa Port and Zayed Port. www.cbnme.com
Re g i on a l N e w s
Ford Transit popular amongst UAE’s small business owners Ford’s Transit Custom is a cargo van that has become a favourite of many small businesses all over the UAE that require vehicle fleets which both serve the purpose as well as look savvy. The Box, a Dubai-based small and medium-sized enterprises (SME) company, is involved in planning, packing, and storing of goods; providing individual lockable storage units and comprehensive moving solutions; it was one such business that decided to adopt Transit as its preferred choice of transport. Wadih Haddad, founder and CEO of The Box, said: “Every move is unique, so it helps to have a practical and reliable vehicle that’s as versatile as the Ford Transit; those key attributes (of the Transit), added to an exceptional load space and reassuring maximum five-star safety rating, make Transit an ideal fit for The Box.” During its development, the Transit Custom was subjected to Ford’s tough vehicle testing process, encompassing durability tests, extreme weather conditions, and temperatures ranging from 40° C to -40° C. Mahendra Menon, commercial vehicle manager, Ford Middle East and Africa, commented: “Ford Transit Custom continues to gain popularity among SMEs in the region, thanks in part to its adaptability regardless of the varying needs of a growing business. Both upcoming and established SMEs are looking for a fleet of vehicles that are extremely versatile, reliable, and dependable, and that offer the best flexibility when it comes to fit-out. That’s precisely what you get with the Ford Transit.” The Transit Custom is the first ever commercial vehicle to be awarded a maximum five-star Euro New Car Assessment Programme (NCAP) safety rating.
14 | Logistics News ME | October 2017
Regulations
RTA announces plans for truck monitoring system
Roads and Transport Authority (RTA) has commenced procedures to have heavy vehicles in service for 20 years or more to be linked with a smart monitoring centre. Mattar Al Tayer, director-general of RTA, announced the start of the initial stage for the mandatory implementation of the Vehicles Safety System. The system involves fitting monitoring devices in trucks to enable RTA personnel at the monitoring centre to monitor the conduct of heavy vehicle drivers. Accordingly, they will communicate with the patrols of Dubai Police and RTA to enforce the law against offenders. Al Tayer said: “From the start of this year, RTA has experimented with the use of the system on 577 trucks. In coordination with the Dubai Police, Dubai Municipality, Civil Defence, and Emirates Gas, three inspection campaigns were launched on heavy vehicles — trucks, light vehicles, and pickups. In the final quarter of this year, RTA will compile information about faults of trucks and conducts of drivers, to build a solid database that helps the assessment of vehicle and driver risks,
and enables taking appropriate actions against violators.” Al Tayer stressed RTA’s keenness to introduce best solutions to traffic education and safety, besides applying smart technologies in various fields, including the smart monitoring of heavy vehicles. He said such measures improve traffic safety and security, and curb accidents resulting from improper conducts of drivers. He also added: “Last year, RTA tested 99,642 heavy vehicles and 34,024 trailers. Various types of vehicles are being tested in Dubai, according to the applicable rules, periodically upon the expiry of registration, to verify their compatibility with the approved technical standards issued by the vehicles licensing department. Trucks and trailers are being tested and licensed in five testing centres, equipped to carry out the tests required on this type of vehicles.” For drivers, RTA started with a training module for manoeuvres of trucks connected to trailers. All heavy truck drivers have been subjected to a medical screening system at the time of issuing or renewing their driving licences. www.cbnme.com
The big Picture
The delegation from Dubai Maritime City Authority (DMCA) showcased the pioneering steps Dubai has taken in the local and international maritime sector, at the Annual International Shipowning & Shipmanagement Summit, held on the sidelines of London International Shipping Week 2017. Collaboration
EMC, Liebherr to supply 200 Mercedes-Benz mixer units across The UAE Emirates Motor Company (EMC) Daimler commercial vehicles and Liebherr will together supply 200 units of Mercedes-Benz Actros trucks with mixers, to help firms across the UAE deliver on their infrastructural commitments to the growing landscape. The partnership will comprise a supply of 200 Actros 8×4 with 12cbm Liebherr mixers, out of which 100 units will be supplied to one of the largest ready-mix companies in the UAE. The heavy duty vehicles will come with a ‘connected trucks’ concept where a unique fleet-board system will be used for vehicle tracking and to measure a driver’s performance. Bilal Al Ribi, general manager of EMC Daimler, said: “We are excited about our partnership with Liebherr as we continue to support Abu Dhabi and the UAE reach their visions.” He added: “Our aim is to provide the best vehicles and technology to meet the needs of our client’s business. Nothing fits this description better than the Mercedes-Benz brand
promise and EMC’s commitment to service excellence.” Markus Mueller, Liebherr’s marketing and sales director, said: “This strategic partnership with EMC aims to increase our existing mixers to address the growing demand in the infrastructural industry, where comfort, economy, driving dynamics, and variety are concerned. It is
also the result of our business expansion strategy in this market.” EMC is the authorised MercedesBenz distributor in Abu Dhabi and the flagship company of Al Fahim Group, while Liebherr has contributed significantly to the rapid expansion of the UAE and has worked on various notable and high-profile projects. Logistics News ME | October 2017 | 15
Re g i on a l N e w s
DHL Supply Chain’s strategy sees Middle East growth DHL Supply Chain, the contract logistics specialist within Deutsche Post DHL Group, has increased its Middle East revenues by 18% year-to-date. This increase is mainly attributed to current market demands for large scale first time outsourcing of supply chains, and the related operational efficiencies, a growing trend in the Middle East. Commenting on the announcement, David Christmas, CEO of DHL Supply Chain Middle East, Russia, and Turkey, said: “The increased demand for the outsourcing of supply chains in the Middle East couldn’t have come at a better time. With the country economies under pressure, large organisations across the public and private sectors are looking to drive increased efficiencies, and focus on their core business activities.” Christmas added: “First-time outsourcing is a strategic decision. If a CEO is looking to restructure their business, reduce costs and re-focus on their core activities, in order to accelerate and enable growth, this is an opportunity they should seriously consider. With an end to end supply chain, a fully digitalised and re-engineered service, it is more than just warehousing and transportation. We have been overwhelmed with feedback from CEO’s in the region, who have found that our outsourcing service has benefitted their business in many ways.” DHL Supply Chains also announced a joint venture with Bahwan CyberTek in Oman. The latter recently reached their “one year” milestone of no lost time injuries. Jeremy Haysom, the managing director of Bahwan Exel (the joint venture between CyberTek and DHL) commented on the feat: “This is a great team achievement. We operate in a complex fourth party logistics environment, managing multi nationals, small-medium enterprises, local community contractors, and over 400 owner operators. This achievement shows the real benefit of the fourth party and lead logistics provider concepts, and how collectively this can shape the journey to goal zero.” DHL Supply Chain Middle East has had a number of large scale agreements since the beginning of the fiscal year. This included an agreement with Etihad Airways Engineering to manage stores, local transport movements, and associated supply chain planning at the latter’s hub at Abu Dhabi International Airport. Globally, the DHL Group saw increased revenue and operating profit in the second quarter of 2017. Group revenue increased by €623mn to €14.8bn, with the international parcel and e-commerce business, and the global express business in particular driving this strong growth. With earnings before interest and taxes (EBIT) of €841mn, the group recorded the strongest second quarter in its history, and the seventh consecutive quarter in which the company has posted an all-time quarterly high.
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Airline
Etihad’s global investments in trouble; pulls funding from Air Berlin
Abu Dhabi based Etihad Airways is facing a series of blows, after it recently pulled funding out of the German airline Air Berlin, following the latter’s continuing losses in the past year. Air Berlin then declared insolvency and filed for administration. Earlier this year, Etihad had stepped out of the shareholder’s team for Italian airline Alitalia. It later announced a staggering $1.87bn loss for 2016, pinning $808mn of loss on financial exposure to partner airlines Air Berlin and Alitalia. Over the past few years, Etihad has embarked on an equity-acquisition strategy, that has seen the carrier take substantial ownership stakes in a series of international airlines. This included 49% of Alitalia; 29.2% of Air Berlin; 49% of Air Serbia; 24% of Jet Airways; 21.8% of Virgin Australia; 40% of Air Seychelles; 49.8% of Niki; and 33% of Swiss-based Etihad Regional. Etihad sold its stake in Etihad Regional in July. In September 2016, these partner airlines, along with Etihad Airways and its accompanying subsidiaries, were reconfigured to form Etihad Aviation Group. Etihad invested nearly
€1.7bn in Alitalia and made several injections of funds into Air Berlin, including €250mn in April. That last sum proved insufficient to turn around the ailing German airline however. “Air Berlin’s business has deteriorated at an unprecedented pace, preventing it from overcoming its significant challenges and from implementing alternative strategic solutions,” said Etihad, in a recent statement. It described Air Berlin’s move to file for administration as “extremely disappointing for all parties”. Tour operator Thomas Cook, which books some of its customers on flights with Air Berlin and its unit Niki, has expressed interested in restructuring the airline. Deutsche Lufthansa AG said it may buy parts of the German airline, its main national rival. Etihad Airways is in the midst of finding a new chief executive officer after James Hogan, former president and CEO who led Etihad’s investment and expansion strategy in Europe, stepped down in July. The company is currently led by Ray Gammell who is serving as interim group CEO. www.cbnme.com
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Re g i on a l N e w s
Plans for 554 more hybrid taxis to traverse Dubai Roads and Transport Authority (RTA) has endorsed a contract to bring 554 more eco-friendly, hybrid taxis to the roads of Dubai, following the success of the existing hybrid taxis. These vehicles, which are fitted with a combination of fuel engine and electric motors, currently constitute about 11% of the fleet of the Dubai Taxi Corporation (DTC). According to Wam, the move is part of a plan to curb pollution from exhausts and make vehicles friendly to the environment of Dubai. DTC plans to increase the proportion of hybrid vehicles by the end of 2017, to 17% of its taxi fleet, which currently comprises 503 vehicles. Mattar Al Tayer, director-general and chairman of the board of executive directors of the RTA, said the move illustrated the RTA’s commitment to curbing carbon emissions from the taxi by 2% – as required by the Dubai Supreme Council of Energy and the Green Economy initiative. He said: “The underlying objective of using hybrid vehicles operation is to support Dubai’s initiative themed Green vehicles for a cleaner environment, besides assessing the feasibility of using hybrid vehicles in the Dubai Taxi fleet.” He added that RTA is the first government entity in the region to experiment with the operation of hybrid taxicabs fitted with electric-fuel engines in Dubai taxi from 2008 to 2011. He also said: “Results of the experiment revealed that such vehicles had covered 550,000km without faults or requiring maintenance of major parts. Fuel efficiency reached 30% and carbon emission dropped by 30% as well.” The RTA has endorsed a plan for converting 50% of Dubai taxicabs into hybrid vehicles by 2021. DTC is set to have the largest share of hybrid taxis in Dubai, totalling 2,280 vehicles, followed by CARS (900 vehicles), National Taxi (812 vehicles), Arabia Taxi (463 vehicles), METRO Taxi (377 vehicles), and City Taxi (18 vehicles).
