www.log.ae
Issue 46 | APRIL 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
OIL & GAS
Logistics As a vital sector for the GCC economies, safe & secure logistics of oil plays a major role | Page 06
INNOVATION | 22
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
H&P Trading delivers Austrian craftsmanship and solves your technical problems in public transport and infrastructure!
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Troubleshooting
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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
PUBLISHER’S NOTE
Getting closer to becoming a global hub Millions of people from all corners of the world pass through Dubai International Airport every month and many of us have experienced the airport’s tight security procedures, spent some time at duty free shops which register over $1 billion in sales annually, sipped a freshly brewed cup of coffee and checked pending emails while waiting for our flight. Although at certain times the facility becomes very hectic with longer queues due to several aircrafts arriving and departing within minutes of each other, with its ideal location between the East and the West the airport is already the region’s leading aviation hub and currently number four globally in international traffic. A recent announcement by Dubai Airports has indicated that monthly passenger traffic exceeded the 4.5 million mark for the second consecutive month in February. This is remarkable growth considering that a year earlier in February 2011 the airport welcomed 3.83 million passengers. The GCC countries again registered the largest increase in total passenger numbers followed by the Indian subcontinent, Western Europe and Africa. Over 56 million people are expected to pass through the gates of Dubai International Airport in 2012 and the airport is on the right track to become number one in the world sooner or later! Being the publisher of this logistics magazine, I was interested more in cargo
activities at the region’s major air hub. There is good news on freight volumes, which saw an upturn after months of flat growth. According to the statistics, cargo volumes were up 6.5 per cent reaching 157,492 tonnes compared to 147,937 tonnes in February last year. Sources say that temperature sensitive cargo such as pharmaceuticals and electronics have been driving this freight growth. These figures encouraged me to feel more optimistic on business prospects this year not only in the UAE but also throughout the region. We have to admit that there is still instability in some countries but Dubai has been a safe haven not only for investors and businessmen but also a major destination for holiday goers. The economy of Dubai and the UAE benefits greatly from such activity and in return we see new initiatives being taken by the country’s leaders to improve infrastructure befitting a global hub. Before I conclude, I would like to once again invite all our readers to be a part of the upcoming LOG. LEO Awards, which is scheduled to take place on 19 April in Dubai. An insightful seminar programme has taken shape and the award ceremony will be held on the same day. There is still a chance for your company to be involved in this prestigious event and get exposed to the right community. Please feel free to get in touch for any queries. What else to say - see you there at the event!
Reinhard Wind Managing Director, Gutenberg Publishing FZ-LLC
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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
IN THIS ISSUE
APRIL 2012
26 ANALYSIS
Iraq as an Emerging Market
06
Despite the ongoing security issues, the country still offers lucrative business opportunities.
COVER STORY
Logistics in Oil & Gas industry Transportation, storage and delivery of products and bi-products of the oil and gas industry definitely require experienced professionals highlighting the role of the world’s top logistics companies.
30 PREVIEW
LOG. LEO Awards
FEATURE
Excitement runs high as the industry gears up for the big day. Selecting the best of the logistics and supply chain industry in the region, LOG LEO Awards ceremony as well as the seminar is set to take place on 19 April in Dubai, UAE.
IT Security Malware networks or malnets have become the most significant evolution in the threat landscape to launch highly dynamic webbased attacks.
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INNOVATION
TECHNOLOGY
Enhance with simulation
CHAMP as the champion
As the classic static planning methods often reach their limits when it comes to evaluating the interactions between subprocesses, simulation has established itself as a valuable planning tool.
LOG. Window 12
Dedicated to the needs of the air cargo industry, CHAMP Cargosystems provides integrated services for cargo carriers and their distribution partners to drive out cost, maximise yield and achieve industry compliance.
22
Product Update 42
LOG. cafe` 43
LOG. Classifieds 44
Events Calendar 46
COVER STORY
Professional logistics services in high demand in Oil & Gas industry The Oil & Gas industry is considered to be among the top ranking industries which are in a continuous state of high demand for logistical services, starting from how crude oil is sought out, extracted, processed and transported up till the need for immediate solutions to emergency spills and errors taking place at drilling sites.
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COVER STORY
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he logistical market serving the Oil & Gas sector is constantly evolving, advancing and expanding into numerous offerings of industrial solutions that are dedicated only to serving this particular industry. The transportation, storage and delivery of products and bi-products of the oil and gas industry require experienced professionals and highly-skilled labour; this is where the role of the world’s top logistics companies is highlighted. Leading logistics companies both in the region and outside function to serve this sector by providing high-quality security and safety services in order for oil and gas to efficiently and effectively reach the final consumer with a major emphasis on cost-effectiveness. This massive industry operates in almost every geographic spot in the world and under all climatic circumstances, including places that would never come onto any human mind. This clearly highlights the need for complex logistics networks that serve the very demanding oil and gas sector. Being a very demanding business, logistical support emphasises that asset availability along with process uptime is today more critical than ever in the industry. Fuel prices are rising by the minute, so every second is quite crucial to the survival of any company operating in the oil and gas sector. In addition to that, any errors taking place at any level of the supply chain may put the companies at risk for incurring huge losses. Safety concerns Safety is, of course, a concern across all manufacturing sectors. However, it is the one and most critical element for the continuation of the oil and gas industry. The risks and hazards that can occur at any drilling site are quite numerous, ranging from the inability to respond with high effectiveness to dangerous emergency situations up to the spilling of toxic agents and explosions that can harm an entire community. Such situations, if not handled professionally, can be extremely costly and at some times can lead to shaking consumer and investor confidence. Choosing which technology to adopt requires in-depth analysis of the current situation. Every project is different, and this indeed calls for the creation of a variety of April 2012 I
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COVER STORY
safety systems. Logistical support provides a wide range of available safety system options, key vendor and technology considerations, and pros and cons of common design approaches. It also highlights some of the business benefits companies can gain by implementing intelligent safety systems, including helping improve worker safety, asset protection and availability, reduced labor costs and increased overall equipment effectiveness. Oil and gas sites use a large number of processes that are in high demand for the ongoing operation for both financial as well as practical reasons. A shutdown of an oil distribution pipeline, for instance, may require days to start functioning again which incurs losses of millions of dollars with stopped production. It is therefore quite crucial that critical devices such as compressors, instruments and pumps, are always working at their regular rate even if the overall control system falls down. From site to refinery The most important phases in the logistical process of oil production is the transportation of crude oil from drilling sites to refineries, as well as the distribution of oil products, and bi-products, to the final market customer. For short-distance 8
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The logistical market serving the Oil & Gas sector is constantly evolving, advancing and expanding into numerous offerings of industrial solutions that are dedicated only to serving this particular industry. product transportation, railways and trucks are used, while for international trade, oil tankers are employed and for domestic and local transportation, pipelines are much more efficient and cost-reductive. Substantial tankers utilise less fuel for every km, henceforth emanate less CO2 contrasted with more modest tankers. With respect to pipeline transportation, unrefined oil is frequently channeled to refineries and oil items to huge clients and wholesalers. The power needed for pipeline transportation depends on volumes, pipeline breadth and oil value. Oil might be saved in terrain-built tanks and with respect to-sheet oil tankers for either life security explanations and benefit purposes, the last dependent upon shortterm shifts of the oil cost. Volume and distance are key components to certify the most drastically suitable and productive transportation mechanics for natural gas. For more vast
volumes pipeline transport is gainful for short to medium separates and liquefied natural gas (LNG) – which has 600 times more diminutive volume contrasted with indigenous gas in vaporous stage - is productive for more impressive separates. Numerous contending mechanics incorporating power creation and compacted indigenous gas are suitable for minor volumes. The LNG mechanics combines characteristic gas liquefactions, transporting by armadas, and regasification of natural gas at the gaining terminals. The natural gas is then conveyed coastal by e.g. pipelines and appropriation lattices. The expense of the liquefaction plant has diminished altogether at the same time as the past decades owed to upgraded mechanics and expanded plant size. LNG armadas are customarily fuelled with large fuel oil, nonetheless diesel drive has come to be more regular at the same time as the past years. Natural gas
COVER STORY
might be saved underground and ready LNG armadas for either life security and business purposes. Huge volumes to transport Oil logistics normally incorporate the transportation of rough oil from the preparation locales to refineries as well as the transportation and dissemination of oil items to businesses and clients. Innovations for ‘vast-ocean’ transportation incorporate oil tankers and pipelines, while ground transportation is essentially dependent upon channeled, prepares and trucks (for circulation). The larger piece of the pie of global trade is dependent upon open-sea transportation by tankers while pipeline are more utilised for local transportation. The international trade of oil has built critically in the midst of the final decades and in 2009 has gotten to the level of 52,930 kilo barrels daily (kb/d). The Middle East was found to be the region with the highest record of oil and gas exports, with 18,425 kb/d, i.e. 16,510 kb/d of unrefined oil and 1915 kb/d of oil products and bi-products. Environmental concerns Offshore advancement is said to be the main causes of environmental contamination at every stage of oil and
The risks and hazards that can occur at any drilling site are quite numerous, ranging from the inability to respond with high effectiveness to dangerous emergency situations up to the spilling of toxic agents and explosions that can harm an entire community and every unplanned event advances as per the circumstances of its own scenario. The most drastically average explanations for accidents combine gear failure, staff mix ups, and utmost instinctive effects (seismic movement, ice fields, tropical storms, et cetera). Their essential risk is associated with the spills and blowouts of oil, gas, and various different compound substances and compounds. The environmental consequences of incidental scenes are in particular severe, some of the time quite catastrophic, when they happen close to the shore in shallow waters, or in places with moderate water dissemination. gas production. The purposes, scale, and severity of the accidents’ outcomes are greatly variable. They hinge on a concrete mixture of a considerable number of indigenous, specialised, and innovative components. To a certain degree, each
Health and safety factors Any company operating in the logistics of the oil and gas industry is a provider for an opportunity to save millions of dollars in operating and production costs while at the same time, enhancing production April 2012 I
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COVER STORY
and improving the safety of the work force. Clearly, logistics is the key to maintaining operational continuity and efficiency and plays a major role in reducing fatalities. The key to optimising logistics is early planning and scheduling, followed by intensive reviewing after execution to offer a strong focus on safety and compliance issues. Logistical support comes with a priority of the safe management of the functional workforce of the oil and gas industry, and any company working in this field serves with the human labour as their main concern. Scenario in the Middle East The Middle East is considered to be the most important client for the logistics of the oil and gas industry. The region presents a lot of challenges and companies operating in this area employ innovative oil production solution with careful consideration to cost-minimisation and sustainability factors. Even though the Middle Eastern market is quite demanding, leading logistics firm continue to believe that there is a huge growth potential and the opportunities for exploration seem to be quite endless. The global logistics research company, Transport Intelligence, claims that its findings prove that the Middle East contains several market growth chances, and in 10
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Even though the Middle Eastern market is quite demanding, leading logistics firm continue to believe that there is a huge growth potential and the opportunities for exploration seem to be quite endless its Emerging Markets Logistics Report for the logistics firm Agility, Saudi Arabia is found to be the greatest growth area in the world. The UAE also seems to be quite remarkable ranking as the top emerging market with a GDP of less than $300 billion. The most challenging question facing most companies in the Middle East is “Where to invest next?” as the opportunities seem to be quite numerous, however, firms need to ensure their strong presence in the market by being able to provide high-quality solutions to their clients. Top companies in the sector As the industry grows each day, the need for highly qualified professionals handling the logistics of the sector is in a rapid increase. The market for oil and gas logistics is quite competitive on a global scale, and many companies strive to serve the sector by creating cost-effective logistical turnkey solutions for the industry and innovations which enhance production.
