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Logistics ME - Dec 2009 - ITP Business
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NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSDECEMBER 2009 ISSUE 63
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
An ITP Business Publication
COMPANY PROFILESPerformance reviews with 80 leading institutes from the supply chain industry
NEWS ROUNDUP 2009Looking back at the most prominent logistics news stories in the Middle East
THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRYTHE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
ANNUAL REVIEW
1
EDITOR’S LETTER
www.arabiansupplychain.com | DECEMBER 2009
Are brighter times ahead for logistics?
ooking back on 2009 and it seems the Middle East logistics sector has faced its most challenging year to date. Following years of positive reports on the continued growth of companies across this industry, we’ve had the
unfortunate task of reporting on company closures and job redundancies. However, every cloud has its silver lining, which has been especially true in this region compared to developed markets such as Europe and the United States. In fact, the vast majority of companies that are featured in our annual review this year have decided to take a deep breath in these challenging times and concentrate on understanding their business operations a little better. Th e strategy, in most cases, has worked wonders and reports about lower operating costs and higher profi t margins have become a common theme in this issue of Logistics Middle East.
Moving ahead, with 2009 fi nally drawing to a close, its time to start thinking about the future, with growth forecasts in the region being a lot more positive, especially when compared to this time in 2008. Of course, it’s important to keep your expectations as realistic as possible and the general consensus is that a recovery will commence in 2010, but the process will be slow and steady - a situation that most of the companies in this annual review issue have welcomed with open arms.
We’re also starting the countdown for next year’s Supply Chain and Transport Awards (SCATA), which have proved a remarkable success in the previous three years and promise to return on a grander scale in 2010. Given the economic climate and the attitude that ‘change is around the corner’, these awards will off er a perfect opportunity to celebrate the logistics industry’s biggest achievements in the past year. Further information will be provided in the coming months and we welcome your suggestions for next year’s ceremony.
If you have any comments or suggestions to make on this month’s issue, please email Robeel Haq, senior group editor of Logistics Middle East ([email protected])
To subscribe please visit www.itp.com/subscriptions
L
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Annual News Review
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3www.arabiansupplychain.com | DECEMBER 2009
FEBUARY 2009
Th e media spotlight was shining
on Sharjah at the beginning of
the year, with suggestions that
logistics activities in the emirate
would experience a record period of
growth in the coming years. Th e
assessment was supported by a
series of infrastructure project
launches, including the 500,000m2
Hamriyah Maritime Centre and
700,000m2 International Logistics
City. “Sharjah holds tremendous
appeal as a regional logistics hub,” commented Professor Philbert Suresh,
founder of the GUST Logistics Forum. “Th e global recession has forced
companies to look for effi cient and aff ordable solutions, so I’m sure the
Middle East will benefi t from the development of another logistics hub.”
OTHER LOGISTICS NEW STORIES IN JANUARY 2009• First Bahrain announced plans to expand its warehousing space at
Bahrain Investment Wharf to cope with massive demand from small
and medium business enterprises (SMEs) in the Middle East region.
• DHL Express boosted its transportation infrastructure in the Middle
East with a US$3.7 million warehouse in Jordan, measuring 4000m2.
• A number of fi gureheads from Dubai’s logistics sector took part in the
second annual Dubai Hamburg Business Forum in Germany.
• Airbus Middle East secured a two-year contract from Parker Aerospace
to provide a range of storage and handling services in Dubai.
• Logistica supported its multi-million dollar expansion strategy in the
Middle East with the opening of new facilities in Oman and Qatar.
• NMC Trading became the largest warehousing customer to date at
Dubai Industrial City after signing a long-term agreement to lease
230,000 square feet of storage space.
• Aramex announced a major expansion in the Sultanate of Oman with
the opening of a fl agship offi ce in the Al Khuwair district of Muscat.
• Hala Supply Chain Services (HSCS) was appointed as the offi cial
distributor for Psion Teklogix in the Kingdom of Saudi Arabia.
JANUARY 08Airfreight will be the fastest growing
market for cargo transportation
in the United Arab Emirates,
according to a market report from
Business Monitor International
(BMI). Th e sector will experience an
average growth rate of 8.2% per year
between 2009-2013, compared to
5.1% in sea freight and 4.4% in road
haulage. “Th e dynamic economy in
the UAE is becoming more diverse
and shows evidence of robustness to withstand external shocks,”
explained Michelle Byrne, head of freight and transport analysis at
BMI. “Strong investment in transport infrastructure and the global
ambitions of companies such as Emirates Airlines and DP World will
also be positive growth factors for the country.”
OTHER LOGISTICS NEWS STORIES IN FEBRUARY 2009• A programme to lower supply chain costs in the Middle East was
launched by the Global Coalition for Effi cient Logistics (GCEL) at the
Arab Economic, Social and Development Summit in Kuwait.
• Th e fi nal blueprints for Saudi Arabia’s ambitious seaport at King
Abdullah Economic City (KAEC) were revealed by developer Emaar
Economic City (EEC).
• GeoPost Intercontinental announced the appointment of Emanuil
Stoimenos as Middle East chief executive offi cer to overlook its
forthcoming expansion in the region.
• DHL Supply Chain introduced a training and development scholarship
in the Middle East to commemorate its former contract director David
Rouse, who passed away in 2008.
• TNT Express launched a safety awareness programme to reduce the
number of traffi c-related accidents in the United Arab Emirates.
• British Airways confi rmed plans to resume its services to Saudi
Arabia with the launch of weekly fl ights to Jeddah and Riyadh.
• Arshiya Transport commenced road transport services from Dubai,
with plans to operate a fl eet of 1000 owned and leased vehicles.
d h id f b t
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSFEBRUARY 2009 ISSUE 53
CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX
An ITP Business Publication
JUST
Manoj Loya, general manager, Galadari Ice Cream Company
An exclusive scoop on Baskin Robbins’ regional supply chain operations
ON THE DEFENCECan the logistics industry play a role in boosting the military supply chain?
UNIVERSITY CHALLENGEKeeping updated on the growing number of Middle Eastern logistics courses
DESSERTS
JANUARY 2009
ANNUALNEWS
REVIEWREVIEW
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJANUARY 2009 ISSUE 52
ALSO IN THIS ISSUE: HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA
An ITP Business Publication
EASY RIDER
Moh
amed
Iqba
l, op
erat
ions
man
ager
, Har
ley-
David
son
UAE
Is Harley-Davidson on the road to success with its Middle East supply chain operations?
AIMING HIGHEmirates Aviation Collegereveals its postgraduateprogramme in logistics
BUILDING BLOCKSAn exclusive update on warehouse construction at Dubai Logistics City
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSFEBRUARY 2009 ISSUE 53
CHEP І KUEHNE + NAGEL І GEOPOST І TNT EXPRESS І JAFZA INTERNATIONAL І ARAMEX
An ITP Business Publication
JUST
Manoj Loya, general manager, Galadari Ice Cream Company
An exclusive scoop on Baskin Robbins’ regional supply chain operations
ON THE DEFENCECan the logistics industry play a role in boosting the military supply chain?
UNIVERSITY CHALLENGEKeeping updated on the growing number of Middle Eastern logistics courses
DESSERTS
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMARCH 2009 ISSUE 54
EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN
An ITP Business Publication
TOOLS OF THE TRADE
Gillia
n Le
wis
, reg
iona
l log
istic
s m
anag
er, A
ce H
ardw
are
Building a solid supply chain with Ace Hardware in the Middle East
SCATA 2009 PREVIEWThe latest details on this year’s Supply Chain and Transport Awards in Dubai
EXPRESS STRATEGYWhy the global slowdown will not impact FedEx’s Middle East masterplan
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAPRIL 2009 ISSUE 55
SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY
An ITP Business Publication
BUILDING THE BIGGER PICTUREPiecing together the multi-million dollar investment behind Aqaba’s logistical transformation
RISKY BUSINESSHas the global recession increased the importance of purchasing insurance?
KEYS TO THE KINGDOMSaudi Arabia returns as a hot investment for the global logistics industry
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMAY 2009 ISSUE 56
AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN
An ITP Business Publication
CITY SLICKERA surprise breakthrough as RSA Logistics opens the fi rst warehouse at Dubai Logistics City
SYSTEM OVERLOADHas the global recession provided WMS supplierswith a golden opportunity?
GENERATION NEXTMaking an impact with the latest entrants in the Middle East 3PL sector
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
2009 SHOW
REVIEW INSIDE
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJULY 2009 ISSUE 58
MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY
An ITP Business Publication
OPPORTUNITY KNOCKSThe latest research points to growth prospects in theMiddle East‘s 3PL sector
THE RIGHT FREQUENCYHow the Middle East haschampioned RFID within the regional postal sector
Why cold storage is a hot market for Global
Shipping & Logistics (GSL)
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAUGUST 2009 ISSUE 59
ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY
An ITP Business Publication
LOGISTICS LOWDOWNRHS Logistics outlines its development strategy for the United Arab Emirates
WAREHOUSE WORLDWhich industrial zones are leading the Middle East’s logistical growth?
Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects
PARK LIFEwww.arab
iansupplychain.com
OUT NOW!
DIRECTORY
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSSEPTEMBER 2009 ISSUE 60
BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO
An ITP Business Publication
AMBITIOUS PLANNINGWhy ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi
MOUNTING PRESSUREThe benefi ts of adopting vehicle-mounted devices in your warehouse centre
Profi ling the logistics industry’s hottest new destination in focus
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSOCTOBER 2009 ISSUE 61
AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL
An ITP Business Publication
PREVIEW: SITL DUBAIA profi le of the biggest logistics exhibition to hit the Middle East in 2009
BEING CONSTRUCTIVECan the industry measure its health with demand for warehouse construction?
SILENTLEADERGlobelink West Star Shipping steps out of the shadowsto celebrate its 20th anniversary as a logistics powerhouse
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSNOVEMBER 2009 ISSUE 62
STORALL І ARAMEX І DAMCO І CEVA LOGISTICS І SPAN GROUP І FIRST BAHRAIN
An ITP Business Publication
SITL DUBAI REPORTHighlights of the biggest logistics exhibition to hit the Middle East in 2009
CHEMICAL REACTIONThe hidden potential of the petrochemical sector for 3PL service providers
BBriaBr aaaaaB aBr aannnnnn MMMccnnnnnnn HaleHale, ch, chief ief execexecutivutive ofe offi cefi cer, Wr, Waredared Log Logistiisticscs
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSDECEMBER 2009 ISSUE 63
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
An ITP Business Publication
COMPANY PROFILESPerformance reviews with 80 leading institutes from the supply chain industry
NEWS ROUNDUP 2009Looking back at the most prominent logistics news stories in the Middle East
THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRYTHE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
ANNUAL REVIEW
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJANUARY 2009 ISSUE 52
ALSO IN THIS ISSUE HALA SUPPLY CHAIN SERVICES І AGILITY І DUBAI INDUSTRIAL CITY І JAFZA І SWIFT FREIGHT І LOGISTICA
An ITP Business Publication
EASY RIDER
Moh
amed
Iqba
l, op
erat
ions
man
ager
, Har
ley-
David
son
UAE
Is Harley-Davidson on the road to success with its Middle East supply chain operations?
AIMING HIGHEmirates Aviation Collegereveals its postgraduateprogramme in logistics
BUILDING BLOCKSAn exclusive update on warehouse construction at Dubai Logistics City
ANNUAL REVIEW 2009: NEWS ROUNDUP
4 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: NEWS ROUNDUP
APRIL 2009
Th e Dubai Department of Economic
Development (DED) held the fi rst in
a series of logistics workshops to
encourage a stronger relationship
between the private and public
sector. Th e event attracted a
number of fi gureheads from the
logistics industry, including Issa
Baluch (Barloworld Logistics),
Hamdi Osman (FedEx) and Alex
Borg (CILT). “Logistics has always
been a cornerstone of economic
development in the Middle East,” said David Harris, DED’s director
of international logistics services. “Th e better the communication
between the private and public sectors, the more the industry can
fl ourish and support the future growth of Dubai.”
OTHER LOGISTICS NEWS STORIES IN MARCH 2009
• Gulf Agency Company (GAC) expressed a “quiet confi dence” that
its global operations would experience a limited impact from the
recession, with 13% income growth being predicted for 2009.
• Al Hanoo awarded a US$109 million construction contract to develop
the fi rst phase of its Emirates Industrial Cities warehouse complex.
• Patel Integrated Logistics Limited (PILL) commenced a search for
Middle Eastern investors to develop its operations in South Asia.
• Hala Supply Chain Services (HSCS) was ranked 15th in this year’s
Saudi Arabia Start-Up List for excellence in business growth.
Th e logistics industry was warned
that a stream of redundancies from
heavyweights such as Gulf Agency
Company (GAC) and DP World could
“prove costly” to future growth
prospects in the Middle East. Th e
announcement was made by John
Halpin, former general manager
of Hy-Tech Logistics, who stressed
the importance of maintaining a
balanced workforce. “Redundancies
may produce short-term savings,
but what will the long-term cost be? Companies that make knee-jerk
decisions to reduce their headcounts need to consider how these skills
and experience will be replaced,” he explained. “Th e focus should be
holding onto experienced personnel within the Middle East region.”
OTHER LOGISTICS NEW STORIES IN APRIL 2009• RSA Logistics become the fi rst company to commence operations at
Dubai Logistics City (DLC), opening a 25,000m2 warehousing complex in
close proximity to the forthcoming Al Maktoum International Airport.
• Dubai-based Global Shipping & Logistics (GSL) was accredited in four
categories by the International Standardisation Organisation (ISO).
• TALKE Logistics honoured the project manager of its Qatar warehouse
for ensuring the construction was fi nished without a single accident.
• FedEx revamped its packaging material for express deliveries in Bahrain
to support the country’s “Say No To Plastic” community programme.
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAPRIL 2009 ISSUE 55
SSI SCHAEFER І TALKE LOGISTICS І XVISE І CILT І BALTRANS І DUBAI LOGISTICS CITY
An ITP Business Publication
BUILDING THE BIGGER PICTUREPiecing together the multi-million dollar investment behind Aqaba’s logistical transformation
RISKY BUSINESSHas the global recession increased the importance of purchasing insurance?
KEYS TO THE KINGDOMSaudi Arabia returns as a hot investment for the global logistics industry
MARCH 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMARCH 2009 ISSUE 54
EMIRATES POST І EHRHARDT + PARTNER І AGILITY І GAC І HY-TECH LOGISTICS І FIRST BAHRAIN
An ITP Business Publication
TOOLS OF THE TRADE
Gillia
n Le
wis,
regi
onal
logi
stic
s m
anag
er, A
ce H
ardw
are
Building a solid supply chain with Ace Hardware in the Middle East
SCATA 2009 PREVIEWThe latest details on this year’s Supply Chain and Transport Awards in Dubai
EXPRESS STRATEGYWhy the global slowdown will not impact FedEx’s Middle East masterplan
JUNE 2009
DP World, FedEx and Al Islami Foods
were honoured for supply chain
excellence at the Mohammed Bin
Rashid Al Maktoum Business Awards.
Th e annual event, which is organised
by Dubai Chamber of Commerce and
Industry (DCCI), was held at Dubai’s
Madinat Jumeirah hotel to recognise
the achievements of industry leaders
from the logistics, manufacturing,
construction and fi nance sectors.
“Th ese awards have acquired a
massive importance due to their role in highlighting the leading business
practices and excellent performance of certain fi rms,” commented Abdul
Rahman Saif Al Ghurair, chairman of Dubai Chamber. “Th e winners have
set a wonderful example for other companies to follow.”
OTHER LOGISTICS NEW STORIES IN MAY 2009• Singapore Airlines Cargo consolidated its Middle East operations with
a dedicated offi ce at Sharjah Airport International Freight Centre.
• Agility started operations at a 40,000m2 warehousing centre in Riyadh,
Saudi Arabia to support its continued expansion in the Middle East.
• Etihad Crystal Cargo was confi rmed as the latest member of IATA’s
Cargo 2000 initiative to improve the global handling of shipments.
• Th e Chartered Institute of Logistics and Transport (CILT) hailed its
latest seminar in Dubai a success, attracting more than 150 people.
Th e Supply Chain and Logistics
Group (SCLG) commenced a major
research initiative into the Middle
East logistics industry, a senior
offi cial from the Dubai-based trade
association told Logistics Middle
East. A comprehensive range of
information will be collated as part
of the project, 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,” said Dr Kanak Madrecha, member
of SCLG’s regional development committee. “We have launched this
research project to expand the scope of available information.”
OTHER LOGISTICS NEWS STORIES IN JUNE 2009
• Dubai Industrial City confi rmed plans to expand its open storage
area by 3.5 million square feet to meet demand from customers.
• Dubai’s bi-annual exhibition Materials Handling Middle East was
declared a record-breaking success by Epoc Messe Frankfurt.
• Eros Group opened its 13,000m2 warehouse in Jebel Ali Free Zone
South to cope with growth in the consumer electronics market.
• Al Mutlaq United Company signed an agreement to market the ISIS
warehouse management system (WMS) in Saudi Arabia.
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
2009 SHOW
REVIEW INSIDE
MAY 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSMAY 2009 ISSUE 56
AL MADINA LOGISTICS І CILT І FEDEX І AGILITY І DUBAI TRADE І FIRST BAHRAIN
An ITP Business Publication
CITY SLICKERA surprise breakthrough as RSA Logistics opens the fi rst warehouse at Dubai Logistics City
SYSTEM OVERLOADHas the global recession provided WMS supplierswith a golden opportunity?
GENERATION NEXTMaking an impact with the latest entrants in the Middle East 3PL sector
5www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: NEWS ROUNDUP
JULY 2009
SEPTEMBER 2009
Jebel Ali Free Zone announced
plans to align its procedures with
Dubai Logistics City to improve the
effi ciency of supply chain operations
in the United Arab Emirates. Th e
partnership was fi nalised with
the signing of a Memorandum of
Understanding (MoU) between
Economic Zones World (EZW) –
parent company of Jebel Ali Free
Zone Authority (Jafza) – and Dubai
Aviation City Corporation, which is
responsible for Dubai Logistics City and the forthcoming Al Maktoum
International Airport. “Th is is a landmark step and will have a positive
impact on Dubai’s status as one of the world’s leading commercial and
trading hubs,” stated Salma Hareb, chief executive offi cer of EZW.
OTHER LOGISTICS NEW STORIES IN AUGUST 2009• Gulf Warehousing Company (GWC) revealed an investment of US$68.5
million to construct the fi rst phase of its Logistics Village Qatar (LVQ)
project, with 83,000m2 of storage space and 23,200m2 of accommodation.
