MAR/APR 2013
ISSUE
54 MIDDLE EAST YOUR LOGISTICS AND SUPPLY CHAIN MAGAZINE
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P.
GOAL THE green goal 5S Technique Application
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P.
Interview Modern facilities Andrew Fullerton‘s opinion
www.logmiddleeast.com
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P.
Success DHL scales up New facilities at Meydan Dubai
ALSO IN THIS ISSUE: P.40 Event DP WORLD GRAND GALA 2013 The Annual Grand Gala celebrates the bonds with the sea and the sustained partnership with the supply chain industry
P.22 Expo 2020 ‘Connecting Minds, Creating the Future’ The UAE is bidding to host the World Expo 2020 in Dubai under the theme ‘Connecting Minds, Creating the Future’
warehouses have a “colour”
go green & Save money! Who says your warehouse can not be green?
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publisher’s note
“The journalist´s understanding & view” “The expert´s opinion on industry topics” People these days say that Dubai, the United Arab Emirates and the entire Gulf region are “back on track” when it comes to business and business opportunities in the Logistics and Supply Chain Industries. But is this true? Well, as people have put everything on the bad side a few years back, now they certainly might get a little bit over enthusiastic. The regional economies certainly have improved a lot and big project are getting announced again. Money is available and confidence in the market place has been re-established. With that as a background the logistics and supply chain industries have caught up and overall the situation has changed very much to the positive side.
“The bid for the EXPO 2020 already generates an enormous hype and whether if we win the bid or not, it will produce a lot of awareness about Dubai and the United Arab Emirates in the whole world. I love it!” Silke Wind Publisher & Editor in Chief
So it is true that we are “back on track” and that the Logistics and Supply Chain Industries have taken their advantages? Yes, of course. Cash still is not spread around easily, but the banks are lending money again and the spirit is high. Also when we look at Dubai´s bid for the EXPO 2020 – the campaign generates trust and supports a positive and vibrant momentum in the region and all around the world. 300,000 new jobs shall be created and thinking of the tourists that will flock into the country during the Expo, once the expo is on. That certainly will affect the Supply Chain Industries heavily and additional business opportunities will open up. We from Gutenberg Publishing support the Dubai Expo 2020 and we believe that Dubai has more than a fair chance to be announced as the winner of the bid in November 2013. Winning the bid for the EXPO 2020 certainly would contribute to the supply chain´s upswing and together with the FIFA World Championship 2022 in Qatar, these two mega projects finally secure millions of jobs in the region and very many of these jobs will be created in supply chain related industries. Then “thumbs up” that Dubai wins the EXPO 2020 bid!
“There is only good news when it comes to the EXPO 2020. At least until November 2013, when the winner of the bid will be announced, Dubai will have generated enough headlines around the globe. This certainly is another communication coup of Dubai. Congratulations!” Reinhard Wind Entrepreneur & Supply Chain Professional
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Your Logistics & Supply Chain
EXPERTS
www.logmiddleeast.com
reach out to your customers CONTENT
The content-driven publication offers high quality information from industry experts combined with lots of news and reports.
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COVER STORY
In this Issue
TABLE OF CONTENT
REPORT
go green with your warehouse Warehouse engineers and experts can examine how you can transform your traditional warehouse environment and implement sustainable strategies that benefit your business, your customers, and your planet. Incorporating sustainability initiatives into warehouse and distribution centre design is proving to be to the environment.
COVER STORY
COMPANY PROFILE
THE 5S TECHNIQUE
UNGER STEEL
5S is a highly systematic method (or set of techniques) of organising and optimising any warehouse, office, institution (i.e. university, hospital, library etc) or a factory’s housekeeping.
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The “Steel City” of the Hamriyah Free Zone in Sharjah has been home to the second production plant of the internationally active Unger Group since 2007.
INTERVIEW
MISSION
INTERVIEW WITH ANDRE FULLERTON
EXPO 2020
LOG Middle East Magazine met Andre Fullerton, the Design & Project Management Consultant of DCM International to ask him about his view of sustainable warehousing.
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The UAE is bidding to host the World Expo 2020 in Dubai under the theme ‘Connecting Minds, Creating the Future’. Everybody is excited about the Dubai Bid for the Expo 2020.
NEW
NEW LEADER IN UAE
40
The top officials of the GEFCO Group have revealed their plans for investing considerable amounts and resources into their Middle East operations during a press conference in the Palace Downtown Hotel Dubai. MARCH/APRIL 2013
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cover story
S P E C I A L
F O C U S
COVER STORY
GO GREEN WITH YOUR WAREHOUSE Who says that your warehouse can not be “green”?
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Cover story
Warehouse engineers and experts can examine how you can transform your traditional warehouse environment and implement sustainable strategies that benefit your business, your customers, and your planet. Incorporating sustainability initiatives into warehouse and distribution centre design is proving to be a win-win proposition. It mitigates harmful effects to the environment, encourages worker safety and comfort, while winning the respect of your customers and community. But from a more critical business perspective, it also lowers operating costs, ultimately improving a company’s financial performance. While energy savings are key, there’s also that additional lure of incentives, particularly in new construction. The “green” advantage doesn’t stop. Sustainable, high performing facilities do not have to cost more. A holistic approach to design that harnesses natural resources can elevate the performance of a building and provide a more productive work environment. There are also many options through partnerships with renewable energy companies to implement renewable energy at no additional cost to each project. With all it has going for it, it’s no surprise why more companies around the globe are pursuing Leadership in Energy and Environmental Design. According to international experts, even older trends are being given a fresh look, incorporating newer technologies and innovative techniques. Let’s examine how you can transform your traditional warehouse environment to help build sustainable strategies that benefit your business, your customers, and your planet. And while we can’t possibly mention them all, what follows are seven of the more popular trends gaining momentum in the sustainable design of warehouses.
Location, location, location The primary energy use in a DC is actually not the building itself but rather the transportation that services that building. With this in mind, we should put distribution centres where it makes sense primarily in terms of the logistics model. Your greatest impact on sustainability! Companies are turning to network studies to investigate moving their distribution facilities closer to inbound ports or closer to customers to save local transportation energy consumption - and subsequently MARCH/APRIL 2013
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COVER STORY
reduce environmental emissions. The latest modeling tools literally calculate a company’s supply chain carbon footprint for its plants, its warehouses, and its different modes of transportation. To make an even bigger dent on costs and your carbon footprint, experts suggest optimising truck capacity and developing more efficient transportation routes.
Better lighting Sustainability in lighting has always been one of the most popular initiatives; that’s because the percentage of energy attributed to lighting a facility is quite high. It represents typically about 30 percent of the energy use having in mind that one of the more popular lighting strategies is ‘daylighting‘. Several studies have shown an increase in employee productivity and attendance when working in an environment with natural light. Experts and architects suggest leveraging this further by complementing artificial lighting with occupancy sensors. Artificial lighting can be tuned off in parts of the warehouse that are not
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being used. Use energy-efficient fluorescent fixtures with these occupancy sensors. They can be turned on and off providing lighting on demand. By contrast, a high pressure sodium fixture needs about 10 minutes to warm up to full illumination and must cool about 15 minutes before they will restrike, making it not suitable for intermittent operation.
Recycling Be it in the planning phase, construction phase or in day-to-day operations, the trends of “recycling, reusing, and repurposing” remain one of the most popular in sustainable design. Even before construction, green experts see opportunities for sustainability and significant costs savings in land use - or reuse. Instead of new facilities, they propose redeveloping vacant buildings that are currently in abundance as a result of the difficult economy in the Middle East and United Arab Emirates. Developing on land that has previously been developed and/ or contaminated could be a great
option. If building a new warehouse or distribution centre, reduce construction costs by using precast concrete and steel with high-recycled content. Once the property is operational, recycling is now fairly common practice for today’s facilities. Why not take it a step further? Use returnable plastic containers (RPCs) in internal captive pools designed specifically for a particular operation, or external shared pools with standardised designs that enable supply chain-wide efficiencies.
Going for Netzero A net-zero building is one that generates as much energy as it uses over a year, thus “net”-ting zero energy requirements to the local power grid. A net-zero building is an iterative process where the building function and energy footprint are evaluated to optimise performance. Once optimal building energy performance is determined, a renewable energy strategy is formulated like vast rooftops make them excellent locations for solar panels.
