Logistics News ME - March 2019

Event review

Interview

Opinion

In-depth look into Breakbulk Middle East 2019

The importance of implementing asset management strategies

How digitization is transforming global logistics

Connecting trade professionals with industry intelligence

March 2019

The driving force

Interview with Henrik Ambak, Senior Vice President of Cargo Operations Worldwide, about the driving force behind Emirates SkyCargo

Contents

Contents

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Website: www.CBNme.com/logistics-news twitter: @logisticsnewsme Facebook: /LogisticsNewsME

March 2019

R e a d a l l t h e l at e s t i s s u e s o n I s s u u

Start 10 | News

Features 20 | Opinion 22 | Cover 26 | Event Review 34 | Talking Point 36 | Interview 38 | Generators 40 | Maritime 42 | Update 44 | Aviation

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46 | Supplier News 48 | Unsung Heroes 50 | Diary Logistics News ME | March 2019 | 3

Regional News

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E d i to r ’ s L e t t e r

M a r c h 2 019

A note from the editor Kasun Illankoon

CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Sales Director Joaquim D›Costa

I just wanted to touch upon the latest news regarding the A380.

As we all know by now it was announced by Airbus that it will end production of its A380 superjumbo passenger jet after failing to secure orders. Emirates, for example, following a review of its operations, and in light of developments in aircraft and engine technologies, Emirates is reducing its A380 order book from 162 to 123 aircraft. Emirates will take delivery of 14 further A380s over the next two years. As a consequence and given the lack of order backlog with other airlines, Airbus will cease deliveries of the A380 in 2021.

This story though brings to mind what could be ‘The Driving Force’ for success? In our cover story, we get an insight from Henrik Ambak, Senior Vice President of Cargo operations at Emirates SkyCargo, on how MAN Trucks & Allied Transport play a

crucial role in the success of the Emirates SkyCargo.

We also give an in-depth review of the recently concluded Breakbulk Middle East as industry leaders give their thoughts about the importance of the breakbulk sector. The event aimed to further solidify its standing as the leading GCC event for the project cargo and breakbulk industry.

Plus, how important is it to manage your assets? We interview Eyad Arafah, General Manager Assets Management Almajdouie Logistics, about his thoughts on the importance of implementing asset management strategies.

Kasun Illankoon Editor, Logistics News Middle East

jo@bncpublishing.net +971 50 440 2706

Senior Sales Manager Vishvanath Shetty vish@bncpublishing.net

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Manager Mark Anthony Monzon mark@bncpublishing.net

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Bespoke Logistics Project of the Year 2017

Domestic Logistics Service Provider of the Year KSA 2017

GCC Supplier Of The Year 2017 KSA Supplier Of The Year 2017

Regional News

Regional News A n u p dat e f r o m a r o u n d t h e r e g i o n Acquisitions

DP World acquires P&O Ferries

DP World PLC announces the acquisition of the holding company of P&O Ferries and P&O Ferrymasters (together P&O Ferries) for a purchase consideration of GBP322mn (USD421mn¹), implying a 2017 Enterprise Value/EBITDA valuation multiple of 6.1x.

P&O Ferries is a panEuropean integrated logistics business consisting of a market leading roll-on roll-off (Ro-Ro) ferries operation and a European transportation and logistics solutions provider, P&O Ferrymasters.

P&O Ferries operates a fleet of 21 vessels on the Short Sea, North Sea and Irish Sea sectors across 11 ports whilst P&O Ferrymasters provides 10 | Logistics News ME | March 2019

supply chain solutions in 19 European locations.

P&O Ferries handles over 2.5mn freight units per year which accounts for approximately 75% of group revenues. P&O Ferries reported FY2017 revenues of GBP1.1bn (USD1.4bn) and EBITDA of GBP100mn (USD131mn). The acquisition is expected to be earnings accretive from the first full year of consolidation and is expected to meet DP World’s return targets. On a proforma basis, DP World’s net leverage as of 1H2018 would be 2.96x Net Debt to EBITDA with this acquisition compared to the reported 2.91x.

The transaction is subject

to customary completion conditions and is expected to close in the first half of 2019. As the acquisition is considered a related party transaction under the DFSA Market Rules, DP World will comply with the relevant requirements of DFSA Market Rule 3.5.3.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, said: “We are pleased to announce the return of P&O Ferries back into the DP World family. P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio.

Importantly, P&O Ferries provides efficient European freight connectivity building

on last year’s acquisition of Unifeeder. This transaction is in line with our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler.

P&O Ferries has delivered a robust performance in recent years and we aim to drive further value through increasing efficiencies and offering value-added solutions to our customers.

Overall the transaction offers compelling value strategically and financially, and we look forward to P&O Ferries contributing to driving shareholder value in the coming years.” www.cbnme.com

M a r c h 2 019 Expansion

Continental sets up for significant Middle East expansion in 2019 2019 is set to be a promising year for the premium German tyre and technology company, Continental, with the opening of its first-ever office in Jeddah, Saudi Arabia.

Aimed to expand company’s presence and strengthen its foothold in the region, the new joint venture project is in partnership with Continental’s previous distributer in Saudi Arabia, Almutlak Trade & Industries, and will support the growing demand for Continental’s products and services in the kingdom.

The announcement has been made during an official gathering held earlier this month in Dubai, hosted by Nikolai Setzer, Member of the Executive Board, Tire Division, Continental AG, and Jon Ander Garcia, Regional Manager for Continental Africa & Middle East.

Commenting on the opening, Jon Ander Garcia, Regional Manager for Continental Africa & Middle East said: “The opening of the new office marks an important milestone for the brand not only in

Saudi Arabia but also in the Middle East. We believe this new partnership will allow us both to grow and to strengthen our relationship with Saudi Arabia, and the region as a whole.”

Building on the company’s legacy, Continental also celebrated the inauguration of its first warehouse facility in Jebel Ali, Dubai. The new warehouse will act as a hub connecting plants in Europe, North America and South America with the brand’s distribution partners in the Middle East.

Highlighting the significance of the development, Jon Ander Garcia, said: “The region has proven to be a key market for Continental since the establishment of the brand’s regional representation office in 2009.

With the inauguration of the firstever warehouse facility in the UAE, we are confident that our customers will reap the benefit of our premium services and enjoy seamless experiences.”

2019 will also mark the arrival of Continental’s

new digital tyre monitoring platform, ContiConnect.

Designed especially for commercial vehicles, the new platform helps fleets to maximise efficiency and send alerts if tyre pressure deviates from the defined value.

The introduction of ContiConnect follows the arrival in the Middle East earlier last year of ContiPressureCheck, a firstof-its-kind monitoring system for buses and trucks that continuously monitors tyre pressure and temperature via sensors placed inside the tyre.

Sanofi, inaugurated today its new logistics hub in the region at Dubai Logistics District.

It is set to be the one of the largest facilities of its kind in the Middle East pharmaceutical industry covering 2,740 sq ft.

Dubai-based Trustworthy. ae Group announces the groundbreaking of its first Inland Container Depot (ICD) and a third-party logistics facility in Khalifa Industrial Zone Abu Dhabi (KIZAD).

Quick news

Saudia Cargo, the global leader in air freight services, and Air Charter Service have signed a new business deal on the sidelines of the three-day Air Cargo Africa in South Africa.

Emirates will be showcasing its flagship Airbus A380 for two days at the first ever Saudi International Airshow. The display will take place on March 12th and 13th in Riyadh.

Logistics News ME | March 2019 | 11

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Regional News

Expansion

Etihad ESCO partners with Vision Invest to establish themselves in KSA

Etihad ESCO and Vision Invest has announced a new Joint Venture Company that has been established to provide fully integrated energy efficiency solutions for both the private and public sectors in the Kingdom of Saudi Arabia (KSA). The move is in support of KSA Vision 2030, wherein sustainability, conservation and efficiency are key themes in building a sustainable and efficient economy.

Under the direction of the Custodian of the Two Holy Mosques King Salman Bin Abdulaziz, on 25 April 2016 His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, the Crown Prince, Vice President of the Council of Ministers and Chairman of the Council of Economic and Development Affairs, outlined that the Kingdom of Saudi 14 | Logistics News ME | March 2019

Arabia’s Vision 2030 charted a roadmap for the Kingdom of Saudi Arabia’s development and economy objectives for the next 15 years.

