OP-ED
TECHNOLOGY FOCUS
REPORT
Green transportation systems
Technology focussed future
EZDubai highlights growth of sector
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
THE RECAP
LOGISTICS FORUM 2022 The Logistics Forum highlighted topics such as 10-minute deliveries, supply chain crunch, sustainability, automation in warehousing and digital logistics
APRIL 2022
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
IN THIS ISSUE
22
36
38
LOGISTICS FORUM 2022 The Logistics News ME Forum 2022 which took place on 29 March at Sofitel Dubai The Palm saw 170 guests in attendance and 17 speakers participate in interactive and informative sessions
12 REGIONAL NEWS 18 INTERVIEW
A FORMIDABLE PARTNERSHIP Maynard Design recently acquired Transport Design Consultancy, the firm behind the Riyadh and Dubai Metros as well as the Abu Dhabi city street signage.
Edinburgh Business School, Heriot-Watt University Dubai, shares insights on the future of transportation in logistics
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36 OP-ED
GREEN TRANSPORTATION SYSTEMS Yousif Ahmed Al-Mutawa, CEO, Sharjah Sustainable City writes about sustainable transport alternatives to prevent the negative effects of transport systems on the environment
38 REPORT
EZDUBAI HIGHLIGHTS GROWTH OF SECTOR IN SECOND ECOMMERCE REPORT Mohsen Ahmad, CEO of the Logistics District, Dubai South
40 TECHNOLOGY FOCUS TECHNOLOGY FOCUSSED FUTURE Dr. Shereen Nassar, Global Director of Logistics Studies and the Director of the MSc Logistics and Supply Chain Management Programme LOGISTICS NEWS ME | APRIL 2022 | 3
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EDITOR’S NOTE
A
utomation, AI, blockchain, predictive analysis are some of the buzz words we keep hearing these days in the logistics and supply chain community. It’s these technologies that are setting the pace for innovation in logistics. The Logistics Forum held on 29 March, highlight this and much more and we’re so thrilled to be able to share that with you in this issue.
We also covered other equally important issues pertinent to the industry and can’t wait for you to read them. Whether it be warehousing, supply chains or sustainability, the dependency on technology is growing day-by-day to ensure efficiency and accuracy. What we’ve learned from the forum is that technology is essential to the logistics industry and without it, the sector won’t be able to move forward and progress. However, as we try to limit human errors and intervention, we cannot forgo the human touch we give to the business. Freight has always been a relationship-driven business. We still need human beings to drive these technologies and machines. The service offered and the appreciation received or given cannot be compromised on. Let’s not forget there will always be a need for human interaction. Automation will always need a human touch. As we go forward, we look to hosting many such forums to learn more about the industry and interact with you face-to-face.
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REGIONAL NEWS
“As a team we are passionate about solving complex problems in the logistics industry by combining both Digital Twins & Extended Reality Technologies together.”
UPS, DUBAI CHAMBER AND DP WORLD HOST THE UAE SMART LOGISTICS CHALLENGE
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n support of UAE-based start-ups in the logistics industry, UPS hosted the third edition of the Smart Logistics Challenge series at Expo 2020, together with the Dubai Chamber of Commerce and DP World. The GCC logistics industry is evolving rapidly and is expected to grow by 4.3% between 2020 and 2025. The challenge for the industry is how to respond to global supply chain shifts, new customer expectations, and final mile models. As part of its commitment to supporting the growth of small businesses in the UAE, UPS hosted the challenge to give logistics startups the opportunity to spotlight their latest innovations. “UPS started with two bicycles and a USD100 loan. That entrepreneurial spirit is still alive in UPS today. As a company, we are passionate about small businesses and being a strategic and trusted partner for them. The smart logistics challenge is a great example of this, as it brings together the best logistics technology start-ups in the country, giving them the opportunity to potentially pilot their solutions with UPS, DP World or Siemens,” said Jean-Francois
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Condamine, UPS President for Indian Subcontinent, Middle East, Africa. Seven UAE-based start-ups presented their game-changing solutions in response to industry challenges, including real-time visibility, reliability, and predictability, last-mile efficiency, compliance, and others. Solutions ranged across the logistics value chain and incorporated artificial intelligence, augmented and virtual reality, warehousing, forwarding, and lastmile delivery. AR Engineering was declared the winner of the challenge and will be fast-tracked to a proof-of-concept (POC) discussion with UPS, DP World or Siemens. The UAE-based start-up deploys interactive Augmented Reality (AR), Virtual Reality (VR) & Mixed Reality (MR) Technologies to enhance training and operational processes in the logistics industry, among others. “We are very thankful to have been given this opportunity to present our solutions. To have the judges recognize the value and potential of our solutions is an honour. As a team we are passionate
about solving complex problems in the logistics industry by combining both Digital Twins & Extended Reality Technologies together. “Winning this Smart Logistics Challenge is a proud moment for the entire team. We look forward to further accelerating the growth of our business in the days to come, tapping into the expertise of global leaders such as UPS, DP World and Siemens,” said Akram Amir, Founder & CEO – AR Engineering. Natalia Sycheva, Sr. Manager of Special Projects and Entrepreneurship at Dubai Chamber of Commerce said the adoption of smart solutions in logistics is key to supporting the sector’s growth and development. She highlighted the important role that startups are playing in bringing innovative solutions to the market and enhancing its competitiveness on a global level, adding that the competition supports the Chamber’s efforts to engage the startup community across various sectors and encourage their contribution to Dubai’s economy. Abdulla bin Damithan, CEO & Managing Director of DP World UAE and Jafza commented “Recent supply chain disruptions have led to greater demand from our customers for new solutions to ensure cargo delivery and transparency. Imagination is key to meeting this. “The Smart Logistics Challenge is a chance for the brightest logistics technology start-ups in the UAE to showcase their solutions to the evolving challenges of our industry.” WWW.CBNME.COM
REGIONAL NEWS
DP WORLD CEO: SUEZ BLOCKAGE PUSHED BACK DELIVERY OF CARGO FOR MONTHS
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he ripple effect of Suez blockage in 2021 pushed back the delivery of cargo for months, prompting major changes at DP World,” His Excellency Sultan bin Sulayem, the company’s Group Chairman and CEO said at the World Government Summit (WGS2022) in Dubai. He added that reaction to this and other shocks is leading to greater supply chain innovation – such as unlocking potential in partner countries in South and Central America and Africa that will strengthen supply chain security and ensure economic benefit is distributed ‘fairly across the world’. DP World, which has over 93 terminals, has a “clear role to play” in everything from distributing vaccines to strengthening the economic recovery, according to H.E. bin Sulayem. It’s this drive to reach the “countries and people that need it
most” that is leading to increasing supply chain innovation. The CEO outlined how DP World’s World Logistics Passport, which helps countries from Asia, Africa and South and Central America diversify and boost their trade – drawing a direct line from Asia to Africa – has recruited over 100 partners and is giving emerging economies tools they need to enter the global trading system. “Today 60% of business in the Dominican Republic comes through us, and it is the only Latin American country with a free zone,” he said, adding that the UAE had also opened a dry port in Rwanda that totally disrupted trade to the landlocked African state. “It used to take two weeks to get there – now it takes one day, and the cost came down from USD7,000 a crate to USD2,800,” he said.
