Log. Middle East Issue 45

www.log.ae

Issue 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

Logistics of

perishables Safe and risk free delivery of perishables from farm to consumer | Page 06

TRENDS | 24

PREVIEW | 32

REVIEW | 36

Top Mega Trends

LOG. LEO awards

BUILDING RAILWAYS

Logistics trends in the GCC

Nominations now open

Benefits of adopting GSM-R

PUBLISHER’S NOTE

On top again Having lived in the financial capital of the UAE for over six years, I have personally experienced and observed the boom as well as down times of the economy. Many investors from all corners of the world have taken advantage of the fast-paced market here and received handsome returns. Not everyone was that lucky, though. With the downturn following the global crisis, a high number of companies had to shut down and look for greener pastures in other countries.

But the past is past. Since the beginning of the year, many of my associates with whom I had a chat with have been expressing their positive expectations and sharing signs of economic recovery. Another confirmation now from the top echelon: “Dubai has recovered from the economic downturn,” recently said HE Sheikh Mohammed bin Rashid al-Maktoum, Vice President of the UAE, Prime Minister and ruler of Dubai.

According to a recent posting on his official website, the Ruler of Dubai also instructed that officials should provide incentives to help attract more foreign investment and capital. Being a visionary leader, Sheikh Mohammed added, “We must look forward and find ways to work freely without hindrance. Past experiences have proved Dubai’s merit as a hub for business and finance with the necessary infrastructure to attract investors from the UAE and abroad.”

Of course, the market has contracted due to the crisis and competition has become tougher with a lot of players vying to get a bigger share. But, this doesn’t deter us from trying harder. It may be all bad news

from Europe or US but the story changes completely once you set foot in the region.

Figures don’t lie: Middle East airlines registered double-digit traffic growth in international passenger traffic in January, posting a 14.5 per cent increase, according to IATA. Capacity rose 10.6 per cent and load factor climbed 2.7 points to 78.5 per cent, among the highest of the regions.

Furthermore, Middle Eastern carriers enjoyed a 9.4 per cent rise in air freight demand - again the healthiest performance among the regions.

In addition, the success of the Gulf’s three major aviation hubs – Dubai, Abu Dhabi and Doha is well documented. Between 2007 and 2011, these airports added almost 31 million passengers, growing from 50.7 million passengers to 81.5 million passengers said the Centre for Asia-Pacific Aviation. Average passenger growth of combined all three airports was around 10.5 per cent – better than the global average of nine per cent.

The space of this column will not be enough to talk about the exponential growth of Emirates, Etihad or Qatar Airways, not to mention the low cost carriers such as Air Arabia or flydubai – all envied by many European airlines. What we see especially in the Gulf nowadays is business back on growth track, opening up opportunities and shelved projects being re-visited. These bring along new opportunities for local as well as international companies and as I often underline – the future is bright and those with a positive attitude will always win...

Enjoy reading our March edition and please feel free to send your comments.

Reinhard Wind Managing Director, Gutenberg Publishing FZ-LLC

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IN THIS ISSUE

MARCH 2012

32 PREVIEW

LOG. LEO Awards Nominations are now open to select the best of the logistics and supply chain industry in the region. More details inside on the 2012 event.

06

36

COVER STORY

Delivering before they perish Heavily dependent on imports, the GCC’s food bill is expected to exceed US$53b by 2020. Importing food from over 150 countries, the authorities face the mammoth task of ensuring safe and disease free delivery of these items to the consumers.

TRENDS

Embracing cloud Companies today should invest towards more strategic IT projects such as consolidation, virtualisation, and automation.

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42

Road Transport in Turkey

LOG. Window 14

Rail authorities are seeking to invest in the most effective technologies for the upcoming GCC projects.

TECHNOLOGY

OVERVIEW

Connecting two continents, Turkey boasts one of the largest fleet of trucks transporting goods between Europe and the Middle East including the GCC countries.

GSM-R for the rail sector

40

Five mega logistics trends in GCC Research firm Frost & Sullivan forecasts top five mega trends in logistics in the GCC and provides insights on the best practices in the sector.

REVIEW

INNOVATION

Change culture The economy is getting back on its feet again and organisations face more pressure than ever to get the human resources aspect right.

28

Product Update 44

LOG. Classifieds 46

LOG. cafe` 48

Events Calendar 50

COVER STORY: PERISHABLES

Logistics of perishables in the GCC and persistent challenges The volume of food imported by the GCC countries may double over the next decade, says one of the UAE’s top government officials, with the bill paid for food imports reaching up to US$53.1bn in 2020 from US$25.8bn in 2010.

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COVER STORY: PERISHABLES

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ne of the major challenges for any business in the Gulf Cooperation Council (GCC) countries is the harsh weather. Sand and dust storms are not uncommon and the temperatures during the long summer months may exceed 50oC. Obviously, the hot and humid weather brings along difficulties for companies handling food from farm to consumer. The vendors also carry the responsibility of creating the ideal environment to keep the food items fresh, intact and free from any health risks for the consumers.

Due to the hot climate, lack of arable land and water resources in the region, a major portion of the food consumed by the population is imported. According to sources, consumption of food in the region will reach 51.1 million tonnes in 2020, with an average yearly growth of 4.6 per cent.

The projection is based on the population growth of the GCC which is expected to cross 50 million by the end of the decade.

In the UAE, the government has had ambitious plans to convert portions of the desert to arable land especially in Abu Dhabi.

However, the country still depends heavily on food imports from all over the world. The UAE’s imports are to grow from US$3 billion in 2011 to US$8.4 billion in 2020 with an annual average growth of 5.4 per cent.

Ensuring food safety “Last year, Dubai has imported more than six million tonnes of food comparing to five million tonnes the previous year with an 18 per cent increase, confirming the leading role of Dubai as an important hub in relation to the food stuff business,� said Eng. Hussain Nasser Lootah, Director General of Dubai Municipality (DM). The emirate imports food from over 150 countries, which brings along unique challenges with regards to logistics and safety.

With a huge and increasing food bill, the authorities strive to tackle various challenges.

They stress that the food sources should be both safe and sustainable. The efforts of relevant authorities should be coordinated through developing initiatives and programs.

Furthermore, the best international practices in food safety, specifications, laws and procedures ensuring the human ethics of the regional and international trade shall all be considered according the top executive at DM. March 2012 I

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COVER STORY: PERISHABLES

Food-poisoning alarm system With extremely hot and humid weather in the GCC, food poisoning cases especially during summer months are widespread. The fault lies either with the logistics services provider, the vendor or the consumer. Whatever the reason, an early-warning system is set to be introduced in the region to be able to prevent the spread of food poisoning.

The so-called ‘GCC Rapid Alert System for Food’ will be based in Riyadh, Saudi Arabia and notify member countries when an outbreak is registered. Then, instant alerts will be issued if any product is found to pose a danger. Those goods will be recalled or prevented from entering the GCC. Speaking at the Dubai International Food Safety Conference, Dr Hamad Al Kanhal, director of surveillance centres and crisis management, Saudi Food and Drug Authority said, “Our goal is to ensure coordination between the GCC countries with regards to food safety and protect consumers from dangers related to food.”

Experts also called for the creation of effective laws and programmes that will help solve problems regarding safe and healthy food in the region. Working in tandem with international organisations such as the World Health Organisation (WHO) and the Food and Agriculture Organisation (FAO) will help reduce the risks with food and contain any issues before they spread.

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Consumption of food in the region will reach 51.1 million tonnes in 2020, with an average yearly growth of 4.6 per cent. The projection is based on the population growth of the GCC which is expected to cross 50 million by the end of the decade.

PulseNet International Furthermore, the emirate of Dubai will become a member of the PulseNet International, which monitors food-borne bacteria. The network coordinates with the WHO, the US Centres for Disease Control and Prevention (CDC), and the Association of Public Health Laboratories.

Abdulwahab Alraeesi, head of Food Studies and Planning, Food Control Department Dubai Municipality said through this tie-up, ‘Dubai will be able to track the most common pathogens’ serotype to the source or to the epidemic geographical areas and take necessary preventive actions against newly detected serotypes around the world.’

The department will also be able to examine the construction of the bacteria, find the nature of that organism and track the organism to the source. Then, the use of the product will be put under control to avoid any further issues.

Logistics of perishables “By value, over 35 per cent of goods traded internationally are handled by air. But this accounts for just 0.5 per cent of global volumes traded. Air cargo provides the connectivity that is at the core of modern businesses serving global markets. The growth potential is enormous.

The challenge is to propel that growth sustainably, with quality products, efficiently delivered by a well-coordinated value chain,” said Tony Tyler, IATA’s Director General and CEO. From weather conditions to politics, winning in the perishable logistics industry, requires having all the elements under control, shares Move One’s Perishables Product Manager Anders Bonde.

The global transportation of commodities has become a necessity in the modern world, with shipping and logistics following rapid economic and political change. This includes the movement of temperaturesensitive goods, perishable commodities

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COVER STORY: PERISHABLES

that are liable to expire, decay, or spoil quickly. Such goods require the most efficient supply chain, not only in terms of technology and know-how, but also in terms of timely delivery, in order to respond rapidly to market needs.

Today, the term “seasonal” for fruit and vegetables almost doesn’t exist anymore.

Food is shipped from one part of the world to another, on a daily basis, to meet the demand of consumers, regardless of the time of year.

Cold chain technology Perishable logistics relies on cold chain technology to maintain proper temperatures during handling and transport. This is essential in preserving the quality of perishable goods such as fresh meat, seafood, ripe fruits, and temperaturesensitive medical products.

When perishable commodities are transported from producers to consumers, they are expected to stay fresh across considerable distances. Perhaps one of the most important keys to success in the cold chain is controlling the temperature in various shipping circumstances. This is particularly challenging when considering that different products require different temperature maintenance.

Common temperature standards include: 10

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Depending on the type of product and standard set, different types of containers and refrigeration methods are required.

It is of due importance that proper packaging is used, depending of temperature standard, type of product, duration of transit, size of shipment, and outside temperature. banana (13 °C), chill (2 °C), frozen (-18 °C), and deep frozen (-29 °C). Depending of the type of product and standard set, different types of containers and refrigeration methods are required. It is of due importance that proper packaging is used, depending on temperature standard, type of product, duration of transit, size of shipment, and outside temperature.

To ensure the quality of goods and services, a number of cold chain technologies are used. The most common ones are: Dry ice: Solid carbon dioxide, which does not melt. It keeps a shipment frozen during extended periods of time at approximately -80°C. It is suitable for shipping of pharmaceuticals, dangerous goods, and food.

Gel packs: Mostly used for pharmaceuticals and medical shipments which must be stored at a temperature between 2 and 8°C. Gel packs may melt during the transit

process, while still maintaining an internal temperature. An alternative to gel packs is eutectic plates filled withliquid, which can be reused many times.

Liquid nitrogen: Used to keep items frozen over extensive period of time, mostly for the transport of biological cargo. Its temperature is approximately -196°C, and it is considered a hazardous substance.

Quilts: Serve as a buffer in circumstances of temperature variations. They keep the temperature constant and are therefore often used to keep sensitive goods at room temperature, protecting them from outside temperature changes.

Reefers: A container with controlled temperature. It can be an ISO container, a van, or a small truck, with the temperature maintained by an attached, independent refrigeration plant.

COVER STORY: PERISHABLES

Professional help A professional and organised perishable supply chain and transportation network is the most important component of shipping quality and fresh foods, and, consequently, the food industry worldwide. It requires professional staff, modern equipment, and knowledge of many different regulations in various countries. Long transit times or poor handling may lead to spoilage of perishable goods, which may result in potential food-borne illness.

Distance, transit, and time of transport of perishable goods are not the only challenges of the cold chain. Other factors influence the quality of cold chain services, such as weather conditions, political affairs, various regulations, and technical problems.

Weather conditions are one of the major concerns when it comes to perishable logistics. Extreme warm or cold outside temperatures may be a great disadvantage when loading or offloading trucks and airplanes. Simple solutions, such as loading during night in warm areas, or during midday in cold environments, may help in preserving the quality of goods.

Political affairs, such as the transport of perishable goods to or through conflict 12

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“From weather conditions to politics, winning in the perishable logistics industry, requires having all the elements under control� - Anders Bonde, Perishables Product Manager, Move One areas, may represent another obstacle.

In such cases routes should be carefully chosen prior to shipping. Otherwise, there is a danger of long delay, which often results in inability to preserve the freshness of goods. Furthermore, local and regional regulations, such as bans on storing cargo with dry ice in small closed areas in Europe, or special provisions for transport of medical equipment and supplies, should be carefully followed by all cold chain participants and contributors.

Other common problems of cold chain logistic are technical in nature. Equipment is disposable and prone to damage. It is therefore of high importance for any cold chain to ensure backup equipment and technical support, regardless of location, or type of equipment.

Making a difference Many professional companies with long experience in perishable logistics have

developed procedures and methods of solving such problems. With five years experience in perishable logistics in Afghanistan, Iraq, Mongolia, Central Asia, and Africa, logistics professionals from Move One Inc., with headquarters in Dubai, provide their clients with full cold chain supply logistics, including storage, transport (truck, rail, ocean, and air), customs clearance/deliveries, and IT solutions.

The company has extensive experience in providing service of perishable commodities movement and logistics.

Currently, they transport food (fresh fruits and vegetables, and frozen meat) from Europe to Kabul in Afghanistan for NATO/ ISAF and various catering companies in addition to other ongoing projects in South Iraq using reefer/dry trucks and South Mongolia using ocean and truck transport.

