www.logmiddleeast.com
Issue 47 | MAY 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
SALALAH FREE ZONE Reaping the benefits of being on a major trade route | Page 06
Eng. Awadh bin Salim Al Shanfari, Chief Executive SFZ
TECHNOLOGY | 24
REVIEW | 32
PROFILE | 40
Teradata Corporation
LOG. LEO Awards
CEVA Logistics
Analytic data solutions
Industry’s best recognised
Making business flow
SALALAH FREE ZONE
AERIAL VIEW SHO
PUBLISHER’S NOTE
Industry’s best recognised at LOG. LEO Awards As many readers are aware, the LOG. LEO Awards once again recognised and awarded the industry’s best last month. The day-long seminar and awards ceremony saw the attendance of the representatives of the region’s leading transportation, supply chain and logistics companies. Based on my conversations with many of our guests during and after the event, I must say that the event has been well received by the community and managed to create the perfect platform for logistics executives to network, exchange ideas, learn from each other and at the same time initiate new business. The insightful seminar featured prominent speakers from prestigious companies and institutions such as Dubai Trade, Dubai FDI, University of Wollongong, Supply Chain and Logistics Group (SCLG), SSI Schaefer and Famco. The speakers with years of hands-on experience shared their thoughts and enlightened the audience on the industry’s persistent challenges. Each may have talked on different topics but in the end whoever had the chance to attend all the sessions must have benefited greatly. Personally, I learned a lot from the speakers who touched upon several vital issues in the industry that require urgent attention. The morning sessions were followed by a sumptuous buffet lunch at the five star hotel, Ibn Battuta Gate Hotel, and the excitement reached its peak just before the awards ceremony. I would like to thank the panel members once again for
their time and dedication and objective approach to select the winners of this year’s awards. The LOG. LEO Awards were announced by my wife Silke Wind, Editorial Director of Kompass Worldwide and our sales manager Andy MacGregor who both did a great job. Although more details on the event are available in this edition, I still wish to congratulate the five winners - Supply Chain Manager of the Year: Sascha Geiken, Managing Director of Geodis Wilson UAE LLC; Innovator of the Year: Adil Alsmadi, Director of NTDE; Young Achiever of the Year: Ramachandran Padmanabhan, Supply Chain Manager of Geodis Wilson UAE LLC; Sustainability Champion of the Year: Rahman Siddiqui, Supply Chain Manager at Famco; and Lifetime Achievement Award: Prakash Nair, Manager Network Cargo Sales Development at Emirates Airlines. The awards are designed to celebrate excellence and outstanding performance in our industry and there is no doubt that events like this foster healthy competition. The hard work and dedication of the executives need to be recognised and the LOG. LEO Awards has been the platform to honour them. Before I conclude, I would like to thank my team who spared no effort to make this event a success and of course, our sponsors Famco and SSI Schaefer. Without our sponsors’ support, we would not be able to host such a great event.
Reinhard Wind Managing Director, Gutenberg Publishing FZ-LLC
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IN THIS ISSUE
MAY 2012
32 REVIEW
LOG. LEO Awards
06
The annual LOG. LEO Awards Ceremony once again honored the best of the logistics and supply chain industries on 19 April in Dubai.
COVER STORY
The Salalah effect Once the expansion is completed, the Port of Salalah will boast a world-class general cargo terminal to complement its container terminal. Merging powers with the Salalah Free Zone, the ultimate objective is the creation of the ‘Salalah Hub’ that is ready to serve the local, regional, and global business interests.
40 PROFILE
CEVA Logistics
TECHNOLOGY
CEVA announced increased revenues for the first quarter of 2012 driven by strong performance in contract logistics and ocean freight. The company has around 51,000 employees around the world.
Teradata Corporation Experts argue that with the ‘explosion’ of data collected from multiple sources, the companies face the huge task of ‘making sense’ out of what has been collected.
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REVIEW
FEATURE
Launch of FAMCO Oman Offering a wide variety of products and services to industries and commercial businesses, FAMCO has recently launched a new branch in Muscat.
LOG. Window 12
Solid Business Development Business development is not confined to cold calling, email blasts, advertising or social media. Petros Zenieris of the Business Criterion explains the right method.
30
Product Update 44
LOG. Classifieds 46
LOG. cafe` 48
Events Calendar 50
COVER STORY
Salalah at the meeting point of major eastwest trade routes
Viewed as one of the region’s best located ports to access the Middle East, Indian Subcontinent and East Africa, the Port of Salalah in Oman undergoes an expansion project as the Salalah Free Zone aims to become the leading global hub for quality industrial and logistics activities with attractive incentives, a secure environment and reliable services 6
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COVER STORY
P
ort of Salalah, located in Oman’s second largest city after the capital Muscat, is the country’s largest port. The port (also known as Salalah Port Services Company SAOG) is partly owned and managed by APM Terminals, one of the largest container terminal operators in the world. Port of Salalah is made up of a Container Terminal with seven berths of up to 18m draft and a General Cargo Terminal of 12 berths of up to 16m draft. Strategically located at the major eastwest shipping lane, the Port of Salalah is viewed as the region’s best located port in order to access the Middle East, Indian Subcontinent and East Africa. The other distinguishing aspects of Port of Salalah include being the second largest port in the region offering direct connections to the world and shortest transit times to the major markets. In its 14 years of operation, Port of Salalah has risen to rank amongst the world’s top 30 container ports and has twice broken the world record for productivity. The port has also won local and international awards in economic development, health and safety, innovation and environmental initiatives. Expanding capacity The Ministry of Transport and Communications has recently awarded the commercial bid project worth US$143 million to expand the port’s general cargo handling capacity that aims to meet the growing demands for increased economic activity in the Dhofar region and international investment projects in Salalah. “The general cargo business has been growing rapidly and this expansion will play a significant role in serving the continued development of businesses in Salalah and the surrounding region. We also have a vision of Salalah taking a role as a major liquid bulk hub for a number of commodities. We are grateful to the Ministry of Transport and Communications and the many local stakeholders for their vigorous effort to secure this project,” said Peter Ford, CEO of Port of Salalah. The project will increase cargo handling capacity to 20 million tonnes per annum (mtpa) of dry bulk commodities and over 6 million tonnes of liquid products, compared to the port’s present ccapacity of 6.5 mtpa. Main commodities driving the growth of the May 2012 I
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COVER STORY
general cargo business are exports of locally available limestone, gypsum and cement as well as plastics and other bulk commodities. The expansion of the general container terminal covers the construction of an additional 1,200m of multi-purpose berths with 18m of draft and includes liquid commodities loading facilities. The proposed liquids terminal will add to the port’s ability to handle a number of liquids including, but not limited to, methanol, fuel, mono ethylene glycol, and caustic soda, enabling Port of Salalah to become a premier liquid bulk hub in the region. Once completed, Port of Salalah will boast a world-class general cargo terminal to complement its container terminal. This combination of facilities utilising the strategic location that Salalah occupies and a well functioning free zone creates the ‘Salalah Hub’ that is ready to serve local, regional, and global business interests. Showcasing growth potential Port of Salalah welcomed executives and representatives from the shipping world’s largest shipping lines and principal customers in the local market to the recent handling of its 30 millionth TEU (Twenty Foot Equivalent Unit) container. 8
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“The general cargo business has been growing rapidly and this expansion will play a significant role in serving the continued development of businesses in Salalah and the surrounding region. We also have a vision of Salalah taking a role as a major liquid bulk hub for a number of commodities” - Peter Ford, CEO Port of Salalah
The tour of Port of Salalah also substantiated its unique position to benefit customers through the Salalah Free Zone and Free Trade Agreements (FTA) accessing the United States and Singapore, as well as sea-land-air agreements with local businesses and faster connection routes to the GCC markets. The Port of Salalah serves as
an engine of growth to the country’s economy in line with the progressive vision from the government of Oman to diversify the economy from oil exports and generate meaningful Omanisation and employment, as around five jobs are created for logistics, shipping or the local economy for every one job in the port.
Beyond Expectations Logistics from a different angle Pressure to be more efficient, cut costs and eliminate waste increases every day. This is why we build continuous improvements into everything we do. At CEVA, we are supply chain experts who we continually review and streamline our processes, eliminating defects, raising productivity and reducing energy usage. And everything we learn is replicated across our global operations. Our Operations Excellence approach is one of the ways we exceed our customers’ expectations, each and every day. Isn’t it time to see your supply chain from a different angle? We think so.
Find out more about our Operations Excellence program at
www.cevalogistics.com/expectations
CEVA Logistics in Middle East, Northern Africa and Central Asia P.O. Box 20336 Jebel Ali South Zone Jebel Ali Free Zone, Dubai, UAE Tel.: +971 4 8131555 E-mail: salesme@cevalogistics.com
COVER STORY
Milestone achievement Over the past two years Port of Salalah has attained resilient growth in productivity and market growth amid the downturn of the global containerships industry, as well as significant progress in the company’s safety record and technology investment, to better serve some of the largest vessels in the world. “We’re happy to bring together our local valued customers and all our partners onboard, as well as our people, to mark this achievement which is made possible through your support and dedication,” said Mr. Ford. Port of Salalah’s customers include the world’s blue-chip names in ocean carriers such as Maersk Line, APL, CSAV, Shipping Corporation of India and the newly formed G6 alliance. The 30 millionth TEU milestone was a tribute to the port’s strength in container handling coinciding with the first eastbound call of Hyundai Force of the G6 alliance, a new service line that increases Port of Salalah connections to Asia and Europe to over 30 sailings every week. The newly formed G6 alliance unites six ocean carrier firms into one of the largest vessel networks and operates 90 ships each with capacities up to 14,000 TEU covering 40 ports. The G6 includes members of the Grand Alliance - Hapag-Lloyd, NYK and OOCL - and 10
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The Salalah Free Zone has been operational for over two years and has attracted in excess of US$4 billion of investments from several leading international companies the New World Alliance - APL, Hyundai Merchant Marine and MOL. Investing for the future The Port of Salalah has invested over US$800 million in infrastructure that ranges from some of the world’s largest cranes to handle vessels, 2.4 km worth of container berth quay with depths of 18 m, and plenty of yard capacity to ensure growth in line with demand. Customers were escorted throughout the port to survey the day-to-day operations and stopped at safety zones to get a first-hand experience of the size and scale of Port of Salalah. The tour included a stop at the MV Altonia, the latest vessel added to the Oman Shipping Company subsidiary company, Oman Container Lines (OCL). At 1,730 TEU, MV Altonia is OCL’s newest product meeting growing interest in connecting Salalah and Jebel Ali. “We expect to add Port Sultan Qaboos to the Gulf Express feeder service. With this connection, Omani ports will be connected like never before and it will finally be possible to ensure Omani cargo passes through Omani ports rather than
through the UAE,” said Nicholas Fisher, CEO of Oman Shipping Company. “As we go forward we look to expand the network which will include Indian subcontinent, and potentially East Africa, connecting through the Salalah hub, to offer the ability for Omani cargo to reach the world through Omani ports. At the end of the day it’s about Omani transportation solutions for the country,” Mr. Fisher concluded. The CEO added, “We believe significantly in this considering the improved product it can give to customers looking for new transportation ways to get to and from Muscat and the Sohar area, as right now the transit times are fairly poor, but with this connection they can decrease by a week to ten days at a minimum.” Salalah Free Zone and Platinum Circle In pursuing further solutions and connectivity for Oman’s businesses, the Port of Salalah and the Salalah Free Zone (SFZ) work together closely to provide opportunities for local businesses to flourish. The strategy is to provide opportunities for the customers to grow
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COVER STORY
An artist’s impression of the SFZ once fully completed
and prosper by having further downstream activities from their core business. A Port Facilities Agreement has been signed with a logistics distribution company that is expected to start construction this year. There is also progress on agro-business going from bulk to container items. The SFZ has one of the Middle East’s most developed business environments fostering partnership and collaboration across industries and borders. Offering world-class infrastructure and support services providing turnkey facilities for both multinationals and start-ups, the Free Zone was established by the Government of the Sultanate of Oman, with a commitment to make its 19million square metres one of the most progressive and desirable business locations in the Gulf. And recently, Salalah Free Zone (SFZ) and Platinum Circle signed a Memorandum of Understanding (MoU) to include SFZ and the Sultanate of Oman as an official member of the Future Global 100 (FG100) Initiative and place Salalah Free Zone as the first GCC Free Zone in the Middle East to act as a strategic Partner of the Future Global 100 Initiative. Ali bin Mohammed Tabouk, Salalah Free Zone’s Chief Commercial Officer attended the global meeting of the FG100 Initiative 12
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SALALAH FREE ZONE - ADMINISTRATIVE HQ AeriAl View Showing MAin entrAnce ApproAch And AgorA
The SFZ has one of the Middle East’s most developed business environments fostering partnership and collaboration across industries and borders. Offering world-class infrastructure and support services, the free zone was established by the Government of the Sultanate of Oman, with a commitment to make its 19 million sq m one of the most progressive and desirable business locations in the Gulf. held in Jakarta, Indonesia. The FG100 Initiative is a global program by Platinum Circle that shapes the future of the global economy, national markets, business and industries through the collective input of leaders from business, and intergovernmental organisations. Platinum Circle, a leading global business group involving corporations with annual revenues exceeding US$100 million, governments and intergovernmental organisations from the six continents, invited SFZ to join following Salalah’s recent success in attracting international blue-chip companies to the Sultanate. The Omani Free Zone is now part of one of the most influential global business communities, which comprises
more than 1,000 firms and government organisations operating in more than 20 industries and 40 markets globally. Ali Tabouk said, “In today’s challenging times, Oman and SFZ offer a perfect environment for investors and entrepreneurs who are seeking to expand their global operations. Platinum Circle and the FG100 Initiative is an outstanding opportunity for us to implement our vision and strategic plan for economic growth and sustainability.” The MoU will pave the way for implementing the global initiative into Oman consisting of a grouping of FG100 Oman Leaders (made up of local and foreign corporations and government), an Annual FG100 Oman Meeting and a Future of Oman Report.