18 | Logistics News ME | October 2017
Saudi Arabia
Bahri, Hyundai Heavy Industries sign purchase deal of SAR450mn
The National Shipping Company of Saudi Arabia (Bahri) announced that its subsidiary, Bahri Dry Bulk Company, has signed a SAR450mn contract to buy four bulk carriers from South Korean ship builder, Hyundai Heavy Industries. Bahri Dry Bulk Company, which is 60% owned by Tadawul-listed Bahri, will take delivery of the ships by the first half of 2020. The agreement was signed in Dubai, in the presence of Ali Al Harbi, acting CEO of Bahri; Nezar Banabeela, president, Bahri Dry Bulk; and Sam H Ka, president and chief operating officer (COO), Hyundai Heavy Industries (HHI) Group, in addition to other executives from both the companies, as reported by Zawya. Al Harbi said: “Our long-standing relationship with Hyundai Heavy Industries Group bears testimony to the success of the bilateral ties between Saudi Arabia and South Korea, and Bahri and HHI’s shared values for longterm growth.” The company, which is expanding the fleet to meet the needs of the local and global markets, said financial impact of the contract to acquire the carriers will appear after the delivery of the vessels. Banabeela added to the subject: “For Bahri Dry Bulk, the additional vessels will help to address the needs
of customers in Saudi Arabia and the region as well as international companies importing grains into the kingdom; this, in turn, will enable food security for the Kingdom, and through this initiative, we are proud to play an active role towards achieving an important objective of Saudi Arabia’s Vision 2030. Ka commented on the deal: “Ours is a long and special relationship that has evolved over many years, and over the course of which we have successfully delivered many other ships to Bahri including VLCCs.” According to Bahri, the new vessels, with a capacity of 80,000 metric tonnes per carrier, are designed to the latest international technical specifications and are fitted with environmentallyfriendly specifications, and enjoy high efficiency in fuel consumption. Bahri previously reported a steep 68% decline in second-quarter profit to SAR153.9mn from SAR487.7mn last year, and pointed to lower spot market rates particularly on oil transport during the period. The company also blamed the increase in bunker costs during the quarter, which resulted into higher bunker prices when compared with the similar period a year ago. Revenues were also lower at SAR1.3bn in the second quarter, versus the yearago SAR1.8bn level. www.cbnme.com
Oman Drydock, Singapore shipyard sign partnership deal Oman Drydock Company (ODC), which owns and operates the sultanate’s only ship repair yard at Duqm, signed a partnership agreement with Global Offshore & Marine, a Singapore-based shipyard. Global Offshore & Marine, part of GlobalOne Group of Companies, is one of three international engineering partners identified by ODC as key to its long-term goal of adding new market segments to its portfolio of ship repair and maintenance services, according to a report by Oman Daily Observer. Global Offshore & Marine, established in 2006, operates from a 44,000sqm prime waterfront with a 200m quayside
from where it undertakes a wide range of turnkey projects, including structural steel fabrication, piping and electrical work, marine accommodation systems, living quarter modules, electrical houses, and process modules. Dr Ahmed al Abri, deputy CEO- operations, Oman Drydock Company, said: “The deal is very significant indeed, as it places us in a strong technical position to acquire a share of the offshore repairs market.” He further explained that the pact with Global Offshore & Marine will enable ODC to exploit the Singapore yard’s strategic location, expansive facilities, and years of maritime experience to help diversify the company’s operations.
Training
Emirates flight training academy receives two training aircrafts Emirates Flight Training Academy, a flight training facility being developed by Emirates to respond to the global aviation industry’s need for pilots, has taken delivery of its first two Cirrus SR22 G6 training aircraft in Dubai. These are the first of the 22 single-piston engine Cirrus aircraft, that have been ordered by the academy to train ab initio pilots. The two Cirrus SR22 G6 aircraft, A6-CTA and A6-CTB, landed in Dubai following a transatlantic journey spanning over 13,000km. Given the size of the aircraft and other restrictions including the size of the fuel tanks and range, the journey from Cirrus’ manufacturing facilities in the USA to Dubai had to be split into multiple segments. Upon completion, the two aircraft were flown from Duluth, Minnesota to Knoxville, Tennessee – the location of Cirrus’ aircraft delivery centre. Once at the delivery centre, the aircraft were inspected and teams from Cirrus and Emirates Flight Training Academy went through a series of pre-flight appearance, functionality checks, and test flights. The two Cirrus planes then embarked on an 11-stop transatlantic journey transiting through 10 countries flying an average of over 5 hours a day. Flying out from Knoxville, A6-CTA and A6-CTB stopped at Portsmouth (US), followed by Sept Iles and Iqaluit in Canada. From Iqaluit, the two aircrafts set out to cross the Atlantic Ocean in two stretches, stopping first at Nuuk in Greenland, then at Reykjavik in Iceland, and completing the transatlantic sector
at Wick in Scotland. These trips were the longest segments in the aircraft’s journey from US to Dubai. Once in Europe, the two aircraft made their way from Scotland to Sywell in Northamptonshire, England, and from thereon to Venice, Crete, Aqaba, Bahrain, and finally to Dubai. All the flights were done in daylight, and the two aircraft flew in loose formation throughout the entire journey allowing for easier air traffic clearances. The Cirrus SR22 G6 aircraft will form the backbone of the training fleet of the Emirates Flight Training Academy. The aircraft has a modern composite airframe; two large 12” flight displays; a flight management system keypad controller; and an integrated engine indication and crew alerting system. The aircraft has a range of up to 1,207 nautical miles (1,943
km) at speeds of 183 knots (340km/h) true air speed (TAS). In addition to the 22 Cirrus SR22 G6 aircraft, Emirates Flight Training Academy has also placed an order for five twin-jet Embraer Phenom 100EV aircraft, becoming the first flight training organisation in the world to use the Phenom 100EV platform for training cadets. The Emirates Flight Training Academy, located near Dubai World Central (DWC) airport in Dubai South, will be spread over an area of 200 football fields. It will include ground school classrooms, ground based simulators, a young and modern training aircraft fleet, and a 1,800sqm dedicated runway, an independent air traffic control tower and a maintenance centre, in addition to accommodation and recreational facilities for cadets. Logistics News ME | October 2017 | 19
O p -E d
Kingdom of Warehouses Vishal Pandey, director at Glasgow Consulting Group, comments on the trends in the rapidly expanding warehousing and value-added services sector in Saudi Arabia
Saudi Arabia is one of the leading countries in terms of logistics and warehousing in the GCC region. The growth of various sectors including manufacturing, retail, and trade activity is driving the logistics industry’s growth. The Kingdom’s logistics market can be categorised into four segments – transportation, freight forwarding, warehousing, and valueadded services (VAS). In 2015, the transportation segment dominated the logistics market in Saudi Arabia, accounting for 50% of the $19bn market. The Kingdom’s logistics market is expected to expand at a compound annual growth rate (CAGR) of approximately 5.7% during 2015–2020; new infrastructure developments and the Kingdom’s proximity to regional markets are the major growth drivers. The country ranked fifth in the 2017
20 | Logistics News ME | October 2017
Emerging Markets Logistics Index. Saudi Arabia is situated at the crossroads of important international trade routes, between three continents – Asia, Europe, and Africa. This strategic location makes the kingdom an ideal logistics hub. Under Saudi Arabia’s Vision 2030 and National Transformation Plan, the government is investing heavily in infrastructure development. Also, the government is upgrading the Kingdom’s ports to equip them to more efficiently handle the increasing numbers of ultra-large container vessels traversing the global shipping routes. The government’s plan to establish new free trade zones, the country’s proximity to regional markets, high trade volumes, and multiple projects in pipeline are some of the major factors boosting the Kingdom’s logistics industry.
Saudi Arabia is situated at the crossroads of important international trade routes, between three continents – Asia, Europe, and Africa. This strategic location makes the Kingdom an ideal logistics hub.” Vishal Pandey, Glasgow Consulting Group www.cbnme.com
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O p -E d
3PL Market The 3PL market in Saudi Arabia is expected to expand at a CAGR of 5.7% over 2016-2020. Factors such as enabling cost reduction, availability of specialised service providers, presence of industrial zones, and increasing industrialisation are driving this market. Warehousing and VAS are the major components of the 3PL market. 3PL contributes 7% to 10% to Saudi Arabia’s overall logistics market. The market is characterised by the presence of a large number of unorganised local, and international players. Most of the international companies seeking industrial premises in Saudi Arabia look for world-class warehousing space; however, owing to a limited supply of top-notch warehousing facilities in the country, they prefer leasing land and constructing facilities according to their specific requirements. This could hamper the country’s 3PL services industry. Warehousing In 2015, the Saudi Arabian warehousing market accounted for 15% of the logistics market, at $2.85bn. In Saudi Arabia, warehousing is of four types: dry, frozen, ambient, and hazardous. Of these, dry warehouse is the most common type. Dry warehouses store dry goods, such as consumer goods, textiles, and certain food grains, which do not require specific temperatures. Frozen warehouses are used for storing goods that require low temperatures, such as seafood, poultry, and select pharmaceutical products. Ambient warehousing is ideal for storing goods that require room temperature, such as electronic equipment, plastics, packaging, construction materials, and auto parts. Hazardous warehouses store materials such as compressed gas, oxidisers, combustible liquids, and radioactive products. With regard to expenses involved in storage, the cost is higher at frozen warehouses owing to higher compliance, investment, and energy needs, while it is lower at dry warehouses owing to lower regulatory requirements. Hazmat warehouses, on the other hand, are used for storing hazardous materials. Hazardous materials could be raw materials or finished goods that produce harmful physical effects such as sudden release of pressure, fire, radiation, acute health effects such as burns, and chronic effects such as organ damage, among others. As the storage of hazardous materials involves high risk, these are highly regulated. In Saudi Arabia, special permission from the Ministry of Interior and Civil Defense is required to build a hazardous warehouse. Competition is low in hazmat warehousing, with only a few players operating in this space. The low competition intensity could also be attributed to the requirement of specific expertise
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and strict regulations. However, factors such as high bargaining power of suppliers, low threat of substitution, coupled with healthy margins (25% to 35%) are expected to attract more players into this space and increase competition. DHL, Agility, LSC, GAC, and WPL are some of the players providing hazmat warehousing services in Saudi Arabia. The success of the logistics industry and hazmat warehousing segment hinges on various factors within and outside the country. Internally, in the post 2011 period, Saudi Arabia witnessed a decline in its real GDP growth rate and has been unable to surpass its 2011 growth levels. In May 2016, the International Monetary Fund revised its growth estimate for Saudi Arabia down to 1.2%. The drastic fall in global oil prices also remains a major concern. In addition, Saudi Arabia faces challenges such as rising unemployment (unemployment rate rose to 12.7% in Q1 2017) and constant geopo-
litical tension. However, various reforms introduced by the government under the Kingdom’s Vision 2030 and increased participation of the private sector are expected to stimulate the economy, boosting trade in the country. Given the high level of globalisation, improvement in the global economy, and economies of the major trade partners will play a vital role in augmenting trade prospects for Saudi Arabia and its logistics industry and hazmat warehousing segment. The gradual economic recovery in Europe, declining unemployment rate in the US, and high growth registered by India and China are some of the factors that can favor a positive trade environment for Saudi Arabia. With several factors, such as an array of economic reforms and expected increase in consumer demand at play, we can expect steady growth for Saudi Arabia’s logistics industry and hazmat warehousing segment during 2017–2020.
