Logisctics Middle East

NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJUNE 2009 ISSUE 57

DUBAI INDUSTRIAL CITY І SPAN GROUP І INTERMEC І ARAMEX І SUPPLY CHAIN & LOGISTICS GROUP

An ITP Business Publication

FULL STEAM AHEADAn exclusive look into CEVA’s US$800 million Middle East investment

MOBILE MARKETCan the logistics industrybenefi t from developmentsin handheld computers?

Revealing the winners of this year’s Supply Chain and Transport Awards

MATERIALS

HANDLING

MIDDLE EAST

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REVIEW INSIDE

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1www.arabiansupplychain.com | JUNE 2009

CONTENTS

CONTENTS

02 Editor’s LetterIn the mood to celebrate at this year’s Supply Chain and Transport Awards.

04 Readers LettersReaders of Logistics Middle East provide their views on the industry’s hottest topics.

07 News Update• Trade association to conduct research

into the Middle East logistics industry• Aramex fi nalises Vodafone Qatar deal• Agility develops Asia Pacifi c operations• Dubai Industrial City expands storage• Triburg orders Exactus WMS solution• Al Mutlaq signs ISIS distribution contract• Success at Materials Handling exhibition• SPAN contracted for Landmark project• Eros opens fl agship Jebel Ali warehouse

Issue 57 June 2009

18 ArabianSupplyChain.comHighlights of the month from the offi cial website of Logistics Middle East magazine.

20 Profi le: CEVA LogisticsWith a massive US$800 million investment to develop its Middle East operations, CEVA Logistics is the latest global powerhouse to cement its long-term presence in the region.

25 Mobile MarketCan your warehouse operations benefi t fromthe latest developments in handheld devices?

30 SCATA 2009 CoverageTh e Middle East logistics industry celebrates its achievements at the third annual Supply Chain and Transport Awards in Dubai, with winners such as GAC, SPAN Group and TNT.

46 Ask The ExpertFacing pressure to increase their supply chain effi ciencies, David Dronfi eld from FAMCO explains why companies should consider a simple restructuring process.

48 Facts And FiguresTransportation statistics from a variety of regional and international sources.

54 Product ReviewsDetails on the latest material handling products released in the Middle East.

56 Face To Face InterviewUmer Shams Arakkal, general manager of Xvise Innovative Logistics, explains how local consultancy fi rms are helping companies to survive the global recession.

30

07 20 46

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EDITOR’S LETTER

he phenomenal growth of the Middle East logistics industry is a matter of pride for the entire region. Countries such as the United

Arab Emirates, Saudi Arabia and Bahrain have invested millions of dollars to develop their transportation infrastructure, while local companies such as Aramex, Agility and GAC have evolved into global powerhouses. Even international players such as TNT, Kuehne + Nagel and FedEx have fl agged the Middle East as a major growth market for the future.

As a chance to acknowledge our industry achievers and celebrate their success, ITP Business, publisher of Logistics Middle East magazine, hosted its third annual Supply Chain and Transport Awards (SCATA) in Dubai this month. Th e event, which was held in the lush surroundings of Mina A’Salam hotel, was another monumental success and attracted around 200 of the industry’s leading fi gureheads, arriving from countries as such as the United Arab Emirates, Saudi Arabia,

TKuwait, Bahrain, Qatar and even further afi eld, from Europe and the United States.

We include detailed coverage on the awards in this issue of Logistics Middle East, with quotes from the winners and a special photo special from the ceremony and gala dinner. It also seems an opportune time to thank everyone that contributed to the success of SCATA 2009, from the organising committee and judging panel to the sponsors and nominated companies.

Th e countdown has now started for next year’s ceremony and we’re keen to canvass from you any comments or suggestions for the event, either positive or negative. After all, these awards are for the Middle East logistics industry and we feel it’s important to involve the entire sector at all levels. If you would like to provide some input, please don’t hesitate to contact me on the email address below.

If you have any comments to make on this month’s issue, please email Robeel Haq, senior group editor ([email protected])

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New versus oldDear Editor,

It’s a challenging time for the Middle East logistics industry, although

it’s apparent that the situation will start to improve in the next year, which means that opportunities are ahead for newcomers in the 3PL sector. After reading your cover story on RSA Logistics, followed by

the feature on companies such as Global Shipping & Logistics (GSL)

and Maxx Logistics, I think some of the veteran players in the sector will

be faced with serious competition in the coming years. Th is is, of course, great news for customers, so let the battle commence!David Olson

Keeping the focus on Saudi ArabiaDear Editor,Your article on the growth of Saudi Arabia’s logistics industry was very interesting. I think the Kingdom has become a magnet for global logistics, fuelled by its economic growth, strategic location and a string of infrastructure developments. Saudi Arabia also has the largest hinterland markets in the Middle East and North Africa region, which could be used to launch goods and services to over 250 million consumers within a three-hour fl ying radius from the country. Sattam Al-Bukhari, Inma Pallets

The importance of halal logisticsDear Editor,Since 2006, I have been working on my PhD in the fi eld of halal logistics, which is a really fascinating part of the supply chain industry, not to mention a critical component in agrifood logistics. As part of these studies, I am leading the development of a global Halal Logistics Standard under IHI Alliance Ltd, which was recently launched at the World Halal Forum. If your readers would like to receive more details on the transportation, storage and handling of halal products, my contact details can be found at www.lbbinternational.comMarco Tieman, LBB International

Championing the smaller playersDear Editor,Congratulations to RSA Logistics for becoming the fi rst company to start operations at Dubai Logistics City (DLC). In the past, we have heard about the likes of Aramex, Kuehne + Nagel and Danzas building their warehouse facilities at DLC, buts it’s heartening to know that smaller, family-owned companies are still able to achieve ‘industry fi rsts’ ahead of global heavyweights in this region. I wish RSA Logistics the best of luck for the future.Ross Cantwell

Long-term vision is essentialDear Editor,Th e material handling supplement in the last issue of Logistics Middle Eastwas excellent. In particular, I enjoyedthe interview with Navin Narayan from Acme and agreed with his assessment that short-term visions are often responsible for meltdowns and over heating. I congratulate Mr Narayan for remaining focused on the long-term by taking his customers seriously and keeping abreast with trends within the industry.Syam Menon, Malta

Please address your letters to: Logistics Middle East, PO Box 500024, Dubai, UAE or email: [email protected](Please provide your full name and address, stating clearly if you do not wish them to appear in print. All letters will be edited for clarity of shortened to fi t the allotted space).

READERS LETTERS

Missing pieces of the jigsawDear Editor,It was interesting to read the exhibitor profi les for this year’s Materials Handling Middle East exhibition. Th ere was a slight element of surprise though, because despite having knowledge of the industry, I’ve never heard of companies such as Shun Gin Rubber Industries, Eisenmann and George Kramp. How come the likes of Intermec, Psion Teklogix and Yale were not exhibiting? Is it because of the market slowdown?Vivek Mendiratta

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REGIONAL NEWS

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Trade group to research Middle East logistics sector

NEWS UPDATE

he Supply Chain and Logistics Group (SCLG) has commenced a major research project into the Middle East logistics industry, a senior offi cial from the Dubai-based trade association has confi rmed.

A comprehensive range of information will be collated as part of the large-scale initiative, with key investors from the private and public sectors being provided with access to the fi rst set of information by the end of 2009.

“Th ere is a limited amount of authenticated research into the Middle East logistics industry, which is something that has recently been noted by the Dubai Chamber of Commerce and Industry (DCCI),” commented Dr Kanak Madrecha, member of SCLG’s regional development committee. “Since our trade association is operated under the DCCI banner, we have launched this initiative to further expand the scope of information that can be provided to interested parties in the future.”

Studies have already been initiated by Dr Cedwyn Fernandes, MBA programme coordinator at Middlesex University in Dubai and member

Tof SCLG’s consultative committee. Th e statistics will be developed to provide customised reports to companies with a vested interest in the regional logistics industry.

“We want to have an offi cial set of fi gures for the United Arab Emirates and other markets in the Middle East,” continued Madrecha. “So, for example, if companies such as DP World, Emirates Group or Dubai Logistics City made a request for specifi c information on the logistics industry, we will reach a position where customised reports can be provided within a month. Th at level of visibility will also boost the confi dence of international companies to invest in this region.”

According to Madrecha, the initiative was conceived by SCLG following a continued string of requests from companies that struggled to locate industry-specifi c data from trusted sources. “We have been approached on a number of occasions over the years, which proves that demand for such information is really strong,” he concluded. “Because our trade association is independent and unbiased, we believe it’s part of our responsibility to assist with the gathering of industry statistics and ensure the data is readily available in the coming years.”

“It’s about time. I am quite sure we could all do with a non-governmental, independent and unbiased survey of the logistics and supply chain industry

in the Middle East. Getting the true picture is quite diffi cult in this part of the world and I look forward to seeing a set of offi cial fi gures.”Navin Narayan,Acme Group

INDUSTRY REACTION: ACME

“The logistics industry in the Middle East should defi nitely welcome this positive development and offer their support to ensure the research centre is successfully implemented. On a personal level, I would be happy to contribute

if required and look forward to discussing this with the SCLG team in Dubai.”Professor Philbert Suresh, Gulf University of Science & Technology (GUST)

INDUSTRY REACTION: GUST

“Business intelligence has become an important tool for any organisation. Having information and statistics available from a leading body such as SCLG is defi nitely a good resource which will help organisations to be more effi cient and effective. CILT welcomes the scheme and looks forward to making a contribution.”Alex Borg, Chartered Institute of Logistics and Transport (CILT)

INDUSTRY REACTION: CILT

Industry statistics to be provided by Supply Chain and Logistics Group (SCLG)

8 JUNE 2009 | www.arabiansupplychain.com

NEWS UPDATE

company’s managing director Tarek Sultan.

Th e country was described as a “central piece” in Agility’s growth plan by Sultan during a

DHL Supply Chain Middle East has reported a solid performance in the fi rst quarter of 2009, with double-digit growth in revenues and earnings before interest and tax (EBIT). “The contract logistics sector has remained robust,” said David Christmas, CEO of DHL Supply Chain in the Middle East. “While it’s essential that we manage our short-term challenges in the current economic climate, in the long-term, we are focused on delivering integrated solutions that make our customers’ lives and their business easier.”

Modern Freight Company (MFC) has supported its environmental initiative with the installation of solar panels in the company’s Jebel Ali Free Zone head offi ce. A total of six panels were mounted in the central offi ce, with the option of further installations at a later date. “We have piloted this technology in the staff canteen and prayer room to reduce our carbon footprint,” explained Ali Saleh, MFC analyst. “If the trial is successful, we will consider the use of solar panels for other parts of our business.”

First Bahrain has appointed Unisono as the brand consultant for its forthcoming warehouse project in Bahrain Investment Wharf (BIW), which involves the construction of 200 storage facilities in close proximity to the new Sheikh Khalifa Port. “With the support of Unisono, we will ensure that a well-planned brand strategy is developed at the centre of this important project,” stated Amin Al Arrayed, general manager of First Bahrain. “Our fi rst warehouses are scheduled for delivery by the end of 2009, with the entire project due for completion in late 2010.”

Aramex has strength-ened its foothold in the telecommunications

sector after securing a warehouse and transportation contract with mobile operator Vodafone Qatar.

Th e logistics company, which announced a similar deal with Wataniya Mobile earlier this year, will provide a combination

A combination of inventory management, retail distribution and value-added services will be provided to support Vodafone in Qatar

Agility has expanded its warehouse network in Singapore to prepare

for future growth in the Asia Pacifi c region, according to the

Aramex handed Vodafone Qatar deal

Singapore Economic Development Board’s Lim Siong Guan with Agility’s Tarek Sultan

Agility signals growth in Asia Pacifi c region

3PL

New contract is the latest in a string of deals for Aramex in the Middle East telecommunications sector

of inventory management, retail distribution, express transpor-tation and value-added services for Vodafone Qatar, in addition to the storage of handsets, SIM cards and marketing material.