• Ajman Free Zone Authority secured US$14.7 million of fi nancing from
Ajman Bank for the third phase of its large-scale warehousing complex
in Al Jarf Industrial Area.
• Manara Developments Company revealed its concept masterplan for
Bahrain Investment Gateway, the 600,000m2 warehousing complex
that was previously known as the Al Hidd Development Project.
• Dubai Customs hosted an awards ceremony at Dubai Cargo Village to
honour 41 inspectors from its airfreight department for completing an
in-depth training course on x-ray detectors.
• Abu Dhabi Customs Authority purchased US$8.6 million worth of x-ray
screening systems from America Science & Engineering (AS&E).
• US-based Dependable Global Express opened its fi rst Middle East
facility in Jordan for corporate, government and military customers.
Although the logistics industry
will benefi t from annual growth
rates of 8% in Middle East road
freight volumes, the situation will
present a number of challenges
for governments in the region,
according to a trade report by Booz
and Company. “Th e strength of this
sector is critical to the economic
development of the Middle East.
However, with more trucks on
the road, the region is facing new
challenges,” commented Ahmed El Wetidi, senior associate of Booz
and Company. “Overtired drivers, overloaded vehicles and roads that
are unsuited to higher truck volumes are causing more accidents in
the Middle East compared to the likes of Europe or the US.”
OTHER LOGISTICS NEWS STORIES IN SEPTEMBER 2009
• Maximus Air Cargo was contracted to operate a regular series of
fl ights for Etihad Crystal Cargo in countries throughout the Middle
East, Indian subcontinent, East Africa and Europe.
• Th e global recession claimed its latest victim, with IIR Middle East
being forced to cancel its International Freight Week in Abu Dhabi,
following a limited response from the market.
• Hala Supply Chain Services (HSCS) was selected to design and build
a 15,500m2 logistics complex with a warehouse, service centre and
offi ce space for a leading tyre manufacturer in Saudi Arabia.
• Th e Professional Courier (TPC) launched its services in the Middle
East with a regional headquarters in Dubai, with plans for additional
facilities in Abu Dhabi, Sharjah and other emirates.
• APL Logistics launched a range of consolidation, distribution and
value-added services from Dubai Logistics City.
• Integrated Freight & Logistics (IFL) expanded its offi ce network in
the United Arab Emirates with a facility in Abu Dhabi.
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSSEPTEMBER 2009 ISSUE 60
BOOZ AND COMPANY І GEODIS WILSON І UPS І APL LOGISTICS І MAXIMUS AIR CARGO
An ITP Business Publication
AMBITIOUS PLANNINGWhy ADAC is breaking the mold with its forthcoming logistics park in Abu Dhabi
MOUNTING PRESSUREThe benefi ts of adopting vehicle-mounted devices in your warehouse centre
Profi ling the logistics industry’s hottest new destination in focus
AUGUST 2009
J
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSAUGUST 2009 ISSUE 59
ABU DHABI CUSTOMS І INTERROLL І ARAMEX І DECCAN 360 І DUBAI LOGISTICS CITY
An ITP Business Publication
LOGISTICS LOWDOWNRHS Logistics outlines its development strategy for the United Arab Emirates
WAREHOUSE WORLDWhich industrial zones are leading the Middle East’s logistical growth?
Abu Dhabi Airports Company (ADAC) prepares to take the logistics industry by storm with its warehousing projects
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DIRECTORY
Dubai Customs hosted a meeting
with express logistics companies to
showcase the latest enhancements
for its Mirsal2 e-clearance system.
Th e session was attended by senior
representatives from various courier
fi rms, including TCS Express, UPS,
Elite Couriers, Skynet Worldwide,
DHL and TNT Express, in addition
to Emirates SkyCargo and DNATA
employees. “Dubai Customs is focused
on building a strong relationship
with partners such as the courier sector, which plays an important role
in the economic development of the emirate,” stated Ahmed Mahboob
Musabih, executive director of the customer management division at
Dubai Customs. “Th is meeting was organised to highlight the latest
clearance procedures on Mirsal2 and allow feedback on the customs
clearance needs of courier companies. Th e response was very positive
and we will host a number of similar meetings in the future.”
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSJULY 2009 ISSUE 58
MAXX LOGISTICS І JAFZA І DUBAI CUSTOMS І GLOBELINK І IATA І BOOZ AND COMPANY
An ITP Business Publication
OPPORTUNITY KNOCKSThe latest research points to growth prospects in theMiddle East‘s 3PL sector
THE RIGHT FREQUENCYHow the Middle East haschampioned RFID within the regional postal sector
Why cold storage is a hot market for Global
Shipping & Logistics (GSL)
OTHER LOGISTICS NEWS STORIES IN JULY 2009
• Abu Dhabi Airports Company (ADAC) announced plans to develop a
650,000m2 logistics park at Al Ain International Airport in partnership
with Helios SinoGulf Property Development.
• UPS established a joint venture in Dubai to manage its express
package, freight forwarding and logistics services in the Middle East,
Turkey and certain parts of Central Asia.
• Universities in the United Arab Emirates were encouraged to work with
the Chartered Institute of Logistics and Transport (CILT) to expand the
scope of local education courses in supply chain management.
• Middle East logistics company Agility topped the list of Lufthansa
Cargo’s leading global partners, receiving the airfreight operator’s
‘Planet Award of Excellence’ during a trade ceremony in Europe.
• Globelink West Star Shipping marked its 20th year of operations with
the opening of a warehouse facility at Jebel Ali Free Zone.
• Bahrain promoted its multi-billion dollar logistics credentials at the
European Supply Chain and Logistics Summit in Germany.
• Oman’s Ministry of Manpower issued a special award to Gulf Agency
Company (GAC) to honour its support of the Omanisation process.
6 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: NEWS ROUNDUP
DECEMBER 2009
Dubai World Central (DWC), a
multi-phase development project
that includes Dubai Logistics City
and the forthcoming Al Maktoum
International Airport, is “almost
complete” according to Khalifa Al
Zaffi n, executive chairman of Dubai
Aviation City Corporation. Despite
a number of hurdles in the past year,
including the resignation of Dubai
Logistics City’s chief executive offi cer
Abdullah Al Qurashi, the 140 square
kilometre complex has remained on track to launch operations by the
summer of 2010, with the control tower at Al Maktoum International
Airport almost complete and the runway, associated taxiways and
other components “ready to go”, stated Al Zaffi n during Dubai Aviation
City Corporation’s participation at Dubai Airshow 2009.
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSDECEMBER 2009 ISSUE 63
AIR CARGO І EXPRESS І 3PL І FREE ZONES І MATERIAL HANDLING І TRAINING І TRADE ASSOCIATIONS
An ITP Business Publication
COMPANY PROFILESPerformance reviews with 80 leading institutes from the supply chain industry
NEWS ROUNDUP 2009Looking back at the most prominent logistics news stories in the Middle East
THE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRYTHE HIGHS AND LOWS OF THE YEAR IN THE MIDDLE EAST LOGISTICS INDUSTRY
ANNUAL REVIEW
OCTOBER 2009
Th e global recession has not
deterred the United Arab Emirates
from developing its warehouse and
transportation infrastructure in
the long-term, with research from
Standard Chartered Bank claiming
the logistics industry could emerge
as the country’s biggest asset outside
of oil. Although hydrocarbons is
likely to remain the predominant
contributor to GDP in the short to
medium term – it accounted for
approximately 43% of exports in 2008 – developing other economic
sectors is considered essential to the long-term growth plans of
the UAE. “More than a ‘stop-off ’ point, the United Arab Emirates is
becoming a logistics hub that serves a vast population,” said Philippe
Dauba-Pantanacce, senior economist at Standard Chartered Bank.
“Apart from oil, the country’s central location on the global map is a
natural asset that can be banked upon with certainty in the future.”
OTHER LOGISTICS NEWS STORIES IN OCTOBER 2009
• Jafza International announced a revised plan for its ambitious
development in North America, with the groundbreaking of phase
one being scheduled for the fi rst quarter of next year.
• Wared Logistics formed a partnership with Preferred Freezer
Services (PSF) to develop a network of 12 refrigerated warehouses,
with Saudi Arabia and Egypt being selected for the fi rst facilities.
• BDP Project Logistics supported its Middle East growth by opening
a regional offi ce in Abu Dhabi, with plans to market its services to
the oil and gas, construction and government sectors.
• Momentum Logistics expanded its operations with a container wash
and repair centre at the Sharjah Inland Container Depot (SICD).
• Ehrhardt + Partner Solutions (EPS) launched a research study into
logistics and warehouse solutions for the pharmaceutical sector.
• Th e Supply Chain and Logistics Group (SCLG) hosted a series of
workshops with Patrick Daly from Dublin-based Alba Logistics.
NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSOCTOBER 2009 ISSUE 61
AMANA BUILDINGS І TNT EXPRESS І SNS І GAC LOGISTICS І MORGAN INTERNATIONAL
An ITP Business Publication
PREVIEW: SITL DUBAIA profi le of the biggest logistics exhibition to hit the Middle East in 2009
BEING CONSTRUCTIVECan the industry measure its health with demand for warehouse construction?
SILENTLEADERGlobelink West Star Shipping steps out of the shadowsto celebrate its 20th anniversary as a logistics powerhouse
Safety standards in the Middle
East logistics industry must be
improved to combat a growing
number of warehouse fi res in the
region, according to research by
Duval Messien. Th e company, which
specialises in earthing systems,
has warned that a recent spate of
warehouse fi res in cities such as
Sharjah and Dubai could have a link
with poor adherence to electrical
fault prevention. In contrast, regions
such as Europe and North America have lowered their incident rates by
introducing stringent regulations for the storage and handling of cargo.
“Temperatures in the Middle East can sometimes hit a sweltering 500C
in summer months, so its not uncommon for earthing pits to dry up in
less than three months,” said Sonjib Banerjee, technical director at Duval
Messien. “Th is increases the risk of warehouse fi res, with even a single
spark being capable of quickly spreading and causing damage to cargo.”
OTHER LOGISTICS NEW STORIES IN NOVEMBER 2009• Aramex conducted a groundbreaking ceremony for its warehouse
facility at Dubai Logistics City, which is scheduled for completion in the
fi rst quarter of 2011 and will include a built-up area of 43,000m2.
• CEVA Logistics continued its Middle East expansion with the launch of
a 12,000m2 facility named ‘Th e Pyramid’ in Jebel Ali Free Zone South,
which will operate as the company’s regional headquarters.
• First Bahrain announced the launch of its latest subsidiary, Majaal,
which is being marketed as the fi rst logistics company in the Middle
East to focus on the small to medium enterprise (SME) market.
• GAC revealed an agreement to bring the core documentation services
of European fi rm Swiss Post Solutions to the Middle East.
• CHEP Middle East opened its fi rst consolidation centres in Bahrain and
Oman to capitalise on growing demand for regional pallet services.
• Th e Chartered Institute of Logistics and Transport (CILT) stated that its
local attendance record was broken with a recent seminar in Dubai.
NOVEMBER 2009NEWS AND ANALYSIS FOR SUPPLY CHAIN MANAGEMENT PROFESSIONALSNOVEMBER 2009 ISSUE 62
STORALL І ARAMEX І DAMCO І CEVA LOGISTICS І SPAN GROUP І FIRST BAHRAIN
An ITP Business Publication
SITL DUBAI REPORTHighlights of the biggest logistics exhibition to hit the Middle East in 2009
CHEMICAL REACTIONThe hidden potential of the petrochemical sector for 3PL service providers
BBriaBr aaaaaB aBr aannnnnn MMMccnnnnnnn HaleHale, ch, chief ief execexecutivutive ofe offi cefi cer, Wr, Waredared Log Logistiisticscs
OTHER LOGISTICS NEWS STORIES IN DECEMBER 2009
• Abu Dhabi-based Invest AD purchased a minority stake in Ekol Lojistik
(EKOL) for US$74.5 million, which will fund a regional expansion for
the Turkish logistics company.
• Senior customs offi cials from the Middle East visited the DHL Express
distribution centre in Bahrain to receive a demonstration of the logistics
company’s security and satellite systems.
• Toll Group expanded its Middle East operations with the acquisition
of Dubai-based company Logistics Distribution Systems (LDS), which
operates from a regional warehouse facility in Jebel Ali Free Zone.
• Logfret was contracted to provide logistics support to the Al Sufouh
Transit System Tranway project, which will include 11 tramways, a
10km track and 13 stations during phase one.
• Etihad Crystal Cargo’s new A330-200 freighter made its maiden fl ight
over France, where the aircraft manufacturer Airbus is based.
• Santis HSE Group was awarded a contract to provide forklift training
sessions for Abu Dhabi Airports Company (ADAC) employees.
8 DECEMBER 2009 | www.arabiansupplychain.com
T“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 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 Gateway 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 won 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,” comments Walid Akawi, chief executive offi cer 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.”
Supply Chain andTransport Awards (SCATA) 2009
he third annual Supply Chain and Transport Awards (SCATA) took place in the United Arab Emirates this year, 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 (head of supply chain in ZAFCO).
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 president of Dubai Airports cargo unit).
9www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: SCATA AWARDS
LOGISTICS CATEGORIES
Express Logistics Provider of the Year- TNT Express3PL Service Provider of the Year - Gulf Agency Company (GAC) FMCG Supply Chain of the Year - Unilever
AIR CARGO CATEGORIES
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
SEA FREIGHT CATEGORIES
Port Authority & Terminal Operator of the Year - GulftainerShipping Agent of the Year - Rais Hassan Saadi (RHS) Shipping Company of the Year - Maersk Line Shipyard of the Year - Drydocks World, Dubai
JUDGE’S AWARDS
Material Handling Provider of the Year - SPAN Group Technology Provider of the Year - Ehrhardt + Partner Solutions (EPS) Training & Education Provider of the Year - SP Jain Centre of Management Industrial Area of the Year - Ras Al Khaimah Free Trade Zone Corporate Social Responsibility Award - Gulf Agency Company (GAC)Outstanding Achievement of the Year - Gulf Agency Company (GAC)Hall of Fame Award - His Excellency Sultan Ahmed Bin Sulayem (Dubai World)
SCATA 2009: WINNERS LIST
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11www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
PRADEEP KUMAR, SENIOR VICE PRESIDENT OF CARGO REVENUE OPTIMISATION, EMIRATES
How much importance has Emirates placed on its airfreight operations in 2009?Cargo revenue contributes 19% to the airline’s
total transport revenue, which is one of the
AIR CARGOCARGOhighest of any airline with a similar fl eet
makeup. During the 2008-09 fi nancial year,
Emirates SkyCargo carried 1.4 million tonnes of
cargo, which was an improvement of 9.8% over
the previous year’s 1.3 million tonnes, helping
revenue to reach US$2.1 billion.
In general, how strong in the airfreight market in the Middle East at the moment? Th e Middle Eastern economies have remained
quite buoyant during the global recession,
thanks to the sustained high oil prices of
2007/08. We have actually increased our
frequencies to cope with demand this year.
What makes your airfreight operations different from regional competitors? We have a vast network of 101 destinations
around the world, which we serve from Dubai.
In fact, with the launch of our São Paulo service
in October 2007, we became the fi rst carrier
in the world to directly serve six continents
from a single hub. In addition, customers can
benefi t from our short connections times,
young aircraft fl eet and 43,600m2 Cargo Mega
Terminal in Dubai.
What types of shipments are normally transported by Emirates SkyCargo?Everything from perishables, which accounts
for around 25% of our total cargo, to live
animals, outsized project cargo, electronics,
garments, telecoms equipment, machinery,
auto spares, courier mail and valuables items.
What are your predictions for the Middle East airfreight market in the coming year?Th e worst seems to be over and 2010 results
should be positive on 2009. Th ere is currently
suffi cient demand in relation to the capacity
deployed in this region and our volumes are
holding up. If stability continues through the
last two quarters of this fi nancial year, we are
on track to exceed last year’s fi gures.
EMIRATES SKYCARGO
INTERVIEW: DES VERTANNES, EXECUTIVE VICE PRESIDENT OF CARGO, ETIHAD AIRWAYS
How has Etihad Crystal Cargo fared during the recent economic crisis?Despite the challenges of the global slowdown,
Etihad has continued to expand its fl eet and
increase its connectivity around the world,
which has supported the growth of our cargo
operations. In addition, our product range has
also been developed this year, with the launch
of the Xpress2D service, which off ers express to
door delivery to Europe and North America.
Can you provide details on the volume of cargo that has been transported this year? Etihad Crystal Cargo experienced an increase
in our air cargo volumes during the fi rst six
months of 2009, when we transported around
130,000 shipments, with a total volume of more
than 100,000 tonnes.
How large is Etihad’s combined fl eet of passenger and freighter aircraft?Currently, Etihad Airways operates 18 wide-
bodied aircraft, including a number of brand
new Boeing 777-300ER, Airbus A330-200 and
Airbus A340-500, all of which carry cargo in
the bellyhold of the aircraft. In addition Etihad
Crystal Cargo operates one MD11, which can
transport a maximum of 88 tonnes, and two
Airbus A300-600s with a payload of 42 tonnes.
What destinations are served by Etihad Airways after your route expansion?Th e airline serves more than 40 destinations
around the world at the moment and this
number is constantly increasing. Additional
cargo destinations and global charter fl ights
are also served by a growing fl eet of regional
freighter aircraft. Currently, we provide a
range of all-cargo-services to locations such as
Chennai, Frankfurt, Khartoum, Kolkata, Milan,
Mumbai, New Delhi and Zheng Zhou.
ETIHAD CRYSTAL CARGO
12 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
Established in 2005, Maximus Air Cargo has
emerged as one of the biggest success stories
in the Middle East airfreight sector.
As part of Abu Dhabi Aviation Group, the
company has a specialist focus on outsized
cargo and wet leasing, with a varied fl eet of
eight aircraft. It’s nickname as the ‘heavy-
lifter of the airfreight world’ came after
Maximus more than doubled its turnover
during 2008 – reaching US$110.8 million
compared to $47.3 million the year before.
Th e airline is now on target to hit sales of
$130 million in 2009, according to president
and chief executive Fathi Hilal Buhazza.
“We achieved exceptional growth during
2008 and the upward trend has been even
steeper in 2009 as we secured additional
short and medium term aircraft wetlease
contracts,” he explains. “Our market share
is growing consistently – from government
and commercial customers – partly due
to increased capacity, but mainly because
of providing responsive, practical and cost
eff ective solutions that combine a personal
approach with innovative service.”