COVER STORY
DEFINE YOUR GOALS Smarter buildings Buildings are not only getting greener; they’re getting smarter. It’s now best practice for new construction to have some form of smart building or energy management systems that uses “submetering” to give building managers visibility into equipment energy use and performance. Submetering involves installing physical measuring devices onto machinery and equipment to monitor usage of electricity, gas, water, and other utilities. This data is then sent to web-based building management software for analysis and to identify opportunities for energy and cost savings. If something goes wrong with any piece of equipment anywhere in the building, these kinds of systems will immediately give you an alarm. With an intelligent building management system, you could quickly pinpoint the problem and deploy an engineer immediately to fix it.
HVLS (high-volume, low-speed) fans Even during triple-digit summers we face in the region, a one-millionsquare foot warehouse hardly taps into its air-conditioning system. That’s because most of companies installed an integrated fan control system that uses 26 high-volume, low-speed (HVLS) networked warehouse fans with 24-foot diameters to cool indoor temperatures. Designed to move massive columns of air at low speeds, HVLS fans can help regulate a facility’s temperature year-round from floor to ceiling. It permits facilities to increase or decrease thermostat temperature settings between 3 degrees and 5 degrees without realising any negative temperature changes. By networking the fans, they can be easily controlled and monitored from a centralised location. Savings can range from 12 percent to 50 percent in cooling and heating costs, while providing employees with a more comfortable work environment.
With so many initiatives to choose from, we suggest first defining your goals. “Why are you pursuing sustainability? Is it to reduce energy costs or is it to make a statement that’s consistent with your company goals?”
Never rule out an initiative because you have a preconceived notion that it might cost too much money. A lot of times the incremental cost is not as much as people think it’s going to be. In addition, if it makes your building more energy efficient, then there is very likely an incentive for it - especially in our region.
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5s application
G R E E N
C H A L L E N G E
Reach the Green Goal 5EPS
ST
The application of 5S technique in achieving a lean & sustainable warehouse environment 5S is a highly systematic method (or set of techniques) of organising and optimising any warehouse, office, institution (i.e. university, hospital, library etc) or a factory’s housekeeping. It is a proven method in carrying out proper maintenance and upkeep of machines, equipment and facilities. It is often promoted as being far more than simply housekeeping, with elements described such as: organising, cleaning, developing and sustaining a productive, neat & well maintained work environment. It originated, as most of all other elements of Lean Manufacturing concept (Kaizen, JIT/JIC, Cost reduction principle, 7 Wastes, Visual workplace etc) in Japan within Toyota and this technique utilises 5 keywords of activities, each one starting with the English letter S.
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These are: • Sort - Seiri • Stabilise or Set in Order - Seiton • Shine - Seiso • Standardise - Seiketsu • Sustain - Shitsuke
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SORT (SEIRI)
It means to sort out the necessary from the unnecessary items through everything in each work area. Sorting is the first step in making a work area tidy. It makes it easier to find the things you need & frees up additional space. As a result of the sorting process you will eliminate dispose or repair broken equipment or tools. Separate what is needed and what isn’t needed. ACTION 1 Decide what is needed and what is not. ACTION 2 Apply the process daily, weekly or monthly.
5s application
ACTION 3 Audit your process regularly and adjust it accordingly.
2
STABILISE OR SET IN ORDER (SEITON)
It means to organise, identify & arrange everything in each work area. All storage areas and even small enclosures within the storage should be properly identified and labelled. Outline areas on the floor to identify work areas, movement lanes, walk paths, storage areas, finished product areas. Arrange your stock in each area according to their regularity of movement. • Stock A category - Very fast moving • Stock B category - Fast moving • Stock C category - Slow moving • Stock D category - Very slow moving Place your Stock A & B categories very close to your dispatch or stock packing area to minimise unnecessary movements. ACTION 1 Identify & place in an orderly fashion all items needed in your work environment. ACTION 2 Allocate a fixed place for each item, equipment or individual tool. ACTION 3 Mark their specific locations for easy identification. ACTION 4 Return items to their designated locations after each use.
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SHINE (SEISO)
It means to regularly clean & maintain everything in each work area.Regular, usually daily - but it could also be weekly or monthly cleaning is needed or everything will
return to the way it was. Warehouse staff could implement a routine task of 5 minutes before and after work to go through a list of basic activities to cover stocks, working space and numerous tools and equipment. This could also act as an inspection exercise. While cleaning it is easy to inspect tools, equipment and supplies you work with (i.e. hand trucks, pallets, forklifts, racks, dock levellers etc) to record and report of any abnormalities or possible malfunctions. ACTION 1 Get rid of all dirt and unwanted items. ACTION 2 Correct or adjust stuff during cleaning process. ACTION 3 Identify the root of any problem area & take immediate & drastic action. ACTION 4 Organise a cleaning schedule.
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STANDARDISE (SEIKETSU)
It means to simplify and standardise everything in each work area. Develop a work structure that will support the new practices and convert them into long term habits. Avoid old work habits and discourage employees from going back to them. An easy way to make people aware of the new standards is to use labels, signs, posters and banners, showing various activities which are being taken place. It is also advisable to create some posters featuring pictures of the “Before” and “After” work environment, showing evident improvements and various actions taken to secure such improvements.
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5s application
by Petros N. Zenieris The Business Criterion
ACTION 1 Sustain the application of the above 3 Ss. ACTION 2 Ensure total awareness of respective staff responsibilities. ACTION 3 Keep all activities well organized, even at personal level (office, desk etc).
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SUSTAIN (SHITSUKE)
It means to frequently continue with training and maintaining the standards already achieved so far in each work area. Don’t expect that by cleaning, getting things organised and labelled or by asking people to clean every day will have everything continue to happen without any follow up. Continue on a regular basis to educate your people about maintaining standards, otherwise you will achieve rather limited success. It would also be advisable that management could organise some sort of 5S Competition applicable for each departmental areawarehouse or individual storage area. Such activity will encourage team leaders and their respective staff to excel in their efforts to achieve a well maintained working environment and possibly to look forward to an extra financial reward (bonus) or for a company’s internal recognition (i.e. best warehouse team or best 5S warehouse employee of the month etc).
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CONCLUSION It is well understood that the 5S Technique in the Lean Warehousing alone might not be enough to sort out all problems or difficulties associated with the warehouse environment. However, if 5S & Lean Warehousing collectively join forces with other traditional management skills and methods, or new innovative techniques and applications, then the entire warehouse operation could be transformed into a very well organised, neat and optimally functioned operation, which will deliver a positive contribution to the optimisation of any company’s performance.
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interview
I N T E R V I E W
Optimisation & Automation a modern facility Andrew Fullerton from DCM International in interview with LOG Middle East
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LOG Middle East Magazine met Andrew Fullerton, the Design & Project Management Consultant of DCM International to ask him about his view of sustainable warehousing. Already involved in the planning and construction of the Integrated National Logistics facility in Dubai World Central, Andrew Fullerton knows the Middle East market place very well with all its developments in regards of the most modern and sustainable warehouse design.
requirements and maximise the building energy efficiency. Thirdly, and the point in my opinion most overlooked within the region, is that the building should be well designed to maximise both storage capacity and operational efficiency within the smallest building possible. This will significantly reduce the client’s investment per pallet position, which is after all the key goal for any successful logistics facility.
What in your opinion makes a sustainable warehouse?
What is important when designing a sustainable warehouse?
A.F.: There are three main aspects, which affect the sustainability of a warehouse facility. Firstly, the facility should be located centrally, with excellent communication links to the main customer base, with good air and sea links. Secondly,the building should be designed using environmentally friendly materials, incorporating high levels of insulation to minimise air-conditioning
A.F.: In my opinion good design should always be sustainable. Within the region, the design of an operational facility whether it is a manufacturing plant, an operations base or logistics facility tends to follow the rule “Big is Best�. At DCM our focus is quite different. Our design team concentrate on maximising the storage capacity and ergonomic efficiencies within
interview
the smallest building footprint possible. By doing this effectively we can not only drastically save on the initial construction cost of the building, but also save on both the energy consumption of the building and reduce the number of staff required to operate the facility. Our selection of the most appropriate material used during construction will also make significant inroads in our goal of sustainable design.