“Vodafone Qatar is the latest addition to our portfolio of tel-ecommunication operators and reinforces our ability to service

the needs of this important sector, both on a regional and international basis,” said Iyad Kamal, chief logistics offi cer at Aramex. “We are committed to further enhancing the value proposition for our clients in this segment and will continue to off er the best integrated solutions that create optimal value.”

3PL

NEWS IN BRIEF

recent visit to the eastern city of Changi, where the company has opened a fi ve-storey bonded facility with 6500 pallet positions, bringing its total warehousing space in Singapore to 50,000m2.

“Singapore has been estab-lished as the leading shipping centre and logistics hub for Asia, providing an ideal platform to manage our growing presence in the region,” he explained.

“Our local investments have grown in recent years with the extension of Agility’s Asia Pacifi c head offi ce and the acquisition of Synergy, a leading provider of logistics services to the oil and gas sector. In addition, we are implementing the latest systems and technology to support the growth of demand from regional customers.”


NEWS UPDATE

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Extra storage at Dubai Industrial CityStrong demand from the logistics and construction sectors leads to a signifi cant increase in open storage

Dubai Industrial City has confi rmed plans to expand its open storage

area by 3.5 million square feet to meet demand from the logistics and construction sectors.

STORAGE

Th e industrial complex has 2.8 million square feet of open storage yards, which are being utilised by a handful of tenants in the United Arab Emirates. However, the expansion will

more than double the available space and should be operational within the next couple of months. “Since the fi rst phase of open storage was quickly leased by major clients and demand has continued to escalate, we were encouraged to launch our secondphase on a bigger scale,” said Rashed Al Ansari, vice president of Dubai Industrial City.

A signifi cant portion of tenantshave reportedly leased the outdoor area for the storage of equipment and tools, providing an alternative to the traditional use of indoor warehousing.

“Our facilities were designed as a cost-eff ective solution for such investors,” added Al Ansari. “Th is success is a clear indication of our ability to bridge the short-fall in storage facilities while satisfying the needs of Dubai’s business community.” Five companies have leased the initial phase of open storage at Dubai Industrial City

The General Organisation of Sea Ports (GOSP) will provide land to the fi rst tenants at Bahrain Logistics Zone this month, according to chairman Sheikh Daij bin Salman Al Khalifa. The warehousing project, which will be fully-integrated with Khalifa bin Salman Port, has already received a favourable response from several international companies, including the likes of Danzas and CEVA Logistics. “We are dedicated to attracting world-class tenants and have received the interest of more than 20 companies, both local and international,” stated Al Khalifa.

NEWS IN BRIEF


NEWS UPDATE

prises such as Al Mutlaq United Company,” he added.

Al Mutlaq United Company, which already counts the likes of Agility, Saudi Aramco and Toyota as clients, is planning to market the warehouse manage-ment system to the logistics, fast moving consumer goods (FMCG) and oil and gas industries in Saudi Arabia.

Ehrhardt + Partner Solutions (EPS) has reported a successful response from a recent seminar on warehouse technology, which was attended by students from SP Jain Centre of Management in Dubai. The session included a live demonstration of pick-by-voice solutions and the LFS400 warehouse management system. “Our guests were educated on how small but practical changes to warehouse operations can make a signifi cant improvement to effi ciency levels,” explained Ramon Thoms, regional manager of EPS.

The National Petrochemical Industrial Company (NATPET) has selected the Infor warehouse management system to boost its supply chain operations in Saudi Arabia. The solution was recently implemented by technology fi rm SNS at a storage facility in Yanbu, which is operated by Almajdouie De Rijke Logistics on behalf of NATPET. “This is the fi rst time we have implemented the Infor WMS solution at a petrochemical facility, proving our solutions are adaptable to different environments,” said SNS general manager Mario Ghosn.

Aramex has extended its long-term partnership with technology fi rm BEAT for the development and maintenance of software applications. “We are excited about our growing relationship with Aramex,” said Mohab Murrar, founder and CEO of BEAT. “Our support has continued to mature over the years and a testament to that fact is the signing of this new agreement. We are eager to start work on this critical programme and serve Aramex in ways that provide the innovation, performance and agility.”

Triburg Supply Chain Management (TSCM) has purchased the

Exactus warehouse management system to streamline its Middle East operations.

Th e company, which provides a range of storage and transpor-tation services from a central warehouse in Jebel Ali Free Zone, selected the technology solution

Business Systems Group (BSG) is implementing the system at Triburg’s Dubai facility

Al Mutlaq United Company has signed an agreement to market,

implement and support the ISIS warehouse management system (WMS) in Saudi Arabia.

Th e software solution, which is produced by the Australian tech-nology specialist Microlistics, can be purchased in express and advanced formats, in addition to a separate version for third party logistics providers.

“More of our multinational clients, such as Nestlé, Gulf Warehousing Company and Th e CEVA Group, are looking to install ISIS-based systems out-side of Australasia and Asia,” said Mark Dawson, managing director of Microlistics.

“We want to provide the best possible support to the Saudi Arabian market and believe this should be done with local enter-

Triburg orders Exactus WMS solution

Saudi Arabia is presenting global WMS suppliers with opportunities for future growth

Al Mutlaq signed as ISIS distributor in KSA

TECHNOLOGY

Logistics company invests in technology upgrade to support its business growth in the Middle East region

to boost its performance levels and support the forthcoming launch of a second facility in the United Arab Emirates, scheduled for later this year.

“During the selection process, we researched the market and looked at the various systems and vendors that operate in the Middle East,” explained M.B. Mallya, managing director of

TSCM. “It became clear that Exactus was the obvious choice, especially since its range of prod-ucts were intuitive, user-friendly and most importantly, provided a single integrated platform for warehouse, freight, fi nance and transport management. It was also compliant with Jebel Ali Free Zone documentation.”

Th e warehouse management system will be implemented by Business System Group (BSG), a regional partner of Exactus with a strong presence in the United Arab Emirates.

“We are confi dent that TSCM will see immediate benefi t through greater control and insight across their entire organisation,” said Raheel Khan, regional director at BSG. “Our company is focused on adding value to customer operations in the most effi cient and aff ordable way possible. Th erefore, we are very excited by our partnership with this 3PL leader.”

TECHNOLOGY

NEWS IN BRIEF

“We are in the business of providing total solutions for the supply chain world,” said Tarig Al Mutlaq, managing director for Al Mutlaq United Company.

“Th e ISIS technology has proven that it can handle customer oper-ations varying in size, magnitude and complexity, and a variety of industries with a quick return on investment.”

SPAN-Group is the leading provider of total supply chain solutions for companies operating in the Middle East since 1989. Headquartered in Dubai, with

regional offices in Beirut and Doha, the group strives to provide the best-of-breed solutions through its Facility Engineering & Design, Warehouse Storage

Solutions, Supply Chain IT & Integration Systems and Industrial & Office Furnishing Solutions.

Dubai, United Arab Emirates - Showroom #4, Al-Naboodah Complex, Nad Al Hamar Rd, Ramool, P.O. Box 55397, Dubai, U.A.E

Tel: (+971) 4 289 5111 - Fax: (+971) 4 289 5110 - Email: [email protected] - website: www.span-group.com

Keep your operations

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NEWS UPDATE

Exhibitors include SSI Schaefer, Business Systems Group (BSG), FAMCO, Interroll and SPAN Group

he success of this year’s Materials Handling Middle East exhibition has supported claims that the regional logistics industry is approaching a recovery from the global recession, according to organiser Epoc Messe Frankfurt.

Companies such as SSI Schaefer, Business Systems Group (BSG), FAMCO, Interroll, CHEP Middle East and SPAN Group have reported a positive response from the trade show, which was held last month at Dubai International Exhibition and Convention Centre.

“Th is year’s event has been a record-breaking success, with more than 200 exhibitors taking part from 20 countries around the world. Th is marks a tremendous increase of 42% in international exhibitors compared to the previous exhibition in 2007,” commented Elisabeth Brehl, managing director of Epoc Messe Frankfurt.

“Our success in 2009 can be attributed to the Dubai Government’s investment in projects such as Dubai Industrial City and Dubai

TLogistics City, which have helped to fuel a massive increase in demand for material handling products and created an exciting market, espe-cially for foreign exhibitors who are keen to tap into a local rebound from the economic slowdown,” she added.

Th e three-day exhibition was inaugurated by His Highness Sheikh Ahmed Bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority and chairman of the Emirates Group, who later visited the booths of numerous exhibitors and discussed the local market for material handling products.

“Th e transportation and logistics market in the United Arab Emirates is currently one of the most dynamic in the world,” explained Sheikh Ahmed.

“Its future advancement will be fuelled by innovative solutions such as the Materials Handling Middle East exhibition, along with a number of large-scale developments that are marking the country’s leadership in this important sector.”

Solid performance atMaterials Handling Middle East

Geoff Wheatley from SSI Schaefer

The team from Business Systems Group (BSG)

His Highness Sheikh Ahmed Bin Saeed

Al Maktoum inaugurates the show

13

NEWS UPDATE

increase in exhibitors, compared to the previous Materials HandlingMiddle East exhibition in 2007

42%

fer

The LOC8 team

David Dronfi eld talks to visitors at the FAMCO stand The team from Ehrhardt + Partner Solutions (EPS)

CILT’s Alex Borg and Mary Jacob John

Interroll’s Bülent Caliskan and Klaus Blumenschein



NEWS UPDATE

Royal Jordanian has announced a partnership with MK Airlines todevelop a portfolio of airfreight services in Jordan and the Levantarea. The agreement was signed by both parties at the recent World Economic Forum, with a focus on complementing each other’s route networks, cargo handling equipment and mutual expertise. “We are looking forward to working with MK Airlines and will continue to look for further cooperation in this vital sector,” commented Samer Majali, CEO, Royal Jordanian.

Kuehne + Nagel has vowed to continue its expansion in the Middle East, despite a global slowdown in the logistics industry. The company has invested millions of dollars to develop its regional presence and become a leader in the contract logistics market. “As one of the fi rst players to reserve space at Dubai Logistics City, we believe the emirate has massive potential to become a dominant force in the global logistics arena,” said Thorsten Meincke, senior vice president of sales and marketing, Kuehne + Nagel.

SSI Schaefer is holding its latest Automation Day in the Middle East this year, following a series of similar events around the world. The company, which specialises in material handling equipment, has organised the complimentary event in Dubai to highlight the latest developments in order-picking systems and dynamic warehousing. “This is the second Automation Day that we have organised in this region and we look forward to hosting the event in December 2009,” stated Geoff Wheatley, managing director in the Middle East and Africa.

Th e Landmark Group, one of the Middle East’s leading retailers,

has contracted SPAN Group to design and install a compre-hensive storage system for its warehousing complex in Dubai.

Th e large-scale facility, which was recently opened in Jebel Ali Free Zone, consists of four separate warehouses with 48,000m2 of storage space for the entire portfolio of Landmark

Landmark Group has opened a storage complex with four separate warehouses to handle its supply chain operations in the region

Eros Group has ex-panded its regional warehouse operations

to cope with growing demand for consumer electronics in the Middle East.

Th e family-owned company, which represents a growing number of household brands such as Hitachi, Samsung and BenQ, opened its 13,000m2 warehouse in the south of Jebel Ali Free Zone last month.

