PANAMA CARGO LINES
GENAVCO-INTERGULF
TRISTAR GROUP
Smooth sailing to the UAE
Example in Collaborative Logistics
Showcasing a starstudded track record
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
JUNE 2015
DUBAI’S VIRTUAL FREIGHT LOGISTICS CORRIDOR Streamlining Logistics through Seamless Processes
2 | Logistics News ME | June 2015
Contents
5 | NEWS SCAN:
Roundup of Industry Regional & International News
9 | ADP’S NEW
CRANES: Abu Dhabi Ports acquires new Liebherr harbour cranes
10 |DSE
CONTRACTS: Drake & Scull Engineering bags top orders in Oman
Features
29
12 | BOROUGE
BLISS: Plastics solutions provider highlights innovative SC mechanisms
43 39 | DIPLOMATIC
18 | FREIGHT
DELIBERATIONS : HE the Panamanian Consul General on his country’s trade potential
LOGISTICS CORRIDOR: Showcasing the passageway to efficient logistics
42 | SWISSLOG
25 | CHEMICALS
LOGISTICS: Missing the mark in Mid-Term Chemicals
MILESTONE: Swiss logistics solutions provider sets up shop in UAE
29 | CALIBRATING
44 | MIX
36 | PANAMA
46| GENAVCO-
CALABRIA : Celebrating the trade potential of Italy’s
CARGO LINES: Panamanian carrier sails into Dubai
TELEMATICS Tackling road transportation woes
46
INTERGULF: Showcasing logistics partnerships
Logistics News ME | June 2015 | 3
Editor’s Note EXPEDITING LOGISTICS
“The line between disorder and order lies in logistics.”—Sun Tzu (544-496 BC) This famous quote is attributed to the brilliant Chinese military general, strategist and philosopher over 25 centuries ago. However, its implications still hold good even to this present time. It is not an exaggeration to say that efficient and streamlined logistics is the secret and key to business success in any industry. As a corollary, it is also fair to say that the failure of logistics will not only result in the breakdown of the supply chain but also possibly lead to the collapse of the industry as a whole. The concept of streamlined logistics is the basis for our cover story for this edition as we expound on the recently introduced ‘Dubai Virtual Freight & Logistics Corridor’, a creative initiative of Dubai Customs in conjunction with Dubai Economic Department (DED), that underscores the importance and prominence of Dubai as a major logistics hub. We examine in-depth the processes, advantages and implications of this ingenious strategy that will ensure the smooth and seamless movement and trans-shipment of cargoes between multi-modal means of transport both for inbound and East or West-bound freight. Logistics News Middle East attended the launch ceremonies at the offices of Dubai Customs and reports an exclusive interview with its Director, HE Ahmed Mahboob Musabih. We also attended the inaugural ceremonies for the launch in the UAE of the new offices of the Panamanian carrier—Panama Cargo Lines and its exclusive agent the Seahorse Group. Strategically located Panama and the UAE are also major logistics hubs for the hinterlands they serve and in this context the presence of Panama Cargo Lines in the UAE is a welcome move. Against this backdrop, we also met and engaged with HE Eduardo Fonseca Ward, the Consul General of Panama to the UAE on a one-on-one interview. A consummate diplomat with a multi-faceted background, the affable, genial envoy fielded questions on a
wide range of subjects concerning the two countries and on his endeavours to forge closer Panama-UAE political and trade ties. We also examine the report cards of Drake & Scull Engineering a subsidiary of Drake & Scull International, an integrated, end-to-end service provider in the field of electrical and mechanical engineering. Drake & Scull Engineering has recently been awarded lucrative contracts in the Sultanate of Oman. Elsewhere we also report on developments at the burgeoning Doha, Qatar-based Gulf Warehousing Company which has made forays into several nonconventional logistics sectors including equestrian, fine arts and now express courier services under a special partnership with international package delivery major & supply chain solutions major UPS. We also look up close at the new US $20.2 million, 12K sq. m. DHL logistics centre in the Saudi Arabian capital Riyadh. The facility, the largest for the company in the region, is yet another milestone in its penetration in the region. Kuehne + Nagel, the Swiss global logistics & transportation company celebrates its 125th year of existence with a commemorative function held at its offices in Dubai World Central’s Logistics District. A roving ‘40-foot Anniversary Container’ that began its roundthe-world odyssey from the German port city of Bremen, was showcased in Dubai, as a highlight of the celebrations. We spoke exclusively to Mustafa Sener, the company’s Managing Director for the UAE & Oman on this occasion. We hope you will enjoy reading this news and features-packed edition of Logistics News Middle East. We have an interesting line-up of content coming up in our future editions. For now though, relish this edition.
Editor Malcolm Dias Malcolm@bncpublishing.net
Group Sales Manager Jayant Dey Jayant@bncpublishing.net
Managing Director Walid Zok Walid@bncpublishing.net
Art Director Rana Husam Shiblaq rana@bncpublishing.net
Director Rabih Najm Rabih@bncpublishing.net
Marketing Mark Anthony Monzon Mark@bncpublishing.net
CONTRIBUTORS Director Wissam Younane Wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley Dom@bncpublishing.net 4 | Logistics News ME | June 2015
Mark Millar, Joy Thattil, Prakash PK Menon
SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196
Malcolm Dias Editor malcolm@bncpublishing.net
For all commercial enquiries related to Logistics News Middle East contact
Jayant@bncpublishing.net T +971 50 1971200 All rights reserved © 2014. Opinions expressed are solely those of the contributors. Logistics News Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News Middle East. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock. Printed by Raidy Emirates Printing Group LLC www.raidy.com
NEWS
Panalpina acquires its long-time Egyptian LSP Afifi
Basel,Switzerland-based supply chain solutions provider Panalpina is to acquire its Egyptian agent Afifi, a family-owned company specializing in freight forwarding, customs clearance and logistics. The move is an important step in Panalpina’s continued strategic expansion in growth economies, in particular in the Middle East and Africa. Afifi has been Panalpina’s agent in Egypt for the past 20 years. “Egypt has a lot of potential for us,” commented Peter Triebel, Panalpina’s regional CEO for the
Middle East, Africa and CIS. “By uniting with our long-standing partner Afifi, we will increase our foothold in this attractive market and lay a strong foundation for growth. Afifi has a solid customer base in Egypt, as well as a strong track record and reputation in local customs brokerage and projects work.” Since 1995, Panalpina has counted on Afifi as its agent in Egypt for ocean freight, air freight and projects services. “After 20 years of successful cooperation, we are excited to become a full member of the Panalpina family and part of a truly global network,” affirmed Mohamed Afifi, Jr., Managing Director designate for Panalpina in Egypt. “The acquisition will not only allow us to substantially increase business in our home market but also across borders, as we will now
be able to offer true end-to-end solutions to our international customers.” Afifi was established in 1936 in Cairo by Mohamed Afifi, Sr. and today employs around 150 staff in offices in Cairo, Alexandria and Suez / Sokhna. Afifi will now be fully integrated into Panalpina. The two companies reached a respective agreement on May 28, 2015, under which Panalpina will acquire 100 percent of Afifi, subject to conditions. While all major industries are represented in the country, Panalpina sees the greatest growth potential in the oil and gas, capital projects, telecom, automotive and healthcare sectors. The government has stepped up efforts to encourage the exploration of oil and gas, in particular in the Nile delta. Egypt, with a population of almost 90 million people, is the largest non-OPEC oil producer in Africa and the second-largest dry natural gas producer on the continent. Egypt also plans to build an international industrial and logistics hub near the Suez Canal in conjunction with the current scheme to dig a second canal that will facilitate two-way traffic of larger ships.
ADP, SIDDCO GROUP IN US $35.4m MUSATAHA AGREEMENT Abu Dhabi Ports has welcomed SIDDCO Group’s latest venture iNGENIUM to Khalifa Port’s industrial zone (Kizad) as its latest investor. The AED 130 million (US $35.4 m) Musataha Agreement was signed by Mohamed Juma Al Shamisi, CEO Abu Dhabi Ports, and Zakee Siddiqi, Chairman & CEO Siddco Group, under the patronage of HE Giorgio Starace, Italian Ambassador to the UAE, HE Umberto Bernardo, Deputy Italian
Ambassador to the UAE, and in the presence of Stefano Pinca, Middle East Project Manager for the Italian Institute of Welding and Marco Ferioli, Head of MENA Region for SACE, among other dignitaries. iNgenium, a subsidiary of the well-established Siddco Group, will set-up a state of the art facility in Kizad, envisaged to generate more than a million man-hours per annum, with a fully automated production plant utilising cutting-edge
Italian technology to manufacture intricate equipment in various formats and metallurgies. The iNgenium site is spread over a plot covering 122,000 square meters, with direct access to Kizad’s modular path, a dedicated road for moving over-sized equipment between the investors’ facility and Khalifa Port, in a swift, safe, and economical manner. iNgenium’s built-up area will include a production unit, modular
equipment assembly unit, a NonDestructive Test unit, an office block, a training centre, as well as a community centre to continually enhance the quality of human resources. Zakee Siddiqi, Chairman & CEO Siddco Group, stated, “iNgenium will deliver enhanced efficiency and reliable engineering. Our ongoing investments in Italian machinery have proved extremely beneficial in ensuring uniformity in quality and precision.” Logistics News ME | June 2015 | 5
NEWS
GWC INAUGURATES UPS FLAGSHIP CUSTOMER CENTRE IN QATAR
G
WC, the authorised service contractor for UPS in Qatar, very recently inaugurated its new flagship location in the country’s capital Doha. “At UPS we strive to give our customers everything they require to do more. Customers define what they need, and we support them by proposing solutions and quickly implementing them to keep goods moving smoothly and swiftly around the world,” stated Christos Volis, Country Manager for UPS in the Middle East on this occasion. “Gulf Warehousing Company has made considerable effort to enhance the logistics infrastructure and solutions offered to better service the Qatari clientele, ensuring the best and most reliable supply chain for our customers. And by bringing UPS under our umbrella, our clients will have access to complete logistical services from GWC,” commented Ranjeev Menon Group CEO for Gulf Warehousing Company. The inauguration also celebrated the launch
of UPS’s four other locations in the country, with branches in Doha, Ras Laffan and Messaied and will offer the full range of international shipping services.
Gulf Warehousing Company recently signed an agreement with United Parcel Service (UPS) to become the authorised service contractor for its express parcel service starting from 1 June 2015.
DMCC, DMCA sign MoU
D
MCC (Dubai Multi Commodities Centre), one of the world’s leading commodity hubs for trade and enterprise and the largest and fastest growing Free Zone in the UAE, recently signed a Memorandum of Understanding (MoU) with the Dubai Maritime City Authority (DMCA). The MoU provides a collaborative framework for DMCC Free Zone and Dubai Maritime City 6 | Logistics News ME | June 2015
Authority to help promote Dubai to the maritime sector as a global destination for companies wanting to set up and expand into the GCC and MENA region. The MoU will also jointly explore the development and implementation of mGovernment initiatives relevant to the maritime sector in Dubai in accordance with the Dubai Smart Government initiative. In their first official collaboration following the
MoU signing ceremony, DMCC will join DMCA at their stand at the Nor-Shipping Trade Fair during the first week of June 2015 in Oslo, Norway to jointly promote Dubai as a business hub for the MENA region The signing ceremony was attended Ahmed Bin Sulayem, Executive Chairman of DMCC and Amer Ali, executive director, Dubai Maritime City Authority.
NEWS
AGILITY KUWAIT WINS ASSE AWARDS
SOHAR Port
celebrates Evergreeen Shipping’s maiden call
A
gility recently received a gold award from the American Society of Safety Engineers (ASSE) in recognition of its outstanding Health, Safety & Environment (HSE) performance and a special award for its corporate social responsibility program. At the 2015 ASSE Gulf Cooperation Council HSE Excellence Awards, Agility won the gold HSE award in the logistics sector category for the fourth consecutive year and came away with the inaugural corporate social responsibility award. Agility was selected by a panel of judges for its HSE management program in warehousing which contributed to an exceptional safety track record at the company’s Kuwait facilities. Agility was also recognized for its comprehensive corporate social responsibility strategy. Ali Mikail, Agility Senior Vice President, Area Kuwait and Levant, commented: “These prestigious
S awards are a tribute to Agility’s long-standing commitment to raising the standards of health and safety management and to being a good citizen in the communities where we work. They reflect the combined efforts of our employees who have also made a personal commitment to ensure that we maintain the highest safety standards, give back to the community and protect the environment.” The American Society of Safety Engineers-Gulf Cooperation Council HSE Excellence Award is presented by the American Society of Safety Engineers – Kuwait chapter, a non-profit voluntary organization, to recognize leadership and excellence, and to encourage exceptional performance in the field of Health, Safety and Environment in private sector companies in the Gulf Region. Agility, one of the world’s leading providers of integrated logistics, is a publicly traded company with more than $4.8 billion in revenue and more than 20,000 employees in over 500 offices across 100 countries.
5 : Number of VLCCs, each with a capacity of 300,000
DWT, ordered by Bahri from Hyundai Samho Heavy Industries
OHAR Port and Freezone celebrated the continued rapid growth of the port as it welcomed the recent inaugural call of the container vessel ‘Messini’. The new service, in partnership between Evergreen and Simatech, will now regularly connect Sohar Port with other major ports in South Asia. The new line is an important addition as it broadens the connectivity of SOHAR with the world and will offer even more choice for Omani importers and exporters. Attending the welcome ceremonies at the quayside ahead of the arrival of the vessel were HE Sultan Bin Salim Al Habsi, Chairman of the Board of Sohar Industrial Port Company (SIPC);
shipping lines. HE Sultan Al Habsi commented: “By attracting investment in Oman, we are realizing the vision of the government to create another major regional hub port which will help grow not only our captive cargo, but will also take full advantage of Oman’s strategic location for transshipment activities.” Andre Toet, CEO of the Port Authority, remarked: “Today’s maiden call bears witness to the steady growth in both our handling capacity and our efficiency at SOHAR Port. The continued smooth operations at OICT have brought us new lines and more connections.” Sohar Port aims to ensure all Oman-bound cargo will be
HE Said Bin Hamdoon Bin Saif Al Harthy, Undersecretary of the Ministry of Transport and Communications for Ports and Maritime Affairs; Sohar Port and Freezone CEOs Andre Toet and Jamal Aziz respectively; Albert Pang, the CEO of Oman International Container Terminal (OICT) as well as representatives of the Evergreen and Simatech
directed through Omani ports in the near future. Jamal Aziz, CEO of Sohar Freezone observed: “We now have the capacity for 1.5 million TEUs annually through the Port and that translates directly into more business opportunities in Sohar Freezone. As the Freezone grows as a manufacturing base, the Port will also grow its share of exports.”
Logistics News ME | June 2015 | 7
NEWS
BAHRI SIGNS AGREEMENT WITH HYUNDAI SAMHO HEAVY INDUSTRIES The National Shipping Company of Saudi Arabia (Bahri) recently signed with Hyundai Samho Heavy Industries (HSHI), an agreement to build 5 very large crude carriers (VLCCs) plus 5 more optional VLCCs. The Company will announce the financing details at a later time. The signing ceremony was attended by Eng. Ibrahim Abdulrahman Al-Omar, Bahri’s Chief Executive Officer and S. H. Ka, Hyundai’s Member of the Board & Chief Operating Officer. Eng. Al-Omar, stated that this agreement is in line with Bahri’s plans to renew and expand its fleet to meet the requirements of both local and international markets. The first 5 VLCCs designed to the latest international technical specifications are due for delivery during 2017. These carriers, each with a capacity of 300,000 DWT, are designed to the latest international technical specifications and are fitted with environment friendly and fuel efficient engines. Eng. Al-Omar also mentioned that this will rank Bahri as number one VLCC owner globally. This ship order will ensure that Bahri remain competitive in the shipping market, support its efforts to expand its customer base and ensure reliable and efficient services. Bahri is the exclusive provider of VLCC transport services for Saudi Aramco delivered crude oil sales under a long-term freight contract. The Company has recently signed a 10-year agreement with Korea’s S-Oil Corporation. Under this agreement, it will transport crude oil cargoes on VLCCs from the Arabian Gulf and the Red Sea to Ulsan in South Korea. 8 | Logistics News ME | June 2015
Saudi Transport 2015 inaugurated Eng. Hathlool Hussein Alhathlool, Deputy Minister for Roads, on behalf of Engineer Abdullah Bin Abdulrahman Al Muqbel, Minister of Transport, Kingdom of Saudi Arabia, recently inaugurated the Saudi Transport 2015 at the Riyadh International Exhibition Centre and Conferences. The opening ceremony was attended by key officials from the ministry along with representatives from various sectors and government entities. The event also drew the presence of project leaders in Saudi Arabia’s transportation sector, as well as heads of regional and international companies that have played instrumental roles in projects that are currently being implemented and are involved in potential future projects. The King Abdulaziz Public Transport Project in Riyadh was an important highlight of the exhibition. Showcased by the High Commission for the Development of Riyadh, the project was featured through a large stand exceeding 1,000 sq. m. Eng. Alhathlool commented: “Saudi Arabia is now in the lead as far as mega projects within the transport industry, whether in the city of Riyadh or Jeddah or Makkah or the Eastern province are concerned. We have achieved several milestones within the transport sector at different levels including the national projects and capabilities. The pace of infrastructure growth is steadily gaining momentum in the Kingdom.” The Saudi Railways Organization provided an update regarding the status of the projects being implemented, including the Haramain High Speed Rail Project and its
stations. They also discussed future plans to construct new stations and integrate the latest technologies to develop modern passenger and cargo transportation programs. Representing the corporate sector, Saudi Bin Laden Group participated in the exhibition to showcase the company’s diverse portfolio of infrastructure projects currently being implemented. These new undertakings include a new airport at the heart of the Kingdom, as well as railway projects that will greatly contribute to the transportation of industrial and commercial products. For its part, the Saudi Public Transport Company reviewed bus models, mass transport systems, and their contribution to the Riyadh Metro project. Other relevant Saudi and international companies also demonstrated their respective logistics services in support of the transport sector’s advancement in the Kingdom. Held under the support and patronage of the Saudi Ministry of Transport, ‘Saudi Transport 2015’ attracted leading local and international industry players who showcased their advanced products and services and communicate effectively with top-notch experts, investors and industry leaders. The event also featured a wide range of the latest products, services and solutions related to the various segments of the transport industry including air freight; integrated transport techniques; rapid transport; land, sea and air transport; public transport systems; online data exchange; Enterprise Resource Planning (ERP); e-services; distribution; free-zone services and equipment; insurance and other related areas.