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C ov e r Sto ry
It’s not every day that one transports a home via water, over thousands of miles. LNME finds out the challenges of shipping the Marasi Business Bay floating homes all the way from Finland 24 | Logistics News ME | October 2017
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he concept of floating homes is not a new one. In 2016, London-based Baca Architects designed floating homes on Chichester Canal, in response to a competition launched the same year to find a solution to London’s housing crisis. In Copenhagen, architecture firm Urban Rigger unveiled floating student housing. In fact, Dubai is already familiar with the idea of floating homes, through the partially underwater Floating Seahorse villas by the Kleindienst Group, at The Heart of Europe cluster of The World islands. When Dubai Properties announced the AED1bn Marasi Business Bay project, a Dubai Water Canal trademark that would include a 12km-long waterfront promenade, berths for 800 yachts, food and beverage (F&B) outlets, and 200 floating homes, the excitement was certainly palpable. And the anticipation was only piqued, when the homes were spotted floating through Dubai Water Canal, in the first week of September. Social networking sites went berserk; it was truly an astonishing sight. “From signing the contract to designing it, and finally completing it, took 12 months in all,” says Mikko Lahtonen, executive vicepresident of the Middle East and Africa region at Admares. “When you build a villa of this kind, you have to look at it in more of a factory production line. We tried to replace quantity with quality.” Admares won the contract to design and manufacture 10 floating homes, two floating restaurants, and a floating yacht club, in the fourth quarter of 2016, and certainly seemed game to the challenge of pulling off the architectural feat. They managed to construct and transport the nearly-ready homes from Finland to Dubai within a span of less than a year. Lahtonen continues: “The seawater here is very harsh, and we’ve had to take that into consideration. The sea in Finland is very different as compared to the waters here. The designs were built to withstand the weather conditions of Dubai.” Admares also had to bear in mind the challenges involved in transporting homes over a distance of 6,000km. The homes were first assembled at the Rauma Shipyard in Finland. The task of safely transporting the homes from Finland to Dubai’s Port Rashid was then handled by the German cargo company, SAL Heavy Lift. They managed to do this in nearly 20 days. Once the homes were fitted with the remaining components, Sharaf Shipping Company tugged the homes out from the port to Marasi Business Bay. Lahtonen adds: “There are certain things that you can do (construct) at the shipyard, be-
Mikko Lahtonen and David Heffernan
Logistics News ME | October 2017 | 25
C ov e r Sto ry
About Marasi Business Bay Dubai Properties, the real estate arm of Dubai Holding, first announced the commencement of the Marasi Business Bay project back in mid-2016. The developer’s goal was to take forward the cultural facet of the Dubai Creek, and transform it into the ultimate residential, tourism, and leisure property in Dubai. The project is completely self-financed, in partnership with local institutions. The one-of-a-kind Marasi Business Bay marina is aimed to shift Business Bay from its corporate setting to an urban lifestyle hub. A DP spokesperson comments on the project: “We had one target: to be ready before Cityscape, so as to ensure we were completely prepared to receive any prospective clients. Teams worked tirelessly, throughout their summer vacations and even the recent Eid weekend. We went for the specialists (Admares and Septech) in their respective fields, ensuring we didn’t have to start from scratch. There was complete synchronisation across all groups.” The development adds to Dubai Properties’ diverse real estate portfolio that includes residential towers at Jumeirah Beach Residence; mixed-use commercial and residential developments in Business Bay (Executive Towers, Vision Tower, Bay Avenue, Bay Square, and Bellevue Towers); and residential communities at Dubailand (The Villa, Al Waha, Arabella, Rahaba, Villanova, Mudon, Remraam, and Serena), among others.
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cause Finland is certainly quite a long way from Dubai. A lot of things could potentially go wrong on the way, especially with the weather. Luckily, we had no issues on that part. Many of the exterior works, like the canopies and glass railings were fitted at Port Rashid, because that makes more sense. The completed villas were then tugged from Port Rashid to here, in Business Bay.” Septech, a water infrastructure specialist, has worked on some of the region’s most iconic marine landmarks, such as Atlantis, The Palm, Dubai Festival City, Saadiyat Island, Yas Island, The Ells Golf Club, and Jumeirah Beach Hotel. Septech was in-charge of ensuring that Dubai Canal was well prepped to receive the floating homes, especially since they were to be anchored to the bottom of the canal. Since this was a first of a kind project for them, they had to engineer it all from scratch. David Heffernan, co-founder and group chief executive officer of Septech Holdings, comments on the challenges of managing the project: “In terms of logistics, we had to coordinate with suppliers from all over the world. That included IWC, Home Port, our team back in Australia, One Ohlson, and Dubai Properties. The homes are just one aspect of
the project. There was, primarily, the Marasi marina construction, followed by the villa walkway construction. A lot of components for these bits came from all over the world. And due to the short time span of the project and urgency, a lot of the materials had to be flown in to meet the deadline, accounting to nearly 700 flights. “Three teams, with factories all over the UAE, coordinated both internally and with suppliers around the world. A lot of the materials came in by sea freight, some of it by air freight, and some through trucks within the UAE. A strong group of nearly 300 people worked 24x7 to complete the task at hand.” The homes are anchored through the Seaflex anchoring system, an elastic and environmentally friendly mooring solution for any floating application such as docks or pontoons. The anchors provide secure moorings even under the worst weather conditions. The stable and secure self-regulating system elongates and retracts in a smooth, even movement according to the water levels. Seaflex has been used on major sites around the world, including at the Al Majaz Waterfront fountain in Sharjah. Heffernan continues: “Some of the power pedestals came from Italy. The underwater anchoring system Seaflex is from Sweden. A lot
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October 2016
Floating homes development launch
September 2017
Floating homes completion (including arrival in Marasi)
20
Number of days it took for the homes to be transported from Finland to Port Rashid
6
Number of hours it took for the homes to be transported from Port Rashid to Marasi
9 157 800
Current number of floating homes
Current number of berths
of the timber and related material has come from Asia. Electric components and other fittings were manufactured locally in the UAE. It was basically a melting pot of materials from all over the world. “The homes itself are very stable, attached to the canal basin. The look is very high-end, consisting of timbre and palm trees. All in all, it’s a very unique project.” Managing the venture around the world, however, wasn’t the only challenge. Dubai is a city infamous for its weather, with mercury rising well above 50°C in peak season. Heffernan comments on the difficulties faced during the summer months: “We had to deal with the constraints during summer, which included three-hour lunchbreaks and indoor manufacturing around the UAE. Also, with the advent of Ramadan, we had to ensure our multicul-
tural workforce faced no trouble. We did successfully manage to tackle it all.” The floating homes arrived in time for Cityscape Global 2017 and were quite well-received. This is just phase one of the project; the entire Marasi Business Bay area, once ready, will include the longest waterfront promenade in the emirate, and the UAE’s first-ever homes on water with pedestrian and boat access, as well as restaurants and leisure facilities. The walkway will encompass expansive green spaces, business and retail units, and unique dining experiences in the form of floating restaurants. Five palm tree lined marinas, accommodating berths for 800 yachts will provide a gateway to the three themed areas of Marasi Business Bay; The Yacht Club, The Pier, and The Park. The entire project is estimated to be ready by 2023.
Final number of berths for yachts, boats, and other vessels
AED1bn
Total value of Marasi Business Bay project
2023
Estimated completion of entire project (majority of the site is slated to be ready by 2020)
Logistics News ME | October 2017 | 27
Ware ho us e s
Prevention is better than cure Warehouse safety is often pushed aside for seemingly more important matters, however, this can be incredibly dangerous and could lead to serious injury and harm
By their very nature, most warehouses are buildings that carry safety issues, with many different jobs going on side by side. There is often use of heavy or moving machinery, with an ever present risk of fire and accidents of different varieties. According to the Occupational Safety and Health Administration (OSHA), the top five hazardous items or activities in a warehouse are docks, forklifts, conveyors, materials storage, and manual lifting and handling (because of the strain they put on workers). Out of these, fork-
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lifts seem to be the most dangerous of all. OSHA’s fact sheet reveals that in US alone, nearly 100,000 workers are injured in a forklift related accident every year. Gordon Leffley, consultant at Workplace Safety & Prevention Services, comments: “This may sound a bit contradictory, but I have found both statements to be true: If you can manage anything, you can manage health and safety, and, if you aren’t managing health and safety, you aren’t really managing anything
else. Workers who feel that their health or safety are threatened have great difficulty in focusing on anything else.” Companies around the world, including those in UAE, have realised the importance of worker safety and the increase in work efficiency with decrease in occupational hazard. Khalid Al Shirawi, CEO of Global Shipping & Logistics (GSL), says: “The primary safety measure is that we make sure all our employees are aware of safety. Procedures are defined, ex-
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amined, and streamlined to eliminate any potential risks that may exist, and then we stick to the procedure. The less variability in a process, the less chances are of something going wrong. “Keeping safety in the forefront of our teams’ minds is also an important step. Different training is provided to our teams, and we emphasise more on near-miss reporting, prevention being better than cure. Safety procedure manuals are available to all employees for their references. All people accessing the warehouse undergo a safety briefing, and they must all wear personal protective equipment (PPE) and follow the safety instructions. Management, through walk-abouts, ensures that standards are maintained, allowing us to proactively manage the situation.” GSL offers training courses for its workers, to ensure that everybody clearly understands the procedures that are to be followed inside a warehouse. Shirawi continues: “Training is tailored for specific jobs. For example, we have designed a safety training program for all material handling equipment (MHE) operators, which focuses on safe MHE operations. Similarly, we have training on food and product safety, ensuring that the products that we store are safe and good to use with high safety standards. Safety is on the agenda of all our meetings. We all care for our team and understand that our safety is in our own hands. All near misses and incidents are investigated to establish the root cause, and this is conducted as a learning exercise for the people involved.” GSL is an ISO certified company (ISO 9001,
14001, 18001, 22000, HACCP, and BRC), and follows an integrated management system, with all processes and procedures documented for the entire business. The company also has fire protection and emergency systems, as approved by the authorities. All systems are periodically tested by team of experts and audited by the authorities. Exits are clearly marked and assembly points identified. Regular drills are held to ensure that everyone knows who, what, and when to do that which is required. Leffley comments on working with hazardous materials: “Workers need to know all materials they are working with, processes for protecting them from hazards, emergency procedures to follow in event of spills, fire, or over exposure, and they need to know where and how to access protective equipment and systems as needed.” Rapid worldwide strides in technology have also impacted warehouse operations. Automation now insinuates that many complicated and hazardous tasks that were initially handled by humans can now be done by machines and robots. Companies like Acme, Dematic, and Swisslog offer solutions for warehouse automation, through products like automatic storage and retrieval, order picking systems, and packaging systems. “Warehouse automation comes with multitude of advantages,” says Alain Kardoum, general manager at Swisslog Warehouse Distribution Solutions. “Automated warehousing systems provide the maximum possible usage of available floor space and building height. The
We all care for our team and understand that our safety is in our own hands.” Khalid Al Shirawi, Global Shipping & Logistics
Logistics News ME | October 2017 | 29
Ware ho us e s
Tips for a safer warehouse: 1. Ensure the floors are dry at all times. Even a slightly slippery warehouse floor can lead to major accidents 2. The warehouse should be well-lit in all corners 3. Follow fire safety norms; fix faulty wiring, keep check on flammable materials, and invest in fireproof doors 4. Wear the right clothes for the job. Many warehouse tasks require safety equipment such as hard hats, safety goggles, and steeltoed shoes automated machines operate within fixed aisles protected by safety fences, so the risk of people being injured in a collision is minimised. The need for operators to physically lift heavy products, or even heavy empty pallets, is also eliminated, thus reducing back injuries, downtime, and costs for the employer.” Swisslog’s products like CycloneCarrier, AutoPiQ, Vectura, and ProMove, and warehouse management software like SynQ and SPOC, ensure that things run smoothly. Kardoum adds: “With the implementation of automation and industrial robots, employees can now work under immense safety. Automation solutions improve workplace safety while optimising workflow processes, increasing accuracy and throughput, and reducing labour and operating costs. “One must constantly keep looking towards newer and more inventive methods of helping businesses improve safety in their warehouses. Consistent safety strategies help minimise errors. Training plays an important role in ensuring that the staff is well educated and up to date with knowledge about safe practices within the workplace.” But while safety automation solutions can enhance training and make work environments safer, automated systems and technology can
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5. Do not over stack shelves and racks. These can cause serious damage if they collapse under excessive weight 6. Educate workers on all safety procedures and emergency exits 7. Material handling equipment like forklifts and cranes should only be operated by trained personnel
With the implementation of automation and industrial robots, employees can now work under immense safety.”