How does DCM cater for that? A.F.: DCM has designed the first privately owned and fully automated warehouse within the UAE for Integrated National Logistics (INL), a joint venture between Dubai based NTDE and Integrated Logistics from Malaysia. Our key focus was to maximise the number of pallets stored within the smallest building possible,thereby minimising the total development cost per pallet position. To achieve this we created a building with clear spans larger than the wingspan of a 747 jumbo jet to accommodate 11-pallet high double deep racking with aisle widths of 1.8m serviced
by stacker cranes and conveyer retrieval systems. To build a conventional warehouse, with the same storage capacity, INL would have required constructing a building with more than twice the footprint on a significantly larger plot of land. Now, consider the savings in both construction and operational costs this has achieved.
How do you see the development potential for sustainable warehouses in the Middle East? A.F.: The region has improved significantly during the last sixteen years since I arrived in Dubai. However, there are still significant improvements that can be made. I believe that governments particularly in Dubai have made significant inroads by developing Dubai World Central and JAFZA. Both these locations provide excellent infrastructure and firstrate sea and air links. It is now down to the private sector to do their part and bring logistics up to international standards.
What do you suggest to
companies who are in the process of designing a new warehouse? A.F.: In the first instance you need to secure land in the optimal location for your operations considering your client base. You should then establish realistic growth predictions. This will allow your design consultant to design a building that is scalable and properly phased to permit future expansion that doesn’t impact on existing operations. You don’t want to stop operations for 6 months in order to increase your storage capacity. A popular misconception is that sustainable design comes at a cost and is a burden on development. This couldn’t be further from the truth. Good design should always be sustainable and will always make good business sense. By minimising wasted spaceand maximising the efficiencies of the operations, you will significantly reduce both your initial investment and building operating costs.
What does your ideal warehouse look like? MARCH/APRIL 2013
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interview
A.F.: My Ideal warehouse is a building that maximises the number of pallet positions stored within the minimum building footprint possible, with ample space for consolidation and repacking activities,constructed in the correct location with excellent road, air and sea connectivity.
Is there a difference between warehouses in the UAE and Europe? A.F.: The UAE is fast developing its logistics capability but still lags behind Europe in some areas. The infrastructure provided by governments is comparable and in some instances surpasses European standards. With the development of the new INL facility,Europe and the Middle East are now broadly similar in terms of available technology. The difference is in the quantity of these first class facilities. In Europe, every city and town with a population over 100,000 has one or more privately funded automated logistics facility located on their outskirts adjacent to a major road or rail network. The Middle East has only one privately funded automated facility to my knowledge, which is the project DCM has recently designed & project managed for INL at Dubai World Central.
What do you predict for the future design of new warehouses in the Middle East? A.F.: The quality and efficiency of the current stock of warehousing is far below the level you would expect considering the quality of available infrastructure. The govern-
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ments within the region and particularly Dubai are doing everything possible for the sector to grow by investing heavily and providing first class infrastructure. The older and inefficient warehouse stock will soon become redundant, as newer more efficient operations will drive down prices. With automated control of inventory,these new operations will also be able to guarantee product integrity. This will result in less efficient operations upgrading to compete, which in turn will increase demand for quality facilities. 16 years of experience in the Middle East certainly make a difference when it comes to design a warehouse or distribution centre. Dubai, the United Arab Emirates and the entire Gulf Region are fast catching up and it is just a matter of time until we see the most modern and automated warehouses as a standard here. Special thanks to Andrew Fullerton.
PROFILE
C O M P A N Y
P R O F I L E
Specialist & Generalist Customers can expect the highest levels of quality, tailor-made solutions and an excellent price-performance ratio from Unger Steel Middle East FZE The “Steel City” of the Hamriyah Free Zone in Sharjah has been home to the second production plant of the internationally active Unger Group since 2007. The Austrian family-run business is represented here over about 100,000 m² by its second major facility, Unger Steel Middle East FZE, supporting customers in the United Arab Emirates and beyond its borders. About 550 highly qualified employees network with the entire Unger Group and offer many years’ experience in the steel processing industry and holistic project management. At the same time, their European and cross-industry expertise is making a considerable contribution towards the success of customers.
Dipl. Eng. Josef Unger Unger Steel
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Together with the headquarters and production facility in Austria, Unger Steel Middle East represents a further logistical hub for their international presence. With an overall annual capacity of 70,000 tons, small-scale projects right up to ready-to-use solutions for complex building projects can be delivered
quickly and to the customer’s satisfaction. The range of machinery is one of the most leading edge in the world and enables steel parts to be formed in virtually any way. They are assembled on the construction site and attain high load capacities whilst having a low dead weight. Production and assembly are highly industrialised and optimised down to the last detail. This means speedy assembly, high levels of reliability and tailor-made solutions with the highest quality levels. Not to mention the compatibility of steel with other materials such as concrete, glass and even wood. Besides the headquarters in Austria, around 20 own offices in Central and Eastern Europe, as well as the Middle East, offer direct access to all of the services provided by the Unger Group.
International projects to customer specifications The product portfolio of the Unger Steel Group encompasses the entire construction industry. Reputable
profile
customers are placing their trust in the tailor-made solutions and customer-oriented full service offered by the Unger Group. Unger is currently demonstrating its many years’ experience and expertise as a project partner to ÖBB in the Central Vienna Railway Station project in Austria, in the largest Toyota car depot in Russia, and to the Dräxlmaier Group in Moldova. Worthy of particular note are the references of Unger Steel Middle East, such as the architecturally striking steel structures of Dubai airport, the cupola of the Emirates Mall, the roofing canopies of the Formula 1 race track in Abu Dhabi and the entrance portals for the Burj Khalifa in Dubai, the tallest building in the world. The Unger Steel Group has been synonymous from the very outset
with quality, customer-orientation, flexibility and on-schedule delivery.
Expertise in three business units The comprehensive network of the entire group, together with a number of partnerships, compliments the numerous strengths. “We are benefiting from many years’ experience in the construction industry and offer our customers tailor-made and attractive readyto-use solutions in steel construction, general contracting and real estate. This enables us to contribute towards the success of our customers”, states Josef Unger, CEO of the Unger Steel Group. The company is in family ownership and has a firstclass credit rating. The Unger Steel Group occupies top spot in steel construction in Europe.
UNGER Steel Group As an Austrian group of companies operating in the construction industry, the Unger Steel Group is one of Europe’s leading and internationally most successful industrial companies. In financial year 2011, the group generated a turnover of Euro 215 million with around 1,200 employees. www.ungersteel.com
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mission
S U P P O R T
A
M I S S I O N
The UAE is bidding to host the World Expo 2020 in Dubai under the theme ‘Connecting Minds, Creating the Future’ Everybody is excited about the Dubai Bid for the Expo 2020. An event that boosts the economy and an event where the whole city will be turned into a show case. Therefore Dubai is trying hard to unify its diverse population behind the goal to get awarded with the fantastic event. An Expo is held every five years and lasts for six months. It attracts millions of visitors and generates a massive communication campaign. And this should be the biggest advantage of the Expo 2020 being held in Dubai.
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By attracting millions of visitors and by communicating to the rest of the world over a considerable amount of time, Dubai again has the opportunity to position itself as one of the most modern cities in the world. Investors will lay an eye on Dubai and businesses will be created, not only because of Expo 2020 itself, but because of the visitors that identify Dubai as a place to shop, place to live and even as a place to invest. But this also is good news for Abu Dhabi, the rest of the Middle East or for the entire Gulf region. The World Expo has never been held in the Middle East, Africa and South East Asia and therefore the chances are more than fair to be awarded with that prestigious event.
But what is the World Expo about?
mission
The Great Exhibition, held in London in 1851, inaugurated World Expos as the hallmark events of a world aspiring to strengthen its connections, celebrate its cultural diversity and marvel at its technological wonders. Today, World Expos remain a key meeting point for the global community to share innovations and make progress on issues of international importance such as the global economy, sustainable development and improved quality of life for the world’s population. Every five years, World Expos attract millions of visitors who explore and discover pavilions, exhibitions and cultural events staged by hundreds of participants including nations, international organisations and businesses.