COVER STORY
The Salalah Free Zone aims to become the global leading hub for quality industrial and logistical activities by creating longterm partnerships with its clients, using state-of-art infrastructure in a unique location combined with attractive incentives, a secure environment and reliable services
MoU with Carmeuse Group Earlier this year, the Salalah Free Zone signed a MoU with Carmeuse Group of Belgium, a world leader in lime and limerelated products, to establish a US$140million joint-venture production facility. Salalah Free Zone chief executive, Eng. Awadh Salim Al-Shanfari said the new venture would have a number of positive
spin-offs for Oman and the Salalah Free Zone: “The Carmeuse facility will support the development of new industrial activities and employment. This investment is made possible due to the availability of quality limestone and has the added benefit of promoting Oman’s significant natural resources potential. It will also boost traffic through the Port of Salalah.” Carmeuse’s project has the potential of creating up to 300 direct and indirect jobs. In the first year of operation, Carmeuse expects to produce 50,000 tonnes of lime and lime-related products, with the aim of increasing that to 750,000 tonnes by 2020, once all three phases are fully operational. Carmeuse, which has over 150 years of experience in extracting and processing limestone and dolomite stone has committed to applying environmental standards to the Carmeuse joint venture facility in Salalah Free Zone. In addition, Carmeuse should deliver a number of environmental applications, such as flue gas desulphurisation, water and sludge treatment, as well as industrial and municipal gas cleaning. Ali Tabouk added: “We expect a sharp rise in interest and application in Salalah Free Zone in the coming years, potentially reaching US$6 billion of investment by
2015, given that over 50 companies have now shown strong interest in the zone. Signing global multinationals like Carmeuse further underpins Salalah Free Zone’s unique value proposition, and sends a positive message to other organisations considering establishing facilities in Oman.” Joining forces with Oman Air Furthermore, the Salalah Free Zone is collaborating with the Sultanate’s flagship carrier, Oman Air and the Port of Salalah in the development and implementation of the Indian Ocean’s first multi-modal logistics hub located on the East to West shipping line. Linking air, sea and land, and in the future rail to facilitate increased and more efficient trade flows through Oman, the proposed collaboration is set to reduce transit times between Asia and Europe by as much as 48 hours due to Salalah’s strategic location and will decrease handling charges by approximately 20 per cent, or US$0.15 cents per kilo, when compared to comparative products available in the market today. The collaboration between the three entities will enhance the economic competitiveness of the Sultanate and position Salalah as a global logistics hub of excellence. May 2012 I
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LOG. WINDOW
Horizon Terminals to open new oil terminal in Jebel Ali Horizon Terminals Ltd, an Emirates National Oil Company (ENOC) subsidiary, has awarded a contract to Punj Lloyd Ltd, an India-based construction conglomerate, which covers the engineering, procurement and construction of a bulk oil terminal inside the Jebel Ali Free Zone along with a 60 km jet fuel pipeline to the Dubai International Airport. Previously referred to as ‘Project Falcon,’ it will have state of the art oil terminal facilities with storage tanks capacity of 141,000 cubic m, including a Tanker Truck Loading system connected to the oil tanker berths and associated facilities. The oil terminal will handle a jet fuel system initially and other petroleum products at later stages. The proposed 60 km pipeline running from the Jebel
Ali Free Zone to the Dubai International Airport will have a branch off point at the new Dubai World Central (DWC) airport for future expansion. Saeed Abdullah Khoory, CEO ENOC, said that the strategic project aims to further support the economic development of Dubai and the recently awarded terminal project in Fujairah. He said the
project is in line with ENOC’s long term investment strategy. Ravindra Kansal, President and CEO of Punj Lloyd, Middle East, Africa & CIS, said, “The Middle East is a very important market for us. Our strong focus on the region, complemented by our proven track record in the EPC domain has created a niche for Punj Lloyd in the region.”
Emirates SkyCargo bolsters Australian operations Emirates SkyCargo, the freight division of Emirates, is strengthening trade partnerships with the launch of an additional dedicated weekly freighter service from Sydney. A dedicated Boeing 777 freighter is now flying twice a week – on the DubaiSingapore-Sydney-Hong Kong-Dubai route - providing these key trading points with additional connectivity to Emirates’ Dubai hub and onwards to more than 120 destinations on the carrier’s network. “The demand for a bi-weekly service is a good indication of Australia’s growing importance as a trade partner to major international markets. Emirates SkyCargo is committed to providing Australian businesses access to trade opportunities in the 70-plus countries we operate to via our state-of-theart Cargo Mega Terminal in Dubai,” said Greg Johnson, Emirates’ Cargo Manager Australia. This second service comes just seven months after the introduction of the first dedicated freighter service. The Boeing 777 freighter has the capability to carry up to 103 tonnes of cargo and will boost Emirates SkyCargo’s import capacity to more than 1500 tonnes per week. 14
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Emirates SkyCargo has expanded its Sydney freighter operation and a Boeing 777F will now fly twice a week on the Dubai-Singapore-Sydney-Hong Kong-Dubai route
Emirates is the largest operator of Boeing 777 aircraft in the world, with 102 aircraft currently in service. The aircraft also maintains the lowest fuel burn of any comparable sized aircraft, at nearly 18 per cent less than standard freighters. Emirates SkyCargo serves a global route network that spans 123 points in 72 countries,
including 12 cargo-only destinations, while more than 50 of the locations Emirates SkyCargo serves are e-freight compliant. Emirates currently operates 70 flights per week to Dubai from Brisbane, Perth, Melbourne and Sydney, and 28 weekly transTasman services. The airline’s fleet of 171 wide-bodied aircraft includes eight freighters.
LOG. WINDOW
dnata sets new record cargo volumes at DWC dnata’s newest cargo terminal, FreightGate-8, located at Dubai World Central - Al Maktoum International Airport (DWC) in Dubai has managed an increase in air cargo volumes of 700 per cent for the 2011-2012 financial year. The dnata-operated air cargo terminal which opened in June 2010, currently handles local and sea-air export and import cargo as well as transit cargo at DWC. In 2011-2012 dnata handled a total of 127,665 tonnes of air cargo, representing an increase of 700 per cent over the previous period. The total number of active cargo flights handled on the ramp and in the cargo terminal was 2,832 for the financial year, having grown by 600 per cent from the previous period. In addition to large volumes of ‘standard’ air cargo shipments, dnata is increasingly handling unique exports that
require careful planning and specialised handling equipment. One of the most recent highlights included a purpose-built gas turbine being flown to Nigeria. With a total weight of 95 tonnes, it was the heaviest single piece of cargo ever handled by any of the dnata FreightGate cargo terminals.
Other examples of over-sized cargo recently handled include a 25 tonne turbine generator, heavy vehicles weighing up to 30 tonnes per piece and pieces of cargo that exceed 50 feet in length. dnata has also invested in specialised equipment to help handle the out-sized loads.
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LOG. WINDOW
Calogi rolls out a new 3PL solution Calogi has recently rolled out of a new Third Party Logistics (3PL) module called ‘c-Plus’. 3PL providers can now seamlessly distribute their products to Calogi’s growing base of over 500 customers. The c-Plus solution services both 3PL providers and users alike by allowing customers to book and pay for 3PL services such as transportation, warehousing, customs brokerage, insurance, road feeder services and packaging in one place. The solution also enables 3PL providers to set up products, services and associated rates using a variety of flexible, programmable parameters. The new solution has attracted several new users including WeCare logistics and Rainbow Cargo. “Our latest 3PL solution module has enhanced our ability to offer end-to-end solutions for our customers”, said Patrick Murray, Head of Calogi Worldwide Cargo Distribution Network. “We have extended our paperless range of products to all our 3PL customers and now invoices, job cards and monthly statement of accounts are all available online. Crucially, because we guarantee payment, it is risk-free.”
Rajan Kunhi (L), Managing Director of WeCare Logistics, pictured with Patrick Murray, Head of Calogi Worldwide Cargo Distribution Network at their recent contract signing
“Calogi has simplified our business model by allowing us to distribute our warehousing and transportation products online to a large customer base. Calogi gives us the ability to conduct business with a few mouse clicks rather than conduct lengthy phone calls with our trading partners - it has truly moved our business
into the electronic age,” said Rajan Kunhi, Managing Director of WeCare Logistics. The Calogi portal is highly comprehensive and built for the air cargo business of the future. Calogi’s vision is to offer cost effective solutions to small to medium enterprises and remove paper from the air cargo supply chain.