One of the major oil and gas suppliers in the world is ASCO, operating in several locations with over four decades of active presence in the field. ASCO is considered to have the largest client base from the oil and gas industry in the world as they offer tailored solutions which aim to serve their clients’ needs at its best. Another leading global supply for oil and gas logistics is BDP International. BDP has a customer base, serving the world’s leading petrochemical companies such as DuPont, Shell and Exxon Mobil. “Our ability to offer turnkey logistics solutions—from supply chain management of rig and FPSO new building and conversions through to the transportation of heavy-lift structures supported by our in-house transport engineering division and finally logistics support for offshore and onshore assets in operation, is what gives BDP Oil and Gas Logistics an edge over its competitors,” says Martin Runshaug, commercial director of BDP Oil and Gas Logistics.
COVER STORY
Logistics companies provide a wide range of full environmental services, such as Environmental Impact Assessments (EIAs), waste management, hydrogeological assessments and several others. They hold the institutional learning that serves as the spine of the present aids to the oil and gas sector
A famous provider of logistical services for the oil and gas sector is Agility. With over 160 years of active presence in the logistical field, Agility has a wide client base from over 120 countries covering almost every area in the world. Agility’s staff is comprised of 37,000 very talented and innovative individuals with a proven record of overcoming the toughest challenges in the industry.
And if we come to talking about logistical offerings in the Middle Eastern oil and gas sector, it would be particularly important to mention GAC Logistics, also a main company with various logistical offerings and active presence in the Middle East since 1956. GAC Logistics also has a subsidiary company, GAC Energy, which focuses on both onshore and offshore shipping operations, marine tasks and logistics. How sustainable is it? The ideology and practice of environmental management and sustainable development have evolved during recent years within the oil and gas industry. This has been partially because of a reaction to public concerns and to the impositions of increasingly stringent environmental regulations. In particular, environmental awareness has grown on a global level as well and the need for environmentally friendly and sustainable industrial solutions is quite inevitable. Logistics companies provide a wide range of full environmental services, such as Environmental Impact Assessments (EIAs), waste management, hydro-geological assessments and several others. From permitting issues in the very first production stages to administrative agreeability at generation operations, logistical companies hold the institutional learning that serves as
the spine of the present aids to the oil and gas sector. Such services are only valuable if they are offered in a timely and efficient manner, as most of the emergency spills require taking immediate action for damage mitigation. Companies also have their own Occupational Health and Safety departments which aim to ensure that the work conditions are matching with the standards and they work can be resumed or immediately stopped, at certain drilling locations. The ultimate goal of such departments is the occurrence of zero incidents and zero fatalities. Regular processes included in the analysis of the environmental impacts of certain oil drilling operations include risk analysis, emergency planning, coastal surveys, pre-spill and post-spill investigations as well as the evaluation of the mechanical cleanup equipment. It would be safe to say that the logistics of the oil and gas industry are becoming quite demanding as the market becomes more competitive and the demand for more innovative and cost-effective solutions is in a continuous rise. With ongoing research and technological progress, logistical solutions which aim to serve the oil and gas sector also aim to consider the environment and ensure the sustainable development of surrounding communities. April 2012 I
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LOG. WINDOW
Kapsch presents new products for tunnel safety Kapsch TrafficCom recently presented innovations for increased tunnel safety at the Intertraffic exhibition in Amsterdam. The Kapsch ‘Incident Detection System 2.0’, a product for detecting traffic events, provides more efficient and proactive tunnel safety with its components Automatic Camera Calibration (ACC) and Alert Visualization (AlVis). Up to now, calibrating cameras located inside tunnel systems has been an expensive and time-intensive activity. The ACC innovation by Kapsch makes the calibration of tunnel cameras up to ten times more accurate, while simplifying the operation. The system is mounted to a maintenance vehicle using a standard luggage rack and can be conveniently folded away after use. In addition, the ACC enables the camera calibration process to be reduced to a minimum of the previous norm. “Older methods of calibration took up to 50 hours in an average tunnel, while the same process can be completed in a maximum of two hours with ACC,” confirms Marcus Brown, Product Manager for Video & Sensor Solutions at Kapsch. To better support the tunnel operator
in an emergency, Kapsch developed AIVis - a program for the visualisation and prioritisation of procedures in tunnels. The software enables incidents to be played back, supported by access to the video storage, and makes it possible to forecast and predict situations. ACC and AIVis contribute significantly to making the monitoring and maintenance of tunnel systems more efficient. Up to now, tunnel and motorway sections occasionally had to be closed completely in order to
carry out maintenance work, which can cost up to € 100.000. Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS) and primarily supplies electronic toll collection (ETC) systems. Kapsch TrafficCom covers the entire value creation chain of its customers, from products and systems to integration and operations. Kapsch TrafficCom AG is headquartered in Vienna, Austria, and represented in 27 countries.
InfraMed invests in Turkish port InfraMed, an infrastructure investment fund that capitalises on the Mediterranean region’s ongoing need for infrastructure development, has acquired a 20 per cent stake in Limak Iskenderun, the special purpose vehicle (SPV) that will operate and develop Iskenderun Port in Anatolia under a 36-year concession. The deal marks the fund’s first entry into the promising Turkish market. “This landmark transaction demonstrates our team’s ability to close attractive deals and participate in developing the region’s infrastructure,” said Karim Moussa, Managing Director at EFG Hermes and Member of the Investment Committee of InfraMed.” The stake was acquired from Turkish industrial conglomerate, Limak, which will continue to hold the balance of the equity. Limak Iskenderun won the port 12
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concession as part of the government’s privatisation programme in December 2011. Currently a general cargo port, Limak Iskenderun will invest in the facility to transform it into a leading container terminal with a phase 1 capacity in excess of 1.3 million TEU per annum. “InfraMed has entered its operational phase and expects to announce, in the coming months, additional investments which are now at the advanced stages. Fundraising activities will also commence shortly,” said InfraMed Chairman of the Investors Board, Franco Bassanini. “InfraMed will play an important role as an instrument for cooperation between Europe and the countries of North Africa, the Levant and Turkey in the crucially important Mediterranean basin.” InfraMed is a long-term infrastructure
investment fund focused on the Southern and Eastern Mediterranean regions, which have some of the highest economic growth rates with the fastest population growth and youngest population worldwide. The historical under-investment of the infrastructure sector magnified by the increasing urbanisation trends and rising standards of living have resulted in enormous regional needs for project developments in transportation, energy, urban infrastructure. The fund was launched in May 2010 by five leading European and regional institutional investors: EFG Hermes (Egypt), the European Investment Bank (Luxembourg), Caisse des Dépôts et de Consignations (France), Cassa Depositi e Prestiti (Italy), and Caisse de Dépôts et de Gestion (Morocco).
LOG. WINDOW
Famco and Merlo enhance cooperation FAMCO and Merlo are partners in providing construction solutions, technical expertise and product support in order to enhance productivity. Both companies are committed to providing customers with a complete range of high quality products, backed by regular maintenance and support services. Furthermore, Merlo products are produced with the most advanced levels of technology, combined with practicality, safety and comfort – all designed to provide customers with the ability to manage high levels of productivity. For decades Merlo machines have proved to be the ideal solution for operators, ensuring flexibility during construction site operations. Merlo leads the way in technological advancement; in fact, Merlo is becoming a point of reference in the telescopic handler industry throughout the world. Technology with innovation is clearly seen in the award
winning model P55.9CS which features a cabin with hydro pneumatic suspension. The Merlo range includes telescopic handlers, self propelled access platforms, concrete mixers, tool carriers, solid urban waste collectors and tracked
INNOVATIVE LOGISTICS
www.geodiswilson.com
Geodis Wilson UAE LLC PO Box 219, Jabel Ali Freezone UAE Tel. +971 4 880 9220 Fax. +971 4 880 9337 info@geodiswilson.com
transporters. Over 50,000 machines are in operation around the world. The cooperation between two companies has been further strengthened by a recent visit of Merlo executives to Famco headquarters in Dubai.
LOG. WINDOW
India to become world’s 3rd largest aviation market A new report published Centre for Asia Pacific Aviation (CAPA) and air transport IT specialist SITA forecasts that India will become the world’s third largest aviation market by 2020 and examines whether the country has the right investment, infrastructure and regulatory system to enable this growth. Technology and innovative practices will play a key role in meeting the challenge of growth but the report finds that IT is not always considered a tool of strategic importance. The joint CAPA-SITA Report on Innovation and Technology: Opportunities for Transformation in Indian Aviation builds on a previous report produced in 2010. It provides an update on the IT landscape in India’s air transport industry, and also highlights some of the challenges in deploying innovative technology across the industry. The report incorporates the perspectives of the key stakeholders in the industry and makes some predictions for the future. Indian aviation has changed hugely
since 2000 when just one carrier flew overseas - today there are seven; passenger traffic has increased from 42 million to 150 million; and the country’s fleet has grown from 119 aircraft to 437. The low cost sector has grown massively and now represents 70 per cent of the market. The CAPA-SITA report predicts that by 2020, 452 million passengers will fly each year and there will be 1,030 aircraft in the fleet. This will make India the world’s third largest aviation market.
Tourism to contribute $44b to GCC in 2012 The United Arab Emirates, Saudi Arabia and Qatar have all embarked on aggressive hotel and transport development programmes as they seek to diversify their economies away from oil and boost revenues from the tourism sector. The total direct contribution of travel and tourism to GDP in GCC countries is expected to reach US$44 billion this year, up 27 per cent from 2009, the peak of the financial crisis in the Gulf, according to the World Travel & Tourism Council. In the United Arab Emirates, this figure is expected to hit $19.9 billion this year, compared with US$16.6 billion in 2009. The direct contribution of travel and tourism to Saudi Arabia’s GDP is expected to reach US$14.9 billion, or 2.9 per cent in 2012, up from US$10.4 billion in 2009. Saudi 14
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Arabia is spending more than $500 million on expanding its existing airports and is planning a new US$7bn airport in Jeddah. Qatar’s infrastructure spend will dominate the next five years as the Gulf state prepares to host the 2022 World Cup with around US$65 billion due to be invested in new transportation schemes. These include the new US$11 billion Doha International Airport, the US$6 billion Doha port project and a US$25 billion metro and railway.