Each World Expo is a catalyst for economic, cultural and social transformation and generates important legacies for the host city and nation. For instance, Shanghai 2010 World Expo helped transform a heavily industrial citycentre area into a thriving cultural and commercial district while also bringing its theme “Better City, Better Life” to the attention of 73 million people. The next World Expo takes place in Milan, Italy, in 2015. The focus: “Feeding the Planet, Energy for Life”. So let us hope that our wishes come true and the Expo 2020 will be held in Dubai, showcasing the capabilities and the achievements of Dubai, the United Arab Emirates and the Gulf region.
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NEWcomer
N E W
I N
T H E
M I D D L E
E A S T
A new leader has arrived Investing USD 10 million in the UAE over the next two years The top officials of the GEFCO Group have revealed their plans for investing considerable amounts and resources into their Middle East operations during a press conference in the Palace Downtown Hotel in Downtown Dubai. The newly opened office in the Jebel Ali Free Zone in Dubai has to be seen as the first step of many, proving their commitment for the region. Present during the launch event were top GEFCO officials headed by Luc Nadal, Chairman of the Board and Christian Zbylut, Vice President and CEO of International Development. The company’s new office will be offering effective logistics solutions like inbound overland logistics, outbound automotive logistics and overseas services to key industry verticals like automotive, aerospace, FMCG and electronics. The ownership change in January 2013 of GEFCO group made new strategic activities possible. The Russian Railways (RZD), national rail carrier of the Russian Federation is one of
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the newest shareholders of the GEFCO Group. Buying 75 % of the company shares of GEFCO group shifted the power balance towards the new investor. This move is seen quite positive by the top officials of GEFCO group as it enables the company to realise their visions. One is the investment into the Middle East market place and the new office facilities in JAFZA Dubai. USD 10 million will be spent over the coming two years into the operations in Dubai. This only was possible with the new shareholder RZD. The opening of the company’s pioneering offices in Dubai is part of GEFCO’s continuing move towards international development and support for its customers across highgrowth areas like Central Asia, the Middle East, Central and Eastern Europe, East Asia, India and South America.The new office will be the headquarters for the entire Middle East, where all transactions will be coordinated. GEFCO is expected to expand its operations to cars compound and warehousing activities over the next
newcomer
three years—making full use of 200,000 square metres of office and warehouse space.“We are very excited with the potential opportunities to be gained from the opening of our new offices in Dubai, which not only marks our initial presence into the Middle East region, but also demonstrates our continuing move to address the growing need for highly reliable and effective logistic solutions from our customers,” said Stefano Pollotti, Country Manager - UAE, GEFCO. “Making Dubai the headquarters of our Middle East offices proves to be very strategic and advantageous— as we are located right in the heart of the region and central to
the operations of various industry verticals. We remain highly confident in this key move to establish our presence and have even started to mull the possibilities of opening offices in Saudi Arabia, Oman and Qatar.” GEFCO’s new office in Dubai is geared up to be a knowledgecentre for the supply chain of finished vehicles entering the United Arab Emirates with final destinations to Iraq and across other countries within the GCC region. The company will hire more than 15 new personnel to man the Dubai offices and oversee Middle East operations.
The GEFCO Group Established in 1949, the company has evolved into being a world leader in automotive logistics. It has made its mark as a benchmark for industrial logistics. GEFCO is also widely recognised as one of the top 10 transport and logistics groups in Europe. A solid turnover of EUR 3.78 billion and an operation profit of EUR 223 million in 2011 make it a solid profitable international logistic group. The company enjoys a global presence across 150 countries and continues to expand to provide key logistical support to its industrial customers in highgrowth areas like Central Asia, the Middle East, Central and Eastern Europe, East Asia, India and South America. The company operates a fleet of 6.5 million handling units to help process 48 million flows per year across Europe. GEFCO maintains over 137 depots that are linked by 400 international routes shipping out 28 million tonnes of freight and four million cars annually.
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LOG awards
E X P E R T
P A N E L
2 0 1 3
2013
LOG Awards EXPERT Panel
LOG Middle East is the organiser of the LOG Awards 2013. Supply chain professionals are nominated to win one of the 5 prestigious LOG Awards. In the weeks and months before the awards ceremonies, nominations from all around the region are received via e-mail and via telefax and masses of information need to be administered and sorted out before being presented to the LOG Expert Panel. The nominees are nominated by themselves or by some other party who believes in the endeavors and achievements of that particular person. It has to be stated clearly that the LOG Awards do only go to individuals and not to companies or organisations.
But how to find the right winner of the prestigious LOG Awards? As a matter of fact we from LOG Middle East do not interfere in the selection process at all. We are just the “platform provider” and we line up candidates, sponsors, guests and an expert panel in a way that the event becomes a success. In this context the LOG Expert panel has a crucial function - it has to go through all the applications to find out the winner of the particular LOG Award. Therefore the LOG Expert Panel has to consist of experts in the supply chain who have the capabilities to figure out the person, who really earns an Award. That very often is not easy at all as too many opinions sometimes make it difficult to find the winner. But the LOG Expert panel, which consists of reputable supply chain specialists masters the work and comes up with the winners. We would like to say “Thank you.” to the members of the LOG Expert panel, who are contributing their valuable time to find the winners of the LOG Awards 2013.
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log awards
our judges
Matthias Hoewer General Manager SSI Schaefer
Matthias Hoewer, at present General Manager of SSI Schaefer Middle East and Africa, has been in his current position since January 2011. The graduate in Business Information Systems from the University of Paderborn joined SSI Schaefer in Germany April 2005 and was relocated to the United Arab Emirates in April 2008. Keeping long-term investments in Dubai in mind, it is due to Matthias why SSI Schaefer moved into its new 3,000 sq. m. Middle East regional headquarters in the Dubai World Central (DWC) in 2011, into a state of the art facility including a capacious warehouse showcasing SSI Schaefer`s latest solutions. Not only because of that SSI Schaefer MEA
continues to grow and now possesses three offices in the region and more than 10 local partner companies. The territory today extents from Islamabad to Cape Town. The opening of the Johannesburg office in 2011, more than one dozen automation projects in the region with global players from various industries, a team extension of more than 30% - these are just a few of Matthias` achievements that can be mentioned. The expansion plans do not stop here though. An office in Saudi Arabia is planned, the experienced team continually grows and more publicity and media presence show that we will hear more about the German family company in future.
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log awards
Prakash Nair
Prakash Nair is Manager Network Cargo Sales Development, responsible for Emirates SkyCargo’s growing range of services and solutions worldwide – both across the division’s network and its offline points. He was appointed to this position in July 2004. Prakash’s association with the cargo industry and the Middle East began in 1978, when he joined Kuwait Airways in Kuwait as Cargo Officer. The next year he became Station Supervisor for Saudi Arabian Airlines, where he acquired experience in handling both passenger and cargo operations. In 1987, two years after Emirates commenced operations, he moved to Dubai and joined the airline as Plan-
ning and Capacity Controller. In 1995, Emirates SkyCargo decided to establish a full-fledged sales development department and called on Prakash to set it up and lead the team, drawing on his industry acumen and organisational capabilities. Prakash is a member of Air Cargo Europe’s Advisory Board since 2003 and one of the Chief Advisors of Air Cargo India 2006. He also presides on the Executive Board of Directors for the Middle East Logistics Awards. Prakash holds an MBA (Marketing) from the University of Lincoln, UK and a Bachelor of Commerce from Mumbai University, India.
Manager Network Cargo Sales Development Emirates Airline
David is time served in the logistics industry with over 33 years of experience including 17 years in the Middle East, having held several senior positions with some of the leading organisations in the region. David has a wealth of experience assisting business start-ups and offering consultancy services for companies seeking to enter the Middle East markets,
David Dronfield
General Manager, Storage & Handling Solutions, Al-Futtaim Auto & Machinery Co. LLC (FAMCO)
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specifically for Dubai. In his role as Adviser at Dubai FDI, David assists in providing impartial advice and support to organisations aiming to establish their operations in Dubai to serve local, regional and international markets offering assistance during the full investment cycle.