Alain Kardoum, Swisslog
require additional training in order to deliver the degree of efficiency they’re designed to. As advanced technologies continue to propel distribution and manufacturing operations forward, it’s more important than ever to take advantage of industrial automation to ensure your operations run at peak performance. But that shouldn’t mean sacrificing safety in the process. When it comes to automation systems, best practices for safety include a combination of safety training and safety automation equipment, which can ultimately enhance operational effectiveness.
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Inv e stm e n ts
India-UAE business summit India and UAE have been working closely to enhance their cooperation in a range of fields, to further strengthen the economies of both nations
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n August 16, 2015, Indian Prime Minister Narendra Modi visited the UAE, its dignitaries, and the 2.5 million economic migrant workers of Indian origin, who call the UAE their home. It was a historic visit, aimed to transform the bilateral relations between two countries who have been trading with each other since the UAE was formed in 1971, and even before as regional traders. Such was the importance of the visit that HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and the Deputy Supreme Commander of the UAE Armed Forces, himself received Modi, whereas foreign dignitaries are
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normally received by HH Sheikh Abdullah bin Zayed bin Sultan Al Nahyan, the minister for foreign affairs. Both nations are aware of the importance they hold in each other’s economy, and it is only natural that they seek to enhance this relationship further, making it beneficial for both parties involved. The India-UAE Partnership Summit (IUPS) is one such tactic to further the trade relations between India and the UAE, under the theme ‘investment implementation’. Modi’s visit brought with it the vision of investments worth $75bn from the UAE to India, and together, the Indian Prime Minister and Abu Dhabi Crown Prince set a target of 60% increase in
bilateral trade in the next five years. HE Navdeep Singh Suri, Indian Ambassador to the UAE, said: “India and the UAE are undergoing through an exciting time in our bilateral relationship that started with the historic visit of Prime Minister Modi to the UAE in August 2015. His visit was followed by the very successful visits of HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and the Deputy Supreme Commander of the UAE Armed Forces to India in 2016 and 2017. Today we are cooperating across a wide spectrum of areas, including strategic areas such as space and defence. India and the UAE are all set to leverage on our mu-
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India and the UAE are all set to leverage on our mutual strengths, and to create synergies to help both the nations achieve their respective national economic visions.” Navdeep Singh Suri, Indian Ambassador to the UAE
tual strengths, and to create synergies to help both the nations achieve their respective national economic visions. We are also very confident of attracting a lot of investment from the UAE to India, given our close relationship and the opportunities that exist in India.” The annual two-way trade between the two countries today stands at about $53bn. While India remains the UAE’s top trading partner, the UAE is India’s third largest trading partner – something that the strategic partnership could boost further. According to a report by the Dubai Land Department, Indians have invested AED20.4bn into Dubai’s real estate in the 18 months from January 2016 till June 2017. This is in addition to the AED20bn invested by Indians in Dubai’s real estate in 2015. As an expatriate national business community, NRIs are also collectively the largest employer group in the private sector. India is also looking at significant increase in the UAE investments into the country, especially on the infrastructure front. The UAE has invested nearly $10bn into India, with foreign direct investments (FDI) of $4.7bn since 2000. The private sector of India and the UAE, in particular the NRI business community, has come forward to support the strategic government-to-government partnership, by creating a
new pan-UAE business entity called the Business Leaders Forum (BLF) in March 2017. BLF, set up under the direct guidance of the UAE Ministry of Economy, Embassy of India, and Consulate General of India, is the new umbrella organisation of business leaders in the UAE. Dr Azad Moopen, president of Business Leaders Forum and founder chairman of Aster DM Healthcare Group, said: “As the platform formed by high-net worth NRIs and UAE nationals, the BLF wants to synergise our resources to contribute to the economies of India and the UAE, and the IUPS will provide the first breakthrough in our quest to support both the economies in a bigger way, by taking part in mid to large sized projects that will help the economies.” IUPS is said to be the only business conference of its kind to be pro-actively supported by the Government of India through the Embassy of India, Abu Dhabi, and Consulate General of India, Dubai as well as the UAE Ministry of Economy. IUPS is also the only such bilateral summit where ministers of Government of India as well as UAE will be participating, alongside private entrepreneurs and business leaders. The summit will be held at Armani Hotel, Burj Khalifa, on October 30 and 31, 2017.
As the platform formed by high-net worth NRIs and UAE nationals, the BLF wants to synergise our resources to contribute to the economies of India and the UAE.” Dr Azad Moopen, Aster DM Healthcare
Logistics News ME | October 2017 | 33
C o mm er c i al V e hic l e s
Vans lead the way Industry experts are of the opinion that fleet vans enjoy an envious position in the market as sophisticated and handy commercial vehicles
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asks in the Gulf run based on the question ‘what is the quickest way to complete this job?’ When you consider a city like Dubai, things are expected to be streamlined and efficient. And when it comes to delivery of goods like foodstuff, courier packages, and even flowers, fleet vans—also known as cargo vans—seem to find favour. Kamal Al Shakhshir, national sales man-
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ager for Suzuki at Al Rostamani Trading, comments: “Inland transportation takes place through fleet vans. Therefore, vans form an integral part of supply chain, especially with their ability to move around city on small roads and unrestricted movement round the clock, unlike heavy trucks.” Dubai is highly particular about trucks running on the highways and city roads during allotted times of the day, as well as about
the weight and height of large vehicles on bridges. Heavy fines are imposed on lawbreakers. This can make it very difficult for companies to get their goods around during the entire day, especially when it boils down to bakeries, florists, and e-commerce and courier services. Also, given their comparatively smaller size, vans can fit into narrower spaces and tiny parking slots, unlike larger trucks.
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They seem to be the all-round option for short distance deliveries. Buyers like the vans’ high capacity and roomy, coupled with good fuel economy and higher anticipated resale values, which eventually reduce ownership costs. Saud Abbasi, managing director of Toyota at Al Futtaim Motors, says: “Currently, fleet vans hold an important place in the logistics industry, and in many other industries, where they offer a multi-purpose reliable mobility solution, whether for cargo transportation or travel purposes.” The Toyota Hiace is one of the most commonly seen cargo and passenger transport vans seen on UAEs roads. Abbasi adds: “The Toyota Hiace is renowned for its long-standing heritage of proven performance and sleek styling, which makes it an efficient choice. The Hiace comes in two models, Commuter and Panel. The Panel model is used for transporting cargo, thanks to its larger size and load capacity, and the Commuter is used for carrying up to 13 passengers. Customers can also opt for a high-roof version which can be used for transporting larger sized goods, making the van very useful.” The Hiace is currently available in gasoline and diesel models, with a 2.7 l engine, and a fuel efficiency of 9.7km/l for the gasoline model; and a 2.5 l engine, and a fuel efficiency of 12.7km/l for the diesel one. While currently in the UAE, the Hiace only comes in gasoline and diesel engines, but Abbasi mentions that Toyota is expanding their hybrid offering in the coming few years, offering their customers the opportunity to actively contribute to a cleaner air, in line with the government’s green agenda. The Suzuki APV van too comes in both commuter and cargo versions; Shakhshir mentions that the cargo van sees more demand. Mercedes-Benz offers a range of vans as well, Vito and Sprinter, both of which are customisable according to customer needs. Sprinter vans are commonly used as ambulances. The capabilities of a fleet van can be further enhanced by adding customisable fleet tracking systems, dashboard cameras, reverse sensing systems, back-up alarm, remote start, grab handles, convex spot mirrors, drop-down ladder racks, and compartments to better store goods. Companies like Van Vliet XL, and Falcon GPS Trackers offer customisation options for cargo vans in the UAE. Rather than factory order a rearview camera system, reverse sensing system, or remote start features, fleets are adding
Fleet vans offer a multi-purpose reliable mobility solution, whether for cargo transportation or travel purposes.” Saud Abbasi, Toyota
Logistics News ME | October 2017 | 35
C o mm er c i al V e hic l e s
the equipment at the time of up-fitting, to avoid the added initial vehicle cost, requiring a possible upgrade to a higher trim level, or forcing the selection of additional option package content that is not required for the fleet application. Pickups continue to offer stiff competition to vans. But the latter seems to win in many situations. The biggest advantage is that it is enclosed, and that’s a big deal for its customers. This ensures theft protection, as well as keeps its load safe from bad weather, which is especially important for drivers carrying goods like courier packages and foodstuffs. A van also allows the user to be a lot more organised than it would be in a pickup. Vans usually offer interior organisational features, such as shelves or drawers that can help to stay organised as one goes from one jobsite to another. Finally, vans offer one other ability that
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pickups don’t have: advertising space. Because most cargo vans have large exterior slabs in place of windows, they allow people to advertise their business a lot more easily than pickups do. If advertising is important, it is strongly suggested to pick a van over a truck for this reason alone. It is also essential to keep cargo vans in good shape, because this allows better resale value when one upgrades to a new or different model. Abbasi suggests: “For optimum performance and safety, we advise our customers not only to always purchase genuine car parts, but also to regularly maintain their vehicles.” All companies recommend regular maintenance at every 10,000kms, to ensure the van is running in good condition. Cargo vans are constantly evolving, with new models and modifications coming to light every subsequent year, especially as
commercially viable and eco-friendly versions. In August 2017, Ford and Deutsche Post (DHL) Group subsidiary StreetScooter GmbH rolled out the first of their jointly produced electric delivery vans, the StreetScooter Work XL. The Work XL is based on a Ford Transit chassis fitted with a battery-electric drivetrain and a body designed and built to Deutsche Post’s DHL specifications. The company plans to build 150 of the e-vans at the StreetScooter plant in Aachen, Germany, which DHL will run to support its urban parcel service in Germany. The two companies plan to build 2,500 evans by the end of 2018, and they could be sold to third-party customers like StreetScooter’s other electric models, the Work and Work’L. The new e-van will have stowage space for more than 200 packages, and a range of 80 to 200 km.