Higher demand seen for public transport solutions
MAN Truck & Bus Middle East expects demand for public transport solutions in the region to grow continuously over the next three years. The bus provider predicts that the infrastructure development plans announced by the GCC governments at the beginning of this year will lead to a greater demand for viable and comfortable public transport solutions, as part of overall plans to build and improve city transportation networks, and in line with plans to boost local economies and improve the quality of life. MAN’s predictions come ahead of its participation in the MENA Congress & Showcase and UITP International Taxi Conference in Abu Dhabi. The event hosts spokespersons and entities from across the world with interests in the field of public transport, from both the public and private sectors. Thomas Weinmann, Senior Sales Manager, MAN Truck & Bus Middle East said “MAN expects to focus attention on the region’s markets, especially UAE, Qatar and Oman, as these markets offer great potential, especially in terms of demand for gas-powered buses. We also intend to strengthen our position in the Saudi market in line with growing government interest towards improving the public transport sector. The Department of Transport in Abu Dhabi is already operating 400 MAN buses and runs currently a trial period with a 100 per cent gas powered MAN Lion’s City bus. The bus is the first to be TÜV certified in the UAE and is especially developed for hot countries in the Middle East.
LOG. WINDOW
Major manufacturers line-up at Commercial Vehicles show The showcase event for the Middle East commercial vehicles industry took place in Dubai from 6-8 March, bringing together the transport, fleet and logistics decision makers from across the region’s road transport business. The three-day event ran in tandem with the Commercial Vehicles Conference, which hosted a panel of experts from leading transport organisations addressing key issues for the industry. Mercedes-Benz showcased its latest range of trucks, including its flagship model for the Middle East, the Actros, as well its off-road specialist, the Zetros. Renault Trucks, which uses a network of 19 dealerships, 25 service points and mobile workshops to cover 19 countries across the region, also had a prominent presence with its 4x4 Sherpa Scout military vehicle and the 6x6 Kerax off-road truck. Other industry heavyweights in the exhibition line-up included Shell, Michelin, Arabian Automobiles, Isuzu, IVECO , Hino, Daimler Middle East, and Emirates Transport. Organised by Streamline Marketing Group, Commercial Vehicles Middle East is the region’s only dedicated event to commercial vehicles, parts and services. Alexandria Robinson, Project Manager, Commercial Vehicles Middle East said: “Commercial Vehicles Middle East exhibition and conference is the only event in the region providing an all-inone platform for knowledge exchange, commercial partnerships, market analysis, and technology updates for transport, fleet and logistics managers. Smarter mobility solutions Road transport, fleet and logistics managers from across the Middle East were urged to streamline operations and become more fuel efficient. Jörg Spanke, Business Manager of Fuels at Shell Technology Centre UK, said that amid increasing global fuel demand, transport organisations in the Middle East must find smarter fuel solutions. He added transport companies need to be leaner and more efficient than ever, hence a key requirement for them is to optimise operations and reduce expenses, with fuel costs being a major part of a
Commercial Vehicles Middle East brings together major manufacturers and the largest ever gathering of transport, fleet and logistics decision makers from across the region’s road transport business
Jörg Spanke, Business Manager of Fuels at Shell Technology Centre UK outlined Shell’s Smarter Mobility solutions at the Commercial Vehicles Conference
company’s fleet operating costs. Outlining Shell’s new ‘Smarter Mobility’ solutions, Spanke highlighted the newly formulated Shell Diesel Extra. First launched in the UAE in July 2011, the cleaner, more efficient diesel is capable of saving fuel by up to three per cent over the lifetime of a commercial truck, while also reducing its CO2 emissions by 55 tonnes every year. New care programme Al-Futtaim Motors, exclusive distributors of HINO in the UAE, announced the introduction of HINO C.A.R.E. programme,
which consists of a service contract that allows HINO customers to benefit from a host of privileges (priority booking, free 24/7, free inspection of the vehicle etc.) and special price package during a series of scheduled maintenance. “By C.A.R.E we mean Competitive pricing, Assurance of quality, Reliable services and Exclusive privileges reserved for the program members,” said Vladimir Knezevic, General Manager Al-Futtaim Motors’ Commercial Vehicles Division. HINO operates across advanced facilities and infrastructure and uses the latest diagnostic equipment, special service tools and HINO genuine parts through a qualified HINO technical team. April 2012 I
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LOG. WINDOW
Advanced oil plant inaugurated at Fujairah Port Emirates National Oil Company (ENOC) inaugurated its advanced lubricants and grease manufacturing plant at Fujairah Port, one of the world’s top three ports in bunker fuel supplies and marine vessels transit. Spread over an area of 63,500 sq m, the ENOC Lubricants & Grease Manufacturing Plant (ELOMP) has a current blending capacity of 100,000 metric tonnes (MT) of mineral and synthetic lubricants based oils, and 5,000 MT of grease per annum. With the completion of Phase II, Phase III & Phase IV in 2012, 2013 and 2014, ELOMP will have the capacity to produce over 250,000 MT of lubricants and grease. Certified to ISO 9001:2008 for quality systems and ISO 14001:2004 for its quality and environmental management systems, and 18001:2007 OSHAS for its health and safety management system, ELOMP is further equipped with technologies for blending and filling services, and has an ISO 17025 certified laboratory for quality control and oils and fuels analysis. Saeed Abdullah Khoory, Chief
Executive Officer, ENOC said, “Fujairah has the right policies and infrastructure to serve as a leading regional hub for exports and imports. We are confident that the plant will contribute significantly to the expansion plans of the Fujairah Free Zone.”
Mercator signs first low cost carrier Mercator has signed an agreement with flydubai, Dubai’s low cost airline, to use Mercator’s cargo solution, SkyChain, enabling it to fully automate its cargo operations. Along with SkyChain, flydubai has also engaged Mercator to provide revenue accounting services, using RAPID, to process and account for cargo transactions. Both technologies will benefit flydubai’s operations, by enabling the airline to optimise costs, increase operational efficiencies, and maximise revenues and profitability. “The ability for an airline to be able to capture and analyse accurate and consistent revenue records, and to manage its cargo operations in an integrated and paperless fashion, places it at distinct advantage amongst its competitors,” said Duncan Alexander, Vice President Mercator. “In today’s economic climate, 16
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flydubai Cargo at Dubai International Airport
these capabilities can be the difference between a company’s success or demise. Our technologies are used to manage the passenger and cargo operations of airlines in 79 countries and flydubai is now the first low cost carrier in the world to implement Mercator’s SkyChain product.”
Aramex expands in Asia with Strategic Service Partnership
Aramex announced it has formalised entry into the South Korean economy, with the signing of a service partnership agreement with CJ GLS with headquarters in Seoul. The partnership between Aramex and CJ GLS follows Aramex’s recent venture into the Chinese market with the launch of the joint venture company with SinoAir, and the expansion across Africa in 2011 with the acquisition of OneWorld Courier and In-Time Couriers in Kenya, and Berco Express in South Africa. “The opportunities for our partnership in the South Korean high-tech, industrialised and export driven economy are remarkable, and we firmly believe that our partnership with CJ GLS will position us as one of the leading providers of transportations and logistics providers in Asia,” said Othman Al Jeda, CEO for Asia, Aramex. Wook Heo, Managing Director and Head of the CJ GLS Global Headquarters, stated that “CJ GLS has combined its outstanding service capabilities acquired through its domestic door-to-door deliver businesses with the global network provided by Aramex, which allows CJ GLS to provide customers services with even greater speed and accuracy.” Economic relations between South Korea and the Middle East and North Africa have been growing over the past decade with the Gulf Cooperation Council emerging as South Korea’s second biggest trading partner after China.
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LOG. WINDOW
Emirates SkyCargo and TNT Airways sign share agreement
Emirates SkyCargo and TNT Express’ airline subsidiary, TNT Airways expand their cooperation by signing a code-share and blocked-space agreement. Under the agreement, Emirates SkyCargo will place its airline code and use space on TNT Airways’ B777 freighter flights on the New York JFK to Liege and Hong Kong-Dubai-Liege routes. The agreement enables each airline to optimise its operational capacity, while increasing the weekly frequencies on these routes, using fuel-efficient Boeing
777 freighters. The flight frequency on the Hong Kong-Dubai-Liege route will be raised from four to six times a week. The flight frequency on the JKF-Liege route is five times a week. “Joining forces with TNT Airways will enable us to facilitate more international trade by providing our customers new business opportunities through increased connectivity between US and Middle East, as well as Dubai and Hong Kong,” said Ram Menen, Emirates’ DSVP Cargo.
Lufthansa Cargo Charter appoints new regional GM Lufthansa Cargo Charter Agency has named Steve Day as General Manager for Middle East and the Indian Subcontinent. Following a training programme at Lufthansa Cargo Charters head office in Frankfurt, Steve Day has taken up his new position. The new GM comes with a solid aviation and logistics background, with several years of experience in charter operations. Steve Day was born and raised in South Wales in the UK and moved to Dubai two years ago together with his wife and son to take up his position with Supreme Aviation as Operation and Charter Manager. Before that Day had years of logistics experience, a lot of it with relief and disaster operations to areas of conflict. ‘We are extremely happy to have such an experienced man on board now’ said Reto 18
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R.Hunziker, Managing Director of Lufthansa Cargo Charter, ‘with that background Steve will certainly be a very valuable addition to our team.’ Well, I will make sure that Lufthansa Cargo Charter will be amongst the best known charter brokers in the area very soon’, comments Day. ‘I am proud to be part of the Charter team and with its strength and possibilities of the whole Lufthansa Cargo Group I am sure we will be growing fast and successfully. Lufthansa Cargo Charter Agency GmbH, a subsidiary of Lufthansa Cargo AG, is a global provider of all types of air cargo charter services. LCCA’s individually tailored and cost-effective one-stop solutions guarantee customers just-in-time logistics management as well as total cost and capacity optimisation.
Air Seychelles announces strategic business plan
Air Seychelles unveiled a two year business plan to improve the carrier’s fortunes and position it as a premium carrier from the Indian Ocean region. The plan will see Air Seychelles renew its fleet, take advantage of equity partner Etihad Airways’ know how and reputation as well as its global route network, maximise efficiencies, boost sales opportunities and launch a scholarship training program for Seychellois. The plan was announced subsequent to the first meeting of the new Air Seychelles Board of Directors following the purchase by Etihad Airways of a 40 per cent share in January. Highlights of the plan include the introduction of two Airbus A330-200 aircraft; the launch of services to Beijing in early 2013, offering through connections to Johannesburg via the Seychelles; increased frequencies to key destinations, including Abu Dhabi, Mauritius and Johannesburg; closer cooperation with Etihad Airways to identify economies of scale and synergies in staff training, procurement and product development; and extended code-share operations with Etihad Airways to connect the Seychelles, through Abu Dhabi, with a global network of passenger and cargo destinations. Air Seychelles staff members such as pilots, cabin crew and engineers will have the opportunity to undergo training courses at the state-of-the-art Etihad Airways Training Academy in Abu Dhabi.