Apart from technology, the shipment of fresh and frozen food requires that every party involved is educated and trained in

COVER STORY: PERISHABLES

Gulfood took place in Dubai from 19-22 February

Distance, transit, and time of transport of perishable goods are not the only challenges of the cold chain.

Other factors influence the quality of cold chain services, such as weather conditions, political affairs, various regulations, and technical problems. handling perishables. From the time the shipment is ready in Europe, Move One experts have 72 hours to deliver it to the final consignee in Afghanistan, which requires monitoring 24 hours a day and immediate action if any delays occur. Such operations, week-by-week, require skill, knowledge, and know-how. Nevertheless, the main competence of the logistics company is destination services in

challenging areas, those affected by wars, natural disasters, or strict and unreliable governmental restrictions.

And finally, consumption level of perishable foods in the world increases each year. The industry is demand-driven and, therefore, increases the necessity of even more efficient cold chains in terms of reducing the time-to-market. It requires high problem-solving skills supported by technological means. If logistics providers want to stay on top of the cold chain game, they must continuously search for new technologies that will advance their operations and competitiveness.

Gulfood – one of the largest Claimed to be one of the world’s largest trade show for the food and beverage industry, Gulfood 2012, which took place from 19-22 February in Dubai, UAE featured 3,800 exhibitors from 88 countries and 110 international pavilions highlighted the role that the show plays in facilitating trade between suppliers and buyers and the access provided to the lucrative markets of the region. The organisers announced that the show, which covered an area of one million square feet, attracted over 68,000 trade visitors. Gulfood plays a key role in facilitating

exports and global trade as many international delegations, agricultural ministries and export missions attended the event.

Al Ghurair Foods, another food industry giant founded in the UAE, made a number of key announcements during Gulfood.

The company’s chairman Essa Al Ghurair confirmed the acquisition of 100,000 hectares of farmland in Sudan to grow grain, a move in line with the UAE’s efforts to address food security concerns. The company also announced investment in a new US$10 million plant in the UAE for the production of lecithin, an oil by-product used in bakeries and animal feed.

The show also highlighted excellence in the industry through the annual Gulfood Awards. The awards attracted more than 120 entries from 30 countries in 20 different categories including: best health education initiative, best new halal food, best environmental sustainability initiative, and best packaging innovation.

Delegates at the Gulfood Conference enjoyed privileged access to the latest knowledge and business advice over four key summits: Food Leaders Summit; Foodpreneur Forum; Food Packaging & Processing Forum; and the Gulfood Workshop on Franchising.

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LOG. WINDOW

Mohebi Logistics to build new facility in Dubai Mohebi Logistics has announced plans to invest up to AED350 million to build its new headquarters and logistics facility in Dubai Logistics City (DLC) at Dubai World Central (DWC). HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Dubai Aviation City Corporation, and Mohammed Mohebi, Mohebi Logistics CEO, signed the lease agreement for the 1.5 million sq ft plot.

HH Sheikh Ahmed said: “Dubai World Central consolidates Dubai’s position as a major international logistics hub.

It establishes a strategic link to global markets and plays a crucial role in meeting the present and future needs of Dubai’s aviation, tourism, trade and logistics sectors. Moreover, Dubai World Central demonstrates Dubai Government’s commitment to support key industry players such as Mohebi Logistics by providing the right combination of world-class infrastructure and value-added services.”

“We are proud and excited at the prospect of becoming a strategic partner of Dubai World Central and key contributor to Dubai’s continued economic growth. It is important that Emirati talent and know-how offered by home-grown companies are developed to support our leadership’s vision of creating a knowledge-based economy.

Dubai World Central will play a critical role in showcasing both Emirati talent and

High level executives after the signing of the lease agreement (L-R): Rashed Bu Qara’a, COO, DACC; Mohammed Mohebi, CEO, Mohebi Logistics; HH Sh. Ahmed Bin Saeed Al Maktoum, Chairman, DACC; and Khalifa Al Zaffin, Executive Chairman, DACC

corporate capabilities, which in my opinion is key in serving our national interests,” added Mohammed Mohebi, Mohebi Logistics CEO. Mohebi Logistics, which is part of the Zainal Mohebi Group, will build its corporate headquarters and facilities comprising approx. 110,000 pallet positions, expanding the company’s storage and logistics facilities and almost doubling its capacity to serve its regional and global clientele. The headquarters and temperature-controlled warehousing facilities will be constructed in two phases.

The construction of a new logistics base in DLC is part of AED1 billion in investments that Mohebi Investments earmarked to

establish itself as a major regional player.

Zainal Mohebi Group will consolidate its FMCG operations in a single location at Dubai World Central.

Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation, said: “Dubai Logistics City supports the growing logistical needs of the region’s burgeoning business community. Furthermore, it provides direct access to a comprehensive range of stateof-the-art infrastructure and services and multi-modal transport within a centralized location at Dubai World Central. This creates the perfect environment for the logistics community to synergize and unlock fresh opportunities for business growth.”

Leschaco now operational in the Middle East Leschaco recently celebrated the official opening of its new operational office Leschaco Freight Solutions LLC in Dubai.

By opening a new support base for the worldwide network, Leschaco broadens its presence within the market. With customer oriented individual logistics solutions in seafreight, airfreight, contract logistics and tank container operations Leschaco offers its customers the whole range of services within the logistics spectrum.

“This is a major step in building Leschaco’s global footprint by opening our own operation office in Dubai. Dubai being a well-recognized hub for the region will add great value to our network and 14

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customers“, said Joerg Conrad, owner of the Leschaco Group.

“This young team, which already boasts of over 100 years of combined professional experience in the region, is optimistic that they will make a positive impact in

this market soon. I am very confident about that”, added the Managing Director Shamsudeen Ahmed.

The Middle East region is managed

by Shamsudeen Ahmed, a veteran with over 30 years experience in the logistics industry within Middle East supported by a team for sales and operations. Leschaco is a privately owned group of companies offering worldwide logistics solutions in sea and air freight, contract logistics and tank containers. Leschaco assists leading companies in plant construction and mechanical engineering, automotive, chemical and related industries, producers of consumer goods and pharmaceuticals.

LOG. WINDOW

Dubai Airport handles 4.85 m passengers in January Dubai International began 2012 on a strong note with record monthly passenger traffic of over 4.85 million in January, according to the latest traffic report issued by Dubai Airports. Passenger traffic in January reached 4,85 million passengers, surpassing the previous record of 4,72 million of July 2011, and a 14 per cent increase compared January 2011. The upsurge is the largest month-on-month increase in 14 months. This performance brings Dubai International’s rolling 12-month passenger numbers to 51.57 million and builds on the historic 50.98 million passengers recorded in 2011.

The AGCC continued to top the list of regions with the largest increase in total passenger numbers in January (+203,219 passengers), followed by Western Europe (+100,902), the Indian subcontinent (+92,855 passengers), and Russia and the CIS (+77,454 passengers). Middle Eastern routes continued the downward trend in

the New Year (-4,747 passengers) owing to on-going unrest in the region, while traffic on African routes surged after months of weak performance (+34,909 passengers).

Spurred by the launch of Emirates Airline’s new routes to Rio de Janeiro and Buenos Aires, South America was the strongest market in terms of percentage passenger growth in January (+71.4pc), followed by Russia and CIS (+57.3pc) driven

INNOVATIVE LOGISTICS

www.geodiswilson.com

Geodis Wilson UAE LLC PO Box 219, Jabel Ali Freezone UAE Tel. +971 4 880 9220 Fax. +971 4 880 9337 info@geodiswilson.com

by the expansion of Dubai’s low cost carrier flydubai in the region, and the AGCC (+36.9pc) as a result of growth in Saudi Arabian traffic. Eastern Europe (20.6pc) and Australasia (16.7pc) also achieved high growth rates. Total aircraft movements for Dubai International rose 8.4 per cent to 29,680 compared to 27,385 last January.

Cargo volumes contracted 2.6 per cent to 173,531 tonnes compared to 178,199 tonnes in January last year reflecting on-going weaker global airfreight demand and fragile consumer confidence.

“It is fitting that we started a recordbreaking year with record monthly passenger numbers. Our projections indicate 2012 traffic totals will reach 56.5 million, obliterating last year’s record of 51 million,” said Paul Griffiths, CEO of Dubai Airports.

Dubai International is the fourth-busiest airport worldwide for international passenger and cargo traffic.

LOG. WINDOW

Alstom and Cofely Besix FM to maintain Dubai tramway The Roads and Transport Authority of the Government of Dubai (RTA) has awarded a 13-year maintenance contract for the Al Sufouh tramway in Dubai, in the United Arab Emirates, to a consortium comprised of Alstom and Cofely Besix Facility Management (FM). The total value of the contract amounts to €120 million, including €68 million for Alstom, the consortium’s leader, and €52 million for Cofely Besix FM. It includes an option for a five-year extension in the amount of €50 million, The contract is for the maintenance of the rolling stock and fixed installations to be delivered by Alstom and Cofely Besix FM for phase 1 of the Dubai tramway project.

This phase 1 includes the supply of 11 Citadis tramsets, 10 km of track, 13 stations and other equipment (electrification, signalling, ticketing systems, etc.).

The maintenance contract includes preventive and corrective routine maintenance, equipment renewal, technical support, management of spare-parts inventories for the Citadis tramsets and

the implementation of major maintenance programme. It also involves maintaining the passenger stations, maintenance depot, track and platforms, points and crossings, power supply and distribution equipment, ground-level power supply system (APS), communication and signalling systems and other electromechanical installations in perfect condition.

Cofely Besix FM will be in charge of maintaining the stations and depot (MEP Mechanical, Electrical, Plumbing) and will provide associated services in the stations and along the track.

Calogi’s solution simplifies courier business Calogi has added another paper-free feature to its range of supply chain products, with a new solution to simplify the courier business. The new solution represents another step forward in Calogi’s quest to remove paper from the air cargo supply chain. Designed by industry experts and the Calogi Express Handling module provides airlines and integrators with complete control and visibility of their premium, timesensitive shipments.

In the past, integrators have been processing their courier shipments tendered to commercial airlines, using outdated paperbased processes. For example, airlines were distributing rate sheets to agents and cargo terminals alike, the cargo terminals were re-keying courier shipment data and invoices for GHA charges were being raised manually, 16

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Patrick Murray, Head of Calogi

this adds up to a considerable amount of time and effort for all parties. The Calogi courier solution now effectively makes paper documents obsolete and removes the need to rekey the data.

The new solution can shave 30 minutes from the time taken to process a courier shipment and the margin of error is reduced by 99 per cent.

Passenger traffic up, cargo volumes decline

Tony Tyler, Director General and CEO, IATA

The International Air Transport Association (IATA) announced global traffic results for January showing a 5.7 per cent rise in passenger demand but an 8.0 per cent decline in air freight compared to the same month in 2011. The underlying trend was for stronger passenger growth, while stabilized weakness in cargo markets continues.

“The year started with some hopeful news on business confidence. It appears that freight markets have stabilized, albeit at weak levels. And this is having a positive impact on business-related travel.

However, airlines face two big risks: rising oil prices and Europe’s sovereign debt crisis,” said IATA’s Director General and CEO Tony Tyler.

Freight markets stood at 8 per cent below January 2011 levels. The decline in air freight stabilized in the fourth quarter of 2011, at levels 4 per cent below the 2008 pre-crisis peak. There was a 2.5 per cent fall in global freight markets from December to January, but this is almost totally attributable to the impact of factory closures due to the Chinese New Year. Freight capacity contracted by 0.6 per cent year over year, and freight load factor fell to 41 per cent as deliveries of new widebody passenger aircraft offset measures to reduce freight capacity.

LOG. WINDOW

DP World honours committee of civil ports DP World, UAE Region has applauded the leading role of the Higher Committee for UAE Civil Seaports and Airport Security in promoting a safe and transparent work environment at the country’s ports. At an event held recently at Jebel Ali Port, Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region, presented HE Sultan Bin Yakoub Al-Zaabi, the Executive Director of the Higher Committee for UAE Civil Seaports and Airports Security, with an appreciation award, in recognition of the committee’s support and efficiency.

DP World, UAE Region reiterated its commitment to the strategic partnership with the Higher Committee for UAE Civil Seaports and Airport Security which helps the company augment the safety and security at its ports and plays a vital role in boosting the UAE economy.

Mohammed Al Muallem, Sr. VP and MD, DP World, UAE Region, said: “DP World has always taken port security and safety seriously, and is diligent about implementing security-related measures in the port environment. The Higher Committee for UAE Civil Seaports and Airports Security is a valuable partner in this exercise, and we thank

(L-R) Mohammed Al Muallem, Sr. VP & MD, DP World, UAE Region, Sultan Bin Yakoub Al-Zaabi, Executive Director of the Higher Committee for UAE Civil Seaports and Airports Security, Mahmood Amin, CEO, World Security

them for their support. We are confident that our continued cooperation will uphold Dubai’s status as the premier maritime industry hub in the region.”

HE Sultan Bin Yakoub Al-Zaabi, Executive Director of the Higher Committee for UAE Civil Seaports and Airports Security said: “The committee is following the instructions of HH Sheikh Hamdan bin Mubarak to enhance the pioneering role of the UAE ports through a number of specified procedures. This

pioneering role was promoted through the UAE’s implementation of The International Ship and Port Facility Security Code.