The Shareholders Agreement for the new Joint Venture company was signed by His Excellency Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity & Water Authority (DEWA) and Mr. Mohammad Abunayyan, Chairman of Vision Invest (formerly ACWA Holding) at the Ritz Carlton Hotel in Riyadh.

On this occasion His Excellency Saeed Mohammed Al Tayer said: “This agreement supports the vision of the wise leadership in both the Kingdom of Saudi Arabia and the United Arab Emirates and contributes to achieving integration across all vital sectors through joint efforts to

support national and regional goals and common interests to enhance sustainable development. We are proud to form this alliance with Vision Invest to collaborate in the field of retrofitting integrated energy efficiency solutions,” Al Tayer added.

Mr. Mohammad Abunayyan, Chairman of Vision Invest, said: “We are proud to partner with Etihad ESCO to support the energy efficiency drive in the Kingdom of Saudi Arabia and to contribute to the achievement of the efficiency and sustainability targets set by Vision 2030 and the National Industrial Development and Logistics Program (“NIDLP”).

Vision Invest through its Joint Venture Company with Etihad ESCO is well-

positioned to support these objectives for the greater benefit of the Kingdom of Saudi Arabia.”

Mr. Ali Al Jassim, Chief Executive Officer of Etihad ESCO, said: “The partnership with Vision Invest will create and sustain a vibrant market for energy performance in the Kingdom of Saudi Arabia. As a Super Energy Service Company, Etihad ESCO enables the energy performance contracting market in Dubai and has retrofitted over 2,000 facilities achieving average savings of between 25% and 35%, which in turn has saved in excess of 88 Gigawatts of electricity, 246 Million Imperial Gallons of Water and abated more than 407,000 Tons of Carbon Dioxide emissions.” www.cbnme.com

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Rockwell Automation acquires Emulate3D

Rockwell Automation has acquired Emulate3D, an innovative engineering software developer whose products digitally simulate and emulate industrial automation systems. By using accurate simulation models to improve systems planning and decision-making, followed by emulation trials that test the control system before installation, Emulate3D’s software enables customers to virtually test machine and system designs before incurring manufacturing and automation costs and committing to a final design.

“We are excited about the opportunities that Emulate3D’s software offers our customers,” said Fran Wlodarczyk, Rockwell Automation senior vice president for its architecture and software segment. “They will have the ability to improve their time to market and operational productivity through digital machine prototyping and virtual commissioning. It also marks another investment by Rockwell Automation to bring the Connected Enterprise to life.”

“As a former Rockwell Automation Encompass partner, we established great working relationships with Rockwell Automation and its customers,” said Ian McGregor, Emulate3D global sales and marketing director. “We look forward to building on those relationships under our new ownership. Rockwell Automation’s installed base and our engineering software provides a great opportunity to better address customer needs in today’s rapidly changing, technologically-advanced manufacturing environment.”

Rockwell Automation will add Emulate3D’s technology to its digital design portfolio to deliver solutions to automotive, logistics, material handling, and other industrial applications. Software will be sold as Emulate3D by Rockwell Automation, as part of Rockwell Automation’s FactoryTalk DesignSuite.

Cargo

Saudia Cargo wins two International Awards at Air Cargo Africa 2019

Saudi Airlines Cargo Company won two distinguished awards at Air Cargo Africa 2019, held from 19-21 Feb. The two awards were the International Cargo Airline of the Year 2018 in Africa & the International Air Cargo Marketer of the Year 2018 both coming as result to Saudia Cargo’s efforts in intensifying its cargo capacity, fostering its operations & promoting innovative freight solutions, offering its widebody freighter capacity in addition to an ample bellyhold capacity on board Saudi Arabian Airlines.

Omar Hariri the CEO of Saudia Cargo expressed his thanks to the clients who trusted & voted for the company to win, also he thanked the panel of judges who recognized the company’s contributions to help uplift the industry standards

that benefit customers and other stakeholders in the supply chain.

Hariri noted: “Both awards manifest our sincere commitment to provide world-class service to our distinguished and loyal clients, it also further shows our resolve to continue improving our products and services and bring them to the next level.”

Hariri added: “Saudia Cargo is committed into helping Africa to reach out the global business community to improve its economies and the lives of its people through its world-class, safe and secure air transport service with magnitude products”.

Air Cargo Africa 2019 is the 5th biennial gathering of the global air cargo community to explore and strengthen networking corridors within the emerging markets of the vast African continent.

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Logistics News ME | March 2019 | 15

Regional News

Ports

Saudi Crown Prince Mohammed bin Salman inaugurates King Abdullah Port in KAEC His Royal Highness Prince Mohammed bin Salman, Crown Prince, Vice President of the Council of Ministers and Minister of Defense, officially inaugurated King Abdullah Port on Monday, 11 February 2019, during a visit to King Abdullah Economic City (KAEC). The visit came during a series of internal tours of projects located in the Kingdom’s provinces.

The inauguration ceremony began with a speech from the Minister of Transport and Board Member of the Economic Cities Authority (ECA), HE Dr. Nabeel M. Al-Amudi. He praised the Crown Prince’s visit and generous patronage of the official opening of King Abdullah Port, which is the first privately developed, managed and operated port in the Kingdom and region.

He said: “I would like to emphasize how important this national project is, and how the achievements we are witnessing today would not have been possible without Allah, followed by the government of the Custodian of the Two Holy Mosques and his support, patronage, and commitment to advance our beloved nation.”

Chairman of the Ports Development Company (PDC), Mr. Saleh bin Ladin, welcomed the Crown Prince, and expressed his honor in opening King Abdullah Port, which is owned and developed

by PDC. He commented: “King Abdullah Port has undergone major milestones 16 | Logistics News ME | March 2019

during its development, two of which represent historical moments in the port’s journey. The first was the nationwide leap that occurred when the esteemed Council of Ministers approved Vision 2030 under the chairmanship of the Custodian of the Two Holy Mosques, HRH King Salman bin Abdulaziz.

The second is the one we are witnessing today, as Your Royal Highnesses honors this port through its opening ceremony.”

He added: “We are looking forward to making King Abdullah Port a major logistics hub, and a key

driver in the Kingdom’s logistics sector by utilizing its geographical location on one of the most important trade routes in the world, in order to attract all types of investments to the Kingdom and increase the nation’s share of global trade.”

At the end of his speech, bin Ladin thanked the port’s partners, which include international shipping companies and operators, and government agencies working at the port. He also praised the important role played

by ECA, the government agency overseeing King Abdullah Port. He thanked

ECA for their efforts in enabling and supporting the port’s development work, in order to achieve strategic objectives and enhance its role in meeting the needs of the growing Saudi market, in addition to contributing to advancing the national economy.

After the speeches, honored guests watched a short film about the port’s development, followed by the announcement of MoUs signed by the port.

The event was concluded with the inauguration of King Abdullah Port by the Crown Prince. www.cbnme.com

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Quote The UAE’s logistics sector is gaining momentum as more and more startups are opening their shops and offering the latest solutions and services, tracking shipments on a real-time basis, beating turnaround time for deliveries”

Shailesh Dash, Chairman of Gulf Pinnacle Logistics on the rise of more tech-savvy startups express market.

Top 5 online

1

Saudi Maritime Congress 2019 conference to unlock future of shipping & logistics

2

Agility reports earnings increases by 18% for 2018 and 15% in Q4

3

Saudia Cargo signs joint agreement with King Abdullah Port

4

Breakbulk Middle East 2019 draws recordshattering attendance

5

Lagardère Travel Retail selects GAC Dubai as contract logistics partner in the Middle East

Initiatives

Masdar wins Mobility Management award for innovative transportation initiatives Masdar, the Abu Dhabi Future Energy Company, has received the prestigious Dubai Award for Sustainable Transport (DAST) in the Mobility Management category for its initiatives to promote walking and cycling at Masdar City.

Masdar’s Abdulla Balalaa, Director, Real Estate Development and Asha Pawar, Manager, Transportation, accepted the Road and Transport Authority (RTA) award during a ceremony held at the World Trade Centre in Dubai, where judges recognised Masdar’s efforts in promoting a pedestrian-friendly environment by focusing on non-motorised transport within Masdar City.

“Masdar is delighted to accept this award for its transport initiatives that put the safety and comfort of pedestrians first,” said Balalaa.