“Since our humble beginnings in 1967, Eros Group has grown and diversifi ed to become a bil-lion dirham company. One of the main reasons for this success

SPAN contracted by Landmark Group

Products from Hitachi, Samsung and

BenQ will be stocked at the Eros facility

Eros opens fl agship warehouse in Jebel Ali

WAREHOUSE

Jebel Ali Free Zone warehouse to be equipped with a customised package of material handling solutions

brands, including Babyshop, Shoe Mart and Home Centre.

“Following a careful analysis of the Landmark Group’s product range, which includes fashion items, furniture and household goods, we submitted a cost-eff ective solution that makes optimum use of storage space,” explained Sabri Al Sabra, sales manager at SPAN Group.

Th e package off ered by SPAN included a number of diff erent

components, such as material handling equipment from Jung-heinrich and a racking system that accommodates a volume of 56,000 CBM.

“However, the real highlight is a multi-tier steel structure mezzanine, which has been cus-tom made to accommodate the diff erent sizes of pallets,” added Al Sabra. “Th e system is perfect for utilising the 12 metres of vertical space that is available.”

WAREHOUSE

NEWS IN BRIEF

was a focus on developing an infrastructure that supports the retail sector and we are therefore proud to open our largest storage facility to date,” stated Deepak Babani, chief executive offi cer, Eros Group.

“Th e main challenge with such a large facility, which is more than double the size of our fi rst warehouse, is optimising the speed of operations and effi -ciency of inventory management. We have addressed these issues by incorporating a fully-fl edged warehouse management system to automate all the transactions and operations,” he added.


NEWS UPDATE

Event speakers predict a Middle East recovery from the global recession by the end of 2009

he Supply Chain and Logistics Group (SCLG) hosted its second annual summit at the Westin Hotel in Dubai last month, attracting over 200 delegates from companies such as DP World, Emirates SkyCargo, Aramex and SPAN Group.

Th e event, which was endorsed by the Dubai Chamber of Commerce & Industry, addressed a number of pertinent topics for the logistics industry, including a prediction that the Middle East will commence its recovery from the global recession by the end of 2009.

“Th e performance of the Middle East logistics industry is closely linked to the amount of trade that is happening in the region and around the world. Since the fi nancial crisis has aff ected a large number of diff erent industries, we’ve experienced a reduction in imports, exports, transhipments and local distribution,” explained Dr Kanak Madrecha, a member of SCLG’s regional development committee.

“However, the situation is expected to normalise within the next six months to a year. In the meantime, we believe the the logistics

Tindustry needs to focus on increasing its effi ciencies and reducing its operational costs, in addition to working with other industries to survive these challenging times.”

Th e theme of this year’s event was ‘Strategies for Business Excellence’and other guest speakers included the likes of Michael Proffi tt (former chief executive offi cer of Dubai Logistics City), Atiq Juma Nasib (Dubai Chamber of Commerce & Industry) and Cedwyn Fernandes (Univer-sity of Middlesex, Dubai).

“Th e inaugural summit in 2008 was a great success and SCLG felt it was important to provide our members with another opportunity to network with each other and discuss topics such as surviving the global downturn,” continued Madrecha.

“We attracted over 200 delegates this year, compared to 150 at the previous event, with people arriving from the United Arab Emirates, Saudi Arabia, Hong Kong, India, Amsterdam and the United Kingdom. A follow-up event is already being planned for 2010 and I’m confi dent the scale will be even bigger than before,” he added.

Record attendancefor SCLG annual summit

delegates from companies such as DP World, Emirates

SkyCargo, Aramex and SPAN Group attended the second Supply Chain and Logistics Group summit

200

Michael Proffi tt, former Dubai Logistics City CEO

Members of the SCLG leadership team with representatives

from DP World and Dubai Chamber of Commerce & Industry


NEWS UPDATE

(Left to Right) Dubai Chamber Offi cials with Dr Kanak Madrecha (Dubai World), Dr Donald Tham (Canada) and Dr Dermot Carey (Ireland)

Dubai Customs Offi cials with Jassim Saif (Emirates Sky Cargo)

(Left to Right) Dr Ernst Schmied (Austria), Mike Lee (347 Logistics), Michael Proffi tt, Dr Cedwyn Fernandes (Middlesex University) and Andreas Dur (Xvise)


EDITOR’S CHOICES

SPOT POLL

Do companies have a lot of choices when selecting a warehouse management system in the Middle East?

24%Yes, there are plenty of options available

Th e global logistics industry has experienced a slowdown in mergers and acquisitions (M&A) during

the fi rst quarter of 2009, according to a trade report by PricewaterhouseCoopers (PwC).

Th e publication, which is titled ‘Intersections: Mergers and Acquisitions’, has revealed that 18 deals

were announced between January and March this year, each with a minimum disclosed value of US$50

million. In contrast, the fi gure was considerably higher during the previous year, with 43 deals being

announced in the fi rst quarter of 2008.

“Although the overall number of deals has dramatically reduced in the fi rst quarter, M&A activity in the

transportation and logistics industry as a whole can still be considered robust, especially when compared

to this sector’s activity over the past 20 years,” said Klaus-Dieter Ruske, PwC’s global transportation

and logistics sector leader. “While this is a positive sign, we believe that fi nancing and overall economic

sentiment will continue to discourage a rebound in transport and logistics deals. As such, a signifi cant

increase in M&A activity is unlikely to occur until we see substantial recovery in global economies.”

Fall in mergers for global logistics industry

The online home of:Still hungry for more news?

for regular updates on the Middle East logistics industry

ONLINE INTERVIEW

Strong Association Dr Kanak Madrecha, committee member of the Supply Chain and Logistics Group (SCLG), refl ects on the trade association’s recent Global Strategy Day in Dubai and provides details on a membership drive for the remainder of 2009.

MARKET FOCUS

Cargo CentralTo celebrate the Middle East’s transformation into a superhub for the global airfreight sector, ArabianSupplyChain provides a rundown of the leading facilities from countries such as Saudi Arabia, Qatar and the UAE.

MOST TALKED ABOUT LOGISTICS COMPANIES ON ARABIANSUPPLYCHAIN.COM

Aramex

Emirates SkyCargo

Jebel Ali Free Zone Authority (Jafza)

Agility

Gulf Agency Company (GAC)

MOST POPULAR HEADLINES

1 Regional freight down bya fi fth, says Aramex boss

2 Plans revealed for Jeddah airport cargo village

3 Agility considers buying ‘companies in distress’

4 Captain saves Dubai vessel from pirates

5 Jafza hosts top-level delegation from France

WEBSITE STATISTICS

ONLINE HIGHLIGHTS

Maybe, although the market will benefi t from a

wider selection

No, we’re lagging behind other parts of

the world28% 48%


FULLSTEAMAHEAD

With a staggering US$800 million investment to develop its Middle East operations, CEVA Logistics is the latest global powerhouse to cement its long-term presence in the region.

COMPANY PROFILE

21

COMPANY PROFILE


ne year seems like a relatively short period of time in the business world. However, as the global recession has cruelly proven, the switch from boom to bust can occur at the blink of an eye. Back in June 2008, for example, the Middle East was

considered a land of endless opportunity for warehousing and transportation providers, with double-digit growth a regular occurrence throughout the region. Unfortunately, the fi nancial crisis has threatened to jeopardise these glory days, and whilst the market has not actually crashed, most companies are erring on the side of caution with their development plans.

Th ere are, of course, exceptions to the rule and for the more courageous members of the logistics fraternity, it’s important to remember that the higher the risk, the higher the potential return. Th is philosophy seems particularly apt for CEVA Logistics, a global leader in the fi eld that plans to revolutionise its Middle East operations over the next fi ve years with a multi-million dollar investment.

At present, the Netherlands-based company has a network of 19 offi ces in the Middle East and North Africa (MENA) territory, providing its customers with everything from freight forwarding and contract logistics to transportation and distribution management. Th e bulk of activity has traditionally centred on the United Arab Emirates, which hosts a total of nine offi ces and has been selected as the catalyst for CEVA’s regional expansion.

“We’ve been present in the Middle East for two decades now and this region has been identifi ed as a leading area of growth for our global operations,” states Gianfranco Sgro, president of CEVA Logistics in Southern Europe, Middle East and Africa. “To support this expansion, around US$800 million will be invested to develop our infrastructure, technology and people, with an initial focus on the United Arab Emirates. However, it’s important to be realistic about these goals, because competition is strong in the regional market and customer volumes have continued to decline with the global recession. We will need to concentrate on organic growth to off set this situation.”

Benefi ting from a generous budget, the company has revealed plans to signifi cantly bolster its warehousing space in Dubai from 38,000m2 to approximately 163,000m2 by the end of the year. Th is includes a 65,000m2 facility that is scheduled to commence operations in October 2009 and will be located on a 123,000m2 plot of land in Jebel Ali Free Zone South.

“Our customer base has signifi cantly expanded in the Middle East over the past year and we’ve experienced strong demand for the oil and gas, industrial, automotive, fast moving consumer goods (FMCG) and technology sectors,” reveals Sgro. “Th e publishing market is also emerging in this part of the world, especially for books and magazines in countries such as the United Arab Emirates and Saudi Arabia.”

CEVA has also placed a premium on employing a highly-skilled and dedicated workforce to support its growing operations in Dubai, with employee numbers expected to reach approximately 900 staff by the end of the year. “A signifi cant amount of our regional budget has been allocated to human resources. In fact, we are investing a higher amount in people than in something like a trucking fl eet at the moment, because our customers need a logistics partner with highly-skilled individuals to support them in these diffi cult times,” continues Sgro.

Th e company’s recruitment drive has focused on both expatriates and local professionals, with a number of career development incentives being introduced to ensure the right

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different place> Ignoring the problem

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By analysing, developing, calculating... And quite often, by thinking in unusual directions. Together, we can look at all the many possibilities and come up with the logistics solution that gives you that competitive edge.

22

people are joining the team and progressing up the corporate ladder.

“We want our workforce to be fresh, agile and fl exible. Th ere is no space for compromise,” explains Sgro.

“It’s important to fi nd the best people for the job and retain them in the long-term. At the moment, we are in talks with a number of universities in the Middle East to establish a partnership, where CEVA employees can enrol onto specialist courses and develop their skills base. A member of

staff from this region has also been trained abroad for 12 months and recently came back to the Middle East after completing his tuition.”

Looking at CEVA’s scorecard in the fi rst quarter of 2009, it seems the recent investments have already started to pay dividends in the Middle East. In a short space of time, the company has secured contracts to handle the storage and transportation of fi tness equipment for Technogym, sports gear for GO Sport, and trendy footwear for Iqdam International, the regional agent for Croc Shoes.

“Th e general response from the local market has been overwhelming and companies are genuinely pleased

that a global company such as CEVA is developing its regional presence on such a large scale,” says Sgro. “Of course, with the global recession, its diffi cult to forecast our fi nancial performance this year, although I know there has been consistent growth on a month-to-month

basis in the fi rst quarter of 2009. Th e situation is fragile and we‘re still being cost-conscious, although I believe the recovery in the Middle East will be smooth and CEVA will be fully prepared for the inevitable upswing in market conditions.”

COMPANY PROFILE

“We are investing more in people than our trucking fl eet at the moment”

“We investing more in people thanour trucking fl eet at the moment”

JUNE 2009 | www.arabiansupplychain.com

• CEVA Logistics was established in August 2007 following a merger between the former TNT Logistics and Eagle Global Logistics

• On a global level, the company has 50,000 employees operating 1200 sites in over 100 countries worldwide

• CEVA’s vision is to become the most admired company in the supply chain industry with revenues of US$13.5 billion by 2010

• The company has 19 offi ces across the Middle East and North Africa (MENA) region, which are centrally managed through its Dubai headquarters

• A number of core markets have been identifi ed in the Middle East, including the automotive, technology, industrial, retail, oil and gas, publishing, aerospace, and healthcare sectors

• There are 368 CEVA employees in Dubai, which are expected to reach 900 by the end of the year

• The company’s warehousing space in Dubai is also increasing this year, from 38,000m2 to 163,000m2 as part of a major regional expansion

• Recent customers in the Middle East include Technogym, GO Sport and Croc Shoes

COMPANY PROFILE

The CEVA Middle East team (from left to right) Wade Thompson, Gianfranco Sgro and Shamsudeen Ahmed

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follow our lead

Honeywell offers complete data collection solutions designed to meet your needs.

