REGIONAL NEWS

UPS, DUBAI CHAMBER AND DP WORLD HOST THE UAE SMART LOGISTICS CHALLENGE

In 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 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.”

“As a team we are passionate about solving complex problems in the logistics industry by combining both Digital Twins & Extended Reality Technologies together.”

DP WORLD CEO: SUEZ BLOCKAGE PUSHED BACK DELIVERY OF CARGO FOR MONTHS

“The 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.

INDIA-UAE TRADE TO REACH USD250 BILLION BY 2030: PIYUSH GOYAL AT WGS

India’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 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).

UAE AND KUWAIT ESTABLISH VIRTUAL TRADE CORRIDOR TO ENABLE SMOOTHER PROCEDURES

AD 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.

FIRST SMART MOBILITY AND LOGISTICS SOLUTION LAUNCHED IN THE UAE

AUAE 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 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.

INDIAN AND UAE LOGISTICS FIRMS JOIN HANDS TO STRENGTHEN FREIGHT AND LOGISTICS MARKET

The 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.