“DP World has always adopted best practices to enhance security of ships and port facilities while maintaining a commercially vibrant environment. We are proud of our accomplishments, because it shows the improved security level in the country’s ports and reiterates its distinction as a strategic partner to the committee at the country’s ports.”

Centre Point Logistics to support Geodis Wilson Dubai based Centre Point Logistics (CPL) and Geodis Wilson, a global freight management company, have inked an agreement to further support Geodis Wilson’s logistics operations in the UAE. The agreement was signed by Saleh Saeed Lootah, Chairman, CPL, and Sascha Geiken, Managing Director, Geodis Wilson in Dubai.

“We are pleased to have Geodis Wilson on our client list while supporting their regional growth and we are confident that the partnership will create synergies for optimizing our services and developing a powerful platform for mutual business opportunities in the logistics industry,” said Mr. Lootah.

Commenting on the partnership, Mr. Geiken said: “The demand for contract logistics is very high in the Middle East region. We are glad to work with CPL to

Saleh Saeed Lootah (L), Chairman, CPL, and Sascha Geiken, Managing Director, Geodis Wilson signing the MoU

further enhance our capabilities in the region and continue to deliver unique quality and customized solutions in the logistics industry.”

Geodis Wilson is a global logistics provider with a network of 6,400 employees in more than 50 countries. The agreement with CPL marks a new milestone in the development of our global network to offer our clients the best in class solutions,” added Mr. Geiken.

While Dubai is strategically located to serve the needs of growing trade, export and transportation of goods in the Middle East region, the agreement between CPL and Geodis Wilson will further establish its position as a large logistics hub where international Third Party Logistics (3PLs) companies provide cutting-edge contract logistics solutions to clients worldwide.

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LOG. WINDOW

Etihad posts $137m profit in 2011 Etihad Airways, the national carrier of the United Arab Emirates, reported a full year EBIT of US$137 million, on revenues up 36.0 per cent to US$4.1 billion. The results included earnings before interest, tax, depreciation, amortisation and rentals (EBITDAR) of US$648 million, with a net profit of US$14 million. The record result exceeded the airline’s 2011 target, which was to break even.

James Hogan, President and CEO of Etihad Airways, said: “This is an historic day for Etihad Airways and an amazing achievement for an airline just eight years old. Five years ago we said we would be profitable by 2011. Despite the global financial crisis, continued high oil prices, regional instability and natural disasters, we have delivered. Given the challenges faced by the industry, our combination of revenue growth and entry into profitability must be one of the best results of any airline in 2011.”

“The airberlin deal will be our most important catalyst for growth in 2012. It has given us instant access to Europe’s largest travel market, and will have a major impact

on revenues in 2012, with an expected contribution of up to US$50 million. And of course, 2011 marked the first full year of Etihad Airways’ strategic partnership with Virgin Australia, which offers 45 destinations in Australia and the Pacific, and boosted revenue by 700 per cent over what we achieved with our previous Australian airline partner.”

The CEO said cost control had been a significant contributor to the airline’s profit, with costs per available seat kilometre (CASK), excluding fuel, being cut by 4.6 per cent in 2011 and 16.6 per cent over the last two years, representing annual savings of more than US$187 million.

ENOC highlights guidelines for safe oil transfer Emirates National Oil Company (ENOC) organised a workshop to highlight the best practices in marine safety and pollution prevention from ships involved in oil cargo transfer ship to shore interface operations.

The workshop, held in Singapore, was supported by Oil Companies International Marine Forum (OCIMF) and its Ship Inspection Report Exchange (SIRE) administrators. The SIRE Programme is an initiative developed by the OCIMF to address, and improve global safety and pollution prevention from tanker ships.

The workshop also featured an interactive forum where the participants discussed various technical aspects, the challenges faced by the sector and suggested recommendations to improve the SIRE programme.

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Saif Al Falasi, Executive Director – EHSQ & Corporate Affairs of ENOC, said: “The workshop received overwhelming interest from the large tanker operators in the Far East. The event served as a perfect opportunity to highlight ENOC’s commitment to quality across all the geographic areas where the company operates. Addressing safety and pollution prevention is of particular significance to the shipping sector, and the workshop enabled knowledge transfer and exchange of best practices that will benefit all stakeholders.”

An OCIMF member, ENOC has been involved in promoting the SIRE programme to bunker barges operators conducting business in Singapore. The ENOC EHSQ Compliance Directorate has made it an annual event since 2009.

UAE non-oil foreign trade on a growth path

The United Arab Emirates’ non-oil foreign trade has been on the go for the first 10 months of 2011 compared to the same period of the previous year. Federal Customs Authority (FCA) initial statistical data indicates a year-on-year 22 per cent increase in non-oil foreign trade from January to the end of October 2011.

According to FCA, statistical data for the first 10 months of 2011 indicate a non-oil foreign trade increase from Dhs622.5 billion in for the same period in 2010 to Dhs759.8 billion in 2011, which is an increase of Dhs137.3 million. Data on import growth reveals a 24 per cent increase, thus moving from Dhs399.2 billion in 2010 to Dhs493.8 billion in 2011 for same period.

Exports witnessed a growth rate hitting 34 per cent during the period due to a value increase from Dhs70.2 billion to Dhs93.9 billion. Re-exports, however, experienced a growth rate of 12 per cent to go up from Dhs153 billion to Dhs172.1 bilion for the same period.

Each of India, the US, China, Japan, Germany, France, United Kingdom, Italy, Switzerland, and South Korea, respectively, topped exporters’ list to the UAE in October 2011 with a total value of Dhs36.1 billion, or 63 per cent of the UAE total imports.

“On the level of non-oil exports, India, Iran, Singapore, Turkey, Thailand, Switzerland, Saudi Arabia, Kuwait, Iraq, and Qatar, respectively, spearheaded importers from the UAE with Dhs6.6 billion, accounting for 67 per cent of the UAE exports,” the statement read.

Iran, India, Belgium, Iraq, Hong Kong, Saudi Arabia, Kuwait, Bahrain, Afghanistan, Kuwait, and Oman, respectively, topped the list in terms of re-exports with Dhs11.4 billion.

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LOG. WINDOW

‘Partners in Trade’ discusses lanes to Iraq and Afghanistan DHL hosted a special ‘Partners in Trade’ event on the importance of the Iraq and Afghanistan trade lane to customers in the UAE, as part of its continued efforts to facilitate and capitalize on regional trade lane relationships and partnerships. The event, which took place in Dubai, was hosted by Frank-Uwe Ungerer, Country Manager for DHL Express in the UAE and Phil Armatage, Country Manager for DHL Express Iraq & Afghanistan, with insights into each market.

With over 50 high profile executives from the business community, as well as Hadil Al Moosawy, 3rd Consul for Iraq, and Abdul Hady Othman, Iraqi Business and Trade Attache, the event provided an opportunity to talk about the challenges faced when shipping to Iraq and Afghanistan. As a result, the evening’s conversation covered

several broad areas such as customs regulations and clearance process, reassuring the company’s business partners and reinforcing its position as leaders in express shipping.

“Being the International specialists, we are always striving to offer our customers even better services to meet their ever changing business needs,” said Frank-Uwe Ungerer, Country Manager for DHL Express in the UAE.

Cruise tourism on crest of a development wave The positive outlook for the region’s cruise sector is boosting reciprocal tourism potential in key destinations across the GCC. The Middle East is recognised as a key growth market through to 2015 following major commitments to invest substantial amounts into new cruise terminals and associated infrastructure.

According to Reed Travel Exhibitions, the organisers of Arabian Travel Market, the expansion of regional facilities and the associated potential increase in revenue from tourism will provide a catalyst for further port development throughout the Gulf.

“Diversification of the tourism product to capitalise on new market segments, and significant government investment in supporting infrastructure, has already demonstrated real time benefits for Dubai, which has seen passenger figures quadruple over the last five years,” said Mark Walsh, Portfolio Director, Reed Travel Exhibitions.

The future potential of regional cruise tourism will once again be a highlight at 20

I March 2012

MSC Lirica vessel

this year’s Arabian Travel Market which takes place in Dubai from 30 April - 3 May. A dedicated onsite cruise pavilion will provide a platform for regional port operators, tourism service providers and international cruise lines looking to develop a well-rounded cruise product - both off and onshore.

Abu Dhabi also launched a 1,300-visitor capacity tented cruise terminal at Mina Zayed in late 2011, ahead of the construction of a permanent dedicated facility to accommodate 600,000 passengers by 2030.

KSA reveals over US$1.1 trillion worth of projects in 2012

Rizwan Shaikhani, Managing Director, RWI.

The Kingdom of Saudi Arabia, which represents the largest construction market in the Middle East and North African (MENA) region, has revealed a total of over 1,026 projects worth over US$1.102 trillion underway for 2012, according to a report from CPH World Media, a business research and intelligence firm.

The report shows that the growth is sustained by the Saudi government’s continuous efforts to liberalise the economy. The report further states that Saudi Arabia’s large oil revenues have made it possible for the construction industry to employ the extra liquidity for its growth. Also, continuing support and programs coming from the government have also played a key role in the segment’s development. The country’s construction segment is looking towards the development of mega city projects like King Abdullah Economic City and Knowledge Economic City (KEC).

Eyeing to play a major part in this forecasted growth, Rubber World Industries (RWI), the leading manufacturer of closed-cell rubber insulation ‘GulfO-Flex’ in the Gulf and South East Asia, and part of the international business conglomerate, the Shaikhani Group of Companies, has announced its plans to position itself as a major provider of world class high quality rubber based building materials through the strategic move of expanding its trading division.

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LOG. WINDOW

New oil terminal inaugurated in Tangier Horizon Terminals Limited (HTL), a wholly owned subsidiary of Emirates National Oil Company (ENOC), has inaugurated a new facility in Tangier, Morocco, with a total investment value of AED667 million (US$180 million; Euro 140 million). The new ‘Horizon Tangier Terminals Ltd’ has a strategic location on the North African coast at the western entrance to the Strait of Gibraltar where the Mediterranean Sea meets the Atlantic Ocean. It is located at the crossing of two major maritime routes, with the facility only 15 km from the European Union.

Horizon Tangier Terminal can store petroleum products including Fuel Oil, Gasoline, Gasoil with a total capacity of 508,000 cubic metres, and has access to road tankers and vessels. The terminal is equipped with two berths of 30,000 DWT to 70,000 DWT in addition to eight truck loading bays for petroleum products, rail wagon loading, blend plant and recirculation systems.

Saeed Abdullah Khoory said: “We are thankful to the Government of Morocco for the continued support and encouragement for the opening of the new facility. Horizon Tangier Terminal not only highlights the

With an investment of US$180m, the new facility has a strategic location

growing footprint of our storage business internationally, but is a strong indicator of the ENOC’s international expansion plans.

The terminal will contribute to the overall social and economic growth of Morocco, drive foreign trade and open up new opportunities for business in the petroleum sector. ENOC is committed to introducing global best practices at the terminal.”

Horizon Tangier’s new petroleum storage terminal has several advantages.

It is uniquely positioned to help address the shortage in storage facilities in North Morocco, which in turn can help reduce the historical costs associated with the supply of gasoil and motor gasoline that comes from central Morocco to the north, and eventually contribute to the growth of the Northern region. The Tangier terminal will also provide bunker services as well as serve the transit market for international petroleum marketing companies.

Mercator unveils Cargo Revenue Management solution In partnership with USA-based Revenue Technology Services (RTS), Mercator (the commercial arm of Emirates Group IT) has developed a fully integrated Cargo Revenue Management Solution which will roll-out to Mercator’s global customer-base in the first quarter of the year.

The system, currently being implemented by launch customer Emirates SkyCargo, results in the Mercator SkyChain product becoming a fully integrated cargo solution and will help airlines to optimize costs, increase operational efficiencies, and maximize revenues and profitability.

The Cargo Revenue Management Solution integrates with an airline’s core booking and operations process. This is a significant step for the industry, as it does away with the current practice of integrating with third party revenue management 22

I March 2012

Emirates SkyCargo aircraft

products and the large associated costs and overheads usually involved.

“We selected RTS as a partner because of the company’s diverse experience and demonstrated success in the field of revenue and profit management,” said Duncan Alexander, Vice President Mercator. “The demand forecasting,

overbooking, allotment management, and bid price optimization engines from RTS revenue management software have been integrated within SkyChain to provide an integrated, web-based interface, end-to-end cargo solution.”

Meanwhile, Mercator has also announced that Latin America’s second largest airline holding company, AviancaTaca Holding, has now gone live with its’ SkyChain cargo solution. The group’s airlines - TACA, Aerogal, TAMPA Cargo, and Avianca´s international cargo operations will now share cargo information across a single system.

SkyChain will be used to manage warehouses located across AviancaTaca’s network for bookings and cargo capacity. In addition, SkyChain will help optimize cargo operations and enhance the levels of service currently offered to AviancaTaca’s customers.

LOG. WINDOW

Fleet operators urged to adapt new techniques Bus companies, taxi firms and other commercial vehicle fleet operators can slash fuel costs and CO2 emissions if drivers learn eco-friendly techniques in a new training programme being introduced in the Middle East, its creators say.

Dubai based Dynamic Technical Training points to hard acceleration followed by hard braking, mostly in traffic conditions, as among the biggest contributors to fuel wastage, but says special instruction for drivers can quickly overcome these problems. Drivers can maximise the gear box usage by driving at 15km/hr in second gear at 1,000 revs per minute instead of driving at 15km/hr in first gear at 1,800 revs per minute.