Two of the leading companies in the automatic identification and data capture (AIDC) industry—Hand Held Products and Metrologic Instruments—recently combined to form Honeywell Scanning & Mobility. Together, we are pleased to deliver one of the broadest

product lines in the industry. Our innovative bar code scanners and rugged mobile computers deliver solutions designed to reduce costs and improve efficiency, resulting in an impressive return on investment. Follow our lead and realize your full potential for profitable growth.

For additional information, please visit www.honeywell.com/aidc/profitability, or call +31 40 2901 600.

© 2009 Honeywell International Inc. All rights reserved.

ogistics managers are facing the arduous task of boosting their supply chain effi ciencies while reducing the overall cost of operations. It’s a chal-

lenging scenario and, with limited budgets on hand, the timing is perfect to scour the technology market in search of cost-cutting solutions. After all, even the smallest of improvements can produce a signifi cant dividend on your company’s bottom line.

To support this movement, the latest developments in warehouse management systems, RFID technology, and automated storage handling have lured the Middle East logistics industry towards an electronic era,

L

www.arabiansupplychain.com | JUNE 2009 25

leading to the gradual (and ongoing) demise of manual processes. In particular, the mobile computing sector has experienced a period of continued growth in the region, with estimates that annual demand from customers has increased by approximately 20% over the past fi ve years.

“Th e penetration of mobile computing in the Middle East logistics industry has been extremely high in recent years and this trend is expected to continue in the future,” explains Parminder Kaur Saini, industry analyst at research fi rm Frost & Sullivan. “Although the global recession has led to budget cuts around the world, the demand for mobile devices in regional warehouses is being driven by the need for organisations to have the best systems in place. Manual procedures are no longer desirable for companies that want to lead the fi eld.”

Th e increased focus on mobility in the supply chain has translated to a range of new products and applications, each designed to improve the productivity of companies. In theory, the implementation of such devices will provide a user with remote access to the likes of warehouse management systems and customer relationship management software, therefore boosting the quality, speed and accuracy of their daily operations. Th is also has a domino eff ect by improving a company’s customer service levels and, ultimately, their business profi tability.

“Th ese devices are capable of increasing the visibility of supply chain operations and minimising a company’s losses due to theft, management ineffi ciencies and damages,” continues Saini. “Th is is true for companies that manage their supply chain inhouse or 3PL companies that operate a network of warehouses. However, the success factor is

dependent on selecting the right product and that is sometimes a challenge.”

A number of factors should be considered when selecting a mobile computer, according to Saini, especially with the growing list of suppliers that are targeting the Middle East. Th e initial step is completing an evaluation into current procedures, including the strengths and weaknesses, allowing a company to highlight its most prominent areas for improvement. Once this is accomplished, it’s time to search for suitable products – taking into account everything from system integration, functionality and ergonomics to ruggedness, durability and the vendor’s regional presence.

“Th is region has emerged as a lucrative market for mobile computing and a growing number of warehouses will soon be completed in developments such as Dubai Logistics City, Bahrain Logistics Zone and Prince Abdul Aziz Bin Mousaed Economic City, which will help to fuel demand even further. Th is explains the presence of global manufacturers such as Intermec, LXE, Motorola, Datalogic, Psion Teklogix and Honeywell Scanning & Mobility, each off ering something unique for the customer,” says Saini. “When researching the market, it’s important to remember your budget at all times and clearly list your current requirement and goals, in addition to those that are expected in the future too. Suppliers are keen to win your business, especially in the current environment, so don’t be afraid to ask lots of questions, ask for references and test the products for your-self. Such extensive research is necessary to ensure a company has chosen the right product for their operations and can lead to a faster return on investment (ROI).”

M ILE MARKETHow can warehouse operations in the Middle East benefi t from the latest developments in handheld computing?

WAREHOUSE TECHNOLOGY



What range of handheld computers does Datalogic provide in the Middle East? We’re focused on rugged mobile computers and produce a range of products for warehouse and courier operations, in addition to retail processes.

What makes your products different?Datalogic Mobile computers are tested in harsh environments to minimise the cost-of-ownership. This means our customers can eliminate their downtime and save on hidden costs.

How strong is demand for handhelds in the Middle East?Demand is strong in this region and continues to increase, especially in utility and other outdoor applications.

Is there a lot of competition in the local market? It’s very competitive in the Middle East, although Datalogic has an impressive track-record of growth that has been supported by a well-established network of partners in the region.

Which companies are using your products in this region? Our products are purchased by a growing number of small and medium enterprises, in addition to big companies in the retail, logistics, healthcare and telecommunication industries.

What range of handheld computers does LXE provide to companies in the Middle East region? We manufacture a complete range of rugged mobile devices, in addition to a unique range of wearable computers and scanners.

What makes your product different to others in the market?Our products can be operated in the most demanding environ-ments, such as cold stores, warehousing facilities and shipping ports. In addition, the same benefi ts are offered across our range of products. For example, mobile computers are equipped

with LXE tough-talk, which is a multi-vendor solution that allows customers to purchase a voice picking solution in the future without having to invest in new hardware.

How strong is demand for handhelds in the Middle East?Companies want real-time visibility in their supply chain, which is pushing demand for mobile computers in this region.

Is there a lot of competition in the local market? Yes, the Middle East is defi nitely a competitive region, although we are confi dent that LXE’s range of mobile products can fulfi l the unique requirements of the regional market.

What range of handheld computers does Motorola Enterprise Mobility provide in the Middle East? We provide the widest range of Enterprise Digital Assistants (EDAs) in the industry, including rugged and non-rugged options that have functionalities such as digital cameras, two-way radio, GPS and barcode scanning.

What makes your products different?Motorola offers a ‘one stop’ solution that covers a wide range of activities in the supply chain. Our products also come with a comprehensive support service.

How strong is demand for handhelds?Demand has increased in recent years, which has been fuelled by economic growth in the Middle East, with more and more companies expanding their operations.

Is there a lot of competition in the local market? Customers are looking for value in terms of increased effi ciency, cost savings and customer satisfaction. Although a growing number of competitors are operating in this region, the market has continued to expand and Motorola products are being used in a wide range of industries, so the situation is healthy.

What range of handheld computers does Honeywell provide in the Middle East? We provide the entire range of Optimus and Dolphin handheld computers, from entry-level devices to industrial-grade mobile computers.

What makes your products different?Our devices are rugged and can survive the harshest of conditions. At the same time, they are ergonomic and recognised for their high-performance and reliability.

How strong is demand for handhelds in the Middle East?Despite the economic situation, we have noticed that demand is steady for mobile computers in the Middle East, especially from companies in the logistics, healthcare and government sectors.

What are your market predictions for the future?Honeywell has forecast a period of healthy growth in the Middle East. We are looking to develop our market share in a number of different verticals, such as logistics, government and retail. In addition, I believe it’s important to boost our presence in the region and bring our solutions closer to local customers and partners. This will also improve our ability to provide a greater deal of support on a local level.

DATALOGIC MOBILE Fausto Mamprin, Middle East area manager

LXERudy Rubeiz, business development manager

MOTOROLA ENTERPRISE MOBILITYTarek Hassaniyeh, regional sales manager

HONEYWELL SCANNING & MOBILITYAlaa Nawash, Middle East sales manager

What range of handheld computers are provided by Intermec for companies in the Middle East region? Intermec has provided a range of handheld computers in the Middle East for over 20 years, which are aimed at a very different market to products such as offi ce computers or PDAs. Our typical user could be a warehouse packer, courier agent, postal delivery person, fi eld service engineer, van sales driver or utility meter reader. What these people have in common is the need to use handheld computers for multiple business operations. Our products are rugged and manufactured to strict certifi cations, with a comprehensive testing process that covers everything from freezing tem-peratures to high humidity to drops onto concrete fl oors. This underlines the fundamental issue that mobile computers should be able to survive the rigours of supply chain operations in the Middle East.

What makes your product different to others?Intermec has been manufacturing handheld computers longer than any company and we have an impressive track record of innovation. For example, we were the fi rst manufacturer to offer four radios in a single handheld computer namely Bluetooth, GPRS, WiFi and GPS. We also produced the fi rst mobile computer with RFID read capabilities. In addition, we supply

a complete solution, which includes peripherals such as printers that are normally required along with the handheld terminal. How strong is demand for handhelds in the Middle East?My estimate is that demand for handheld products across the Middle East has grown at an average rate of 20% per annum, while Intermec’s average growth has been 40% over the past fi ve years. The handheld computer business has only recently moved from a niche market into the mainstream of the IT industry. There are

a lot of developments happening and I believe we’ve reached an infl ection point in terms of market and user acceptance. In other words, there is now suffi cient experience, knowledge and confi dence within organisations to appreciate they cannot effectively operate their business without handhelds.

Is there a lot of competition in the local market? The bulk of competitors fail to understand the requirements of customers, so a large portion of our business comes from companies that have been sold equipment that is not suitable for harsh environments or the rigorous use of non-offi ce workers. The key is showing a suitable return on investment, which takes years of experience. Intermec brings this consultative approach to customers, which has been key to our success.

INTERMECColin Summers, regional manager, Middle East, India and Africa (MEIA)


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B ER’S GUIDEWhat are the factors that should be considered when purchasing a handheld computer?

KEYPADA common problem with mobile workers is that, over time, the keyboard of their handheld device will become a shameful victim to the constant grinding and scraping that occurs in warehouse facilities. As a result, the keypad’s contents will start to fade and the computer will be increasingly diffi cult to operate. A superior product will incorporate a number of measures to avoid this happening, such as protective coatings or the use of coloured plastics instead of painted markings.

SIZEThe latest generation of handheld computers are generally designed with a modern and compact design, especially when compared to their counterparts from the early 2000s, making them easier to hold and lighter to carry. Of course, there is still a lot of variation in size and weight, which is normally dependent on the number of features that have been included in the computer.

IMAGERS & SCANNERSA number of scanners are available with handheld devices and their suitability is dependent on the customer’s specifi c warehousing operations. For example, with a high racking system, the imager must be able to read at long distance. Also, an increasing number of companies are using 2D barcodes and RFID technology, which are not compatible with all devices.

BATTERYSelecting a handheld computer with substandard batteries will have a serious impact on your supply chain operations. For example, imagine a warehouse facility where operators are forced to recharge their mobile devices in the middle of a shift, leading to expensive delays and a higher risk of human error. There are a number of factors that contribute to power consumption, from the speed of data processing to the usage of colour screens, so remember to have a discussion with vendors about your specifi c requirements.

DISPLAYHandheld computers should have a colour screen that is clear and easy-to-read, even in the harsh conditions of Middle East warehouse facilities. Unfortunately, it’s normally a challenge to improve the screen’s durability without infl uencing its

optical quality. For example, a growing number of companies have started to use

a protective layer of plastic or glass on the screen, although the brightness and overall visibility will almost certainly be reduced.

OUTER SHELLThe casing of a handheld device will normally infl uence the computer’s durability. There are two primary models on offer: the eggshell and the sandwich. The eggshell design is a one-piece structure and is best for devices that will operate in the most extreme outdoor and indoor conditions, such as warehouses, distribution centres and ports. The sandwich design is a multiple-piece structure, which is suitable for less extreme environments.