David Harris
Adviser Foreign Investment Office, Dubai Department of Economic Development
David Dronfield, B.Sc(Hons) in Electronic & Electrical Engineering, with a career spanning 26 years in the Materials Handling industry. His work has taken him and his family across the globe, holding positions in the UK, Australia, Indonesia, Thailand and the UAE, encompassing Project Engineering, Project Management, Marketing, Sales Management, Business Development and General Management. His mandates have included business startup to turnaround from loss making to market leadership positions. David has worked within the majority of industries, including 3PL, FMCG, Pharmaceutical, Ports, Retail, Records Management, Automotive, Parts and Cold Chain. He has managed the development of solutions utilising the complete range
of Storage & Materials Handling Equipment. In each territory, he has worked with both multinational and local clientele, providing manual, semi and fully-automated distribution solutions appropriate to the unique criteria of each client.Currently holding the post of General Manager for the Storage & Handling Solutions Division of FAMCO, he is responsible for providing turnkey solutions that incorporate the premium brands of Linde Materials Handling, Dexion Storage, Hart, Nassau and Stertil Door & Dock Solutions, and Bott Workshop & In-Vehicle Equipment. David is further responsible for managing the development of the newly formed “Al Futtaim Interiors” Company that provides full design and fit out of office interiors.
log awards
Mahmood Al Bastaki CEO Dubai Trade
“Leading Dubai Trade to become the innovative trade e-hub of the world, served as the CIO of Dubai World Corporate Departments before taking up his current position as the CEO of Dubai Trade. A Member of The UAE National Committee of World Trade Organization and an Executive Board Member of
highest employee satisfaction index from a disorganised, mismanaged entity with losses of about USD 1.5 million and a high employee attrition rate. I successfully improved operational efficiency by reworking many work processes and invested in developing contract logistics expertise, which has already attracted the attention of many global retail, hi-tech and automotive Companies. Our 24/7 approach to customer-support has greatly improved our reputation in the local market. Moreover, my belief that an open-door, transparent attitude coupled with treating employees with respect has ensured low employee turnover rates.
Mike Lee
Senior Vice President Al Tayer Group Mike is the Senior Vice President Logistics for Al Tayer Group which operates leading, quality focused businesses in various industries with leading luxury brands in automobiles, luxury and lifestyle retail, perfumes and cosmetics.
Sascha Geiken
Managing Director Geodis Wilson UAE LLC
our judges
Born in to a family that ran a trucking business in Germany, my interest in freight forwarding began at an early age. From being an automobile mechanic at my family’s business in the early 1990’s to managing its day to day operations, I found freight forwarding very exciting. I held various freight and business management roles that spanned Europe, Middle East and Africa at MSAS Global Logistics, Exel GmbH, IJS Global , Al Futtaim prior to taking on the role of an Operations Director, initially, and later as Managing Director at Geodis Wilson UAE. In a period of 2 years, I successfully transformed Geodis Wilson UAE into a profitable organisation with the
The UAE Chartered Institute of Logistics and Transport. He was the former Acting Director of E-Services of Dubai E-Government. Al Bastaki has a Masters degree in Electrical Engineering from Oregon Graduate Institute - USA and a graduate of Mohammed Bin Rashid Leadership Development Program.”
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international NEWS
I N T E R N A T I O N A L New legal conditions for Europe to Asia rail freight The new agreement will create a common legal regime for rail traffic which will be equivalent to the regimes for competing road, air and water transport.
DP World sell Hong Kong Assets DP World are selling 75 percent of their interests in CSX World Terminals Hong Kong Limited which operates berth 3 of the Kwai Chung Container Terminal and ATL Logistics Centre Hong Kong Limited.
Mangalore International Airport opens new air cargo complex India’s Mangalore International Airport (MIA) has opened a new air cargo complex in order to reduce the complexity of exporters and importers in the region. Cargo handling at the new complex is expected to commence from April 2013 and will be overseen by the Airports Authority of India (AAI). The new complex spread over a floor area of 14,000sqft will be capable of managing 100t of cargo at a time. Hiring of customs staff at the new complex along with others arrangements for booking and delivery agents at the airport will be carried out in near future.The new complex will be used to export of ornamental fish, flowers, fruits and vegetables, precision parts for watch manufacturers as well as import of medical equipment.
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DHL announces € 40 million investment in Indonesia Plans include significant increases in transportation fleet, warehouse footprint, and staff strength by 2015, and launched new 17,000-square metre multi-user warehouse in Cimanggis The company plans to increase its transportation fleet by over 100 percent, up from its current fleet of 370 vehicles at present. In addition, the company plans to grow its current staff complement of over 2000 employees by over 70 percent and add 60 percent
more warehouse space to its 164 warehouses in the country. Oscar de Bok, DHL Supply Chain CEO for South and Southeast Asia said, “Indonesia is a key focus for us. Industry experts estimate average growth this year in Indonesia will be a regional high of 6.3% and within the supply chain industry we actually expect to see double digit growth here. This is why we are proactively investing to ensure we have the right infrastructure and people to support this.”
Kim Pederson becomes Executive Vice-President of Geodis Wilson Kim Pedersen, 47, has been appointed Executive Vice President of Geodis Wilson. Starting March 1st, 2013, he will be heading the global Freight Forwarding division of Geodis. “In Kim Pedersen we have a person at the top of our freight forwarding activities who brings the capabilities, the experience and most importantly the right mindset to lead this important business unit of Geodis further into areas of strong and sustainable growth on a global scale”, says Marie Christine Lombard, CEO of Geodis.
international news
Kuehne + Nagel to consolidate organisational units around the world
Swiss freight forwarding firm Kuehne + Nagel will consolidate its current organisational units in Europe, Asia-Pacific, Africa and the Middle East in order to increase efficiency. The logistics provider said it will merge the organisational units in Central Europe, North West Europe and Southwest Europe into one single region, known as West Europe. After reorgansiation of units, the regional management and headquarters will be based in Hamburg, Germany. The reorgansiation does not include the region, East Europe, with the division’s head office in Vienna remains unchanged. Plans in Africa and the Middle East include the consolidation of regional units Middle East / Central Asia and Africa into Middle East / Africa, which will be headquartered in Dubai, UAE.
The company said it will establish two regional teams in the Asia-Pacific region in order to maximise business opportunities. As per the plans, starting July 2013 there will be a ‘North Asia’ region headquartered in Shanghai which will be responsible for the company’s activities throughout China, Hong Kong, Taiwan and Macau. The other regional team will be ‘South Asia’ region that includes South Korea and Japan and will be headquartered in Singapore. In the Americas, the structures in both North and South, will remain unchanged. Kuehne + Nagel International CEO Reinhard Lange said, “Our new regional structure shortens decision-making processes on the one hand and allows on the other to respond more quickly to new market conditions and opportunities.”
UK warehouses waste Hoyer adds mini 3000 hours a year pressure tanks
CEVA: New ChinaEurope service
Workflow performance company Intermec have discovered that UK distribution centres lose nearly 3,000 hours a year as a result of unproductive workflows. Using a survey base of 250 supply chain, warehouse and distribution managers, Intermec established that each worker loses 15 minutes of productivity per eight hour shift as a result of an inefficient process. According to previous findings by Intermec, nearly eight out of ten warehouse managers have been tasked with finding an average 19 percent cost saving from existing operations. Despite a mounting pressure to cut costs and the need to find efficiency gains, UK warehouse managers admit to losing time and money through known inefficient workflows.
Supply chain management firm CEVA Logistics has launched new railway service that connects Suzhou in China with Netherlands in Europe. The new route will span 11,000km running from Suzhou across Russia to the Netherlands and the journey time to cover the entire route is expected to take about 28 days. The introduction of the new route follows the trial service conducted by the logistics provider for a customer in the Technology sector, which has seen the trial shipment arrive five days earlier than the planned date. According to the company, the new railway service is expected to provide reduced costs compared to the airfreight and lower transit time of 13-15 days than the oceanfreight.
Hamburg-based logistics service provider Hoyer has expanded its container fleet with new mini pressure containers. The new containers, known internationally as mini pressure tanks (MPT), are used for the transport of harmful chemical products, where optimal safety standards are required. The tanks have a capacity of around 1,100L, making it ideal for transport or storage of smaller quantities of product under pressurized conditions. Hoyer business development manager Uwe Bartels said that adding nitrogen, for instance, to mini tanks ensures that the product being transported is not brought into contact with other substances. The containers can also be equipped with RFID or GPS, depending on the client’s requirements.
