Logistics News ME - September 2015

BRAZIL BONANZA

CHEMICALS LOGISTICS HUB

CROWN CREST

Getting the big bite of Brand Brazil

Dow decides on Dubai as its chemicals hub

Crown Lift Trucks aim high

CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE

SEPTEMBER 2015

KHORFAKKAN CONTAINER TERMINAL TOUCHES HIGH-WATER MARK

2 | Logistics News ME | September 2015

Contents

Start 8 | News Scan: Roundup

46 | Modern Freight

of regional and international news

Company: Longestablished UAE LSP readies for presentday challenges

14 | Brazil Bonanza: Getting the big bite of Brand Brazil

48 | Materials

Handling Middle East 2015: The 8th edition of the region’s biggest show in its category is the biggest to date

24 | Logistics News

Middle East Summit: Meet the highpower advisory team empaneled to draw up a road map to this high-profile event

44 | Hong Kong

Hub: Examining the rise and rise of this ‘fragrant harbour’ as a logistics hub

features 26 | The News Suez Ca-

nal: The new $8.5 billion enlarged canal has been inaugurated amid much fanfare

50 | Asia Supply

Chain Insights: Global supply chains have evolved with time to reflect new dynamics and new complexities in an ever-changing world

14

28 | Kinetic Khorfakkan: Activity at the Khorfakkan Container Terminal surges amid the arrival of gigantic megaships

52 | Professional

Perspectives: Prakash ‘PK’ Menon discusses ‘multitasking’ as a to-besought talent

38 | Jumbo Group:

E-commerce and logistics of the top regional electronics’ retailer in the spotlight

56 | Floor Show:

28

40 | Tasneef:

UAE’s Maritime Classification body gets world-class with new alliances

43 | Greenfield Water

Project: UAE’s UTICO and Spain’s Cobra Group finalise waterdesalination project deal

44 | Chemicals

Logistics Hub: Dow Chemicals inks deal with DP World to make Jebel Ali Port its chemicals hub

38

Flowcrete takes to the floor with the lead in industrial flooring

59 | UPS Update:

World leader in express deliveries gets to grips with sustainability goals

60 | Crown Crest:

Crown Lift Trucks aim high

Logistics News ME | September 2015 | 3

4 | Logistics News ME | September 2015

Logistics News ME | September 2015 | 5

Editor’s Note COUNTDOWN TO A DOOMSDAY SCENARIO? The continuing downward spiral of oil prices, the recent haemorrhaging of international stock markets, the proliferation of global political hotspots, more and more regions in turmoil, the susceptibility of political regimes, the stand-off between nations; protectionism, skewed trade imbalances, trade disputes and geopolitics—to name a few factors, are steadily taking their toll on global economic stability, leaving economies vulnerable to the vagaries of increasingly anaemic world trade and commerce.

As a fall-out, the first casualty of the slump is generally the supply chain and logistics industry which worldwide has been struggling to maintain growth levels. These negative factors are taking their toll and stifling growth that does not bode well for the industry.

There is hope and a silver lining on the horizon though. Whilst some parts of the Middle East may be plagued by mayhem and racked by violence, it is not all gloom and doom for the UAE and the GCC. According to a recent Frost & Sullivan report, the UAE’s logistics industry, valued at $ 23.4 billion (6% of the country’s GDP) in 2013, is expected to grow to $ 27 billion in 2015 due to a surge in trade volumes and upward trend in local manufacturing.

Planned and allocated infrastructural spending in the GCC is projected to boost the logistics sector.

It is expected GCC’s logistics industry will be the major beneficiary of the planned, estimated $4.3 trillion infrastructure spending by 2020.

The run-up to the upcoming Dubai Expo 2020 and related project activities will also give this segment a much-needed heave in the UAE. Clearly, in the face of volatility, the logistics industry in the region as elsewhere in the world has come to define itself as reformist, resilient and ingenious and is known to reinvent itself with a slew of solutions that keeps the industry going. These include the introduction

of new technologies, new capabilities, newer product offerings, fresh investment and infusion of capital for expansion, mergers, acquisitions, even alliances and tie-ups.

With the recession and its aftermath still reverberating in people’s minds, memories have not gone away. As long as the threat of recession, real or perceived looms large, companies will do the right things and take the appropriate measures to stay afloat. They will repackage themselves and do what they can to maintain their competitive edge.

Governments, not to be outdone, are also in the lead in taking confidence-building measures. The newly inaugurated $8.5 billion enlarged and lengthened new Suez Canal, initiated by the Government of Egypt is a case in point. This gigantic logistics project alone is expected to net the Egyptian Government revenues of $12.5 billion annually.

Similarly, other big-ticket mega projects announced by the GCC governments will also spur the logistics industry with the much-needed lifeline and boost whilst bringing returns to investors.

We are now into September and we can see perceptible cranking of the logistics juggernaut after the customary hiatus that befalls almost every industry segment in the listless, summer months.

There is motion and the coming months will no doubt be very busy as our team braces for the hectic season ahead.

Meanwhile, keep your comments coming. We welcome your views, suggestions, expectations and even censure. Do take time to write to us, it’s always a pleasure to hear from you.

Malcolm Dias Editor malcolm@bncpublishing.net

Editor Malcolm Dias Malcolm@bncpublishing.net

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

Art Director Aaron Sutton Aaron@bncpublishing.net

Managing Director Walid Zok Walid@bncpublishing.net

Group Sales Manager Jayant Dey Jayant@bncpublishing.net

CONTRIBUTORS

Director Rabih Najm Rabih@bncpublishing.net

Marketing Mark Anthony Monzon Mark@bncpublishing.net

Director Wissam Younane Wissam@bncpublishing.net

Group Editor Melanie Mingas Melanie@bncpublishing.net

Mark Millar, Joy Thattil, Prakash PK Menon

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Logistics News ME | September 2015 | 7

NEWS

IN THE NEWS Gulftainer transports largest LPG cargo across Iraq

G

ulftainer, the UAE’s privately owned independent Terminal Management and Logistics Company, recently welcomed two of Iraq’s largest LPG storage vessels at its Umm Qasr Logistics Centre (UQLC) at the Port of Umm Qasr in Basra. The two cylindrical LPG storage tanks each weigh over 250 tonnes and measure 50m in length – more than half the length of a football pitch. This is the largest cargo that has ever been transported such a long distance within Iraq.

Opened last year as part of a $150 million investment programme in the country by Gulftainer, the logistics centre is strategically connected to Umm Qasr Port by a bonded access road, allowing movement from Gulftainer’s Iraq Container Terminal (ICT) facility and the North Port, directly to the UQLC. UQLC was chosen by the cargo 8 | Logistics News ME | September 2015

manufacturers to store the tanks in a secure and safe environment while preparing the necessary customs clearance. Close liaison between the client, consignee, and the heavy lift logistics specialist was required and Gulftainer’s full range of capabilities were demonstrated in the successful handling of these tanks in UQLC, including secure storage and reloading to the specialist transport at the time of exit.

Bill Chalmers, Iraq general manager at Gulftainer, commented: “We are proud of our competencies to support the logistics of the country’s largest LPG cargo. The Umm Qasr Logistics Centre has been specifically designed to support this type of project cargo, including this type of LPG tank.”

Arrangements for clearance were organised and carried out at the UQLC,

where customs officials have an on-site administrative office. UQLC is a 750,000m2 secure facility located on the main Basra highway adjacent to the North Port in Umm Qasr, consisting of warehouses, cold stores, offices, laydown area, providing customers and their clients with the assurance that their product is secure. A 100-man camp facility is also nearing completion.

In addition to its activities at Umm Qasr in Iraq, Gulftainer’s current portfolio covers UAE operations in Khorfakkan Port and Port Khalid in Sharjah, Recife in Brazil, Jeddah and Jubail in Saudi Arabia and in the USA, where the company recently began operations at the Canaveral Cargo Terminal in Florida. Gulftainer is also expecting to commence operations in Tripoli Port in Lebanon in September 2015.

350,000sqft

NEWS

The size of Tristar’s new chemical warehouse in Jebel Ali

Tristar to invest $20m Hanjin links in new chemical SOHAR with main warehouse in JAFZA

Asian ports

The upcoming $20.45m Tristar chemical warehouse and bagging plant will be the first silo and bagging facility of its kind in the Jebel Ali Free Zone (JAFZA). This was recently announced by Tristar Group CEO Eugene Mayne at the ground-breaking ceremony with Skeberis Plastics managing director Reinhard Fischer and JAFZA officials led

by Group CFO Asim Al Abbasi and VP, customer relations and development, Omar Bin Hendi.

The 350,000 sq.ft. chemical warehouse is a joint project between UAE-based Tristar and Skeberis Plastics, headquartered in Greece and Belgium with a regional headquarter in UAE. The facility is designed to handle a throughput of 250,000 tons bulk material of plastic granules per annum with silos and a racking capacity of more than 15,000 pallet positions for packed chemical and plastic granules products. Green building technology and bestin-class safety features are built into the design to ensure safe handling and storage of all types of liquid and solid chemicals.

Once fully operational in mid-2016, the one-stop shop for polymers and liquid logistics will offer better time to market delivery because of the location’s direct access to Jebel Ali Port and Maktoum International Airport, and in the future to Etihad Railways.

“JAFZA was our first choice location due to flexibility in the logistics chain with transportation and freight readily available and because of the ability to leverage this multiplatform logistics facility to support our company’s other logistics service offerings. Our core expertise lies in handling.

Hydro-carbons, lubricants, chemicals and liquid gases,” disclosed Mayne.

Skeberis will provide technical support for the management and day to day operation of the bagging operations. “The operating partnership between Tristar and Skeberis is another milestone for the chemical and petrochemical industry as the new facility offers unique opportunities for optimizing the supply chain for producer and customer,” pointed out Fischer.

Sohar Port and Freezone celebrated the addition of yet another global shipping line to its growing roster of direct calls. The Port recently held a special ceremony to welcome the arrival of the container ship MV Hanjin Hamburg into the Port. The new 8,600 TEU service from Hanjin, one of the world’s top ten shipping lines, will directly link Sohar to the Far East and is a significant addition in terms of direct connectivity for Sohar.

HE Dr. Ahmed Mohammed Salem Al-Futaisi, the Sultanate’s Minister of Transport and Communications, representatives of Hanjin Shipping, as well as executives from Oman International Container Terminal (OICT) and Sohar Port and Freezone, were on the quayside to welcome the arrival of the South Korean container vessel.

The inauguration ceremony celebrated the continued and successful growth of the port, where handling capacity at the state-of-the-art container terminal, operated by OICT, has doubled over the past year. With the relocation of all commercial traffic from Muscat to Sohar in 2014, and the newly expanded Terminal C now fully operational, Sohar is now equipped to manage 1.5 million TEUs per year. Hanjin is the second major shipping line to join SOHAR in the last three months after the global line Evergreen in May 2015.

The new Hanjin service will facilitate direct links to include South Korea, China, Malaysia, and Singapore. SOHAR chief executive Andre Toet remarked: “The growth, in both size and efficiency at OICT has led to more new lines and, most importantly, more direct connections, thereby beefing up our supplychain.”

Chief executive of OICT, Albert Pang, summed up: “This service is evidence of shipping lines’ confidence in OICT’s growing prominence as Oman’s gateway for international trade in addition to its position as a hub for container carrier connections.”

Logistics News ME | September 2015 | 9

NEWS

40,000sqm Crane Worldwide Logistics opens new office in Abu Dhabi

Crane Worldwide celebrated the recent opening of their new Abu Dhabi office located in Prestige Tower, Mohamed Bin Zayed City.

“It is obvious that Abu Dhabi is expanding economically and that there is a lot of potential going forward for Crane Worldwide Logistics. The opportunity is now available for us to further support our customers in the region,” commented Michael J. Karam, UAE country manager.

Crane Worldwide Logistics is a fullservice air, ocean, customs brokerage and logistics company operating in 110 locations in 24 countries. The Abu Dhabi office has now expanded Crane Worldwide’s presence in the Middle East with the Dubai office acting as the Middle Eastern hub for Oman, Saudi Arabia and Qatar as well as emerging markets such as Iraq and Egypt.

Crane Worldwide logistics, in addition to operating freight forwarding services, has a new facility of 40,000 square meters of high bay storage as well as 18,000 sqm of mezzanine rework or shelf storage located in Dubai World Central’s Logistics City.

10 | Logistics News ME | September 2015

The amount of High Bay Storage at Crane Worldwide Logistics’ new facility located in Dubai World Central’s Logistics City

Swisslog to showcase its premier technologies at MHME

Swisslog will presents its latest intralogistics technologies at the 8th Materials Handling Middle East (MHME) exhibition, in Dubai in mid-September 2015. Visitors will get their first opportunity to see a ground-breaking system, which integrates robotic picking with Swisslog’s unique automated small part storage and picking system AutoStore.

The demonstration is indicative of Swisslog’s recent retail success and remarkable e-commerce credentials. Key benefits of the system include picking accuracy, more flexible and faster delivery times as well as independency of labour.

The latest innovations in the integration of robotics and warehouse picking processes has gained Swisslog widespread recognition. Even just a few years ago, the notion of

humans and robots working closely side-byside to achieve better results, was nothing but a futuristic idea. Safety was a key concern, and public acceptance could not be taken for granted.

Today there is a growing mindset that the development of HumanRobot-Integration technology will help mankind, not overtake it, and Swisslog’s newly developed Automated Item Pick workstation, KUKA, has made this vision a reality.

“We are very excited about bringing our new Automated Item Pick concept and the incredibly popular AutoStore solution to the show,” stated Frédéric Zielinski, General Manager of Swisslog Middle East who earlier this year oversaw the establishment of a new

Swisslog Dubai office.

“At our booth we will be presenting how automation can support expanding businesses, as well as providing a 3D view of Swisslog’s intralogistics offering via a unique Oculus virtual reality presentation,” he added.

Swisslog’s portfolio consists of different key technologies, such as conveyor systems, ASRS (Automated Support Requirements System), AGVs (Automated Guided Vehicles), monorails, and software to help businesses maximize their intralogistics potential. The company hopes to develop the market yet further, with its range of modular solution portfolios that provide order fulfillment, split case picking, returns management and other common warehouse processes.

NEWS

29.2%

The percentage increase in H1-2015 in collections via Dubai Trade’s secure payment gateway Rosoom over H1-2014

Dubai Trade records impressive growth in H1 2015 Consistent with the rapid growth of Dubai’s economy, recent statistics released by Dubai Trade, the online gateway for trade and logistics services in Dubai show promising growth figures in H1 2015, as compared to the same period last year.

The first half of 2015 witnessed 12.5% growth in new companies registered with Dubai Trade with 9,317 new companies on board.

This led to an 8.7% growth in the number of transactions to 9.7 million.

The increase in the number of new companies and online transactions was a result of Dubai Trade’s strategic goal to become a single window for trade in Dubai and to escalate customer adoption, by offering a streamlined trade facilitation process.

Similarly, Rosoom, the secure online payment gateway of Dubai Trade, recorded in the first six months of 2015, an increase of 29.2% in the total collections. This surpassed $155.3 million drawn from

over half million online payment transactions using multiple payment methods including Credit Cards, E-Dirham and Direct Debit.

Commenting on Dubai Trade’s achievements, Eng. Mahmood Al Bastaki, CEO, Dubai Trade, affirmed: “The customer is priority whenever we plan to enhance or introduce any service and prioritise delivering know-how and business experience through our Training Centre. We have recently initiated an internal

‘Innovation and Idea Hub’ for staff to share thoughts and ideas on how to reach our strategic goals.”