LOG. WINDOW
Maximus Air unveils aircraft with new livery The first aircraft to be painted in Maximus Air’s new livery rolled out of the Abu Dhabi Aircraft Technologies’ (ADAT) hangar and immediately re-entered the fleet to head off on another mission for the all-cargo airline. The livery comprises the new name and brand identity, which was first revealed at last year’s Dubai Airshow. President and CEO, Fathi Hilal Buhazza said he was delighted with the outcome of the makeover, and added that the name and look better reflect Maximus Air’s position as a modern, progressive and successful cargo carrier which is proud of its Abu Dhabi heritage. “Having grown from a local operator to a regional operator with some international trade, we are now ready to turn that business model on its head, “he said. “We have a lofty ambition, and that is to become one of the top three players in the global air cargo market. This is one of the reasons we
engaged the services of one of the aviation industry’s most creative designer of aircraft liveries, Didier WOLFF and his Happy Design Studio (HDS) in France to help shape the new brand within the context of this new strategy. The roll-out marks another exciting chapter in our journey to become one of the top brands in this industry.” Didier Wolff, founder of HDS who has been in ADAT supervising the repainting of
the Airbus A300-600RP2F added: “I would like to record my appreciation to Maximus Air’s CEO for his vision and audacity in selecting a design of this complexity and to the ADAT team who did a magnificent job in transferring the design from the conception onto the aircraft. They did it a highly professional job displaying the highest level of workmanship while all the time paying particular attention to the entire fine detail.”
Secure Freight gains worldwide acceptance The International Air Transport Association (IATA) announced that the Secure Freight programme has gained further recognition from governments around the world. The program works across the whole air cargo supply chain, helping to secure shipments upstream by ensuring that cargo has come from either a known consignor or regulated agent. Secure Freight evaluates the strength of a nation’s aviation security infrastructure and works with the civil aviation authorities to ensure that cargo is kept sterile until it is loaded. Not only does this ensure greater security, it also helps prevent bottlenecks at airports. “IATA is working with countries to build the capability for Secure Freight implementation, including the launching of pilot programs. The development of a consistent set of standards should facilitate the mutual recognition of secure freight programs,” said Des Vertannes, IATA’s Global Head of Cargo. The MOU was signed during the World Cargo Symposium in Kuala Lumpur,
Tony Tyler, Director General and CEO, IATA
Malaysia, 13-15 March. Nearly 1,000 cargo professionals have gathered to agree new solutions to deliver enhanced safety, security, quality and efficiency to the air freight sector. “Since it launched the first IATA Secure Freight pilot initiative, Malaysia has been at
the forefront of aviation cargo security, and this MOU commits us to work together for full implementation. Secure Freight offers the prospect of enhanced security and greater efficiency in the air cargo system, which should be of great benefit to the Malaysian economy,” said Tony Tyler, IATA’s Director General and CEO. Commenting on the MOU, YB Dato Seri’ Kong Cho Ha, Minister of Transport, said “I am pleased that Malaysia is the pilot country for the Secure Freight program. The result of this close collaboration will benefit many industry players as it will reduce the complexities and costs of air cargo security, as well as ensuring that the supply chain stakeholders are working towards the same direction.” Five governments have agreed to be co-signing authorities on IATA’s Information Paper on Secure Freight. The countries co-signing the document include the CAA’s from Malaysia, Kenya, Mexico, UAE and Chile. This represents a major step forward in building shared global standards for cargo supply chain security programs. April 2012 I
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FEATURE: IT SECURITY
Sophisticated cybercriminal infrastructure evolves to deliver malicious web attacks Malicious sites increase 240pc in 2011 with average business facing 5,000 threats per month, according to a study by Blue Coat Systems, Inc. In 2011, the most significant evolution in the threat landscape was the use of malware networks, or malnets, to launch highly dynamic web-based attacks. Blue Coat Systems, Inc., one of the technology leaders in web security and WAN optimization solutions, recently issued its Blue Coat 2012 Web Security Report that identifies and analyses trends in malicious attacks over the past year and makes recommendations on strategies to keep companies safe. These complex infrastructures, which outlast any one attack, drove a 240 per cent increase in the number of malicious sites during the year and are expected to launch as many as two-thirds of all new attacks this year. The Blue Coat Security Labs team first discovered the existence of these malicious networks early in 2011 and presently is the only company to specifically identify, track and block them.
Malnets are distributed network infrastructures within the Internet that are built, managed and maintained by cybercriminals for the purpose of launching a variety of attacks against unsuspecting users over extended periods of time Malware: What you need to know to protect your organisation
How malicious are malnets? Malnets are distributed network infrastructures within the internet that are built, managed and maintained by cybercriminals for the purpose of launching 20
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a variety of attacks against unsuspecting users over extended periods of time. The end game for malnets typically is either stealing personal information or transforming
end-user systems into botnets. The report details the strategies and tactics that malnet operators deploy to snare users and funnel them to dynamic malware payloads, or
FEATURE: IT SECURITY
software which surreptitiously installs on users computers designed for malicious or criminal purposes. “In 2011, the ease of buying, customising and deploying malicious software kits, coupled with a faster rotation through domain names, drove a 240 per cent increase in malicious sites,” said Chris Larsen, senior malware researcher, Blue Coat Systems. “With the average business now facing 5,000 threats per month, identifying and tracking malnets to block attacks at the source before they are launched is the most effective protection. Blue Coat uniquely provides protection from malnet-launched attacks even before they happen.” Beware of search engines According to the report, the most common entry point into these malicious infrastructures rely on the path of least resistance, utilising entry points that are easy to exploit, such as search engines/portals and email, or are utilized by large, diverse populations of users. Malnets have become so effective at launching attacks through search engines/portals that one in 142 searches leads to malicious links. The 2012 Web Security Report examines the malnet ecosystem in depth, examining user behavior, malnet strategies and tactics, as well as highlighting the best defenses against these aggressive infrastructures. The report includes topics, such as: • Most common content categories for intentionally or inadvertently hosting malware • Malvertising attacks that funnel users into malnets via malicious Web advertisements • Internet within an Internet that exists on social networking sites • Negative day defense as a protection against the dynamic nature of malnets The report also explores how the existence of these malnets is driving broader changes in the threat landscape, including: • The growing use of social networking to conduct trust and reputation-based attacks • A shift away from news-driven topics for search engine poisoning attacks • A significant increase in email attacks The report analyses data from the Blue Coat® WebPulse™ service. WebPulse is a cloud-based, real-time analysis and ratings service that unites users in a common
“One of the keys to leadership in the digital space is the provision of timely, relevant information at the right touch points. Indeed, before stepping online, it is wise to go back-to-basics and consider the consumer experience beyond the core product” - Steve Hamilton-Clark, CEO of TNS MENA defense. Delivered via Blue Coat ProxySG® appliances and the Blue Coat Cloud Service, WebPulse receives one billion web requests each day from 75 million globally diverse users. WebPulse can automatically identify abnormal traffic and correlate it to known malnets to block attacks before they are launched. Utilising these techniques and other advanced analysis tools, WebPulse blocks 3.3 million threats per day. Internet as a MENA staple Internet has undoubtedly become a part of our lives and this has been once again highlighted by another top executive. Many regional markets are experiencing a staggering increase in internet usage, up from 7.8 million to 187 million users in the last decade. The growth signals opportunities but at the same time a wide range of security issues with regards to access. Steve Hamilton-Clark, CEO of TNS MENA said, “Over the past ten years, internet use in the greater MENA region is up 2,300 per cent. I am seeing this as one of many indications that consumer brands must change the way they do business.” Hamilton-Clark shared that the recentlypublished TNS Digital Life global programme looks at how consumers in 60 countries behave online. “The statistics show that 90 per cent
of region-based consumers conduct research across all categories using the internet before purchase. They also indicate that e-commerce is set to grow in the region,” he said. He also stressed that as online engagement grows, consumer brands must be ready to manage a full spectrum of customer services, from assisting prepurchase research, through to product selection, purchase, delivery, as well as a slick after-sales service. “The internet affords infinitive opportunities and we urge marketers to fast appreciate this or face being left behind. Indeed, online and mobile shopping looks set to play an even bigger role as support channels, software and devices continue to develop,” Hamilton-Clark observed. “One of the keys to leadership in the digital space is the provision of timely, relevant information at the right touch points. Indeed, before stepping online, it is wise to go back-to-basics and consider the consumer experience,” he said. Turning to the UAE, many residents spend an average of 15 hours per week online, including three hours on social networking sites. Users are also active in video streaming, knowledge-based activities and gaming. Indeed, this represents enormous opportunities if used intelligently and diligently. April 2012 I
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INNOVATION
Enhancing profitability with simulation Growing product variety, shorter delivery times, individual customer demands, global supply chains, new technology and rapidly rising costs lead to constantly increasing demands in production and logistics. Being able to adapt flexibly to changed conditions and reacting quickly secures the success of your company in global competition. Highly efficient processes are an important basis for this. Modern production and logistics processes are shaped by their high dynamics and complexity. As the classic static planning methods often reach their limits when it comes to evaluating the interactions between sub-processes, simulation has established itself as a planning tool.
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INNOVATION
Simulation is a software-aided methodology to analyse and optimise processes as well as planning and testing new facility designs in an virtual environment. In material flow simulation we analyse flow items (such as parcels, products, orders etc.) being processed and transported through a system (e.g. port, factory, warehouse). Simulation enables companies to identify weak spots in their process, develop counter measures and test these risk-free. Material flow simulation evolved from the field of Operations Research, when problems and systems became too complex to be optimised through mathematical formulas alone. Model building is an art of holistic system thinking, sound knowledge of queuing theory, statistics and optimisation algorithms as well as the required programming skills. There are several types of simulation, the main three are: • Discrete-event simulation • System Dynamics and • Agent-based modeling The most established is the discreteevent simulation. That means the operation of a system is represented as a chronological sequence of events. Each continuous real-world process is divided in discrete parts (arrival event, time delays, departure event). Each event occurs at an instant in time and marks a change of state in the system. The System Dynamics methodology is typically used in long-term, strategic models and assumes a high level of aggregation of the objects being modeled. People, products, events, and other discrete items are represented by their quantities so they lose any individual properties, histories or dynamics. Agent based modeling can be defined as an essentially decentralised, individual-centric (as opposed to system level) approach to model design. When designing an agent based model the modeler identifies the active entities, the agents (which can be people, companies, projects, products, etc.), defines their behavior (main drivers, reactions, memory, states), puts them in a certain environment, establishes connections, and runs the simulation. The global behavior then
Katharina Albert, Managing Director of SimPlan Dubai
distribution often seen in uncorrelated events, such as customers arrival or the bell shape of the normal distribution for tasks that usually take a certain amount of time, let’s say 10 minutes, but could deviate in average by plus or minus 3 minutes (see Figure 1). Even in a highly automated system simulation is able to show phenomena occurring due to many simultaneously running processes. These could be sudden pile-ups in buffer zones and low utilisation of resources, as well as diminished performance of equipment caused by interfering process
Simulation is a software-aided methodology to analyse and optimise processes as well as planning and testing new facility designs in an virtual environment. Simulation enables companies to identify weak spots in their process, develop counter measures and test these risk-free. Application areas of discrete-event simulation includes: • Factory & production planning • Packaging & loading optimization • Warehouse design, e.g. high racks • Conveyor technology & automated transport systems • Baggage handling systems • Container handling terminals • Verifying performance levels under breakdown scenarios • Production, paint and assembly lines in the automobile industry
emerges as a result of interactions of many individual behaviors. Discrete-event simulation Most business processes are influenced by random events, e.g. the time an order is placed. Especially when manual labor is involved, the processing time can vary drastically, e.g. unloading a truck, processing documents and so forth. Instead of using the maximum or the average value for calculation, simulation tools allow the use of probability distributions (with a random number stream) to match the natural and characteristic shape of the process time. Examples could be the exponential
• Traffic systems & transportation fleet utilization • Distribution network planning • Sorting, Pick & Pack operations • IT integration and PLC controls testing before commissioning • Material and value flow analysis • Planning of medical facilities • Pedestrian simulation & emergency evacuations • Reduction of energy consumption • Strategic demand planning (best case & worst case)
sequences. The variables of a process are identified; hence companies can act proactively instead of reacting to unidentified bottlenecks.