As guest speaker at this year’s Freighters’
World Conference in Barcelona, Buhazza
highlighted the company’s success and told
delegates that the Middle East would be
amongst the fi rst regions to recover from the
global slowdown. “Th is region has clear benefi ts
over others to reach European, Asian and
African markets. Added to this, we also expect
freight traffi c to triple over the next twenty
years. All these advantages, combined with a
sound business model, mean that Maximus
Air Cargo is confi dent and optimistic,” adds
Buhazza. “In just four years we have achieved
so much and despite the global downturn,
the future is looking bright,” he concludes.
MAXIMUS AIR CARGO
MIDEX AIRLINES
Marketed as the fi rst cargo-exclusive airline
in the United Arab Emirates, Midex Airlines
commenced operations in 2008 and currently
serves a total of seven destinations, including
India, Bangladesh, Turkey, Lebanon and
France. Even with a global recession, the
company’s director general Jassim Al Bastaki
says operations have continued to develop at
a bullish pace this year and there are plans
to further increase its aircraft fl eet and cargo
handling facilities at Al Ain International
Airport, as well as introduce new locations
into its global network. “At this stage, it’s
important for Midex to expand its presence at
both regional and global levels,” he says. “Th is
will be achieved by increasing the number of
destinations we reach, developing our fl eet
and raising our investments in the sector.”
Midex Airlines, which exhibited at the
Dubai Air Show earlier this year, currently
operates a fl eet of six A300B4-203F (with
a capacity of 45 tonnes) and one B747-200F
(with a capacity of 100 tonnes).
OMAN AIR CARGO
A long-standing veteran in the Middle East
aviation industry, Oman Air has continued
to invest in the development and expansion
of its airfreight business, with one of the
biggest highlights of the year being its IATA
Operational Safety Audit (IOSA) renewal,
which followed a fi ve-day evaluation into
cargo operations, ground handling, fl ight
systems and aircraft maintenance.
“Oman Air Cargo provides a world-class
standard of cargo service and this year’s
IOSA renewal has once again demonstrated
our expertise in airfreight management,”
explains Sherief Padiyath, general manager
of Oman Air Cargo.
Earlier this year, the local government
raised its stake in Oman Aviation, the
parent company of Oman Air, from 34%
to 82%, investing approximately US$130
million in the company through a private
placement. Th is will provide the foundation
for ambitious expansion over the next four
years, with a major restructuring and re-
branding initiative, together with plans to
double the size of its fl eet and signifi cantly
increase its passenger and cargo routes.
“Despite a global downturn in the cargo
sector, Oman Air Cargo has enhanced its
capacity utilisation and revenue with our
fl eet growth, while developing our global
network with high-frequency services to 31
on-line and 41 off -line destinations around
the world,” continues Padiyath. “We recently
witnessed growth of 55% with our cargo
uplifts in comparison to last year and this
fi gure is expected to further increase over the
coming months, in line with our expansion
plans and new route’s maturity.”
To highlight the growth of its service
portfolio, Oman Air Cargo also took part in the
TransOman logistics exhibition this year, with a
positive response being reported from existing
and future clients. “Th ere was plenty of interest
from our participation in TransOman and we
are exploring a range of business opportunities
as a result,” concludes Padiyath. “It was perfect
timing to support this very interesting period
in our history.”
13www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: AIR CARGO OPERATIONS
QATAR AIRWAYS CARGO
As one of the fastest growing airlines in
the world, Qatar Airways has invested a
considerable amount of money to develop
its cargo operations in the past year. Th e
Doha-based airline is currently delivering
to 87 destinations around the world
using its Airbus A300-600 freighters, in
addition to a fl eet of 68 passenger aircraft.
However, with major plans for expansion,
it predicts an increase to 110 aircraft and
120 destinations in the next four years.
Investments have also being ploughed
into technology upgrades in 2009 and
Qatar Airways recently became a regional
associate member of IATA’s Cargo 2000
programme. “Our goal is to increase the
effi ciency and quality of service provided
to the airline’s customers with proven and
agreed processes,” states Akbar Al Baker,
chief executive offi cer of Qatar Airways.
ROYAL JORDANIAN AIRLINES CARGO
INTERVIEW: INGO ROESSLER, VICE PRESIDENT OF CARGO, ROYAL JORDANIAN AIRLINES
How important is the airfreight side of business to Royal Jordanian Airlines?Cargo operations play an important
role in improving the profi tability of our
passenger fl ights, while cargo charters help
to leverage the freighter operations. Royal
Jordanian Cargo’s handling facility is the
main gateway for the majority of airfreight
movements coming to Jordan and we will
continue to invest in providing world-
class services, including e-freight.
Has the Middle East airfreight market performed strongly this year?Th e regional market has been relatively
resilient in 2009. However, we have not
witnessed the growth rates that were
common in previous years. Iraq remains
the exception, where eff orts to re-build the
country have triggered signifi cant demand
for both charters and scheduled services.
Royal Jordanian has been the network
leader to Iraq for many years, operating
scheduled fl ights to Baghdad, Basra, Erbil
and Suleymania, with more to follow.
What types of shipments are normally transported by Royal Jordanian Cargo?Major exports from Jordan are vegetables
and pharmaceuticals. Otherwise we move
everything from automobiles to zebras.
What makes your airfreight operations different from regional competitors? Royal Jordanian has traditionally been
considered a technology leader in the Levant
area. Th erefore we introduced a best-in-class
cargo information system supplied by CHAMP
Cargo Systems earlier this year. We are also
working with IATA at the moment to join the
e-freight initiative by early 2011. Th e technical
infrastructure is available with forwarders and
RJ, but some legislative issues are holding us
back from becoming “early adopters” in 2010.
What are your predictions for the Middle East airfreight market in the next year?Th e Middle East will remain a buoyant market
for air cargo operations and achieve growth
rates that are above world-average, which
will benefi t airlines such as Royal Jordanian.
A strong recovery of the Iraq economy will
further boost this growth, as will a greater level
of liberalisation in the region as a whole.
Saudi Arabian Airlines privatised its cargo
operations earlier this year and, now an
independent entity, the division has been
renamed Saudi Airlines Cargo Company.
With central facilities in Riyadh, Jeddah
and Dammam, the company operates a fl eet
of Boeing MD-11 and 747 freighters to various
destinations in Asia, Africa, Europe and the
United States. It has also continued to use cargo
capacity on the scheduled passenger fl ights of
Saudi Arabian Airlines.
“Th e strategy for Saudi Airlines Cargo
Company in 2009 has included the expansion
of our network in the Middle East and other
markets around the world,” explains Fahad
Hammad, chief executive offi cer of Saudi
SAUDI AIRLINES CARGO COMPANY
Airlines Cargo Company. “In addition, we
have continued to restructure and develop
our information technology systems.”
Over the past fi ve years, Saudi Arabian
Airlines has experienced an average growth
of 5% in airfreight volumes, while its revenues
exceeded US$560 million in 2008. Hammad
believes the privatisation will allow this
momentum to continue and lead to a series of
new commercial alliances. “We are confi dent
that Saudi Airlines Cargo Company will
continue to increase its freight volumes,
maintain its leading role in air cargo within
the Middle East and overcome the challenges
that have been presented by current global
economic uncertainties,” he concludes.
15www.arabiansupplychain.com | DECEMBER 2009
INTERVIEW: GARRY KEMP, DHL AREA DIRECTOR FOR THE MIDDLE EAST, NORTH AFRICA AND TURKEY
How has DHL Express performed in the Middle East over the past year? Over the last 12 months, we have continued our
focus on providing reliable, fast, effi cient and
secure solutions for customers in the Middle
East and beyond. It’s been a challenging year
though, as the economic diffi culties arrived in
the Middle East later than across Europe and
the United States. Almost all businesses across
the globe have been aff ected in some way by the
economic crisis and many of those businesses
are our loyal customers.
Have you adopted a particular approach to tackle the market downturn?We took the global economic crisis in our stride
and focused our energies on logistical and
operational process effi ciency, as well as airline
safety and standardisation. At the same time,
we ensured employees were satisfi ed and able
to perform at their best in 2009.
What factors have helped to improve your operational effi ciency in the Middle East?Th e new infrastructure that was put into
place in 2008, including our facilities in Jordan
and Jebel Ali Free Zone, have made a positive
impact on DHL’s service, both in the region and
throughout the world. Due to the geographical
location of Jordan, the new hub has improved
our regional infrastructure and increased the
transit speeds of goods travelling via road. Th e
launch of Aerologic, a joint venture cargo airline
of DHL Express and Lufthansa Cargo, in 2009
has also strengthened DHL’s aviation network.
Our new B777F is now in operation connecting
Bahrain to the European aviation network.
Have there been other focus areas for DHL during the global recession?Our focus on expediting and streamlining
processes in 2009 was coupled with eff orts
to boost our safety standards in the region,
which resulted in a number of milestones. For
EXPRESSLOGISTICSLOGISTICS
example, DHL Aviation EEMEA earned
IATA Operational Safety Audit (IOSA)
certifi cation, which uses internationally
recognised quality audit principles to
assess the safety of airlines. Th e entire
team at DHL Aviation EEMEA, which is
based in Bahrain, worked hard to achieve
this certifi cation and demonstrate our
commitment to quality and safety.
Any other highlights from 2009?DHL Express received the ‘Best Company
to Work For’ award in Saudi Arabia earlier
this year in recognition of employment
practices and high working standards
for employees. Nour Suliman, general
manager of DHL Express KSA, was
presented the award by Prince Faisal
bin Salman, chairman of Saudi Research
and Marketing Group, during a special
ceremony in Riyadh.
With courier companies facing pressure to
evaluate their service portfolio as a result of the
global recession, Empost made a decision to
revamp its global delivery services earlier this
year, with a maximum discount of 50% being
introduced for express transportation to more
than 200 destinations around the world.
“Since we recently started a major expansion
of international services, Empost wanted to
reward our customers with a substantial rate
reduction,” explains Sultan Al Midfa, CEO of
Empost. “Th is off er was part of a new strategy
to expand our customer base through value
additions and upgraded standards.”
Under the revised service, customers can
send items of non-commercial value, such as
letters, books and brochures, for time-defi nite
and customs cleared door to door delivery,
with shipments being collected by courier staff
without extra charges. “We are fully focused on
emerging stronger after the recent slowdown
that has aff ected every sector, every industry,”
Al Midfa adds. “We believe these new rates will
help to boost our relationship with customers.”
To keep its customers updated on service
upgrades, Empost also introduced a number
of functions to its website in the summer,
including shipment tracking, rate calculator,
online booking and invoice printing. “We have
adopted the latest technology for our website
and will launch several more online off erings in
the near future,” concludes Al Midfa.
EMPOSTDHL EXPRESS
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
16 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
INTERVIEW: HAMDI OSMAN, SENIOR VICE PRESIDENT OF FEDEX IN THE MIDDLE EAST REGION
How do you think the global recession has impacted Middle East logistics companies? Th e situation has led to tough times for
companies in this sector, from small to medium
sized businesses and even the big players.
However, the reason some have faced problems
or shut their operations is because somewhere
or somehow they failed to pay attention or listen
to their customers and this is something that
FedEx has done very well over the years. We have
been a good model for other companies because
we are dedicated to the needs of customers.
FedEx was awarded by Sheikh Mohammed Bin Rashid Al Maktoum this year. Was that a major highlight in the past year?Yes defi nitely. We were honoured at the
Sheikh Mohammed Bin Rashid Al Maktoum
Business (MRM) Awards in the Corporate
Social Responsibility (CSR) and Supply Chain
Excellence categories. Th e entire team was very
proud to be recognised for this contribution to
the market, because FedEx always seeks to off er
the best in fl exible and innovative solutions.
Can you provide an example of a regional innovation that FedEx has introduced for Middle East customers in 2009? Earlier this year, we pioneered a new, state-of-
TCS EXPRESS
INTERVIEW: MAZHAR AYUB KHAN,HEAD OF INTERNATIONAL FREIGHT AND LOGISTICS AT TCS EXPRESS
How do you think the Middle East logistics industry has fared in 2009?Th e global recession had a major impact
on logistics operations in the Middle East,
especially Dubai, and while the initial panic is
starting to fade away, it will take years to bring
the confi dence back to this shattered market.
In particular, the crisis has taken its toll on
the bottom line of express mail and courier
companies, and while some have made claims
about marginalise growth, the results have
been grim for several others in the industry.
What challenges have recently been faced by TCS Express in the Middle East?It’s been a year of struggle, although we benefi ted
from an early reaction to market challenges,
which helped to improve our bottom line by 5%
from January to September 2009. In addition,
we opened a new outlet in the Deira district of
Dubai to facilitate our growing customer base.
Have new services been introduced by TCS Express in the past year?Yes. Dubai Metro has become a reality in
2009, thanks to the visionary leadership of
the emirate. As a result, we have introduced
this new transportation mode to our delivery
network for packages and other items, with a
dedicated team of On Train Couriers (OTCs)
being appointed. Th is will ensure a faster
delivery for customers and also reduce the fuel
emissions of TCS Express.
Any other highlights from 2009?TCS further supported our Social Corporate
Responsibility (CSR) initiatives this year by
hosting students that are learning about trade
and transport from international universities
and business schools. Our sixth batch from
France recently completed their research work
and earned their certifi cates for placements.
Th ere are very few logistics companies in this
region that have the capacity to off er vocational
trainings for international students and luckily
we are amongst the only ones in the Middle East
to date.
FEDEX
the-art desktop tracking tool to provide
customers with real-time visibility
on the status of their shipments.
Available in the United Arab Emirates,
Bahrain and Kuwait, FedEx Desktop
marked the latest advancement in our
commitment to customer innovation,
with functions such as a ‘drag and drop’
feature, which allows customers to drag
details of their shipment onto their
desktop, or the ability to give shipments
‘nicknames’ to help with tracking
purposes. Users that don’t want to
see the programme on their desktop can
let the application run in the background
and receive critical alerts via a pop-up.
FedEx also hosted its fi rst Grand Prix Experience in Dubai this year. What was the purpose of this event?Th is was held towards the end of the year
and proved a great success. It provided
our guests with the opportunity to
test their driving skills in a range of
automotive challenges, such as karting,
high-speed taxi-ride driving and obstacle
course tests. Teamwork, speed and a
relentless commitment to be the best are
core FedEx values that were also present
at this inaugural event.
What are your future predictions for the Middle East courier market?Th e market has a huge amount of
potential in the Middle East and other
emerging markets. I believe it will
continue to develop at full pace as soon
as global trade gathers momentum.
17www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: EXPRESS LOGISTICS
UPS
TNT Express has reported a limited impact
from the global recession in the Middle East,
with country manager Bryan Moulds hailing
its regional business performance as “better
than expected”.
Th e company, which was named Express
Logistics Provider of the Year at the Supply
Chain and Transport Awards (SCATA) 2009 in
Dubai, has benefi ted from recent investments
in the Middle East, including the expansion
of its road network and launch of a dedicated
US$11 million facility in Jebel Ali Free Zone. As
a result, it has secured a number of lucrative
contracts in the past year, including a two-
year agreement worth $1.6 million per annum
to provide Volvo Middle East with express
distribution services. Other signifi cant wins
have included Dubal and Hewlett-Packard.
“Like everyone else in the world, we braced
ourselves for a hit this year, but we are glad to
say it never came,” states Moulds, who heads
TNT’s operations in the United Arab Emirates.
“Logistics, like any other service provider, is
traditionally one of the fi rst to be reviewed. But
it seems that stable volumes, combined with
a few great contract wins, have kept us on our
growth trend in the region. In a way, the recent
economic challenges have led us to create a
stronger, wider and more robust operation.”
Despite a slowdown in the courier
sector, United Parcel Service (UPS)
managed to boost its market share in
the Middle East this year by launching
a range of express delivery solutions. In
particular, its domestic express service
was introduced inside the UAE and 15
additional countries across Europe,
Africa, the Middle East and Latin
America, enabling shippers in these
countries to consolidate their package
delivery services with one carrier to
eliminate multiple shipping processes
while reducing their overall costs.
“Every industry or market is unique
and has its own challenges, which
can hinder the smooth fl ow of work.
In order to eff ectively address these
issues in 2009, we concentrated on
providing fl exible delivery solutions
that are in tune with the demands of
our customers businesses,” explains
John Tansey, general manager of UPS
in the UAE. “With the domestic express
service, customers are able to use the
same technology platform for tracking,
visibility and billing of domestic and
international shipping.”
In the midst of a challenging
economic environment, UPS also
continued to pioneer the concept of
social corporate responsibility in the
logistics industry, with donations being
made to Al Noor School for Special
Needs and 88 - Making a Diff erence,
a non-profi t organisation that promotes sports
and physical activity amongst children.
In October, UPS also announced a multi-year,
multi-million dollar initiative to improve the
capabilities of relief organisations to respond
to global emergencies. Th e eff ort, which will
involve both UPS and Th e UPS Foundation,
begins with a commitment of US$9 million over
the next two years in the form of substantial
fi nancial grants, in-kind services and the
deployment of logistics expertise.
“As part of our continued commitment to
sustainable business practices, we are also
seeking ways we can contribute to a cleaner
environment,” continues Tansey. “We are
looking, for example, to implement existing
solutions and best practices from our business
units and operations in North America and
Europe into our Middle East operations.”
Th e highlight for UPS this year was the
announcement that Dubai had been selected
as the home-base for its latest joint venture,
which has been launched to coordinate the
growth of the company’s express package,
freight forwarding and logistics services in
the Middle East, Turkey and parts of Central
Asia. Although specifi c terms of the agreement
were not disclosed, UPS will assume a majority
stake in the project and has acquired the
small package operations of Unsped, its
existing service agent in Turkey. “Demand for
3PL providers is increasing in the region and
this trend is likely to continue next year, as
companies seek effi cient means of transport
through trusted carriers,” concludes Tansey.
TNT EXPRESS
19www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
Over the past 30 years, Agility has emerged
as a leading global provider of integrated
logistics solutions and 2009 marked another
breakthrough year for the company, with more
than 37,000 employees and over 550 offi ces now
in place throughout the world. “Th is has been
an interesting year in the context of the wider
global fi nancial crisis impacting on industries
and markets throughout the world, including
that of logistics,” states Elias Monem, Agility’s
CEO in the Middle East and North Africa.
“However, we have defi ed the downturn and
posted an estimated 5% increase in operating
profi ts for the fi rst six months of 2009.”
Agility has been very active with
infrastructure developments in the Middle
East this year, including the completion of a
60,000m2 facility in Jebel Ali and 40,000m2
warehouse in Riyadh. Th e company also
signed an MOU with GWC in Qatar to further
strengthen its local and regional division,
which was more than justifi ed considering its
major contract to provide RasGas with supply
chain solutions in the country.