At the same time, a new cargo booking service that provides freight forwarders and exporters enhanced cargo booking capabilities for sea shipments was revealed.

It allows easy integration of Freight Forwarders/ Exporters systems with the Shipping Lines system enabling them to request, amend or cancel a booking without the need to login to multiple platforms.

www.hellmann.net Logistics News ME | September 2015 | 11

NEWS

240,000 tons

The production capacity of steel pipes for the new Al Gharbia’s factory in KIZAD when commissioned

Al Gharbia Pipe Company Panama City now invests $300m in KIZAD on Emirates’ destination map

Abu Dhabi Ports has signed a standard Musataha agreement (SMA) with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (KIZAD).

The modern facility will cater to the region’s oil and gas industry, manufacturing high quality steel pipes.

The SMA will see Al Gharbia Pipe Company invest a projected total of $300m, with their new facility requiring a plot size of 200,000 square metres. Al Gharbia Pipe Company, a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan’s leading steel firms, JFE Steel and Marubeni-Itochu Steel expects the facility to be completed by March 2018. The plant

12 | Logistics News ME | September 2015

will employ over 370 staff and produce up to 240,000 tons of steel pipe a year.

“The exceptional infrastructure and transportation network offered by Kizad will make a significant difference to Al Gharbia’s business operations,” said Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

Eng. Jamal Salem Al Dhaheri, Acting CEO, Senaat, predicted the agreement will provide for significant supply chain efficiencies Takafumi Nishiuma, VP, JFE Steel stated: “With the ongoing growth of the oil and gas sector in the region, the demand for high-quality steel pipes is expected to expand steadily. We see huge opportunities in this market and in particular in the UAE.”

Emirates recently announced its plans to launch services to Panama City, beginning 1 February, 2016. The new service will be the longest non-stop flight in the world at 17 hours and 35 minutes in the West-bound direction, and will be Emirates’ first gateway destination in Central America.

Service to Panama City, Panama’s capital and largest city by population, will commence with a daily flight operated by a Boeing 777-200LR aircraft. The aircraft can carry up to 15 tonnes of cargo. Key imports to the country include pharmaceuticals, machinery products, iron/steel rods, and electronics. Service to Panama City will operate through Tocumen International Airport (PTY).

Ideally located between North and South America, as well as the Atlantic and Pacific Oceans, Panama City has developed an unrivalled transportation and communication network. It operates two of the busiest ports in Latin America, including the Colon Free Trade Zone - the world’s second largest free trade zone. Additionally, the ongoing expansion of the Panama Canal has helped contribute to Panama’s economic growth in recent years.

“This new direct flight between Dubai and Panama City will connect Latin America with the Middle East, Asia and Africa,” explained HE Eduardo Fonseca Ward, Consul General of the Republic of Panama in Dubai.

NEWS

172%

Gulf Navigation’s net profit growth in the first half of 2015

Gulf Navigation, NAT reach accord to August 20, 2015, subject to approval from the Department of Economic Development and the Securities and Commodities Authority.

Gulfnav is currently engaged in negotiations with other creditors to reach mutually satisfactory outcomes.

Hazza Baker Al Qahtani, founder and chairperson of Gulf Navigation Holding was appreciative of the full support given by shareholders, investors and government regulators in its efforts to resolve pending creditor concerns. “They were all instrumental to our successful negotiations with Nordic American Tankers and will definitely be crucial to similar ongoing talks with other creditors,” he stated.

LOGISTIC SYSTEMS.

Unitechnik FZE Dubai Airport Freezone, UAE

Gulf Navigation Holding (Gulfnav), the Dubaibased shipping company, has signed a settlement agreement with one of its major creditors, Nordic American Tankers Limited, Bermuda (NAT). The announcement was made in a formal statement delivered by Gulfnav to the Dubai Financial Market (DFM). The settlement follows the company’s recent report of a net profit growth of 172 per cent to $2.74 million in the first half of 2015.

Under the terms of the agreement with Nordic American Tankers, Gulfnav will issue Mandatory Convertible Bonds (MCBs) with a face value of $10.17 million as full and final settlement for claims made by NAT. MCBs will be issued prior

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

Details and references under www.unitechnik.com

Logistics News ME | September 2015 | 13

The Middle Ea st continues to be a top destin food products ation for Brazi and collective lian meat and ly accounts for a the Brazilian p round a whop oultry exports ping 34 % of globally. South and economy America’s big is also the wo gest country rld’s largest e xporter of chic Malcolm Dias ken. reports from S ao Paolo

14 | Logistics News ME | September 2015

Logistics News ME | September 2015 | 15

SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

s the largest country on the South American continent, Brazil can best be described in superlative terms. At 8.5 million sqkm. and with 206 million people, Brazil is the world’s fifth largest country both by area and population. Its huge expanse of rich, fertile, arable land, bio-diversity, abundant natural resources and modern mechanised farm technology makes the country an agricultural superpower.

Above all, Brazil is a driver of economic growth. It has huge raw materials resources, is fully self-supporting in terms of energy, and young and buzzing population with an average age of only 27 years. Together with India, Russia and China as part of the BRICS nations, Brazil is among the top economies worldwide.

The exponential growth of Brazils’ economy in recent years has been remarkable and the country has swiftly catapulted to the number seven spot among the world’s top economies (IMF ratings). The Brazilian agribusiness (agricultural and livestock related) is enormous and is a very significant component of the nation’s economy.

The progress and contribution of the Brazilian meat industry is inextricably linked to and an integral part of the development of the national economy. Both in terms of production and export, the country’s agribusiness has been in the forefront and in the vanguard of the country’s economic development and ranks among the top three slots globally in every sector of the agribusinesses . Brazil for example is the third biggest producer of chicken and the largest exporter in the world; it is both the fourth largest producer and exporter of pork and both the second largest producer and exporter of beef globally.

Logistics News Middle East was especially invited to the biennial 24th edition of the Brazilian International Poultry and Hog Show 2015, better known by its Portuguese acronym SIAVS (Salao Internacional de Avicultura e Suinocultura) in Parque Anhembi in Sao Paolo, Brazil’s biggest and most populous city and thriving commercial capital from 28 to 30 July. The exhibition, organised by the Brazilian Associa-

A

16 | Logistics News ME | September 2015

IN NUMBERS More than

12,000

tion of Animal Protein tional and national visiAssociacao Brasileira de tors for the three-day Proteina Animal—ABPA duration at the Parque in partnership with Anhembi. Visitors came ApexBrasil, the Brazilian from across Brazil and Visitors attended Federal Trade and Investfrom another 50 countries SIAVS 2015 ment Promotion Agency, is from the Americas, Europe, the largest official event of its Asia and Africa. These included kind for this industry sector. high-ranking officials including CEOs SIAVS 2015 showcased the evolution of from companies engaged in producing and the Brazilian poultry and meat industry up exporting agro-industrial products, comclose and personal. Brazil is the world’s panies producing agricultural equipment largest exporter of chicken. The poultry inas well as professionals including technidustry employing 3.6 million and accountcians, producers, purchase managers, reing for 8.86% of the agribusiness is clearly searchers, and others involved in the food a mega industry with an estimated producproduction and distribution business. tion of 12.69 million tonnes with a proPresent also were over 100 leading exduction value of $17.66 billion (2014) and hibiting companies involved in the producexports of 4.09 tonnes valued at $8.5 biltion, processing and export of meat and lion. Brazilian poultry is exported to over food products. Also participating were 150 countries companies providing support in equipSIAVS 2015 attracted a record number ment, biological input, pharmaceutical and of visitors and attendees promising leads bio-chemical companies and others that and business-generating opportunities. are an integral part of the production and The event attracted over 12,000 internadistribution chain.

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SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

There was also a heavy turnout from the political establishment as evident by the presence of two Federal Ministers, five state governors from the Southern and South-Eastern states comprising Parana, Santa Catarina, Rio Grande do Sul, Sao Paolo, Mato Grosso do Sul and Minas Gerais. —the major poultry producing region and over 1,500 state and federal legislators and parliamentarians.

“The recipe for the success is innovation. We create pioneering initiatives and consolidate partnerships that made this the most important poultry and hog event in the country”, affirmed Francisco Turra, executive president of ABPA. According to Turra, initiatives in partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) and one-to-one meetings, keynote addresses, workshops, scientific sessions, seminars, presentations, roundtables and panel discussions comprising top CEOs of very prominent companies and industry heavyweights such as Pedro Faria from BRF; Wesley Battista of JBS and Mario Lanznaster from Aurora Alimentos to name a few, provided weightage and gravitas to the Conference-Congress.

SIAVS also served as a political meeting for the sector in 2015 and counted on the presence of the governors of São Paulo, Geraldo Alckmin, of Paraná, Beto Richa, of Santa Catarina, Raimundo Colombo, of Mato Grosso do Sul, Reinaldo Azambuja, and of Goiás, Marconi Perillo, in addition to the Minister of Agriculture, Livestock and Supply, Kátia Abreu, and the Minister of the Secretariat of Ports, Edinho Araújo.

“Our sector showed that, contrary to the national economic scenario, we are still growing, investing, fomenting business and stimulating the technical development of poultry and hog industries”, explained Ricardo Santin, vice-president for poultry at ABPA. In the congress rooms, 1,500 spectators took part in debates and conferences that brought 76 speakers to the event from European countries and from countries in the Americas. “Full rooms at the conference venue implies we have accomplished our mission. We have invested heavily in bringing specialists and with this number of panelists we confirm our status as the country’s biggest technical and economic poultry and hog breeding event in Brazil” explained Ariel Mendes, production director of ABPA and Coordinator of Programming and Seminars.

18 | Logistics News ME | September 2015

According to José Perboyre, finance and administrative director of ABPA and coordinator of the SIAVS event, engagement by partners from the most varied segments and associated entities, the media sector, government organisations and others played a pivotal role in the success of the event.

The largest and most important gathering of the sector, SIAVS 2015 received representatives of various segments – from

“The recipe for the success is innovation. We create pioneering initiatives and consolidate partnerships that made this the most important poultry event in the country”

SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

CEOs to integrated producers associated to ABPA, inputs and equipment suppliers – as well as purchasing staff, politicians, technicians, researchers, consultants, students of different areas, economists, leaders of state-level and institutional organizations.

SIAVS 2015 featured an exhibition area of over 10,000 m², with the participation of companies in the poultry, egg and pork business, genetics, equipment, input suppliers, logistics, laboratories, certification companies, among others in the production chain. In this sense, the Show will promote the ideal place for direct interaction with clients through the exhibition and also from activities that will bring buyers and integrated producers.

THE LOWDOWN ON BRAZIL’S BLOOMING POULTRY INDUSTRY Logistics News Middle East met exclusively on the sidelines of SIAVS 2015 with Ricardo Joao Santin, the affable and engaging vice president, ABPA-Poultry and the consummate industry insider. “The Middle East is very important for Brazilian poultry

exports. Our exports totalled $ 2.59 billion in 2014, including chicken meat, turkey meat, eggs, genetics and fertile eggs,” he remarked in acknowledgment of the region as a premier export destination for the industry.

“It is our main destination of chicken meat and egg and egg products. It accounts for 34% of our chicken meat exports, 75% for eggs and egg products, 29% for fertile egg and 4% for turkey meat,” he added. Furthermore, 13,800 tons of processed chicken meat with a market value of $38 million was also exported to the region in 2014. Around 68% of chicken production is for domestic consumption and 32% for exports, Santin disclosed.

Santin was also emphasised the strict adherence to Halal standards in line with the religious and cultural sensitivities of the region. “Brazil has achieved a deserved position of honor in Halal chicken production owing to its quality and professionalism in growing, slaughtering and processing the birds. The birds are fed a corn and soy-based diet free of the impurities listed in Islamic jurisprudence, they are slaugh-

SIAVS 2015 • More than 12,000 visitors • About 50 countries represented at the event • 1500 visiting congressmen • More than 100 exhibitors representing the crème de la crème of the Brazilian poultry exporting industry • Major political event for the sector with the presence of five state governors, two federal ministers and dozens of bureaucrats and parliamentarians.

The dates for the next edition are already confirmed. ABPA has announced that SIAVS 2017, which will be held on August 29 to 31, 2015, at the same venue, the Anhembi Parque, in São Paulo (SP).

SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

(L-R) Abilio Diniz (chairman of BRF); Leomar Somensi (member of ABPA board), Marcos Montes (congressman and President of FPA - Parliamentary Agricultural Front), Beto Richa (Paraná governor), Katia Abreu (minister of Agriculture), Francisco Turra (executive president of ABPA), Geraldo Alckmin (São Paulo governor), Edinho Araujo (minister of Communication), Marconi Perillo (Goiás governor), Reinaldo Azambuja (Mato Grosso do Sul governor), Jeronimo Goergen (congressman), José Carlos Zanchetta (member of ABPA board) and Mário Lanznaster (CEO of Aurora Alimentos).

tered within specific weight standards, without the use of artificial products. Brazilian producers demonstrate a correct interpretation by producing foods that fully respect the Halal ritual. Halal producing certification in Brazil is conferred by independent certifying bodies or by the governments of the importing countries themselves,” he stated.

Hygiene aspects related to meat processing and packaging are also firmly followed. Santin affirmed that the Brazilian poultry industry and farms comply with stringent health protocols, in a highly technical environment, within standards established by the Codex Alimentarius (FAO) and with total compliance with standards of animal welfare.

Among these processes, there are complex and deJobs created by the tailed programs focused on Santin also gave an Brazilian Poultry preserving quality and health, overview of the logisindustry such as the National Residues tical exercise of transand Contaminants Control Proportation, storage and gram (PNCRC), which assesses selfoverseas export. “From the control adopted by poultry industries; slaughterhouse to the port, 90 % of the Hazard Analysis and Critical Control products are transported mainly by road Points (HACCP), which adopts preventive using refrigerated trucks. During the measures and eliminates any risk to the transportation process, the temperature is consumer; the Sanitation Standard Operatcontrolled by a thermostat and stays ing Procedures (SSOP); the Standard Oparound -18°C. Arriving at the port, the erating Procedure (SOP) and Good Manureefers are forwarded to the storage area, facturing Practices (GMP) noted Santin. which can be their own or outsourced, be-

IN NUMBERS

3.56M

20 | Logistics News ME | September 2015

fore the shipping companies take over,” he commented.

According to Santin, poultry and meat exports are shipped out mainly through the Port of Santos, Sao Paolo’s commercial port and the main gateway to the eponymously named state; the Port of Itajai in Santa Catarina state; Paranagua in Parana state and Rio Grande in Rio Grande do Sul state, constituting the quartet of Southern states which account for bulk of the chicken production in the country. On an average it takes between 25 to 30 days for con-

SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

LARGEST CHICKEN MEAT EXPORTERS (MILLION TONS)

5

5

4

4

3

3

2

2

1

1

0

0

Brazil

USA

EU

Thailand

LARGEST CHICKEN MEAT IMPORTERS (000s TONS)

10001,000 800 800 600 600 400 400 200 200 0

0

Japan

Saudi Arabia

Iraq

tainers to arrive in the Middle East.

“Malaysia, Myanmar, Indonesia, Nigeria and Senegal,” are among the emerging and new markets for Brazilian poultry-meat exporters across the globe revealed Santin in response to another question.

How does the Brazilian poultry industry allay ecological concerns from environmentalists and conservationists? “Poultryraising in Brazil stands out for its deep respect for the environment: This is a concern shared by the entire production chain, working to expand the industry, but

Mexico

EU

Russia

always within rules that guide sustainable production,” observed Santin.