The automotive service provider, DTT, will launch the region’s first ecofriendly training programme designed for

The region’s first eco-friendly training programme which offers significant cost savings for fleet managers will be showcased at Commercial Vehicles Middle East exhibition

professional drivers of large heavy goods vehicles at the Commercial Vehicles Middle East exhibition and conference taking place in Dubai from 6-8 March.

“Results in Europe illustrate that a small to medium enterprise operating 100 vehicles saved AED115, 584 in annual fuel costs after the training, representing 153,216kg less of CO2 emissions released in the atmosphere. A larger fleet operator, such as a taxi firm operating 1,200 vehicles, would save AED4,458,240 per year on fuel, with an annual reduction in CO2 emissions of 5,909,760kg,” said Nicolas Gondard, Business Development Manager of Dynamic Technical Training.

Environmental concerns in the Middle East were highlighted by a 2010 report from market research specialists Maplecroft which placed the UAE and Saudi Arabia alongside Australia, the USA, Canada, and Netherlands as the six nations with the worst performance in relation to CO2 pollution.

Sea trade and maritime key to sustained economic growth Trade and port activity have gathered renewed interest amid concerns of economic stagnation in the Eurozone, geopolitical strife in Iran and Southwest Asia and piracy in international waters.

While there is no denying that these will impact the flow of international freight and commodities in 2012, the GCC is rapidly emerging as one of the most important transport and logistics hubs in the world, the organisers of a marine event explained.

As a percentage of world trade, the GCC today represents about 3 percent of imports and 5 percent of exports.

Middle East seaports are expanding vigorously, in line with this trend. Over the past few years, a total of US$46.5 billion has been committed to develop the 35 ports in the region.

There are two major reasons driving this growth. On the one hand, the favourable geographic location of the GCC countries provides them with a strong opportunity to serve as hubs not only along the Europe–Asia shipping lanes, but also for northern and central Africa. On the other

hand, the region’s ongoing economic diversification has meant the upgrade of existing infrastructure across all transport modes. On both these counts, the benefits accruing to the region are long-term in nature.

The emergence of India and China has presented the GCC with substantial opportunities as hubs. As a result, GCC ports need to ramp up capacity, not only

to cater to their own increasing needs, but also to develop a hub strategy. Most of them are ideally placed as a trade platform between Asia and the Far East on one hand and the West, Central Europe, and Africa on the other. In fact, seaports in the UAE account for 61 per cent of the GCC trade volume and this share is expected to rise with new capacity being added.

The World Ports & Trade Summit is one such platform, which has been conceived with the goal of addressing all the key issues and themes relating to ports and sea trade besides acting as the leading platform for exhibiting the latest products and services within the sector. To highlight the industry outlook and latest trends in maritime trade and investment the summit will have three dedicated forums, featuring cargo owners, shipping companies, third-party logistics providers, freight forwarders, port authorities and business consultants. The World Ports & Trade Summit 2012 will be hosted in Abu Dhabi from April 2-4. The event is organised by Turret Media and Seatrade.

March 2012 I

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TRENDS

The logistics sector in the GCC has been on a growth trajectory as the governments continue in high value investments to improve various modes of transportation including rail, which has been virtually almost nonexistent in the region.

Top five mega trends in GCC logistics sector 24

I March 2012

TRENDS

And the logistics in the GCC is also witnessing all the right mega trends that are likely to enhance the region’s prominence as a logistics hub, claims a recent report titled ‘GCC Logistics Sector: Top 5 Mega Trends and their Impact on the Sector’ by global research firm Frost & Sullivan.

The strategic location of the GCC should also be noted as the union is the gateway to a market of over three billion consumers and over 60 per cent of the world’s population is within an eight hour flight. According to a Booz & Company analysis, logistics represents around 2.3 per cent of the GDP of the GCC countries (or 4.3 per cent of GDP excluding the oil and gas sector). Compared to, for example, the sector’s average six per cent contribution to GDP in the European Union, this can be considered low.

However, Booz & Company estimates that the transportation sector will likely register approx. a seven percent CAGR, only slightly surpassing overall GDP growth. But logistics services, that is, warehousing, contract logistics, and freight forwarding, are expected to show substantially higher annual growth rates of 10 percent or more.

GCC’s major players The Frost & Sullivan report highlights that the value of the GCC’s logistics sector is estimated at around US$35 billion, of which three major economies, namely, Saudi Arabia, the United Arab Emirates (UAE) and Oman account for around 85 per cent share. Oil & Gas, infrastructure and trading segments are the leading contributors for the logistics sector in the region.

In the GCC, the domestic services segment (inland transportation and warehousing) of the logistics market is dominated by local players, while the international services segment (freight forwarding and international transportation by air/ocean) is dominated by multinational players.

Top mega trends Analysing the latest trends in the GCC logistics sector, the report identifies top five mega trends and their likely impact on the industry. The list below serves as a useful tool for companies currently operating in the region as well as those

international players that have a plan to launch operations in any of the GCC countries, which are namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

I. Development of rail transport network (initially for public transportation and later to be used for cargo transportation too), can be considered as the most important trend happening in the GCC logistics sector. The region’s largely traded commodities such as chemicals, petrochemicals, mineral ores and mining products, metals and basic materials such as stone, concrete, and cement used in construction require to be transported in bulk quantities, for which, rail is the best mode of transport. Hence, realisation of this

been positively impacting the logistics services market.

III. Focus on development of domestic manufacturing industries, spearheaded

by Saudi Arabia is another major trend in the GCC, which is likely to impact and drive the logistics sector. Development of manufacturing activities would lead to the emergence of allied industrial activities, which would evolve into a complete supply chain entity in the country over the long term.

IV. Promoting the development of oil related (petrochemicals) manufacturing clusters as well as non-oil clusters (such as electronics, food, pharmaceuticals and automotive) would result in a significant

The value of the GCC’s logistics sector is estimated at around US$35 billion, of which three major economies, namely, Saudi Arabia, the United Arab Emirates (UAE) and Oman account for around 85 per cent share. Oil & Gas, Infrastructure and Trading segments are the leading contributors for the logistics sector in the region demand for logistics services. Such development would result in a sustainable market for logistics services.

new transport mode in the region can turn out to be a landmark for the logistics sector.

II. Focus on development of Free Trade Zones (FTZ or Free Economic Zones) by the GCC nations has been a major driver for their non-oil economic growth, which has had a profound impact on the logistics sector. Due to the promotional policies in this regard, the region has witnessed a significant proliferation of multinational organisations setting up their continent level distribution centres (for air and sea modes) in the GCC nations, which has

V. Development of cargo specific sea ports (spearheaded by the UAE with Jebel Ali port) has been another mega trend that has resulted in making the GCC the logistics hub for Europe-Asia trade activities. Jebel Ali Port is DP World’s flagship port, in addition to being the world’s largest man-made harbour and the largest container port between Rotterdam and Singapore.

Located 35 km to the southwest of Dubai, the modern port employs stateof-the-art equipment, including the world’s largest gantry cranes capable of lifting four 20 foot containers or two 40 foot containers simultaneously- a total capacity of 80 tonnes, twice that of traditional cranes. These improvements will enable the port to cater to the new generation of mega-ships (14,000 + TEU).

Last December, DP World has announced plans to expand the port by creating March 2012 I

25

TRENDS

an additional four million TEU capacity, resulting in total capacity at Jebel Ali reaching 19 million TEU by 2014.

Best practices for the sector I. Logistics service providers in the region should actively examine the potential emerging from each of the mega trends, for example, develop customised services for free trade zone based customer companies.

II. Logistics service providers should also actively pursue opportunities to provide integrated supply chain solutions to encourage/help nascent manufacturing bases in the region to evolve further into fullfledged industrial clusters. This would also gradually reduce the overall logistics sector’s heavy reliance on oil industry activities.

III. Direct/Active participation of Logistics Service Providers (LSP) in development of rail transport mode (for cargo segment), if needed through investment in development of infrastructure is recommended since it is likely to reward them with continued benefits over the long run, as witnessed in case of ports by DP World, PSA and APM 26

I March 2012

In the GCC, the domestic services segment (inland transportation and warehousing) of the logistics market is dominated by local players, while the international services segment (freight forwarding and international transportation by air/ocean) is dominated by multinational players Terminals across the world.

IV. Saudi Arabia, the UAE and Oman are likely to continue contributing a lion’s share of the logistics sector’s activities and revenues; hence LSPs should build strong service networks covering these countries, both by inter-connecting them as well as building linkages for international logistics services.

Strategic conclusion The logistics sector in the GCC is on a definite growth trajectory and is witnessing all the right mega trends that are likely to enhance the region’s prominence as a logistics hub. While development of exclusive cargo ports and FTZs is enhancing the region’s potential for international trade related logistics, development of rail transport mode for cargo and promotion

of domestic manufacturing activities would result in growth of the integrated supply chain services business.

LSPs on their part should actively encourage/support industrial groups trying to build manufacturing setups in the region by providing complete (if needed, customised) logistics services. LSPs should also consider taking up active role in the development of logistics infrastructure (especially investing in transport mode for cargo) for high potential returns in the long run. LSPs should also build strong service networks covering the above said three major economies in the GCC for linking them internally and externally.

Credits: The bulk of this article was contributed by Transportation and Logistics Practice - Middle East, North Africa & South Asia, Frost & Sullivan

Media Partner

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Working Towards the Integration & Implementation of Effective Logistics & Transportation Systems

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OVERVIEW

Booming logistics sector in Turkey At a point where two continents meet With a fast growing economy, Turkey is taking advantage of its strategic location between the West and East by acting as a transport corridor to move goods as well as people. Also surrounded by seas in the north, west and south, the government is pursuing ambitious plans to improve all port facilities.

28

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OVERVIEW

Bosphorus Bridge, Istanbul

The International Monetary Fund (IMF) defines the economy of Turkey as an emerging market. The CIA classifies it as a developed country and other economists see Turkey as a newly industrialised country. Whatever the classification is, the country between two continents has a rapidly growing private sector and the economy is doing well despite the ongoing crisis in other European countries.

According to OECD, “Turkey was directly affected by the global crisis but showed considerable resilience since then. The strong macroeconomic policy framework provided support. With the recovery under way, a golden opportunity for structural

reforms arises from the sharp drop in capital costs.”

With a GDP of US$736 billion (2010 - Current Prices) and a per capita GDP of US$10,079 (2010), Turkey is a leading producer and exporter of textiles, ships, automobiles, transportation equipment, construction materials, agricultural products, consumer electronics and home appliances.

In 2010, exports value reached US$114 billion and imports value was at US$185 billion. The nation earned almost US$21 billion from the tourism sector, with around 28.5 million people having visited Turkey in 2010. The country also registered a Foreign Direct Investment (FDI) of US$9.1 billion.

Unrealised growth potential The transportation sector is well advanced.

The government has launched several projects to establish high speed rail links between major cities and parts of the country. The share of the logistics sector in Turkey’s GDP is estimated between 8-12 per cent. Thus, the size of the sector can be estimated as being around US$65-95 billion in 2008, remarks the “Transportation and Logistics Industry Report - January 2010” by Deloitte. The size of the Turkish transportation and logistics industry is around US$59 billion, while the share of the logistics service supplier market is US$22 billion.

March 2012 I

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OVERVIEW

The industry has tripled since 2002 while the share of logistics service suppliers has increased by only seven per cent, which signals an unrealised growth potential for logistics service companies. The industry has grown by 20 per cent on average in the last five years and the forecasted size is US$120 billion in 2015.

According to estimates, there are 2,000 customs clearance companies, 1,200 international road transport companies, 1,000 international maritime companies, 250 freight-forwarders and 200 bonded warehouses in Turkey which offer logistics services to international trade firms.

Largest fleet in Europe Investments in the transportation system are concentrated on land transportation infrastructure, and the country has developed one of the largest land transportation fleets in Europe, according to the notes by the Investment Support and Promotion Agency working under the Prime Ministry of Turkey. The network of highways has been developed significantly and the highway length now stands at 64,865 km, of which 2,080 km are motorways.

Road transport is the major mode of freight and passenger transportation in Turkey. At present 95 per cent of passengers and 90 per cent of goods are delivered by highway transport. The network of highways has developed significantly and its 30

I March 2012

Over half of Turkey’s exports and imports are carried via the seas, with respective shares of 50.7 per cent and 53.2 per cent in total. Maritime transportation is followed by road transportation, with a share of 40.3 per cent of exports and 22.9 per cent of imports in 2010. Meanwhile, air transportation comes third for both exports and imports. importance has increased. The government plans to further modernise existing roads and construct new roads at a cost of TL37 billion (US$1=TL1.8 as of March 2012).

Turkey is also involved in the construction of the Black Sea Ring Highway, which is planned to have 7,140 km of length and to pass through 12 BSEC countries.

Furthermore, to mitigate road congestion in Istanbul, the country’s financial capital and most populous city, the construction of a third Bosphorus Bridge is being considered. The two existing bridges are scheduled to be privatised, highlights the Deloitte report.

Benefits of marine transport Being surrounded by seas on three sides with the Black Sea, Aegean Sea and the Mediterranean as well as the straits of Dardanelles and the Bosphorus, the country has a competitive advantage in maritime transport. The length of the coastal borders is 8,333 km.

Over half of Turkey’s exports and imports are carried via the seas, with respective shares of 50.7 per cent and 53.2 per cent in total. Maritime transportation is followed by road transportation, with a share of 40.3 per cent of exports and 22.9 per cent of imports in 2010. Meanwhile, air transportation comes third for both exports and imports.