Lufthansa Cargo Charter to support Moto GP Lufthansa Cargo Charter office in Dubai, were recently awarded the contract to operate the first 747 charter flight from Doha to Barcelona, in support of the Moto GP race series. A Lufthansa Cargo Charter expert was present in Doha to oversee the final preparations and liaise with airport officials. On completion of the night race at the Losail circuit, the operation began immediately to prepare and document the cargo for air transport. The pallets, nets and straps, provided by Lufthansa, had been pre-positioned at the circuit. A team of cargo specialists from the airport built up, weighed and documented the cargo at the remote location, and the cargo was then escorted on to the airport ready for loading. The chartered Boeing 747 arrived at DOH right on time, where the cargo 16
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was ready and waiting. Lufthansa Cargo Charter, together with the operator of the freighter, had completed the loadsheet in advance, so the cargo loading could
commence immediately. Within 90 minutes the aircraft was loaded, fuelled and cargo attendants on board, ready for an early departure to Barcelona.
LOG. WINDOW
Agility wins contract to move railway wagons Agility has recently won a contract to transport 420 railway wagons from Spain to Kazakhstan for Talgo, Spanish manufacturer of railway wagons and components. Agility teams across Europe – from Spain, Finland and Kazakhstan – will deliver this heavy-lift project. Agility will provide all logistics services starting with the collection of the wagons at factories in Spain through delivery to Talgo’s factory in Astana, Kazakhstan. “Agility has a strong presence in Russia, Ukraine, Kazakhstan and Turkmenistan,” said Francesc Casamitjana, Agility’s Managing Director of Area South. “We understand fast moving economies and bring experience and know-how to industries such as engineering, energy, mining and heavy equipment supply.” Agility has scored an early success in delivering the initial shipment of wagons against extremely challenging deadlines. From its roots in emerging
markets, Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering personal service, a global footprint and customised capabilities in developed countries and emerging economies alike.
A publicly traded company, Agility is one of the world’s leading providers of integrated logistics with close to US$6 billion in annual revenue and more than 22,000 employees in 550 offices across 100 countries.
AW Rostamani Group opens new parts distribution centre AW Rostamani Group recently opened a state-of-the-art spare parts warehouse and distribution centre to support its automotive-related businesses. Located at Dubai Industrial City (DI), the facility delivers 600,000 sq ft of storage capacity and will house over 90,000 line items for Nissan, Infiniti, Renault, MG & ZNA spare parts. The new parts warehouse is designed as a multilevel facility with large operational areas and also houses a training facility within the premises. The facility was inaugurated by Abdul Wahid Al Rostamani, Chairman of AW Rostamani Group in the presence of Michel Ayat, CEO of Arabian Automobiles, Atsuo Kosaka, Managing Director, Nissan Middle East and Mustansir Lakdawala, Managing Director, Renault GCC. Michel Ayat, CEO of Arabian Automobiles commented, “This facility has been designed to deliver a quality spare parts logistics service in the minimum
amount of time and monthly will handle over 100 containers of incoming spare parts shipments and 250 outbound deliveries by the 200 members of our dedicated and professional logistics team.” Abdulla Belhoul, Managing Director, Dubai Industrial City, said, “A seamless process of import and supply of spare parts is integral to a quality service network, and a facility such as the Arabian Automobiles has set high industry standards in this space. We are confident that leveraging DI’s inherent
advantages of proximity to the emirate’s sea and air ports, excellent road connectivity and the high standards of our storage offerings will make the process even more efficient for Arabian Automobiles.” Arabian Automobiles maintains a 99 per cent spare parts ‘fill rate’, stocks AED 150 million of spare parts lines at any one time, operates 16 spare parts branches in Dubai and the Northern Emirates and supplies 103 approved independent spare parts dealers in the UAE. May 2012 I
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LOG. WINDOW
JX Nippon Oil & Energy Corporation consolidates MEA Japanese energy company JX Nippon Oil & Energy Corporation (NOE), belonging to JX Group has reaffirmed its commitment to expand its operations in the Middle East and Africa. With its presence in more than 70 countries, JX Group manages some of the largest oil and gas operations across the world, including exploration, import and refining of crude oil, manufacture and distribution of petroleum products, including fuels and lubricants and other energyrelated activities. Michio Ikeda, Sr. VP of JX Nippon Oil & Energy Corporation, said that the expansion in the Middle East and Africa regions was in line with the group’s strategy to expand into promising international markets. In the Middle East, the group is handling oil and gas exploration and production businesses in Abu Dhabi and also in Qatar recently. Ikeda officially opened “JX Nippon Oil & Energy Middle East & Africa FZE”, NOE’s new corporate office in Dubai’s Jebel Ali Free Zone, in the presence of senior officials. The new corporate office
Michio Ikeda, Sr. VP of JX Nippon Oil & Energy Corporation
in the UAE will be overseeing the group’s lubricants business in the Middle East, Africa, Pakistan and several countries in the CIS Region and will be headed by its Managing Director Tomohiko Kagawa. Outlining the expansion strategy, Ikeda said: “Our growth in high-growth international markets is imperative, considering that the world’s demand for energy is increasing exponentially, especially in Asia, and that international competition for acquiring rights for development of oil and gas resources is becoming increasingly intense.”
UASC takes delivery of AL QIBLA containership The United Arab Shipping Company (UASC) has taken delivery of its eighth A13 (13,500 TEU) container vessel “AL QIBLA”, during a naming ceremony held at the Samsung Heavy Industries (SHI) shipyard in Geoje, South Korea, where the vessel was named by her sponsor, Othman Ibrahim AlIssa, Chairman of UASC’s board of directors. With the delivery of this eighth vessel, UASC is closer to completing an order of nine A13 containerships with SHI placed in 2008 valued at US$1.5 billion. Mr Al-Issa said: “AL QIBLA takes her name after a city in my homeland Kuwait, and her name carries a special spiritual meaning as well, in the Arabic language it means the direction towards which we turn for prayer.” The nine vessels, out of which seven have already entered service, are deployed on 18
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UASC’s key trade routes between the Far East, Arabian Gulf, Red Sea and Northern Europe on the AEC8 and AEC2 and AGX1 services. Jorn Hinge President & CEO of UASC commented, “The deployed ships are living up to expectations and are providing substantial savings in operational cost, which, combined with recent freight increases have resulted in a substantial improvement for UASC.”
Almajdouie hauls three more evaporators
Almajdouie safely executed the job of shifting three huge evaporators in Rabigh, in the Kingdom of Saudi Arabia, simultaneously. Doosan Heavy Industries, a Korean based company specialising in power projects, tied-up with Almajdouie for all land transportation jobs in Saudi Arabia. The scope involves haulage and positioning of three evaporators in Rabigh, in the Western Region of the Kingdom, where DHI’s Power Project construction is underway. The evaporator started from the jetty at Rabigh Port to Rabigh PP2 Project Site travelling a distance of 35 km. The size of each evaporator was 34.2 m in length, 13.20 m in width and 9.51 m in height and its total weight was 460.60 tonnes including all steel beams. The cargo was received at PetroRabigh’s laydown area. The barge with huge evaporators that docked at Rabigh Port were rolled on-shore by Almajdouie’s expertise. The Self-Propelled Modular Transporter (SPMT) had to move-in at turtle speed to carefully maintain the balance on both sides of the barge. Ballasting – balancing the equipment on the barge with counter weights – was being done concurrently by the ship crew. All three evaporators rolled out from the barge safely. Another major task came unexpectedly in the form of ongoing road construction work on the stipulated route, due to which a new road had to be laid down on the restricted area of PetroRabigh, all the way upto the main entrance of the site. Heavy equipment was called upon to develop an access path for the SPMT. Despite initial hiccups, the first evaporator reached its destination within 24 hours of departure from the port.
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Gutenberg Publishing FZ-LLC Dubai Media City P.O.Box 502547 Dubai,United Arab Emirates
LOG. WINDOW
RAK Airport strengthens management team The RAK International Airport has continued to strengthen its management team with three recent appointments of Michael Coe as the Development Director, Terry Sloan as the Head of Operations, and Salem Hasan Al–Ghafri as the Head of Security, Control Authorities and Regulatory Compliance. Andrew Gower, RAK International Airport’s Airport Director, said: “I am pleased to announce that Michael, Terry and Salem are joining the senior team at the airport. They bring with them a wealth of experience of working in commercial environments in the aviation sector, and I am confident they will be a major asset to the team.” Michael Coe joins RAK International Airport from the United Kingdom, having previously worked with SSP UK Air Ltd as Projects Director, where he was responsible for new developments throughout the UK and in overseas airports. With a background in architecture, project management and business development across airport, retail,
leisure and commercial sectors, Coe will be responsible for driving RAK International Airport’s development goals. Terry Sloan has 17 years’ experience in the aviation industry, with an extensive background in ramp handling, apron, airfield and terminal safety. He played a key role in Liverpool’s John Lennon Airport expansion from 0.5 million to 5.5 million passengers. Salem Hasan Al–Ghafri is an Emirati who has risen through the ranks and has exhibited a strong potential.
WSS offers improved marine chemical Wilhelmsen Ships Service (WSS) is launching a revised portfolio with Unitor and Nalfleet product brands as the first part of their strengthened marine chemicals offer. When this scheme has been fully rolled out it will offer an increased product range, enhanced customer service, specialist support in the form of an innovative new customer portal and an improved global logistics network. Graham Hunter, Business Director Marine Chemicals says; “The concept called Active Solutions is about people, products - and ultimately - better performance. I believe the full version of the new offer will be a game changer in this business. We know that crew competence and health and safety are a key concern for all owners and operators. Also, the shortage of time due to a multitude of other pressures means that it can be difficult to stay on top of changes in regulation and 20
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Graham Hunter, Business Director Marine Chemicals
increasing environmental legislation.” “Active Solutions has been developed with the aim of assisting our customers in solving these issues and providing solid, long term solutions. Although times are tough, this is the right time for us to invest for the future.
Cooperation key to meeting challenges in the Gulf - IATA
The International Air Transport Association (IATA) called upon all parts of the aviation value chain in the Gulf region to work together on issues critical to aviation’s ability to serve as a catalyst for economic growth. Aviation has been at the centre of the economic transformation in the Gulf region over the past 25 years. A study by Oxford Economics shows aviation in the Middle East supports 2.7 million jobs and US$129 billion in GDP. Aviation’s role is set to grow rapidly as international passenger numbers rise from 77.1 million in 2010 to 220 million in 2030. “Aviation’s ability to play a leading role in GDP growth is not guaranteed. It depends on having the right conditions in place to support competitive sustainable businesses. Many of these are beyond the direct control of airlines, and most require industry and government to work together with a common vision and purpose,” said Tony Tyler, IATA’s Director General and CEO in his address in Abu Dhabi. Tyler identified a four-point agenda for the region based on safety, security, infrastructure and the environment. On infrastructure he highlighted that the MENA region has invested more than US$100 billion on airport projects and this investment must be matched by similar commitments to efficient air traffic management (ATM) through harmonisation and optimal routings.