One good example is a comparison between the environmental impact of poultry farming in Brazil and in the United Kingdom. According to DEFRA (the Department for the Environment, Food and Rural Affairs), energy consumption and greenhouse gas (GHG) emissions in Brazil are 25% and 17% lower, respectively, when compared to Britain. The main reasons are: feed produced in Brazil is easily available, which reduces transportation costs; low

energy consumption for ventilation and heating the poultry houses, owing to Brazil’s climate; and a simplified production structure, Santin pointed out.

Brazil’s sustainable poultry industry, which is concentrated in the southern, mid-western and south-eastern regions of Brazil, is strategically based on the preservation of the Amazon Biome. Furthermore, the industry has invested in such environmental areas as participation in projects under the United Nations Framework Convention on Climate Change to help reduce greenhouse gas emissions; the planting of eucalyptus and pine for reforestation and future use as a source of energy; measures for water treatment, the protection of springs, and reduction of consumption; the use of litter to produce biogas; the use of culled chicken as organic fertilizer; and chicken fat to produce biodiesel.

“Although there have never been precedents and there have never been incidents of avian influenza, the Brazilian poultry industry is fully equipped to avert incidences of this nature,” assured Santin.

“Despite never having had a single case of the disease, Brazil introduced its National Plan for the Prevention of Avian Influenza and for the Control and Prevention of Newcastle Disease in 2006, modernizing laboratories, setting up sanitary barriers and providing training,” underscored Santin.

Slaughterhouses inspected by the Federal Inspection Service have international quality certificates and processes. Brazilian slaughterhouses have international certification such as that of Global G.A.P. (Good Agricultural Practices), ISO (International Organisation for Standardisation), BRC (British Retail Council), and comply with quality processes that are recognised and used throughout the world, such as HACCP (Hazard Analysis and Critical Control Points), GMP (Good Manufacturing Practices), SSOP (Sanitation Standard Operating Procedures), and others.

Brazil also cooperated with OIE in introducing the pilot compartmentalisation project, coordinated by the Ministry of Agriculture, Livestock and Food Supply. Unlike regionalization, which normally involves an entire State, compartmentalization concentrates on one company and its entire production process, over which it must keep strict control of hygiene, traceability and critical control points in virtually all Logistics News ME | September 2015 | 21

SIAVS 2015 CONGRESS AND CONVENTION: SAO PAOLO, BRAZIL

The plenary session of SIAVS 2015

“It is our main destination of chicken meat and egg and egg products. It accounts for 34% of our chicken meat exports, 75% for eggs and egg products, 29% for fertile egg and 4% for turkey meat” Ricardo Joao Santin, vice presidentpoultry, ABPA stages. Even if there is a health problem in some regions of the country, the compartmentalized company will be able to maintain exports because it complies with all the guidelines of the program.

Santin is keen to keep an impeccable and unblemished legacy for Brazilian poultry across the globe. As the world›s largest exporter and one of the largest producers, the Brazilian poultry sector has developed over these past decades an extensive technical knowledge and management that has allowed the country to make leaps in productivity, quality and commercial development.

“Strong investment in research and technology have placed the country at the forefront of the scientific sector. This is the legacy that our industry wants to leave for the world: knowledge and technology with the aim of helping the food security of nations with the most varied consumption profiles. We assume this important responsibility and it is with this focus we have worked tirelessly,” concluded Santin.

22 | Logistics News ME | September 2015

Ricardo Joao Santin, vice president - poultry, ABPA

DUBAI CUSTOMS

SUCCESS FOR DUBAI CUSTOMS’ SMART REFUND SYSTEM Ghaneema Ibrahim, director of the refund department, Dubai Customs writes about the new smart Claim and Refund System

‘

Innovating to stay relevant’ has always been a highly-cherished motto of Dubai Customs. In its ongoing quest towards the leading Customs Administration in the world supporting legitimate trade, Dubai Customs has never ceased, and will never cease, developing and reinventing to live up to that vision.

It therefore continues developing topnotch customs procedures and systems to deliver user-friendly smart services that are both cost-efficient and time saving. The latest smart refund system is not an exception.

Launched recently to support the institution’s smart transformation strategy, the new smart Claim and Refund System was developed for the purpose of regulating refund procedures of all cash and bank guarantees, including the deposits paid as security for the goods imported under a duty-suspended case.

The main objective behind the introduction of the new system is to identify revenue leakage in the refunds given by Dubai Customs, as well as to develop and deliver People, Process and Technology (PPT) solutions.

The system also is meant to help Dubai Customs calculate refunds in a more accurate and simplified manner, thereby reducing revenue leakage and minimising the refund delivery timeline.

ing of documents submission status, facility to request time validity extension for exports, facility to track the status of claims, automated email service to inform customers on the status of claims, end-to-end claim processing including financial settlement, as well as mobile-based claim submission and claim tracking service.

TIMELY, ZERO-RISK REFUND PROCESS The deployment of the smart Claim and Refund system has drastically reduced refund time. Now only few claims requiring further documentary or physical checks do not receive immediate approval. It is clear that a reduction in clearance times and paperwork has been achieved, but perhaps more importantly, the system has encouraged data transfer through the online submission, with multiple usage in terms of trade, risk analysis and forecasting.

The automated refund process can be consistently applied to all imports and exports, and is significantly faster and more accurate, with capacity to handle 1.8m transactions per year.

GHANEEMA IBRAHIM

CHALLENGING TASK The implementation of the new system tices that provide refund officers with was not an easy task; the team the necessary information and had to face the traditional tools to address risks, while challenges to balance conensuring compliance venience of doing busithroughout the refund ness against enforcing process. strict compliance.

It supports various We had to overcome functionalities including PPT weaknesses at all 24/7 online claim sublevels. The system is an mission, bureau submisrefund requests intelligence-enabled risk sion facility, centralised management framework claim processing unit, aulodged through the with systematic application tomated upfront validation system in H1 of refund procedures and pracduring claim submission, track-

QUICK FACT

628,455

24 | Logistics News ME | September 2015

MAJOR BENEFITS For importer/exporter: Faster refund times, a more transparent process, a more predictable process and less red-tape.

For Customs: Improved staff productivity through the upgraded infrastructure, increased Customs revenue, a more structured and controlled working environment, enhanced professionalism, and improved interdepartment coordination.

Commercial banks: More customers and increased funds passing through bank operations.

Government: Substantial increase in government revenue, the ability to demonstrate best practice in the region, and promote free and fair trade.

Economy: Improved transparency and governance in Customs and cross-border movements.

ADVISORY PANEL

TOMORROW’S WORLD: THE LOGISTICS SECTOR TO 2018

T

he countdown has commenced for the Logistics News ME conference: “Tomorrow’s World: The Logistics sector to 2018”, to be held in Q4-2015.

The event will examine the factors set to influence the regional logistics industry to 2018, from technology to geopolitical relations for an audience of high-powered, senior officials, professionals and practitioners constituting a who’s who of movers and shakers from a wide cross-section of the regional logistics and supply chain industry.

The industry today faces a challenging time when global markets are under duress and stress amid negative economic growth rates, plunging oil prices, stock market slides, prolonged recession and industrial, social and political problems worldwide.

The Tomorrow’s World summit 2015 will examine the volatility, changing trends, new emerging trends, new opportunities and latent potential following the rapidly transforming regional logistics landscape, much like the region’s shifting sands.

The agenda has been devised under the mindful guidance of Logistics News’s prestigious advisory panel who well-regarded by the industry and hold an impressive track record (see box) and in addition to a number of high profile keynotes, will cover the following topics: IRAN: THE NEW FRONTIER Following the lifting of sanctions on Iran, this session will examine the potential impact a new logistics market could have on existing GCC industries, while asking if a free-to-trade Iran will help or hinder the GCC. MULTI-MODAL TRANSPORT AND THE ROLE OF RAIL An analytical appraisal of the different transport modes the logistics industry is dependent upon and the pros and cons of each.

EXAMINING RE-EXPORT REGULATIONS A discussion on re-export legislation pan-GCC, areas for improvement and industry concerns HAZ-MAT HANDLING BEST PRACTICE Following devastating recent events in China, this session will examine local laws, their enforcement and the will of industry to adhere to them.

AFRICA: A CRITICAL FOCUS ON OPPORTUNITY AND POWER DYNAMICS As economic opportunities across the African continent open up, the opportunities and threats to business in the GCC will be debated.

THE WORLD TO 2018 – VOLATILITY AND STABILITY In a volatile and ever changing world, this internationally focused discussion will identify the greatest threats to the logistics industry, as well as the most positive opportunities.

THE ADVISORY PANEL Eng. Mahmood Al Bastaki An expert in e-commerce solutions, Al Bastaki is CEO of Dubai Trade, and was appointed as an advisor for the Dubai Expo 2020 bid team. A member of The UAE National Committee of World Trade Organisation, and a chairperson of Customs and Trade Facilitation Commission - International Chamber of Commerce (ICC) – UAE Chapter, Al Bastaki is also the advisory board member in the ‘National Association of Freight and Logistics – NAFL’ and a member of the external advisory council at the University of Wollongong.

Marcus Meissner Marcus has over 19 years working experience in different leading consulting positions. He joined CAMELOT Group in 2007, responsible for the Switzerland business and moved to Dubai in 2010 where he established the MEA hub.

In Saudi Arabia, Camelot is currently working with governmental bodies such as MODON and RCY to setup multi modal terminals in their industrial cities. Being the lead consultant from RCY and a thought leader in the region, Marcus Meissner is the main contact person for Saudi Arabia.

Markus Gottschalk Markus Gottschalk is a manager in the energy and process industries practice of A.T. Kearney Middle East. He has more than 10 years’ consulting experience in petrochemicals, oil and gas and utilities.

He has extensive experience in supply chain strategy, logistics operations and transportation improvements, program management of large logistics infrastructure investments, collaboration with logistics service providers, procurement, operating model development and business transformation.

Mareike Walter-Paschkowski Mareike Walter-Paschkowski is a dynamic and engaging project management professional with more than 12 years’ experience in managing complex logistics and supply chain projects.

As regional executive search consultant of Logistics Executive Group delivering whole of lifecycle talent management including corporate advisory, executive search, online education and executive coaching across the supply chain, logistics, FMCG, retail, resources, industrial, disaster relief and humanitarian sectors.

Logistics News ME | September 2015 | 25

NEW SUEZ CANAL INAUGURATED As Egypt’s President Abdul Fattah El Sisi opened the new Suez Canal, streams of world leaders and dignitaries from the business community turned out to witness the historic event and acknowledge the relentless efforts of the Egyptian people.

O

n Thursday, 6 August 2015, Egyptian President Abdel Fattah El Sisi officially inaugurated the New Suez Canal at a dazzling ceremony in the port city of Ismailiya. Present on this august occasion was a distinguished audience comprising world leaders, royalty, dignitaries and key officials from the global maritime industry and from all walks of life of Egyptian society. These included HH Sheikh Mohammad Bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai; French President Francois Hollande; Russian Prime Minister Dimitry Medvedev; King Abdullah II of Jordan, HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah

26 | Logistics News ME | September 2015

the Emir of Kuwait and HH Hamad Bin Isa Al Khalifa, the King of Bahrain.

The Palestinian Authority President, Mahmoud Abbas and the former Greek Prime Minister, Alexis Tsipras, also attended, as well as Yemen’s exiled President, Abd Rabbo Mansour Hadi and the Sudanese President, Omar Al-Bashir.

The expansion of the existing shipping lane, along with the opening of the new lane, further cements the Suez Canal as one of the most important and valuable canals in the world.

Following 12 months of tireless work by largely Egyptian employees, the new waterway now allows for simultaneous North and South-bound vessel transit for the first time in its history.

The project, which raised $8.5 billion in six days in its first round of funding, will generate revenues of $12.3 billion annually by 2023, more than doubling the canal’s current revenue intake. President Al Sisi said he hopes the canal will become a symbol of the new Egypt; a gift from the nation to the world, and a demonstration of the determination and commitment of the Egyptian people.

The new canal, a monumental project built parallel to the existing Suez Canal, was built in a record 11 months since the project was first announced by President Abdul Fattah El Sisi in August 2014. It will see a near 50%increase in vessel traffic by 2023, taking the daily transit volume from 49 to 97. Moreover, transit time

NEW SUEZ CANAL

THE SUEZ CANAL: A HISTORICAL PERSPECTIVE

for southbound vessels will be reduced by up to eight hours in total.

More than 43,000 workers collaborated to complete the project within a year on the orders of President El-Sisi, despite having previously been cited as a three-year project. The construction metrics were colossal, with excavation works amounting to 250 million cubic meters at an estimated cost of $550 million.

More than 242 million cubic meters of soil were dredged during the construction phase, resulting in a new canal stretching 35km in length and dropping to a depth of 24 meters. The project also adds a further 35km where existing bodies of water were dredged to make way for larger ships.

“This is a proud day, not only for the Suez Canal Authority and President El-Sisi, but also

for the entire Egyptian population, which has strived to achieve the near-impossible in order to make this dream become a reality,” remarked Admiral Mohab Mameesh, chairperson of the Suez Canal Authority at the inaugural ceremonies.

“Today, as we unveil this gift to the world, we present a new Egypt; a more prosperous and positive Egypt. And in doing so, we place the Suez Canal at the pinnacle of the shipping industry”, he added.

The New Suez Canal has already welcomed a number of vessels during trial periods spanning the last two weeks, but the Suez Canal Authority expects business to grow exponentially following the official launch earlier today.

In 1854 the French diplomat and engineer Vicomte Ferdinand Marie de Lesseps succeeded in enlisting the interest of the Egyptian Viceroy Said Pasha in the project.

In 1858 La Compagnie Universelle du Canal Maritime de Suez (Universal Company of the Maritime Suez Canal) was formed with authority to construct a canal and operate it for 99 years, after which ownership would return to the Egyptian government.

The pilot study estimated that a total of 2,613 million cubic feet of earth would have to be moved, including 600 million on land, and another 2,013 million dredged from water. The total original cost estimate was 200 million francs.

This caused some major problems, namely the company running into financial difficulty. After Ferdinand De Lesseps again appealed to Napoleon III, an international commission was formed in March of 1864. The commission resolved the problems and the canal was completed within the following three years. On 17 November, 1869 the barrage of the Suez plains reservoir collapsed, allowing the waters of the Mediterranean to pour into the Red Sea and the canal was open for international navigation.

Despite the waters being opened, completion still took another decade to come to a close. Every ten months, a total of 20,000 Egyptian’s were employed to work on the construction of the 160 km waterway. The completion of the Suez Canal was a cause for considerable celebration for Egypt.

However, the British government owned shares bought for £400,000, and France also maintained a majority interest. Therefore, the canal was largely under the control of the two States, until it was successfully nationalised in 1956 during the influential reign of President Gamal Abdel Nasser, as which time the Suez Canal Authority took charge of operations.

Today, the Suez Canal and New Suez Canal combine to create one of the most significant shipping lanes in the world.

The resolute defense of the canal and its importance on the international stage has paid dividends for the country, which today proudly operates an asset that will soon generate revenues of almost $12.5 billion annually.