Rail & air connections Excluding the ongoing projects, the length of the railways exceeds 11,000 km run by a state directorate. Rail has long been an option to transport goods and people across the country and the government has initiated modernisation projects to improve services as well as the infrastructure. The allocated budget for railway development reaches US$23.5 billion, according to sources.

Back in 2005, the World Bank approved a loan of EUR143.7 million to finance the first phase of the Rail Restructuring Project in Turkey. According to sources, the project is

OVERVIEW

infrastructure, vehicles, environmental standards, the development of logistic networks and the improvemen foreign trade policies.

The current transportation network in Turkey is behind EU-27 standards mainly in terms of the density of highways, motorways and railways. The State Planning Organization has underlined this fact in their 20 Annual Programme, which describes steps for the development of the transportation industry. Further det & %%#! &$ $$ ! $& % * &# ) ! $% $ &$%#) &#' ) + of the Development Programme, signalling the potential for future growth, are provided at the back of 12 IGEME (Export Promotion Center of Turkey), 2009 report.

11

Turkish logistic companies mainly serve the sectors in which most foreign trade is concentrated: these inclu textiles/garments, automotive, FMCG, retail and food, petrochemicals, machinery production and construction industry. The share of construction and construction equipment has significantly increased sin 2002.

According to the Logistics Performance Index * + $$& ) % !# &# ) $ "#!' logistics performance. LPI is based on a survey of operators on the ground worldwide, providing feedback transportation has been increasing continuously as seen in the following table. the logistics friendliness of the countries in which they operate and those with which they trade. Economies logistics service suppliers has only increased by 7% which signals an unrealized growth potential. Frei 12 divided according to 2008 GNI per capita, calculated using the World Bank Atlas method. Turkey belongs ! * &# ) ! $% $ &$%#) &#' ) + &$%#) $ %# " $ ( % $ # upper middle income group having a GNI per capita between US$ 3,856 - US$ 11,905. Turkey ranks fou billion, while the share of the logistics service supplier market (Third Party Logistics) is estimated as US$ among 24 upper middle income countries. The LPIs of the top ten upper middle income countries from estimated between 8-12%. The size of Turkish transportation & logistics industry is determined as US$ study are exhibited below. 11 in Turkey as of September 2009. The share of the transportation and logistics sector in Turkey,$

Figure 3are LPIemployed of Top 10 Upper Income Countries According to TUIK, 1.1 million people in theMiddle transportation-communication and storage servi Logistics Performance Index of Top 10 Upper Middle Income Countries LPI of Top 10 Upper Middle Income Countries Source: World Bank

2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6 Rail has long been an option South Africa Estonia Malaysia to transport goods and people Argentina Chile Latvia across the country and the Turkey Poland Hungary government has initiated Czech Republic Czech Republic Hungary modernisation projects to Poland Turkey Latvia improve services as well Chile Argentina Malaysia Estonia as the infrastructure. The South Africa 2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6 allocated budget for railway Source: World Bank LPI of Top 10 Upper Middle Income Countries development reaches US$23.5 Source: World Bank; Deloitte Industry Report According to TUIK, 1.1 million people in theMiddle transportation-communication and storage servi Figure 3are LPIemployed of Top 10 Upper Income Countries billion, according to sources. annually on average in the last five years and Airlines is one of the fastest growing airlines

in Turkey as of September 2009. The share of the transportation and logistics sector in Turkey,$

study are exhibited below. its forecasted size is US$120 billion by 2015. It in Europe and the 11 leader in traffic and estimated between 8-12%. The size of Turkish transportation & logistics industry is determined as US$ among 24 upper middle income countries.

TheWith LPIs of should the top upper middle from beten remembered that theincome value of countries the capacity growth in Europe (AEA, 2009). billion, while the share of the logistics service supplier market (Third Party Logistics) is estimated as US$ logisticsUS$ sector3,856 is directly related to the Turkey size of ranks fou and liberalisation measures an Adaptable Program Lending (APL) with amiddle deregulation upper income group having a GNI per capita between - US$ 11,905. ! * &# ) ! $% $ &$%#) airline &#' ) + Turkey’s &$%#) $ and %# " $ ( % $ # imports with foreign introduced, several total cost of about US$450 million. Among divided according to 2008 GNIprivate per capita,companies calculated using the exports World Bank Atlasand method.

Turkey belongs 12 logistics service suppliers has only increased by 7% which signals an unrealized growth potential. Frei trade resuming its growth, promising have enteredofthe market that resulted in athey operate the objectives of the project is “to improve the the logistics friendliness the countries in which and those with which they growth trade. Economies transportationdramatic has been increasing continuously as seen potential in the followinglogistics table. service suppliers. growth air transport Among financial viability, productivity, and effectiveness logistics performance.

LPI isinbased on asector. survey of operators on awaits the ground worldwide, providing feedback the major airports that rank high in international Combined transportation will also gain more of railway operations, which shall be achieved According to the Logistics Performance Index * + $$& ) % !# &# ) $ "#!'

importance in the future. rankings are Ataturk Airport (Istanbul), through separation of infrastructure from In freight transport, priority is given to Esenboga (Ankara), Adnan Menderes (Izmir) operations, increasing accountability2002. and construction industry.

The share ofAirport. construction and construction equipment haswhile significantly rail and maritime transport, ports will increased sin and Antalya International competitiveness in rail operations, restructuring become logistics centers that facilitateproduction and and rationalisation of passenger services, staff textiles/garments, automotive, FMCG, retail and food, petrochemicals, machinery combined Experts that these inclu Outlook and trends adjustment, as well as institutionalisation and logistic Turkish companies mainly serve the sectors in which mosttransport. foreign trade is underline concentrated: logistic services are new in Turkey but it is The importance of logistics is well understood privatisation of non-core activities.� 11 report.

IGEME (Export Promotion Center of Turkey), 2009 growing fast. Standing at the crossroads in Turkey and the government aims to When it comes to air transport, Turkey has 12 of the Development Programme, signalling the potentialof for future growth, are provided at the back of & %%#! &$ $$ ! $& % public-private * &# ) ! $% $ major trade routes makes Turkey an introduce more partnership &$%#) &#' ) + 45 airports, 13 of which serve international Annual which steps for the development the transportation Further det important of candidate to become a industry. major (PPP) models fordescribes infrastructure investments. flights. In 2010, there were more than 100 Programme, motorways and The Organization has this fact in their 20 hub in the nearunderlined future.

The industry hasrailways. grown by 20 perState cent Planninglogistics million airline passengers in Turkey.highways, Turkish

The current transportation network in Turkey is behind EU-27 standards mainly in terms of the density of 31 March 2012 I foreign trade policies.

infrastructure, vehicles, environmental standards, the development of logistic networks and the improvemen

PREVIEW

LOG. LEO Awards 2012 Now accepting nominations to recognise the best The annual LOG. LEO Awards ceremony is set to take place next month in Dubai, UAE. As ‘LEO’ stands for Logistics, Excellence, and Optimisation, the industry’s outstanding achievers will be once again recognised at this ceremony.

Organised by LOG. Middle East, the region’s premier publication for the logistics and supply chain industry, the event will award achievers across five main categories, selected by an independent panel of experts.

This year’s event will take place on Thursday 19 April and like previous editions, will feature a panel composed of experts who have devoted years to transportation, logistics and supply chain industries.

Currently, the organising committee is in 32

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the process of inviting and selecting the panel members. The members’ full names and short biographies will be published on our website as well as in the next edition of LOG. Middle East.

Nomination guidelines The LOG. LEO Awards 2012 nomination form is available on our website and it can be submitted to the committee online or by fax until the last day of submission.

Being an industry event, the organising committee has also announced certain guidelines for the nomination process.

The revised rules aim to ensure a smooth and transparent process through which the best in the industry will be recognised.

The below rules will guide anyone

intending to nominate an executive: • The logistics community can nominate any executive for any of the categories within the defined period as long as they believe that the nominee deserves to be awarded in one of the categories.

• One individual can only nominate one executive.

• The panel members themselves cannot be nominated.

• The nomination form should be fully completed and submitted to LOG. LEO Awards Committee by post, fax, email or online. Incomplete forms cannot be considered and the contact details of the person submitting the nomination must be accurate for any further verification or clarification by either

PREVIEW

the committee or panel.

• Intense competition is expected and the number of nominations increases annually.

So, the person nominating an executive should be able to support his/her arguments in favor of the nominee. S/he should clearly explain why the nominee deserves to be awarded in that particular category and list down accomplishments relevant to the logistics industry. Specific information such as a track record, regular promotion, case studies will help the panel understand and evaluate the nominee better.

• The nomination text should be brief, to the point, objective, and 200 to 500 words maximum.

• Email attachments to support the nomination are acceptable.

• The votes are verified by an independent monitoring panel composed of highly respected and experienced industry executives.

Award categories The LOG. LEO Awards ceremony will once again celebrate industrial excellence. The

winners of the first four categories listed below will be decided by online voting and the last award of Lifetime Achievement will be solely selected by the jury.

• Young Achiever of the Year • Supply Chain Manager of the Year • Innovator of the Year • Sustainability Champion of the Year • Lifetime Achievement Award Nomination criteria Young Achiever of the Year: • Nominees should be under 35 years of age as at 30 March 2012 • Known personal achievements in the industry • Contributions to the Transport and Logistics industry • Demonstration of leadership and organisational skills • Proven project implementation skills • Creativity and professionalism Supply Chain Manager of the Year: • Lasting and high value innovation in supply chain operations • Outstanding performance with regard to

people, environment and corporate governance • Restructured supply chain processes for cost savings, gains in efficiency and improved customer service • Applied an innovative technology that resulted in cost savings and efficiency gains and improved customer service Innovator of the Year: • Expansive thinking in supply chain management • “Outside the box” thinking when solving challenges or driving value through the supply chain • Coordinated business functions across the industry and developed beneficial ways to strengthen supply chain relationships • Delivered success through leading and original supply chain methods Sustainability Champion of the Year: • Contribution to environmental initiatives • Supported research and analysis of transport-related environmental issues • Initiated or implemented solutions that help reduce any negative effects of the industry on our environment • Out-performaned national or global environmental guidelines March 2012 I

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PREVIEW

• Implemented substantial measures to improve and develop their environmental records • Recognised as making sincere efforts to fully integrate environmental awareness into all areas of business strategy and operations • Habit of directing business partners towards better environmental standards Lifetime Achievement Award: • Actively involved in the supply chain and logistics industry for at least 20 years • Lifetime dedication and commitment to the growth of the logistics and supply chain industry • Significant contribution for excellence in logistics and achievements in improving the overall logistics management processes Full day event at a five star venue The 2012 ceremony will take place at a high class venue in Dubai, UAE. The five star Ibn Battuta Gate Hotel, close to the ‘New Dubai’, will host the glitzy full day event. There will be insightful seminars in the morning by leading international companies with a networking break which will allow the guests to interact and 34

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exchange business cards.

The coffee break will be followed by the second batch of seminars where the experts will again share their expertise and experiences with the delegates. The LOG. LEO Awards ceremony is scheduled to start at 1pm and will take around an hour during which the awards will meet their respective owners. The sumptuous buffet lunch is to be followed by the afternoon session of seminars. The event will come to a close at approximately by 5pm.

The Ibn Battuta Gate Hotel Mövenpick Hotels & Resorts, an international upscale hotel management company with over 14,000 employees, is represented in 25 countries with 71 hotels and resorts currently in operation.

A further 30 properties are planned or already under construction in Ankara, (Turkey), Dubai (four projects); Abu Dhabi (three projects), Shanghai (China), and Dharamshala (India).

Focusing on expansion in its core markets of Europe, Africa, the Middle East and Asia, Mövenpick Hotels & Resorts specialises in business and conference

hotels, as well as holiday resorts, all reflecting a sense of place and respect for their local communities. Of Swiss heritage and headquartered in Zurich, Mövenpick Hotels & Resorts delivers premium service, culinary enjoyment and sustainable environments - all with a personal touch.

Due to the high quality and comprehensive services on offer by a professional staff, Ibn Battuta Gate Hotel was chosen as the venue once again.

The hotel’s proximity to Jebel Ali Free Zone as well as other free zones like Dubai Media City and Dubai Internet City which host many companies in transportation and logistics has also played a role in this selection.

Hurry to nominate Everyone in the industry is invited to submit online nominations for the award categories. Your nominations will ultimately decide the winners at this year’s ceremony.

Please do not hesitate to contact us for any further inquiries: E: logleo@gutenberg-dubai.ae T: +971 4 4334360

LOGISTICS

EXCELLENCE

OPTIMISATION

INVITATION TO NOMINATE LOG.Middle East, the region’s premier publication for the logistics and supply chain industry, has initiated the LOG.LEO Awards.

The jury and logistics community – by web vote – are honouring outstanding individuals with the LOG.LEO Awards in the following categories:

Young Achiever of the Year Supply Chain Manager of the Year Innovator of the Year Sustainability Champion of the Year Lifetime Achievement Award LOG. Middle East once again invites you to LOG.LEO Awards 2012; a time to celebrate the best of the supply chain and logistics industry.

We kindly ask you to submit your nominations for above-mentioned categories no later than 5 April 2012 as we name this year’s winners.