“We have a strong balance sheet, which will
allow us to navigate through these challenging
times,” adds Monem. “Over the next few months,
we will be reviewing our plans and new external
opportunities to determine if the timing is right
to accelerate our eff orts or take advantage of
new market conditions.”
THIRD PARTY LOGISTICSLOGISTICS
AGILITY
Established in the 1980s, Al-Futtaim
Logistics has become a regional
provider of supply chain solutions
with a truly global reach, off ering a
range of supply chain solutions that
extend to freight management and
customs brokerage, warehouse and
inventory management, domestic
and international transportation and
value-added services. “We believe in
continuous improvement and that’s
the reason Al-Futtaim Logistics is
now recognised as one of the leading
logistics service providers in the
region,” states Tom Nauwelaerts, head
of Al-Futtaim Logistics. “More than 700
people are currently employed by the
company and we operate warehouse
facilities totalling 2 million square feet,
together with a transport fl eet of over
200 vehicles.”
Growing so strongly has posed
many challenges in 2009, according
to Nauwelaerts. “During the past year, where
growth has been moderate, we have taken
this opportunity to catch up and prepare for
the next level of growth in the UAE,” he says.
“We have re-organised our company structure
and re-aligned our capacity and underlying
infrastructure. A lot of eff ort has gone into
fi nding new ways of minimising our costs and
increasing the effi ciency of our operations.”
Nauwelaerts is a strong believer that the
logistics business is all about having the right
people. As a consequence, he has focused on
making sure the company attracts and retains
the best people in the market. “In particular,
training and development is considered as
essential to enhancing customer satisfaction
and effi ciency of our operations,” he says.
“In addition, Al-Futtaim Logistics has been
developing along three main axes, being the
build of new warehousing, the expansion of our
in-house transport fl eet, and the establishment
into new regions where the wider Al-Futtaim
Group has grown in the past years.”
AL-FUTTAIM LOGISTICS
20 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
AL MADINA LOGISTICS
At a time when the global recession has
raised alarm bells for the logistics industry
in developed markets such as Europe and
the United States, it seems the Middle East
is still considered a viable region for market
growth in the coming years. In particular,
the Sultanate of Oman has been identifi ed as
a hidden gem for the regional freight sector,
with a recent report by Business Monitor
International (BMI) forecasting an average
increase of 4.5% per annum between
2006 and 2010, which has already proved
benefi cial for homegrown players such as Al
Madina Logistics Services (AMLS).
Th e company has grand ambitions to
establish a warehouse network throughout
the Sultanate, which will measure 275,000m2
in total and host a complete range of
supply chain solutions, including storage,
transportation and consultancy services.
“We’ve reached a fundamental stage in
our development strategy. In addition to
evolving the AMLS service portfolio to meet
customer needs, we’re laying the foundation
for short-term and long-term growth,”
explains Mahmood Sakhi Al Balushi, chief
executive offi cer of AMLS.
Although the warehouse developments
have been identifi ed as the centre pieces
of the company’s development strategy,
they will be complemented by a major fl eet
expansion, technology overhaul and entry
into other Middle East markets within the
space of a year. “Th ere are diff erent aspects
to our planned development, but everything
is connected and will be conducted in a
seamless manner,” adds Al Balushi. “For
example, our coverage was extended to the
entire GCC region in the fourth quarter of
2009, with our fl eet being increased to over
300 vehicles. A major technology investment
was also confi rmed this year to bring each of
these operations together.”
AL MAJDOUIE
ARAMEX
SYED MUSTAFA, VICE PRESIDENT OF ALMAJDOUIE LOGISTICS
What has the global recession impacted Al Majdouie Logistics in 2009?Logistics has been aff ected around the
world by the economic downturn, including
the Middle East. However, Almajdouie has
qualifi ed and experienced people that can
identify market opportunities, regardless
of wider challenges. Lots of companies are
screaming about the recession, but others,
including our company, take a pause to
evaluate themselves and consider the
situation as a chance to progress.
What factors have supported your recent growth as a logistics service provider?We have fuelled our expansion with a
number of joint ventures, including a
Riyadh-based project with Sinotrans and
also Maxx Logistics in Dubai. Th at project
has been particularly aff ected due to
economic crisis, but its customer base has
steadily grown and I believe it will experience
a considerable amount of success next year.
What has been your focus for 2009?Traditionally, Saudi Arabia has been the
Aramex has crossed a number of milestones
in 2009, including the launch of several new
products and services, the introduction of
new locations into its network, and a trail
of recent partnerships and acquisitions. Th e
results from this action-packed year have
spoken volumes for the logistics company’s
success, with a 24% increase in net income
for the fi rst nine months of 2009, compared
to the same period in 2008.
“Th ese fi nancial results have been a
testament to our business model, our
resilience and our continued ability to
perform well in challenging economic
conditions,” says Hussein Hachem, Gulf
CEO of Aramex. “Although the fi nancial
performance has been going from strength
to strength, the key drivers of our success
continues to be the entrepreneurial spirit
of employees and the fl exibility of our multi
product off ering.”
Recent product launches have included
Value Express, an economical solution for
express shipments within the Middle East,
North Africa and South Asia. Th e company
strongest market for our heavylift business and
we have maintained a market share of between
67% to 93% for last nine years. However, we now
believe that our market share should not exceed
60% in this country, so that the focus can shift
to other parts of the region, with major
contracts recently being secured in Abu Dhabi,
Dubai and Bahrain.
How has the regional market changed since Al Majdouie started operations?When we started, local companies did not
understand the concept of outsourcing their
supply chains. We had to education the market.
However, businesses are more educated now
and understand the importance of logistics.
also expanded its delivery channels for local
express services in the United Arab Emirates
with Dubai Metro being introduced into its
transport network. Local operations were also
boosted by the ground breaking of Aramex’s
new warehouse in Dubai Logistics City, which
is scheduled for completion in the fi rst quarter
of 2011. “Th is facility will further develop our
capacities in the region and we are also looking
at expansion opportunities in emerging
markets, especially in Africa and Central Asia
in the coming year.”
21
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
www.arabiansupplychain.com | DECEMBER 2009
CEVA Logistics has a network of 19 offi ces in
the Middle East and North Africa (MENA),
with plans to invest US$800 million for a major
regional expansion. Part of this budget was
allocated for the launch of its 12,000m2 regional
headquarters in Jebel Ali Free Zone earlier this
year. “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,” says Gianfranco Sgro, president of
CEVA Logistics in South Europe, Middle East
and Africa. “Th e publishing market is also
emerging, especially for books and magazines in
countries such as the UAE and Saudi Arabia.”
CEVA LOGISTICS
South Africa’s Barloworld Logistics made a
grand entrance into the Middle East logistics
industry in 2008 by acquiring Swift Freight
International, a leading regional freight
forwarding company. Since the business deal,
Warren Erfmann, CEO of Barloworld Logistics
in the Middle East and Asia, has taken the reins
to steer the company towards future growth.
“Th is has been a very exciting and challenging
year. Although there is still much to be done, it
is encouraging to see the progress that has been
made with Barloworld Logistics in the Middle
East, with re-branding activities, restructuring
and various operational enhancements to
streamline operations and enhance
services according to the Barloworld
Logistics standard.”
Swift Freight recently marked its 20th
anniversary and Erfmann is adamant
that even under Barloworld Logistics
management, their offi ces will continue
to focus on areas that made the company
one of the leading freight forwarders in
the region. “A major reason Barloworld
Logistics acquired Swift was its extensive
African network. Swift went into Africa
when the continent was experiencing
turbulent times, with a strategy and a lot
of passion. It has been a pioneer in Africa
in many ways, being one of the fi rst
companies in the UAE to see the huge
potential of the continent,” he states.
“Th e fact that Swift always had a clear
strategy for Africa, with Dubai being used
as a hub to facilitate trade, has without
doubt helped the company to be a market
leader on this trade lane. Now, 20 years
later, Swift continues to thrive in the
African market, which is a culmination
of many years of extremely hard work
and gritty determination.”
BARLOWORLD LOGISTICS
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22 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
INTERVIEW WITH ROLF HABBEN-JANSEN, GLOBAL CEO OF DAMCO
Can you provide a backdrop to this year’s merger of Maersk Logistics and Damco?Basically, the A.P. Moller-Maersk Group made a
decision to combine its Maersk Logistics brand,
which focuses on supply chain management
activities, and its Damco brand, which deals
with freight forwarding. As a result, both of
these entities were merged on a global basis
and commenced operations under the single
Damco brand from 7th September 2009.
To what extend have Maersk Logistics and Damco operated in Middle Eastern countries before the merger took place?We have a regional offi ce in Dubai, which is
supported by a network of other offi ces in
countries throughout the Middle East, such
as Bahrain, Saudi Arabia, Qatar and Oman.
Together, these facilities have provided a range
of services to customers in the region, from
basic freight forwarding to advanced supply
chain management, which have been off ered as
both Maersk Logistics and Damco. Following
the merger, the entire spectrum of services will
be operated under Damco.
How important is this region for Damco?We have traditionally placed a great deal
of emphasis on emerging markets and that
includes the Middle East. In fact, I would state
that from a global perspective, our share of
the emerging markets is probably second-to-
none. Th e only international player that comes
close would be Agility. So yes, the Middle
East is important, although our presence
could be stronger and we defi nitely have high
expectations for developing here in the future.
DAMCO
DANZAS
INTERVIEW: ERIC PILLING, COUNTRY MANAGER OF DANZAS
How important is the Middle East to the global operations of Danzas?Th e Middle East is one of the most dynamic
regions in the world and has been recognised
as a leading hub for logistics operations by a
number of diff erent industries, including the
life science, automotive and technology sectors.
Danzas and its parent company Deutsche
Post World Net are committed to providing
our customers with the best possible service
in this region to help support their growth
aspirations. Th is is driving our investment in
new infrastructure across the Middle East.
How has this investment been spent?In November last year, we opened a 80,000m2
warehouse in Dubai’s Jebel Ali Free Zone,
which is the largest of its kind in the
Middle East. Th e facility has been valued at
approximately US$50.4 million and includes
a built-up area of 54,000m2. It is fully air-
conditioned and has been equipped with
world-class security infrastructure, which
will be certifi ed under the Technology Asset
Protection Association (TAPA) guidelines.
Which industries are you targeting with this warehousing facility?Our primary market is the pharmaceutical
industry, since we have experienced a
growing amount of demand from this sector
in the Middle East. Th e facility has cold chain
functionality to better serve the unique
requirements of the healthcare market. A
number of value-added services will also be
provided, such as labelling and kitting.
Any other highlights from this year?Danzas recently opened an offi ce at the
Dragon Mart retail complex in Dubai and
had 50 of our Asia-based customers attend
a special launch ceremony at the facility. We
have also spent a lot of time in looking for
the right employees and actively promote
the Middle East as a place where we want to
develop people’s careers. We are aggressively
going through our global network to attract
the right sort of talent to this region.
DB SCHENKER
DB Schenker continued its Middle Eastern
expansion with the launch of Schenker
Saudi Arabia this year, which will focus on
warehousing and transportation services in
the Kingdom. Th e company has previously
been represented by a network of partners
in Saudi Arabia, but opened a separate
entity on 1st March 2009, with a central
offi ce in Riyadh and additional facilities in
Dammam, Jeddah and Al Jubayl. “Schenker
Saudi Arabia is fully integrated into DB
Schenker’s worldwide network and off ers a
full range of logistics services, with a major
focus on the project logistics business,” says
Dr Detlef Trefzger, member of Schenker
AG’s management board for contract
logistics and supply chain management.
“Th is is one of the most interesting growth
markets for global network and logistics
activities and there are plans to set up
other national companies and cooperation
agreements in order to further deepen and
expand the business.”
Has the recession impacted your growth?We have been aff ected, although there has
been a level of recovery and our key objective is
returning to growth in the coming months.
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24 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
GAC LOGISTICS
Earlier this year, GAC expressed a “quiet
confi dence” that its global empire of
shipping, marine and logistics services
would experience a limited impact from
the continued recession. Now, with 2009
drawing to an end, the Middle Eastern
company maintains its stance and believes
a market recovery is around the corner.
“GAC has developed a diverse service
portfolio, and built up strong customer
base which put us in good stead,” states Bill
Hill, group vice president, GAC Logistics. “It
is important that we stick to our strategy
and not compromise on service standards.
We stay competitive by improving the
operational effi ciency. We also stay close to
clients, understand their predicaments and
off er cost-eff ective solutions to help them
weather the storms of the economic slump.”
Several clients had enhanced their
partnership with the 3PL provider this year
– testament to their confi dence in GAC’s
services. Th ese include pharmaceutical
distributor Zuellig Pharma, which renewed
its decade old relationship with GAC,
and paediatric nutrition company Mead
Johnson, which appointed GAC to handle its
Philippines/Th ailand trade, in addition to
its 3PL requirements in Th ailand.
GAC also maintained its leadership in
special events logistics, handling concerts
for the likes of Coldplay and Duran Duran,
while it also launched GAC Sports Logistics,
which lent its expertise to the MotoGP in
Qatar and the International Boat Show in
Bahrain. “Th ese projects have all contributed
to our success,” says Hill. “It shows that we
take a long term approach to business, and
continue to invest and expand to meet the
requirements of customers.”
GEODIS WILSON
SASCHA GEIKEN, UAE MANAGING DIRECTOR OF GEODIS WILSON
Can you summarise Geodis Wilson’s position as a logistics service provider?Geodis Wilson is part of the Geodis Group,
which has around 26,000 employees in total,
spanning 12 countries around the world.
We’re currently ranked as a top fi ve player in
the European logistics market.
How important is the Middle East as a market to your global operations?Th e region has emerged as a popular
location for supply chain activities and we
have selected Dubai as a strategic hub for
both contingent markets and door-to-Africa
shipments. More importantly, the emirate
has also become one of the three major sea
and air cargo hubs within our network.
To reinforce this development, a number
of UAE management appointments were
announced this year, including my position
as managing director for operations.
What are your primary objectives as managing director of the company?I am based at Geodis Wilson’s regional
headquarters in Dubai with responsibility
Th e current slowdown in the logistics sector
is the fi rst that Global Shipping & Logistics
(GSL) has encountered since its launch in
2006. Until now, the sector has remained
a lucrative playground for 3PL companies,
with growing demand for warehousing and
transportation services throughout the
Middle East. However, these glory days have
been painfully jeopardised by the global
recession and while the market has not
crashed, the majority of logistics companies
have adopted a cautious approach towards
development plans. In complete contrast,
the recent expansion of GSL’s warehousing
complex in Dubai Investment Park has
proved that it’s business as usual for the
relative newcomer, which has captured
a sizeable share of the UAE’s market for
temperature controlled and cold storage.
“Th e expansion was necessary because
our initial facilities were operating to full
capacity and demand was continuing to
increase,” says Khalid Al Shirawi, executive
director of GSL. “In response, we decided
to double our warehousing size in phase
for customer relations in the Middle East. In
addition, I will overlook the long-term growth
of our freight management and supply chain
services, with a team of around 70 employees
in Dubai and Abu Dhabi.
How do you plan to develop your regional operations in the coming years?Th e UAE, Kuwait and Saudi Arabia are
important markets and we will continue to
develop the best platform to support the needs
of customers. We are looking into new offi ces
in Abu Dhabi and Saudi Arabia, as well as
strengthening our existing offi ce in Kuwait.
two and the space has almost been booked
already. Th e response is truly overwhelming
and our thoughts are quickly turning to a third
phase of development, which will commence
next year and should be completed in 2011.
We are also contemplating an expansion into
neighbouring countries, because clients are
asking for our business model to be brought
into other markets in the region.”
GLOBAL SHIPPING & LOGISTICS (GSL)
25
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
www.arabiansupplychain.com | DECEMBER 2009
GLOBELINK WEST STAR SHIPPING
A limited number of companies have
experienced the Middle East logistics industry’s
roller coaster of highs and lows in the past 20
years. However, launched in October 1989 - and
celebrating its second decade of operations
this year - Globelink West Star Shipping has
emerged as a veteran trading house in the
region, with plenty of experience in succeeding
during the good times and the bad times.
At the helm of this remarkable journey
is Martin Aranha, who launched West Star
Shipping in the late 80s with ambitions to
create a leading specialist in shipping, LCL
groupage and freight forwarding. Like many
of its peers, the dream venture started with
humble beginnings, mainly consisting of three
employees working around the clock to increase
its brand presence, develop a competitive
advantage and receive acceptance from both
customers and vendors. Th e goals might have
seemed ambitious, but their relentless eff orts
paid off , with the company now employing
over 540 people in the United Arab Emirates,
supported by a network of offi ces throughout
the country and turnover of US$165 million
in 2008. “I guess we are a perfect example
of the Dubai dream,” laughs Aranha when
questioned about this success story. “It’s
been a steady process though and we have
continuously grown over the years to reach
our current position as market leader.”
Globelink West Star Shipping has a
central headquarter in Bur Dubai, with
supporting offi ces and warehouse facilities
in Jebel Ali Free Zone, Dubai Cargo Village,
Dubai Airport Free Zone, Al Quoz Industrial
Estate and Dubai Investment Park, in
addition to Sharjah and Abu Dhabi. Th e
most recent addition to this network is a
fl agship warehouse in Jebel Ali Free Zone
South, which was inaugurated in June 2009,
featuring 96,000 square feet of warehouse
space and 12,000 square feet of fully-covered
outdoor storage. “Th e opening of this facility
was another milestone in our history,”
explains Aranha. “It’s only been a couple of
months, but the business from this facility
has already exceeded our expectations and
received a warm response from the market.”
A further expansion of the company’s
warehouse network is planned in the coming
year, including a soon-to-be-opened facility
in Kuwait, followed by the Kingdom of Saudi
Arabia and Qatar. In addition, investments
will continue to be ploughed into its home
market in the United Arab Emirates. “Our
offi ce in Abu Dhabi has been growing by
leaps and bounds, so we plan to launch a
facility in the emirate. We have also booked
for a shared forwarders warehouse (SFW)
in the Dubai Logistics City project, which is
very exciting for our development.”
WERNER KLEYMANN, MIDDLE EAST MANAGER OF KUEHNE + NAGEL
What range of services does your company provide to customers in the Middle East?We off er the full range of Kuehne + Nagel’s
services, including contract logistics,
seafreight, airfreight and overland transport,
as well as services for the oil and gas industry
and project forwarding. We are also well versed
in niche products, such as hotel logistics,
humanitarian relief and marine logistics.