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Conveniently packaged to help you deliver more than packages.It’s small, lightweight, rugged and will keep your business moving. It’s the new CN50mobile computer from Intermec. The CN50 features flexible high-speed 3G+ WWAN Radio and embedded GPS to facilitate crucial information transmission and effective routing. Plus, Enhanced Mobile Document Imaging (eMDI) provides streamlined in-field document capture—without the additional cost and inconvenience of another device. All of this adds up to a tool that enables your business to improve efficiency, while offering new services to stay productive.

For further information about the CN50 please visit www.intermec.com/cn50 or contact us at +971 4 3911940 or [email protected].


SUPPLY CHAIN AND TRANSPORT AWARDS 2009


he third annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this month, with

over 200 fi gureheads from the Middle East logistics industry in attendance.

Hosted at the Mina A’Salam hotel in Dubai, the prestigious ceremony was organised in association with Materials Handling Middle East exhibition and featured 17 categories in total, which covered the entire spectrum of supply chain and transportation activities.

“Since its inception in 2007, the Supply Chain and Transport Awards have emerged as a leading event for the Middle East logistics industry. Given the market challenges that our industry is facing on a global level at the moment, this was the perfect opportunity to remember those companies and individuals that continue to achieve excellence on a daily basis,” says Issa Baluch, CEO of Swift Global Logistics, who served his third term on the judging panel this year, alongside Captain Mansoor Ghafoor (CEO of STALCO Group and president of National Association of Freight and Logistics), Dr Kanak Madrecha (senior manager of Dubai World and founding member of the Supply Chain and Logistics Group), Cedwyn Fernandes (MBA programme coordinator at Middlesex University Dubai) and Sebastian Th omas (logistics manager of Al-Futtaim Retail).

Th e panel also welcomed the addition of industry icons Salma Hareb (chief executive offi cer of Economic Zones World) and Ali Al Jallaf (vice

T

president of Dubai Airports cargo unit). “Award ceremonies in general are important in defi ning the benchmark for excellence and separating the outstanding achiever from the rest of the group,” continues Baluch. “Th ey also provide recognition to the best performers in the fi eld, while inspiring others to emulate their success.”

Gulf Agency Company (GAC) scored an impressive hattrick at this year’s event, collecting the trophies for 3PL Service Provider of the Year and Corporate Social Responsibility (CSR) of the Year,

in addition to Outstanding Achievement of the Year.

Other winners included TNT Express for Express Logistics Provider of the Year, Unilever for FMCG Supply Chain of the Year, and Ras Al Khaimah Free Trade Zone for Industrial Area of the Year. Also continuing their winning streaks, Dubai Cargo

Village was declared Air Cargo Hub of the Year, while Dubai Drydocks World was named Shipyard of the Year – making them the only companies that have been selected as winners in their respective categories for three consecutive years.

“Th e standard of nominations at this year’s Supply Chain and Transport Awards was very impressive, highlighting the opportunities that are constantly being presented to ambitious individuals and companies in the Middle East logistics industry,” says Walid Akawi, CEO of ITP Publishing Group, which organised the event. “We look forward to 2010, when the SCATA ceremony will return once again to reward the industry for excellence.”

“Award ceremonies are important in defi ning the

benchmark for excellence”

“Aw“ceremonies are important indefi ning the

nchmark for excellence”

EXPRESS LOGISTICSPROVIDER OF THE YEARTNT Express

3PL SERVICE PROVIDER OF THE YEARGulf Agency Company (GAC)

FMCG SUPPLY CHAIN OF THE YEARUnilever

CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE)Emirates SkyCargo

CARGO OPERATOR OF THE YEAR(CARGO AIRLINE/CHARTER)Cargolux

AIR CARGO HUB OF THE YEAR Dubai Cargo Village

PORT AUTHORITY & TERMINAL OPERATOR OF THE YEARGulftainer

SHIPPING AGENT OF THE YEARRais Hassan Saadi (RHS)

SHIPPING COMPANY OF THE YEARMaersk Line

SHIPYARD OF THE YEARDrydocks World - Dubai

TRAINING AND EDUCATIONPROVIDER OF THE YEARSP Jain Centre of Management

MATERIAL HANDLINGPROVIDER OF THE YEARSPAN Group

TECHNOLOGY PROVIDER OF THE YEAREhrhardt + Partner Solutions (EPS)

INDUSTRIAL AREA OF THE YEARRas Al Khaimah Free Trade Zone

CORPORATE SOCIALRESPONSIBILITY AWARDGulf Agency Company (GAC)

OUTSTANDING ACHIEVEMENTOF THE YEARGulf Agency Company (GAC)

HALL OF FAME AWARDHis Excellency Sultan Ahmed Bin Sulayem (Dubai World)

2009 AWARD WINNERS



WINNER: TNT EXPRESS“It’s a great honour to receive the Supply Chain and Transport Award for Express Logistics Provider of the Year. There is a lot of competition in our sector and this award has truly recognised the hard work of TNT’s entire workforce in the Middle East. We

have continued to invest in this important region and our customer feedback has been particularly strong this year, which is a real encouragement. The team could not be happier to now receive this prestigious accolade from the industry.”Bryan Moulds, UAE country manager, TNT Express

Previous winners: DHL Express (2007 and 2008)

LOGISTICS EXPRESS LOGISTICS PROVIDER OF THE YEAR

WINNER: GULF AGENCY COMPANY (GAC)“As supporters of the Supply Chain

and Transport Awards, we are really proud to receive the trophy for 3PL Service Provider at this year’s ceremony. GAC employees have always displayed a great deal of passion and dedication when it comes to providing our customers with excellent service in the 3PL sector. On behalf of everyone at the company, I would like to thank the judges and organisers for acknowledging our continued achievements in the Middle East.”Phil Showering, general manager of logistics,Gulf Agency Company (GAC)

Previous winners: Agility (2007), Aramex (2008)

LOGISTICS 3PL SERVICE PROVIDER OF THE YEAR

WINNER: UNILEVER “Unilever has experienced a period of change with our supply chain operations in the Middle

East, with a particular focus on ensuring that the storage and transportation process is environmentally friendly. There is a certain degree of misunderstanding in the logistics industry about the cost of adopting such measures, although Unilever has proved that ‘green’ supply chains can actually save money and boost effi ciency at the same time. We are confi dent this award will further highlight this message to other companies in the fi eld.”Altug Kucukoglu, works director of Unilever

Previous winners: Al-Futtaim Retail (2007), Nikai (2008)

LOGISTICS FMCG SUPPLY CHAIN OF THE YEAR

SCATA 2009 LOGISTICS AWARDS

CATEGORY SPONSOR

CATEGORY SPONSOR

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WINNER: RAIS HASSAN SAADI (RHS)“The Supply Chain and Transport Awards are considered a prestigious ceremony in

the Middle East, so receiving this trophy in the Shipping Agent of the Year category is a great achievement for Rais Hassan Saadi. Our operations have grown in leaps and bounds over the years and despite the challenges that the industry is facing on a global level, we have continued to perform well and remain confi dent about the Middle East’s ability to weather the storm. Congratulations to ITP Business for hosting this successful event and thanks to the judging panel for selecting the RHS Group.”Steven Lai, business development manager of Rais Hassan Saadi (RHS) Group

Previous winners: GAC (2007), Maersk Kanoo (2008)

SEA FREIGHT SHIPPING AGENT OF THE YEAR

WINNER: MAERSK LINE“Although the global shipping industry is facing a number of challenges at the moment, the Middle East is expected to develop faster than any other market in the entire Maersk network. I believe this award for Shipping Company of the Year will therefore

encourage the whole team to continue their pursuit of excellence and support the company’s regional growth plans. We actually won this category at the inaugural Supply Chain and Transport Awards in 2007, followed by the Shipping Agent of the Year award in 2008, so I guess we have achieved a successful hattrick in 2009.”Robert Uggla, managing director, Maersk Line UAE

Previous winners: Maersk Line (2007) , National Shipping Company of Saudi Arabia (2008)

SEA FREIGHT SHIPPING COMPANY OF THE YEAR

WINNER: GULFTAINER“Gulftainer is pleasantly surprised to receive this award for Port Authority & Terminal Operator of the Year. In the past, there has been a strong focus on Dubai as a leading gateway for the maritime sector. However, thanks to this decision from the judging panel, it’s clear that people are acknowledging that other facilities in the United Arab Emirates have infrastructure that is faster, cost-effective and more productive for their operations. We will defi nitely celebrate this moment and would like to extend our thanks to everyone at the Supply Chain and Transport Awards.”Peter Richards, director and general manager, Gulftainer

Previous winners: DP World (2007 and 2008)

SEA FREIGHT PORT AUTHORITY & TERMINAL OPERATOR OF THE YEAR

SCATA 2009 SEA FREIGHT AWARDS

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WINNER: DRYDOCKS WORLD – DUBAI“Drydocks World has developed a solid partnership with the Supply Chain and Transport Awards, after receiving the trophy for Shipyard of the Year in 2007 and 2008. It’s a great feeling to continue this momentum in 2009 and the team was confi dent that our achievements would be honoured once again by the judging panel. Hopefully, with hard work and determination, we will continue our winning streak at next year’s ceremony too. I would like to thank ITP Business for initiating this ceremony and bringing the industry together to celebrate its achievements.”L. Janarthanan, commercial manager of DrydocksWorld - Dubai

Previous winners: Drydocks World - Dubai(2007 and 2008)

SEA FREIGHT SHIPYARD OF THE YEAR

For extra coverage of the Supply Chain and Transport Awards (SCATA) 2009, visit:



WINNER: EMIRATES SKYCARGO“I’m proud that Emirates SkyCargo has received a growing number of international awards in the past year, which have honoured our various achievements on a global basis. However, being honoured at a Middle East-based ceremony such as the Supply Chain and Transport Awards is extra special and brings the focus back to our home market. This business is very much about partnership, whether it’s with freight forwarders or airports, or even the city and the region itself, so it’s great to have awards such as SCATA that bring the community together to celebrate its achievements.”Ram Menen, divisional senior vice president cargo,Emirates Airline

Previous winners: Emirates SkyCargo (2007),Etihad Crystal Cargo (2008)

AIR CARGO CARGO OPERATOR OF THE YEAR (COMMERCIAL AIRLINE)

WINNER: CARGOLUX“This is a proud moment for Cargolux in the Middle East, which has operated in this region for a number of decades and supported the local growth in airfreight volumes. Of course the past year has been a rollercoaster ride for the industry and we have crossed a number of hurdles along the way. I am optimistic the worst is over, so collecting this trophy for Cargo Operator of the Year is perfectly timed to motivate our team for the future. It’s important to thank the judging panel and everyone else that has been involved in making this ceremony a success.”Sherry Vaz-Arab, country manager of Cargolux

Previous winners: ACT Airlines (2007), Maximus Air Cargo (2008)

AIR CARGO CARGO OPERATOR OF THE YEAR (CARGO AIRLINE/CHARTER)

WINNER: DUBAI CARGO VILLAGE“It’s an honour to receive this award on behalf of Dubai Cargo Village for the third year in a row. Our future is looking bright – we are the number one facility of our kind in the region and we intend to keep on growing

and providing our clients with the kind of seamless cargo solutions they deserve. We are fortunate to win a lot of awards in different locations around the world, but it is a real pleasure to receive one in our home city and hub of Dubai. With the business proceeding at the current rate, we hope to win many more such awards in the future. Thank you for the support you have provided the industry.”Abdullah Mohammed Bin Khediya, senior general manager, Dubai Cargo Village

Previous winners: Dubai Cargo Village (2007 and 2008)