AWARDS CEREMONY DETAILS: Date: 19 April 2012 Venue: Ibn Battuta Gate Hotel, Dubai Dress: Formal / National dress For more information, please contact: logleo@gutenberg-dubai.com Tel: +971 4 4334360 Looking forward to seeing you there!

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REVIEW

Showcasing new technologies in rail There is a definite need for the creation of robust and strong legislation, rail regulations and national standards to enable the railway industry to be effectively governed and monitored from the start to avoid expensive mistakes later, argued experts at a recent rail conference in Dubai, UAE. The governments of the Gulf Cooperation Council (GCC) have been smartly investing in mega infrastructure projects to boost their economies and at the same time ease the movement of goods and people as in, out and through their territories.

The Gulf’s major cities are in an intense competition with each other to create regional and international ‘logistics hubs’ and as statistics show, Dubai, Abu Dhabi (UAE) and Doha (Qatar) are considered to be ahead of the game when it comes to air and sea port facilities.

In the last few years rail has also climbed up in the list of investments with a priority. The Arab world’s largest economy, Saudi Arabia, boasted the only rail system 36

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in the GCC for many years which was actually built to transport goods. Just recently, a new rail system was launched to transport visitors between holy sites in the Kingdom. Of course, the emirate of Dubai has built and opened the region’s first passenger metro and two lines are currently operational. The Dubai Metro is also the world’s longest driverless metro system in the world.

The GCC governments have announced ambitious railway projects which include the Etihad railway that is to create a network between all GCC countries as well as to Europe. While over $250 billion worth of investment is being planned in the railways sector in the region, the GCC is leading

the way with expected rail project spend of around $245 billion, according to the MEED Railway Report 2011. The Gulf’s visionary leaders are well aware of the need to create sustainable transportation networks both for goods and people offering the choices of air, sea, and road as well as rail freight.

Middle East Rail At a time when international companies are keeping a close eye on the governments’ plans to establish rail networks, a high level event in Dubai has brought industry experts and product and service providers under one roof to address the challenges and opportunities in building the region’s rail networks.

REVIEW

The Middle East Rail 2012 exhibition and conference, organised by terrapinn, was opened by H.E. Dr. Nasser Saif Al Mansoori, Director General of the National Transport Authority UAE. Dr. Al Mansoori stated that he is proud of NTA’s dedication to the railway industry and its collaborative working with local and international railway organisations and such conferences help them keep the spotlight on the railway industry and promote its use in the UAE and the region.

Over the two days of the conference, which took place from 31 January-1 February, underlying issues affecting the creation and nurturing of the railway industry in the UAE and the region were discussed by speakers from various countries including the UK, Germany, France, Spain, Japan, China, Holland, Sweden, USA, Turkey, UAE and Qatar. The experts delivered presentations on their respective countries’ railway systems and future plans to improve.

The suppliers also discussed the railway technology available in the market place such as the European Traffic Management System (ERTMS), European Train Control System (ETCS), high speed technology such as the Maglev, Super Conductivity Maglev, bi-modal trains using diesel as well as electric catenary systems and train telecommunication systems.

The experts and practitioners involved in the railway debate highlighted that the key lessons that must be learned in the UAE and the region is the ‘definite need for the creation of robust and strong legislation, rail regulations and national standards to enable the railway industry to be effectively governed and

The lesson that must be learned in the UAE and the region is the ‘definite need for the creation of robust and strong legislation, rail regulations and national standards to enable the railway industry to be effectively governed and monitored from the start to avoid expensive mistakes later’.

The opening of the Middle East Rail 2012 exhibition and conference

“The key success factor of the railway industry lies in effective railway legislation, regulations and standards also the promotion and acceptance of the railway industry as a viable, practical, and cost-effective mode of transport for both freight and passengers. Social benefits of the railway industry must be realised (e.g. employment opportunities, encouraging local businesses, and technology transfer to the UAE)” - H.E. Abdulla Al Katheeri, Executive Director, Land Transport Sector, NTA monitored from the start to avoid expensive mistakes later’. Another key lesson was the need to bolster investor confidence in law and to engender certainty, predictability and confidence in the emerging railway industry.

Presiding over the conference awards ceremony, another expert H.E. Abdulla Al Katheeri, Executive Director, Land Transport Sector, NTA said, “The key success factor of the railway industry lies in effective railway legislation, regulations and standards also the promotion and acceptance of the railway industry as a viable, practical, and costeffective mode of transport for both freight and passengers. Social benefits of the railway industry must be realised (e.g. employment opportunities, encouraging local businesses, and technology transfer to the UAE).”

Global ICT provider - Huawei Huawei, a global information and communication technology (ICT) solutions

provider, showcased its portfolio of railway solutions at the event. A significant focus for Huawei Enterprise in the next few years is to address the railway industry’s need for security and reliability to be at the forefront of this major investment.

The company’s range of communications solutions, including GSM-R, a reliable and secure communication system developed specially for railways application development; Datacom, transmission networks; high-speed railway communications (HRC) and intelligent video surveillance solutions are critical to the construction and operation of modern railway infrastructure. GSM-R and HRC projects such as the Maglev high-speed train, China, the TransTeleCom DWDM network, Russia, the LTE partnership with ADIF in Spain, and the video surveillance deployment with Turkish Railways, are among Huawei’s major projects in the railway sector.

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REVIEW

Huawei is well established in the region providing communications networks to top telecom operators including Etisalat in the UAE. Already known for establishing a DWDM network with du (telecom operator) for the Dubai Metro that now links its 18 stations, Huawei understands conditions in the region and the construction challenges customers face from the environment and varied terrain.

The LOG. Middle East team caught up with Rabii Ouadi, Head of Business Development MENA, Railways Telecom Solutions following a panel efficient at the event to find out more about the innovative solutions Huawei offers to the rail sector: “To start with, Huawei offers end-to-end information communications technology solutions in cloud computing, data centers, campus networks, video conferencing, unified communications, IP contact centers, optical transmission, and wireless networks.

Our company’s capabilities extend across vertical industries including government, transportation, power, finance, oil & gas, smart cities and more and our products and services ensure that an organisation’s ICT infrastructure and networks are highly secure, scalable and reliable.”

Among the major products of Huawei for the rail sector is the GSM-R, which is basically a telecommunications system for the railway sector – operators, employees and staff. GSM-R is used for signaling and data transmission such as speed control, guidance, and interlocking systems.

“I shall underline that this type of data is not just regular information. It is highly sensitive and critical because if the interlocking system does not work properly and the vital information is not delivered between the train and control center in an efficient and safe manner, costly rail accidents may happen. High availability (99.9%) is also another factor here. There cannot be any outage, blackout or loss of signal. Can we imagine a train being out of control?” explained Mr. Ouadi.

The GSM-R is not actually something new.

The system has been in the market for some time and specified by European standards since early 2000. But it is considered brand new in the Middle East as there is no sophisticated rail system yet. “Etihad Rail has been very smart from the beginning and selected GSM-R as the standard communication system for its network.

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demonstrated an ability to succeed and set standards of excellence. Nominees were selected by an independent judging panel of international and regional industry specialists.

“Nominations to this year’s awards truly reflected the continued drive, development and growth of the region’s rail industry.

We celebrated with the people who have created and shaped this dynamic and exciting industry,” said Laura Parker, GM of Middle East Rail at terrapinn.

While over $250 billion worth of investment is being planned in the railways sector in the region, the GCC is leading the way with expected rail project spend of around $245 billion We are happy to share our expertise in establishing this system,” added the business development manager.

GSM-R comes with the transmission network which includes antennas placed along the railway tracks. To transmit data between the trains and central operations room through antennas, fiber optic, synchronised data hierarchy (SDH) or datacom systems can be utilised.

“Two important factors which are sand and dust and humidity need to be considered in this region. Outdoor equipment such as antennas are designed in a way to withstand the extreme conditions in a desert climate. They are actually the same equipment we supply to telecom operators such as Etisalat or du,” shared Mr. Ouadi.

“We have more than 10 years of experience in the Middle East and we understand our customers and their unique requirements. This gives us advantage over other competitors. Furthermore, we start to see lots of activity in the rail sector. GSM-R is already deployed both in Saudi Arabia and the UAE. Since the GSM-R is mandatory in the UAE, other countries as part of the Etihad Rail will also have to embrace the same technology to be able to communicate with each other throughout the network that will cover the entire GCC,” concluded Mr. Ouadi.

Setting standards of excellence The rail event also featured an awards ceremony. The Middle East Rail Awards ceremony recognised and celebrated companies and individuals who have

H. E. Eng. Abdulla Salem Al Katheeri, Executive Director of the National Transport Authority presented eight awards. H. E. Mattar Al Tayer, Chairman of the Board and Executive Director of the Roads and Transport Authority (RTA), was awarded Rail Visionary of the Year, recognising His Excellency’s uncompromising commitment to the development of the urban rail sector.

The Road and Transport Authority scooped ‘Rail Project of the Year’ for the Dubai Metro - Red and Green Lines.

‘Best Rail Operator’ was won by Serco Middle East. Voestalpine were rewarded for their leading innovative technologies that continually enhance rail projects and passenger experience and were awarded ‘Most Innovative Use of Technology’.

‘Best Communications Provider to the Rail Industry’ was won by Kapsch CarrierCom with Mr Selim Bouri, Sales Director Railways MENA and Turkey picking up the award.

‘Special Merit Award for Commitment to the Environment’ was presented to Adnan Al Hammadi, CEO of the Roads and Transport Authority (RTA), for the Dubai Metro, RTA’s commitment to reducing the day-to-day carbon footprint and their innovative plans for developing a future long-term sustainable environmental benefit.

Thales won ‘Best Service Provider to the Rail Industry’. ‘Special Recognition for Outstanding Contribution to the Rail Industry’ was won this year by Bassam Mansour, Land Transport Sector, National Transport Authority UAE for his continual drive to go beyond the call of duty to deliver outstanding results on a rail project.

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TECHNOLOGY

Game-changing capabilities of cloud computing Cost benefits, improved service delivery, and more agile resource deployment are driving the adoption of private clouds in the Middle East, reveals a recent study by International Data Corporation (IDC).

While several organisations in the region have virtualised a significant part of their infrastructure, the market intelligence and advisory firm for the information technology and telecommunications markets, IDC, has pointed out that the majority have not yet truly embraced cloud models. Four technology game changers are particularly noted, which are cloud, mobile, social, and analytics and these are sustaining the growth and innovation of the region’s ICT industry in the midst of a “once every 20–25 years” shift to a new technology platform.

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According to Jyoti Lalchandani, vice president and managing director of IDC Middle East, Africa, and Turkey, CIOs in the Middle East are channelling investments towards more strategic IT projects, particularly consolidation, virtualisation, and automation, taking advantage of technologies and strategies that deliver the most significant benefits to their organisations.

“Private cloud adoption, in particular, has been gaining widespread attention in the region, driven by the impact of cloud technology on cost, efficiency and more agile resource deployment. The gradual

transition towards the cloud will certainly have a significant impact in the growth of the region’s IT expenditure, as organisations take advantage of new technology platforms to enhance the business value of their IT investments.”

Implications of ‘big data’ The rapid adoption of mobile devices, various enterprise applications and social media has largely contributed to the unprecedented growth rate of enterprise data, both structured and unstructured.

Experts highlight that unstructured

TECHNOLOGY

data, in particular, has been growing exponentially, requiring more specialised data management tools to transform it into actionable information.

The IT managers now face the challenge of effectively grappling with the implications of big data but still need to manage various data types and sources and harness the full potential of big data in driving business.

“We now live in a data-intensive society as access to various types of information is increasingly becoming important to the dayto-day affairs of enterprises and individuals.

The growth rate of enterprise data has accordingly reached unprecedented levels, creating a much greater demand for more sophisticated and specialised tools for data management and analytics technologies that generate insight from the data,” underlines Mr. Lalchandani.

According to Kirk Campbell, President and CEO - IDC, “The ICT industry now plays a very important role in supporting the growth of enterprises, particularly in light of evolving challenges being faced by global markets. Consequently, CIOs now have greater responsibility as they make bold investment decisions that aim to ultimately drive business performance.”

Positive outlook for IT Despite the ongoing economic and social challenges in the region, the Middle East IT market is set for another year of growth in 2012 as the recovery from the global economic crisis of 2008-2009 gathers pace, according to figures released by IDC. The figures show that IT spending in the Middle East remains vibrant and is set to record double-digit growth in 2012, with the market expanding to a value of $27.5bn. The recovery began strongly in 2010, with IT spending increasing 12.8 per cent year on year to reach $22.6 billion, although the research firm anticipates much slower growth of around 6.8 per cent for 2011 as the socio-political turbulence that characterised much of the year has hampered spending across the region’s main flashpoints.

The relatively strong growth expected for 2012 will come as many of the projects delayed due to the events of the Arab Spring are revisited and as new initiatives are launched, both in the public and private sector.

“The direction of the market is being dictated by a gradual shift in focus to

IDC’s newly-released figures show that IT spending in the Middle East remains vibrant and is set to record doubledigit growth in 2012, with the market expanding to a value of $27.5bn

technologies that drive greater business value. Initiatives that support cost reduction and thus realise faster ROI, such as virtualisation and datacenter consolidation, are being encouraged, and often the idea is to reinvest the savings achieved into technologies that directly and effectively support business agility, such as business intelligence, mobility, communication, and collaboration.”

“Since the global economic downturn first reared its head in 2008, the world’s leading ICT vendors have become much more attentive to the way in which they serve the emerging markets of the Middle East,” says Mr. Campbell.