UPS • • • •
Over 400,000 employees Average daily deliveries to 9.8 million customers 18 million packages delivered daily. Operates in over 220 countries & territories
MOBILE HARBOUR CRANES
ABU DHABI PORTS
takes productivity to new heights with new harbour cranes The new Liebherr mobile harbor cranes procured by Abu Dhabi Ports can lift 65 tonnes and reach across 35 metres
A
bu Dhabi Ports has taken delivery of two new mobile harbor cranes which will be used to handle the increasing volumes of general cargo, faster and more efficiently. The new cranes are part of an ongoing upgrade to all of the general cargo handling equipment in Khalifa, Zayed and Musaffah Ports. The new cranes are supplied by Liebherr and have been made in Austria. They can lift 65 tonnes, and will complement Abu Dhabi Ports’ existing cranes, which are capable of lifting loads of up to 100 tonnes. The new cranes were shipped to Zayed Port from Western Europe. Specialist engineers from Liebherr flew over to work with the Zayed Port engineering team to assemble and commission the high tech equipment, a process which has taken about a month. The assembly time also served as a familiarization period for Abu Dhabi Ports staff. The cranes are now fully operational and Abu Dhabi Ports’ engineers are fully trained on the maintenance requirements of the new equipment. Gary Lemke, Executive Vice President, Abu Dhabi Ports commented: “General cargo
is a growing sector for our ports, covering everything from grain to animal feeds, to concrete and building sand, our general cargo
volumes grew by 37% last year and we expect this growth to continue. These new cranes will increase our productivity levels, enable us to improve our operational processes and ensure that we continue to meet and exceed the growing needs of our customers.” Abu Dhabi Ports handled record volumes of general cargo in 2014, a total of 12.8 million freight tonnes, which was a 37% increase on the 2013 general cargo volumes. The majority of this volume is dry bulk cargo and Zayed Port has just received four new hoppers to support this sector further. The hoppers will be used to improve the speed and efficiency of handling dry bulk cargo from the unloading ship into land transport. The hoppers were manufactured by a local supplier York and were commissioned and tested while the new cranes were being constructed. By utilizing the new cranes in tandem with the hoppers, vessel turnaround times will be greatly reduced, enabling the port to handle increased capacity and growing volumes of bulk cargo fully trained on the maintenance requirements of the new equipment.
Logistics News ME | June 2015 | 9
RTA PROJECTS
DUBAI RTA’S COMPLETED PROJECTS
Dubai RTA’s spend on infrastructural and logistics projects since its establishment in November 2005 has topped US $21.8 billion paving the way for rapid economic growth in the Emirate
H
E Mattar Al Tayer, Director General & Chairman of the Board of Executive Directors of the Roads & Transport Authority (RTA), revealed that RTA’s expenditure on infrastructure projects since its inception in November 2005 has reached around US $21.8bn and its assets amounted to over US $23.2 bn. Al Tayer made these remarks during the launch of Projects Management Development Program (Projects) organised by the RTA in collaboration with the Project Management Institute (PMI) as part of the periodic meetings between the executive directors, directors and managers of RTA. The giant projects undertaken by the RTA contributed to ranking the UAE as one of the top countries in the world in terms of road quality in 2012 and 2013 according to the Global Competitiveness Report published by the World Economic Forum.
10 | Logistics News ME | June 2015
These projects also contributed to improving the quality of life of residents where Dubai clinched the first position in the quality of living in the MENA region in 2014. Thus RTA’s projects have had a positive bearing on the economy of the Emirate of Dubai, with savings in time and fuel exceeding US $23.7 billion during the period from 2006 till the end of 2014. “Maintaining the achievements and excellent standing achieved by the RTA can only be possible by mapping out improved work plans, developing new unconventional initiatives, picking up new knowledge & expertise capable of meeting future requirements, improving points of strength, and engaging in a continuous process of learning and improvement,” explained Al Tayer. Future plans also envisage leveraging customers service strategies as well as the smart city projects, maintaining academic &
training programs to qualify second & third generation of leaders, enticing national talent to meet the needs of future phases and running new initiatives in the field of project management. “The Projects Management Development Program (Projects), launched by the RTA, complements the project management program accomplished in 2014. The new program aims at uplifting the skills and capacities of employees to be engaged in project planning, construction and management in future to ensure that they are accomplished professionally and comply with world-class standards. It also seeks to qualify & train individuals in various levels of corporate project management, groom young national cadres to take up the role of projects management, qualify some directors and project managers to manage a portfolio of the program’s projects, and upgrade the efficiency of
RTA PROJECTS
managing and monitoring project portfolios. The programs covers a wide array of mini programs aimed at boosting the skills of target groups in the field of project management to instill in them the principles of project management, management of advanced projects, management of project portfolios, and additional competencies and skills required for project management.
“Maintaining the achievements and excellent standing achieved by the RTA can only be possible by mapping out improved work plans, developing new unconventional initiatives and pursuing other professional measures,”—HE Mattar Al Tayer
Logistics News ME | June 2015 | 11
C H E M I C A L S S U P P LY C H A I N S O LU T I O N S
BOROUGE
UNDERSCORES ITS INNOVATIVE SUPPLY CHAIN SOLUTIONS The recently concluded 7th Gulf Petrochemicals & Chemicals Association (GPCA) Supply Chain Conference represented a unique opportunity for Borouge to discuss key developments in the supply chain business within the petrochemical and chemical industries and reinforce its leading position and market share in the region.
B
orouge, a leading provider of innovation, value-creating plastics solutions, participated and sponsored the 7th Gulf Petrochemicals and Chemicals Association (GPCA) Supply Chain Conference held recently in Dubai. The event offered a significant platform for Borouge’s supply chain officials to interact and network with local and regional supply chain experts, professionals and service providers. “The 7th GPCA Supply Chain 12 | Logistics News ME | June 2015
Conference provides leaders in the supply chain business with an opportunity to engage in learning about the latest developments in supply chain management,” said Ahmed Al Shamsi, Senior Vice President Supply Chain
Management, Borouge. “The conference was an ideal opportunity for Borouge supply chain professionals to exchange knowledge and ideas about the best practices in supplying goods to customers, building on our existing experience in
BOROUGE A JOINT VENTURE BETWEEN THE ABU DHABI NATIONAL OIL COMPANY (ADNOC) AND AUSTRIA BASED BOREALIS, A LEADING PROVIDER OF CHEMICAL AND INNOVATIVE PLASTICS SOLUTIONS
C H E M I C A L S S U P P LY C H A I N S O LU T I O N S
“The conference was an ideal opportunity for Borouge supply chain professionals to exchange knowledge and ideas about the best practices in supplying goods to customers, building on our existing experience in managing supply chain challenges including our B3 expansion.”
managing supply chain challenges including our B3 expansion.” He pointed out that the participants of the conference were involved with significant discussions about the policies and strategies that the region’s governments and industrial sectors are undertaking to improve accessibility to and from the region and to meet the GCC’s economic development goals for 2020. “Sponsoring this important conference reflects Borouge’s commitment to highlight our innovative supply chain solutions in tackling and facilitating efficient processes in providing products to our regional customers and responding to all their delivery issues and requirements,” said Saeed Al Badi, Vice President Regional Supply Chain, Borouge. Alan Izzard, Senior Adviser, Borouge, and Director of Gulf Sustainability and Quality Assessment System (SQAS) Programme, GPCA, delivered a presentation at the conference on the aspects of SQAS. He said that SQAS aims to evaluate and drive continuous improvement in EHSS&Q (Environment, Health & Safety, Sustainability & Quality) performance of logistics service providers (LSPs) and drives continuous Responsible Care improvement in supply chain.
He pointed out that the Sqas programme also promotes internal improvement in logistics service providers, reduces resources and cost for manufacturers and comprehensively addresses the two Distribution and Product Stewardship Codes of the Seven Codes of Management Practice. Another presentation was also delivered by Naser Zaid Al Omaira, Vice President Site Supply Chain, Borouge, in which he highlighted the importance of achieving sustainability through collaboration. As a founding member of the GPCA, Borouge also sponsored students from the American University in the Emirates (AUE) to participate in the 7th GPCA Supply Chain Conference. The students had the chance to enhance their knowledge about supply chain business and realise the important role that Borouge supply chain professionals play in ensuring a reliable and safe delivery of products to our customers around the world. A robust supply chain infrastructure and integrated IT systems provide Borouge’s customers with a seamless ordering process within competitive lead-times. Polyolefin pellets are distributed from
Khalifa Port and Jebel Ali, the logistics gateways in the UAE and then sent to major local depots before being distributed to ports around the world. Borouge is expanding its commercial and logistics network in the Middle East and Asia to be closer to customers. Borouge has already dedicated logistics hubs in Asia with warehousing and packing facilities in Shanghai, Guangzhou and Singapore. In 2014, Borouge opened three new Asian warehouses to better serve the needs of Borouge’s growing customer-base in the Asia North and Asia South regions. These include two new local warehouses in Tianjin and Ningbo in China, and a regional warehouse in Singapore.
“The conference was an ideal opportunity for Borouge supply chain professionals to exchange knowledge and ideas about the best practices in supplying goods to customers,”— Ahmed Al Shamsi Logistics News ME | June 2015 | 13
DUBAI AUTOMOTIVE AFTERMARKET TRADE
DUBAI AUTO PARTS AND ACCESSORIES TRADE VALUED AT US $12.1 b IN 2014
D
demand for the CV spare parts market, which ubai’s trade for auto parts and accessories was valued at US $12.1 Dubai’s booming automotive was valued at US$3.38 billion in 2014, and billion in 2014, a 10 per cent increase aftermarket trade has grown likely to reach US$5.49 billion by 2020, over the previous year, new figures growing 8.4 per cent annually. 10 per cent year-on-year Subhash Joshi, Regional Head for released by Dubai Customs revealed recently. & the outlook looks very Automotive & Transportation in the Middle Imports of the Emirate’s booming automotive healthy. East and North Africa at Frost & Sullivan, aftermarket trade were valued at US $7.08 billion spoke about the trends and opportunities in the last year, while the value of exports and re-exports GCC CV market, as crude oil exports and coming out of Dubai was US S4.9 billion. “Serving a pivotal role in automotive spare parts trade, Dubai acts as liaison economic indicators point toward an accelerated growth path. “Crude Oil Price is the most important factor controlling growth of between Asian, European and North American manufacturing countries and the consuming markets in the region,” noted HE Ahmed economy in the GCC, and good economic growth drives government Mahboob Musabih, Director, Dubai Customs. investments, resulting in higher commercial vehicle sales,” observed Joshi. According to Dubai Customs, Japan (US $1.67 billion), South Korea “Increasing population and rising per capita incomes are also driving (US $972.3 million), China (US $901.9 million), Germany (US $861 higher consumption of goods, and the GCC economy is highly million) and the USA (US $847.4 million) were Dubai’s top country dependent on imports for these goods. partners last year in terms of total auto parts trade. Any growth in consumption patterns will lead to more transportation Meanwhile, Saudi Arabia (US $645.8 million), Iraq (US $294.3 and logistics activities, resulting in higher demand for trucks and million) and Afghanistan (US $218 million) were the Emirate’s biggest buses,” he added. export and re-export markets in 2014, accounting for a combined 23 per The rise of the regional commercial vehicles industry and correlating cent of Dubai’s exports and re-exports of auto parts, accessories, tyres, demand for CV auto parts and services came as good news to the Truck and engine components for the year. Competence exhibitors at Automechanika Dubai 2015. A total of 891 Three major trading partners claimed 49% share of Dubai’s total out of 1,889 exhibitors at the three-day event had truck spare parts, automotive parts imports. Japan was the top destination from which equipment and services within their product portfolio, a massive 76 per Dubai’s car parts originated, claiming US $1.67 billion of the market. cent increase over the previous year. South Korea followed with US $967.3 million worth of imports. China According to Frost & Sullivan, Saudi Arabia and the UAE dominate was the third most important import source valued at US $880 million. the Gulf region’s CV auto components market, accounting for a The figures were announced to an audience of auto parts combined 84 per cent regional market share in 2014. manufacturers, suppliers, fleet operators, and regulators at the Saudi Arabia’s CV Spare Parts demand was valued at US$2.05 Automechanika Academy’s Commercial Vehicles Conference, which billion in 2014, and projected to be worth US$3.65 billion by 2020, while the UAE’s US$800 million market in 2014 is expected to reach took place on the side-lines of Automechanika Dubai 2015. Meanwhile, according to global analysts Frost & Sullivan, 115,171 US$1 billion by 2020. Maintenance (filters, spark plugs, belts, brakes and shoes / linings) trucks and buses were sold in the GCC in 2014, bringing the total and mechanical parts (pumps, alternators, thermostats, starters, and number of commercial vehicles on the region’s roads to 1.2 million. The 1.84 million Light, Medium and Heavy Commercial Vehicles absorbers) account for 72 per cent of the market, while there’s also high expected to be operational in the GCC by 2020 has in turn created a big demand for collision parts in the UAE, Saudi, and Kuwait.
14 | Logistics News ME | June 2015
700+ Projects Delivered
LEED Platinum, LEED Gold and LEED Silver Capability
s n o i t u l o S d e t a r g te End to End In
project experience
130+ years of
ISO 9001, 14001 and OHSAS 18001 certiďŹ ed
Pioneering Engineering Construction since 1881
For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.
Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.
www.drakescull.com
Logistics News ME | June 2015 | 15
VOLVO I-SHIFT GEARBOX:
Driving profitability VOLVO’S I-SHIFT AUTOMATED MANUAL GEARBOX maximises uptime and makes your transports more efficient. Thanks to built-in intelligence, it quickly and automatically chooses the right gear. The result is less wear and tear, optimise d fuel consumption and safer, easier and more comfortable driving. Or put differently, I-Shift makes transports with your Volvo trucks more profitable. For MORE INFORMATION ABOUT I-SHIFT please visit volvotrucks.com
16 | Logistics News ME | June 2015
Al-Futtaim Auto & Machinery Co. LLC, Dubai: Tel: +971 4 2135100 Dubai Investments Park: Tel: +971 4 8154800 Abu Dhabi: Tel: +971 2 5029100 Al Ain: Tel: +971 3 7210777 Ras Al-Khaimah: Tel: +971 7 2216120 e-mail: famco@alfuttaim.ae www.al-futtaim.com
COVER STORY
DUBAI’S LOGISTICS CORRIDOR: LOGISTICS SIMPLIFIED
An initiative by Dubai Customs in partnership with the Dubai Economic Department (DED) facilitating the speedy and hassle-free movement of transferred and trans-shipped goods bodes well not only for the supply chain and logistics industry in Dubai and the UAE but across the region.
W
ith the new virtual freight and logistics corridor, recently launched by Dubai Customs and the Department of Economic Development (DED), the process of transferring cargo among handling authorities and shipment companies is now more streamlined, resulting in both time and cost efficiency. In early May 2015, Dubai Customs and the Department of Economic Development in Dubai officially announced the introduction of the Virtual Corridor to boost the Emirate’s trade & commerce and enhance the overall trade sector. The Virtual Freight and Logistics Corridor is an innovative and first-of-its-kind initiative aimed in strengthening the competitiveness of the UAE in general and Dubai in particular at the international level. The Corridor is the consequence of and in line with the directives of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE & Ruler of Dubai, to pursue and foster innovation in public service delivery to go beyond the limited notion of customer satisfaction and aim for efficiency and customer contentment.
18 | Logistics News ME | June 2015
Approved by the Executive Council of Dubai in 2012, the Virtual Freight and Logistics Corridor Policy was the result of collaborative efforts initiated by DED through a Multimodal Transportation and Logistics Stakeholder Platform in 2011. In partnership with Dubai Customs, the Virtual Freight and Logistics
VIRTUAL CORRIDOR IN BRIEF, MAJOR BENEFITS: • Facilitates cargo transfer and traffic • Enables fast transfer of goods from a Customs post to another in Dubai • Reduces the financial cost to the customer • Enhances the competitiveness of the emirate of Dubai and maintains its leadership • Attracts more traders and investments to Dubai • Contributes to uphold and improve the reputation of Dubai regionally and globally • Promotes strong and sustainable economic rebound performance
COVER STORY
Corridor is a result of an integrated study of the current situation and needs of the freight and logistics sector. It is a unique automated customs procedure designed to facilitate goods transport between two Dubai Customs centres by road, connecting the point of entry to the point of destination in Dubai, under Cargo Transport Requests submitted by clients for this purpose. According to Sami Al Qamzi, Director General of DED, Dubai’s multimodal transportation and logistics cluster comprises two main economic sectors – transport, storage and communication, and secondly, wholesale, retail trade and repairing services. “Together, these economic activities account for over 40% of Dubai’s GDP and over 30% of the total employment,” he stated. With the virtual corridor, cargo will be moved in under four hours without the need for a client to submit a cash bond or bank guarantee, as it is the minimal procedures. Dubai Customs will grant clients virtual financial guarantee for each consignment to be transferred among Customs centres in Dubai. More companies are expected to come on board the Virtual Corridor platform, marking strong involvement from the business community in joint initiatives and innovative work mechanisms that facilitate trade and economic activity. During the official launch, Sultan Ahmed Bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation and Chairman of DP World noted: “In this year of innovation, Dubai Customs is supporting the national march through an ingenious initiative to deliver innovative trade solutions, giving the sector a new growth impetus and further reinforcing Dubai’s advantages in terms of trade and investment, specifically by simplifying goods movement between different customs points in the emirate. This initiative will allow Dubai to establish itself on the world trade map, especially with Expo 2020 drawing closer.” According to Ahmed Mahboob Musabih, Director of Dubai Customs, the Virtual Corridor is a major catalyst in the implementation of trade and economic objectives of Dubai Plan 2021. “The pilot phase statistics of the Virtual Corridor point out to the uniqueness of this initiative and the seamlessness it brings to cargo movement,” emphasized Ahmed Mahboob. “More than 12,000 transfers of cargo, weighing over 64,000 tonnes have been processed since September 2014. Subsequently, deposit-related financial burdens have been considerably minimised by some US $32,7,” he observed. Musabih also expressed his appreciation for all stakeholders, agencies and entities that contributed to the success of this initiative
HE AHMED MAHBOOB MUSABIH • More than 21 years of proven experience in Customs work • Served Dubai Customs since 1994, where he gradually advanced through different managerial and leadership positions. • Successfully led the implementation of high-profile corporate projects, such as GCC Customs Union rules and regulations, ATA Carnet system, IATA e-Freight initiative, Cargo Reconciliation and e-Inspection projects. • Member of more than twenty local, regional and international task forces and committees, including the GCC Customs Union Technical Committee. • Holder of a Bachelor’s Degree in Sociology from the United Arab Emirates University, Al Ain. Considered as one of the most influential young public figures in Dubai and the UAE. • Was appointed as Director of Dubai Customs by virtue of a decree issued by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE & Ruler of Dubai on 11 March 2014.
including the Department of Economic Development, DP World, Dubai World Central (DWC), Economic Zones World (EZW), Dubai Airports, Dubai Airport Free Zone Authority (DAFZA), and Dubai Trade. Ahmed Mahboob also acknowledged the contribution of the joint project team as well as the companies that partnered with Dubai Customs in the execution of the project’s pilot phase, namely Dubai Express, Aramex, Weiss-Rohlig UAE, DB Schenker, Expeditors International, Gulf Agency, Transguard, Airlink Intl, Logistics News ME | June 2015 | 19
COVER STORY
Agility Logistics, Arabital Shipping, Danzas AEI Emirates, Brinks Global Services, Gava Forwarding, Inchcape Shipping Service Dubai, and Modern Freight. Logistics News Middle East conducted an exclusive interview with HE Ahmed Mahboob Musabih, Director of Dubai Customs following the official announcement and initiation of the Virtual Freight & Logistics Corridor. Dubai Customs (DC) in tandem with Department of Economic Department in Dubai (DED) recently formally unveiled the ‘Virtual Freight & Logistics Corridor’ (VFLC) amid much fanfare. Can you briefly explain what this important initiative and its implications for the freight & logistics business in Dubai? The Virtual Freight & Logistics Corridor (VFLC) provides innovative customs facilitations further reinforcing the advantages offered by Dubai to ease the flow of trade and investment, specifically through the streamlining of goods movement between different customs posts in the emirate. Following an integrated study of the current status and needs of the fright and logistics sector, Dubai Customs collaborated with the Department of Economic Development to developed the Virtual Corridor initiative, which is a unique and first-of-its-kind automatized customs procedure designed to facilitate the transportation of goods under a cargo transfer request from one Customs centre to another within Dubai and by Dubai’s roads only, connecting the point of access from the outer world and the point of destination in Dubai; before the goods are cleared for final release. This procedure offers clients hassle-free customs clearance available 24/7, making the whole process of cargo transfer more streamlined, time-saving and cost-efficient with no financial burdens. Is VFLC applicable only to transfer and trans-shipment consignments? The current implementation of VFLC facilitates the movement of consolidated cargo from the port of its landing to another customs location where the client holds the warehouses for deconsolidation. This was not possible earlier and the cargo had to be deconsolidated 20 | Logistics News ME | June 2015
DUBAI’S VIRT LOGISTICS
COVER STORY
in the port of its landing. The cargo thus moved can include cargo for local consumption or cargo for transit & trans-shipment. How does the VFLC connect the logistics hubs—airports, seaports, free zones and other Dubai trade entities (DC, DED, Dubai Trade, EZW) on a single platform? Please briefly explain the mechanics of its functioning? By the implementation of VFLC the agent can move their cargo by a simple transfer request through Dubai Trade platform, which is automatically approved without any manual intervention; and the earlier barriers of moving the cargo between air and sea locations have been eliminated. Moreover, the agents who have warehousing facilities in the free zone can now use such facilities for consolidation / deconsolidation operations with the approval from the free zone authority and customs, without having to hire or build separate facilities for the deconsolidation operations.