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regional news
R E G I O N A L Qatar Airways aims to reach the top five cargo carriers Qatar Airways is aiming to secure a place amongst the top-five global cargo carriers in the next five years, according to an announcement by CEO Akbar Al Baker. The airline, which will be operating 11 freighters by the end of this year, will take delivery of three more A330 freighters by the end of 2013. Al Baker said the new model offered 40 percent more capacity than the A300s, which will now be phased out. The strongest freight lane currently is Hong KongDoha, served with six freighters per week. Chief cargo officer Ulrich Ogiermann would not reveal which new routes the carrier was targeting as its main-deck fleet expanded, saying only that the market remained volatile and the landscape was “always changing.”
DUBAL deploys SAP application Dubai Aluminum (DUBAL) has deployed a SAP-based Inbound Logistic application for shipment tracking, expediting and costing. The new system offers transparency, control and efficiency across the process, while providing a unified platform that supports current and future business needs.
New aiport opens in Amman Jordan has officially opened the new Queen Alia International Airport in its Capital City of Amman. The airport features a design inspired by local traditions and is based on a flexible modular scheme that will enable the facility expand in the future. The new facility in Amman is expected to draw tens of millions in passenger traffic over the next two decades.
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New paperless Ports Community System ADPC and ADT sign MoUwith Government agencies to speed up port transactions
Abu Dhabi Ports Company (ADPC) has announced that it has signed a memorandum of understanding (MoU) with Abu Dhabi Terminals (ADT) and several government agencies that will pave the way for the introduction of a new information and documentation system at all its ports. The MoU, signed during the third edition of the World Ports and Trade Summit 2013 (WPTS), in Abu Dhabi was between: ADPC; Abu Dhabi Food Control Authority (ADFCA); Abu Dhabi Customs Administration (ADCA); and Abu Dhabi Terminals. Intended to act as a ”One-StopShop” for the ports’ services and to integrate and accelerate the flow of trade-related documentation and information, the ‘Ports Community System’ (PCS) acts as a secure, centralised electronic system that manages the exchange of information between all the relevant parties. Previously, each company or agency was responsible for liaising with each other – separately – which amounted to a large number of
man-hours allocated to both, import and export procedures. “We hope this MoU will provide a great platform and spring-board for co-operation on these matters, not just for the PCS, but in other areas where we can continue to improve our competitive edge in the maritime industry, and for the emirate of Abu Dhabi as a whole.” While the various stakeholders behind the introduction of the Ports Community System include ADPC, ADT, and government agencies and ministries, the PCS platform will be of direct and immediate benefit to the likes of freight forwarders, ship owners, shipping agents, ports services, inland carriers, and other entities that regularly use the ports. Her Excellency Dr. Mariam Hareb Al Yousef, Executive Director of Policies and Regulations, Abu Dhabi Food Control Authority (ADFCA), emphasised that the authority should remain focused on its core efforts and strengthen its procedures to ensure the safety of food.
regional news
Fichte & Co again best 1st Middle East “Maritime Law Firm of Simulation Symposium theYear”
The 1st Middle East Simulation Symposium took place on 13th of March in Dubai, a networking event bringing together simulation specialists and the industry to discuss the best approach to improve processes, productivity levels and profitability.
The first Trade and Export Middle East Excellence Awards honoured all organisations that have played their part in promoting trade and investment within the region and that had succeeded because of their strategies. Trade and Export Middle East Excellence Awards brought together prominent industry and government stakeholders from across the region to recognise the best among five major categories including finance, free zones, legal, business support services and warehouse and logistics. Fichte’s shipping team was picked among top international law firms in the region proving the firm’s brilliance and excellence in an ever-changing industry.
“We are also reaching out to universities to address the modelling needs of government entities and companies. We like to inspire young graduates as well as seasoned professionals about the diverse application areas of simulation, the manyfold advantages this technology offers as well as faster and risk-free project implementation and an immense cost-saving potential of 5-20%”, so Katarina Albert. The next Simulation Symposium will be held in the end of June / beginning of July with several experts from across the GCC giving presentations about a wide-range of application areas as well as featuring a hands-on workshop to built your own simulation model. For more information visit the simulation portal www.me-simulation.com
Agreement with Al Dahra Agriculture
Oman Air joint venture with DHL
Aramex to use Etihad Rail network
Abu Dhabi Ports Company (ADPC) and the Khalifa Industrial Zone Abu Dhabi (KIZAD), announced that they have signed an agreement with Al Dahra Agriculture to establish an agri-business distribution hub, at Khalifa Port. One of the UAE’s leading companies specialising in agriculture and animal feed production, Al Dahra Agriculture will establish a facility for the handling of agricultural-based bulk commodities, grain storage, processing units and logistics support services at the new deep-water port. The facility is expected to support the company’s increasing global footprint and business growth.
Oman Air, the national carrier of the Sultanate of Oman, has formed a joint venture freighter operation partnership with DHL Supply Chain. Oman Air Cargo has entered a block space deal with DHL for using the logistics firm’s capacity in both directions of its operation between Muscat and Dubai. Oman Air chief executive officer Wayne Pearce said that the joint venture has added additional main deck capacity to improve the company’s cargo capacity. “We will continue to create additional capacity and more frequencies in the near future to meet the requirements of our worldwide customers,” Pearce added.
Aramex has signed a memorandum of understanding (MoU) with Etihad Rail to provide logistics services. Under the deal, Aramex will use of the rail network of Etihad Rail following its start of operations in order make deliveries across the UAE and other Gulf countries. Etihad Rail executive director of Commercial Shadi Malak said, “Etihad Rail is changing the face of transportation in the UAE, delivering a mode of transport that is preferred in the logistics industry worldwide for its safety, efficiency, low costs and environmental benefits.” The rail network will link the UAE to Saudi Arabia via Ghweifat in the west and Oman through Al Ain in the east.
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growing market
G R O W I N G
M A R K E T
DHL scales up DHL builds the largest ground operations facility in the Middle East and North Africa at Meydan in Dubai. The project, worth 100 million AED, is due to open in Q3 2014. Close to the prestigious race course of Meydan Dubai, and in the heart of the Dubai metropolitan area, the new ultra-modern facilities of DHL will be built. During the groundbreaking ceremonies on 7 March 2013, many guests question the location, as Meydan is seen as a luxury recreational area where an industrial facility does not seem to fit in. A location with close proximity to the airport, yet centrally located with good access to all Dubai Suburbs,
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was DHL´s main priorities on choosing an location. The DHL facility, however, is not an industrial building, but rather a distribution point for courier services. All loading and unloading of parcel shipments will be carried out within the building. Along with MGE Middle East General Enterprise L.L.C, DHL invests 100 million AED in the new facility. With that DHL enhances its logistical performance due to its
strategic location, state-of-theart features and capabilities and best-in-class handling processes all within one new modern facility. Frank-UweUngerer, Country Manager for DHL Express UAE, commented: “The new DHL Express UAE facility is a logistics milestone in DHL’s Middle East and North Africa network and we are extremely proud to
growing market
be partnering with Meydan to launch our largest ground operations facility in the region.” Speaking about the partnership, H.E. Saeed Humaid Al Tayer, Chairman of Meydan said: “We are very pleased to have cemented this important commercial partnership with DHL, a globally trusted brand. Their major distribution facility will bring tangible improvements and benefits to the entire commercial infrastructure of Dubai. Meydan shares the same principles of strategic investment, innovation and commitment to the future of the UAE’s economic growth and continued success. This is also an important milestone for us as the first major commercial development on Meydan real estate/property. It was selected by DHL for its prime location, ready infrastructure and unparalleled access. We look forward with confidence to a strong and lasting partnership.” The new facility to be completed in Q3 2014 strengthens DHL’s already strong position in the region.
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
coming up
C O M I N G
S O O N
Prepared to meet Future Leaders With their spirits soaring about the multi-billion dollar airports expansion programme, the six Gulf Cooperation Council (GCC) states are increasingly exploring the airport leadership challenges and capacity building in their endeavour to solidify the region’s future position on the world aviation map. Several airports, facing challenging times and tougher competition, some airports are looking at fundamentally changing the way they do business breeding new leaders as they prepare for a massive growth cycle.