“Through our neighbourhoods, we aim to create a sense of connectivity and community that contributes to a healthier lifestyle for all our inhabitants and visitors. We hope that the success of these initiatives at Masdar City encourages other pedestrian-friendly and sustainable transport projects elsewhere in the UAE and the wider region.”

The Masdar City Master Plan focuses on creating a walkable environment as the basis for a sustainable and liveable community.

Throughout the city, pedestrian routes are shaded by trees and buildings, helping to create a microclimate in

which it is possible to walk and cycle comfortably for most of the year.

Held under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, DAST highlights initiatives aimed at enabling the UAE to develop an efficient, safe and environmentally sound transportation system.

Masdar City is a template for sustainable urban development.

Incubating real-world solutions in energy and water efficiency, mobility, agriculture and waste management, the city is now home to hundreds of businesses and thousands of residents.

A leader in the delivery of innovation and technology for sustainability, the city was the first in the region to implement autonomous vehicles with the arrival of the Personal Rapid Transit (PRT) system, which has successfully completed over two million trips since its launch in 2010.

In October 2018, Masdar launched the second phase of its autonomous transportation network with the unveiling of its first NAVYA autonomous vehicle. The official delivery marked the first operational implementation of such a mode of new energy transportation within the UAE, and also across the Middle East and North Africa region. A total of seven NAVYA vehicles will be delivered as part of the full implementation expected for completion in 2019.

Logistics News ME | March 2019 | 17

Regional News

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Supply chain

TSSC announces latest sustainable solutions for cold chain systems

Technical Supplies & Services Company (TSSC), a leading manufacturer of advanced building materials and systems in the Middle East and a member of Harwal Group, announced that its latest innovative technologies for the cold chain industry continues to gain traction, serving the ever-growing demand for energy-efficient solutions in the region in line with the highest international and environmental standards.

TSSC stated that the company’s solar technology for refrigerated trucks, eutectic plate systems and telematics technology are some of its latest innovation that are continuously enhancing the performance of cold chain systems.

18 | Logistics News ME | March 2019

Miro Donabedian, General Manager for Cold Stores & Refrigerated Trucks, TSSC, said: “TSSC capitalizes on its five decades of leading experience in the manufacturing of insulated panels for cold stores and refrigerated truck bodies, a reputation built on quality management systems that follow the highest international standards. We continue to invest in green initiatives that are in line with our commitment towards sustainable engineering in terms of design and production, including improving our operational processes guided by ISO 9001:2015 quality standards. As a leading regional player in the cold chain industry, TSSC holds a 40 per cent market share for

cold rooms and a 35 per cent share for refrigerated trucks and is working on innovative insulation products for cold storage and vehicle refrigeration systems. TSSC’s expansive manufacturing capabilities have enabled it to build the largest cold store project in the world in Mecca, Saudi Arabia with a total area of 1.6 million square feet.”

Nour Chawi, Division Manager for Refrigerated Trucks, TSSC, noted: “TSSC has been successfully testing products and fabricating vehicles of all types and sizes, equipped to transport dry goods as well as perishables such as dairy, poultry, meat, fruits and juices because we fully understand the challenges

faced by the food and beverage industry when it comes to transport and distribution of goods to their markets such as temperature leakage, costly maintenance, higher fuel consumption and inefficiencies in the delivery of products. We address these issues through innovation, which can save a lot of cost, translating to huge benefits to the bottom line and an increasing number of customers in the cold chain sector realize why it is important to adhere to standardization processes, environmental compliance and most especially, the value that TSSC can provide in following rigorous processes of quality tests.” www.cbnme.com

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Opinion

Opinion How digitization is transforming global logistics.

By Atif Rafiq, co-founder at Qafila

The digital revolution has brought change to industries of all kinds, and global logistics is no exception. With increased expectations from consumers for faster, more efficient management and transport of goods, logistics companies have turned to technology as a competitive differentiator and as a way to exceed challenging service level goals.

Whether in the form of connectivity, predictive analytics, faster processing speeds or smarter hardware and equipment, virtually every link in the supply chain can digitally connect to the other links at each point in the process. Logistics organizations are realizing

20 | Logistics News ME | March 2019

with increasing urgency that they can’t afford to slow down for the delays created by siloed systems and teams.

There are several major technologies currently making an impact on the ability of logistics providers to achieve better business outcomes across the entire supply chain.

Internet of Things (IoT) Internet of Things (IoT) is the ability for devices or objects to share data and connect to the internet. Anything from automobiles to refrigerators can be manufactured to have built-in connectivity and the ability to communicate with other

devices to send, store and utilize data.

Logistics organizations all over the world are recognizing an opportunity to use IoT to their advantage through intelligently connected supply networks and systems. IoT-enabled processes reduce the risk of accidents and inefficiency in tasks that pose a greater chance of human error. IoT also pairs connectivity with machine learning (discussed later in this article) to fuel faster, smarter processes and a fluid supply chain.

The result is lower operational costs and higher revenue. How? Through the implementation of repeatable, scalable processes that

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require very little human intervention and that can be further streamlined over time.

Does this mean that logistics professionals are working themselves out of a job by digitizing their supply chain organizations? Certainly not. Instead, they are freed from mundane, repetitive tasks to focus on strategic goals that have a direct impact on the organization.

Digitization is evolving traditional logistics roles to create new, strategic opportunities for the workforce. After all, just as technology is evolving, the workforce is too. Instead of viewing digitization as a competition of “robots versus humans,” modern logistics organizations are recognizing the need to protect themselves against labor shortages and keeping up with the demand for increasingly rapid order fulfillment; while simultaneously attracting new talent with specialized skills.

Blockchain Blockchain is one of the newest technologies to hit the digitization strategy. To define it in simple terms, blockchain is a distributed database containing “blocks” of information, which is transferred via a secure timestamp that cannot be altered. In other words, a blockchain allows a multitude of people (or systems) to enter data or records, which can only be updated or amended by an approved source. It is built to ensure the highest degree of accuracy and security possible.

For that reason, blockchain is an ideal technology for logistics organizations who must adhere to rigorous certifications and standards. The traditional bottlenecks of

third-party compliance checks are eliminated since all information is hosted in a public ledger, digitized, and protected from the risk of security breach or fraud.

As organizations adopt blockchain, they will naturally become more efficient, thanks to real-time tracking updates and the replacement of hardcopy documents with a smaller, more secure digital footprint that is far easier to manage.

Artificial intelligence and machine learning Although machine learning and artificial intelligence are often used as interchangeable terms, they differ slightly. AI is the overarching idea of machines completing tasks or processes in an “intelligent” or human-like way. Machine learning is the concept of giving machines direct access to data and allowing them to create efficient processes and solutions on their own, through the use of data analytics and algorithms.

While the concept of artificial intelligence (AI) has been around for several years, it is only recently that organizations have begun to put it to practical use. As AI becomes more accessible and affordable, logistics organizations are using it to harness big data, increase operational efficiency and lower cost.

As with technologies like IoT, Artificial Intelligence reduces the need for human touch in many day-to-day delivery and warehousing processes. By using predictive analytics, which gets “smarter” over time as more data is collected, AI works in tandem with machine

learning to mitigate risk and prevent the mismanagement of resources.

Predictive analytics can accurately forecast demand patterns, optimize route changes, and prevent potential bottlenecks along the supply chain that must be addressed before they have the chance to become an issue.

Many traditional logistics organizations are not suffering from a lack of data. The opposite is true. They collect massive quantities of data at each point in the supply chain but are unsure how to put it to good use. AI and machine learning collect both structured and unstructured data, weigh it against trends and patterns in the organization and anticipate business needs in time to make an impact.

Without artificial intelligence, organizations rely heavily on historical data, which must then be analyzed and dissected. By the time a potential risk or problem is recognized, it’s too late to change course. AI manages big data in quantities beyond the scope of human capability to identify efficiencies and solve problems before they can negatively impact operations.

Digitization will continue to change the face of logistics Digitization is empowering global logistics companies to view big data as an asset instead of just another complicated piece of the business to manage. It has never been easier for logistics teams to drive intelligent decisions with real-time data instead of stale, historical information that may already be irrelevant before it is even analyzed.