How strong is demand for 3PL services? Demand has remained strong and from our
KUEHNE + NAGEL
side, if there has been an upside to the global
situation, it’s that the customers are now
more interested in the overall savings that
can be made as opposed to a few dollars on
international transportation.
What are K+N’s local development plans?Recent developments include the purchasing
of our JV partner’s stake in Saudi Arabia and a
major new warehouse in Dubai Logistics City,
which off ers us with a platform to provide
customers with distribution services across the
region and drastically reduce lead times. Our
future strategy will involve further investments
across the Middle East region.
HALA SUPPLY CHAIN SERVICES (HSCS)
Hala Supply Chain Services (HSCS) has
been bursting with activity in 2009, with
a regular series of announcements being
reported throughout the year. Amongst
the highlights was a partnership with
technology companies Psion Teklogix
and SNS, the launch of its Saudi Arabian
Supply Chain Intelligence Report 2009, and
a contract to design and project manage
the construction of a 15,500m2 logistics
complex for a tyre manufacturer in Jeddah.
“Our marketplace is changing fast due
to high levels of growth and the proactive
eff orts made to transform the economy,”
explains Husam Al-Saleh, general manager
of Hala Supply Chain Services. “We have
uniquely positioned ourselves to help
clients improve their supply chains and
achieve sustainable competitive advantage.
Our ability to grow is in proportion to our
ability to create value for our clients in these
challenging circumstances.”
26 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
MAJAAL
First Bahrain recently launched Majaal, its
latest subsidiary that is being marketed as
the fi rst logistics company in the Middle East
to focus on the small to medium enterprises
(SME) market. Th e venture was unveiled
during a special ceremony at the Ritz
Carlton Bahrain Hotel in October 2009 and
will operate from a US$45 million logistics
complex at Bahrain Investment Wharf, in
close proximity to Shaikh Khalifa Port.
“Majaal will off er secure and cost eff ective
storage solutions, tailored specifi cally to
meet the needs of the small to medium
enterprises (SMEs),” states Amin Al Arrayed,
general manager of First Bahrain. “Th is
venture is also unique because it off ers more
than just storage solutions. It incorporates
a number of value added features, such as
fi t-out support, racking installation and a
business centre from where customers can
receive logistics support and rental options
for forklifts and other support vehicles.”
First Bahrain is planning to market its
Majaal brand across the Middle East, with
hopes of expanding the company through
franchises in countries such as the United
Arab Emirates, Saudi Arabia and Qatar.
MODERN FREIGHT COMPANY (MFC)
NICK TROTT, GENERAL MANAGER, MODERN FREIGHT COMPANY (MFC)
When did Modern Freight Company (MFC) fi rst establish its operations?Our operations commenced in Dubai
over 30 years ago as a liner agent, but we
have since transformed into one of UAE’s
leading logistics companies, with a central
headquarter and three warehouses in
Jebel Ali Free Zone, together with offi ces in
Dubai, Sharjah, Abu Dhabi and Doha.
How has the company performed during the global recession in 2009?Like all companies in the industry, MFC
has been aff ected by the crisis. However, we
have been able to weather the storm very
successfully due to the diverse nature of
our business activities. With the slowdown
in cargo moving by sea and air, it has been
the logistics division where MFC has fared
better than many local Dubai companies. In
fact, our container depot operation has seen
an excellent growth during the year, not
just from the local clients, but from clients
abroad. However, 2009 has not all been
about business growth. It has been a period
to refl ect on improving the way in which
MFC conducts business.
What have been the highlights of the year in terms of regional operations?MFC has procured more warehousing
capacity in Jebel Ali Free Zone to cater to
the needs of our clients. In addition, we
recently installed solar panels at our new
canteen and prayer facility in Jebel Ali Free
Zone. Th is will not only reduce costs quite
signifi cantly, but will also help to reduce our
carbon foot print. We did not stop there. Being
a quality driven company, MFC is now moving
towards the health, safety and environment
accreditation of ISO 14001 and OHSAS 18000.
We have already trained our 250 staff and
commenced the full risk assessment, which
should result in accreditation by 2010.
What are your predictions for the company in the coming year?It was almost impossible to predict the events
of 2009 and 2010 may be equally as diffi cult.
However, with us continuing to diversify our
business activities and also concentrating on
our highly successful core competences, we
should continue to see our fi gures grow over
the coming year.
Despite an infl ux of international players in the
Middle East logistics industry, the region has
produced a growing number of ‘home grown’
success stories too. Th e likes of Aramex, Gulf
Agency Company (GAC) and Agility have grown
into industry heavyweights, competing with
come of the biggest names around. Of course,
it’s taken years for these logistics powerhouses
to establish their brand names within the
industry, posing a serious challenge for
newcomers to match their impressive positions
in the marketplace. However, it’s a challenge
that Dubai’s powerful Mohebi family has taken
with full confi dence, following its Dhs1 billion
(US$272 million) investment to launch a third
party logistics company in 2007.
“We want Mohebi Logistics to become one of
the region’s biggest supply chain companies and
already have a solid track record with more than
70 multinational brands, including McDonald’s,
Nestle, Kimberly Clark, Danone, Compass and
many others,” explains Mohammed Mohebi,
founder and CEO of Mohebi Logistics.
“Moving forward, we have continued to
promote the brand in 2009, including a large-
scale participation at the recent SITL Dubai
logistics exhibition. Th is was particularly useful
as a platform to support our development
ambitions for outside the Gulf region, since
the event attracted a range of multinational
visitors and exhibitors. We received a number
of promising leads as a result.”
MOHEBI LOGISTICS
29
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
www.arabiansupplychain.com | DECEMBER 2009
MOMENTUM LOGISTICS
Since its launch in October 2008, Momentum
Logistics has continued to establish itself as
an emerging logistics service provider in the
Middle East, off ering a range of integrated
services that encompass transportation, freight
forwarding, warehousing, logistics cities and
container repair services.
“We have made a considerable amount of
progress in developing our regional presence
this year,” reports Matthew Derrick, general
manager, Momentum Logistics. “Our freight
division has established a global network
of agents, assembled a team of experienced
professionals and attracted over 50 new clients.
At the same time, our transport division has
completed the re-branding of equipment to
display Momentum’s distinctive green livery
and our fl eet has increased to over 120 units.”
Th e development of Momentum’s logistics
cities has also continued in full swing, with the
levelling of the seven million square foot site
in Al Saja’a (International Logistics City) now
complete and work underway on the perimeter
road network. Th e construction of twelve new
warehouses at Sharjah Inland Container Depot
(SICD) is also complete, while work on a further
twelve warehouses is underway and due for
completion in the second quarter of 2010. “I am
very pleased with the progress Momentum has
Although an imminent recovery from the
global downturn could be misconstrued as
wishful thinking, a number of logistics players
have started to look back at their pre-recession
development plans for the Middle East in recent
months. Of course, growth has always been
on the horizon for RHS Logistics and despite
a contraction in volumes during the fi nancial
crisis, its general manager Richard Bell has
remained confi dent about securing business
throughout the region. “Demand has continued
to increase for providers of quality services this
year,” he maintains.
Operating from 50,000m2 of land in Jebel
Ali Free Zone, the company has over 30,000m2
of warehouse space at its disposal, while
the remaining area has been utilised for the
open storage of containers, oil fi eld supplies,
machinery, large project cargo, and a variety of
diff erent vehicles. “We cut across all industry
segments,” says Bell. “However there is a
common theme amongst the companies using
our services. Instead of focusing solely on the
storage solution, each customer wants a 3PL
that off ers added value and ongoing support.”
made during these challenging times. Th ere
is no doubt that these key achievements are
the result of the dedication and commitment
of our valued team and the continued
support of clients,” says Derrick.
“We will continue to focus upon growth
in the future. Th e freight division will open
a new offi ce in Abu Dhabi and Dubai before
the end of 2009, and the transport division
will also launch a new operation in Kurdistan
before the end of this year,” he concludes.
By developing its core competencies in
2009, the company has ambitious growth
plans for the future. “We’re looking to
expand our infrastructure in the next
year,” confi rms Bell. “We have entered fi nal
negotiations to purchase a 30,000m2 facility
in Jebel Ali Free Zone South and I also think
Dubai Logistics City holds a lot of appeal.”
RHS LOGISTICS
RSA LOGISTICS
Dubai Logistics City has received a fl attering
response from the global logistics industry
since its launch in 2005, with the likes of
Kuehne + Nagel, Panalpina and Deutsche
Post DHL coming to the fore as early-bird
investors, each racing to complete their
ambitious warehousing facilities as quickly
as possible. However, it’s actually a relative
unknown that raced past the fi nish line in
pole position. A family-owned enterprise,
RSA Logistics commemorated the launch of
warehousing operations at Dubai Logistics
City earlier this year and while the news
might have raised a couple of eyebrows, the
company’s marketing director Kirit Mehta
states it wasn’t a conscious eff ort to achieve
this milestone in DLC history.
“RSA Logistics will always be remembered
as the fi rst company to start operations
here, although we’ve never considered this
a race or a competition with others,” he
says. “At the end of the day, everyone will be
operating from the same development and
working together as a community.”
Of course, it’s impossible to ignore the
clash between RSA Logistics being launched
and the global recession, which has
dented the logistics industry’s confi dence
throughout the world, including the Middle
East. Such an outcome was impossible to
predict when the company initiated its
plans, admits Mehta. “Th ere is a slowdown
in the Middle East, although we’re confi dent
about a recovery in the long-term, especially
when Al Maktoum International Airport
is opened,” he says. “In the meantime, we
have adjusted our short-term targets. For
example, we initially expected to reach full
storage capacity in six months, although
this has been extended to one year now.”
30 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: THIRD PARTY LOGISTICS
Th e logistics industry has experienced a period
of change in the past year and the same is true
for Toll Global Forwarding, which recently
completed its rebranding in the Middle East,
following the acquisition of BALtrans in 2008.
“I think the change refl ects a new chapter
in our continued development,” comments
Jeff Khoury, managing director of Toll Global
Forwarding in the Middle East. “We certainly
felt an impact from the recession, but also used
this as an opportunity to clean house, get in
shape and position ourselves for the eventual
economic recovery.”
Khoury adds that a bonus of the downturn
has been the availability of good staff that
have been shed by competitors. “Toll grabbed
this opportunity to recruit and added to our
headcount in the region,” he says.
Th e company fuelled its regional growth in
November 2009 with the acquisition of Dubai-
based company Logistics Distribution Systems
(LDS), which operates a central warehousing
facility in Jebel Ali Free Zone. “To understand
why Toll has apparently swum against the tide,
you need to recognise its long-term game plan.
Toll’s view is that this recession will end, as
they always do – so its focus is less on today’s
performance, and more on how it will emerge
from this recession, and how well-prepared
it will be to take advantage of the market’s
resurgence,” concludes Khoury. “Th at informs
decisions such as staffi ng levels and other
resources, and inclines us to expand when
others are contracting. Recessions create
opportunities as well as threats, but you have to
be able recognise and exploit them.”
TOLL GLOBAL FORWARDING
TRANSWORLD
Following the inauguration of its US$12.25
million warehouse in Jebel Ali Free Zone last
year, Transworld Group of Companies (TGC)
continued to expand its operations in 2009
and appointed the former Freight Systems
executive Warren Jacob as its chief executive
offi cer. “Transworld has emerged as a leader
in the Middle East logistics sector and my
role will be to increase our engagement with
customers and partners, while creating
products and services of true value, which
will be industry specifi c and thus carving out
a niche for our business,” he explains.
To support these goals, Transworld
announced a strategic partnership with
Japan’s Suzue Corporation in October 2009,
which resulted in both parties representing
each other’s freight forwarding and logistics
services in their respective operating
countries. “We are proud to partner with an
industry leader such as Suzue, which operates
20 bonded warehouses, with 196,000m2 of
storage capacity in Japan, in addition to a cold
storage facility in Singapore,” states Jacob.
WARED LOGISTICS
Wared Logistics was launched earlier this
year as Saudi Arabia’s latest entrant into the
global 3PL sector. With an initial capital of
US$32 million, the newcomer is a 50:50 joint
venture between Construction Products
Holding Company (CPC) and Zahid Holding
Group - both well-established and respected
entities in the Kingdom. And whilst a section
of the market could question the timing
of this launch, the project’s wheels were
actually set in motion around four or fi ve
years ago, when the Middle East economy
was developing at breakneck speed. Even
so, Brian McHale, CEO of Wared Logistics,
is confi dent about his company’s future
and remains adamant that its development
strategy will continue as planned.
“Th e concept of Wared Logistics was
formed after a detailed study into the global
logistics market, with a particular focus on
the Middle East and Saudi Arabia, where
companies need a high level of expertise and
professionalism to facilitate their business,”
McHale states with conviction. “Th rough
this research, Zahid and CPC received a
snapshot of the region’s potential as a global
logistics hub, which highlighted the scope
for a venture such as Wared Logistics.”
Despite its global ambitions, the fact that
Wared Logistics is based in Saudi Arabia is
actually considered a strength by McHale,
who believes the Kingdom is emerging as
one of the most promising logistics markets
in the world. Th e company has already
developed a network of 12 warehouses in
cities such as Jeddah, Dammam, Medina,
Jubail and Qassim, with future plans for two
40,000m2 facilities in Riyadh and Jeddah.
“Th ere’s a lot of talk about Saudi Arabia at the
moment, its blossoming,” he admits. “Of course,
there are challenges in the form of red tape, but
that’s actually an advantage for Wared Logistics,
because our parent companies are Saudi
businesses that have operated in this country
for decades, so we understand the regulations
and have access to tremendous shortcuts as a
result. At the same time, we need to educate the
market about the benefi ts of outsourcing supply
chain operations to a third party. Th ere’s a low
uptake at the moment, although the situation
has shown signs of change and I’m confi dent
that will continue in the future too, which
will be particularly benefi cial to organic Saudi
companies such as Wared.”
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
Together we made it...
...and we shall make it again
33www.arabiansupplychain.com | DECEMBER 2009
Although the development of logistics parks
in the United Arab Emirates has traditionally
focused on Dubai, a string of multi-billion dollar
projects have recently been launched in other
parts of the country. Leading the revolution has
been Abu Dhabi Airports Company (ADAC), a
regional powerhouse in the aviation sector with
management responsibility for the airports in
Abu Dhabi and Al Ain.
Th e centrepiece of ADAC’s US$6.8 billion
development strategy is Abu Dhabi Airport
Business Park, which is being constructed on
12 square kilometres of land and will include
around 2 square kilometres of space for a
warehousing and transportation complex. Th e
project has received a considerable amount of
FREE ZONESZONESinterest from the logistics sector, especially from
freight forwarders, importers, exporters and
MRO specialists – proving that demand for such
developments outside of Dubai is plentiful. “Abu
Dhabi Airport Logistics Park will off er a wide
range of facilities, from light industrial units to
commercial offi ces and plots of land for tailored
developments,” explains His Excellency Khalifa
Mohamed Al Mazrouei, chairman of ADAC.
“Th e project is being developed in two phases,
which means we can make improvements to the
masterplan in line with investor requirements.
Construction of phase one has commenced and
should be completed in 2010. Th e development
of phase two is scheduled for 2011 and will be
completed in 2015.”
Th e logistics park is a central component
in a large-scale development plan for Abu
Dhabi International Airport, which has been
designed to increase the overall capacity to
more than 20 million passengers per year.
Th is includes the construction of a second
runway and third terminal, which have been
completed, together with a midfi eld terminal
complex and air control tower (ATC), which
will be operational in the next few years. Of
course, with growing volumes of cargo being
handled at the airport, its airfreight facilities
will also receive an industrial makeover. “Th e
amount of cargo being handled at Abu Dhabi
International Airport has strengthened this
year and we expect this trend to continue in the
future, especially with plans to diversify Abu
Dhabi’s economy in the coming years,” says Al
Mazrouei. “In response, a world-class airfreight
facility will be opened by 2012, expanding our
current handling capacity of 475,000 tonnes per
annum to 1 million tonnes per annum. In the
longer-term, this fi gure will eventually reach 3
million tonnes.”
Although the market response for these
developments have been described as
“overwhelming”, this has actually presented an
interim problem for Al Mazrouei and his team.
“Demand for space has exceeded the facilities
that we have planned,” he says. “ADAC has
responded by announcing a second logistics
park at Al Ain International Airport.”
Th e additional project, which is being
developed in partnership with Helios SinoGulf
Development, will cover 650,000m2 and
includes distribution centres, light industrial
units, freight forwarding stations, offi ce space
and supporting facilities. Th e fi rst phase is
scheduled for completion towards the end of
2010 at a cost of $250 million.
“Whilst the two projects are separate with
diff erent selling points, they complement
each other and together provide the full suite
of facilities for the aviation and aerospace
industries,” says Al Mazrouei. “Within both of
these logistics parks, international investors
can run their operations in the best business
environment, benefi ting from the low cost
operation at Al Ain to focus on manufacturing
aircraft parts and the growing connectivity
network off ered by Abu Dhabi, which is the
perfect solution for the distribution of goods.”
Lacking the natural advantages of gas and
petroleum, Ajman established a free zone in
1996 to support its economic growth.
Strategically located at the entrance of the
Arabian Gulf, the industrial centre has become
the emirate’s sole regulatory agency and
claims to house 20% of the UAE’s total
manufacturing units, exporting to over 64
countries around the world. It’s proximity to
Sharjah and Dubai provides easy accessibility
to two international airports and four seaports,
with Ajman Port emerging as a leading maritime
focal point, serving over 1000 vessels a year.
In addition, Ajman Free Zone Authority (AFZA)
secured fi nancing with Ajman Bank this year
to complete the third phase of its large-scale
warehousing complex. Valued at US$14.7 million,
the agreement is a type of Islamic fi nance
known as Ijarah and will be utilised to support
the free zone’s growth as a logistics hub.
AJMAN FREE ZONE AUTHORITY (AFZA)
ABU DHABI AIRPORTS COMPANY (ADAC)
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
34 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
Bahrain’s logistics industry is expected
to receive a positive boost with the
opening of Bahrain Investment
Wharf (BIW), which is currently being
constructed on a plot of land measuring
1.7 million square metres in the Hidd
industrial area.
Th e ambitious development will
include a dedicated logistics park, with
around 900,000m2 allocated for supply
chain activities, including warehouse
storage, packaging and distribution.
“Bahrain has always enjoyed an
enviable reputation as a regional
logistics hub. We are simply revamping
and modernising that image,” explains
Muhannad Al Durrah, CEO of BIW.