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Seeking excellence Agility Iraq and Strategic Analytics Team discuss the launch of a promising new logistics training facility in Iraq, the first of its kind in the Middle East Agility Iraq’s recent venture is a Centre of Excellence. Located in the Rumaila Energy Park, it is, essentially, a training facility aimed at empowering local Iraqi companies to better understand logistics and new developments in the sector. Agility joined hands with Strategic Analytics Team (SAT), a global logistics technology consultant, to make the centre a reality. SAT provides support for businesses around the world, including consultancy on specific projects as well as project management. In addition, SAT also provides audits across a range of logistics operations, as well as a range of logistics education courses. Spread over an area of nearly 50,000sqm, the centre is a first of a kind in the Middle East region and, following its launch, SAT is looking at setting up other centres in Africa, Asia Pacific, and Europe. Colin Hindley, CEO, Agility Iraq, comments: “Through our own experience, Agility understands the importance of developing local content in Iraq. We believe that by having an international accredited training provider who can offer industry-standard training, we can support and reduce costs, and improve local Iraqi companies who may not have the resources for personnel to be sent abroad to obtain the required international accreditation. This will also help companies reduce their expat presence, with a greater focus on local development. The centre of excellence will also allow Iraqi companies to benefit from obtaining the same educational knowledge, should this be by an individual or a local company.” Paul Jorgensen, senior partner, SAT, adds: “This is a hugely exciting opportunity for both SAT and Agility. We are creating a place that will directly help develop and
We believe that by having an international accredited training provider, we can support and reduce costs, and improve local Iraqi companies.” Colin Hindley, Agility Iraq
grow talent in the logistics industry across the region.” The Centre of Excellence will have a wide range of courses being offered and will grow to the industry’s requirements within Iraq, but at present, the centre will be offering courses such as driving education courses (IVV), lifting & hoisting (LEEA), first aid, H2S and IOSH. Hindley adds: “We are also currently working with organisations such as the Chartered Institute of Logistics and Transport (CILT) to provide a range of other courses, which will be fully accredited to degree level. The range of training transcends a number of industries, but the clear HSE focus of the training is significant and a reflection of our own basis for operations in country.” Jorgensen believes that empowering people to be better equipped is what will truly advance the industry. He says: “At SAT, we recognise that some of the most effective risk controls are based upon simple, practical administrative interfaces that link humans to clever technological solutions. SAT consultants, therefore, focus much of their attention on developing, motivating, and equipping people at every level of a business with the competencies and administrative tools they need. This is done through formal training as well as informal coaching and mentoring.” But it is not easy to maintain stability in a country like Iraq. The United States Institute of Peace (USIP) highlights the direness in the country’s state of affairs in its September fact sheet, explaining how Iraq has been ravaged in recent years by cycles of warfare, a growing refugee crisis, crippling sectarianism, and the violent spread of the self-styled Islamic State extremist movement (also known as ISIS, ISIL, or by its Arabic acronym, Daesh). In
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T ra i n in g
the past decade, Iraqis have made some progress in building their government—approving a constitution to replace that of the Saddam Hussein era, and holding successive elections for parliament and provincial governments. Still, governing institutions remain weak, and corruption and poverty endemic. The ISIS threat and rising violence compelled US military advisors to return to the country in 2014, after having withdrawn in 2011. The continued weakness of governance in Iraq— along with ISIS’ seizure of much of Northwestern Iraq and adjacent parts of Syria, and its recruitment of young Muslims worldwide—poses a long-term challenge to stability in the region and globally. “Security incidents remain reasonably isolated, especially in the southern area of Iraq, where the bulk of our operations are active,” says Hindley. “That said, companies have to take appropriate measures and secure their employees, their facilities, their assets, and their business as a whole. “At Agility, we always take the necessary precautions and assess daily security reports to determine whether moving shipments around the country is feasible and safe. As the fifth largest oil producer in the world, logistics in Iraq must be geared around its economy. Whilst the political instability, oil price crash, and security situation in Iraq provide us challenges, Iraq can still be a promising market to operate in. The oil price will stabilise, and due
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We recognise that some of the most effective risk controls are based upon simple, practical administrative interfaces that link humans to clever technological solutions.” Paul Jorgensen, Strategic Analytics Team
to the economy’s reliance on oil, Iraq will need to maintain its production and position in the market. This means that there is a strong foundation for a long-term presence. For Agility Iraq, this is supported by a recent four plus one year freight forwarding contract win with an IOC in Majnoon. We will always have a strong focus on HSE and compliance, and with our emerging market roots and expertise, we are well equipped to operate successfully in Iraq.” Jorgensen too is well aware of the challenges involved and adds to the above: “We recognise that Iraq has its challenges, and one of these is the continuing development of its people and creating opportunities for them to develop. SAT is fully committed to providing the education skills for Iraqis to apply for roles within the international investment companies that operate there, at the same time, providing assurance to prospective employers that the courses are independently assessed and examined by international accreditation bodies. By providing our services to Agility in Iraq, we hope that we can help in some small way to aid the development and the provision of a lasting educational legacy.” The Centre of Excellence is set to commence in October 2017, after the official inauguration, and will be primarily aimed at reducing the expat presence, without compromising the quality of service, and by balancing the associated costs.
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Dubai’s marine transport sector continues to grow in leaps and bounds, bringing forth the perfect mix of convenience and luxury in this rapidly changing metropolis
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ubai’s maritime sector has long been a key component of the economy – and its identity. Amer Ali, executive director at DMCA, says: “Long before oil and gas, Dubai used to make a living out of the maritime sector. There’s been a successful marriage here between trade and the sea for generations.” A recent global comparison of the top 15 ports of the world by analysts at Menon showed that Dubai comes in 13th place overall. This survey assessed maritime facilities, maritime law and finance, technology, attractiveness and competitiveness, and the port’s role as a shipping centre. Though Singapore came out on top globally, Dubai outranked both Mumbai and Rio de Janeiro and, with the exception of Mumbai, was the only top 15 port between Athens and Singapore. Indeed, in terms of competitiveness and attractiveness, the Menon survey’s experts ranked Dubai sixth in the world as a location to establish a maritime business. They also declared that Dubai and Shanghai would be the two cities whose importance as maritime centres would increase the most over the next five years. Marine transport While Dubai continues to take strides in the world of transporting cargo via waterways, it isn’t far behind when it comes to the passenger maritime sector either. Recently, Dubai’s Roads and Transport Authority (RTA) announced that a staggering 6.6 million people had used the RTA marine transport modes in the first half of 2017 alone. And the most popular mode of water transit is the Abra. Abra comes from the Arabic verb ‘abara’, which means to cross. For centuries, it has remained one of Dubai’s most frequented modes of transport, making it the symbol of the city’s history and heritage. Indeed, this mode is the most preferred amongst all, taking credit for 6.25 million riders all by itself. The most commonly used abra is known as the motorised traditional abra, ferrying passengers across the Dubai Creek, from Deira Old Souk station to Bur Dubai station, and vice versa. The motorised abra fleet comprises 148 vehicles, each seating up to 20 passengers. Mansoor Al Falasi, director for marine transport at RTA, says: “The traditional Abra still has its old style of design, the material used in building the vessel, and the way that it is operated. Its unique area of operation also plays a major role in its popularity, taking people across the Creek for a simple price of AED1.” The other kinds of abra include the rowing abra, which seats three persons and involves
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Marine is an important part of Dubai’s overall experience, especially when it comes to tourism.” Kulwant Singh, Lama Group
plenty of manual labour by the boatman, and the petrol abra, which again seats 20 people like its motorised predecessor, but is a safer and modern take on the traditional boating experi-
ence. There is also an option of electrical traditional abra, at various tourist spots. The boat seats eight passengers, and takes through strategic tourist points such as Burj Khalifa, Global Village, Atlantis, and Al Mamzar. The motorised abra costs AED1 per trip, payable in cash. The rowing boat and the petrol abra cost AED60 for half an hour and AED2 per trip respectively, both payable by Nol card. The electrical abra is more of a tourist attraction than a means of daily travel, and carries a different price at each location. The other modes of water transport offered by RTA include water taxis, water buses, and ferries. The water taxi operates across 32 stations running across Dubai, from Al Mamzar station, all the way to Palm Jumeirah. The focus is on transporting tourists from one point to another, seating about 10 passengers, and with facilities such as air-conditioning and LCD monitors for every deluxe seat. The taxis see an average of 47,000 passengers in a year, and charge AED400 per hour. The water buses are low wash catamarans, operating only within Dubai Marina, with three stations— Dubai Marina Mall, Marina Terrace, and Marina Promenade. The buses carry about 298,000 passengers in a year. They too offer air conditioned cabins, and accept Nol cards, charging between AED3 to AED5 for a trip. The Dubai ferry is a relatively recent addition to the emirate’s expanding public and tourist transport system, launched in 2011. It operates round trips between five ferry terminals: Dubai Marina Mall, Al Ghubaiba, Dubai Canal Station, Al Jadaf, and Sheikh Zayed Road Station. Each ferry has a capacity of
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nearly 100 passengers, and transports approximately 176,000 passengers in a year. The ferry as a whole is divided into economy (84 seats) and business (14 seats), with two slots allotted for people with special needs. It even carries a kiosk for snacks and souvenirs, and restroom facilities. Costs run between AED50 to AED140 (family packages). Kulwant Singh, founder and managing director, Lama Group, says: “We (Lama Tours) handle over a million customers every year, and nearly 150,000 – 180,000 customers use marine services. Marine is an important part of Dubai’s overall experience, especially when it comes to tourism. Lama tours include abra and RTA ferry rides as part of our city tours. The city is well connected by its waterways, and hence one cannot miss this opportunity.” Dubai Water Canal The AED2.7bn Dubai water canal project is a joint venture of RTA and master developers, Meydan and Meraas. The 3.2km canal, with its 6.4km-long waterfront, winds through the emirate of Dubai, originating from Business Bay, and ending in the Arabian Gulf at Jumeirah Beach Park. The canal is 6m deep and features bridges 8m high, allowing yachts and marine craft up to 200m in length to pass through. It is estimated to attract over 30 million visitors annually. The benefit of the canal is twofold: one, it will result in an estimated 33% improvement of the quality of water in the entire waterway, and two, it will boost the marine sector as a whole. The ridership of marine transit modes in the canal is expected to exceed one million riders per annum up to 2020, and the number
is expected to jump to four million riders by 2030. This is equivalent to about 2.9 million journeys by vehicles on roads. The current line of Dubai Ferry shuttling between Al Ghubaiba station and Marina Mall station has been modified to call at Dubai Canal station. Thus, Dubai Canal station links Al Ghubaiba, Marina Mall, Business Bay, and Al Jadaf stations. Al Falasi comments on the changes in the Dubai marine sector since the Dubai water canal became operational: “The opening of Dubai Canal brought a big potential in facilitating and introducing a connection of the old Dubai Creek and Dubai Marina with the new down town Dubai and the Dubai Canal, as the ferry service is considered a unique daily commuting service in addition to the tourist distinctive destination.” In August, the Dubai Maritime City Authority (DMCA) released a circular, seeking to regulate the traffic in the canal, as part of its ongoing efforts to create a secure and sustainable maritime sector in Dubai. Several navigation regulations were listed, including prohibition of jet skis and restricted vessel sizes for other boats. Amer Ali says: “The move demonstrates the authority’s commitment to implement best maritime practices and improve the operational efficiency of Dubai Water Canal, a vital project that aims to put the emirate on the global maritime map and support the government’s efforts to promote local maritime safety.” The future of marine transport Singh comments: “The maritime transport sector is of crucial importance to modern societies. It influences an essential element in
The abra’s unique area of operation plays a major role in its popularity, taking people across the Creek for a simple price of AED1.”