Khalifa Al Zaffin Executive Chairman Dubai Aviation City Corporation
The massive increase in the volume of passengers will enhance the challenges for airport leaders as they strive to offer the highest quality of services in every aspect of airport operations. Aviation experts participating in the 13th edition of the Airport Show and the debut Global Airport Leaders’ Forum (GALF) in Dubai in May 2013, have underscored the imperative need to launch airport leadership development programmes and capacity building initiatives in order to meet the rapidly changing requirements of the commerciallyrun airports. Khalifa Al Zaffin, Executive Chairman, Dubai Aviation City Corporation, said: “There remains a shortage in
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professional manpower due to the pace of development that we are witnessing, and we are filling these positions with foreign expertise. However, I believe the region has a sufficient number of aviation professionals to fill top-level positions, although I am not sure how long we will be able to sustain this given the rapid growth and development of the aviation sector.” He said that the UAE had done remarkably well in creating more opportunities for UAE nationals to be employed in the aviation sector. The strong growth of Emirates Airline, for instance, has resulted in widespread recruitment of Emiratis across different disciplines. Moreover, Dubai Airports and Dubai Aviation City Corporation are equally committed to expanding the Emiratisation programme. The aviation sector, which now accounts for around 28 per cent of the national GDP, will certainly have a huge impact in driving the
coming up
Emiratisation programme. Aviation leadership in the UAE has been very progressive and very open minded. Khalifa stressed however that there was an urgent need to strengthen the human resource development initiatives in the aviation sector and to take advantage of both local and foreign expertise in order to cope with the industry’s rapid growth. Leading Arab world aviation expert, George Hannouche, whose company, Bayanat Airports, is an exhibitor at the show, said: “The region is seeing game-changing developments in the airports sector, the GCC airlines working at taking on world competition. One crucial issue is human asset management and leadership succession. A good leadership is of prime importance in the success of a profitable and efficiently run airport. The future of our air transport system depends on the confident and qualified leaders who run our airports.” The forum in May will focus on the local market, with the aim of providing regional airport management with an opportunity to highlight skill challenges and shortages and find tangible solutions in order to develop a pool of highly-skilled Arab professionals. Aws Al Khanjari, General Manager, Gulf Centre for Aviation Studies and member of GALF Advisory Board, says that one of the important qualities of a leader is the power of a delegation thereby building a team which will guarantee enhanced profitability and performance for an organisation based on efficient and effective leadership. He said: ”The forum presents a unique opportunity for those involved in the management of
airports in the UAE and the region, to identify the best practices in leadership, utilising the perspectives of international experts who have long been engaged in the management of airports.” Khanjari believes that the massive airport expansion in the UAE calls for the creation of a vast pool of leaders to run the huge operations, which handle close to 85 million passengers a year. According to an Oxford Economics report the aviation sector supports 224,000 jobs in the UAE, including 141,000 jobs directly
supported by the aviation sector, and will provide more than 400,000 new jobs in various disciplines directly and indirectly in the next 20 years. Airports and airlines in the UAE and GCC are in an ideal position to implement an airport leadership development programme. The forum fulfills the need for a global platform where airport leaders can debate issues of common interest. GCC airports are in massive expansion mode in oder to cope with the anticipated demand. In 2013, UAE airports, for example,
are due to handle more than 85 million passengers, while Middle East airports will handle 400 million passengers a year by 2020. According to an Oxford Economics study, the Middle East region has 1029 aircraft in service, operated by 65 airlines and from 70 commercial airports. The GCC region has 36 airports, including eight in the UAE. The 1st Global Airport Leaders’ Forum (GALF), alongside the iconic Airport Show, is scheduled to bring global pioneers and pacesetters of the airports industry to Dubai in order to share their professional insights, practical experiences and future perspectives on a wide spectrum of issues and challenges confronting the industry. It has been designed as a much-needed knowledgesharing platform for C-Level leaders, managing directors, presidents, vice presidents, executive directors, and heads of departments (Finance, Operations, Planning and Strategy) from airports, airlines, civil aviation authorities and regulators, among others. A Steering Committee, chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum, is in place, with heads of Dubai Aviation City Corporation, Dubai Civil Aviation Authority, Dubai Airports and Emirates Airlines, dnata, Dubai World Trade Centre and Reed Exhibitions, as its members. One of the highlights of the forum will be the creation of a CEO Vision for Airport 2050 study based on an interactive voting programme. To register and gain more insights into GALF, please visit: www.theairportshow.com.
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technology
T E C H
I N N O V A T I O N S 3D model scanning Planmeca’s 3D X-ray unit range now offers a unique combination of three different 3D data. With just one unit, the user can acquire a patient CBCT image, 3D face photo and 3D model scan, and combine these data in one software suite. Planmeca is the first to introduce this type of concept. A virtual patient is created for different clinical needs.
First silicon metal smelter facility in the UAE
Konecranes present world’s first hybrid reach stacker Konecranes has introduced the world’s first hybrid reach stacker the SMV 4531 TB5 HLT - for container handling, with a lifting capacity of 45 tons. It features a hybrid diesel/electric driveline, electrified hydraulic lifting system, and a super capacitor-based energy storage. This innovative lift truck will cut fuel consumption and emissions by at least 30 percent while offering improved performance, acceleration and response to driver’s commands. The new Konecranes hybrid reach stacker will offer customers substantial cost and environmental benefits. Estimated fuel consumption at normal handling of fully loaded containers will be at least 30 percent lower than equivalent diesel-powered reach stackers. This has been achieved by electrifying all flows of energy across the driveline, the hydraulic lifting system and the energy storage system. “Propulsion and lifting are powered by dedicated electric motors that all can operate in regenerative modes.
The energy generated from braking and load lowering is recovered and stored for later re-use. This results in a substantial reduction in diesel fuel consumption and environmental impact. Meanwhile, productivity is increased with quicker response and higher acceleration”, Nilsson continues. “Potentially, the diesel engine of the hybrid reach stacker could be replaced by another source of electrical energy as technology and price allow. Such examples may be fuel cells, or an energy storage that can be recharged via a connection to the power grid.” In a conventional reach stacker, the driveline is a diesel/mechanical system consisting of a diesel engine, torque converter and transmission. The diesel engine produces the energy for propulsion. The flow of energy is mechanical and a quite complex mechanical gearbox is required. The energy generated by braking is converted into heat that is dissipated to the ambient and wasted therefore.
Al-Braik Investments LLC has appointed U.S. Investment Bank, Jefferies LLC, as its international financial advisor in respect of AlBraik’s intention to build the Middle East’s first silicon metal smelter facility at the Khalifa Industrial Zone Abu Dhabi. Al-Braik received approval to reserve a 3.4 million sq-ft plot of land within KIZAD.
DHL launches new racking system DHL´s new racking system claims to offer racking supported double stacking in 40ft containers that decreases cargo damage and provides cost efficiency of about 40 per cent, with better usage of the equipment. The racking systems are linked to the side walls of the container and can be fixed at different heights based on the size of the cargo. Each container can have nine platforms maximum with a carrying capacity of about one ton cargo. “As a side effect, both our customers improve and ourselves our carbon footprint,” Boedeker added. Currently available in the company’s self-owned containers that travel on routes between Hong-Kong and Germany, from Hong Kong and Shanghai to the US.
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DP WORLD DPWorld Annual event
T O P
E V E N T
I N
D U B A I
Grand Gala 2013
The Annual Grand Gala celebrates the bonds with the sea and the sustained partnership with the supply chain industry The 2013 edition of the Grand Gala evening of DP World was recently held at theJumeirah Beach Hotel Dubai. More than 700 distinguished guests, including top executives from DP World’s stakeholders, shipping lines, traders, logistics companies, and other supply chain operators, attended the glamorous evening held between the Jumeirah Beach Hotel and the Burj Al Arab. Large televison screens were dotted around giving the evening an important note, while the dominant DP World logo loomed above the venue, projected visibly onto the Burj Al Arab. DP World has risen to become the ninth largest port operator globally,said Chairman H.E. Sultan Ahmed Bin Sulayem, addressing the Annual Grand Gala Dinner. Under the theme “Dreams of the Sea”, the audience witnessed a fascinating animation that clearly expressed DP World’s maritime heritage. “Dubai’s transformation into the trading hub of the region was driven by the visionary investments our leadership made in the infrastructure
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sector, especially its ports,” said Mr. Bin Sulayem. DP World’s flagship, Jebel Ali Port, is a fine example of the dreams that became reality, not just in Dubai, but across the UAE,” Mr. Bin Sulayem conluded. Mr. Mohammed Al Muallem, Senior Vice President and Managing Director, DP World, UAE Region, gave an impressive speech on the milestones that had been reached by DP World and about the future plans of the port. Trading with more than 220 countries, the UAE is the world’s third largest re-export market and is home to nine seaports within Jebel Ali, with more than 15 million TEU (twenty foot equivalent container units) capacity, the largest container terminal between Rotterdam and Singapore. Another film shown on the evening showcased the UAE’s Expo 2020 bid, which has created massive momentum in the past months within the UAE. The Annual Grand Gala 2013 of DP World proved to be another success story.