Logistics News ME | September 2015 | 27

KHORFAKKAN CONTAINER TERMINAL

KINETIC KH 28 | Logistics News ME | September 2015

KHORFAKKAN CONTAINER TERMINAL

By virtue of its natural deep-water port, a unique, strategic location on the Gulf of Oman coast outside the Straits of Hormuz and close to the main east-west shipping routes, the UAE’s Khorfakkan Container Terminal is an ideal hub for feeder ship connections to the Indian subcontinent and East Africa. Noting a 14% increase in performance YTD and with even bigger plans on the horizon, Stephen Ogden, group director of operations for port operator Gulftainer, explains how the port is preparing to be “mega-ship ready”

HORFAKKAN Logistics News ME | September 2015 | 29

KHORFAKKAN CONTAINER TERMINAL

N

estled in the foothills of the scenic Shumayliyah Mountains, the picturesque town of Khorfakkan (Creek of Two Jaws) in the emirate of Sharjah retains its old-world charm and laid-back tranquillity. The second largest town on the Gulf of Oman,after Fujairah, along the UAE’s eastern coastline, the Khorfakkan Port Terminal (KCT) belies the town’s serenity with its frenetic activity and lays claim to being the only full-fledged operational and busy container terminal within the UAE located outside the straits of Hormuz.

Owing to its unique strategic location, the Gulftainer-operated KCT provides economical, quick turnaround and timesaving advantages for jumbo container ships and is an important trans-shipment hub for a vast hinterland comprising the Arabian Gulf, the Indian subcontinent and the East African markets. KCT also provides easy access—an important land bridge to the other Emirates in the UAE. Stephen Ogden, group director of operations at Gulftainer, the port operator at Khorfakkan Container Terminal spoke to Logistics News Middle East About the increase in YDT performance and how the port is scaling up to be mega-ship ready

How is the Gulftainer-operated Khorfakkan Container Terminal (KCT) currently faring? How has H1-2015 been relative to H1-2014 and what is your forecast for H2-2015?

Half year performance for KCT container movements incoming and outgoing was up 14.4% on the same period last year and we expect to maintain or exceed this growth during the second half of the year.

To what do you attribute this rise and how did KCT accomplish this growth?

30 | Logistics News ME | September 2015

IN NUMBERS

19,561

There has been a emirate of Sharjah.

The number of TEUs handled general increase in With the predicted at KCT in the largest single demand of goods across market potential of $496 unloading and loading the GCC countries, as million in 2013 estimated well as growth in imports to rise to a remarkable of a single vessel in the UAE due to $935 million in 2020, the investments into local logistics and transport sector has infrastructure and economy by the local played a major role in Sharjah’s growth governments. The ease of conducting and that is reflected in the success of both business in the UAE in particular has our terminals in the emirate. contributed strongly to this.

In our overall strategy, we believe in the For example, Gulftainer’s success over power of partnerships and have developed the years has closely matched that of the strong ties with global shipping lines that

KHORFAKKAN CONTAINER TERMINAL

KCT RECEIVES LARGEST VESSEL TO DATE

value high productivity and service flexibility.

In addition, it is important to highlight that we have placed a strong focus on improving infrastructure at all our terminals, to offer the latest technologies and the highest standards of services. In November 2014, for example, KCT took delivery of four new state-of-the-art Ship to Shore (STS) and twelve Rubber Tyred Gantries (RTG) cranes, marking an investment of over $60 million.

This scaling up of equipment enabling

KCT to be mega-ship ready has further boosted the trade dynamics of the terminal and the UAE as one of the major centres for global trade and transhipment business.

Where are the increments coming from and what product lines (nature of cargo) contributed to the surge in volumes?

KCT is predominantly a transhipment hub for Indian subcontinent, African and Upper Gulf bound cargoes. Local imports have increased from the Far East and South Asia, which has long been a key

Khorfakkan Container Terminal (KCT) received its largest vessel to date in June 2105. The ‘CMA CGM Kerguelen’, named after 18th century French navigator, Yves Joseph de Kerguelen de Trémarec, made its maiden call at the terminal.

The ‘CMA CGM Kerguelen’ is the newest and largest vessel in the CMA CGM’s fleet with an overall length (LOA) of 398 metres, a width of 54 metres and a total capacity of 17,722 TEUs (twentyfoot equivalent unit).

Daniel Wright, Gulftainer’s terminal manager at KCT welcomed the ship’s arrival: “Receiving the ‘CMA CGM Kerguelen’ represents another milestone for Gulftainer and Khorfakkan Container Terminal, as it is the largest vessel we have worked at the facility. Earlier, we also set a new record for the highest number of containers discharged and loaded on a single vessel call when the ‘CMA CGM Jules Verne’ worked a total of 19,561 TEUs in a record time. ” The ‘CMA CGM Kerguelen’ is longer than four football pitches, or five-anda-half A380 Airbus aircraft and its length also surpasses the Empire State Building’s height, which stands at 381 metres. On her maiden call to KCT, the vessel discharged and loaded over 7,700 containers and departed the terminal ahead of schedule.

Logistics News ME | September 2015 | 31

KHORFAKKAN CONTAINER TERMINAL

supplier to the region. However, we have also seen strong growth in imports from Europe and exports to Africa and imports of consumer products, such as food stuff and pharmaceuticals; and exports of automobile components and polymers.

Given the importance of trade and manufacturing to Sharjah’s economy—the region’s key geographical location between Africa, Asia and Europe, KCT will continue to support this market.

How significant is KCT as a transhipment hub?

Shipping lines require their vessels to have the shortest stay possible in port and they place the onus for a quick turnaround of their vessels onto port operators to provide top quality service to allow them to work and leave on their rotations ontime, or ahead of time. By offering this cost-effective and time-saving option for mega-containerships, our shipping line customers save valuable transit time by calling at KCT and enjoy a quick turnaround to continue their onward journey.

This gives the shipping lines the option to slow steam to their next port of call, saving tens of thousands of dollars in fuel costs, and still reach their destination on time. In addition, its well-earned reputation for performance and productivity, as well as flexible attitude with all customers, make it an obvious choice.

What are KCT’s advantages?

KCT is one of the fastest terminal operators in the world. Any box imported into the country through the KCT reaches a consignee’s warehouse at least two to three days prior, compared to the transit time if imported through any another container terminal within the UAE. Popular for its excellent productivity, operational efficiency and service 32 | Logistics News ME | September 2015

This gives the shipping lines the option to slow steam to their next port of call, saving tens of thousands of dollars in fuel costs, and still reach their destination on time.”

flexibility, it is also one of a handful of terminals capable of handling the new 18,000 TEU class and above.

The terminal’s strategic location, as the only fully fledged operational container terminal in the UAE located outside the Strait of Hormuz, has made it one of the most important transhipment hubs for the Arabian Gulf, the Indian subcontinent, the Gulf of Oman and the East African markets. KCT also provides access to hinterland traffic through the Sharjah

KHORFAKKAN CONTAINER TERMINAL

STEPHEN OGDEN GROUP DIRECTOR PORT OPERATIONS, GULFTAINER

Stephen Ogden is a qualified master mariner from the UK. He joined Gulftainer in November 1992. Earlier, Ogden has held the positions as terminal manager and operations superintendent within the Company.

Ogden was initially based in the Sharjah Container Terminal and held the positions of operations superintendent, terminal manager and finally operations manager prior to his current post. He has 12 years of seagoing experience followed by over 20 years of experience in the port industry specialising in the operation and management of port and container terminals.

Inland Container Depot and offers supply chain integration.

How is KCT’s strategic location outside the Strait of Hormuz an advantage for container movements?

Due to its unique location, KCT has long been one of the most important transhipment hubs for the Arabian Gulf, the Indian subcontinent, the Gulf of Oman and the East African markets. It offers a vital alternative for shipping lines

and avoids the need to steam into the Arabian Gulf, which adds an additional 24 hours to the schedule, and provides a land-bridge between the northern emirates and the rest of the UAE. Khorfakkan is easily accessible by a modern multi-lane highway, which dramatically cuts the time to move cargo from the east coast to the industrial areas of the country. Goods coming into Khorfakkan now can be in customer’s warehouses within three to six hours,

shaving at least 50% off of the journey time to the west coast.

30 April 2015 marked an important date for Khorfakkan. Tell us why?

Gulftainer set a new record for the handling of the largest single unloading and loading of a single vessel call at its KCT, at 19,561 TEUs. The terminal staff completed the record breaking call of the ‘CMA CGM Jules Verne’ 11 cranes in only 54.5 hours. The Logistics News ME | September 2015 | 33

KHORFAKKAN CONTAINER TERMINAL

396 metre long and 54 metre wide vessel was able to leave the port well ahead of schedule to her next port of call.

With this new record KCT demonstrated its ability to accommodate these large container volumes and to keep pace with the increasing volumes generated by the ULCC’s (Ultra Large Container Carriers) that operate in this region.

KCT has played host to several giant ships, some of the largest in the world. Why did they choose to come to Khorfakkan Port?

KCT is a strategic hub port for several shipping lines and is a vital part of their global network, being one of the few ports in the world that can accommodate the modern day mega vessel.

With its natural deep-water berths and state of the art equipment, the port is well equipped to manage the largest container vessels currently in service.

Describe the role of Gulftainer in KCT’s port operations?

Gulftainer was awarded the concession to operate the Khorfakkan Container Terminal on behalf of the Sharjah Port Authority at Khorfakkan Port in 1986 and the concession agreement was recently extended in view of the high level of productivity and container business generation over the past 30 years.

What are the expansion plans for KCT? As a pioneer in container terminal operations in the region, Gulftainer is at the forefront in investing in new technologies that further optimise operations and strengthen efficiency. We recently made a $60 million plus investment in four state-of-the-art Ship to Shore (STS) and twelve Rubber Tyred Gantries (RTG) cranes, reach-stackers, empty container handlers and tug-master and trailer combinations at KCT. The yard capacity of the terminal has also been enhanced significantly by 55,000 sqm. of additional container stacking area.

The expansion has increased the terminal stacking capacity to over 50,000 TEUs. Gulftainer plans to develop additional quay facilities and create further yard area, to reach an annual capacity of 6 million 34 | Logistics News ME | September 2015

“In November 2014, for example, Khorfakkan Container Terminal took delivery of four new state-ofthe-art Ship to Shore (STS) and twelve Rubber Tyred Gantries (RTG) cranes, marking an investment of over $60 million” TEUs by 2016 and 8 million by 2020.

Among other improvements, the layout has been revised for more efficient space utilisation. A new container freight station (CFS) has also been created for additional container packing and unpacking services, with additional handling equipment to support these activities.

The expansion of KCT is an ongoing project. We constantly review and monitor requirements with the Sharjah Port Authority and will continue to upgrade

services and introduce new technologies as and when demand determines the need, to further under-line our industry leadership credentials.

Which major international shipping lines regularly use Khorfakkan Port?

The terminal attracts regular mainline and feeder services from major shipping lines including CMA CGM, United Arab Shipping Company (UASC), Emirates Shipping, Hanjin Shipping Line and China Shipping Container Lines (CSCL).

KHORFAKKAN CONTAINER TERMINAL

network in the UAE as one of the most exciting and beneficial projects for our region, and an innovative project on a global stage. The introduction of the rail link will have a dramatic effect on the time scale in which shipping lines and cargo carriers will be able to connect to the country’s key centres of trade and industry, maximising the effectiveness of Gulftainer’s vital role within the supply chain.

Gulftainer’s goals and objectives for future operations and The investment in four shipcommercial targets, as well as the to-shore container cranes integration of Gulftainer logistics and 12 rubber tyred gantry facilities would be advanced cranes at KCT tremendously.

IN NUMBERS

$60M+

Are more shipping lines expected to use KCT? The shipping lines and alliances that use KCT are revising their schedules and services and we are ready for additional services from both existing Gulftainer customers and new shipping lines to utilise the facility in the near future.

Which are the top five destinations for outbound and in-bound freight through KCT? The top five destinations for both outbound

and inbound freight services through KCT are Saudi Arabia, Kuwait, Iraq, Pakistan and India.

What implications will the development of the Etihad Rail project have for KCT when functional? How will it impact the port’s operations?

Gulftainer has played a consistent role in contributing to the UAE economy for many years and any connection with the planned rail link would develop that even further.

We see the development of a railway

What are the future opportunities and challenges for award-winning KCT going forward?

Gulftainer has recorded consistent growth over the past decade, averaging over 12% compared to global market growth of 8.6% during the same period. We expect positive growth will continue and our throughput to increase to 7 million TEUs globally in 2015.

We have set an ambitious target to triple our global cargo capacity in the next ten years across five continents through organic growth across existing businesses, exploring green field opportunities and potential M&A activities. In the meantime, we expect to keep growing through aggressive investment in new infrastructure to enhance operational efficiency, as we have done in the past.

One of the key opportunities is that of Iran sanctions being removed which will greatly benefit our business. Also the conscious effort by GCC countries to switch from oil based to a non-oil based economy will greatly enhance the way business is conducted. We are already seeing the UAE take a lead by deregulating oil prices to be linked to global indices. Other opportunities we foresee are the stable socio-political economy in GCC countries and the World Expo Dubai 2020.

One cannot deny the challenges we will face which are primarily increasing size of vessels, continuous improvement in productivity requirements and several competing facilities in the region.

Logistics News ME | September 2015 | 35

DIGITAL DREAMS When it comes to online sales, the benchmark for OmniChannel retailers globally stands at 5% of total sales. Jumbo Group has ambitions to reach this within 12 months of the launch of jumbo.ae. Nadeem Khanzadah, head of OmniChannel retail, and Shailen Shukla, head of Jumbo Logistics, talk about the logistics behind meeting consumer demand

T

he Middle East and Africa region is behaviours, with intuitive functionality and projected to increase its share on global easier access to content such as the search bar, B2C E-commerce sales from top-sellers, and sales.

2.2% in 2013 to 2.5% in “Since our launch six months 2018. However, the outlook in ago, we have helped shape individual countries show a various consumer trends and far more rapid rate of alternative online payment proliferation. methods in the regional E-commerce is growing E-commerce landscape. in the UAE at a rate of After having introduced over 20% annually off the Click and Collect increasing Internet and feature to the region, we Customer orders mobile coverage, while the have received positive served annually top merchants, Souq.com, feedback from our Namshi and MarkaVIP customers. The Click and generated $70m of investment in Collect option has accounted for 2012 and in Saudi Arabia annual 20% of our total online orders. We growth is currently at 40%, with half the have also developed the 2-Click Checkout, population shopping online. For a region which simplifies the process of purchasing which lacks a reliable postal service, it’s an online,” explains Nadeem Khanzadah, head of impressive gain.

OmniChannel Retail, Jumbo Group.

Naturally retailers are responding. Six The evolution is ongoing with continued months ago Jumbo Group launched jumbo.ae, development of the OmniChannel operations an online retail experience positioned to reflect to seamlessly integrate both the online and the evolution of the customers’ online offline shopping experience, engaging with an

IN NUMBERS

250,000

36 | Logistics News ME | September 2015

ever-wider range of shoppers in the UAE and beyond.

Khanzadah adds: “Naturally, given the transient and evolving nature of the products, consumer electronics are a popular choice in the online retail space. From our own experience, Jumbo has seen a wave of new customers join the fold thanks to the online shopping interface on offer. We believe consumer electronics retail will see a huge shift to the online realm in the coming years.”

In a large part that is driven by the region’s high smartphone penetration, both in terms of access to the site and bestselling products, closely followed by accessories and tablets.

But as with everything in the region it’s the user experience that will set Jumbo apart from its rivals and it’s the behind the scenes mechanics that make such an element work.

INCREASING CAPACITY The group’s Click and Collect function places a huge amount of additional pressure on Jumbo’s current operations, but the group is no stranger to mass operations; in fact its scope is

RETAIL

so wide reaching it has had its own logistics company since 1974.

The division offers integrated supply chain management and cost effective logistics solutions for operational excellence across the Jumbo Group, which means being responsible for inventory, storage, packing, distribution, and transportation of products not just for Jumbo Group, but 3PL clients as well.