LOGISTICS NEWS ME | APRIL 2022 | 13
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REGIONAL NEWS
INDIA-UAE TRADE TO REACH USD250 BILLION BY 2030: PIYUSH GOYAL AT WGS
I
ndia’s Minster of Commerce said that bilateral trade between the UAE and India will reach a quarter of a trillion dollars by 2030. Commenting on the recent memorandum of understanding (MoU) signed between the UAE and India, His Excellency Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs and Food and Public Distribution and Textiles of India said: “Beyond trade, there are some unique
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dimensions to the relationship between India and the UAE. “You would be amazed by the enthusiasm and bonhomie we have seen since signing the MoU. We are looking at much more ambitious targets – something in the region of USD250 billion in bilateral trade by 2030.” He identified opportunities in several sectors, between the two countries during the ‘Accelerating the Global Economic Recovery Forum’ held at the World Government Summit (WGS2022). WWW.CBNME.COM
REGIONAL NEWS
UAE AND KUWAIT ESTABLISH VIRTUAL TRADE CORRIDOR TO ENABLE SMOOTHER PROCEDURES
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D Ports Group announced the signing of a Memorandum of Understand (MoU) with the Kuwait General Administration of Customs to establish a new virtual trade corridor between the UAE and Kuwait, under the supervision of Department of Economic Development – Abu Dhabi (ADDED). The signing took place in Kuwait following a visit by DED’s Logistics Committee, under the auspices of His Excellency Abdulwahab Al-Rushaid, Minister of Finance and Minister of State for Economic Affairs and Investments – Kuwait. It was signed in presence of His Excellency Dr. Matar Hamed Al Neyadi, Ambassador of the UAE to Kuwait, and was signed by Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, and Suleiman AbdulAziz Al-Fahd, Director of the General Administration of Customs – Kuwait. The MoU builds on existing cooperation between the UAE and Kuwait. Under its terms, Maqta Gateway, AD Ports Group’s digital arm will develop the new virtual trade corridor based upon its Advanced Trade & Logistics Platform (ATLP), under the supervision of the Department of Economic Development- Abu Dhabi, establishing new policies, procedures and systems integrations to support a virtual trade corridor that will further simplify and facilitate cross-border trade.
With the establishment of the new virtual trade corridor and implementation of integrated solutions, customs authorities in both countries will be able to access pre-arrival information for international cargo movements, making cross-validation of information significantly faster and promoting pre-clearance of goods. The MoU will also provide for accelerated procedures for expediting shipments of perishable goods, reducing dwell time at borders. The digital integration also has significant safety and security benefits, improving visibility for authorities over any possible risks associated with goods that move between the two nations, as well as reducing the inspection rate and simplifying procedures for authorisation holders.
LOGISTICS NEWS ME | APRIL 2022 | 15
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REGIONAL NEWS
FIRST SMART MOBILITY AND LOGISTICS SOLUTION LAUNCHED IN THE UAE
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UAE company, Barq EV, specialised in the field of smart mobility and logistics solutions, announced the official launch to start its business in the UAE. The startup is scheduled to provide its customers with an integrated package of products and services that contribute to enhancing the last-mile delivery experience. This initiative comes in line with the UAE’s efforts to support the growth of the logistics, transport, and eCommerce sectors in the UAE. During a ceremony, organised at the Emirates Palace Hotel in Abu Dhabi, the company indicated that it aims to address the delivery challenges of several industries such as e-commerce, logistics, and transportation of medical supplies through its environmentally friendly electric vehicles. Ahmed Suhail Faris Al Mazroui, the company’s co-founder, mentioned that the UAE has a proven track record, unmatched in the Middle East, in incubating innovative ideas and projects. This comes because of the government’s support for startups and emerging companies by providing the ideal business environment and technology incubators, as well providing the appropriate infrastructure to operate.” Meanwhile, Abdullah Abu Sheikh, cofounder and CEO of the company, said “the UAE, in order to achieve its vision 16 | LOGISTICS NEWS ME | APRIL 2022
and directives of its wise leadership in preserving the environment and implementing the concepts of sustainable development, supports all global efforts to promote the transformation towards an environmentally friendly mobility system. Abu Sheikh added that under the wise leadership and its guidance, Barq looks forward to continuing to work side by side with their partners to make Abu Dhabi the first city in the Middle East and North Africa region that adopts this pioneering system and deploys the most important modern technologies, promoting the sustainable, environmentally friendly transport sector, and positions the Emirate as a world leader in this field. Mazen Al-Jubeir, the company’s third co-founder, explained that the company is currently launching 3 different environmentally friendly electric vehicles that were designed and manufactured with materials that are compatible to the conditions of the Middle East and North Africa. Among the products is the “Rena Max”, an electric moped, which has been designed in accordance with international best practices and is equipped with safety and security systems that are in line with the company’s mission to preserve the health and safety of the rider. Al-Jubeir added that when designing the moped, the company ensured to include advanced electronic systems that
enable it to measure and record the data of the various trips made by the driver, which can be analyzed later to improve operational efficiencies of the trips. The moped is also equipped with a temperature-controlled storage box, allowing the rider to set the temperatures that are compatible with the nature of the items being delivered to the consumer. The company also launched the “Yas 1”, an autonomous drone that is equipped with cameras, transmitters and a sophisticated motor allowing it to fly long distances. It was designed with specifications and solid material that enable it to carry and deliver medical equipment and pharmaceuticals. The Yas 1 drone improves the speed and ease of transporting medical samples and supplies and helps with managing emergency situations by making urgent deliveries of items such as antibiotics, vaccines and others. This contributes to a reduction in occupancy rates in healthcare facilities and enhances the quality of their outputs. In addition, the company also launched an electric bicycle, the “Rena Lite”, which is designed to meet the requirements that match the needs of the company’s various customers. During the ceremony, Barq signed two MoUs, the first with the leading restaurant and food group “Americana” and the second with specialized automobile equipment global manufacturer “Motherson.” Under the first agreement, Barq provide a number of its vehicles to be used to transport and provide logistical services to Americana, while the company will proceed, based on the second agreement with Motherson, to build and deliver its products. Barq EV is the only commercial drone delivery service provider in the UAE. In December of 2021, the company was able to break two Guinness World Records by executing the longest flight of a drone for the delivery service at 13.584 km, and the longest non-stop return flight for a drone at 18.065 km. Barq EV was founded by ambitious entrepreneurs Ahmed Suhail Faris Al Mazroui, Abdullah Abu Sheikh and Mazen Al-Jubeir, with the aim to deploy and advance the concepts of using advanced environmentally friendly technology in the Middle East and North Africa region. WWW.CBNME.COM
REGIONAL NEWS
INDIAN AND UAE LOGISTICS FIRMS JOIN HANDS TO STRENGTHEN FREIGHT AND LOGISTICS MARKET
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he Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India has paved the way for a new era of joint economic growth and prosperity in the two countries. CEPA also improves mutual access to markets, enhances economic and investment opportunities and paves the way for broader prospects, said His Excellency Ahmed Mahboob Musabih, Director General of Dubai Customs and CEO of Ports, Customs and Free Zone Corporation. Speaking at the 3rd Edition of LOGIX India, in Dubai, supported by the UAE’s National Association of Freight and Logistics (NAFL), His Excellency said: “The agreement aims to raise the value of non-oil trade from USD40 billion annually to USD100 billion within five years, which creates tremendous opportunities for the business community and companies in both countries.”