“It is a n ing initiativ enious custo ms e in th e Year Innova This VFLC move has already been implemented since of September 2014. To date, how have logistics companies innova tion to deliv er tiv benefited from the streamlining of the procedures & giving e trade solut systems? ion ne The Virtual Corridor, being an efficient, connective and sector, w impetus t s, simple process, has been very beneficial to the entire o the ” Sulta n Ah logistics sector of Dubai. This is a cost-effective solution Sulaye that has been widely appreciated by many of our partners m, Cha med Bin Ports, and clients, because it significantly simplifies Customs Custom irman of processes and procedures and helps customers achieve huge s an Zone C savings in time and money. orpora d Free tion an Chairm d an of D P Worl d. DUBAI CUSTOMS BAGS FROST & SULLIVAN’S EA
TUAL FREIGHT CORRIDOR
AWARD 2015
Dubai Customs has earned the coveted Enterprise Architecture Award 2015, presented by Frost & Sullivan; a world leader in growth consulting and the integrated areas of technology research, market research, mega trends, economic research, customer research, competitive intelligence, and corporate strategy. The award was presented to Dubai Customs to recognise its Business Capability Management, developed by the Business Process and Enterprise Architecture at the Customs Development Division to upgrade corporate capability at Dubai Customs. HE Ahmed Mahboob Musabih, Director of Dubai Customs, expressed his contentment of this remarkable addition to Dubai Customs’ credit of awards and recognitions in various fields and on a global scale. “Dubai Customs is moving forward on the quest towards excellence and innovation with services that make clients and employees happy,” Musabih stressed. Logistics News ME | June 2015 | 21
COVER STORY
The VFLC has started making a tangible difference to the clients experience, and I believe it’s going to make more freight forwarders and shipping companies happy to do business in Dubai. As for the impact of this initiative, statistics indicate that more than 12,000 cargo movements, with a total weight of over 64,000 tons, have been made since the launch of the pilot phase in September 2014. Furthermore, deposit-related financial burdens have been considerably minimized by some AED 120 million (US $32.7 million). Several companies that partnered with Dubai Customs in the execution of the project’s pilot phase were recognized in a recent ceremony. What was the criteria and what was their contribution to the success for this initiative? The success of the Virtual Corridor initiative owes much to Dubai Customs’ clients who partnered with us in the execution of the venture’s pilot phase, due to their active engagement and effective utilization of the facilities provided by the new procedure. In fact, we were extremely satisfied to receive our clients’ positive feedback
that the VFLC helped them improve their business performance and operational efficiency. With regards to the criteria that we adopted in selecting companies to join us in this project, there are basically three criteria: (1) Business volume, (2) Compliance level, and (3) Companies with facilities in more than one location. What do you foresee as the role of Dubai Customs in meeting the trade & economic objectives of Dubai Plan 2021? Dubai Customs is already actively involved in the implementation of Dubai Plan 2021. We have aligned our strategic plans to meet the goals of the Dubai Plan, especially its trade and economic objectives. Our major focus for the next phase is driving Dubai Customs to have a greater contribution in realizing the emirate’s ambition to be ‘A Pivotal Hub in the Global Economy’. In line with the Plan’s economic theme, Dubai Customs will continue on its mission to protect the society and sustain economic
TESTIMONIALS “Freight Works was invited by Dubai Customs to participate in the pilot project for the virtual corridor. This is a facility that will help us and all the freight forwarders in the industry to transfer cargo from DWC to FG5 [Dubai Airport Free Zone) to our own facilities at Cargo Village. Furthermore, it will create cost savings for ourselves and for our customers, as we do not have to do de-consolidation at DWC and FG5.” Steen Hartwig, Managing Director, Freight Works “Being in secure transportation business, the major factor for us and our clients is the time. Utilizing the virtual corridor allowed us to transfer cargo from the airport terminal to our facility to de-consolidate with a minimal amount of information to be uploaded online, with instant approval. I think this is a solution that all of us need to save time and cost and make clients happy to do business.” Mohammed Ayyob, General Manager, Brinks Global Services 22 | Logistics News ME | June 2015
COVER STORY
development through compliance and facilitation, as we aim to further reinforce Dubai’s growing foreign trade and enhance its role as a key driver for Dubai’s diversified and sustainable economic growth. This is being done by constantly seeking to offer superior customs facilitations and services to traders and investors to leverage the emirate’s stature as the most business-friendly environment and a preferred investment destination, while at the same time ensuring the community’s health and economic security through effective border inspections and trade controls.
“The Virtual Corridor is a major catalyst in the implementation of trade and economic objectives of Dubai Plan 2021,” —Ahmed Mahboob Musabih, Director, Dubai Customs.
VIRTUAL CORRIDOR IN BRIEF Major Benefits: • Facilitates cargo transfer and traffic • Enables fast transfer of goods from a Customs post to another in Dubai • Reduces the financial cost to the customer • Enhances the competitiveness of the emirate of Dubai and maintains its leadership • Attracts more traders and investments to Dubai • Contributes to uphold and improve the reputation of Dubai regionally and globally • Promotes strong and sustainable economic rebound performance The Impact: • Pilot Phase (26th August 2014 to 25th April 2015) witnessed participation of 15 companies
Logistics News ME | June 2015 | 23
AUTOMATION
ROCKWELL AUTOMATION HIGHLIGHTS PLANTPAX AT ISA
The company displayed world-class distributed control system (DCS) combined with plant-wide control technologies and unmatched scalability of Rockwell Automation Integrated Architecture
T
he 3rd Industry Standard Architecture (ISA) Automation Conference & Exhibition 2015 dedicated for process automation in the Middle East successfully concluded recently at the St. Regis Hotel in Abu Dhabi with Rockwell Automation as the Diamond Sponsor. Participants from key industries engaged with automation and control professionals, manufacturers and business leaders to discuss the latest technologies, solutions and products available in the market. In addition to this, regional and international experts and decision makers have imparted their vision and solutions to the challenges of measurement and control in complex industrial environments. At the event, Rockwell Automation highlighted its technical and automation capabilities within their 45 square meter show floor through their single integrated plant-wide solution - PlantPAx. Rockwell Automation PlantPAx represents a new generation of integrated, scalable solutions for large • The world’s largest company dedicated to industrial automation and information control, safety and power systems • Headquartered in Milwaukee, Wisconsin, USA, the company employs about 22,500 people serving solutions that exceed control and safety customers in more than 80 countries functionality typically found today. Also on display was the innovative monitoring and control solutions for wellhead and upstream applications from vMonitor, a Rockwell Automation company and a global technology leader for wireless solutions in the oil and gas industry. These solutions combined with the comprehensive range of integrated information, control, power, and safety solutions and services Rockwell Automation already provides the entire supply chain results in true end to end integration throughout the enterprise. At the conference, subject matter experts from Rockwell Automation Europe and Middle East presented four technical papers on Advanced Process Control and Optimisation, Industrial Control System Cyber Security, Digital Oil Fields, Wireless & Industrial Communications and Integrated Operation.
A PlantPAx solution integrates process, power, safety and critical control in a single unified platform and offers unprecedented levels of control, and flexibility via: • System tools that enable configuration in a common environment • A single, integrated database and common tag structure to simplify engineering; and • A library of reusable control objects to shorten project development time
24 | Logistics News ME | June 2015
TACTICAL CHEMICALS LOGISTICS MANAGEMENT
MID-TERM LOGISTICS IS THE MISSING LINK
A report by A. T. Kearney In the chemicals industry, tactical logistics management poses an opportunity for competitive advantage. It can save an average-size chemicals company up to $73 million annually through increased efficiencies and responsiveness; for the whole chemicals industry, the savings could surpass $9 billion. INDUSTRY TRENDS REVEAL GAPS The chemicals industry is in tremendous flux. The bottom line here is that planning for responsive, flexible logistics capacity, securing access, and optimizing usage become key success factors for chemical companies going forward.
SEVERAL FACTORS ARE PRESSURING CHEMICAL COMPANIES› SUPPLY CHAINS: The industry and its chemical flow patterns are more complex. Buyers of chemical products wait longer to place orders. Their own supply chains are stretched, so just-in-time ordering helps them minimize commitments and inventory. Booming growth in wild card regions causes swings in supply and demand. Taking the total chemicals market into account, the share of smaller-unit specialty products, as opposed to standard bulk products, that flow through the system has grown as end-market applications become more specialized and diverse. Capacity is challenged. While new capacity additions have intensified competition, concurrent restrictions and bottlenecks are making it hard to send product from A to B to C. Increasing regulations, such as limitations on driving hours, support safety but also constrain capacity. Hazardous materials, or those that need to be heated or cooled, add to the difficulty of finding appropriate transportation. Something as commonplace, yet onerous, as growing traffic congestion worldwide hurts as well.Prices and availability of logistics services grow more volatile. As daily or weekly conditions fluctuate, available capacity swings and becomes difficult to predict and expensive to procure at the last minute.
Tactical logistics management, as the layer between strategic, long-term design and short-term operations, fills a gap to respond to market trends.
LONG-TERM SUPPLY CHAIN DESIGN OFTEN INCLUDES: A time horizon of three or more years for major strategic decisions, such as the size, capability, and location of warehouses, distribution centers, and filling lines, and plans for using in-house or logistics service providers› (LSPs) assets A time horizon of one year or more for procurement of logistics capacity, such as tenders for major lanes and the definition of preferred lanes and routes within the network (some companies determine these on an as-needed basis)
OPTIMIZING NETWORKS WITH ONEOFF, STATUS-QUO NETWORK ANALYSES SHORT-TERM LOGISTICS EXECUTION OFTEN INCLUDES: Shared service centers, which are established using economies of scale to process shipment orders that apply harmonized processes and systems Daily operations supported by transport management systems that offer optimization functionality for shipment consolidation Outsourcing partners to handle administrative logistics services to achieve scale and complement internal logistics expertise. Partners may provide capabilities for lesser known regions or specific processes, such as customs optimization, for example
THE BUILDING BLOCKS OF TACTICAL LOGISTICS MANAGEMENT MID-TERM PLANNING ADDRESSES THREE AREAS: 1. CAPACITY PLANNING. This essential block accounts for the growing volatility and short supply of services during seasonally critical periods, such as Christmas. To smoothen demand and supply fluctuations, strengthening the accuracy of forecasts and improving the flow of capacity-relevant information are key. As the mid- and short terms approach, logistics managers reach out to their shippers, which confirm or adjust production and warehouse plans to match actual shipping volumes and timing. Shippers and carriers work directly with one another as well. When shippers and carriers are well connected, it becomes markedly easier for them to share requirements and reallocate committed capacity for new lanes and volumes to accommodate last-minute customer changes.
2. OPTIMIZATION. Once planning is underway, optimizing it is the next step. Proportions assigned to different carrier segments can be adjusted regularly to better respond to volatility and improve capacity utilization. For example, the U.S. head of logistics for a global chemical company told us that his firm analyzes its transportation needs quarterly and adjusts among lower-priced fixed capacity, mediumpriced flexible capacity, and market-priced
Logistics News ME | June 2015 | 25
TACTICAL CHEMICALS LOGISTICS MANAGEMENT
Without logistics demand information and the proactive updates that such an interface can provide, companies often gain valuable insights only after the fact. Without someone responsible for tactical logistics management, opportunities and solutions to pain points go unrecognized.
broker spot capacity where needed.
3. MONITORING. Capacity markets do not tend to be regularly and systematically monitored, which leads to reactive logistics decisions. Actively evaluating capacity can help chemical companies› logistics and supply-chain managers identify market developments as they appear and proactively take action. Monitoring brings other benefits, too. It can reveal actual utilization of fixedcapacity assets, such as internal and external warehouses and rail-tank cars, capacity available through frame contracts, and usage of full truckload (FTL) rates. Putting these blocks in place can lead to notable improvements in delivery reliability. According to A.T. Kearney›s most recent Chemical Customer Connectivity Index (C3X), while chemical customers seem to have accepted market realities around product availability and pricing, they have consistently ranked delivery reliability as their most important buying criteria over the years
STRONG TACTICAL PRACTICES IN ACTION Here are three examples of effective, mid-term logistics practiced by chemical companies today. Differentiated capacity pricing. A global chemical company regularly analyzes the structure of its transportation needs and balances its use of fixed, flexible, and spot capacity based on price. The firm monitors and tenders demand variability develop¬ments, adjusting proportions among different carrier segments on a quarterly basis. Pooling external storage. A global chemical company has centralized its European external storage to gain better visibility into the capacity used by different businesses. Its shared-service
26 | Logistics News ME | June 2015
center coordinates business-unit requests for extra storage and assigns it to external warehouses, thus ensuring available capacity and favorable cost synergies. Market information database for shipping. One major chemical company established a global database for ocean transport that is fully integrated into its ERP system and is managed by a group within the central logistics department. It is a service to the company›s businesses for finding the best fit for loading dates, pre-carriages, or ocean sailings according to customers› requested delivery dates. The database has helped to increase the fulfillment of yearly committed capacity contracts. So why haven›t more chemical companies incorporated tactical logistics into their operations or achieved a company-wide holistic approach? The answer is, it isn›t easy. Logistics is often decentralized, for one thing, with responsibilities set up by business units, regions, and modes. Transportation logistics is handled separately in Europe and the United States, for example, and further parties oversee surface, sea, and air, with specialized responsibilities divided among other areas, such as road versus rail, and bulk versus packaged goods. These different silos make a holistic approach difficult. These companies revealed that they face barriers to tactical logistics optimization in three critical areas:
1. ORGANIZATIONAL ALIGNMENT. Probably the biggest barrier, chemical companies lack a strong interface between their logistics staff and the logistics procurement department. Without logistics demand information and the proactive updates that such an interface can provide, companies often gain valuable insights only after the fact. Without someone responsible for tactical logistics
management, opportunities and solutions to pain points go unrecognized.
2. DATA AVAILABILITY. Many shippers concede that transparency into assets is not at the same level for logistics as it is for production. They lack a database to reveal real-time information about warehouse capabilities, current utilization levels and cost.
3. SUPPORT FOR OUTSOURCING EXCELLENCE. Reliable demand information is hard to obtain in the tight timeframes of today›s dynamic chemicals markets. Instead, for one- to threeyear tenders, companies just have historic data to share. Yet, LSPs require more timely information for their price calculations. To ease this situation, shippers could provide them with regularly updated outlooks on expected capacity requirements for a given tactical horizon. The growing tendency of chemical companies to outsource transactionalpurchasing and logistics activities, such as tendering and transport management, to fourth-party logistics providers (4PLs) often widens the gap between business units and procurement. LSPs have found that the quality of tender information deteriorates as a result. Historically, logistics has been viewed as a cost center. Compared to other levers that drive company performance in the chemicals industry, such as raw materials, energy, and regulation, logistics receives less attention and limited resources. In turn, these resources are pushed to their limits and logistics staff into firefighting mode to ensure timely deliveries. All hands go to operative logistics to resolve issues that arise because tactical planning is not in place.
NEW SUEZ CANAL
NEW SUEZ CANAL TO OPEN IN AUGUST 2015 The enlarged canal will allow ships to sail in both directions at the same time over much of the canal’s length. This is expected to decrease waiting hours from 11 to 3 hours for most ships and to double the capacity of the Suez Canal from 49 to 97 ships a day.
T
he Suez Canal Authority (SCA) has begun the countdown to the opening of the New Suez Canal, billed as the ‘symbol of the new Egypt’ on 6 August 2015 by Egyptian President Abdel Fattah El-Sisi. “The New Suez Canal is more than just a new waterway and an astonishing feat of engineering. It is a catalyst for the Egyptian people which will unleash a renewed sense of pride and a more prosperous future,» asserted Admiral Mohab Mameesh, Chairman and Managing Director of the Suez Canal Authority. “The project is more than 80% complete and climbing, with more than 210 million tons of sand excavated,” noted Adm. Mameesh. The new, 72-kilometre canal, an engineering marvel was constructed in just 12 months. When fully completed it will involve 35 km of dry digging, and 37 km of ‘expansion and deep digging’, whereas the whole canal is 164 km long. The new works will increase trade alongside the canal and its implications will reverberate not only in Egypt but also in the region and across the world. The enlarged canal will allow ships to sail in both directions at the same time over much of the canal›s length. This is expected to decrease waiting hours from 11 to 3 hours for most ships and to double the capacity of the Suez Canal from 49 to 97 ships a day. The official inauguration will take place at an extravagant gala event to be held on the banks of the New Suez Canal on 6 August. On this historic day, Egyptian President Abdel Fattah El-Sisi will be joined by world leaders to witness the first time traffic has flowed simultaneously north and south through the
“The New Suez Canal is more than just a new waterway and an astonishing feat of engineering. It is a catalyst for the Egyptian people which will unleash a renewed sense of pride and a more prosperous future,
area along the canal known as the Suez Canal Zone. The zone will see the creation of a huge industrial area catering to a broad range of sectors including manufacturing, logistics, ship repair, and more. With the Suez Canal positioned as a vital component of world trade, the Suez Canal Zone will provide access to 1.6 billion customers worldwide. The project will provide Egypt with investment and employment opportunities for years to come.