In today’s competitive logistics market, efficiency is a competitive weapon. The supply chain operates in real-time and data analytics must follow suit. By employing new strategies to digitally connect all points of the supply chain and supercharge processes with intelligent data, digitized global logistics companies will continue to drive down costs and maximize efficiency.

About the author Atif Rafiq co-founded Qafila with Jithin Manoharan to revolutionise the logistics and shipping industry and booking process. Atif Rafiq brings with him, tech-knowledge & technology, expertise and strategic relationships across shipping and logistics industry to transform supply chain, working across continents in Canada, UAE, Pakistan & Tanzania. His experience has made him more familiar with the expectation of the industry regardless of its boundaries, helping him to create Qafila to fill the need for digitizing and creating transparency in the shipping processes.

Logistics News ME | March 2019 | 21

C o v e r S to ry

The driving force b e h i n d E m i r at e s SkyCargo Interview with Henrik Ambak, Senior Vice President of Cargo Operations Worldwide

Emirates SkyCargo is now the second largest air cargo operator in the world, operating a fleet of freighters to over 40 destinations across six continents, next to its 260 passenger aircraft moving passengers and cargo between 158 airports. In total the company carried 2.6 million tonnes of cargo in 2017/18.

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Operating its freighter aircraft out of Al Maktoum International Airport (DWC) and its passenger aircraft out of Dubai International Airport (DXB), Emirates SkyCargo has by 1 August 2018 connected 1 million containers in just 4 years between the passenger and freighters fleet, making Dubai the

most successful two airport hub.

In order for operations to run smoothly, Emirates SkyCargo is equipped with the best facilities available to them, including a fleet of 49 trucks, which make around 375 trips per day between the hubs.

From the handling of agricultural goods,

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pharmaceuticals, to sensitive cargo, oddsized equipment, textiles and supercars, Emirates SkyCargo maintained high standards of service for our customers by investing in innovation and utilising advanced technologies such as SkyChain which enables customers to request services and trace their shipments in real-time.

In order for operations to run smoothly, Emirates SkyCargo is equipped with the best facilities available to them. In addition to that, there are two key players assisting Emirates SkyCargo in their daily cargo operations, Allied Transport and MAN Trucks.

Emirates SkyCargo operates between Al Maktoum International Airport (DWC) and Dubai International Airport (DXB). This is where Allied Transport plays a key role in ensuring that Emirates SkyCargo can connect between the two airports in ease. “What Allied Transport does for us is to connect our 2-airport hub. We have our freighters at DWC airport and our passenger fleet operating out of DXB thus Allied transport helps us to make that connection, along with local deliveries connecting DXB/ DWC with other UAE airports, explained by

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C o v e r S to ry

Mr. Henrik Ambak, Senior Vice President of Emirates SkyCargo worldwide.

Allied Transport Company (ATC) is one of the leading transport companies with the largest trucking fleet in the UAE market and the region. The company was founded in 1972 and ever since has been providing a caliber of service that is unrivaled within the industry. The company specializes in land freight transportation and haulage of all types of cargo.”

‘It is essential for us to have the transport provider that offers reliability, on-time performance and flexibility. This is especially important when you have unexpected flights and shipments that require flexible logistics and additional trucks to operate.

“The two airports are around 65 kilometers apart, meaning that to date we have covered an estimated 19 million kilometers – the equivalent of travelling to the moon and back twenty-five times. To cover this distance requires a mode of transport that is both durable and reliable, and we depend on our key partners, Allied Transport and MAN Truck & Bus to ensure our cargo keeps moving.

We trust Allied Transport and MAN

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Truck & Bus to provide dependable, longlasting vehicles and have never had a single breakdown with a MAN truck, enabling us to maintain our tight schedules, especially when cargo needs to go onto passenger planes from DXB. For example, we have about four freighter flights that come in from Hong Kong. That cargo needs to be transported between DWC and DXB on-time because we can’t keep the other planes waiting.

We don’t want the freighter fleet to sit on the ground as it wastes a lot of money.”

While there is a need to transport the cargo from one airport to another quickly and on time, Mr. Ambak also emphasizes the need of safety. “Our logo is painted on these trucks so we need to ensure that these trucks are safe and operating in a safe manner as our brand is associated with the highest degree of safety.

Looking to the future, Mr. Ambak is keen to see how developments including electric trucks and autonomous driving to further increase efficiency and improve sustainability across the logistics chain.

“As an airline we are always looking for ways to innovate and become more sustainable so it would be interesting to see how trucks become more sustainable from going from digital to electrical. There is also a discussion about autonomous trucks as well.

The technology exists in Europe, especially platooning, which is making logistics more and more efficient, so it will be interesting to see the expected regulations from ESMA to understand how this will work in practice in the UAE,” remarked Mr. Ambak.

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Event review

Breakbulk Middle East 2019 The event aimed to further solidify its stance as the leading GCC event for the project cargo and breakbulk industry The fourth annual edition of Breakbulk Middle East took place under the patronage and attendance of Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of Federal Transport Authority for Land and Maritime who also delivered a Ministerial Welcome.

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Speaking on the event’s opening ceremony, H.E Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of Federal Transport Authority for Land and Maritime commented, “Dubai’s infrastructure heavily relies on its accommodation of over 13,000 maritime and

investment activities which are directly resulting in more than 76,000 job opportunities. The first day of this exhibition has already formulated captivating discussions and showcased strong leadership, both major factors which will surely assist in increasing the country’s global maritime stock, and enhance the jobs

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encompassed by its thorough shipping landscape. Both the location, and the time, of this year’s event are optimal and we remain vigilant and boast confidence that the presence of Breakbulk Middle East 2019 will largely contribute to our showcasing our commitment.”

Ben Blamire, the event’s Commercial Director, spoke on the event’s opening day stating, “The active mobility of this event in a country like the UAE which seeks to build an alternative oil based economy is a competitive advantage given the vast participation by distinguished companies attending from within Dubai as well as from abroad. The diversity of those in attendance is an attribute which will play in favour of the UAE as the first day of this year’s exhibition has clearly produced a climate, which opens opportunities for com-

munication and knowledge while simultaneously increasing the ability to make deals and enhance business development.”

Last year’s successful event witnessed the participation of over 1800 attendees and this year’s edition is projected to slate over 2000.

Over 52 countries were among representation involved in the Abu Dhabi edition of the conference in 2018, many of which included exhibitors, shippers, freight forwarders, cargo owners, and port and terminal operators. This year’s edition is poised to surpass these figures at a record rate with a large part due to the involvement of such prestigious authorities.

Regional Breakbulk Importance Mohammed Al Muallem, CEO & Managing Director , DP World, UAE Region, said,

“Breakbulk Middle East is an event that underscores the importance of Dubai’s vital role in today’s global supply chain, and as a major destination for the breakbulk cargo and specialized logistics solutions providers.

With Expo 2020 around the corner and with the growing cruise tourism sector, there are numerous opportunities to be found here for breakbulk players. Breakbulk is a vital part of Dubai’s economy, covering a large segment of non-containerized cargo such as steel rebar, bagged cement, and drummed cargo, which are used by key industries such as building and construction.”

Echoing a similar voice Khamis Juma Buamim, the Chairman of Dubai Council for Marine and Maritime Industries, added, “The UAE’s determined strides for excel-

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Event review

lence have led to the UAE’s attainment of first-class shipping and proven logistic capability. Likewise, it’s undeniable that events such as Breakbulk Middle East 2019 have greatly contributed to the success of our great Emirate.”

“Break Bulk Middle East is a leading industry event for break bulk logistics suppliers.

This year we saw higher levels of engagement amongst shippers, ship owners and service providers such as forwarding and HL companies as well as the leading ports in the region.

The event provides a great platform where all industry executives can meet to discuss latest trends and exchange ideas on how to deal with challenges.”

“This year at Break Bulk Middle East we demonstrated our new innovative solutions design to enhance efficiency and productivity.

The solutions we showcased this year stem from our international operations. Leveraging our international experience and footprint al-

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lows us to bolster our product offering to meet our customer needs whilst boosting efficiency through the use of technology and innovation,” said Mohammad Jaber, Regional Director - Project logistics, Agility “The shipping and logistics sector today demands agility and timeliness, especially in the movement of heavy cargo. It needs to respond with integrated infrastructure for breakbulk, which is where Gulftainer has been able to define its strengths. Gulftainer has extensive experience in providing General Cargo and Project Cargo solutions at its terminals across the globe, including its facilities in UAE, Saudi, Iraq and US, meeting the diverse standard and non-standard supply chain needs of the growing world economy,” said Peter Richards, Group CEO, Gulftainer.