AIR CARGO AIR CARGO HUB OF THE YEAR

SCATA 2009 AIR CARGO AWARDS

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WINNER: SP JAIN CENTRE OF MANAGEMENT“The market for education programmes in supply chain management was relatively limited when SP Jain Centre of Management fi rst entered the Middle East. However, the logistics industry has since experienced

a period of rapid growth, which has fuelled an increase in demand for our programmes. I think the market has started to understand the role that institutes such as SP Jain Centre of Management are playing in equipping the industry with qualifi ed, knowledgeable and highly-effi cient professionals. We’re delighted that our achievements have been recognised at the Supply Chain and Transport Awards and we look forward to participating once again in 2010.”Dr Rajiv Aserkar, S P Jain Centre of Management

Previous winners: GAC Academy (2007),Gulf University of Science and Technology - GUST (2008)

JUDGES AWARDS TRAINING AND EDUCATION PROVIDER OF THE YEAR

WINNER: EHRHARDT + PARTNER SOLUTIONS (EPS)“What a great feeling! We are humbled to receive this award and a little surprised too, because

Technology Provider of the Year is traditionally considered a really competitive category at the Supply Chain and Transport Awards. I believe these awards are really important for the Middle East region, especially at a time when the logistics industry is suffering from the global recession. We have a relatively small team with large aspirations in Dubai, so receiving this honour has reinforced our achievements, not only for the industry but also the EPS head offi ce in Europe.”Ramon Thoms, regional manager, Ehrhardt + Partner Solutions (EPS)

Previous winners: Psion Teklogix (2007) , Business Systems Group - BSG (2008)

JUDGES AWARDS TECHNOLOGY PROVIDER OF THE YEAR

WINNER: SPAN GROUP “This award is a symbol of our hard work, our presence in the market and our

growth. We have worked hard in the last few years and provided a diverse portfolio of solutions to the largest companies in the Middle East, so we think we deserve it. Last year, we won a contract to become agents for Jungheinrich and we are now ranked sixth worldwide for after-sales service. I guess that was a very strong move. On the other side, we have just completed our section of Agility’s vast warehouse in Jebel Ali. So we moved from standard racking and shelving to automated and updated systems. It’s been a very strong year for us.”Ghassan Daniel, regional manager of warehouse solutions, SPAN Group

Previous winners: FAMCO (2007), SSI Schaefer (2008)

JUDGES AWARDS MATERIAL HANDLING PROVIDER OF THE YEAR

SCATA 2009 JUDGES AWARDS

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WINNER: RAS AL KHAIMAH FREETRADE ZONE “It’s a pleasure to collect this award

for Industrial Area of the Year. Ras Al Khaimah Free Trade Zone is amongst the fastest-growing free zones in the world and contributes an estimated Dhs10 billion in capital to Ras Al Khaimah’s economy. In addition, we have registered a 16% increase in revenues during the fi rst quarter of 2009, which reinforces our ability to maintain a competitive edge, despite the volatile business atmosphere at the moment. I would like to thank everyone at the Supply Chain and Transport Awards for recognising our achievements this year.”Ahmed Ali Suwaidi, deputy sales director of RAK Free Zone

Previous winners: Jebel Ali Free Zone (2007 and 2008)

JUDGES AWARDS INDUSTRIAL AREA OF THE YEAR

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For extra coverage of the Supply chain and Transport Awards (SCATA) 2009, visit:



WINNER: GULF AGENCY COMPANY (GAC)“It’s really encouraging that the Supply Chain and Transport Awards include a category for Corporate Social Responsibility (CSR), because it really highlights the importance of this area for the Middle East logistics industry. To a certain

degree, I actually believe this award is more important that the others, because it measures the nominee’s social conscience, rather than their business growth or fi nancial performance. GAC has continued to develop its CSR initiative over the past year, with a special committee now in place to ensure our operations are environmentally friendly. We also hope to encourage others in the industry to follow the same path.” Peter Bengtsson, managing partner of Gulf Agency Company (GAC)

Previous winners: ASRY - Arab Shipbuilding & Repair Yard (2007) and Aramex (2008)

JUDGES AWARDS CORPORATE SOCIAL RESPONSIBILITY AWARD

WINNER: GULF AGENCY COMPANY (GAC)“It’s been a really successful night for Gulf Agency Company at this year’s Supply Chain and Transport Awards. We have already collected the trophies for 3PL Service Provider of the Year and Corporate Social Responsibility of the Year, so

receiving the Outstanding Achievement Award is a perfect ending to the event. I believe we managed to achieve the highest number of nominations this year and collected the most awards, so on behalf of the entire team, I would like to thank the SCATA judging panel for highlighting our position as a market leader. There is pressure to match this performance at next year’s ceremony and we welcome that challenge.”Captain Gobind Kukreja, general manager of tanker shipping services, Gulf Agency Company (GAC)

Previous winners: DP World (2007) and Jebel Ali Free Zone Authority (2008)

JUDGES AWARDS OUTSTANDING ACHIEVEMENT OF THE YEAR

WINNER: HIS EXCELLENCY SULTAN AHMED BIN SULAYEM (DUBAI WORLD) “Unfortunately, His Excellency Sultan Ahmed

Bin Sulayem could not attend this year’s Supply Chain and Transport Awards, although I have been asked to collect this trophy on his behalf. It’s a great honour and His Excellency was particularly impressed with the diverse nature of the judging panel, which represents the entire spectrum of supply chain and transport activities in the Middle East. These awards are very prestigious and we would like to thank ITP Business and everyone that voted for His Excellency as the winner of the fi rst SCATA Hall of Fame award. We also send our congratulations to each of the other winners at tonight’s ceremony.”Farid Mohammed Ahmed, secretary general of Dubai World

JUDGES AWARDS HALL OF FAME AWARD

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Vision by Cargolux

Lasting partnerships in air cargo are only viable with an airline that invests heavily in the future needs of its customers. An airline that operates the newest, most economical aircraft, that values its staff as its most important asset and that runs the most powerful cargo management software available. An airline that has mapped its long-term development in the air freight market.

With Cargolux you gain a partner that supports your forwarding needs today, tomorrow and for many years to come. An airline with a vision.

Cargolux. Cargo First.

www.cargolux.com

Cargolux Airlines International S.A.P.O.Box 5977, Office No 30353rd Floor, Dubai Cargo VillageAir Cargo TerminalDubai Airport, Dubai U.A.E.Tel. +971 (4) 282 2071Fax +971 (4) 2822 442EMail: [email protected]






ASK THE EXPERT

FIGHTING FOR SURVIVALIn order to survive this period of economic uncertainty, it’s essential for companies in the Middle East logistics industry to optimise their performance. While others are expanding their warehouse facilities or increasing their rental of storage space, it’s actually a wiser idea to look inwards and restructure your existing supply chain operations to maximise eff ectiveness. Take a look at how your assets are being utilised and research the true Return on Investment (ROI) for capital and human assets, whether it’s land, buildings and equipment, or shift timings.

GETTING THE BASICS RIGHTA number of common principles are traditionally utilised for the design and construction of warehouse facilities. During a boom period, a concerning number of projects will suff er from unrealistic deadlines, without a suitable amount of time for effi cient completion. Th is is particularly apparent in the design stage, when distribution centres are hastily conceptualised from the “outside in” and fail to take into consideration the intricate details of operations. As such, the designs are not necessarily based on best practice. A simple example is the position of building columns, where the majority of column grids are not suitable for effi cient storage design and will have a detrimental eff ect on effi ciency. Th is could lead to a severe reduction in storage capacity and have a long-term impact on picking operations too.

A STEP-BY-STEP APPROACHTh e correct planning for warehousing facilities is based on core principles, which can also be used to benchmark your existing operations and evaluate a path for increased effi ciencies. Th ere are four factors that should be considered. Th e fi rst is key objectives for the warehouse facility. Th is is generally the fulfi lment of customer orders, with a focus on getting the right product to the right customer in the right place at the right time, at the agreed cost. Th erefore, the primary objective of the warehouse operation should be fulfi lling orders and secondly, ensuring suffi cient stock to maintain this order fulfi lment operation. Th e second factor to consider is inventory – in terms of what is required to ensure the picking operations are supported, and what reserve stock is suffi cient to cover the stock criteria, such as order cycle times and re-supply. Remember, gaining effi ciencies in manufacturing can be off set by forced ineffi ciencies in the supply chain.

THE FINAL CONSIDERATIONSTh e third factor is resources. What is

needed to ensure the fulfi lment of orders? Take a look at the capital resources that are available, such as land, building, material handling

equipment, technology systems, and human resources. Th e fourth factor is

customer specifi c criteria – each customer has criteria that

often distinguishes it from the

competition. Th is might

be based on their unique business plan, brand values, customer base and

mode of operation. Th ese should later be tabled, questioned and incorporated into the solution requirements. One outcome, for example, could be a shorter order cycle lead time, which must be maintained to ensure the competitive edge.

DESIGNING A NEW SOLUTIONHaving completed the analysis, the information can be collected and analysed to determine the best layout and operation of the warehouse. An effi cient solution will consist of multiple storage and handling solutions, with the operations managed by an eff ective warehouse management system (WMS) that is supported by appropriate technologies such as radio frequency. Understand that the modern warehouse is a “dynamic” operation, where the goods fl ow into, through and out of the centre in a seamless chain of integrated operations. Do not think “static”. Always think of the best ways to move the goods and allow the effi cient completion of orders.

REAPING THE REWARDSIt’s important to remember that storage systems are designed to be adjustable. By making a small investment in the re-planning and re-arranging of systems, your company can benefi t from long-term effi ciency gains that will result in the more eff ective use of equipment and a better return on investment. For example, the upgrading of material handling equipment can result in faster order processing and resource optimisation. In addition, the implementation of a warehouse management system can help to ensure the fastest completion of tasks. Of course, never make changes without researching the market and questioning an expert in the fi eld, whether it’s a consultant or an experienced material handling specialist such as FAMCO.

QUESTION: How can companies in the Middle East restructure their operations to maximise effectiveness?

46

TAKINGSTOCK

Written by David Dronfi eld,

divisional manager of storage and

handling solutions, Al-Futtaim Auto

& Machinery Company (FAMCO)

RSA LOGISTICS DWC llc, Plot No WA-2, DUBAI LOGISTICS CITY. • P.O. Box 14194, DUBAI, UAETEL: +971 4 88 58 748/747/ 971 • FAX: +971 4 88 56 6218 • [email protected] • www.rsalogistics.net

• Sea and Air freight

• Land Transport across Middle East

• Customs Clearance Associated Value added Services

• Consolidation of Cargo

• Local Transportation within UAE for cargo Pick up and Delivery

• Warehousing and Distribution Services

• Commercial Packing and Removal


MONTHLY AIR CARGO REPORT: EUROPE REGION*

AIRPORT/COUNTRYFEBRUARY 2009/2008 YEAR-TO-DATE 2009/2008

Cargo (tonnes) % CHG Cargo (tonnes) % CHG

Amsterdam (Netherlands) 97,305 -26.8 190,774 -26.9

Brussels (Belgium) 33,966 -48.2 64,039 n/a

Cologne (Germany) 40,520 -13.6 81,834 -12.7

Frankfurt (Germany) 129,962 -25.4 254,171 -24.5

Istanbul (Turkey) 24,399 -12.3 46,387 -11.7

Leipzig (Germany) 34,897 68.8 69,866 73.1

Liege (Belgium) 32,884 -28.4 66,598 -28.2

London Heathrow (UK) 96,731 -17.6 196,004 -14.8

Luxembourg (Luxembourg) 49,067 -18.9 95,150 -27.3

Paris (France) 142,000 -13.0 276,000 -15.2

Vienna (Austria) 13,730 -15.2 26,052 -18.3

Warsaw (Poland) 3868 -13.8 7639 -14.9

Zurich (Switzerland) 21,337 -13.4 42,072 -12.6

FACTS & FIGURESAir Cargo Regional & International Statistics

Knowledge of cargo statistics is essential to supporting your supply chain operations. Every month,

Logistics Middle East provides its readers with four pages of the latest information from a variety of trusted

sources, including Emirates SkyCargo, Airports Council International (ACI) and Saudi Ports Authority.