Red Sea – Mediterranean crossing. The huge engineering project began with a national subscription to raise the necessary funds. In just six days, the Egyptian people raised around US $8.5 billion and work began on 6 August 2014. Despite initial estimates indicating the project would take three years, the project is well on course to be completed in less than 12 months. The Suez Canal has been at the heart of Egypt’s economy for more than 150 years. The project to build a new 72km waterway will enable two-way traffic and double the current daily ship capacity. As a result, the canal authority is set to increase its annual revenue from US $5.3 billion in 2015 to US $13.2 billion in 2023, as well as underscore the canal’s position as a major maritime trade route against a backdrop of growing competition. The New Suez Canal is at the heart of a vision to construct a fully developed industrial
Logistics News ME | June 2015 | 27
ADPC
New entrant for Khalifa Port’s trade and logistics zone New AED 20 Million facility will pack and transport dry bulk products for petrochemical and mineral manufacturers
A
bu Dhabi Ports recently celebrated the groundbreaking of Schmidt ME Logistics new facility in Khalifa Port’s industrial, trade and logistics zone (Kizad). The ceremony officiated by Dr. Wolfgang Hoppmann, CEO of Schmidt ME Logistics along with senior representatives from both companies took place on 27 May, 2015. Schmidt ME Logistics specialises in the packaging, product handling and intermodal transportation of dry bulk products in addition to providing value added services to include patent technologies exclusive to Schmidt Logistics. Schmidt ME Logistics will cater to the dry petrochemical and mineral industries across the region and internationally. The company is a pioneer in providing state-of-the-art value added services catering to the rapid growth in chemical manufacturing throughout the Middle East, Asia and other emerging regions. Such growth has created a need for asset-based logistics investment, coupled with local expertise and a global supply chain network capability. The new dry bulk logistics centre which is the company’s second branch in the UAE, will cover 21,000 square metres and represents a capital investment of US $5.45 million. The construction will be conducted in two phases. The first phase will include 2,000 square metres of warehousing which will be used to store dry material and to provide a range of product handling services. The second phase will include the construction of additional silos, truck parking facilities and full road transport services. The finished site will include quality management services, cleaning services, a repair shop and a service station. Schmidt ME Logistics will provide transport services for dry bulk products, will pack dry bulk goods into maritime containers, and will manage overseas long haul and short sea transport to end user locations. The company will also offer warehousing, silo bunker storage, container storage and palletised warehousing, bagging and de-bagging services. Mohamed Juma Al Shamisi, CEO Abu Dhabi 28 | Logistics News ME | June 2015
Ports commented: “Today, Schmidt ME Logistics is one step closer to securing the business advantages that benefit investors locating in Khalifa Port’s trade and logistics zone.” “Logistics connectivity and greater trade facilitation are, in essence, tools to further increase the nation’s prosperity. The supply chain connections available through Khalifa Port and the exceptional transport infrastructure allow investors to receive materials and reach customers and markets quickly, easily and cost effectively securing the competitive advantage. Kizad now has more than 70 investors who benefit from its outstanding access to markets, and at least ten of them will be fully operational by the end of
this year,” he added. Dr. Wolfgang Hoppmann, CEO of Schmidt ME Logistics stated: “The proximity to Khalifa Port and the supply chain connections readily available will increase the speed in which we deliver our services, expand our reach and ease the complexity that is usually faced with distribution networks allowing us to continue providing quality services as well as delivering on-time and safe transportation as well as cost effective strategic logistics solutions.” Presently, the company’s primary export destinations are Saudi Arabia and Oman and customers include W.R. Grace & Co, Borouge, chemical company BASF and Grand Mills Abu Dhabi.
“Today, Schmidt ME Logistics is one step closer to securing the business advantages that benefit investors locating in Khalifa Port’s trade and logistics zone.”
PROMOTING CALABRIA
CALIBRATING CALABRIA With its well-developed and sophisticated logistics infrastructure, the Southwestern Italian region of Calabria is pulling all stops to promote its products and services to the GCC and the wider Middle East— North Africa region.
T
he 15,000 sq. km. Italian region of Calabria, one of the 20 administrative divisions of the country in southwest Italy, occupies the toe of the country’s boot-shaped peninsula. Lapped by the crystal blue Ionian and Tyrrhenian Seas, it comprises of four provinces—the capital Catanzaro, Cosenza, Crotone and Reggio di Calabria. In a bid to shore up investment and to forge new business relationships with the UAE, a high-power delegation from the Trade & Commerce Promotion Office from Calabria recently visited and hosted a press conference in Dubai under the auspices of the Italian Industry & Commerce Office in the UAE. The road show ‘Promoting Calabria in the UAE’ was attended and addressed by Giovanni Favilli, the Consul General of Italy in Dubai; Paola Aloe, Director of the International Department at Region Calabria and Silvia Tropea, Trade Officer at SPRINT Calabria. The Road Show was intended to promote and facilitate new business relations between the UAE and the Calabria Region by promoting investments partnerships in the region and focusing on the internationalisation of the Calabrian companies and exports to the UAE and the wider GCC and the Middle East. Agricultural goods, energy (oil & gas), consumer goods (household) and jewellery were identified as potential Calabrian products for exports to the Middle East. Seminars, B2B meetings, buyer-seller symposia and related conferences and seminars were held between
the visiting Calabrian delegation and prospective buyers and investors. Speaking exclusively to Logistics News Middle East, Silvia Tropea noted that the region had a well-developed logistics and transportation infrastructure suited for exports with three airports; six ports including the Gioia Tauro Hub—the most important trans-shipment Italian port; the second biggest in the Mediterranean Sea and among the 20 major container ports in the world. “The Calabrian region has a lot to offer the Middle East & the world,” asserted Tropea. “Calabria is famous for a wide range of agricultural products—fruits such as citrus,
The Italian presence in the UAE, one of the most lively and dynamic economic economies of the region, is composed of more than 300 firms with their own branches, subsidiaries and numerous enterprises that operate via local agents,”
strawberries, apples, figs, oranges, chestnuts; olive oil, meat and honey. In addition there is tremendous scope for bilateral trade in the jewellery, energy and home-furniture and consumer goods sectors,” she added. Giovanni Favilli, the Consul General of Italy in Dubai affirmed that the UAE, outside of the European Union (EU), was currently Italy’s 9th largest trade partner and the biggest in the MENA region. “The Italian presence in the UAE, one of the most lively and dynamic economic economies of the region, is composed of more than 300 firms with their own branches, subsidiaries and numerous enterprises that operate via local agents. The potential for Italian production and services in the UAE markets is tremendous. During the last 35 years, the growth of trade relations between Italy and UAE has been phenomenal and we hope to play an increased role in further promoting trade & commerce between the two countries,” assured Favilli. Currently Italian exports to the UAE comprise the following sectors: machinery, equipment and tools; jewellery; metal and metal products. Furthermore, IT and electronics (+41.3%), food and agricultural industry (+39.5% compared with 2011) have witnessed a positive performance over the years. Over the last 26 years, the importance of the ‘Made in Italy’ brand in the UAE and the Middle East has grown dramatically. Industry data indicates that Italian exports to the UAE continues to surge.
Logistics News ME | June 2015 | 29
U A E M I N I ST RY O F EC O N O M Y, U N I D O S U M M I T
I
THE FIRST GLOBAL MANUFACTURING & INDUSTRIALIZATION SUMMIT TO BE STAGED IN THE UAE
n a major boost to the country’s profile, the UAE will host the world’s first Global Manufacturing and Industrialisation Summit (GMIS) in 2016. The biennial forum will bring together representatives from global governments, industries, civil society, students and academia to shape the future of manufacturing. Hosted by the UAE’s Ministry of Economy with the United Nations Industrial Development Organization (UNIDO) and in collaboration with the World Economic Forum’s (WEF) Global Agenda Council for the Future of Manufacturing, the two-day Summit, in the second half of 2016, will focus on innovation, infrastructure, capital, markets, value chains, policy, society, environment and skills. The Summit will debut in Abu Dhabi next year and will return to the UAE capital in 2018 with the emirate hosting every second edition thereafter. The inaugural Summit is expected to attract more than 1,000 government and industry attendees, plus representatives of civil society and more than 300 UAE and Gulf industrial stakeholders, students and academia representatives. The high-level, first-of-its-kind initiative will be chaired by UNIDO’s Director General Li Yong and the UAE Minister of Economy, HE Sultan Bin Saeed Al Mansoori. “This will be a global gathering of minds comprising public and private sector leaders and key representatives of civil society,” affirmed HE Sultan Al Mansoori. “They will shape a vision for the future of manufacturing and industrialization. Historically and until today, manufacturing is an engine for economic growth, driving skills development, innovation and technology across all sectors,” he added. Minister Al Mansoori observed that never before had manufacturing been the focus of 30 | Logistics News ME | June 2015
The unique 2016 UAE Ministry of Economy / United Nations Industrial Development Organization (UNIDO) summit for public and private sectors to facilitate global debate and vision setting for future of manufacturing, and address key challenges and solutions for evolving the global & sustainable manufacturing landscape.
“This will be a global gathering of minds comprising public and private sector leaders and key representatives of civil society. They will shape a vision for the future of manufacturing and industrialization,”—HE Sultan Saeed Al Mansoori, UAE Minister of Economy such a meeting of minds that would enable all participants to share best practices and experiences from all over the world, facilitate knowledge transfer from leading international experts, along with the exclusive opportunity to strengthen business networks that could, eventually, stimulate foreign direct investment
and economic activity in countries represented. He noted the hosting of the Summit in Abu Dhabi is testament to the UAE’s growing role in developing a global, knowledge-based economy that values human capital development and innovation. The UAE›s Vision 2021 National Agenda focuses on creating national policies that achieve sustainable growth. Manufacturing and the knowledge-based and innovative industrial sector currently account for around 11% of total UAE GDP, with the aim of growing this to 20% in 2020, and 25% in 2025. The Minister added that in deciding to partner the UAE in co-organising the Summit and shaping the future of manufacturing, UNIDO had “come to the right place, at the right time.” UNIDO focuses on creating shared prosperity for all through promoting manufacturing activities while safeguarding the environment. The organisation is recognised as a specialised, efficient provider of key policy advisory and technical cooperation services, meeting the interlinked challenges of reducing poverty through productive activities, integrating developing countries in global trade through capacity-building, fostering environmental sustainability in industry, and improving access to clean energy. Li Yong said the Summit would be a catalyst for meeting these goals in line with manufacturing’s proven historic record as a crucially important source of national and international development which is still relevant today. “Manufacturing industries and their related services sectors can absorb large numbers of workers, provide them with stable jobs and increase the prosperity of their families and communities. How much impact industry has on general economic development and on environmental sustainability is ultimately defined
U A E M I N I ST RY O F EC O N O M Y, U N I D O S U M M I T
by the pattern of industrialisation that a country chooses to follow. A long-term strategy can put in place a framework of stable, economic, legal and political conditions. It can also create incentives to invest in the necessary education and infrastructure, to produce quality, agribusiness solutions, innovation and entrepreneurial skills,” he said as he addressed delegates and the media at a specially convened press conference at a hotel in Abu Dhabi’s Al Maryah Island. The Director General said the challenge of promoting industrialisation which is beneficial for all, cannot be defined only in terms of higher levels of economic growth or value-added manufacturing. “It will require a new vision of manufacturing that encompasses skills, employment and innovation and envisages the creation of a robust manufacturing eco-system that supports and benefits all stakeholders in society. No one can be left behind in benefiting from industrial growth and prosperity is shared among women and men in all countries.” Li Yong added that as a response to these challenges, UNIDO is promoting inclusive and sustainable industrial development globally to harness the full potential of industry’s contribution to achieving sustainable
development and lasting prosperity. Minister Al Mansoori was upbeat and said GMIS will bring numerous benefits to the UAE. “It will facilitate knowledge transfer from leading international experts, bring potential partners to the UAE to encourage investment and increase inflow of foreign direct investment, and help develop local SMEs by exposing them to international best practices and capital sources. It will clearly position the country as a future
manufacturing hub. At the same time, it will enable us to yet again demonstrate our ability to host major world-class initiatives and play an enabling partnership support role,” he stressed. By identifying and encouraging the adoption of international best practice in sustainable industrial development, the Summit is expected to spur greater investment in manufacturing, drive innovation and promote skills development worldwide.
Logistics News ME | June 2015 | 31
NEW ADT FACILITY
ADT OPENS POLYMER PACKING FACILITY AT KHALIFA PORT
The state-of-the-art packing facility, with an annual production capacity of 700,000 metric tonnes, was designed and constructed by ADT to provide Borouge, a leading provider of innovative, value creating plastics solutions, more flexibility in their supply chain network.
Abu Dhabi Terminals (ADT), manager and operator of Khalifa Port Container Terminal (KPCT), celebrated the opening of a polymer packing facility which is centrally located inside the container terminal. The state-of-the-art packing facility, with an annual production capacity of 700,000 metric tonnes, was designed and constructed by ADT to provide Borouge, a leading provider of innovative, value creating plastics solutions, more flexibility in their supply chain network. Part of the celebration included the recognition of the construction team consisting of Schmidt ME Logistics as design consultant, Tebodin as project manager, Züblin as main civil contractor for the facility development, HPPT as the equipment supplier and Agility as the operator for the packing plant. Building a packing facility inside the container terminal is part of the ADT’s value-added services to reduce supply chain costs by providing port-centric solutions in the form of integrated container handling, 2.5 million sq. ft. of warehousing and high-end packaging solutions. Reflecting on the opening, Martijn van de Linde, CEO of Abu Dhabi Terminal, explained, “We understand the increasing need for faster product delivery and bringing our customers closer to the markets they serve. Khalifa Port Container Terminal ships directly to more than 50 international destinations and is ideally located next to 32 | Logistics News ME | June 2015
Kizad (Khalifa Industrial Zone Abu Dhabi), 75 kilometres from Mussafah and just 45 kilometres from Jebel Ali.” “The investment in the new packing facility is testament to our commitment to add value to our customers by significantly improving the efficiency and speed of the supply chain.” He concluded. Abu Dhabi Terminals’ (ADT) core business is to manage and operate Khalifa Port Container Terminal (KPCT) for which it secured the exclusive rights in 2012 by signing a 30-year concession. With its state-of-the art infrastructure, outstanding productivity levels and innovative approach, KPCT is the region’s first semiautomated port and one of the most technologically advanced and fastest growing container terminals in the world. Since the official inauguration on 12/12/12, KPCT has grown to support the local market with around 20 weekly container line services to more than 50 international destinations, offering the ideal hub location for connecting local trade with a wide global logistics network. ADT’s diversification of supply chain services offers a full suite of logistics solutions to benefit trade partners and shipping lines. The port operator, which is jointly owned by Abu Dhabi Ports, Mubadala and Mubadala Infrastructure Partners, garnered a number of achievements in 2014 and its more than 20% year-on-year growth over the past five years can be attributed to its professional team and the strong relationships with the shipping industry and trade community.
GWC ROUNDUP
GWC GETS CERTIFICATION FOR RECORDS MANAGEMENT SOLUTIONS The first records management service provider in Qatar to acquire the coveted ISO 27001:2013 standard for its Information Security Management Systems (IRMS), it stands as a testament to GWC’s commitment to continuous improvement across all aspects of its service whether it is physical storage or digitization and scanning of documents or asset management, it exceeds the expectations of the clients at all times,” commented Sunil Kambrath, Director Records Management Services. GWC Records has been operational for the past 8 years, acquiring over 100 clients and entrusted with almost 1.5 billion documents for physical storage, with over 7 billion pages digitized (scanned) and over 700,000 assets managed up to date, which has resulted in a perfect retention record, without a single client-drop since its establishment. The company has offered its records and asset management services to industry verticals such like financial, oil & gas, healthcare, and project management sectors. “As an integral element of GWC’s QHSE policy, we are committed to provide the best guidelines, standards and the coordination of all the operations of our organization,” remarked GWC Chief Commercial Officer Naji Nassar.
GWC TO INCREASE ITS CAPITAL THROUGH A NEW RIGHTS ISSUE
I
n a first for Gulf Warehousing Company, the firm was recently awarded the ISO 27001:2013 for information security management systems (ISMS) after a thorough audit of its Record Management Services (RMS) department by Lloyd’s Register Quality Assurance. This most recent ISO certificate is a testament to GWC’s high standard of security and guaranteed customer confidentiality during the provision of physical and electronic, archiving, retrieval, and disposal of documents. The first records management service provider in Qatar to acquire this standard, it stands as a testament to GWC’s commitment to continuous improvement across all aspects of its service, as well as the Company’s ability to forecast the needs and requirements of its clientele. The certificate is among the most difficult to acquire, necessitating strict review of practices, facilities, and equipment, with audits performed periodically to assure sustained quality. “A company’s records are its most valuable assets, helping business operations by aiding decision making, enabling compliance, and improving efficiency,” explained Ranjeev Menon, Group CEO of Gulf Warehousing Company. GWC Records Management Services provides turnkey records and information management solutions, right from collection of documents from clients’ premises up to secured destruction, covering all its life cycle. “GWC’s service offerings are always best of the breed,
Gulf Warehousing Company announced that the Corporate Supervision Department of the Ministry of Economy and Commerce has approved the GWC Board’s proposal to increase the company’s capital by 25%, which is equivalent to 11,890,244 shares, at a nominal value of QAR (10) per share, and an issuing premium of QAR (28.50) per share (therefore amounting to a total of QAR 38.50 per share). The rights issue announcement follows a succession of strong achievements and milestones for GWC in 2015. The company saw a strong 40% increase in net profits in the first quarter, achieving QAR 40 million, in addition to total revenues peaking at QAR 196 million during this period for a remarkable 28% increase from the previous year. GWC Sports meanwhile participated in one of the major sporting events of the quarter, delivering the logistical requirements for the 24th Men’s Handball World Championship - Qatar 2015. Additionally, the company announced that it will perform equestrian logistics projects in the State of Qatar, and this service was essential during the company’s execution of logistics support during the transport of 128 horses for the Al Shaqab international event. GWC also enhanced its fine arts operations with two new trucks specifically designed for the fine art movements in accordance with the highest European standards. Most recently, the company has announced that it was the Authorized Service Contractor (ASC) for UPS in Qatar, providing a range of services under its name. Logistics News ME | June 2015 | 33
DHL EXPRESS EXPANSION IN KSA
DHL EXPRESS
OPENS LARGEST LOGISTICS CENTRE IN RIYADH
The US $20.2 million state- Arabia is a key revenue and service driver for HL recently opened the doors to its the region.” of-the-art facility is part of DHL Express’ new Riyadh facility will largest Air & Ground operations facility in the Saudi Arabian capital DHL’s expansion strategy in introduce a new network flight in addition to the Riyadh located in the sprawling King continued use of commercial flights that will the Kingdom. The bonded Khaled International Airport. bring in 7,500 shipments daily. These will now be facility comprises an area The opening ceremony was hosted by Ken Allen, cleared as the facility will have its own of 12,000 sq. m. with a built promptly DHL Express Chief Executive Officer; Nour on-ground customs clearance that is Transport up area of 4,000 sq. m.—a Suliman DHL Express Middle East and North Asset Protection Association (TAPA)--certified. Africa CEO and HRH Prince Mohammad Bin great milestone for the future Geoff Walsh, Country Manager, DHL Saud Bin Nayef Bin Abdelaziz Al Saud who Express Saudi Arabia, remarked: “The new of Saudi Arabia’s logistics inaugurated the center with the traditional unveiling facility will reduce the transit times by a day or industry. of the plaque. two and will allow us to increase our flight It is the second of three new facilities that DHL capacity and schedules by 400 per cent thereby Express has in plan for the Kingdom and that would total an boosting customer satisfaction.” investment size of over US $95 million. According to a recent report, DHL has been a pioneer in the Middle East logistics industry for Saudi Arabia is ranked second in logistics in the Agility Index just more than 30 years and currently has 261 service centers and service behind China with the UAE, Oman and Qatar being ranked for their points across 19 countries in the region and employs 5,000 employees ‘market compatibility’. This investment will help support DHL’s across the Middle East of which nearly 1,000 are in Saudi Arabia. continued growth in Saudi Arabia and the wider region resulting in Through its innovation, service excellence and commitment, DHL even better transit times and network reliability. continues to offer customers superior logistics solutions. Nour Suliman, CEO, Middle East and North Africa, DHL Express, commented: “The Middle East and North Africa and its trading links DHL are growing in importance in the • Leading global brand in the logistics industry. global logistics • Offers a portfolio of logistics services ranging from industry with strong national and international parcel delivery, international growth projections express, road, air and ocean transport to industrial for the next few supply chain management. years. Our plan is to • Has around 325,000 employees in over 220 countries be right at the center and territories worldwide Offers specialized solutions for growth markets and of that growth to • industries including e-commerce, technology, life serve our customers. sciences and healthcare, energy, automotive and Saudi Arabia is one retail of the region’s DHL is part of Deutsche Post DHL Group. biggest markets for • • The Group generated revenues of more than 56 billion DHL Express. Our Euros in 2014. capability in Saudi
D
“Saudi Arabia is one of the region’s biggest markets for DHL Express. Our capability in Saudi Arabia is a key revenue and service driver for the region.” 34 | Logistics News ME | June 2015
IOT IN LOGISTICS
DHL LAUNCHES ‘IOT IN LOGISTICS’ TREND REPORT In the logistics and supply chain industry, ‘Internet of Things’ (IoT) will have game-changing consequences from creating more last mile delivery options for customers to more efficient warehousing operations and freight transportation.