LOG. WINDOW
DP World unveils book at 175th anniversary of P&O Marking the 175th anniversary of the founding of British maritime group P&O, DP World has unveiled a prestigious book telling the P&O story through the eyes of those who travelled with, worked for and managed the company over the years, illuminated by works from the official P&O Heritage collection. DP World is the proud preserver of the P&O Heritage collection, having acquired the P&O Group in 2006, including the collection of more than 25,000 documents, paintings, photographs and memorabilia dating back to the formation of P&O in 1837. DP World Chairman Sultan Ahmed Bin Sulayem said, “When we look back 175 years, it is clear that from the very beginning P&O was a company that stood apart from the rest for its service excellence, entrepreneurship and innovative business ideas that built bridges of trust with its customers. Those fundamental principles continue to be part of DP World today and are what continue to distinguish the “children” of the original P&O
– amongst them P&O Ferries, P&O Cruises, P&O Maritime, and P&O Estates.” “The strong link between the UK and the UAE that dates back decades was anchored throughout the mid-20th century by regular calls by P&O vessels. Those ships were a strong contributor to the growth of trade between Dubai and the wider region. With
P&O Ferries, P&O Maritime and P&O Estates all now coming under the umbrella of Dubai companies, we continue to be reminded of the vision and reach of the one of the world’s most respected companies.” The book titled “P&O: Across the Oceans, Across the Years” is published by Antique Collectors’ Club, designed by Webb & Webb and printed in UK.
Leadership to change hands at Aramex Fadi Ghandour, founder and CEO of Aramex announced that by the end of 2012 he will be retiring as CEO, handing over day-to-day operations to Hussein Hachem, his chief lieutenant and current head of the Middle East and Africa regions. The move will allow Ghandour, who has taken over as Vice Chairman of Aramex’s Board of Directors, to focus on strategic expansions, new investments, and sustainability, areas he considers crucial to Aramex’s growth and profile as it moves to consolidate its position as one of the world’s leading logistics operators. Ghandour made the announcement at the company’s annual conference. Ghandour declared, “There is no better time than this 30th anniversary of Aramex, capping an astounding journey of challenges and achievements, to propose that you and I are ready for yet another leap. I have always maintained that the best part of building a company is to build it for and with others, to make it a platform for collective ambition and innovation. I know
that I have fulfilled my promise and that the day-to-day running of the company, under the leadership of Hussein Hachem, is in very capable hands.” Ghandour added that in addition to concentrating on strategy and investments he will be devoting his time and energy to sustainability and entrepreneurship, two causes very close to his heart and ones
he has actively championed throughout his tenure. In 2006, Aramex was the first in the Middle East to issue a sustainability report. Moreover, in 2010, the company set another precedent by combining financial and nonfinancial results into one integrated annual report. It was also one of the first in the region to issue a carbon footprint report. May 2012 I
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Etihad signs cargo agreement with Lulu Etihad Airways, the national airline of the United Arab Emirates (UAE), has signed a memorandum of understanding (MoU) with the Abu Dhabi-based Lulu International Group. Etihad Airways will be the preferred supplier of air cargo services for Lulu’s retail operations into and out of the UAE. Under the agreement, Etihad Airways will offer the Lulu International Group and its forwarding agents a range of preferential and priority air cargo services. This includes transporting mostly fresh produce from countries such as Egypt, India, the Philippines, Thailand and the United Kingdom to and through the UAE. Best known for the Lulu chain of supermarkets, the Lulu International Group operates businesses in the UAE, Oman, Qatar, Bahrain, Kuwait, Saudi Arabia, Yemen, Egypt, India, Indonesia, Malaysia, Thailand, Hong Kong, Vietnam, China, Kenya, Tanzania, Ivory Cost, Ghana and Benin. Peter Baumgartner, CCO Etihad Airways, said: “We are delighted to have signed this MoU with the Lulu International Group and
Peter Baumgartner, Etihad Airways’ CCO shakes hands with Saifee T. Rupawala, CEO, Lulu International Group
look forward to working together as this relationship develops. This deal is central to Etihad Airways’ role of facilitating trade into and out of the UAE, and will further support the commercial development of the Emirate of Abu Dhabi.” Saifee T Rupawala, CEO Lulu International Group, said: “We are
very excited about this new agreement with Etihad Airways which will help us immensely in effectively managing our worldwide supply chain and logistics. This in turn will help us cater to the diverse needs of our large multi-ethnic consumer base with prompt service and competitive prices.”
UASC and Burgan Bank sign $150m facility United Arab Shipping Company (UASC) announced concluding a bilateral facility worth US$150 million including a 7-year senior term loan facility with Burgan Bank’s Corporate Banking Group. The proceeds from this transaction will be invested in UASC’s undertaken growth and network expansion plans. The facility is expected to contribute in particular to the company’s long-term working capital facilities associated with growing the fleet capacity. UASC is in the process of completing the induction of nine A13 (13,500 TEU) vessels of which seven have been put into service. The new A13s are environment friendly vessels equipped with green technology, such as a Waste Heat Recovery System, that transform exhaust gases to energy, allowing a considerable reduction in the carbon footprint of UASC’s ships, and the vessels’ hulls have received special silicon paint that 22
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reduces their friction with the water surface and thus reduces the vessel’s fuel consumption. Othman Ibrahim Al-Issa, Chairman of the Board of Directors at UASC, commented: “This facility marks a significant step forward towards the implementation of UASC’s financial strategy and speaks of UASC’s solid foundation and steadfast commitment to forge ahead amidst a challenging business environment.”
Majed Essa Al Ajeel, Burgan Bank Chairman said: “Burgan Bank’s Corporate Banking Group has proved over the years to be a reliable partner for growth by industry leaders such as UASC. The group continues to expand its finance deals with its corporate clients to support them in executing their strategic plans.” Basil Al-Zaid, Chief Financial and Technical Officer at UASC, commented on the transaction: “We have faced the headwinds in the international trade markets and continue to move firmly with the implementation of UASC’s expansion plans. Concluding this transaction amidst the current difficult market conditions further demonstrates UASC’s unique position as a shipping line with access to capital and affirms the longterm business collaboration between UASC and Burgan Bank as well as their understanding of our Industry.”
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11-13 November 2012
Dhahran International Exhibition Center, Dammam, Kingdom of Saudi Arabia Officially Supported by the Ministry of Transport of the Kingdom of Saudi Arabia
The 3rd International
TRANSPORTATION, MATERIALS HANDLING, WAREHOUSING & LOGISTICS Exhibition & Conference Organised by
www.sauditranstec.com
Working Towards the Integration & Implementation of Effective Logistics & Transportation Systems
TECHNOLOGY
Data warehousing is the process of capturing, storing and analysing data to gain insight. This process is built on an integrated data warehouse (IDW), which is a single, centralised application-neutral repository of an organisation’s current and historical data.
Data warehousing and analytical solutions Being a global leader in its field, Teradata gives businesses the ability to leverage data assets to gain strategic insight, recognise emerging trends, and respond quickly. LOG. Middle East attended the Teradata Conference in Dublin, Ireland to learn more about big data analysis. 24
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TECHNOLOGY
Dublin, Ireland
Teradata, one of the world’s leading analytic data solutions companies focusing on integrated data warehousing, big data analytics, and business applications, provides a single view of the enterprise in real time and helps use data in imaginative new ways to gain maximum value. The company offers a suite of business intelligence technology platforms and solutions, a wide range of data access and management applications and robust data mining capabilities. With locations in the USA and offices throughout the Americas, Europe, Middle East and Africa
(EMEA) and Asia Pacific Japan (APJ), the company’s total assets reached US$2.6 billion as of last year serving over 1,370 customers worldwide. The issue with ‘Big Data’ According to some IT experts, cloud computing technology was the buzzword for some time. Today, with the advance of new technologies, availability of smart phones and presence of sensors all around us, ‘big data’ and its analysis by businesses has been put in the spotlight. A new book by Bill Franks, Chief Analytics Officer for Teradata Alliances actually illuminates
the complex and critical new field that is accelerating the evolution of information technology (IT) today – big data analytics. The book titled ‘Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with Advanced Analytics’, explains how tapping big data sources can be applied to improve business decisions through the practice of analytics, and addresses these issues: • What is big data, why is it important, and what are its benefits? • Ten big data sources that can benefit your business, including web data, sensor data, text data and more May 2012 I
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The Convention Centre, Dublin
• Technologies, processes, and methods required to tame big data • The convergence of the analytic and data environments • What makes a great analysis, a great analytic professional, and a great analytics team? • How to create a culture of innovation and discovery in your organization “I thought it was important to have a business-focused book that pulled the important themes together around big data – in one place, and in a format that both business and analytic professionals can easily understand, said Franks. “I wanted to provide relevant insight with tangible advice and action steps on how to put big data sources and analyses to work for business.” The foreword says that the book is primarily about the effective analysis of big data, rather than the big data management (BDM) topic per se. It starts with data and goes all the way into such topics as how to frame decisions, how to build an analytics centre of excellence, and how to build an analytical culture. What exactly is data warehousing? Being in the logistics industry, we are used to the physical aspect of ‘warehousing’ where goods are brought in, kept for some 26
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Teradata delivers such capabilities through real-time data warehousing technology, professional services and applications and enables its clients to convert information into intelligence, and intelligence into actions, leveraging existing operational applications and infrastructure time and dispatched at the request of the client. Space requirements, warehouse management systems, automation, racking and shelving are some of the concepts that pop up when we discuss warehouses in logistics business. However, the Teradata Conference, which took place from 23-25 April at Dublin Convention Centre featured a series of sessions that talked about various aspects of data warehousing and analytics and offered solutions to the challenges faced by companies today – regardless of the sector they are operating in. The experts argued that with the ‘explosion’ of data collected from multiple sources, companies face the huge task of ‘making sense’ out of what has been collected. Teradata defines data warehousing as ‘the process of capturing, storing and analysing data to gain insight’. This process is built on an integrated data warehouse (IDW), which is a single, centralised
application-neutral repository of an organisation’s current and historical data. Furthermore, Active Data Warehousing™ (ADW) - the foundation of enterprise intelligence - drives valuable information into a company’s operations and to hundreds of front-line decision makers. It enables smarter, more competitive decisions through near real-time information access and analysis and predictive analytics on customer or business activity. The ADW supports both long-running strategic and short-running tactical queries and provides strategic and tactical intelligence across the enterprise. Teradata Active Enterprise Intelligence™ capabilities represent the power of active data warehousing, and refers to the alignment of strategic and operational systems, people, technology and processes to make the best decisions possible. Teradata delivers such capabilities through real-time data warehousing technology, professional services and applications and
TECHNOLOGY
Mike Koehler, President and CEO Teradata Corporation
Media Round Table
enables its clients to convert information into intelligence, and intelligence into actions, leveraging existing operational applications and infrastructure. This capability helps decision makers and front-line workers achieve new productivity levels, speed and precision in decision making, manage business complexities, and respond to business events while they are occurring. Private Cloud Benefits Greater utilisation of processing power has been a key driver and soughtafter benefit of corporate private cloud computing implementations – to centralise and share computing resources and increase utilisation to 60 per cent or higher. According to Gartner, today, only about 25 per cent of the available processing power of virtualised servers is being utilised by many companies that adopt virtualisation. Teradata’s Active Data Warehouses (ADW) have been providing customers with 90 to 100 percent utilization for years. The consolidation and centralisation of numerous under-utilised, disparate data marts has resulted in data and analytics being more efficiently shared from one, centralised ADW among multiple organisations and thousands of users. As a data warehouse private cloud, the Teradata ADW directly addresses a major
Hermann Wimmer, President Teradata EMEA
Teradata’s Key Products
Teradata® Database Software: Flagship software for analysing data and processing increasing volumes and complexity of queries without compromising performance. Teradata Purpose-Built Platform Family: Offers customers options that take full advantage of all the power of Teradata systems anywhere in the enterprise – as an active data warehouse, enterprise data warehouse, entry-level data warehouse appliance, special-purpose data mart or sandbox environment. Teradata Logical Data Models: Easy-to-follow blueprints for designing an enterprise data warehouse that reflects business priorities tailored to the specific needs of an industry. Teradata Applications and Services: Data access and management tools and applications such as data mining/ analytics, master data management, enterprise risk management, finance performance management, demand/ supply chain management, and integrated web intelligence.