Exclusive CIO Summit IDC discussed critical issues concerning cloud computing in the region, particularly its impact on business and the pitfalls that should be avoided, during the two-day Middle East CIO Summit 2012, held in Fujairah, UAE from 20-21 February.

The summit examined the strategies that the business-savvy CIO should be considering moving forward and explained how he/she can demonstrate greater value to the business, thereby increasing the profile of IT in the boardroom. The bespoke event addressed the unique needs of the local market, with sessions and discussions.

IDC’s Top 10 Predictions for the ME, Africa and Turkey IT markets in 2012 1. IT markets will recover from the Arab Spring but face global economic headwinds.

2. “Populist” governments will seek to accelerate e-service delivery to citizens.

3. Virtualisation will move from “test” to “production” and will attain must-have status.

4. Cloud will receive more serious attention, but widespread adoption will be inhibited by insufficient infrastructure and skills.

5. NFC and LTE will drive the next level of mobile technology adoption.

6. Media tablets and enterprise mobile apps will transform employee productivity.

7. Unified communications and collaboration technologies such as video-conferencing and telepresence will take off.

8. Line-of-business demand will make analytics more pervasive.

9. “Big brother” initiatives will intensify in the Middle East as information security gains in importance.

10. Telcos will continue to extend their ICT portfolios, focusing on the “I” in ICT, with cloud as a major strategic direction.

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INNOVATION

Creating a change culture As market pressures ramp up, executives continue to focus on attraction and retention but the focus needs to be more about what sits between these two according to the findings of Logistics Executives, Global Employment Report, with a special focus on the Middle East, Darryl Judd writes.

The year 2012 brings with it the continuation of supply chain challenges that we have now come to accept as the new norm. This includes the continuation of globalisation, business volatility and an increasingly competitive marketplace.

Logistics Executive, a human resources and recruitment consultancy, regionally based in Dubai, came up with some interesting findings in their 2011-2012 Global Employment Market Report.

The annual survey, which is sent to over 70,000 supply chain and logistics executives in 82 countries (with a 15 per cent response rate) is now in its sixth year.

According to the report, the Middle East continues to grow despite these global and economic challenges with 66 per cent of Middle East respondents in the Logistics Executive Global Market Survey indicating that their company has experienced financial growth compared to 42

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the last financial year and 75 per cent were planning further growth in the new year.

Whilst this is excellent news on the business front, it means that there will be more pressure than ever to get the human resources aspect right, as the enduring message from executives is that success is only possible with the backing of a talented team.

It is therefore no wonder that in the Logistics Executive’s 2011-2012 Global Employment Market Report, 56 per cent senior executives said that talent and retention would be their main priorities for 2012.

From a human resources strategy perspective this is excellent news. Human resources teams are at their most effective when they partner closely with business leaders and ensuring that we retain the best talent has to be the number one priority for any business leader for 2012.

According to the market report, there

are major areas for improvement in the area of staff retention. In particular, the report highlighted two main points of concern amongst Middle East respondents, salary and employee development opportunities.

It is no surprise that salary is a key issue.

A large number of respondents at 78 per cent indicated that they were seeking a salary increase of up to 12 per cent with 10 per cent of respondents indicating that they were seeking an increase of 15-20 per cent.

Remuneration is a necessary ingredient not only to keep up with market conditions but also to acknowledge market parity and the increased responsibilities being placed on supply chain professionals. It is however only part of the solution in retaining valuable employees. According to the Logistics Executive’s Employment Market Report the top five drivers of employee retention are: • Career development • Competitive pay and rewards

INNOVATION

• Employer values & work-life balance • Effective leadership • Job security Note that there is more to career satisfaction than salary with career development being top of the list here. It was found that 17 per cent of the report’s Middle East respondents indicated that career development is a key reason for them to change employment. This is only topped by salary as a main motivator by a short number at 18 per cent.

In terms of development opportunities, the Logistics Executive 2011-2012 Global Employment Market Report found that though 59 per cent of business leaders in the Middle East perceived that they offered a satisfactory focus level on training.

However on the employee side there was an increase in workplace movement to other organisations within the GCC region stating their main reason was lack of development opportunity.

Perhaps there is a need for the human resources function to shift their focus from traditional means of engagement towards a broader approach? According to Kim Winter, Logistics Executive’s Global CEO, the answer lies in the middle ground. With executives and human resources focusing on retention and attraction they are missing the middle piece here – managing and developing existing talent. “It could be argued that if companies developed their own people, they would end up with more talent than they could handle,” adds Mr Winter.

Here, we are referring to structuring the whole employee experience. This would start with the first impression of the company through employment branding. Followed with the first impression as part of the attraction strategy and the on boarding. Overlaid throughout with a social element, this would enforce a healthy approach to change.

A flexible training programme and conditions of employment would be carefully interwoven in this model. Mr Winter goes on to explain that talent development could encompass a range of options, including ‘Real Talent Retention strategy to include structured career development, meaningful assessment processes, relevant KPI’s linked to bonus schemes, career choice options, job re-structuring, improved participation and an enjoyable but challenging work environment’.

By training we aren’t just talking here

What if it was possible to retain a large pool of staff simply by offering them exposure to new on the job skills? It could be argued that if companies developed their own people, they would end up with more talent than they could handle.

Kim Winter, CEO, Logistics Executive’s Global

about the traditional definition of the word, which refers to formal courses to increase directly related work skills but to work related on the job learning. This could be offered not just to an earmarked group of ‘high performers’ but to all company employees.

In other words it is treating everyone in the business collectively as ‘the talent’.

Exposing them to new areas would then allow personal growth on-the-job but not necessarily directly related to their current roles. In this way it would be possible to retain a large pool of staff simply by offering them exposure to new on the job skills. This approach would require executives to include talent development as a major focus. Employees in turn would take on some responsibility for their own development and it would lead to a culture that is more capable of dealing with the high amount of change as employees are constantly encouraged to find better ways of doing things.

The approach of treating change as an opportunity and not a threat in the micro level is critical as the capacity to keep up with changing markets is increasingly paramount for a company’s survival and competitive edge. It is not enough to have the support structure in place such as systems and process but imperative that there is a workforce mentality that isn’t

afraid of change but actually sees this as an opportunity and part of the norm.

A way of fostering this culture is to give people in the workplace opportunities to seek out new personal challenges that will provide them with opportunities to test themselves and drive themselves to new levels of performance and ways to connect with others in the workplace to achieve outcomes. This will attract other likeminded individuals to your organisation and enhance employer brand.

Mr Winter adds, “As organisations get flatter then offering career development can be a challenge but this can be tackled in many ways such as offering interoffice transfers, job rotation and greater delegation of decision making down the line. Allowing employees to be involved in ‘continuous improvement teams’ offers both job satisfaction and better results – a win-win”.

It will be interesting to see if the year ahead sees the Human Resources function take up the challenge to redefine culture as a way of improving the total employee experience. In partnering with their Human Resources teams, executives will recognise the broader role they may play in achieving commercial success.

Through these measures the focus is all about changing the mindset so that employees aren’t just ready for change but will embrace it on all levels. A changeready company will not only have the competitive edge but will create a selfperpetuating cycle of achievement.

The author, Darryl Judd, is the COO of Logistics Executive. With more than 20 years of executive experience in Aviation, Supply Chain and Logistics Transport Industry, Darryl has held executive positions within the airline & aircraft leasing/charter industry and major logistics organizations. He is regularly called upon to manage key human resources consulting projects and supporting business to drive changes, particularly around M&A activity and international executive management. He can be contacted at darrylj@logisticsexecutive.com

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PRODUCT UPDATE

Safely navigating in tight spaces with SPIN-GO CADDY by Bravi Platforms is already a popular machine and the choice for major European retailers who want to assure safety of their employees, while taking advantage of their sales floor, granting an effective store organisation and consequently an improved product assortment. In some stores, however, a great deal of work is carried out between three and four metres. There is a move away from step ladders and podiums for these picking heights due to productivity and, above all, safety issues.

Several retailers have requested to get a smaller, simpler and consequently cheaper alternative to the CADDY that they can use in smaller stores or even in bigger stores together with the CADDY, so that they can finally get rid of every ladder. Tired of employee assuming risky or painful positions on ladders in front of their customers to recover merchandise that was difficult to reach, they were looking for a safer and more efficient method of reaching highly positioned merchandise, mannequins, signs and displays. SPIN-GO delivers all that and thanks to luxury finishing and an attractive overall look customisable to customer needs, it becomes active part of in-store marketing.

Lightweight cargo containers introduced Etihad Airways, along with its Unit Load Device (ULD) partner Jettainer, has embarked on a program to replace 3,000 containers from the original aluminium ULD fleet with environmentally friendly lightweight versions. The new lightweight containers are manufactured from a range of composite materials including Kevlar, the material used in making bullet-proof jackets.

This composite is tougher and much lighter with an average weight saving of 17kg per ULD or over 200kgs per average wide-bodied flight. This significant weight reduction will lower fuel consumption, costs and CO2 emissions. It is estimated that the 44

I March 2012

implementation of the new containers will cut emissions by approximately 5,000 tons in 2012.

Arriving ‘fresh’ with SSI Schaefer’s ECOfresh

Innovative solutions are needed to keep food fresh over long distances without losing sight of the costs involved.

The folding ECOfresh crate from SSI Schaefer now more than satisfies the requirements of the food industry. Healthy food, especially fruits and vegetables, is enjoying a revival. And this is a factor of growing importance in the future. But products have to be reliably transported from producer to consumer and remain fresh over what is often a long logistics process.

It was in response to these demands that SSI Schaefer developed the folding ECOfresh crate: a container for the food industry that is robust but remarkably light. A special feature of the crate is its innovative folding mechanism which allows it to be quickly and easily folded together, reducing its volume by 86 per cent. Minimising volumes of reusable containers improves truck utilisation rates and reduces the number of costly trips. This has made the container not only uncomplicated to work with but also cost effective and ecologically sound.

Ventilation apertures also ensure optimum cooling and ventilation of the food.

H&P Trading delivers Austrian craftsmanship and solves your technical problems in public transport and infrastructure!

H&P Trading GmbH Bundesstrasse 18 A-7531 Kemeten, Austria

Troubleshooting

Redesign & Rebuild

Improvements & Innovations

Research & Development ROAD +hoses & fittings +gear boxes & axels +pneumatic systems +doors & hinges +cnc parts +nuts & bolts +special parts +etc.

RAIL +fire protection +lighting & lamps +bearings & fittings +glass & windows +spare parts for brake systems +spare parts for the cabin +interior parts +etc.

Spare Parts & Consumables

ISO 14001, ISO 9001, EN 15085

WHEN TIME IS OF THE ESSENCE AND YOU MUST PERFORM

!

We work for Bombardier Transportation Austria GmbH – RSI Rail Services International Austria GmbH – Railtec Entwicklungs- und HandelsGmbH – Deutsche Bahn - Stadtwerke München – Städtische Verkehrsbetriebe Zwickau GmbH – VAG Verkehrs-Aktiengesellschaft – SWB Stadtwerke Bonn Dienstleistungs-GmbH – Erfurter Bahn GmbH – Jenaer Nahverkehr GmbH – Bayrische Oberlandbahn GmbH – Dortmunder Eisenbahn GmbH – Rurtalbahn GmbH – Eurobahn – Voith Turbo Lokomotivtechnik GmbH & Co.KG – Kabel Technik Kiel – Gmeinder Lokomotivenfabrik GmbH – Bombardier Transportation GmbH – MGW Service GmbH & Co.KG – Northrail Technical Services GmbH & Co.KG – EuroMaint Rail AB – Motala Train AB – DB Schenker Rail Tabor S.A. – Capro GmbH – Hittmayr Baumaschinen GmbH – Hansa-Flex Hydraulik GmbH – Hagn Techn. Elastomere GmbH – MKE Metall- u. Kunststoffwaren Erzeugungs GmbH – Siems & Klein Autowerstatt-Technik Vertriebs GmbH – Tesso Klimageräte Vertriebsges.mbH – ÖBB Technische Services GmbH – ÖBB Immobilienmanagement GmbH – ÖBB Infrastruktur AG – Siemens AG Österreich – Wiener Linien GmbH & CoKG – IVB Innsbrucker Verkehrsbetriebe – Zillertaler Verkehrsbetriebe – RTS Rail Transport Services GmbH and many more.

Sales Success Management for H&P Trading by Wind & Wind FZ LLC. WE BRING THE EXPERTS TO THE MIDDLE EAST! T +971 (4) 4334 360 F +971 (4) 4517 945 E info@wind-wind.com W www.wind-wind.com

Wind & Wind FZ LLC Dubai Media City, Al Thuraya Tower II, Office 1402 Dubai, United Arab Emirates (represented by Gutenberg Publishing FZ-LLC)

LOG. CLASSIFIEDS

Commercial Director - Middle East The Commercial Director (Air Cargo) shall take on responsibility for all commercial activities including all sales & customer service functions and the effective management of capacity. This role will be responsible for growing the business, enhancing profitability and ensuring a high level of customer satisfaction. Input to the direction and expansion of the company will also be required.

Responsibilities: ■ Full responsibility for space optimization and flight profitability ■ Manage all aspects of sales in the region ■ Appoint, manage and monitor GSA’s in the region ■ Identify new business opportunities Requirements: ■ Appropriate senior commercial experience within the air cargo industry ■ Extremely knowledgeable in managing space and mix of freight ■ Strong commercial abilities ■ Good communicator in English, strong IT skills TO APPLY, VISIT WWW.LOG.AE/JOBS

Import Officer Singapore Leading fashion retailer is looking for an Import Officer to join their dynamic team in Changi.