Th e wharf is being strategically
located in the northeast of Bahrain,
within close proximity of the country’s
airport, seaport and road network.
“Th is project will be particularly attractive to
the logistics industry because of the excellent
transportation links,” adds Al Durrah. “It is
located approximately 2km away from Bahrain
airport and 1km from Sheikh Khalifa Bin
Salman port. In addition, the King Fahad
Causeway and a planned causeway connection
to Qatar are within close proximately.”
BIW is hoping to attract the interest of the
logistics industry by off ering a range of business
incentives, including complete customs duty
exemption on capital goods, raw materials for
manufacturing, re-export goods and imports
required for development projects. Companies
can also establish their operations without
a local sponsor, which means full business
ownership in most categories. “Th e benefi ts are
very innovative, which should prove valuable
for logistics providers and those handling
supply chain management inhouse, as part of
their overall operations,” adds Durrah.
BAHRAIN LOGISTICS ZONE
Th e management team at Bahrain
Logistics Zone has adopted a full
throttle approach for their marketing
campaign in 2009, visiting all corners of
the world to promote their “boutique”
logistics zone in Khalifa Bin Salman
Port. Its little surprise, therefore, that
a number of industry heavyweights
have already expressed their interest
in the US$280 million project, with
Danzas and CEVA amongst the fi rst 20
companies to start the construction of
their warehouse facilities at the site.
“Th e unprecedented demand from
local and international companies
has strongly indicated that Bahrain
Logistics Zone is heading in the right
direction,” states Hamad Fakhro,
assistant director general of General
Organisation of Seaports (GOP), which
is overlooking the project. “In fact,
only a few months after we started
the process for tenancy applications,
we found ourselves fi ve times
oversubscribed. As a result, we have
decided to increase the zone by 150%,
which should help to bridge the gap
between demand and supply.”
Despite the expansion, Fakhro and
his team have a stringent application
process to ensure Bahrain Logistics
Zone hosts a diverse community of
tenants. “We are dedicated to making
sure our tenants are the right fi t and
bring the most value to Bahrain,” he explains.
“Th is means on one level the creation of jobs
and increase in foreign investment, as well as
their ability to transfer knowledge to the local
market and their involvement in activities to
further Bahrain’s economic goals.”
With this in mind, it seems Bahrain Logistics
Zone will bring massive benefi ts to the
Kingdom’s economy. Aside from the US$600
million that will be generated from foreign
direct investment, the project is also expected
to generate 2400 medium to high-wage jobs.
“Th e Arabian Gulf ’s economy is growing at a
signifi cant rate and Bahrain is no exception,”
ends Fakhro. “With the support of its forward-
thinking government and the private sector, we
are ready to face future challenges.”
BAHRAIN INVESTMENT WHARF
With a number of transportation projects being
developed at Aqaba Special Economic Zone
(ASEZ), it seems the future of Jordan’s logistics
industry has been placed in safe hands. In
particular, the construction of Aqaba Logistics
Village continued at full speed this year, with
His Majesty King Abdullah inaugurating the
project in November 2009.
“Projects such as the logistics village,
together with the likes of Aqaba Container
Terminal and Aqaba Air Cargo Terminal, are
designed to develop the status of ASEZ as a
complete logistics hub, while contributing to
the national economy of Jordan,” states Imad
Fakhoury, chief executive offi cer of Aqaba
Development Corporation (ADC). “We signed
an agreement with Agility and Th e Kawar
Group for the development, management and
operation of Aqaba Logistics Village, which
will receive approximately US$70 million in
direct investment. In the future too, we hope to
encourage a greater number of public-private
partnerships for logistics projects in the zone.”
Aqaba Logistics Village is being developed
on 500,000m2 of land next to Aqaba Container
Terminal over the next ten years. Th e fi rst phase
involved the development of infrastructure
and the construction of a container terminal,
distribution centre and service centre.
Th e second phase will incorporate an
additional three distribution centres, each
covering 10,000m2, together with the village
headquarters and a logistics institute, while
three more 10,000m2 distribution centres will
be constructed in phase three.
According to the agreement with Agility
and Th e Kawar Group, the both parties will
complete the village on a build, operate and
transfer (BOT) basis, with ADC taking over
ownership after 25 years.
AQABA SPECIAL ECONOMIC ZONE AUTHORITY (ASEZA)
35www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
During the early 1990s, when operations
commenced at Dubai Cargo Gateway (formerly
Dubai Cargo Village), the Middle East aviation
industry was increasing its focus on airfreight
operations, leading to a sudden growth in
cargo volumes. Even with the global recession,
the region has outperformed its counterparts
across the world and Dubai Cargo Gateway
has remained at the forefront of this continued
evolution. With this in mind, the development
of a ‘cargo mega terminal’ will help the facility’s
handling capacity to reach a whopping 1.2
million tonnes. “We have experienced growth
in 2009 and with this development, we will have
the infrastructure to cope with future growth,”
predicts Ali Al Jallaf, vice president of cargo,
Dubai Airports.
DUBAI CARGO GATEWAY
A number of factors have contributed to the
fi nancial success of Dubai Airport Free Zone
(DAFZ) in 2009, including its accessibility to a
market of over 1.5 billion consumers and over
100 leading international airlines. In addition,
the free zone’s ambitions to remain an innovator
in the Middle East has resulted in a number of
operational changes this year, including a re-
branding exercise that was revealed at the SITL
Dubai logistics exhibition earlier this year.
“We have undergone several changes in 2009
to revamp our position and cater to the needs
of a growing tenant list,” states Ibrahim Ahli,
marketing director at DAFZ. “Th e re-branding
has been supported by expanded offi ce space,
with the latest telecommunications
connectivity, in addition to the launch of
a business centre and planned hotel.”
One of the major factors the free zone
prides itself in is its extensive business
incentives for tenants, such as 100%
tax exemption, 100% ownership rights
and rapid cargo clearance, which has
attracted companies such as DHL, Xvise
and FedEx. “At present, the free zone
houses 1500 companies and the calibre
of clients here has helped to give DAFZ
a solid reputation around the world,”
continues Ahli. “We look forward to
building on this success in 2010.”
DUBAI AIRPORT FREE ZONE AUTHORITY
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36 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
It’s been a challenging year for Dubai
Logistics City, with the resignation
of chief executive offi cer Abdullah
Al Qurashi leading to another round
of negative publicity for the project.
However, while the market has reacted
with caution, a number of impressive
highlights have also been reported in
the past year, including a warehouse
opening for RSA Logistics - the fi rst
tenant to commence operations at
Dubai Logistics City - while Kuehne +
Nagel and Panalpina also completed
the construction of their large-scale
facilities and Aramex hosted a ground
breaking ceremony for its warehouse.
Perhaps more importantly, Dubai
Aviation City Corporation, which
is responsible for Dubai Logistics
City, signed an agreement to align
procedures with Jebel Ali Free Zone
in a benefi cial move for supply chain
operations throughout the region.
Th e landmark agreement will be
implemented in four stages over the
coming years. Under the fi rst stage,
transportation procedures will be
aligned for cargo that is shipped
between Dubai Logistics City and Jebel Ali
Free Zone. Th e second stage will be focused on
administrative operations, such as business
registration and trade licensing, while the third
and fourth areas will involve the development of
a common operating platform and alignments
in marketing and promotional activities.
“We are proud to announce this alliance
with Economic Zones World, the parent
company of Jebel Ali Free Zone Authority,” says
Rashed Buqara’a, COO of Dubai Aviation City
Corporation. “With our focus on aviation and
logistics combined with EZW’s complimentary
strengths in land and sea based connectivity,
we are creating a platform that will confi rm
Dubai’s position as the unparalleled centre
of logistics in the region and as a globally
signifi cant player for generations to come.”
DUBAI MARITIME CITY
Earlier this year, Dubai Maritime City
(DMC) completed the construction
of more than 200 units within its
industrial precinct, marking another
breakthrough for the multi-million
dollar project, which is being marketed
as the world’s fi rst purpose-built
maritime centre. A total of 217 units
have now been structurally completed
in the industrial precinct, including
140 workshops, 60 warehouses, 12
showrooms and fi ve yacht manufacturing
facilities. Th e units have since been handed
over to Drydocks World - Dubai, which is
responsible for running and operating the
industrial precinct and has been leasing
the units to businesses in the logistics and
transport industry. In addition to handing over
the units, Dubai Maritime City also delivered
a number of supporting components, such
as the central administration building, ship
lift control building and mobile boat hoist.
DUBAI LOGISTICS CITY
Th e race to become the Middle East’s ultimate
centre for warehousing activities has attracted
several candidates over the years. With the
likes of Jebel Ali Free Zone and Dubai Logistics
City receiving plenty of attention from the
media, other projects could easily be tagged as
underdogs for the title. However, with a truly
productive year in 2009, Dubai Industrial City
has carved an enviable niche for itself in the
logistics industry, which vice president Rashed
Al Ansari believes will continue to strengthen
in the coming years.
“Dubai Industrial City has crossed a
number of milestones this year, including the
construction of 64 showrooms with storage
facilities, which are now available for lease and
feature two fl oors, spanning 5000 square feet
each, in addition to 5000 square feet of storage
space at the rear of the building,” he explains.
“Also this year, we confi rmed plans to extend
our open storage area by 3.5 million square feet
to meet growing demand from customers in the
construction, equipment and transportation
sectors. Th e complex previously had 2.8 million
square feet of open storage yards, which were
utilised by a handful of companies in the United
Arab Emirates. Th e expansion more than
doubled the available space and indicated our
ability to satisfy the needs of Dubai’s business
community, while bridging the shortfall in
storage facilities,” he adds.
Launched in 2004, Dubai Industrial City is
being developed on 56 million square feet of
land, with separate zones being constructed
for six diff erent industry sectors. Th ese will be
complemented with supporting infrastructure
for industrial training and labour
accommodation, in addition to a signifi cant
amount of warehousing and distribution
space. “We are developing into a self-contained
city-within-a-city,” ends Al Ansari. “With the
construction of these facilities, we are sending
a clear message of support to the industrial
sector in Dubai as it grows as the second largest
economic sector in the emirate.”
DUBAI INDUSTRIAL CITY
ITP advert_december.ai 11/15/2009 3:26:57 PM
38 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: FREE ZONES AND INDUSTRIAL AREAS
INTERVIEW: OUSSAMA EL OMARI, CEO OF RAS AL KHAIMAH FREE TRADE ZONE
How many companies are currently based in RAK Free Trade Zone?At the moment, we have over 7000
companies registered from 106 diff erent
countries. From this total, 64% are
trading companies with warehousing
facilities, 26% are consulting and
services companies, 3% are industrial
and 7% are general trading companies.
Have your operations been impacted by the global recession?Th e slowdown has impacted everyone
in some way. We have been fortunate
that despite the ongoing economic
crunch, the free zone has continued
to attract and maximise the growth of
business in 2009, which shows we have
the right strategy in place to counter
the slowdown. As for clients, we try to
minimise the impact by being fl exible
and trying to fi nd creative solutions so
they can continue with their business.
Is the logistics sector an important market for the free zone?RAK Free Trade Zone has established
itself as a popular destination for
logistics activities and to continue
this momentum, we are constantly
developing our operations to boost the
warehousing and distribution activities
of our tenants. A variety of plot sizes
are available, ranging from 2500m2 to
500,000m2, supported by the usual free
zone benefi ts of 100% foreign ownership
and tax exemption.
RAS AL KHAIMAH FREE TRADE ZONE (RAKFTZ) AUTHORITY
Th e development of Emirates Industrial City
has continued to progress at full speed, avoiding
the usual construction delays that have plagued
a number of industrial areas during the past
year. It’s quite an achievement for the Sharjah
project, which has been conceptualised by Al
Hanoo Holdings and will eventually spread
across 83 million square feet in the district of
Al Sajaa. “Th e project has been divided into
eight sections, two of which are reserved for
warehousing operations, with a total of 400
storage facilities being constructed on 20
million square feet of land,” explains Sheik
Abdullah bin Fahid Al Shakrah, chairman of
Al Hanoo Holding. “Th e complex is located
alongside Dubai Ring Road, in close proximity
to Sharjah International Airport and the lack of
traffi c congestion will help Emirates Industrial
City diff erentiate itself from similar projects in
other parts of the Middle East.”
JEBEL ALI FREE ZONE AUTHORITY (JAFZA)
INTERVIEW: IBRAHIM AL JANAHI, CHIEF COMMERCIAL OFFICER OF JEBEL ALI FREE ZONE AUTHORITY
What factors have contributed to Jebel Ali Free Zone’s success in the past year?Innovation has been integral to the success
of Jebel Ali Free Zone. We have continued to
optimise our logistics off erings over the years,
whether that means the construction of new
structures to accommodate demand or the
improvement of existing structures to better
serve our clients. All companies, from local
enterprises to global multi-nationals, need
assurance that their growth can be effi ciently
facilitated and our operations, infrastructure
and services can meet these expectations.
What have been the latest warehouse developments at the free zone?Jebel Ali Free Zone prepared for the completion
of fi ve mega-projects this year and two of them
are related to warehouse operations. Th e fi rst
is situated in the South Zone and consists of
68 warehouse showrooms, which combine
the facilities of a modern showroom and a
functional warehouse. Th e second project is
located in the North Zone, roughly 350 metres
from the port, and consists of 43 warehouses
and light industrial units, with a height
allowance of 10 metres for maximum storage.
A growing number of industrial areas have been established in Dubai. Is there
suffi cient demand for each of these?In terms of value for money, Jebel Ali Free Zone
is easily amongst the most competitive in the
world and off ers a unique blend of services and
benefi ts. In addition, we are located between
the hugely successful Jebel Ali Port and the
forthcoming Al Maktoum International
Airport. Th ese incentives are really diffi cult to
beat and have diff erentiated us from others in
the Middle East and beyond.
Has there been an impact on demand for warehousing space with the recession?We have found that certain sectors of the
market have still been active in 2009 and since
our latest developments are demand-driven
initiatives, I am confi dent about their success
in the coming years.
EMIRATES INDUSTRIAL CITY
ON COURSE FOR A BIG FUTURE.Port of Sohar is moving full speed ahead and is already
the world’s largest port development. Positioned just
outside the Strait of Hormuz and offering easy access to
all the world’s shipping lanes, it offers three terminals
operated by world leaders.
A cargo and dry bulk terminal operated by C.Steinweg,
a liquid bulk terminal operated by Oiltanking Odfjell, and
Oman International Container Terminal (OICT) operated
by Hutchison Port Holdings.
With an infrastructure expanding at a rate of knots, Port
of Sohar is now firmly on the map as the destination of
excellence. Which is why so many are making it their
preferred port of call.
To find out more visit www.portofsohar.com
SIP_ITP Logistics_AW.indd 1 10/20/09 2:25:35 PM
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
41www.arabiansupplychain.com | DECEMBER 2009
MATERIALS HANDLING AND TECHNOLOGY SOLUTIONSAND TECHNOLOGY SOLUTIONS
INTERVIEW: NAVIN NARAYAN, OWNER OF ACME GROUP
How long has Acme been established in the Middle East logistics industry? We were launched as a general trading
company in 1977, with a strong focus on storage
solutions. At the time, the uptake for palletised
cargo was fairly limited in the Middle East, so
demand was mainly focused on slotted angle
storage systems. Th e market has expanded
over the years and new technologies are being
incorporated into the supply chain. As a result,
we now operate four divisions – material
handling and storage systems, fl uid sealing and
marine equipment, industrial pneumatics and
automation, and fi nally IT services.
How strong has the material handling sector been in the Middle East this year?I think the next big money spinner in Dubai, as
such, will be logistics. Th e emirate has developed
a world-class transportation infrastructure
to support the MENA region’s logistics needs.
With the creation of Dubai World Central over
the next few years, Dubai has the potential to
truly become a world player in the business of
moving people and freight. In addition, Qatar
and Bahrain have big plans to supplement this.
I am sure there is good scope for the material
handling sector to participate in the economic
growth of this region.
What has ACME Group been impacted by the global recession in 2009?It would be naive to claim there has been no
impact on the Middle East market due to
the global recession. However, although this
region has been aff ected, it was aff ected much
later than the rest of the world and has already
shown signs of recovery. Th ere is a contraction
and slowdown, which is evident. It is giving
businesses the time to stop, rethink and realign
their strategies. Th is would help players in this
region to become lean and competitive.
What are for future development plans for your company in the Middle East region?We intend to become a complete integrator
of various material handling solutions, while
growing our existing market and branching out
in new areas of the Middle East and Asia.
ACME GROUP
Bringing its global expertise to the Middle East
logistics industry, ATMS has reinforced its
position as a leading software provider in the
region, securing a growing list of contracts over
the past 12 months. In particular, the company
has successfully marketed its Stock Track Plus
(STP) warehouse management system to local
customers, with recent contracts being awarded
by Qatar Navigation and Gulf Worldwide.
“ATMS has been uniquely positioned in the
Middle East, because we are the only warehouse
management system author of note with our
own offi ces in the region. Th is has helped our
clients considerably,” explains Steve Cross,
managing director of ATMS. “We can listen
to the specifi c needs of customers and quickly
incorporate their requirements within our
product development roadmap.”
Despite the global slowdown, ATMS has
reported one of its most successful years ever,
which Cross attributes to a number of diff erent
factors. “We’ve been in this business for 25 years
now. Although our warehouse management
system is only three years old, it is based on
years of experience. Plus, we’re a privately
owned company with low overheads, so we can
provide powerful and fl exible solutions, often at
a third the cost of large State-side vendors.”
Earlier this year, ATMS further developed its
local invoicing and Jebel Ali Free Zone customs
modules, while also developing Global Track, a
hosted supply chain track and trace solution.
A number of trade events were also hosted
by the company in 2009 to directly promote its
solutions to potential Middle East customers.
Th is included a monthly series of workshops
on warehouse management systems, which
attracted a stream of existing customers,
prospective clients and industry advisors.
“Th e workshops are really successful and
have been designed for people to gain a
better insight into Stock Track Plus, with
live demonstrations that cover warehouse
optimisation, quality control, barcoding and
radio data terminals,” says Cross. “It’s also a
platform to ask questions and have discussions
with ATMS experts. Everything is free and
there’s no obligation to purchase.”
ATMS
42 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
Although business was relatively fl at for
Business Systems Group (BSG) in the fi rst
quarter of 2009, demand has resumed
an increase from the second quarter
onwards. As a result, the company -
which is the regional distribution and
competency centre for Exactus supply
chain technology solutions - has reported
a large number of customer wins this
year, including Al Madina Logistics, JET
Airfreight, Triburg Logistics, Triolite,
Hassani Group of Companies, Balmer
Lawrie and Takwa Distribution.