Recently, Jumbo Logistics invested in a WMS software solution that helps optimise the utilisation of warehouse space in real time, allowing warehouse managers to track and trace every stock keeping unit (SKU) and resulting in accurate order fulfilment. The software uses long range barcode (EAN -European Article Number, now renamed International Article Number) scanning system and can be used with the help of handheld WiFi connected scanning devices, leading to more efficient customer deliveries, improved client relationships, and incremental sales.

Shailen Shukla, head of Jumbo Logistics, Jumbo Group explains: “A WMS system allows for warehouse design functionality that customises workflow and picking logic, a tactical planning decision involving the selective removal of items from loading units, to ensure that inventory is allocated to the

JUMBO LOGISTICS, JUMBO NUMBERS

“At Jumbo, the goal is to consistently outdo ourselves when it comes to the services we offer” Shailen Shukla, head of Jumbo Logistics

Statistics on Staff: • Over 250 competent staff operating in WMS integrated with ERP • 25 managerial and supervisory staff with manufacturing, retail, and 3PL experience • Approximately 18 licensed MHE, LCV, and HCV operators Statistics on the distribution network: • Nearly 12,000 milk runs annually • Over 250,000 customer orders served annually • Over 5,000 customers covered in the region including a wide base of dealers and power retailers Cost-saving and Productivity Enhancement: • Improved Labor productivity by eliminating manual tasks.

• Faster order servicing resulting in more satisfied customer and eventually more repeat orders • Reduction in inventory shrinkages to less than 0.0001% • Traceability and blocking of nonconfirming goods for safe and early liquidation • Reverse logistics managed with delivery vehicles without incurring any extra cost savings of over 10% through reverse auctions for freight procurement on the Ariba platform Green initiatives: • Minimal use of paper with the introduction of WMS and HHT (Hand Held Terminals).

• Recycling paper through supply of scrap papers and cartons to paper mills • Regular 5000 km servicing and controlled vehicle speed for fuel conservation and savings

Logistics News ME | September 2015 | 37

RETAIL

correct location within each facility. One of the key performance indicators of our WMS inventory tracking was the ability to use advanced tracking systems, such as auto ID data capture (AIDC), barcode scanners, or radio-frequency identification (RFID) that ensured the correct logging of inventory and easily located it when it was to be moved.

He continues: “Drawing from the strength of Jumbo Logistics, our 3PL division has access to our wide distribution network and technological tools. Our 3PL team also possesses the same innovative and productive work ethic that has driven Jumbo Group’s success.”

The operation employs over 250 ITcompetent personnel, who are based in 300,000 square feet of custom designed warehouses across the UAE, Oman, Kuwait, and Qatar, all temperature controlled with custom storage and state-of-the-art security storage zones.

“High-performance is vital to us, and we make sure that our put-away and picking accuracy, inventory accuracy, and on-time delivery performance maintain their rates of efficiency. Currently, our inventory accuracy, put-away and picking accuracy are over 99%; and on-time delivery performance over 98%.

Our entire inventory is 100% traceable, contributing to more streamlined and effective services,” Shukla says.

ON THE RADAR Despite the approach to forward thinking capabilities, technological innovations in logistics and logistics software develop rapidly, and it can be difficult to stay ahead of the curve.

Shukla explains: “At Jumbo, the goal is to consistently outdo ourselves when it comes to the services we offer. Because we always want to stay ahead of the curve, we also put ourselves in the position of pioneers, introducing concepts and innovations to the region that quickly become benchmarks for our competition.”

Most recently these include, development of the E-commerce model, mobile devices distribution, doubling appliance volumes, and offering more specialised 3PL services to acquire more customers, while also staying ahead of competitors.

The plant handles up to 200 containers imported every month from China, and runs 54 trucks and containers in the UAE, from the local warehouse which spans an area of 150,000 sq. ft. Jumbo Group relies on Jumbo Logistics to run low-cost operations that fully insourced, in addition to maintain efficiency and inventory accuracy.

As Frost & Sullivan reports, the value of 38 | Logistics News ME | September 2015

“As for www.jumbo.ae, we are looking to actively participate in this surge and develop services and platforms that cater to consumer needs as they evolve.”

Nadeem Khanzadah, head of OmniChannel Retail, Jumbo Group E-commerce in MENA will double by 2020, from about two percent of GDP to five percent. By that time, Internet spending in the GCC will reach 40 percent growth, with sales reaching $4.15 billion.

Explaining the relevance to Jumbo Group’s wider ambition, Khanzadah concludes: “With these projections, we can maintain a positive outlook as they indicate

that consumer confidence in E-commerce is growing. This can be attributed to various factors, including the increased adoption of smart technology and acceptance of cashless transactions.

“As for www.jumbo.ae, we are looking to actively participate in this surge and develop services and platforms that cater to consumer needs as they evolve.”

WAVES OF SUCCESS Looking back on a successful H1, Tasneef CEO Eng. Rashed Al Hebsi, reflects on the organisation’s appointment to classify more than 50% of regional services and its deals with Logmarin, Lockheed Martin, RINA and the Jordanian Maritime Authority

2

015 has been a significant year for Tasneef. Only three years into its establishment, the organisation this year celebrated its appointment to inspect and classify more than 50% of services in the region and signed an MoU with Drydocks World and Dubai Maritime City (DMC) to provide classification services to the world’s first LNG-powered harbor tug carrying the trade mark Elemarateyah.

Tasneef has expanded in the Italian

market through a partnership with Logmarin – a consultancy company specialising in shipping logistics and advisory – in addition to a partnership agreement signed with the Italian classification society RINA Services.

Under this deal, Tasneef has successfully classed the 96,214DWT oil tanker Energena.

A further agreement was signed with Lockheed Martin – a global security, aerospace and information technology company in the United States – to issue

classification certificates and conduct inspections for the design of a new naval vessel manufactured by Lockheed Martin.

Strengthening strategic alliances in the Middle East region, Tasneef also signed a bilateral agreement with the Jordanian Maritime Authority and Jordanian Academy for Maritime Studies.

Most recently, last month Tasneef signed a one year agreement with Abu Dhabi Petroleum Ports Operating Company Irshad

TASNEEF: THE ACHIEVEMENTS TO DATE GCC Code

The UAE Yacht Code

Advisory Board Meetings

The UAE has participated, within the GCC, in the list of security and safety regulations for small and Non-Conventional Ships.

Tasneef plays a leading role to ensure the best intentions of the GCC Code are upheld. Technical surveys were conducted and certificates issued to ensure the best implementation of cabinet resolution No. 29 of 2013. Tasneef has conducted a series of awareness workshop in UAE and Bahrain to establish the importance of implementing GCC Code.

Tasneef played a major role to ensure that the best intentions of the Yacht Code were upheld, through workshops and an online FAQ covering: how compliance with the regulations is verified; the documents required to be placed on board the relevant vessel; how yachts can be surveyed before issuance of a Yacht Certificate of Registration/Yacht Safety Certificate/Classification Certificate (as required). This is backed by an implementation plan for existing yachts.

Two advisory board meetings discussed the development of maritime sector in UAE, as chaired H.H. Major General Ibrahim Salem Al Musharrakh, Commander of U.A.E. Naval Forces and attended by top high-profile figures in the maritime industry.

40 | Logistics News ME | September 2015

TASNEEF

– a wholly owned subsidiary of ADNOC –to survey and classify 31 of its offshore vessels including tugs, pilot boats, crew boats and barges.

And in the same six months, the organisation opened its own maritime academy, further strengthening the development of the local maritime industry, and embarked on a strategic networking relationship with Nor-Shipping, through hosting an international audience at the 50th

Nor-Shipping Exhibition in Oslo, Norway June. It was during this event, Tasneef CEO Eng. Rashed Al Hebsitold HM King Harald V of Norway about the UAE’s current efforts and initiatives towards reinforcing its position as one of the world’s leading maritime hubs.

Considering the ambitions that led to the body’s inception, it seems Tasneef is riding a wave of success.

The establishment of a classifications

society had been an ambition of the Arab world since the 1990s, when it was realised that the unique geographical position could be leveraged for economic gain. It was the UAE which seized the opportunity to establish the first classification society in the country, GCC and Arab world and the Minister of Public Works and chairperson of the UAE Federal Transport Authority for Land and Maritime (FTA) H.E. Dr Abdullah Al Nuaimi, issued a decision acknowledging

Tasneef Academy for Maritime Training

SAHARA Notation

Green Shipping

The first academy specialised in ship classification and related maritime sectors, in the UAE. Its capacity is expected to take 300-500 trainees and introduce major programs that will include management of maritime projects, management of maritime security, management of maritime safety, inspection of ports and maritime navigation, auditing and insurance in addition to other sub-disciplines in the field.

This is for vessels operating in the Arabian Gulf, Oman Sea, East of Oman and Yemen and the Red Sea. This Notation ensures the accurate standards of vessels in warm areas as well as the safety of passengers and the maritime environment.

Tasneef provided the world’s first LNG powered harbor tug Elemarateyah with technical and engineering consultancy services and issuing necessary certifications under the supervision of the first Emirati surveyor, Hussain Al Ali.

Logistics News ME | September 2015 | 41

TASNEEF

Tasneef as a recognised organisation (RO) acting on behalf of FTA for statutory certification.

“Our primary mission is to serve the UAE’s interest, as well as the needs of our clients by promoting the security and safety of life and property, and protecting and preserving the natural environment in our vital maritime domain,” Al Hebsi explains.

It is through the strategic partnerships seen over recent months that Tasneef will achieve its ambition to become the “most effective and efficient provider of marine and offshore classification services in the UAE”, which to an outsider could plausibly make H1 2015 its seminal period of performance to date. Reflecting, Al Hebsi, says: “The [regional] maritime related economy value is around $370bn annually. Therefore it was a necessity to establish a classification society in this region to fulfill this massive demand and to cater to the gap left from other classification societies who are not familiar with our environment and requirements.”

It is vital a body exists to continue to

address the unprecedented challenges the UAE maritime industry faces, the largest of which stems from this very issue; familiarity of the business landscape to the foreign companies the industry remains dependent upon.

Without a raft of its own indigenous shipping companies, it is these foreign players which must be encouraged to, and assisted in, doing business here and it is Tasneef ’s role to build those relationships.

Considering the UAE’s connection with maritime trade is historically a strong one, its government must not overlook this vital function in order to preserve and build upon this.

Al Hebsi concludes: “There are great opportunities and investments in the region, and we are determined to fulfill the demands with the highest standards and professionalism contributing to maritime safety and environment; reducing marine incidents, and focusing on building qualified national capacity to fill the gap technically and technology.”

ACCOLADES - Tasneef was among the top 10 classification societies for the year 2014 - The Newsmaker of the year award from LIoyd’s List Awards Middle East & Indian Subcontinent 2014 - Seatrade Maritime Excellence Award 2014 for the contribution to the Development of the Regional Maritime Sector - Maritime Standard Personality of the year 2014.

- Innovation Award

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GREENFIELD DESALINATION PLANT

(L-R) Luis Rein from Grupo Cobra shakes hands with Rashid Mehran Al Baloushi, Chairman, Utico, after the signing ceremony, as Richard Menezes, Vice Chairman and Managing Director, Utico, looks on.

UTICO, COBRA INK MEGA WATER-DESALINATION PROJECT IN RAK A new and second water desalination project by UTICO in Ras Al Khaimah when fully operational will open the floodgates to enhanced water supply in the emirate and the surrounding region. This bodes well not only for this most northerly emirate but also the adjacent emirates of Fujairah and Umm Al Quwain.

U

tico, part of the $2 b+ UAE-based Ghantoot Group of companies and top Spanish energy giant Grupo Cobra have recently sealed a $195 million deal on a greenfield project to establish one of world’s largest independent and green desalination facility in the Al Hamra Jazeerah district of Ras Al Khaimah.

The joint venture, to be called Al Hamra Water Company, is a 60/40 partnership between Utico Middle East and Grupo Cobra respectively and will oversee the development of the world’s largest privately financed independent desalination company. The facility will be located in the Al Hamra Jazeerah area of Ras Al Khaimah and will be the world’s most environmentally friendly desalination plant.

A shareholders’ agreement to this effect was recently signed in Dubai by senior officials of Utico Middle East and Grupo Cobra. Once completed in 2017, the Al Hamra Water Company will generate 22 million gallons of water per day (MGD) to serve the needs of Ras Al Khaimah and surrounding regions even across the other northern emirates. The project will create 300 jobs during the construction phase and 80 permanent posi-

tions once fully operational.

According to Rashid Mehran Al Baloushi, chairperson, Utico the project is a path-breaking development in the verdant northern Emirate and comes at a pivotal time when governments are removing subsidies for fuel and services. “Our unique model of utilities development, combined with a pro-consumer, environment-friendly approach, has been widely recognised as a good model by governments and other utilities providers in the region,” he told the press gathering.

Utico revealed that the facility will be technologically advanced and have one of the lowest power consumption levels in the region, as well as water re-use saving at least 33,280 tons of CO2 per year. These factors will help the facility to reduce impact on climate change as well as provide quality water to all consumers, the officials asserted.

Established in 1944, Grupo Cobra is part of the ACS Group, a $65 billion annual turnover company, and develops, builds and operates industrial infrastructures.

Speaking to Logistics News Middle East on the side-lines of the specially convened press confer-

ence, Richard Menezes, executive vice chairperson and managing director, Utico, stressed that costs will be controlled and the company will work within the financial provisions of the agreement. “We have capped the total expenditure and will not exceed the $195m outlay and work strictly within the allocation,” he emphasised.

Menezes noted that Grupo Cobra was awarded this desalination project though an elaborate bidding process that first commenced in November 2013 and concluded in July 2015. The entire process was monitored by international law firm Latham and Watkins. Menezes was also upbeat about future expansion and confirmed that there were three more similar projects in the pipeline— two in the UAE and one outside.

In reply to another question, Menezes said the investment was privately funded with Utico as the primary investor and with no subsidies nor investment coming from either the Government of Ras Al Khaimah or the UAE Federal Government.

“The Government involvement will be largely support, oversight and regulation and in ‘off-taking’ implying they will buy water from us at a predetermined price,” he added.

Logistics News ME | September 2015 | 43

CHEMICALS DISTRIBUTION HUB

Mohammed Al Muallem, senior vice president and managing director of DP World, UAE Region (right) and Moosa Al-Moosa, president of Dow UAE during the signing ceremony in Jebel Ali, attended by senior officials from both organisations.

DOW OPENS JEBEL ALI PORT DISTRIBUTION HUB Following its recent agreement with DP World, UAE Region, Dow UAE is uniquely poised for a major take-off for its vast range of chemicals, catalysts and feedstock using the strategically located Jebel Ali Port as a major chemicals distribution hub. Under the agreement, DP World will provide Dow with value-added services such as Jebel Ali Port’s storage facilities and shipping to its customers globally.

D

P World, UAE Region, the regional leading marine terminal operator has reached an agreement with Dow UAE, an affiliate of The Dow Chemical Company based in Jebel Ali (Dow) to support the distribution of Dow‘s products.

The contract was signed recently by Mohammed Al Muallem, senior vice president and managing director of DP World, UAE Region, and Moosa Al-Moosa, president of Dow UAE and regional finance chief in Jebel Ali in the presence of senior officials from both organisations.

Under the agreement, DP World will provide Dow with value-added services such as Jebel Ali Port’s storage facilities and shipping to its customers globally.