Figure 1: Normal Probability Distribution
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Figure 2: Normal Probability Distribution
The steps of a simulation study: 1. Process analysis 2. Model generation 3. Model verification & validation 4. Running experiments 5. Analysing & evaluating results 6. If required: make changes 7. Running additional experiments 8. Drawing conclusions, document them & present the solution Data acquisition as part of transparency Variables are system parameters that could be potentially changed and shall be optimised (e.g. number of vehicles or workers). The use of probability distributions has to be well documented and their impact on the system behavior analyzed carefully. In the first phase it is important to clearly state the objective of the simulation study, agree on the scope and time frame and choose where to set the system boundaries. It is not always necessary to simulate the entire system, instead it could be more advisable to look at certain areas first and decide on several project phases. In the second stage the model is generated, e.g. machines placed in the layout and parameters are set (according to supplier’s data sheet with equipment specifications). Moreover the initial material flow and business rules have to be decided upon. These key characteristics of the system behavior are programmed as algorithms and connected as channels between the input and output ports of the previously placed items. Before starting any experiments the simulation model needs to be thoroughly verified and validated. Verification means that the code is free of errors and the goods are flowing correctly through the system. This is done frequently during the model building process. Validation means, that the finished model is accurately representing the real-world system. For validation purposes 24
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operators and experts other than the programmers should be involved to give their feedback and also discuss which scenarios should be tested in the experiments. It is important to align the experiment design with the objectives of the study and only vary one or two variables at a time. The simulation tools allow to run experiments at different speeds or without animation for faster processing and immediate output of statistics. Most simulation packages provide
a data-interface to spreadsheets or external databases or display a dashboard with graphs. An experiment designer module helps to setup a series of experiments and runs through sophisticated optimisation heuristics without human interaction. These deliver an optimal value for a certain variable along with comprehensive reports and data logs. Creation of value After looking at the first experiment runs,
INNOVATION
valuable conclusions can be drawn and you may wish to make changes to the model in case a bottleneck was detected. Try to add additional resources, alternative layout designs or optimize the business process. Re-running experiments for several iterations usually doesn’t take much time, unless substantial re-engineering of the system is planned and therefore major changes in the model required. Recognise your opportunities Consider the simulation model as your test environment for small and large process changes. What can be successfully realised virtually shows an almost identical impact in reality. Similar experiments are often not conceivable in the real processes as they are too expensive, risky or long-winded. In the recent years simulation has adopted many 3D visualization and drag & drop modeling techniques. By providing a good set of standard items in ready-to-use libraries, the need for programming has been substantially reduced, thus allowing a faster model creation and leading to a competitive cost-benefit ratio. Perfect planning with simulation In addition to the optimisation and back-
up of your planning the model is the communication platform between all members of your project team. Proposed ideas can be represented transparently and analysed with regard to their effectiveness. Already in the planning phase the simulation specialist can contrast and evaluate process alternatives and determine the optimum before you invest. The processes can be tested under arbitrary parameters and influencing variables. This ensures the flexibility and thus the competitiveness of your company as well as a sustained yield of your investments. Complex systems are often controlled by software such as material flow computers. Commissioning of this software with a simulation model not only provides you with the opportunity to test and optimise the control even before the real system is completed, furthermore considerably accelerates investments projects and increases software quality. This type of software is called emulation software, which enables you to directly execute your PLC code and watch the animation of the hardware components to validate the control system. Simulation
can also serve as an operative planning tool in manufacturing enterprises and distribution warehouses. Last, but not least simulation can be a great sales support and asset to prove your competitive advantage. Win over your customers There are several simulation software tools available, each specialised in certain application fields. Plant Simulation and AutoMod are being widely used for production and assembly lines, e.g. in the automobile industry. Other software packages concentrate on Logistics and Airports such as Enterprise Dynamics (ED), or FlexSim for Terminal Operations and planning of Medical Facilities. Anylogics is outstanding in Systems Dynamics and pedestrian simulation, the latter is also offered in the newest version of ED. If you need stunning 3D animation videos for your sales presentations or PLC controls testing Demo3D & Emulate3D would be your choice. Article courtesy of Katharina Albert, Managing Director of SimPlan Dubai. Contributions to this article by SimPlan, Demo3D and Anylogics April 2012 I
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ANALYSIS
Iraq: Re-emerging as a cost effective distribution hub With possibly the world’s largest oil reserves after Saudi Arabia, Iraq’s logistical needs and requirements continue to grow in line with a booming economy and improved security situation 26
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ANALYSIS
Overview of Baghdad City
With a population of 32 million and a surface area of 438,000 sq km, Iraq’s principal export destinations are the USA, India, Italy and principal import sources are Turkey, Syria and China. The country also has a strategic location between major regional players, including Jordan, Kuwait, Saudi Arabia, Turkey, Iran, and Syria. Iraq’s economy has long depended on oil exports to sustain the nation and it is estimated that Iraq has around 112 billion barrels of oil. If proven, this volume would constitute the second largest reserve in the world after Saudi Arabia. Furthermore, the country is
blessed with large reserves of natural gas deposits but largely untapped due to lack of adequate infrastructure. According to sources, improving security environment has been helping spur further economic activity, particularly in the energy, construction, and retail sectors. High oil prices have also been boosting government revenues but dilapidated oil infrastructure, which includes refineries and pipelines still require significant investment. Back in 2008, Iraq approved a reconstruction budget of over US$50 billion but there is still a long way to go before the potential is fully realised.
Logistical requirements to grow The Middle East logistics market is growing rapidly and Iraq is no exception. As Iraqi infrastructure evolves, the country’s logistical needs and requirements continue to grow and change. In the past few years, logistical support in this part of the world has become a strong focus area for all players in the logistics arena and beyond. As the history testifies, Iraq - blessed with enormous natural resources - has a long commercial tradition and will not take long to recover from recent challenges. With its strategic airports and sea ports, Iraq April 2012 I
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ANALYSIS
has the potential to grow into a major costeffective trading and distribution location in the Middle East. After more than a decade of sanctions and conflicts, the Iraqi economy is now growing making this country a key emerging market and attracting foreign investment from around the world. Moreover, changing demographics and increasing population require the construction and development of housing, hospitals, schools, and infrastructure. Such projects will surely create jobs, stimulate the economy, and increase the demand for logistics services. It is almost certain that the reconstruction of the country will attract huge investments, domestic and international, which will in turn increase demand for logistics and transport support in all sectors of the economy, from basic infrastructure to sophisticated industries. Logistics and transport services will thus play a crucial role in Iraq’s emergent economy. It is expected the demand will grow in both the public and private sector as the economy develops. Nevertheless, apart from great logistics opportunities, transportation of cargo to and from Iraq can be a challenging and complicated task. Moving goods to and from Iraq means coping with various requirements and constantly changing rules and regulations, and therefore requires specific experience and expertise. 28
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Changing demographics and increasing population require the construction and development of housing, hospitals, schools, and infrastructure. Such projects will surely create jobs, stimulate the economy and increase the demand for logistics services. Specific expertise to move around Due to the persistent challenges, the logistics operations need to be handled by competent companies in Iraq. Among them is Move One Logistics, which offers such expertise and has the necessary resources to handle the country’s most challenging logistical requirements. The company has been active in Iraq since 2003 and has grown into one of the leaders in the country’s logistics arena, which is considered to be one of the most challenging, demanding and uninviting environments of the world. As the Iraq market has transitioned its focus from government projects to the commercial sector, particularly oil and gas, Move One Logistics, after nine years of experience in working on military and government projects including infrastructure reconstruction, and the movement of heavy and oversized cargo, pipes and electrical equipment, is directing its logistic operations towards the civil reconstruction and commercial sectors.
Following market growth and changing requirements, Move One has positioned itself to make a significant impact on the oil and energy industry, particularly through valuable investments in warehousing facilities and inventory management systems, such as the company’s 42,000 sq m logistics facility in southern Iraq and four offices strategically located throughout the country, including facilities in Baghdad, Erbil, and Az Zubayr. Importance of local expertise Such requirements, particularly in Iraq, may not always refer to the basic mechanics of import or export, or even to pure handling of cargo, but are often related to emerging local bureaucracy that can be very demanding, and requires local expertise. Therefore, apart from modern equipment and material resources, it is essential that people involved in logistics operations are skilled enough to navigate local bureaucratic procedures. That is why the logistics company in Iraq should be equipped with
ANALYSIS
It is certain that the reconstruction of the country will attract huge investments, domestic and international, which will in turn increase demand for logistics and transport support in all sectors of the economy, from basic infrastructure to sophisticated industries a comprehensive understanding of the complex regulatory requirements of the area in addition to constant training of local staff. Although Iraq was recently considered an extremely harsh and unsafe country, the violence rate has dropped significantly, allowing this country to finally experience a certain level of stability and security in all aspects, including civil life and business opportunities. Nowadays, people and goods can move across all 19 provinces in Iraq, helping the economy to recover. In such circumstances, logistics and transport services have become the main driving
force and key support to this country’s economic development. Billions in investment Iraq’s major airports are being renewed. In addition, provincial governments are making efforts to upgrade existing airports and plan the construction of new ones. It is estimated that a budget of $50 billion is earmarked on airport expansion projects in Iraq in addition to over $150 billion under consideration for airport and logistics infrastructure related projects. With rising demands for logistic services, plans are also underway to construct cargo villages, which will include modern equipment and sophisticated technology. Iraq is heavily investing to rebuild its oil and gas industry, particularly in the northern region. It must be remembered that the petroleum industry once made Iraq one of the most economically developed countries in the region. If Iraq succeeds in reenergising its oil and gas industry, it could gain the potential to become one of the most advanced nations in the Arab world. Nevertheless, after many years of unrest, certain political risks remain, particularly evident in the Iraqi government shortly after the US withdrawal. Other apparent issues to be resolved are mostly related to security matters, bureaucracy, and uncertain regulatory and legal frameworks.