Key logistics players in India and UAE utilised the three-day event, held at Hotel Le Meridien Dubai, to work out ways and means to improve the prospects of the freight and logistics market. “From strategic cooperation, it has also established tremendous opportunities in vital sectors such as trade, investment, hospitality, aviation and renewable energy and petrochemicals, noting that the UAE, thanks to its advanced and pioneering services, establishing its position as a major logistics gateway for the flow of international trade and investment around the world,” he said. Nadia Abdul Aziz, President of the UAE’s National Association of Freight and Logistics (NAFL) has suggested a logistics corridor apart from a trade corridor for which more investments should be made into sea freight between the two countries, so that logistics cost will be reduced.
Nadia said more synergy should be created between the Indian and the UAE freight forwarders, who will be the main strategic people who facilitate more trade between the two countries. “If a logistics corridor is created, the cost can be reduced, so also the food inflation if smart logistics is applied.” Omar Alkhan Abdulla, Director of International Offices at Dubai Chamber, said the target of USD100 billion can be achieved much before the five-year target if the trade is diversified and India rediscover itself. “Dubai Chambers has plan to open two or three more offices in India, apart from its one in Mumbai. With all these steps, we hope the target can be achieved much before five years. The LOGIX conference has helped in moving people closer,” he said. “Dubai Chamber, in collaboration with the Confederation of Indian Industry (CII), plans to increase the roadshows to help India rediscover it in different regions. We are also trying to attract more Indian companies and Indian multinationals and increase the trade and trade diversification,” he added. Humaid Bin Salem, Chairman, International Chamber of Commerce (ICC), UAE said: “The event is an ideal opportunity for the cargo and logistics organisations to meet and set targets as spelt out in the CEPA. The Indian logistics market is estimated to grow to USD380 billion in 2025 and the freight and logistics market in UAE will generate over USD31.41 billion in 2026.” Dr Ajay Sahai, Director General & CEO of Federation of Indian Export Organisations (FIEO) suggested to set up a permanent India mart in the UAE, on the same lines of China Mart in Dubai. “We want Indian products to be showcased in Dubai, so that we look beyond the UAE to market them in the entire GCC and Africa, as there are lots of buyers from Africa. They come to Dubai to placing orders, and not India. If Indian products are displayed here, they can place orders and we can back the mart with warehousing and distribution centres,” he said. LOGISTICS NEWS ME | APRIL 2022 | 17
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INTERVIEW
Julian Maynard, Managing Director, Maynard Design
“Once we realised how well we work together, we thought it’d be a natural fit to combine our experience of wayfinding branding and product design together to offer our clients a truly worldwide service and experience.”
I
A FORMIDABLE PARTNERSHIP Maynard Design recently acquired Transport Design Consultancy, the firm behind the Riyadh and Dubai Metros as well as the Abu Dhabi city street signage. We speak to Julian Maynard, Managing Director, Maynard Design to learn more about the acquisition and what this means for transport design in the region
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n March, Maynard Group has announced the acquisition of Transport Design Consultancy (TDC), a move to build a leading international transport design practice across the globe. With this merger, Maynard Design Group has become the most experienced multi-disciplinary design consultancy in the transport sector with over 400 projects delivered in 17 countries combined over the last 20 years, positively impacting over 3.5 billion journeys taken by people every year. “Tony Howard [founder of TDC] and I have known each other for over 25 years and have worked together on several projects including the Ashford International Railway Station in the UK,” Julian reveals. “We also worked on projects in Australia and New Zealand. Once we realised how well we work together, we thought it’d be a natural fit to combine our experience of wayfinding branding and product design together to offer our clients a truly worldwide service and experience.” Combined, the group offers services in branding, wayfinding and product design for the transport, aviation, public realm, culture, education, healthcare, commercial and residential sectors in the UK and Europe, as well as the Middle East, India, and Australasia. He adds: “Acquiring TDC is a huge step towards our ambition of offering our expert and technical services globally. Our focus on the interaction of people, places, and products together WWW.CBNME.COM
A FORMIDABLE PARTNERSHIP | JULIAN MAYNARD
with our locations of the UK, Australia and New Zealand fits naturally together with TDC’s transport and wayfinding expertise and long-standing client relationships in the Middle East and Asia. “Our shared values of collaboration, commitment and passion for detail and extensive wealth of technical skills and track record mean that, going forward, clients will benefit from a deeper level of understanding and experience coupled with a more comprehensive global reach. We are currently reviewing opportunities to expand into North America and Canada to offer clients our multidisciplinary and global expertise in transport.” With the merger complete, Julian is bidding on larger projects with a wider focus in the Middle East and Asia. He notes: “We’re looking at opportunities in Saudi Arabia and India, as well as biometric projects in mass transit.” Localisation and culture Maynard Design hopes to get a local team onboard to handle operations in the region. Julian is of the option that localisation in wayfinding is vital. “There is so much requirement for infrastructure around the world. It’s essential to understand the local culture and the needs of those users and working environments in those countries.”
“Connectivity is so important for the future sustainability of cities. Governments are trying to get people out of their cars and make the travel experience in public transport as convenient as possible.”
He adds: “And that’s why we try to work with people who are maybe from that country, or have direct experience of working in those environments, because I think people are more invested in the project if it’s their home city.” Wayfinding design complexities Speaking about complexities of wayfinding design for mass transit systems, Julian shares that the scale of public transport infrastructure has evolved to include multiple modes of transport in a single hub. He explains: Transportation hubs have gotten larger over years. It’s because of good planning. We no longer have a train station here, a bus station there, a metro and a cycle way or ferry line down the road. We’re now combing all these hubs into one at a central location which is accessible to all.” Transport authorities are now focusing on giving people multiple modes of transportation to choose from at a single location. He adds: “Connectivity is so important for the future sustainability of cities. Governments are trying to get people out of their cars and make the travel experience in public transport as convenient as possible.” This makes wayfinding design even more complex and critical to the success of mass transit systems. If the signage is not simple and clear enough for people to find their way, they >>> LOGISTICS NEWS ME | APRIL 2022 | 19
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INTERVIEW
won’t use public transport. Which is why understanding customer passenger experience throughout their journey, is important to Maynard Design. “What we do is we try and look at the touch points. Is it the ticketing? Is it a family with prams trying find a lift to get down to platform level? It’s all the of those different user groups that we have to understand when we’re designing a wayfinding system and designing products and interactions,” Julian explains. Wayfinding is just not about signs, he remarks. “Signs are just one part of it. Playing with environments or graphics, one’s understanding, and working with the architectural design teams on understanding that space is also wayfinding. We look into transforming a space, bringing in natural light so people can see the signs and the paths they want to take right away.” “Lighting is a crucial element of wayfinding,” says Julian. “People need to see where the elevators and escalators
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“SIGNS ARE JUST ONE PART OF IT. LAYING WITH ENVIRONMENTS OR GRAPHICS, ONE’S UNDERSTANDING, AND WORKING WITH THE ARCHITECTURAL DESIGN TEAMS ON UNDERSTANDING THAT SPACE IS ALSO WAYFINDING.” are. There’s a lot of different elements, which enables people to navigate through buildings. It’s not just about signs,” he reiterates. Planet first On the topic of sustainability, the company’s strength in designing global transportation networks saves millions of carbon emissions yearly. With its work in Dubai alone, through reduced car journeys the company has helped to save over 900,000 litres of fuel per day. Julian concludes: “Between us we have a huge heritage and track record, but we are also constantly innovating and significantly contributing to sustainability programmes. After all,
the projects we work on span several years, and then once delivered need to last several decades. “As such we are directly impacting billions of people who move through the places we have helped to design. These people will never fully know the energy and commitment we have invested in such projects to make their experience the best it can possibly be - but they are the core focus of ours from day one. With the Maynard and TDC teams coming together and by adding further insight and expertise as we continue to grow, we can go on steering the sector into the future and, in doing so, further enrich the lives of people, the journeys they take and the places they interact with.”