Rayan Qutub, CEO of King Abdullah Port, highlighted the strategic importance of the conference and exhibition, and added: “The maritime and shipping industries account for

90% of the entire global trade market, which makes Breakbulk Middle East crucial to our region’s continued development.”

“The port has proved particularly successful in attracting a larger portion of the breakbulk sector of the industry, which provides us with further opportunity to grow and solidifies our global maritime competitiveness.

We are estimating a further 15% increase in future volume, particularly involving steel, timber and cement cargo, and our partnership with specialist port operators and steel handlers AMSteel has already seen us increase our one-day cargo record to an impressive 27,000t.”

Technology is rapidly taking over all sectors, including the maritime industry. Its implementation is inevitable and despite certain challenges, it has the power to change business processes drastically. Ship-owners are aware of the changing face of ship emissions and smarter fleet management, so robotics,

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digital currencies, and deep learning analytics are rapidly being used.

“I think digitalisation is also going to be responsible for a lot more transparency and accuracy in the supply chain, which will in turn help to build more trust in this sector. For most firms, use of technology will bring about a change in innovation systems and business models allowing new market entrants, new patterns for collaboration and emerging global competition,” added Ben Blamire.

Gender Diversity The event also did its part to actively build up the female maritime landscape.

H.E. Eng. Hessa Al Malek, Executive Director, Maritime Sector, Federal Transport Authority for Land and Maritime said, “By incorporating a strong presence of maritime women with leadership roles in this year’s event, Breakbulk Middle East is demonstrating great advocacy for the concept of gender

Mohammad Jaber - Regional Director - Project logistics, Agility & Dr. Abdullah Belhaif Al Nuaimi, the UAE Minister of Infrastructure Development and the Chairman of Federal Transport Authority for Land and Maritime

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Event review

equality within the industry. Through this inclusion, they are not only empowering the current generation to continue striving for greatness, but they are also inspiring our future leaders.”

Familiar with the intricacies of being a female and navigating a male dominated industry to earn respect is Jasamin Fichte, Managing Partner, Fichte & Co Legal and President of WISTA Arabia. Elaborating on shattering barriers she commented, “Over the years there has been a gradual shift and the industry has become more accepting of the fact that women are equally capable of industry successes. As a result, doors that once appeared to be bolted shut have been unlocked allowing females in maritime to achieve new heights.”

Specializing in global security solutions, Katherine Yakunchenkova, General Manager, Al Safina Security Group stated, “Rapid growth of innovations and new technologies that shape the shipping world, such as usage of blockchain, robotic processing systems, drone deliveries, eco-friendly ships provide the industry possibility for big leap in opera-

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Ben Blamire

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tion efficiency. Technological changes are accelerating and tech trends will contribute stupendously into economic growth that I find remarkable. Through my career, I have witnessed a transformative power of gender diversity meeting more women represented in the technology fields.”

Challenges the industry faces UAE and governments across the region are looking to build more diverse and integrated economies. Thus despite the downturn in the past few years, the overall signs point towards a stronger macroeconomic picture as we move closer to 2020. It is also expected that competition from bulk carriers and container ships will also decline.

“Bulk and container operators continuously face overcapacity issues. Also, most bulkers and box ships cannot provide the logistical insight, technical know-how, specialist lifting, and transportation equipment, or the years of experience required to safely and consistently shift complex cargoes from A-to-B, this is leading to a real loss of quality in the sector. Safe and reliable movement of cargo is vital in this sector, not to mention critical,” remarked Ben Blamire.

The event strived to showcase the industry’s best practices and brings forth effective solutions that enhance the UAE global maritime ranking.

Peter Richards, Group CEO, Gulftainer

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Event review

AUTOMECHANIKA JEDDAH Global brands make inroads in Saudi’s US$7.6 billion spare parts and auto services market during Automechanika Jeddah 2019. More than 80 exhibitors from 15 countries line up products and solutions at Kingdom’s foremost auto aftermarket trade fair.

Automechanika Jeddah 2019 arrived in its 3rd edition as new government policies and a significant boost in the car park (vehicles in operation) fuel rising demand for related auto aftermarket supplies a services.

Initiatives such as allowing women to drive in 2018 coupled with a concerted shift toward implementing cleaner technologies are having a positive impact on the market,

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as is ongoing infrastructure development.

According to global research company Aranca, Saudi’s car park stood at 7.7 million in 2018, with 350,000 new passenger cars and 115,000 new commercial vehicles sold for the year. Around 10.5 million vehicles will ply Saudi roads by 2023, including 6.85 million passenger vehicles and 3.65 million commercial vehicles.

The upshot will be felt keenly by industry professionals in Saudi’s spare parts and related auto services market, which is expected to be worth US$10.15 billion in 2023 says Aranca, compared to US$7.6 billion in 2018.

Tires contributed the most to the KSA’s spare parts market revenue in 2018, with a 30 percent share (US$2.28 billion). That’s followed by lubricants (US$1.44 billion), batteries

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(US$380 million), and other electronics, accessories, and components (US$3.49 billion).

These key product groups, and much more, are on show this week at Automechanika Jeddah 2019, as the two-day event brings together thousands of Saudi workshop owners, distributors, retailers, traders, and importers with manufacturers and suppliers from across the globe.

“Automechanika Jeddah 2019 arrives as the Saudi automotive sector undergoes a sizeable transformation,” said Mahmut Gazi Bilikozen, Automechanika Jeddah’s Show Director. “One of the big developments in recent months has of course been the lifting of the ban on women driving, and as a result, since June 2018, more than 40,000 driving licenses have been issued to women across the Kingdom.

“Reports also indicate that 20 percent of the female population, or three million drivers, are expected to be added to Saudi roads by 2020, and so not surprisingly, vehicle parc will also grow. With this new customer segment, the flow-on effect will be felt in the aftermarket, not only in terms of rising demand for spare parts but also in related auto services.”

Bilkozen added: “We strive to present an unrivalled platform for global suppliers to tap into emerging opportunities in Saudi Arabia, and in Automechanika Jeddah, we’re offering thousands of Saudi trade buyers and professionals an important information source with the latest products and solutions from the global aftermarket,” Hadi Al-Harith, CEO of ACE Group,

“The Automechanika brand has established itself as the leading and only exhibition catering to the automobile aftermarket” Hadi Al-Harith, CEO of ACE Group added: “The Automechanika brand has established itself as the leading and only exhibition catering to the automobile aftermarket providing a singular opportunity to this industrial cluster supporting the indispensable and expanding requirements of the Kingdom of Saudi Arabia.

“The increasing infrastructure projects, the annual pilgrimage and the new segment of female drivers to the market all portend a strong and continuous business for the international and Saudi stakeholders and to the specialist visitors a vast investment potential.”

Among the many exhibitors shining the spotlight on their latest innovations was Amer-

ican-headquartered Armolan, which is launching its IR Ultimate window tints that effectively block up to 99 percent of UV rays and reduce heat by as much as 90 percent in hot Middle East climes.

Tetyana Bianchino, Managing Director of Armolan Middle East, said its sales in Saudi has vastly improved since women have been allowed to drive: “That change (allowing women to drive) was so important for our business and our KSA sales records have improved almost 60 percent since that time (June 2018),” said Bianchino.

Another US-based exhibitor this year is Giant, a manufacturer of a premium quality metallic and ceramic non-asbestos disc brake pads. Eli Youssian, Vice President of Giant Manufacturing, was also positive about the future of Saudi’s auto aftermarket: “Giant’s market in Saudi Arabia has been increasing rapidly and we’re seeking to expand our participation with new potential and current distributors,” he said.

Automechanika Jeddah 2019 returns with its popular Truck Competence initiative for products dedicated to the entire value chain in the truck sector, while the global presence is underlined by five country pavilions from Turkey, Korea, China, Taiwan, and Hong Kong.

Also returning is the Automechanika Academy in partnership with Autolink and Institute of the Motor Industry, where C-Level Recruitment in the auto industry and developments in Electric and Hybrid Vehicles are among the key topics discussed by industry experts.