Whilst reconstruction projects and significant investments are driving this growth in the transportation, freight and logistics sectors in Iraq, the industry will now need to focus on specific measures that will ensure the long-term sustainability and viability of this current momentum. Basra Logistics City In a related development earlier this year, the former U.S. military facility known as Camp Bucca was handed to Iraq investment firm Northern Gulf Partners and Iraqi construction firm Kufan Group, which will transform the site into “Basra Logistics City”, a state-of-the-art business and logistics hub addressing the needs of the oil sector as well as, construction, and retail clients. Basra Logistics City is poised to become the preeminent business location in Iraq. Basra Logistics City provides urgently needed support for Iraq’s intermodal commerce, improving logistics and lowering the cost of doing business. The project also provides critical facilities for operations, HSE and other training, and storage, which are virtually non-existent in Basra but are badly needed by oil and oil services companies working in conjunction with Iraq’s $150 billion oil development program. Thanks to Move One Logistics, which has extensively contributed to this article April 2012 I
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PREVIEW
Best of the industry to be recognised this month The glamorous awards ceremony and the insightful seminar is scheduled to take place in Dubai, UAE 30
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‘LEO’ stands for Logistics, Excellence, and Optimisation and the industry’s outstanding achievers will be recognised at the annual LOG. LEO Awards ceremony. The event is set to take place on 19 April at a five star venue in Dubai, the financial capital of the United Arab Emirates. Organised by LOG. Middle East, the region’s premier publication for the logistics and supply chain industry, the event will award achievers across five main categories, selected by an independent panel of judges. As it was the case in previous editions, this year’s event will also feature a panel composed of experts who have devoted years to transportation, logistics and supply chain industries. The executives working with major companies in the region will share their inputs, insights and experiences with the select audience during the seminar. The agenda is currently being finalised and will be announced shortly on our website. Furthermore, the organising committee is in the process of inviting and selecting the panel members. The members’ full names and short biographies will be announced. Nomination guidelines The LOG. LEO Awards 2012 nomination form is available on our website and it can be submitted to the committee online or by fax. Being an industry event, the organising committee has also created certain guidelines for the nomination process. The revised rules aim to ensure a smooth and transparent process
through which the best in the industry will be recognised. The below rules will guide anyone intending to nominate an executive: • The logistics community can nominate any executive for any of the categories within the defined period as long as they believe that the nominee deserves to be awarded in one of the categories. • One individual can only nominate one executive. • The panel members themselves cannot be nominated. • The nomination form should be fully completed and submitted to LOG. LEO Awards Committee by post, fax, email or online. Incomplete forms cannot be considered and the contact details of the person submitting the nomination must be accurate for any further verification or clarification by either the committee or panel. • Intense competition is expected and the number of nominations increases annually. So, the person nominating an executive should be able to support his/her arguments in favor of the nominee. S/he should clearly explain why the nominee deserves to be awarded in that particular category and list down accomplishments relevant to the logistics industry. Specific information such as a track record, regular promotion, case studies will help the panel understand and evaluate the nominee better. • The nomination text should be brief, to the point, objective, and 200 to 500 words maximum. April 2012 I
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LOGISTICS
EXCELLENCE
OPTIMISATION
INVITATION TO NOMINATE LOG.Middle East, the region’s premier publication for the logistics and supply chain industry, has initiated the LOG.LEO Awards. individuals with the LOG.LEO Awards in the following categories:
Young Achiever of the Year Supply Chain Manager of the Year Innovator of the Year Sustainability Champion of the Year Lifetime Achievement Award LOG. Middle East once again invites you to LOG.LEO Awards 2012; a time to celebrate the best of the supply chain and logistics industry. We kindly ask you to submit your nominations for above-mentioned categories as we name this year’s winners.
AWARDS CEREMONY DETAILS: Date: 19 April 2012 Venue: Ibn Battuta Gate Hotel, Dubai Dress: Formal / National dress For more information, please contact: logleo@gutenberg-dubai.com Tel: +971 4 4334360 Looking forward to seeing you there! April 2012 I
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• Email attachments to support the nomination are acceptable. • The votes are verified by an independent monitoring panel composed of highly respected and experienced industry executives. Award categories The LOG. LEO Awards ceremony is once again celebrating industrial excellence. The winners of the first four categories listed below will be decided by online voting and the last award of Lifetime Achievement is going to be a jury selected award. • • • • •
Young Achiever of the Year Supply Chain Manager of the Year Innovator of the Year Sustainability Champion of the Year Lifetime Achievement Award
Supply Chain Manager of the Year: • Lasting and high value innovation in supply chain operations • Outstanding performance with regard to people, environment and corporate governance • Restructured supply chain processes for cost savings, gains in efficiency and improved customer service • Applied an innovative technology that result in cost savings and efficiency gains and improved customer service Innovator of the Year: • Expansive thinking in supply chain management • “Outside the box” thinking when solving challenges or driving value through the supply chain • Coordinated business functions across the industry and developed beneficial ways to strengthen supply chain relationships • Delivered success through leading and original supply chain methods
Criteria to nominate Young Achiever of the Year: • Nominees should be under 35 years of age as at 30 March 2012 • Known personal achievements in the industry • Contributions to the Transport and Logistics industry • Demonstration of leadership and organisational skills • Proven project implementation skills • Creativity and professionalism 34
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Sustainability Champion of the Year: • Contribution to environmental initiatives • Supported research and analysis of transport related environmental issues • Initiated or implemented solutions that help reduce any negative effects of the industry on our environment • Outperformance of national or global environmental guidelines
PREVIEW
• Implemented substantial measures to improve and develop their environmental records • Recognised as making sincere efforts to fully integrate environmental awareness into all areas of business strategy and operations • Habit of directing business partners towards better environmental standards Lifetime Achievement Award: • Actively involved in the supply chain and logistics industry for at least 20 years • Lifetime dedication and commitment to the growth of the logistics and supply chain industry • Significant contribution for excellence in logistics and achievements in improving the overall logistics management processes Full day event This year’s ceremony is scheduled to take place at a high class venue in Dubai, UAE. The five star Ibn Battuta Gate Hotel, close to the ‘New Dubai’, will host the glitzy full day event. There will be insightful seminars in the morning by leading international companies with a networking break which will allow the guests to interact and exchange business cards. The coffee break will be followed by the second batch of
seminars where the experts will again share their expertise and experiences with the delegates. The LOG. LEO Awards ceremony is scheduled to start at 13:00 and will take around an hour during which the awards will meet their respective owners. The sumptuous buffet lunch is to be followed by the afternoon session of seminars. The event will come to a close at approximately by 5pm. Being the last day of the week, delegates will have the option to immediately start their weekend. There is also a list of prizes to be won at the event. The hi-tech gadgets will find their owners after a raffle and everyone is encouraged to stay until the end of the ceremony to be able to claim his/her prize. More on the venue The operator of the Ibn Battuta Gate Hotel is Mövenpick Hotels & Resorts. The international upscale hotel management company with over 14,000 employees is represented in 25 countries with 71 hotels and resorts currently in operation. A further 30 properties are planned or already under construction in Ankara, (Turkey), Dubai (four projects); Abu Dhabi (three projects), Shanghai (China), and Dharamshala (India). Focusing on expansion in its core markets of Europe, Africa, the Middle East and Asia, Mövenpick Hotels & Resorts specialises in business and conference hotels, as well as holiday resorts, all reflecting a sense of place and respect for April 2012 I
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also played a role in this selection.
their local communities. Of Swiss heritage and headquartered in Zurich, Mövenpick Hotels & Resorts delivers premium service, culinary enjoyment and sustainable environments - all with a personal touch. Due to the high quality and comprehensive services on offer by a professional staff, Ibn Battuta Gate Hotel was chosen as the venue once again. The hotel’s proximity to Jebel Ali Free Zone as well as other free zones like Dubai Media City and Dubai Internet City which host many companies into transportation and logistics has
Nominations now closing Everyone in the industry is invited to submit online nominations for the award categories. Your nominations will ultimately decide the winners at this year’s ceremony. Please do not hesitate to contact us for any further inquiries: E: logleo@gutenberg-dubai.ae T: +971 4 4334360
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Issue 46 | APRIL 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
OIL & GAS
Logistics As a vital sector for the GCC economies, safe & secure logistics of oil plays a major role | Page 06
PREVIEW | 30
TECHNOLOGY | 38
BusinEss siMuLAtiOn
INNOVATION | 22
LOG. LEO AwArds
CHAMP CArGO systEMs
Enhancing profits with technology
Ceremony takes place this month
Reduce costs, maximise yields
FAX TO: +971 4 451 7945
TECHNOLOGY
Integrated services for cargo carriers and distribution partners A partnership between SITA and Cargolux Airlines International, CHAMP Cargosystems’ applications portfolio spans core cargo systems, enterprise systems and community and distribution services. LOG. Middle East finds out more in an exclusive interview. 38
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TECHNOLOGY
A global IT provider dedicated to the needs of the air cargo industry, CHAMP Cargosystems provides integrated services for cargo carriers and their distribution partners worldwide. With its wide range of applications portfolio, Champ Cargosystems’ solutions help its partners drive out cost, maximize yield and achieve industry compliance as cost effectively as possible. In addition, Cargospot is CHAMP’s comprehensive core cargo systems suite, providing end to end control over capacity, sales, operations and accounting processes. The Enterprise Services suite spans front and back office ERP integration, sophisticated business intelligence tools and process audit and change consulting. Combined, these provide a seamless view across all aspects of business performance. Last November CHAMP acquired TRAXON Europe, the specialist in electronic air cargo communications and provider of global Cargo Community System (CCS) Services. With this strategic move, two companies are expected to offer integrated solutions that will accelerate initiatives such as e-freight, Cargo 2000 and global customs compliance. Headquartered in Luxembourg, the CHAMP group provides services to over 200 airlines and GSAs worldwide, more than 3,000 forwarders linking over 9,000 offices and is an IATA Strategic Partner, Cargo 2000 Associate, Business Objects Gold Partner, AACO and AFRAA partner. Champ focuses solely on air cargo providing IT systems and solutions worldwide. Taking the opportunity, LOG. Middle East talked to James Fernandez, Vice President, Sales and Marketing for CHAMP Cargosystems, to find out more about the company’s solutions for the cargo industry. Below is our interview in a Q&A format. In a challenging and competitive business environment, what value added and integrated services does CHAMP Cargosystems, SITA’s dedicated air cargo company, offer? CHAMP Cargosystems is dedicated to the needs of the air cargo industry. As you may be aware, CHAMP acquired TRAXON Europe last year. The combination of CHAMP’s software solutions and
and an easier way to do business. Our significant client base forms the basis for cost-effective, proactive enhancements delivered within a robust release process. We now partner with over 20 airlines and a number of ground handlers in the region who take a wide range of our solutions and we are still growing. With the acquisition of TRAXON Europe, CHAMP has grown its network to include over 9,000 offices of forwarders and third party providers of logistics services around the world. Paperless handling of airfreight has been
“As a trusted, single source partner we offer our customers end to end IT solutions and an easier way to do business. Our significant client base forms the basis for cost-effective, proactive enhancements delivered within a robust release process.” - James Fernandez, Vice President, Sales and Marketing for CHAMP Cargosystems TRAXON’s wide network provides a strong, integrated portfolio of solutions that will accelerate initiatives such as eFreight. Furthermore, we have a local client support team dedicated to our customers in the Middle East. We create partnerships here in the region to help facilitate eCargo enabling community programmes supporting the establishment of new customs and security regulations that benefit all members of the community. Our solutions address the needs of customers of all sizes and we continue to innovate. I also like to mention that CHAMP is an AACO partner. We participate at AACO events which give us the opportunity to engage with local delegates. For a potential client, would you list some of the advantages of choosing Champ over other competitors? CHAMP has innovative solutions meeting the requirements of airlines, handlers, forwarders, truckers and General Sales Agents. We are a complete eCargo enabler and offer one of the most comprehensive suites of software and distribution solutions in the air cargo market and a wide range of connectivity options. As a trusted, single source partner we offer our customers end to end IT solutions
discussed in the industry for many years but progress is said to be slow. In your opinion, what is the reason behind this slow adoption? Part of the challenge is to realise the expected operational and financial benefits of delivering the right solutions essential to deliver eCargo. Establishing a truly electronic landscape for air cargo will open new possibilities, exceeding the often quoted benefits for paper-free transport. The eCargo components share a common denominator - the effective exchange of electronic information. If our industry is to remove paper–based transactions, the information must be delivered on time, to the right people, in the right way and with high quality that can be confidently accepted and re-used by all parties engaged in air cargo. Clearly, eCargo and in particular eFreight simply will not work without the accurate and reliable exchange of information. As paper documents are eliminated from cargo processes, the reliance on electronic data make it so much more valuable than ever before. Added to which, as the industry focuses on the secure and safe passage of the goods, the increasingly valuable data exchanged between trading partners must be equally April 2012 I
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TECHNOLOGY
assured as new methods and standards of information exchange and communication are adopted. Probably one of the biggest challenges is how the business will manage without paper documents – this involves some fundamental business process changes, adopting new ways of working and the realisation of the value of the electronic information shared between air cargo partners. Ultimately, it requires willingness for change. The willingness to change is increasingly evident and momentum is growing fuelled by innovation as seen in the evolving IATA CargoXML standard, not only by air cargo traders but from customs and governments. CargoXML presents a new era for air cargo IT. Its impact, once fully realised, could be profound; especially as so many air cargo IT solutions have been modelled according to messaging standards, in particular IATA CargoIMP. Solutions providers such as CHAMP must continue to work collaboratively with the industry to bring eCargo to life. The combination of paper-free transport and new opportunities offered by CargoXML will not only transform the way air cargo services are delivered by carriers and handlers but can effectively bind partners into an eCommunity, conforming to new industry standards and complying with the relentless challenges demanded for safety and security. 40
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Part of the challenge is to realise the expected operational and financial benefits of delivering the right solutions essential to deliver eCargo. Establishing a truly electronic landscape for air cargo will open new possibilities, exceeding the often quoted benefits for paper-free transport. Paper-free transport must deliver benefits, some of which include: • Speed, transfer , visibility, accessibility and security of consignment information as paper is replaced by electronic documents • Use electronic data to eliminate paper air waybills (numbering in the hundreds of millions per year) • Increase data quality, timeliness and consistency especially through IATA’s Message Improvement Programme • More effective trade facilitation via automated customs reporting (will require some legislative changes) • Enhanced border protection controls for data and physical screening with the availability of consignment information in advance of transportation • Enhanced utilization of office and building space as the need for paper document storage reduces over time. Please explain little more about “Quality Optimization as the key to eCargo success”.