pain point with CIOs by ensuring computing resources are optimised, and fully utilised – a significant economic advantage to any IT organisation. By consolidating data warehouse servers onto a Teradata ADW Private Cloud, IT executives and their teams can be certain that their computing resources are fully utilised and producing ROI on a 7X24 basis. BI or Business Intelligence Information technology is an area where we people often come across acronyms that are confusing. Attending almost all sessions during the two-day conference and meeting top executives of the company at pre-arranged one-to-one interviews, I became pretty familiar with IT terms such as BI (Business Intelligence), ADW (Active Data Warehousing), EDW (Enterprise Data Warehousing), etc. and how one differentiates from another. Talking about Business Intelligence, a powerful trend started by Teradata customers and Teradata Engineering is known in the industry today by the common terms “pervasive BI,” “operational BI,” and “real-time BI.” Teradata’s strategy for delivering such business intelligence is known as Active Enterprise Intelligence™ and the backbone for this strategy is the range of Active Data Warehousing™ solutions. May 2012 I
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TECHNOLOGY
Teradata’s Active Data Warehousing™ product set offers a mature mixed-workload management subsystem and lets the business concurrently run multiple data load jobs, dozens of complex reports, data mining and hundreds of fast tactical queries while meeting service level agreements for the front-line users. Supply & Demand Chain Management One of the main reasons for attending the conference in Dublin was finding out what Teradata offers to our focus industries – Logistics, Transportation and Supply Chain. According to Teradata, traditional lean and demand-driven supply chain management delivers value in highly predictable and steady-state industries and markets. However, increasing globalisation, virtualisation, requirements for increased leverage of IP outside the firewall, and pressures for increasing growth and profits are demanding new chaos-tolerant supply chain management approaches. With Teradata’s solutions, logistics companies can reach more informed and productive decisions by better analysing and synchronising products and processes daily from multiple sources. Consistent and accurate data - both detailed and summary - can be generated for analysis anywhere in the organisation, along with the flexibility to view the business from a variety of perspectives. Teradata can help: • Combine data from thousands of readers and edge servers and millions of tags • Allow managers to see and collaborate across the total supply chain • Proactively measure, monitor and exceed supply chain performance objectives The Teradata Demand Chain Management (DCM) solution is architected as a bottom-up analytic data solution employing consumer demand to develop sales forecasts of each item, by location, weekly and daily. These forecasts recognise historical performance, are deep in seasonal and causal identification and respond automatically to the latest trends. The forecast is then combined with inventory and replenishment strategies, serving to pull inventory through the supply chain based on expected sales across each location in the network. Recent studies show that retail industry stock-outs are between 5 per cent and 8 per cent and that overstock conditions 28
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Increasing globalisation, virtualisation, requirements for increased leverage of IP outside the firewall, and pressures for increasing growth and profits are demanding new chaostolerant supply chain management approaches - the result of poor forecasts and buys continue to climb. The DCM reverses the flow of information in the traditional supply chain, pulling information about demand at the store and SKU level, up through the chain, to vendors and manufacturers eliminating out of stocks and reducing inventory carrying costs. Modules that make up Teradata DCM are: Contribution: Provides dynamic stratification ranking of merchandise categories and location combinations based on their contribution to the success of the business. All SKUs are ranked A through E based on the percent of sales units, sales dollars, or gross margin they represent. Seasonal Profile: Draws on historical sales data to automatically create seasonal models for groups of items with similar seasonal patterns. The model might contain the effects of promotions, markdowns, and items with different seasonal tendencies. The bottom line is that the DCM projects
deliver multimillion-dollar ROI and payback less than 12 months after implementation. Take-home benefits From an editorial point of view, I must admit that the whole event proved extremely useful even for someone not with an IT background. The sessions throughout the day and interviews as well as exclusive media roundtables were all enlightening. Besides, many of the company’s top executives including Mike Koehler, President and CEO Teradata Corporation; Hermann Wimmer, President Teradata EMEA; and Stephen Brobst, CTO Teradata Corporation were available to discuss relevant topics. The executives also provided insights on the emerging markets such as the Middle East and the Gulf, which had the highest growth rate for Teradata. Finally, more details on the presentations will be available in our magazine’s subsequent editions.
Fast beats slow Effective warehouse design means short routes for goods and staff. Using containers in conjunction with intelligent conveyor systems speed up and optimise logistics operations. We show you how to become fast, flexible and efficient. Contact us, we will gladly advise you.
P: +971 4804 8100 路 E: info@ssi-schaefer.ae 路 www.ssi-schaefer.ae
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FAMCO executives attending the launch event (L-R): Adnan Dawood (Marketing Manager), David Dronfield (General Manager, Storage & Handling Solutions), Ayman Ahmed (Country Manager - Oman & Qatar), Paul Floyd (Managing Director), Kevin Miller (Finance Manager), Mark Johnson (General Manager, Aftersales) and Ahmad Halwani (General Manager, Construction Equipment)
FAMCO expands into Oman FAMCO launches new branch in Muscat at a grand ceremony attended by the industry’s leading executives
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FAMCO (Al-Futtaim Auto & Machinery Company) offers a wide variety of products and services to a diverse range of industries and commercial businesses covering the transportation, construction, oil and gas, manufacturing, warehousing and marine sectors. The company is well known throughout the UAE for the supply and service of heavy vehicles and machinery including trucks, buses, construction machinery, marine engines, air compressors, diesel generators and material handling equipment. With bases in Dubai, Abu Dhabi, Al Ain and Ras Al Khaimah, the company is the sole UAE distributor for Volvo trucks, Volvo buses and Volvo construction equipment. FAMCO is also the exclusive distributor for internationally renowned industry heavyweights such as Yanmar, Ingersoll Rand, Himoinsa, Merlo and Linde. Providing high standard product support services FAMCO regularly receives performance awards from its major principals, competing on a global scale with other distributors. Operating through five separate trading divisions, FAMCO also enjoys an excellent
reputation for its turnkey industrial storage and handling solutions, including the design and installation of Dexion shelving and racking systems. New launch With such a variety of products and services for the industry, FAMCO has expanded into Oman to be able to serve its existing and potential customers better. The one day launch event took place at a five star venue in Muscat. Attended by the leading companies’ representatives, FAMCO had the perfect opportunity to tell more about its launch in the country, brand portfolio and future plans. The whole event was organised by Dubai-based Gutenberg Publishing FZ, the proud publisher of LOG. Middle East. With the new branch located in Al Qurm, the region’s leading industrial equipment supplier known for its product range in warehousing, material handling, generators, compressors, construction equipment and commercial vehicles has a more convenient access to the lucrative Omani market.
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FAMCO’s success story In related developments, FAMCO previously launched FAMCO Parts Online, an online portal developed entirely inhouse and fully integrated with SAP, which allows customers to place orders for spare parts and make enquiries about price and availability via the Internet. The new facility enables customers to track their orders, deliveries and invoices, and to obtain a statement of accounts. It also displays news of FAMCO’s latest sales campaigns and special offers will be highlighted for customers’ ease of reference. Paul Floyd, Managing Director, FAMCO, said “This is an important step for us in achieving FAMCO’s vision of being a company whose service standards exceed
those of our competitors.” Furthermore, FAMCO was awarded global honours after it won the prestigious Volvo Construction Equipment International Dealer of the Year award. The award was presented to Paul Floyd at the Volvo Construction Equipment International Dealer Conference in Abu Dhabi. “2011 was a year of many milestones in our history with Volvo Construction Equipment, and we are thrilled to begin 2012 with this great recognition from Volvo,” said Mr. Floyd. “It’s a great honour to be globally recognised by one of our most important principals and partners. Our high performance is the result of a concerted effort by all our team members in what was a challenging yet rewarding year. I would
like to thank the entire FAMCO team for their outstanding efforts and to also thank our customers for their continuing support.” “Customer support is a key focus for us at FAMCO. Understanding our customer needs and delivering on promises has been essential to our success. We take great pride in knowing that we are providing our customers with global best practice and it’s a great honour to be recognised as doing so.” Mr. Floyd also said the full market introduction of all Volvo CE’s soft products such as the ‘CareTrack’ remote monitoring system and machine inspection programmes among others has further established FAMCO as providers of benchmarking service and product support.