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THE RECAP
LOGISTICS FORUM 2022 The Logistics Forum highlighted topics such as 10-minute deliveries, supply chain crunch, sustainability, automation in warehousing and digital logistics.
22 | LOGISTICS NEWS ME | APRIL 2022
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The Logistics News ME Forum 2022 which took place on 29 March at Sofitel Dubai The Palm saw 170 guests in attendance and 17 speakers participate in interactive and informative sessions Logistics, as a whole, is undergoing a metamorphosis – moving away from manual processes to digitalisation. While the transformation was slow moving, the pandemic accelerated the process and today we’re witnessing a digitally empowered industry. The pandemic was a catalyst that unveiled how vital logistics is. Lifesaving medicines, vaccines and food was able to reach people thanks to logistics. However, this
disruption, caused by the pandemic, has created some positive and not so positive results for the industry. The Logistics Forum highlighted topics such as 10-minute deliveries, supply chain crunch, sustainability, automation in warehousing and digital logistics. It also presented an opportunity for the attendees to get acquainted with facts and engage in challenging conversations with speakers and fellow attendees.
LOGISTICS NEWS ME | APRIL 2022 | 23
LOGISTICS FORUM 2022 “Notorious for its heavy use of manual processes and large amounts of data stored in different ways and in different places, the logistics industry has perhaps the most to gain from implementing new technologies and following the most innovative supply chain and logistics technology trends.”
A TECHNOLOGY DRIVEN FUTURE A WORD FROM OUR KEYNOTE SPEAKER, MOHAMMED AL-MUDARRES, CEO, SAUDI INDUSTRIAL SERVICES CO
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ogistics can be traced all the way back to the Greek and Roman empires, but it has undergone several major transformations as new technologies provide opportunities to manage the movement and storage of goods more efficiently. 24 | LOGISTICS NEWS ME | APRIL 2022
In the digital transformation age, logistics is once again undergoing a major shift. This shift has been intensified due of the pandemic and a global rethink of international supply chains. Logistics technologies such as robotic warehouse systems make automation a reality,
while drones improve last mile delivery capabilities, and better tracking tools such as RFID tags improve visibility throughout the supply chain. Furthermore, technology innovations are making big waves across industries, and logistics and the supply chain may be one of the most impacted sectors. Notorious for its heavy use of manual processes and large amounts of data stored in different ways and in different places, the logistics industry has perhaps the most to gain from implementing new technologies and following the most innovative supply chain and logistics technology trends. As the world progresses, the top 10 technologies influencing the logistics industry are Internet of Things, artificial intelligence, robotics, last mile delivery solutions, warehouse automation, blockchain, big data and analytics, cloud computing, autonomous vehicles (AVs), and lastly elastic logistics. With customer expectations continuously on the rise and as interests shift towards product variety and personalized services, the logistics and supply chain sectors face mounting pressures. Moreover, advancements in emerging technologies, result in companies struggling to choose the most suitable technologies to invest in. As technology progress contin-
ues, it is important for companies to be proactive and identify potentially disruptive changes at an early stage. The need for inventory management and control is another area that will continue to expand to achieve the goal supply chain security for industries and governments. As the sector looks to sustainable solutions the need to develop solutions that protect the environment will become more and more necessary. The opportunities are almost endless as logistics moves into an exciting new phase in its growth and development in meeting. As a strategic developer and investor in key infrastructure sectors, namely, ports and container terminals, logistics and industrial services, and water solutions, we at Saudi Industrial Services Co (SISCO), are deeply invested in the future of logistics. We developed the first private sector bonded and reexport zone in Saudi Arabia. It was set up within the vicinity of Jeddah Port with a one million sqm of land providing both warehouses and open yard storage, serving key customers such as Amazon, Aramex, Unilever, and several regional and global key clients. Currently, we are in the process of developing an additional 600 sqm property as a special logistic hub in the city of Jeddah. WWW.CBNME.COM
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LOGISTICS FORUM 2022 PANEL 1 | INNOVATION IN TECHNOLOGY The logistics sector is undergoing a transformation with technology playing a crucial role. We look at how various technologies - blockchain, artificial intelligence, machine learning, big data & data analytics, automated solutions - are reshaping the industry to make it leaner and efficient.
“We spoke about the acceleration of innovation in logistics due to the pandemic, how we service different industries, and most importantly, how only by working together, we will be able to drive logistics forward. ” “The Logistics Forum at the Sofitel Dubai The Palm was an informative session. Participating and listening to other innovative, tech-driven organisations on how innovation is driving logistics forward was very insightful. Each panel member brought their own thoughts to the table and together we delivered the panel of the day. We spoke about the acceleration of innovation in logistics due to the pandemic, how we service different industries, and most importantly, how only by working together, we will be able to drive logistics forward. Look forward to the next one.”
“Logistics and supply chain are highly complex operations that have been behind the eight-ball when compared to the expectations of customer demand which is fuelled by the digitisation of the retail and parcel world. Through the pandemic a lot of the weaknesses of our (logistic and supply chain) ecosystem was exposed and that expedited the digitisation of it to address customer demand and to build scalability and resilience to cater to the needs of tomorrow. “As we keep making advancements and developing better systems, operations, and experiences for the customer, we are looking into adopting the next generation of digitisation through blockchain and other AI, hardware, mobility applications. Through consistent engagement with our customers, regulators, and internal employees we see us on the forefront of developing and deploying the systems and processes across our ecosystem.”
“Supply chain is one of the most complicated endeavours humans have ever engaged in and it takes place millions of times a day and affects everyone of us. As a provider of Robotic Process Automation (RPA) for Logistics, one needs to have the in-depth domain knowledge to create value and integrate with legacy industries such as logistics and supply chains. Having said that, I see logistics and distribution players catching up fast with the demand for software automation and other cutting-edge technology. The attention and budget allocation the above topic gets at C-Level, helps to encourage skilled tech players to come up with new solutions, and the drive for full digitisation. “Harnessing a combination of technologies like AI, machine learning, and predictive analytics allows companies to automate processes from rate inquiries over order creations to invoicing and improve partner relationships to create frictionless customer experiences that increase satisfaction and boost sales.”