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Ta l k i n g p o i n t

E-Commerce

Boom

Gulf Pinnacle Logistics believe that a robust last-mile delivery service is key to supporting the e-commerce boom

More start-ups are investing in the UAE’s logistics market to meet the increasing demand created by the rapid rise in e-commerce service providers across the GCC, according to industry specialists.

“The UAE’s logistics sector is gaining momentum as more and more start-ups are opening their shops and offering the latest solutions and services, tracking shipments on a real-time basis, beating turnaround time for deliveries and consistently racing to acquire smarter technology,” said Shailesh Dash, Chairman of Gulf Pinnacle Logistics (GPL).

“While the UAE has a blend of conventional logistics players and start-ups, the new players

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are having an edge over traditional counterparts via the latest technology which offers transparency at a click of a button,” Dash added.

Gulf Pinnacle Logistics (GPL) is a logistics and transportation company advised by Regulus Capital. Established in May 2014, GPL has the vision to become a MENASEA-focused fully integrated logistics and transportation holding company.

They have acquired a 60% stake in Century Express Courier Services in 2017 as part of its US$325 million (AED1.2 billion) investment plan. Since the acquisition, GPL invested heavily in reinforcing the infrastructure of Century Express and won contracts with top-ranking e-

commerce players and institutions.

“Delivery and transport was the third most actively invested industry in 2018 after FinTech and e-commerce. Start-ups in the logistics sector are more innovative compared to old players in the industry and that’s the reason they attract more investors. We are one of them,” Dash said, referring to GPL’s investment in the technology infrastructure of Century Express.

The technology adoption, according to experts, has helped companies bring buyers and sellers on one platform with much smarter processes easing the cumbersome process of locating vehicles, fleets and tracking delivery points.

The internet boom in the UAE did boost

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Shailesh Dash, Chairman of Gulf Pinnacle Logistics (GPL)

the e-commerce growth in the last couple of years. Food delivery services, for example, have seen a growth of over 100 per cent.

However, one of the biggest challenges was delivering the goods as promptly as the click on your mouse. The logistics sector sees firms competing to deliver within hours and on the same day within the UAE. “Technology is playing a wider role for Century as it enables the company to offer smoother, more transparent and more competitive last-mile services for domestic & international shipments. Century is eying a bigger international role and is on track to capture lucrative international deals and tie-ups.” Turab Ur

Rahman, the General Manager of the Lastmile Division in GPL added.

Najeeb Kabeer, Partner and Managing Director of Century Express Courier Services, said, “A robust last-mile delivery service is key to support the e-commerce boom and this has, so far, eluded many retailers. GPL has invested heavily in Century Express to make it much smarter in terms of innovative solutions, tracking the shipment, and locating vehicles and fleets. Century Express is primarily focusing on innovative solutions for seamless and quick processing of shipments in line with market trends.”

“It is not just about retailers getting the products out to customers. There is also a

growing demand for reverse logistics as more retailers offer free return services. This trend will continue to feed the booming e-commerce industry in the UAE and keep the players in the logistics sector busy,” Kabeer added.

From storage to freight management, and shipping to outsourcing, logistics start-ups have created innovations in the MENA region and attracted significant investments. The MAGNiTT’s latest report identified that the delivery and transport sector accounted for the largest share in total funding, a 29 per cent share of a $893 million in raised capital, including $200 million raised by Careem, across the MENA region last year.

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Interview

Asset Management Kasun Illankoon spoke to Eyad Arafah, General Manager – Assets Management, Almajdouie, about his role in the company and the importance of implementing asset management strategies.

Tell us about your role in Almajdouie?

Working alongside Almajdouie Logistics’ dedicated team of professionals, I oversee the development and implementation of asset management strategies. These strategies are supported by high-quality asset management policies, systems, and practices, which help to ensure optimal returns on investment and the most effective deployment of company assets.

Almajdouie Logistics provides customers with unique solutions tailored to meet their specific needs. Our services span many countries in diverse sectors, including transportation, freight forwarding, terminal handling, automotive logistics, and warehousing.

Furthermore, we are globally recognised for

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handling heavyweight cargo and hold a Guinness World Record for ‘The Heaviest Item Moved By Road Freight’. With a footprint across the MENA region, we continue our legacy of building business relationships based on trust and reliability.

Tell us the importance of asset management and how does it impact Almajdouie?

We own, operate, and integrate our assets, which are comprised of an expansive fleet of vehicles and trailers, and 2 million SQM of terminal and warehousing facilities - piloted by our skilled and well-trained 4,000 strong team.

Accordingly, asset management plays a crucial role at Almajdouie Logistics.

Our systematic approach helps to control and identify the value and condition of assets throughout their life cycles to ensure we maintain the highest levels of safety and efficiency in all our operations. Asset management is a consistent process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner, which helps to ensure we provide the best returns to our stakeholders.

As a logistics company tell us what are the important operations that take place behind the scenes in order to provide the best services to your clients?

We put a substantial amount of time and effort into making sure our assets are ready to

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Eyad Arafah, General Manager – Assets Management, Almajdouie

serve our customers’ evolving needs. This includes obtaining and preparing the required documentation to ensure compliance with government standards and conducting frequent maintenance to keep all assets operating safely and efficiently. Furthermore, our control tower manages the activity of each individual asset to maximise productivity and efficiency.

How does Almajdouie, in terms of asset management, ensure that the value of your assets remains strong over a long period of time?

Can you tell us the steps taken to do this?

Stringent standards, policies, and procedures are in place to ensure all assets operate safe-

ly and at maximum efficiency. The process starts from the day we procure an asset and enter it into our Enterprise Resource Planning system. After that, we begin to monitor, plan, and register all maintenance activity.

We also conduct quarterly inspections using advanced tools to ensure the reliability of assets during operation.

In addition, our advanced asset tracking system manages and monitors activities such as driver behaviour, speed breaking, geo-fencing, acceleration, and, other analysis. We also frequently conduct auctions to retire our older assets and have found that the resale value is higher than similar assets, largely due to our reputation for keeping our equipment in the best possible condition.

In 2019, what do you expect Almajdouie to achieve and also how is the current market in the GCC assisting Almajdouie?

Almajdouie Logistics has proven time and time again that it can face challenges and turn them into opportunities. We recently established a new digital logistics company, MLCgo, which the first of its kind in the region. It makes our transportation services more accessible to a greater number of customers, which will enable us to capitalise on new opportunities in a rapidly developing market.

We also recently launched AlmajdouieGEFCO, which the first integrated Finished Vehicle Logistics (FVL) company in Saudi Arabia. The joint venture brings together two powerhouse companies, GEFCO, the FVL leader in Europe, and Almajdouie Logistics.

By leveraging the competitive strengths of both groups, we can provide new options to our customers in the region.

Our unique ability to handle the entire supply chain enables us to provide cost-effective solutions that result in shorter lead times and increased operational efficiency. Almajdouie’s strong market position and asset-based portfolio combined with GEFCO’s experience in providing smart and flexible supply chain solutions ensure we are well positioned to exceed customers’ expectations.

In addition, Saudi Arabia is taking huge strides towards reducing its dependence on oil and developing its service sectors in line with the Vision 2030. There are several upcoming renewable energy projects that will create new job opportunities and contribute to the country’s continued growth and prosperity. We are looking forward to being involved in many of the logistics operations relating to these massive projects in 2019 and beyond.

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G e n e r ato r s

Power Generators Doosan Portable Power has more than 100 years of manufacturing expertise and application experience focused on providing the highest quality machines with unrivaled customer service. The product line includes mobile generators, compressors, lighting systems and light compaction equipment.

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Doosan Portable Power has launched a new range of four generators from 20-60 kVA for the Middle East and Africa, available in both 50 Hz and 60 Hz versions. As well as construction, rental, and agriculture, the new generators extend the Doosan portfolio to a wider audience to cover applications such as home standby, telecommunications and back-up power for small businesses.

The four new generators – the G20, G30, G45, and G60 – provide prime power outputs of 20, 30, 45 and 63 kVA, respectively, and all four units are available as open units (XF) or sound attenuated versions (XW). The equivalent 60 Hz versions are also available in a range of voltages between 220V and 480V

Doosan Portable Power (DPP) offers one of the most comprehensive portable power product ranges for the Middle East region. The range includes generators, portable compressors, and lighting products as well as construction tools such as air-powered chipping hammers, pickhammers, jackhammers and paving breakers.