Mansoor Al Falasi, RTA terms of social and economic development, and as a potential source of excellent employment and career opportunities, with several million people currently working in activities and companies directly and indirectly related to oceans and seas worldwide. Shipping has long been the major form of transportation, as well as an essential communication link connecting coastal cities, countries and continents.” In July, Atkins won the design competition organised by RTA, for designing new marine transport stations along the Dubai canal. Atkins succeeded in creating the right blend of heritage and modernity, employing a canopy to generate solar power. The stations will also make use of 3D printing for some of the structural components. This stands in accordance with HH Sheikh Mohammed Bin Rashid Al Maktoum’s Green Dubai initiative, a vision of a more efficient and eco-friendly Dubai. Al Falasi highlights RTA’s plans for furthering Dubai’s marine transport: “RTA is looking for maintaining the quality of the service and expanding the commuting network. Another focus is to reduce the carbon emission of the vessels and implement a green solutions on how the vessels are being operated. Finally, we want to convert the marine vessels to be equipped with smart technologies such as WiFi, transforming the user experience.”
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Int e rv iew
Trukkin away! Janardan Dalmia, CEO of Trukkin, explains how the techno-logistics app is all set to transform the modern logistics scene
Give us a brief overview of Trukkin. Trukkin’s inception happened somewhere in the middle of the end of 2015 and the beginning of 2016. I was in Saudi Arabia, and we were in talks with top management businessmen there. We were brainstorming about the influence of technology on various spheres of our life, from booking hotels to taxis, airbnbs, and so forth. And one focal point that emerged through our discussions was commercial transport. Commercial transport is still done in a very oldschool, traditional manner. It is evolving, but it still sticks to its traditional ways of business. It is one of the biggest markets in terms of logistics. Logistics business in the MENA region ranks at $66bn, and commercial transport makes up $12bn of this. In GCC alone, commercial transport ranks at nearly $8bn to $9bn. Our discussions brought forth the issues faced when dealing with this industry. And we decided that we could simplify it with the use of technology. We did a lot of research in Saudi Arabia and the UAE, met with large fleet owners, and thus identified the things that had to be rectified in this industry, especially the lack of technology. We started work on a product that would solve these problems. And so, Trukkin was launched in May (2017). We are a techno-logistics platform. We are an aggregator, simplifying tasks for truck
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drivers and fleet operators. Through Trukkin, we want to bring in more transparency and efficiency, and we want to be the preferred logistics company for all in the GCC. What about reaching out to the average truck driver? Our sales team coordinated things. We reached out to big and small companies alike. In the UAE alone, you have around 60,000 trucks up and running. However, there are so many independent truck drivers out there, whose method of finding a job is still very traditional. They rely on word-of-mouth to get the word around, or wait at exit-areas for a job. Dubai’s weather doesn’t do them any good, when they wait for hours at exit-areas or truck stops for potential jobs. Through our app, they can find a job online. Thus, they can relax at home and find jobs on our app. They don’t have to rely on brokers anymore, and can directly reach out to the company. We are very hands-on, and are 24x7 available. We spend as much time as possible with the fleet owners to understand their needs, and how we can best serve the needs of all connected through this app. Our app is also bilingual, since a lot of the truck drivers are from Asia—India, Pakistan— who speak Hindi or Punjabi or Arabic
or Urdu. Our aim is to create a user-friendly app and easy-to navigate. We also give them training lessons prior to using the app. We can verify them at our offices, in an ‘onboarding process’. They come in with their documents, and we verify the papers for them, check their vehicle, and legitimacy. We download the app for them and teach them how to use it. Our app is quite userfriendly, so if one person learns how to use it, he can easily teach another. And it’s the app is free, which makes it easier for them. What kind of investments were required to build an app of this sort? While most of the initial capital investment came from me and Ahmed (Ahmed Ibrahim Al Nafie, partner and director, Trukkin), we have strong interest coming in from wealthy individual families for investments. We are still in talks, but we’re playing it safe. We need value-adding partners, not just in terms of capital, but also in terms of experience and mentorship. Our network consists of some very important personnel from the logistics industry, who identify with the problems that we’re dealing with. We have also been piloting with quite a few large fleet companies. So far, the response has been very positive and overwhelming. From the
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About the app:
company’s perspective, we are definitely supplementing their workings. They are interested, and we want them to be our partners, not customers. We want to work with logistics teams to understand how we can resolve their requirements. We are a very young company, but things are looking very encouraging. We have offices in Riyadh and the UAE, and we plan to expand throughout GCC. What kind of a workforce does Trukkin employ? Our tech team is based out of Bangalore, India, where we have almost 20 people working on the app. We have operational offices in Riyadh and Dubai, the latter consisting of 10 employees at the moment. As we progress, we want to invest in local talent, to help with nation-building. Saudi Arabia’s Vision 2030, of HE Prince Mohammed bin Salman and that of HH Sheikh Mohammed bin Rashid Al Maktoum, both stress on digital transformation. These countries place great emphasis on their youth and insist on internet penetration. These things are the right combination for us. We want to invest in the youth and grow further. Are you worried about competition, since the digital world is one that changes rapidly? We are not focusing on competition. We believe we are the first to run a techno-logistics platform at this scale in the GCC. Our network and accessibility is very widespread. It all comes down to having a good product and having a good execution. We just want to focus on our
product, and not think about competition for now. Things have changed slowly. Truck drivers are not used to dealing with technologies, but it’s changing. What is the growth strategy followed by Trukkin? Our focus is on giving a quality experience to our customers. We want to continue to enhance this experience and develop it further. The best thing is that all our customers so far have been coming back to us again and again. Which means our product is doing its job, and is serving our customers well. The value proposition is very strong from both sides. Plus, we want to open in few other locations in Saudi, since it’s such a big country. Our app is slowly expanding into Bahrain and Kuwait as well. We constantly take feedback to improve. You could call us a local solution for a very local problem. Our app is not something that was developed in America and brought here. It took input from the local issues, understood how business is done in the UAE, Saudi Arabia, Bahrain, etc., and works as a result of this. Our goal is to become the top techno-logistics platform for the GCC. All our partnerships are based on what value we add for them, and what value they can add for us. Most of all, we are just focusing on our product and service. We want to give a value added experience to both transporters and the companies. Hopefully, in the next two years, we could be a very strong logistics partner. We don’t want to overshoot, but we are confident.
Trukkin Middle East is a cloud-based B2B platform, which was launched in May 2017. The start-up was the brainchild of entrepreneurs from Saudi Arabia and the UAE, and was co-founded by Ahmed Ibrahim Al Nafie and Janardan Dalmia. Trukkin is essentially a multi-lingual customer app on iOS and Android, and a web portal. Customers, fleet owners, and independent drivers all register on the Trukkin platform after going through a verification process. Customers can then request services to transport their goods/load, and provide order details via the app and web platforms. Customers and fleet owners can also track their shipments in real-time through Trukkin’s tracking system. Trukkin is headquartered in Dubai, with offices in Saudi Arabia and India.
There are so many independent truck drivers out there, whose method of finding a job is still very traditional…through our app, they can simply find a job online.” Janardan Dalmia, Trukkin
Logistics News ME | October 2017 | 47
E v e n t r ev i e w
Materials Handling Middle East 2017 The 2017 edition brought together big names from the materials handling industry, a budding display of international and local suppliers alike
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he Middle East’s dedicated trade fair for intralogistics, supply chain management, freight, and cargo saw a successful three-days of busy networking and discussions of the latest trends and innovations in the current market scene. The event was inaugurated by Mattar Al Tayer, director-general and chairman of the board of executive directors of the Roads and Transport Authority (RTA). The ninth edition of the biennial three-day event featured 126 exhibitors from 21 countries, and welcomed 3,300 visitors from 50 countries, at the Dubai International Convention and Exhibition Centre. The event saw the participation of seven of the world’s top 20 materials handling systems suppliers, including the global giants Daifuku from Japan, German company SSI Schaefer, and the American-headquartered Dematic. Also in attendance were major local suppliers and service providers such as Kanoo Machinery, Al Futtaim Motors, General Navigation and Commerce Company (GENAVCO), SPAN, and ACME, while a two-day Supply Chain and Logistics Forum and a Forklift driving competition ensured visitors and exhibitors alike were informed and entertained. Much of the discussion on the show-floor centred around the increasing popularity of warehouse automation in the GCC, with exhibitors showcasing a full range of wares from manual wracking and semi-automated order picking solutions, to fully automated high-bay warehouses incorporating artificial intelligence and the Internet of Things (IoT), otherwise known as Industry 4.0. Dematic, one of the world’s leading specialists in automated intralogistics solutions, was a debut exhibitor at Materials Handling Middle East 2017. In January 2016, it secured the contract for what will be the Gulf region’s largest automated distribution centre
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upon its completion toward the end of 2018. Michael Kreeft, sales manager for Dematic Europe, Middle East, and Africa region, commented on Dematic’s progress on the centre: “We signed the project in January 2016 and it’s going live next summer hopefully. There’ll be people working in pick stations, but it’s highly automated. We have project managers working on it, and 50 resident engineers based here along with a customer service office. It’ll take two and a half years to build along with testing and then it’ll go live.” UAE-based ACME is a regular exhibitor at Materials Handling Middle East, and a full spectrum industrial and warehouse automation solution provider with more than 40 years’ experience in the Middle East. This year, the company put on display a semi-automated
man to goods order picking solution called Cavalry. Holger Humburg, vice-president of projects at ACME, said the ACME-designed solution is a mobile version of the sort to light system, using a guided manned mini-load crane, and capable of travelling along aisles 100m long and up to 25m high. He said: “When we tell anybody that we have a fully automated system, many of them get scared because they need trained people for operation, and they need maintenance from experienced staff. However, people can operate Cavalry without specialist skills or qualifications, and that’s why we’re going to the market with a more or less semi-automated system. This type of system will be particularly popular in this region because the first step of automation is semi-automation
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• According research firm MarketsandMarkets, the GCC’s automated material handling equipment market will grow 8.6% annually through to 2023, when it will reach USD500mn, from USD278mn in 2016 • Saudi Arabia and the UAE are the largest markets for automated material handling (AMH) equipment in the GCC region. In 2016, Saudi Arabia accounted for as much as 48% of the AMH equipment market in the GCC • The UAE accounted for 27% of the AMH equipment market in GCC in 2016. The growth of the market is driven by the adoption of automation, advancements in manufacturing processes, and improvements in the plant productivity and we would use it for different goods with small and midsize throughout. If you have standard operations to deliver for spare parts or pharmaceuticals with delivery once a day, you can manage with Cavalry.” Another UAE-based supplier, GENAVCO, showcased its indoor and outdoor application machinery, ranging from hand pallet trucks, to stackers for stacking products in aisles, and reach trucks capable of lifting materials as high as 13m. Asif Khan, general manager of GENAVCO’s plant and equipment division, said: “Sectors such as quarry, mining, and automobiles have certainly been impacted by recent economic downturns, but we’ve seen a steady growth when it comes to logistics and warehousing equipment. It is a very stable industry, especially in a hub like Dubai, with more players entering the market every year.” Other top 20 worldwide suppliers at Materials Handling Middle East 2017 were Mecalux from Spain, Beumer Group from Germany, and Swiss companies Swisslog, and Kardex Remstar. Alain Kardoum, Swisslog’s general manager, and Jay Andres, CEO of Mai Dubai, a local bottled water supplier company, discussed the automation project that the two companies have tied up for. In December 2016, Mai Dubai commissioned Swisslog to auto-
mate its storage and distribution logistics at its new mega expansion project in Dubai, in order to reach its 2020 goals. The order value of the project amounts to $21mn. Andres commented: “In a factory, nearly half the employees are forklift drivers. And the worst factory accidents are usually caused by forklifts. But when you automate these tasks, safety considerably increases. So this project is an advantage to use, not just from an economic point of view, but also from an overall worker safety aspect too.” Kardoum agrees with Andres, and added: “Designs were shared from both our side and Mai Dubai’s side. The aim was to build a highbay warehouse that would suit Mai Dubai’s needs not just today, but also in the future, when their demand and supply grows. This is something that matches Dubai’s vision of a smarter city within the next few years.” UAE-based Kanoo Machinery was also onhand as the regional agent for its material handling equipment brands Hyster, Utilev, AisleMaster, and Combilift. Mohamed Elabd, Brand Manager for Kanoo Machinery, said the rental division of its material handling equipment department was becoming increasingly important as a revenuegenerating stream. “Our rental division has grown by 25-30%
over the past two years, and there’s more and more enquiries now,” said Elabd. “Most of the third party logistics providers are asking for rental equipment for long-term leases of three to five years. We were one of the first companies to offer rental of material handling equipment and in the past three-four years it’s really grown. It’s popular firstly because customers don’t have to have service team. If there’s a problem with the machinery we will fix it. It’s hassle free and the most important part is there is very little initial investment and risk.” The event also featured the 2nd Forklift Operator of the Year – a unique competition where more than 80 of the UAE’s most skilled forklift jockeys were judged on their ability to safely and efficiently manoeuver three-tonnes of electric forklift machinery in tight and narrow spaces, replicating a warehouse environment. Deepak Kataria from CWT-SML Logistics was crowned the Forklift Champion of Materials Handling Middle East 2017. Representing more than 200 brands, the event also introduced a new transport and logistics section to the show floor, putting the spotlight on commercial vehicles, and adding more focus on a sector that is poised to experience significant growth in the region. The 10th edition of Materials Handling Middle East will take place in 2019.