ADEL HAMWI, CO-FOUNDER & CEO, PALLETPAL
ANGAD SINGH, GLOBAL DIRECTOR – INNOVATION, ARAMEX
CAROLIN-CARMEN NEUBAUER, CHIEF OPERATING OFFICER, FERO AI
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PANEL 1 | INNOVATION IN TECHNOLOGY
Adel Hamwi
Co-Founder & CEO PalletPal
Angad Singh
Global Director – Innovation Aramex
Karim Bakhache VP Head of Strategy Lyve Global
Mohamed Reza Vice President Shipsy
“The pandemic put logistics under the spotlight, accelerating its fusion with technology – and forcing the logistics industry to catch up. Currently, it is impossible to meet customer demands, let alone provide an excellent customer service without the digitisation of logistics. With customer expectations rising, and competition compressing delivery time – technology is expected to bring accuracy and reliability into operations. Businesses that digitise their logistics experience the multiple benefits of increased visibility into their last-mile logistics. Their customers can easily track their order, access delivery status and ETA without having to reach out to customer service. Since the driver is at the core of operations, technology must be as user-friendly and straightforward as possible for them.” KARIM BAKHACHE, VICE PRESIDENT STRATEGY, LYVE GLOBAL
“This is an exciting time for the supply chain and logistics industry as stakeholders rapidly realize the true potential of logistics transformation using modern technologies like AI, machine learning, predictive intelligence, blockchain, and more. AI is helping on-demand delivery providers, retailers, manufacturers, and logistics service providers build intelligent and self-governing logistics operations. For instance, it enables businesses to create highly efficient delivery routes, optimize capacity, enhance driver management, reduce carbon footprint, and drive costefficient selection of logistics partners. Then we have disruptive techs like predictive intelligence, helping logistics stakeholders build proactive supply chains by gaining critical insights into delays, exceptions, and emergencies. Blockchain will empower businesses and drive high levels of financial transparency and traceability. With demand for global trade skyrocketing, there is a need for supply chain stakeholders to ensure seamless B2B and international payments, and Blockchain will play a critical role here.” MOHAMED REZA, VICE PRESIDENT, SHIPSY
Carolin-Carmen Neubauer COO & Co-Founder Fero.Ai
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LOGISTICS FORUM 2022 PANEL 2 | WAREHOUSING IN THE SUPPLY CHAIN Warehousing has progressed in the past few years by becoming more purposeful, sophisticated, accessible, and automated. And it will continue to further evolve to suit our requirements as technology advances. Warehouses are no longer just storage rooms; they offer multiple suites of functions to accommodate the various needs of the user.
“We look forward to witnessing more high-bay automated warehouses to reduce operation costs and increase capacity, accuracy, productivity and safety.” “Warehouse automation has evolved in the past few years by becoming more strategic and necessary. Automating the warehouse is now a simple process and automated warehouses are environment friendly and sustainable. A word of advice to warehouse users is keep it uncomplicated, identify the obstacles and challenges in the operations, and ask the integrator to automate tasks. “As industry experts, we look forward to witnessing more high-bay automated warehouses to reduce operation costs and increase capacity, accuracy, productivity and safety.”
“Customer demand and expectations have evolved exponentially, and the region is catching up to implement technologies that can keep up with this demand. Delivery windows used to be one week or 10 days, now it’s down to an hour. Success is no longer measured by maximum capacity but rather by maximum fulfilment — maximising your velocity to the customer, delivering packages accurately and on time. “Therefore, the next evolution in warehouse automation technology is focused on increased standardisation to further reduce deployment times without compromising functionality. Automation helps with several operational issues such as achieving efficiency and productivity goals, dealing with stock-keeping unit proliferation, reducing errors and minimum dependence on human labour.”
“eCommerce is an area where we focus more on as we move into business-to-consumer (B2C), which puts more force on our warehouses and resources. This is where automation allows you to reduce the pressure by planning your volume better, managing deadlines and workforce, providing round-the-clock support, and preventing the cause of COVID-19 outbreak. “It is also closely associated with the Lean and CI methodologies we are applying across GAC Contract Logistics – Dubai business to ensure we offer our customers a lean supply chain. We are moving with the times. Companies struggle to keep their businesses running and plan significant strategic changes. Automation is making our supply chains far more flexible, agile, and localised as a complete end-to-end logistics solution, which will evolve further in the coming months and years.”
ATANAS KHAGERIAN, VP SALES (MIDDLE EAST & AFRICA), ACME
DAVID DRONFIELD, GENERAL MANAGER, SWISSLOG MIDDLE EAST
TREVOR STAMP, GENERAL MANAGER CONTRACT LOGISTICS, GAC DUBAI
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PANEL 2 | WAREHOUSING IN THE SUPPLY CHAIN
Atanas Khagerian
VP Sales (Middle East & Africa) Acme
Rami Younes
Chief Operating Officer ALS Logistic Solutions
“The logistics and supply chain industries are changing at a rapid pace, and front-end customer portals and last-mile delivery will only be able to do so much. The data revolution is here, and it is front and centre in this industry. Customers’ expectations are exponentially changing, moving from multi-day delivery windows to two-hour deliveries and we are even seeing 20 minutes delivery times. We cannot forget that accuracy and efficiency are what make or break a deal. For that to happen successfully, companies need to invest in the right warehouse automation for their needs. “Warehouse automation has advanced to cope with these demands, modernising warehouses from endless aisles of static shelving and manual processes. The technology is there and improving all the time. From fully automated storage and retrieval systems, high throughput sortation systems, and guided picking modules, all managed intelligently with very advanced warehouse management systems.” RAMI YOUNES, CHIEF OPERATING OFFICER, ALS LOGISTIC SOLUTIONS
David Dronfield
General Manager Swisslog Middle East
Trevor Stamp General Manager, Contract Logistics GAC Dubai
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LOGISTICS FORUM 2022 PANEL 3 | SUPPLY CHAIN WOES While the pandemic was a catalyst that rattled the supply chain sector, experts are of the opinion that this was trouble in the making. Numerous factors contribute to this problem. But the shipping network shows no respite – supply chains continue to find itself in a logistics knot, ports face a never-seen-before congestion and shipping rates are yet to fall. What is the solution?
“Logistics and supply chain disruption is caused by factors internal and external to the supply chain. The trend towards globalisation augmented the impact of disruption on supply chains and businesses considering the knock-on effect which we clearly witnessed with the COVID-19 pandemic. “Due to the increase in the sources of disruption, managing supply chains becomes riskier considering the related impact on business performance, continuity, and growth. Disruption exposes the vulnerabilities of supply chains that are driven by certain practices including extreme lean and cost-cutting, global outsourcing, economies of scale, and single sourcing. This is augmented by the outdated IT infrastructure, lack of collaboration, and new business models. Current supply chain lacks flexibility, visibility, and responsiveness which are essential for resilience.” DR SHEREEN NASSAR, GLOBAL DIRECTOR OF LOGISTICS STUDIES, HERIOT-WATT UNIVERSITY
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“Supply shortages are due to various reasons including port congestions, delay in shipping, vessel availability and geo-political reasons. ” “Disruptions to supply chain always happen when there is a misbalance between the demand and supply. When the pandemic hit us, there was a sudden drop in the demand, so it caused disruption. Last year, as we were coming out of the pandemic, there was a sudden spike in demand which caused even bigger disruption since there is simultaneously a shortage in the supply. Supply shortages are due to various reasons including port congestions, delay in shipping, vessel availability and geo-political reasons. “Some of the steps that can be taken to counter the disruptions are going local by having a combination of global and local sourcing, increasing dependence on local and regional products where possible, having agile supply chains, better planning, and digitisation.”