All DPP products are built to withstand the rigours of everyday applications in the toughest conditions found in the Middle East market.

The entire range is fully supported by the company’s extensive dealer network for the Middle East, from unit start-up to complete servicing, maintenance, and troubleshooting back-

up. In addition to dealer parts stock for planned servicing or emergency needs, parts are also available through the Doosan network and from within the Doosan Parts warehouse in Dubai.

New Doosan 20-60 kVA Generators 2018 was a successful year for DPP – the company launched its new 20-60 kVA generator range for the Middle East (see attached), which has been well accepted by customers in the region. This has allowed DPP to penetrate new markets as well as helping to boost sales of the existing range of bigger machines up to 850 kVA.

Safe, Flexible Operation Sharing the same design and characteristics, the new generators offer robustness and reliability, high performance and a wide choice of features to meet the needs of a very wide range of power applications from prime power in remote areas to stationary units in grid back up.

The standard frame-fuel tank configuration of the generators ensures the autonomy of at least 15 hours at 75% of the load, allowing users to work regular shifts without refuelling concerns.

Safe and easy access to operation and maintenance areas has been a priority throughout the design of the new generators. Accessibility to key areas, including the engine radiator compartment and maintenance points, has been enhanced. The air flow has been optimised throughout the generator unit to meet cooling requirements for locations with high ambient temperatures, without deration impact on the electrical output performance.

In 2019, the company expects to see an increase in its market share in what is a very competitive and challenging market.

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Maritime

Vital Sectors Lead National Efforts to Achieve Saudi Vision 2030 Second Saudi Maritime Congress to steer shipping & logistics sector on current transformation initiatives in the Kingdom Leading government authorities such as Saudi Customs and Saudi Ports Authority (Mawani), as well as major companies such as Bahri and Saudi Aramco Marine Department, which play a key role in the implementation of the latest development initiatives across Saudi Arabia, will share significant insights on how strategies under the Saudi Vision 2030 intend to deliver the desired transformation in the country

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during the Saudi Maritime Congress held on 11-12 March in Riyadh.

H.E. Ahmed Alhakbani, Governor - General Customs Authority, said: “Saudi Customs play a crucial role in driving national transformation as trade is a vital sector in development. The authority continues to build on its strengths to ensure that policies are moving towards a more efficient and faster customs

processes in accordance with existing national laws and international regulations. The shipping sector is an essential partner for Saudi Customs to implement its goal and we are keen to be an essential contributor in providing insights regarding recent developments and upcoming initiatives, which aims to improve the trade process and thereby contribute to national and international economic growth.�

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Eng Abdullah Aldubaikhi, CEO, Bahri, commented: “Bahri’s commitment to steering Saudi Arabia’s shipping sector towards new levels of growth and development is anchored on the nation’s transformation plan. Our business strategies are fully aligned with the goals set out in Saudi Vision 2030, while also extending our global reach in the maritime industry. We will continue to build on our existing services and solutions to contribute to the enhancement of the Kingdom’s shipping and logistics sector. Bahri’s participation in this major event will further strengthen our resolve to establish the Kingdom as one of the world’s leading logistics and transportation hubs.”

The recently launched National Industrial Development and Logistics Program (NIDLP), one of the 13 Vision Realization Programs under Saudi Vision 2030 that aims to make the country into a leading global player in logistical services, will pave way for the growth of four key sectors: industry, mining, energy and logistics, and contribute up to SAR 1.2 trillion to Saudi Arabia’s Gross Domestic Product (GDP). A total of 330 logistics initiatives are being developed

under the program and stimulate up to SAR 1.7 trillion of investments.

The oil and gas sector is also primed to increase business growth from the local market by up to 75 per cent by 2030 from 40 per cent in 2015. Some of these initiatives are being led by Saudi Aramco, which aims to develop a more competitive local supply chain by requiring suppliers them to secure 70 per cent of the content of their products from local sources. Meanwhile, leading shipping company Bahri has stepped its business strategies, aligning them to the country’s diversification plans through expansion of its multi-purpose fleet, adding five Very Large Crude-oil Carriers (VLCCs) as well as adopting new technologies to boost its operations capabilities.

Among the latest measures relevant to the shipping sector are reforms under the Saudi Ports Authority (MAWANI) in collaboration with the Saudi Arabian General Investment Authority, which are soon to allow foreign shipping agencies to hold 100 per cent ownership of their companies and operate independently under a foreign investment license. The license will have to be

secured from Saudi Ports Authority and will be valid for five years. Previously, shipping agents could operate only as a fully owned Saudi company or under partnership with local investors.

Chris Hayman, Chairman of Seatrade, said: “The huge development plans across Saudi Arabia are opening massive opportunities for vital sectors such as the shipping and logistics industry to take part in the implementation of the country’s national agenda. The Second Saudi Maritime Congress will gather local and international economic leaders and major sector players from the shipping, ports, ship construction and offshore marine industry to further discuss how new policies and business agenda can align their efforts towards achieving the nation’s goals.”

The Second Saudi Maritime Congress will be held on 11-12 March 2019 at Four Seasons Hotel Riyadh at Kingdom Centre, Riyadh, Kingdom of Saudi Arabia. The event expects the attendance of more than 2,000 maritime professionals, and will provide numerous opportunities to network, do business, strengthen local presence and establish new business relationships in the field.

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Etihad Rail Etihad Rail provides update of stage two at Middle East Rail

Etihad Rail, operating under the guidance of His Highness Sheikh Theyab bin Mohamed Al Nahyan, Member of the Executive Council, Chairman of Etihad Rail, participated at the Middle East Rail Exhibition and Conference 2019 as Strategic Government Partner alongside the UAE Ministry of Infrastructure Development and the Federal Transport Authority Land & Maritime.

Etihad Rail shared details of its outstanding progress in preparing for the launch of stage two of the network as well as highlighting recent accomplishments and current developments.

With Stage Two moving forward, Etihad rail is continuing its leading role of supporting the UAE’s vision of achieving economic growth and social development, while contributing to the long-term growth of the national economy by completing the ground-breaking project on schedule and within budget.

PMC & Engineering Contracts have been awarded for the development and supervision of Stage Two from Ghuweifat to Fujairah.

The second stage will extend 605 km from Ghuweifat on the border with Saudi Arabia to Fujairah on the east coast, to be followed by future route additions. The volume of goods transported will increase from seven million tons per year on Stage One to more than fifty million tons.

Etihad Rail has taken major strides in 2018, most importantly the completion of the preliminary designs of Stage Two of the project in preparation for the launch of tenders for civil construction works by the end of this month.

In 2015, Stage One of the project, which extends 264 km, was delivered, linking the Shah and Habshan gas fields in the Al Dhafra region of Abu Dhabi to the port of Ruwais on the Arabian Gulf, with a capacity of transferring 22,000 tons of sulfur granules daily; 20 million tons have been carried in total.

On the agreement, Sheikh Theyab said: “The budget approval for Stage Two of the UAE’s national railway network reflects the keenness of our leadership to implement national strategic projects.”

“This national project is a qualitative leap and establishes a new transport sector in the UAE. It achieves many benefits and advantages

42 | Logistics News ME | March 2019

locally and internationally, connecting the emirates and linking industrial areas, boosting economic diversity and supporting economic and social development in the country,” he added.

The company has taken further significant steps by signing ahead of terms with Abu Dhabi Ports to connect Khalifa Port with the Etihad Rail network.

A Head of Terms has been signed with ZonesCorp to establish vital railway and logistics facilities within the Industrial City of Abu Dhabi (ICAD). This is in addition to signing important MoUs and agreements in preparation for Stage Two commencement, which will be followed by announcements of contracts awarded for civil works and construction

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M a r c h 2 019

Airbus and Emirates reach agreement on A380 fleet The new agreement would see Emirates reducing its A380 orderbook from 162 to 123 aircrafts

Following a review of its operations, and in light of developments in aircraft and engine technologies, Emirates is reducing its A380 orderbook from 162 to 123 aircraft. Emirates will take delivery of 14 further A380s over the next two years. As a consequence and given the lack of order backlog with other airlines, Airbus will cease deliveries of the A380 in 2021.

Emirates has also decided to continue growing with Airbus’ newest generation, flexible widebody aircraft, ordering 40 A330-900 and 30 A350-900 aircraft.