Enhancing data and process quality to ensure seamless transmission of accurate shipment information is key. If no paper documents are available accurate data (data quality) is vital for eCargo, at the same time processes need to be adapted and optimised to achieve good results e.g. avoiding of double sending of electronic AWBs. CHAMP offers a wide range of standard products and customized solutions to enable every type of company, from small regional players to large multinationals, to make the change to paperless airfreight handling. CHAMP’s eCargo portfolio helps accelerate the removal of paper documents and enhances the quality, visibility and availability of electronic information for the cost-effective delivery of global cargo services. An example of this is our real-time, web-based Cargo 2000 Data Management Platform, TRAXON CDMP. The application measures key performance indicators
TECHNOLOGY
(KPIs) set by the IATA Cargo 2000 programme giving the user an easy to handle tool to detect irregularities, initiate process improvements, facilitate further standardisation of working procedures and measure the results benchmarked according to Cargo 2000’s quality standards. How do you compare the region with Europe in terms of new technology, customer service, and openness to new ideas especially in air transport? We have seen a continuing trend towards community orientated services which enable the adoption of electronic trading encapsulated within paper-free transport (eFreight) and eCustoms. The overriding challenge is business process change – namely – compliance to new regulations and standards, working without paper, and usage of advance cargo management systems. All participants in any community need to show a willingness and commitment to change. These challenges are not specific to this region but apply equally in other geographies. There are some strong and innovative players in the region and although there is still a long way to go it is encouraging to see how the Middle East is showing a very positive attitude to change and the adoption of new technologies. Please update us on recent changes with regards to global cargo compliance
and other measures introduced by governments/customs authorities on import and export freight. Conformance with safety, security and border protection demands continue to challenge the air cargo business in order to secure global supply chains. While in the recent past the focus has been on Advance Electronic Information (AEI) for border protection using pre-arrival declarations, security of the frontier is now moving to pre-departure under Air Cargo Advance Screening (ACAS) programmes such as being deployed by the US and in the pipeline for the European Union (EU). Whether the applicable procedure is AEI, ACAS or formal goods declaration for customs release and fiscal processing, the underlying and vitally important ingredient is reliable, accurate and timely information provided electronically to customs and security agencies. CHAMP helps ensure traders can effectively communicate with customs and security agencies via services such as the Global Customs Gateway (GCG), and thereby enjoy the benefits of more visible, faster and proactive interaction with government agencies. While offering clear advantages for the trader, from a Customs perspective, one of the biggest benefits of the CHAMP GCG service is that it acts as a single, certified interface to various customs organisations, saving significant time and
money and the overhead of managing multiple trade interfaces. The CHAMP community of customers is able to deal directly with the various custom officials in the local language, helping to overcome barriers of time, geography and culture. According to the latest statistics by IATA, international passenger figures are rising but cargo stats are still sluggish. How long do you think this trend will continue and what impact does it have on your future plans? Cargo on a global basis will remain sluggish as there is continued caution with regard to global economic recovery. This sluggish recovery in volumes is further exacerbated in terms of yields as the supply side of the air cargo market continues to see rapid expansion in terms of capacity and route networks. Cargo markets, much more than passenger, will chase excess capacity and reduced yields in lieu of extended flight routings. Shippers and Forwarders, too, are increasingly sophisticated in identifying opportunities for lower rates. CHAMP Cargosystems continues to invest and grow in new tools, propositions and services to better support our customers and market manage these challenging times. Focusing our services on delivering economies of scale through our community and integrated services is the key. April 2012 I
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PRODUCT UPDATE
Reducing overall supply chain costs with CHEP CHEP issues, collects and conditions more than 300-million pallets and containers annually. The CHEP value proposition is simple: the company provides a pallet and container pooling service that reduces overall supply chain costs and improves efficiency in customers’ supply chains, while contributing to environmental sustainability. Pooling is the shared use of CHEP pallets and containers by multiple customer or users. The unique pooling solution leverages a combination of sophisticated control systems, a well-managed global service centre infrastructure, and advanced transport and logistics capabilities to synchronize the flow of pallets and containers to meet specific supply chain demands. The environmental benefits of
Securing precious items with ievo
CHEP pallet pooling and the associated life-cycle increasingly impact savings in the areas of solid waste, energy and greenhouse gas emissions. CHEP has been established in Dubai since 2003 and completed the process of setting up a CHEP operation in The Kingdom of Saudi Arabia in October 2006 with plans to have a footprint throughout the GCC.
World’s thinnest digital radio in its class by Motorola Motorola Solutions, Inc. unveiled the SL Series portable and the DM4000 mobile radio series as the latest additions to MOTOTRBO, which delivers exceptional voice quality, extended battery life, increased capacity and the developer program for increased productivity and enhanced worker safety. The SL Series is the world’s thinnest, lightest Digital Mobile Radio (DMR) portable, designed to meet the communication needs of business users and executives in industries such as hospitality, services, security and airlines. The SL Series has a rugged, highresolution colour display with a built-in photo sensor that automatically detects ambient lighting and adjusts the display brightness. The radio has Intelligent 42
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Audio, which automatically adjusts the radio’s volume to fit background noise so users will not miss calls in a highnoise environment or disturb others in quiet areas. Integrated Bluetooth® audio allows users to connect Bluetooth audio accessories without an external adaptor.
Benefits such as innovative technology, intuitively monitoring access rights and efficiently recording time & attendance together compel many sectors to invest in a biometric fingerprint reader to secure their premises. The newest ievo product, Micro, has been used within the transportation and logistics market, securing Euston Station in London and various loading bays/warehouses around the UK. The innovative technology behind the Micro reader allows fingerprints to be successfully scanned even with levels of creams and powders present on the skin as well as with some types of latex gloves worn by the user. Micro also has the ability to integrate seamlessly into many leading access control manufacturer’s components allowing site managers to control access levels among staff if it were to be installed in a warehouse for example. So, at times of deliveries or ‘locking up’ at night, site administrators will be able to account for each person. If goods were ever damaged or stolen, the perpetrator could be identified using the fingerprinting logs. The same logic can be applied to time & attendance. Micro can be integrated into many leading time & attendance software packages. This is incredibly useful for HR and Payroll managers. Especially in a warehouse where sub-contracted workers may be registered on the Micro system, they will get paid correctly, plus monitor which skills they possess for health & safety purposes, which at times of inspection could enhance efficiency.