“The industry has been fractured since long before the COVID pandemic came to town. Let’s be honest, archaic practices, outdated infrastructure, and a lack of investment in certain areas has led to gaping holes that have, in effect, let water in and started to sink the ship. “In the Middle East we’re quite lucky. The pandemic has been handled well by governments, there’s an abundance of new infrastructure and a work force that are willing to get out of bed in the morning to put in more than a full day’s work. Dubai is what I would describe as a bouncy ball. The harder something drops in Dubai, the quicker and the higher it bounces. “Whilst technology can play a humble role in the road to recovery with new developments in AI and blockchain, it’s not a quick fix and still requires human oversight. Not one lifeboat is going to help the industry get back on the right track and it will take a combined effort together as an industry to bring her back up to full speed.”
KUNAL GUPTA, DIRECTOR - SUPPLY CHAIN, BATEEL INTERNATIONAL
SHEROD WALKER, FOUNDER & GROUP CEO, THE WATERFALLS GROUP
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PANEL 3 | SUPPLY CHAIN WOES
Dr. Shereen Nassar Global Director of Logistics Studies Heriot-Watt University
Zawahir Siddique
Associate Dean and Head of Blended Learning Westford University College
“Looking ahead, supply chain management will continue to be relevant even as it adopts the technological disruptors of today.”
“Supply chain management has grown over the years from a transactional unrecognized function to a key contributor to the boardrooms across the globe, establishing key alliances with strategic vendors and adopting largely disruptive technology that has transformed its very complex and unpredictable sourcing cycle. “Supply chain professionals of this century are required to procure intelligently and anticipate global disruptions beforehand. Negotiation skills and contract management knowledge is also crucial in bringing about product and service value to the end user. “Luckily, the advent of artificial intelligence platforms with the capability to provide 360-degree business intelligence, buyers and logisticians are provided with information on demand and sourcing capabilities that can advise professionals with an entire suite of information - from vendor compliance data to port congestion and container availability trends. “Machine learning, arguably a subfield of artificial intelligence has created the space for supply chains to shift to omni-channels, an integrated network that connects social media platforms that track consumer activities and consistently and asynchronously, support their demands. “Looking ahead, supply chain management will continue to be relevant even as it adopts the technological disruptors of today. Reducing carbon emissions and addressing return management due to increasing online transactions would also trigger a major paradigm shift in the supply chain domain globally.” ZAWAHIR SIDDIQUE, ASSOCIATE DEAN AND HEAD OF BLENDED LEARNING, WESTFORD UNIVERSITY COLLEGE
Kunal Gupta
Director - Supply Chain Bateel International
Sherod Walker
Founder & Group CEO The Waterfalls Group
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LOGISTICS FORUM 2022 PANEL 4 | SUSTAINABLE MOBILITY The logistics and transport sector are one of the largest contributors to carbon emissions on the planet. Are sustainable fuels, stricter emission standards, green infrastructure and fleet sharing the answers? What more can we do to lessen our carbon footprint?
“Transport emission have grown faster than those of any other sector over the past 50 years. And demand will continue to grow in the coming decades. There has been growing pressure from all stakeholders, both internally and externally to make positive and meaningful changes within the industry. “Recent accelerated growth in technological advances and innovation suggest a significant potential for such technologies to support sustainabilitybuilding efforts in maritime transport. To bring about meaningful change, it will take a collaborative effort from all parties. As a logistics provider, I have seen a growing interest from customers to mitigate CO2 where possible. And I believe that by introducing new and innovative solutions, optimising supply chains and implementing new technologies, this will give logistics service providers a tangible competitive advantage.”
“Environmental, social, and governance (ESG) criteria, which include sustainability, are crucial practices corporations need to implement. While most companies only implement ESG at board level and it doesn’t cascade down to operations. This is now changing, today businesses, especially logistics companies are taking sustainability seriously. For example, we, at SISCO, from 2021, included ESG compliance and participation in ESG programmes as a top priority for every department. Employee performance appraisal are also based on ESG and participation in ESG related programmes. This affects their annual bonus and incentives. “Such initiatives are necessary to ensure we make sustainability a priority not only in our businesses but in our lives too. Sustainability must be a part of our culture and must be driven top to bottom, that’s the only way it can succeed and yield some benefit to the organisation, the market and society.”
AYMAN KABBARA, MANAGING DIRECTOR, SCAN GLOBAL LOGISTICS
MOHAMMED AL-MUDARRES, CEO, SAUDI INDUSTRIAL SERVICES CO.
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“Logistic is vital for society and it is very important that it is sustainable. Within UD, we see sustainability with the big picture and not in one specific area. As key player in logistics, we want to be a Japanese leader in sustainability addressing the four sectors: environment, customer satisfaction, employees, and performance. “We see an urgent need to improve efficiency as trucks are still not used with full capacity and this is very important for the sustainability of our customer business. When it comes to the environment, we see multiple opportunities in the short- to mid-term: improving efficiency of the driveline and reducing fuel consumption will directly improve CO2 emissions. “For the mid- to long-term, electric battery vehicles would be an alternative for city distribution and short-range applications. Electric fuel cells with hydrogen would be the substitute for long haul/long range applications. E-fuels may be used on lower scale for some applications with internal combustion engines. >>> WWW.CBNME.COM
PANEL 4 | SUSTAINABLE MOBILITY
>>> “Ultimately, we all need to adhere to this sustainability journey, and we need to work jointly cross industries and between competitors to make a difference as this is a problem for the society as a whole.” MOURAD HEDNA, PRESIDENT, UD TRUCKS MEENA
Ayman Kabbara Managing Director Scan Global Logistics
Rob Mortimer
Founder & Co-owner BOOSTplus Biofuel
“We lead the discussion with a focus on what can and is being done right now to reduce emissions, fuel consumption and wastage in the logistics industry and what part technology can play in meeting the corporate and governmental goals being set.”
“It was lovely moderating a session on sustainability. We lead the discussion with a focus on what can and is being done right now to reduce emissions, fuel consumption and wastage in the logistics industry and what part technology can play in meeting the corporate and governmental goals being set. The questions being asked all over the world, how many of the initiatives being announced to the global market are just marketing soundbites from large enterprises who benefit commercially from their ESG positioning over smaller companies’ versus how much real action and work to reduce emissions filters down into the operations and whether there is much effort into calculating, verifying, and policing the sometimes over communicated promises. “There appears to be a convenience with making long term ESG statements of NetZero by 2030, but in most cases the actions for getting there don’t appear to match the marketing statements. One of the significant positives we have taken away from the presentations and panel discussions is that technology and digitalisation are driving efficiency, which in turn cut costs, delays, and emissions.” ROB MORTIMER, FOUNDER & CO-OWNER, BOOSTPLUS BIOFUEL
Mohammed Al-Mudarres
CEO Saudi Industrial Services Co.