D
HL and Cisco Systems released a new white paper entitled ‘Internet of Things’ (IoT) in Logistics’ at the recent DHL Global Technology Conference in Dubai. The Internet of Things (IoT) is the network of physical objects or ‘things’ embedded with electronics, software, sensors and connectivity to enable it to achieve greater value and service by exchanging data with the manufacturer, operator and-or other connected devices. Each thing is uniquely identifiable through its embedded computing system but is able to interoperate within the existing Internet infrastructure. Rob Siegers, President, Global Technology Sector, Customer Solutions and Innovation, DHL remarked: “We are just at the cusp of the Internet of Things (IoT) revolution. The DHL Trend Report estimates that less than 1 per cent of all physical objects that can be connected to the internet are connected today. By 2020, Cisco estimates that computers (including PCs, laptops, tablets and smartphones) will represent just 17 per cent of all Internet connections. The overwhelming 83 per cent will stem from IoT, which includes wearables and smart-home devices.” The report was unveiled at the three-day DHL Global Technology conference in Dubai also attended by DHL Express CEO, Ken Allen. Themed ‘Connecting Markets, Trends and People’, the conference was attended by over 150 C-level executives from the leading companies in the technology sector and focused on innovation and major emerging trends. Commenting on the forum, Nour Suliman, CEO, DHL Express Middle East and North Africa, said: “As leaders in logistics, there is a tremendous opportunity for DHL to observe how we can shape the industry with our customers and ensure we are continuously at the
forefront of the next wave of technology. “The IoT is offering a whole new level of opportunity for technology leadership in Dubai. By leveraging the IOT and the new era of the Internet of Everything (IoE) Dubai can achieve a potential value of US $4.87 billion by 2019,” opined Dr. Bernd Heinrichs, Managing Director, IoE EMEAR (Europe, Middle East & Africa Region) at CISCO Systems. The Trend Report is part of DHL’s ongoing efforts in exploring technology innovations which would revolutionize and positively impact the logistics industry. The logistics leader has been a pioneer in leveraging innovative technology solutions to continually explore the use of cutting edge technology for the industry. Recently the company announced the use of augmented reality in operations in warehouses, during transportation and last-mile delivery which could be enhanced by computer-generated sensory input such as videos or graphics. The company was also behind the world’s first commercial deployment of the DHL Parcelcopter, which delivered emergency medications and other goods to the North Sea Island of Juist located off the coast of the German state of Lower Saxony. The IoT and its possibilities of enabling new business models promise benefits for the entire logistics value chain, including warehousing operations, freight transportation and last mile delivery. Difficult operational and business challenges of today may be solved by improved operational efficiency, safety and security, and customer service. The IoT enables monitoring the status of assets, parcels, and people in real time and removes operating blind spots throughout the value chain. In addition, new automated processes and applied analytics are expected to optimize how people, systems, and assets work together and to result in lower costs. Logistics News ME | June 2015 | 35
PANAMA CARGO LINES OFFICE INAUGURATION
PANAMA CARGO LINES SAILS INTO DUBAI Panama Cargo Lines recently inaugurated its new offices in Dubai amid much fanfare including a reception attended by the Panamanian Consul General to the UAE and top officials from the company and its exclusive agent, Seahorse Group.
T
wo major global logistics hubs, separated half a world away, have moved closer when Panama City-based Panama Cargo Lines (PCL) recently launched its Middle East corporate offices in the Jumeirah Lakes Towers (JLT) enclave of Dubai’s Southern Business District. The offices were formally inaugurated by Consular General of The Republic of Panama, HE Eduardo Fonseca Ward and subsequently, a commemorative ceremony was held at the Capitol Club, in Dubai International Financial Centre (DIFC). The Consul General applauded PCL’s tactical move to establish its Dubai Offices and emphasized the critical and indispensable role played by strategicallylocated Panama in connecting and fostering the global trade. “As a connector of continents, Panama sits at the crossroads of major trade routes and is a vital lifeline and connector not only between the North and Latin American continents, the Atlantic and Pacific Oceans but also trans-global trades. Now with a vibrant, diversified economy with thriving agricultural, manufacturing and mining industries, Panama is well poised to make its mark globally and make forays in the Middle East,” affirmed HE Eduardo Fonseca Ward as he addressed invitees at the commemoration ceremony. 36 | Logistics News ME | June 2015
The official grand event of office launch was followed by celebrations when distinguished guests, partners, associates, key customers, eminent professionals from major shipping lines, operators, logistics experts, warehouse specialists and members of the media mingled with each other and with PCL staff . Mohan Kulkarni, Director, PCL, traced the growth of the company and highlighted the vision of the company to become a
“As a connector of continents, Panama sits at the crossroads of major trade routes and is a vital lifeline and connector not only between the North and Latin American continents, the Atlantic and Pacific Oceans but also trans-global trades.”
Mohan Kulkarni leading player in the industry. “We are committed to serving the regional market and making an impact on trade from this region to the Latin American continent and vice-versa. We aspire to provide a onewindow solutions for all supply chain requirements,” he remarked in an address to the assembled audience. The company will operate from three major commercial hubs out of Dubai, Panama and Singapore with active network presence in India, UK, Malaysia and China.
PANAMA CARGO LINES OFFICE INAUGURATION
ENGAGED IN THE BUSINESS OF CONTAINER LINES (NVOCC) AND DRY BULK VESSEL OPERATIONS: NVOCC: Non-Vessel Owning Common Carrier The NVOCC division renders value added and reliable services to their customers spread across the Middle East, the Indian Subcontinent, South East Asia, the Far East and Latin American countries. Dry Bulk Vessel Operator • Offer tonnages ranging from mini bulker to Panamax, • Carriage of harmless bulk raw materials, steels and bagged cargoes in the Far East, South East Asia, the Indian Subcontinent, the Middle East, Mediterranean and the Black Sea.
“Panama Cargo Lines aspires to provide one window solutions for all supply chain requirements” Dubai connects South East Asia to rest of the world while Panama connects Latin America to the world. PCL connecting Dubai with Panama will effectively help in ‘Connecting Continents’ with its 2000 plus container inventory. To cater the increasing volume in business, the management is in discussions with major container leasing companies for long term leasing of boxes. The niche expertise of the company lies in handling of high value metals and refrigerated agro-products / cargo exports while the other business would also be catered with the same precision and dedication. During the event Panama Cargo Lines also confirmed the appointment of Sea
Horse, a reputed 3 PL service provider with a proven track record for Shipping Solutions, as their exclusive agent. “We are naturally delighted and proud to be associated with PCL as their exclusive agent. We work closely with PCL and thank them for the trust reposed in us,” asserted Arvind Mallik, Operations Manager, Seahorse Group on this appointment. “We have always been always been guided by three pillars—integrity, reliability and dedication and with the global presence of Panama Cargo Lines coupled with local expertise of Sea Horse, we are committed to better serving our clientele in the region and thereby as a spinoff increase trade volumes between the Middle East and the
Americas,” affirmed Vladimir Delic, Chairman, PCL. “The combined resources, professional skills and industry expertise of the Panama Cargo Lines and Seahorse Group whilst being harnessed for our customers benefit will also help us grow in the region as we keep a high profile and further develop our capabilitues,” Delic further asserted. Also present were Romano Feoli, Managing Director, Panama Cargo Lines who especially flew in from Panama City for the celebrations; Andy Ooi, the Singapore-based Operations Manager, Seahorse Group and William Koudsie, Operations Coordinator, Seahorse Group.
Logistics News ME | June 2015 | 37
PANAMA CARGO LINES OFFICE INAUGURATION
Logistics News Middle East spoke exclusively to Mohan Kulkarni, Director, NVOCC, Panama Cargo Lines on the sidelines of the inaugural ceremony. ON WHY PANAMA CARGO LINES DECIDED TO OPEN AN OFFICE HERE IN DUBAI AND THE IMPLICATIONS Dubai is an attractive business hub and equally distanced in the international time zone between East (Singapore) and West (London). It is also a better place to connect Latin America to the Middle East and Subcontinent. ON THE IMPACT THE EMERGENCE OF PANAMA CARGO LINES WILL HAVE FOR THE WIDER GCC-MIDDLE EAST TRADE WITH THE CENTRAL AMERICAN STATES AND THE LATIN AMERICAN CONTINENT Panama Cargo Lines (PCL) will work to develop a trade route between Latin America and the Middle East. ON THE NATURE OF GOODS & CARGO THAT PANAMA CARGO LINES WILL BE BRINGING IN & TAKING OUT OF THIS REGION. High value metals and agro commodities
with our own boxes. PCL is planning to procure about 2000 boxes during 2015 which will help us better serve our customers. ON THE EXPANSION PLANS FOR THE REGION Specialize in the movement of non-ferrous metals and develop a route between the ports where London Metal Exchange-registered warehouses are located. We hope to open one-window logistics solution with the state of art IT applications and dynamic supply chain platforms. ON THE OPPORTUNITIES & CHALLENGES DO YOU FORESEE FOR PANAMA CARGO LINES IN THE REGION? Panama Cargo Lines will develop the Middle East, Sub Continent and Latin American corridor and be the integrated, reliable major player in supply chain management but the challenge is to make a mark in this highly competitive industry where competition is stiff.
ON THE SIMILARITIES AND SYNERGIES YOU SEE BETWEEN PANAMA & DUBAI AS MARITIME HUBS Panama is very famous for its canal which connects Atlantic and Pacific oceans and shortens the distance of go around Cape Horn. Panama is a destination for maritime industries to open offices. The ship owners world-wide register their vessels in Panama as Panama registry is much recognized and reputed among maritime industry. Panama is also a corridor to the hinder lands of Latin American countries as well as a lead to North America. Dubai is a business hub in the Middle East and the Ruler’s investor-friendly approach attracts businessmen across the world to open businesses and manufacturing units in the country. Dubai is also a hub for the maritime business. It is a home for many multinational trading houses and various free trade zones in the emirates play a major role in shipping. Panama Cargo Lines believes that we can open up new horizons in connecting Middle East and Latin American countries.
THE PANAMA CANAL TURNED 100 IN 2014
ON THE SIGNIFICANCE OF THE PANAMA CARGO LINES PRESENCE IN THE MIDDLE EAST AND ITS IMPORTANCE IN THE WIDER MIDDLE EAST Panama Cargo Lines will be the first NVOCC connecting the Subcontinent, ME and LA countries. As the company originally established in Panama, we have the privilege in doing business in and out LA hinterlands world-wide.
The Panama Canal, which incidentally celebrated its centennial in 2014, is an engineering achievement of its time. The completion of the canal was a seminal historic event that dramatically cut the time and cost of shipping between coasts, and opened up entire new geographic areas for commercial development, including Panama itself. For a century, the waterway has been a main artery of hemispheric and global trade
ON THE EXTENT OF SERVICES OFFERED BY PANAMA CARGO LINES Panama Cargo Lines offers a wide range of sea freight services. PCL is in a better position than other NVOCCs as we move the goods
The canal itself is an important link in the global economy, benefiting countries across the world. Today, half of the top six user nations are located in Asia (China, Japan and South Korea), while all of the top 10 user nations are located in Asia or the Pacific coast of the Americas. The top user by far is the United States.
38 | Logistics News ME | June 2015
PANAMA PANORAMA
STRONGER RELATIONSHIPS & TRADE PROSPECTS ENVISIONED BETWEEN PANAMA, UAE New Panamanian Consul General brings panache to Panama-UAE relations; foresees stronger relationships and trade opportunities between the two logistics-centric and strategically located countries.
H
E Eduardo Fonseca Ward is the Consul General of Panama to the UAE, the only foreign representation of the Central American nation in the UAE. A youthful diplomat with an engaging personality, HE Ward took over his post only in 2014 and in this short period, Panama-UAE ties are already in the ascendancy as evidenced by the November 2014 official visit of Panamanian Vice President & Foreign Minister Isabel de Saint Mallo to the UAE. An audience with HH Sheikh Mohammed Bin Sayed Al Narayan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces at the Al Bahr Palace with HE Eduardo Ward and the accompanying delegation was the highlight of the visit. Logistics News Middle East exclusively interviewed HE Eduardo Fonseca Ward, Consul General of the Republic of Panama to the UAE. Briefly, what is the state of current Panama-UAE bilateral trade & commerce relations? The bilateral co-operation in trade and commerce has increased in recent times and we want to further the level of integration of the different sectors. Currently we are evaluating and analyzing economic feasibility for various industry segments with the implementation of various joint agreements. What growth potential do you foresee for Panama-UAE trade ties? The number of tourists and business travelling from the UAE to Panama and the wider Latin American continent and vice-versa has grown and is likely to spark an increase in different
market opportunities. It is important to note that both countries are in a unique strategic regional position and do have considerable potential for political, trade and economic cooperation. What goods & product sectors have good potential for greater penetration in the UAE and the wider GCC & the Middle East? The aim is to expand in different sectors within the GCC & the Middle East. From the farming sector Panama has the highest potential for agricultural products such bananas, pineapple, shrimp, oranges as well as coffee, which includes the Geisha variety, one of the most prized worldwide. We likewise export gold as well as have the second largest Free Zone in the world, which serves as one of the main logistics platforms in Latin America. In the secondary sector we have a solid, reputable and international banking and legal services sector which has much potential for growth. Both Panama & Dubai specifically enjoy the status of being logistics hubs by way of their strategic locations. Please comment. Indeed both countries have a very strategic location, Dubai is an important hub for the MENA region connecting to the world and Panama has the Hub of the Americas in the Tocumen International airport in Panama City, one of the most connected to the greater Latin America with direct flights to 75 cities, including 5 in Europe. The Tocumen airport has two separate runways, world-class infrastructure and services and a new terminal being built to double capacity by 2017. As for the Panama Canal, the widening will raise capacity from approximately 5,000 TEUs to 14,000 TEUs in parallel to existing
HE Eduardo Fonseca Ward operations. This will have a positive economic benefit for both Panama´s logistic sector and global world trade. What are your observations on the connectivity of these two geo-commercial hubs? How will that boost trade between the broader Middle East and the Central American states and the Latin American and North American continents? We hope to have closer cargo, passenger and logistic ties in the near future to connect Latin America with the MENA region. How significant is the Panama Canal for Panama and the Panamanian economy? Even though nearly 14,000 ships transit through the Panama Canal yearly, it directly generates only around 4% of our GDP. Having said that, up to 5% of the world’s trade is estimated to cross the Panama Canal,
Logistics News ME | June 2015 | 39
PANAMA PANORAMA
Panama has a very diversified and robust economy that is one of the fastest growing worldwide. We are an economy that is 80% based on varied services. We use the US dollar as our currency, predictable and stable legal system, a strong and growing middle class and various incentives for FDI, Panama is proud to be called home to ever more companies that believe in its vision.
which has allowed Panama to have one of the fastest growing and robust port and logistics sector growth in the world. How diversified is the Panamanian economy now? Panama has a very diversified and robust economy that is one of the fastest growing worldwide. We are an economy that is 80% based on varied services. We use the US dollar as our currency, predictable and stable legal system, a strong and growing middle class and various incentives for FDI, Panama is proud to be called home to ever more companies that believe in its vision. How did the November 2014 meeting of HE Isabel de Saint Malo, Vice President and Foreign Minister of Panama with HH Sheikh Mohammed Bin Zayed Al Nahayan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces help boost relations between the two countries? We were able to define our objectives and are currently working on several initiatives, plans and strategies including the negotiation of several treaties to increase our presence and visibility in the UAE as well as fostering closer ties between our regions in trade and the logistics sectors. Will we be seeing more Panamanian companies coming into the UAE and the GCC, possibly even employment opportunities for Panamanians in the region? We do believe that there will be more opportunities for collaboration between Latin America and the GCC and wider MENA region as we get increasingly better-connected. What is your vision & aspirations for the future 40 | Logistics News ME | June 2015
of Panama-UAE bilateral ties under your watch? We would like to create more opportunities for the two distant but similar regions to come together and create more prosperity and hope for their peoples through economic and
humanitarian initiatives. Panama and the UAE have similar economic models, serve as centers of regional trade and are a magnet to citizens, expatriates and companies wishing to do business within their countries.
HE EDUARDO FONSECA WARD • • • • • • •
Responsible for the administration of the consular, political and economic affairs of the Republic of Panama in the UAE. Bachelor of Science in Commerce from Santa Clara University, California, USA Multi-faceted; has had a cheered professional career—financial analyst, delegate, administrator and more recently Commercial Director Fluent in his native in Spanish and English, intermediate proficiency in German Pilot with the Panama National Bobsled Team (Spirit of Panama) / University Rowing Champion Private Pilot: Licensed to fly helicopters, fixed wing and ultralights; first flight alone in ultralight at age 12 MENSA: Accepted as Club member in 2008
Logistics News ME | June 2015 | 41
MIDDLE EAST DEBUT
Swisslog inaugurates its new Middle East Office The opening of the new office of Swisslog in Dubai will serve to enlarge its profile in the Middle East
B
uchs-Aarau, Switzerland headquartered warehouse automation specialist, Swisslog, has extended its presence in the Middle East with a new office based in Dubai and new legal entity, Swisslog Middle East LLC. The new business is intended to provide stronger local support to allow the growing number of Middle Eastern automation customers to stay ahead of their competition. The move is also in response to the growing importance of automation in the region, particularly in the retail business and in sectors where temperature control has a significant impact on the supply chain. The company has two divisions, Warehouse & Distribution Solutions (WDS) and Healthcare Solutions (HCS). With the establishing of Swisslog Middle East LLC in the Dubai, Swisslog WDS aims to develop further its presence in the region, and follows a similar strategy of local offices in developing automation markets such as Singapore and the USA. The Dubai office will be headed by Frédéric Zielinski, General Manager. Zielinski sees Dubai’s position as a regional hub as playing an important role in the future development of the Middle Eastern logistics market. “We have seen a lot of development in a short space of time. Dubai’s strategic importance as a centre for international shipping and air-sea-land logistics means the market has always offered great potential. Now, with the increasing impact of e-commerce and temperature controlled solutions, the time is right for us to increase our local presence, increasing the reach and capabilities of our customer service and support,” he commented in a statement to the media. The region has seen remarkable growth over recent years with manufacturing activities increasing dramatically and the logistics sector responding accordingly. The subsequent effects of these developments have had a major impact on modern warehouses, with many existing operating models no longer fitting their intended purpose. The trend toward 42 | Logistics News ME | June 2015
automation has gathered pace, as investment in technology is viewed as a long-term benefit. Swisslog’s portfolio consists of different key technologies, such as conveyor systems, Automated Storage & Retrieval Systems (ASRS); Automated Guided Vehicles (AGVs), monorails, and software to help businesses maximize their intra-logistics potential. Daniel Hauser, Managing Director of Swisslog Ltd, believes the Middle East offers real potential for the automation industry.