“Even in a recessionary business
climate, there were companies that
adopted new technologies to become
more innovative and improve their
business processes,” explains Raheel
Khan, regional director of BSG. “Of
course, there were situations where
customers demanded fl exible payment
plans to facilitate their cash-fl ow
situations and we had to accommodate
those requests.”
Although the Exactus suite of supply
chain products is designed as fl exible
solutions, BSG has taken a measured and
cautious approach to implementation
in 2009. “Th ere are some excellent
products that have failed miserably in
the Middle East market, simply because
the company behind them did not have
enough bandwidth to carry out the
projects or because their implementation
consultants lacked in-depth product
familiarity,” explains Khan. “We make
sure that our consultants are fully
grounded in the product and updated by
going through training programmes.”
In line with BSG’s expansion plans,
the company established an Off shore
Development Centre (ODC) in India this
year and also plans to establish sales
and support offi ces in the lucrative Saudi
Arabia, Oman and India markets next
year to boost sales in the region.
BUSINESS SYSTEMS GROUP (BSG)
Ehrhardt + Partner Solutions (EPS) has
reported a steady increase in demand from
Middle East customers over the years, with a
growing number of companies purchasing its
software solutions in 2009, including EMKE
Group, operator of the LuLu Hypermarkets,
which ‘went live’ with the LFS400 warehouse
management system in October.
In addition, the technology specialist has
made a considerable amount of progress with
the construction of its regional headquarters
at Dubai Logistics City, which is scheduled to
open in February 2010. “Th is centre will really
support our growth in the Middle East and
allow customers to analyse their existing
processes in a live environment, while testing
and getting to know our technology,” says
Hermann Ehrhardt, managing director of EPS.
To support its regional investments, EPS also
hosted a number of educational workshops
at the beginning of the year to raise standards
in the Middle East, with participants being
taught about global warehouse processes
by trainers with vast industry knowledge.
“Investments into most modern technologies
are only as good as the educational status of
the employees. Long term growth can only be
EHRHARDT + PARTNER SOLUTIONS (EPS)
CHEP MIDDLE EAST
realised with skilled personnel,” continues
Ehrhardt. “I am confi dent that the training
off ered by EPS, which ranged from basic
logistic knowledge to advanced processes, will
help to optimise existing processes and reduce
operating costs for participating companies.”
EPS continued its marketing campaign
this year with appearances at GITEX
Technology Week and Materials Handling
Middle East, while it also collected the
prestigious Technology Provider of the Year
trophy at the Supply Chain and Transport
Awards (SCATA) in Dubai.
CHEP has established itself as a premium
brand in the material handling sector, with an
asset base of more than 285 million pallets and
containers, which are utilised by customers in
44 countries around the world.
In particular, the company has fl agged the
Middle East as a strong emerging market in
2009 and established its service centres in
countries such as the United Arab Emirates,
Saudi Arabia, Kuwait, Oman and Qatar.
“Unfortunately, many companies in the
GCC use pallets by default, rather than design.
Little attention is paid to quality, hygiene or
specifi cation,” says Smyth. “Th e pallet is simply
used to enable a forklift to handle a unit load
and will be dumped or recycled again.”
CHEP pallets are returned to a service centre
after completing a supply chain cycle, where
they are inspected and repaired to ensure that
only high quality pallets, capable of meeting
customer needs, are re-issued into the pool.
In particular, fast moving consumer goods
(FMCG) companies have been early adopters
of the pallet pooling concept and CHEP
has earned the custom of leading
FMCG manufactures, retailers and logistics
companies in the Middle East.
“Procter & Gamble, National Food
Industries, Saudi Glass Company and IATCO
now participate in the CHEP pallet pooling
system, together with another 400 companies,”
continues Smyth. “We have enjoyed strong
growth over the past year and pallet hire
volumes are expected to double during 2010, as
companies focus on reducing their supply chain
costs during the current economic climate.”
43
TRADE ASSOCIATIONS
www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
INTERVIEW: COLIN SUMMERS, INTERMEC REGIONAL MANAGER (MIDDLE EAST, INDIA AND AFRICA)
What range of handheld computers are provided by Intermec in the Middle East? Intermec has provided a range of handheld
computers in the Middle East for over 20 years,
which are aimed at a very diff erent 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 metre
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 temperatures to high
humidity to drops onto concrete fl oors. Th is
underlines the fundamental issue that mobile
computers should be able to survive the rigours
of supply chain operations in the Middle East.
How strong has demand been for your handhelds in the Middle East this year?My estimate is that demand for handheld
products across the Middle East has grown
at an average rate of 20% per annum, while
INTERMEC
FAMCO
Intermec’s average growth has been 40% over
the past fi ve years. Th e handheld computer
business has only recently moved from a niche
market into the mainstream of the IT industry.
Th ere 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
DAVID DRONFIELD, DIVISIONAL MANAGER OF STORAGE AND HANDLING SOLUTIONS AT FAMCO
How important has the logistics sector been to FAMCO this year and how have your material handling solutions fared?It’s a very important market and we off er
a growing selection of material handling
products, such as Dexion industrial storage
and shelving systems, Linde forklift trucks
and Stertil warehouse dock-levellers. Each of
our core products have performed extremely
well, gaining in market share, especially with
the high value Volvo truck and construction
equipment businesses.
Which factors do you think have essentially contributed to this success in 2009?Th e continued development and success
of FAMCO has been based on our in-depth
understanding of customer needs and the
dedication of our skilled workforce. Th is
basically means that we are well positioned to
service the future development of the United
Arab Emirates.
How have you advised Middle East customers to address challenges from the global recession this year?In 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.
Can businesses justify the spend on material handling solutions in the Middle East during this economic climate?It’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, companies 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,
companies should 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.
to appreciate they cannot eff ectively operate
their business without handhelds.
What makes your product different to others in the regional market?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
off er 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.
Is there a lot of competition in the local market for warehouse technology? Th e 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. Th e key is showing a suitable
return on investment, which takes years of
experience. Intermec brings this consultative
approach to customers, which has been a key to
our success.
44 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
Finding the time to refl ect on the
success of his Product Sourcing Guide
a few years back has been a struggle for
Stewart Arbuckle, managing director
of Loc8. Th e company, which is based
in Dubai, has experienced a relentless
period of growth since its launch, with
new product launches and double-digit
growth being reported on a yearly basis.
“Our latest catalogue was launched this
year and featured even more innovative
and practical products,” states Arbuckle.
“Th is has contributed to a signifi cant
increase in enquiries and the overall
response was very positive. In particular,
our spill prevention range has been
particularly popular, as companies are
becoming increasingly sensitive to HSE
regulations. Th e mezzanine product has
also performed well and helped clients to
maximise their available fl oor space.”
Aside from the catalogue, Loc8 has
continued to diversify in 2009, with a
number of divisions being created to
capitalise on strong customer demand.
One of the teams, according to Arbuckle,
has been established to provide design
support to companies that are opening
new warehouse facilities or revamping
their existing ones. “We have adopted
a solution-based approach, which is a
refreshing change for clients, helping
them to optimise their warehouse space
and make wise investments.”
Following its success at the Materials
Handling Middle East exhibition in
previous years, Loc8 returned to the
trade show in 2009 with a solid number
of enquiries from potential customers.
“Our stand at Materials Handling Middle
East proved to be worthwhile and we
received a lot of attention from visitors,
which proved our initial scepticism on
attendance levels to be unfounded” states
Arbuckle. “Looking ahead, 2010 will for
sure not be an easy year, however, we are
confi dent in the local economy and look
forward to the challenges it brings.”
LOC8
Despite only recently entering the Middle East
market in its own right, SICK Automation
International has found that its wealth of
products has received a rapturous response
in a region where its solutions generally lack a
competitor. “We cover a wide range of products,
from anti-collision systems on cranes and
forklifts to fi xed mount barcode reading in
automated warehouses,” says Julian Sperring-
Toy, regional director of SICK Automation.
A specifi c product that was showcased at
the Materials Handling Middle East show in
Dubai this year was SICK’s volumetric weighing
solution for couriers, which allows fi rms to
establish both the weight and size of items.
“Couriers have limited space on their vehicles,
SICK
LOGCUBES
so this helps them more eff ectively pack and
select their routes, as well as realise those lost
revenue opportunities,” adds Sperring-Toy.
Although SICK has been operating in the
Middle East market for around 15-20 years
through partners an distributors, it was only in
the past year that the operator has established
an offi ce in Dubai in its own right. It appears to
a decision that has been vindicated. “Generally
speaking, we have seen some downturns in
some areas of our business, but in others, it’s
absolutely fl ying,” Sperring-Toy observes. “A
lot of the success has been achieved due to
the willingness of local governments to invest
in infrastructure and we expect that trend to
continue in the future.”
Although the recent launch of LogCubes,
in addition to its trade partnership with
Manhattan Associates, took place during a
global recession, the company’s director Tarek
Saoud has managed to fi nd opportunities in a
challenging market.
“Th is year could be compared to a planting
season for a farmer, as we began to introduce
companies to the suite of Manhattan Supply
Chain solutions,” he claims. “Many customers
are using this time of negative economic
growth to evaluate their positions and re-think
their supply chain plans, while others have
passed this stage and are already considering
products such as warehouse management
systems, slotting optimisation solutions or
distribution management systems.”
According to Saoud, the companies that are
taking advantage of the downturn to improve
their supply chain effi ciency will emerge as
leaders once the market has recovered. “Th e
economic slowdown has squeezed out some
players, but the remaining ones are now re-
evaluating their logistics practices and the
effi ciency of their distribution centres,” he
continues. “In order to remain competitive,
companies have not only focused on cost
cutting measures and the improvement of the
bottom line, but are addressing the key issues
of customer service response and availability
of stock. In my opinion, the supply chain now
constitutes the fi nal frontier to success.”
LogCubes has actually been in development
for the last two years in response to the growing
demand for supply chain technology in the
Middle East, and more specifi cally, in the Gulf
region. Since the company’s launch, it has
focussed on existing Manhattan Associates
clients, while generating awareness among
potential new customers. “In total, there are
already more than 10 customer sites in the
region, a number we expect to double in the
next 12 to 18 months,” concludes Saoud.
45
TRADE ASSOCIATIONS
www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: MATERIALS HANDLING AND TECHNOLOGY SOLUTIONS
SNS
INTERVIEW: MARIO GHOSN, GENERAL MANAGER OF SNS
What presence does SNS have in the Middle East as a logistics technology provider?We have three offi ces in the region, located in
Dubai, Beirut and Saudi Arabia, with a team
of 30 operational and technical consultants
who are experts in the supply chain fi eld. Our
mission is to become the trusted advisor and
partner of clients by providing them with the
highest quality services and holding ourselves
accountable for their success in the market.
Which companies have you partnered with in the region to achieve this goal?We have two main partnership in the region
with SPAN Group and Infor, which are leaders
in their markets. In addition, there are
partnerships with other providers of supply
chain solutions to ensure that customers have a
fully-integrated solution at their disposal.
How strong has the local market been for warehouse management systems in 2009?Th rough our partnerships with SPAN Group
and Infor, we are currently the number one
provider of supply chain services in the Gulf
and Middle East. Our strength resides in our
understanding of the Middle East culture,
our customer oriented approach, our local
presence and our expertise in supply chain
management.
Can you name some of your recent customers in the Middle East region?Over the years, we have worked with some of the
top players in the regional supply chain market.
Our customer portfolio includes Agility, Pepsi
Kuwait, Nestle, P&G, Aramex, Danzas, Fuel
Group, Transmed, Jawad Group and Al Yasra.
What has been the company’s biggest highlight in the past year?We hosted a recent seminar for supply chain
and logistics professionals in the Middle East,
allowing them to participate in informal
networking and discussions with industry
professionals, while learning the best practices
that are being applied to enhance supply chains
performances. Th e event was held in Lebanon
and featured a number of keynote speakers,
including Walid Daniel from SPAN Group,
Marouane Rihoum from Chalhoub Group,
Sjoerd Koopman from Nestlé and Andrew
Kinder from Infor.
What are your future development plans?SNS believes in staying one step ahead of
market demand. We constantly seek to increase
our services portfolio and enhance our training
curriculum. In addition, we are expanding into
markets outside the Middle East, such as Latin
America and Africa.
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ANNUAL REVIEW 2009: TRAINING AND EDUCATION
47www.arabiansupplychain.com | DECEMBER 2009
TRAININGAND EDUCATIONAND EDUCATION
Bahrain Polytechnic has supported the growth
of logistics activities in the Kingdom with the
introduction of three educational courses
this year – a bachelor degree in international
logistics management, a diploma in logistics
and transport, and a higher diploma in
international logistics management, which
have all been accredited by the Chartered
Institute of Logistics and Transport (CILT).
“Bahrain Polytechnic was established as part
of the Kingdom’s long-term plans for economic
development. Specifi cally, the Polytechnic has
been given the task of producing work-ready
graduates of educational courses, ranging
from industry short-programmes to degrees,”
explains John Webb, transport, freight and
logistics programme manager at Bahrain
Polytechnic. “One of the sectors seen as critical
to this vision is logistics and transport. Our
programmes aim to deliver relevant courses
and awards that support the development and
sustainability of the industry. Th e target market
is as diverse as the transport and logistics
industry itself and the plan is to eventually
develop a full range of programmes that can
be delivered in workplaces, at night schools
as well as full time at Bahrain Polytechnic.”
BAHRAIN POLYTECHNIC
INTERVIEW: NIGEL WOODHEAD, HEAD OF LOGISTICS STUDIES AT EMIRATES AVIATION COLLEGE
When was the logistics course established at Emirates Aviation College?Our MBA in logistics and supply chain
management was launched in October 2008
through a collaboration with Coventry
University in the United Kingdom.
How many students are currently enrolled on the education programme?At the moment, over 40 students are
undertaking their MBA in logistics and supply
chain management with Emirates Aviation
College. Students are represented from nine
nations across the globe, bringing with them
experience in a wide range of sectors, such
as the airline industry, purchasing, banking,
real estate and security. Th is broad range of
nationalities, along with their diverse working
backgrounds, provides a useful platform
for everyone to discuss and share their
previous experience and knowledge.
What progress has been made with this logistics course in the past year?Th e college was pleased to gain an additional
accreditation in May 2009 from the Chartered
Institute of Logistics and Transport (CILT),
which is a global association for logistics and
supply chain management professionals.
Is Emirates Aviation College expanding the scope of its education programmes at all?Yes, following the success of our programmes
in Dubai, the college ventured to Singapore
and the UK, launching the MBA in Aviation
Management in September this year. At the
same time, in Dubai we have introduced MBAs
in Aviation Safety and Security, as well as
Information Technology Management. Both
are relevant to logistics, with expenditure on
aviation security doubling in a three year period
and the wider application of sophisticated IT
systems being a major trend in the industry.
How do you expect regional demand for this course to develop in the future? Dubai has continued to push forward as a
leading global logistics hub, with massive
investment in regional transportation
infrastructure and a shortage of suitably
qualifi ed personnel in the region. We therefore
anticipate a growing demand for our courses.
EMIRATES AVIATION COLLEGE
48 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
As a veteran in the Middle East education
sector, the Gulf University for Science
and Technology (GUST) has proved its
mettle with a diverse range of courses.
In particular, the GUST Logistics Forum
(GLF) – its dedicated facility for the
logistics sector – has produced a new
generation of supply chain professionals
this year, helping to combat the industry’s
continued skills shortage. “GLF provides
networking and industry information
to students interested in the fi elds of
logistics and supply chain management,”
explains Professor Philbert Suresh,
course instructor and founder of GLF.
Highlighting its eff orts to promote
logistics in the Middle East, GLF is
planning to launch a publication on the
regional industry, which is scheduled
for publishing in 2010. To research the
book, Suresh launched an online survey
on the university’s website, which has
already received a positive response
from the public. “Th e book will cover the
evolution of transportation in countries
such as Kuwait, Qatar, Saudi Arabia,
Bahrain, UAE and Oman,” he explains.
“We’re hoping this publication will
inspire young minds and help to create
a better understanding about Middle
East logistics, not only in this region, but
throughout the world.”
GULF UNIVERSITY OF SCIENCE AND TECHNOLOGY (GUST)
LOGISTICS EXECUTIVE
Logistics Executive commenced its operations
in the Middle East and Africa around
fi ve years ago, trading under its previous
incarnation of Logistics Recruitment. Since
then, the Australian company has successfully
developed its presence in the local logistics
industry, targeting service companies, such
as freight forwarders and 3PLs, in addition to
manufacturers and distributors.
“Th e massive economic growth in GCC
countries, fuelled by oil revenues and
liberalisation, has been a boon for recruitment
companies in the past few years. However, this
didn’t make the recruitment process any easier,
because more companies are chasing fewer
candidates and organisations are struggling
with both the talent shortage and employee
retention issues,” says Nigel Moore, Logistics
Executive’s managing director in the Middle
East and Africa. “Following our rebranding in
2008, Logistics Executive has continued to grow
as a business, not only in the scope and volume
of work, but also in terms of geographical reach.
We have a growing number of clients using our
services to fi ll roles in all corners of the Middle
East, Africa and surrounding areas.”
Despite its success, Moore admits that the
company is continually challenged in the
Middle East, as rising costs make the region
less attractive to international talent than in
previous years. In addition, a further series
of hurdles has been created from the global
recession in 2009.
“We have spent quite some time during the
year on new attraction strategies and working
closely with clients to improve their hiring
process. With talent being so critical to success
in this dynamic market it’s essential that
companies get their recruitment programmes
working eff ectively,” he says. “As global
economies compete heavily with the Middle
East for available talent then the shortage
of logistics professionals will be a growing
challenge. Unsurprisingly, our clients have
faced diffi culties in attracting and retaining
the right talent and there is more emphasis
being placed on retention than ever before.”
Th e Dubai campus of Middlesex University
London, which opened in January 2005, has
more than 1300 students from over 70
MIDDLESEX UNIVERSITY DUBAI
nationalities and off ers 25 undergraduate
and postgraduate programmes in a variety
of subjects. Th is year, the university has also
drafted plans to establish a centre of excellence
in supply chain management with a leading
logistics company in the region.
“Logistics is currently taught as part of BBA,
BSc degree and the prestigious Middlesex
MBA. Plans are under way to introduce a
masters degree in logistics and short certifi cate
courses will also be launched,” says Professor
Cedwyn Fernandes, MBA campus programme
coordinator and associate professor in
economics and international business.