HE Sultan Ahmed Bin Sulayem, chairperson of DP World, remarked that Jebel Ali will enable Dow to benefit from value-adding, efficient handling services, unparalleled sea connectivity and modern technology which supports the supply chain with gate automation systems and paperless processing of cargo documentation through a single electronic window. “Partnership with a global leader like Dow highlights our role as a re44 | Logistics News ME | September 2015

gional hub for polymers and petrochemicals,” he added.

Al-Moosa, observed that this partnership will help Dow extend its geographical reach and product distribution globally, ensuring they have the right logistics and supply chain processes and mechanisms in place. He noted that this agreement with DP World would accelerate Dow’s continued growth in the region and beyond.

Al-Moosa also stated that DP World would provide a strong centre of excellence for Dow in terms of supply chain and logistics and that the latter would form an ideal partner to enhance Dow’s innovative solutions to existing challenges.

“Together, we hope to create value for our customers and stakeholders by emphasizing the need for a reliable, best-in-class and most importantly safe supply chain,” he affirmed.

The agreement is the outcome of lengthy negotiations and comes as a spin-off to Dow Chemicals’ joint-venture partnership with Saudi Aramco for the $20 billion plus Sadara, the world’s largest chemical complex ever built in a single phase, with 26 integrated world-scale manufacturing plants that will produce more than

three million tons of products every year. It is expected that Sadara will be a Fortune 500 company within the first year of full operation.

The petrochemicals plant is now in the advanced stages of construction in Jubail Industrial City II in Saudi Arabia’s oil-rich Eastern province and is on track to deliver its first products in the second half of 2015, with the complex in full operation in 2016. The Sadara complex will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock. By using best-inclass technologies to crack refinery liquid feedstock, Sadara will enable many industries that either currently do not exist in Saudi Arabia or only exist through imports of raw materials.

As one of the world’s largest chemical companies, Dow has a historic presence in the Middle East and Africa with more than 40 years of commercial, manufacturing and research and development activities across the region.

As an integrated multi-modal transport hub offering sea, air and land connectivity complemented by extensive logistics facilities, Jebel Ali is a premier gateway for over 90 weekly services connecting more than 140 ports worldwide.

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The MFC Logistics centre in Jebel Ali

LONG-ESTABLISHED LSP CONSOLIDATES ITS PRODUCT OFFERINGS With its entrenched deep roots in the logistics industry in the UAE, Modern Freight Company is now on the cusp of a new phase as it brings fresh impetus and new momentum to its continuing growth mode.

C

urrently headquartered in the Jebel Ali Free Zone, comprehensive Logistics Services Provider (LSP) Modern Freight Company (MFC) was one of the early arrivals on the UAE’s shipping and logistics landscape some 38 years ago. The company started in 1977 as a liner agent with only five staff. Presently the company is a diversified logistics services provider and employs over 300 staff in offices located in Jebel Ali, Dubai Airport, Abu Dhabi, Sharjah and in Doha, Qatar. Agents strategically located around the globe provides the company an international representation.

Capitalising on its location on the North side of the Free Zone, the locally owned company is today a leading supply chain solution provider in UAE and GCC, focusing on a wide scope of businesses including contract logistics, international consolidation services, freight management, customs clearances, project cargoes for the oil and gas, construction, energy, maritime, mining and heavy machinery industries, household removals and relocation services, promotional packing, container storage and 46 | Logistics News ME | September 2015

container conversions.

The company also has a Container Concepts division, MFC Container Concepts, which is a fully diverse container depot located in the Jebel Ali industrial area of Dubai and has recently opened its operations in Doha, Qatar. Commencing as a standard container storage and repair facility, it has expanded its operations to include container conversions, modular fabrications and flat pack units.

The logistics market in the region has experienced rapid growth as companies realised the value of having a strong logistics partner to ensure competitive edge, customer satisfaction and operations optimisation.

MFC’s comprehensive supply chain solutions have made them a trusted partner for many notable companies in various sectors across the world.

“We understand that cost and time efficient movement of goods across suppliers, retailers and customers is of prime importance. With our facilities spread across varied locations in UAE and Doha, we are capable of handling seasonal, temporary or

long-term storage and distribution requirements including dry and temperature-controlled cargo. Coupled with almost four decades of logistics experience, MFC also has the size and scale to help with any warehousing and distribution, freight forwarding or customs clearance challenge,” affirms Nick Trott, general manager of Modern Freight Company.

Accreditations have also come MFC’s way and this is a reflection of the company’s commitment to maintaining industry standards. “MFC has, for many years, been an ISO 9001:2008 accredited company, however with the environment becoming such an integral part of day to day business, we decided to become accredited to ISO 14000, a feat we achieved in 2010. At the same time, we also became OSHAS 18000 accredited,” stresses Trott.

Trott is also only too well aware of the importance of customer satisfaction which has always been an important goal for MFC. “Our excellent delivery services which involves not just timely delivery but also quality, reliable and flexible delivery contributes

3PL SERVICES PROVIDER

to customer satisfaction and helps us maintain a good track record,” he explains.

MFC’s warehouse facilities, with a current capacity of over 45,000 pallet rack positions (and growing), are also well equipped to cater to needs of bulk storage, temperaturecontrolled storage and open yard storage. All warehouses are fitted with start-of-the art security systems and advanced monitoring tools, including indoor and outdoor camera systems, and fully equipped firefighting systems.

As customer’s demands and preferences are changing rapidly and they are looking for supply chain solutions to minimise handling and faster lead times, service providers have to find new supply chain solutions to service them. So, to assist with these demands, MFC has opened a temperature controlled facility with over 700 sqm. of space dedicated exclusively to co-packing and re-working requirements. Whether the customer’s needs to change a product’s packaging for promotions or needs to add specific information labels, MFC offers complete re-packaging, reworking and co-packing solutions.

The company also caters to the chemical industry through its dedicated 2,000 sqm. facility for chemical storage and distribution, which has the capacity to store chemical drums, IBC’s, and bulk items, as well as being able to accommodate over 12000 Steel Drums stacked 4 high.

Modern Freight Company is part of the larger DUTCO Group of companies and Trott sees advantages in belonging to this wider conglomerate. “DUTCO is a huge multifaceted group with companies in many business areas. These are so diverse that we have been able to provide these business units with service offerings across the whole range of products we offer,” he remarked.

To complement these facilities, MFC also has 500 sqm. of warehouse space and 350sqm. of office space inside Dubai Cargo Village, and is in process of opening its new warehouse facility in Al Quoz. With plans in place to expand into DWC, the future for Logistics looks very bright. “At MFC we have always gone that extra mile for our customers to provide value added services and improve our overall services to our clients” asserts Trott.

Last, but certainly not least, MFC is also looking to invest at the new DWC where a new facility will increase the current pallet capacity by 25%..... Exciting times ahead for a pioneering UAE logistics company.

A pan shot of the MFC offices

MODERN FREIGHT COMPANY

“Our excellent delivery services which involves not just timely delivery but also quality, reliable and flexible delivery contributes to customer satisfaction and helps us maintain a good track record” Nick Trott

MFC Container Concepts is part of Modern Freight Company, which commenced as a small container depot storage area in the 1990s, but has now become one of the largest container storage and container fabricators in Dubai.

Whilst continuing to provide container storage and IICL (Institute of International Container Lessors) standard repairs at its Jebel Ali Industrial Area facility, it also provides container conversion, modular fabrications and offshore units, all of which are designed and professionally manufactured at the facility. The success of this venture has allowed MFC to expand its operations into Doha, Qatar and other GCC countries.

MFC Container concepts caters to many requirements including living quarters for staff (with built-in amenities), offices in remote locations or containers for specialised storage, acoustic generator rooms, Offshore control rooms, portable workshops, with gear rooms and site offices to name but a few examples. This is a truly unique product offering for a logistics company and one which has continued to expand even during the 2009 downturn suffered by many businesses here in Dubai.

Logistics News ME | September 2015 | 47

MATERIALS HANDLING SECTOR ON A ROLL Multi-billion dollar investments in GCC-wide commercial and civil infrastructure projects are having a positive impact on the materials handling sector, as the region’s dedicated logistics and warehousing trade show readies for its September opening in Dubai.

A

ccording to industry reports, the Gulf region awarded $86 billion worth of infrastructure projects in 2014, up 78% over 2013, with the increased investments fuelling demand for providers of logistics, transportation, materials handling, and supply chain solutions.

This upbeat sentiment is underlined by the industry’s biggest names that will be exhibiting at the biennial 8th edition of Materials Handling Middle East 2015, scheduled from 14-16 September at the Dubai International Convention and Exhibition Centre. It will feature over 150 brands from 18 countries.

Headline companies returning to the sell-out, three-day event include UAE-based powerhouses Al-Futtaim Auto and Machinery Company (FAMCO), Al Futtaim Motors, General Navigation and Commerce Company (GENAVCO), SSI Schaefer and Swisslog.

48 | Logistics News ME | September 2015

“The continued growth in the sector can be not Commercial Vehicles division will be at Materials only be attributed to the continued infrastructural Handling Middle East 2015 to showcase its Hino development across the region but also to Trucks and Toyota Material Handling increasing demand for a streamlined supply chain equipment, including Toyota and Raymond and logistical framework from a growing number Forklifts. of regional businesses,” commented Ahmed Vladimir Knezevic, managing director of Al Pauwels, ceo, Messe Frankfurt Middle East, Futtaim Motors Commercial Vehicles remarked: organiser of Materials Handling Middle “Thanks to the wide range of products East 2015. offered by Hino Motors and Toyota “As the premier trade event in Material Handling, we are able the region, Materials Handling to provide customer tailored Middle East provides solutions for each business exhibitors and trade buyers segment.

Our target with a dedicated customer varies from small networking platform and and medium enterprises, to unmatched business large distribution promotion and companies, from FMCG Value of UAE development facilities,” he and logistic companies to logistics market added. construction and Al Futtaim Motors’ governmental institutions, all of in 2015

IN NUMBERS

$27BN

MATERIALS HANDLING MIDDLE EAST 2015

whom we hope to meet at this exhibition.”

Matthias Hoewer, general manager Middle East and Africa, SSI Schaefer, one of the world’s leading supplier and manufacturer of high quality storage and materials handling systems, was also upbeat about his company’s long-time participation in Materials Handling 2015. “At this year’s show we are showcasing a versatile and ingenious R3000 multi-tier shelving solution which is closer to our clients’ market demands,” he said.

“E-commerce and store-friendly deliveries create a high demand within warehouse facilities.

The level of complexity is increasing significantly and customer demands for quick turnaround times of projects add to this complexity,” Hoewer remarked in response to another question on the latest market trends that impact the materials handling business.

BEHIND THE SCENES Growing challenges in the GCC logistics market is presenting remarkable scope for automation in the region’s materials handling industry, while current levels of mechanisation within the sector is relatively low, new research has revealed.

A recent survey by global analysts Frost & Sullivan of more than 200 logistics end-users from various industries across the GCC indicated that there is strong intent to adopt automation in warehousing and transportation to improve operational efficiency and processes. The UAE logistics market alone is expected to be worth $27 billion in 2015, up 15% from 2013, thanks to strong import and export figures as well as an uptick in local manufacturing, the Frost & Sullivan report revealed.

According to the survey, forklifts are the most popular forms of mechanisation in the GCC logistics industry, with 37% of respondents indicating they use this equipment, followed by coding and labelling devices (34% of respondents) and warehouse trucks (26% of respondents).

However, the overall opinion within the GCC logistics market is the level of penetration of automation is low, with over half of the survey respondents saying they don’t use automated technology in their logistics operations because such systems were too expensive. Therefore the potential for growth is tremendous.

Underlining the market potential is the robust interest from major players at Materials Handling Middle East 2015, where the number of cars on the MENA roads will reach 33.9 million, driving demand for auto parts, and creating big opportunities for materials handling providers.

Walid Daniel, managing director of SPAN Trading, affirmed that to remain competitive, the regional materials handling industry must

“There are increasing demands in supply chain solutions as businesses seek new ways to stay competitive” Ahmed Pauwels, ceo, Messe Frankfurt embrace new technology: “There are increasing demands in supply chain solutions as businesses seek new ways to stay competitive, and be better and faster with one goal in mind: satisfying consumers’ requirements,” remarked Daniel.

“This is encouraging the supply chain sector to enter the digital and smart age. Utilisation of intelligent systems and IT solutions, along with warehouse automation are ways to meet these challenges,” stressed Walid.

Frederic Zielinski, general manager of Swisslog Middle East, also emphasized the

importance of automation in the industry: “Automation in warehouses and distribution centres is growing in importance and is increasingly being used in the Middle East,” noted Zielinski.

“Market dynamics are changing at an ever increasing rate and complexity, and the trend toward automation has gathered pace, as investment in technology is viewed as a long-term benefit,” he continued.

Twintec, an international specialist design and build superflat ‘jointless’ concrete flooring contractor, will showcase the advantages of a superflat jointless floor slab compared to the traditional construction methods and demonstrate how a ‘jointless’ slab will improve the efficiencies of materials handling equipment within a modern logistics warehouse. “Twintec will demonstrate the innovative Co-sinus construction joint that enable smooth load transfer for MHE throughout a warehouse building,” asserted Ruth Waugh, International Business Development Director.

The Spanish Nefab Group, a global industrial packaging manufacturer specializing in complete packaging solutions that reduce their customers› total costs while minimizing environmental impact, is making its debut the Exhibition. “The Group is a leading provider of packaging solutions within the segments of Telecom, Energy, Industry, Vehicles, Healthcare and Aerospace and we are hoping to more than double our fledgling regional business in 2015 to $750,000 from the current $335,000 for 2014,” stated Manuel Larrotcha, export manager.

Another new highlight is the 1st Materials Handling Middle East Awards, where the industry’s heavy weights will be recognised and celebrated among industry peers, while returning this year is the highly popular Demonstration Zone, where Fork Lift manufacturers will reveal the true capabilities of their machinery action.

Logistics News ME | September 2015 | 49

A S I A S U P P LY C H A I N I N S I G H T S

HOW SUPPLY CHAIN DRIVES COMPETITIVE ADVANTAGE Supply Chains have evolved to reflect the increased complexity of world trade – highly competitive, super connected and changing fast, amidst a volatile global environment.

Mark Millar, author of Global Supply Chain Ecosystems, writes

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upply Chains are the arteries of today’s globalised economy – they enable the international trade flows that empower global commerce.

Supply Chains have evolved to reflect the increased complexity of world trade – highly competitive, super connected and changing fast, amidst a volatile global environment.

No wonder that Supply Chain has become an essential topic across all spheres of management and a strategic agenda item in every boardroom.

Twenty-first-century supply chains have transformed into world-wide inter-connected supply-and-demand networks with profound interdependencies and exposed to the vulnerabilities of our uncertain world. This has led to greater deployment of collaborative partnerships, frequently involving outsourcing and off-shoring, creating elongated networks encompassing multiple stakeholders. Consequently, supply chains have morphed into today’s multilayered, inter-woven distribution networks that enable companies and countries to trade more effectively.

Confirming how these networks enable commerce in an increasingly connected world, the Financial Times’ (FT) lexicon 50 | Logistics News ME | September 2015

describes how “businesses operate in a broader network of related businesses offering particular products or services - this is known as a business ecosystem”. They further define this as “a network of interlinked companies, such as suppliers and distributors, who interact with each other, primarily complementing or supplying key components of the value propositions within their products or services”.

From the supply chain perspective, Cranfield’s Dr Martin Christopher adopts an end-to-end view, articulating the supply chain as “the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer”.