“With this commitment to the Middle East market, Swisslog continues to follow its strategy to be close to customers, not only to deliver services, but to learn from their challenges and to allow us to develop even better systems and support,” he commented. Swisslog hopes to develop the regional market yet further, with its range of modular solution portfolios that provide order fulfillment, split case picking, returns management and other common warehouse processes.
“Now, with the increasing impact of e-commerce and temperature controlled solutions, the time is right for us to increase our local presence,”— Frederic Zielinski, General Manager, Swisslog Middle East.”
ALGERIA TRAMWAYS
The CITAL site will assemble and maintain Alstom-Citadis trams in a sprawling 46,000 sq. m. facility and is presently capable of assembling five trams a month.
C
ital, a joint-venture (JV) composed of Alstom, EMA (Entreprise du métro d’Alger) and Ferrovial, recently celebrated the inauguration of its Citadis tramway assembly and maintenance site in Annaba, a coastal city and leading industrial hub in Eastern Algeria. Several high-ranking officials from Alstom and the Government of Algeria were present on this occasion. Luminaries present on the occasion included Ramtane Lamamra, Algerian Minister for Foreign Affairs; Abdesselam Bouchouareb, Algerian Minister of Industry and Mining; Amar Ghoul, Algerian Minister of Transport, Laurent Fabius, French Minister for Foreign Affairs; Omar Hadbi, CEO of EMA; Salah Melek, CEO of Ferrovial; Gilles Esprit, President of CITAL; Henri PoupartLafarge, President of Alstom Transport and
Alstom JV inaugurates its Algerian tram
Henri Bussery, President of Alstom Algeria. Created in 2011 to assemble and maintain the Alstom Citadis trams for Algerian cities, Cital supports the industrialisation of the country and boosts the local economy. To date, the JV counts about 200 employees of which 90 are based in Annaba and the others across the country to maintain the Citadis trams already in service in the cities of Algiers, Oran and Constantine. With more than 210 Citadis trams to be assembled in Annaba for cities like Constantine, Oran, Ouargla, Mostaganem, Sidi Bel Abbes, Setif, Batna and Annaba, CITAL will recruit hundreds of new employees. The site, which is around 46,000 m², is able to assemble five trams per month. As of today, 20 trams have already been assembled. Cital also announced the prolongation of the Memorandum of Understanding (MoU),
which was signed in December 2014, regarding Cital’s activities extension to the engineering, manufacturing and maintenance of intercity trains for Algeria as well as the entry of Sntf as a new shareholder of the JV. This new phase enables to mature the project. This MoU reflects the commitment of the Algerian Government to pursue the development of the national industry, making Annaba the center of excellence for serving the rail industry. Sntf is the National Railways Company in Algeria Cital is an Algerian industrial company of transport for the maintenance and assembly of Alstom Citadis trams. It was created by the Algerian authorities to develop the country’s industrial railroad as well as the corresponding expertise. Cital is owned by Ferrovial (41%), EMA (10%), Alstom Algeria (6%) and Alstom SA (43%). Logistics News ME | June 2015 | 43
TELEMATICS
STREAMLINING VEHICULAR MOVEMENTS THROUGH NAVIGATIONAL TECHNOLOGIES As the Gulf region prepares for an increase in container terminal capacity, the subject of overcapacity is on the forefront. Crane Worldwide Logistics’ looks at what is being added in the market.
S
tellenbosch, South Africaheadquartered MiX Telematics, founded in 1996, is a leading global provider of fleet and mobile asset management solutions. The company offers products and services in Telematics, an inter-disciplinary field encompasses telecommunications, vehicular technologies, road transportation, road safety, electrical engineering (including sensors, instrumentation, wireless communications among others) and computer science (multimedia, Internet). MiX Telematics’ products and services provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency and security. A recent study by Booz and Company has revealed that the global connected vehicle market is expected to grow at a compound annual growth rate of 29% from 2015 to 2020. The demand will drive further competition and market segmentation, so education is important for businesses to understand which solutions offer value and which are just quick-fix track and trace options, without attached consultancy and fleet support. The Middle East business of MiX Telematics is essential for offering a truly global service, while catering for the complexity of the Middle East market,” remarked Brodie Von Berg, Head of Sales and Marketing, MiX Telematics Middle East and Asia in an exclusive interview. “Customers desire world-class services, but they must be available locally. MiX Telematics has a strong local presence and will continue to focus on growing a sustainable business in the region,” he added. Von Berg stated that countries with increasing activity, either post-revolution or
44 | Logistics News ME | June 2015
easing on trade restrictions, offer great opportunities for accelerated growth. Often, the operators have been disadvantaged by the lack of access to international-grade solutions in the local market, so the adoption of new technology and services is sought after. In Von Berg’s opinion, the challenges of civil unrest, regulation, and connectivity are just that – challenges. “I am proud to say that our experience has enabled us to work through the challenges and deliver seamless services irrespective of the location of our customers. To offer consistent cross-border services, we utilise an extensive network of partners, some of whom have been part of our network for over ten years,” he emphasised. Telematics is becoming more commonplace
“MiX Telematics seeks to understand the customer’s business and apply our knowhow to achieve improved performance – whether it is safety, efficiency, security or compliance, or in most cases, a combination of these benefits.”
Brodie Von Berg in Von Berg’s estimation, however, the greatest challenge is the definition of ‘telematics’ he rued. “The market is plagued with cheap ‘telematics’ products that do little to add value to your business. A dot on the map may be useful, however a premium telematics solution offers real competitive advantages to logistics and supply chain companies,” he deplored. In Von Berg’s appraisal, some of the household names in logistics are surprisingly still grappling with the differences between a ‘GPS’ device and a fleet management system; others appear to have the technology, but are not supported with the services that are necessary to derive true value that brings results. Von Berg lamented the fact that requests for Proposals (RFPs) are failing to address the importance of service, and I don’t mean technical support. A true solution offering is more than a tick box exercise of hardware and online services: it requires people with the knowledge and skills to assist the customer with their objectives. “Failure to recognise this
TELEMATICS
• Using the Software-as-a-Service (SaaS) delivery model, MiX Telematics delivers its solutions to customers in more than 120 countries, across 6 continents. • Over 450,000 mobile assets – from trucks and buses, to vans, cars, motorbikes and trailers are actively managed by MiX Telematics. • Employs more than 1000 people • MiX Telematics has a network of more than 130 fleet partners world-wide. • The company has offices in South Africa, the United Kingdom, the United States, Uganda, Brazil, Australia and the UAE
aspect results in the selection of vendors who supply a product and product support services with total disregard for the customer’s actual and long-term business objectives,” he warned. Von Berg went on to declare that land transport operations face the same level of risk that pedestrians face on a day-to-day basis – that is a road environment where over 1.2 million people lose their lives each year. In addition, the competition keeps increasing and irrespective of their market positioning they all have one common factor: a driver and a vehicle – both of which when not managed will result in higher operating costs and a jeopardised safety profile. ‘Telematics, when applied correctly as one of several controls, enables logisticians with critical business information that can make the difference between their drivers arriving home safely to their family at night, coupled with the ability to remove unnecessary costs, “ he assured. According to Von Berg, MiX Telematics has a significant volume of customers that has achieved between 8% to 13% reduction in fuel consumption as a result of a MiX Telematics fleet management solution. “Many of these customers already had a ‘telematics’ solution fitted, but it was not being properly utilised or the system itself might have been flawed by limitations. If you are running a logistics company or a vehicle fleet, and you have the opportunity to reduce your fuel cost by 10%, you are going to have to pay attention or succumb to the competition,” he cautioned. For the three aspects of a fleet operation – Drivers, Vehicles, Routes – MiX Telematics has a broad range of products and services that are compiled to suit the individual customer need. The company caters to new
projects, offering advice from RFI stage of vendor selection, to future-proof contracts. It also offers a suite of services focused on the implementation phase, and operational services including driver training and other complimentary services, Von Berg claimed. Having in-house development of products and services, MiX Telematics has full control over the solutions offered. The company recently migrated to an updated online platform that offers a highly integrated solution for monitoring, including tracking, reporting, analytics, journey planning, and even integrated video monitoring. It also recognises the importance of mobility in today’s world and its dedicated mobility teams are delivering superb applications that meet the needs of the on-the-go worker or manager. Vehicular movements is not the only forte for MiX Telematics. The company holds global oil and gas services contracts with big name customers, some of which have been in effect for over a decade. The partnerships stem from its ability to continue to learn, build and implement best practices for an industry that is practically an evolving science, explained Von Berg. Elaborating on the extent of services offered to the energy sector, Von Berg affirmed that the company was able to evolve what was typically a health and safety focussed solution to a hybrid safety and efficiency solution. “At MiX Telematics, we were able to take the learnings from our fleet-efficiency focussed customers, and apply the same methodologies using the same technology that is already implanted in the customer’s fleet. This approach provides a unique solution that keeps the customer’s drivers safe, while
delivering fleet savings at both the top and the bottom of the oil price cycle,” he asserted. MiX Telematics offers solutions for safety, efficiency, compliance, and security and the company continues to target multiple industry verticals and sectors. In Von Berg’s assessment, the application of the solutions is relevant to all industries in one form or another. “We have developed specific applications to cater for industry-specific needs, be it for oil & gas, bus & coach, transport & logistics or pharmaceuticals. The solutions address driver risk and utilisation, fleet utilisation and performance, and workflow management. This can encompass online training, location monitoring, journey planning, cold-chain management, driver performance coaching, reporting and further business intelligence,” he expanded. “I am pleased to say that 2014 yielded positive results year-on-year. This was in the face of a full technology refresh on our user interface platform across the entire fleet business. This massive undertaking has enabled our 500,000-strong subscriber base to benefit from up-to-the minute technology that is slicker, faster and more intuitive to use at no extra cost,” he said in response to a question on the company’s performance last year. Von Berg was also upbeat about the company’s 2015 performance. “This year we have seen continued enthusiasm from the market and we expecting yet another positive year. We have industry leading technology releases coming to market throughout the year, for which our customers that have been invited to preview have expressed delight and praised the capability of our solutions,” he concluded optimistically.
Logistics News ME | June 2015 | 45
GENAVCO—IFFCO GROUP (INTERGULF DIVISION) TIE-UP
GENAVCO’S RACKING SOLUTIONS UPLIFTING INTERGULF 46 | Logistics News ME | June 2015
GENAVCO—IFFCO GROUP (INTERGULF DIVISION) TIE-UP
GENAVCO recently accomplished a major racking, storage and warehousing turnkey project with partners Crown & STOW for the Sharjah, UAE-based IFFCO-INTERGULF.
M
ulti-faceted and multi-product conglomerate General Navigation & Commerce Company (GENAVCO), a Juma Al Majid company, recently accomplished a major turnkey project with partners Crown and Stow in Sharjah, UAE establishing the IFFCO Group, INTERGULF division. IFFCO is an innovative and integrated multi food products group with an established global presence and offers a wide range of food products, related derivatives, intermediates and services. In mid-2014, Genavco, as equipment suppliers, initiated discussions with Ashok Kumar, Head of Supply chain of Intergulf division on a major project to design, develop and implement a state-of-the-art, modern racking solutions and systems for the latter. Following prolonged negotiations and Genavco’s proficiency & expertise in providing the highly prized, reliable and much soughtafter Stow stock keeping units (SKUs), a deal between the two parties was concluded in September 2014 with a delivery and installation commitment of only three months. Genavco started the project in January and completed the same in March 2015 in a record three months. Ashok Kumar, Head of Supply Chain, Intergulf, is gratified and excited about the partnership. “With our current annual capacity of over 2.2 billion units and with additional reserve capacity of 700 million units being planned, Intergulf-empol is one of the largest manufacturers of PET preforms and closures in the MENA region. As these preforms are intended specifically for edible products such as mineral water, carbonated soft drinks, edible oils, fresh & UHT milk, juices and ketchup, it is imperative that we get our warehousing and logistics acts in order for just-in-time deliveries. In Genavco we found the perfect partner who understood our needs, our line of business and with a sophisticated, reputed, tried-and-tested portfolio of Crown and Stow products, was able to provide us racking solutions as specified and demanded,” he affirmed. Asif Sayeed Khan, General Manager, Plant & Equipment and a 22-year veteran at Genavco is also upbeat about this alliance and
its successful implementation. “Genavco has always prided in its ability to efficiently accomplish its obligations to its customers and our deal with Intergulf is yet further evidence of our capabilities and know-how in the racking systems arena. Despite numerous challenges and demands, we have successfully completed our assignments with materials handling leaders Crown and racking solutions experts Stow,” asserted Khan. Challenges abounded for Genavco during the installation and delivery process. The test was to propose to Intergulf a suitable machine which could lift more capacity at varying heights. The highly-regarded Crown RD series double deep trucks was the best suitable
“GENAVCO has always prided in its ability to efficiently accomplish its obligations to its customers and our deal with INTERGULF is yet further evidence of our capabilities and know-how in the racking systems arena,”—Asif Sayeed Khan
option for this application as it could deliver high capacity at unusual heights. This enabled Genavco to clinch the deal in the face of stiff competition. Intergulf was impressed with Genavco’s solutions and though they were the last entrants their professional approach helped them bag the fiercely fought contract. The deal worth AED 2 million (US $545,000) comprised the provision of racking systems for over 60,000 sq. ft. of warehousing space with Stow Double Deep Racking 12 m in height and the supply of Crown machines including the 3X Double Deep Reach Trucks with 11.5m height, 3X forklifts, 2X Powered Pallet trucks and Hand Pallet trolleys. Genavco signed an agreement with Stow, a Belgium-based manufacturer of Racking & Shelving Products at the Middle East Materials Handling Middle East Exhibition in September 2013 to distribute its products in the UAE. Through its partnership with Stow, the company has access to an extensive portfolio of racking and shelving products allowing the latter to offer more comprehensive storage and handling solutions to its customers. Among those introduced to the market was the Stow Atlas Pallet Shuttle System that demonstrates the company’s vast experience in the field. The ISO9001 product serves to optimise storage capacity and the self-powered device facilitates the loading and unloading of pallets. Stow is part of Averys Group, the world’s third largest manufacturer of racking and shelving products, which already enjoys an established presence in Asia, Europe, South America and Australia.
GENAVCO • ESTABLISHED IN 1967 • PART OF THE DIVERSIFIED JUMA AL MAJID BUSINESS CONGLOMERATE • REPRESENTS A PREMIUM RANGE OF HIGH QUALITY PRODUCTS FROM UK, EUROPE, USA, JAPAN & CHINA. BRANCHES IN ABU DHABI, DUBAI, SHARJAH AND AL AIN, • GENAVCO SUPPLIED EQUIPMENT CONTRIBUTES TO ALMOST EVERY PROJECT IN THE U.A.E. INFRASTRUCTURE Logistics News ME | June 2015 | 47
KUEHNE+NAGEL MILESTONE
KUEHNE+NAGEL CELEBRATES ITS 125TH CORPORATE ANNIVERSARY
D
ubai World Central (DWC) recently The US $20.2 million state- Africa, remarked: “We are particularly proud of hosted the 125th corporate anniversary our partnership with Dubai World Central, of-the-art facility is part of which offers us a strategic location between the celebrations of Kuehne+Nagel, the first DHL’s expansion strategy in Al Maktoum International Airport and the global logistics company to become the Kingdom. The bonded Jebel Ali Seaport, equipping us to better serve fully operational at DWC in 2009. The event, held at the company’s facilities at DWC our customers, optimize efficiences, as well as facility comprises an area was attended by HH Sheikh Ahmed Bin Saeed Al of 12,000 sq. m. with a built plan for robust growth.” Maktoum, President of Dubai Civil Aviation A key highlight of the celebrations was a 40-foot up area of 4,000 sq. m.—a Authority, Chairman of Dubai Airports, Chairman ‘anniversary container’ which began its around-thegreat milestone for the future world journey in January 2015 from the German and Chief Executive, Emirates Airline& Group. port city of Bremen. The container is scheduled for Also present at the event were Majid Saif Al of Saudi Arabia’s logistics stopovers in selected cities where it will be Ghurair, CEO, Al Ghurair Group of Companies; industry. showcased. Guests at DWC had the opportunity to Lothar Alexander Harings, Member of the Board of look inside the containers, which featured four Management and Chief Human Resources Officer, multimedia stations, each displaying information about the history, service Kuehne + Nagel International AG; Mustafa Sener, Managing Director, portfolio, innovations and career options at the Kuehne + Nagel Group. Kuehne + Nagel, UAE & Oman, in addition to the company’s Kuehne + Nagel operates across 20 countries, employs more than customers and business partners. 2,500 specialists, and has more than 230,000 sq. ft. of warehouse space Marking the corporate anniversary, Mohsen Ahmad, Vice President, in the Middle East and Africa region. Logistics District at DWC noted: “Kuehne + Nagel began operations in Logistics News Middle East spoke exclusively to Mustafa Sener, Dubai in 1978, and since then the emirate has served as the gateway Managing Director, Kuehne + Nagel, UAE & Oman, on the sidelines that has facilitated the company’s growth in the region. The company of the commemorative ceremony. has played a definitive role within Dubai’s logistics landscape, differentiating itself by offering comprehensive and integrated logistics ON ITS 37 YEARS OF OPERATION IN THE UAE: solutions to global customers, especially in the aerospace, pharma & Kuehne+Nagel first obtained its official trade licenses in the UAE in healthcare, perishables and hotel sectors.” 1978. After successfully providing the market with sea- and airfreight Ahmad added: forwarding services for many years, a significant step in the company’s “We are particularly proud that Kuehne+Nagel’s facility at the KUEHNE + NAGEL INTERNATIONAL Logistics District now serves as the • ONE OF THE LEADING GLOBAL LOGISTICS SERVICE principal hub that PROVIDERS oversees the company’s Middle • OVER 63,000 EMPLOYEES AT AROUND 1,000 East and Africa LOCATIONS IN OVER 100 COUNTRIES operations.” • FOCUSES ON SEA AND AIR FREIGHT, CONTRACT Peder Winther, LOGISTICS & LAND TRANSPORT WITH ITPresident, SUPPORTED INTEGRATED LOGISTICS OFFERINGS. Kuehne+Nagel Middle East &
“Saudi Arabia is one of the region’s biggest markets for DHL Express. Our capability in Saudi Arabia is a key revenue and service driver for the region.” 48 | Logistics News ME | June 2015
KUEHNE+NAGEL MILESTONE
“We are particularly proud of our partnership with Dubai World Central, which offers us a strategic location between the Al Maktoum International Airport and the Jebel Ali Seaport, equipping us to better serve our customers, optimize efficiences, as well as plan for robust growth.”
development came in 2009 with the opening of a 35,000 square metre warehousing facility at Dubai World Central. Kuehne+Nagel was one of the first logistics providers to invest in this strategically important location, and since then the company has focused on growth through industry-specific solutions, particularly for the aerospace, pharma & healthcare, perishables and hotel industries.