Al-Futtaim Auto & Machinery Co. LLC (FAMCO) P.O. Box 47, Al Qurm, PC 102, Muscat, Oman Tel: +968.24593708 or +968.24593722 | Fax: +968.24593709
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LOG. LEO Awards 2012 recognise the best of the industry This year’s awards ceremony and the day-long seminar took place in Dubai with the attendance of top companies’ representatives The best of the logistics and supply chain industries were once again honoured at the glittering annual LOG. LEO Awards Ceremony which took place on 19 April at the Ibn Battuta Gate Hotel in Jebel Ali, Dubai. Organised by the region’s leading media company, Gutenberg Publishing FZ LLC, the award ceremony and day-long seminar attracted leading professionals from the sector. As revealed by many of our guests, it was a day full of networking opportunities where the attendees shared their ideas and experiences to help solve the industry’s challenges. This year’s event was divided into 32
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three parts - morning session of seminars; lunch and award ceremony; and afternoon session of seminars. Despite the hectic schedule of people working in logistics industries, the turnout was high and almost all delegates attended both morning and afternoon sessions, which proved to be useful and insightful. Welcoming the delegates, Reinhard Wind, Managing Director of Gutenberg Publishing FZ LLC highlighted the leading role of Dubai as a logistics hub in the region and touched upon the ongoing mega investment projects to upgrade infrastructure aimed at easing trade and commerce. “With such optimism in the air and as
stated by the country’s leaders, Dubai has recovered from economic downturn. Today, at this prestigious ceremony attended by the industry’s top performers, we can all feel that there are still bright opportunities in the region as logistics is a vital part of businesses here,” added Mr. Wind. This year’s LOG. LEO Awards Ceremony was sponsored mainly by FAMCO UAE and SSI Schaefer. Insightful seminars The seminar programme hosted speakers from prestigious companies and institutes such as Dubai Trade, Dubai FDI, University of Wollongong, Supply Chain and Logistics Group (SCLG), SSI Schaefer
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and Famco. In the morning, the welcome speech by Mr. Wind was followed by Dubai Trade’s presentation titled ‘How Dubai Trade Masters E-Trade’ by Shahab El Jassmi, Head of Commercial. With a vision to transform the end to end trade supply chain and to establish Dubai as the leading trade and logistics hub of the world, Dubai Trade aims to make trade easier, faster, and cost effective for all stakeholders. Mr. El Jassmi explained how Dubai Trade facilitates trade in the emirate by giving a real life example of a container import. The programme continued with the presentation of SSI Schaefer, one of our main sponsors. Shrikanth Kolawadi talked about Storage Solutions Ergonomic Warehouse Planning. Asking ‘What system to choose’, Mr. Kolawadi suggested looking at flows, operational costs, and required investments and added that for most applications nonautomated or semi-automated systems are the right choice. Then, David Dronfield, General Manager, Storage & Handling Solutions, Al-Futtaim Auto & Machinery Company
LLC presented ‘What goes around comes around in distribution’. To make his point clear, Mr. Dronfield gave the example of the production of a toothbrush, which probably never caught our attention as something that requires massive logistics. The raw material – plastic is derived from oil and the lengthy and costly process involves terminals, tankers, containers, ships, agents, warehouses and finally supermarkets. The GM mentioned that “By the time I buy my toothbrush, the materials and product have been distributed at least six times and handled
at least 22 times, twice by hand, of which one was mine. The price of a mere AED12 includes the distribution from UAE oil fields around the world and finally to a Dubai supermarket.” Immediately after the networking break, the seminar focused on the ‘academic’ side of business with Dr. Balan Sundarakani, Associate Professor, Program Director, MS Logistics, University of Wollongong, Dubai. His presentation was titled ‘Trends in Logistics Industry: An Academic Perspective’. Dr. Sundarakan talked about the length and breadth May 2012 I
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of the logistics industry and the five imperatives, namely changing supply chain focus; delivering a sustainable logistics service; collaboration & competition; mergers & acquisitions between LSPs; delivering innovation; and pressure towards integrations and disintegration. Providing an outlook of the industry, David Harris of Dubai FDI (Foreign Investment Office) explained the case of ‘Dubai and Logistics’. Dubai FDI’s strategy revolves around forming a sustainable investment model: creation, growth and retention. His office provides investment guidance on office setup; regulatory compliance; and market orientation. According to Mr. Harris, the trends include moving towards PPP model (e.g: Dubai, Kuwait & Iraq); government initiative’s to raise infrastructure funds (e.g: MENA infrastructure fund); and concept of integrated water & power projects (IWPP). The industry’s vital question came from Andre Verdier of Innova Supply Chain: ‘Is your Supply Chain Healthy? – Spotlight on the Supply Chain Manager’. Mr. Verdier urged companies to benefit 36
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from various advantages of integrated supply chain management which can save most companies between 5 to 25 per cent. The Health Check includes asking questions on the strategy, policies and processes. The tactics cover forecasting, planning, S&OP, integration and collaboration. The first presentation of the afternoon session, ‘Enhance Profitability with Simulation’ was given by Katharina Albert, Managing Director, SimPlan Dubai. Her presentation aimed to form a clear idea of what logistics simulation is and which methodology is used; learn when simulation can be successfully applied; and discover the plentiful benefits that simulation offers. The benefits of simulation include low investment in comparison to total system costs; recognising bottlenecks and harmonising processing times, resources and buffers accordingly; what-if analysis for strategic / demand planning; and visualising the plan in the form of 3D animation. Another real life scenario was presented by SSI Schaefer, one of
the main sponsors of the LOG. LEO Awards 2012. Matthias Hoewer, General Manager Middle East & Africa provided a case study on ‘ZamZam Water in Makkah, KSA’. Mr. Hoewer explained how the challenging ZamZam Water project was handled by s.s.e.m (overall GC for civil works); SSI Schaefer (logistics & materials handling equipment); and KHS (depalletising and distribution system). The major task for SSI Schaefer was that only Muslims are allowed to enter the Haram Area and the installation team had to be brought from SSI Schaefer in Turkey. Temperatures reached 50C during the day and the installation took place mainly at night. Despite the challenges, the project was completed and handed over in June 2011. And the last presentation belonged to Mr. Wind: ‘The Future of Warehouse Planning in the Middle East’. He talked about old warehouses and when a warehouse becomes a distribution centre. The Managing Director of Gutenberg Publishing FZ LLC went on to compare the warehouse systems in
REVIEW
Europe and the Middle East. He also urged stakeholders to focus more on designing the warehouse, paying for the inventory, initiating modernisation, and defining the key factor for a multipurpose warehouse. Nomination and judging panel The industry representatives submitted their nominations online during the campaign. The panel members included prestigious names such as Mahmood Al Bastaki, Director, Dubai Trade; Dr. Cedwyn Fernandes, Associate Professor in Economics and MBA Program Leader at Middlesex University Dubai; Ojas Wadivkar, Principal, A.T. Kearney Middle East; David Harris, Director, International Logistics, Department of Economic Development (DED); and André Verdier, Chief Executive Officer and Managing Director MEA, MRM, and President, Executive Committee, Supply Chain and Logistics Group (SCLG). And the winners… The five categories of the LOG. LEO Awards were Supply Chain Manager of
the Year; Innovator of the Year; Young Achiever of the Year; Sustainability Champion of the Year; and Lifetime Achievement Award – all designed to celebrate excellence and outstanding performance in the industry. Silke Wind, editorial director of Kompass Worldwide together with Gutenberg Publishing sales manager Andy MacGregor announced the winners and Reinhard Wind presented the awards during the ceremony that was preceded by a sumptuous open buffet lunch. Sascha Geiken, Managing Director of Geodis Wilson UAE LLC bagged the Supply Chain Manager of the Year award. The Innovator of the Year award went to Adil Alsmadi, Director of NTDE. The next category, Young Achiever Award of the Year was awarded to Ramachandran Padmanabhan, Supply Chain Manager of Geodis Wilson UAE LLC. To a loud applause, Rahman Siddiqui, Supply Chain Manager at Famco was honoured with the Sustainability Champion Award of the Year. And, finally the Lifetime Achievement Award of the Year was
given to Prakash Nair, Manager Network Cargo Sales Development at Emirates Airlines. The announcement of each winner was greeted with much applause, not just from colleagues but from all attendees. The number of awards was limited to five to be able to focus on the core tenets of the industry. The award ceremony was followed by a raffle draw which gave away an iPad, a digital camera and an LCD TV. Behind the scenes The organiser of the event, Gutenberg Publishing FZ LLC, is located in Dubai Media City, which hosts many of the world’s leading media companies. The company’s flagship product is LOG. Middle East - a high-class industrial magazine that addresses the issues with Logistics and Supply Chain Industries in the region and beyond. The magazine is published monthly and distributed all over the Gulf region. In addition, the company undertakes the organisation of industryspecific events for a select variety of customers in the Gulf. May 2012 I
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REVIEW
Winners of the LOG. LEO Awards 2012
Supply Chain Manager of the Year: Sascha Geiken, Managing Director, Geodis Wilson UAE LLC
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Innovator of the Year: Adil Alsmadi, Director of NTDE
Young Achiever of the Year: Ramachandran Padmanabhan, Supply Chain Manager of Geodis Wilson UAE LLC
Sustainability Champion of the Year: Rahman Siddiqui, Supply Chain Manager, FAMCO
Lifetime Achievement Award: Prakash Nair, Manager Network Cargo Sales Development at Emirates Airlines
PROFILE
Making business flow with an innovative approach CEVA Logistics designs and implements industry leading solutions for large and medium-size national and multinational companies CEVA Logistics designs and implements industry leading solutions for large and medium-size national and multinational companies. Despite the challenging airfreight market, one of the world’s leading non-asset based supply chain management companies, CEVA, announced revenue of €1,712 million for the first quarter of 2012 driven by strong performance in contract logistics and ocean freight. Focusing on building market position in the months ahead, new business wins of €504 million actually exceeded the company’s targets. Besides, the group reported revenues of €6.9 billion last year. This is all due to the dedication of around 51,000 employees 40
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dedicated to delivering effective and robust supply chain solutions across a variety of sectors. CEVA has also its ambitious plans for the region. The company’s regional headquarters based in Jebel Ali, Dubai is a pyramid shaped unique building. To find out more about CEVA’s business offerings and expansion plans, LOG. Middle East team met with Warren Angus, Sales & Marketing Director, Middle East, North Africa and Central Asia (MENACA). The energetic director explained more about CEVA’s positioning in the Gulf, how they deliver operational excellence to their customers and what differentiates them from their competitors.
Value added and integrated services CEVA offers customers complete supply chain design and implementation in Contract Logistics and Freight Management, alone or in combination. Contract Logistics includes warehousing and ground based distribution, offered separately or in combination. Freight Management includes coordinating the movement of products and materials by air, ground or ocean using the most efficient mode of transport meeting the customer’s expectations in terms of cost, speed, reliability and protection of goods. “Increasingly, for our customers, we co-ordinate several specific activities, from managing the complete supply chain and
PROFILE
executing the most critical activities to designing and transforming the supply chain while third parties perform the services under our management. For customers who utilize CEVA in the role of total supply chain management provider, we offer a single point of contact for all supply chain activities, optimizing service and cost across the entire supply chain,” remarked Mr. Angus. The services of CEVA include manufacturing support; inbound transportation; warehousing & distribution centers; outbound transportation; aftermarket services and final mile solutions. The sales & marketing director stressed, “In delivering our services, ‘Impeccable Execution’ is our credo. This applies to every area of our business and supports our clear goal to become the most admired company in the supply chain industry.” Advantages of choosing CEVA CEVA has many major multinational accounts across the region across all sectors covering freight management and contract logistics. The company is also proud of its deep sector expertise across Automotive,
Industrial, Consumer/Retail, Technology and Energy. This expertise has been developed in many countries where CEVA operates. The company has a systematic approach to transfer best practices across the countries in order for the customers to make the most of the solutions CEVA offers. Mr. Angus highlighted that their SMART solutions are a set of established and proven processes which help them identify common areas where customers are able to standardise their core processes of supply chain solutions. They continually add to these solutions, launching ‘SMART End to End’ in May 2011 and ‘SMART Energy’ at the end of the year. “As already mentioned, we offer an integrated approach and are focused on
“The region is certainly growing through investment. With investment comes opportunity which is where the logistics industry will benefit. Coupled with the population reach, the future looks very bright,” concluded the sales & marketing director. New projects In another note, CEVA Logistics has officially opened its Control Tower in Alcobendas, near Madrid, Spain. The Control Tower is an innovative and integrated information hub that offers enhanced control functions to cater for all logistics services and has been structured in a similar way to the Milan Control Tower which was launched in 2010. The Control Tower will allow the control
“In delivering our services, ‘Impeccable Execution’ is our credo. This applies to every area of our business and supports our clear goal to become the most admired company in the supply chain industry” - Warren Angus, Sales & Marketing Director CEVA MENACA
delivering ‘Operational Excellence’ to our customers, each and every day. By uniting and working together, we focus on growing our business by offering outstanding supply chain services to our customers and developing our business to support theirs.” Learning process According to Mr. Angus, compared to Europe where the term supply chain is very mature with many strong networks, the Middle East region is still growing and learning. But he added that investment is second to none in the region which is why the Middle East will be the leading globally in terms of supply chain where the general market can learn from the challenges faced in mature markets.
of fundamental logistics operations from a single central point, at both national and international levels. In this way CEVA will strengthen the levels of service offered to customers, at the same time ensuring further cost optimisation. The Control Tower is an example of excellence and innovation within the logistics sector; a state of the art solution that offers companies both short and long term benefits, including optimised transport planning, improved reaction time to any issues and real time advanced reporting, thanks to 24/7 full coverage of all Iberian locations. The Control Tower is divided into three areas, each performing specific functions: Red Area; Blue Area; and Grey Area. May 2012 I
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FEATURE
How to ensure solid business development
A sustainable development program has several components with unique characteristics that should be applied by 3PLs. Petros Zenieris of Business Criterion tells us more about the path to success.