This notion of networks is particularly important, with Dr Christopher

A S I A S U P P LY C H A I N I N S I G H T S

reinforcing the key message that modern supply chains are no longer simply linear chains or processes, “they are complex networks - the products and information flows travel within and between nodes in a variety of networks that link organisations, industries and economies”.

The linear concept of a chain is therefore no longer adequate to describe today’s complex international networks of suppliers, partners, regulators and customers – all collaborating to ensure the efficient and effective movement of products, services, information and funds around the world.

These extended multi-stakeholder networks continue to develop as supply chains have become progressively more global, complex and strategic - we are firmly in the era of Global Supply Chain Ecosystems!

CONNECTED SUPPLY CHAINS DRIVE COMPETITIVE ADVANTAGE In today’s complex connected world, supply chain is more and more recognised as a key source of competitive advantage and differentiation. Companies strive to build powerful supply chains that will enable them to get their products to market faster, more efficiently and more economically than their competition.

For many businesses – particularly those in high tech, consumer electronics, pharmaceutical and fresh produce - time to market and effective distribution channels are critical success factors, and therefore supply chain management competencies and capabilities are what drive competitive advantage.

In that context, there are exciting and evolving synergies between the supply chain and marketing functions, as together they become the principal business drivers for companies in the modern era. Each of them is both a functional discipline and a profession. Taking the broadest perspective of the two disciplines, these functions together embrace all of the mission-critical

business activities of a company, with IT, HR and finance playing important supporting roles.

With marketing comprising the four P’s of Product, Price, Promotion and Place and supply chain encompassing the five operational activities of Plan, Source, Make, Deliver and Return, then Logistics becomes the point of intersection and convergence the essential linkage between the Deliver function of supply chain and the Place (distribution) function of marketing.

Together therefore, supply chain and marketing are becoming the primary engines that drive the business – hugely influential in driving business growth, increasing market share and generating revenue and profits.

The Chief Marketing Officer (CMO) and the Chief Supply Chain Officer (CSCO) will become the most critical leadership roles to sit alongside the CEO and CFO in the enlightened C-suite of the future.

Supporting this concept that supply chain drives competitive advantage for your business, the FT lexicon explains how “Ecosystems also create strong barriers to entry for new competition, as potential entrants not only have to duplicate or better the core product, but they also have to compete against the entire system of independent complementors and suppliers that form the network”.

CONCLUSION Any chain is only as strong as its weakest link – and it’s the same with a supply chain, except that within a supply chain ecosystem the linkages are not consecutive and not linear; there are numerous multi-dimensional connections with profound interdependencies.

Nevertheless, the strategy of achieving continuous improvement through consistently and persistently working on strengthening the weakest link(s) still applies, and companies adopting such an approach will leverage their global supply chain ecosystem for competitive advantage in our complex, connected world.

EXCLUSIVE FOR LNME READERS Global Supply Chain Ecosystems is out now. Don’t miss this exclusive limited time offer. Buy Global Supply Chain Ecosystems direct from the Kogan Page website before 31 October 2015 to receive your exclusive 20% discount.

Simply go to www.koganpage.com/globalsupplychain, click buy now and enter discount. Mark Millar will also be available in-person during 13-15 September at Jumeirah Creekside Hotel in Dubai for on-site book sales (with your LNME 20% discount) and personal signing.

Mark Millar is the author of Global Supply Chain Ecosystems, commissioned and published by Kogan Page of London - in which he presents detailed and practical insights that help companies capitalise on market opportunities, overcome supply chain challenges and make better informed business decisions.

His series of ‘Asia Supply Chain Insights’ presentations, consultations, seminars and corporate briefings deliver practical knowledge and educated insights that help companies navigate the complex landscapes in Asia, improve the efficiency of their supply chain ecosystems, develop new business opportunities and make better informed business decisions.

Acknowledged as an engaging presenter who delivers a memorable impact, Mark has completed over 350 speaking engagements at corporate events, client functions and industry conferences across 23 countries.

A Visiting Lecturer at Hong Kong Polytechnic University, Mark is recognised in the ‘China Supply Chain Top 20’, as one of ‘Asia’s Top 50 Influencers in Supply Chain and Logistics’ and in the 2014 USA listing of ‘Top Pros-to-Know in Supply Chain’. www.markmillar.com Logistics News ME | September 2015 | 51

PROFESSIONAL PERSPECTIVES

WHY MULTI-TASKING ISN’T A VIRTUE

By Prakash ‘PK’ Menon We do it all the time. Making calls as we walk or texting as we munch our meals. Multitasking in the new normal. Multitasking a boon or bane? Experts have varying opinions—some encouraging others unfavourable. Prakash ‘PK’ Menon clearly belongs to the latter camp.

He explains why.

52 | Logistics News ME | September 2015

PROFESSIONAL PERSPECTIVES

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here are some people who pride in being multitaskers, and then there are some who firmly believe in focusing on a single task at hand. Most of us want to fall under the former category – after all, it makes you feel so good about yourself.

To think of, we all are great multitaskers in some way or the other. We can answer official mails while having breakfast with our family, we can write a report while helping our children with their home work or we can attend a conference call while boarding a flight. Unfortunately, multitasking isn’t a great skill to possess or be proud of.

A recent study by the University of Sussex indicates that multitasking robs you of your efficiency and can bring about 40% drop in your productivity. A shocking piece of news, isn’t it? But it’s true.

Multitasking is a myth. In reality, the cerebral cortex (a layer of our brain) can pay attention to only one thing at a time. When you are multitasking, you are shifting your attention from one task to another rapidly, reducing the quality of work and wasting time. So, far from saving your time, multitasking actually cuts down your productivity.

If you are a slave of your habit and can’t resist multitasking, here are six tips to get rid of this time-consuming habit to regain your efficiency and increase your productivity.

FOCUS ON A SINGLE TASK: Pick up only one task at a time and stay committed to it. It doesn’t mean, you ignore other work. However, choose one task and focus on it for a specific amount of time. Do remember to take a five to 10 minute break, to rest your mind before switching onto another task.

BLOCK OUT DISTRACTIONS: You would agree when I tell you that technology, even though beneficial, is also a devil. You will be surprised to know how much time chat apps, facebook posts and twitter feeds, phone calls and emails consume. According to this study, media multitaskers stand a risk of damaging the structure of their brains.

While working, put your phone on airplane mode or turn off the device notifications and close your email window. Also, put up a ‘Do Not Disturb’ sign while working. It tells people clearly that you are busy and do not wish to be disturbed.

FINISH RELATED TASKS TOGETHER: Answering your emails or texts as and when they arrive can be tempting, but can also shift focus from your important work. It’s better and more time-efficient to relegate answering them to certain periods or times of the day, for example, when you start work in the morning, at lunch time and again before leaving for home.

PICK A PLACE TO JOT DOWN YOUR IDEAS: Brilliant ideas don’t check time or convenience, they can hit anytime and anywhere. While writing an important email, building a report or during a conference call, if an innovative idea pops in your head, do not immediately start working on it. Instead keep a pad of sticky notes or a journal ready to park your ideas there. It needn’t be an elaborate thing, as it will consume time and distract you, but just a few words or a one-liner to help you remember your bright idea later on.

GROW YOUR ATTENTION SPAN: Often, we complain that children have short attention spans, but the truth is, adults are no less. However, you can increase your focus and grow your attention span by meditation. Meditating for 10-15 minutes daily can work wonders for your attention span.

LEARN TO SAY ‘NO’: Many people are bound by strong social obligations and find it difficult to say no when someone asks for help. Lending a helping hand is a good virtue, however, not at the cost of your time and productivity. Learn to say ‘no’ when you think that helping others will distract you from your important task. Remember, you are not saying ‘never’, but ‘not just now’. You can help them when you have finished the task at hand.

Changing old habits is hard. From time to time, you may find yourself reverting to your old habit of multitasking. Setting reminders on your clock, laptop or smartphone for every half hour or 20 minutes will help you get back to monotasking in case you have shifted focus.

Alternatively, you may even ask your colleagues or family members if you are working from home to remind you. Also, they may themselves refrain from distracting you.

Are you ready to challenge your multitasking nature?

Prakash ‘PK’ Menon Prakash ‘PK’ Menon is a supply chain expert, internationally acclaimed speaker, thought leader and mentor.

He is the executive director of Thought Leaders Middle East and has authored three books: Driven, Fail Smart and Supply Chain is Sexy.

“We can answer official mails while having breakfast with our family, we can write a report while helping our children with their home work or we can attend a conference call while boarding a flight.

Unfortunately, multitasking isn’t a great skill to possess or be proud of.”

Logistics News ME | September 2015 | 53

ADVERTORIAL : ROCKWELL AUTOMATION

ROCKWELL’S ITRAK MOTOR SYSTEM ACCELERATES PRODUCTIVITY iTRAK from Rockwell Automation is rewriting the rule books across multiple industries, thanks to its game-changing approach to servo and motion solutions. iTRAK offers users the ability to increases productivity significantly compared to traditional rotary driven chain solutions.

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here have been numerous technological and philosophical breakthroughs in industry over the past 100 years that have subsequently heralded a raft of new machines, procedures and applications. From the concept of the production line through early automation and the introduction of the integrated chip and onto the Connected Enterprise and Industry 4.0, the manufacturing industry has certainly not been devoid of important innovations.

Plenty of other new ideas have come and gone, with their longevity often being commensurate with the value that they deliver. Some technologies have successfully stood the test of time and it is these that are now seen as commonplace in the modern manufacturing environment.

One of these established innovations was the commercial development and subsequent introduction of electronically controlled servo and motion solutions, which soon proved their worth over traditional common-shaft, chain and 54 | Logistics News ME | September 2015

mechanical-cam applications. iTRAK’s modular, scalable linear motor system allows for independent control of multiple movers on straight or curvilinear paths.

Since its introduction, servo technology has undergone many changes and enhancements, as speed, load, inertia and accuracy have all been improved to the extent where it is hard to envision them getting much better than they are now.

Touted as a disruptive technology, iTRAK is indeed a whole new way of thinking about production flow, with end-users already reporting remarkably high productivity gains of at least 50%. Machine and equipment builders can reduce complexity and deliver higher performance, while allowing end users to achieve significantly higher productivity through increased speeds and flexibility.

All of these benefits are delivered on a standardised platform for better optimisation, improved reliability and faster system deployment.

The primary value it delivers in terms of speed is that it replaces mechanical parts with a magnetic field, this means that the production line can move at unbelievably high speeds, delivering a virtually limitless realm of possibility, resulting in improved productivity. The removal of mechanical components also slashes maintenance costs.

The modular structure of the iTRAK system delivers incredible flexibility as it allows for a multitude of different configurations. Much like a model railway or slot-car track, iTRAK’s Curve and Linear modules can be combined to create track systems of any length or shape to fit specific application needs, including those with limited internal real estate. There are three options for orientation – horizontal, vertical or stand-up – which deliver even greater flexibility for system design.

In operations iTRAK also reduces the downtime for changeovers as the movement profiles for each mover or sets of movers can be easily reprogrammed to match varying production runs and products. As well as delivering the agility that so many manufacturers crave, this flexibility also allows them to undertake shorter runs without such a big impact on yield and profitability. Indeed, such is the positive impact on productivity that the TCO (Total Cost of Ownership) is massively reduced and payback times can be typically be anything between just six and 24 months.

Although iTRAK is a technically complex product, it does not require mechanical engineers to learn new skills. Indeed, for such a powerful solution, programming remarkably straightforward. iTRAK can be programmed using Studio 5000 Logix Designer™ software, making it an integrated part of any control system. Each mover appears within the Logix program as a ‘Virtual Motion Axis’ making use of standard command instructions to deliver a system that can cater for product size changes, variable speeds and complex sequencing, without undertaking any mechanical changes to the machine.

In the packaging industry, iTRAK has seen action in collating machines where either the product or the packaging arrives intermittently. iTRAK simply accepts the packaged goods and can then transport the filled carton away without being hindered by the randomness of the input.

With iTRAK, companies can now achieve the market’s highest possible productivity per square metre. Rockwell Automation has replaced hardware with simple software that quickly boosts speed and flexibility and improves production efficiency more than any mechanically driven production line will ever be able to. In a traditional manufacturing belt the slowest process controls the pace; with iTRAK the fastest process now sets the pace.

14 – 16 September, 2015 Dubai, United Arab Emirates

The 8th edition of the International Exhibition for Intralogistics, Warehousing, Supply Chain, Ports, Port Equipment – Products & Services www.materialshandlingME.com

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FLOORING SOLUTIONS

MAGDI EL HAMMAMY

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rom the outside, a warehouse or distribution centre may seem more or less like a gigantic, uncomplicated box, but floor specification professionals know that internally there is an intricate beehive of complex activity taking place that can involve heavy equipment, expensive assets and fire risks.

To get down to the mat and to get the lowdown on flooring, Logistics News Middle East spoke to Magdi El Hammamy, the Dubai-based business development manager, Flowcrete Middle East, the regional subsidiary of the wider Flowcrete Group founded in the UK in 1982 by British designer Peter Gibbins.

The principal flooring requirement is that it provides a level and reliable surface for the movement of people and equipment, despite heavy loads and trafficking from hard rubber and steel-wheeled forklift vehicles that could quickly damage an insufficiently robust flooring system.

Should the floor finish fail then it instantly affects the safety and operational capabilities of the warehouse while at the same time lowering the building’s value and incurring high repair costs or the even more severe costs of a complete floor refurbishment.

“Resin floor coatings have become a popular choice for warehouse and distribution centres thanks to the ability of these solutions to provide a robust platform that can withstand the on-site challenges for an extended period of time while simultaneously providing additional operational benefits,” explains El Hammamy as he

enumerates the advantages of using Flowcrete solutions for better and durable industrial flooring solutions.

“Epoxy solutions are available that have been tailored to resist imposing loads, hard rubber and steel-wheeled forklift traffic while at the same time ensuring surface flatness. For environments that need a floor finish able to withstand the most intense working conditions, thick polyurethane coatings can be installed to ensure that the floor won’t deteriorate when faced with the site’s daily operational activity,” he adds.

As a general rule, the thicker the system the longer its service life and the better able it will be to withstand damage from heavy impacts, chemicals and extreme temperatures. This highlights the value of having a detailed knowledge of the site’s future use to avoid specifying a thin floor finish that will crack when faced with the reality of the building’s workload.

El Hammamy pointed out that many simple aspects of the working day could lead to an impact or wear-related floor failure. If the coating is a thin system, then a heavy impact could expose the substrate. This chip could become an area where oils, water, chemicals and greases can access the substrate and undermine the coating, causing mass delamination and serious hygiene problems.

“The floor’s impact resistance requirement should be tailored to the environment, the more chance and severity of impact, the thicker your floor coating should be to protect the critical

A 10-year veteran in the flooring industry, Magdi El Hammamy’s role as business development manager at Flowcrete Middle East is to maintain an involved relationship with clients during the procurement process, from the initial enquiry-tender phase, right through to project completion by Flowcrete’s network of approved applicators. This also includes site visits to ensure that the correct product is used to prevent the risk of resin floor failure.

Covering the GCC and MENA regions, Flowcrete Middle East offers clients a range of eye-catching and hardwearing resin floor coating solutions for a wide selection of market sectors.

Logistics News ME | September 2015 | 57

FLOORING SOLUTIONS

common. Aggregates can be broadcast into resin floor coatings to enhance its anti-slip profile while maintaining an attractive, seamless coating. The aggregate size can be customised to match the specific requirements of individual sites. Broadcasting aggregates into a resin floor also has the added benefit of increasing its durability and lengthening its longevity by creating a much tighter matrix.