ON THE IMPORTANCE OF THIS LANDMARK 125TH ANNIVERSARY MILESTONE When a company is able to look back at 125 years of illustrious history, that itself is a very big milestone. Kuehne+Nagel’s 125th Corporate Anniversary symbolizes history as well as what it has developed into today, one of the leading global logistics companies. It is not by chance that Kuehne+Nagel has been in existence for 125 years. There are specific strengths such as entrepreneurial spirit, innovative power, efficiency, the ability to learn and a special company culture, that have brought the company this far.
ON THE COMPANY’S PARTNERSHIP WITH DWC Dubai World Central has entered a new phase of growth in line with Dubai’s economic development. The vision for the future of aviation in Dubai, along with the Dubai Logistics Corridor, which links the new Al Maktoum International Airport to Jebel Ali Seaport and Jebel Ali Free Zone, has been essential towards establishing Dubai as the world’s most preferred aviation and logistics hub. The vision and leadership is admired and recognized by Kuehne+Nagel globally as one of the worlds most respected global logistics provider and we aim to grow further with our investments in this essential market and strategic hub.
ON THE EXPANSION PLANS FOR THE REGION Our growth in volumes for both sea and airfreight in the Middle East Africa (MEA) region has followed the global growth rates for Kuehne+Nagel, and also we have seen very good growth in our Overland and Contract Logistics activities. Our growth plans focus on specific verticals and comprise all our Business Units. Oil & Gas, Emergency and Relief Logistics, Aerospace and Pharma are all key segments in this region. Growth ambitions are centred on delivering what we promise to our customers, adding value to their business and serving their needs. Expansion plans are based on an organic growth strategy. Nevertheless individual country investment will be reviewed.
ON THE IMPACT OF THE 40-FOOT ‘ANNIVERSARY CONTAINER’ ON ITS DUBAI SOJOURN The journey of the -40foot Anniversary Container has made a big impact not only on the employees of Kuehne+Nagel but also on our customers, who had the opportunity to look inside the container, which held four multimedia stations, each displaying information about the history, service portfolio, innovations and career options. Dubai was chosen as one of the selected cities for the Anniversary Container Journey around the World which emphasised the importance of the organisation in the UAE to the company’s network, strategy and future.
Logistics News ME | June 2015 | 49
LIQUIDS LOGISTICS SOLUTIONS
TRISTAR’S METEORIC TRACK RECORD
With an annual compounded growth rate of around 20% over the past ten years and excellent financial credentials, the Tristar Group is clearly on a roll. Logistics News Middle East sat down with Eugene Mayne, CEO, for an exclusive conversation.
T
he Tristar Group has come a long way through a journey of operational excellence and strong corporate values. Its current star-studded performance is a far cry from its humble origins. Tristar Transport was established in Dubai in 1998 with limited resources. The line of business then was purely road transport. Today, the company is one of the largest diversified liquid logistics players with interests in surface & road transport, ocean transport, fuel farm management, turnkey fuel supply operations, commercial aviation services and specialised warehousing for the petroleum and chemical industries. It presently operates in 15 countries spread across the Middle East, Africa, Asia, the Pacific and Central America. The company’s current employee force is around 2,000 people.
50 | Logistics News ME | June 2015
“We have a defined a 5-year business strategy which is updated annually. Our strategy is clear, we need to average a compounded annual growth rate of at least 20 percent.”
2004 turned out to be a pivotal point for the company. The new partnership forged with Agility garnered new opportunities and solidified Tristar as a game changer. Since then, this relationship has only grown stronger and this is reflected in the vigorous business growth witnessed over the last ten years where enterprise value has risen more than 100 times. “Our success would not be possible without mutual trust among shareholders, good governance and a strong and committed work force. It has been driven by our dreams and a strong belief in people, service and value,” affirmed CEO Eugene Mayne, attributing the company’s growth to all of its constituents and stakeholders and most importantly, its employees. Tristar recently hosted an Innovation Workshop for its senior managers and key performers to help generate momentum and
LIQUIDS LOGISTICS SOLUTIONS
EUGENE MAYNE CEO, TRISTAR GROUP • Over 38 years of professional experience in the UAE • Has full Profit & Loss (P&L) responsibility for all Tristar Group activities & operations • Worked with Caltex Petroleum Corporation in Dubai for 22 years. • Indian, Finance graduate from Bangalore University, India.
design strategies that incorporate future trends and expectations of the logistics sector. “Educating, innovating and implementing strategies that helped us lead a drive to safer trucking operations since our inception 17 years ago remain our core strengths, as we use those same strategies to adapt to the changing needs of customers today and tomorrow,” added Mayne. “People are innovating every day and innovative companies are changing the world and the way we live. Today, the world is increasingly connected and the opportunities to find new ways to connect people, businesses and other entities are to create and seek new values,” he philosophised. Innovative ideas are not just the prerogative of management in Mayne’s opinion. He has encouraged everyone in the organisation to bring forward to his attention any idea that they believe will benefit the company The Group aims to be a truly global and integrated fuel logistics business by expanding its footprint and range of services in the downstream petroleum industry in 25 countries in the short term. The group is also positioning itself to be the dominant ship owning company in the region by owning and operating a large fleet of clean petroleum product carrying tankers. In the recent past the Group has successfully completed the financing of Project Silver, and the order for six new medium range (MR) product and chemical tankers with South Korean shipbuilder Hyundai’s Mokpo Dockyard. Consequently, the site office will be set up in August this year and the steel cutting of the vessel will commence in September. All six vessels will be
delivered between May and November 2016. Through its JV entity, United Stars, the Tristar Group has been awarded a 10-year haulier contract by Saudi Aramco. “We intend to grow our fleet to over 2,000 vehicles in the next three to five years. We will also look to make ourselves the number one road fleet operator in the Kingdom by 2020. We also intend to play a key role in promoting road safety and generally raising the standard of road transport within the Kingdom,” remarked Mayne elaborating on the Group’s forays in the Kingdom. The Tristar Group’s financial performance has also been spectacular. Over the last ten
years the company has recorded a consistent CAGR of around 20% and 2014 performance was in line with this benchmark. According to Mayne, it expects to see similar growth in 2015. However, challenges abound. “Continuing to growing shareholder value amid increasing competition is and will continue to remain a challenge. Therefore, it is import that we periodically reinvent ourselves to have a competitive advantage. We are a market leader and we are confident, that as long as we stay ahead of the game with new products and services we will always come out on top,” commented Mayne. “We have a defined a five year business
SAFETY FIRST In 2014 Tristar partnered with the Roads and Transport Authority (RTA) of Dubai and the Royal Society for the Prevention of Accidents (RoSPA) of the United Kingdom to implement a road safety project called “Let us go home safely” in the United Arab Emirates (UAE) The company conducted a survey among commercial heavy duty drivers to know more about the underlying reasons which lead to road accidents. The study covered Pakistanis who comprised 57.4% of the group, followed by Indians with 29.4%, Jordanians with 7.4%, Egyptians with 2.9%, and Yeminis and Bangladeshis both with 1.5%. The investigation revealed that only 34% of the drivers believed that accidents happened due to human error while road statistics show that the majority of accidents occur due to human error. Moreover, surprisingly 24% of drivers surveyed believed that accidents are force majeure, thus non-preventable. Alarmingly, 35% of the drivers were involved in an accident at least once. They have been driving for an average of 10.5 years, with the longest duration at 35 years and the shortest duration at less than a year. The average age is 35.4 years old, with the oldest at 53 and the youngest at 24.
Logistics News ME | June 2015 | 51
LIQUIDS LOGISTICS SOLUTIONS
“Our success would not be possible without mutual trust among shareholders, good governance and a strong and committed work force.”
strategy which is updated annually. Our strategy is clear, we need to average a compounded annual growth rate of at least 20%. While we have traditionally relied on organic growth we are looking at making some strategic acquisitions this year which can spur our growth,” he further remarked making the case for current and future expansion plans. The Tristar Group foresees potential growth opportunities in global shipping. It is currently focused on expanding its ship owning business to build an integrated shipping business to supplement its surface logistics operations.
52 | Logistics News ME | June 2015
The Turnkey Fuel Supply Operations in Africa have been augmented with the commissioning of two redesigned Landing Craft Transport (LCT) vessels in Juba, South Sudan. These self-propelled vessels with Ro-Ro facility are primarily meant for fuel transportation through the Nile River to remote fuel sites where large capacity fuel barges cannot navigate. It sees growth opportunities in expanding its geographical foot print beyond the existing network.Mayne was also recently recognised and honoured as a leading and successful personality in the Arab World by a leading US
business publication. “I am passionate about the work I do and I am honoured to lead a team that motivates, encourages and counts on me to lead them to even greater success. I believe that one needs to lead with compassion, dignity, integrity and commitment and results will come automatically. The recognition is a testimony to all the hard work and sacrifice over the years and it feels rewarding to be recognised by the business community,” he concluded. With Mayne at the helm, the Tristar Group is gearing for the long road ahead for even more growth and successfulness.
SAUDI RAIL: HARAMAIN HIGH SPEED RAIL
HIMOINSA TO POWER KEY SAUDI RAIL CORRIDOR The Spanish generator set manufacturer has installed 29 of the 38 generators that Cobra has requested so far. Cobra is one of the 12 companies that make up the Spanish consortium responsible for implementing the high-speed project in Saudi Arabia.
M
ultinational energy company Himoinsa has delivered 29 generator sets in providing standby power to various sections of the key, high-speed railway line that crosses the western coastal and desert Al Hijaz region of Saudi Arabia, between Makkah and Madinah also called the Haramain High Speed Rail project. The high-speed rail corridor will serve 166,000 passengers daily and will travel 444 km in less than three hours. The project which will be completed in late 2016, will connect the most important rail corridor in the Gulf region. The railway line will permit speeds of up to 320 km/h and will offer a high degree of comfort to travellers. The Cobra Group, a leading company in terms of the creation of industrial infrastructure that has an international presence, has put its trust in the quality of Himoinsa generator sets on numerous occasions, choosing them as a safe bet to power many of its industrial and international construction projects. In this case, Himoinsa has installed 29
generator sets on several sections of the railway line, using models HFW 155 T6, HFW 200 T6, HFW 250 T6 and HFW 290 T6. These are generators with Iveco engines that operate in standby power to cover any network failure and to ensure continuity in the functioning of all the services of the stations and stopping points on the rail route. In late 2014, several technical professionals from Cobra Group attended quality tests conducted in Himoinsa factories in Spain and verified that the equipment met the demands requested by both Cobra engineers as well as the technical team from the Saudi Arabia Ministry of Transportation, the end user of this equipment. “There were two main reasons why we chose Himoinsa generator sets. On the one hand it is the success we have experienced partnering with the company on many other projects; and on the other hand it can guarantee a local service in Saudi Arabia through the company›s regional technical & sales team”, said a senior Cobra Group official. Himoinsa’s subsidiary in the Middle East, located in Dubai which has a commercial technical team has served the entire region and offered personalised quality service.
• Estimated cost of building the Rail line—US $12.2 billion • The first Spanish-made train for the multibillion- riyal Haramain railway project would arrive in Jeddah Islamic Port by December 2015 • According to Mohammed AlSuwaiket, the President of the Saudi Railways Organization (SRO), the Spanish manufacturing company has almost completed construction of the Haramain train • 3,000 workers are currently employed on the project, with Saudis accounting for 70 percent of the total uninterrupted power supply.
EXTREME WEATHER CONDITIONS.
“There were two main reasons why we chose Himoinsa generator sets. On the one hand it is the success we have experienced partnering with the company on many other projects; and on the other hand it can guarantee a local service in Saudi Arabia”
In addition to responding to the mass movement of Muslim pilgrims who arrive here every year from different parts of the world, this project is considered of extreme importance due to the harsh climatic and geological conditions that require high quality equipment. A journey of over 444 kilometres with stretches of dunes, sand and strong winds which mean that the generator sets must be designed to withstand intense sandstorms and very high temperatures. Himoinsa generator sets can endure temperatures of 50º and are designed to operate in dusty environments—factors that can damage the generator filters and therefore affect operation. As a result, this type of equipment for desert areas has been designed with tropicalised radiators that have double varnish and anti-condensation resistance. The alternator air filters are specially treated to prevent dust from entering and to ensure Logistics News ME | June 2015 | 53
PROFESSIONAL PERSPECTIVES
WAR AND PEACE FOR SUPPLY CHAIN LEADERS “Furthermore, because of the rapid speed of change today, supply chain leaders must not only keep the entire chain running smoothly, but they must also have the ability to think fast and act quickly when things go wrong.”
W
hen change is forever around the corner, as is the norm today, the game for any organisation that relies on an efficiently run supply chain is no longer between one competitor and another, but between supply chain and supply chain. I cannot stress this point strongly enough. The simple truth is, supply chain is the business. It is like the vertebrae of the human body. If one vertebra breaks down, the rest of the body can no longer function properly, or even at all. Furthermore, because of the rapid speed of change today, supply chain leaders must not only keep the entire chain running smoothly, but they must also have the ability to think fast and act quickly when things go wrong. For if there is another certainty in life today in addition to rapid change, it is that transitions from good times (peace) to bad (war) happen more quickly than ever before. Without the ability to think fast and act quickly when things turn sour, an entire
54 | Logistics News ME | June 2015
“Furthermore, because of the rapid speed of change today, supply chain leaders must not only keep the entire chain running smoothly, but they must also have the ability to think fast and act quickly when things go wrong.”
company will fall faster than its supply chain leader can say, “I surrender” and hand over the reins to the next in line. Learn to dial up or down like a speedometer In business as in life, circumstances change, people change, politics change, economics change, industries change, responsibilities change and expectations change. The ability to transition your leadership style swiftly from ‘peacetime’ mode to ‘wartime’ mode is a crucial skill to have as a supply chain leader. Let’s look at what I mean by ‘peacetime’ versus ‘wartime’ and why your leadership style and actions must adapt accordingly. When I refer to ‘peacetime,’ I am talking about those times when the company is cruising comfortably and enjoying a dominant market share. Wartime on the other hand refers to those uncomfortable times when the company is going through a ‘do or die’ crisis, such as when it is undergoing a challenging acquisition, when it suddenly and dramatically
PROFESSIONAL PERSPECTIVES
PRAKASH ‹PK› MENON ‘THOUGHT LEADERS MIDDLE EAST’ • Executive Director, ‘Thought Leaders Middle East’ • Internationally acclaimed speaker, thought leader, and mentor • Supply chain expert and leadership authority • Author—books: ‘Driven’, ‘Fail Smart’ and ‘Supply Chain is Sexy’
loses market share, or anything else that puts the company in dire straits. Both periods demand very different leadership styles. While in times of peace, the supply chain leader can afford to focus on the big picture and empower his or her people to make decisions, in wartime he or she must zoom in on the minutest detail to determine the cause and the best way out of the crisis. Does this demand an element of micromanagement during such challenging times? You bet it does! Your staff may not like it, but niceties essentially go out the window during times of crisis. During times of peace, the smart supply chain leader will always have a contingency plan in place. In other words, despite knowing the company is enjoying the luxury of having a dominant market share, he or she knows this doesn’t mean it’s time to rest on their laurels. They know their nearest competitor is always watching and waiting in the wings for signs the company is about to fall off its perch. The peacetime leader is almost always cool, calm and collected, showing faith in others and allowing individuals to grow by delegating responsibilities. The wartime leader on the other hand has no choice but to issue commands as he or she sees fit, as they know it’s do or die. And believe me when I say ‘do or die’, that is literally the case. While the peacetime leader can afford to think strategically and forward plan the best way and timing to exit or change weak links within the supply chain, the wartime leader must do whatever it takes to pull through and
survive right now. Organisations that will survive in wartime are those that have set themselves up to be able to deal with a catastrophe while things are running smoothly. The wise supply chain leader is always ready to hit the right target with a single bullet when things go pearshaped. They know there is no such thing as a second chance. Peacetime is in fact the time when many businesses get themselves into strife, as it is a common time when arrogance and complacency kick in. I’m sure many of you have seen it happen. Anyone that sits back and thinks, ‘We’re so big and great, nothing can touch us,’ is in for a rude shock as the reality is, ‘war’ is always on your doorstep and the ability to transition from a peacetime mindset to a wartime mindset and act according is crucial. If the leader isn’t adequately prepared and hasn’t discussed contingency plans in advance with staff, then their staff won’t be able to cope with changes. The boss that used to be nice is no longer nice and everything becomes chaotic. In short, if that transition isn’t managed swiftly and appropriately, it can be fatal.
THINK FAST, ACT FASTER In 1999, Bill Gates and Collins Hemingway wrote the book ‘Business @ the Speed of Thought’ which spoke about the need for businesses to be nimble, and swift in decision-making. This golden rule applies much more today than it did when the book was written sixteen years ago. The ability to think fast and act faster is a critical ingredient of a supply chain leader’s
competency. Speed of thought is critical because the dynamics of business are changing so fast that unless companies think swiftly and adjust their strategic, tactical and operational plans accordingly, they will lag behind.
IGNORANCE, ARROGANCE & COMPLACENCY DRIVE DERAILMENT In the ever-changing global village we live in today, the new supply chain leader must have the ability to adapt in chameleon-like fashion when transitioning from good times to bad. There is simply no place for ignorance to this reality nor is there room for arrogance and complacency. The following are my top three tips to adapt your leadership style and actions according to the current state of the nation: • Be ready. Prepare for ‘war’ in advance. • Be nimble. Be ready to put your ‘wartime’ plans in place quickly. • Deal swiftly with complacency as it emerges – be conscious of the fact that complacency has a way of creeping in, often without you even realising it. Nothing fails like success. Because when you are at the top, it’s all too easy to stop doing the very things that brought you there or to let your guard down. While many leaders are threatened by change and challenge, the best leaders are not only ready for them, but inspired and driven by both.
Logistics News ME | June 2015 | 55
CONTINENTAL TYRES
CONTINENTAL TYRES ON A ROLL
Continental & Emirates for Universal Tyres’ ground-breaking, flagship showroom & service centre in the Al Quoz district of Dubai marks a major landmark in the history and relationship of the two companies.