Business development is used to create new sales. Whether it is done as a subset of the corporate strategy execution for greater market penetration or new markets or whether it is a granular effort, business development is important. Many companies address business development with cold calling, email blasts, advertising or social media. Each of these tools misses a key point, beginning with the lack of focus and structure. The risk is using essentially standalone sales efforts instead of crafted business development. This methodology limits the effectiveness - and results. That is central to their shortcomings. There are three parts to a solid business development program. They are interrelated and should be integrated for a cohesive approach. The three are: 1. Unique Selling Proposition 2. Positioning Strategy 3. Market Positioning Unique Selling Proposition: Generally speaking, logistics services are viewed as a commodity service. That means price is a key differentiator for customers on selecting which provider to use. To counter this and to gain recognition for the company, an important need is to have a Unique Selling Proposition (USP). The USP is not about what the 3PL or logistics service provider
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does. It is about what customers really want. Underlying the proposition is a customer centricity. Customer focus is fundamental to business development. The Unique Selling Proposition is the Value Proposition. Its need increases when the company has missed sales opportunities and customer retention problems. Too many service providers send much time talking about themselves. In the end, such a narrow focus leads the ongoing price pressure continuum, lost sales and higher-thanneeded customer turnover. The key here, and with the positioning, is to separate the LSP from its competition. It is not about comparisons with competitors. There is competition for customers of logistics/ supply chain services to choose among. This is about more than having similar or different capabilities. This is about defining the provider is based on what customers want. What makes a selling proposition unique is its customer focus. A successful selling proposition is not a slogan. It is about the customers. It is a value proposition for customers, why they should use you. That is important to the accomplishment of sustainable success of growing and expanding. To develop the USP, the 3PL should: • Seek to define a competitive advantage; • Adopt a customer focus (investor centricity approach) to gain the attention of
FEATURE
potential customers; • Target an expanded audience of potential customers; • Evaluate developing multiple USPs to reach different target customers, markets and service possibilities because using only one USP may limit attaining opportunities; • Recognise customer needs as compared to the LSP offers; • Position with regards to competitors; The USP should answer the question of “Why should I select you for my supply chain needs?” Arranging transport or storing and handling goods is not enough for a USP. It should identify what the 3PL provides and how customer needs are met. The latter creates a value proposition for customers and builds customer centricity. The Unique Selling Proposition should: • Reflect needs of customers; • Differentiate the 3PL from the competition; • Define why customers should consider/ select the company; • Create value for potential customers; • Segment for different markets, customers or logistics opportunities; • Open new customer needs. Positioning Strategy: The firm needs to identify the best positioning strategy for it and what needs to be done to achieve this goal. There are several layers to the Positioning Strategy, including: • How to design the strategy; • Who to target with it; • What to target; • How to execute; • How to present; • Where to present; • How to design the strategy for multiple media and outlet venues. The intent is to position to a large audience. Let potential buyers of the service know the 3PL is there and what it does. Create awareness so that people can find the firm in their searches. This contrasts with the firm searching for customers. Underlying the above points is the question of whether the positioning should be monolithic with one message and approach for all prospective customers in the target customer sets or whether it should be segmented. One message is limiting and closes off opportunities. It should it be
There are three parts to a solid business development program, which are inter-related and should be integrated for a cohesive approach: Unique Selling Proposition; Positioning Strategy; and Market Positioning • Try to trigger new customer needs with “outside the box” thinking and additional services or approaches. Provide customers with concepts that you will work together with.
Petros Zenieris of Business Criterion
segmented and should be tailored to different customers and/or to different markets. Designing a well-targeted investment promotion and marketing strategy is critical to your success. Understanding the competitive landscape, its differentiators, unique value proposition, and constraints is crucial in designing an effective positioning strategy The key points here are: • Segment the positioning strategy and target it for different market sectors and/or customers. Do not use a monolithic, one-sizefits-all approach. Positioning will be customer centric and targeted to potential customers and markets. • Consider potential niche opportunities.
Market Positioning: This, tied with the Unique Selling Proposition, creates a branding for company. It is about having potential customers see the 3PL as the solution for their supply chain needs. This type of positioning presents credibility for customers. The marketing should have nationwide, even global reach, recognising that potential customers are located throughout the country. This is very important. There is a large base of potential users of the 3PL’s services. It should also be a multi-media approach, ranging from traditional print to the internet. The internet efforts may include a revised website with the new branding and USP, with search engine optimisation of key words for enhanced search rankings. Conclusion Business development is defining and positioning your service to customers. It is customer centric with a value proposition that is focused on customer needs. It is not about what the service provider does or comparing with competitors. Business development is about clearly differentiating from the competition to create customer interest in you and how you will help them. May 2012 I
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PRODUCT UPDATE
BEUMER presents innovative packaging technology
Extended Range Scanners by Motorola Solutions Motorola Solutions, Inc. recently announced the availability in Europe, Middle East and Africa region of the rugged DS3500-ER series of extended range scanners offering the flexibility to easily scan and capture barcode information from both near and extended distances for warehouse management and other applications in the harshest industrial environments. The DS3500-ER series is capable of scanning 1D and 2D symbologies and GS1 codes from as close as one inch to a tall rack in a distribution center 31 feet away. The omni-directional series of extended range
scanners improves worker productivity and reduces the need for businesses to purchase multiple devices. The rugged DS3500-ER can be used both indoors and outdoors for asset management, inventory management, picking, traceability, shipping and receiving applications in warehouses, distribution centers, manufacturing plants or warehouse-style retail stores. The ergonomic series is available either corded or in a Bluetooth® cordless version with FIPS 140-2 validation enabling greater worker mobility and enhanced security.
Clark diesel forklift C35D loads the Antonov A Clark C35D forklift with 3.5 tonne capacity has been loading the Antonov 124 at Leipzig/Halle Airport since January 2012. Here a legend in materials handling technology meets a legend in worldwide air cargo. Ruslan Salis GmbH provides air charter flights with Antonov 124 aircraft at Germany’s second largest cargo hub and opted for the C35D when loading the airplane, in the warehouse and ground traffic operations. The 2.8-litre diesel engine with indirect fuel injection proves to be not only low in pollution and fuel consumption, but also offers excellent acceleration as well as reliable handling on ramps and inclines. The powerful drive of the C35D comes into play for example when heavy goods are loaded into the AN 124 cargo hold with ideal measurements of 36.5 x 6.4 x 4.4 m. 44
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The easy, comfortable handling of the C35D also ensures for higher throughput during goods distribution and warehousing at Leipzig/Halle Airport. The power steering which enables secure, effortless steering and maneuverability in the smallest of spaces, as well as the vehicle’s compact design and ideal weight distribution, guarantee not only effective, sensitive work cycles but also stability when cornering in confined areas.
BEUMER Group, headquartered in Beckum, Germany, presented its innovative stretch hooding system BEUMER stretch hood® M, which is already used in the brick industry and offers a variety of options across a broad range of pallet packaging challenges and requirements. Packaging palletised bricks with the BEUMER stretch hood® M is quick and safe. In addition, this system accommodates a large variety of film thicknesses and is characterised by more flexible handling of different pallets and film formats compared to other systems. The combination of vertical and horizontal film forces during stretch hooding ensures increased load stability. With low specific energy and compressed-air consumption, as well as compatibility with recyclable packaging films, the BEUMER stretch hood® M is a cost-effective and environmentally sustainable approach to pallet packaging. The stretch hooding system is equipped with an optimised, userfriendly control terminal, which enables quick changes of operating parameters. Films can be replaced in minimal time.
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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.
Contact us and we organise a constructive meeting. Gutenberg Publishing FZ-LLC Dubai Media City, Al Thuraya Tower II, Office 1402 Dubai, United Arab Emirates
T +971 (4) 4334 360 F +971 (4) 4517 945 E info@gutenberg-dubai.com
LOG. CLASSIFIEDS
Operations Director, Saudi Arabia A freight & logistics services provider currently seeks a highly driven Commercial / Operations Manager who can turn around new and successful business opportunities in General Freight Forwarding and Logistics. Responsibilities ■ Proactively manage daily Freight Forwarding activities of the company ■ Lead and direct all Sales and Business Development ■ Offer competitive products & services to the market ■ Actively develop client relationships at a senior level ■ Provide leadership, guidance and support to the team ■ Manage all divisional resources to ensure optimum utilization Requirements ■ An experienced operations candidate with proven success ■ At least 5 years of Sea, Air and Road Freight experience ■ Strong commercial ability ■ Able to conceptualise and deliver new Freight and Transport products & services
Regional Business Development, UAE
Issue 45 | MARCH 2012
www.log.ae www.log.ae
Issue 47 | MAY 2012
Issue 46 | APRIL 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
SALALAH FREE ZONE
OIL & GAS
Logistics
Reaping the benefits of being on a major trade route | Page 06
As a vital sector for the GCC economies, safe & secure logistics of oil plays a major role | Page 06
Logistics of
perishables Safe and risk free delivery of perishables from farm to consumer | Page 06
INNOVATION | 22
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
PREVIEW | 30
TECHNOLOGY | 38
BusinEss siMuLAtiOn
LOG. LEO AwArds
CHAMP CArGO systEMs
Enhancing profits with technology
Ceremony takes place this month
Reduce costs, maximise yields
Eng. Awadh bin Salim Al Shanfari, Chief Executive SFZ
TECHNOLOGY | 24
FEATURE | 28
REVIEW | 38
TEradaTa corPoraTion
Third ParTy LogisTics
Log. LEo awards
Analytic data solutions
Solid business development
Industry’s best recognised
SALALAH FREE ZONE - ADMINISTRATIVE HQ AERIAL VIEW SHOWING APPROACH TO MAIN ENTRANCE
Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com
Contract Manager, Thailand An experienced Thailand operations manager with 5-10 years logistics and operations experience in large MNC 3PL or Operations environments is required. The candidate must be well versed in managing warehousing, transport, customer service, finance, IT and HR as s/he will lead the consistent delivery of high profile contracts for a leading Thailand company through their strategic supply chain partner. With full operational accountability for the service delivery of this contract, the candidate shall have a strong sense of planning, leading commercial management and most importantly operational leadership. S/he will be leading from the front and working with the team to add value to the operations and be comfortable engaging with the client. Above average spoken and written Thai and English language capabilities are necessary.
Senior Projects Director, Afghanistan Reporting directly to the CEO, the key responsibility of the Senior Projects Director is to provide leadership as a key advisor to the management team within Afghanistan. Responsibilities ■ Candidates must be prepared to travel as required ■ Oversee all operations, systems and management decisions ■ Direct and supervise all support resources ■ Manage the direction of technical factors ■ Contribute ideas and operational expertise ■ Implement/design systems & processes Requirements ■ High level qualifications preferably from a FMCG ■ Senior Project Management experience ■ Experience in facilitation skills and people management skills ■ Able to operate autonomously in a remote environment
Operations Manager, UAE
A leading logistics service provider seeks a Regional Business Development Manager (Airfreight) to be based in Dubai, UAE.