Responsibilities: ■ Import cargo arriving by sea and air ■ Assistance in cargo planning with other departments in DC ■ Control and filing of incoming documents ■ Document handling for customs clearance ■ Data input into internal IT systems Requirements: ■ Experience in customs clearance of textiles ■ Knowledge in international shipping (sea, air) ■ Good IT knowledge

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www.log.ae

ISSUE 43 | JANUARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

www.log.ae

Issue 44 | FeBRuARY 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

LOGISTICS OF

PERISHABLES

WMS promises efficiency, agility and performance in supply chains | Page 06

GCC airports expand air cargo capacity | Page 06

ISSUE 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

WAREHOUSE MANAGEMENT SYSTEMS

HEAVY WEIGHT CHAMPIONS

www.log.ae

Safe and risk free delivery of perishables from farm to consumer | Page 06

FEATURE | 24

PROFILE | 28

OVERVIEW | 35

OVERVIEW | 28

PREVIEW | 32

ANALYSIS | 40

TRENDS | 24

PREVIEW | 32

REVIEW | 36

GAC

SSI SCHAEFER

KUWAIT

Offering specialised logistics services

Impressive HQ opens at DWC

aLGIErs MEtrO

LOG. LEO 2012

IndustrIaL rEnts

TOP MEGA TRENDS

LOG. LEO AWARDS

BUILDING RAILWAYS

First metro in the Maghreb

Industry’s leading award ceremony

Ups & downs of real estate

Logistics trends in the GCC

Nominations now open

Benefits of adopting GSM-R

Improving connectivity with neighbours

Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com

Transportation Solution Manager - China Responsibilities: ■ Achieve growth, profit and safety targets for the business ■ Identify and obtain business development opportunities ■ Build and grow client portfolios ■ Leading the preparations for tender submission; ■ Reporting and presentation of sales activity and forecasts; Requirements: ■ Tertiary qualifications with a focus on Supply Chain Management ■ Min 5 years operational experience ■ High level of expertise in the Domestic Transport market in China ■ Interpersonal & Communication Skills ■Advanced skills in Microsoft suite of applications TO APPLY, VISIT WWW.LOG.AE/JOBS

Logistics Manager - Asia The role involves working closely with the General Manager Asia to oversee and direct all warehousing operations and related office based administration within both Singapore and operations in Korea, Malaysia and China. Should ensure that all Asia operational issues arising in the business are appropriately identified, assessed, monitored and managed correctly.

Responsibilities: ■ Assisting with the development of the Group’s strategy within Asia ■ Overall management of Asia accommodation planning ■ Contract negotiations with third parties ■ Ensure ongoing compliance with all Customs and Exchange policies and procedures ■ Liaison with the Group General Managers Requirements: ■ Strong operational background ■ Demonstrate strategic and tactical thinking and planning ■ Strong Communication skills

Purchasing Executive - UAE The company is headquartered in Dubai with joint venture operations in Oman and Abu Dhabi. They are a subsidiary of a prestigious Group in the UAE. They are urgently in need of a Purchasing Executive to support the Purchasing Manager in the general administration of the purchasing department, ensuring that supplier relationships are managed in line with company standards and that internal customers are supported from a resourcing perspective.

Responsibilities: ■ Prepare LPOs and obtain sign-off of management ■ Obtain quotations, summarise and analyse them ■ Manage and develop supplier relationships ■ Work with senior managers across the business ■ Maintain supplier contract data Requirements: ■ Min 4-5 years purchasing experience in F&B and/or FMCG ■ Local market knowledge of products and services ■ Very good knowledge of local vendor network ■ Good communication skills – verbal and written ■ Ability to develop strong vendor and internal relationships TO APPLY, VISIT WWW.LOG.AE/JOBS

LOG. CLASSIFIEDS Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com

National Transport Manager - Saudi Arabia A leading producer of chilled and frozen food is looking for a National Transport Manager to be based in Jeddah, KSA. Responsibilities: ■ Implement improvement in operating processes & systems ■ Assure integrity of freight payments ■ Implement a centralised Routing Planning system ■ Research, purchase and implement a fleet management system ■ Improve the quality of trucks, trailers and refrigeration equipment used in the operation Requirements: ■ Strong organisational skills ■ Experience with refrigerated loads an advantage ■ Excellent financial analysis and budget management skills ■ Strong analytical & planning abilities ■ Preferably native Arabic speakers but all candidates considered TO APPLY, VISIT WWW.LOG.AE/JOBS

Supply Chain Solutions Advisor - Saudi Arabia A leading Saudi Arabian logistics company requires a Supply Chain Solutions Advisor to manage supply chain solution implementation and develop effective relationships with clients.

Responsibilities: ■ Supply Chain Solution design ■ Costing and pricing of logistics solutions ■ Proposals and presentations to clients ■ Developing effective relationships with clients ■ Represent the company at conferences and symposiums Requirements: ■ Relevant university degree ■ 2-3 years supply chain consulting ■ Advanced proficiencies in Windows suite

Sales Representative - UAE One of the market leaders in the freight & logistics industry is looking to fill an immediate requirement for an experienced Sales Representative to operate from their Abu Dhabi office.

Responsibilities: ■ Actively identify, develop and secure new clients ■ Seek out opportunities to increase existing business ■ Provide a consistently high level of service ■ Develop a positive culture within the operations ■ Make optimal use of marketing plans and materials Requirements: ■ Self-driven, results-oriented with a positive outlook ■ Min 4 years external and direct sales experience ■ Min 6 years experience within industry ■ Natural forward planner TO APPLY, VISIT WWW.LOG.AE/JOBS

@

MORE ONLINE

Cargo Training Officer - Qatar A major air cargo business is seeking to hire a Cargo Training Officer to be based in Doha, Qatar.

Responsibilities: ■ Conduct and organise training and safety programs/modules ■ Ensure that all cargo staff undergoes training ■ Provide manuals of quality standard procedures ■ Maintain international standards ■ Prepare annual training calendar Requirements: ■ Min 5 years overall experience ■ Expertise in IATA Cargo Handling Procedures and Regulations ■ Effective people management and planning

March 2012 I

47

LOG CAFE`

Peace & tranquility and aggressive business plans Hamdi Osman, Director, Solitaire International General Trading LLC Anyone who has been involved in our industry for some time should have heard his name: Hamdi Osman, formerly senior vice president, FedEx Express Europe, Middle East, Indian Subcontinent and Africa. Just recently retiring from this international company, he has moved on to establish his own company called “Solitaire International General Trading LLC” in Dubai, UAE. “I joined FedEx in 1978 in New Jersey, USA. After holding various managerial positions in operations, I was promoted in 1989 to Managing Director of FedEx Express Domestic Operations for the New England area of the USA,” explained Mr. Osman, an American citizen born in Egypt.

Holding a degree in Physical Education from Helwan University, Cairo and an Executive MBA from Boston University, USA, he played professional football both for Egypt and the USA. “In 1991, I moved to Dubai as Managing Director for Middle East Operations and in 1997 I was promoted to VP Ops Middle East, Indian Sub-Continent and Africa.

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Then in 2007, I was promoted to Sr. V.P. for Europe, Middle East, Indian Sub-Continent and Africa, and in 2010 as Senior VP for Emerging Markets, Middle East, Indian SubContinent, Africa and Central Asia.”

The former FedEx senior VP’s career is full of accomplishments and awards: “I have been recognised with several prestigious awards in and outside of FedEx in recognition of my leadership and distinguished performance and most recently the Lifetime Achievement Award at the 2011 LOG.LEO Awards and Seminar.

I also hold honorary positions in many associations both locally and internationally.”

Moving from the USA to Dubai back in 1991 wasn’t so easy: “At first it was a huge change and I wasn’t sure if we would be able to adjust to life in Dubai. However, within a matter of months, my family fell in love with the place, the warmth of its people and the vibrancy of the multi-ethnic society. As for me, I found the business environment, open, full of promise and surrounded by innovative entrepreneurs in a fast growing emerging market. It is the

peace and tranquility that I like most with daily life here.”

After all the years in a global company, Mr. Osman finally sits in the office of a company he now owns: “Overlooking Sheikh Zayed Road in Media City, I look out at the city I had come to love and realize that this is the first day of my dream job - when I would be working only for myself and nobody else. It is a high that is infectious and I believe you can never get out of it once you taste its success.”

He has ‘extremely aggressive’ plans for the new business: “From bringing new industry to North Africa to introducing new concepts in products and services in the Middle East Region, while exploiting the business opportunities offered by the Indian economic juggernaut, I am leaving no stone unturned,” Mr. Osman asserts.

Mr. Osman feels that 2012 is full of surprises and will be ‘more good than bad’.

He firmly believes that overall improvement of 1 per cent in GDP will happen in most countries around us. Last world is AFRICA is the future NO BUT’s & NO IF’s.

www.log.ae

ISSUE 45 | MARCH 2012

YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE

LOGISTICS OF

PERISHABLES Safe and risk free delivery of perishables from farm to consumer | Page 06

PREVIEW | 32

REVIEW | 36

TOP MEGA TRENDS

TRENDS | 24

LOG. LEO AWARDS

BUILDING RAILWAYS

Logistics trends in the GCC

Nominations now open

Benefits of adopting GSM-R

FAX TO: +971 4 451 7945

EVENTS

MARCH

MAY

Rail Industry Meetings

Multimodal

France, 7-8 March www.abe-industry.com/railim

Birmingham, UK; 1 - 3 May www.multimodal.org.uk

Eurasia Rail Turkey

Middle East Rail Opportunities

Istanbul, 8-10 March www.eurasiarail.eu/_OLD/2011/

Doha, Qatar; 9-10 May www.fleminggulf.com

Future of Rail Freight in Europe

Logistics Transport Exhibition

The LOG. Middle East Magazine is a publication of Gutenberg Publishing FZ-LLC. Licensed by TECOM, Dubai, UAE. Trade Licence No: 20704

www.log.ae www.gutenberg-dubai.com

Helsinki, Finland; 9 - 12 May http://mark.logexpo.fi

Gutenberg Publishing FZ-LLC

P.O.Box 502547, Dubai, UAE

LogiMAT

Supply Chain and Logistics Forum Saudi Arabia

Stuttgart, Germany; 13-15 March www.logimat-messe.de

Riyadh, Saudi Arabia; 13 - 16 May www.supplychainsaudiarabia.com

Fax: +9714.451 7945

Annual Bridges Saudi Arabia

Cold Chain Saudi Summit

Managing Director: Reinhard Wind

Riyadh, Saudi Arabia; 13-16 May www.coldchainsaudi.com

reinhard@gutenberg-dubai.com EDITORIAL

Seaport Security Asia

Global Logistics and SCM Summit

Singapore, 27 - 28 March www.seaportsecurityasia.com

Dubai, UAE; 16 May www.sclgme.org

Berlin, Germany; 12 March http://marketforce.eu.com/Conferences/railfreight12

Riyadh, 18-21 March www.bridgessaudi.com

APRIL

Future Roads Riyadh, Saudi Arabia; 21-22 May www.iirme.com/futureroadssaudi

Al Thuraya Tower II, Office 1402 Dubai Media City Tel: +9714.433 4360

Editorial Director: Rustu Soydan rustu@gutenberg-dubai.com Sub Editor: Michelle Kasper michelle@gutenberg-dubai.com SALES & MARKETING

Kingdom Mass Transit Summit Riyadh, Saudi Arabia; 1-2 April www.naseba.com

World Ports & Trade Summit Abu Dhabi, UAE; 2-4 April www.worldportsandtrade.com

Kuwait Metro & Rail Kuwait; 17-18 April http://promediakw.com/2012/rail

UK Rail Development & Investment London, UK; 18-19 April www.europeanrailwayreview.com

RORO 2012

Sales Manager: Andy MacGregor

Gothenburg, Sweden; 22-24 May www.roroex.com

andy@gutenberg-dubai.com

Logistics & Transport Conference Gothenburg, Sweden; 22-25 May www.logistik.to

Asean Ports & Shipping Jakarta, Indonesia; 30-31 May www.transportevents.com

UPCOMING

Rail Technology Conferences Amstelveen, the Netherlands; 24-25 April www.railtechnologyconferences.com

Barcelona, Spain; 5 - 7 June www.silbcn.com

Southern Asia Ports Logistics & Shipping

TOC Container Supply Chain Europe

Colombo, Sri Lanka; 26-27 April www.transportevents.com

Antwerp, Belgium; 12-14 June www.tocevents-europe.com

India Warehousing Show

transfairlog

Delhi, India; 26-28 April www.indiawarehousingshow.com

Hamburg, Germany; 12 - 14 June 2012 www.transfairlog.com

I March 2012

Timonera Grafik info@gutenberg-dubai.com ADMINISTRATION Office Administrator: Sherlyn Millet sherlyn@gutenberg-dubai.com PRODUCTION Production Manager: Roy Varghese

International Logistics & Material Handling Exhibition

50

LAYOUT & DESIGN

roy@gutenberg-dubai.com

Contributors’ opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this journal is accurate and timely, no liability is accepted by them for any errors or omissions, however caused. Articles and information contained in this publication are the copyright of Gutenberg Publishing FZ-LLC (unless otherwise stated) and cannot be reproduced in any form without the written permission of the publisher.