LOG CAFE
Fast paced market and diverse opportunities Warren Angus, CEVA Logistics Sales & Marketing Director - Middle East, North Africa and Central Asia Recently, Jebel Ali Free Zone in Dubai has been a popular spot for us to meet the executives of top logistics companies. No wonder the 48 sq km area hosts over 6,400 companies. CEVA Logistics may just be one of them but has already carved a niche in the region with its outstanding supply chain solutions. This month LOG. Café met with Warren Angus talking about a variety of topics. Mr. Angus studied hospitality management in New Zealand and graduated in 1999. After graduation, he started his own restaurant business but soon afterwards decided to move into logistics with his first job in business development in Express. “I then moved into Supply Chain within a Freight Forwarding and Contract Logistics company. In 2003 I started working for Eagle Global Logistics. I worked very hard and delivered year on year on the back of that having a number of promotions. In 2007 EGL and CEVA Logistics merged, and the CEVA brand extended across the Company,”
explained the Sales & Marketing Director. CEVA became one of the leading nonasset based supply chain management companies, providing world class supply chain solutions in Contract Logistics and Freight Management, alone or in combination. In 2009, Mr Angus decided to leave CEVA and moved to the Middle East with another major Supply Chain company based in Dubai. “After a few months, though, in 2010 I moved back to CEVA where I already knew people, processes and the network. At the same time my responsibilities grew from Dubai to a regional level and now covering North Africa, Central Asia and the Middle East.” His move to the region was ‘overwhelming’ to say the least. He thinks the market is very fast paced and very diverse in terms of the different sectors. Living in Dubai is also very different to anywhere else in the world. Mr Angus and his wife love Dubai and can’t see themselves moving in the foreseeable future. Though he cannot typically spend a lot of time in town due to the business travels in the
region, he always ensures he gets back to enjoy the weekends with his wife and friends. Back to business and his company’s future plans for expansion, Mr Angus highlighted that CEVA Logistics is present in 170 Countries with approx. 51.000 employees. “In this context Middle East, North Africa and Central Asia is a strategic area for growth and we have plans to support it. We want to build on our solid Contract Logistics platform in the UAE into Saudi Arabia, Qatar and Egypt immediately. We also plan to grow our Project Logistics division which is seeing record results today alongside building better end to end solutions for our customers.” The Sales & Marketing Director is also excited about 2012: “We worked very hard in 2011 to build a solid business for 2012 from a growth standpoint. We have recruited a solid management team leading our separate business units around the region and I see the results year to date are very positive. Our market and sector penetration has been solid and we see a lot more progress on this in 2012.” April 2012 I
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LOG. CLASSIFIEDS
Cargo Insurance Sales, China To be responsible for the general, operational, financial and administrative management of existing cargo insurance sales operations and the support of the formation of a Commercial Insurance Brokers operations in China. The candidate will be responsible to sell marine insurance to clients only. Responsibilities: ■ Development of the cargo insurance client account ■ Support in the formation of a local Insurance broker entity ■ Overall office management ■ Implementation of a training scheme on cargo insurance ■ Compliance with all laws and insurance regulations Requirements: ■ 5-7 Years of experience in insurance business ■ Holds all required licenses and qualifications ■ Knowledge of the freight forwarding business ■ Experience in marine cargo insurance claims handling ■ Communication skills in Chinese / English ■ 50pc travel nationally
Senior Manager, Australia This role is about growing, developing and leveraging best practice Retail Supply Chain opportunities to enhance potential customer business performance and grow the range of services offered to them. Based in Sydney, the role’s primary purpose is the strategic and tactical development of new business opportunities in the Consumer Retail sector and the execution / management of a performance based sales strategy that includes coordinating Retail sector sales activities throughout Australia. Requirements: ■ Proven Business Development experience ■ Demonstrate a solid understanding of Retail SCM & Transportation Management ■ Excellent communication ■ Highly developed negotiation skills
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www.log.ae
Issue 44 | FeBRuARY 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
www.log.ae
Issue 45 | MARCH 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
www.log.ae
Issue 46 | APRIL 2012
YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
OIL & GAS
Logistics As a vital sector for the GCC economies, safe & secure logistics of oil plays a major role | Page 06
WAREHOUSE MANAGEMENT SYSTEMS
Logistics of
perishables
WMS promises efficiency, agility and performance in supply chains | Page 06
Safe and risk free delivery of perishables from farm to consumer | Page 06
OVERVIEW | 28
PREVIEW | 32
ANALYSIS | 40
TRENDS | 24
PREVIEW | 32
REVIEW | 36
aLGIErs MEtrO
LOG. LEO 2012
IndustrIaL rEnts
First metro in the Maghreb
Industry’s leading award ceremony
Ups & downs of real estate
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
INNOVATION | 22
Ceremony takes place this month
Reduce costs, maximise yields
Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com
HR Director, Thailand The company provides a range of diverse supply chain solutions including contract warehousing and transport. Based in Bangkok, Thailand the role of Human Resource Director/Manager is a commercially driven role that is focused in delivering the highest quality of Human Resources service back to the business. Leading country operations for Human Resources, the successful candidate should effectively strategise and implement HR programs for Thailand across senior management, commercial, administration and blue-collar staff including those staff deployed on customer sites. The role will guide, mentor and manage all HR functions including overseeing compensation and benefits, recruitment, employee and industrial relations, training and development and generalist HR activities. The role is hands on and requires someone who can do operation at a senior level whilst being prepared to get hands on.
BD Manager, Egypt The company is a global provider of freight forwarding solutions and seeking a motivated and experienced Business Development Manager to join their team based in Alexandria. The role is focused on securing new clients and building relationships with existing customers to find potential opportunities for values added services. Responsibilities: ■ Analyse core business of the customer ■ Identify and target key growth sectors in the region ■ Prepare management reports ■ Interact regularly with the management team ■ Ensure good documentation procedures are followed Requirements: ■ 3+ years working in freight forwarding sales ■ Experience in FMCG / Pharma is advantageous ■ Possess excellent communication skills both written and oral ■ Strong computer skills ■ Excellent negotiating, planning and organisational skills
Supply Chain Solutions Consultant The company offers a diverse portfolio of services ranging from air freight, ocean freight, international express, warehousing, domestic transport, document management and international mail. They provide a portfolio of services including warehousing, distribution and supply chain solutions. Responsibilities: ■ Support Business Development team ■ Identify client situations for developing proposals ■ Develop clients’ relations and present consulting capabilities ■ Manage consulting projects ■ Identify requirements for and develop/source appropriate tools ■ Manage Consulting Projects ■ Create high impact deliverables & consistent solutions Requirements: ■ 2-3 years Supply Chain experience ■ 2-3 years of consulting/ client facing experience ■ Experience in project management ■ Solutions Design experience ■ In-depth knowledge of supply chain topics ■ Advanced computer proficiency ■ Understanding of modeling, simulation and design tools
LOG. CLASSIFIEDS Advertise your job in LOG. Classifieds: Call: +971 (4) 4334 360 E-mail: info@gutenberg-dubai.com
Commercial Management Accountant, Thailand Based in Bangkok, this role is essentially part of the team and will provide commercial management accounting support and leadership. One of your leading projects will be an account with over approx. US$150m revenue and growing. In excess of 1,500 employees will be working on this project. You will take on initiatives that drive performance gains, savings and efficiencies. You will also be responsible for financially and commercially evaluating, preparing and presenting both for internal review and external presentation, representing in terms of financial approval and external negotiation through the cycle. This role will be ideally suited to a qualified Accountant, who possesses strong commercial skills, financial and management accounting, combined with outstanding communication skills and previous experience. Responsibilities: ■ Account reconciliations, reporting ■ Business and operational analytics ■ Provide financial support and modelling to the business ■ Drive operational teams on performance and efficiency projects Requirements: ■ SAP an advantage ■ Thailand experience is preferred
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
BD Manager, India The company offers a unique and diverse portfolio of services to its clients ranging from air freight, ocean freight, international express, warehousing, domestic transport, document management and international mail. They provide a comprehensive portfolio of services to all clients including warehousing, distribution and supply chain solutions. As a business development manager, the candidate will be responsible for leading and delivering the growth strategy, IBP and development of new business opportunities for Warehousing and Transport in India and providing focus and drive to deliver growth against the Strategy / IBP, whilst seeking to ensure new market/ service opportunities are captured. Responsibilities: ■ Target, identify and assess business fit of customers ■ Present solutions to customers ■ Successfully develop a pipeline of deals ■ Lead the preparation of tender and sales presentations ■ Support Warehouse / Transport customer activity in India ■ Support cross regional and global development ■ Be a team player and have good interpersonal skills Requirements: ■ 8 years in the Transport & Logistics Industry ■ Bachelors or Master’s Degree level in Marketing ■ Comprehensive SCM understanding ■ Strong strategic and visionary skills ■ Excellent communication skills – internally and externally. ■ Comfortable in a matrix management environment. ■ Culturally sensitive
Application Engineer, UAE This is an opportunity to join a leading group that provides equipment, systems and automation for Warehouses and Distribution Centres within the Middle East & Africa. Reporting to Regional Manager – Automation, the role’s principal responsibility is the design, conception and calculation of conveyor/logistics systems. You will be responsible for the preparation of technical proposals and customer presentations of the company’s range of products (conveyors, warehousing equipment, rack systems, etc). You will serve as back office support for sales team. Requirements: ■ Technical background ■ Preferably min 2 years in the automation industry ■ Strong mathematical, technical background and calculation skills ■ Expert skills in MS Office ■ Fluent English speaker ■ Driving license
These 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
April 2012 I
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EVENTS
APRIL Kingdom Mass Transit Summit Riyadh, Saudi Arabia; 1-2 April www.naseba.com
World Ports & Trade Summit Abu Dhabi, UAE; 2-4 April www.worldportsandtrade.com
The LOG. Middle East Magazine is a publication of Gutenberg Publishing FZ-LLC. Licensed by TECOM, Dubai, UAE. Trade Licence No: 20704
Cold Chain Saudi Summit Riyadh, Saudi Arabia; 13-16 May www.coldchainsaudi.com
www.log.ae www.gutenberg-dubai.com
Logistics and Warehousing Exhibition Rome, Italy; 14-16 May www.ifwla-rome2012.com
Kuwait Metro & Rail
Global Logistics and SCM Summit
Kuwait; 17-18 April http://promediakw.com/2012/rail
Dubai, UAE; 16 May www.sclgme.org
Extended Supply Chain Conference
Future Roads
P.O.Box 502547, Dubai, UAE
Riyadh, Saudi Arabia; 21-22 May www.iirme.com/futureroadssaudi
Tel: +9714.433 4360
London, UK; 17-18 April www.esc-lon.co.uk
UK Rail Development & Investment London, UK; 18-19 April www.europeanrailwayreview.com
Rail Technology Conferences Amstelveen, the Netherlands; 24-25 April www.railtechnologyconferences.com
Logipharma Geneva, Switzerland; 24-26 April www.wbresearch.com
Southern Asia Ports Logistics & Shipping Colombo, Sri Lanka; 26-27 April www.transportevents.com
India Warehousing Show Delhi, India; 26-28 April www.indiawarehousingshow.com
MAY Multimodal Birmingham, UK; 1 - 3 May www.multimodal.org.uk
Middle East Rail Opportunities Doha, Qatar; 9-10 May www.fleminggulf.com
Logistics Transport Exhibition Helsinki, Finland; 9 - 12 May http://mark.logexpo.fi
Supply Chain and Logistics Forum Saudi Arabia Riyadh, Saudi Arabia; 13 - 16 May www.supplychainsaudiarabia.com
I April 2012
Al Thuraya Tower II, Office 1402 Dubai Media City
Fax: +9714.451 7945
RORO 2012 Gothenburg, Sweden; 22-24 May www.roroex.com
Managing Director: Reinhard Wind reinhard@gutenberg-dubai.com
Logistics & Transport Conference
EDITORIAL
Gothenburg, Sweden; 22-25 May www.logistik.to
Editorial Director: Rustu Soydan
Asean Ports & Shipping Jakarta, Indonesia; 30-31 May www.transportevents.com
JUNE
rustu@gutenberg-dubai.com Sub Editor: Michelle Kasper michelle@gutenberg-dubai.com SALES & MARKETING Sales Manager: Andy MacGregor andy@gutenberg-dubai.com
International Logistics & Material Handling Exhibition
LAYOUT & DESIGN
Barcelona, Spain; 5 - 7 June www.silbcn.com
info@gutenberg-dubai.com
Timonera Grafik
Air Cargo China
ADMINISTRATION
Shanghai; 5-7 June www.aircargochina.com
Office Administrator: Sherlyn Millet sherlyn@gutenberg-dubai.com
TOC Container Supply Chain Europe
PRODUCTION
Antwerp, Belgium; 12-14 June www.tocevents-europe.com
roy@gutenberg-dubai.com
Production Manager: Roy Varghese
transfairlog Hamburg, Germany; 12 - 14 June 2012 www.transfairlog.com
TransCaspian Baku, Azerbaijan; 13-15 June www.transcaspian.az/2012
Saudi Supply Chain Conference & EXPO 16-18 June www.iscea.net/scc
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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