“Having a lot of free floor area is not just about the size of the building, but it is also about how the floor area is utilised. Clever use of walkways, on-site navigation and workflow can all help warehouse facilities make the best use of the available space,” elucidates El Hammamy.

Some warehouse or distribution centres will be bound by regulations that require them to have clearly identifiable walkways and emergency paths as well as boundaries that must be kept clear for passage purposes. “Therefore bright and clear signage on the floor is ideal for meeting this requirement. The clever use of floor signage can even help to maximise the available floor space by marking out the best positions for entry, exit or storage,” clarified El Hammamy.

The vibrant colour of resin floors makes them aesthetically pleasing while also assisting with on-site maintenance by showing up dropped substances. Warehouse facilities can make use of the wide variety of colour options to differentiate between a building’s different zones.

In El Hammamy’s flatness critical, especially estimation, the Ultrawhen dealing with a highViolet resistance and ceilinged space where the resilience of resin systems Total flooring area safe operation of highmeans that the floor will designed and constructed lifting equipment is retain its crisp colour when

by Flowcrete Middle East paramount, as surface exposed to UV radiation. Its in 2014 unevenness can lead to excessive high abrasion resistance will vibration on a lift truck, especially even stop facilities having to worry when the trucks are moving at maximum about hot tyres leaving marks across the speed. With flat floors, health and safety is floor. increased while operator tiredness is decreased.

To avoid the potentially dangerous build up of The risk of damage to stock is also minimised, unwanted substances, the seamless nature of with no risk of racking collapsing as a result of resin floor coatings makes it easy to clean, uneven surfaces. reasoned El Hammamy. “Drainage systems can Having the right building design and safety be incorporated that work alongside the site’s fire practices is essential to avoiding accidents in suppression system so that the foam rapidly what can be a prime environment for serious flows away,” he opined. harm to come to employees or for goods in “When specifying the floor within a storage to be damaged if the area is not properly warehouse it is important to talk through all of managed. these points with the flooring supplier to ensure The slip resistance of the floor is key to that the chosen system will be able to withstand reducing the number of accidents. This can make conditions on-site while simultaneously a real difference in the areas where heavy foot providing safety, signage and longevity traffic and spillages of lubricants, oils and fuel is advantages,” concludes El Hammamy.

IN NUMBERS

bond layer where the coating meets the concrete,” he pointed out El Hammamy also cautioned on the need to adhere to set regulations and safety considerations. “Anticipated traffic loadings need to be particularly accounted for, as just a hand pallet truck when fully loaded could weigh in excess of one tonne. When repeatedly moved this will put a lot of pressure into the floor, especially over areas where it is being pulled in a tight turning circle,” he warned. The compressive strength of the floor system can be used to determine its suitability to the task at hand.

In the majority of warehouses, the need to make efficient use of the space often means reducing aisle widths, having high ceilings and selecting Very Narrow Aisle (VNA) racking systems. This in turn requires specialised VNA Lift Trucks or Materials Handling Equipment (MHE), which can reach heights of 18m or more. The clearance between the sides of the lift truck with the pallet it carries and the racking may only be 100-150 mm on each side.

According to El Hammamy, this makes floor

58 | Logistics News ME | September 2015

1M SQFT

UPS UPDATE

UPS PERFORMANCE HIGHLIGHTS Q2-2015 • International Operating Profit Jumps 17% • Export Shipments up 5.5% with Strong Intra-Europe Growth • Supply Chain and Freight Operating Profit Climbs 18%

UPS STRIVES TO MEET SUSTAINABILITY GOALS UPS has come a long way to deliver encouraging results in its continuing quest to lower emissions from its vast global fleet and thereby reduce its carbon footprint. It has also delivered good Q2, 2015 financial performance.

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he recently released UPS 13th annual Sustainability Report reveals the company’s growing investment in alternative fuel and advanced technology vehicles.

UPS accelerated its investment in an alternative fuel and advanced technology fleet of more than 5,000 vehicles last year, increasing the number of vehicles by 61% over 2013 and adding 1,100 natural gas vehicles. According to the report, UPS logged 154 million miles in 2014 toward its goal of driving 1 billion miles with the fleet by the end of 2017 – an almost threefold increase from 2013.

“It took 13 years to drive the first 350 million miles with our alternative fuel and advanced technology fleet,” stated Jean-François Condamine, UPS president, Indian Subcontinent, Middle East and Africa (ISMEA). “In just one year we were able to build dramatically on that number and we are now more than halfway to our 2017 goal.

With continued investments in this fleet, we are doing our part to help transform the transportation industry.”

UPS reported that 5.4%, or 25 million gallons, of its total gas and diesel purchased in 2014 was replaced with alternative fuels including natural gas, propane, ethanol, bio-methane, renewable diesel, and electricity. The commitment to alternative fuel and advanced technologies will allow UPS to reduce its annual use of gasoline and diesel 12% by the end of 2017.

The report also highlights two global trends facing the transportation and logistics industry: an increase in consumer e-commerce and growth in urbanization.

E-commerce shipments are typically business-to-consumer (B2C) and fewer packages per stop, compared to business-to-business (B2B) deliveries. This means carriers may be driving more miles and using more fuel to deliver fewer goods.

While e-commerce drove a 6.8% increase in package volume globally in 2014, UPS emitted fewer greenhouse gas (GHG) emissions per package, with total carbon emissions growing just 3.3 percent. The 14.1% reduction

in carbon intensity achieved since 2007 is equal to removing more than 380,000 passenger vehicles from the road for one year.

UPS FARES WELL IN Q2-2015 Meanwhile, UPS also announced its second quarter 2015 financial performance. All three segments—US Domestic Packages, International Packages and Supply Chain & Freight improved operating profit and margin. Operating profits improved $31 million, or 18% over the the same quarter 2014.

Operating profit increased $113 million during this quarter. “During the quarter, UPS expanded capacity and launched new capabilities that provide higher value to customers,” affirmed David Abney, UPS chief executive officer.

Operating profit increased $1.2 billion. Total company shipments increased 2.1% over the second quarter last year to 1.1 billion packages, led by US air products and International Export shipments.

Logistics News ME | September 2015 | 59

CROWN-ING GLORY Crown Lift Trucks has earned a reputation for its exceptional product design, engineering and manufacturing, from the smallest hand pallet truck to the sophisticated Turret stock picker truck. Now with the introduction of the newest in the Crown C-5 Series LPG-powered lift truck and its electric counterpart, the SC 6000 lift truck, the goal is to always provide the user with the safest, most efficient and ergonomic truck possible to lower total cost of ownership and increase efficiency.

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n New Bremen, Ohio, USA-based Crown Equipment Corporation – one of the world’s largest materials handling companies operating in over 80 countries and represented in the UAE by General Navigation and Commerce Company (GENAVCO) – develops, produces and markets a broad range of durable, sturdy, forklifts as well as automation and fleet management technologies. Crown recently launched its newest innovative C-5 Series of 60 | Logistics News ME | September 2015

gas-powered, four-wheel counterbalance forklift trucks.

The new series redefines the LPG-powered lift truck by incorporating a Crown-built engine and a rugged powertrain with a lifespan of up to 20,000 operating hours.

Advanced technology is evident in every detail – from the innovative, dual-radiator cooling system and ergonomic design through to the intelligent stability system, providing high reliability and productivity-

boosting efficiency.

“The sophisticated C-5 lift truck is a work horse designed to deliver outstanding performance from its high lifting capacities of up to three tonnes, working through the longest shift, rough terrain and extreme temperatures. Its 2.4-litre industrial engine is energy-efficient and produces minimal vibration,” affirms Asif Sayeed Khan, general manager, Genavco, part of the Juma Al Majid Group of Companies.

LIFT TRUCKS

The gear-driven valve train eliminates the need for frequent belt replacements or chain adjustments while the power brake enclosure prevents the build-up of dirt and debris, which reduces maintenance costs. The tough full-circle, four-piston braking system is highly durable and the hill hold function, fitted as standard, prevents the truck from rolling back down an incline – without requiring constant pressure on the brake pedal.

The creative cooling solutions also designed to prevent overheating and guaranteed to work for at least five years.

The Crown C-5 Series incorporates a powerful cooling system that efficiently cools the engine, enhancing the truck’s performance and extending the engine’s working life. The dual-radiator cooling system provides separate cooling for engine and transmission, in a design that minimises the build-up of debris and improves heat management.

The C-5 is also ergonomically designed and developed for operator comfort and safety. “Whether driving, turning, lifting, loading or unloading, operators can be sure the truck will handle every operation and manoeuvre easily and smoothly. The easyturn steering wheel and push-button onetouch electric park brake all make the truck a pleasure to drive,” opines Khan.

Additionally, a low counterweight, high seat, forward operator position, angled cross braces and open-mast design deliver exceptional visibility through 360 degrees – even trucks fitted with the unique fully enclosed cabin preserve this all-round view.

With clear-view doors, two-way sliding windows, front and rear wipers and a heater, the cabin offers car-standard driving comfort even in extreme outdoor weather conditions.

The Crown C-5’s other ergonomic features such as easy, rapid entry and exit, a spacious step and plenty of leg and headroom in the driving position are popular with operators.

According to Khan, the cabin is spacious, easy to access and well-built and the suspension seat ensures a smooth and comfortable ride. “The Crown C-5 is fuelefficient and its accurate, patent-pending fuel gauge keeps track of real-time, average and total fuel usage,” emphasizes Khan.

With dozens of options, attachments and accessories, the C-5 lift trucks from Crown have the most demanding and specialised applications, both indoors and out, Khan further pointed out.

CROWN SC 6000 SERIES

Another star has also risen in the Crown firmament. The company has also extended its electric counterbalance lift truck offerings with the launch of the Crown SC 6000 Series. The new three-wheel and four-wheel models, with capacities ranging from 1.3 to 2.0 tonnes and lift heights of up to 7.5 metres, offer a combination of stability, advanced technology and taskfocused ergonomics. The new lift trucks are capable of performing a wide variety of material-handling tasks in both indoor and outdoor conditions.

“The SC 6000 Series incorporates Crown’s proven ergonomics for operator comfort and control. For example, the low step height of 375 mm and head clearance make it easier to get on or off the truck. Furthermore, the truck design gives operators unobstructed views in all directions – even when fitted with one of many of the available cab options,” asserts Khan.

The partial cabin includes windshield, rear panel and roof with an optional reading light. The soft cabin features flexible doors with integrated magnets for weatherproof side protection. “Regardless of the cabin option chosen, operators’ freedom of movement remains unimpaired.

Thanks to a wide variety of other options – for controls, lighting, accessories and more – the lift trucks can be precisely configured to each customer’s specific needs,” adds Khan.

The solid design – including a robust chassis and a full-length, solid floor plate beneath the battery – keeps the truck in excellent shape in the toughest conditions

and the most demanding applications.

Crown uses steel instead of plastics where it counts. The steer axles feature massive steel/cast-iron construction and heavy-duty tapered roller bearings which enable the truck to withstand jolts as it travels over rough surfaces and dock boards.

Crown SC 6000 trucks are also fitted with high quality, heat-resistant drive motors that are designed to avoid the need to reduce the motor’s power output to prevent overheating. The in-house designed and manufactured motors incorporate the highest thermal ratings in the industry – an advantage that also minimises downtime, as well as spare part and maintenance costs.

The SC 6000 is also capable of thinking for itself remarks Khan. “The intelligent on-board control system delivers precise control, providing great stability and comfort. The system ensures that the SC 6000 maintains constant speed on ramps and assists operators by automatically adjusting the operation of control functions in correspondence to different load weights, lift heights, steering angles and travel speeds,” observes Khan.

Crown’s patented technology provides customers ease of service with dependable, on-board diagnostics in real time. The BTS 1000 battery transfer system, enables one person to change a truck battery in just three minutes claims Khan. “Crown supplies an all-encompassing concept that streamlines workflows and ensures sustainable, productive and profitable warehouse operations,” he concludes.

Logistics News ME | September 2015 | 61

COMMENT

HANDLING THE ROADS Lorraine Bangera, editor of Construction Business News ME, writes about Kuwait’s transport industry and the factors helping to drive change

C

onstruction beckons, as Kuwait dives into upgrading its transport sector.

The government’s investment in transport infrastructure will help lay the foundation for future growth. The coming years will see development in the state’s roads, seaports, airports, and rail, with the government giving top priority to development plans despite the challenges posed by falling hydrocarbon income. The country has focussed on its bridges and transportation infrastructure to mainly boost regional integration and decrease congestion on the infamous roads of the 54-year-old country.

According to a Ventures ME report, Kuwait will be investing approximately $6.2bn in a series of motorway construction projects, making Kuwait a hub for infrastructure investment in the region.

Major upcoming infrastructure projects aiming at changing the landscape of Kuwait include, the $2.6bn Sheikh Jaber Causeway due to be completed by 2018, $7bn Kuwait City Metro due to be completed by 2019, and the much awaited Al Jahra Road Development project which is due to be completed in 2016.

Al Jahra is expected to be one of the largMost projects have been taken to ease conest elevated road projects in the world. It ingestion and promote regional transport infravolves the construction of 17.7 km of segstructure. Al Jahra Road, for example, has mental viaducts, 0.62 km of depressed road, been one of the core transport routes runtwo roundabout bridges and 10 pedestrian ning through the heart of Kuwait. With exbridges. Local newspaper, Kuwait Times, recessive congestion, the Ministry of Public ported that this project is considered one of Works decided to undertake the Jahra the largest single infrastructure projects Road Development Project in the in Kuwait and one of the largest year 2010 with the objective projects of its kind in the of addressing the traffic Middle East. congestion and improving In late June this year the traffic safety. The minisministry’s undersecretary, Ventures ME report stated try has worked with Awatif Al-Ghneim, told that Kuwait’s contract Louis Berger Group and Arab Times that Kuawards in buildings and Arab Contractors Comwait’s pending traffic infrastructure sectors are pany to deliver the road congestion will be solved estimated to increase from project that will transby 2018 by which time $9.55bn in 2014 to form the simple three lane most of the road, highway $9.97bn in 2015. road into a grand and bridge projects in the unified highway. pipeline will be completed. As-

LORRAINE BANGERA

QUICK FACT

62 | Logistics News ME | September 2015

sistant undersecretary of the roads department at the ministry, Ahmad Al-Hassan told the same newspaper, that these projects are certainly taking into consideration two important factors: rising population and urban expansion of Kuwait. Two factors that has urged the government to put infrastructure development on the agenda in the first place.

As population in the GCC states rises, so does traffic congestion and road accidents.

A 2009 study predicted that traffic congestions and accidents would cost Kuwait $95bn the upcoming decade. The country was under scrutiny five years ago as the GCC country with the most road accidents.

Since then Kuwait has made an extra effort to change by intensifying its traffic campaigns along with the developments. This year, Gulf News reported that Kuwaiti authorities fined 45,553 drivers in one week for non-compliance with traffic rules.

Despite the interest in driving change and increasing development, latest report by Alpen Capital this year observes that Kuwait’s transport infrastructure sector needs to be taken up more seriously as even though there have been a lot of opportunities coming its way, it has been taking a long time to see any changes.

The sector, primarily state-controlled, needs to take into consideration the long decision-making process taken for most projects. Alpen Capital states that these factors are probably leading to a delay in the development of new infrastructure including the new rail system, port, and other transport infrastructure.

That being said it is agreed by most experts including Alpen Capital that infrastructure is on the national agenda, expectedly growing by 15-20% this year driven by government attempts to enhance integration.

With rapid expansion plans, urbanisation and growth in population, Kuwait is bound to catch up with its infrastructure as the GCC turns into the new hub for trade and business.