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V i e wp o i n t
Project: Supply chain Ralf W. Seifert, director of digital supply chain management program at IMD, explains why demand planning and inventory-making deserve more consideration than they receive
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ompanies are increasingly investing in their sales and operation planning (S&OP) process and tools. Gartner, an American technology research and advisory firm, considers demand planning accuracy at the top of the list of key supply chain performance indicators. Demand planning is becoming more sophisticated. Powerful statistical tools can model consumer demand patterns, while demand shaping and demand sensing are on the rise, and are placing demand planning in a more proactive position with the markets. These developments will yield service and working capital benefits in supply chains which use forecasts to set inventory levels, commonly known as make-to-stock supply chains. This emphasis on demand planning resonates strongly with companies that must
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respond very quickly to consumer market forces, with immediate fulfilment of B2B orders from retailers or B2C orders through omni-channels. Project supply chains are often forgotten when we discuss today’s supply chain trends. Project supply chains are chains that provide products that are for a unique customer, and must be configured or even designed from scratch. Think of a new power station, an airplane, or a telecommunications network. These supply chains have a global footprint, several internal and external production points, lead times that are several months long, and most importantly, critical links with engineering and commercial teams. But they are a big part of global trade. If we look at the 2015 Fortune 500 classification by sector, the companies that could be considered to have a significant part of their revenue
derived through project supply chains, such as General Electric and Boeing, account for about 12% of the total revenue of the list. It’s worth taking a closer look at the dynamics and challenges of planning in a project environment, and how companies can be successful with this approach. Project supply chains — a different set of challenges Customer orders Project supply chains are strikingly different from make-to-stock supply chains. Rather than dozens of retailers and millions of consumers in project supply chains, there are only a handful of customers in the demand profile. They are the result of months or even years of bids and negotiations. Statistical models don’t apply as readily when there isn’t a mass from which to draw wisdom, and it is difficult
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whether the products are delivered late to the final customer— they don’t have a clue.”
to try and make sense of historical data and draw simple assumptions and conclusions from it. The only way to choose potential projects is to have close collaboration with the commercial teams. Demand planning and S&OP As each project is different, the scenario analysis for determining the cost and risk associated with each project needs input all the way up the supply chain, including to vendors. As project supply chains are complex and multinational, this is a big challenge. The role of demand planning in the S&OP process is also fundamentally different. The demand plan is not used to set a target stock level that supply must strive to reach. Also, it is not used to identify short-term service issues. This is because the order portfolio acts as both the short-to-medium-term expression of demand as well as the driver of short-term priorities. The factories are not as concerned with the accuracy of demand planning as they are with having visibility in the customer relationship management system, to see what order dates are due and from which customers. There is a need to have data that is correct and reliable, in a field where data management is notoriously difficult. “Because it is engineered to order, the factories may have three months, sometimes six months of backlog. So they have some visibility,” says the head of S&OP at a major industrial company. “And because the front end consults the factories for pricing, they can follow what we call hot tenders, so they have some view of what is coming after the backlog.” The S&OP process is more focused on the allocation of scarce resources on a global scale. It looks at common components or available capacity. Instead of most of the energy being invested into getting the forward projection right as well as short-term priorities, effort should be placed on ongoing orders and long-term potential activity. Lead time In project supply chains, another big challenge is determining the lead time commitment in the bid. The lead time is not constant; it is a function of the current load of projects on the factory network, which can be highly variable. This is different than make-to-stock, where typically there is a standard lead time to negotiate a promotional campaign, and there is less need for visibility into production loads and capability. The fact that the business model of project supply chains involves an understanding that the customer will wait for the product
As each project is different, the scenario analysis for determining the cost and risk associated with each project needs input all the way up the supply chain, including to vendors.” can create a disincentive to improve reactivity. The head of S&OP at a major industrial company explains: “We absolutely do not see it as a priority for competitive advantage to have more clarity and shorter lead times. I haven’t seen lead time in general high on the agenda of decision-makers.” “This can encourage siloed thinking,” the executive continues. “[Factories] typically have no visibility of their products. They measure their own on-time delivery, but
Obsolescence From the perspective of the factory, there may be an upside to anticipating production: aligning with the production of similar but unrelated projects. But this can create huge risks for a project supply chain. The size and complexity of the projects, along with the fact that they are often negotiated with public institutions, means that things can change, even after the order has been signed. If production is anticipated, the supply risks generate huge obsolete inventory risks. Given the inflated lead times, the chance of this occurring is higher than in make-to-stock supply chains, which are under constant pressure to be reactive. The head of S&OP at the industrial company adds: “In many instances, when there is government-type financing, the customer asks for something a little different and doesn’t get the government funding. Those things can happen, and depending on the robustness of our customer contracts, we may end up with finished goods that were engineered to order that the customer will never take and we will never invoice. “It depends on our practice of contract management. If you combine bad contract management with customer changes, then you may end up with obsolescence.” In a make-to-stock supply chain, obsolete inventory is usually the result of a decision to discontinue a product or a refusal to use alternate channels. In a project supply chain, there is likely no alternative if an order falls through after production has begun. This is yet another reason why communication along the chain to commercial actors is so critical. Many companies find the internal wrangling over inventory accountability to be draining and distracting. The high stakes of inventory obsolescence for project supply chains only amplifies this tension. The most important inventory key performance indicator is not the actual inventory value; it is level of obsolete inventory. The telecommunications S&OP manager says: “Inventory is of course a target, but is also maybe not the main concern. Our main concern is actually the excess and obsolescence.” In conclusion, the needs of make-to-stock and project supply chains are indeed distinct. Statistical forecasting, demand sensing and demand-driven material requirements planning are exciting innovations for the make-to-stock world, but are not suitable for project supply chains.
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R e p o rt
Shifting trends DHL Supply Chain explores the emerging trends in supply chain real estate and shifting distribution networks
Companies in the Gulf region and globally are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design, and operate their distribution networks. This has created a new landscape for supply chain real estate. Global and regional supply chains are evolving, as they adapt to the new realities of commerce and competition. While a healthier global economy fuels the demand for supply chain real estate, it is not the only driver. Four other forces are at work, and they are having a transformational effect on companies’ distribution centre (DC) networks. These are: the e-commerce revolution; globalisation and right-shoring; mergers and acquisitions; and technology innovation. In this landscape of change, the job of managing network real estate is a lot more complex.
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E-commerce revolution The explosion in e-commerce worldwide is revolutionising not just retail, but all industry sectors. Why? E-commerce has irrevocably changed customer expectations. They demand near-instant service and delivery, lightning fast order turnaround times, and perfect execution, all while having full visibility into the process. These high service expectations are having a ‘bleed-over’ effect in more traditional industry sectors like technology, consumer products, heavy industry, and life sciences. Companies of all kinds now face the same sets of service expectations as e-commerce retailers, putting tremendous pressure on supply chains to perform. If they don’t perform – deliver up to the minute as specified in their service level agreement – they are penalised by compliance fines. E-commerce carries another
ripple effect – it changes a lot of the companies’ last-mile delivery strategies. Globalisation and right shoring 25 years ago, manufacturing strategy revolved around outsourcing production to China and other low-cost labour centres. Supply chains became geographically extended, unwieldy, tremendously complex, and risky. All of that is changing. Global corporations are finding that manufacturing 8,000 miles away from their customers no longer makes sense in many cases. For a growing number of products, the risks in terms of cost, lead times, responsiveness, and customer service outweigh the benefits. Companies, as a result, are reengineering their production and supply networks, moving away from super long-distance supply chains to ‘globally local’ supply chains.