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FUEL PRICE INDEXThe fuel index is based on the average price of aviation

fuel in fi ve key spot markets (Rotterdam, Singapore, New York, US Gulf and US West Coast).

INDEX100 = 53.5 US cents per US gallon

27 Mar279

EMIRATES SKYCARGO FUEL PRICE INDEX

MONTHLY AIR CARGO REPORT: AFRICA REGION*



Accra (Ghana) 3659 -10.3 7816 -7.6

Addis Ababa (Ethiopia) 4590 -26.7 7731 -36.0

Algiers (Algeria) 1780 5.4 3230 4.0

Antananarivo (Madagascar) 881 -31.7 1729 -26.2

Cairo (Egypt) 22,568 -1.4 49,908 3.7

Casablanca (Morocco) 4596 -6.8 9091 -7.6

Dar Es Salaam (Tanzania) 1453 -33.7 2882 -22.1

Durban (S. Africa) 136 -17.1 820 174.2

Entebbe (Uganda) 4379 -11.7 8747 -17.9

Johannesburg (S. Africa) 20,374 -26.7 38,377 -24.9

Lagos (Nigeria) 13,831 8.8 32,789 31.0

Nairobi (Kenya) 21,375 -18.6 43,460 -14.1

Tunis (Tunisia) 1246 -15.2 2544 -5.2

MAR

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CARGO STATISTICSThis graph represents the cargo volumes handled at Dubai International Airport over a 12-month period. Cargo fi gures, as provided by Airports Council International (ACI), are measured as loaded and unloaded freight and mail.

DUBAI INTERNATIONAL AIRPORT: CARGO STATISTICS

*Monthly cargo statistics for international airports, with data provided by Airports Council International (ACI). Cargo is defi ned as loaded and unloaded freight and mail (in tonnes).

INDUSTRY STATISTICS

3 Apr264

17 Apr270

1 May253

15 May281


MONTHLY AIR CARGO REPORT: MIDDLE EAST REGION*



Abu Dhabi (UAE) 26,908 -2.1 52,095 0.0

Al Ain (UAE) 621 59.2 724 64.2

Amman (Jordan) 5827 -24.3 11,903 -15.6

Beirut (Lebanon) 5322 6.0 10,471 5.4

Dubai (UAE) 135,495 0.3 265,871 -1.3

Fujairah (UAE) 2946 15.2 5741 10.1

Kuwait (Kuwait) 13,544 -4.8 27,410 -1.7

Muscat (Oman) 4480 -20.3 9004 -8.1

Ras Al Khaimah (UAE) 183 n/a 406 n/a

Sharjah (UAE) 24,064 -3.4 47,002 -4.2

MONTHLY AIR CARGO REPORT: NORTH & SOUTH AMERICA*



Anchorage (USA) 123,435 -31.3 255,922 -31.2

Buenos Aires (Argentina) 9769 -37.2 20,056 -33.5

Chicago (USA) 73,827 -30.3 150,932 -29.2

Los Angeles (USA) 100,639 -24.3 203,341 -24.3

Memphis (USA) 276,706 -9.0 575,848 -7.3

Mexico City (Mexico) 23,279 -27.4 46,505 -28.4

The Chartered Institute of Logistics and Transport International is a uniquely established global professional body.

The Chartered Institute of Logistics and Transport International is the leading professional body associated with logistics and transport. With over 33,000 members in over 30 countries worldwide, CILT holds unparalled professional international recognition. It is an organisation that offers signifi cant benefi ts to all its members, as well as a complete suite of educational courses internationally.

Established in 1919 and receiving its Royal Charter in 1926, the Institute has an exciting history behind it, but it always adapting to stay consistent with current logistics and transport issues. The Institute’s Patron is HRH Queen Elizabeth II.

Candidates who succesfully pass the qualifi cations, may be awarded post designatory letters for (MILT) and Chartered Member (CMILT). This is a badge of international recognition.

The Chartered Institute of Logistics and Transport United Arab Emirates, is an Approved Centre of the CILT International to offer their full qualifi cations and endorsed programmes. We take pride in bringing the internationally recognized professional qualifi cations in Logistics and Transport and facilitate them at your doorsteps.

For more information contact us:- Tel: +971 4 2187804 / 5 / 6

Mobile: +971 509724872 / +356 99429536Fax: +971 4 2832906

Email: [email protected] / [email protected] /

www.cilt-international.com

P.O. Box 28444, Emirates Aviation College, 1st Floor, Al Garhoud, Dubai, UAETel: +971 4 21878404 / 5 / 6, Fax: +971 42832906

Mobile: +971 509724872 / +356 99429536Email: [email protected] / [email protected].

www.ciltuae.org / www. cilt-international .com

*Monthly cargo statistics for international airports, with data provided by global trade association Airports Council International (ACI). Cargo is defi ned as loaded and unloaded freight and mail (in tonnes).

MONTHLY AIR CARGO REPORT: ASIA PACIFIC REGION*



Ahmedabad (India) 1500 -26.8 3170 -20.1

Bangalore (India) 11,658 -21.0 24,057 -16.8

Bangkok (Thailand) 65,930 -34.2 133,956 -33.4

Chengdu (China) 24,561 11.2 50,363 -9.7

Colombo (Sri Lanka) 9523 -29.0 19,628 -26.1

Fukuoka (Japan) 17,331 -20.8 34,711 -19.4

Hong Kong (China) 200,480 -19.5 413,204 -24.5

Jakarta (Indonesia) 33,253 6.3 69,007 1.9

Kuala Lumpur (Malaysia) 39,250 -29.1 79,655 -28.7

Manila (Philippines) 20,107 -30.0 39,510 -30.7

Mumbai (India) 40,013 -15.7 79,897 -12.8

Osaka (Japan) 39,190 -43.4 76,448 -44.7

Seoul (Korea) 13,263 -2.4 26,541 -2.9

Shanghai (China) 138,890 -17.1 273,262 -25.8

Singapore (Singapore) 114,490 -20.6 233,732 -22.4

Taipei (Taiwan) 73,953 -34.7 146,167 -41.6

Tokyo (Japan) 113,536 -33.5 223,828 -34.2

INDUSTRY STATISTICS

For up-to-datefi gures, visit:


FACTS & FIGURESSea Freight Regional & International Statistics

Our sea freight data includes information on the bunker fuel

price at major port facilities in the Middle East, North and

South Europe, North and South America, and Asia. More

specifi c cargo statistics are also provided from the Saudi

Ports Authority, covering the major ports in the Kingdom.

INDUSTRY STATISTICS

20 Ju

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FUJAIRAH BUNKER FUEL PRICE INDEX

BUNKER FUEL PRICE INDEX: MIDDLE EAST REGION*

PORT / COUNTRY IFO380 IFO180 MGO MDO

Dammam (Saudi Arabia) n/a n/a n/a n/a

Fujairah (UAE) 362.5 378.5 547.5 n/a

Jeddah (Saudi Arabia) 390 390 770 n/a

Khor Fakkan (UAE) n/a n/a n/a n/a

Port Sultan Qaboos (Oman) 345 360 550 n/a

*Information on the bunker fuel price at port facilities in the Middle East, North and South Europe, North and South America, and Asia, featuring data from 20th May 2009. The prices are quoted in US$ per metric tonne and split into four categories: 380 centistoke (IFO380), 180 centistoke (IFO180), Marine Gas Oil (MGO) and Marine Diesel Oil (MDO).

BUNKER FUEL PRICE INDEX: ASIA & OCEANIC REGION*


Busan (Korea) 379 390 543 533

Hong Kong (China) 362 366 513 n/a

Kaohsiung (Taiwan) 386 389 545 530

Shanghai (China) n/a n/a n/a n/a

Singapore (Singapore) 353 359 481 n/a

BUNKER FUEL PRICE INDEX: NORTH EUROPE REGION*


Copenhagen (Denmark) 361 391 511 466

Gothenburg (Sweden) 354 384 507 463

Hamburg (Germany) 337 352 495 445

Rotterdam (Netherlands) 336.5 358.5 484.5 446.5

St Petersburg (Russia) n/a n/a n/a n/a

BUNKER FUEL PRICE INDEX: NORTH AMERICA REGION*


Houston 345.5 357 n/a 453.5

Los Angeles 375.5 390.5 506 494

New Orleans 343 349 n/a 457

New York 351 363 n/a 529

Seattle n/a n/a n/a n/a

BUNKER FUEL PRICE INDEX: SOUTH EUROPE REGION*


Algeciras (Spain) 344 360 510 n/a

Fos (France) 374.5 424.5 545.5 n/a

Gibraltar (Gibraltar) 343.5 358.5 509 n/a

Istanbul (Turkey) 352 363 507 n/a

Piraeus (Greece) 354 366 483 n/a

BUNKER FUEL PRICE INDEX: SOUTH AMERICA REGION*


Buenos Aires (Argentina) 375 395 594 568

Montevideo (Uruguay) n/a n/a n/a n/a

Panama Canal (Panama) 350 372 530 n/a

Rio de Janeiro (Brazil) n/a n/a n/a n/a

Santos (Brazil) 360 378.5 511.5 n/a

20 June639

20 July726.5

20 Nov217

20 Mar244

20 May362.5


Transport

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INDUSTRY STATISTICS

For up-to-datefi gures, visit:

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0

500,000

1 million

1.5 million

2 million

2.5 million

3 million

3.5 million

COMMODITY DISCHARGED DETAILS: FEBRUARY 2009

CARGO TYPEFEBRUARY 2009 YEAR-TO-DATE

Discharged Loaded Discharged Loaded

Bulk cargo (solid) 1,063,370 544,182 2,217,839 1,122,769

Bulk cargo (liquid)* 259,177 4,908,048 983,957 9,853,273

General cargo 373,899 57,628 781,802 100,692

Containers (in tonnes) 1,631,117 1,328,419 3,342,404 2,726,908

Ro-Ro and vehicles 123,977 12,840 291,292 25,739

Livestock 16,045 n/a 33,221 n/a

TOTAL 3,467,585 6,851,117 7,650,515 13,829,381

TOTAL PORT THROUGHPUT 10,318,702 21,479,896

Summary of cargo throughput for major Saudi Arabian ports - Saudi Ports Authority

CONTAINERS (TEU) 2009 2008

February Year-to-Date February Year-to-Date

Discharged 152,819 314,092 176,167 362,331

Loaded 169,964 367,968 176,240 370,469

TOTAL 322,783 682,060 352,407 732,800

Source: Saudi Ports Authority (SPA). The statistics cover all major Saudi Arabian ports (dead weight in tonnes).*Bulk cargo excluding crude oil.