“As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years. This leads to

44 | Logistics News ME | March 2019

the end of A380 deliveries in 2021,” said Airbus Chief Executive Officer Tom Enders. “The consequences of this decision are largely embedded in our 2018 full year results”.

“The A380 is not only an outstanding engineering and industrial achievement. Passengers all over the world love to fly on this great aircraft. Hence today’s announcement is painful for us and the A380 communities worldwide.

But, keep in mind that A380s will still roam the skies for many years to come and Airbus will of course continue to fully support the A380 operators,” Tom Enders added.

“The A380 is Emirates’ flagship and has contributed to the airline’s success for more than ten years. As much as we regret the air-

line’s position, selecting the A330neo and A350 for its future growth is a great endorsement of our very competitive widebody aircraft family,” said Guillaume Faury, President of Airbus Commercial Aircraft and future Airbus CEO. “Going forward, we are fully committed to deliver on the longstanding confidence Emirates is placing in Airbus.”

Airbus will start discussions with its social partners in the next few weeks regarding the 3,000 to 3,500 positions potentially impacted over the next three years. However, the ongoing A320 ramp-up and the new widebody order from Emirates Airline will offer a significant number of internal mobility opportunities.

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Unsung Heroes

March 2019

Alexandra Deeva

We talked to Alexandra Deeva, Marketing Manager at ALS Logistic Solution, about her role and how she is helping contribute to ALS success Goals and Objectives I want to see ALS being recognized worldwide as the best technology provider. The second achievement will be more global and deep. I want ALS to leave their mark by sharing our expertise and knowledge with students and, who knows, maybe with future generations.

ALS is a trendsetter, and that is the result of our annual marketing strategies and long-term vision. We believe that without planning and a detailed action plan, you will not reach where you intend to be.

Unique Attributes I have completed 4 years with ALS, and I am proudly saying that it is my best marketing case study. Sharing the same vision with management and having the support and back up to all our marketing initiatives make us go in the right direction. Marketers don’t give up when they see the sales fall or the decline in websites visits. It takes courage, self-motivation, some secret ingredient and creativity to bring better company development every day.

Importance of Teamwork ALS is a family, we spend around 70% of our time in the office, sharing ups and downs together. And that is of one of the great feelings for any human being – to feel associated. And that is my pleasure to see ALS team being proud of their workplace. I am the youngest employee not only by age, but by the career time frame in ALS, and that has been 4 years already. It is essential to love what you do. Being workaholics, we all of us share only one strategy, that is called “to make things done”.

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Supplier News

Supplier News

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U p dat i n g yo u o n t h e r e g i o n ’ s s u p p l i e r s

Transport leaders meet at Middle East Rail 2019 The 13th annual Middle East Rail is the largest and most established event of its kind across the Middle East, North Africa, Central and South Asia. Partnered with the UAE Ministry of Infrastructure Development as well as the Federal Transport Authority, the event is set to take place from the 26th to the 27th of February and expects to see over 5,500 visitors of movers and shakers in the industry.

Attendees of the event can expect to catch one of over 60 live demonstrations, 250 exhibitor stands, as well as keynote speakers and panel discussions from industry leaders from across the world.

Topics of discussion range from practical issues being faced by the industry currently to speculative and innovative discussions of what the future of rail may look like.

Speakers come from all over the world and share a passion for conversation about the constantly evolving nature of transport in the Middle East. The show aims to cover every aspect of working in the industry, from every perspective: attendees passionate about technology, for instance, will get the chance to hear about the digital transformation of rail from such speakers as wide ranging as the Chairman of Technology Mission at Indian Railways to the Director General of UNIFE in Belgium, proving to have a truly global scope.

Dedicated tracks ensure attendees get to attend talks tailored to their interests: these include Interoperability, Strategic Planning, Autonomous Travel, Urban Planning, and Funding & Finance, to name a few. For those attendees looking to get in on the conversation for more than just a Q & A session, there are roundtables, designed

48 | Logistics News ME | March 2019

to provide an inside look at the opportunities, tenders, techniques, and technologies being implemented to build the transport networks of tomorrow. These sessions will be led by leads in key government departments, railway operators, and solution providers, ensuring attendees are let in on topical and dynamic discussion.

A spokesman for the

Federal Transport Authority described last year’s show as ‘the perfect platform to explore new technologies, strategise with the industry’s leading figures and connect with the disruptors shaping the future of transport’.

Set to be larger in both size and scope than ever before, Middle East Rail 2019 is poised to be the industry event of the year. www.cbnme.com

M a r c h 2 019

Emirates Motor Company named General Distributor of Year by Daimler

Emirates Motor Company Commercial Vehicles (EMC CV) earned two prestigious awards at the Daimler Commercial Vehicles Conference Middle East & Africa 2019. EMC CV, the authorized general distributor of MercedesBenz Commercial Vehicles in the Emirate of Abu Dhabi and the flagship company of ALFAHIM Group, received both the General Distributor of the Year Award as well as the Mercedes-Benz Trucks Award for its outstanding performance in sales and customer service and parts in 2018.

Kay-Wolf Ahlden, President & CEO of DCV MENA, said: “Congratulations to the EMC CV team for these well-deserved honors. These awards recognize successful strategic decisions that allow

EMC CV to lead in the MENA region in truck, bus, and van sales as well as in customer service and parts.”

Bilal Al Ribi, General Manager of EMC CV, said: “I want to congratulate all the employees at EMC CV for their commitment and diligence, which has earned us these prestigious awards.

To be singled out among Mercedes-Benz dealerships in the MENA region as the General Distributor of the Year shows the level of business excellence we have achieved as a proud member under ALFAHIM umbrella.”

EMC CV secured the General Distributor of the Year award for the second consecutive year through implementing real fuel testing measures, comprehensive service contracts, FleetBoard telematics and driver

training as well as by introducing the all-new Actros & Arocs, focusing on total cost of ownership solutions for its customers.

EMC CV was able to sell a range of civilian trucks and military and G-class vehicles in addition to the all-new Actros and Arocs. The Abu Dhabi distributor was also recognized for introducing the new Citaro Euro 6 bus to the region. This was achieved through a public transport agreement that includes a comprehensive service contract for five years in combination with a Sprinter Minbus solution that is unique in the region.

In line with the vision and mission of its parent company, ALFAHIM Group, EMC CV aims to deliver sustainable growth through superior customer service, quality, and commitment.

Almajdouie Logistics wins Business Innovation Award

Almajdouie Logistics was honoured with the Mohammed Bin Rashid Al Maktoum (MRM) Business Innovation Award for our commitment to ingenuity and continuous improvement.

Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Emirates Group, and Chief Executive of the Emirates Group presented the award to the CEO, Baheej Al Biqawi, during a ceremony at Dubai Opera on February 26. In attendance were more than 1,500 delegates, including dignitaries, government officials, and business leaders from the UAE and GCC. The award recognises and celebrates businesses for outstanding practices and achievements in innovation, which contribute to the development of their country’s economies and serve as an inspiration for like-minded companies across the GCC. Logistics News ME | March 2019 | 49

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The key exhibitions, conferences, and seminars coming up this month

March

12-13 March

13-14

Aviation Electronics Europe Munich, Germany Avionics Expo is the only dedicated platform for the international aviation electronics industry to learn, network and source new information, products and services at one unique annual event.

Logistic Summit & Expo Mexico City, Mexico The Logistic Summit & Expo is the most important exhibition for Logistics and Supply Chain in Mexico and Central America. This event is composed of a large exhibition floor, an International Congress and a program with more than 35 free Logistic talks. It is the right place to meet the trends, strategies and best practices that rule the industry.

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March

20-21 march

20-21

Green Ship Technology Conference Copenhagen, Denmark The 2019 agenda will tackle the issues that matter to your business now. Key topics include: decarbonising the shipping industry, emissions regulation and compliance, ecological impacts of shipping, circular solutions, harnessing renewables, and more.

Breakbulk Asia Shanghai, China Breakbulk Asia is a conference and exhibition in the region for project cargo and breakbulk professionals. Breakbulk Asia exhibition offers an unparalleled opportunity to connect with the industrial project supply chain-shippers and service providers, local and international-who are involved in today’s megaprojects that revolve around China’s One Belt, One Road program. www.cbnme.com

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