A leading International Project Forwarding and Freight Management specialist seeks to hire an experienced Operations Manager to take over responsibility for their Freight Management. The role is based in Dubai, UAE. The Operations Manager will have the responsibility for the successful, proactive-managed daily operation of all sea, air and road freight forwarding activities within Dubai.
Responsibilities ■ Internal support for local country organizations ■ Develop and implement sales campaigns ■ Acquisition of accounts ■ Working on RFQ’s process ■ Identify and select airfreight opportunities ■ Work closely with implementation teams in the region
Responsibilities ■ Plan, develop, manage and implement local operational strategies and directions ■ Set up and monitor KPIs for efficient operational performance ■ Ensure compliance with all relevant legislation and approved codes of practice ■ Actively develop client relationships at a senior level Prepare and present detailed tender responses and bid documents ■ Actively promote the company through industry events, marketing activities
Requirements ■ 5+ years experience in Airfreight ■ Multi tasking ability ■ Excellent purchasing & negotiation skills ■ Ability to travel abroad frequently and for longer terms
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Requirements ■ Minimum 6 years Operations Management experience in Freight Forwarding & Shipping ■ Multi-modal experience in freight management ■ Strong operational knowledge and proven ability to manage complex movements ■ Good team player ■ Must be numerate, accurate & organised
LOG. CLASSIFIEDS Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com
Business Development Manager, China A success driven individual for the role of Business Development Manager - Contract Logistics is required. The role is based in Shanghai, China. The manager will be responsible for organic sales growth in within the scope of Warehousing and Distribution within China through active and aggressive new business development and for targeting and opening up new market segments. Responsibilities ■ Generate new business within the scope of warehousing and distribution ■ Establishment of performance metrics to measure respective services ■ Share knowledge and continually reinforce positive internal communication ■ Participate in service presentations Requirements ■ Min 2 years sales and business development experience in China ■ Solid understanding of Supply Chain Management and Solutions ■ China Distribution Knowledge & Experience ■ Ability to close deals and have analytical skills ■ Excellent skills in negotiation and sales presentation ■ Fluency in English and Mandarin
General Manager, Indonesia Senior Leadership role in the Logistics Market in Indonesia. The company is a leading Asian Supply Chain Solutions Partner and a leading Global supplier of Logistics, Freight Forwarding and supply chain management services internationally. The role will appeal to individuals who are commercially astute and place strong emphasis on customer relationships, are strong operators and running multi-customer (MNC’s), multisites operations environment. Requirements: ■ Degree qualified executive ■ Experience at a senior level at a 3PL company in Singapore ■ Willing to relocate to Jakarta ■ Familiar with labor intensive environment ■ Thought leadership and communication skills
Head Business Development, India To design, develop and, as appropriate, sell logistics and SCM solutions and services across India in support to the business. This will include comprehensive transport & SCM solutions including warehousing and possible fulfillment/added value services and may involve all aspects of SCM along with both primary and secondary distribution, either in-house or 4PL, across the subcontinent and islands of India. Responsibilities ■ Determined SCM Sales and SCM Budget responsibility ■ Design and deliver, manage and optimize all aspects of SCM sales ■ Develop and implement the strategy for the sale of SCM contracts ■ Design and deliver SCM sales solutions across all business sectors ■ Optimize logistics & transport networks ■ Manage the RFQ process up to the award of any projects Requirements ■ Graduate and MBA ■ Knowledge of business development process ■ Good legal knowledge particularly re-contract law ■ Knowledge of international freight market and trade organizations ■ Comprehensive experience with SCM modeling and optimization tools
Marketing & Sales Head, Kuwait Responsibilities ■ Determine M&S organizational structure, roles and goals ■ Develop, manage, direct and control the country M&S function ■ Sales reporting including KPIs, quotation analysis, pipeline, etc. ■ Implement regional marketing strategies and concepts ■ Analyze growth opportunities, assess their cost and profitability ■ Train of sales team and set challenging sales targets Requirements ■ Min 2 years experience in M&S management ■ Degree level education ■ Knowledge of freight forwarding business, logistics ■ Fluent English verbal and written, Arabic an advantage ■ Excellent business / commercial acumen
These brief postings are courtesy of Logistics Executive, an International Specialist Executive Recruitment and Business Consulting Company. To apply or to search for more positions in Supply Chain, Logistics and Transportation sectors, please visit www.logisticsexecutive.com
May 2012 I
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LOG CAFE
Sustainability on top of the agenda David Beanland, Sales & Marketing Director, Schoeller Arca Systems MENA Born and raised in the UK in a typical middle class British family, David Beanland is in many ways British. The Sales & Marketing Director of Schoeller Arca Systems MENA says traveling the world gave him an open mind and wider view of the world. Graduated in Electronic Engineering, David discovered that he was more comfortable talking to people and understanding what they wanted rather than sitting at a desk designing electronic circuitry. Flourishing in a sales and marketing environment, David came to the Middle East and set up an office for a UK company. He was then approached by Schoeller Arca Systems, which started with a detailed review of the market and moved rapidly into generating sales revenue and they are now going from strength to strength. David’s first day in the company was actually spent flying to Dusseldorf to attend a trade show and meet with some of the Schoeller Arca people in Europe. Since then almost every day has been different, which makes life very 48
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interesting if not a little chaotic at times. The company has a lot of expansion plans so he has to balance the planning process with the daily requirements of serving customers and generating revenue. David believes that there is a huge regional potential for Schoeller Arca and at the very top of their agenda is sustainability. “The really great thing about our green agenda and service offering is that not only does it help the planet but it also helps the bottom line of our customers. So by embracing the Schoeller Arca proposition for reusable sustainable plastic packaging solutions you can increase the bottom line for your company and make a difference to the future of the planet. That’s a real win win!” the sales and marketing director remarks. At Schoeller Arca they do not just sell a product but really engage with customers and offer better solutions. Sometimes they come up with completely new ideas for improved logistics which saves money and reduces the environmental impact of logistics. David feels that for the coming 12 months
things are still very uncertain. “Companies are cutting cost rather than increasing revenue. There are still huge levels of debt government and personal and getting rid of this could take many more years. The worries with the Euro continue and the potential defaults by some European countries are persisting. Then there is China..! So, in my opinion we are a long way from seeing a real recovery at a global level,” David remarks. And was there any culture shock for him in the beginning? Well, David has travelled to every continent on the globe except Antarctica and he is pretty used to adapting to different cultures, customs and environments. But even this didn’t really prepare him for the culture shock of actually arriving here to live. That time there was no going home and he needed to embrace the cultural differences. Not really fond of the cold damp grey days in the UK when it gets dark at 4.00pm, David likes the bright, sunny and warm days here throughout the year. He heads down to the Corniche in Abu Dhabi, sits at a café or goes for a holiday weekend in Dubai. Lovely!
www.log.ae
Issue 47 | MAY 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
SALALAH FREE ZONE Reaping the benefits of being on a major trade route | Page 06
Eng. Awadh bin Salim Al Shanfari, Chief Executive SFZ
TECHNOLOGY | 24
FEATURE | 28
REVIEW | 38
TEradaTa corPoraTion
Third ParTy LogisTics
Log. LEo awards
Analytic data solutions
Solid business development
Industry’s best recognised
SALALAH FREE ZONE - ADMINISTRATIVE HQ
AERIAL VIEW SHOWING APPROACH TO MAIN ENTRANCE
FAX TO: +971 4 451 7945
EVENTS
MAY
JUNE
Multimodal
International Logistics & Material Handling Exhibition
Birmingham, UK; 1 - 3 May www.multimodal.org.uk
GPCA Supply Chain Conference Dubai, UAE; 8-9 May http://gpcasupplychain.com
Middle East Rail Opportunities
Air Cargo China Shanghai; 5-7 June www.aircargochina.com
TOC Container Supply Chain Europe
Logistics Transport Exhibition
Antwerp, Belgium; 12-14 June www.tocevents-europe.com
Helsinki, Finland; 9 - 12 May http://mark.logexpo.fi
transfairlog
Riyadh, Saudi Arabia; 13 - 16 May www.supplychainsaudiarabia.com
Cold Chain Saudi Summit Riyadh, Saudi Arabia; 13-16 May www.coldchainsaudi.com
Logistics and Warehousing Exhibition Rome, Italy; 14-16 May www.ifwla-rome2012.com
Global Logistics and SCM Summit Dubai, UAE; 16 May www.sclgme.org
Future Roads Riyadh, Saudi Arabia; 21-22 May www.iirme.com/futureroadssaudi
Global Water, Oil & Gas Summit Dubai, UAE; 22-23 May www.cwcoilgasandwater.com
RORO 2012 Gothenburg, Sweden; 22-24 May www.roroex.com
Logistics & Transport Conference Gothenburg, Sweden; 22-25 May www.logistik.to
TransOman Muscat, Oman; 28-30 May http://trans-oman.com
TransCaspian Baku, Azerbaijan; 13-15 June www.transcaspian.az/2012
Saudi Supply Chain Conference & EXPO 16-18 June www.iscea.net/scc
LogiChem Asia Singapore; 26-28 June www.wbresearch.com
Al Thuraya Tower II, Office 1402 Dubai Media City P.O.Box 502547, Dubai, UAE Tel: +9714.433 4360 Fax: +9714.451 7945
Managing Director: Reinhard Wind reinhard@gutenberg-dubai.com EDITORIAL Editorial Director: Rustu Soydan rustu@gutenberg-dubai.com Sub Editor: Michelle Kasper michelle@gutenberg-dubai.com SALES & MARKETING Sales Manager: Andy MacGregor
UPCOMING TOC Container Supply Chain ME Dubai, UAE; 1-3 October www.tocevents-me.com
Iraq Mega Projects Dubai, UAE; 1-3 October www.cwcimp.com
China Int’l Logistics and Transportation Fair
andy@gutenberg-dubai.com LAYOUT & DESIGN Timonera Grafik info@gutenberg-dubai.com ADMINISTRATION Office Administrator: Sherlyn Millet sherlyn@gutenberg-dubai.com PRODUCTION Production Manager: Roy Varghese roy@gutenberg-dubai.com
Shenzen, China; 15 - 17 October www.scmfair.com
Logistics West Africa Lagos, Nigeria; 5-7 November www.cwc-logistics.com
Saudi Infrastructure Jeddah, Saudi Arabia; 15-17 December www.saudi-infrastructure.com
Jakarta, Indonesia; 30-31 May www.transportevents.com
Disclaimer: The details provided in the calendar may be subject to change. Please contact the organisers directly before making any arrangements.
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Gutenberg Publishing FZ-LLC
Hamburg, Germany; 12 - 14 June 2012 www.transfairlog.com
Asean Ports & Shipping
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www.logmiddleeast.com www.gutenberg-dubai.com
Barcelona, Spain; 5 - 7 June www.silbcn.com
Doha, Qatar; 9-10 May www.fleminggulf.com
Supply Chain and Logistics Forum Saudi Arabia
The LOG. Middle East Magazine is a publication of Gutenberg Publishing FZ-LLC. Licensed by TECOM, Dubai, UAE. Trade Licence No: 20704
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.
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