Mourad Hedna President UD Trucks MEENA
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LOGISTICS FORUM 2022
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OP-ED
GREEN TRANSPORTATION SYSTEMS
Yousif Ahmed Al-Mutawa, CEO, Sharjah Sustainable City writes about sustainable transport alternatives to prevent the negative effects of transport systems on the environment
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he UAE continues to make strides towards achieving its 2050 net zero goals, initiatives ranging from shifting to low-carbon energy to adopting green transportation methods as the country formulates specific green measures and timetables to fulfil its goals. Undoubtedly, transportation has significantly contributed to elevating the level of air pollution which has consequentially resulted in a mounting concern about the detrimental effect of transportation on the environment and social sustainability. 36 | LOGISTICS NEWS ME | APRIL 2022
In many ways, global warming and modern transportation go hand in hand. The life-changing technological advances that resulted in new modes of travel are the same technologies that have contributed to the wide-scale pollution of the planet. As machinery began to replace manual labour, the use of fossil fuels, such as coal and oil, for power increased, making the transportation sector the second major source of greenhouse gas emissions. WWW.CBNME.COM
GREEN TRANSPORTATION SYSTEMS | YOUSIF AHMED AL-MUTAWA
Yousif Ahmed Al-Mutawa, CEO, Sharjah Sustainable City
The challenge is to promote healthy and sustainable transport alternatives to prevent the negative effects of transport systems on human health. An important way to do this is to ensure that health issues are clearly on the agenda when transport plans are being formulated especially at the design stage of any sustainable infrastructure which is of vital importance in rural and urban areas. SUSTAINABLE ROADWAYS Similar to sustainable developments, which are being designed to be more resource-efficient and longer lasting, there are also methods to build roadways to be sustainable, resilient, and benefit the surrounding community and ecosystem. This includes integrating land-use and transport planning which both are key
in enabling activity to help reverse the trend toward automobile-based urban sprawl by starting with what is called a ‘green infrastructure’. A green infrastructure should integrate health, environment and other social concerns which requires high-level commitment to intersectoral cooperation, from the power grid to water management to traffic and transit that should be upgraded to support lower emissions and better air quality. In addition, infrastructure designs and urban landscaping should set the footprint for a diverse ecosystem, support urban farming, and green mobility. In the recent years, GCC countries have directed their efforts towards adopting smart mobility technologies creating advancements in logistics practices, transportation system efficiency and environmentally friendly urban mobility. NEW PLANNING PARADIGM This is where the retrofitting and redevelopment to smart green cities is crucial as it illustrates a new planning paradigm for sustainable transportation that incentivizes communities to use environmentfriendly and energy-efficient modes of transportation such as electric- and hybrid-powered vehicles, vehicle sharing,
and micro-mobility such as scooters and bicycles. The objective is to reduce the carbon footprint of transport, mitigate the negative effects of land uptake and fragmentation, and boost opportunities to better integrate land while keeping social, economic, and environmental sustainability at its core. Sharjah Sustainable City has been at the forefront in the development of sustainable mobility solutions such as having an extensive network of walking and cycling paths to promote an active lifestyle and clean mobility. This includes 11.8 kms of rubberised jogging tracks, 1.6 km cycling tracks, 8.4 kms of pedestrian sikkas, smart charging stations and driverless EV shuttle; all presenting a working model of how cities of the future will look, with TSC in Dubai as a great success story to follow and improve upon with community farming, shared sporting facilities and open areas. The development of sustainable cities with a green infrastructure can create opportunities for sustainable and green mobility systems that in return will have significant effect on the economy, environment, and communities while building long-term resilience and growth for the UAE. LOGISTICS NEWS ME | APRIL 2022 | 37
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REPORT
Mohsen Ahmad, CEO of the Logistics District, Dubai South
EZDUBAI HIGHLIGHTS GROWTH OF SECTOR IN SECOND ECOMMERCE REPORT
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he UAE eCommerce sector continued to show growth in 2021 based on the recent report launched by EZDubai, in partnership with Euromonitor International. Total e-commerce in the UAE, reached just over USD5 billion in 2021 and is anticipated to surpass USD8 billion by 2025. According to the report’s findings, more consumers in the UAE made online purchases across all categories during 2021 compared to 2020, with an average 75% of respondents typically purchasing online. The fastest-growing sectors by industry from 2021 – 2025 will be homewares & home furnishings, food & beverage, and media products. Countries in the Middle East are in a strong position to enable further eCommerce development thanks to high GDP per capita and internet penetration. The UAE and Qatar are in the strongest position, with GDP per capita above 38 | LOGISTICS NEWS ME | APRIL 2022
USD40,000 and internet penetration above 90%. Both countries have successfully implemented fiber access in homes and have the highest active mobile-broadband subscriptions in the region. eCommerce in the MENA region is fast catching up with global powerhouses, such as China, with many online retailers scaling up services during COVID-19; by 2021, the total market size was estimated at USD31.7 billion. The expansion of eCommerce in the MENA region is mainly driven by strong internet penetration rates, high possession of digital devices, rising incomes, improving logistic advancements, and the increasing presence of global and recognized players that have brought variety and availability to local consumers amidst the pandemic. While the MENA is mostly a cash-based economy, after the pandemic, consumers shifted quickly to adopt credit and debit cards, driven by increased trust and the
improvement of company operations. According to the report, in the UAE, credit/ debit cards are the preferred method of payment. UAE consumers purchase from crossborder retailers to access a wider range of products or search for lower prices or higher quality products not offered locally. The UAE also has affordable shipping costs for consumers looking to purchase outside the region. The leading countries, which UAE consumers purchase from include the USA, India and China and are often related to apparel and footwear as well as beauty and personal care. Foreign e-commerce (UAE consumers purchasing outside of the country) is rising fast, from 23% of total eCommerce sales in 2019 to 26% in 2021; this is expected to rise to 32% in 2025. The MENA is an active region for attracting local and international investments in e-commerce. With the current pace of developments and growing consumer preference for online retail, the region will see e-commerce growth of over USD18 billion in absolute value terms over 2021-2025 reaching over USD49 billion in 2025. In his comments, Mohsen Ahmad, CEO of the Logistics District – Dubai South, said: “We are pleased to launch the second e-commerce report in partnership with Euromonitor and share the latest insights on the sector with our stakeholders. “The growth of eCommerce that is witnessed in the UAE and the MENA region encourages us to work harder and closer with our e-commerce players in order to boost the sector, so that the emirate’s e-commerce market becomes a global powerhouse.” He added: “The relentless government support as well as the services and solutions that we tailor for our clients to fulfil their objectives, are key factors in the advancement of the sector. At EZDubai, we will continue to cater to the rising demand that comes in tandem to the growth of online buyers and internet penetration.” WWW.CBNME.COM
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TECHNOLOGY FOCUS
TECHNOLOGY FOCUSSED FUTURE Dr. Shereen Nassar, Global Director of Logistics Studies and the Director of the MSc Logistics and Supply Chain Management Programme - Edinburgh Business School, Heriot-Watt University Dubai, shares insights on the future of transportation in logistics