E
mirates for Universal Tyres (EUT), part of the diversified Abdullah Al Masaood Group of companies and official distributor for Germany’s Continental Tyres in the UAE, recently opened a brand new, state-of-the-art Continental showroom and service centre in Dubai’s Al
56 | Logistics News ME | June 2015
Quoz district, its third in the country. To mark the opening, VIPs and delegates including Humaid Al Masaood, owner and son of HE Abdulla Al Masaood; Andreas Bertram, Managing Director for Continental Middle East; Ahmed Mewafy, General Manager, EUT as well as the two top management officials
from Continental - Herbert Mensching, Vice President EMEA Truck Tyres and Dr. Hartmut Wöhler, Vice President EMEA Passenger and Light Truck Tyres. The new flagship branch will stock passenger, light truck, commercial vehicle tyres and speciality tyres and provide facilities
CONTINENTAL TYRES
“The new EUT commercial space allows us to showcase not only our expanding product line but also our characteristic integrated approach involving both the sales and service arenas. We make available a whole range of premium and niche tyre offerings as we continue to develop innovative product categories to cater to changing market needs,”
including mobile services which allow fleet customers to receive regular visits from EUT representatives to monitor tire pressures or refill nitrogen gas. Product highlights will include the ContiCoach HA3 AC which was designed with its Active Cool technology especially for the Middle East. The newly opened showroom and service centre is the only location in the UAE to offer Bead Bazooka the most powerful standard inflation product in the market which minimises refilling times and results in a more efficient service. Additional showroom services will include nitrogen gas tyre filling services for increased performance, fitting facilities, balancing, alignment, rapid oil change, vehicle AC repairs, brake disc skimming and minor mechanical repairs. In his welcome address Humaid Al Masood lauded the Al Masaood Group’s partnership with Continental Tyres and expressed thanks to all those involved in the setting up of the new sales and service facility. “This is an important milestone in our long and successful journey and the beginning of a new chapter in our relationship,” he exclaimed amid applause from the throng of attendees at the inaugural ceremonies. “With the opening of the new facility, our second in Dubai, we are able to accommodate even more customers in response to the growing demand for premium tyres,” expressed Ahmed Mewafy, General Manager of EUT. Dr. Hartmut Wöhler, Vice President EMEA Passenger and Light Truck Tires, Continental Tyres, observed: «The new showroom and service centre represents what Continental stands for: A premium, reliable tyre brand, engineered in Germany and with a complete product portfolio.» Speaking exclusively to Logistics News Middle East on the side-lines of the inaugural ceremonies, Andreas Bertram, Managing Director for Continental Middle East,
expressed his delight with the opening of the spanking new premises. “The new EUT commercial space allows us to showcase not only our expanding product line but also our characteristic integrated approach involving both the sales and service arenas. We make available a whole range of premium and niche tyre offerings as we continue to develop innovative product categories to cater to changing market needs,” he affirmed. “This is a benchmark development that enables us to interface closely with our customers and widen our client-base whilst gaining more visibility for our exceptional brand,” he exclaimed. “This new facility offers more than just the selling of the brand, it also provides us the opportunity to exhibit our extraordinary service levels and to interact and for end users to better understand our legacy and technology goes into the making of a quality Continental tyre,” he further continued. Bertram also stated that whilst the Continental Tyres was well regarded and well-retrenched in the European markets, it was also steadily making inroads into the Middle East as a relatively young brand in the region. “Continental established its presence in the Middle East in 2008 but we have made considerable progress during this short period in the region,” he asserted. Commenting on the range of tyres produced by company, Bertram highlighted that Continental not only catered to European and Asian automobile manufacturers but had moved beyond the traditional automotive sector with specialty tyres for freight trucks as well as for port machinery, cranes, harbourrelated activities, airplanes, warehouses & materials-handling equipment and mining heavy vehicles. Despite the intense competition, Bertram remains unfazed. “Continental enjoys a rock-solid reputation and we are a 144-year old legacy company with strong foundations, robust performance, a strong track record, human resources, skill sets and world-class
products. This will see us through. Customers are willing to pay more if we can justify the superiority of our products and I am hopeful about our long-term future in this region as we continue to grow from strength to strength.” Bertram remarked that Continental’s strategy in the Middle East was to expand in the region where it foresees goof potential for growth. Saudi Arabia and Egypt present good prospects for growth. “By putting our focus in local presence, we will be better able to penetrate these markets.” Bertram also commended the ContinentalEUT partnership. “In EUT & the Al Masaood Group we have excellent partners with roots in the local communities and good local knowledge. It is a partnership that has grown with time and bodes well for the future.” “Continental is here to stay and we are optimistic about our future here,” averred Bertram. “We produce great and reliable products, we have the reputation, skills, expertise and experience. All these make for a winning combination. We look to the future with hope,” concluded Bertram.
CONTINENTAL TYRES • Founded in Hannover, Germany, in 1871 • Continental is now one of the world’s leading automotive suppliers • Leader in tyre development and technology • The leading OEM supplier for tyres. • In 2014, the corporation generated preliminary sales of approximately €34.5 billion with its five divisions • The Continental Group employs more than 190,000 people in 49 countries. • The tyres division has 24 production and development locations worldwide.
Logistics News ME | June 2015 | 57
DRAKE & SCULL INTERNATIONAL
DRAKE & SCULL ENGINEERING AWARDED CONTRACTS IN OMAN
DSE to deliver MEP works for Oman Convention & Exhibition Centre, two 5-star hotels in Saraya Bandar Jissah & an airport hangar related facility.
D
rake & Scull International (DSI) recently announced company is currently working that Drake & Scull Engineering Oman, a subsidiary to deliver various projects, of Drake & Scull Engineering, has secured a series of including the New Muscat contracts for a combined value of US $95.37 million. International Airport, the Under the terms of the agreements, DSE Oman will deliver the RGO Complex at Hisn Al MEP works on the Oman Convention and Exhibition Centre in Shumookh Extension phase in Seeb, two hotels in Saraya Bandar Jissah near Muscat, and an Nizwa and the Sohar Refinery airport hangar related facility. Improvement Project in Sohar Ahmad Al Naser The scope of works for the Oman Convention and Exhibition Commenting on the results Centre MEP works spans a 3,100-seat central Auditorium; a Khaldoun Tabari, CEO and 455-seat secondary Auditorium; the Grand Ballroom with 1,350 Vice-Chairman of DSI PJSC, banquet-style seating; a 500-seat food court with seven themed remarked: “Drake & Scull International is dedicated to achieving food production outlets; 28 meeting rooms including nine rooms sustainable growth and to empowering the fundamentals of our formed by sub-dividing the ballrooms; and administration offices high margin businesses in 2015. In the first quarter of FY 2015, for the facility operators and external works. Work on the our Engineering business secured the prestigious US 54 million ambitious project is expected to commence soon with a scheduled Jewel of the Creek development.” completion by 2017. DSE Oman will also undertake the supply, installation, testing and commissioning of core MEP systems for two 5-star beachfront properties at Saraya Bandar Jissah, near Muscat. DSE Oman’s work on the first hotel complex will We are proud of our historic cover the main hotel building, seven three-storeyed typical hotel clusters, four one-bedroom villas, four two-bedroom contribution in the development of villas, a specialty restaurant, a pool juice bar, and an Oman’s stunning skyline through ancillary building. DSE Oman will also deliver MEP works for the second five our work on some of Oman’s Ahmad Al Naser, Managing Director. Drake & Scull Engineering stated, “Oman’s real estate sector is making steady landmark projects,” –Ahmad Al advances with the announcement of several new and upcoming promoting projects. A historically important market for DSE, Naser, Managing Director, Drake & Oman remains an area of strategic growth for the company. It Scull Engineering gives us great satisfaction to maintain our strong momentum of securing major projects in all our key markets. We are proud of our historic contribution in the development of Oman’s stunning skyline through our work on some of Oman’s landmark projects.” DSE has undertaken several prestigious Drake & Scull International (DSI) is a regional market leader delivering world class quality projects via projects in Oman, including the end to end solutions that provide integrated design, engineering and construction disciplines of General National Museum of Oman, and the Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail, Water and Sultan Qaboos Grand Mosque. The Wastewater Treatment, Waste to Energy and Oil and Gas, through People, Innovation, and Passion. DSI established its first office in Abu Dhabi in 1966, and has since expanded operations to encompass offices in Dubai, Abu Dhabi, Egypt, Kuwait, Oman, Saudi Arabia, Qatar, Jordan, Algeria, Iraq, India, Thailand, as well as managing projects in Europe and other parts of North Africa. DSI‘s main business streams include Drake & Scull Engineering, which serves as the MEP and Water & Power arm, Drake & Scull Construction (DSC), which is the General Civil Contracting unit, Drake & Scull Oil & Gas, which undertakes oil pipelines and related petrochem projects, Drake & Scull Rail, Germany based Passavant Energy & Environment which focuses on Water and wastewater treatment as well as waste to energy and Drake and Scull Development, focusing on the Infrastructure sector. Khaldoun Tabari
58 | Logistics News ME | June 2015
BAGGAGE TRACKING
ETIHAD AIRWAYS CHOOSES SITA FOR COMPREHENSIVE BAG TRACKING
E
SITA’s BagJourney offers cost-effective, global bag tracking
tihad Airways has chosen air transport IT specialist SITA for end-to-end baggage tracking services. Powered by SITA’s Air Transport Industry Cloud, SITA‘s new BagJourney service gives the airline a cost-effective and accurate way to track passengers’ bags anywhere along their journey, from check-in to the destination airport. Etihad Airways’ Chief Information and Technology Officer, Robert Webb, commented: “We are mindful that delayed luggage is a major pain point. With SITA’s BagJourney, we can follow passengers’ bags through every stage of their travels, which helps reduce mishandling and delays. We can also provide the latest baggage tracking information to crew while they are on the move via CrewTablet, our tablet application for crew operations, so we can address any problems more quickly.” BagJourney uses baggage data that passes
through SITA’s global, fully-managed baggage message and distribution service, BagMessage, and provides it to Etihad Airways via a web application programming interface. This information can then be shared as needed with Etihad Airways’ crew and airport staff. In the future, the airline could also extend this service to guests so they can follow their own bags via a smartphone app. BagJourney is also integrated with SITA’s global bag tracing and matching solution, WorldTracer®. Hani El-Assaad, SITA President for the Middle East, India and Africa, remarked: “With BagJourney, Etihad Airways will be able to track passengers’ bags no matter where they are in their journey. So even if bags are delayed, they can easily see the bag status and can proactively notify passengers.” According to SITA’s 2014 Passenger IT Trends Survey, collecting baggage at the destination is the most frustrating travel step for passengers globally, with 27 per cent of
passengers wanting significant improvement. “So it is important that all airlines continue to invest in baggage technology, especially as rising passenger numbers put more pressure on baggage operations,” noted El-Assaad. According to SITA’s 2015 Baggage Report, the rate of mishandled bags in 2014 was 7.3 bags per thousand passengers, down from a peak of 18.88 bags per thousand passengers in 2007. Baggage tracking is set to improve further in coming years as a as a result of IATA Resolution 753: Baggage Tracking. The resolution, which goes into effect in 2018, requires IATA members to ‘maintain an accurate inventory of baggage by monitoring the acquisition and delivery of baggage.’ By using BagJourney, Etihad Airways is already meeting this requirement. SITA has led the air transport industry in providing baggage tracking and tracing solutions for the air transport community for more than 20 years.
DESIGNING SUCCESS UNDERSTANDING YOUR BUSINESS GUARANTEES AN INSPIRED SOLUTION
FOR ALL YOUR FUTURE NEEDS Do you need to optimize your warehouse to respond to changing customer needs? Swisslog is a leading global logistics supplier providing automated and semi-automated solutions for warehouses and distributions centers. Based on your business strategy we plan, design and implement scalable, flexible and high quality solutions, that enable you to meet your customer needs today and in the future.
Intralogistics Automation Design. Develop. Deliver.
www.swisslog.com/middle-east
Logistics News ME | June 2015 | 59
SOF T TALK
SOFT TALK
The UAE is now an internationally recognised logistics hub Warren Jacob, Sr. Vice President, Commercial and COO, Plimsoll Logistics, Dubai, UAE interacting with peers and associates at all levels. It is a well-known fact that business blossoms based on friends and acquaintances in the trade. When the personal chemistry is right, it leads to trust and business booms. What interests you outside of the business sphere? I enjoy teaching and instructing. I also subscribe to the philosophy of giving back to the industry which has given me so much and made me who I am today.
What top four attributes describe you best? I believe I have a sense of humour, which helps to lighten frayed nerves and a difficult or tense situation. It is a good antidote for a strained or stressful state. I have learned both to trust and never to lose someone’s trust, particularly your clients’—that can be detrimental to your business. I also like to lead by example—In my opinion a good leader leads both from the front and by example. Patience is also one of my virtues and I believe that there is no ‘instant coffee’ approach to building a sustainable and successful business. What four must-have characteristics do you look for in your employees? There is no substitute to hard work and a good employee must be happy and willing to put that extra bit of hard work. Among other attributes, there must also be an element of honesty—truthful to their employers and the work they have been hired to do. They must also be customer-oriented and think from a customers’ perspective. They must also be imaginative and creative. What drives and motivates you on a day-to-day basis? My motivation is derived from my customers who come back to me for more and whom I have the pleasure to serve. This is the trigger that propels me to do what I know best and enjoy doing daily. What do you like most about your job? I cherish the personal and professional relationships I have been able to forge locally, regionally and globally across the continents over my tenure through meetings and 60 | Logistics News ME | June 2015
What are your hobbies and leisure time activities? I enjoy cooking, although it does put me in trouble at home over the weekends as I am required to double up as a chef and husband. If you were not in the supply chain & logistics arena, what would you have aspired to be? I would definitely be in the advertising business as a copy writer. I enjoy writing. Describe your business philosophy in two sentences? Be unique. Offer products and services that are distinctive and delight the customer. In today’s highly competitive business environment, it is imperative to distinguish oneself, we cannot take customers for granted. What advice would you give young people wanting to make a career in logistics? I wish to assure young entrants and inductees into the profession that the UAE is now an internationally recognised logistics hub and they are in the right place at the right time. What better place to build a career than the UAE, a world-class logistics zone? If there were two causes you would espouse, what might these be? I am a big technology fan and will support any initiative to usher new and improved technologies to streamline work processes. I also advocate more Public-Private Partnerships (PPPs) that help industry and enhance standards. What would you regard indispensable? Undoubtedly, that would be honesty. This is a non-negotiable trait. What do you regard as the key to your success? I have always worked hard to empower and
enable people so that they become valuable stakeholders in the business. A team is only as good as the leader. How do you attain a work-life equilibrium? Work can often get stressful and therefore it is very important that we find time to do things we enjoy doing. I enjoy watching movies, visiting friends or going out with the family— diversions that help us unwind. How do you relax at the end of the working day? I enjoy reading and love reading my Kindle. Spending quality time with my family also helps me de-stress. What do you like most about working in the UAE? There are few places in the world that are so cosmopolitan and diverse as the UAE, home to residents of over 220 nationalities and many language and ethnic groups. There is harmony among the residents that form one big community with a wealth of human capital.
“There are few places in the world that are so cosmopolitan and diverse as the UAE, home to residents of over 220 nationalities and many language and ethnic groups. There is harmony among the residents that form one big community with a wealth of human capital.”
INDUSTRIAL CRANES
KONECRANES ADDS HIGH-TECH FEATURES TO ITS SMARTON HEAVY-DUTY CRANE The latest updates on the Smarton crane have been geared specifically towards improving the user interface for crane operators, customer service crews and management.
K
onecranes Smartion is a built-up, heavy-duty overhead crane for demanding processes, assembly, and maintenance use. Smarton has a lifting capacity of up to 250 tons with a single trolley and up to 500 tons with two trolleys. The crane’s speed range is wide, and duty classes range from M3 to M8. Konecranes has now further developed the Smarton crane. The revamped crane is designed to make lifting operations as safe, smooth, and efficient as possible. The latest updates have been geared specifically towards improving the user interface for crane operators, customer service crews and management. The new Smarton includes a tablet, which can be mounted to the radio controller or in the operator’s cabin. The tablet makes crane
operation easier and more productive, as the operator receives crane- and process-related information directly to the tablet and is able to make adjustments to the crane. Optional camera views for safer and more effective load handling are also available. “Smartn now makes it even easier to tailor solutions for customers who want to get the benefits of the latest technology and have safety and a Total Cost of Ownership approach as part of their ‘DNA’,” commented Tero Jaakola, Product Manager. Konecranes has sold Smarton cranes since 2009 to 48 countries, including the Middle East. The main industries using the crane are paper, automotive, power, and steel, with other customers from general manufacturing and mining.
“SMARTON now makes it even easier to tailor solutions for customers who want to get the benefits of the latest technology,”—Tero Jaakola, Product Manager.
KONECRANES • A world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. • Provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. • 2013 Group sales totalled EUR 2,100 million. • 11,800 employees at 600 locations in 48 countries Logistics News ME | June 2015 | 61
LAST PAGE : IN FIRST PERSON
CRANE LOGISTICS POISED TO GIVE LIFT-OFF FOR NEW BUSINESSES By: Michael J. Karam, Country Manager, Crane Worldwide Logistics, UAE
As the Gulf region prepares for an increase in container terminal capacity, the subject of overcapacity is on the forefront. Crane Worldwide Logistics’ looks at what is being added in the market.
O
vercapacity, larger ships, new air freight services to global locations and further port expansion in the Gulf region are all stories that will affect the way the world views the Middle East in the coming years. I believe the Middle East is well positioned to handle these issues and improve from them. With the Gulf region set for another explosion in container terminal capacity due to what were previously second tier ports looking to develop into mainline hubs, overcapacity will become less of a problem as at least 14 million TEUs of new capacity are reportedly set to be added to the market over the next few years. Dubai has already seen the benefits from such expansion as DP World’s Terminal 3 opened in October of 2014 and will see a two million TEU capacity added this year to take its total capacity to 19 million TEUs a year. Additionally, Khorfakkan Port received new equipment valued at 60 million dollars and will increase its productivity and capacity. Qatar also has plans to strengthen the region by attracting cargo through building general cargo, grain and ro-ro terminals along with two intermodal rail terminals. Along with the increased strength at the sea port, new air freight services to the US have been added by Qatar Airways and they will continue to grow this market as it is predicted to add more than one million additional tons of freight before 2018. The growth that will happen in the region in the coming years is beneficial to all in the region as it will help spur the economy and continue to push forward the region. In order to properly navigate the ever changing landscape in the Middle East it is important to have a logistics partner that you trust. 62 | Logistics News ME | June 2015
In February 2015, Crane Worldwide Logistics opened a new office at Dubai Cargo Village to be at the heart of DXB International Airport and have a more efficient operation. Additionally, our Abu Dhabi office is on the verge of being opened up by the fourth quarter of 2015. At Crane Worldwide we are strong believers of ‘Challenging the Norm’ and we will continue to do so in every aspect of our industry. This shows that we do not ‘sit on the fence’ when wanting to execute something; with the support and backing of a very strong and knowledgeable global leadership team I have the most effective tools available to me to strategically plan and successfully implement the expansion plans for the Middle East. It is for this reason that here at Crane Worldwide Logistics’ Dubai office we will be looking at a rapid growth in the next two to three years with potential offices opening up across the USA in KSA, Turkey, Bahrain,
Oman and Qatar. This is not to just be in the typical hot spot locations, but to cater to the needs of our customers, which is always at the forefront of our company’s values. Compliance is one of the values that we as a company place a heavy emphasis on. The global community is constantly faced with the impact of the recent updates and additions to various sanction and embargo programs; and although the global economy continues to change due to various international influences, the global trade compliance community must be conscious of the trends in the industry. By taking into consideration the different regulatory enforcement initiatives, the current enhancement from the community to help streamline a healthy global trade, and the basic due diligence expectations from the government, you can truly manage your way through the every changing and strengthening regulatory landscapes. As bright as the future looks for the region, we also have a bright outlook ahead for Crane Worldwide Logistics on a global spectrum and in the region, there is a rapid pace of change and with the current unsettled oil prices and a high level of population growth, and we are well positioned to assist our customers with their expansion plans in the region. Our strategy is firmly in place and we look forward to continuing to service our customers in the region with the personalized local service and global reach that is often required for a complex supply chain operation. The Crane Worldwide team in the Middle East is focused, enthusiastic and will strive towards the goal of becoming the most admired supply chain and logistics organization in the Middle East.
Logistics News ME | June 2015 | 63