01 02030405

1116616212627282930

22232425171 188181818 1911 2012 133 14 15

06 070809 10011 02203


11

1 27

1211 11

11

EVENTS CALENDAREVENTS CALENDAR

A listing of trade shows, conferences and seminars relating to the Middle East logistics industry

15th - 17th June 2009RFID LIVE MIDDLE EAST Th e programme for this year’s RFID Live Middle East will focus on how the latest developments in RFID technology have helped companies to improve their operations in a number of diff erent sectors, including the logistics, construction and oil and gas industries. A panel of regional and international experts will be available throughout the three-day event, including Vasihuddin Khan (Emirates SkyCargo), Rashid Bin Saifan (DP World) and Mike Meranda (Tagstone).VENUE: InterContinental Hotel, Dubai Festival CityEMAIL: MiddleEastReg@rfi djournal.comWEBSITE: www.rfi djournalevents.com

3rd - 5th November 2009SITL DUBAIOrganised by Reed Exhibitions, the inaugural SITL Dubai exhibition will take place in November 2009 with a predicted 250 exhibitors from the supply chain and transportation sector. Th e show, which is being marketed as a leading platform to connect the key markets in the East with their counterparts in the West, will include a global shippers forum, hosted buyer programme and RFID space.VENUE: Airport Expo, DubaiEMAIL: [email protected] WEBSITE: www.sitldubai.com

9th December 2009SSI SCHAEFER AUTOMATION DAYSSI Schaefer is holding its latest Automation Day in Dubai this year, following a series of similar events around the world. Th e company, which specialises in material handling equipment, has organised the free event to update Middle East customers and partners on the latest developments in order-picking systems and dynamic warehousing. A venue will be confi rmed shortly and companies are invited to register their interest by using the contact details below.VENUE: Dubai, United Arab EmiratesEMAIL: [email protected]: www.ssi-schaefer.ae

13th - 15th October 2009TRANSOMANTransoman, the Sultanate’s leading trade event for transportation, shipping and logistics companies, will provide a three-day forum for local industry professionals to discuss the latest issues that are eff ecting the domestic market’s development. In addition, delegates will be provided with the opportunity to network with their colleagues, exchange valuable information and predict the newest opportunities that are expected to arise in the local supply chain sector.VENUE: Oman International Exhibition CentreEMAIL: [email protected] WEBSITE: www.oite.com

7th – 8th December 2009SCM LOGISTICS MIDDLE EASTFigureheads from the retail, distribution and manufacturing sectors are gathering at SCM Logistics Middle East this year

to brainstorm the challenges of rising costs, inadequate logistics infrastructure and cross border hurdles, and how these can be overcome by implementing eff ective distribution, logistics and supply chain strategies. Th e event will include a number of keynote speakers, such as Vikas Bansal (Nikai), Swapan Choudhury (Landmark Group) and Sherif Riad (Kraft Foods).VENUE: Fairmont Hotel, DubaiEMAIL: [email protected] WEBSITE: www.terrapinn.com

19th - 21st January 2010CEMAT MIDDLE EASTDeutsche Messe, a global organiser of trade exhibitions, has launched a Middle Eastern version of its CeMAT event, which takes place at Dubai Airport Expo Centre in January 2010. Similar in format to other shows in the CeMAT franchise, which take place in Hannover, Shanghai, Istanbul and Bangalore, the exhibition will focus on the core sectors of warehousing technology, internal transport systems for logistics, and materials handling operations.VENUE: Dubai Airport Expo CentreEMAIL: [email protected]: www.cemat-me.com

18th - 20th October 2009INTERNATIONAL FREIGHT WEEKAirlink International is the latest company to confi rm its participation in this year’s International Freight Week, which is scheduled to take part at Abu Dhabi’s National Exhibition Centre on 18th-20th October 2009. Over 800m2 of fl oor space has already been reserved for the event, according to organiser IIR Middle East, with Airlink International joining other confi rmed exhibitors such as Etihad Crystal Cargo, Dubai Logistics City, Maximus Air Cargo and SSI Schaefer.VENUE: Abu Dhabi National Exhibition CentreEMAIL: [email protected] WEBSITE: www.internationalfreightweek.com

7th – 8th December 2009KUWAIT LOGISTICS CONFERENCEFacing the global recession with a desire to sustain economic growth, Kuwait is exploring alternatives in the new parliament that will position the country on the path of progress and prosperity. To support this initiative, and highlight the importance of the supply chain sector, the fi rst Kuwait Logistics Conference is taking place in December 2009 to explore the opportunities and challenges ahead. Topics will include reverse logistics, RFID technology and building strategic partnerships.VENUE: Hilton Hotel, KuwaitEMAIL: [email protected]: www.gust.edu.kw/glf

24th – 27th January 2010DEFENCE LOGISTICSFollowing the success of the previous Defence Logistics seminar in January 2009, with speakers including Professor Philbert Suresh from the Gulf University of Science and Technology (GUST) and Tarek Al Mousa from Agility Defence and Government Services (DGS), the show will return in 2010 to provide delegates with fi rsthand examples on how a joint logistics process can support both national and international missions.VENUE: Abu Dhabi, United Arab EmiratesEMAIL: [email protected]: www.iqpc.com

52

exhibitors are expected to take part in SITL Dubai

250

PRODUCTS


THARO SYSTEMS

Th aro Systems has expanded its range of barcode printers with the

H400 and H600 series, which are designed to provide a compact solution

for the labelling of commercial products. Th e company has selected a

durable, all-metal construction to help the printers operate in harsh

environments, including the extreme heat and dust of Middle East storage

facilities. Customers also benefi t from a selection of standard features,

such as a high-speed USB 2.0 interface for the transfer of data, a realtime

clock to stamp the time and date on labels, and a free version of the Th aro

Systems’ EASYLABEL software.

WEB: www.tharo.comTEL: +1 330 2734408

AL THIKA

Material handling specialist Al Th ika has launched RollerForks in the Middle East to capitalise on the growing number of companies that are loading their trailers and containers with slipsheets instead of pallets. Manufactured by Meijer Special Equipment, the product is designed to load a container in minutes without the need for expensive ‘push pull’ attachments on the forklift. In addition, RollerForks can be used as regular forks for standard operations in a warehousing facility.

WEB: www.althika.aeTEL: +971 4 3471001

JUNGHEINRICH

Jungheinrich has expanded its range of products with the ERE225 pedestrian pallet truck. Th e model, which is equipped with 3-phase AC technology, has been designed for fast and effi cient lorry loading, unloading and transportation over longer distances. In addition, the truck can achieve a speed of up to 12.5 kilometres per hour and can carry loads of 2500 kilograms. Customers also benefi t from standard features such as electrical steering and curve control, where the tiller has to be locked by approximately 70° for a 90° corner, ensuring safe cornering and straight travel.

WEB: www.jungheinrich.comTEL: +971 4 2895111

55

PRODUCTS

DICKSON TOYOTA

Dickson has enhanced its range of data

loggers with the SP325 and SP425 models,

which are designed to monitor the

temperature and humidity of shipping

containers and warehouses. A range

of standard features are included with

both models, including a high-speed

USB connection for data transfers, a user-

replaceable battery, and a digital screen

that displays the latest information of

temperature and humidity conditions.

WEB: www.dicksondata.comTEL: +1 630 5433747 Th e latest series of reach trucks from

Toyota is equipped with a modern AC hydraulic

system, which aims to boost productivity in the

warehouse by handling a larger number of pallets per hour and responding faster

to operator commands. In addition, the 8-Series has achieved a 17% increase in travel

times compared to previous models, making it suitable for warehouses with a fast turnover

of products. To ensure the motors stay within normal operating temperatures, the trucks

also feature a thermal protection cooling system, which introduces cooler air to the motor

compartment, while ventilating warmer air through compartment openings.

WEB: www.toyota8series.comTEL: +971 4 2066199



FACE TO FACE

“Companies need the advice

of experts to help with restructuring their operations”

How long has Xvise Innovative Logistics been active in the Middle East region?Following our successful launch in Austria around 10 years ago, the Xvise management team has searched for opportunities to expand its business into other parts of the world. Th e growth of logistics activities in the Middle East, Africa and Asia was particularly impressive and a decision was made to launch a central offi ce at Dubai Airport Free Zone to overlook these regions. Th at was back in 2006 and we now have a dedicated team of consultants with expertise in procurement, warehousing, distribution, transportation, and project management.

Can you remember the company’s fi rst assignment in the Middle East?We secured a contract to restructure the supply chain operations of a Dubai-based food distributor that supplied its products to retail outlets, hostels, institutions and camps in the United Arab Emirates and Oman. It previously took the customer over 10 days to deliver its products, however since we fi nished the assignment, the deliveries are completed within 24 hours.

Have certain industries been particularly receptive to your services in this region?Logistics consultancy has appeal for a number of diff erent industries, although demand is traditionally strong from the 3PL, electronics and fast moving consumer goods (FMCG) sectors. In addition, we’re often invited to speak at Middle East trade seminars and universities.

What are some of the common issues that customers need to address?A number of companies are looking to boost their productivity and need the advice of experts to help with the restructuring and reorganisation of their operations. In some cases, a strategy has already been implemented and failed, so it’s a case of damage control. We also receive a lot of interest from companies that have allocated a budget for new technology solutions or material handling systems, but need assistance with the selection process.

How many consultancy fi rms in the region specialise in logistics?Such companies are relatively limited, although self-employed consultants are also available with logistics expertise and contacts. At the same time, customers are generally more confi dent about selecting a proven company with a successful history. One factor that diff erentiates

Xvise from the pack is the fact that we combine our local expertise with know-how and techniques from a European background.

In general, do companies in the Middle East show a reluctance to

spend on consultancy services?Th e situation has improved because

companies are starting to understand the benefi ts of hiring a consultant. Of

course, there are still occasions when we have to educate

the customer. It helps to provide examples, such as a client that saved

one million dirhams on a racking system after we discovered it wouldn’t improve their effi ciency.

How much of a concern has the global recession been for customers? Th e logistics industry has not experienced this level of recession in the past 50 years and companies are searching for ways to restructure their operations and keep their costs under control. At the same time, it’s

still essential to maintain service levels and honour any prior commitments. Th is is where a consultancy fi rm can provide their expertise and onsite management.

What are your predictions for the future of logistics activities in the region?

I think the United Arab Emirates has set a benchmark for the rest of the Middle East to emulate in terms of infrastructure, customs regulations, freight forwarding, warehousing and transportation. However, under the global recession, there will be a short-term drop in warehousing and transportation prices and when that’s combined with a fall in demand, I think the 3PL sector will be involved in a price war. In the long-term, the market will start to grow, although the pace will be slower and more steady than the previous 10 years.

How has Xvise started to prepare for this long-term growth in the region?Dubai will remain our central base for the Middle East region, although we’re also looking at market opportunities in Saudi Arabia, Kuwait, Jordan and other emerging Middle Eastern economies. In addition, the logistics market in India has reached an all-time high and we feel there is defi nitely scope for Xvise to introduce its specialisation in the subcontinent and provide the local players with critical support. However, our development plans have a strong focus on growing at a steady pace and ensuring the quality of service continues to prosper.

EXPERT ADVICEUmer Shams Arakkal, general manager of Xvise Innovative Logistics, explains how consultancy fi rms are helping companies to survive the global recession.

“Companies need the advice

of experts tohelp oh restructuring

their operations”

FACE TO FACE INTERVIEW

Global Shipping & Logistics LLC is happy to announce the construction of its 2nd phase of warehouse operations in Dubai Investment Park (DIP) in addition to achieving 4 ISO standards.

Since 2006 GSL has built up a portfolio of premium clients who have been using GSL’s superior warehouse infrastructure, systems and operational capabilities

P.O. Box 2022, Dubai Investment Park, Dubai, United Arab EmiratesTel: +971-4-8851566, Fax: +971-4-8851577, E-mail: [email protected]: www.gsldubai.com

• State-of-the-art Warehousing Infrastructure

• Fully Automated Material Handling Systems

• Integrated Warehouse Management Systems

(WMS)

• Real Time Inventory visibility

• Web Based Order Management

• Cold Storage (-25ºC to 4ºC)

• Temperature Controlled Storage (+18ºC to 25ºC)

• 24 hours Security and Trained Personnel

• Transportation Services (Refrigerated & Dry)

• Fast & Efficient Custom Clearance &

Documentations (C&F)

• Direct to Store Distribution

• Co-Packing and Value Added Services (VAS)

• FMCG• IT & TELECOM• FOOD & BEVERAGES • HIGH STREET RETAIL• CONSUMER ELECTRONICS• FURNITURE & FURNISHINGS

Total Capacity of 55000 Pallets / 99000 CBM

Documents

Logisctics Middle East