Th e university’s strategy is to align itself with
developments in the region and it anticipates a
huge demand for trained professionals in this
industry. “We have conducted research with
employers and prospective students,” adds
Fernandes. “Employers almost unanimously
bemoan the lack of trained professionals
in logistics and both prospective students
working in the fi eld and those wanting to join
this industry have indicated the need for a top
class degree in logistics.”
49
TRADE ASSOCIATIONS
www.arabiansupplychain.com | DECEMBER 2009
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
www.yale-me.com
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The productivity of any application is affected by a multitude of factors: number ofpallets moved, truck reliability, operator efficiency and ease of servicing to name but afew. It is only through monitoring, controlling and measuring performance thatproductivity can be truly increased and cost of operation optimised. Whatever theapplication, Yale has a warehouse model to meet your needs.
MORGAN INTERNATIONAL
INTERVIEW: FADI GANNI, CEO OF MORGAN INTERNATIONAL
How strong is demand for logistics training courses in the Middle East?Training courses have played an important
role in supporting the growth of countless
industries in the Middle East, from travel and
tourism to manufacturing and retail. However,
with a limited quota of specialist programmes
for supply chain professionals, the region has
expressed a requirement for suitable courses to
help standardise its logistics sector, especially
in terms of matching the best practices from
Europe and North America.
How has Morgan International worked to capitalise on this gap in the local market?As a Middle East training company with a solid
track record for delivering results since 1995,
Morgan International off ers a diverse range of
professional training that leads to certifi cation.
We initially started with two locations
(Lebanon and Jordan), but the company has
since expanded to 26 locations over the past
14 years, covering the Middle East, as well as
parts of Africa and the Indian subcontinent.
Although we initially focused on accounting,
our courses have diversifi ed into logistics and
supply chain management, as well as human
resources, treasury, internal audit and even
soft skills. We actively help candidates succeed
in professional certifi cation exams by being
highly effi cient, maintaining standards and
off ering distinctive support and follow-up. To
best achieve this, we partner with companies
to provide their staff with tailor-made training
solutions that suit their specifi c requirements.
What topics are covered in your courses?At present, there are four categories in
the curriculum for our logistics training
programmes, which are supply chain
management fundamentals, building
competitive operations planning and logistics,
managing customer and supplier relations, and
using information technology to enable supply
chain management. Each of these categories
has several subdivisions, which refl ect the
Association for Operations Management
(APICS) Certifi ed Supply Chain Professional
(CSCP) body of knowledge and provides the
participant with a broad view of international
supply chain management.
What factors have supported the growth of logistics training in the Middle East?If you look at the local market today, there
is growing demand for a unifi ed body of
knowledge. Th e amount of knowledge and
benefi ts a professional certifi cation gives is the
same, regardless of whether it’s in the Middle
East, North America or Europe. In addition,
companies are looking for individuals who
are more focused on the function they
are hired to do, and the types of
certifi cations that are provided by
our company can achieve that.
Has demand been impacted by the global recession in 2009?Th e recession has placed a strain
on the training budgets. At the
same time, companies that value
their workforce will invest in
training and development
to ensure that employees
are up-to-date, have
the technical skills to
perform their job and it
also acts as a useful
retention programme.
50 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
With a growing list of education institutes
looking at specialist logistics courses, the
University of Bolton in Ras Al Khaimah (RAK)
was the latest to join the bandwagon last year
with its postgraduate programme in supply
chain management.
Th e faculty is covering a range of diff erent
topics with a theoretical approach in order to
enhance their relevance to logistics operations
in the Middle East and beyond. In addition,
the fl exible nature of the MSc programme
includes lectures being held on weekends to
encourage a wider number of professionals to
enrol without aff ecting their work schedules.
“Th is postgraduate programme is designed to
address the needs of both the manufacturing
and service services, with a detailed curriculum
in supply chain management,” explains Raj
Nambiar, director of administration at the
University of Bolton in Ras Al Khaimah (RAK).
Further to the successful launch of its
postgraduate programmes, the university is
planning to launch short term and CPD courses
Looking at the Middle East’s education
sector in 2009, a range of logistics
courses are being off ered by colleges and
universities across the region. However,
six years ago when S.P. Jain Centre of
Management opened its campus at
Dubai Knowledge Village, the scene was
vastly diff erent. In fact, when the Indian
business school announced its MBA in
global logistics, it was truly ahead of
the game. “Th e importance of supply
chain management in determining the
profi tability of companies has never
been greater, especially with the global
recession in full eff ect,” states Dr Rajiv
Aserkar, professor of logistics at SP Jain
Center of Management in Dubai. “With
our early specialisation in the subject, we
are perfectly placed to train students in
developing eff ective logistics strategies to
gain competitive advantage.”
A wide spectrum of topics is covered
in the postgraduate course, including
managerial skills, supply chain network
designs, transportation management, and
performance based logistics. In addition
to the Middle East campus, which is now
located at Dubai International Academic
City, some of the modules are taught at
the business school’s facility in another
global logistics hub – Singapore.
“We have experienced a number
of highlights this year, including a
partnership with the Dubai Department
of Economic Development (DED) to
undertake various applied learning
projects in relation to logistics. Th ese
are underway and we hope to establish
new opportunities for the UAE’s logistics
sector,” continues Aserkar. “In addition,
our crowning achievement was receiving
the Supply Chain and Transportation
Award (SCATA) 2009 for Training and
Education Provider of the Year.”
UNIVERSITY OF BOLTON IN RAS AL KHAIMAH
SP JAIN CENTRE OF MANAGEMENT
THE TUTELAGE
in logistics next year. “We have initialised a plan
to link with corporate organisations in the UAE
as well as the rest of the Middle East to help our
students gain from guest lectures and receive
professional assistance in tackling complex
problems of today’s work places, in addition to
helping students secure quality internships and
placements,” he adds.
Th e MSc programme has been accredited
by the Chartered Institute of Logistics and
Transport (CILT) and the Chartered Institute of
Purchasing and Supply (CIPS).
Following years of success as a logistics
training provider in the Middle East, it seemed
the perfect opportunity for Th e Tutelage to
expand its operations around the world in
2009. With a slow and steady approach, the
Dubai-based company has entered a number
of lucrative markets this year, including
the United Kingdom, Switzerland, Turkey,
Malaysia and Pakistan. Th e strategy has paid
dividends too, according to managing director
Muhammed Asghar, who claims the number
of students attending his courses has almost
doubled in comparison to last year, reaching
approximately 400 people around the world.
“In the past, we have covered the entire
spectrum of supply chain management for
students in the Middle East. However, a lot of
these topics have the same relevance in other
parts of the world, so our global expansion has
been seamless,” states Asghar. “In addition to
these universal topic areas, we have also used
a number of case studies from the Middle
East to showcase how regional companies are
achieving supply chain excellence. In many
cases, we are leading the fi eld over here and
companies in Europe, North America or Asia
could learn from this.”
Despite its success abroad, Th e Tutelage has
remained loyal to its Middle Eastern roots, with
an increasing number of courses being off ered
in the region. In particular, the company has
experienced growing demand within the
telecommunications sector, securing contracts
with industry giants such as Etisalat and
Saudi Telecom. “Our consultants are industry
leaders who posses over 20 years of experience
in management and training,” states Asghar.
“Th e business has performed very strongly
this year and the feedback has been very
positive. We provide evaluation forms after
each course and this year we have averaged a
customer satisfaction rate of 97.8%, which is
very encouraging.”
“Give all my cargo undivided
attenti n.”
Go ahead, challenge us.At Agility, we make it our business to pick up as promised, ship as scheduled, track every move and deliver on time, every time. So we’re not only providing reliable solutions to deliver your freight, we’re managing every move down to the last detail.
...............................
© 2009 Agility Logistics AG
Agility is a leading logistics company with 37,000 employees taking care of our customers in more than 120 countries. Put your local office to the test: [email protected].
�
52 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: TRAINING AND EDUCATION
Th e University of Wollongong in Dubai
(UOWD) launched its postgraduate course in
logistics last year to support Dubai’s growth
as a global centre of excellence for the supply
chain industry. Earlier in 2009, the fi rst batch
of students from the Master of Science (MSc)
programme graduated, after learning about
a range of diff erent topics, such as warehouse
information systems, inventory management
and strategic supply chain design.
“Th e logistics programme has been
structured to develop the skill base of students
and allow them to advance into positions of
greater management responsibility. In addition,
students get hands-on experience in working
with various logistics design software to help
them prepare for life in the industry,” explains
Dr David van Over, UOWD’s Faculty Dean of
Business and Management.
“In terms of student admission, our autumn
intake has refl ected a recovery from the
economic slowdown and promising future of
this programme,” he adds.
Th e university also established a partnership
with Maersk Logistics this year to research a
number of supply chain management topics.
“Th is partnership represents a great honour
for UOWD, as there are a handful of business
schools worldwide that enjoy such status,”
continues Dr van Over. “As part of the initiative,
a series of guest lectures have been arranged
with Maersk Logistics experts this year to
reinforce the student learning process. Th is
experience has been appreciated by our
students as it enriches their learning process.”
In addition to this, UOWD’s faculty is
working with Maersk on numerous research
UNIVERSITY OF WOLLONGONG IN DUBAI
INTERVIEW: UMER SHAMS ARAKKAL, REGIONAL HEAD OF X|VISE INNOVATIVE LOGISTICS
How long has Xvise Innovative Logistics been active in the Middle East market?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.
What are some of the common issues that customers need to address in this region?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 much of a concern has the global recession been for customers in 2009?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 services.
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
steadier than the previous 10 years.
How will Xvise prepare for this growth?Dubai will remain our central base for the
Middle East, although we’re also looking at
market opportunities in Saudi Arabia, Kuwait,
Jordan and other regional countries. In addition,
we feel there is defi nitely scope for Xvise to
introduce its specialisation in the Indian
subcontinent, which holds a lot of appeal.
X|VISE INNOVATIVE LOGISTICS
topics, such as supply chain security and
sourcing trends, humanitarian logistics, port
container handling and green logistics. “We
are looking to establish a research laboratory
on Radio Frequency Identifi cation Technology
(RFID) at UOWD in the near future,” says Dr
van Over. “Th is will add another milestone
to the curriculum, while providing a support
system for local logistics companies to improve
their business processes.”
55www.arabiansupplychain.com | DECEMBER 2009
EMIRATES SUPPLY CHAIN FORUM (ESCF)
ANNUAL REVIEW 2009: TRADE ASSOCIATIONS
ALEX BORG, REGIONAL DIRECTOR OF THE CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT)
Can you provide a backdrop to CILT’s history as a global logistics trade association?We were established in 1919 for professionals in
the supply chain and transport industry. Th ere
are currently 30,000 CILT members around the
world, with our headquarters in the UK and
branches in 30 diff erent countries, including
North America, Australia, Hong Kong, Pakistan
and the United Arab Emirates.
What are the core objectives of CILT?Th e primary focus is providing our members
with relevant and valued services, which also
lead to higher standards within the supply
chain and transport industry. It’s important
for people to adopt leading-edge thinking and
best practice to push the industry forward,
especially in these times of global uncertainty.
When did the trade association establish a presence in the United Arab Emirates?We launched a branch in Dubai around seven
years ago to support a growing number of
members that are based in this region. Th e
response has been very encouraging and
Emirates Group has since agreed to sponsor
our activities and provide an offi ce in Dubai.
TRADE AA SSSSOCOCII AATTIIOONNSS
How many members have been signed in the United Arab Emirates?We have approximately 150 members
from across the shipping, transport and
logistics industry, although this number
continues to increase on a monthly basis.
In particular, CILT is proud to have His
Highness Sheikh Ahmed bin Saeed Al
Maktoum, chairman of Emirates Group,
as our patron in this country.
Are the other trade associations in this region considered competition?On the contrary, we have already formed
a successful partnership with Emirates
Supply Chain Forum (ESCF) and plan
to align our activities with associations
such as the Supply Chain and Logistics
Group (SCLG) and National Association
of Freight Logistics (NAFL) in the future.
What have been the highlights of CILT’s regional operations in 2009?Our logistics events at Emirates Aviation
College were really successful this year
and we even broken our attendance
record with a seminar in October 2009,
which attracted more than 230 people
from countries such as the United Arab
Emirates, Oman, Qatar, Bahrain, Kuwait
and Saudi Arabia. Some of our guests
even travelled from Sudan and Nigeria.
Are you planning to develop CILT’s Middle East presence next year?Yes, there are basically four stages in
our development plan, starting with
a membership drive to attract more
logistics professionals from the United
Arab Emirates and make them a part of
the CILT family. Second, we want to boost
our range of professional courses, which
is something this market really needs.
Th ird, we will arrange a larger number
of programmes and networking groups.
And fi nally, we want to expand into other
countries in the region, such as Saudi
Arabia, Kuwait and Bahrain.
Following a number of initiatives to increase
its presence within the logistics industry, the
membership numbers of Emirates Supply
Chain Forum (ESCF) have increased to
more than 200 people in the past year, with
a focus on the United Arab Emirates and
other countries in the Middle East and Indian
subcontinent. “Our members originate from
across the logistics and supply chain sector,
with representatives from the Galadari Group,
Daewoo, CWT-SML Logistics, Al Maha Resort,
Spinneys and Samsung,” explains Kishore Sasi,
chairman of ESCF and warehouse manager of
Business Automation and Security Systems
(BASS). “Th e board members all met through a
logistics course in Dubai and were encouraged
to continue interacting by opening a website
forum. With the success of our online group, we
decided to host a series of meetings and things
have continued to develop as a result.”
ESCF’s activities in 2009 have included a
number of fi eld trips and training sessions,
covering everything from warehousing and
transportation to material handling and supply
chain technology. “Th e logistics industry is
evolving at a rapid pace and looking back on
the past year, our group has experienced a
number of signifi cant developments,” says Sasi.
“In particular, we extended our partnership
with the Chartered Institute of Logistics
and Transport (CILT) and started an in-
house chapter to train members in eff ective
communication and leadership.”
CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT (CILT)
56 DECEMBER 2009 | www.arabiansupplychain.com
ANNUAL REVIEW 2009: TRADE ASSOCIATIONS
Keeping pace with the changing face of logistics
in the Middle East is sometimes a challenge.
However, with responsibility for looking after
the interests of the sector, it’s a challenge that
the region’s veteran trade association, the
Supply Chain and Logistics Group (SCLG), has
taken very seriously in 2009.
Operating with the legal backing of the
Dubai Chamber of Commerce and Industry, its
been another year of growth for SCLG, with an
increasing number of companies, individuals
and students signing up for membership over
the past twelve months. In fact, with a focus
on boosting membership numbers in 2009, the
association has welcomed a variety of prominent
names, including the likes of Oracle, Dubai
Investment Park, Ehrhardt + Partner Solutions
(EPS), Kanoo Group, Morgan International,
ProLogis and the University of Liverpool.
Representatives from these companies were
also present at SCLG’s second annual Global
logistics and SCM Strategy Summit, which was
held at the Westin Mina Seyahi Hotel in Dubai.
More than 200 delegates took part in the full-
day conference, with speakers and delegates
travelling from various Middle Eastern
When it comes to logistics trade
associations in the Middle East, the
Jordanian Logistics Association (JLA)
is a relative newcomer, established in
October 2007 to support the development
of Jordan’s warehousing and distribution
sector. With support from heavy hitters
such as Jordan’s Ministry of Transport
(MOT) and the International Federation
of Freight Forwarding Associations
(FIATA), its little surprise that JLA has
attracted a growing list of corporate
members, including the likes of Agility,
DHL and TNT Express.
“Logistics companies and freight
forwarders are major components
of Jordan’s transportation industry.
However, until now, we have lacked an
offi cial association to represent these
companies and encourage greater levels
of industry growth,” explains JLA’s
president Nabil Khatib. “As a result, we
were established to protect the interests
of members, raise industry standards,
and take part in the implementation
of regulations and laws in cooperation
with the concerned authorities.”
JLA hosted a number of events
during its second year of operations,
including its fi rst general assembly
meeting in March, which was attended
by two thirds of members. “Most of
the attendees were very positive about
our recent achievements and JLA’s
general balance sheet was approved
accordingly,” adds Khatib. “However,
we expected to double our membership
numbers in 2009, but this was impacted
by the economic crisis and we only
achieved half of that number. Th ere are
signs of a recovery though and we look
forward to a healthier increase in 2010.”
SUPPLY CHAIN AND LOGISTICS GROUP (SCLG)
JORDANIAN LOGISTICS ASSOCIATION (JLA)
NATIONAL ASSOCIATION OF FREIGHT AND LOGISTICS (NAFL)
countries, in addition to Singapore, India and
the United Kingdom.
“Our second Global logistics and SCM
Strategy Summit was a big success and focused
on the latest strategies for managing global
supply chains,” says Dr Kanak Madrecha, SCLG
consultative committee member. “We had 18
speakers in total, in addition to 36 panellists,
six moderators and six track leaders. In fact, the
response was so strong that we have already
announced a follow-up for 12th May 2010.”
Another SCLG event in 2009 included an Iftar
networking session for its recently-launched
Young Professionals Initiative, which aims
to connect the industry with people that are
starting a career in logistics.
As the United Arab Emirates division of the
International Federation of Freight Forwarders
Associations (FIATA), it’s the responsibility
of the National Association of Freight and
Logistics (NAFL) to encourage the development
of the country’s logistics industry. Although
many organisations would consider this
overwhelming remit a challenge, the association
has succeeded in a number of importance
milestones this year, including progress in
making liability insurance a mandatory
requirement for logistics companies operating
in the country. “Th e association was formed in
1992 with the objective of upholding standards
in the logistics industry. We have worked really
hard from the very beginning and we are now
starting to see results, especially this year”
explains Captain Mansoor Ghafoor, NAFL’s
president for the past eight years.
Vocational training has always remained a
key objective for the NAFL, covering the entire
spectrum of supply chain management. Th is
was reinforced in 2007, when the association’s
diploma in freight forwarding was offi cially
validated by FIATA following a two-month
accreditation process. Interest has continued to
grow ever since, with more and more students
being enrolled in 2009. “Training is essential
for the industry and helps to protect the image
of Dubai. After all, if logistics companies are
performing unethically or below standard,
this could potentially harm the industry’s
reputation,” says Ghafoor. “NAFL received a
further boost this year as we hosted the Train
the Trainer (TOT) programme, where specialist
trainers from other national associations
came together to impart training skills. Our
association is also in the process of signing
a Memorandum of Association (MoU) with
these bodies to procure skills and resources to
develop training opportunities in our region.”