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This means sourcing and manufacturing closer to customer demand in a strategy referred to as right-shoring. Businesses see right-shoring as a means to realise powerful benefits, including reduced lead times, lower inventory costs, better service for customers, improved agility, faster recovery time after supply chain disruptions, reduced carbon footprint, and an improved bottom line. “Right-shoring gives us flexibility – the ability to customise product and orders closer to the customer, so we are not sitting on inventory that is not attached to orders,” says the supply chain director for one consumer packed goods (CPG) company. “However, we have to balance inventory savings against the fact that right-shoring usually involves higher piece prices due to higher labour costs. So we may decide to pay a little more per piece to gain speed, service consistency, and the ability to customise nearer the end of the order cycle.” Mergers and acquisitions Mergers and acquisitions (M&A) have a direct and significant impact on real estate strategy and operations. They force supply chains to blend and rationalise their physical networks, a complex process than can go on for years. The technology and life sciences/ healthcare sectors were particularly affected by M&A activity in the last two years. In technology, second quarter 2016 set a record for the most deals at or above $1bn. But that number was surpassed in the third quarter, according to consulting firm EY. Leading companies take an aggressive stance on blending, upgrading, and rationalising their real estate portfolios in order to drive M&A value. They view it as an opportunity to re-think their physical network, shedding facilities that don’t fit well into the new supply chain, and adding new facilities that support an efficient, merged supply chain. Technology innovation Technology has come of age. At a strategic level, thanks to big data, smart analytics, and new visibility tools, companies are no longer relegated to running their business by looking in the rear-view mirror, i.e., managing based on weeks or months-old information. Organisations can now get out ahead of their business, and direct their global operations to be far more predictive and proactive. These smart technologies affect companies’ distribution networks in two ways. First, they may change distribution centre (DC) location strategies to po-
sition inventory with more certainty, based on better demand analytics. Second, they accelerate the speed with which companies can respond to changes in demand, markets, and customer requirements. The real estate network must be able to flex and flux in tune with these dynamics. On a tactical level, technology is changing what goes on inside the four walls of the DC. Augmented reality, robotics, vision picking – these and other innovations support higher productivity and lower costs. As a result, more companies are interested in deploying these technologies in their DCs. Gone are the days of operating a static real estate portfolio and tweaking it every five to
seven years. Business is too dynamic and the stakes are too high. The fact is, in the past few years, the way companies manage their supply chain real estate portfolio has morphed from a tactical or operational concern, to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don’t just save money. They drive growth. Operating a distribution network to deliver on that promise requires robust real estate management capabilities, which range from site selection and lease management, to facilities operation. Partnering with an integrated 3PL, one that is expert in both operations management and real estate, can provide a powerful solution.
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Sup p lie r N e ws Konecranes delivers four reach stackers to S.A. Talke
Lift truck specialist, Konecranes, has delivered four SMV 4531 TC5 reach stackers to S.A. Talke, a joint venture between the German Talke Group and Saudi Sisco and Al-Jabr Groups. Talke is a logistics supplier to the petrochemical sector in Saudi Arabia’s Al-Jubail region, that is specialised in the handling, storage, and transportation of liquids and chemicals. The machines will be delivered by Konecranes distributor and service provider Al-Iman to S.A. Talke’s container marshalling yards, where they are expected to bring greater efficiency and reliability to the container and goods handling. The SMV 4531 TC5 reach stacker has the ability to lift up to 45 tonnes of weight, five containers high on the first row, and up to 16 tonnes, three rows deep. It is also equipped with load sensing hydraulics, alongside a powerful engine and strong frame and mast. Gerhard Strydom, logistic solutions manager at S.A. Talke, said: “We’ve worked with Al-Iman for many years, and rely on their guidance and knowledge to select the right equipment.
“Our existing Konecranes machines have proven that these machines are the right fit for us, and this order is simply another example of how well the partnership is working”. The SMV 4531 TC5 reach stackers also have one of the best cabins in the market with regards to space and visibility, and contain a number of smart features to increase productivity and safety. Markus Trefzer, technical manager for Al-Iman, noted: “As a team, we approach our customer’s from a solutionsbased perspective. We have great belief in the quality of the machines, and we also have many years’ experience in the region, so what we offer is unique. We hope to continue earning S.A. Talke’s trust and ongoing business with exceptional support and service.” Manos Athanasakis, regional sales manager at Konecranes Lift Trucks, added: “A deep understanding of what the customer need is essential for a successful delivery, and that is a truth both we and our distributors live by. We are very happy that S.A Talke have chosen to extend their Konecranes fleet to bring even more efficiency to their operations.”
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Proseal receives supplier award from Sainsbury
Heat sealing specialist Proseal has received a supplier award from Sainsbury’s for its work with DuPont, in running a series of ‘sealing masterclasses’ to help the retailer deal more effectively with complaints about seal failures. The classes were followed by a double-digit reduction in complaints. Sealing is the cause of the majority of Sainsbury’s packaging complaints, with typical issues including sealing breaches, sealing failures, and even imploding seals. Following an initial briefing from DuPont to the Sainsbury’s packaging team on the causes of sealing failures and how to avoid them, Sainsbury’s decided that its supply base would also hugely benefit from this knowledge. Sainsbury’s and DuPont therefore teamed up with Proseal, as a leading manufacturer of tray sealing equipment, to create a sealing masterclass. The class focused on two key aspects of sealing – polymer science and good heat seal practices. Sainsbury’s has described the positive impact that the masterclasses have had on sealing complaints as phenomenal. Debbie Parry, Sainsbury’s brand packaging technologist, explained: “As a business, double digit complaint reduction is something that we rarely see. The support that Proseal and DuPont have given us with these masterclasses has been very much appreciated.” Although not a direct supplier to Sainsbury’s, the work and achievement of the two companies were recognised by a special award at Sainsbury’s recent supplier awards. Tony Burgerss, Proseal’s head of sales and control systems, commented: “This was a total surprise but one that we were extremely proud to receive.” He added: “Sealing technology has advanced a great deal in recent years, and Proseal continues to be at the forefront of developments to ensure food manufacturers can achieve the consistent seal quality and reliability that their customers require. We have been delighted to be able to share our best practice knowledge and advice with Sainsbury’s supplier base.” www.cbnme.com
TVS Logistics targets $1bn revenues by 2020
In the wake of the opportunities post-GST implementation, TVS Logistics Services has announced its aggressive growth plans, targeting $1bn in revenues over the next three years from the Indian markets. The Indian multinational 3PL logistics service provider operates in nearly 14 countries globally. Going forward, TVS expects the overseas business to grow organically by 10-15%, while the India business is likely to grow by 35-40%. R Dinesh, managing director, TVS Logistics Services, said: “With our global revenues already crossing the $1bn mark, our focus now is firmly on Indian operations. We have been growing by CAGR of 30% over the last five years, and are now aiming for higher growth over the next three years, to achieve our target of $1bn in revenues from our local operations.” Automotive industry currently accounts for 35% of the total business of TVS Logistics. Going forward, the company says the sectors will grow significantly, and will be one of the core focus areas, and will continue to
contribute close to 30-35% in its overall business. R Shankar, CEO TVS Logistics Services who has been given the mandate of the overall India business, said: “We are totally geared up for this ambitious growth target. We will continue to differentiate and bring in operational synergies, to provide end-to-end solutions and value added services to our customers in India.” Shankar added: “We are working with both automotive and nonautomotive manufacturers to partner with them, to improve their supply chain management. Right from a supplier to consumption point, we will provide them with end to end solutions to their inbound and outbound supply chain. TVS Logistics is uniquely positioned to handle both the parts of the supply chain.” Five years ago, over 90% of the company’s revenues came from automotive sectors. However, the company has well diversified into 10 different industries, including FMCG, FMCD, technology, telecom, petrochemical, and the share of the automotive business has come down to 35%.
Restrata to supply 500 custom vehicles to Aramex UAE-headquartered Restrata, a situational awareness and telematics provider, has won a contract with logistics company Aramex to supply 500 vehicles with customised, portable in-vehicle monitoring devices. Shadi Abuhijleh, freight operations manager, Aramex said: “Through Restrata’s technology, we are able to have total asset visibility, a portable solution for leased subcontractor vehicles and operational efficiency.” Aramex installed Restrata fleet optimisation technology on 500 vehicles operating in the UAE and cross border. Implementation began in Q2 2017, and positive results have already been achieved. Abuhijleh added: “Restrata’s technology has exceeded our expectations, and we are now able to quickly install hardware on vehicles as they arrive to collect consignments, dynamically route vehicles, and engage with subcontracted drivers in real-time. We have seen substantial savings in operational costs, and are able to work much more efficiently with our subcontractors.” David Nicholls, vice president of situational awareness and telematics at Restrata, said: “We have secured a 36-month contract with Aramex to supply a customised, portable in-vehicle monitoring kit that will enable total visibility and monitoring in real-time, of their mobile delivery assets.” He added: “Restrata is delighted to work with such a prestigious company who have a heritage deeply rooted in innovation, consistently challenging themselves to do things smarter and more efficiently for their customers. Restrata shares that same drive to innovate and disrupt.” Fleet technologies such as vehicle telematics can dramatically help organisations overcome the challenges facing the logistics and transportation sector, including not only improving efficiency but also safety.
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Save t he dat e
The Month Ahead
The key exhibitions, conferences, and seminars coming up this month
October
4-5
October
12-14
Express Logistics Supply Chain Conclave Mumbai, India Express, Logistics & Supply Chain Conclave is a two day event, with its 11th edition to be held at the Taj Lands End, Mumbai. ELSC has developed a reputation as Asia’s largest gathering for logistics and supply chain management professionals. The event promotes different forums and conferences about end-to-end logistics, omni-channel supply chain, and auto supply chain or reverse logistics. Various latest technology aided material handling equipment and logistic supports will be displayed by the leading companies working in the supply chain sector. Notable attendees include companies like Hero MotoCorp, Kodak, Infosys, Dow Chemical, Amway India, amongst China International Logistics Fair Shenzen, China Jointly held by Shenzhen Municipal People’s Government, China (Shenzhen) International Logistics and Transportation Fair (CILF) is a renowned logistics and transport expo across Asia. Since its debut in 2006, CILF has been productively held for 11 successive years, and has earned a popular reputation. The fair is a professional and wide exchange platform for all players in logistics, transport, and relevant industries all over the world. CILF attracts numerous international well-known firms to exhibit and further promotes the international influence of China logistics industry. The 2017 edition of the fair is expected to receive about 1,600 exhibitors from more than 50 countries & 120,000 visitors from over 80 states and regions.
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Indonesia Transport, Supply Chain and Logistics (ITSCL)
October
10-12
October
24-25
Jakarta, Indonesia Indonesia Transport, Supply Chain and Logistics (ITSCL) is the only dedicated transport and logistics event in Indonesia, showcasing the government’s aspirations of efficient infrastructure, and helping it to achieve its objectives of the Blueprint of National Logistics System Development. ITCSL will bring government, international, and domestic participants of the complete supply chain and industry all together in one place, helping to increase efficiency and to reduce the cost of transport and logistics. Sections of the exhibition will include storage, cold chain logistics, ports and airport services, e-commerce logistics, materials handling equipment, and more. LogiSYM Malaysia 2017 Kuala Lumpur, Malaysia LogiSYM Malaysia acts a platform for mid to senior level shippers to hear from the leading solutions in and surrounding the logistics and supply chain industry. The structure of the symposium is such that delegates will have more interactivity with supply chain peers, allowing the development of ideas and for delegates to acquire actionable takeaways to integrate back at the office. Based on its unique format and presentations style, LogiSYM Malaysia 2017 will allow sponsors to reach out to targeted shippers, and engage them in exclusive, dedicated, and specialised tracks to ensure the message they want delivered is presented through the development of ideas in unique formats. www.cbnme.com