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report by the United Nations Conference on Trade and Development (UNCTAD) stated the market for frontier technologies (a group of new technologies that take advantage of digitalisation) could grow to over USD 3.2 trillion by 2023. Technologies such as artificial intelligence (AI), the Internet of things (IoT), big data, blockchain, robotics, and drones all seem to have increased prominence across sectors. These technologies help with efficiency, productivity, and agility. Globalisation and trade are increasing, and novel mobility scenarios are evolving from new technologies and market
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entrants. However, a growing focus on sustainability and environmental impact has placed new restrictions on how companies operate. Additionally, from global sourcing and omnichannel demand to disruptive events and ever-rising consumer expectations, logistics features so many complexities that it is imperative for technology to be embedded within the industry. With intricacies come challenges, especially in the transportation and logistics sectors: importers are expected to find competent and inexpensive ways to move goods from manufacturing facilities - to distribution centres and then, finally, into the hands of consumers. WWW.CBNME.COM
TECHNOLOGY FOCUSSED FUTURE
With the easing of restrictions and a visibly downward COVID-19 trend the industry’s growth is evident. According to Reportlinker.com the freight and logistics market in UAE is expected to reach USD 31.41 billion in 2026 growing at a Compound Annual Growth Rate (CAGR) 8. 41% between 2021 - 2026. The report also states that the UAE freight and logistics market has been growing steadily, mainly driven by the consistent and fast growth of e-commerce across the globe and the region along with rising international trade. While all of this has created a great need for the inclusion of technology, the transportation and logistics sectors can by far be the most benefitted by it. AUTONOMOUS VEHICLES AND DELIVERY SOLUTIONS The introduction and combination of artificial intelligence (AI), machine learning (ML), and automation have provided means for the logistics transport industries to give convenience a new dimension. Capable of almost completely independent transportation of goods, the use of self-driving or autonomous vehicles (AV)
for delivery is here and will stay. AVs along with drones and 3D printing - also known as additive manufacturing - are among emerging technologies working towards resolving the challenges of last-mile deliveries. These solutions can be integrated into local crossdocking centres with urban freight systems for collecting and receiving goods. These solutions are still lacking the necessary regulatory frameworks. Additionally, there has been a major shift in the way activities are undertaken due to the pandemic. It has pushed for safer operations and for that rapid development of contactless solutions became a priority across industries, with logistics being one of the former sectors. In addition to safety, autonomous vehicles support improved operational efficiencies, autonomous trucks and vehicles can help lower freight costs, improve truck utilisation, reduce logistics costs, improve fuel efficiency —reduce delivery times. CLOUD-BASED TRANSPORTATION MANAGEMENT SYSTEMS Transport Management Systems (TMS) are becoming increasingly significant in
Dr Shereen Nassar, Global Director of Logistics Studies, Heriot-Watt University
the supply chain. Solutions are now moving towards cloud and a growing number of firms are migrating their existing TMSes towards cloud systems with considerable investments made into these systems. As a working system, TMS, in itself, is one of the most important investments for an organisation as it uses technology to help firms plan, execute, and optimise the movement of goods, and making sure the shipment is compliant with proper documentation. The introduction of cloudbased systems has taken TMS a step further as it automates manual tasks allowing more streamlined workflows and increased efficiency. It only requires an active and strong internet connection by which the system is accessible from anywhere globally, even
remote locations. Furthermore, it consolidates data from multiple internal and external sources allowing for transparency and greater visibility. Additionally, the advances in cloud computing and Internet of Things (IoT) have provided a promising opportunity to address the challenges caused by the increasing transportation problems. Transportation Management System Market is expected to grow at a CAGR of over 10.85% during the forecast period (2021- 2026) compared to 9.8% for the forecast period (2015 – 2022) which has not considered the COVID-19 impact. NEAR-FIELD COMMUNICATION Another technology revolutionising various industries is near-field communication (NFC). >>> LOGISTICS NEWS ME | APRIL 2022 | 41
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TECHNOLOGY FOCUS
Majorly used in payments to make them contactless, NFC has gained prominence in the past few years due to the need for safe payment requirements. But its implications for supply chain management, especially when combined with the internet of things (IoT), could become just as conventional and potentially even more disruptive. NFC facilitates electronic devices, including mobile phones and payment terminals, to communicate with one another for payment and other related transactions. With transport networks increasingly becoming interlinked – given that multimodal travel and transit network connectedness emerging as a trend, NFC’s can increasingly support easy transportation and transit payments. Enabling millions of smart devices in the marketplace to act as contactless tickets or transport cards working seamlessly with public transport operators (PTO) and mobile network operators (MNO), this innovative integration is revolutionising both the serviceability of technology and the overall travel experience.
accurate. GPS units used by firms today are also extremely versatile. The predict better routes that have less traffic, avoid congestions due to accidents or road closures, predict extreme weather conditions, and suggest better routes for faster delivery. GPS tracking enables the development of logistics mobility solutions to help you take control and monitor fleet vehicles and manpower. A modern mobile transportation tracking software can provide information that is critical cost assessment, excellent customer service and improves efficiency. Modern GPS business solutions allow companies to have a constant communication with the fleet. From rerouting to assigning an additional pickup GPS locators can support through the information they provide. Furthermore, visibility through tracking technology, adoption and adjustment for increased traceability support anti-theft GPS which allows receiving near time locations for the entire fleet and other items in transit.
Using advanced technologies that support efficiency, such as AI, ML and IoT can provide much needed solutions to minimise unnecessary travel times and delays. By optimising scheduling through cloud-based TMS to assigning low fuel using autonomous vehicles to using ecofriendly vehicles, and by using biofuel instead of fossil fuel – the industry can create a lasting impact on the environment. Technology is now forming the core of our world. Tech-enabled solutions are powerful and imperative in creating a faster, agile, and transparent logistics sector and transportation in logistics needs to be supported by advanced technology to further increase its value in the industry. The global logistics market is no more based on age-old solutions and systems, it has evolved exponentially and continues to forge new paths for which the industry needs to keep up with the latest solutions and capabilities.
NEXT-GEN GPS LOCATORS AND ANTITHEFT SYSTEMS While global positioning systems (GPS) have been around for nearly half a decade, it has become almost indispensable to individuals and certain businesses. The logistics sector has greatly benefitted from the invention which has become increasingly interactive, modern, and
SUSTAINABILITY AT THE CENTRE Above everything, sustainability forms a core aspect of future of transportation in logistics. The future of the industry needs to be environmentally friendly and energy efficient. According to PwC, carbon dioxide emissions from road freight transport have risen by more than 20% since 1995.
TECH-ENABLED SOLUTIONS ARE POWERFUL AND IMPERATIVE IN CREATING A FASTER, AGILE, AND TRANSPARENT LOGISTICS SECTOR AND TRANSPORTATION IN LOGISTICS NEEDS TO BE SUPPORTED BY ADVANCED TECHNOLOGY TO FURTHER INCREASE ITS VALUE IN THE INDUSTRY.
42 | LOGISTICS NEWS ME | APRIL 2022
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