D Dreams of
event
the Sea
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ICCUAE EVENT
T O P
E V E N T
I N
D U B A I
ICC UAE General Assembly Meeting On 27th March 2013, the Dubai chapter of the ICC UAE held its 4th General Assembly Meeting in the Dubai Chamber of Commerce and Industry. The ICC UAE represents the commercial, industrial and business enterprises in the country. Founded in 2004, the Chapter endeavours to bring UAE industry, business and trade up to world-class standards. It encourages domestic and foreign investment within the UAE, while dealing with the national and international legal, financial and administrative matters of its members. The Chapter, along with the Parisbased International Secretariat of ICC, promotes both the scope and reach of the UAE business community all around the world. Dr. Ahmed SaifBelhasa, chairman of ICC UAE, welcomed the members to the meeting and pointed out the important developments of ICC UAE. Generally speaking, the ICC aims to promote international trade, investment and the economy. Trade has always been a driving force behind economic peace. ICC’s most important mission is to promote open international trade and investment. The ICC UAE works hard to keep the banking indus-
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try, importers, exporters and others updated with the international rules and regulations via workshops, seminars and publications.
Board of Directors Mr. Abdulla Sultan Abdulla
Federation of UAE Chambers of Commerce & Industry
Mr. Mohammed Hilal Al Muhairi Abu Dhabi Chamber of Commerce & Industry
Mr. Hassan Al Hashemi Special thanks were given to: Mr. Saeed Al Jarwan, Secretary General of ICC UAE; Mr. Essam Al Tamimi, Head of ICC UAE Commission on Arbitration; Mr. LakshamananSankaran, Head of Banking Commission; Mr. David Harris, Head of Transport and Logistics Commission and all members for their services to ICC UAE. The election process was managed by Mr. Abdulla Sultan Abdulla, Secretary General of Federation of the UAE Chambers of Commerce and Industry. As per the bylaws of ICC UAE, the following were eleeted to the Board of Directors of ICC UAE.
Dubai Chamber of Commerce & Industry
Mr. Saeed Obaid Al Jarwan Sharjah Chamber of Commerce & Industry
Mr. Hamad Rashid Al Nuimi Ajman Chamber of Commerce & Industry
Mr. Humaid Mohammed Ali Salem UAQ Chamber of Commerce & Industry
Mrs. Fatima HadroomAlghefily RAK Chamber of Commerce & Industry
E
EVENT
Leaders of the Industry Mr. Khaled Mohammed Al Jassim Fujairah Chamber of Commerce & Industry
Dr. Ahmed Saif Belhasa Belhasa International LLC
Mr. Essam Al Tamimi Tamimi & Co
Mr. LakshmananSankaran Commercial Bank of Dubai
Mr. David William Harris Dubai FDI
Mr. Mohammed Al Suwaidi Al Suwaidi & Co
The meeting was followed by the first meeting of the newly elected board of directors. The board elected Dr. Ahmed Saif Belhasa as Chairman; Mr. Hamad Rashid Al Nuimi as Vice Chairman and Mr. Saeed Obaid Al Jarwan as Secretary General of ICC UAE.
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CALENDAR
EVENTS MAY
india warehousing show
JUNE
new dehli; india; 2-4 may 2013
the logistics & supply chain forum
ProcureCon Latin America
jacksonville; florida; USA; 2-4 JUNE 2013
Milenium Convention Center - S達o Paulo; 6-8 may 2013
AIR CARGO EUROPE 2013
Beijing; china; 9-11 may 2013
MATERIALs HANDLING DUBAI; united arab emirates; 10-12 SEPTEMBER 2013
SEA TRADE EUROPE MUNICH; GERMANY; 4-7 JUNE 2013
6th China International Logistics Expo 2013
UPCOMING
LOGISTICS LINK LIVE NEC BIRMINGHAM; UK; 5-6 JUNE 2013 http://live.logisticslink.co.uk/
ROUTES EUROPE 2013
HAMBURG; GERMANY; 24-26 SEPTEMBER 2013
eTail Middle East & North Africa dubai; UAE; 16-18 September 2013 www.etail-mena.com
BUDAPEST; HUNGARY; 12-14 MAY 2013
TRANSPORT LOGISTIC
dry cargo international
MUNICH; GERMANY; 7-9 JUNE 2013 www.transportlogistic.de
women in logistics middle east launch
INTERLOG
dubai; united arab emirates; 23 october 2013
antwerp; belgium; 12-14 MAY 2013
myanmar transport & logistic summit yangong; myanmar; 12-15 MAY 2013
SHERATON SAN DIEGO HOTEL AND MARINA; SAN DIEGO; USA; 18-20 JUNE 2013
material handling bangkok; thailand; 20-23 JUNE 2013
IRAQ MEGA PROJECTS EXHIBITION Dubai; united arab emirates; 30 SEPTEMBER - 2 October 2013
clinical trial logistics london; uk; 22-23 MAY 2013
logistics launch
european logistics & supply chain summit
MULTIMODAL MIDDLE EAST
berlin; germany; 25-27 JUNE 2013
Dubai; united arab emirates; 9-11 december 2013
2013 health & humanitarian logistics conference
container supply chain middle east
kuala lumpur; malaysia; 4-5 JUNE 2013
dubai; united arab emirates; 9-11 december 2013
queensland; australia; 7 MAY 2013
cebit australia 2013 sydney; australia; 28-30 MAY 2013
log awards 2013 dubai; united arab emirates; 29 MAY 2013
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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impressum
supports:
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The LOG. Middle East Magazine is a publication of Gutenberg Publishing FZ-LLC. Licensed by TECOM, Dubai, UAE. Trade Licence No: 20704
www.logmiddleeast.com www.gutenberg-dubai.com
Contributors’ opinions do not necessarily reflect those of the publisher or editor and while every precaution has been taken to ensure that the information contained in this journal is accurate and timely, no liability is accepted by them for any errors or omissions, however caused. Articles and information contained in this publication are the copyright of Gutenberg Publishing FZ-LLC (unless otherwise stated) and cannot be reproduced in any form without the written permission of the publisher.
MARCH/APRIL 2013
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WIN
INVITATION TO NOMINATE LOG Middle East Magazine, the regions premier publication for the logistics and supply chain industry, has initiated the LOG AWARDS.
Up to 400 Top Executives & Descision Makers Top Key Note Speakers 5 Prestigious Logistics & Supply Chain Awards Raffle Draw with incredible prizes 5-Star Venue with Dinner Buffet Music & Entertainment Network with the experts and professionals
The jury and logistics community are honouring outstanding individuals with the LOG AWARDS in five seperate categories. We once again invite you to the LOG AWARDS 2013; a time to celebrate the best of the industry. We kindly ask you to submit your nominations for the mentioned categories as we nahce this zears winners. Nothing has changed with the way how to be nominated and how the winners of the LOG Awards 2013 are chosen. The nominations can be brought in by E-Mail, nomination form in the LOG Middle East Magazine or by calling the office under +971 (4) 4334 360 during office time. Cindy, our customer relationship manager, then will note down the details of the nominee and by E-Mail he or she receives a list of questions to be answered. The expert panel then will chose the winners of the Awards in strict confidentiality. In the next issue of the LOG Middle East Magazine you will get more information about the expert panel and their achievements.
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FEBRUARY 2013
2013
LOG Awards
YOUNG ACHIEVER OF THE YEAR SUPPLY CHAIN MANAGER OF THE YEAR INNOVATOR OF THE YEAR SUSTAINABILITY CHAMPION OF THE YEAR LIFETIME ACHIEVEMENT AWARD
SEE YOU THERE Nominate under: info@gutenberg-dubai.com Tel.: +971 4 433 43 60